[Federal Register Volume 67, Number 194 (Monday, October 7, 2002)]
[Proposed Rules]
[Pages 62403-62410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-25243]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 67, No. 194 / Monday, October 7, 2002 /
Proposed Rules
[[Page 62403]]
NUCLEAR REGULATORY COMMISSION
10 CFR Parts 30, 40, and 70
RIN 3150-AG85
Financial Assurance Amendments for Materials Licensees
AGENCY: Nuclear Regulatory Commission.
ACTION: Proposed rule.
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SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend
its regulations for financial assurance for certain materials licensees
to bring the amount of financial assurance required more in line with
current decommissioning costs. The objective of this proposed action is
to maintain adequate financial assurance so that timely decommissioning
can be carried out following shutdown of a licensed facility.
DATES: The comment period expires December 23, 2002. 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
Web site (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
[email protected].
Certain documents related to this rulemaking, including comments
received, may be examined at the NRC Public Document Room, Room O-1F23,
11555 Rockville Pike, Rockville, MD. These same documents may also be
viewed and downloaded electronically via the rulemaking website.
The NRC maintains an Agencywide Document Access and Management
System (ADAMS), which provides text and image files of NRC's public
documents. These documents may be accessed through the NRC's Public
Electronic Reading Room on the Internet at http://www.nrc.gov/reading-rm/adams.html. If you do not have access to ADAMS or if there are
problems in accessing the documents located in ADAMS, contact the NRC
Public Document Room (PDR) Reference staff at 1-800-397-4209, 301-415-
4737, or by e-mail to [email protected].
FOR FURTHER INFORMATION CONTACT: Clark Prichard, Office of Nuclear
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission,
Washington, DC 20555-0001, telephone (301) 415-6203 e-mail,
[email protected].
SUPPLEMENTARY INFORMATION:
Background
The NRC regulations requiring financial assurance for
decommissioning are designed to ensure that adequate funding will be
available for timely decommissioning by licensees following shutdown of
normal operations. The financial assurance regulations are part of the
overall NRC strategy to maintain safety and protection of the public
and the environment during and after decommissioning and
decontamination of nuclear facilities.
Financial assurance is composed of several parts: (1) Licensees for
which financial assurance should be required must be identified; (2)
the amount of financial assurance required for each licensee must be
adequate to fund current decommissioning costs; and (3) appropriate
financial assurance mechanisms (surety bonds, escrow accounts, parent
or self-guarantee, etc.) must be required. The objective of this
rulemaking is to maintain adequate financial assurance by addressing
gaps in the current regulatory framework regarding (1) and (2) above.
Under current decommissioning regulations, materials licensees
using substantial quantities of nuclear materials must provide
financial assurance for decommissioning (most materials licensees do
not need to provide financial assurance because their possession limits
are below the threshold for requiring financial assurance). NRC has
approximately 4900 materials licensees of which approximately 10
percent require financial assurance. The financial assurance
requirements were established in 1988 as part of the decommissioning
rulemaking (53 FR 24018; June 27, 1988). Revision to some of the
financial assurance requirements for materials licensees are needed
because there have been changes in decommissioning costs since that
time. Also, experience has revealed that for certain types of
licensees, such as waste brokers, special circumstances exist that
require different financial assurance considerations.
Discussion
This proposed rule would maintain assurance of adequate funding for
timely decommissioning. The current financial assurance regulations do
not provide adequate coverage of potential decommissioning costs for
certain types of materials licensees, mainly due to large increases in
decommissioning costs since the financial assurance regulations were
put in place. Allowing these financial assurance coverage shortfalls to
remain could increase the likelihood of inadequate funding for timely
decommissioning.
Inadequate/untimely funding of decommissioning could have adverse
impacts on public health and safety, and protection of the environment.
If a site is not decommissioned due to insufficient funds, there is an
increased likelihood of contamination and/or exposure of members of the
public. The changes to the regulations proposed here are focused on
areas where the likelihood of inadequate funding relative to
decommissioning costs is high. The proposed changes address situations
where currently required amounts of financial assurance appear to be
substantially less than decommissioning costs. The proposed changes
would provide approximately $80 million in additional financial
assurance.\1\
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\1\ Staff estimate based on numbers of licensees using each of
the 3 certification amounts.
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These proposed amendments were developed prior to recent heightened
concerns about security of nuclear material. Because the objective of
the
[[Page 62404]]
amendments is timely decommissioning of nuclear facilities with
appropriate disposal of radioactive materials, these amendments should
also enhance security of nuclear materials.
Failure to provide adequate financial assurance for decommissioning
also has equity considerations. The potential costs to the public when
it is required to cover the expense of cleanup of contaminated
facilities where financial assurance is inadequate, must be considered.
Equity considerations call for adequate financial assurance so that a
licensee's decommissioning costs are borne by that licensee, not the
Federal, State, or local government.
