[Federal Register Volume 68, Number 43 (Wednesday, March 5, 2003)]
[Rules and Regulations]
[Pages 10362-10365]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5168]
=======================================================================
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
10 CFR Parts 40 and 150
RIN 3150-AH10
Source Material Reporting Under International Agreements
AGENCY: Nuclear Regulatory Commission.
ACTION: Direct final rule.
-----------------------------------------------------------------------
SUMMARY: The Nuclear Regulatory Commission (NRC) is amending its
regulations which require licensees to report their holdings of source
material (uranium and thorium) to the agency. Currently, licensees are
required to file a report with the NRC whenever they receive or
transfer uranium or thorium mined outside the United States (U.S.). The
amended regulations require licensees to report the receipt or transfer
of source material controlled under any of the various international
Agreements for Peaceful Nuclear Cooperation. This change will enable
the U.S. Government to maintain the comprehensive national inventory of
nuclear materials required under these agreements. This rule also
allows licensees additional flexibility in submitting their annual
source material inventory statements. The amended regulations permit
licensees to submit these statements along with their material status
reports for special nuclear material.
DATES: The final rule is effective October 1, 2003, unless significant
adverse comments are received by April 4, 2003. A significant adverse
comment is a comment where the commenter explains why the rule would be
inappropriate, including challenges to the rule's underlying premise or
approach, or would be ineffective or unacceptable without a change. If
the rule is withdrawn, timely notice will be published in the Federal
Register.
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.
Certain documents related to this rulemaking, as well as all public
comments received on this rulemaking, may be viewed and downloaded
electronically via the NRC's rulemaking Web site at http://ruleforum.llnl.gov. You may also provide comments via this Web site by
uploading comments as files (any format) if your web browser supports
that function. For information about the interactive rulemaking site,
contact Ms. Carol Gallagher (301) 415-5905; e-mail [email protected].
Documents created or received at the NRC after November 1, 1999,
are also available electronically at the NRC's Public Electronic
Reading Room on the Internet at http://www.nrc.gov/reading-rm/adams.html. From this site, the public can gain entry into the NRC's
Agencywide Documents Access and Management System (ADAMS), which
provides text and image files of NRC's public documents. If you do not
have access to ADAMS or if there are problems in accessing the
documents located in ADAMS, contact the NRC PDR Reference staff at 1-
800-397-4209, 301-415-4737 or by e-mail to [email protected].
FOR FURTHER INFORMATION CONTACT: Merri Horn, Office of Nuclear Material
Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington,
DC 20555-0001, telephone (301) 415-8126; e-mail [email protected].
SUPPLEMENTARY INFORMATION:
Background
Current regulations in 10 CFR Part 40 and 10 CFR part 150 require
each NRC and Agreement State materials licensee to maintain an updated
inventory of its holdings of source material of foreign origin (e.g.,
thorium, depleted uranium, and natural uranium mined outside the U.S.).
Licensees are required to submit a report to the NRC whenever they
receive or transfer source material of foreign origin. Some licensees
are also required to submit an annual statement detailing their
inventory of such material. Information in these reports is entered
into a national nuclear materials database called the Nuclear Materials
Management and Safeguards System (NMMSS). The NMMSS, managed jointly by
the NRC and the Department of Energy (DOE), is the U.S. Government's
official computerized accounting system for the possession, use, and
shipment of nuclear materials (primarily special nuclear material and
source material) in the U.S., whether of foreign or domestic origin.
The U.S. Government uses data in the NMMSS to meet its source
material reporting requirements under a number of international
agreements promoting global cooperation in the peaceful uses of nuclear
energy. U.S. participation in international Agreements for Peaceful
Nuclear Cooperation is provided for in Section 123 of the Atomic Energy
Act, and approximately 24 such Agreements are in place and active at
this time. Under these Agreements, the U.S. Government is obliged to
impose controls on the use of certain nuclear materials, ensure that
such materials are used only for peaceful ends, and enforce other
conditions placed on the import, export, or transfer of specific
equipment and nuclear material. As part of an information exchange
required by the Agreements, the U.S. Government periodically provides
to the governments of cooperating countries an updated inventory of
certain nuclear material held in the U.S. To enable the U.S. Government
to meet this obligation, the NRC must ensure that licensees document
movement within the U.S. of nuclear material subject to these
Agreements, and track any additional nuclear material produced through
the use of that material.
As noted, existing NRC regulations require licensees to track and
report their holdings of source material of foreign origin, i.e.,
source material mined outside the U.S. However, under the Agreements
for Peaceful Nuclear Cooperation to which it is a party, the U.S.
Government is required to report a different range of source material.
The NRC's current reporting requirements, which focus on the national
origin of source material, no longer adequately serve this purpose. The
aim of this rulemaking is to align the NRC's source material reporting
requirements for licensees with international reporting requirements
agreed to by the U.S. Government. The new requirements will require
licensees to track and report source material which the U.S. Government
is obliged to report under existing international agreements.
