Federal Register / Vol. 65, No. 226 / Wednesday, November 22, 2000 / Rules and Regulations 70287

NUCLEAR REGULATORY

COMMISSION

10 CFR Part 110

RIN 3150–AG51

Export and Import of Nuclear

Equipment and Materials

AGENCY: Nuclear Regulatory

Commission.

ACTION: Final rule.

SUMMARY: The Nuclear Regulatory

Commission (NRC) is amending its

regulations pertaining to the export and

import of nuclear equipment and

materials. This rulemaking is necessary

to reflect the nuclear non-proliferation

policies of the Executive Branch; U.S.

Government reporting obligations to the

International Atomic Energy Agency

(IAEA) and under agreements for

cooperation in the peaceful uses of

nuclear energy; the multilateral export

control recommendations of the Nuclear

Suppliers Group (NSG) and the Nuclear

Non-proliferation Treaty Exporters

Committee (Zangger Committee), of

which the U.S. is a member; and IAEA

publication INFCIRC/225/Rev. 4, ‘‘The

Physical Protection of Nuclear Material

and Nuclear Facilities.’’ Also, this final

rule makes certain editorial revisions,

and corrects typographical errors.

DATES: Effective December 22, 2000.

The incorporation by reference of the

material in this document is approved

as of December 22, 2000.

FOR FURTHER INFORMATION CONTACT:

Suzanne Schuyler-Hayes, Office of

International Programs, U.S. Nuclear

Regulatory Commission, Washington,

DC. 20555–0001, telephone (301) 415–

2333, e-mail ssh@nrc.gov.

SUPPLEMENTARY INFORMATION:

Background

The tracking and reporting of

government-to-government obligations

attached to nuclear material or

equipment is essential to fulfilling U.S.

Government commitments under

various agreements for cooperation in

the peaceful uses of nuclear energy

pursuant to Section 123 of the Atomic

Energy Act (AEA). ‘‘Obligations’’

include controls, peaceful end-use

assurances, and other conditions placed

on the transfer of equipment or material.

The U.S. Government is required to

report to the governments of other

countries the inventory of subject

nuclear material held in the United

States. To meet this requirement, NRC

must keep adequate records showing

obligations to countries that have

exported nuclear material to the U.S.,

and track any nuclear material produced

through the use of that material. The

U.S. must also obtain consent before

releasing obligated material to a third

party.

For the past ten or more years, the

situation has become more complicated,

reflecting the growing complexity of the

nuclear fuel cycle. To ensure that

information regarding obligations is

reported to the government in advance

of shipments, in accordance with NRC’s

need to obtain prior consent for the

retransfer of obligated material, this

rulemaking institutes a change from

solely reporting the country of origin of

nuclear material to reporting all

obligations attached to the material on

NRC license applications. This rule

extends the required prior notice on

shipments of Canadian and Australian

origin material to all shipments of

obligated material, including, but not

limited to, EURATOM and Japan.

This rulemaking is clear that as

obligations are commitments made by

the U.S. Government to another

government on behalf of NRC licensees,

the U.S. Government maintains the

responsibility for informing industry of

obligations attached to imported

material and for approving changes to

obligations on material while it is in the

U.S.

Section by Section Analysis

Section 110.1 is amended by adding

a paragraph to clarify that bond

shipments, or shipments which are only

passing through the U.S., do not require

an NRC import or export license;

however, they must comply with the

Department of Transportation/IAEA

packaging, and state transportation

requirements.

Section 110.2 is amended to add

definitions on subjects on which the

NRC receives many public inquiries.

These definitions are taken from the

Atomic Energy Act (AEA), or are

defined by the Executive Branch and the

multilateral export control regimes of

which the U.S. is a member, including

the Nuclear Suppliers Group and the

Zangger NPT Exporters Committee.

They include byproduct material,

depleted uranium, dual-use, heels,

natural uranium, nuclear reactor

internals, obligations, restricted

destinations and source material. A

citation in the definition of ‘‘Nuclear

Referral List’’ is corrected, and the

definition of ‘‘Source material’’ is

revised.

In § 110.6, additional information is

inserted on retransfers to satisfy prior

consent reporting obligations on nuclear

equipment and material subject to

agreements for cooperation.

In § 110.7, paragraph (b) is updated to

include § 110.23.

In § 110.8, reference to a new

Appendix N on lithium isotope

separation plant equipment and

components and reference to a new

Appendix O on fuel fabrication plant

equipment and components are added.

Plants for the conversion of plutonium

are added to paragraph (f). A new

paragraph is added on plants for the

production of special nuclear material

using accelerator-driven subcritical

assembly systems capable of continuous

operation above 5 MWe thermal.

In § 110.10, the reference to the

completion of rulemaking proceedings

is deleted in the interest of procedural

efficiency.

In § 110.21, a new paragraph is added

to indicate that uranium, enriched to

less than 20 percent in U–235, in the

form of UF6 heels in cylinders being

returned to suppliers in EURATOM will

no longer require a specific NRC license,

but is subject to an NRC general license.