The NRC has completed studies of financial assurance requirements
for materials licensees. The studies were carried out by ICF, Inc., a
contractor with extensive experience in financial assurance. The
studies, ``Assessment of the Financial Assurance Requirements for Waste
Broker Material Licensees,'' ICF, Inc., July 1999, and ``Analysis of
Decommissioning Certification Amounts for Materials Licensees--Parts
30, 40, and 70,'' ICF Consulting, December 2000, provide information
that was used to develop this proposed rulemaking.\2\ In addition,
Pacific Northwest National Laboratory (PNNL), which has extensive
experience in analyzing decommissioning costs, has completed several
reports on current decommissioning costs for various types of nuclear
facilities. The PNNL reports, Revised Analysis of Decommissioning
Reference Non-Fuel Cycle Facilities, draft NUREG/CR-6477, PNNL, 1996,
and Technology, Safety, and Costs of Decommissioning a Reference Large
Irradiator and Reference Sealed Sources, NUREG/CR-6280, PNNL, January
1996, also form a basis for this proposed rule.\3\
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\2\ These documents are available on NRC's interactive
rulemaking Web site http://ruleforum.llnl.gov.
\3\ These documents are available on NRC's interactive
rulemaking Web site http://ruleforum.llnl.gov.
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Proposed Changes
The changes being proposed are in four areas:
(1) Large sealed source licensees--large irradiators--would no
longer be able to use the $75,000 certification amount as a basis for
financial assurance, and would have to base their financial assurance
on a site-specific decommissioning cost estimate;
(2) All waste broker licensees would have to provide financial
assurance, would not be permitted to use the certification amounts, and
would have to base their financial assurance on a site-specific
decommissioning cost estimate;
(3) The certification amounts for licensees would be increased by
50 percent; and
(4) Decommissioning cost estimates would have to be updated at
least every 3 years.
Large Irradiators
Large irradiator licensees engage in the industrial irradiation of
material primarily for purposes of sterilization (e.g., food products
and medical equipment). These large irradiators operate facilities that
have a large number of sealed sources, with possession limits of
several million curies. The NRC has approximately 10 irradiator
licensees authorized for possession of 1 million curies or more. Under
present financial assurance requirements, these licensees may use the
$75,000 certification amount as a basis for financial assurance.
Although this licensed radioactive material is all in the form of
sealed sources, estimated current decommissioning costs for this type
of facility, such as for source removal, shipping, and supplier
handling charges, greatly exceed the $75,000 certification amount that
they may use.
PNNL's study of large irradiator decommissioning costs, Technology,
Safety, and Costs of Decommissioning a Reference Large Irradiator and
Reference Sealed Sources, NUREG/CR-6280, PNNL, January 1996, provides
estimates of decommissioning costs under a number of scenarios.
Estimated decommissioning costs for an irradiator facility with 1
million curies of source activity are at least $128,000; for a facility
with 2 million curies, estimated costs are at least $231,000. These
cost estimates are for the least costly decommissioning scenarios, with
all sources being returned to the supplier and no leakage of
contamination.
The NRC is proposing to put an upper limit on the size of a sealed
source licensee able to continue to use the $75,000 certification
amount. This proposed change would require a sealed source licensee
with possession limits of over 1 million curies of Co-60, the
radioactive material generally used by large irradiators, to base
financial assurance on a decommissioning cost estimate. This facility-
specific cost estimate is likely to be higher than $75,000, and the
licensee would incur higher financial assurance costs. However, the
facility-specific cost estimate should provide a more accurate estimate
of decommissioning costs.
Waste Brokers
Waste broker licensees handle radioactive waste associated with or
generated by other licensees and non-licensed entities. There is no
definition of ``waste broker'' in existing NRC regulations and the term
is commonly used to describe several different activities. These
amendments would add a definition of ``waste broker'' to cover
licensees that accept radioactive material for the purpose of
processing, compacting, repackaging, or otherwise preparing it for
disposal, or for storage. The NRC has approximately 15 waste broker
licensees, of which eight require financial assurance under current
regulations.\4\ Many waste broker licensees also conduct other types of
licensed activities as part of their overall business. The NRC
financial assurance regulations treat waste brokers in the same way as
other materials licensees; there are no special financial assurance
requirements applicable only to waste brokers.
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\4\ ``Assessment of the Financial Assurance Requirements for
Waste Broker Material Licensees,'' ICF Consulting, 1999, p. 6.
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The NRC has conducted an analysis of the adequacy of financial
assurance requirements for waste brokers. The ICF report, ``Assessment
of the Financial Assurance Requirements for Waste Broker Material
Licensees,'' ICF, Inc., July 1999, concludes that waste brokers engage
in fundamentally different types of activities than other materials
licensees, and require treatment appropriate to these activities.
From the viewpoint of financial assurance, waste broker activities
are unique in that: (1) Waste brokers are likely to have radioactive
wastes generated by other licensees, and the inventory of waste a
broker will have onsite at any time may fluctuate considerably and be
difficult to predict; and (2) waste brokers have a financial interest
in maximizing the amount of radioactive waste that they handle--waste
broker revenues are directly correlated to the amount of waste
accepted.
