POLICY ISSUE 

 (Notation Vote) 

November 30, 2007 SECY-07-0208 

FOR: The Commissioners 

FROM: Luis A. Reyes 

 Executive Director for Operations /RA/ 

SUBJECT: PROPOSAL FOR UPDATING OFFICE OF NUCLEAR MATERIAL 

SAFETY AND SAFEGUARDS-COGNIZANT REGULATORY GUIDES 

PURPOSE: 

This paper requests Commission approval of the staff’s recommended option for funding the 

review and update, or withdrawal of Regulatory Guides (RGs) that support programs 

administered by the Office of Nuclear Material Safety and Safeguards (NMSS). 

BACKGROUND: 

In Staff Requirements Memorandum COMDEK-07-0005, “FY 2009 Budget Proposal,” dated 

August 31, 2007, the Commission noted that, “While the Agency has established a Regulatory 

Guide Program, it appears that NMSS has no money currently budgeted to support the review 

and updating of the documents identified in this program. The staff should provide the 

Commission with a proposal to conduct this work.” In response, the staff estimates that 

resources totaling about 8.9 full-time equivalents (FTEs) will be needed for review and update or 

withdrawal of 89 NMSS RGs that support NMSS programs. 

The Commission has identified a need to focus on the revision or development of 480 RGs 

during its review of the Agency’s infrastructure to support new reactor licensing activities. In 

response to Commission direction, the Office of Nuclear Regulatory Research (RES) 

established a Regulatory Guide Update Program (RGUP) for updating or withdrawing RGs. 

CONTACT: Walt Schwink, NMSS/FCSS 

 (301) 492-3106
The Commissioners -2- 

The RGUP categorizes RGs into five groups. The first group (Phase 1) includes the 

high-priority RGs that were updated by March 2007, to support new reactor licensing activities. 

The second group (Phase 2) includes RGs that are to be updated by December 2008. The third 

group (Phase 3) includes RGs that are to be updated by December 2009. Phase 2 and 3 RGs 

include various topics across the agency (e.g., reactors, materials, decommissioning, and fuel 

cycle); a RG was categorized as Phase 2 or 3 based on the amount of staff resources needed 

to update the RG. These two groups include RGs that will be considered for withdrawal, and 

other RGs for which no updates are planned by December 2009. 

In March 2007, RES informed NMSS about the RGUP and requested input on the 89 NMSS 

RGs that were candidates for review and update, or withdrawal. RES noted that NMSS staff 

involvement is necessary to provide technical subject expertise and program knowledge for 

updating or withdrawing NMSS RGs. NMSS informed RES that: (1) NMSS RGs are not 

needed for licensing new reactors; and (2) there are no resources budgeted, in either fiscal year 

(FY) 2008 or FY 2009 for NMSS support of RG work. 

 

DISCUSSION: 

The majority of NMSS RGs were issued in the 1970s. Most of the RGs (63) pertain to fuel cycle 

facilities. The remaining RGs pertain to transportation and spent fuel storage (24 RGs) and 

high-level waste storage (2 RGs). Nearly all of the NMSS RGs are included in RGUP Phase 3. 

The Agency’s RGUP is based on the following 63-week process for updating or withdrawing 

each of the 480 RGs, including the 89 NMSS RGs. 

1. Review each RG and comporting documents for: (1) RG need; (2) applicability; (3) interdocument references and conflicts; (4) completeness; (5) accuracy; and (6) currency. 

2. Develop RG updated text and supporting rationale for the proposed RG action (i.e., RG 

revision or notice of plans to withdraw). 

3. Interoffice [including Office of the General Counsel (OGC)] reviews and approvals of the 

proposed RG action. 

4. Inform and provide an opportunity for a review or briefing on the proposed RG action to 

the Advisory Committee on Reactor Safeguards (ACRS) and/or the Advisory Committee 

on Nuclear Waste and Materials (ACNW&M). 

5. Publish the proposed RG action for public comment. 

6. Resolve public comments and prepare the RG text and supporting rationale for the final 

RG action (e.g., modification or withdrawal). 

7. Conduct interoffice (including OGC) reviews and approvals of the final RG action. 

8. Inform and provide an opportunity for a review or briefing on the final RG action to ACRS 

and/or ACNW&M. 
The Commissioners -3- 

9. Publish the final RG action. 

The Commission previously approved contract funding for RES to support the RGUP. 

