Office of Federal and State Materials and Environmental 

Management Programs (FSME) Procedure Approval 

Suspension of a Section 274b. Agreement

SA-114

Issue Date: March 9, 2011

Review Date: March 9, 2014

Robert J. Lewis 

Director, MSSA /RA / Date: 03/09/2011

A. Duncan White 

Branch Chief, MSSA /RA K. Schneider for/ Date: 03/03/2011

Michelle Beardsley 

Procedure Contact, MSSA /RA K. Schneider for/ Date: 03/03/2011

ML110620241 

NOTE 

Any changes to the procedure will be the responsibility of the FSME Procedure Contact. 

Copies of the FSME procedures are available through the NRC website. 
Procedure Title: 

Suspension of a Section 274b. 

Agreement 

Procedure Number: SA-114

Page: 1 of 7 

Issue Date:

3/9/2011 

I. INTRODUCTION

This procedure describes the process used by the Commission to suspend a State’s 

274b. Agreement (Agreement). 

II. OBJECTIVE

A. To provide the guidelines that will be used by the U.S. Nuclear Regulatory 

Commission (NRC) staff when considering whether to exercise the authority 

contained in Section 274j.(2) of the Atomic Energy Act (Act) to suspend a State’s 

Agreement. 

B. This procedure does not address emergency suspension of a State’s 274b. 

Agreement in situations where there is a danger to the public health and safety, or in 

the event that an Agreement State would need to execute its Continuity of 

Operations (COOP) or pandemic response program. Guidelines for emergency 

suspension are found in the Office of Federal and State Materials and Environmental 

Management Programs (FSME) Procedure SA-112, Emergency Suspension of a 

Section 274b. Agreement.

III. BACKGROUND

A. Section 274j. of the Act gives the Commission authority to suspend all or part of its 

Agreement with a State if the suspension is required to protect the public health and 

safety, or if the State has not complied with one or more of the requirements of 

Section 274 of the Act. In cases where the Commission finds that program 

deficiencies related to either adequacy or compatibility are such that the Commission 

must take action, the Commission may suspend all or part of its Agreement with the 

State (see also Statement of Principles and Policy for the Agreement State Program, 

dated September 3, 1997). 

B. The Commission can also suspend an Agreement in circumstances where the State 

radiation control program has not complied with one or more requirements of the Act, 

e.g., the State program is not compatible with the NRC program and the State has 

refused or is unable to address those areas previously identified as compatibility 

concerns and the non-compatibility is disruptive to the national materials program 

conducted by NRC and Agreement States for the regulation of the Atomic Energy 

Act material. 

C. Before reaching a final decision on suspension, the Commission will notify the State 

and provide the State an opportunity for a hearing on the proposed suspension as 

discussed in Section V.C.1. below. Notice of the suspension will also be published in 

the Federal Register. Suspension, rather than termination, will be the preferred 
SA-114: Suspension of a Section 274b. Agreement Page: 2 of 7 

Issue Date: 

3/9/2011 

option in those cases where the Commission agrees that the State has provided 

evidence that the program deficiencies are temporary and that the State is 

committed to implementing program improvements. 

IV. ROLES AND RESPONSIBILITIES

A. The Management Review Board (MRB) is responsible for considering the results of 

the Agreement State reviews and any other appropriate information, as stated in 

Section V, in making a recommendation to the Commission to suspend all or part of 

a State’s Agreement. 

B. The Executive Director for Operations (EDO) submits the Commission Paper 

containing the MRB’s recommendation that NRC initiate the proceedings to suspend 

an Agreement. 

C. FSME is responsible for taking the lead in the preparation and coordination of a 

Commission Paper recommending the suspension of the Agreement in question. 

FSME also coordinates all followup suspension notifications, (i.e., to the Governor, 

the Federal Register, the U.S. Department of Labor (DOL), and All Agreement and 

Non-Agreement States). 

D. The Office of the General Counsel (OGC) is responsible for taking the lead for 

preparing a Commission Paper containing the Commission’s decision to suspend an 

Agreement. 

E. The Office of Congressional Affairs (OCA) is responsible for notifying Congressional 

Committees. 

F. The Office of Public Affairs (OPA) is responsible for issuing a press release if the 

State does not request a hearing. 

G. The Region is responsible for coordinating with the State so that all necessary action 

is taken to have license files transferred or made available to the NRC, and 

coordinates all followup suspension notifications to Agreement State licensees. 

V. GUIDANCE

A. MRB 

1. The MRB will meet to discuss the specific Agreement State program review 

findings. These meetings are normally open and Agreement States’

representatives from the State under review will be invited to attend (see SA-106, 

The Management Review Board). 

 
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Issue Date: 

3/9/2011 

2. Suspension should be considered by the MRB under certain circumstances, 

these include but are not limited to: 

a. Time period a State is on probation and the progress made in correcting 

issues identified during the review; 

b. Program degradation in one or more performance areas identified during a 

review or periodic meeting which has or could result in serious impacts on 

health and safety, e.g. loss of significant staff resulting in a large number of 

overdue Priority 1, 2, and 3 inspections, overdue licensing actions resulting in 

severe health and safety issues (overexposures, medical events) etc.; 

c. Evidence that a State cannot or will not be able to uphold its responsibilities 

under the Agreement; and 

d. Extent of State Program incompatibility with existing NRC regulatory 

requirements. 

