[Code of Federal Regulations]
[Title 10, Volume 1]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 10CFR50.54]

[Page 718-727]
 
                            TITLE 10--ENERGY
 
                CHAPTER I--NUCLEAR REGULATORY COMMISSION
 
PART 50--DOMESTIC LICENSING OF PRODUCTION AND UTILIZATION FACILITIES--Table of Contents
 
Sec. 50.54  Conditions of licenses.

    Whether stated therein or not, the following shall be deemed 
conditions in every license issued:
    (a)(1) Each nuclear power plant or fuel reprocessing plant licensee 
subject to the quality assurance criteria in appendix B of this part 
shall implement, pursuant to Sec. 50.34(b)(6)(ii) of this part, the 
quality assurance program described or referenced in the Safety Analysis 
Report, including changes to that report.
    (2) Each licensee described in paragraph (a)(1) of this section 
shall, by June 10, 1983, submit to the appropriate NRC Regional Office 
shown in appendix D of part 20 of this chapter the current description 
of the quality assurance program it is implementing for inclusion in the 
Safety Analysis Report, unless there are no changes to the description 
previously accepted by NRC. This submittal must identify changes made to 
the quality assurance program description since the description was 
submitted to NRC. (Should a licensee need additional time beyond June 
10, 1983 to submit its current quality assurance program description to 
NRC, it shall notify the appropriate NRC Regional Office in writing, 
explain why additional time is needed, and provide a schedule for NRC 
approval showing when its current quality assurance program description 
will be submitted.)
    (3) Each licensee described in paragraph (a)(1) of this section may 
make a change to a previously accepted quality assurance program 
description included or referenced in the Safety Analysis Report without 
prior NRC approval, provided the change does not reduce the commitments 
in the program description as accepted by the NRC. Changes to the 
quality assurance program description that do not reduce the commitments 
must be submitted to the NRC in accordance with the requirements of 
Sec. 50.71(e). In addition to quality assurance program changes 
involving administrative improvements and clarifications, spelling 
corrections, punctuation, or editorial items, the following changes are 
not considered to be reductions in commitment:
    (i) The use of a QA standard approved by the NRC which is more 
recent than the QA standard in the licensee's current QA program at the 
time of the change;
    (ii) The use of a quality assurance alternative or exception 
approved by an NRC safety evaluation, provided that the bases of the NRC 
approval are applicable to the licensee's facility;
    (iii) The use of generic organizational position titles that clearly 
denote the position function, supplemented as necessary by descriptive 
text, rather than specific titles;
    (iv) The use of generic organizational charts to indicate functional 
relationships, authorities, and responsibilities, or, alternately, the 
use of descriptive text;
    (v) The elimination of quality assurance program information that 
duplicates language in quality assurance regulatory guides and quality 
assurance standards to which the licensee is committed; and

[[Page 719]]