The disposal costs of waste inventories are very high--much greater
than when the decommissioning regulations were promulgated. The current
financial assurance regulations do not consider the costs of disposing
of significant volumes of waste generated outside the decommissioning
process, such as inventories of brokered waste. Waste brokers may
currently maintain a level of financial assurance that is inadequate
for disposal of waste inventories. Charges for disposal of waste at
low-level waste disposal
[[Page 62405]]
facilities are based on the volume of waste disposed and also on the
level of activity (e.g., quantity of curies) of the waste. The
possession limits that determine what level of financial assurance a
waste broker licensee must have are based on the quantity of curies of
material possessed, not volume of material possessed. A waste broker
that must dispose of large volumes of relatively low activity waste
would be subject to substantial waste disposal charges. That same waste
broker might have an inadequate amount of financial assurance to pay
these charges because the financial assurance requirements are based
only on curie level.
The 1988 financial assurance regulations made no special provision
for waste brokers. However, it is now clear that the activities of a
waste broker licensee have very different implications for
decommissioning costs than is the case for other types of materials
licensees. For example, a laboratory using radioactive materials in
making products will have a licensed possession limit based on the
amount of radioactive materials in use at the facility. Most of the
inventory of radioactive material will pass out of the licensee's
possession as products are sold and shipped to users. Even in the case
of bankruptcy and abrupt shutdown of operations, the product of the
laboratory can most likely be sold or transferred. Decommissioning
activities will consist of decontamination of the facility and some
limited waste disposal. On the other hand, a waste broker having
similar possession limits has limited options to reduce its inventory
of radioactive material (waste) usually by disposal at a radioactive
waste disposal facility. Thus, decommissioning costs can be
substantially higher for a waste broker than for another type of
licensee with similar possession limits.
The NRC is proposing that all waste broker licensees be required to
have financial assurance, and to base financial assurance on a
facility-specific decommissioning cost estimate that takes into account
other factors such as actual volume of material in addition to
possession limits in curies.
Certification Amounts
The amount of financial assurance that must be provided can be
based on either: (1) A facility-specific decommissioning cost estimate
provided by the licensee in a decommissioning funding plan;\5\ or (2),
one of several dollar amounts (certification amounts) specified in the
regulations. The certification amounts are based on possession limits,
and range from $75,000 for sealed source licensees to $750,000 for
licensees possessing large quantities of unsealed material. At present,
about 60 percent of materials licensees required to have financial
assurance use the certification amounts. Which certification amount is
required of a licensee depends on the possession limits for radioactive
materials applicable to that license.
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\5\ For some types of licensees using very large amounts of
unsealed radioactive material, a facility-specific cost estimate
must be used.
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The present certification amounts are based on decommissioning cost
estimates that are now approximately 15 years old. When the
decommissioning rule was established, it was expected that periodic
adjustments to the certification amounts would be needed as
decommissioning costs changed over time. NRC has reviewed current
decommissioning cost information and is proposing adjustments to the
certification amounts. General inflation since 1988, as measured by the
Gross Domestic Product price deflator (price index), has resulted in
current prices that are approximately 40 percent higher than they were
when the final decommissioning rule was published.\6\ Specific
information on decommissioning costs also shows a substantial increase.
NRC regulations for decommissioning of nuclear power reactor licensees
at 10 CFR 50.75 contain a cost adjustment factor for licensees to
update the minimum amount of financial assurance required. This
adjustment factor, which takes into account labor, energy, and waste
disposal costs, shows a minimum increase of approximately 65 percent in
reactor decommissioning costs from 1986 to 2000.\7\ A major factor
underlying the increase is waste disposal charges, which have gone up
by at least 120 percent during this period. The increase is much
greater in certain geographic areas--disposal costs vary considerably
according to disposal site.\8\
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\6\ National Income and Product Accounts Tables, Bureau of
Economic Analysis, U.S. Department of Commerce.
\7\ Report on Waste Burial Charges, NUREG-1307, Revision 9, U.S.
Nuclear Regulatory Commission, 2000, p.6. Copies of NUREG-1307,
Revision 9 are available for inspection or copying for a fee from
the NRC Public Document Room at O-1F23, 11555 Rockville Pike,
Rockville, MD. Copies may be purchased at current rates from the
U.S. Government Printing Office, P.O. Box 370892, Washington, DC
20402-9328 (telephone (202 )512-2249); or from the National
Technical Information Service by writing NTIS at 5285 Port Royal
Road, Springfield, VA 22161.
\8\ NUREG-1307, Revision 9, p. 6.
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A study by PNNL for NRC on costs of decommissioning for six
different types of reference non-fuel cycle nuclear materials licensees
concludes that decommissioning costs increased by 34-66 percent between
1986 and 1996.\9\ An ICF study found that estimates of decommissioning
costs for a majority of a sample of Part 30 licensees using
certification amounts exceed the applicable certification amount by a
substantial margin.\10\
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\9\``Revised Analysis of Decommissioning Reference Non-Fuel
Cycle Facilities, draft NUREG/CR-6477, Pacific Northwest National
Laboratories, 1996, p. iv.
\10\ ``Analysis of Decommissioning Certification Amounts for
Materials Licensees (Parts 30, 40, and 70),'' ICF Consulting, 2000,
p. 36.
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The NRC is proposing to raise all certification amounts by 50
percent. The proposed certification amounts would be $113K for sealed
source licensees, and $225K and $1,125K for licensees using unsealed
sources. The revisions to the certification amounts proposed in this
notice are aimed at keeping the certification amounts reasonably in
accordance with current decommissioning costs for a typical licensee
that has possession limits that allow it to use that particular
certification amount.