3. Following the MRB meeting and based upon its determination, the MRB will 

make a recommendation to the EDO, and subsequently to the Commission, to 

suspend all or part of the Agreement in question. 

B. FSME 

1. If it is the recommendation of the MRB and EDO that NRC initiate the 

proceedings to suspend an Agreement, FSME is assigned the lead for 

preparation of a Commission Paper. The Commission Paper will contain the 

MRB recommendations and any other information pertinent to the staff’s 

recommendations supporting the suspension of the Agreement in question. The 

Commission Paper will also assess potential resource implications of NRC 

reasserting its authority. (See Appendix A for a sample Commission Paper 

including a sample Federal Register Notice.) 

2. If the Commission’s decision is to support the MRB’s recommendation for 

suspension, FSME will provide the following letters: 

a. A letter notifying the Governor of the suspension (see Appendix B, 

Enclosure 3). 

b. A letter advising DOL of the effective date of the suspension of the 

Agreement (see Appendix E). 

c. A letter notifying all States of the effective date of the suspension and 

enclosing a copy of the Order or Federal Register Notice (see Appendix G). 
SA-114: Suspension of a Section 274b. Agreement Page: 4 of 7 

Issue Date: 

3/9/2011 

3. The Commission Paper will be coordinated with OGC and the affected Region. 

C. The Commission 

1. Before a decision is made on the MRB’s recommendation, the Commission must 

provide the State with reasonable notice and an opportunity to request a hearing 

on the issue, as required by Section 274j.(1). Section 274j.(1) does not require 

such a hearing if suspension is requested by the Governor. 

2. If the State does not request a hearing, the Commission will make a final 

decision on the issue. 

a. OGC is the lead for preparation of a Commission Paper containing the 

suspension order and the Federal Register Notice announcing the 

Commission’s decision (see Appendix B and its Enclosures). 

b. OPA will provide a press release. This information is to be included as 

supplemental information to the Commission Paper (see Appendix C). 

c. FSME will provide the letter notifying the Governor (see Appendix B, 

Enclosure 3). FSME will notify DOL of the suspension (see Appendix E). 

This letter is to be included as supplemental information to the Commission 

Paper. 

d. OCA will notify Congressional Committees. This letter is also to be included 

as supplemental information to the Commission Paper (see Appendix D). 

e. If the State does request a hearing, the Commission will initiate the hearing 

process described in Section V.D., Hearing, below. 

f. Whether or not a hearing is requested, if the Commission decision is to not 

support the recommendation to suspend the State’s Agreement, the 

Governor will be notified of this result. Congressional Committees will be 

notified and a press release will be made by OCA and OPA, respectively. 

D. Hearing 

1. The hearing for the suspension of an Agreement will be an informal hearing 

conducted either by the Commission itself, or at the Commission's discretion, by 

a Special Agreement State Board appointed by the Commission. In cases where 

the Commission determines that a Special Board will be used, the Board will 

consist of three members: 

 
SA-114: Suspension of a Section 274b. Agreement Page: 5 of 7 

Issue Date: 

3/9/2011 

a. The Chair of the Organization of Agreement States (OAS) (unless the Chair 

is from the State in question, in which case the Agreement State 

representative will be the past Chair of the OAS); 

b. An official from OGC; and 

c. The Deputy Regional Administrator of an NRC Regional Office (outside of the 

Region in which the State is located). 

2. The Commission, or the Special Board, as appropriate, will conduct an informal 

hearing to address the issues in question. 

a. At the hearing, the NRC staff, representatives of the affected Agreement 

State, and interested third parties will have an opportunity to offer their views, 

answer questions, and submit written materials. 

b. Third parties whose interests may be affected may submit written material 

and may offer their views for a limited period of time. 

c. After consideration of the issues, the Commission or the Special Board will 

issue a decision on suspension. A majority of the Commission or the Special 

Board will be required to support a decision. 

d. In cases where a Special Board is used, the Commission will have discretion 

to review the decision of the Special Board, and either uphold or overturn the 

Board's decision. 

E. Additional Coordination During the Suspension 

1. NRC will conduct a meeting with the licensees in the State to explain the 

reassertion of NRC authority and the present fee structure. The lead for the 

meeting should be the Region in consultation with the OGC, FSME, and the 

Office of the Chief Financial Officer. 

2. After the suspension of the Agreement, FSME will prepare a letter to the DOL 

advising the Department of the effective date of the suspension of the Agreement 

(see Appendix E). 

3. The appropriate Regional State Agreements Officer (RSAO) should obtain from 

the State a computer printout of all specific and general licenses, including 

reciprocity general licensees, affected by the suspension of the State's 

agreement (mailing labels should be obtained, if possible, from the State). 

