Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules 29251

Dated at Rockville, Maryland, this 23rd day

of May, 2001.

For the Nuclear Regulatory Commission.

Annette L. Vietti-Cook,

Secretary of the Commission.

[FR Doc. 01–13489 Filed 5–29–01; 8:45 am]

BILLING CODE 7590–01–P

NUCLEAR REGULATORY

COMMISSION

10 CFR Parts 51, 61, 70, 72, 73, 74, 75,

76, and 150

RIN AG69

Material Control and Accounting

Amendments

AGENCY: Nuclear Regulatory

Commission.

ACTION: Proposed rule.

SUMMARY: The Nuclear Regulatory

Commission (NRC) is proposing to

amend its material control and

accounting (MC&A) regulations. The

reporting requirements for submitting

Material Balance Reports and Inventory

Composition Reports are being revised

to change both the frequency and timing

of the reports. The categorical exclusion

for approving safeguards plans is being

revised to specifically include approval

of amendments to safeguards plans. The

MC&A requirements for Category II

facilities are being revised to be more

risk informed. The proposed

amendments are intended to reduce

unnecessary burden on licensees and

the NRC without adversely affecting

public health and safety.

DATES: The comment period expires

August 13, 2001. Comments received

after this date will be considered if it is

practical to do so, but the NRC is able

to assure consideration only for

comments received on or before this

date.

ADDRESSES: Submit comments to:

Secretary, U.S. Nuclear Regulatory

Commission, Washington, DC 20555–

0001, Attn: Rulemakings and

Adjudications Staff.

Deliver comments to 11555 Rockville

Pike, Rockville, MD, between 7:30 a.m.

and 4:15 p.m. on Federal workdays.

You may also provide comments via

the NRC’s interactive rulemaking

website (http://ruleforum.llnl.gov). This

site provides the capability to upload

comments as files (any format) if your

web browser supports that function. For

information about the interactive

rulemaking website, contact Ms. Carol

Gallagher (301) 415–5905; e-mail

CAG@nrc.gov.

Certain documents related to this

rulemaking, including comments

received, may be examined at the NRC’s

Public Document Room (PDR), 11555

Rockville Pike, Room O–1F21,

Rockville, MD. These same documents

may also be viewed and downloaded

electronically via the rulemaking

website.

Documents created or received at the

NRC are also available electronically at

the NRC’s Public Electronic Reading

Room on the Internet at http://

www.nrc.gov/NRC/ADAMS/index.html.

From this site, the public can gain entry

into the NRC’s Agencywide Document

Access and Management System

(ADAMS), which provides text and

image files of NRC’s public documents.

For more information, contact the NRC’s

PDR Reference staff at 1–800–397–4209,

301–415–4737, or by email to

pdr@nrc.gov.

FOR FURTHER INFORMATION CONTACT:

Merri Horn, telephone (301) 415–8126,

e-mail mlh1@nrc.gov, Office of Nuclear

Material Safety and Safeguards, U.S.

Nuclear Regulatory Commission,

Washington, DC 20555–0001.

SUPPLEMENTARY INFORMATION:

Background

The Commission proposes to amend

an aspect of the MC&A requirements so

as to reduce unnecessary regulatory

burden and to provide additional

flexibility to a licensee required to

submit Material Balance Reports and

Inventory Composition Reports (also

called Physical Inventory Listing

report). The current regulations require

these reports to be compiled as of March

31 and September 30 of each year and

submitted within 30 days after the end

of the period covered by the report.

These twice yearly reports are typically

based on book values as opposed to

physical inventory results because the

dates do not always coincide with the

time frame for a facility’s physical

inventory. Physical inventories for

Category III facilities are conducted on

an annual basis, semiannually for

Category I facilities, and every 2 to 6

months for Category II facilities. The

term Material Status Reports refers to

both the Material Balance Reports and

the Inventory Composition Reports and

is used in Part 75.

A Category I licensee is one that is

licensed to possess and use formula

quantities of strategic special nuclear

material (SSNM) (e.g., 5 kilograms of

uranium enriched to 20 percent or more

in the uranium-235 isotope). SSNM

means uranium-235 (contained in

uranium enriched to 20 percent or more

in the uranium-235 isotope), uranium233, or plutonium. There are currently

two licensed Category I facilities. A

Category II licensee is one that is

licensed to possess and use greater than

one effective kilogram of special nuclear

material (SNM) of moderate strategic

significance (e.g., uranium enriched to

more than 10 percent but less than 20

percent in the uranium-235 isotope,

with limited quantities at higher

enrichments). Currently, there is only

one licensed Category II facility, General

Atomics, and it has a possession-only

license and is undergoing

decommissioning. General Atomics

would not be required to make changes

to meet the new requirements. There are

no operating Category II licensed

facilities. A Category III licensee is one

that is licensed to possess and use

quantities of SNM of low strategic

significance (e.g., uranium enriched to

less than 10 percent in the uranium-235

isotope, with limited quantities at

higher enrichments). See Table 1 for

more specific information on possession

limits for Category I, II, and III licensees.

TABLE 1.—CATEGORIZATION OF MATERIAL

Material Form Category I Category II Category III

Plutonium ........................... Unirradiated ....................... 2 kg or more ..................... Less than 2 kg but more

than 500 g.

500 g or less.

Uranium-235 ...................... Unirradiated:

Uranium enriched to 20

percent U–235 or more.

5 kg or more ..................... Less than 5 kg but more

than 1 kg.

1 Kg or less.

Uranium enriched to 10

percent U–235 but less

than 20 percent.

........................................... 10 kg or more ................... Less than 10 kg.

29252 Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules

TABLE 1.—CATEGORIZATION OF MATERIAL—Continued

Material Form Category I Category II Category III

Uranium enrich above natural, but less than 10

percent U–235.

........................................... ........................................... 10 kg or more.

Uranium-233 ...................... Urirradiated ....................... 2 kg or more ..................... Less than 2 kg but more

than 500 g.

500 g or less

In 1982, the NRC initiated an effort to

move the MC&A requirements from 10

CFR Part 70, ‘‘Domestic Licensing of

Special Nuclear Material,’’ to 10 CFR

Part 74, ‘‘Material Control and

Accounting of Special Nuclear

Material.’’ The initiative also included

efforts to make the requirements more

performance oriented. In 1985, the

MC&A requirements for Category III

facilities were made more performance

oriented and moved to Part 74 (50 FR

7575; February 25, 1985). The

requirements for Category I facilities

were similarly moved in 1987 (52 FR

10033; March 30, 1987). The MC&A

requirements for Category II facilities

and the general MC&A requirements are

still interspersed among the safety and

general licensing requirements of Part

70. The requirements regarding Category

II material are also overly prescriptive.

In addition, part 74 includes several

typographical errors, old

implementation dates, and some

terminology that should be updated to

reflect current practice and to be

consistent with the regulatory guides.

Finally, the currently effective

categorical exclusion for approval of

safeguards plans does not clearly

include the approval of an amendment

to a safeguards plan.

Discussion

Material Status Reports

A licensee authorized to possess SNM

at any one time or location in a quantity

totaling more than 350 grams of

contained uranium-235, uranium-233,

or plutonium, or any combination

thereof, must complete and submit in a

computer-readable format a Material

Balance Report concerning SNM

received, produced, possessed,

transferred, consumed, disposed of, or

lost. A Material Balance Report is a

summary of nuclear material changes

from one inventory period to the next.

This report must be compiled as of

March 31 and September 30 of each year

and filed within 30 days after the end

of the period. Under §§ 76.113, 76.115,

and 76.117, the gaseous diffusion plants

(certificate holders) are also required to

submit the report twice yearly on the

same schedule. (Note that the term

‘‘licensee’’, as it is used within this

statement of considerations, includes

the gaseous diffusion plants unless

otherwise stated.) Each licensee is also

required to file a statement of the

composition of the ending inventory

with the Material Balance Report. An

Inventory Composition Report is a

report of the actual inventory listed by

specified forms of material (e.g.,

irradiated versus unirradiated fuel at

power reactors). However, a licensee

required to submit a Material Status

Report under § 75.35 is directed to

submit this report only in accordance

with the provisions of that section (i.e.,

at the time of a physical inventory).

Section 75.35 applies only to those

facilities that have been selected to

report under the Agreement Between

the United States and the International

Atomic Energy Agency (IAEA) for the

Application of Safeguards in the United

States. For those facilities reporting

under part 75, the frequency of

reporting is dependent on the frequency

of the physical inventory, which is

dependent on the Category of facility

(i.e., Category I, II, or III). The report

would be required either once (Category

III) or twice (Category I and II) per year.

The principal purpose of the Material

Status Report is the periodic

reconciliation of licensee records with

the records in the Nuclear Materials

Management and Safeguards System

(NMMSS). The NMMSS is the national

database for tracking source and SNM.

The data from the NMMSS are then

used to satisfy the requirement of the

US/IAEA Safeguards Agreement to

provide the annual Material Balance

Report for facilities selected under the

Agreement or associated Protocol.

The proposed rule would modify the

regulations to require the Material

Balance Report and the Physical

Inventory Listing Report at the time of

a physical inventory as is currently

stated in § 75.35. The proposed rule

would require the reports to be

completed within 60 days of the

beginning of the physical inventory for

independent spent fuel storage

installations, reactors, and Category II

and III facilities, and within 45 days of

the beginning of the physical inventory

for Category I facilities. This

modification would not affect licensees

reporting under Part 75. Because most

facilities are only required to conduct a

physical inventory once a year, the

reporting frequency would be reduced

from twice a year to once a year. For

most licensees, reconciliation once a

year instead of twice a year would not

appear to be a problem because the

number of transactions is such that

reconciliation would be manageable.

For the gaseous diffusion plants that

have a significantly larger number of

transactions, reconciliation could be

more difficult if performed once a year.

However, the gaseous diffusion plants,

by practice, currently reconcile their

records with the NMMSS on a

bimonthly basis and could continue this

practice.

As indicated, a licensee is required to

submit the semiannual Material Balance

Report and Inventory Composition

Report within 30 days of March 31 and

September 30 of each year. The

preestablished timing of the submittal

has two drawbacks. Specifically, the

reports rarely coincide with a physical

inventory and all of the reports for a

given period are provided to the

NMMSS at the same time. The data from

a physical inventory is significantly

more meaningful than the book values

reported during the interim periods.

Staggering the submittals would benefit

the NMMSS contractor because not all

licensees conduct inventories at the

same time. Requirements for the

NMMSS contractor would likely be

spread more evenly throughout the year.

Modifying the requirement to stipulate

that the Material Balance Report and the

Inventory Composition Report shall be

submitted at the time of the physical

inventory could alleviate these

problems and provide more meaningful

data.

Another consideration is whether

there would be an adverse impact on

meeting IAEA safeguards requirements.

Only one Material Status Report is

required per year, pursuant to the terms

of the US/IAEA Safeguards Agreement

and § 75.35. Consequently, there would

be no adverse impact on meeting IAEA

safeguards requirements.

The proposed rule would revise the

timing to complete the Material Balance

Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules 29253

Report and Physical Inventory Listing

Report to coincide with a facility’s

physical inventory. The proposed rule

would also provide additional time to

complete the paperwork, except for

those licensees reporting under Part 75.

These changes would provide most

licensees with additional flexibility and

reduce the regulatory burden. The

proposed rule would use Physical

Inventory Listing Report instead of

Inventory Composition Reports to be

consistent with the name of the actual

form (DOE/NRC Form 742C).

Categorical Exclusion

The categorical exclusion

(§ 51.22(c)(12)) covers the issuance of an

amendment to a license pursuant to 10

CFR parts 50, 60, 61, 70, 72, or 75,

relating to safeguards matters or

approval of a safeguards plan. It does

not address amendments to those plans.

As written, the categorical exclusion

could be used for approval of a

safeguards plan. However, an

environmental assessment (EA) would

be necessary for approval of an

amendment to the safeguards plan.

Initial approval is covered by the

categorical exclusion, but amendments

do not appear to be covered. This

inconsistency appears to be inadvertent.

Adding language covering revisions to

safeguards plans would rectify this

omission. In addition, the categorical

exclusion currently lists several parts.

Providing a generic reference to any part

of 10 CFR Chapter I would correct the

current listing and avoid the need for

changes due to new parts being added.

General and Category II MC&A

Requirements

In 1982, the NRC began an effort to

move the MC&A requirements from part

70 to part 74 and make the requirements

more performance oriented. Subsequent

rulemakings on February 25, 1985 (50

FR 7575) and March 30, 1987 (52 FR

10033), moved the requirements for

Category I and III facilities. The MC&A

requirements for Category II facilities

and the general MC&A requirements are

currently interspersed among the safety

and general licensing requirements of

part 70. The requirements regarding

Category II material are also overly

prescriptive as they contain some

requirements that are more stringent

than the requirements for Category I

facilities. The proposed rule represents

the final stage and would result in the

movement of the remaining general

MC&A requirements and the

requirements for Category II facilities

from part 70 to part 74. The proposed

rule would also make the MC&A

requirements for the Category II

facilities more risk informed. The

proposed risk-informed approach for the

Category II facilities is consistent with

the current MC&A regulations that

apply to Category I and III facilities. In

addition, the proposed rule would make

needed modifications that were missed

in earlier updates of the MC&A

regulations, correct typographical errors,

delete old implementation dates, clarify

some definitions, and include several

new definitions.