    (vi) Organizational revisions that ensure that persons and 
organizations performing quality assurance functions continue to have 
the requisite authority and organizational freedom, including sufficient 
independence from cost and schedule when opposed to safety 
considerations.
    (4) Changes to the quality assurance program description that do 
reduce the commitments must be submitted to the NRC and receive NRC 
approval prior to implementation, as follows:
    (i) Changes made to the quality assurance program description as 
presented in the Safety Analysis Report or in a topical report must be 
submitted as specified in Sec. 50.4.
    (ii) The submittal of a change to the Safety Analysis Report quality 
assurance program description must include all pages affected by that 
change and must be accompanied by a forwarding letter identifying the 
change, the reason for the change, and the basis for concluding that the 
revised program incorporating the change continues to satisfy the 
criteria of appendix B of this part and the Safety Analysis Report 
quality assurance program description commitments previously accepted by 
the NRC (the letter need not provide the basis for changes that correct 
spelling, punctuation, or editorial items).
    (iii) A copy of the forwarding letter identifying the change must be 
maintained as a facility record for three years.
    (iv) Changes to the quality assurance program description included 
or referenced in the Safety Analysis Report shall be regarded as 
accepted by the Commission upon receipt of a letter to this effect from 
the appropriate reviewing office of the Commission or 60 days after 
submittal to the Commission, whichever occurs first.
    (b) No right to the special nuclear material shall be conferred by 
the license except as may be defined by the license.
    (c) Neither the license, nor any right thereunder, nor any right to 
utilize or produce special nuclear material shall be transferred, 
assigned, or disposed of in any manner, either voluntarily or 
involuntarily, directly or indirectly, through transfer of control of 
the license to any person, unless the Commission shall, after securing 
full information, find that the transfer is in accordance with the 
provisions of the act and give its consent in writing.
    (d) The license shall be subject to suspension and to the rights of 
recapture of the material or control of the facility reserved to the 
Commission under section 108 of the act in a state of war or national 
emergency declared by Congress.
    (e) The license shall be subject to revocation, suspension, 
modification, or amendment for cause as provided in the act and 
regulations, in accordance with the procedures provided by the act and 
regulations.
    (f) The licensee shall at any time before expiration of the license, 
upon request of the Commission, submit, as specified in Sec. 50.4, 
written statements, signed under oath or affirmation, to enable the 
Commission to determine whether or not the license should be modified, 
suspended, or revoked. Except for information sought to verify licensee 
compliance with the current licensing basis for that facility, the NRC 
must prepare the reason or reasons for each information request prior to 
issuance to ensure that the burden to be imposed on respondents is 
justified in view of the potential safety significance of the issue to 
be addressed in the requested information. Each such justification 
provided for an evaluation performed by the NRC staff must be approved 
by the Executive Director for Operations or his or her designee prior to 
issuance of the request.
    (g) The issuance or existence of the license shall not be deemed to 
waive, or relieve the licensee from compliance with, the antitrust laws, 
as specified in subsection 105a of the Act. In the event that the 
licensee should be found by a court of competent jurisdiction to have 
violated any provision of such antitrust laws in the conduct of the 
licensed activity, the Commission may suspend or revoke the license or 
take such other action with respect to it as shall be deemed necessary.
    (h) The license shall be subject to the provisions of the Act now or 
hereafter in effect and to all rules, regulations, and orders of the 
Commission. The terms and conditions of the license

[[Page 720]]

shall be subject to amendment, revision, or modification, by reason of 
amendments of the Act or by reason of rules, regulations, and orders 
issued in accordance with the terms of the act.
    (i) Except as provided in Sec. 55.13 of this chapter, the licensee 
may not permit the manipulation of the controls of any facility by 
anyone who is not a licensed operator or senior operator as provided in 
part 55 of this chapter.
    (i-1) Within three months after issuance of an operating license, 
the licensee shall have in effect an operator requalification program 
which must as a minimum, meet the requirements of Sec. 55.59(c) of this 
chapter. Notwithstanding the provisions of Sec. 50.59, the licensee may 
not, except as specifically authorized by the Commission decrease the 
scope of an approved operator requalification program.
    (j) Apparatus and mechanisms other than controls, the operation of 
which may affect the reactivity or power level of a reactor shall be 
manipulated only with the knowledge and consent of an operator or senior 
operator licensed pursuant to part 55 of this chapter present at the 
controls.
    (k) An operator or senior operator licensed pursuant to part 55 of 
this chapter shall be present at the controls at all times during the 
operation of the facility.
    (l) The licensee shall designate individuals to be responsible for 
directing the licensed activities of licensed operators. These 
individuals shall be licensed as senior operators pursuant to part 55 of 
this chapter.
    (m)(1) A senior operator licensed pursuant to part 55 of this 
chapter shall be present at the facility or readily available on call at 
all times during its operation, and shall be present at the facility 
during initial start-up and approach to power, recovery from an 
unplanned or unscheduled shut-down or significant reduction in power, 
and refueling, or as otherwise prescribed in the facility license.
    (2) Notwithstanding any other provisions of this section, by January 
1, 1984, licensees of nuclear power units shall meet the following 
requirements:
    (i) Each licensee shall meet the minimum licensed operator staffing 
requirements in the following table:

Minimum Requirements \1\ Per Shift for On-Site Staffing of Nuclear Power Units by Operators and Senior Operators
                                          Licensed Under 10 CFR Part 55
----------------------------------------------------------------------------------------------------------------
                                                                One unit       Two units          Three units
                                                               -------------------------------------------------
    Number of nuclear power units              Position            One       One       Two       Two      Three
            operating \2\                                        control   control   control   control   control
                                                                  room      room      rooms     rooms     rooms
----------------------------------------------------------------------------------------------------------------
None.................................  Senior Operator........         1         1         1         1         1
                                       Operator...............         1         2         2         3         3
One..................................  Senior Operator........         2         2         2         2         2
                                       Operator...............         2         3         3         4         4
Two..................................  Senior Operator........  ........         2         3     \3\ 3         3
                                       Operator...............  ........         3         4     \3\ 5         5
Three................................  Senior Operator........  ........  ........  ........         3         4
                                       Operator...............  ........  ........  ........         5         6
----------------------------------------------------------------------------------------------------------------
\1\ Temporary deviations from the numbers required by this table shall be in accordance with criteria
  established in the unit's technical specifications.
\2\ For the purpose of this table, a nuclear power unit is considered to be operating when it is in a mode other
  than cold shutdown or refueling as defined by the unit's technical specifications.
\3\ The number of required licensed personnel when the operating nuclear power units are controlled from a
  common control room are two senior operators and four operators.

    (ii) Each licensee shall have at its site a person holding a senior 
operator license for all fueled units at the site who is assigned 
responsibility for overall plant operation at all times there is fuel in 
any unit. If a single senior operator does not hold a senior operator 
license on all fueled units at the site, then the licensee must have at 
the site two or more senior operators, who in combination are licensed 
as senior operators on all fueled units.
    (iii) When a nuclear power unit is in an operational mode other than 
cold shutdown or refueling, as defined by the unit's technical 
specifications,

[[Page 721]]

each licensee shall have a person holding a senior operator license for 
the nuclear power unit in the control room at all times. In addition to 
this senior operator, for each fueled nuclear power unit, a licensed 
operator or senior operator shall be present at the controls at all 
times.
    (iv) Each licensee shall have present, during alteration of the core 
of a nuclear power unit (including fuel loading or transfer), a person 
holding a senior operator license or a senior operator license limited 
to fuel handling to directly supervise the activity and, during this 
time, the licensee shall not assign other duties to this person.
    (3) Licensees who cannot meet the January 1, 1984 deadline must 
submit by October 1, 1983 a request for an extension to the Director of 
the Office of Nuclear Regulation and demonstrate good cause for the 
request.
    (n) The licensee shall not, except as authorized pursuant to a 
construction permit, make any alteration in the facility constituting a 
change from the technical specifications previously incorporated in a 
license or construction permit pursuant to Sec. 50.36 of this part.
    (o) Primary reactor containments for water cooled power reactors, 
other than facilities for which the certifications required under 
Sec. 50.82(a)(1) have been submitted, shall be subject to the 
requirements set forth in appendix J to this part.
    (p)(1) The licensee shall prepare and maintain safeguards 
contingency plan procedures in accordance with appendix C of part 73 of 
this chapter for effecting the actions and decisions contained in the 
Responsibility Matrix of the safeguards contingency plan. The licensee 
may make no change which would decrease the effectiveness of a security 
plan, or guard training and qualification plan, prepared pursuant to 
Sec. 50.34(c) or part 73 of this chapter, or of the first four 
categories of information (Background, Generic Planning Base, Licensee 
Planning Base, Responsibility Matrix) contained in a licensee safeguards 
contingency plan prepared pursuant to Sec. 50.34(d) or part 73 of this 
chapter, as applicable, without prior approval of the Commission. A 
licensee desiring to make such a change shall submit an application for 
an amendment to the licensee's license pursuant to Sec. 50.90.
    (2) The licensee may make changes to the plans referenced in 
paragraph (p)(1) of this section, without prior Commission approval if 
the changes do not decrease the safeguards effectiveness of the plan. 
The licensee shall maintain records of changes to the plans made without 
prior Commission approval for a period of three years from the date of 
the change, and shall submit, as specified in Sec. 50.4, a report 
containing a description of each change within two months after the 
change is made. Prior to the safeguards contingency plan being put into 
effect, the licensee shall have:
    (i) All safeguards capabilities specified in the safeguards 
contingency plan available and functional,
    (ii) Detailed procedures developed according to appendix C to part 
73 available at the licensee's site, and
    (iii) All appropriate personnel trained to respond to safeguards 
incidents as outlined in the plan and specified in the detailed 
procedures.
    (3) The licensee shall provide for the development, revision, 
implementation, and maintenance of its safeguards contingency plan. The 
licensee shall ensure that all program elements are reviewed by 
individuals independent of both security program management and 
personnel who have direct responsibility for implementation of the 
security program either:
    (i) At intervals not to exceed 12 months, or
    (ii) As necessary, based on an assessment by the licensee against 
performance indicators, and as soon as reasonably practicable after a 
change occurs in personnel, procedures, equipment, or facilities that 
potentially could adversely affect security, but no longer than 12 
months after the change. In any case, all elements of the safeguards 
contingency plan must be reviewed at least once every 24 months.
    (4) The review must include a review and audit of safeguards 
contingency procedures and practices, an audit of the security system 
testing and maintenance program, and a test of the safeguards systems 
along with commitments established for response by local