A letter should be prepared notifying each licensee of the suspension and 

reassertion by NRC and appropriate information (see Appendix F). 
SA-114: Suspension of a Section 274b. Agreement Page: 6 of 7 

Issue Date: 

3/9/2011 

4. FSME will prepare a letter to all States notifying them of the effective date of the 

suspension and enclosing a copy of the Order or Federal Register Notice (see 

Appendix G). 

5. The appropriate NRC Region will coordinate with the State so that all necessary 

action is taken to have electronic/paper license files transferred or made 

available to the NRC, and coordinates all followup suspension notifications to 

Agreement State licensees. 

F. Withdrawal of Suspension/Recommendation for Termination 

1. When the situation requiring the suspension has been corrected or eliminated, 

the MRB will consider all factors and recommend to the Commission whether to 

lift the suspension. 

2. If the situation is not resolved, termination will be considered per FSME 

Procedure SA-115, Termination of a Section 274b. Agreement.

VI. APPENDICES

Appendix A - Commission Paper for Suspension of All or Part of an Agreement and 

Request for Hearings 

Enclosure 1 - Management Review Board Recommendations 

Enclosure 2 - Proposed Federal Register Notice Regarding Opportunity 

for Hearing on Suspension 

Appendix B - Commission Paper for Suspension of All or Part of an Agreement 

Enclosure 1 - Order Suspending Agreement 

Enclosure 2 - Federal Register Notice Regarding the Suspension and 

Reassertion of NRC Authority 

Enclosure 3 - Letter to Governor Regarding the Commission Decision on 

Suspension 

Appendix C - Press Release to be Issued by the Office of Public Affairs 

Appendix D - Letters to Congressional Committees 

Appendix E - Suspension Procedure, Letter to U.S. Department of Labor on 

Suspension 

Appendix F - Suspension Procedure, Letter to Licensees Regarding Suspension and 

Reassertion 

Appendix G - Suspension Procedure, Letter to All States Regarding Suspension and 

Reassertion 

 
SA-114: Suspension of a Section 274b. Agreement Page: 7 of 7 

Issue Date: 

3/9/2011 

VII. REFERENCES

1. FSME Procedure SA-106, The Management Review Board (MRB)

2 . FSME Procedure SA-112, Emergency Suspension of a Section 274b. Agreement

3. FSME Procedure SA-115, Termination of a Section 274b. Agreement

4. Commission Policy Statement: “Statement of Principles and Policy for the 

Agreement State Program,” dated September 3, 1997. 

VIII. ADAMS REFERENCE DOCUMENTS 

For knowledge management purposes, all previous revisions of this procedure, as well 

as associated correspondence with stakeholders, that have been entered into ADAMS 

are listed below. 

No. Date Document Title/Description Accession Number

1 2/8/01 STP Procedure SA-114 ML010820146 

2 2/22/07 FSME-07-020, Opportunity to Comment on Draft 

Revisions to FSME Procedure SA-114 

ML070570341 

3 2/22/07 FSME Procedure SA-114, Draft Revision ML070570396 

4 9/25/07 FSME-07-089, Final FSME Procedure SA-114 ML072700496 

5 9/25/07 FSME Procedure SA-114 ML072510006 

6 9/25/07 Redline/Strikeout Copy ML072510007 

7 9/25/07 Resolution of Comments ML072610485 

8 11/08/10 FSME-10-093, Opportunity to Comment on Draft 

Revisions to FSME Procedures SA-112 and SA-114 

ML103070271 
Appendix A

Sample Commission Paper for Suspension of All or 

Part of an Agreement and Request for Hearings 

FOR: The Commissioners 

FROM: [NAME] 

Executive Director for Operations 

SUBJECT: STAFF’S RECOMMENDATIONS REGARDING SUSPENSION OF 

[STATE’S] AGREEMENT WITH THE COMMISSION 

PURPOSE: 

To present the results of the staff review of the [State] program, the Management Review 

Board's (MRB) recommendation for suspension of [all or part] of the [State] Agreement and 

request that a special Agreement State Board be convened to provide [State] with an 

opportunity for a hearing, if requested. This paper does not address any new commitments. 

SUMMARY:

A review of [State's] Agreement State program was conducted on [Date]. As a result of this 

review and results of the MRB, the staff finds that [State's] regulatory program [is inadequate to 

protect public health and safety and/or has not complied with one or more requirements of the 

Atomic Energy Act (the Act)]. Accordingly, the staff is recommending that the Commission 

initiate hearing procedures for the suspension of [State's] Agreement. 

DISCUSSION: 

Section 274j.(1) of the Act authorizes the Commission to suspend the Agreement with any 

State, after reasonable notice and an opportunity for hearing to the State, and to reassert the 

Commission's licensing and regulatory authority if the Commission suspension is required to 

CONTACT: First M. Last, Office/Division 

 XXX-XXX-XXXX 

 
Appendix A Page 2 

adequately protect public health and safety or because the State has not complied with one or 

more requirements of the Act. Commission suspension of a State's Agreement is a temporary 

measure. If the deficiencies in a State's program are remedied, the Commission may lift the 

suspension by informing the Governor of the State and affected licensees. 