In § 110.22, a new paragraph is added

to permit the export of uranium,

enriched to less than 20 percent in U–

235, in the form of UF6 heels in

cylinders being returned to suppliers in

EURATOM under an NRC general

license. The specific license required

previously is revoked.

In § 110.23, the export of byproduct

material, californium–253 and –254,

and neptunium–235 are added to bring

NRC’s regulations into conformance

with NSG Guidelines. Yearly reporting

requirements on exports of americium

and neptunium are added to this section

to fulfill a U.S. commitment to the IAEA

on the voluntary tracking of these

byproduct materials. Also, this section

is clarified in an effort to make it more

readable to the public.

In § 110.26 a paragraph is added to

indicate that a general license for the

export of nuclear reactor components, in

final or semi-fabricated form, is

amended to clarify that it covers

components solely of U.S. origin. Also,

this section is revised to include

additional countries to which exports

may go under a general license. The

U.S. has received broad generic

assurances from these countries under

section 109(b) of the AEA that these

components will not be used for

explosive purposes or retransfered to a

third country without U.S. permission.

These countries include Bulgaria, Czech

Republic, Latvia, Lithuania, New

Zealand, and Romania. The NRC is

revoking the general license for the

export of nuclear reactor components to

research reactors capable of continuous

operation above 5MWe thermal,

whether in final or semi-fabricated form,

70288 Federal Register / Vol. 65, No. 226 / Wednesday, November 22, 2000 / Rules and Regulations

to conform 10 CFR part 110 with 10 CFR

part 810. A new paragraph is added to

indicate that the general license for the

export of nuclear reactor components

does not authorize the export of

components to research reactors, in final

or semi-fabricated form, capable of

continuous operation above 5 MWe

thermal, and that a specific license is

required for these exports.

Section 110.27 is revised by adding

the words ‘‘NRC or Agreement State’’

after the word ‘‘specific’’ to clarify the

fact that a consignee must have a

general or specific domestic license to

possess the material before it can be

imported to the U.S.

In § 110.28, ‘‘Sudan’’ is added to the

list of embargoed destinations for which

a U.S. trade embargo is in effect.

In § 110.30, ‘‘Belarus’’, ‘‘Cyprus’’,

‘‘Latvia’’, ‘‘Slovenia’’, and ‘‘Turkey’’ are

added as new NSG members.

In § 110.31, the title of the person

with whom specific license applications

are to be filed is updated.

In § 110.32, the information required

in an application for a specific license

(NRC Form 7) is clarified to satisfy

reporting obligations on imported or

exported nuclear equipment and

material incurred by the U.S.

Government pursuant to agreements for

cooperation with other countries.

In § 110.44, the physical security

standards are being revised to

incorporate by reference the update and

recommendations contained in the

IAEA document, INFCIRC/225/Rev.4,

June 1999, ‘‘The Physical Protection of

Nuclear Material and Nuclear

Facilities.’’ The standard that NRC

continues to apply is that physical

protection in recipient countries is

sufficient to protect against the

proliferation of nuclear weapons.

Although the IAEA has included

‘‘radiological sabotage’’ as a distinct

consideration of physical security, it is

commonly understood in the

international community to involve

radiological health and safety rather

than nuclear non-proliferation concerns.

NRC is not required to consider foreign

health and safety in its export licensing

decisions. Also, the title of the person

to whom communications are to be

addressed, and specific license

applications are to be filed, is updated.

In § 110.50, the title of the notifying

official is updated to Deputy Director. A

requirement is added that licensees

must notify the Deputy Director of the

Office of International Programs (OIP) in

writing at least 40 days before the export

of foreign-origin nuclear material or

equipment, and may not ship this

material or equipment until authorized

by the Deputy Director, OIP. This

information is needed to satisfy U.S.

Government obligations under various

agreements for cooperation with other

countries, as defined in § 110.2, which

require prior consent for shipment of

foreign-origin nuclear material or

equipment. Foreign-origin material and

equipment exports subject to such

obligations include, but are not limited

to, those going to Australia, Canada,

EURATOM, and Japan.

In § 110.70, an exception is inserted

for exports of heavy water to Canada.

In § 110.82, the length of time to file

hearing requests and intervention

petitions after receipt of license

applications in the Public Document

Room is expanded from 15 to 30 days

in the interest of procedural efficiency.

In appendix A to part 110, a

correction is made to delete ‘‘specially

designed’’, and insert ‘‘especially

designed.’’

In appendix B to part 110, an editorial

error in the power range of 50–100 volt

amps is corrected to read 50–1000 volt

amps. The corresponding power range

in the NSG Trigger List is 50–1000 volts

amps.

In appendix J to part 110, the heading

is revised to add plutonium. Following

the Note, a subheading (a) on uranium

conversion plant equipment is added

and a new paragraph on especially

designed or prepared systems for the

conversion of UO2 to UCl4 as feed for

electromagnetic enrichment and plants

for plutonium conversion to bring part

110 into conformance with current NSG

guidelines. Also, a note, subheading (b)

on plutonium conversion plant

equipment, and two paragraphs are

added to cover especially designed or

prepared plant equipment for the

conversion of plutonium from one

chemical species to another, including

PuO2 to PuF4 and of PuF4 to plutonium

metal.

