SAFEGUARDS INFORMATION

 SAFEGUARDS INFORMATION Enclosure 1

Warning: Violation of Section 147 of the Atomic

Energy Act, “Safeguards Information” is subject to

Civil and Criminal Penalties.

Document transmitted herewith contains sensitive

unclassified information. When separated from

Attachment 1, this document is decontrolled.

UNITED STATES OF AMERICA

NUCLEAR REGULATORY COMMISSION

In the Matter of )

 )

PACIFIC GAS AND ELECTRIC ) Docket No. 72-26

DIABLO CANYON NUCLEAR POWER PLANT ) License No. SNM-2511

INDEPENDENT SPENT FUEL STORAGE ) EA-05-088

INSTALLATION )

800 PRICE CANYON )

PISMO BEACH, CA 93449 )

ORDER MODIFYING LICENSE

(EFFECTIVE IMMEDIATELY)

I.

Pacific Gas and Electric (PG&E or the Licensee) holds a site-specific license issued by

the U.S. Nuclear Regulatory Commission (NRC or Commission) authorizing storage of spent

fuel in an independent spent fuel storage installation (ISFSI) in accordance with the Atomic

Energy Act of 1954 and 10 CFR Part 72. This Order is being issued to PG&E who has

identified near term plans to store spent fuel in an ISFSI under the site specific license

provisions of 10 CFR Part 72. The Commission regulations at 10 CFR 72.184(b) require the

licensee to maintain safeguards contingency plan procedures in accordance with

10 CFR Part 73, Appendix C. Specific safeguards requirements are contained in

10 CFR Part 73.
1

 Attachment 1 contains SAFEGUARDS INFORMATION and will not be released to the

public.

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II.

On September 11, 2001, terrorists simultaneously attacked targets in New York, N.Y.,

and Washington, D.C., utilizing large commercial aircraft as weapons. In response to the

attacks and intelligence information subsequently obtained, the Commission issued a number

of 

Safeguards and Threat Advisories to its licensees in order to strengthen licensees’ capabilities

and readiness to respond to a potential attack on a nuclear facility. The Commission has also

communicated with other Federal, State, and local government agencies and industry

representatives to discuss and evaluate the current threat environment in order to assess the 

adequacy of security measures at licensed facilities. In addition, the Commission has been

conducting a comprehensive review of its safeguards and security programs and requirements.

As a result of its consideration of current safeguards and security plan requirements, as

well as a review of information provided by the intelligence community and other governmental

agencies, the Commission has determined that certain compensatory measures are required to

be implemented by the Licensee as prudent, interim measures to address the current threat

environment in a consistent manner throughout the nuclear ISFSI community. Therefore, the

Commission is imposing requirements, as set forth in Attachment 11

 of this Order, on PG&E

who has indicated near term plans to store spent fuel in an ISFSI under their site-specific

license issued under the provisions of 10 CFR Part 72. These interim requirements, which

supplement existing regulatory requirements, will provide the Commission with reasonable

assurance that the public health and safety, and common defense and security continue to be

adequately protected in the current threat environment. These requirements will remain in

effect until the Commission determines otherwise. 
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The Commission recognizes that some measures may not be possible or necessary, or

may need to be tailored to accommodate the specific circumstances existing at PG&E’s facility

to achieve the intended objectives and avoid any unforeseen effect on the safe storage of spent

fuel. 

In order to provide assurance that the licensees are implementing prudent measures to

achieve a consistent level of protection to address the current threat environment, the

Commission concludes that security measures must be embodied in an Order consistent with

the established regulatory framework. PG&E’s License No. SNM-2511 shall be modified to

include the requirements identified in Attachment 1 to this Order. In addition, pursuant to

10 CFR 2.202, I find that in light of the common defense and security matters described above,

the public health, safety and interest require that this Order be immediately effective.

III.

Accordingly, pursuant to Sections 53, 103, 104, 161b, 161i, 161o, 182 and 186 of the

Atomic Energy Act of 1954, as amended, and the Commission's regulations in 10 CFR 2.202

and 10 CFR Parts 72 and 73, IT IS HEREBY ORDERED, EFFECTIVE IMMEDIATELY, THAT

THE LICENSE IDENTIFIED IN THIS ORDER IS MODIFIED AS FOLLOWS: 

A. PG&E shall, notwithstanding the provisions of any Commission regulation or license to

the contrary, comply with the requirements described in Attachment 1 to this Order

except to the extent that a more stringent requirement is set forth in their security plan. 

PG&E shall immediately start implementation of the requirements in Attachment 1 to the

Order and shall complete implementation before October 31, 2005, or the first day that

spent fuel is initially placed in the ISFSI, whichever is later.
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B. 1. PG&E shall, within twenty (20) days of the date of this Order, notify the

Commission, (1) if it is unable to comply with any of the requirements described

in Attachment 1, (2) if compliance with any of the requirements is unnecessary in

its specific circumstances, or (3) if implementation of any of the requirements

would cause the Licensee to be in violation of the provisions of any Commission

regulation or the facility license. The notification shall provide licensee’s

justification for seeking relief from or variation of any specific requirement. 