[This section should contain facts concerning the State's program, why suspension is desirable 

versus termination. Reviews, MRB Meetings, and discussions and correspondence with the 

State addressing the deficiencies should be documented.] 

[The staff should document any information on whether the State will be requesting a hearing 

regarding the suspension. If a hearing is likely, staff should discuss the options of the informal 

hearing conducted by the Commission or by the Special Agreement State Board.] 

RESOURCES: 

[To be developed in coordination with the Office of the Chief Financial Officer]. 

RECOMMENDATION: 

That the Commission: 

1. Notify [State] of an opportunity for a hearing on the proposed suspension through 

[Special Agreement State Board or Commission itself]. If requested, approve such a 

request. 

COORDINATION: 

This paper has been coordinated with the Office of the General Counsel, which has no legal 

objection. The Office of the Chief Financial Officer has reviewed this paper for resource 

implications and has no objections. 

[NAME] 

Executive Director 

 for Operations 

Enclosures: 

1. MRB Recommendations 

2. Proposed Federal Register Notice 

 Regarding Opportunity for Hearing 

 or Suspension 

 
Appendix A Page 3 

Enclosure 1

Sample Management Review Board Recommendations 

MEMORANDUM TO: [NAME] 

 Executive Director for Operations 

FROM: [NAME] 

 Deputy Executive Director for Materials, Waste, 

Research, State, Tribal and Compliance Programs 

Chairman, Management Review Board 

SUBJECT: MANAGEMENT REVIEW BOARD RECOMMENDATIONS FOR 

THE SUSPENSION OF THE [STATE or COMMONWEALTH] OF 

[STATE or COMMONWEALTH’S name] 274b. AGREEMENT 

On [date], the Management Review Board (MRB) met to consider the review of the [State] 

Agreement State program [enclosed are meeting minutes]. [Give details on the program 

deficiencies and the State's plans to correct the problems.] 

Given the desire of [State] to continue with their Agreement, but in light of the need to protect 

public health and safety, the MRB recommends that you direct the staff to prepare a 

Commission Paper to initiate suspension of the Agreement in accordance with procedures. 

Enclosure: 

MRB meeting minutes 

 
Appendix A Page 4 

Enclosure 2

Sample Federal Register Notice Regarding 

Opportunity for Hearing on Suspension 

Opportunity for Hearing on Suspension of [State] Regulatory Authority and the Reassertion of 

NRC Authority 

AGENCY: U.S. Nuclear Regulatory Commission (NRC) 

ACTION: Notice of Opportunity for Hearing on Suspension of the [State] Regulatory 

Authority and the Reassertion of NRC Authority 

SUMMARY: The NRC staff has proposed that the Commission suspend [State's] regulatory 

authority over [identify part of agreement affected and material affected] and 

reassert NRC's authority in [State]. The staff believes that such action is 

necessary in order to ensure that public health and safety will be protected. 

Accordingly, the Commission is providing the State with this notice of opportunity 

for a hearing on the proposed suspension of the [State's] regulatory authority. 

FOR FURTHER INFORMATION CONTACT: 

[FSME CONTACT], Office of Federal and State Materials and Environmental 

Management Programs, U.S. Nuclear Regulatory Commission, Washington, DC 

20555, telephone [telephone number], e-mail: XXX@NRC.GOV. 

SUPPLEMENTARY INFORMATION: 

Under Section 274 of the Atomic Energy Act of 1954, as amended, (the Act) 

individual States can assume part of the NRC's regulatory authority over the 

possession and use of byproduct, source, and special nuclear materials. In order 

to effect and maintain such a transfer of authority, the State must demonstrate 

that its program is adequate to protect the public health and safety and is also 

compatible with the Commission's program for regulating those materials. 

Staff review and recommendations regarding the adequacy and compatibility of 

Agreement State Programs are made through the Management Review Board 

(MRB) which consists of senior NRC managers and an Agreement State 

representative. The MRB makes its decisions regarding the adequacy of each 

Agreement State's program based on the staff's reviews of the program. In 

reviewing [State's] program, the MRB has recommended that the Commission 

suspend the State's Agreement with NRC until improvements to assure adequate 

protection of public health and safety are incorporated into [State's] regulatory 

program. [Narrative of MRB findings.] 

 
Appendix A Page 5 

Pursuant to the provisions of Section 274j. of the Act, the staff has proposed that 

the Commission suspend the [State] Agreement over [identify part of agreement 

affected and material affected] and reassert NRC's authority in [State] in order to 

protect the public health and safety. This action ensures that there will be 

adequate licensing and inspection of the Atomic Energy Act activities. 

Section 274j.(1) of the Act requires that before termination or suspension of all or 

part of an Agreement, reasonable notice and opportunity for hearing must be 

provided to the State. If the State does not request a hearing within 30 days, the 

Commission will make a final decision on the staff's recommendation to suspend 

the State's Agreement. 