The amended regulation will replace requirements that licensee
holdings of foreign-origin source material be reported to the NRC with
requirements that licensees track and report source material with
foreign obligations. Source material with foreign obligations (or
foreign-obligated source material) is nuclear material that the U.S. is
obliged to track, control, and report to foreign governments under
existing international agreements. Requiring NRC licensees to track and
report foreign-obligated source material will result in a database that
is more robust and that will better satisfy the U.S. Government's need
for specific information on source materials with foreign obligations.
Part 110 was revised in 2000 to require importers and
[[Page 10363]]
exporters to report on license applications the foreign obligations
associated with nuclear material being imported or exported (65 FR
70287; November 22, 2000).
A change has also been made to the timing of the yearly statement
required for source material with a foreign obligation, providing
licensees with increased flexibility. Licensees are given a choice of
submitting their annual inventory statements either at the same time as
they submit the material status reports on special nuclear material
that are required under Parts 72 and 74, or within 30 days after
September 30th of each year, as is currently required.
In addition, a change is made to require reporting for any
Agreement State licensee who exports one kilogram or more of uranium or
thorium source material. The current regulations only require licensees
that import such material to report. This information is needed because
the U.S. Government is required to report all exports of source
material of 1 kg or more to the International Atomic Energy Agency
(IAEA). Part 40 already contains this requirement.
Finally, to clarify the scope of this amendment, parts 40 and 150
will define the term ``foreign obligations'' for use in those parts to
mean ``the commitments entered into by the U.S. Government under Atomic
Energy Act (AEA) section 123 agreements for cooperation in the peaceful
uses of atomic energy. Imports and exports of material or equipment
pursuant to such agreements are subject to these commitments, which in
some cases involve an exchange of information on imports, exports,
retransfers with foreign governments, peaceful end-use assurances, and
other conditions placed on the transfer of the material or equipment.
The U.S. Government informs the licensee of obligations attached to
material.'' This definition is consistent with the definition of
``obligations'' in part 110.
Section-by-Section Analysis
Section 40.4--Definitions
This section is revised to add a definition of ``foreign
obligations.''
Section 40.64--Reports
This section is revised to reflect a change from a requirement to
report source material of foreign origin to reporting source material
with foreign obligations. This section is also revised to allow
licensees to submit their yearly inventory statement of source material
with foreign obligations with their material status reports on special
nuclear material, providing more flexibility to licensees.
Section 150.3--Definitions
This section is revised to add a definition of ``foreign
obligations.'' In addition, the format of this section is updated to
conform to current Office of the Federal Register standards for the
listing of definitions in 10 CFR Chapter 1. The paragraph designations
are removed and the definitions in the section are presented in
alphabetical order.
Section 150.17--Submission to Commission of Source Material Reports
This section is revised to reflect a change from a requirement to
report source material of foreign origin to reporting source material
with foreign obligations. This section is also revised to require the
reporting of exports of 1 kilogram or more of source material. This
amendment makes Part 150 consistent with Part 40, which already
requires the reporting of such exports. In addition, this section is
revised to allow licensees to submit their yearly inventory statement
of source material with foreign obligations with the licensee's
material status reports on special nuclear material, providing more
flexibility to licensees.
Procedural Background
Because the NRC considers this action to be noncontroversial and
because it is necessary in order to support the U.S. Government's
obligations in this area, the NRC is using the direct final rule
process for this rule. The amendments to the rule will become effective
on October 1, 2003. However, if the NRC receives significant adverse
comments on this direct final rule by April 4, 2003, then the NRC will
publish a document that withdraws this action and will subsequently
address the comments received in a final rule as a response to the
companion proposed rule published elsewhere in this Federal Register.
Absent significant modifications to the proposed revisions requiring
republication, the NRC will not initiate a second comment period on
this action.
A significant adverse comment is a comment where the commenter
explains why the rule would be inappropriate, including challenges to
the rule's underlying premise or approach, or would be ineffective or
unacceptable without a change. A comment is adverse and significant if:
(1) The comment opposes the rule and provides a reason sufficient
to require a substantive response in a notice-and-comment process. For
example, a substantive response is required when:
(a) The comment causes the NRC staff to reevaluate (or reconsider)
its position or conduct additional analysis;
(b) The comment raises an issue serious enough to warrant a
substantive response to clarify or complete the record; or
(c) The comment raises a relevant issue that was not previously
addressed or considered by the NRC staff.
(2) The comment proposes a change or an addition to the rule, and
it is apparent that the rule would be ineffective or unacceptable
without incorporation of the change or addition.
(3) The comment causes the staff to make a change (other than
editorial) to the rule.
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), this rule is classified as Compatibility Category ``NRC.''