The certification amounts were never intended to be an exact
measure of decommissioning costs for all licensees. The universe of
materials licensees required to have financial assurance is composed of
very diverse types of operations. Actual decommissioning costs vary
considerably, depending on extent and type of activities, and
quantities and types of radionuclides in use. The NRC recognizes that
the applicable certification amounts for any one particular licensee
may be greater than the amount required to decommission that licensee's
facility. In these cases, the NRC encourages a licensee to submit a
facility specific decommissioning cost estimate as a basis for
financial assurance.
The certification amounts are designed to provide qualifying
licensees a method for establishing a basis for the amount of financial
assurance needed without devoting the resources needed to develop
detailed decommissioning cost estimates. The NRC believes that the
certification amounts serve a useful purpose by allowing certain
licensees using relatively small quantities of radioactive materials to
establish financial assurance in a simple, cost-effective way. At issue
is the assurance of timely funding of decommissioning and the cost
burden on licensees of providing this assurance. In comparing the
relative merits of using a facility-specific decommissioning cost
estimate or a certification amount, the tradeoff
[[Page 62406]]
involved is the benefit of having the amount of financial assurance
required more closely track actual decommissioning costs against the
additional expense of developing a decommissioning cost estimate. The
NRC would also require more resources for review of a financial
assurance submission based on a decommissioning cost estimate than for
review of a submission based on a certification amount.
Requirement for Updating Decommissioning Cost Estimates
The existing financial assurance regulations do not contain a
specific requirement for updating cost estimates in decommissioning
funding plans after a certain number of years. Existing regulatory
language only refers to ``adjusting cost estimates and associated
funding levels periodically over the life of the facility.'' The NRC
believes that a more specific requirement is warranted and is proposing
to require updated decommissioning cost estimates at least every 3
years. Decommissioning costs, especially waste disposal costs, can
change significantly over a relatively short time period. For example,
the decommissioning cost estimate for a large materials licensee
increased from approximately $40 million in 2001 to over $67 million in
2002. Even requiring updates at least every 3 years would not
completely address this problem. However, by requiring an update of
decommissioning cost estimates at least every 3 years, the NRC is
attempting to prevent a large gap between actual decommissioning costs
and licensee decommissioning cost estimates from developing. This
proposed change is intended to assure adequate financial coverage of
actual decommissioning costs.
Cost Impacts on Licensees
The proposed requirements would have significant cost impacts for
large irradiators, waste brokers, and licensees that use the
certification amounts. The NRC has only a small number of large
irradiators and waste brokers, but approximately 300 NRC materials
licensees use the certification amounts. The NRC estimates that
additional annual costs of providing financial assurance for all
affected licensees would be approximately $1.2 million. Most of this
would be attributable to the increase in the certification amounts. In
addition, one-time costs of approximately $60K-$250K would result from
additional licensees having to prepare decommissioning cost estimates.
Also, licensees that base financial assurance on a decommissioning cost
estimate would incur the additional costs of having to prepare more
frequent decommissioning cost updates to comply with the proposed
requirement for updated cost estimates every 3 years. More detailed
information on cost impacts is contained in the Regulatory Analysis
cited in this notice. The NRC seeks comments from stakeholders on its
analysis of the estimated benefits and costs for each class of
licensee.
As stated previously, the benefit of the proposed rulemaking is the
assurance of adequate funding for timely decommissioning. Updates are
needed in the current financial assurance regulations that would
decrease the likelihood of inadequate funding for timely
decommissioning. The effect of inadequate/untimely funding of
decommissioning may have adverse impacts on public health and safety.
If a site is not decommissioned due to insufficient funds, there is an
increased likelihood of contamination and/or exposure of members of the
public. In addition, adequate financial assurance would prevent
situations where Federal, State, or local governments bear the cost of
decommissioning, rather than site operators. This proposed action would
require licensees to provide an additional approximately $80 million in
financial assurance coverage.
Implementation
The NRC plans to implement these requirements, if finalized, in a
way that minimizes the burden on licensees and regulators. Licensees
would be given a reasonable period of time to submit new
decommissioning cost estimates and to obtain any additional financial
assurance that may be required. The NRC is considering establishing
different effective dates for revised financial assurance requirements,
depending on the type of licensee, so that new financial assurance
submittals would not all be filed at one time. For example, licensees
currently using the $750K certification amount would be required to
obtain additional financial assurance to comply with the proposed
$1,125 certification amount within 12 months of the effective date of a
final rule. Licensees currently using the $75K or $150K certification
amounts would be required to obtain additional financial assurance to
comply with the proposed $113K or $225K certification amounts within 18
months of the effective date of a final rule. In either case, these
licensees could choose the option of basing financial assurance on a
decommissioning cost estimate.
Licensees that would no longer be able to use the certification
amounts, such as large irradiators and waste brokers, would be allowed
up to 24 months to submit a decommissioning cost estimate. The NRC
encourages public comments on implementation issues and concerns.
