[Federal Register Volume 68, Number 217 (Monday, November 10, 2003)]
[Notices]
[Pages 63825-63827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28182]


-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket No. 70-143]


Nuclear Fuel Services, Inc., Environmental Assessment and 
Issuance of Finding of No Significant Impact Related to Proposed 
Financial Assurance Exemption for the Blended Low-Enriched Uranium 
Preparation Facility

AGENCY: Nuclear Regulatory Commission.

ACTION: Finding of No Significant Impact and Environmental Assessment.

-----------------------------------------------------------------------

FOR FURTHER INFORMATION CONTACT: Kevin Ramsey, Fuel Cycle Facilities 
Branch, Division of Fuel Cycle Safety and Safeguards, Office of Nuclear 
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, 
Mail Stop T8-A33, Washington DC 20555-0001, telephone (301) 415-7887 
and e-mail [email protected].

SUPPLEMENTARY INFORMATION: 

I. Introduction

    The U.S. Nuclear Regulatory Commission (NRC) is considering the 
issuance of an amendment to NRC Materials License SNM-124 to exempt 
Nuclear Fuel Services (NFS) from the financial assurance requirements 
in 10 CFR 70.25(f) for the proposed Blended Low-Enriched Uranium 
Preparation Facility (BPF) in Erwin, Tennessee, and has prepared an 
Environmental Assessment (EA) in support of this action. Based upon the 
EA, the NRC has concluded that a Finding of No Significant Impact 
(FONSI) is appropriate, and, therefore, an Environmental Impact 
Statement (EIS) will not be prepared.

II. Environmental Assessment

Background

    The NRC staff has received an exemption request (Ref. 1), dated 
October 27, 2003, to exempt NFS from the provision in 10 CFR 
70.25(f)(4) limiting the use of a letter of intent to government 
licensees only. NFS is a non-government licensee and wishes to use a 
letter of intent from the U.S. Department of Energy (DOE) to guarantee 
part of the funds for decommissioning the BPF. NRC has received a 
letter from DOE (Ref. 2), dated October 20, 2003, stating its intent to 
reimburse the actual costs of decommissioning the BPF within the limits 
stated in the letter. The purpose of this document is to assess the 
environmental consequences of the proposed exemption.

[[Page 63826]]

    The NFS facility in Erwin, Tennessee is authorized under SNM-124 to 
manufacture high-enriched nuclear reactor fuel. NFS is constructing a 
new complex at the Erwin site to manufacture low-enriched nuclear 
reactor fuel. NFS has requested an amendment to authorize operations at 
the BPF that will prepare low-enriched uranium solutions for use in the 
new complex (Ref. 3). The BPF operations will be conducted within the 
existing complex because that facility is already authorized to handle 
high-enriched material. After the high-enriched material is downblended 
and converted to a low-enriched uranium solution, it will be 
transferred from the BPF to the new complex. NFS must provide financial 
assurance for decommissioning the BPF before operations can be 
authorized.

Review Scope

    The purpose of this EA is to assess the environmental impacts of 
the exemption request. It does not approve the request. This EA is 
limited to the financial assurance of proposed BPF activities at the 
Erwin Plant. The existing conditions and operations for the Erwin 
facility were evaluated by NRC for environmental impacts in a 1999 EA 
related to the renewal of the NFS license (Ref. 4), and a 2002 EA 
related to another amendment request for the Blended Low-Enriched 
Uranium (BLEU) Project (Ref. 5). The proposed operations at the BPF 
were evaluated for environmental impacts in a 2003 EA related to the 
BPF amendment request (Ref. 6). This assessment will determine whether 
to issue a FONSI or to prepare an Environmental Impact Statement (EIS). 
Should the NRC issue a FONSI, no EIS will be prepared.

Proposed Action

    The proposed action is to grant an exemption from the requirements 
in 10 CFR 70.25(f)(4) and authorize NFS to use a DOE letter of intent 
to provide part of the financial assurance for decommissioning the BPF.

