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AUGUST 23, 2007 

MEMORANDUM OF UNDERSTANDING

BETWEEN THE

UNITED STATES NUCLEAR REGULATORY COMMISSION

AND THE

UNITED STATES DEPARTMENT OF ENERGY

PROTECTION OF CLASSIFIED INFORMATION 

AND RELATED SECURITY ACTIVITIES AT 

URANIUM ENRICHMENT FACILITIES

I. BACKGROUND

The U.S. Nuclear Regulatory Commission (NRC) is responsible for licensing 

and regulating all commercial uranium enrichment facilities operating in the 

United States. 

Based on existing experience and anticipated activity, an entity that owns or 

operates a uranium enrichment facility under NRC license and regulation will 

need to process classified information at its uranium enrichment facility. The 

National Industrial Security Program (NISP), established by Executive Order 

(E.O.) 12829 for the protection of classified information classified under E.O. 

12958, as amended, or its successor or predecessor orders, and the Atomic 

Energy Act of 1954, as amended, requires that classified information can only 

be processed on secure information technology (IT) systems or networks that 

have been accredited by certain agencies of the Federal government, 

including NRC and the U.S. Department of Energy (DOE). The NISP is set 

forth in Department of Defense (DoD) 5220.22-M, and requires that a Federal 

government agency agree to act as the Designated Approval Authority (DAA) 

for a specific classified IT system. The DAA inspects the classified IT system 

to determine that it is installed and capable of operating in accordance with all 

applicable security requirements and then issues an accreditation statement 

prior to system operation. Accordingly, these entities will need a Federal 

government agency to act as the DAA for their classified IT systems. 

NRC is responsible for the licensing and regulation of commercial uranium 

enrichment facilities operating in the United States. As such, NRC is 

responsible for enforcing any violations of the licenses issued to these 

facilities, including any security violations. Therefore, in order to avoid the 

appearance of a conflict of interest, NRC requested that DOE act as the DAA 

for these uranium enrichment facilities. 

NRC, mindful of DOE’s unique expertise in protecting classified matter within 

its own nuclear programs, determined that DOE would be the most qualified 

Federal entity to serve as DAA for commercial uranium enrichment facilities. 

Upon request and a formal designation from NRC, DOE agrees to serve as 

the DAA for specified uranium enrichment facilities and provide technical 

assistance on related security matters pursuant to an interagency agreement 

(IA) with NRC for the specified uranium enrichment facility. NRC anticipates 
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a current and future need for assistance from DOE as the DAA for 

commercial uranium enrichment facilities. The facilities for which NRC 

requires such DOE assistance will be specified in an IA between NRC and 

DOE, and NRC will formally designate DOE as the DAA for the specified 

uranium enrichment facility through the IA.

NRC intends to issue orders to uranium enrichment facilities that possess 

classified matter to implement additional security measures for IT systems, 

an operational security program (OPSEC), a technical surveillance 

countermeasures program (TSCM), and a Telecommunications Electronic 

Materials Protected from Emanating Spurious Transmissions (TEMPEST) 

program. NRC requires technical assistance from DOE subject matter 

experts for providing oversight of these areas. 

II. AUTHORITY

NRC enters into this Memorandum of Understanding (MOU) under the 

authority of Section 205(c) of the Energy Reorganization Act of 1974, 42 

U.S.C. § 5845(c). DOE enters into this MOU under the authority of Section 

646 of the Department of Energy Organization Act (Pub. L. 95-91, as 

amended; 42 U.S.C. § 7256). 

III. PURPOSE AND SCOPE

A. NRC and DOE enter into this MOU to define and set forth their mutual 

understanding of the assistance that DOE will provide NRC in carrying 

out its responsibilities with respect to certain classified IT systems and 

related security activities at specified uranium enrichment facilities 

licensed or otherwise regulated by NRC. 

B. DOE agrees to provide NRC with assistance in carrying out NRC’s 

responsibilities with respect to certain classified IT systems and related 

security activities at specified contractors, subcontractors, and vendors of 

these uranium enrichment facilities licensed or otherwise regulated by 

NRC. 

C. This MOU is neither a fiscal nor a funds obligating document. Nothing in 

this MOU authorizes or is intended to obligate the parties to expend, 

exchange, transfer, or reimburse any funds, services, or supplies, or to 

enter into any contract, assistance agreement, interagency agreement, or 

any other financial obligation. 

 

D. Nothing in this MOU shall restrict or otherwise limit the authority of either 

NRC or DOE to exercise its full regulatory authority, including both 

inspection and enforcement authority within each agency’s jurisdiction. 

E. This MOU is strictly for the internal management purposes of each of the 

parties. It is not a legally enforceable document and shall not be 

construed to create any legal obligation on the part of either party or to 

provide a private right or cause of action for or by any person or entity. 
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F. This MOU in no way restricts either of the parties from participating in any 

activity with other public or private agencies, organizations, or individuals. 

G. This MOU applies solely to the activities described in this agreement 

related to uranium enrichment facilities, except those facilities identified 

below in subsection H. Nothing in this MOU applies to or establishes a 

precedent for any other MOU, matter, or agreement, including any other 

existing or future agreement between DOE and NRC. 

H. On October 28, 1997, NRC and DOE executed the “Memorandum of 

Understanding between the Nuclear Regulatory Commission and the 

Department of Energy on Cooperation Regarding the Gaseous Diffusion 

Plants.” On March 24, 2004, NRC and DOE executed the “Memorandum 

of Understanding between the Department of Energy and the Nuclear 

Regulatory Commission – Cooperation Regarding the Gas Centrifuge 

Lead Cascade Facilities at the Portsmouth Gaseous Diffusion Plant Site.” 