Discussion of Proposed Amendments by Section
Section 30.4 Definitions
A definition of the term ``waste broker'' is added.
Section 30.35 Financial Assurance and Recordkeeping for Decommissioning
Paragraph (a) is amended to require licensees possessing large
numbers of sealed sources to base financial assurance on a
decommissioning funding plan. Amended Sec. 30.35(c)(2) revises the
certification amount. A new Sec. 30.35(c)(5) would require waste
broker licensees to base financial assurance on a site-specific
decommissioning cost estimate. Amended Sec. 30.35(d) would increase
the certification amounts by 50 percent--proposed new certification
amounts would be $113K, $225K, and $1,125K. Amended Sec. 30.35(e)
would require that decommissioning funding plans be updated at least
every 3 years.
10 CFR 40.36 Financial Assurance and Recordkeeping
Amended Sec. 40.36(b)(2) would increase the applicable
certification amount by 50 percent. Amended Sec. 40.36(c)(2) revises
the certification amount. Amended Sec. 40.36(d) would require that
decommissioning funding plans be updated at least every 3 years.
10 CFR 70.25 Financial Assurance and Recordkeeping for Decommissioning
Amended Sec. 70.25(c)(2) revises the certification amount. Amended
Sec. 70.25(d) would increase the applicable certification amount by 50
percent. Revised Sec. 70.25(e) would require that decommissioning
funding plans be updated at least every 3 years.
Agreement State Compatibility
Under the ``Policy Statement on Adequacy and Compatibility of
Agreement State Programs'' that became effective on September 3, 1997
(62 FR 46517), NRC program elements (including regulations) are placed
into four compatibility categories. In addition, NRC program elements
also can be identified as having particular health and safety
significance or as being reserved solely to the NRC. The compatibility
categories of the financial
[[Page 62407]]
assurance regulations are not being changed in the proposed rulemaking.
The sections of 10 CFR parts 30, 40, and 70 dealing with financial
assurance that are being changed and their respective compatibility
categories are as follows:
Section 30.35 Financial Assurance and Recordkeeping for Decommissioning
Compatibility category D, except D/ Health and Safety--paragraphs
(a), (b), (d), and (g).
States are given flexibility to allow different dollar amounts
based upon jurisdiction and local conditions. The Health and Safety
designation for paragraph (g) is warranted because of the requirement
for transfer of certain records (e.g., spills or spread of
contamination) important for decommissioning to a subsequent licensee
at the same facility.
Section 40.36 Financial Assurance and Recordkeeping for Decommissioning
Compatibility category D--paragraphs (c) and (e). Category D/Health
and Safety--paragraphs (a), (b), (d), and (f).
States have the flexibility to specify different dollar amounts
based on jurisdiction and local conditions. The Health and Safety
designation for paragraph (f) is warranted because of the requirement
for transfer of certain records (e.g., spills or spread of
contamination) important for decommissioning to a subsequent licensee
at the same facility.
Section 70.25 Financial Assurance and Recordkeeping for Decommissioning
Compatibility category D except (a) is NRC, and D/Health and
Safety--paragraphs (b), (d), and (g).
States have the flexibility to specify different dollar amounts
based on jurisdiction and local conditions. Paragraph (a) addresses
areas reserved to the NRC because it concerns uranium enrichment
facilities and special nuclear materials in quantities sufficient to
form a critical mass.
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 make revisions to
certain financial assurance requirements for materials licensees.
Financial assurance requirements are not standards that have been
established by any voluntary consensus organizations.
Environmental Assessment and 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
on the basis of an environmental assessment that this proposed rule, if
adopted, would not be a major Federal action significantly affecting
the quality of the human environment. These proposed amendments would
revise financial assurance requirements for certain materials
licensees. The amendments would not lead to any increase in the effect
on the environment of the decommissioning activities considered in the
final rule published on June 27, 1988 (53 FR 24018), as analyzed in the
Final Generic Environmental Impact Statement on Decommissioning of
Nuclear Facilities (NUREG-0586, August 1988).\11\ Actions conducted
under this rule would not introduce any impacts on the environment not
previously considered by the NRC.
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\11\ Copies of NUREG-0586 are available for inspection or
copying for a fee from the NRC Public Document Room at O-1F23, 11555
Rockville Pike, Rockville, MD. Copies may be purchased at current
rates from the U.S. Government Printing Office, P.O. Box 370892,
Washington, DC 20402-9328 (telephone (202 ) 512-2249); or from the
National Technical Information Service by writing NTIS at 5285 Port
Royal Road, Springfield, VA 22161.
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The determination of this environmental assessment is that there
will be no significant adverse impact to the quality of the human
environment from this action. This action should provide a positive
impact by providing additional assurance of timely decommissioning.
However, the general public should note that the NRC welcomes public
participation. Comments on any aspect of the Environmental Assessment
may be submitted to the NRC as indicated under the ADDRESSES heading.
The NRC has sent a copy of this notice of proposed rulemaking,
which includes the environmental assessment, to every State Liaison
Officer and requested their comments. It may be examined at the NRC
Public Document Room, O-1F23, 11555 Rockville Pike, Rockville, MD.
Single copies are available from Clark Prichard, telephone (301) 415-
6203, e-mail, [email protected], of the Office of Nuclear Material Safety and
Safeguards.