Specifically, the proposed rule would

clarify the definitions for ‘‘Category IA

material’’ and ‘‘inventory differences’’

and make them consistent with the

current regulatory guides. The terms

‘‘beginning inventory,’’ ‘‘plant,’’

‘‘removals from inventory,’’ and

‘‘removals from process,’’ would be

newly defined. The definition for

‘‘removals’’ would be deleted. There has

been some confusion by licensees over

the term ‘‘removals.’’ The term

‘‘removals’’ would be replaced by the

terms ‘‘removals from process’’ and

‘‘removals from inventory.’’ The

definitions being proposed are

consistent with the current regulatory

guides. In addition, both the terms

‘‘beginning inventory’’ and ‘‘plant’’ are

used in the current rule language, but

were never defined in the rule. The

definitions being proposed are

consistent with the definitions

contained in the current regulatory

guides. The changes to the Category II

requirements are discussed below.

General Requirements

The current general MC&A

requirements in part 70 require a

licensee to keep records showing the

receipt, inventory, disposal, and transfer

of all SNM and specifies the retention

period for those records. These

recordkeeping requirements are not

being changed. The general

requirements currently in §§ 70.51(b)(1)

through (b)(5) would be captured in new

§§ 74.19 (a)(1) through (a)(4). The

reporting requirements currently in

§ 70.52 requiring a licensee to report

loss or theft of SNM remain unchanged

and would be covered by § 74.11. The

requirements for a Nuclear Material

Transfer Report in § 70.54 would remain

unchanged and be captured by § 74.15.

The existing requirement in § 70.51(d)

for all licensees authorized to possess

more than 350 grams of contained SNM

to conduct an annual physical inventory

of all SNM would be retained and be

moved to new § 74.19(c). The

requirement currently in § 70.51(c) for

all licensees authorized to possess SNM

in a quantity exceeding one effective

kilogram of SNM to establish, maintain,

and follow written MC&A procedures

that are sufficient to enable the licensee

to account for the SNM, would be

located in new § 74.19(b). The

requirements in § 70.53 would be

located in §§ 74.13 and 74.17.

Category II Requirements

Current domestic MC&A regulations

in part 70 for licensees who possess

greater than one effective kilogram of

strategic special nuclear material in

irradiated fuel reprocessing operations

or moderate strategic special nuclear

material have been interspersed among

the safety and general licensing

requirements in part 70. These MC&A

requirements are being moved to Part 74

to avoid confusion with the safety

requirements in part 70, to allow the

requirements to be presented in a more

orderly manner, and to make them more

risk informed. Emphasis has been given

to performance requirements rather than

prescriptive requirements to allow

licensees to select the most costeffective way to satisfy NRC

requirements.

The basic MC&A requirements for

Category II facilities are being retained

in Part 74 but are presented in a more

organized manner. The performance

objectives being proposed for Category II

facilities are: (1) Confirmation of the

presence and location of SNM; (2)

prompt investigation and resolution of

any anomalies indicating a possible loss

of SNM; (3) rapid determination of

whether an actual loss of a significant

quantity of SNM has occurred; and (4)

timely generation of information to aid

in the investigation and recovery of

missing SNM in the event of an actual

loss. Implementation of these objectives

is commensurate with the amount and

type of material. The principal

differences between the MC&A

requirements in this proposed rule and

those in the current regulations are:

(1) The proposed rule would reduce

the required frequencies of Category II

physical inventories from the current

frequency of 2 months for SSNM and 6

months for everything else to 9 months.

From a safeguards risk and graded

approach perspective, this would be

consistent with the annual frequency for

Category III facilities and semiannual

frequency for Category I facilities;

(2) The concept of Inventory

Difference (ID) and Standard Error of the

Inventory Difference (SEID) would be

used to replace the Material

Unaccounted For (MUF) concept in the

statistical program. This would be

consistent with the statistical terms and

methods used in Part 74 for Category I

and III facilities and with NRC guidance

and reference documents;

29254 Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules

(3) The proposed significance testing

of ID with a three SEID limit would be

less restrictive than the current test level

of two SEID specified in § 70.51(e)(5).

This would be consistent with Category

I facilities that use a three-SEID limit

with a constraint on SEID of 0.10

percent of active inventory. The

measurement quality constraint for

Category II would remain at 0.125

percent of active inventory for SEID.

This change would result in a reduction

of unwarranted, disruptive, and costly

investigations, reports, or responses to

ID threshold actions;

(4) An item control program for

Category II facilities that is consistent

with Category III facilities is proposed.

Category II item control requirements

would be less costly than the more

stringent Category I item monitoring.

The item control requirements mainly

consist of providing current knowledge

of location, identity, and quantity of

plant-wide items existing for at least 14

days. The performance-based program

allows a licensee to propose its item

control method and frequency;

(5) The combined standard error

concept and a de minimus quantity for

plutonium and uranium in the

evaluation of shipper-receiver

differences would be used. This is

consistent with the requirements for

Category I and III facilities in Part 74;

and

(6) The required frequency for the

independent review and assessment of

the facility’s MC&A program would be

changed from annual to a minimum of

18 months. From a safeguards risk and

graded approach perspective, this

compares to the annual requirement for

Category I and the every two year

requirement for Category III.

The consolidation of regulations

would complete NRC’s regulatory

reform goal of providing a graded

approach to MC&A regulation. It would

also reduce the regulatory burden by

making it easier for a licensee to find the

MC&A requirements that apply to its

facility.

Section-by Section Discussion of

Proposed Amendments

This proposed rule would make

several changes to Parts 51, 61, 70, 72,

73, 74, 75, 76, and 150, which are

characterized as follows: The timing and

frequency for submitting Material

Balance Reports and Inventory

Composition Reports in Parts 72 and 74

would be amended. The remaining

MC&A requirements in Part 70 would be

moved to Part 74. The MC&A

requirements for Category II facilities

would be made more risk informed. Part

51 would be amended to clarify that the

categorical exclusion for safeguards

plans would also apply to amendments

to the safeguards plan. Conforming

changes would be made to Parts 61, 70,

73, 75, 76, and 150 to reflect the

relocation of the MC&A requirements.

Section 51.22 Criterion for Categorical

Exclusion; Identification of Licensing

and Regulatory Actions Eligible for

Categorical Exclusion or Otherwise Not

Requiring Environmental Review

This section would be revised to

clarify that the categorical exclusion

used for issuance of an approval of a

safeguards plan can also be used for

issuance of an approval for an

amendment to the safeguards plan.

Additionally, the listing of Parts 50, 60,

61, 70, 72, or 75 would be changed to

a more generic reference to 10 CFR

Chapter I. This change would avoid an

incomplete listing (e.g., Part 76 was

inadvertently left out).

Section 61.80 Maintenance of Records,

Reports, and Transfers

This section would be revised to

delete the reference to §§ 70.53 and

70.54, and add the new reference to

§§ 74.13 and 74.15.

Section 70.8 Information Collection

Requirements: OMB Approval

This section would be revised to

change the OMB information collection

requirements to reflect the sections

being deleted from Part 70.

Section 70.19 General License for

Calibration or Reference Sources

This section would be revised to

delete the reference to §§ 70.51 and

70.52, and add the new reference to

§§ 74.11 and 74.19.

Section 70.20a General License to

Possess Special Nuclear Material for

Transport

This section would be revised to

include a reference to § 74.11.

Section 70.22 Contents of Applications

This section would be revised to

delete the reference to § 70.58 and add

the new reference to § 74.41.

Section 70.23 Requirements for the

Approval of Applications

This section would be revised to

correct a reference from a nonexistent

section to the correct section.

Section 70.32 Conditions of Licenses

This section would be revised to

reflect the transfer of the MC&A

requirements from part 70 to part 74, to

correct an error in wording, and to

clarify that changes to a licensee’s

MC&A program that represent a

decrease in effectiveness must be made

via an amendment application pursuant

to § 70.34, consistent with current

licensing policy.

Section 70.51 Material Balance,

Inventory, and Records Requirements

This section would be revised to

rename the section and delete the

MC&A requirements because they

would be replaced by the requirements

in part 74. Paragraphs (b)(6), (b)(7),

(i)(1), and (i)(2) would be redesignated

as paragraphs (a), (b), (c)(1), and (c)(2)

respectively.

Section 70.52 Reports of Accidental

Criticality or Loss or Theft or Attempted

Theft of Special Nuclear Material

This section would be renamed to

reflect the relocation of the reporting of

theft or loss of SNM. The section would

be revised to delete paragraphs (b) and

(d) because they would be covered by

the requirements found in § 74.11. The

remaining paragraphs would be

redesignated. Paragraph (a) and new

paragraph (b) would be revised to

remove the loss of SNM.

Section 70.53 Material Status Reports

This section would be deleted in its

entirety, the requirements in this section

would be covered by the requirements

found in §§ 74.13 and 74.17.

Section 70.54 Nuclear Material

Transfer Reports

This section would be deleted in its

entirety. The requirements in this

section would be covered by the

requirements found in § 74.15.

Section 70.57 Measurement Control

Program for Special Nuclear Materials

Control and Accounting

This section would be deleted in its

entirety. The requirements in this

section would be replaced by the

requirements found in Part 74, Subpart

D.

Section 70.58 Fundamental Nuclear

Material Controls

This section would be deleted in its

entirety. The requirements in this

section would be replaced by the

requirements found in Part 74, Subpart

D.

Section 72.76 Material Status Reports

This section would be revised to

change the timing of the submittal of the

Material Status Reports from every

March 30 and September 30 to within

60 calendar days of the beginning of the

physical inventory. The language would

be revised to reflect the wording in

Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules 29255

§ 74.13 to avoid any confusion over the

term ‘‘Material Status Reports.’’ The

language would clearly state that both

the Material Balance Report and the

Physical Inventory Listing Report are to

be submitted.

Section 73.67 Licensee Fixed Site and

in-Transit Requirements for the Physical

Protection of Special Nuclear Material

of Moderate and Low Strategic

Significance

This section would be revised to

delete the reference to § 70.54 and add

a new reference to § 74.15.

Section 74.1 Purpose

This section would be revised to

reflect the addition to part 74 of the

general MC&A requirements and the

requirements for SNM of moderate

strategic significance. The reference to

§§ 70.51, 70.57, and 70.58 would be

deleted.

Section 74.2 Scope

This section would be revised to

reflect the relocation of the general

reporting and recordkeeping

requirements, and exempt part 72

licensees from the general reporting and

recordkeeping requirements, as they are

currently covered under the part 72

requirements.

Section 74.4 Definitions

This section would be revised to

clarify the definitions for ‘‘Category IA

material’’ and ‘‘inventory differences.’’

The terms ‘‘beginning inventory,’’

‘‘plant,’’ ‘‘removals from inventory,’’

and ‘‘removals from process’’ would be

newly defined. The definition for

‘‘removals’’ would be deleted. There has

been some confusion by licensees over

the term ‘‘removals.’’ The term

‘‘removals’’ would be replaced by the

terms ‘‘removals from process’’ and

‘‘removals from inventory.’’ The

definitions being proposed are

consistent with the current regulatory

guides. In addition, both the terms

‘‘beginning inventory’’ and ‘‘plant’’ are

used in the current rule language, but

were never defined in the regulations.

The definitions being proposed are

consistent with the definitions

contained in the current regulatory

guides.

Section 74.8 Information Collection

Requirements: OMB Approvals

This section would be revised to

change the OMB collection

requirements to reflect the relocation of

provisions from part 70.

Section 74.13 Material Status Reports

This section would be revised to

delete paragraph (b), and redesignate

paragraphs (a)(1) and (a)(2) as (a) and

(b), respectively. The new paragraph (a)

would be revised to require a Material

Balance Report and Physical Inventory

Listing Report to be submitted: (1)

within 60 calendar days of the

beginning of physical inventory as

required in §§ 74.19(c), 74.31(c)(5),

74.33(c)(4), or 74.43(c)(6); or (2) within

45 calendar days of the beginning of the

physical inventories as required in

§ 74.59(f)(1). The original paragraph (b)

would be deleted because the

requirements would be replaced by the

new Subpart D.

Section 74.17 Special Nuclear Material

Physical Inventory Summary Report

This section would be revised to

reflect the relocation of the MC&A

requirements and to change the address

for reporting physical inventory results

in paragraph (c). The reports would be

submitted to the Director, Office of

Nuclear Material Safety and Safeguards,

instead of the regions to be consistent

with paragraphs (a) and (b).

Section 74.19 Recordkeeping

A new section would be added to

address the general recordkeeping

requirements for MC&A that were

previously included in § 70.51. These

requirements originate from §§ 70.51

(b)(1) through (b)(5), 70.51(c), and

70.51(d).

Section 74.31 Nuclear Material

Control and Accounting for Special

Nuclear Material of Low Strategic

Significance

This section would be revised to

delete implementation dates that are no

longer applicable. This section would

also be revised to change 9 kilograms to

9000 grams because the use of 9 kg

implied that the NRC will accept a

rounding to the nearest kg, when in fact

the NRC requires rounding to the

nearest gram.

Section 74.41 Nuclear Material

Control and Accounting for Special

Nuclear Material of Moderate Strategic

Significance

A new section would be added to

provide the general performance

objectives, implementation schedule

and system capabilities and

requirements for special nuclear

material of moderate strategic

significance.

Section 74.43 Internal Controls,

Inventory, and Records

A new section would be added to

provide the requirements for internal

controls, inventory, and recordkeeping

for special nuclear material of moderate

strategic significance.