RES estimates that 0.3 FTE will be required to complete 1 through 9 above, for each of the 89 

NMSS RGs. The NMSS portion of the RES estimate is an average of 0.1 FTE (135 hours) per 

RG. Therefore, NMSS unbudgeted resources totaling 8.9 FTEs will be required for review and 

update or withdrawal, of the 89 RGs. 

In response to the Commission’s request for a staff proposal to perform the unbudgeted NMSS 

RG work, RES offered contractor support for RG work to minimize the burden on NMSS 

resources. The RES contractor would perform about two thirds of the RG update work. NMSS 

staff would provide to the RES contractor, revised RG text with supporting rationale for the 

revision. The contractor would prepare and process the RG update documentation required for 

the RGUP process described below. If no resources are available, all NMSS RG work will be 

deferred and considered during preparation of the FY 2010 budget. A RG candidate for 

withdrawal will be the first to be deferred. A RG needed for licensing or certification will be the 

last to be deferred. Absent updated or withdrawn RGs, NMSS will continue using the Agencyapproved best information available for licensing and certification. For example, in developing 

the current versions of Standard Review Plans for the fuel cycle, transportation, spent fuel 

storage, and high-level waste repository safety programs, the staff incorporated the most 

relevant and significant guidance useful to both the staff and applicants/licensees. 

Consequently, current Standard Review Plans and accompanying Interim Staff Guidance 

documents for 10 CFR Parts 63, 70, 71, and 72 would continue to be used for licensing actions. 

RESOURCES: 

The Commission noted in COMDEK-07-0005 that NMSS has no funds budgeted in FY 2008 nor 

FY 2009 to support updating or withdrawing RGs. In response to the Commission’s request, if 

the staff were to perform the RG updates, it estimates resources totaling 8.9 FTEs for support of 

the update or withdrawal of 89 NMSS RGs beginning in FY 2008 and continuing for 63 weeks 

(e.g., if work began in the third quarter of FY 2008, it would continue through the fourth quarter 

of FY 2009). However, in FY 2008, the Agency currently faces a significant shortfall in funding 

all items directed by the Commission. This shortfall could be exacerbated in the event of a 

prolonged continuing resolution. The Chief Financial Officer is currently examining ways to 

address these shortfalls in the review of unliquidated funding. 

RECOMMENDATION: 

Given the existing shortfall situation, there are two options to address the NMSS RG work 

requirement. The first option is to internally reallocate resources within NMSS or other offices 

from lower priority activities. This is not recommended because RGs are among the lowest 

priority activities using the NRC’s common prioritization structure. Consequently, this would 

displace higher priority licensing, incident response, and oversight activities. The second option 
The Commissioners -4- 

is to defer this NMSS RG work until after FY 2008 and address its funding during the FY 2009 - 

FY 2010 budget cycle. This option is preferred because updated RGs are not needed for 

NMSS licensing/certification and reallocation of resources from higher priority work would not be 

necessary. 

COORDINATION: 

The Office of the General Counsel has reviewed this paper and has no legal objection. The 

Office of the Chief Financial Officer has reviewed this paper for resource implications and 

concurs. 

 /RA/ 

 Luis A. Reyes 

 Executive Director 

 for Operations
The Commissioners -4- 

is to defer this NMSS RG work until after FY 2008 and address its funding during the FY 2009 - 

FY 2010 budget cycle. This option is preferred because updated RGs are not needed for 

NMSS licensing/certification and reallocation of resources from higher priority work would not be 

necessary 

COORDINATION: 

The Office of the General Counsel has reviewed this paper and has no legal objection. The 

Office of the Chief Financial Officer has reviewed this paper for resource implications and 

concurs. 

 /RA/ 

 Luis A. Reyes 

 Executive Director 

 for Operations 

ADAMS ACCESSION NO: ML073200035 WITS 200700312/EDATS: SECY 2007-0382

*SEE PREVIOUS CONCURRENCE 

OFFICE FFLD * Tech Ed* HLW* SFST* FFLD * CFO* 

NAME WSchwink EKraus MWong WBrach PHabighorst TCroote 

DATE 11/14/07 11/16/07 11/14/07 11/14/07 11/16/07 11/14/07 

OFFICE OGC* RES* FCSS* NMSS* EDO 

NAME APessin MJohnson RPierson MWeber LReyes 

DATE 11/14/07 11/21/07 11/16/07 11/21/07 11/30/07 

OFFICIAL RECORD COPY