In Appendix K to Part 110, a

paragraph is added on complete heavy

water upgrade systems or columns.

In appendix L to part 110, the radio

nuclides ‘‘californium–253’’ and

‘‘californium–254’’, and ‘‘neptunium–

235’’ are added to bring Part 110 into

conformance with current NSG

guidelines.

Appendix N to part 110 is added to

illustrate the entry in § 110.8(c) on

plants for the separation of the isotopes

of lithium and especially designed or

prepared assemblies and components

for these plants.

Appendix O to part 110 is added to

illustrate the entry in § 110.8(e) on

plants for the fabrication of nuclear

reactor fuel elements, and especially

designed or prepared equipment and

components for these plants.

Because the substance of this rule

involves a foreign affairs function of the

United States, the notice and comment

provisions of the Administrative

Procedure Act do not apply (5 U.S.C.

553(a)(1)). In addition, solicitation of

public comments would delay United

States conformance with its

international obligations, and would be

contrary to the public interest (5 U.S.C.

553(b)).

Small Business Regulatory Enforcement

Fairness Act

In accordance with the Small

Business Regulatory Enforcement

Fairness Act of 1996, the NRC has

determined that this action is not a

major rule and has verified this

determination with the Office of

Information and Regulatory Affairs of

OMB. The rule is necessary to conform

the nuclear non-proliferation policies of

the United States with international

export guidelines.

Environmental Impact: Categorical

Exclusion

The NRC has determined that this

final rule is the type of action described

in categorical exclusion 10 CFR

51.22(c)(1) and (c)(2). Therefore, neither

an environmental impact statement nor

an environmental assessment has been

prepared for this final rule.

Paperwork Reduction Act Statement

This final rule increases the burden

on exporters of americium and

neptunium to submit an annual reports

of shipments made. The public burden

for this information collection is

estimated to average .5 hour(s) per

request. Because the burden for this

information collection is insignificant,

Office of Management and Budget

(OMB) clearance is not required.

Existing requirements were approved by

OMB approval number 3150–0036.

Public Protection Notification

If a means used to impose an

information collection does not display

a currently valid OMB control number,

the NRC may not conduct or sponsor,

and a person is not required to respond

to, the information collection.

Regulatory Flexibility Certification

As required by the Regulatory

Flexibility Act of 1980 (5 U.S.C. 605(b)),

the Commission certifies that this rule

does not have a significant impact on a

substantial number of small entities.

This rule is necessary to reflect the

nuclear non-proliferation policies of the

executive branch and U.S. Government

obligations under nuclear agreements

for cooperation, and to update the

Federal Register / Vol. 65, No. 226 / Wednesday, November 22, 2000 / Rules and Regulations 70289

export controls of the United States in

respect to the multilateral export control

recommendations of the Nuclear Nonproliferation Treaty Exporters

Committee (Zangger Committee) and the

Nuclear Suppliers Group (NSG), of

which the United States is a member.

Voluntary Consensus Standards

The National Technology Transfer Act

of 1995, Pub. L.104–113, requires that

Federal agencies use technical standards

that are developed or adopted by

voluntary consensus standards bodies

unless the use of such a standard is

inconsistent with applicable law or

otherwise impractical. The changes in

this rulemaking are not inconsistent

with any voluntary consensus standard.

Backfit Analysis

The NRC has determined that the

backfit rule, 10 CFR 50.109, does not

apply to this final rule and a backfit

analysis is not required, because these

amendments do not involve any

provisions that would impose backfits

as defined in 10 CFR 50.109. The rule

does not constitute a backfit because it

does not propose any changes or

additions to requirements for existing

structures, systems, components,

procedures, organizations or designs

associated with the construction or

operation of a facility.

List of Subjects in 10 CFR Part 110

Administrative practice and

procedure, Classified information,

Criminal penalties, Exports, Imports,

Incorporation by reference,

Intergovernmental relations, Nuclear

materials, Nuclear power plants and

reactors, Reporting and recordkeeping

requirements, Scientific equipment.

For the reasons set out in the

preamble and under the authority of the

Atomic Energy Act of 1954, as amended,

the Energy Reorganization Act of 1974,

as amended, and 5 U.S.C. 552 and 553,

the NRC is adopting the following

amendments to 10 CFR part 110.

PART 110—EXPORT AND IMPORT OF

NUCLEAR EQUIPMENT AND

MATERIAL

1. The authority citation for part 110

continues to read as follows:

Authority: Secs. 51, 53, 54, 57, 63, 64, 65,

81, 82, 103, 104, 109, 111, 126, 127, 128, 129,

161, 181, 182, 183, 187, 189, 68 Stat. 929,

930, 931, 932, 933, 936, 937, 948, 953, 954,

955, 956, as amended (42 U.S.C. 2071, 2073,

2074, 2077, 2092–2095, 2111, 2112, 2133,

2134, 2139, 2139a, 2141, 2154–2158, 2201,

2231–2233, 2237, 2239); sec. 201, 88 Stat.

