39526 Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules

• 7/2/99, Provide final rule package

to NRC staff working group for comment

• 8/13/99, Provide final rule package

to formal concurrence chain

• 9/17/99, Provide final rule package

to CRGR and ACRS

• 11/5/99, Complete briefing of CRGR

and ACRS

• 11/26/99, Provide final rule package

to Commission

• 1/7/00, Publish final rule

Comments requested: The

Commission invites advice and

recommendations from all interested

persons regarding changes to the event

reporting requirements for nuclear

power reactors contained in 10 CFR

50.72 and 50.73. Comments and

supporting reasons are particularly

requested on:

(1) the objectives;

(2) the contemplated amendments,

including:

(a) the clarity and specificity of the

contemplated criteria for reporting

design and analysis defects and

deviations; and

(b) the proposed initial reporting time

of 8 hours for events that warrant

prompt telephone notification but do

not involve emergencies;

(3) the contemplated schedule.

To the extent feasible, commenters are

requested to address the following

factors.

(1) Identify a specific reporting

requirement.

(2) Describe the problem with that

requirement.

(3) Describe the proposed resolution.

(4) Estimate the change in resource

burden as a result of the proposed

resolution.

In order to support meaningful

consideration, comments on resource

burden should provide the basis for the

burden estimate in sufficient detail to

allow specific identification of what

causes the burden and how particular

changes might affect the burden.

Other Reactor Reporting Requirements

Objectives: The NRC is also interested

in evaluating other reactor reporting

rules (beyond 10 CFR 50.72 and 50.73)

to identify areas where reporting

requirements can be risk-informed and/

or simplified. For example, the time

limit for reporting could be adjusted

based on the safety significance of the

event or issue and the need for NRC’s

immediate action. The burden

associated with reporting events,

conditions or issues with little or no

safety or risk significance should be

minimized.

Comments requested: Public

comments are requested to identify and

propose changes to other reactor

reporting requirements (beyond 10 CFR

50.72 and 50.73) that are potential

candidates for modifying to a

simplified, less burdensome, more riskinformed approach. This issue will be

included in the agenda for the public

meeting to discuss this ANPR, which is

identified in the schedule provided

above.

List of Subjects in 10 CFR Part 50

Antitrust, Classified information,

Criminal penalties, Fire protection,

Intergovernmental relations, Nuclear

power plants and reactors, Radiation

protection, Reactor siting criteria,

Reporting and recordkeeping

requirements.

The authority citation for this

document is: 42 U.S.C. 2201; 42 U.S.C.

5841.

Dated at Rockville, Maryland, this 16th day

of July, 1998

For the Nuclear Regulatory Commission.

L. Joseph Callan,

Executive Director for Operations

[FR Doc. 98–19637 Filed 7–22–98; 8:45 am]

BILLING CODE 7590–01–P

NUCLEAR REGULATORY

COMMISSION

10 CFR Part 72

RIN 3150–AF93

Expand Applicability of Regulations to

Holders of, and Applicants for,

Certificates of Compliance and Their

Contractors and Subcontractors

AGENCY: Nuclear Regulatory

Commission.

ACTION: Proposed rule.

SUMMARY: The Nuclear Regulatory

Commission (NRC) is proposing to

amend its regulations to expand the

applicability of its regulations to holders

of, and applicants for, Certificates of

Compliance and their contractors and

subcontractors. This amendment would

enhance the Commission’s ability to

take enforcement action against these

persons when legally binding

requirements are violated. The intent of

this action is to emphasize the safety

and regulatory significance associated

with violations of the regulations.

DATES: The comment period expires

October 6, 1998. Comments received

after this date will be considered if it is

practical to do so, but the Commission

is able to assure consideration only for

comments received on or before this

date.

ADDRESSES: Comments may be sent to:

Secretary, U.S. Nuclear Regulatory

Commission, Washington, DC 20555–

0001, Attn: Rulemakings and

Adjudications Staff. Hand deliver

comments to 11555 Rockville Pike,

Rockville, MD, between 7:45 am and

4:15 pm on Federal workdays.

You may also provide comments via

the NRC’s interactive rulemaking web

site through the NRC’s home page

(http://www.nrc.gov). This site provides

the availability to upload comments as

files (any format) if your web browser

supports that function. For information

about the interactive rulemaking site,

contact Ms. Carol Gallagher, (301) 415–

5905; e-mail CAG@nrc.gov.

Certain documents related to this

rulemaking, including comments

received by the NRC, may be examined

at the NRC Public Document Room,

2120 L Street NW., (Lower Level),

Washington, DC. These same documents

also may be viewed and downloaded

electronically via the interactive

rulemaking website established by NRC

for this rulemaking.

FOR FURTHER INFORMATION CONTACT:

Anthony DiPalo, telephone (301) 415–

6191, e-mail, ajd@nrc.gov, or Philip

Brochman, telephone (301) 415–8592,

e-mail, pgb@nrc.gov, of the Office of

Nuclear Materials Safety and

Safeguards, U.S. Nuclear Regulatory

Commission, Washington, DC 20555–

0001.

SUPPLEMENTARY INFORMATION:

Background

The Commission’s regulations at 10

CFR Part 72 were originally established

to provide specific licenses for the

storage of spent nuclear fuel in an

independent spent fuel storage

installation (ISFSI) (45 FR 74693;

November 12, 1980). Later, Part 72 was

amended to include the storage of highlevel waste (HLW) at a monitored

retrieval storage (MRS) installation. In

1990, the Commission amended Part 72

to include a process for approving the

design of spent fuel storage casks by

issuance of a certificate of compliance

(Subpart L) and for granting a general

license to reactor licensees (Subpart K)

to use NRC-approved casks for storage

of spent nuclear fuel (55 FR 29181; July

18, 1990). In the past, the Commission

has noted performance problems with

holders of, and applicants for, a

certificate of compliance under Part 72.

When the NRC identifies a failure to

comply with Part 72 requirements by

these persons, the enforcement

sanctions available under the current

NRC Enforcement Policy have been

limited to administrative actions.
Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules 39527

1NUREG–1600, ‘‘General Statement of Policy and

Procedures for NRC Enforcement Actions,’’ July

1995 (60 FR 34381; dated June 30, 1995).

The NRC Enforcement Policy 1 and its

implementing program have been

established to support the NRC’s overall

safety mission in protecting public

health and safety and the environment.

Consistent with this purpose,

enforcement actions are intended to be

used as a deterrent to emphasize the

importance of compliance with

requirements and to encourage prompt

identification and prompt,

comprehensive correction of the

violations. Enforcement sanctions

consist of Notices of Violation (NOV),

civil penalties, and orders of various

types. In addition to formal enforcement

actions, the NRC also uses related

administrative actions such as Notices

of Nonconformance (NON),

Confirmatory Action Letters, and

Demands for Information to supplement

the NRC’s enforcement program. The

NRC expects licensees and holders of,

and applicants for, a certificate of

compliance to adhere to any obligations

and commitments resulting from these

actions and will not hesitate to issue

appropriate orders to ensure that these

obligations and commitments are met.

The nature and extent of the

enforcement action is intended to reflect

the seriousness of the violation

involved. An NOV is a written notice

setting forth one or more violations of a

legally binding requirement.

Discussion

In promulgating Subpart L, the

Commission intended that selected Part

72 provisions would apply to cask

certificate holders and applicants for a

cask certificate of compliance (CoC). For

example, § 72.234(b) requires that, as a

condition for approval of a CoC,

‘‘[d]esign, fabrication, testing, and

maintenance of spent fuel storage casks

be conducted under a quality assurance

program that meets the requirements of

Subpart G of this part.’’ However, the

quality assurance requirements in

Subpart G do not refer to certificate

holders, but only to licensees and

applicants for licenses. Further, some

Subpart L regulations apply explicitly

only to ‘‘the applicant’’ (e.g., § 72.232)

or to ‘‘the cask vendor’’ (e.g.,

§ 72.234(d)(1)). Some of these provisions

are written in the passive voice so that

it is not clear who is responsible for

meeting the requirement (e.g., § 72.236).

Although certificates of compliance are

legally binding documents, certificate

holders or applicants for a CoC and their

contractors and subcontractors have not

clearly been brought within the scope of

Part 72 requirements. Because the terms

‘‘certificate holder,’’ and ‘‘applicant for

a certificate of compliance’’ do not

appear in the above-cited Part 72

regulations, the NRC has not had a clear

basis to cite these persons for violations

of Part 72 requirements in the same way

it treats licensees. When the NRC has

identified a failure to comply with Part

72 requirements by these persons, it has

issued a NON rather than NOV.

Although a NON and a NOV appear

to be similar, the Commission prefers

the issuance of a NOV because: (1) the

issuance of a NOV effectively conveys to

both the person violating the

requirement and the public that a

violation of a legally binding

requirement has occurred; (2) the use of

graduated severity levels associated

with a NOV allows the NRC to

effectively convey to both the person

violating the requirement and the public

a clearer perspective on the safety and

regulatory significance of the violation;

and (3) violation of a regulation reflects

the NRC conclusion that potential risk

to public health and safety could exist.

This evidence can then be used to

support the issuance of further

enforcement sanctions such as orders.

Over the last 2 years, the Commission

has observed problems with the

performance of several certificate

holders and their contractors and

subcontractors. These problems have

occurred in design, design control,

fabrication and corrective action areas.