If a hearing is requested by the State, [provide details regarding conduct of 

hearing depending on whether the hearing will be conducted by the Special 

Agreement State Board or the Commission itself.] 

Existing licensees in [State] will be advised of this potential change in regulatory 

authority if the Commission decides to initiate suspension proceedings. 

For information regarding this reassertion action contact [Director], Division of Material Safety 

and State Agreements, Office of Federal and State Materials and Environmental Management 

Programs. 
Appendix B

Sample Commission Paper for Suspension 

of All or Part of an Agreement 

FOR: The Commissioners 

FROM: [NAME] 

 General Counsel 

SUBJECT: REQUEST FOR SUSPENSION OF [ALL OR PART OF] THE [STATE] 

 AGREEMENT 

PURPOSE: 

To inform the Commission that [State] was offered an opportunity for a hearing and not having 

requested one to recommend suspension of [all or part] of the [State] Agreement. This paper 

does not address any new commitments. 

SUMMARY:

As stated in SECY [Identification Number] a review of [State's] Agreement State program was 

conducted on [Date]. As a result of this review and results of the Management Review Board 

(MRB), the staff finds that [State's] regulatory program [is inadequate to protect public health 

and safety and/or has not complied with one or more requirements of Section 274 of the Atomic 

Energy (the Act)]. On [date], NRC published a notice of opportunity for a hearing on the 

proposed suspension in the Federal Register. The State has not requested a hearing on the 

matter. Accordingly, the staff recommends that the Commission suspend [name of State's] 

Agreement. 

DISCUSSION: 

Section 274j.(1) of the Act authorizes the Commission to suspend the Agreement with any 

State, after reasonable notice and an opportunity for hearing to the State, and to reassert the 

CONTACT: First M. Last, Office/Division 

 XXX-XXX-XXXX 

 
Appendix B Page 2 

Commission's licensing and regulatory authority if the Commission finds that such suspension is 

required to protect public health and safety or the State has not complied with one or more 

requirements of Section 274 of the Act. 

[Cite this section from previous SECY. This section should contain facts concerning the State's 

program, why suspension is desirable versus termination. Reviews, MRB Meetings, and 

discussions and correspondence with the State addressing the deficiencies should be 

documented.] 

[The staff should document that the State was offered an opportunity for a hearing but did not 

request one.] 

RESOURCES: 

[To be developed in coordination with the Office of the Chief Financial Officer]. 

RECOMMENDATION:

That the Commission: 

1. Approve the Order provided in Enclosure 1 and direct the Secretary to issue such Order. 

2. Approve the publication of the Federal Register Notice announcing the Commission 

decision (Enclosure 2). The Commission Order will be published in the Federal Register

along with the notice of reassertion of authority. 

3. Approve the letter notifying the Governor of [State] of the suspension (Enclosure 3). 

COORDINATION: 

This paper has been coordinated with the Office of Federal and State Materials and 

Environmental Management Programs. The Office of the Chief Financial Officer has reviewed 

this paper for resource implications and has no objections. 

[NAME] 

General Counsel 

Enclosures: 

1. Proposed Commission Order 

2. Proposed Federal Register Notice 

3. Draft Letter to the Governor 

 
Appendix B Page 3 

Enclosure 1

Order Suspending 274b. Agreement 

 UNITED STATES 

 NUCLEAR REGULATORY COMMISSION 

In the Matter of 

[Name of State] 

[Agreement State Program] 

 ORDER SUSPENDING 274b. AGREEMENT 

I 

[Set forth the name of the Agreement State program and background information as to when the 

program was initiated, what type of agreement materials are covered, and the authority of the 

Commission and the Governor of the particular State to enter into this type of agreement. In 

addition, the authority of the Commission to suspend the Agreement State program should be 

stated. The following is provided as a sample discussion for this section]. 

On [Date], the State of [Name] entered into an agreement (Agreement) with the Nuclear 

Regulatory Commission (NRC or Commission) pursuant to Section 274 of the Atomic Energy 

Act (Act) of 1954, as amended, 42 U.S.C. Section 2021. The Agreement discontinued the 

NRC's regulatory authority within the State with respect to [byproduct material as defined in 

Section 11e.(1) of the Act (radioisotopes) and/or byproduct material as defined in Section 

11e.(2) of the Act (mill tailings or wastes) and/or byproduct material as defined in Section 

11e.(3) of the Act and/or byproduct material as defined in Section 11e.(4) of the Act and/or 

source material (uranium and thorium) and/or special nuclear material (uranium 233, uranium 

235 and plutonium) in quantities not sufficient to form a critical mass and/or permanent disposal 

of low-level waste containing one or more of the materials stated above, but not including mill 

tailings and/or evaluation of radiation safety information on sealed sources or devices containing 

byproduct, source or special nuclear materials and the registration of the sealed sources or 

devices for distribution]. The Agreement authorized the State of [Name] to regulate these 

materials for the protection of public health and safety. 

II 

[This section should provide a description of relevant events, facts, deficiencies, technical or 

legal reasons that provide the substantive basis for issuing the Order. The following example is 

provided as a sample discussion for this section.] 