1242, as amended (42 U.S.C. 5841); sec. 5,

Pub. L. 101–575, 104 Stat. 2835 (42 U.S.C.

2243).

Sections 110.1(b)(2) and 110.1(b)(3) also

issued under Pub. L. 96–92, 93 Stat. 710 (22

U.S.C. 2403). Section 110.11 also issued

under sec. 122, 68 Stat. 939 (42 U.S.C. 2152)

and secs. 54c and 57d, 88 Stat. 473, 475 (42

U.S.C. 2074). Section 110.27 also issued

under sec. 309(a), Pub. L. 99–440. Section

110.50(b)(3) also issued under sec. 123, 92

Stat. 142 (42 U.S.C. 2153). Section 110.51

also issued under sec. 184, 68 Stat. 954, as

amended (42 U.S.C. 2234). Section 110.52

also issued under sec. 186, 68 Stat. 955 (42

U.S.C. 2236). Sections 110.80–110.113 also

issued under 5 U.S.C. 552, 554. Sections

110.130–110.135 also issued under 5 U.S.C.

553. Sections 110.2 and 110.42(a)(9) also

issued under sec. 903, Pub. L. 102–496 (42

U.S.C. 2151 et seq.).

2. In § 110.1, paragraph (b)(6) is added

to read as follows:

§ 110.1 Purpose and scope.

* * * * *

(b) * * *

(6) Shipments which are only passing

through the U.S. (in bond shipments) do

not require an NRC import or export

license; however, they must comply

with the Department of Transportation/

IAEA packaging, and state

transportation requirements.

3. In § 110.2, the definitions for

‘‘Byproduct material’’, ‘‘Nuclear Referral

List’’, and ‘‘Source material’’ are

revised, and definitions for ‘‘Depleted

uranium’’, ‘‘Dual-use’’, ‘‘Embargoed’’,

‘‘Heels’’, ‘‘Natural uranium’’, ‘‘Nuclear

reactor internals’’, ‘‘Obligations’’, and

‘‘Restricted destinations’’ are added in

alphabetical order to read as follows:

§ 110.2 Definitions.

* * * * *

Byproduct material means

(1) Any radioactive material (except

special nuclear material) yielded in, or

made radioactive by, exposure to the

radiation incident to the process of

producing or using special nuclear

material (as in a reactor); and

(2) The tailings or wastes produced by

the extraction or concentration or

uranium or thorium from ore (see 10

CFR 20.1003).

* * * * *

Depleted uranium means uranium

having a percentage of uranium-235 less

than the naturally occurring distribution

of U–235 found in natural uranium (less

than 0.711 weight percent U–235). It is

obtained from spent (used) fuel

elements or as byproduct tails or

residues from uranium isotope

separation.

* * * * *

Dual-use means equipment and

materials that may be used in nuclear or

non-nuclear applications.

* * * * *

Embargoed means that no nuclear

material or equipment can be exported

to certain countries under an NRC

general license because there is a U.S.

trade embargo in effect.

* * * * *

Heels means small quantities of

natural, depleted or low-enriched

uranium (to a maximum of 20 percent),

in the form of UF6 left in emptied

transport cylinders being returned to

suppliers after delivery of the product.

* * * * *

Natural uranium means uranium as

found in nature, containing about 0.711

percent of Uranium 235, 99.283 percent

of uranium-238, and a trace (0.006

percent) of uranium-234.

* * * * *

Nuclear reactor internals means the

major structures within a reactor vessel

that have one or more functions such as

supporting the core, maintaining fuel

alignment, directing primary coolant

flow, providing radiation shields for the

reactor vessel, and guiding in-core

instrumentation.

Nuclear Referral List (NRL) means the

nuclear-related, dual-use commodities

on the Commerce Control List that are

subject to the nuclear non-proliferation

export licensing controls of the

Department of Commerce. They are

contained in 15 CFR part 774 of the

Department of Commerce’s Export

Administration Regulations and are

designated by the symbol (NP) as the

reason for control.

Obligations means the commitments

entered into by the U.S. Government

under Atomic Energy Act (AEA) section

123 agreements for cooperation in the

peaceful uses of atomic energy. Imports

and exports of material or equipment

pursuant to such agreements are subject

to these commitments, which in some

cases involve an exchange of

information on imports, exports,

retransfers with foreign governments,

peaceful end-use assurances, and other

conditions placed on the transfer of the

material or equipment. The U.S.

Government informs the licensee of

obligations attached to material or

equipment being imported into the U.S.

and approves changes to those

obligations.

* * * * *

Restricted destinations means

countries that are not parties to the NPT

or are listed for reasons recommended

by the executive branch.