Section 74.45 Measurements and

Measurement Control

A new section would be added to

provide the requirements for

measurements and measurement control

for special nuclear material of moderate

strategic significance.

Section 74.51 Nuclear Material

Control and Accounting for Strategic

Special Nuclear Material

This section would be revised to

delete paragraphs (c)(1) and (c)(2) to

eliminate implementation dates that are

no longer relevant. Paragraph (c) would

be revised to reflect that new

Fundamental Nuclear Material Control

plans would be implemented upon

issuance of a license or amendment, or

by the date specified in a license

condition. Paragraph (d)(1) would be

deleted because it is no longer necessary

to provide an 18-month exemption for

implementation. Paragraph (d)(2) would

be redesignated as paragraph (d).

Section 74.57 Alarm Resolution

This section would be revised to

reflect an NRC organizational change:

the ‘‘Domestic Safeguards and Regional

Oversight Branch’’ and the ‘‘Division of

Safeguards and Transportation’’ are no

longer used as names of organizational

units. Also, the stated phone number is

no longer applicable. Notifications

would be made to the NRC Operations

Center.

Section 74.59 Quality Assurance and

Accounting Requirements

This section would be revised to

provide proper identification of

acronyms, correct the accidental

omission of the phrase ‘‘contained in

high enriched uranium,’’ provide

improved punctuation, correct

typographical errors, and require that

reports be submitted to the Director,

Office of Nuclear Material Safety and

Safeguards.

Section 75.21 General Requirements

This section would be revised to

delete the reference to § 70.51 and add

the new reference to § 74.15.

Section 76.113 Formula Quantities of

Strategic Special Nuclear Material—

Category I

This section would be revised to

delete the reference to § 70.51 and

29256 Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules

replace it with the new reference to

§ 74.19.

Section 76.115 Special Nuclear

Material of Moderate Strategic

Significance—Category II

This section would be revised to

delete the reference to §§ 70.51, 70.52,

70.53, 70.54, 70.57, and 70.58 and add

the new reference to §§ 74.19, 74.41,

74.43, and 74.45.

Section 76.117 Special Nuclear

Material of Low Strategic Significance—

Category III

This section would be revised to

delete the reference to § 70.51 and add

the new reference to § 74.19.

Section 150.20 Recognition of

Agreement State Licenses

This section would be revised to

delete the reference to §§ 70.51, 70.53,

and 70.54 and add the new reference to

§§ 74.11, 74.15, and 74.19.

Criminal Penalties

For the purpose of section 223 of the

Atomic Energy Act (AEA), the

Commission is proposing to amend 10

CFR parts 70, 72, and 74 under one or

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

the AEA. Willful violations of the rule

would be subject to criminal

enforcement.

Agreement State Compatibility

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 on

September 3, 1997 (62 FR 46517), most

of this proposed rule is classified as

compatibility Category ‘‘NRC.’’

However, certain parts of the proposed

rule would be a matter of consistency

among States and Federal safety

requirements. The revisions to part 61

and §§ 70.51(a), 70.51(b), 70.19(c),

150.20(b), and new § 74.19(a) would be

classified as Category C. A conforming

change to § 70.8(b) would be classified

as Category D. Although these sections

are subject to various degrees of

compatibility regarding the Agreement

States, the proposed amendments are

not expected to impact existing

Agreement States regulations. The

actual requirements are not changing,

they are only being moved to a new

location. Therefore, it is not expected

that Agreement States will need to make

conforming changes to their regulations.

Category C means the provisions

affect a program element, the essential

objectives of which should be adopted

by the State to avoid conflicts,

duplications, or gaps in the national

program. The manner in which the

essential objectives are addressed need

not be the same as NRC, provided the

essential objectives are met. Category D

means the program element does not

need to be adopted by the States for

purposes of compatibility. 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 Atomic Energy Act of

1954, as amended (AEA), or the

provisions of 10 CFR Chapter I.

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.

Plain Language

The Presidential Memorandum dated

June 1, 1998, entitled, ‘‘Plain Language

in Government Writing’’ directed that

the Government’s writing be in plain

language. The NRC requests comments

on this proposed rule specifically with

respect to the clarity and effectiveness

of the language used. Comments should

be sent to the address listed under the

heading ADDRESSES above.

Voluntary Consensus Standards

The National Technology Transfer Act

of 1995 (Pub. L. 104–113) requires that

Federal agencies use technical standards

that are developed or adopted by

voluntary consensus standards bodies

unless the use of such a standard is

inconsistent with applicable law or

otherwise impractical. In this proposed

rule, the NRC would revise the MC&A

regulations. This action does not

constitute the establishment of a

standard that establishes generally

applicable requirements.

Environmental Impact: Categorical

Exclusion

The NRC has determined that the

changes to part 51, the changes to the

reporting requirements, and the

movement of the MC&A requirements

now found in part 70 to part 74 are of

the type of action described in

categorical exclusion 10 CFR 51.22(c)(2)

and (3). Therefore neither an

environmental impact statement nor an

environmental assessment has been

prepared for these portions of the

proposed regulation. An environmental

assessment has been prepared for the

remainder of the proposed rule.

Finding of No Significant

Environmental Impact: Availability

The Commission has determined

under the National Environmental

Policy Act of 1969, as amended, and the

Commission’s regulations in subpart A

of 10 CFR part 51, not to prepare an

environmental impact statement for this

proposed rule because the Commission

has concluded based on an EA that this

proposed rule, if adopted, would not be

a major Federal action significantly

affecting the quality of the human

environment. The EA prepared to

support this rulemaking covers the

changes to the Category II requirements.

The determination of this EA is that

there will be no significant impact to the

public from this action. However, the

general public should note that the NRC

welcomes public participation. The

NRC has also committed to complying

with Executive Order 12898—Federal

Actions to Address Environmental

Justice in Minority Populations and

Low-Income Populations, dated

February 11, 1994, in all its actions.

Therefore, the NRC has also determined

that there are no disproportionate, high,

and adverse impacts on minority and

low-income populations. In the letter

and spirit of E.O. 12898, the NRC is

requesting public comment on any

environmental justice considerations or

questions that the public believes may

be related to this proposed rule but were

not addressed. The NRC uses the

following working definition of

‘‘environmental justice’: The fair

treatment and meaningful involvement

of all people, regardless of race,

ethnicity, culture, income, or

educational level with respect to the

development, implementation, and

enforcement of environmental laws,

regulations, and policies. Comments on

any aspect of the EA, including

environmental justice, may be

submitted to the NRC as indicated

under the ADDRESSES heading.

The NRC has sent a copy of the EA

and this proposed rule to every State

Liaison Officer and requested their

comments on the EA. The EA may be

examined at the NRC Public Document

Room, 11555 Rockville Pike, Room O–

1F21, Rockville, MD. Single copies of

the EA are available from Merri Horn,

telephone (301) 415–8126, e-mail,

mlh1@nrc.gov, Office of Nuclear

Material Safety and Safeguards, U.S.

Nuclear Regulatory Commission,

Washington, DC 20555–0001.

Paperwork Reduction Act Statement

This proposed rule amends

information collection requirements that

are subject to the Paperwork Reduction

Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules 29257

Act of 1995 (44 U.S.C. 3501 et seq.).

This rule has been submitted to the

Office of Management and Budget for

review and approval of the information

collection requirements.

Because the rule will reduce existing

information collection requirements, the

public burden for this information

collection is expected to be decreased

by approximately 7 hours per licensee

for licensees reporting annually, instead

of semiannually, on NRC Forms 742 and

742C. This reduction includes the time

for reviewing instructions, searching

existing data sources, gathering and

maintaining the data needed, and

completing and reviewing the

information collection. There is

essentially no change in overall burden

for the requirements in 10 CFR part 70

that are being moved to 10 CFR part 74.

The U.S. Nuclear Regulatory

Commission is seeking public comment

on the potential impact of the

information collection in the proposed

rule and on the following issues:

1. Is the proposed information

collection necessary for the proper

performance of the functions of the

NRC, including whether the information

will have practical utility?

2. Is the estimate of burden accurate?

3. Is there a way to enhance the

quality, utility, and clarity of the

information to be collected?

4. How can the burden of the

information collection be minimized,

including the use of automated

collection techniques?

Send comments on any aspect of this

proposed information collection,

including suggestions for reducing this

burden, to the Records Management

Branch (T–6 E6), U.S. Nuclear

Regulatory Commission, Washington,

DC 20555–0001, or by Internet

electronic mail at BJS1@NRC.GOV; and

to the Desk Officer, Office of

Information and Regulatory Affairs,

NEOB–10202, (3150–0004, –0009,

–0058, –0123, and –0132), Office of

Management and Budget, Washington,

DC 20503.

Comments to OMB on the information

collections or on the above issues

should be submitted by June 29, 2001.

Comments received after this date will

be considered if it is practical to do so,

but assurance of consideration cannot

be given to comments received after this

date.

Public Protection Notification

If a means used to impose an

information collection does not display

a currently valid OMB control number,

the NRC may not conduct or sponsor,

and a person is not required to respond

to, the information collection.

Regulatory Analysis

Statement of the Problem and Objective

The Commission proposes to amend

an aspect of the MC&A requirements so

as to reduce the regulatory burden and

to provide additional flexibility to

licensees required to submit Material

Balance Reports and Inventory

Composition Reports. The current

regulations require a licensee authorized

to possess at any one time or location

SNM in a quantity totaling more than

350 grams of contained uranium-235,

uranium-233, or plutonium, or any

combination thereof, to complete and

submit in a computer-readable format

Material Balance Reports concerning

SNM received, produced, possessed,

transferred, consumed, disposed of, or

lost. These reports are to be compiled as

of March 31 and September 30 of each

year and filed within 30 days after the

end of the period. Each licensee is also

required to file a statement of the

composition of the ending inventory

(also called the Physical Inventory

Listing Report) along with the Material

Balance Report. These twice yearly

reports are typically based on book

values as opposed to physical inventory

results because the dates do not always

coincide with the timeframe for a

facility’s physical inventory. Physical

inventories for Category III facilities are

conducted on an annual basis,

semiannually for Category I facilities,

and every 2 to 6 months for Category II

facilities. By revising the timeframe to

complete their Material Balance Reports

and Physical Inventory Listing reports

to coincide with the physical inventory

and providing additional time to

complete the paperwork, the regulatory

burden on most licensees would be

reduced.

The categorical exclusion

(§ 51.22(c)(12)) covers the issuance of an

amendment to a license pursuant to 10

CFR parts 50, 60, 61, 70, 72, or 75,

relating to safeguards matters or

approval of a safeguards plan. It does

not address amendments to those plans.

As written, the categorical exclusion

could be used for approval of a

safeguards plan. However, an EA would

be necessary for approval of an

amendment to the safeguards plan.

Initial approval is covered by the

categorical exclusion, but amendments

were inadvertently omitted. This

inadvertent omission would be rectified

by adding language covering revisions

to safeguards plans. In addition, the

categorical exclusion currently lists

several parts. Providing a generic

reference to any part of 10 CFR chapter

I would correct the current listing and

avoid the need for changes due to new

parts being added. These changes would

enhance the NRC’s efficiency and

reduce potential burden on the staff.

Third, in 1982, the NRC initiated an

effort to move the MC&A requirements

from 10 CFR part 70, ‘‘Domestic

Licensing of Special Nuclear Material,’’

to 10 CFR part 74, ‘‘Material Control and

Accounting of Special Nuclear

Material.’’ The initiative also included

efforts to make the requirements more

performance oriented. In 1985, the

MC&A requirements for Category III

facilities were made more performance

oriented and moved to part 74 (50 FR

7575; February 25, 1985). The

requirements for Category I facilities

were similarly moved in 1987 (52 FR

10033; March 30, 1987). The MC&A

requirements for Category II facilities

and some of the general MC&A

requirements are still interspersed

among the safety and general licensing

requirements of part 70. The

requirements regarding Category II

material are also overly prescriptive, in

some cases having more stringent

requirements than those for a Category

I facility. Although there are no current

operating Category II licensed facilities

(the only Category II facility has a

possession only license and is

undergoing decommissioning), it is still

beneficial to move the requirements and

make them less prescriptive. These

modifications would enhance the

regulatory process by providing any

future Category II licensee with a better

understanding of the procedures and

requirements for MC&A, and would

consolidate the MC&A requirements in

part 74. Conforming changes would also

be made to parts 61, 73, 75, 76, and 150

to reflect the relocations.

In addition, the proposed rule would

correct several typos, old

implementation dates, and some

terminology that should be updated to

reflect current practice and to be

consistent with the regulatory guides.

Identification and Analysis of

Alternative Approaches to the Problem

Option 1—Conduct a rulemaking that

would address the regulatory problems

described above.

The proposed rule would revise the

timing to complete the Material Balance

Reports and Physical Inventory Listing

Reports to coincide with a facility’s

physical inventory. The proposed rule

would also provide additional time to

complete the paperwork, except for a

licensee who is reporting under part 75.

These changes would provide most

licensees with additional flexibility and

reduce the regulatory burden. The

proposed rule would require that the

Material Balance Reports and Physical

29258 Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules

Inventory Listing Report be filed within

60 days (45 days for Category I facilities)

of the beginning of the physical

inventory. Because the majority of

licensees are only required to conduct

an annual physical inventory (the

exceptions being Category I and II

facilities), the reports would only need

to be filed once a year instead of twice

a year. This would reduce the burden on

industry in preparing the reports by

about half.