Purpose and Need for Proposed Action

    The BLEU Project is part of a DOE program to reduce stockpiles of 
surplus high-enriched uranium. DOE has entered into an interagency 
agreement with the Tennessee Valley Authority (TVA) to convert 7400 
kilograms of high-enriched uranium to commercial reactor fuel for a TVA 
nuclear power reactor. Under the interagency agreement, DOE has assumed 
the obligation to reimburse TVA and its contractors for the actual 
decommissioning costs associated with processing the high-enriched 
uranium. The DOE letter of intent recognizes NFS as a TVA contractor 
under the interagency agreement and commits to reimbursing the actual 
decommissioning costs associated with processing the high-enriched 
uranium at NFS.
    Alternatives
    The alternatives available to the NRC are:
    1. Approve the exemption request as submitted;
    2. No action (i.e., deny the exemption request).

Affected Environment

    The affected environment for Alternatives 1 and 2 is the NFS site. 
A full description of the site and its characteristics is given in the 
1999 EA related to the renewal of the NFS license (Ref. 1) and a 2002 
EA related to another amendment request for the BLEU Project (Ref. 2). 
The NFS facility is located in Unicoi County, Tennessee, about 32 km 
(20 mi) southwest of Johnson City, Tennessee. The plant is about 0.8 km 
(0.5 mi) southwest of the Erwin city limits. The site occupies about 28 
hectares (70 acres). The site is bounded to the northwest by the CSX 
Corporation (CSX) railroad property and the Nolichucky River, and by 
Martin Creek to the northeast. The plant elevation is about 9 m (30 ft) 
above the nearest point on the Nolichucky River.
    The area adjacent to the site consists primarily of residential, 
industrial, and commercial areas, with a limited amount of farming to 
the northwest. Privately owned residences are located to the east and 
south of the facility. Tract size is relatively large, leading to a low 
housing density in the areas adjacent to the facility. The CSX railroad 
right-of-way is parallel to the western boundary of the site. 
Industrial development is located adjacent to the railroad on the 
opposite side of the right-of-way. The site is bounded by Martin Creek 
to the north, with privately owned, vacant property and low-density 
residences.

Effluent Releases and Monitoring

    A full description of the effluent monitoring program at the site 
is provided in the 1999 EA related to the renewal of the NFS license 
(Ref. 4), a 2002 EA related to another amendment request for the BLEU 
Project (Ref. 5), and a 2003 EA related to the BPF amendment request 
(Ref. 6). The NFS Erwin Plant conducts effluent and environmental 
monitoring programs to evaluate potential public health impacts and 
comply with the NRC effluent and environmental monitoring requirements. 
The effluent program monitors the airborne, liquid, and solid waste 
streams produced during operation of the NFS Plant. The environmental 
program monitors the air, surface water, sediment, soil, groundwater, 
and vegetation in and around the NFS Plant.
    Airborne, liquid, and solid effluent streams that contain 
radioactive material are generated at the NFS Plant and monitored to 
ensure compliance with NRC regulations in 10 CFR part 20. Each effluent 
is monitored at or just before the point of release. The results of 
effluent monitoring are reported on a semi-annual basis to the NRC in 
accordance with 10 CFR 70.59.
    Airborne and liquid effluents are also monitored for 
nonradiological constituents in accordance with State discharge 
permits. For the purpose of this EA, the State of Tennessee is expected 
to set limits on effluents under its regulatory control that are 
protective of health and safety and the local environment. On October 
10, 2002, the Tennessee Air Pollution Control Board issued a discharge 
permit for airborne effluents from the BPF.

Environmental Impacts of Proposed Action

    The proposed action will not result in the release of any chemical 
or radiological constituents to the environment. In addition, the 
proposed action will not cause any adverse impacts to local land use, 
biotic resources, or cultural resources.

Environmental Impacts of No Action Alternative

    Under the no action alternative, NFS would have to provide 
financial assurance for decommissioning the BPF using another method. 
Obtaining another funding mechanism would cause delays and increase the 
costs of NFS' contract obligations for the BLEU Project.
    Based on its review, the NRC staff has concluded that the 
environmental impacts associated with the proposed action are 
insignificant. Thus, the staff considers that Alternative 1 is the 
appropriate alternative for selection.