On April 13, 2007 NRC and DOE executed the “Memorandum of 

Understanding between the Department of Energy and the Nuclear 

Regulatory Commission – Cooperation Regarding the American 

Centrifuge Plant in Piketon, Ohio.” Nothing in this MOU is intended to 

restrict, expand or otherwise alter the terms of the October 28, 1997, the 

March 24, 2004, or the April 13, 2007, MOUs. 

I. All agreements herein are subject to, and will be carried out in compliance 

with, all applicable laws, regulations, and other legal requirements. 

IV. ROLES AND RESPONSIBILITIES

A. NRC 

1. NRC shall serve as the Cognizant Security Authority (CSA) for 

specified uranium enrichment facilities licensed or otherwise regulated 

by NRC that require a facility clearance for access to classified 

information. As the CSA, NRC shall be responsible for issuing any 

required individual security clearances and facility clearances. 

2. NRC shall review and approve a security plan for specified uranium 

enrichment facilities licensed or otherwise regulated by NRC. This 

security plan shall set forth specific requirements for implementation 

of a classified matter protection program, to include IT security, at 

specified uranium enrichment facilities licensed or otherwise regulated 

by NRC. 

3. The NRC-approved security plan shall include specific requirements 

for IT systems, an OPSEC program, a TSCM program, and a 

TEMPEST program to be implemented at specified uranium 

enrichment facilities licensed or otherwise regulated by NRC. 
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B. DOE 

1. DOE shall serve, pursuant to a formal designation from NRC in a 

subsequent IA, as the DAA for classified IT systems at specified 

uranium enrichment facilities licensed or otherwise regulated by NRC. 

As DAA, DOE shall inspect these classified IT systems to determine 

that they are installed and capable of operating in accordance with all 

applicable security requirements and provide the written results of 

these inspections and an accreditation statement to NRC. 

In the event DOE has provided an accreditation statement to NRC 

and, upon subsequent review or inspection, determines that the 

accredited system is not capable of operating in accordance with 

applicable security requirements, DOE shall make a determination 

regarding continuing or revoking the accreditation and shall promptly 

notify NRC. Upon such notification from DOE, NRC shall take prompt 

and appropriate action to enforce DOE's determination on 

accreditation. 

2. DOE shall provide, pursuant to the subsequent IAs, technical 

assistance to NRC in its review, evaluation, and inspection of 

classified IT systems and OPSEC, TSCM, and TEMPEST programs 

implemented at specified uranium enrichment facilities licensed or 

otherwise regulated by NRC. 

3. DOE shall prepare a draft and final work plan describing the classified 

matter protection program evaluations and inspections that it plans to 

perform in carrying out its responsibilities under this MOU. This work 

plan shall set forth the standards to be used in conducting the 

evaluations and inspections. 

4. DOE shall prepare and submit a final report to NRC summarizing the 

evaluations and inspections performed by DOE over the previous 

year. This report shall identify any compliance issues encountered at 

each facility inspected. 

V. RESOLUTION OF DISPUTES

A. NRC and DOE shall work together to amicably resolve any disputes or 

disagreements that might arise over matters within the scope of this 

MOU. Resolution of differences between NRC staff and DOE staff will be 

the initial responsibility respectively of the chief of the responsible branch 

within NRC and the DOE Regulatory Oversight Manager in the DOE Oak 

Ridge Office. 

B. If the issue cannot be resolved at the staff level, NRC and DOE agree to 

refer the matter within thirty (30) days to the Director, Division of Fuel 

Cycle Safety and Safeguards, Office of Nuclear Material Safety and 

Safeguards, NRC, and the Assistant Manager for Nuclear Fuel Supply, 

Oak Ridge Office, DOE. 
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VI. POINTS OF CONTACT

 A. The principal senior management contacts for this MOU will be DOE's 

Assistant Manager for Nuclear Fuel Supply, Oak Ridge Office, and NRC’s 

Director, Division of Fuel Cycle Safety and Safeguards, Office of Nuclear 

Material Safety and Safeguards. These individuals may designate 

appropriate staff representatives for the purpose of administering this 

MOU. 

B. Identification of these contacts is not intended to restrict communication 

between DOE and NRC staff members on technical and other day-to-day 

activities.

VII. EFFECTIVE DATE, MODIFICATION, TERMINATION 

A. This MOU shall become effective upon the signing of this document by 

both parties. This MOU shall remain in effect for five years from the date 

of signing by both parties unless terminated beforehand in accordance 

with the procedures set forth in this MOU. 

B. This MOU may be modified or amended by mutual agreement of NRC 

and DOE. All modifications or amendments of this MOU must be in 

writing and signed by the authorized representative of NRC and DOE. 

C. Either party may terminate this MOU by providing the other party with 

written notification of its intent to terminate. Such written notification must 

be provided at least 180 days prior to the effective date of the termination 

of this MOU. 

D. This MOU may be renewed or extended by the written mutual agreement 

of NRC and DOE. 

VIII. SEPARABILITY

If any provision of this MOU, or the application of any provision to any person 

or circumstance, is held to be invalid, the remainder of this MOU and the 

application of the remaining provisions to other persons or circumstances 

shall not be affected. 
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For the U.S. Nuclear Regulatory Commission For the U.S. Department of Energy 

_______/RA/_____________________ ___________/RA/___________________

Robert C. Pierson Larry W. Clark 

Director, Division of Fuel Cycle Safety Assistant Manager for Nuclear 

 and Safeguards Fuel Supply 

Office of Nuclear Material Safety Oak Ridge Office 

 and Safeguards U.S. Department of Energy 

U.S. Nuclear Regulatory Commission