[[Page 722]]

law enforcement authorities. The results of the review and audit, along 
with recommendations for improvements, must be documented, reported to 
the licensee's corporate and plant management, and kept available at the 
plant for inspection for a period of 3 years.
    (q) A licensee authorized to possess and operate a nuclear power 
reactor shall follow and maintain in effect emergency plans which meet 
the standards in Sec. 50.47(b) and the requirements in appendix E of 
this part. A licensee authorized to possess and/or operate a research 
reactor or a fuel facility shall follow and maintain in effect emergency 
plans which meet the requirements in appendix E to this part. The 
licensee shall retain the emergency plan and each change that decreases 
the effectiveness of the plan as a record until the Commission 
terminates the license for the nuclear power reactor. The nuclear power 
reactor licensee may make changes to these plans without Commission 
approval only if the changes do not decrease the effectiveness of the 
plans and the plans, as changed, continue to meet the standards of 
Sec. 50.47(b) and the requirements of appendix E to this part. The 
research reactor and/or the fuel facility licensee may make changes to 
these plans without Commission approval only if these changes do not 
decrease the effectiveness of the plans and the plans, as changed, 
continue to meet the requirements of appendix E to this part. This 
nuclear power reactor, research reactor, or fuel facility licensee shall 
retain a record of each change to the emergency plan made without prior 
Commission approval for a period of three years from the date of the 
change. Proposed changes that decrease the effectiveness of the approved 
emergency plans may not be implemented without application to and 
approval by the Commission. The licensee shall submit, as specified in 
Sec. 50.4, a report of each proposed change for approval. If a change is 
made without approval, the licensee shall submit, as specified in 
Sec. 50.4, a report of each change within 30 days after the change is 
made.
    (r) Each licensee who is authorized to possess and/or operate a 
research or test reactor facility with an authorized power level greater 
than or equal to 2 MW thermal, under a licensee of the type specified in 
Sec. 50.21(c), shall submit emergency plans complying with 10 CFR part 
50, appendix E, to the Director of the Office of Nuclear Reactor 
Regulation for approval by September 7, 1982. Each licensee who is 
authorized to possess and/or operate a research or test reactor facility 
with an authorized power level less than 2 MW thermal, under a license 
of the type specified in Sec. 50.21(c), shall submit emergency plans 
complying with 10 CFR part 50, appendix E, to the Director of the Office 
of Nuclear Reactor Regulation for approval by November 3, 1982.
    (s)(1) Each licensee who is authorized to possess and/or operate a 
nuclear power reactor shall submit to NRC within 60 days of the 
effective date of this amendment the radiological emergency response 
plans of State and local governmental entities in the United States that 
are wholly or partially within a plume exposure pathway EPZ, as well as 
the plans of State governments wholly or partially within an ingestion 
pathway EPZ. \1, 2\ Ten (10) copies of the above plans shall be 
forwarded to the Director of Nuclear Reactor Regulation with 3 copies to 
the Administrator of the appropriate NRC regional office. Generally, the 
plume exposure pathway EPZ for nuclear power reactors shall consist of 
an area about 10 miles (16 km) in radius and the ingestion pathway EPZ 
shall consist of an area about 50 miles (80 km) in radius. The exact 
size and configuration of the EPZs for a particular nuclear power 
reactor shall be determined in relation to local emergency response 
needs and capabilities as they