Agencies and Persons Contacted

    On October 29, 2003, the NRC staff contacted the Director of the 
Division of Radiological Health in the Tennessee Department of 
Environment and Conservation concerning this request. On October 29, 
2003, the Director responded that the Division of Radiological Health, 
Tennessee Department of Environment and

[[Page 63827]]

Conservation concurred with the draft EA.
    The NRC staff has determined that consultation under Section 7 of 
the Endangered Species Act is not required because the proposed action 
is administrative in nature and will not affect listed species or 
critical habitat.
    The NRC staff has determined that the proposed action is not a type 
of activity that has potential to cause effect on historic properties 
because it is administrative in nature. Therefore, consultation under 
Section 106 of the National Historic Preservation Act is not required.

References

    Unless otherwise noted, a copy of this document and the references 
listed below will be available electronically for public inspection in 
the NRC Public Document Room or from the Publicly Available Records 
(PARS) component of NRC's document system (ADAMS). ADAMS is accessible 
from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html (the 
Public Electronic Reading Room).

    1. Nuclear Fuel Services, Inc., Letter to U.S. Nuclear 
Regulatory Commission, ``Request for Exemption from 10 CFR 70.25(f) 
Requirements for Portions of the BLEU Preparation Facility at 
Building 333,'' October 27, 2003, ADAMS No. ML033030311.
    2. U.S. Department of Energy, Letter to U.S. Nuclear Regulatory 
Commission, ``Assurance of Funding for Decommissioning the Equipment 
and Facilities Associated with the BLEU Project at Nuclear Fuel 
Services, Inc. Erwin Site,'' October 20, 2003, ADAMS No. 
ML033010362.
    3. Nuclear Fuel Services, Inc., Letter to U.S. Nuclear 
Regulatory Commission, ``License Amendment Request for BLEU 
Preparation Facility,'' October 11, 2002, ADAMS No. ML023380210.
    4. U.S. Nuclear Regulatory Commission, ``Environmental 
Assessment for Renewal of Special Nuclear Material License No. SNM-
124,'' January 1999, ADAMS No. ML031150418.
    5. U.S. Nuclear Regulatory Commission, ``Environmental 
Assessment for Proposed License Amendments to Special Nuclear 
Material License No. SNM-124 Regarding Downblending and Oxide 
Conversion of Surplus High-Enriched Uranium,'' June 2002, ADAMS No. 
ML021790068.
    6. U.S. Nuclear Regulatory Commission, ``Environmental 
Assessment and Finding of No Significant Impact for the BLEU 
Preparation Facility,'' September 17, 2003, ADAMS No. ML032390428.

III. Finding of No Significant Impact

    Pursuant to 10 CFR part 51, the NRC staff has considered the 
environmental consequences of amending NRC Materials License SNM-124 to 
exempt NFS from the financial assurance requirements in 10 CFR 70.25(f) 
for the BPF. On the basis of this assessment, the Commission has 
concluded that environmental impacts associated with the proposed 
action would not be significant and the Commission is making a finding 
of no significant impact. Accordingly, preparation of an environmental 
impact statement is not warranted.

IV. Further Information

    For further details, see the references listed above. Documents may 
be examined, and/or copied for a fee, at the NRC's Public Document Room 
(PDR), located at One White Flint North, Room O-1F21, 11555 Rockville 
Pike, Rockville, Maryland. Publicly available records will be 
accessible electronically from the Agencywide Document Access and 
Management System (ADAMS) Public Electronic Reading Room on the 
Internet at the NRC Web site, http://www.nrc.gov/reading-rm/adams.html. 
Persons who do not have access to ADAMS or who encounter problems in 
accessing the documents located in ADAMS, should contact the NRC PDR 
Reference staff by telephone at 1-800-397-4209 or (301) 415-4737, or by 
e-mail to [email protected].

    Dated at Rockville, Maryland, the 3rd day of November 2003.

    For the Nuclear Regulatory Commission.
Kevin M. Ramsey,
Project Manager, Fuel Cycle Facilities Branch, Division of Fuel Cycle 
Safety and Safeguards, Office of Nuclear Material Safety and 
Safeguards.
[FR Doc. 03-28182 Filed 11-7-03; 8:45 am]
BILLING CODE 7590-01-P