2. If PG&E considers that implementation of any of the requirements described in

Attachment 1 to this Order would adversely impact safe storage of spent fuel,

PG&E must notify the Commission, within twenty (20) days of this Order, of the

adverse safety impact, the basis for its determination that the requirement has

an adverse safety impact, and either a proposal for achieving the same

objectives specified in the Attachment 1 requirement in question or a schedule

for modifying the facility to address the adverse safety condition. If neither

approach is appropriate, the PG&E must supplement its response to Condition

B.1 of this Order to identify the condition as a requirement with which it cannot

comply, with attendant justifications as required in Condition B.1. 

C. 1. PG&E shall, within twenty (20) days of the date of this Order, submit to the

Commission, a schedule for achieving compliance with each requirement

described in Attachment 1. 

2. PG&E shall report to the Commission when they have achieved full compliance

with the requirements described in Attachment 1.
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D. Notwithstanding the provisions of 10 CFR 72.186, all measures implemented or actions

taken in response to this Order shall be maintained until the Commission determines

otherwise.

PG&E’s response to Conditions B.1, B.2, C.1, and C.2, shall be submitted in

accordance with 10 CFR 72.4. In addition, submittals that contain Safeguards Information shall

be properly marked and handled in accordance with 10 CFR 73.21.

The Director, Office of Nuclear Material Safety and Safeguards, may, in writing, relax or

rescind any of the above conditions upon demonstration by the Licensee of good cause.

IV.

In accordance with 10 CFR 2.202, PG&E must, and any other person adversely affected

by this Order may, submit an answer to this Order, and may request a hearing on this Order,

within twenty (20) days of the date of this Order. Where good cause is shown, consideration

will be given to extending the time to request a hearing. A request for extension of time in

which to submit an answer or request a hearing must be made in writing to the Director, Office

of Nuclear Material Safety and Safeguards, and the Director, Office of Enforcement, U.S.

Nuclear Regulatory Commission, Washington, DC 20555, and include a statement of good

cause for the extension. The answer may consent to this Order. Unless the answer consents

to this Order, the answer shall, in writing and under oath or affirmation, specifically set forth the

matters of fact and law on which the Licensee or other person adversely affected relies and the

reasons as to why the Order should not have been issued. Any answer or request for a hearing

shall be submitted to the Secretary, Office of the Secretary of the Commission, U.S. Nuclear

Regulatory Commission, ATTN: Rulemakings and Adjudications Staff, Washington, DC 20555. 
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Copies also shall be sent to the Director, Office of Nuclear Material Safety and Safeguards,

U.S. Nuclear Regulatory Commission, Washington, DC 20555, to the Director, Office of

Enforcement at the same address, to the Assistant General Counsel for Materials Litigation and

Enforcement at the same address, to the Regional Administrator for NRC Region IV at 611

Ryan Plaza Drive, Suite 400, Arlington, TX 76011-4005, and to the Licensee if the answer or

hearing request is by a person other than the Licensee. Because of potential disruptions in

delivery of mail to United States Government offices, it is requested that answers and requests

for hearing be transmitted to the Secretary of the Commission, either by means of facsimile

transmission to 301-415-1101, or by e-mail to hearingdocket@nrc.gov and also to the Office of

the General Counsel, either by means of facsimile transmission to 301-415-3725, or by e-mail

to OGCMailCenter@nrc.gov. If a person other than PG&E requests a hearing, that person

shall set forth with particularity the manner in which his interest is adversely affected by this

Order and shall address the criteria set forth in 10 CFR 2.714(d).

If a hearing is requested by the Licensee or a person whose interest is adversely

affected, the Commission will issue an Order designating the time and place of any hearing. If

a hearing is held, the issue to be considered at such hearing shall be whether this Order should

be sustained. 

Pursuant to 10 CFR 2.202(c)(2)(I), PG&E may, in addition to demanding a hearing at

the time the answer is filed or sooner, move the presiding officer to set aside the immediate

effectiveness of the Order on the ground that the Order, including the need for immediate

effectiveness, is not based on adequate evidence but on mere suspicion, unfounded allegations

or error.
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In the absence of any request for hearing or written approval of an extension of time in

which to request a hearing, the provisions specified in Section III above shall be final twenty

(20) days from the date of this Order without further order or proceedings. If an extension of

time for requesting a hearing has been approved, the provisions specified in Section III shall be

final when the extension expires, if a hearing request has not been received. AN ANSWER OR

A REQUEST FOR HEARING SHALL NOT STAY THE IMMEDIATE EFFECTIVENESS OF

THIS ORDER. 

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

Margaret V. Federline, Acting Director

Office of Nuclear Material Safety

 and Safeguards

Dated this 5th day of May 2005.

Attachment 1: Interim Safeguards and Security

 Compensatory Measures

 (Safeguards Information)