[[Page 723]]

are affected by such conditions as demography, topography, land 
characteristics, access routes, and jurisdictional boundaries. The size 
of the EPZs also may be determined on a case-by-case basis for gas-
cooled nuclear reactors and for reactors with an authorized power level 
less than 250 MW thermal. The plans for the ingestion pathway EPZ shall 
focus on such actions as are appropriate to protect the food ingestion 
pathway.
---------------------------------------------------------------------------

    \1\ Emergency Planning Zones (EPZs) are discussed in NUREG-0396; EPA 
520/1-78-016, ``Planning Basis for the Development of State and Local 
Government Radiological Emergency Response Plans in Support of Light 
Water Nuclear Power Plants,'' December 1978.
    \2\ If the State and local emergency response plans have been 
previously provided to the NRC for inclusion in the facility docket, the 
applicant need only provide the appropriate reference to meet this 
requirement.
---------------------------------------------------------------------------

    (2)(i) For operating power reactors, the licensee, State, and local 
emergency response plans shall be implemented by April 1, 1981, except 
as provided in section IV.D.3 of appendix E to this part.
    (ii) If after April 1, 1981, the NRC finds that the state of 
emergency preparedness does not provide reasonable assurance that 
adequate protective measures can and will be taken in the event of a 
radiological emergency (including findings based on requirements of 
appendix E, section IV.D.3) and if the deficiencies (including 
deficiencies based on requirements of appendix E, section IV.D.3) are 
not corrected within four months of that finding, the Commission will 
determine whether the reactor shall be shut down until such deficiencies 
are remedied or whether other enforcement action is appropriate. In 
determining whether a shutdown or other enforcement action is 
appropriate, the Commission shall take into account, among other 
factors, whether the licensee can demonstrate to the Commission's 
satisfaction that the deficiencies in the plan are not significant for 
the plant in question, or that adequate interim compensating actions 
have been or will be taken promptly, or that that there are other 
compelling reasons for continued operation.
    (3) The NRC will base its finding on a review of the FEMA findings 
and determinations as to whether State and local emergency plans are 
adequate and capable of being implemented, and on the NRC assessment as 
to whether the licensee's emergency plans are adequate and capable of 
being implemented. Nothing in this paragraph shall be construed as 
limiting the authority of the Commission to take action under any other 
regulation or authority of the Commission or at any time other than that 
specified in this paragraph.
    (t)(1) The licensee shall provide for the development, revision, 
implementation, and maintenance of its emergency preparedness program. 
The licensee shall ensure that all program elements are reviewed by 
persons who have no direct responsibility for the implementation of the 
emergency preparedness program either:
    (i) At intervals not to exceed 12 months or,
    (ii) As necessary, based on an assessment by the licensee against 
performance indicators, and as soon as reasonably practicable after a 
change occurs in personnel, procedures, equipment, or facilities that 
potentially could adversely affect emergency preparedness, but no longer 
than 12 months after the change. In any case, all elements of the 
emergency preparedness program must be reviewed at least once every 24 
months.
    (2) The review must include an evaluation for adequacy of interfaces 
with State and local governments and of licensee drills, exercises, 
capabilities, and procedures. The results of the review, along with 
recommendations for improvements, must be documented, reported to the 
licensee's corporate and plant management, and retained for a period of 
5 years. The part of the review involving the evaluation for adequacy of 
interface with State and local governments must be available to the 
appropriate State and local governments.
    (u) Within 60 days after the effective date of this amendment, each 
nuclear power reactor licensee shall submit to the NRC plans for coping 
with emergencies that meet standards in Sec. 50.47(b) and the 
requirements of appendix E to this part.
    (v) Each licensee subject to the requirements of part 73 of this 
chapter shall ensure that physical security, safeguards contingency and 
guard qualification and training plans and other related Safeguards 
Information are protected against unauthorized disclosure in accordance 
with the requirements of Sec. 73.21 of this chapter, as appropriate.