Paperwork Reduction Act Statement
This proposed rule amends information collection requirements
contained in 10 CFR parts 30, 40, and 70 that are subject to the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). These
information collection requirements have been submitted to the Office
of Management and Budget for review and approval. Existing requirements
were approved by the Office of Management and Budget, approval numbers
3150-0009, -0017, and -0020.
The burden to the public for the information collections contained
in 10 CFR part 30 is estimated to average 10.4 hours per response, the
burden for the information collections contained in 10 CFR part 40 is
estimated to average 7.3 hours per response, and the burden for the
information collections contained in 10 CFR part 70 is estimated to
average 7.5 hours per response. This includes the time for reviewing
instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
information collection. The U.S. Nuclear Regulatory Commission is
seeking public comment on the potential impact of the information
collections contained 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 these proposed information
collections, including suggestions for reducing the burden, to the
Records Management Branch (T-6 E6), U.S. Nuclear Regulatory Commission,
Washington, DC 20555-0001, or by Internet
[[Page 62408]]
electronic mail to [email protected]; and to the Desk Officer,
Office of Information and Regulatory Affairs, NEOB-10202, (3150-0017, -
0020, and -0009), Office of Management and Budget, Washington, DC
20503.
Comments to OMB on the information collections or on the above
issues should be submitted by November 6, 2002. 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
The NRC may not conduct or sponsor, and a person is not required to
respond to, a request for information or an information collection
requirement unless the requesting document displays a currently valid
OMB control number.
Regulatory Analysis
The Commission has prepared a draft regulatory analysis on this
proposed regulation. The analysis examines the costs and benefits of
the alternatives considered by the Commission.
The Commission requests public comment on the draft regulatory
analysis. Comments on the draft analysis may be submitted to the NRC as
indicated under the ADDRESSES heading. The analysis is available for
inspection in the NRC Public Document Room, 11555 Rockville Pike,
Rockville, MD. Single copies of the regulatory analysis are available
from Clark Prichard, telephone (301) 415-6203, e-mail, [email protected] of
the Office of Nuclear Material Safety and Safeguards.
Regulatory Flexibility Certification
In accordance with the Regulatory Flexibility Act of 1980 (5 U.S.C.
605(b)), the Commission certifies that this rule would not, if
promulgated, have a significant economic impact on a substantial number
of small entities. Some licensees affected by this proposed action may
fall within the definition of ``small entities'' set forth in the
Regulatory Flexibility Act or the Small Business Size Standards set out
in regulations issued by the Small Business Administration at 13 CFR
part 121. However, while the proposed rule would change the financial
assurance requirements for these licensees, a licensee may base its
financial assurance on a facility-specific decommissioning cost
estimate. No licensee would be required to provide financial assurance
in excess of what is needed to cover decommissioning costs. Increases
in financial assurance amounts required are only the amounts necessary
to maintain adequate financial assurance to cover increased
decommissioning costs. The regulatory analysis cited for this proposed
action contains estimates of cost impacts on different types of
licensees.
The NRC is seeking public comment on the potential impact of the
proposed rule on small entities. The NRC particularly desires comment
from small entities (i.e., small businesses, small organizations, and
small jurisdictions under the Regulatory Flexibility Act) as to how the
proposed regulations will affect them and how the regulations may be
tiered or otherwise modified to impose less stringent requirements on
small entities while still adequately protecting the public health and
safety. Those small entities that offer comments on how the regulations
could be modified should specifically discuss--
(a) The size of their business and how the proposed regulations
would result in a significant economic burden upon them as compared to
large organizations in the same business community.
(b) How the proposed regulations could be modified to take into
account their differing needs or capabilities.
(c) The benefits that would accrue, or the detriments that would be
avoided, if the proposed regulations were modified as suggested by the
commenter.
(d) How the proposed regulations, as modified, would more closely
equalize the impact of NRC regulations or create more equal access to
the benefits of Federal programs as opposed to providing special
advantages to any individuals or groups; and
(e) How the proposed regulations, as modified, would still
adequately protect the public health and safety.
The comments should be sent to the Secretary of the Commission,
U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, Attn:
Rulemakings and Adjudications Staff.
Backfit Analysis
There are no backfit requirements in 10 CFR Parts 30 and 40, and,
in accordance with the effective date note regarding implementation of
Sec. 70.76, the provisions of 10 CFR 70.76 on backfitting have not yet
gone into effect. Therefore, a backfit analysis is not required.
However, the burdens and the benefits associated with this proposed
rule are addressed in this notice and in the Regulatory Analysis.
List of Subjects
10 CFR Part 30
Byproduct material, Criminal penalties, Government contracts,
Intergovernmental relations, Isotopes, Nuclear materials, Radiation
protection, Reporting and recordkeeping requirements.
10 CFR Part 40
Criminal penalties, Government contracts, Hazardous materials
transportation, Nuclear materials, Reporting and recordkeeping
requirements, Source material, Uranium.
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.
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 30, 40, and 70.