* * * * *

Source material means:

(1) Natural or depleted uranium, or

thorium, other than special nuclear

material; or

70290 Federal Register / Vol. 65, No. 226 / Wednesday, November 22, 2000 / Rules and Regulations

(2) Ores that contain by weight 0.05

percent or more of uranium, thorium or

depleted uranium.

* * * * *

§ 110.4 [Amended]

4. In § 110.4, in the first sentence, the

words ‘‘Director for Nonproliferation,

Exports, and Multilateral Relations’’ are

revised to read ‘‘Deputy Director, Office

of International Programs’’.

§ 110.6 [Amended]

5. Section 110.6 is amended by

adding the following sentence at the end

of paragraph (a): ‘‘Department of Energy

authorization is also required for the

retransfer of obligated nuclear

equipment and material (see definition

of ‘‘obligated’’ in § 110.2).’’

6. In § 110.7, paragraph (b) is revised

to read as follows:

§ 110.7 Information collection

requirements: OMB approval.

* * * * *

(b) The approved information

collection requirements contained in

this part appear in §§ 110.7a, 110.23,

110.26, 110.27, 110.31, 110.32, 110.50,

110.51, 110.52, and 110.53

* * * * *

§ 110.8 [Amended]

7. Section 110.8 is amended as

follows:

a. Paragraphs (a), (d), (f), and (g) are

amended by revising the word

‘‘appendix’’ to read ‘‘Appendix’’;

b. Paragraph (c) is amended by adding

‘‘(See Appendix N to this part)’’ at the

end of the paragraph;

c. Paragraph (e) is amended by adding

‘‘(See Appendix O to this part)’’ at the

end of the paragraph;

d. Paragraph (f) is amended by adding

after the word ‘‘uranium’’ the words

‘‘and plutonium’’;

e. Paragraph (h) is redesignated as

paragraph (i); and

f. A new paragraph (h) is added to

read as follows:

* * * * *

(h) Plants for the production of

special nuclear material using

accelerator-driven subcritical assembly

systems capable of continuous operation

above 5 MWe thermal.

* * * * *

§ 110.10 [Amended]

8. Section 110.10(b) is amended by

removing the words ‘‘and after

completion of rulemaking proceedings

under subpart K of this part’’.

9. Section 110.21 is amended by

adding a new paragraph (b)(3) to read as

follows:

§ 110.21 General license for the export of

special nuclear material.

* * * * *

(b) * * *

(3) Uranium, enriched to less than 20

percent in U–235, in the form of UF6

heels in cylinders being returned to

suppliers in EURATOM.

* * * * *

10. In § 110.22, paragraphs (c) through

(f) are redesignated as (d) through (g),

and a new paragraph (c) is added to read

as follows:

§ 110.22 General license for the export of

source material.

* * * * *

(c) A general license is issued to any

person to export uranium, enriched to

less than 20 percent in U–235, in the

form of UF6 heels in cylinders being

returned to suppliers in EURATOM.

* * * * *

11. Section 110.23 is revised to read

as follows:

§ 110.23 General license for the export of

byproduct material.

(a) A general license is issued to any

person to export byproduct material (see

appendix L to this part) except that:

(1) This section does not authorize the

export of byproduct material to any

embargoed country listed in § 110.28, or

byproduct material in radioactive waste,

or tritium for recovery or recycle

purposes.

(2) Actinium-225 and -227,

americium-241 and -242m, californium248, -249, -250, -251, -252, -253, and

-254, curium-240, -241, -242, -243, -244,

-245, -246 and -247, einsteinium-252,

-253, -254 and -255, fermium-257,

gadolinium-148, mendelevium-258,

neptunium-235 and -237, polonium210, and radium-223 must be contained

in a device, or a source for use in a

device, in quantities of less than 100

millicurie of alpha activity (see § 110.2

for specific activity) per device or

source, unless the export is to a country

listed in § 110.30. Exports of americium

and neptunium are subject to the

reporting requirements listed in

paragraph (b) of this section.

(3) For americium-241, exports must

not exceed one curie (308 milligrams)

per shipment or 100 curies (30.8 grams)

per year to any country listed in

§ 110.29, and must be contained in

industrial process control equipment or

petroleum exploration equipment in

quantities not to exceed 20 curies (6.16

grams) per device or 200 curies (61.6

grams) per year to any one country.

(4) For neptunium-235 and -237,

exports must not exceed individual

shipments of one gram, not to exceed 10

grams per year to any one country.

(5) For polonium-210, the material

must be contained in static eliminators

and may not exceed 100 curies (22

grams) per individual shipment.

(6) For tritium in any dispersed form,

except for recovery or recycle purposes

(e.g., luminescent light sources and

paint, accelerator targets, calibration

standards, labeled compounds), exports

must not exceed the quantity of 10

curies (1.03 milligrams) or less per item,

not to exceed 1,000 curies (103

milligrams) per shipment or 10,000

curies (1.03 grams) per year to any one

country. Exports of tritium to the

countries listed in § 110.30 must not

exceed the quantity of 40 curies (4.12

milligrams) or less per item, not to

exceed 1,000 curies (103 milligrams) per

shipment or 10,000 curies (1.03 grams)

per year to any one country, and exports

of tritium in luminescent safety devices

installed in aircraft must not exceed a

quantity of 40 curies (4.12 milligrams)

or less per light source.