This proposed rule would also revise

the categorical exclusion covering

approval of safeguards plans, move the

MC&A requirements to Part 74, and

make the Category II requirements more

performance based. The proposed rule

represents the final stage of an effort

that started in 1982, and would result in

the movement of the remaining general

MC&A requirements and the

requirements for Category II facilities.

The proposed risk-informed approach is

consistent with the existing MC&A

regulations that apply to Category I and

III facilities. In addition, the proposed

rule would make needed modifications

that were missed in earlier updates of

the MC&A regulations, correct

typographical errors, delete outdated

implementation dates, clarify some

definitions, and include several new

definitions.

Option 2—No Action.

One alternative to amending the

regulations is to maintain the current

regulations without change. The

advantages of the no action alternative

is that the resources expended on the

rulemaking would be conserved.

Further, there is no urgency to make the

changes to the Category II requirements

because there are currently no active

Category II licensees. The current

system has worked reasonably well, and

the proposed changes to consolidate the

MC&A requirements in Part 74 may be

desirable, but not necessary. The

disadvantages of the no action

alternative is that the regulatory

problems described above would not be

addressed. The regulatory burden

reductions to be gained for most

licensees by changing the timing and

frequency for submittal of the Material

Balance Reports and the Physical

Inventory Listing Reports would not be

achieved. In addition, the location of the

MC&A requirements in both Part 70 and

Part 74 can cause confusion,

particularly for a licensee who refers to

the general requirements in Part 70.

Consolidation of domestic MC&A

requirements would not occur. The

requirements for Category II facilities

would remain more stringent than the

requirements for Category I facilities.

Estimation and Evaluation of Values

and Impacts

The principal purpose of the Material

Balance Report and the Physical

Inventory Listing Report is the periodic

reconciliation of licensee records with

the records in the NMMSS. A secondary

purpose is the use of these records to

satisfy the requirement of the US/IAEA

Safeguards Agreement to provide an

annual Material Balance Report for

facilities selected under the Agreement

or associated Protocol.

The proposed rule would modify the

regulations to require the Material

Balance Report and the Physical

Inventory Listing Report at the time of

a physical inventory. The proposed rule

would require the reports to be

completed within 60 days of the

beginning of the physical inventory for

independent spent fuel storage

installations, reactors, and Category II

and III facilities, and within 45 days of

the beginning of the physical inventory

for Category I facilities. This

modification would not effect licensees

reporting under part 75. Because most

licensees conduct annual inventories,

the reporting burden would be reduced.

Reconciliation once a year instead of

twice a year would not appear to be a

problem for most licensees because the

number of transactions is such that

reconciliation of records would be

manageable. In the case of the gaseous

diffusion plants (GDPs) and their large

number of transactions, reconciliation

could be more difficult. This change

would not preclude the GDPs from

continuing to request monthly

summaries from the NMMSS and

reconciling its records with the NMMSS

on a bimonthly basis, which is the

current practice. One Material Balance

Report and Physical Inventory Listing

Report per year at the time of the

physical inventory would still provide

for adequate safeguards for Category III

facilities. In addition to reducing the

regulatory burden on a licensee, the

change would enhance the efficiency of

the NMMSS.

Licensees are required to submit the

semiannual Material Balance Reports

and Physical Inventory Listing Reports

within 30 days of March 31 and

September 30 of each year. The

preestablished timing of the submittals

has two drawbacks. Specifically, the

reports rarely coincide with a physical

inventory, and the NMMSS contractor

receives all of the reports for a given

period simultaneously. The data from a

physical inventory is significantly more

meaningful than the book values

reported during the interim periods.

Staggering the submittals should benefit

the NMMSS contractor, as not all

licensees conduct inventories at the

same time. Requirements for the

NMMSS contractor would likely be

spread more evenly throughout the year.

By modifying the requirement to

stipulate that the Material Balance

Report and Physical Inventory Listing

Report shall be submitted at the time of

the physical inventory, these problems

could be alleviated, and the data from

the reports would be more meaningful.

Another consideration is whether

there would be an adverse impact on

meeting IAEA safeguards requirements.

Pursuant to the terms of the US/IAEA

Safeguards Agreement and § 75.35, only

one Material Balance Report and

Physical Inventory Listing Report is

required per year. Consequently there

would be no adverse impact.

As the proposed rule would tie

submittal of the reports to the physical

inventory, the majority of licensees

would only need to submit the reports

once a year instead of twice a year. This

would result in reducing the industry

burden for preparing and filing the

Material Balance Report and the

Physical Inventory Listing Reports by

half. The Material Balance Reports are

filed using DOE/NRC Form 742. The

burden for preparation and submission

of each DOE/NRC Form 742 is estimated

to be 45 minutes. There are currently

about 200 licensees who submit two

forms per year. With the submittal of

only one report per year for 198

licensees, the burden is reduced by

about 149 hours. The Physical Inventory

Listing Reports are filed on DOE/NRC

Form 742C. The burden for preparing

this form is 6 hours. With about 178

licensees submitting the form annually,

the total burden reduction is 1068 hours

per year. Because some licensees are

also required to submit DOE/NRC Form

742 to cover foreign origin source

material, the number of licensees

required to submit NRC Form 742 is

higher than the number submitting

DOE/NRC Form 742C.

The burden on the NRC staff would

also be reduced because there would be

fewer reports to review. NRC review

time is approximately 5 minutes per

report. With a reduction of 376 reports

per year, NRC staff would save about 31

hours per year. In addition, the NRC

staff receives five to eight requests per

year from licensees who are asking for

more time to file the reports. With the

additional time being provided for filing

the reports, the NRC staff does not

expect to receive any requests in the

future. The applicant would save the

effort necessary in preparing the

request, and the staff would save time

in reviewing and approving the request.

Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules 29259

This alternative would also result in

the consolidation of the MC&A

requirements in Part 74 and adoption of

more risk-informed regulations for

Category II facilities. These

modifications would enhance the

regulatory process by providing any

future Category II licensees a better

understanding of the procedures and

requirements for MC&A. The principal

cost for this action would be the modest

expenditure of NRC staff resources to

issue this rulemaking. However, there

are no currently active Category II

licensees that would benefit from the

revised regulations for Category II

facilities. Another advantage is that

domestic MC&A requirements would be

consolidated and would provide a

graded, risk-informed approach to

MC&A regulation. In addition, the

existing typographical errors, outdated

terminology, and old implementation

dates would be corrected.

Presentation of Results

The recommended action is to adopt

the first option because it would reduce

the burden on licensees in preparing

and filing their Material Balance Reports

and Physical Inventory Listing Reports.

The process would become more

efficient, and the burden of producing

the reports would be reduced by a total

of approximately 1,217 staff-hours. In

addition to reducing unnecessary

regulatory burden on licensees, the

changes would enhance the operational

efficiency of the NMMSS contractor by

spreading the report submittals more

evenly throughout the year. This change

would not preclude the gaseous

diffusion plants with their large number

of transactions from continuing to

request monthly summaries from the

NMMSS to reconcile their records. The

proposed rule would also consolidate

the MC&A requirements in Part 74 and

adopt more risk-informed regulations

for Category II facilities. These

modifications should enhance the

regulatory process by providing any

future Category II licensee a better

understanding of the procedures and

requirements for MC&A. The principal

cost for this action would be the modest

expenditure of NRC staff resources to

issue this rulemaking. The total cost of

this rulemaking to the NRC is estimated

at 1.2 FTE. The total savings to the

industry is about 1217 hours per year.

The action is considered to be cost

beneficial to licensees and would

improve the operational efficiency of

the NMMSS contractor. Adequate

safeguards would be maintained.

Consequently, the Commission believes

public confidence would not be

adversely affected by this rulemaking.

Decision Rationale

Based on the discussion of the

benefits and impacts of the alternatives,

the NRC concludes that the

requirements of the proposed rule are

commensurate with the NRC’s

responsibilities for public health and

safety and the common defense and

security. This rulemaking would save

both NRC staff and licensee resources.

No other available alternative is

believed to be as satisfactory. Thus, this

action is recommended.

The Commission requests public

comment on the draft analysis.

Comments on the draft analysis may be

submitted to the NRC as indicated

under the ADDRESSES heading.

Regulatory Flexibility Certification

In accordance with the Regulatory

Flexibility Act of 1980, (5 U.S.C.

605(b)), the Commission certifies that

this rule, if adopted, will not have a

significant economic impact on a

substantial number of small entities.

The majority of companies that own

these plants do not fall within the scope

of the definition of ‘‘small entities’’ set

forth in the Regulatory Flexibility Act or

the size standards adopted by the NRC

(10 CFR 2.810).

Backfit Analysis

The NRC has determined that the

backfit rule (§§ 50.109, 72.62, or 76.76)

does not apply to this proposed rule

because these amendments do not

involve any provisions that would

impose backfits as defined in the backfit

rule. Therefore, a backfit analysis is not

required.

List of Subjects

10 CFR Part 51

Administrative practice and

procedure, Environmental impact

statement, Nuclear materials, Nuclear

power plants and reactors, Reporting

and recordkeeping requirements.

10 CFR Part 61

Criminal penalties, Low-level waste,

Nuclear materials, Reporting and

recordkeeping requirements, Waste

treatment and disposal.

10 CFR Part 70

Criminal penalties, Hazardous

materials transportation, Material

control and accounting, Nuclear

materials, Packaging and containers,

Radiation protection, Reporting and

recordkeeping requirements, Scientific

equipment, Security measures, Special

nuclear material.

10 CFR Part 72

Criminal penalties, Manpower

training programs, Nuclear materials,

Occupational safety and health,

Reporting and recordkeeping

requirements, Security measures, Spent

fuel.

10 CFR Part 73

Criminal penalties, Export, Hazardous

materials transportation, Import,

Nuclear materials, Nuclear power plants

and reactors, Reporting and

recordkeeping requirements, Security

measures.

10 CFR Part 74

Accounting, Criminal penalties,

Hazardous materials transportation,

Material control and accounting,

Nuclear materials, Packaging and

containers, Radiation protection,

Reporting and recordkeeping

requirements, Scientific equipment,

Special nuclear material.

10 CFR Part 75

Criminal penalties, Intergovernmental

relations, Nuclear materials, Nuclear

power plants and reactors, Reporting

and recordkeeping requirements,

Security measures.

10 CFR Part 76

Certification, Criminal penalties,

Radiation protection, Reporting and

recordkeeping requirements, Security

measures, Special nuclear material,

Uranium enrichment by gaseous

diffusion.

10 CFR Part 150

Criminal penalties, Hazardous

materials transportation,

Intergovernmental relations, Nuclear

materials, Reporting and recordkeeping

requirements, Security measures,

Source material, Special nuclear

material.

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 parts 51, 61, 70,

72, 73, 74, 75, 76, and 150.

PART 51—ENVIRONMENTAL

PROTECTION REGULATIONS FOR

DOMESTIC LICENSING AND RELATED

REGULATORY FUNCTIONS

1. The authority citation for Part 51

continues to read as follows:

Authority: Sec. 161, 68 Stat. 948, as

amended, sec. 1701, 106 Stat. 2951, 2952,

2953 (42 U.S.C. 2201, 2297f); secs. 201, as

amended, 202, 88 Stat. 1242, as amended,

29260 Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules

1244 (42 U.S.C. 5841, 5842). Subpart A also

issued under National Environmental Policy

Act of 1969, secs. 102, 104, 105, 83 Stat. 853–

854, as amended (42 U.S.C. 4332, 4334,

4335); and Pub. L. 95–604, Title II, 92 Stat.

3033–3041; and sec. 193, Pub. L. 101–575,

104 Stat. 2835, (42 U.S.C. 2243). Sections

51.20, 51.30, 51.60, 51.80, and 51.97 also

issued under secs. 135, 141, Pub. L. 97–425,

96 Stat. 2232, 2241, and sec. 148, Pub. L.

100–203, 101 Stat. 1330–223 (42 U.S.C.

10155, 10161, 10168). Section 51.22 also

issued under sec. 274, 73 Stat. 688, as

amended by 92 Stat. 3036–3038 (42 U.S. C.

2021) and under Nuclear Waste Policy Act of

1982, sec. 121, 96 Stat. 2228 (42 U.S.C.

10141). Sections 51.43, 51.67, and 51.109

also under Nuclear Waste Policy Act of 1982,

sec. 114(f), 96 Stat. 2216, as amended (42

U.S.C. 10134(f)).

2. In § 51.22, paragraph (c)(12) is

revised to read as follows:

§ 51.22 Criterion for categorical exclusion;

identification of licensing and regulatory

actions eligible for categorical exclusion or

otherwise not requiring environmental

review.

* * * * *

(c) * * *

(12) Issuance of an amendment to a

license implementing any requirement

of this chapter relating solely to

safeguards matters (i.e., protection

against sabotage or loss or diversion of

special nuclear material), or issuance of

an approval of a safeguards plan (or

revision thereto) submitted pursuant to

a requirement of any part of this

chapter, provided that the amendment

or approval does not involve any

significant construction impacts. These

amendments and approvals are confined

to:

(i) Organizational and procedural

matters;

(ii) Modifications to systems used for

security and/or materials accountability;

(iii) Administrative changes; and

(iv) Review and approval of

transportation routes pursuant to 10

CFR 73.37.