PART 30--RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF
BYPRODUCT MATERIAL
1. The authority citation for Part 30 continues to read as follows:
Authority: Secs. 81, 82, 161, 182, 183, 186, 68 Stat. 935, 948,
953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42
U.S.C. 2111, 2112, 2201, 2232, 2233, 2236, 2282); secs. 201, as
amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C.
5841, 5842, 5846).
Section 30.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat.
2951 as amended by Pub. L. 102-486, sec. 2902, 106 Stat. 3123, (42
U.S.C. 5851). Section 30.34(b) also issued under sec.184, 68 Stat.
954, as amended (42 U.S.C. 2234). Section 30.61 also issued under
sec. 187, 68 Stat. 955 (42 U.S.C. 2237).
2. In Sec. 30.4, a definition is added in alphabetical order to
read as follows:
Sec. 30.4 Definitions.
* * * * *
Waste broker means any licensee that collects or accepts
radioactive material from other entities for the purpose of processing,
compacting, repackaging, or otherwise preparing it for disposal, or for
storage.
* * * * *
3. In Sec. 30.35, paragraphs (a), (c)(2), (d), and (e) are revised
and a new paragraph (c)(5) is added to read as follows:
Sec. 30.35 Financial assurance and recordkeeping for decommissioning.
(a)(1) Each applicant for a specific license authorizing possession
and use
[[Page 62409]]
of unsealed byproduct material of half-life greater than 120 days and
in quantities exceeding 105 times the applicable quantities
set forth in appendix B to part 30 shall submit a decommissioning
funding plan as described in paragraph (e) of this section. The
decommissioning funding plan must also be submitted when a combination
of isotopes is involved if R divided by 105 is greater than
1 (unity rule), where R is defined here as the sum of the ratios of the
quantity of each isotope to the applicable value in appendix B to part
30.
(2) Each holder of, or applicant for, any specific license
authorizing possession and use of sealed sources or plated foils of
half-life greater than 120 days and in quantities exceeding
1012 times the applicable quantities set forth in appendix B
to part 30 (or when a combination of isotopes is involved if R, as
defined in Sec. 30.35(a)(1), divided by 1012 is greater
than 1), shall submit a decommissioning funding plan as described in
paragraph (e) of this section.
* * * * *
(c) * * *
(2) Each holder of a specific license issued before July 27, 1990,
and of a type described in paragraph (a) of this section shall submit a
decommissioning funding plan as described in paragraph (e) of this
section or a certification of financial assurance for decommissioning
in an amount at least equal to $1,125,000 in accordance with the
criteria set forth in this section. If the licensee submits the
certification of financial assurance rather than a decommissioning
funding plan, the licensee shall include a decommissioning funding plan
in any application for license renewal.
* * * * *
(5) Waste brokers, i.e., each applicant or holder of a specific
license that collects or accepts radioactive material from other
entities for the purpose of processing, compaction, repackaging, or
otherwise preparing it for disposal, or for storage, must provide
financial assurance in an amount based on a decommissioning funding
plan as described in paragraph (e) of this section. The decommissioning
funding plan must include the cost of disposal of the maximum amount
(curies) of radioactive material permitted by license, and the cost of
disposal of the maximum quantity, by volume, of radioactive material
present at the licensee's facility at any time, in addition to the cost
to remediate the licensee's site to meet the license termination
criteria of 10 CFR part 20.
(d) Table of required amounts of financial assurance for
decommissioning by quantity of material. Licensees having possession
limits exceeding the upper bounds of this table must base financial
assurance on a decommissioning funding plan.
greater than 10\4\ but less than or equal to 10\5\ times $1,125,000
the applicable quantities of appendix B to part 30 in
unsealed form. (For a combination of isotopes, if R, as
defined in Sec. 30.35(a)(1), divided by 104 is greater
than 1 but R divided by 10\5\ is less than or equal to 1).
greater than 10\3\ but less than or equal to 10\4\ times $225,000
the applicable quantities of appendix B to part 30 in
unsealed form. (For a combination of isotopes, if R, as
defined in Sec. 30.35(a)(1), divided by 10\3\ is greater
than 1 but R divided by 10\4\ is less than or equal to 1).
greater than 10\10\ but less than or equal to 10\12\ times $113,000
the applicable quantities of appendix B to part 30 in
sealed sources or plated foils. (For a combination of
isotopes, if R, as defined in Sec. 30.35(a)(1), divided
by 10\10\ is greater than 1, but R divided by 10\12\ is
less than or equal to 1)..................................
(e) Each decommissioning funding plan must contain a cost estimate
for decommissioning and a description of the method of assuring funds
for decommissioning from paragraph (f) of this section, including means
for adjusting cost estimates and associated funding levels periodically
over the life of the facility. Cost estimates must be adjusted at
intervals not to exceed three years. The decommissioning funding plan
must also contain a certification by the licensee that financial
assurance for decommissioning has been provided in the amount of the
cost estimate for decommissioning and a signed original of the
financial instrument obtained to satisfy the requirements of paragraph
(f) of this section.
* * * * *
PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL
4. The authority citation for Part 40 continues to read as follows:
Authority: Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68
Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs.
11e(2),83, 84, Pub. L. 95-604, 92Stat. 3033, as amended, 3039, sec.