(b) Persons making exports under the

general license established by paragraph

(a) of this section shall submit by

February 1 of each year one copy of a

report of all americium and neptunium

shipments during the previous calendar

year. The report must include:

(1) A description of the material,

including quantity;

(2) Approximate shipment dates; and

(3) A list of recipient countries, end

users, and intended use keyed to the

items shipped.

(c) Persons using a general license

issued under paragraph (a) of this

section as authority to export byproduct

material as incidental radioactive

material shall file a completed NRC

Form 7 before the export takes place if

the total weight of the shipment exceeds

100 kilograms.

12. Section 110.26 is amended as

follows:

a. Paragraphs (a)(1) and (a)(2) are

redesignated as (a)(2) and (a)(3),

respectively;

b. Newly redesignated paragraph

(a)(3) is amended by adding ‘‘Bulgaria’’,

‘‘Czech Republic’’, ‘‘Latvia’’,

‘‘Lithuania’’, ‘‘New Zealand’’, and

‘‘Romania’’ in alphabetical order;

c. Paragraphs (b) and (c) are

redesignated as (c) and (d), respectively;

and

d. New paragraphs (a)(1) and (b) are

added to read as follows:

§ 110.26 General license for the export of

nuclear reactor components.

(a) * * *

(1) The component is of U.S. origin,

* * * * *

(b) This general license does not

authorize the export of components, in

Federal Register / Vol. 65, No. 226 / Wednesday, November 22, 2000 / Rules and Regulations 70291

final or semi-fabricated form, for

research reactors capable of continuous

operation above 5 MWe thermal.

* * * * *

§ 110.27 [Amended]

13. Section 110.27(a)(3) is amended

by adding the words ‘‘NRC or

Agreement State’’ after the word

‘‘specific’’.

§ 110.28 [Amended]

14. Section 110.28 is amended by

adding ‘‘Sudan’’ after ‘‘North Korea’’.

§ 110.30 [Amended]

15. Section 110.30 is amended by

adding ‘‘Belarus’’, ‘‘Cyprus’’, ‘‘Latvia’’,

‘‘Slovenia’’, and ‘‘Turkey’’ in

alphabetical order.

§ 110.31 [Amended]

16. Section 110.31(a) is amended by

removing the words ‘‘Director for

Nonproliferation, Exports, and

Multilateral Relations’’ and adding in

their place ‘‘Deputy Director, Office of

International Programs’’.

§ 110.32 [Amended]

17. Section 110.32(c) is amended by

removing ‘‘if known.’’ and adding the

following in their place: ‘‘and any other

countries that have processed the

material prior to its import into the U.S.

(Note: This is meant to include all

obligations attached to the material,

according to the definition of obligations in

§ 110.2. Licensees must keep records of

obligations attached to material which they

own or is in their possession.)’’

18. In § 110.44, paragraphs (a) and

(b)(1) are revised to read as follows:

§ 110.44 Physical security standards.

(a) Physical security measures in

recipient countries must provide

protection at least comparable to the

recommendations in the current version

of IAEA publication INFCIRC/225/Rev.

4 (corrected), June 1999, ‘‘The Physical

Protection of Nuclear Material and

Nuclear Facilities,’’ and is incorporated

by reference in this part. This

incorporation by reference was

approved by the Director of the Federal

Register in accordance with 5 U.S.C.

552(a) and 1 CFR part 51. Notice of any

changes made to the material

incorporated by reference will be

published in the Federal Register.

Copies of INFCIRC/225/Rev. 4 may be

obtained from the Deputy Director,

Office of International Programs, U.S.

Nuclear Regulatory Commission,

Washington, DC 20555–0001, and are

available for inspection at the NRC

library, 11545 Rockville Pike, Rockville,

Maryland 20852–2738. A copy is

available for inspection at the library of

the Office of the Federal Register, 800 N.

Capitol Street, NW., Suite 700,

Washington, DC.

(b) * * *

(1) Receipt of written assurances from

recipient countries that physical

security measures providing protection

at least comparable to the

recommendations set forth in INFCIRC/

225/Rev. 4 (corrected).

* * * * *

19. In § 110.50 paragraph (b)(3) is

revised to read as follows:

§ 110.50 Terms.

* * * * *

(b) * * *

(3) Unless a license specifically

authorizes the export of foreign-origin

nuclear material or equipment, a

licensee may not ship such material or

equipment until;

(i) the licensee has given at least 40

days advance notice of the intended

shipment in writing to the Deputy

Director, Office of International

Programs (OIP), and

(ii) the Deputy Director, OIP, has

(A) obtained confirmation, through

either the Department of Energy or

State, that the foreign government in

question has given its consent to the

intended shipment pursuant to its

agreement for cooperation with the

United States, and

(B) communicated this in writing to

the licensee.