Problems in these areas are typically

covered under the quality assurance

program. In FY 1996, the NRC staff

identified numerous instances of

nonconformance by certificate holders

and their contractors and subcontractors

failing to comply with requirements.

The Commission has concluded that use

of the additional enforcement sanctions

which are available in the NRC

Enforcement Policy are required to

address the performance problems

which have occurred in the spent fuel

storage industry. Consequently, the

Commission would revise Part 72 to

explicitly make certificate holders and

applicants for a CoC, and their

contractors and subcontractors, subject

to those requirements and thereby allow

the use of enforcement sanctions against

these persons, rather than

administrative sanctions. The

Commission believes that these

amendments will have the effect of

allowing both the public and those

persons designing and building spent

fuel storage casks to clearly understand

the expectations which have been

placed on them.

The proposed rulemaking will

primarily focus on amending

regulations in Subpart G to explicitly

include certificate holders, applicants

for a CoC, and their contractors and

subcontractors. Further, in Subpart L,

this proposed rulemaking would also

revise §§ 72.232, 72.234, and 72.236 to

clarify who is responsible for ensuring

that these requirements are met. Terms

such as cask user, cask model, cask

vendor, and representative of a cask

user used in these sections are not

defined and would be replaced with

defined terms. Additionally, changes

would also be made to § 72.10,

‘‘Employee Protection,’’ and § 72.11,

‘‘Completeness and Accuracy of

Information,’’ to include certificate

holders and applicants for a certificate.

Section 72.3 would be revised to (1)

incorporate definitions for ‘‘certificate

holder,’’ ‘‘certificate of compliance,’’

and ‘‘spent fuel storage cask,’’ (2) revise

the definitions for ‘‘design bases’’ and

‘‘structures, systems, and components

important to safety’’ to include the term

‘‘spent fuel storage cask,’’ and (3) revise

the definition for ‘‘design capacity’’ to

be consistent with the Commission’s

policy on the use of metric units.

Section 72.236 would be revised and

would be reissued as being subject to

the criminal penalty provisions of § 223

of the Atomic Energy Act and § 72.86(b),

‘‘Criminal Penalties,’’ would be revised

to delete mention of § 72.236 as a

conforming change.

Lastly, a new § 72.242 would be

added to Subpart L to identify

recordkeeping and reporting

requirements for certificate holders and

applicants for a CoC. Paragraphs (a), (b),

and (c) would require the certificate

holder or applicant for a CoC to

maintain any records or make any

reports which are required by the

conditions of a CoC or by the rules,

regulations, and orders of the

Commission. Paragraph (d) would

require that a certificate holder submit

a written report to the NRC within 30

days when the certificate holder

identifies certain deficiencies in the

design or fabrication of a spent fuel

storage cask which has been delivered

to a licensee. This requirement would

apply when the deficiency affects the

ability of structures, systems, and

components which are important to

safety to perform their function. This

requirement is intended to address

instances where the deficiency does not

rise to the level of a ‘‘substantial safety

hazard’’ which 10 CFR Part 21 requires

certificate holders and applicants to

report to the NRC. The Commission

believes that by requiring this

information, it will be in a position to

more effectively evaluate the scope of
39528 Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules

any potential impacts on public health

and safety from cask deficiencies and to

ensure that a licensee (who is

responsible for evaluating and resolving

the problem) completes those actions in

a timely manner. The Commission

believes that this regulation need only

apply to casks which have been

delivered to licensees (i.e., they are out

of the control of the certificate holder).

Any deficiencies identified in casks

over which the certificate holder still

has custody would be identified in

accordance with the certificate holder’s

quality assurance program. Overall, this

new section would be similar to the

reporting and recordkeeping

requirements imposed on licensees in

§§ 72.75 and 72.80.

Discussion of Proposed Amendments by

Section

Subpart A—General Provisions

Section 72.2 Scope

The term spent fuel storage cask

would be added to paragraph (b) of this

section. This is a conforming

amendment.

Section 72.3 Definitions

Definitions for spent fuel storage cask,

certificate holder, and certificate of

compliance would be added to this

section. The term spent fuel storage cask

would be added to the existing

definitions for design bases and

structures, systems, and components

important to safety. The definition for

design capacity would be revised to be

consistent with the Commission’s policy

on use of metric units.

Section 72.10 Employee Protection,

and

Section § 72.11 Completeness and

Accuracy of Information

The terms certificate holder and

applicants for a CoC would be added.

Subpart D—Records, Reports,

Inspections, and Enforcement

Section 72.86 Criminal penalties

Paragraph (b) currently includes those

sections under which criminal sanctions

are not issued. This paragraph would be

revised to delete reference to § 72.236,

because this section is being reissued as

being subject to the criminal penalty

provision of § 223 of the Atomic Energy

Act. Similarly, certificate holders and

applicants who fail to comply with the

new § 72.242 would also be subject to

criminal penalties. Therefore, § 72.242

will not be included in § 72.86(b).

Subpart G—Quality Assurance

Sections 72.140 Through 72.176

The term ‘‘certificate holder and

applicants for a CoC and their

contractors and subcontractors’’ would

be added, as appropriate, to these

sections to explicitly define

responsibilities associated with quality

assurance requirements. In 1990, when

the Commission added Subparts K and

L to Part 72 to provide a process for

approving the design of a spent fuel

storage cask, which would be used

under a general license, the

Commission’s intent was that certificate

holders and applicants for a CoC follow

the quality assurance regulations of Part

72. Section 72.234(b) required that

activities relating to the design,

fabrication, testing, and maintenance of

spent fuel storage casks shall be

conducted under a quality assurance

program that meets the requirements of

Subpart G of Part 72. However, the 1990

amendments to Part 72 did not amend

Subpart G to include certificate holders

and applicants for a CoC. In addition,

other changes would be made to

individual sections of Subpart G as

described below.

In § 72.140, paragraphs (a) and (b)

would be revised to clarify the

responsibilities of a certificate holder

and a licensee with respect to who is

responsible for ensuring that the quality

assurance program is properly

implemented. Paragraph (c) would be

revised to provide milestones for a

licensee and a certificate holder when

the NRC must approve their quality

assurance program. The notification

requirement in paragraph (d) would be

revised to require that the NRC be

notified in accordance with the standard

notification requirements contained in

§ 72.4.

To provide clarity, § 72.142 would be

rearranged. The new paragraph (a)

would be revised to indicate that all of

the persons associated with quality

assurance activities for an ISFSI or a

spent fuel storage cask (i.e., the licensee,

certificate holder, applicants, and their

contractors and subcontractors) are

responsible for implementation of the

quality assurance program.

In § 72.144 paragraphs (a) and (b),

§ 72.154 paragraph (b), § 72.162, and

§ 72.168 paragraph (a ) the term spent

fuel storage cask would be added to the

terms ISFSI and MRS.

Subpart L—Approval of Spent Fuel

Storage Casks

Section 72.232 Inspection and Tests

This section would be reformatted by

adding a new paragraph (b) and

renumbering existing paragraphs (b) and

(c). In paragraphs (a), (b), and (c) the

term ‘‘applicant’’ would be replaced

with ‘‘certificate holder, applicant for a

CoC, and their contractors and

subcontractors.’’ In paragraph (d), the

term ‘‘applicant’’ would be replaced

with ‘‘certificate holder and applicant

for a CoC.’’ Contractors and

subcontractors would not be added to

Paragraph (d) because the Commission

holds the certificate holder or applicant

for a CoC responsible for meeting this

requirement.

Paragraph (a) would be revised to

permit the inspection of premises and

activities related to the design of a spent

fuel storage cask as well as to the

fabrication and testing of such casks.

This change is made for the sake of

completeness.

New paragraph (b) would include a

requirement to permit the inspection of

records related to design, fabrication,

and testing of spent fuel storage casks.

This requirement is intended to make

clear the responsibility of certificate

holders, applicants for a CoC, and their

contractors and subcontractors to permit

access to these records. This

requirement is similar to the existing

inspection and testing regulations in 10

CFR Parts 30, 40, 50, and 70.

Section 72.234 Conditions of Approval

This section would be revised to

clarify who is responsible for

accomplishing these requirements. The

term ‘‘cask vendor’’ would be replaced

with ‘‘certificate holder.’’ The term

‘‘cask user’’ would be replaced with ‘‘a

general licensee using a cask.’’ The term

‘‘general licensee’’ has been used

because a site-specific licensee cannot

utilize the provisions of Subparts K and

L. In addition, the acronym ‘‘CoC’’ is

used in place of the term ‘‘Certificate of

Compliance’’ where appropriate.

Section 72.236 Specific Requirements

for Spent Fuel Storage Cask Approval

This section would be revised to

clarify who is responsible for

accomplishing these requirements. A

new sentence has been added at the

beginning of this section which

indicates who has responsibility for

ensuring that each of the requirements

contained in paragraphs (a) through (m)

is met. This section also would be

reissued as being subject to the criminal

penalty provisions of § 223 of the

Atomic Energy Act. Applicants for a

CoC would not be required to ensure

that the requirements of paragraphs (j)

and (k) were met because these

requirements apply to activities which

can only occur after a cask has been

fabricated; and an applicant cannot
Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules 39529

begin fabrication of a cask until a CoC

has been issued and an applicant has

become a certificate holder (see

§ 72.234(c)).