A review of [State's] Agreement State program was conducted on [Date]. As a result of this 

review and the Management Review Board (MRB) recommendations, the Commission has 

determined that [State's] regulatory program [fails to adequately protect public health and safety 
Appendix B Page 4 

and/or is incompatible with the Commission's regulatory program]. The review and MRB 

recommendations ascertained that [State's] Agreement State program failed to adequately 

protect public health and safety by [facts directly bearing on failure of the program to adequately 

maintain public health and safety]. 

[and/or the following:] 

In addition, the review and independent evaluation ascertained that [State's] Agreement State 

program is incompatible with the Commission's regulatory program in that [State's] regulatory 

program [facts directly bearing on incompatibility between the two programs]. 

III 

[This section should provide the justification for issuing the Order, in light of the facts described 

in Section II. The following example is provided as a sample discussion for this section]. 

Section 274d. of the Act provides, in part, that the Commission shall enter into an Agreement 

with a State to discontinue the Commission's regulatory authority if the Commission finds that 

the State's regulatory program is adequate to protect the public health and safety with respect to 

materials covered by the proposed Agreement and the State's regulatory program complies with 

Section 274o. of the Act and in all other respects is compatible with the Commission's program 

for the regulation of such materials. 

Section 274j.(1) of the Act authorizes the Commission to suspend the Agreement with any 

State, after reasonable notice and an opportunity for hearing to the State, and to reassert the 

Commission's licensing and regulatory authority if the Commission finds that such suspension is 

required to protect public health and safety or the State has not complied with one or more 

requirements of Section 274 of the Act. 

The NRC must be able to rely on [State's] Agreement State program to [adequately protect 

public health and safety] [and/or] [to be compatible with the Commission's requirements and 

standards applicable to the agreement material]. The facts and circumstances enumerated in 

Section II of this Order raise serious doubts as to whether [State] can be relied upon to comply 

with Section 274 of the Act. 

Consequently, we have determined that the suspension is required [to protect the public health 

and safety] OR [because the State has not complied with one or more of the requirements of 

Section 274 of the Act]. 

IV 

Accordingly, pursuant to Sections 161b, 161c, 161i, 161o, and 274 of the Atomic Energy Act, 

as amended, IT IS HEREBY ORDERED THAT THE AGREEMENT BETWEEN THE 

COMMISSION AND [STATE], DATED [date], IS SUSPENDED AS FOLLOWS: 

A. [IDENTIFY PART OF AGREEMENT AFFECTED AND MATERIAL AFFECTED]; 

 
Appendix B Page 5 

B. [IDENTIFY WHAT ACTIONS THE STATE MUST DO TO COME INTO COMPLIANCE WITH 

COMMISSION REQUIREMENTS AND WHEN]; 

C. [IDENTIFY WHAT MUST HAPPEN TO REINSTATE THE AGREEMENT; 

 FOR THE NUCLEAR REGULATORY COMMISSION 

Secretariat 

Dated at Rockville, Maryland this day of , [Year] 

 
Appendix B Page 6 

Enclosure 2

Sample Federal Register Notice Regarding the Suspension 

and Reassertion of NRC Authority 

Suspension of [State] Regulatory Authority and the Reassertion of NRC Authority in [State] 

AGENCY: U.S. Nuclear Regulatory Commission (NRC) 

ACTION: Notice of Suspension of the [State] Regulatory Authority and the Reassertion of 

the NRC Authority in [State]. 

SUMMARY: The NRC has suspended the [State's] regulatory authority over [identify part of 

agreement affected and material affected] and is reasserting NRC's authority in 

[State]. The action, which is effective on [Date], is being taken in order to ensure 

that public health and safety will be protected. 

FOR FURTHER INFORMATION CONTACT: 

[FSME CONTACT], Office of Federal and State Materials and Environmental 

Management Programs, U.S. Nuclear Regulatory Commission, Washington, DC 

20555, telephone [telephone number], e-mail XXX@NRC.GOV. 

SUPPLEMENTARY INFORMATION: 

Under Section 274 of the Atomic Energy Act (the Act), as amended, individual 

States can assume part of the NRC's regulatory authority over the possession 

and use of byproduct, source, and special nuclear materials. In order to effect 

and maintain such a transfer of authority, the State must demonstrate that its 

program is adequate to protect the public health and safety and is also 

compatible with the Commission's program for regulating those materials. 

Section 274j. of the Act gives the Commission authority to suspend all or part of 

its Agreement with a State if the suspension is required to protect the public 

health and safety, or if the State has not complied with one or more of the 

requirements of the Act. In cases where the Commission finds that program 

deficiencies related to either adequacy or compatibility are such that the 

Commission must take action, the Commission may suspend all or part of its 

Agreement with the State. 