Compatibility is not required for Category ``NRC'' regulations. The NRC
program elements in this category are those that relate directly to
areas of regulation reserved to the NRC by the Atomic Energy Act of
1954, as amended, or the provisions of Title 10 of the Code of Federal
Regulations. 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 direct final
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 direct final rule, the NRC is revising the
reporting requirements for source material, using as the basis of the
requirement whether the material has
[[Page 10364]]
foreign obligations rather than the foreign origin of the material.
This action does not constitute the establishment of a standard that
establishes generally applicable requirements.
Environmental Impact: Categorical Exclusion
The NRC has determined that this direct final rule is the type of
action described in categorical exclusion 10 CFR 51.22(c)(1), (c)(2),
and (c)(3); therefore, neither an environmental impact statement nor an
environmental assessment has been prepared for this direct final rule.
Paperwork Reduction Act Statement
This direct final rule decreases the burden on licensees to report
the transfer, import, or export of foreign origin source material (NRC
Form 741, OMB Approval Number 3150-0003) by reducing the number of
responses by 855 for an annual burden reduction of 641 hours (855
responses x 0.75 hrs per response). Because the burden for this direct
final rule is insignificant, Office of Management and Budget (OMB)
clearance is not required. Existing requirements were approved by the
Office of Management and Budget, approval numbers 3150-0020, -0032, and
-003.
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
request unless the requesting document displays a currently valid OMB
control number.
Regulatory Analysis
A regulatory analysis has not been prepared for this regulation.
The information reported is necessary to satisfy U.S. Government
obligations under nuclear agreements for cooperation. Because not all
foreign origin source material has associated foreign obligations, the
rule may result in an insignificant decrease in regulatory burden on
licensees. DOE/NRC Form-741 is used for the Nuclear Material
Transaction Reports required by Parts 40 and 150. Approximately 36,500
DOE/NRC Form-741s are filed each year. Two NRC licensees submit the
majority of the reports documenting the transfer, import, or export of
foreign origin source material. These licensees have indicated that
approximately 855 fewer reports will be required if the reporting
requirement is changed to report only foreign obligation source
material. The burden associated with each report is 0.75 hours for a
total burden reduction of 641 hours.
The U.S. Government is required to report to IAEA the export of 1
kg or more of source material. The inclusion of Agreement State
licensee reporting requirements for exports of 1 kg or more of source
material should result in an insignificant increase in regulatory
burden to licensees. Based on current information for the last 6 years,
only 1 Agreement State licensee has exported source material of 1 kg or
more. This licensee actually submitted a DOE/NRC Form-741 for its
exports.
Regulatory Flexibility Certification
In accordance with the Regulatory Flexibility Act of 1980 (5 U.S.C.
605(b)), the NRC certifies that this rule does not have a significant
economic impact on a substantial number of small entities. This rule is
necessary to reflect the nuclear non-proliferation policies of the
Executive branch and U.S. Government obligations under nuclear
agreements for cooperation.
Backfit Analysis
The NRC has determined that the backfit rule (Sec. Sec. 50.109,
70.76, 72.62, or 76.76) does not apply to this direct final rule
because this amendment does not involve any provisions that would
impose backfits as defined in 10 CFR chapter I. Therefore, a backfit
analysis is not required.
Small Business Regulatory Enforcement Fairness Act
In accordance with the Small Business Regulatory Enforcement
Fairness Act of 1996, the NRC has determined that this action is not a
major rule and has verified this determination with the Office of
Information and Regulatory Affairs, Office of Management and Budget.
List of Subjects
10 CFR Part 40
Criminal penalties, Government contracts, Hazardous materials
transportation, Nuclear materials, Reporting and recordkeeping
requirements, Source material, Uranium.
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. 552 and 553; the NRC is adopting
the following amendments to 10 CFR parts 40 and 150.
PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL
1. 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, 92 Stat. 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).
2. In Sec. 40.4, the definition of Foreign obligations is added to
read as follows:
Sec. 40.4 Definitions.
* * * * *
Foreign obligations means the commitments entered into by the U.S.
Government under Atomic Energy Act (AEA) section 123 agreements for
cooperation in the peaceful uses of atomic energy. Imports and exports
of material or equipment pursuant to such agreements are subject to
these commitments, which in some cases involve an exchange of
information on imports, exports, retransfers with foreign governments,
peaceful end-use assurances, and other conditions placed on the
transfer of the material or equipment. The U.S. Government informs the
licensee of obligations attached to material.
* * * * *
3. In Sec. 40.64, paragraphs (a) and (b) are revised to read as
follows:
Sec. 40.64 Reports.
(a) Except as specified in paragraphs (d) and (e) of this section,
each specific licensee who transfers, receives, or adjusts the
inventory, in any manner, of uranium or thorium source material with
foreign obligations by 1 kilogram or more or who imports or exports 1
[[Page 10365]]
kilogram of uranium or thorium source material shall complete a Nuclear
Material Transaction Report in computer-readable format in accordance
with instructions (NUREG/BR-0006 and NMMSS Report D-24, ``Personal
Computer Data Input for NRC Licensees''). Copies of the instructions
may be obtained from the U.S. Nuclear Regulatory Commission, Division
of Nuclear Safety, Washington, DC 20555-0001. Each licensee who
transfers the material shall submit a Nuclear Material Transaction
Report in computer-readable format in accordance with instructions no
later than the close of business the next working day. Each licensee
who receives the material shall submit a Nuclear Material Transaction
Report in computer-readable format in accordance with instructions
within ten (10) days after the material is received. The Commission's
copy of the report must be submitted to the address specified in the
instructions. These prescribed computer-readable forms replace the DOE/
NRC Form 741 which has been previously submitted in paper form.
(b) Except as specified in paragraphs (d) and (e) of this section,
each licensee authorized to possess at any one time and location more
than 1,000 kilograms of uranium or thorium, or any combination of
uranium or thorium, shall submit to the Commission within 30 days after
September 30 of each year or with the licensee's material status
reports on special nuclear material filed under part 72 or 74, a
statement of its source material inventory with foreign obligations as
defined in this part. This statement must be submitted to the address
specified in the reporting instructions (NUREG/BR-0007), and include
the Reporting Identification Symbol (RIS) assigned by the Commission to
the licensee. Copies of the reporting instructions may be obtained from
the U.S. Nuclear Regulatory Commission, Division of Nuclear Security,
Washington, DC 20555-0001.
* * * * *
PART 150--EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN
AGREEMENT STATES AND IN OFFSHORE WATERS UNDER SECTION 274
4. 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).
5. In Sec. 150.3, the paragraph designations are removed, the
definitions are arranged in alphabetical order, and the definition of
Foreign obligations is added to read as follows:
Sec. 150.3 Definitions.
* * * * *
Foreign obligations means the commitments entered into by the U.S.
Government under Atomic Energy Act (AEA) section 123 agreements for
cooperation in the peaceful uses of atomic energy. Imports and exports
of material or equipment pursuant to such agreements are subject to
these commitments, which in some cases involve an exchange of
information on imports, exports, retransfers with foreign governments,
peaceful end-use assurances, and other conditions placed on the
transfer of the material or equipment. The U.S. Government informs the
licensee of obligations attached to material.
* * * * *
6. In Sec. 150.17, paragraphs (a) and (b) are revised to read as
follows:
Sec. 150.17 Submission to Commission of source material reports.
(a) Except as specified in paragraph (d) of this section and Sec.
150.17a, each person who, pursuant to an Agreement State specific
license, transfers or receives or adjusts the inventory in any manner
by 1 kilogram or more of uranium or thorium source material with
foreign obligations or who imports or exports 1 kilogram or more of
uranium or thorium source material shall complete and submit in
computer-readable format Nuclear Material Transaction Reports in
accordance with instructions (NUREG/BR-0006 and NMMSS Report D-24,
``Personal Computer Data Input for NRC Licensees''). Copies of the
instructions may be obtained from the U.S. Nuclear Regulatory
Commission, Division of Nuclear Security, Washington, DC 20555-0001.
Each person who transfers the material shall submit a Nuclear Material
Transaction Report in computer-readable format in accordance with
instructions no later than the close of business the next working day.
Each person who receives the material shall submit a Nuclear Material
Transaction Report in computer-readable format in accordance with
instructions within ten (10) days after the material is received. The
Commission's copy of the report must be submitted to the address
specified in the instructions. These prescribed computer-readable forms
replace the DOE/NRC Form 741 which has been previously submitted in
paper form.
(b) Except as specified in paragraph (d) of this section and Sec.
150.17a, each person authorized to possess at any one time and
location, under an Agreement State license, more than 1,000 kilograms
of uranium or thorium, or any combination of uranium or thorium, shall
submit to the Commission within 30 days after September 30 of each year
or with the licensee's material status reports on special nuclear
material filed under part 74, a statement of the licensee's source
material inventory with foreign obligations as defined in this part.
This statement must be submitted to the address specified in the
reporting instructions (NUREG/BR-0007), and include the Reporting
Identification Symbol (RIS) assigned by the Commission to the licensee.
Copies of the reporting instructions may be obtained from the U.S.
Nuclear Regulatory Commission, Division of Nuclear Security,
Washington, DC 20555-0001.
* * * * *
Dated at Rockville, Maryland, this 21st day of February, 2003.
For the Nuclear Regulatory Commission.
William D. Travers,
Executive Director for Operations.
[FR Doc. 03-5168 Filed 3-4-03; 8:45 am]
BILLING CODE 7590-01-P