* * * * *

PART 61—LICENSING

REQUIREMENTS FOR LAND

DISPOSAL OF RADIOACTIVE WASTE

3. The authority citation for Part 61

continues to read as follows:

Authority: Secs. 53, 57, 62, 63, 65, 81, 161,

182, 183, 68 Stat. 930, 932, 933, 935, 948,

953, 954, as amended (42 U.S.C. 2073, 2077,

2092, 2093, 2095, 2111, 2201, 2232, 2233);

secs. 202, 206, 88 Stat. 1244, 1246 (42 U.S.C.

5842, 5846); secs. 10 and 14, Pub. L. 95–601,

92 Stat. 2951 (42 U.S.C. 2021a and 5851) and

Pub. L. 102–486, sec. 2902, 106 Stat. 3123 (42

U.S.C. 5851).

4. In § 61.80, paragraph (g) is revised

to read as follows:

§ 61.80 Maintenance of records, reports,

and transfers.

* * * * *

(g) Each licensee shall comply with

the safeguards reporting requirements of

§§ 30.55, 40.64, 74.13, and 74.15 of this

chapter if the quantities or activities of

materials received or transferred exceed

the limits of these sections. Inventory

reports required by these sections are

not required for materials after disposal.

* * * * *

PART 70—DOMESTIC LICENSING OF

SPECIAL NUCLEAR MATERIAL

5. The authority citation for Part 70

continues to read as follows:

Authority: Secs. 51, 53, 161, 182, 183, 68

Stat. 929, 930, 948, 953, 954, as amended,

sec. 234, 83 Stat. 444, as amended (42 U.S.C.

2071, 2073, 2201, 2232, 2233, 2282, 2297f);

secs. 201, as amended, 202, 204, 206, 88 Stat.

1242, as amended, 1244, 1245, 1246 (42

U.S.C. 5841, 5842, 5845, 5846). Sec. 193, 104

Stat. 2835 as amended by Pub. L. 104–134,

110 Stat. 1321, 1321–349 (42 U.S.C. 2243).

Sections 70.1(c) and 70.20a(b) also issued

under secs. 135, 141, Pub. L. 97–425, 96 Stat.

2232, 2241 (42 U.S.C. 10155, 10161). Section

70.7 also issued under Pub. L. 95–601, sec.

10, 92 Stat. 2951 (42 U.S.C. 5851). Section

70.21(g) also issued under sec. 122, 68 Stat.

939 (42 U.S.C. 2152). Section 70.31 also

issued under sec. 57d, Pub. L. 93–377, 88

Stat. 475 (42 U.S.C. 2077). Sections 70.36 and

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

as amended (42 U.S.C. 2234). Section 70.61

also issued under secs. 186, 187, 68 Stat. 955

(42 U.S.C. 2236, 2237). Section 70.62 also

issued under sec. 108, 68 Stat. 939, as

amended (42 U.S.C. 2138).

6. In § 70.8, paragraphs (b) and (c) are

revised to read as follows:

§ 70.8 Information collection

requirements: OMB approval.

* * * * *

(b) The approved information

collection requirements contained in

this part appear in §§ 70.9, 70.17, 70.19,

70.20a, 70.20b, 70.21, 70.22, 70.24,

70.25, 70.32, 70.33, 70.34, 70.38, 70.39,

70.42, 70.50, 70.51, 70.52, 70.59, 70.61,

70.62, 70.64, 70.65, 70.72, 70.73, 70.74,

and Appendix A.

(c) This part contains information

collection requirements in addition to

those approved under the control

number specified in paragraph (a) of

this section. These information

collection requirements and the control

numbers under which they are

approved are as follows:

(1) In § 70.21, Form N–71 is approved

under control number 3150–0056.

(2) In § 70.38, NRC Form 314 is

approved under control number 3150–

0028.

7. In § 70.19, the introductory text of

paragraph (c) is revised to read as

follows:

§ 70.19 General license for calibration or

reference sources.

* * * * *

(c) The general license in paragraph

(a) of this section is subject to the

provisions of §§ 70.32, 70.50, 70.55,

70.56, 70.61, 70.62, 70.71, 74.11, and

74.19, and to the provisions of parts 19,

20 and 21 of this chapter. In addition,

persons who receive title to, own,

acquire, deliver, receive, possess, use or

transfer one or more calibration or

reference sources pursuant to this

general license:

* * * * *

8. In § 70.20a, paragraph (a) is revised

to read as follows:

§ 70.20a General license to possess

special nuclear material for transport.

(a) A general license is hereby issued

to any person to possess formula

quantities of strategic special nuclear

material of the types and quantities

subject to the requirements of §§ 73.20,

73.25, 73.26, and 73.27 of this chapter,

and irradiated reactor fuel containing

material of the types and quantities

subject to the requirements of § 73.37 of

this chapter, in the regular course of

carriage for another or storage incident

thereto. Carriers generally licensed

under § 70.20b are exempt from the

requirements of this section. Carriers of

irradiated reactor fuel for the United

States Department of Energy are also

exempt from the requirements of this

section. The general license is subject to

the applicable provisions of §§ 70.7 (a)

through (e), 70.32 (a) and (b), and

§§ 70.42, 70.52, 70.55, 70.61, 70.62,

70.71, and 74.11.

* * * * *

9. In § 70.22, paragraph (b) is revised

to read as follows:

§ 70.22 Contents of applications.

* * * * *

(b) Each application for a license to

possess special nuclear material, to

possess equipment capable of enriching

uranium, to operate an uranium

enrichment facility, to possess and use

at any one time and location special

nuclear material in a quantity exceeding

one effective kilogram, except for

applications for use as sealed sources

and for those uses involved in the

operation of a nuclear reactor licensed

pursuant to part 50 of this chapter and

those involved in a waste disposal

operation, must contain a full

description of the applicant’s program

for control and accounting of such

special nuclear material or enrichment

equipment that will be in the

applicant’s possession under license to

show how compliance with the

requirements of §§ 74.31, 74.33, 74.41,

Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules 29261

1A previous § 20.304 permitted burial of small

quantities of licensed materials in soil before

January 28, 1981, without specific Commission

authorization. See § 20.304 contained in the 10

CFR, parts 0 to 199, edition revised as of January

1, 1981.

1Commercial telephone number of the NRC

Operations Center is (301) 816–5100.

or 74.51 of this chapter, as applicable,

will be accomplished.

* * * * *

10. In § 70.23, paragraph (a)(6) is

revised to read as follows:

§ 70.23 Requirements for the approval of

applications.

(a) * * *

(6) Where the applicant is required to

submit a summary description of the

fundamental material controls provided

in his procedures for the control of and

accounting for special nuclear material

pursuant to § 70.22 (b), the applicant’s

proposed controls are adequate;

* * * * *

11. In § 70.32, paragraphs (c)(1)(i), (ii),

and (iii) are revised to read as follows:

§ 70.32 Conditions of licenses.

* * * * *

(c)(1) * * *

(i) The program for control and

accounting of uranium source material

at an uranium enrichment facility and

special nuclear material at all applicable

facilities as implemented pursuant to

§§ 70.22(b), 74.31(b), 74.33(b), 74.41(b),

or 74.51(c) of this chapter, as

appropriate;

(ii) The measurement control program

for uranium source material at an

uranium enrichment facility and for

special nuclear material at all applicable

facilities as implemented pursuant to

§§ 74.31(b), 74.33(b), 74.45(c), or

74.59(e) of this chapter, as appropriate;

and

(iii) Other material control procedures

as the Commission determines to be

essential for the safeguarding of

uranium source material at an uranium

enrichment facility or of special nuclear

material and providing that the licensee

shall make no change that would

decrease the effectiveness of the

material control and accounting

program implemented pursuant to

§§ 70.22(b), 74.31(b), 74.33(b), 74.41(b),

or 74.51(c) of this chapter and the

measurement control program

implemented pursuant to §§ 74.31(b),

74.33(b), 74.41(b), or 74.59(e) of this

chapter without the prior approval of

the Commission. A licensee desiring to

make changes that would decrease the

effectiveness of its material control and

accounting program or its measurement

control program shall submit an

application for amendment to its license

pursuant to § 70.34.

* * * * *

12. Section 70.51 is revised to read as

follows:

§ 70.51 Records requirements.

(a) Before license termination,

licensees shall forward the following

records to the appropriate NRC Regional

Office:

(1) Records of disposal of licensed

material made under §§ 20.2002

(including burials authorized before

January 28, 1981 1), 20.2003, 20.2004,

20.2005;

(2) Records required by

§ 20.2103(b)(4); and

(3) Records required by § 70.25(g).

(b) If licensed activities are transferred

or assigned in accordance with

§ 70.32(a)(3), the licensee shall transfer

the following records to the new

licensee and the new licensee will be

responsible for maintaining these

records until the license is terminated:

(1) Records of disposal of licensed

material made under §§ 20.2002

(including burials authorized before

January 28, 1981 1), 20.2003, 20.2004,

20.2005;

(2) Records required by

§ 20.2103(b)(4); and

(3) Records required by § 70.25(g).

(c)(1) Records which must be

maintained pursuant to this part may be

the original or a reproduced copy, or

microform if the reproduced copy or

microform is duly authenticated by

authorized personnel, and the

microform is capable of producing a

clear and legible copy after storage for

the period specified by Commission

regulations. The record may also be

stored in electronic media with the

capability for producing legible,

accurate, and complete records during

the required retention period. Records

such as letters, drawings, and

specifications, must include all

pertinent information such as stamps,

initials, and signatures. The licensee

shall maintain adequate safeguards

against tampering with and loss of

records.

(2) If there is a conflict between the

Commission’s regulations in this part,

license condition, or other written

Commission approval or authorization

pertaining to the retention period for the

same type of record, the retention

period specified in the regulations in

this part for these records shall apply

unless the Commission, pursuant to

§ 70.14, has granted a specific

exemption from the record retention

requirements specified in the

regulations in this part.

13. Section 70.52 is revised to read as

follows:

§ 70.52 Reports of accidental criticality.

(a) Each licensee shall notify the NRC

Operations Center 1 within one hour

after discovery of any case of accidental

criticality.

(b) This notification must be made to

the NRC Operations Center via the

Emergency Notification System if the

licensee is party to that system. If the

Emergency Notification System is

inoperative or unavailable, the licensee

shall make the required notification via

commercial telephonic service or other

dedicated telephonic system or any

other method that will ensure that a

report is received by the NRC

Operations Center within one hour.

§ 70.53 [Removed]

14. Section 70.53 is removed.

§ 70.54 [Removed]

15. Section 70.54 is removed.

§ 70.57 [Removed]

16. Section 70.57 is removed.

§ 70.58 [Removed]

17. Section 70.58 is removed.

PART 72—LICENSING

REQUIREMENTS FOR THE

INDEPENDENT STORAGE OF SPENT

NUCLEAR FUEL AND HIGH-LEVEL

RADIOACTIVE WASTE

18. The authority citation for Part 72

continues 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, 2244, (42 U.S.C.

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

29262 Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules

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).

19. In § 72.76, paragraph (a) is revised

to read as follows:

§ 72.76 Material status reports.

(a) Except as provided in paragraph

(b) of this section, each licensee shall

complete in computer-readable format

and submit to the Commission a

Material Balance Report and a Physical

Inventory Listing Report in accordance

with instructions (NUREG/BR–0007 and

NMMSS Report D—24 ‘‘Personal

Computer Data Input for NRC

Licensees’’). Copies of these instructions

may be obtained from the U.S. Nuclear

Regulatory Commission, Division of

Fuel Cycle Safety and Safeguards,

Washington, DC 20555—0001. These

reports provide information concerning

the special nuclear material possessed,

received, transferred, disposed of, or

lost by the licensee. Each report must be

submitted within 60 days of the

beginning of the physical inventory

required by § 72.72(b). The Commission

may, when good cause is shown, permit

a licensee to submit Material Balance

Reports and Physical Inventory Listing

Reports at other times. The

Commission’s copy of this report must

be submitted to the address specified in

the instructions. These prescribed

computer-readable forms replace the

DOE/NRC Forms 742 and 742C which

have been previously submitted in

paper form.

* * * * *

PART 73—PHYSICAL PROTECTION OF

PLANTS AND MATERIALS

20. The authority citation for Part 73

continues to read as follows:

Authority: Secs. 53, 161, 68 Stat. 930, 948,

as amended, sec. 147, 94 Stat. 780 (42 U.S.C.

2073, 2167, 2201); sec. 201, as amended, 204,

88 Stat. 1242, as amended, 1245, sec. 1701,

106 Stat. 2951, 2952, 2953 (42 U.S.C. 5841,

5844, 2297f).

Section 73.1 also issued under secs. 135,

141, Pub. L. 97–425, 96 Stat. 2232, 2241 (42

U.S.C. 10155, 10161). Section 73.37(f) also

issued under sec. 301, Pub. L. 96–295, 94

Stat. 789 (42 U.S.C. 5841 note). Section 73.57

is issued under sec. 606, Pub. L. 99–399, 100

Stat. 876 (42 U.S.C. 2169).

21. In § 73.67, paragraph (e)(2)(ii) is

revised to read as follows:

§ 73.67 Licensee fixed site and in-transit

requirements for the physical protection of

special nuclear material of moderate and

low strategic significance.

* * * * *

(e) * * *

(2) * * *

(ii) Notify the shipper of receipt of the

material as required in § 74.15 of this

chapter, and

* * * * *

PART 74—MATERIAL CONTROL AND

ACCOUNTING OF SPECIAL NUCLEAR

MATERIAL

22. The authority citation for Part 74

continues to read as follows:

Authority: Secs. 53, 57, 161, 182, 183, 68

Stat. 930, 932, 948, 953, 954, as amended,

sec. 234, 83 Stat. 444, as amended, sec. 1701,

106 Stat. 2951, 2952, 2953 (42 U.S.C. 2073,

2077, 2201, 2232, 2233, 2282, 2297f); secs.