Section 72.240 Conditions for Spent

Fuel Storage Cask Reapproval

The term ‘‘user of a cask’’ would be

replaced by ‘‘a general licensee using a

cask’’ and the term ‘‘cask model’’ would

be replaced by ‘‘design of a spent fuel

storage cask.’’ The term ‘‘representative

of a cask user’’ would be replaced with

‘‘the representative of a general licensee

using a cask.’’ In addition, the acronym

‘‘CoC’’ is used in place of the term

‘‘Certificate of Compliance’’ where

appropriate.

Section 72.242 Recordkeeping and

Reports

This new section identifies additional

recordkeeping responsibilities for

certificate holders and applicants for a

CoC and reporting requirements for

certificate holders. This section is

intended to provide for any other

recordkeeping responsibilities which

are not already covered by the

regulations in § 72.234(d). This would

include records required to be kept by

a condition of the CoC or records

relating to design changes,

nonconformances, quality assurance

audits, and corrective actions.

Violations of this section would be

subject to the criminal penalty

provisions of § 223 of the Atomic Energy

Act. Paragraphs (a), (b) and (c) are

similar to the recordkeeping

requirements imposed on licensees in

§ 72.80(a), (c), and (d).

A new requirement would be

established in paragraph (d) for

certificate holders to submit written

reports to the NRC when they identify

design or fabrication deficiencies, in

structures, systems, and components

which are important to safety, for casks

which have been delivered to licensees.

This requirement is intended to inform

the NRC of deficiencies which may

affect existing casks and thereby

potentially affect public health and

safety. This requirement is similar to the

event reporting requirement imposed on

licensees in § 72.75(c)(2).

Criminal Penalties

For the purposes of Section 223 of the

Atomic Energy Act (AEA), the

Commission is issuing the proposed

rule to amend 10 CFR 72: 72.10, 72.11,

72.140 through 72.176, 72.232, 72.234,

72.236, and 72.242, under one or more

of sections 161b, 161i, or 161o of the

AEA. Willful violations of the rule

would be subject to criminal

enforcement.

Compatibility of Agreement State

Regulations

Under the ‘‘Policy Statement on

Adequacy and Compatibility of

Agreement State Programs’’ approved by

the Commission on June 30, 1997, and

published in the Federal Register

September 3, 1997 (62 FR 46517), this

rule is classified as compatibility

Category ‘‘NRC.’’ Compatibility is not

required for Category ‘‘NRC’’

regulations. The NRC program elements

in this category are those that relate

directly to areas of regulation reserved

to the NRC by the AEA or the provisions

of Title 10 of the Code of Federal

Regulations, and although an Agreement

State may not adopt program elements

reserved to NRC, it may wish to inform

its licensees of certain requirements via

a mechanism that is consistent with the

particular State’s administrative

procedure laws, but does not confer

regulatory authority on the State.

Environmental Impact: Categorical

Exclusion

The NRC has determined that this

proposed rule is the type of action

described as a categorical exclusion in

10 CFR 51.22(c)(2) and (3). Therefore,

neither an environmental impact

statement nor an environmental

assessment has been prepared for this

proposed rule.

Paperwork Reduction Act Statement

This proposed rule contains a new or

amended information collection

requirement subject to the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501,

et seq.). However, the burden from this

proposed rule is insignificant as

compared to the existing information

collection burden of Part 72. The section

added by this amendment (§ 72.242)

will add new burdens for recordkeeping

and reporting requirements. The staff

estimates this burden as six hours

annually. Therefore, the Commission

believes that this burden is insignificant

by comparison with Part 72’s overall

burden which is in excess of 21,000

hours. Existing requirements were

approved by the Office of Management

and Budget, approval numbers 3150–

0017, 3150–0151, 3150–0127, 3150–

0135, 3150–0009, 3150–0132, 3150–

0036, and 3150–0032. The amendments

of the proposed rule currently fall under

the existing approval numbers unless

OMB decides otherwise. Therefore,

under the Paperwork Reduction Act of

1995, a new clearance submittal is not

required.

Public Protection Notification

If 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 collections.

Regulatory Analysis

Statement of the Problem

The Commission’s regulations at 10

CFR Part 72 were originally designed to

provide specific licensing requirements

for the storage of spent nuclear fuel in

an independent spent fuel storage

installation (ISFSI) (45 FR 74693,

November 12, 1980). Later, these

requirements were amended to include

the storage of high-level waste (HLW) at

a monitored retrieval storage (MRS)

installation. In 1990, the Commission

amended Part 72 to include a process

for approving the design of spent fuel

storage casks by issuance of a certificate

of compliance (Subpart L) and for

granting a general license to reactor

licensees (Subpart K) to use NRCapproved casks for storage of spent

nuclear fuel (55 FR 29181, July 18,

1990). In the past, the Commission

experienced performance problems with

holders of and applicants for a

certificate of compliance under Part 72.

In FY 1996, the NRC staff identified

numerous instances of nonconformance

by certificate holders and their

contractors and subcontractors failing to

comply with requirements.

When the NRC identifies a failure to

comply with Part 72 requirements by

these persons, the NRC has issued

Notices of Nonconformance (NON). The

issuance of a NON does not effectively

convey that a violation of a legally

binding requirement has occurred.

Because the current regulations do not

clearly impose requirements on these

persons, the NRC has not taken

enforcement action such as a Notice of

Violation (NOV) against certificate

holders and applicants and their

contractors and subcontractors.

Some Part 72 provisions for cask

storage of spent fuel (e.g., the quality

assurance requirements) were intended

to apply to cask certificate holders and

applicants for cask certificates of

compliance, as well as to holders of

licenses and applicants for a license to

store spent nuclear fuel at an ISFSI.

However, some of the Part 72

requirements intended to apply to

certificate holders and applicants do not

clearly bring these persons within the

scope of the requirement. For this

reason, the NRC has not had a clear

basis to cite certificate holders and

applicants for violations of those Part 72

requirements.
39530 Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules

Purpose of the Rulemaking

The purpose of this rulemaking is to

expand the applicability of Part 72 to

holders of, and applicants for,

certificates of compliance and their

contractors and subcontractors. This

would allow the NRC staff to take

enforcement action in the form of NOVs

rather than administrative action in the

form of a NON when requirements are

violated. While it may appear that a

NON and a NOV are similar, the

Commission believes that the issuance

of a NOV is preferred because: (1) The

issuance of a NOV effectively conveys to

both the person violating the

requirement and the public that a

violation of a legally binding

requirement has occurred; (2) the use of

graduated severity levels associated

with a NOV allows the NRC to

effectively convey to both the person

violating the requirement and the public

a clearer perspective on the safety and

regulatory significance of the violation;

and (3) violation of a regulation reflects

the NRC conclusion that potential risk

to public health and safety could exist

and this evidence can then be used to

support the issuance of further

enforcement sanctions such as orders.

Current Regulatory Framework and

Proposed Changes

In promulgating Subpart L, the

Commission intended that selected Part

72 provisions would apply to cask

certificate holders and applicants for a

certificate of compliance (CoC). For

example, § 72.234(b) requires that, as a

condition for approval of a certificate of

compliance, ‘‘[d]esign, fabrication,

testing, and maintenance of spent fuel

storage casks be conducted under a

quality assurance program that meets

the requirements of subpart G of this

part.’’ However, the quality assurance

requirements in Subpart G do not refer

to certificate holders, but only to

licensees and applicants for licenses.

Some of the Subpart L regulations apply

explicitly only to ‘‘the applicant’’ (e.g.,

§ 72.232), or to ‘‘the cask vendor’’ (e.g.,

§ 72.234(d)(1)). Some are written in the

passive voice so that it is not clear who

is responsible for meeting the

requirement (e.g., § 72.236). Because of

these regulatory deficiencies, certificate

holders or applicants for a CoC and their

contractors and subcontractors have not

clearly been brought within the scope of

Part 72 requirements; and the NRC has

not had a clear basis to cite these

persons for violations of Part 72

requirements. Presently, when the NRC

has identified a failure to comply with

Part 72 requirements by these persons,

it has issued an administrative action

under the NRC’s Enforcement Policy.

The NRC Enforcement Policy and its

implementing program have been

established to support the NRC’s overall

safety mission in protecting public

health and safety and the environment.

Consistent with this purpose,

enforcement actions are intended to be

used (1) as a deterrent to emphasize the

importance of compliance with

requirements and (2) to encourage

prompt identification and prompt,

comprehensive correction of the

violations.

Enforcement sanctions consist of

Notices of Violation (NOV), civil

penalties, and orders of various types. In

addition to the formal enforcement

actions, the NRC also uses related

administrative actions such as Notices

of Nonconformance (NON),

Confirmatory Action Letters, and

Demands for Information to supplement

the NRC’s enforcement program. The

NRC expects licensees and holders of

and applicants for a certificate of

compliance to adhere to any obligations

and commitments resulting from these

actions and will not hesitate to issue

appropriate orders to ensure that these

obligations and commitments are met.

The nature and extent of the

enforcement action is intended to reflect

the seriousness of the violation

involved. A NOV is a written notice

setting forth one or more violations of a

legally binding requirement.

While it may appear that a NON and

a NOV are similar, the Commission

believes that the issuance of a NOV is

preferred because: (1) the issuance of a

NOV effectively conveys to both the

person violating the requirement and

the public that a violation of a legally

binding requirement has occurred; (2)

the use of graduated severity levels

associated with a NOV allows the NRC

to effectively convey to both the person

violating the requirement and the public

a clearer perspective on the safety and

regulatory significance of the violation;

and (3) violation of a regulation reflects

the NRC conclusion that potential risk

to public health and safety could exist.