Staff review and recommendations regarding the adequacy and compatibility of 

Agreement State Programs are made through the Management Review Board 

(MRB), which consists of senior NRC managers and an Agreement State 

representative. The MRB makes its decisions regarding the adequacy of each 

Agreement State's program based on the staff's reviews of the program. In 

reviewing [State's] program, the MRB recommended that the Commission 
Appendix B Page 7 

suspend the State's Agreement with NRC until improvements to assure adequate 

protection of public health and safety are incorporated into [State's] regulatory 

program. [Narrative of MRB findings.] 

The Commission has considered the State of [Name] radiation control program 

and has agreed with the findings of the MRB, as well as with its recommendation 

to suspend the program. 

[Narrative of MRB findings and any hearings held.] 

[State] has indicated its desire to continue its radiation control program under the 

Agreement. The [State] radiation control program has provided NRC staff with a 

"Program Improvement Plan" describing actions to be taken to address the 

identified deficiencies, including specific goals and timetables. Once the 

deficiencies are addressed and the radiation control program is found to be 

adequate and compatible, the Commission will consider action to lifting the 

suspension of [State] Agreement. Notification of such cessation will be made to 

the State's Governor, the State's Congressional delegation, and all other 

Agreement and Non-Agreement States. There also will be a Federal Register

Notice and a press release. 

Existing licensees in [State] are being advised of this change in regulatory 

authority. Pursuant to a Commission Order published with this notice, existing 

[State] licenses affected by this change will become effective NRC licenses 

under conditions set forth in the Order. 

For information regarding this reassertion action, contact [Regional 

Administrator], NRC Region [REGION]. 

Inquiries regarding the status of licenses or applications should be directed to [Regional Office 

contact]. 

 
Appendix B Page 8 

Enclosure 3

Sample Letter to Governor Regarding the 

Commission’s Decision on Suspension 

Dear Governor (Name): 

As you are aware, Section 274j. of the Atomic Energy Act (the Act) gives the 

Commission authority to suspend all, or part, of its Agreement with a State if the suspension is 

required to protect the public health and safety, or if the State has not complied with one or 

more of the requirements of the Act. In cases where the Commission finds that program 

deficiencies related to either adequacy or compatibility are such that the Commission must take 

action, the Commission may suspend all or part of its Agreement with the State. 

The last review of the [State] radiation control program found significant program 

deficiencies and the program was found to be [inadequate to protect the public health and 

safety and/or incompatible with the NRC's program.] [Describe hearing proceedings if held.] 

The Commission is suspending [State's Name] regulatory authority over [identify part of 

agreement affected and material affected] and reasserting NRC's authority in [State]. The 

action, which is effective on [Date], is being taken in order to ensure that public health and 

safety will be protected. Deficiencies exist in [State's Name] due to [facts requiring 

implementation of Section 274j.(1)]. A copy of the Order is enclosed. 

I understand that the State wishes to continue its radiation control program under the 

Agreement. The [State] radiation control program has provided NRC staff with a "Program 

Improvement Plan" describing actions to be taken to address the identified deficiencies, 

including specific goals and timetables. Once the deficiencies are addressed and the radiation 

control program is found to be adequate and compatible, the Commission will consider action to 

lift the suspension of the [State] Agreement. 

Your staff may contact [Name], Director, Office of Federal and State Materials and 

Environmental Management Programs (FSME), at [telephone number] to discuss issues 

associated with this suspension. 

Sincerely, 

[NAME] 

Enclosure: 

Order to Suspend 
Appendix C

Sample Press Release to be Issued 

by the Office of Public Affairs 

 NRC ISSUES ORDER TO SUSPEND 

 THE [STATE'S NAME] REGULATORY AUTHORITY 

The Nuclear Regulatory Commission (NRC) is suspending the [State's Name] regulatory 

authority over [identify part of agreement affected and material affected] and reasserting NRC's 

authority in [State]. 

The action, which is effective on [Date], is being taken in order to ensure that public 

health and safety will be protected. Deficiencies exist in the [State's Name] radiation control 

program due to [actions requiring implementation of Section 274j.(1)). 

Under Section 274 of the Atomic Energy Act (the Act), as amended, individual States 

can assume part of the NRC's regulatory authority over the possession and use of byproduct, 

source, and special nuclear materials. In order to effect and maintain such a transfer of 

authority, the State must demonstrate that its program is adequate to protect the public health 

and safety and is also compatible with the Commission's program for regulating those materials. 

The State of [Name] assumed regulatory jurisdiction when an Agreement with the NRC was 

signed in [Year]. 

Section 274j. of the Act gives the Commission authority to suspend all or part of its 

Agreement with a State if the suspension is required to protect the public health and safety, or if 

the State has not complied with one or more of the requirements of Section 274 of the Act. In 

cases where the Commission finds that program deficiencies related to either adequacy or 

compatibility are such that the Commission must take decision, the Commission will suspend all 

or part of its Agreement with the State. 

Licensees in [State] are being advised of the NRC's action in the Order [Date]. In the 

meantime, the affected [State] licenses, as currently issued, will remain in effect under NRC's 

authority.
Appendix D 

Sample Letter to Congressional Committees 

[Appropriate Congressional 

Oversight Committees] 

Dear Mr. Chairman: 

At the request of the Governor of [State], the Nuclear Regulatory Commission (NRC), on [Date], 

agreed to suspend [State's] Agreement relinquishing the NRC regulatory authority over [identify 

categories of material under the agreement], and to reassert NRC regulatory authority over 

these materials, in order to protect the public health and safety. 