* * * * *

§ 110.70 [Amended]

20. In § 110.70, paragraph (b) is

amended by adding after paragraph

(b)(4) the following parenthetical note:

* * * * *

(b) * * *

(4) * * *

(Note: Does not apply to exports of heavy

water to Canada.)

* * * * *

§ 110.82 [Amended]

21. Section 110.82(c)(2) is amended

by revising ‘‘15’’ to read ‘‘30’’.

Appendix A to Part 110 [Amended]

22. In appendix A to part 110, in

paragraphs 1 through 7, the words

‘‘specially designed’’ are revised to read

‘‘especially designed’’.

Appendix B to Part 110 [Amended]

23. In appendix B to part 110,

paragraph 1.2(d) is amended by revising

‘‘50–100’’ to read ‘‘50–1000’’.

Appendix J to Part 110 [Amended]

24. Appendix J to part 110 is amended

as follows:

a. The heading is revised to read as set

forth below;

b. A new paragraph (a) is added

before paragraph (1);

c. In newly designated paragraph

(a)(1), the last sentence is amended by

revising ‘‘product’’ to read ‘‘produce’’;

d. A new paragraph (a)(9) and note are

added; and

e. A new paragraph (b) is added.

The revisions and additions read as

follows:

Appendix J to Part 110—Illustrative

List of Uranium Conversion Plant

Equipment and Plutonium Conversion

Plant Equipment Under NRC Export

Licensing Authority

* * * * *

(a) Uranium Conversion Plant Equipment

* * * * *

(9) Especially designed or prepared

systems for the conversion of UO2 to UCl4 as

feed for electromagnetic enrichment.

Note: Plutonium conversion plants and

systems may perform one or more

transformations from one plutonium

chemical species to another, including:

conversion of plutonium nitrate to PuO2,

conversion of PuO2 to PuF4 and conversion

of PuF4 to plutonium metal. Plutonium

conversion plants are usually associated with

reprocessing facilities, but may also be

associated with plutonium fuel fabrication

facilities. Many of the key equipment items

for plutonium conversion plants are common

to several segments of the chemical process

industry. For example, the types of

equipment employed in these processes may

include the following items: furnaces, rotary

kilns, fluidized bed reactors, flame tower

reactors, liquid centrifuges, distillation

columns and liquid-liquid extraction

columns. Hot cells, glove boxes and remote

manipulators may also be required. However,

few of the items are available off-the-shelf;

most would be prepared according to the

requirements and specifications of the

customer. Particular care is essential in

designing for the special radiological, toxicity

and criticality hazards associated with

plutonium. In some circumstances, special

design and construction considerations are

required to address the corrosive properties

of some of the chemicals handled (e.g., HF).

Finally, it should be noted that, for all

plutonium conversion processes, items of

equipment which individually are not

especially designed or prepared for

plutonium conversion can be assembled into

systems that are especially designed or

prepared for use in plutonium conversion.

(b) Plutonium Conversion Plant Equipment

(1) Especially designed or prepared

systems for the conversion of plutonium

nitrate to oxide.

The main functions involved in this

process are: process feed storage and

adjustment, precipitation and solid/liquor

separation, calcination, product handling,

ventilation, waste management, and process

control. The process systems are particularly

adapted so as to avoid criticality and

radiation effects and to minimize toxicity

hazards. In most reprocessing facilities, this

process involves the conversion of plutonium

70292 Federal Register / Vol. 65, No. 226 / Wednesday, November 22, 2000 / Rules and Regulations

nitrate to plutonium dioxide. Other processes

can involve the precipitation of plutonium

oxalate or plutonium peroxide.

(2) Especially designed or prepared

systems for plutonium metal production.

This process usually involves the

fluorination of plutonium dioxide, normally

with highly corrosive hydrogen fluoride, to

produce plutonium fluoride, which is

subsequently reduced using high purity

calcium metal to produce metallic plutonium

and a calcium fluoride slag. The main

functions involved in this process are the

following: fluorination (e.g., involving

equipment fabricated or lined with a

precious metal), metal reduction (e.g.,

employing ceramic crucibles), slag recovery,

product handling, ventilation, waste

management and process control. The

process systems are particularly adapted so

as to avoid criticality and radiation effects

and to minimize toxicity hazards. Other

processes include the fluorination of

plutonium oxalate or plutonium peroxide

followed by reduction to metal.

25. In appendix K to part 110,

paragraph C.2(viii) is added to read as

follows:

Appendix K to Part 110—Illustrative

List of Equipment and Components

Under NRC Export Licensing Authority

for Use in a Plant for the Production of

Heavy Water, Deuterium and

Deuterium Compounds

C.2. * * *

(viii) Complete Heavy Water Upgrade

Systems or Columns.

Complete heavy water upgrade systems or

columns especially designed or prepared for

the upgrade of heavy water to reactor-grade

deuterium concentration. These systems,

which usually employ water distillation to

separate heavy water from light water, are

especially designed or prepared to produce

reactor-grade heavy water (i.e., typically

99.75% deuterium oxide) from heavy water

feedstock of lesser concentration.