This evidence can then be used to

support the issuance of further

enforcement sanctions such as orders.

The proposed rulemaking will

primarily focus on amending

regulations in Subparts G and L to make

certificate holders/applicants explicitly

subject to those requirements. Some of

the Subpart L regulations apply

explicitly only to ‘‘the applicant,’’ e.g.,

§ 72.232, or to ‘‘the cask vendor,’’ e.g.,

§ 72.234(d)(1), or are written in the

passive voice so that it is not clear who

is responsible for meeting the

requirement, e.g., § 72.236. This

proposed rule would revise the

regulations to place explicit

requirements on certificate holders and

applicants and their contractors and

subcontractors. Additionally, terms

contained in Subpart L such as cask

user, cask model, cask vendor, and

representative of a cask user are not

defined and would be replaced with

defined terms. Changes would be made

to § 72.10, ‘‘Employee Protection,’’ and

§ 72.11, ‘‘Completeness and Accuracy of

Information,’’ to include certificate

holders and applicants for a CoC.

Section 72.3 would be revised to (1)

incorporate definitions for ‘‘certificate

holder,’’ ‘‘certificate of compliance,’’

and ‘‘spent fuel storage cask,’’ (2) to

revise the definitions for ‘‘design bases’’

and ‘‘structures, systems, and

components important to safety’’ to

include the term ‘‘spent fuel storage

cask,’’ and (3) to revise the definition for

‘‘design capacity’’ to be consistent with

the Commission’s policy on the use of

metric units. Section 72.236 would be

revised and would be reissued as being

subject to the criminal penalty

provisions of § 223 of the Atomic Energy

Act and § 72.86(b), ‘‘Criminal

Penalties,’’ would be revised to delete

mention of § 72.236 as a conforming

change. Section 72.232 would be

reformatted by adding a new paragraph

(b) and renumbering existing paragraphs

(b) and (c). The term ‘‘applicant’’ would

be replaced by the terms ‘‘certificate

holder, applicant for a CoC, and their

contractors and subcontractors’’ or

‘‘certificate holder and applicant for a

CoC’’ as appropriate. Requirements to

permit inspection of records, premises,

and activities related to the design,

fabrication, and testing of spent fuel

storage casks have been clarified. Lastly,

a new § 72.242 would be added to

Subpart L to address additional

recordkeeping and reporting

requirements for certificate holders and

applicants for a CoC, in addition to

those already required by § 72.234(d).

This new section would be similar to

the requirements imposed on licensees

in §§ 72.75 and 72.80.

Alternatives

This regulatory analysis considered

three alternatives:

Alternative 1: Revise Part 72 to

expand the applicability of certain

provisions to certificate holders,

applicants for a CoC, and their

contractors and subcontractors.

The Commission believes that

problems in the areas of quality

assurance, quality control, fabrication

control and design control exist, are

significant, and in part reflect the fact
Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules 39531

that certificate holders and applicants,

and their contractors and

subcontractors, have not been explicitly

included in certain Part 72 requirements

despite the NRC’s intent that these

persons follow these requirements. In

the past, the Commission has been

unable to take enforcement action

against these persons when they did not

comply with the regulations, because

they have not been explicitly subject to

the requirements of Part 72. However,

the Commission believes that the need

to be able to take enforcement action to

the level of contractors and

subcontractors is important because

these persons actually accomplish the

manufacturing and testing of spent fuel

storage casks. These contractors and

subcontractors have typically

established quality assurance programs

as a consequence of their contracts with

the certificate holder.

Alternative 1 would allow the NRC to

take enforcement actions against these

persons, as necessary, by allowing the

issuance of a NOV when they fail to

comply with the requirements of Part

72. Presently the NRC issues a NON in

these instances. While it may appear

that a NON and a NOV are similar, the

Commission believes that the issuance

of a NOV is preferred because: (1) the

issuance of a NOV effectively conveys to

both the person violating the

requirement and the public that a

violation of a legally binding

requirement has occurred; (2) the use of

graduated severity levels associated

with a NOV allows the NRC to

effectively convey to both the person

violating the requirement and the public

a clearer perspective on the safety and

regulatory significance of the violation;

and (3) violation of a regulation reflects

the NRC conclusion that potential risk

to public health and safety could exist.

This evidence can then be used to

support the issuance of further

enforcement sanctions such as orders.

The NRC has estimated that each

certificate holder or applicant for a CoC,

on average, has three contractors and

subcontractors. Consequently, the NRC

estimates a total of 60 contractors and

subcontractors would be affected by

these changes to Part 72 described in

Alternative 1. Because certificate

holders, applicants for a CoC, and their

contractors and subcontractors for the

most part have already been meeting the

requirements of Part 72, as either a

condition of a certificate of compliance

or as a condition of a contract between

a certificate holder and their contractors

and subcontractors, the burdens

imposed by this alternative are not

significantly increased. Alternative 2

would not impose these impacts.

The Commission believes that

alternative 1 will enable the NRC to

make more effective use of the

Enforcement Policy against the

designers, fabricators, and testers of

spent fuel storage casks and that this

will lead to an overall improvement in

the safety and quality of spent fuel

storage casks.

Alternative 2: Revise Part 72 to

expand the applicability of certain

provisions to certificate holders and

applicants for a CoC.

The difference between alternatives 1

and 2 is that the latter does not include

contractors and subcontractors in

clarifying the responsibilities for

compliance with Part 72. Therefore, the

NRC would not be able to take

enforcement actions against these

persons under this alternative, but

would be forced to continue to use

administrative actions. The NRC

believes that by taking enforcement

actions against these people, it will be

able to enhance the protection of public

health and safety. Consequently,

alternative 2 was rejected.

Alternative 3: No action.

This alternative was rejected, even

though staff resources for rulemaking

would have been conserved. Under this

alternative it is expected that the

difficulties the NRC has experienced in

the past will continue.

Decision Rationale for Preferred

Alternative

Alternative 1 is the preferred choice.

The major benefit of this alternative is

to allow the NRC to take more effective

enforcement actions against certificate

holders, applicants for a CoC, and their

contractors and subcontractors under

the current NRC Enforcement Policy.

This would enable both the person

violating the regulation and the public

to clearly perceive the regulatory and

safety significance and consequences of

the violation.

Because certificate holders, applicants

for a CoC, and their contractors and

subcontractors for the most part already

have been meeting the requirements of

Part 72, as either a condition of a

certificate of compliance or as a

condition of a contract between a

certificate holder and their contractors

and subcontractors, the burdens

imposed by this amendment are not

significantly increased. The new section

added by this amendment (72.242) will

add new burdens for recordkeeping and

reporting requirements. The staff

estimates this burden associated with

the new § 72.242 to be 6 hours annually.

Therefore, the Commission believes that

this burden is insignificant by

comparison with Part 72’s overall

burden which is in excess of 21,000

hours.

Regulatory Flexibility Certification

In accordance with the Regulatory

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

the Commission certifies that this

proposed rule would not have a

significant economic impact on a

substantial number of small entities.

The proposed rule would amend the

regulations to expand the applicability

of 10 CFR Part 72 to holders of, and

applicants for, Certificates of

Compliance (CoC) and their contractors

and subcontractors. This requirement

would enhance the Commission’s

ability to take enforcement action in the

form of Notices of Violation rather than

administrative action in the form of

Notices of Nonconformance when

legally binding requirements are

violated. The proposed rule may appear

to impose new requirements on a

significant number of small entities (i.e.,

the contractors and subcontractors

associated with certificate holders and

applicants for a CoC). These

requirements would involve actions

such as compliance with quality

assurance program requirements in

Subpart G of Part 72. However, these

entities, for the most part, are already

implementing the actions required by

Subpart G as a condition of their

contracts with the certificate holder or

applicant for a CoC. Therefore, the NRC

believes that this amendment will not

have a significant economic impact on

these small entities.

Backfit Analysis

The NRC staff has determined that the

backfit rule, 10 CFR 72.62, does not

apply to this proposed rule because

these amendments do not involve any

provisions that would impose backfits

as described in 10 CFR 72.62(a).

Therefore, a backfit analysis is not

required.

List of Subjects in 10 CFR Part 72

Criminal penalties, Manpower

training programs, Nuclear materials,

Occupational safety and health,

Reporting and recordkeeping

requirements, Security measures, Spent

fuel.

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. 553, the NRC

is proposing to adopt the following

amendments to 10 CFR Part 72.
39532 Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules

PART 72—LICENSING

REQUIREMENTS FOR THE

INDEPENDENT STORAGE OF SPENT

NUCLEAR FUEL AND HIGH-LEVEL

RADIOACTIVE WASTE

1. The authority citation for Part 72 is

revised to read as follows:

Authority: Secs. 51, 53, 57, 62, 63, 65, 69,

81, 161, 182, 183, 184, 186, 187, 189, 68 Stat.

929, 930, 932, 933, 934, 935, 948, 953, 954,

955, as amended, sec. 234, 83 Stat. 444, as

amended (42 U.S.C. 2071, 2073, 2077, 2092,

2093, 2095, 2099, 2111, 2201, 2232, 2233,

2234, 2236, 2237, 2238, 2282); sec. 274, Pub.

L. 86–373, 73 Stat. 688, as amended (42

U.S.C. 2021); sec. 201, as amended, 202, 206,

88 Stat. 1242, as amended, 1244, 1246 (42

U.S.C. 5841, 5842, 5846); Pub. L. 95–601, sec.