 

[or if appropriate] 

[Describe circumstance by which NRC is suspending the agreement and details of a hearing, if 

held.] 

Once the deficiencies are addressed and the radiation control program is found to be adequate 

and compatible, the Commission will consider action to lift the suspension of the Agreement 

with the [State]. 

The effective date of the suspension is [Date]. Enclosed is a copy of the Federal Register

Notice which announces the suspension. We also expect to issue a press release in 

conjunction with the issuance of the Federal Register Notice. 

Sincerely, 

[NAME], Director 

Office of Congressional Affairs 

Enclosure: 

Order to Suspend
Appendix E

Sample Letter to U.S. Department of Labor on Suspension 

Occupational Safety and Health Administration 

Department of Labor 

Dear Administrator: 

This is to advise the Department of Labor that under Section 274 of the Atomic Energy Act, the 

Nuclear Regulatory Commission (NRC) has suspended [State's] Agreement relinquishing the 

NRC regulatory authority over [identify categories of material under the agreement]. 

The Order, which is effective on [Date], is being taken in order to ensure that public health and 

safety will be protected. Deficiencies exist in [State's Name] due to [facts requiring 

implementation of Section 274j.(1)]. [State] desires to maintain and not terminate the 

Agreement. When the deficiencies in the program have been addressed and the program is 

found to be adequate to protect public health and safety and compatible with the NRC program, 

NRC will consider lifting the suspension. 

Enclosed is a copy of the Order for your information. We will notify you of the future changes in 

the status of the program. 

Sincerely, 

[NAME], Director 

Division of Materials Safety and State Agreements 

Office of Federal and State Materials 

 and Environmental Management Programs 

Enclosure: 

Order to Suspend 
Appendix F

Sample Letter to Licensees Regarding Suspension and Reassertion 

Attention: [State] Licensees 

The Nuclear Regulatory Commission (NRC) has suspended [State's] regulatory authority over 

[identify part of agreement affected and material affected] and is reasserting NRC's authority in 

[State] by an Order issued [Date]. 

The action, which is effective on [Date], is being taken in order to ensure that public health and 

safety will be protected. Deficiencies exist in [State] due to [facts requiring implementation of 

Section 274j.(1)]. 

Section 274j. of the Atomic Energy Act (the Act) gives the Commission authority to suspend all 

or part of its Agreement with a State if the suspension is required to protect the public health 

and safety, or if the State has not complied with one or more of the requirements of the Act. In 

cases where the Commission finds that program deficiencies related to either adequacy or 

compatibility are such that the Commission must take action, the Commission may suspend all 

or part of its Agreement with the State. 

This letter is to advise you that activities being conducted under your [State's] license will be 

subject to regulatory control by the NRC. In the meantime, your [State] licenses, as currently 

issued, will remain in effect under NRC's authority [unless specific issues are addressed]. All 

communications concerning your use of [appropriate materials] should be addressed to: 

Regional Office 

Address 

Phone number 

A copy of the Order is available from the Regional Office. When [State] has addressed the 

deficiencies identified and the suspension is no longer required to protect the public health and 

safety, the [State's] regulatory authority will be returned. You will be notified of any changes in 

the regulatory authority. 

Sincerely, 

 [NAME] 

Regional Administrator 

cc: [State]
Appendix G

Sample Letter to All States Regarding Suspension and 

Reassertion 

ALL AGREEMENT AND NON-AGREEMENT STATES 

U. S. NUCLEAR REGULATORY COMMISSION ORDER TO SUSPEND THE [STATE'S NAME] 

REGULATORY AUTHORITY (FSME-YY-NNN) 

Purpose: To inform all States of the Order issued by the U. S. Nuclear Regulatory Commission 

(NRC) suspending [State's] regulatory authority over [identify part of agreement affected and 

material affected] and reasserting NRC's authority in [State]. 

Background: Deficiencies exist in [State] due to [facts requiring implementation of Section 

274j.(1)]. 

Discussion: Enclosed, for your information, is the Order issued by the NRC suspending 

[State's] regulatory authority over [identify part of agreement affected and material affected] and 

reasserting NRC's authority in [State]. The action, which is effective on [Date], is being taken in 

order to ensure that public health and safety will be protected. 

Licensees in [State] are being advised of the NRC's action. In the meantime, the affected 

[State] licenses, as currently issued, will remain in effect under NRC's authority. 

If you have any questions regarding this correspondence, please contact me or the individual 

named below. 

POINT OF CONTACT: [Staff Contact] INTERNET: XXX@NRC.GOV 

TELEPHONE: FAX: 

[NAME], Director 

Division of Materials Safety and State Agreements 

Office of Federal and State Materials 

 and Environmental Management Programs 

Enclosure: 

Order to Suspend