* * * * *

Appendix L to Part 100 [Amended]

26. In appendix L to part 110, the

following terms are added in

alphabetical order: ‘‘Californium-253 (Cf

253)’’, ‘‘Californium-254 (Cf 254)’’, and

‘‘Neptunium-235 (Np 235)’’.

27. A new appendix N to part 110 is

added to read as follows:

Appendix N to Part 110–Illustrative List

of Lithium Isotope Separation

Facilities, Plants and Equipment Under

NRC’s Export Licensing Authority

a. Facilities or plants for the separation of

lithium isotopes.

b. Equipment for the separation of lithium

isotopes, such as:

(1) Packed liquid-liquid exchange columns

especially designed for lithium amalgams;

(2) Mercury and/or lithium amalgam

pumps;

(3) Lithium amalgam electrolysis cells;

(4) Evaporators for concentrated lithium

hydroxide solution.

28. A new appendix O to part 110 is

added to read as follows:

Appendix O to Part 110–Illustrative List

of Fuel Element Fabrication Plant

Equipment and Components Under

NRC’s Export Licensing Authority

Note: Nuclear fuel elements are

manufactured from source or special nuclear

material. For oxide fuels, the most common

type of fuel equipment for pressing pellets,

sintering, grinding and grading will be

present. Mixed oxide fuels are handled in

glove boxes (or equivalent containment) until

they are sealed in the cladding. In all cases

the fuel is hermetically sealed inside a

suitable cladding which is designed to be the

primary envelope encasing the fuel so as to

provide suitable performance and safety

during reactor operation. Also, in all cases

precise control of processes, procedures and

equipment to extremely high standards is

necessary in order to ensure predictable and

safe fuel performance.

(a) Items that are considered especially

designed or prepared for the fabrication of

fuel elements include equipment that:

(1) Normally comes in direct contact with,

or directly processes or controls, the

production flow of nuclear material;

(2) Seals the nuclear material within the

cladding;

(3) Checks the integrity of the cladding or

the seal; and

(4) Checks the finished treatment of the

sealed fuel.

(b) This equipment or systems of

equipment may include, for example:

(1) Fully automatic pellet inspection

stations especially designed or prepared for

checking final dimensions and surface

defects of fuel pellets;

(2) Automatic welding machines especially

designed or prepared for welding end caps

onto the fuel pins (or rods);

(3) Automatic test and inspection stations

especially designed or prepared for checking

the integrity of completed fuel pins (or rods).

This item typically includes equipment for:

(i) X-ray examination of pin (or rod) end

cap welds;

(ii) Helium leak detection from pressurized

pins (or rods); and

(iii) Gamma-ray scanning of the pins (or

rods) to check for correct loading of the fuel

pellets inside.

Dated at Rockville, Maryland, this 27th day

of October 2000.

For the Nuclear Regulatory Commission.

Carl J. Paperiello,

Acting Executive Director for Operations.

[FR Doc. 00–29459 Filed 11–21–00; 8:45 am]

BILLING CODE 7590–01–P

EMERGENCY STEEL GUARANTEE

LOAN BOARD

13 CFR Part 400

RIN 3003–ZA00

Emergency Steel Guarantee Loan

Program; Commercial Lending

Practices and Re-Opening of Period for

Applications

AGENCY: Emergency Steel Guarantee

Loan Board.

ACTION: Final rule.

SUMMARY: The Emergency Steel

Guarantee Loan Board (Board) is

amending the regulations governing the

Emergency Steel Guarantee Loan

Program (Program). These changes are

meant to harmonize certain program

requirements with commercial lending

practices and to open a second period

for the submission of applications. The

intent of these changes is to streamline

program administration both for the

Board and the lenders and to allow

submission of additional applications

for loan guarantees.

DATES: This rule is effective November

22, 2000.

FOR FURTHER INFORMATION CONTACT:

Marguerite S. Owen, General Counsel,

Emergency Steel Guarantee Loan Board,

1099—14th Street, NW., Suite 2600

East, Washington, DC 20005, (202) 219–

0584.

SUPPLEMENTARY INFORMATION: On

October 27, 1999, the Board published

a final rule codifying at Chapter 4, Title

13, Code of Federal Regulations (CFR),

regulations implementing the Program,

as established in Chapter 1 of Public

Law 106–51, the Emergency Steel Loan

Guarantee Act of 1999 (64 FR 57932).

Since those initial regulations were

published the Board has made a number

of changes to the regulations meant to

conform the regulations to the

Guarantee Agreement between the

government and the lender and to allow

for participations in unguaranteed

tranches of loans guaranteed under the

Program. Today the Board is making

additional changes designed to

harmonize certain program

requirements with commercial lending

practices, streamline program operation,

and to open a second period for the

submission of applications. In addition,

several non-substantive changes are

being made to change addresses and

allow for certain delegations of

authority.