201, as amended, 202, 206, 88 Stat. 1242, as

amended, 1244, 1246 (42 U.S.C. 5841, 5842,

5846).

23. In § 74.1, paragraph (a) is revised

to read as follows:

§ 74.1 Purpose.

(a) This part has been established to

contain the requirements for the control

and accounting of special nuclear

material at fixed sites and for

documenting the transfer of special

nuclear materials. General reporting

requirements as well as specific

requirements for certain licensees

possessing special nuclear material of

low strategic significance, special

nuclear material of moderate strategic

significance, and formula quantities of

strategic special nuclear material are

included. Requirements for the control

and accounting of source material at

enrichment facilities are also included.

* * * * *

24. Section 74.2 is revised to read as

follows:

§ 74.2 Scope.

(a) The general reporting and

recordkeeping requirements of subpart

B of this part apply to each person

licensed pursuant to this chapter who

possess special nuclear material in a

quantity greater than 350 grams of

contained uranium-235, uranium-233,

or plutonium, or any combination

thereof; or who transfers or receives a

quantity of special nuclear material of 1

gram or more of contained uranium-235,

uranium-233, or plutonium. The general

reporting and recordkeeping

requirements of subpart B of this part do

not apply to licensees whose MC&A

reporting and recordkeeping

requirements are covered by §§ 72.72,

72.76, and 72.78 of this chapter.

(b) In addition, specific control and

accounting requirements are included in

subparts C, D, and E of this part for

certain licensees who:

(1) Possess and use formula quantities

of strategic special nuclear material;

(2) Possess and use special nuclear

material of moderate strategic

significance;

(3) Possess and use special nuclear

material of low strategic significance; or

(4) Possess uranium source material

and equipment capable of producing

enriched uranium.

(c) As provided in part 76 of this

chapter, the regulations of this part

establish procedures and criteria for

material control and accounting for the

issuance of a certificate of compliance

or the approval of a compliance plan.

25. In § 74.4, definition for

‘‘Removals’’ is removed; the definitions

of ‘‘Category IA material’’ and

‘‘Inventory difference (ID)’’ are revised;

and the definitions for ‘‘Beginning

inventory (BI),’’ ‘‘Plant,’’ ‘‘Removals

from inventory,’’ and ‘‘Removals of

material from process’’ are added in

alphabetical order to read as follows:

§ 74.4 Definitions.

* * * * *

Beginning inventory (BI) means the

book inventory quantity at the

beginning of an inventory period, and is

the reconciled physical inventory

entered into the books as an adjusted

inventory at the completion of the prior

inventory period.

* * * * *

Category IA material means SSNM

directly useable in the manufacture of a

nuclear explosive device, except if:

(1) The dimensions are large enough

(at least two meters in one dimension,

greater than one meter in each of two

dimensions, or greater than 25cm in

each of three dimensions) to preclude

hiding the item on an individual;

(2) The total weight of an

encapsulated item of SSNM is such that

it cannot be carried inconspicuously by

one person (i.e., at least 50 kilograms

gross weight); or

(3) The quantity of SSNM (less than

0.05 formula kilograms) in each

container requires protracted diversions

to accumulate five formula kilograms.

* * * * *

Inventory difference (ID) means the

arithmetic difference obtained by

subtracting the quantity of SNM

tabulated from a physical inventory

from the book inventory quantity. Book

inventory quantity is equivalent to the

beginning inventory (BI) plus additions

to inventory (A) minus removals from

inventory (R), while the physical

inventory quantity is the ending

inventory (EI) for the material balance

period in question (as physically

determined). Thus mathematically,

ID = (BI + A¥R)¥EI or ID = BI +

A¥R¥EI

* * * * *

Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules 29263

Plant means a set of processes or

operations (on the same site, but not

necessarily all in the same building)

coordinated into a single manufacturing,

R&D, or testing effort. A scrap recovery

operation, or an analytical laboratory,

serving both on-site and off-site

customers (or more than one on-site

manufacturing effort) must be treated as

a separate plant. Physical inventories

are to be conducted for each plant as

well as for a total site.

* * * * *

Removals from inventory means

measured quantities of special nuclear

material contained in:

(1) Shipments;

(2) Waste materials transferred to an

on-site holding account via a DOE/NRC

Form 741 transaction;

(3) Measured discards transported

offsite; and

(4) Effluents released to the

environment.

Removals of material from process (or

removals from process) means measured

quantities of special nuclear material

contained in:

(1) Effluents released to the

environment;

(2) Previously unencapsulated

materials that have been encapsulated

as sealed sources;

(3) Waste materials that will not be

subject to further on-site processing and

which are under tamper-safing;

(4) Ultimate product placed under

tamper-safing; and

(5) Any materials (not previously

designated as removals from process)

shipped offsite.

* * * * *

26. In § 74.8, paragraph (b) is revised

to read as follows:

§ 74.8 Information collection

requirements: OMB approval.

* * * * *

(b) The approved information

collection requirements contained in

this part appear in §§ 74.11, 74.13,

74.15, 74.17, 74.19, 74.31, 74.33, 74.41,

74.43, 74.45, 74.51, 74.57, and 74.59.

* * * * *

27. The heading of Subpart B is

revised to read as follows:

Subpart B—General Reporting and

Recordkeeping Requirements

28. Section 74.13 is revised to read as

follows:

§ 74.13 Material status reports.

(a) Each licensee, including nuclear

reactor licensees as defined in §§ 50.21

and 50.22 of this chapter, authorized to

possess at any one time and location

special nuclear material in a quantity

totaling more than 350 grams of

contained uranium-235, uranium-233,

or plutonium, or any combination

thereof, shall complete and submit in

computer-readable format Material

Balance Reports concerning special

nuclear material received, produced,

possessed, transferred, consumed,

disposed of, or lost by it. This

prescribed computer-readable report

replaces the DOE/NRC Form 742 which

has been previously submitted in paper

form. The Physical Inventory Listing

Report must be submitted with each

Material Balance Report. This

prescribed computer-readable report

replaces the DOE/NRC Form 742C

which has been previously submitted in

paper form. Each licensee shall prepare

and submit the reports described in this

paragraph in accordance with

instructions (NUREG/BR–0007 and

NMMSS Report D–24 ‘‘Personal

Computer Data Input for NRC

Licensees’’). Copies of these instructions

may be obtained from the U.S. Nuclear

Regulatory Commission, Division of

Fuel Cycle Safety and Safeguards,

Washington, DC 20555–0001. Each

licensee shall submit a report within 60

calendar days of the beginning of the

physical inventory required by

§§ 74.19(c), 74.31(c)(5), 74.33(c)(4), or

74.43(c)(6) or 45 calendar days of the

beginning of the physical inventory

required by § 74.59(f)(1). The

Commission may permit a licensee to

submit the reports at other times for

good cause.

(b) Any licensee who is required to

submit routine Material Status Reports

pursuant to § 75.35 of this chapter

(pertaining to implementation of the

US/IAEA Safeguards Agreement) shall

prepare and submit these reports only as

provided in that section (instead of as

provided in paragraph (a)(1) of this

section).

29. Section 74.17 is revised to read as

follows:

§ 74.17 Special nuclear material physical

inventory summary report.

(a) Each licensee subject to the

requirements of § 74.31 or § 74.33 shall

submit a completed Special Nuclear

Material Physical Inventory Summary

Report on NRC Form 327 not later than

60 calendar days from the start of each

physical inventory required by

§ 74.31(c)(5) or § 74.33(c)(4). The

licensee shall report the physical

inventory results by plant and total

facility to the Director, Office of Nuclear

Material Safety and Safeguards, U.S.

Nuclear Regulatory Commission,

Washington, DC 20555–0001.

(b) Each licensee subject to the

requirements of § 74.41(a) shall submit

a completed Special Nuclear Material

Physical Inventory Summary Report on

NRC Form 327 not later than 60

calendar days from the start of each

physical inventory required by

§ 74.43(c)(7). The licensee shall report

the physical inventory results by plant

and total facility to the Director, Office

of Nuclear Material Safety and

Safeguards, U.S. Nuclear Regulatory

Commission, Washington, DC 20555–

0001.

(c) Each licensee subject to the

requirements of § 74.51 shall submit a

completed Special Nuclear Material

Physical Inventory Summary Report on

NRC Form 327 not later than 45

calendar days from the start of each

physical inventory required by

§ 74.59(f). The licensee shall report the

physical inventory results by plants and

total facility to the Director, Office of

Nuclear Material Safety and Safeguards,

U.S. Nuclear Regulatory Commission,

Washington, DC 20555–0001.

30. Section 74.19 is added to subpart

B to read as follows:

§ 74.19 Recordkeeping.

(a) Licensees subject to the

recordkeeping requirements of §§ 74.31,

74.33, 74.43, or 74.59 are exempt from

the requirements of paragraphs (a)(1)

through (4) of this section. Otherwise:

(1) Each licensee shall keep records

showing the receipt, inventory

(including location and unique

identity), acquisition, transfer, and

disposal of all special nuclear material

in its possession regardless of its origin

or method of acquisition.

(2) Each record relating to material

control or material accounting that is

required by the regulations in this

chapter or by license condition must be

maintained and retained for the period

specified by the appropriate regulation

or license condition. If a retention

period is not otherwise specified by

regulation or license condition, the

licensee shall retain the record until the

Commission terminates the license that

authorizes the activity that is subject to

the recordkeeping requirement.

(3) Each record of receipt, acquisition,

or physical inventory of special nuclear

material that must be maintained

pursuant to paragraph (a)(1) of this

section must be retained as long as the

licensee retains possession of the

material and for 3 years following

transfer or disposal of such material.

(4) Each record of transfer of special

nuclear material to other persons must

be retained by the licensee who

transferred the material until the

Commission terminates the license

authorizing the licensee’s possession of

the material.

29264 Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules

(b) Each licensee that is authorized to

possess special nuclear material in a

quantity exceeding one effective

kilogram at any one time shall establish,

maintain, and follow written material

control and accounting procedures that

are sufficient to enable the licensee to

account for the special nuclear material

in its possession under license. The

licensee shall retain these procedures

until the Commission terminates the

license that authorizes possession of the

material and retain any superseded

portion of the procedures for 3 years

after the portion is superseded.

(c) Other than licensees subject to

§§ 74.31, 74.33, 74.41, or 74.51, each

licensee who is authorized to possess

special nuclear material, at any one time

and site location, in a quantity greater

than 350 grams of contained uranium235, uranium-233, or plutonium, or any

combination thereof, shall conduct a

physical inventory of all special nuclear

material in its possession under license

at intervals not to exceed 12 months.

The results of these physical inventories

need not be reported to the Commission,

but the licensee shall retain the records

associated with each physical inventory

until the Commission terminates the

license that authorized the possession of

special nuclear material.

(d) Records that must be maintained

pursuant to this part may be the original

or a reproduced copy or a microform if

the reproduced copy or microform is

duly authenticated by authorized

personnel and the microform is capable

of producing a clear and legible copy

after storage for the period specified by

Commission regulations. The record

may also be stored in electronic media

with the capability for producing

legible, accurate, and complete records

during the required retention period.

Records such as letters, drawings, or

specifications must include all pertinent

information such as stamps, initials, and

signatures. The licensee shall maintain

adequate safeguards against tampering

with and loss of records.

31. In § 74.31, paragraphs (b) and

(c)(4) are revised as follows:

§ 74.31 Nuclear material control and

accounting for special nuclear material of

low strategic significance.

* * * * *

(b) Implementation: Each applicant

for a license, and each licensee that,

upon application for modification of its

license, would become newly subject to

the performance objectives of paragraph

(a) of this section, shall submit a

fundamental nuclear material control

(FNMC) plan describing how the

requirements of paragraph (c) of this

section will be met. The FNMC plan

shall be implemented when a license is

issued or modified to authorize the

activities being addressed in paragraph

(a) of this section, or by the date

specified in a license condition.

(c) * * *

(4) In each inventory period, control

total material control and accounting

measurement uncertainty so that twice

its standard error is less than the greater

of 9,000 grams of U–235 or 0.25 percent

of the active inventory, and assure that

any measurement performed under

contract is controlled so that the

licensee can satisfy this requirement;

* * * * *

Subpart D—Special Nuclear Material of

Moderate Strategic Significance

32. Sections 74.41, 74.43, and 74.45

are added to subpart D to read as

follows:

§ 74.41 Nuclear material control and

accounting for special nuclear material of

moderate strategic significance.

(a) General performance objectives.

Each licensee who is authorized to

possess special nuclear material (SNM)

of moderate strategic significance other

than as sealed sources and to use this

material at any site other than a nuclear

reactor licensed pursuant to part 50 of

this chapter, an irradiated fuel

reprocessing plant, or an operation

involved with waste disposal, shall

establish, implement, and maintain a

Commission-approved material control

and accounting (MC&A) system that will

achieve the following objectives:

(1) Maintain accurate, current, and

reliable information on, and confirm,

the quantities and locations of SNM in

the licensee’s possession;

(2) Conduct investigations and resolve

any anomalies indicating a possible loss

of special nuclear material;

(3) Permit rapid determination of

whether an actual loss of a significant

quantity of SNM has occurred, with

significant quantity being either:

(i) More than one formula kilogram of

strategic SNM; or

(ii) 10,000 grams or more of uranium235 contained in uranium enriched up

to 20.00 percent.