234, 83 Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092, 2093,
2094,2095, 2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282); sec.
274, Pub. L. 86-373, 73 Stat. 688 (42 U.S.C. 2021); secs. 201, as
amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C.
5841, 5842, 5846); sec. 275, 92 Stat. 3021, as amended by Pub. L.
97-415, 96 Stat. 2067 (42 U.S.C. 2022); sec. 193, 104 Stat. 2835, as
amended by Pub. L. 104-134, 110 Stat. 1321, 1321-349 (42 U.S.C.
2243).
Section 40.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat.
2951 (42 U.S.C. 5851). Section 40.31(g) also issued under sec. 122,
68 Stat. 939 (42 U.S.C. 2152). Section 40.46 also issued under sec.
184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 40.71 also
issued under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).
5. In Sec. 40.36, paragraphs (b)(2), (c)(2), and (d) are revised
to read as follows:
Sec. 40.36 Financial assurance and recordkeeping for decommissioning.
* * * * *
(b) * * *
(2) Submit a certification that financial assurance for
decommissioning has been provided in the amount of $225,000 using one
of the methods described in paragraph (e) of this section. For an
applicant, this certification may state that the appropriate assurance
will be obtained after the application has been approved and the
license issued but before the receipt of licensed material. If the
applicant defers execution of the financial instrument until after the
license has been issued, a signed original of the financial instrument
obtained to satisfy the requirements of paragraph (e) of this section
must be submitted to NRC prior to receipt of licensed material. If the
applicant does not defer execution of the financial instrument , the
applicant shall submit to NRC, as part of the certification, a signed
original of the financial instrument obtained to satisfy the
requirements of paragraph (e) of this section.
(c) * * *
(2) Each holder of a specific license issued before July 27, 1990,
and of a type described in paragraph (a) of this section shall submit a
decommissioning funding plan as described in paragraph (d) of this
section or a certification of financial assurance for decommissioning
in an amount at least equal to $1,125,000 in accordance with the
criteria set forth in this section. If the licensee submits the
certification of financial assurance rather than a decommissioning
funding plan, the licensee shall include a decommissioning funding plan
in any application for license renewal.
* * * * *
(d) Each decommissioning funding plan must contain a cost estimate
for decommissioning and a description of
[[Page 62410]]
the method of assuring funds for decommissioning from paragraph (e) of
this section, including means for adjusting cost estimates and
associated funding levels periodically over the life of the facility.
Cost estimates must be adjusted at intervals not to exceed three years.
The decommissioning funding plan must also contain a certification by
the licensee that financial assurance for decommissioning has been
provided in the amount of the cost estimate for decommissioning and a
signed original of the financial instrument obtained to satisfy the
requirements of paragraph (e) of this section.
* * * * *
PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL
6. 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 70.81 also issued under secs. 186, 187, 68
Stat. 955 (42 U.S.C. 2236, 2237). Section 70.82 also issued under
sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138).
7. In Sec. 70.25, paragraphs (c)(2), (d), and (e) are revised to
read as follows:
Sec. 70.25 Financial assurance and recordkeeping for decommissioning.
* * * * *
(c) * * *
(2) Each holder of a specific license issued before July 27, 1990,
and of a type described in paragraph (a) of this section shall submit a
decommissioning funding plan as described in paragraph (e) of this
section or a certification of financial assurance for decommissioning
in an amount at least equal to $1,125,000 in accordance with the
criteria set forth in this section. If the licensee submits the
certification of financial assurance rather than a decommissioning
funding plan, the licensee shall include a decommissioning funding plan
in any application for license renewal.
* * * * *
(d) Table of required amounts of financial assurance for
decommissioning by quantity of material. Licensees having possession
limits exceeding the upper bounds of this table must base financial
assurance on a decommissioning funding plan.
greater than 10\4\ but less than or equal to 10\5\ times $1,125,000
the applicable quantities of appendix B to part 30. (For a
combination of isotopes, if R, as defined in Sec.
70.25(a), divided by 10\4\ is greater than 1 but R divided
by 10\5\ is less than or equal to 1.).....................
greater than 10\3\ but less than or equal to 10\4\ times $225,000
the applicable quantities of appendix B to part 30. (For a
combination of isotopes, if R, as defined in Sec.
70.25(a), divided by 10\3\ is greater than 1 but R divided
by 10\4\ is less than or equal to 1.).....................
(e) Each decommissioning funding plan must contain a cost estimate
for decommissioning and a description of the method of assuring funds
for decommissioning from paragraph (f) of this section, including means
for adjusting cost estimates and associated funding levels periodically
over the life of the facility. Cost estimates must be adjusted at
intervals not to exceed three years. The decommissioning funding plan
must also contain a certification by the licensee that financial
assurance for decommissioning has been provided in the amount of the
cost estimate for decommissioning and a signed original of the
financial instrument obtained to satisfy the requirements of paragraph
(f) of this section.
* * * * *
Dated at Rockville, Maryland, this 27th day of September, 2002.
For the Nuclear Regulatory Commission.
Annette Vietti-Cook,
Secretary of the Commission.
[FR Doc. 02-25243 Filed 10-4-02; 8:45 am]
BILLING CODE 7590-01-P