10, 92 Stat. 2951 as amended by Pub. L. 102–

486, sec. 7902, 106 Stat. 3123 (42 U.S.C.

5851); sec. 102, Pub. L. 91–190, 83 Stat. 853

(42 U.S.C. 4332); Secs. 131, 132, 133, 135,

137, 141, Pub. L. 97–425, 96 Stat. 2229, 2230,

2232, 2241, sec. 148, Pub. L. 100–203, 101

Stat. 1330–235 (42 U.S.C. 10151, 10152,

10153, 10155, 10157, 10161, 10168).

Section 72.44(g) also issued under secs.

142(b) and 148(c), (d), Pub. L. 100–203, 101

Stat. 1330–232, 1330–236 (42 U.S.C.

10162(b), 10168(c), (d)). Section 72.46 also

issued under sec. 189, 68 Stat. 955 (42 U.S.C.

2239); sec. 134, Pub. L. 97–425, 96 Stat. 2230

(42 U.S.C. 10154). Section 72.96(d) also

issued under sec. 145(g), Pub. L. 100–203,

101 Stat. 1330–235 (42 U.S.C. 10165(g)).

Subpart J also issued under secs. 2(2), 2(15),

2(19), 117(a), 141(h), Pub. L. 97–425, 96 Stat.

2202, 2203, 2204, 2222, 2224 (42 U.S.C.

10101, 10137(a), 10161(h)). Subparts K and L

are also issued under sec. 133, 98 Stat. 2230

(42 U.S.C. 10153) and sec. 218(a), 96 Stat.

2252 (42 U.S.C. 10198).

2. In § 72.2, paragraph (b) is revised to

read as follows:

§ 72.2 Scope.

* * * * *

(b) The regulations in this part

pertaining to an independent spent fuel

storage installation (ISFSI) and a spent

fuel storage cask apply to all persons in

the United States, including persons in

Agreement States. The regulations in

this part pertaining to a monitored

retrievable storage installation (MRS)

apply only to DOE.

* * * * *

3. In § 72.3, the definitions of

Certificate holder, Certificate of

Compliance or CoC, and Spent fuel

storage cask or cask are added in

alphabetical order, and the definitions

of Design bases, Design capacity, and

Structures, systems, and components

important to safety are revised to read

as follows:

§ 72.3 Definitions.

* * * * *

Certificate holder means a person who

has been issued a Certificate of

Compliance by the Commission for a

spent fuel storage cask design.

Certificate of Compliance or CoC

means the certificate issued by the

Commission that approves the design of

a spent fuel storage cask in accordance

with the provisions of subpart L of this

part.

* * * * *

Design bases means that information

that identifies the specific functions to

be performed by a structure, system, or

component of a facility or of a spent fuel

storage cask and the specific values or

ranges of values chosen for controlling

parameters as reference bounds for

design. These values may be restraints

derived from generally accepted stateof-the-art practices for achieving

functional goals or requirements derived

from analysis (based on calculation or

experiments) of the effects of a

postulated event under which a

structure, system, or component shall

meet its functional goals. The values for

controlling parameters for external

events include—

(1) Estimates of severe natural events

to be used for deriving design bases that

will be based on consideration of

historical data on the associated

parameters, physical data, or analysis of

upper limits of the physical processes

involved; and

(2) Estimates of severe external maninduced events to be used for deriving

design bases that will be based on

analysis of human activity in the region,

taking into account the site

characteristics and the risks associated

with the event.

Design capacity means the quantity of

spent fuel or high-level radioactive

waste, the maximum burn up of the

spent fuel in MWD/MTU, the

terabequerel (curie) content of the

waste, and the total heat generation in

Watts (btu/hour) that the storage

installation is designed to

accommodate.

* * * * *

Spent fuel storage cask or cask means

all the components and systems

associated with the container in which

spent fuel or other radioactive materials

associated with spent fuel are stored in

an ISFSI.

* * * * *

Structures, systems, and components

important to safety means those features

of the ISFSI, MRS, and spent fuel

storage cask whose function is—

(1) To maintain the conditions

required to store spent fuel or high-level

radioactive waste safely;

(2) To prevent damage to the spent

fuel or the high-level radioactive waste

container during handling and storage;

or

(3) To provide reasonable assurance

that spent fuel or high-level radioactive

waste can be received, handled,

packaged, stored, and retrieved without

undue risk to the health and safety of

the public.

4. Section 72.9 is revised to read as

follows:

§ 72.9 Information collection

requirements: OMB approval.

(a) The Nuclear Regulatory

Commission has submitted the

information collection requirements

contained in this part to the Office of

Management and Budget (OMB) for

approval as required by the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501

et seq.). OMB has approved the

information collection requirements

contained in this part under control

number 3150–0132.

(b) The approved information

collection requirements contained in

this part appear in §§ 72.7, 72.11, 72.16,

72.19, 72.22 through 72.34, 72.42, 72.44,

72.48 through 72.56, 72.62, 72.70

through 72.82, 72.90, 72.92, 72.94,

72.98, 72.100, 72.102, 72.104, 72.108,

72.120, 72.126, 72.140 through 72.176,

72.180 through 72.186, 72.192, 72.206,

72.212, 72.216, 72.218, 72.230, 72.232,

72.234, 72.236, 72.240, and 72.242.

5. In § 72.10, paragraph (a), the

introductory text of paragraph (c), and

paragraphs (c)(1) and (e)(1) are revised

to read as follows:

§ 72.10 Employee protection.

(a) Discrimination by a Commission

licensee, certificate holder, applicant for

a Commission license or a CoC, or a

contractor or subcontractor of any of

these against an employee for engaging

in certain protected activities is

prohibited. Discrimination includes

discharge and other actions that relate to

compensation, terms, conditions, or

privileges of employment. The protected

activities are established in section 211

of the Energy Reorganization Act of

1974, as amended, and in general are

related to the administration or

enforcement of a requirement imposed

under the Atomic Energy Act or the

Energy Reorganization Act.

* * * * *

(c) A violation of paragraphs (a), (e),

or (f) of this section by a Commission

licensee, certificate holder, applicant for

a Commission license or a CoC, or a

contractor or subcontractor of any of

these may be grounds for:

(1) Denial, revocation, or suspension

of the license or the CoC.

* * * * *
Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules 39533

(e)(1) Each licensee, certificate holder,

and applicant for a license or CoC shall

prominently post the revision of NRC

Form 3, ‘‘Notice to Employees,’’

referenced in 10 CFR 19.11(c). This form

shall be posted at locations sufficient to

permit employees protected by this

section to observe a copy on the way to

or from their place of work. Premises

shall be posted not later than 30 days

after an application is docketed and

remain posted while the application is

pending before the Commission, during

the term of the license or CoC, and for

30 days following license or CoC

termination.

* * * * *

6. Section 72.11 is revised to read as

follows:

§ 72.11 Completeness and accuracy of

information.

(a) Information provided to the

Commission by a licensee, certificate

holder, or an applicant for a license or

CoC; or information required by statute

or by the Commission’s regulations,

orders, license or CoC conditions, to be

maintained by the licensee or certificate

holder, shall be complete and accurate

in all material respects.

(b) Each licensee, certificate holder, or

applicant for a license or CoC shall

notify the Commission of information

identified by the licensee, certificate

holder, or applicant for a license or CoC

as having for the regulated activity a

significant implication for public health

and safety or common defense and

security. A licensee, certificate holder,

or an applicant for a license or CoC

violates this paragraph only if the

licensee, certificate holder, or applicant

for a license or CoC fails to notify the

Commission of information that the

licensee, certificate holder, or applicant

for a license or CoC has identified as

having a significant implication for

public health and safety or common

defense and security. Notification shall

be provided to the Administrator of the

appropriate Regional Office within two

working days of identifying the

information. This requirement is not

applicable to information which is

already required to be provided to the

Commission by other reporting or

updating requirements.

7. In § 72.86, paragraph (b) is revised

to read as follows:

§ 72.86 Criminal penalties.

* * * * *

(b) The regulations in part 72 that are

not issued under sections 161b, 161i, or

161o for the purposes of section 223 are

as follows: §§ 72.1, 72.2, 72.3, 72.4, 72.5,

72.7, 72.8, 72.9, 72.16, 72.18, 72.20,

72.22, 72.24, 72.26, 72.28, 72.32, 72.34,

72.40, 72.46, 72.56, 72.58, 72.60, 72.62,

72.84, 72.86, 72.90, 72.96, 72.108,

72.120, 72.122, 72.124, 72.126, 72.128,

72.130, 72.182, 72.194, 72.200, 72.202,

72.204, 72.206, 72.210, 72.214, 72.220,

72.230, 72.238, and 72.240.

8. Section 72.140 is revised to read as

follows:

§ 72.140 Quality assurance requirements.

(a) Purpose. This subpart describes

quality assurance requirements that

apply to design, purchase, fabrication,

handling, shipping, storing, cleaning,

assembly, inspection, testing, operation,

maintenance, repair, modification of

structures, systems, and components,

and decommissioning that are important

to safety. As used in this subpart,

‘‘quality assurance’’ comprises all those

planned and systematic actions

necessary to provide adequate

confidence that a structure, system, or

component will perform satisfactorily in

service. Quality assurance includes

quality control, which comprises those

quality assurance actions related to

control of the physical characteristics

and quality of the material or

component to predetermined

requirements. The certificate holder,

applicant for a CoC, and their

contractors and subcontractors are

responsible for the quality assurance

requirements as they apply to the

design, fabrication, and testing of a

spent fuel storage cask until possession

of the spent fuel storage cask is

transferred to the licensee. The licensee

and the certificate holder are also

simultaneously responsible for these

quality assurance requirements via the

oversight of contractors and

subcontractors.