(4) Generate information to aid in the

investigation and recovery of missing

SNM in the event of an actual loss.

(b) Implementation schedule. Each

applicant for a license who would, upon

issuance of a license pursuant to any

part of this chapter, be subject to the

requirements of paragraph (a) of this

section shall:

(1) Submit a fundamental nuclear

material control (FNMC) plan describing

how the performance objectives of

§ 74.41(a) will be achieved, and how the

system capabilities required by

§ 74.41(c) will be met; and

(2) Implement the NRC approved plan

submitted pursuant to paragraph (b)(1)

of this section upon the Commission’s

issuance of a license or by the date

specified in a license condition.

(c) System capabilities. To achieve the

general performance objectives specified

in § 74.41(a), the MC&A system must

include the capabilities described in

§§ 74.43 and 74.45, and must

incorporate checks and balances that are

sufficient to detect falsification of data

and reports that could conceal diversion

of SNM by:

(1) A single individual, including an

employee in any position; or

(2) Collusion between two

individuals, one or both of whom have

authorized access to SNM.

§ 74.43 Internal controls, inventory, and

records.

(a) Licensees subject to § 74.41 shall

maintain the internal control, inventory,

and recordkeeping capabilities required

in paragraphs (b), (c), and (d) of this

section.

(b) Internal controls. (1) A

management structure shall be

established, documented, and

maintained that assures:

(i) Clear overall responsibility for

material control and accounting (MC&A)

functions;

(ii) Independence from production

and manufacturing responsibilities; and

(iii) Separation of key responsibilities.

(2) The overall planning,

coordination, and administration of the

MC&A functions for special nuclear

material (SNM) shall be vested in a

single individual at an organizational

level sufficient to assure independence

of action and objectiveness of decisions.

(3) The licensee shall provide for the

adequate review, approval, and use of

written MC&A procedures that are

identified in the approved FNMC plan

as being critical to the effectiveness of

the described system.

(4) The licensee shall assure that

personnel who work in key positions

where mistakes could degrade the

effectiveness of the MC&A system are

trained to maintain a high level of

safeguards awareness and are qualified

to perform their duties and/or

responsibilities.

(5) The licensee shall establish,

document, and maintain an item control

program that:

(i) Provides current knowledge of

SNM items with respect to identity,

element and isotope content, and stored

location; and

(ii) Assures that SNM items are stored

and handled, or subsequently measured,

Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules 29265

in a manner such that unauthorized

removal of 200 grams or more of

plutonium or uranium-233 or 300 grams

or more of uranium-235, as one or more

whole items and/or as SNM removed

from containers, will be detected.

(6) Exempted from the requirements

of paragraph (b)(5) of this section are

items that exist for less than 14 calendar

days and licensee-identified items each

containing less than 200 grams of

plutonium or uranium-233 or 300 grams

or more of uranium-235 up to a

cumulative total of one formula strategic

SNM or 17 kilograms of uranium-235

contained in uranium enriched to 10.00

percent or more but less than 20.00

percent in the uranium-235 isotope.

(7) Conduct and document shipperreceiver comparisons for all SNM

receipts, both on an individual batch

basis and a total shipment basis, and

ensure that any shipper-receiver

difference that is statistically significant

and exceeds twice the estimated

standard deviation ofthe difference

estimator and 200 grams of plutonium

or uranium-233 or 300 grams of

uranium-235 is investigated and

resolved; and

(8) Perform independent assessments

of the total MC&A system, at intervals

not to exceed 18 months, that assess the

performance of the system, review its

effectiveness, and document

management’s action on prior

assessment recommendations and

identified deficiencies. These

assessments must include a review and

evaluation of any contractor who

performs SNM accountability

measurements for the licensee.

(c) Inventory control and physical

inventories. The licensee shall:

(1) Provide unique identification for

each item on inventory and maintain

inventory records showing the identity,

location, and quantity of SNM for these

items;

(2) Document all transfers of SNM

between designated internal control

areas within the licensee’s site;

(3) Maintain and follow procedures

for tamper-safing of containers or vaults

containing SNM, if tamper-safe seals are

to be used for assuring the validity of

prior measurements, which include

control of access to, and distribution of,

unused seals and to records showing the

date and time of seal application;

(4) Maintain and follow procedures

for confirming the validity of prior

measurements associated with

unencapsulated and unsealed items on

ending inventory;

(5) Maintain and follow physical

inventory procedures to assure that:

(i) The quantity of SNM associated

with each item on ending inventory is

a measured value;

(ii) Each item on ending inventory is

listed and identified to assure that all

items are listed and no item listed more

than once;

(iii) Cutoff procedures for transfers

and processing are established so that

all quantities are inventoried and none

are inventoried more than once;

(iv) Cutoff procedures for records and

reports are established so that all

transfers for the inventory and material

balance interval, and no others, are

included in the records for the material

balance period in question;

(v) Upon completion of the physical

inventory, all book and inventory

records, for total plant and individual

internal control areas, are reconciled

with and adjusted to the results of the

physical inventory; and

(vi) Measurements will be performed

for element and isotope content on all

quantities of SNM not previously

measured.

(6) Conduct physical inventories

according to written instructions for

each physical inventory which:

(i) Assign inventory duties and

responsibilities;

(ii) Specify the extent to which each

internal control area and process is to be

shut down, cleaned out, and/or remain

static;

(iii) Identify the basis for accepting

previously made measurements and

their limits of error; and

(iv) Designate measurements to be

made for physical inventory purposes

and the procedures for making these

measurements.

(7) For each plant, conduct physical

inventories of all possessed SNM at

intervals not to exceed 9 calendar

months; and

(8) Within 60 calendar days after the

start of each physical inventory required

by paragraph (c)(7) of this section:

(i) Calculate, for the material balance

period terminated by the physical

inventory, the inventory difference (ID)

and its associated standard error of

inventory difference (SEID) for both

element and isotope;

(ii) Reconcile and adjust the book

record of quantity of element and

isotope content, as appropriate, to the

results of the physical inventory; and

(iii) Investigate and report to the

Director, Office of Nuclear Material

Safety and Safeguards, any occurrence

of SEID exceeding 0.125 percent of

active inventory, and any occurrence of

ID exceeding both three times SEID and

200 grams of plutonium or uranium-233

or 300 grams of uranium-235 contained

in high enriched uranium, or 9000

grams of uranium-235 contained in low

enriched uranium. The report will

include a statement of the probable

reasons for the excessive inventory

difference and the corrective actions

taken or planned.

(d) Recordkeeping. The licensee shall:

(1) Maintain records of the receipt,

shipment, disposal, and current

inventory associated with all possessed

SNM;

(2) Maintain records of the quantities

of SNM added to and removed from

process;

(3) Maintain records of all shipperreceiver evaluations associated with

SNM receipts;

(4) Retain each record pertaining to

receipt and disposal of SNM until the

Commission terminates the license; and

(5) Establish records that will

demonstrate that the performance

objectives of § 74.41(a)(1) through (4),

the system capabilities of paragraphs (b)

and (c) of this section and § 74.45(b) and

(c) have been met, and maintain these

records in an auditable form, available

for inspection, for at least 3 years,

unless a longer retention time is

specified by § 74.19(b) of this part, part

75 of this chapter, or by a specific

license condition.

§ 74.45 Measurements and measurement

control.

(a) Licensees subject to § 74.41 shall

establish and maintain the measurement

and measurement control capabilities

required by paragraphs (b) and (c) of

this section.

(b) Measurements. The licensee shall:

(1) Establish, maintain, and use a

program for the measurement of all

SNM received, produced, transferred

between internal control areas, on

inventory, or shipped, discarded, or

otherwise removed from inventory,

except for:

(i) Sealed sources that have been

determined by other means to contain

less than 10 grams of uranium-235,

uranium-233, or plutonium each;

(ii) Samples received, transferred

between internal control areas, or on

inventory that have been determined by

other means to contain less than 10

grams of uranium-235, uranium-233, or

plutonium each;

(iii) Receipt of sealed sources, of any

quantity, previously manufactured and

shipped by the licensee and which are

returned to the licensee, provided the

unique identity and encapsulation

integrity have not been compromised,

and the booked receipt quantity equals

the previously shipped quantity for the

involved sealed sources; and

(iv) Heterogeneous scrap that cannot

be accurately measured in its as

29266 Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules

received form, provided this scrap is

measured after dissolution within 18

months of receipt. The after dissolution

measurement must include

measurement of both the resulting

solution and any undissolved residues,

before any co-mingling with other scrap

solutions or residues.

(2) Maintain and follow a program for

the development and use of written

procedures that includes documented

review and approval of these

procedures, and any revisions thereof,

before use, for:

(i) Preparing or acquiring,

maintaining, storing, and using

reference standards;

(ii) Calibrating measurement systems,

performing bulk mass and volume

measurements, conducting

nondestructive assay measurements,

obtaining samples, and performing

laboratory analyses for element

concentration and isotope abundance;

and

(iii) Recording, reviewing, and

reporting measurements.

(c) Measurement control. To maintain

measurement quality and to estimate

measurement uncertainty values, the

licensee shall:

(1) Assign responsibility for planning,

developing, coordinating, and

administering a measurement control

program to an individual who has no

direct responsibility for performing

measurements or for SNM processing or

handling, and who holds a position at

an organizational level which permits

independence of action and has

adequate authority to obtain all the

information required to monitor and

evaluate measurement quality as

required by this section.

(2) Ensure that any contractor who

performs MC&A measurements services

conforms with applicable requirements

in paragraphs (c)(5), (6), (7), (10) and

(11) of this section. Conformance must

include reporting by the contractor of

sufficient measurement control data to

allow the licensee to calculate bias

corrections and measurement limits of

error.

(3) Ensure that potential sources of

sampling error are identified and that

samples are representative by

performing process sampling tests using

well characterized materials to establish

or verify the applicability of utilized

procedures for sampling SNM and for

maintaining sample integrity during

transport and storage. These sampling

tests or sample integrity tests, as

appropriate, shall be conducted

whenever:

(i) A new sampling procedure or

technique is used, or new sampling

equipment is installed;

(ii) A sampling procedure, technique,

or sampling equipment is modified to

the extent that a systematic sampling

error could be introduced; and

(iii) Sample containers, sample

transport methods, or sample storage

conditions are changed or modified to

the extent that a systematic sampling

error could be introduced.

(4) Establish and maintain a

measurement control program so that

for each inventory period the SEID is

less than 0.125 percent of the active

inventory, and assure that any MC&A

measurements performed under contract

are controlled so that the licensee can

satisfy this requirement.

(5) Generate current data on the

performance of each measurement

system used during each material

balance period for the establishment of

measured values and estimated

measurement uncertainties, including

estimates of bias, variance components

for calibration, sampling, and repeat

measurements. The program data must

reflect the current process and

measurement conditions existing at the

time the control measurements are

made.

(6) Use standards on an ongoing basis

for the calibration and control of all

measurement systems used for SNM

accountability. Calibrations shall be

repeated whenever any significant

change occurs in a measurement system

or when program data indicate a need

for recalibration. Calibrations and

control standard measurements shall be

based on standards whose assigned

values are traceable to certified

reference standards or certified standard

reference materials. Additionally,

control standards shall be representative

of the process material or items being

measured by the measurement system in

question.

(7) Conduct control measurements to

provide current data for the

determination of random error behavior.

On a predetermined schedule, the

program shall include, as appropriate:

(i) Replicate analyses of individual

samples;

(ii) Analysis of replicate process

samples;

(iii) Replicate volume measurements

of bulk process batches;

(iv) Replicate weight measurements of

process items and bulk batches, or

alternatively, the use of data generated

from the replicate weighings of control

standard weights as derived from the

control standard program; and

(v) Replicate NDA measurements of

individual process containers (items), or

alternatively, the use of data generated

from the replicate measurements of

NDA control standards as derived from

the control standard program.

(8) Use all measurements and

measurement controls generated during

the current material balance period for

the estimation of the SEID.

(9) Evaluate with appropriate

statistical methods all measurement

system data generated in paragraph

(c)(5) of this section to determine

significant contributors to the

measurement uncertainties associated

with inventory differences and shipperreceiver differences, so that if SEID

exceeds the limits established in

paragraph (c)(4) of this section, the

cause of the excessive SEID can be

identified for corrective action with

respect to controlling the standard error

within applicable limits.

(10) Establish and maintain a

statistical control system, including

control charts and formal statistical

procedures, designed to monitor the

quality of each measurement device or

system. Control chart limits must be

established to be equivalent to levels of

significance of 0.05 and 0.001.

(11) Promptly investigate and take any

appropriate corrective action whenever

a control datum exceeds an 0.05 control

limit, and whenever a control datum

exceeds an 0.001 control limit, the

measurement system that generated the

datum shall immediately be placed outof-service with respect to MC&A

measurements until the deficiency has

been corrected and the system brought

into control within the 0.05 control

limits.

33. In § 74.51, paragraphs (c) and (d)

are revised to read as follows:

§ 74.51 Nuclear material control and

accounting for strategic special nuclear

material.

* * * * *

(c) Implementation dates. Each

applicant for a license, and each

licensee that, upon application for

modification of a license, would become

newly subject to paragraph (a) of this

section, shall submit a fundamental

nuclear material control (FNMC) plan

describing how the MC&A system shall

satisfy the requirement of paragraph (b)

of this section. The FNMC plan shall be

implemented when a license is issued

or modified to authorize the activities

being addressed in paragraph (a) of this

section, or by the date specified in a

license condition.