[[Page 724]]

    (w) Each power reactor licensee under this part for a production or 
utilization facility of the type described in Sec. 50.21(b) or 
Sec. 50.22 shall take reasonable steps to obtain insurance available at 
reasonable costs and on reasonable terms from private sources or to 
demonstrate to the satisfaction of the NRC that it possesses an 
equivalent amount of protection covering the licensee's obligation, in 
the event of an accident at the licensee's reactor, to stabilize and 
decontaminate the reactor and the reactor station site at which the 
reactor experiencing the accident is located, provided that:
    (1) The insurance required by paragraph (w) of this section must 
have a minimum coverage limit for each reactor station site of either 
$1.06 billion or whatever amount of insurance is generally available 
from private sources, whichever is less. The required insurance must 
clearly state that, as and to the extent provided in paragraph (w)(4) of 
this section, any proceeds must be payable first for stabilization of 
the reactor and next for decontamination of the reactor and the reactor 
station site. If a licensee's coverage falls below the required minimum, 
the licensee shall within 60 days take all reasonable steps to restore 
its coverage to the required minimum. The required insurance may, at the 
option of the licensee, be included within policies that also provide 
coverage for other risks, including, but not limited to, the risk of 
direct physical damage.
    (2)(i) With respect to policies issued or annually renewed on or 
after April 2, 1991, the proceeds of such required insurance must be 
dedicated, as and to the extent provided in this paragraph, to 
reimbursement or payment on behalf of the insured of reasonable expenses 
incurred or estimated to be incurred by the licensee in taking action to 
fulfill the licensee's obligation, in the event of an accident at the 
licensee's reactor, to ensure that the reactor is in, or is returned to, 
and maintained in, a safe and stable condition and that radioactive 
contamination is removed or controlled such that personnel exposures are 
consistent with the occupational exposure limits in 10 CFR part 20. 
These actions must be consistent with any other obligation the licensee 
may have under this chapter and must be subject to paragraph (w)(4) of 
this section. As used in this section, an ``accident'' means an event 
that involves the release of radioactive material from its intended 
place of confinement within the reactor or on the reactor station site 
such that there is a present danger of release off site in amounts that 
would pose a threat to the public health and safety.
    (ii) The stabilization and decontamination requirements set forth in 
paragraph (w)(4) of this section must apply uniformly to all insurance 
policies required under paragraph (w) of this section.
    (3) The licensee shall report to the NRC on April 1 of each year the 
current levels of this insurance or financial security it maintains and 
the sources of this insurance or financial security.
    (4)(i) In the event of an accident at the licensee's reactor, 
whenever the estimated costs of stabilizing the licensed reactor and of 
decontaminating the reactor and the reactor station site exceed $100 
million, the proceeds of the insurance required by paragraph (w) of this 
section must be dedicated to and used, first, to ensure that the 
licensed reactor is in, or is returned to, and can be maintained in, a 
safe and stable condition so as to prevent any significant risk to the 
public health and safety and, second, to decontaminate the reactor and 
the reactor station site in accordance with the licensee's cleanup plan 
as approved by order of the Director of the Office of Nuclear Reactor 
Regulation. This priority on insurance proceeds must remain in effect 
for 60 days or, upon order of the Director, for such longer periods, in 
increments not to exceed 60 days except as provided for activities under 
the cleanup plan required in paragraphs (w)(4)(iii) and (w)(4)(iv) of 
this section, as the Director may find necessary to protect the public 
health and safety. Actions needed to bring the reactor to and maintain 
the reactor in a safe and stable condition may include one or more of 
the following, as appropriate:
    (A) Shutdown of the reactor;
    (B) Establishment and maintenance of long-term cooling with stable 
decay heat removal;

[[Page 725]]

    (C) Maintenance of sub-criticality;
    (D) Control of radioactive releases; and
    (E) Securing of structures, systems, or components to minimize 
radiation exposure to onsite personnel or to the offsite public or to 
facilitate later decontamination or both.
    (ii) The licensee shall inform the Director of the Office of Nuclear 
Reactor Regulation in writing when the reactor is and can be maintained 
in a safe and stable condition so as to prevent any significant risk to 
the public health and safety. Within 30 days after the licensee informs 
the Director that the reactor is in this condition, or at such earlier 
time as the licensee may elect or the Director may for good cause 
direct, the licensee shall prepare and submit a cleanup plan for the 
Director's approval. The cleanup plan must identify and contain an 
estimate of the cost of each cleanup operation that will be required to 
decontaminate the reactor sufficiently to permit the licensee either to 
resume operation of the reactor or to apply to the Commission under 
Sec. 50.82 for authority to decommission the reactor and to surrender 
the license voluntarily. Cleanup operations may include one or more of 
the following, as appropriate:
    (A) Processing any contaminated water generated by the accident and 
by decontamination operations to remove radioactive materials;
    (B) Decontamination of surfaces inside the auxiliary and fuel-
handling buildings and the reactor building to levels consistent with 
the Commission's occupational exposure limits in 10 CFR part 20, and 
decontamination or disposal of equipment;
    (C) Decontamination or removal and disposal of internal parts and 
damaged fuel from the reactor vessel; and
    (D) Cleanup of the reactor coolant system.
    (iii) Following review of the licensee's cleanup plan, the Director 
will order the licensee to complete all operations that the Director 
finds are necessary to decontaminate the reactor sufficiently to permit 
the licensee either to resume operation of the reactor or to apply to 
the Commission under Sec. 50.82 for authority to decommission the 
reactor and to surrender the license voluntarily. The Director shall 
approve or disapprove, in whole or in part for stated reasons, the 
licensee's estimate of cleanup costs for such operations. Such order may 
not be effective for more than 1 year, at which time it may be renewed. 
Each subsequent renewal order, if imposed, may be effective for not more 
than 6 months.
    (iv) Of the balance of the proceeds of the required insurance not 
already expended to place the reactor in a safe and stable condition 
pursuant to paragraph (w)(2)(i) of this section, an amount sufficient to 
cover the expenses of completion of those decontamination operations 
that are the subject of the Director's order shall be dedicated to such 
use, provided that, upon certification to the Director of the amounts 
expended previously and from time to time for stabilization and 
decontamination and upon further certification to the Director as to the 
sufficiency of the dedicated amount remaining, policies of insurance may 
provide for payment to the licensee or other loss payees of amounts not 
so dedicated, and the licensee may proceed to use in parallel (and not 
in preference thereto) any insurance proceeds not so dedicated for other 
purposes.
    (x) A licensee may take reasonable action that departs from a 
license condition or a technical specification (contained in a license 
issued under this part) in an emergency when this action is immediately 
needed to protect the public health and safety and no action consistent 
with license conditions and technical specifications that can provide 
adequate or equivalent protection is immediately apparent.
    (y) Licensee action permitted by paragraph (x) of this section shall 
be approved, as a minimum, by a licensed senior operator, or, at a 
nuclear power reactor facility for which the certifications required 
under Sec. 50.82(a)(1) have been submitted, by either a licensed senior 
operator or a certified fuel handler, prior to taking the action.
    (z) Each licensee with a utilization facility licensed pursuant to 
sections 103 or 104b. of the Act shall immediately notify the NRC 
Operations Center of the occurrence of any event specified in Sec. 50.72 
of this part.

[[Page 726]]

    (aa) The license shall be subject to all conditions deemed imposed 
as a matter of law by sections 401(a)(2) and 401(d) of the Federal Water 
Pollution Control Act, as amended (33 U.S.C.A. 1341 (a)(2) and (d).)
    (bb) For nuclear power reactors licensed by the NRC, the licensee 
shall, within 2 years following permanent cessation of operation of the 
reactor or 5 years before expiration of the reactor operating license, 
whichever occurs first, submit written notification to the Commission 
for its review and preliminary approval of the program by which the 
licensee intends to manage and provide funding for the management of all 
irradiated fuel at the reactor following permanent cessation of 
operation of the reactor until title to the irradiated fuel and 
possession of the fuel is transferred to the Secretary of Energy for its 
ultimate disposal in a repository. Licensees of nuclear power reactors 
that have permanently ceased operation by April 4, 1994 are required to 
submit such written notification by April 4, 1996. Final Commission 
review will be undertaken as part of any proceeding for continued 
licensing under part 50 or part 72 of this chapter. The licensee must 
demonstrate to NRC that the elected actions will be consistent with NRC 
requirements for licensed possession of irradiated nuclear fuel and that 
the actions will be implemented on a timely basis. Where implementation 
of such actions requires NRC authorizations, the licensee shall verify 
in the notification that submittals for such actions have been or will 
be made to NRC and shall identify them. A copy of the notification shall 
be retained by the licensee as a record until expiration of the reactor 
operating license. The licensee shall notify the NRC of any significant 
changes in the proposed waste management program as described in the 
initial notification.
    (cc)(1) Each licensee shall notify the appropriate NRC Regional 
Administrator, in writing, immediately following the filing of a 
voluntary or involuntary petition for bankruptcy under any chapter of 
title 11 (Bankruptcy) of the United States Code by or against:
    (i) The licensee;
    (ii) An entity (as that term is defined in 11 U.S.C. 101(14)) 
controlling the licensee or listing the license or licensee as property 
of the estate; or
    (iii) An affiliate (as that term is defined in 11 U.S.C. 101(2)) of 
the licensee.
    (2) This notification must indicate:
    (i) The bankruptcy court in which the petition for bankruptcy was 
filed; and
    (ii) The date of the filing of the petition.
    (dd) A licensee may take reasonable action that departs from a 
license condition or a technical specification (contained in a license 
issued under this part) in a national security emergency:
    (1) When this action is immediately needed to implement national 
security objectives as designated by the national command authority 
through the Commission, and
    (2) No action consistent with license conditions and technical 
specifications that can meet national security objectives is immediately 
apparent.

A national security emergency is established by a law enacted by the 
Congress or by an order or directive issued by the President pursuant to 
statutes or the Constitution of the United States. The authority under 
this paragraph must be exercised in accordance with law, including 
section 57e of the Act, and is in addition to the authority granted 
under paragraph (x) of this section, which remains in effect unless 
otherwise directed by the Commission during a national security 
emergency.
    (ee)(1) Each license issued under this part authorizing the 
possession of byproduct and special nuclear material produced in the 
operation of the licensed reactor includes, whether stated in the 
license or not, the authorization to receive back that same material, in 
the same or altered form or combined with byproduct or special nuclear 
material produced in the operation of another reactor of the same 
licensee located at that site, from a licensee of the Commission or an 
Agreement State, or from a non-licensed entity authorized to possess the 
material.
    (2) The authorizations in this subsection are subject to the same 
limitations and requirements applicable to the original possession of 
the material.

[[Page 727]]

    (3) This paragraph does not authorize the receipt of any material 
recovered from the reprocessing of irradiated fuel.
    (ff) For licensees of nuclear power plants that have implemented the 
earthquake engineering criteria in appendix S to this part, plant 
shutdown is required as provided in paragraph IV(a)(3) of appendix S to 
this part. Prior to resuming operations, the licensee shall demonstrate 
to the Commission that no functional damage has occurred to those 
features necessary for continued operation without undue risk to the 
health and safety of the public and the licensing basis is maintained.

[21 FR 355, Jan. 19, 1956]

    Editorial Note: For additional Federal Register citations affecting 
Sec. 50.54, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.