(b) Establishment of program. Each

licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall establish, maintain, and execute a

quality assurance program satisfying

each of the applicable criteria of this

subpart, and satisfying any specific

provisions which are applicable to the

licensee’s, applicant’s for a license,

certificate holder’s, applicant’s for a

CoC, and their contractor’s and

subcontractor’s activities. The licensee,

applicant for a license, certificate

holder, applicant for a CoC, and their

contractors and subcontractors shall

execute the applicable criteria in a

graded approach to an extent that is

commensurate with the importance to

safety. The quality assurance program

shall cover the activities identified in

this subpart throughout the life of the

activity. For licensees, this includes

activities from the site selection through

decommissioning prior to termination of

the license. For certificate holders, this

includes activities from development of

the spent fuel storage cask design

through termination of the CoC.

(c) Approval of program. (1) The

licensee shall obtain Commission

approval of its quality assurance

program prior to receipt of spent fuel at

the ISFSI or spent fuel and high-level

radioactive waste at the MRS.

(2) The certificate holder shall obtain

Commission approval of its quality

assurance program prior to commencing

fabrication or testing of a spent fuel

storage cask.

(3) Each licensee or certificate holder

shall file a description of its quality

assurance program, including a

discussion of which requirements of

this subpart are applicable and how

they will be satisfied, in accordance

with § 72.4.

(d) Previously approved programs. A

Commission-approved quality assurance

program which satisfies the applicable

criteria of appendix B to part 50 of this

chapter and which is established,

maintained, and executed with regard to

an ISFSI will be accepted as satisfying

the requirements of paragraph (b) of this

section. Prior to initial use, the licensee

shall notify the Director, Office of

Nuclear Material Safety and Safeguards,

U.S. Nuclear Regulatory Commission,

Washington, DC 20555, of its intent to

apply its previously approved appendix

B program to ISFSI activities. The

licensee shall identify the program by

date of submittal to the Commission,

docket number, and date of Commission

approval.

9. Section 72.142 is revised to read as

follows:

§ 72.142 Quality assurance organization.

(a) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall be responsible for

the establishment and execution of the

quality assurance program. The licensee

and certificate holder may delegate to

others, such as contractors, agents, or

consultants, the work of establishing

and executing the quality assurance

program, but the licensee and the

certificate holder shall retain

responsibility for the program. The

licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall clearly establish and delineate in

writing the authority and duties of

persons and organizations performing

activities affecting the functions of

structures, systems and components

which are important to safety. These

activities include performing the

functions associated with attaining
39534 Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules

quality objectives and the quality

assurance functions.

(b) The quality assurance functions

are—

(1) Assuring that an appropriate

quality assurance program is established

and effectively executed; and

(2) Verifying, by procedures such as

checking, auditing, and inspection, that

activities affecting the functions that are

important to safety have been correctly

performed. The persons and

organizations performing quality

assurance functions shall have sufficient

authority and organizational freedom to

identify quality problems; to initiate,

recommend, or provide solutions; and

to verify implementation of solutions.

(c) The persons and organizations

performing quality assurance functions

shall report to a management level that

ensures that the required authority and

organizational freedom, including

sufficient independence from cost and

schedule considerations when these

considerations are opposed to safety

considerations, are provided. Because of

the many variables involved, such as the

number of personnel, the type of

activity being performed, and the

location or locations where activities are

performed, the organizational structure

for executing the quality assurance

program may take various forms,

provided that the persons and

organizations assigned the quality

assurance functions have the required

authority and organizational freedom.

Irrespective of the organizational

structure, the individual(s) assigned the

responsibility for assuring effective

execution of any portion of the quality

assurance program at any location

where activities subject to this section

are being performed must have direct

access to the levels of management

necessary to perform this function.

10. Section 72.144 is revised to read

as follows:

§ 72.144 Quality assurance program.

(a) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall establish, at the

earliest practicable time consistent with

the schedule for accomplishing the

activities, a quality assurance program

which complies with the requirements

of this subpart. The licensee, applicant

for a license, certificate holder,

applicant for a CoC, and their

contractors and subcontractors shall

document the quality assurance

program by written procedures or

instructions and shall carry out the

program in accordance with these

procedures throughout the period

during which the ISFSI or MRS is

licensed or the spent fuel storage cask

is certified. The licensee, applicant for

a license, certificate holder, applicant

for a CoC, and their contractors and

subcontractors shall identify the

structures, systems, and components to

be covered by the quality assurance

program, the major organizations

participating in the program, and the

designated functions of these

organizations.

(b) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors, through their quality

assurance program(s), shall provide

control over activities affecting the

quality of the identified structures,

systems, and components to an extent

commensurate with the importance to

safety, and as necessary to ensure

conformance to the approved design of

each ISFSI, MRS, or spent fuel storage

cask. The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall ensure that

activities affecting quality are

accomplished under suitably controlled

conditions. Controlled conditions

include the use of appropriate

equipment; suitable environmental

conditions for accomplishing the

activity, such as adequate cleanliness;

and assurance that all prerequisites for

the given activity have been satisfied.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall take into account the need for

special controls, processes, test

equipment, tools and skills to attain the

required quality and the need for

verification of quality by inspection and

test.

(c) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall base the

requirements and procedures of their

quality assurance program(s) on the

following considerations concerning the

complexity and proposed use of the

structures, systems, or components:

(1) The impact of malfunction or

failure of the item on safety;

(2) The design and fabrication

complexity or uniqueness of the item;

(3) The need for special controls and

surveillance over processes and

equipment;

(4) The degree to which functional

compliance can be demonstrated by

inspection or test; and

(5) The quality history and degree of

standardization of the item.

(d) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall provide for

indoctrination and training of personnel

performing activities affecting quality as

necessary to ensure that suitable

proficiency is achieved and maintained.

(e) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall review the status

and adequacy of the quality assurance

program at established intervals.

Management of other organizations

participating in the quality assurance

program shall regularly review the

status and adequacy of that part of the

quality assurance program which they

are executing.

11. Section 72.146 is revised to read

as follows:

§ 72.146 Design control.

(a) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall establish measures

to ensure that applicable regulatory

requirements and the design basis, as

specified in the license or CoC

application for those structures,

systems, and components to which this

section applies, are correctly translated

into specifications, drawings,

procedures, and instructions. These

measures shall include provisions to

ensure that appropriate quality

standards are specified and included in

design documents and that deviations

from standards are controlled. Measures

shall be established for the selection and

review for suitability of application of

materials, parts, equipment, and

processes that are essential to the

functions of the structures, systems, and

components which are important to

safety.

(b) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall establish measures

for the identification and control of

design interfaces and for coordination

among participating design

organizations. These measures shall

include the establishment of written

procedures among participating design

organizations for the review, approval,

release, distribution, and revision of

documents involving design interfaces.

The design control measures shall

provide for verifying or checking the

adequacy of design, by methods such as

design reviews, alternate or simplified

calculational methods, or by a suitable

testing program. For the verifying or

checking process, the licensee and

certificate holder shall designate

individuals or groups other than those

who were responsible for the original

design, but who may be from the same
Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules 39535

organization. Where a test program is

used to verify the adequacy of a specific

design feature in lieu of other verifying

or checking processes, the licensee and

certificate holder shall include suitable

qualification testing of a prototype or

sample unit under the most adverse

design conditions. The licensee,

applicant for a license, certificate

holder, applicant for a CoC, and their

contractors and subcontractors shall

apply design control measures to items

such as the following: criticality

physics, radiation, shielding, stress,

thermal, hydraulic, and accident

analyses; compatibility of materials;

accessibility for in-service inspection,

maintenance, and repair; features to

facilitate decontamination; and

delineation of acceptance criteria for

inspections and tests.

(c) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall subject design

changes, including field changes, to

design control measures commensurate

with those applied to the original

design. Changes in the conditions

specified in the license or CoC require

prior NRC approval.

12. Section 72.148 is revised to read

as follows:

§ 72.148 Procurement document control.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall establish measures to assure that

applicable regulatory requirements,

design bases, and other requirements

which are necessary to assure adequate

quality are included or referenced in the

documents for procurement of material,

equipment, and services. To the extent

necessary, the licensee, applicant for a

license, certificate holder, and applicant

for a CoC, shall require contractors or

subcontractors to provide a quality

assurance program consistent with the

applicable provisions of this subpart.

13. Section 72.150 is revised to read

as follows:

§ 72.150 Instructions, procedures, and

drawings.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall prescribe activities affecting

quality by documented instructions,

procedures, or drawings of a type

appropriate to the circumstances and

shall require that these instructions,

procedures, and drawings be followed.

The instructions, procedures, and

drawings shall include appropriate

quantitative or qualitative acceptance

criteria for determining that important

activities have been satisfactorily

accomplished.

14. Section 72.152 is revised to read

as follows:

§ 72.152 Document control.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall establish measures to control the

issuance of documents such as

instructions, procedures, and drawings,

including changes, which prescribe all

activities affecting quality. These

measures shall assure that documents,

including changes, are reviewed for

adequacy, approved for release by

authorized personnel, and distributed

and used at the location where the

prescribed activity is performed. These

measures shall ensure that changes to

documents are reviewed and approved.

15. Section 72.154 is revised to read

as follows:

§ 72.154 Control of purchased material,

equipment, and services.

(a) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall establish measures

to ensure that purchased material,

equipment and services, whether

purchased directly or through

contractors and subcontractors, conform

to the procurement documents. These

measures shall include provisions, as

appropriate, for source evaluation and

selection, objective evidence of quality

furnished by the contractor or

subcontractor, inspection at the

contractor or subcontractor source, and

examination of products upon delivery.

(b) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall have available

documentary evidence that material and

equipment conform to the procurement

specifications prior to installation or use

of the material and equipment. The

licensee and certificate holder shall

retain or have available this

documentary evidence for the life of

ISFSI, MRS, or spent fuel storage cask.

The licensee and certificate holder shall

ensure that the evidence is sufficient to

identify the specific requirements met

by the purchased material and

equipment.

(c) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors or a designee of either

shall assess the effectiveness of the

control of quality by contractors and

subcontractors at intervals consistent

with the importance, complexity, and

quantity of the product or services.

16. Section 72.156 is revised to read

as follows:

§ 72.156 Identification and control of

materials, parts, and components.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall establish measures for the

identification and control of materials,

parts, and components. These measures

shall ensure that identification of the

item is maintained by heat number, part

number, serial number, or other

appropriate means, either on the item or

on records traceable to the item as

required, throughout fabrication,

installation, and use of the item. These

identification and control measures

shall be designed to prevent the use of

incorrect or defective materials, parts,

and components.

17. Section 72.158 is revised to read

as follows:

§ 72.158 Control of special processes.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall establish measures to ensure that

special processes, including welding,

heat treating, and nondestructive

testing, are controlled and accomplished

by qualified personnel using qualified

procedures in accordance with

applicable codes, standards,

specifications, criteria, and other special

requirements.

18. Section 72.160 is revised to read

as follows:

§ 72.160 Licensee and certificate holder

inspection.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall establish and execute a program

for inspection of activities affecting

quality by or for the organization

performing the activity to verify

conformance with the documented

instructions, procedures, and drawings

for accomplishing the activity. The

inspection shall be performed by

individuals other than those who

performed the activity being inspected.

Examinations, measurements, or tests of

material or products processed shall be

performed for each work operation

where necessary to assure quality. If

direct inspection of processed material

or products cannot be carried out,

indirect control by monitoring

processing methods, equipment, and

personnel shall be provided. Both

inspection and process monitoring shall

be provided when quality control is

inadequate without both. If mandatory

inspection hold points, which require
39536 Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules

witnessing or inspecting by the

licensee’s or certificate holder’s

designated representative and beyond

which work should not proceed without

the consent of its designated

representative, are required, the specific

hold points shall be indicated in

appropriate documents.

19. Section 72.162 is revised to read

as follows:

§ 72.162 Test control.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall establish a test program to ensure

that all testing required to demonstrate

that the structures, systems, and

components will perform satisfactorily

in service is identified and performed in

accordance with written test procedures

that incorporate the requirements of this

part and the requirements and

acceptance limits contained in the

ISFSI, MRS, or spent fuel storage cask

license or CoC. The test procedures

shall include provisions for assuring

that all prerequisites for the given test

are met, that adequate test

instrumentation is available and used,

and that the test is performed under

suitable environmental conditions. The

licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall document and evaluate the test

results to ensure that test requirements

have been satisfied.

20. Section 72.164 is revised to read

as follows:

§ 72.164 Control of measuring and test

equipment.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall establish measures to ensure that

tools, gauges, instruments, and other

measuring and testing devices used in

activities affecting quality are properly

controlled, calibrated, and adjusted at

specified periods to maintain accuracy

within necessary limits.

21. Section 72.166 is revised to read

as follows:

§ 72.166 Handling, storage, and shipping

control.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall establish measures to control, in

accordance with work and inspection

instructions, the handling, storage,

shipping, cleaning, and preservation of

materials and equipment to prevent

damage or deterioration. When

necessary for particular products,

special protective environments, such as

inert gas atmosphere, and specific

moisture content and temperature levels

shall be specified and provided.

22. Section 72.168 is revised to read

as follows:

§ 72.168 Inspection, test, and operating

status.

(a) The licensee, applicant for a

license, certificate holder, applicant for

a CoC, and their contractors and

subcontractors shall establish measures

to indicate, by the use of markings such

as stamps, tags, labels, routing cards, or

other suitable means, the status of

inspections and tests performed upon

individual items of the ISFSI, MRS, or

spent fuel storage cask. These measures

shall provide for the identification of

items which have satisfactorily passed

required inspections and tests where

necessary to preclude inadvertent

bypassing of the inspections and tests.

(b) The licensee shall establish

measures to identify the operating status

of structures, systems, and components

of the ISFSI or MRS, such as tagging

valves and switches, to prevent

inadvertent operation.

23. Section 72.170 is revised to read

as follows:

§ 72.170 Nonconforming materials, parts,

or components.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall establish measures to control

materials, parts, or components that do

not conform to their requirements in

order to prevent their inadvertent use or

installation. These measures shall

include, as appropriate, procedures for

identification, documentation,

segregation, disposition, and

notification to affected organizations.

Nonconforming items shall be reviewed

and accepted, rejected, repaired, or

reworked in accordance with

documented procedures.

24. Section 72.172 is revised to read

as follows:

§ 72.172 Corrective action.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall establish measures to ensure that

conditions adverse to quality, such as

failures, malfunctions, deficiencies,

deviations, defective material and

equipment, and nonconformances, are

promptly identified and corrected. In

the case of a significant condition

identified as adverse to quality, the

measures shall ensure that the cause of

the condition is determined and

corrective action is taken to preclude

repetition. The identification of the

significant condition adverse to quality,

the cause of the condition, and the

corrective action taken shall be

documented and reported to appropriate

levels of management.

25. Section 72.174 is revised to read

as follows:

§ 72.174 Quality assurance records.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall maintain sufficient records to

furnish evidence of activities affecting

quality. The records shall include the

following: design records, records of use

and the results of reviews, inspections,

tests, audits, monitoring of work

performance, and materials analyses.

The records shall include closely related

data such as qualifications of personnel,

procedures, and equipment. Inspection

and test records shall, at a minimum,

identify the inspector or data recorder,

the type of observation, the results, the

acceptability, and the action taken in

connection with any noted deficiencies.

Records shall be identifiable and

retrievable. Records pertaining to the

design, fabrication, erection, testing,

maintenance, and use of structures,

systems, and components important to

safety shall be maintained by or under

the control of the licensee or certificate

holder until the Commission terminates

the license or CoC.

26. Section 72.176 is revised to read

as follows:

§ 72.176 Audits.

The licensee, applicant for a license,

certificate holder, applicant for a CoC,

and their contractors and subcontractors

shall carry out a comprehensive system

of planned and periodic audits to verify

compliance with all aspects of the

quality assurance program and to

determine the effectiveness of the

program. The audits shall be performed

in accordance with written procedures

or checklists by appropriately trained

personnel not having direct

responsibilities in the areas being

audited. Audited results shall be

documented and reviewed by

management having responsibility in

the area audited. Follow-up action,

including re-audit of deficient areas,

shall be taken where indicated.

27. Section 72.232 is revised to read

as follows:

§ 72.232 Inspection and tests.

(a) The certificate holder, applicant

for a CoC, and their contractors and

subcontractors shall permit, and make

provisions for, the Commission to

inspect the premises and facilities at
Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules 39537

which a spent fuel storage cask is

designed, fabricated, and tested.

(b) The certificate holder, applicant

for a CoC, and their contractors and

subcontractors shall make available to

the Commission for inspection, upon

reasonable notice, records kept by any

of them pertaining to the design,

fabrication, and testing of spent fuel

storage casks.

(c) The certificate holder, applicant

for a CoC, and their contractors and

subcontractors shall perform, and make

provisions that permit the Commission

to perform, tests that the Commission

deems necessary or appropriate for the

administration of the regulations in this

part.

(d) The certificate holder and

applicant for a CoC shall submit a

notification under § 72.4 at least 45 days

prior to starting fabrication of the first

spent fuel storage cask under a

Certificate of Compliance.

28. Section 72.234 is revised to read

as follows:

§ 72.234 Conditions of approval.

(a) The certificate holder and

applicant for a CoC shall ensure that the

design, fabrication, testing, and

maintenance of a spent fuel storage cask

comply with the requirements in

§ 72.236.

(b) The certificate holder and

applicant for a CoC shall ensure that the

design, fabrication, testing, and

maintenance of spent fuel storage casks

be conducted under a quality assurance

program that meets the requirements of

subpart G of this part.

(c) The certificate holder and

applicant for a CoC shall ensure that the

fabrication of casks under a CoC does

not begin prior to receipt of the CoC for

the spent fuel storage cask.

(d)(1) The certificate holder shall

ensure that a record is established and

maintained for each cask fabricated

under the CoC.

(2) This record shall include:

(i) The NRC CoC number;

(ii) The cask model number;

(iii) The cask identification number;

(iv) Date fabrication was started;

(v) Date fabrication was completed;

(vi) Certification that the cask was

designed, fabricated, tested, and

repaired in accordance with a quality

assurance program accepted by NRC;

(vii) Certification that inspections

required by § 72.236(j) were performed

and found satisfactory; and

(viii) The name and address of the

general licensee using the cask.

(3) The certificate holder shall supply

the original of this record to the general

licensee using the cask. A current copy

of a composite record of all casks

manufactured under a CoC, showing the

information in paragraph (d)(2) of this

section, shall be initiated and

maintained by the certificate holder for

each model cask. If the certificate holder

permanently ceases production of casks

under a CoC, the certificate holder shall

send this composite record to the

Commission using instructions in

§ 72.4.

(e) The certificate holder and the

general licensee using the cask shall

ensure that the composite record

required by paragraph (d) of this section

is available to the Commission for

inspection.

(f) The certificate holder shall ensure

that written procedures and appropriate

tests are established prior to use of the

casks. A copy of these procedures and

tests shall be provided to each general

licensee using the cask.

29. Section 72.236 is revised to read

as follows:

§ 72.236 Specific requirements for spent

fuel storage cask approval.

The certificate holder shall ensure

that the requirements of this section are

met. An applicant for a CoC shall ensure

that the requirements of this section are

met, except for paragraphs (j) and (k)

(a) Specifications shall be provided

for the spent fuel to be stored in the

cask, such as, but not limited to, type of

spent fuel (i.e., BWR, PWR, both),

maximum allowable enrichment of the

fuel prior to any irradiation, burn-up

(i.e., megawatt-days/MTU), minimum

acceptable cooling time of the spent fuel

prior to storage in the cask, maximum

heat designed to be dissipated,

maximum spent fuel loading limit,

condition of the spent fuel (i.e., intact

assembly or consolidated fuel rods), the

inerting atmosphere requirements.

(b) Design bases and design criteria

shall be provided for structures,

systems, and components important to

safety.

(c) The cask shall be designed and

fabricated so that the spent fuel is

maintained in a subcritical condition

under credible conditions.

(d) Radiation shielding and

confinement features shall be provided

sufficient to meet the requirements in

§§ 72.104 and 72.106.

(e) The cask shall be designed to

provide redundant sealing of

confinement systems.

(f) The cask shall be designed to

provide adequate heat removal capacity

without active cooling systems.

(g) The cask shall be designed to store

the spent fuel safely for a minimum of

20 years and permit maintenance as

required.

(h) The cask shall be compatible with

wet or dry spent fuel loading and

unloading facilities.

(i) The cask shall be designed to

facilitate decontamination to the extent

practicable.

(j) The cask shall be inspected to

ascertain that there are no cracks,

pinholes, uncontrolled voids, or other

defects that could significantly reduce

its confinement effectiveness.

(k) The cask shall be conspicuously

and durably marked with —

(1) A model number;

(2) A unique identification number;

and

(3) An empty weight.

(l) The cask and its systems important

to safety shall be evaluated, by

appropriate tests or by other means

acceptable to the Commission, to

demonstrate that they will reasonably

maintain confinement of radioactive

material under normal, off-normal, and

credible accident conditions.

(m) To the extent practicable in the

design of storage casks, consideration

should be given to compatibility with

removal of the stored spent fuel from a

reactor site, transportation, and ultimate

disposition by the Department of

Energy.

30. Section 72.240 is revised to read

as follows:

§ 72.240 Conditions for spent fuel storage

cask reapproval.

(a) The certificate holder, a general

licensee using a spent fuel storage cask,

or the representative of a general

licensee using a spent fuel storage cask

shall apply for reapproval of the design

of a spent fuel storage cask.

(b) The application for reapproval of

the design of a spent fuel storage cask

shall be submitted not less than 30 days

prior to the expiration date of the CoC.

When the applicant has submitted a

timely application for reapproval, the

existing CoC will not expire until the

application for reapproval has been

finally determined by the Commission.

The application shall be accompanied

by a safety analysis report (SAR). The

new SAR may reference the SAR

originally submitted for the approved

spent fuel storage cask design.

(c) The design of a spent fuel storage

cask will be reapproved if the

conditions in § 72.238 are met, and the

application includes a demonstration

that the storage of spent fuel has not, in

fact, significantly adversely affected

structures, systems, and components

important to safety.

31. Section 72.242 is added to read as

follows:
39538 Federal Register / Vol. 63, No. 141 /Thursday, July 23, 1998 / Proposed Rules

§ 72.242 Recordkeeping and reports.

(a) Each certificate holder or applicant

shall maintain any records and produce

any reports that may be required by the

conditions of the CoC or by the rules,

regulations, and orders of the

Commission in effectuating the

purposes of the Act.

(b) Records that are required by the

regulations in this part or by conditions

of the CoC shall be maintained for the

period specified by the appropriate

regulation or the CoC conditions. If a

retention period is not specified, the

records shall be maintained until the

Commission terminates the CoC.

(c) Any record that shall be

maintained under this part may be

either the original or a reproduced copy

by any state of the art method provided

that any reproduced copy is duly

authenticated by authorized personnel

and is capable of producing a clear and

legible copy after storage for the period

specified by Commission regulations.

(d) Each certificate holder shall

submit a written report to the NRC

within 30 days of discovery of a design

or fabrication deficiency, for any spent

fuel storage cask which has been

delivered to a licensee, when the design

or fabrication deficiency affects the

ability of structures, systems, and

components important to safety to

perform their function. The written

report shall be sent to the NRC in

accordance with the requirements of

§ 72.4. The report shall include the

following:

(1) A brief abstract describing the

deficiency, including all component or

system failures that contributed to the

deficiency and corrective action taken

or planned to prevent recurrence;

(2) A clear, specific, narrative

description of what occurred so that

knowledgeable readers familiar with the

design of the spent fuel storage cask, but

not familiar with the details of a

particular cask, can understand the

deficiency. The narrative description

shall include the following specific

information as appropriate for the

particular event:

(i) Dates and approximate times of

discovery;

(ii) The cause of each component or

system failure, if known;

(iii) The failure mode, mechanism,

and effect of each failed component, if

known;

(iv) A list of systems or secondary

functions that were also affected for

failures of components with multiple

functions;

(v) The method of discovery of each

component or system failure;

(vi) The manufacturer and model

number (or other identification) of each

component that failed during the event;

(vii) The model and serial numbers of

the affected casks;

(viii) The licensees that have affected

casks;

(3) An assessment of the safety

consequences and implications of the

deficiency. This assessment shall

include the availability of other systems

or components that could have

performed the same function as the

components and systems that were

affected;

(4) A description of any corrective

actions planned as a result of the

deficiency, including those to reduce

the probability of similar occurrences in

the future;

(5) Reference to any previous similar

deficiencies at the same facility that are

known to the certificate holder; and

(6) The name and telephone number

of a person within the certificate

holder’s organization who is

knowledgeable about the deficiency and

can provide additional information.

Dated at Rockville, Maryland, this 16th day

of July, 1998.

For the Nuclear Regulatory Commission.

John C. Hoyle,

Secretary of the Commission.

[FR Doc. 98–19556 Filed 7–22–98; 8:45 am]

BILLING CODE 7590–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 98–NM–159–AD]

RIN 2120–AA64

Airworthiness Directives; Aerospatiale

Model ATR72–212A Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes the

adoption of a new airworthiness

directive (AD) that is applicable to

certain Aerospatiale Model ATR72–

212A series airplanes. This proposal

would require installation of bushings

on the lower attachment fittings of the

flap support beam. This proposal is

prompted by issuance of mandatory

continuing airworthiness information by

a foreign civil airworthiness authority.

The actions specified by the proposed

AD are intended to prevent rupture of

the lower attachment fittings of the flap

support beam due to fatigue, and

consequent damage to the flaps; these

conditions could result in reduced

controllability of the airplane.

DATES: Comments must be received by

August 24, 1998.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–114,

Attention: Rules Docket No. 98–NM–

159–AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.

Comments may be inspected at this

location between 9:00 a.m. and 3:00

p.m., Monday through Friday, except

Federal holidays.

The service information referenced in

the proposed rule may be obtained from

Aerospatiale, 316 Route de Bayonne,

31060 Toulouse, Cedex 03, France. This

information may be examined at the

FAA, Transport Airplane Directorate,

1601 Lind Avenue, SW., Renton,

Washington.

FOR FURTHER INFORMATION CONTACT:

Norman B. Martenson, Manager,

International Branch, ANM–116, FAA,

Transport Airplane Directorate, 1601

Lind Avenue, SW., Renton, Washington

98055–4056; telephone (425) 227–2110;

fax (425) 227–1149.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to

participate in the making of the

proposed rule by submitting such

written data, views, or arguments as

they may desire. Communications shall

identify the Rules Docket number and

be submitted in triplicate to the address

specified above. All communications

received on or before the closing date

for comments, specified above, will be

considered before taking action on the

proposed rule. The proposals contained

in this notice may be changed in light

of the comments received.

Comments are specifically invited on

the overall regulatory, economic,

environmental, and energy aspects of

the proposed rule. All comments

submitted will be available, both before

and after the closing date for comments,

in the Rules Docket for examination by

interested persons. A report

summarizing each FAA-public contact

concerned with the substance of this

proposal will be filed in the Rules

Docket.

Commenters wishing the FAA to

acknowledge receipt of their comments

submitted in response to this notice

must submit a self-addressed, stamped

postcard on which the following

statement is made: ‘‘Comments to

Docket Number 98–NM–159–AD.’’ The