(d) Notwithstanding § 74.59(f)(1),

licensees shall perform at least three

bimonthly physical inventories after

implementation of the NRC approved

FNMC Plan and shall continue to

perform bimonthly inventories until

performance acceptable to the NRC has

Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules 29267

been demonstrated and the Commission

has issued formal approval to perform

semiannual inventories. Licensees who

have prior experience with process

monitoring and/or can demonstrate

acceptable performance against all Plan

commitments may request authorization

to perform semiannual inventories at an

earlier date.

34. In § 74.57, the introductory text of

paragraph (c) and paragraph (f)(2) are

revised to read as follows:

§ 74.57 Alarm resolution.

* * * * *

(c) Each licensee shall notify the NRC

Operations Center by telephone of any

MC&A alarm that remains unresolved

beyond the time period specified for its

resolution in the licensee’s fundamental

nuclear material control plan.

Notification must occur within 24

hours. The licensee may consider an

alarm to be resolved if:

* * * * *

(f) * * *

(2) Within 24 hours, the licensee shall

notify the NRC Operations Center by

telephone that an MC&A alarm

resolution procedure has been initiated.

35. In § 74.59, paragraphs

(d)(1),(f)(1)(i) and (iii), and (h)(2)(ii) are

revised to read as follows:

§ 74.59 Quality assurance and accounting

requirements.

* * * * *

(d) * * *

(1) Substantiate the plutonium

element and uranium element and

isotope content of all SSNM received,

produced, transferred between areas of

custodial responsibility, on inventory,

or shipped, discarded, or otherwise

removed from inventory;

* * * * *

(f) * * *

(1) * * *

(i) Calculate the inventory difference

(ID); estimate the standard error of the

inventory difference (SEID); and

investigate and report any SEID estimate

of 0.1 percent or more of active

inventory, and any ID that exceeds both

three times SEID and 200 grams of

plutonium or uranium-233, or 300

grams of uranium-235 contained in high

enriched uranium.

* * * * *

(iii) Investigate and report to the

Director, Office of Nuclear Material

Safety and Safeguards, any difference

that exceeds three times the standard

deviation determined from the

sequential analysis;

* * * * *

(h) * * *

(2) * * *

(ii) Any scrap measured with a

standard deviation greater than five

percent of the measured amount is

recovered so that the results are

segregated by inventory period and

recovered within six months of the end

of the inventory period in which the

scrap was generated except where it can

be demonstrated that the scrap

measurement uncertainty will not cause

noncompliance with paragraph (e)(5) of

this section.

* * * * *

PART 75—SAFEGUARDS ON

NUCLEAR MATERIAL—

IMPLEMENTATION OF US/IAEA

AGREEMENT

36. The authority citation for Part 75

continues to read as follows:

Authority: Secs. 53, 63, 103, 104, 122, 161,

68 Stat. 930, 932, 936, 937, 939, 948, as

amended (42 U.S.C. 2073, 2093, 2133, 2134,

2152, 2201); sec. 201, 88 Stat. 1242, as

amended (42 U.S.C. 5841).

Section 75.4 also issued under secs. 135,

141, Pub. L. 97—425, 96 Stat. 2232, 2241 (42

U.S.C. 10155, 10161).

37. In § 75.21, paragraph (c)(2) is

revised to read as follows:

§ 75.21 General requirements.

* * * * *

(c) * * *

(2) Until installation information has

been submitted by the licensee, the

procedures shall be sufficient to

document changes in the quantity of

nuclear material in or at its installation.

Observance of the procedures described

in §§ 40.61 or 74.15 of this chapter (or

the corresponding provisions of the

regulations of an Agreement State) by

any licensee subject thereto shall

constitute compliance with this

paragraph.

* * * * *

PART 76—CERTIFICATION OF

GASEOUS DIFFUSION PLANTS

38. The authority citation for Part 76

continues to read as follows:

Authority: Secs. 161, 68 Stat. 948, as

amended, secs. 1312, 1701, as amended, 106

Stat. 2932, 2951, 2952, 2953, 110 Stat. 1321–

349 (42 U.S.C. 2201, 2297b–11, 2297f); secs.

201, as amended, 204, 206, 88 Stat. 1244,

1245, 1246 (42 U.S.C. 5841, 5842, 5845,

5846). Sec. 234(a), 83 Stat. 444, as amended

by Pub. L. 104–134, 110 Stat. 1321, 1321–349

(42 U.S.C. 2243(a)).

Sec. 76.7 also issued under Pub. L. 95–601,

sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Sec.

76.22 is also issued under sec. 193(f), as

amended, 104 Stat. 2835, as amended by Pub.

L. 104–134, 110 Stat. 1321, 1321–349 (42

U.S.C. 2243(f)). Sec. 76.35(j) also issued

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

39. In § 76.113, paragraph (a) is

revised to read as follows:

§ 76.113 Formula quantities of strategic

special nuclear material—Category I.

(a) The requirements for material

control and accounting for formula

quantities of strategic special nuclear

material (Category I) are contained in

§§ 74.11, 74.13, 74.15, 74.17, 74.19,

74.51, 74.53, 74.55, 74.57, 74.59, 74.81,

and 74.82 of this chapter.

* * * * *

40. In § 76.115, paragraph (a) is

revised to read as follows:

§ 76.115 Special nuclear material of

moderate strategic significance—Category

II.

(a) The requirements for material

control and accounting for special

nuclear material of moderate strategic

significance (Category II) are contained

in §§ 74.11. 74.13, 74.15, 74.17, 74.19,

74.41, 74.43, 74.45, 74.81, and 74.82 of

this chapter.

* * * * *

41. In § 76.117, paragraph (a) is

revised to read as follows:

§ 76.117 Special nuclear material of low

strategic significance—Category III.

(a) The requirements for material

control and accounting for special

nuclear material of low strategic

significance (Category III) are contained

in §§ 74.11, 74.13, 74.15, 74.17, 74.19,

74.33, 74.81, and 74.82 of this chapter.

However, inventories of uranium

outside of the enrichment processing

equipment conducted at least every 370

days are deemed to satisfy the

requirements of § 74.19(c).

* * * * *

PART 150—EXEMPTIONS AND

CONTINUED REGULATORY

AUTHORITY IN AGREEMENT STATES

AND IN OFFSHORE WATERS UNDER

SECTION 274

42. The authority citation for Part 150

continues to read as follows:

Authority: Sec. 161, 68 Stat. 948, as

amended, sec. 274, 73 Stat. 688 (42 U.S.C.

2201, 2021); sec. 201, 88 Stat. 1242, as

amended (42 U.S.C. 5841).

Sections 150.3, 150.15, 150.15a, 150.31,

150.32 also issued under secs. 11e(2), 81, 68

Stat. 923, 935, as amended, secs. 83, 84, 92

Stat. 3033, 3039 (42 U.S.C. 2014e(2), 2111,

2113, 2114). Section 150.14 also issued under

sec. 53, 68 Stat. 930, as amended (42 U.S.C.

2073). Section 150.15 also issued under secs.

135, 141, Pub. L. 97—425, 96 Stat. 2232, 2241

(42 U.S.C. 10155, 10161). Section 150.17a

also issued under sec. 122, 68 Stat. 939 (42

U.S.C. 2152). Section 150.30 also issued

under sec. 234, 83 Stat. 444 (42 U.S.C. 2282).

29268 Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / Proposed Rules

43. In § 150.20, the introductory text

of paragraph (b) is revised to read as

follows:

§ 150.20 Recognition of Agreement State

licenses.

* * * * *

(b) Notwithstanding any provision to

the contrary in any specific license

issued by an Agreement State to a

person engaging in activities in a nonAgreement State, in an area of exclusive

Federal jurisdiction within an

Agreement State, or in offshore waters

under the general licenses provided in

this section, the general licenses

provided in this section are subject to

all the provisions of the Act, now or

hereafter in effect, and to all applicable

rules, regulations, and orders of the

Commission including the provisions of

§§ 30.7 (a) through (f), 30.9, 30.10,

30.14(d), 30.34, 30.41, and 30.51 to

30.63, inclusive, of part 30 of this

chapter; §§ 40.7 (a) through (f), 40.9,

40.10, 40.41, 40.51, 40.61, 40.63

inclusive, 40.71 and 40.81 of part 40 of

this chapter; §§ 70.7 (a) through (f), 70.9,

70.10, 70.32, 70.42, 70.52, 70.55, 70.56,

70.60 to 70.62 of part 70 of this chapter;

§§ 74.11, 74.15, and 74.19 of part 74 of

this chapter; and to the provisions of 10

CFR parts 19, 20 and 71 and subparts C

through H of part 34, §§ 39.15 and 39.31

through 39.77, inclusive, of part 39 of

this chapter. In addition, any person

engaging in activities in non-Agreement

States, in areas of exclusive Federal

jurisdiction within Agreement States, or

in offshore waters under the general

licenses provided in this section:

* * * * *

Dated at Rockville, Maryland, this 23rd day

of May, 2001.

For the Nuclear Regulatory Commission.

Annette Vietti-Cook,

Secretary of the Commission.

[FR Doc. 01–13490 Filed 5–29–01; 8:45 am]

BILLING CODE 7590–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 2000–CE–36–AD]

RIN 2120–AA64

Airworthiness Directives; Fairchild

Aircraft, Inc. SA26, SA226, and SA227

Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes to

adopt a new airworthiness directive

(AD) that would apply to certain

Fairchild Aircraft, Inc. (Fairchild

Aircraft) SA26, SA226, and SA227

series airplanes. The proposedAD

would require you to modify the

negative torque sensing test system to

allow the igniters to automatically turn

when an engine senses low torque. The

proposed AD is the result of two

instances of a dual engine flameout on

the affected airplanes. The actions

specified by the proposed AD are

intended to prevent a dual engine

flameout on the affected airplanes by

providing a system that automatically

turns on the engine igniters when low

torque is sensed.A dual engine flameout

could result in failure of both engines

with consequent loss of control of the

airplane.

DATES: The Federal Aviation

Administration (FAA) must receive any

comments on this rule on or before July

27, 2001.

ADDRESSES: Submit comments in

triplicate to FAA,Central Region, Office

of the Regional Counsel,Attention: Rules

Docket No. 2000–CE–36–AD, 901

Locust,Room 506, Kansas City, Missouri

64106. Comments may be inspected at

this location between 8 a.m. and 4

p.m.,Monday through Friday, holidays

excepted.

Service information that applies to the

proposedAD may be obtained from

Fairchild Aircraft, Inc., P.O.Box 790490,

San Antonio, Texas 78279–0490;

telephone:(210) 824–9421; facsimile:

(210) 820–8609. This information also

may be examined at the Rules Docket at

the address above.

FOR FURTHER INFORMATION CONTACT:

Ingrid Knox,Aerospace Engineer, FAA,

Airplane Certification Office,2601

Meacham Boulevard, Fort Worth, Texas

76193–0150; telephone: (817) 222–5139;

facsimile: (817) 222–5960.

SUPPLEMENTARY INFORMATION:

Comments Invited

How do I comment on the proposed

AD? The FAA invites comments on this

proposed rule. You may submit

whatever written data, views, or

arguments you choose. You need to

include the rule’s docket number and

submit your comments in triplicate to

the address specified under the caption

ADDRESSES. The FAA will consider all

comments received on or before the

closing date. We may amend the

proposed rule in light of comments

received. Factual information that

supports your ideas and suggestions is

extremely helpful in evaluating the

effectiveness of the proposed AD action

and determining whether we need to

take additional rulemaking action.

Are there any specific portions of the

proposed AD I should pay attention to?

The FAA specifically invites comments

on the overall regulatory, economic,

environmental, and energy aspects of

the proposed rule that might suggest a

need to modify the rule. You may

examine all comments we receive before

and after the closing date of the rule in

the Rules Docket. We will file a report

in the Rules Docket that summarizes

each FAA contact with the public that

concerns the substantive parts of the

proposed AD.

We are re-examining the writing style

we currently use in regulatory

documents, in response to the

Presidential memorandum of June 1,

1998. That memorandum requires

federal agencies to communicate more

clearly with the public. We are

interested in your comments on whether

the style of this document is clear, and

any other suggestions you might have to

improve the clarity of FAA

communications that affect you. You

can get more information about the

Presidential memorandum and the plain

language initiative at http://

www.plainlanguage.gov.

How can I be sure FAA receives my

comment? If you want us to

acknowledge the receipt of your

comments, you must include a selfaddressed, stamped postcard. On the

postcard, write ‘‘Comments to Docket

No. 2000–CE–36–AD.’’ We will date

stamp and mail the postcard back to

you.

Discussion

What events have caused this

proposed AD? Several occurrences of

dual-engine flameout on aircraft have

prompted FAA to examine the service

history of certain type-certificated

airplanes. Among those examined were

the Fairchild Aircraft SA26, SA226, and

SA227 series airplanes.

Our analysis reveals the following:

—Two incidents of dual-engine

flameout on Fairchild Aircraft SA227

series airplanes; and

—The incidents are unique to the

specific airplane configuration and

not the generic engine installation.

What are the consequences if the

condition is not corrected? A dual

engine flameout could result in failure

of both engines with consequent loss of

control of the airplane.

Relevant Service Information

Is there service information that

applies to this subject? Fairchild

Aircraft has issued the following service

bulletins: