Timeliness in Decommissioning of Materials Facilities

NUCLEAR REGULATORY COMMISSION

10 CFR Parts 2, 30, 40, 70, and 72

RIN 3150-AD85

Timeliness in Decommissioning of Materials Facilities

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is amending its

regulations to require timely decontamination and decommissioning by

nuclear material licensees. These amendments establish specific time

periods for decommissioning unused portions of operating nuclear

materials facilities and for decommissioning the entire site upon

termination of operations. The rule is intended to reduce the potential

risk to public health and the environment from radioactive material

remaining for long periods of time at such facilities after licensed

activities have ceased.

EFFECTIVE DATE: August 15, 1994.

FOR FURTHER INFORMATION CONTACT: Mary L. Thomas, Office of Nuclear

Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC

20555, telephone (301) 415-6230.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background.

II. Need for a rule.

III. Summary of requirements and the resolution of comments on the

requirements.

IV. Other issues.

V. Enforcement.

VI. Agreement state compatibility.

VII. Implementation.

VIII. Finding of no significant environmental impact: Availability.

IX. Paperwork reduction act statement.

X. Regulatory analysis.

XI. Regulatory flexibility certification.

XII. Backfit analysis.

I. Background

In 1990, the NRC implemented the Site Decommissioning Management

Plan (SDMP) to identify and resolve issues associated with the timely

cleanup of a number of sites where buildings, soil, and ground water

are contaminated. The SDMP contaminated sites are symptomatic of the

need for definitive NRC regulations that specify acceptable time

periods for decommissioning nuclear material facilities when licensed

activities have ceased.

When decommissioning is delayed for long periods following

cessation of operations, there is a risk that safety practices may

become lax as key personnel relocate and management interest wanes. In

addition, bankruptcy, corporate takeover, or other unforeseen changes

in the company's financial status may complicate and perhaps further

delay decommissioning.

The NRC published a proposed rule addressing timeliness of

decommissioning for public comment in the Federal Register on January

13, 1993, (58 FR 4099). The public comment period for the proposed rule

expired on March 29, 1993. The NRC is issuing this final rule to

establish timeliness criteria for decommissioning nuclear materials

facilities to avoid future problems resulting from delayed actions on

the cleanup of contaminated inactive facilities and to avoid the

occurrence of difficulties associated with a case-by-case approach to

requiring timely decontamination and decommissioning.

II. Need for a Rule

The lack of definitive criteria as to when licensees should

commence and complete decommissioning their facilities has resulted in

instances where the NRC has had to issue orders to establish schedules

for timely decommissioning. Because timeliness in decommissioning is a

generic issue, the NRC is amending its regulations to clearly delineate

the licensee's responsibility for timely decommissioning.

In developing details of these requirements, the NRC considered

whether to impose them on all licensees, or to limit the requirements

only to those licensees who, because of the size of their operations,

had greater potential for needing significant cleanup before their

sites could be fully decommissioned; i.e., those licensees covered by

the financial assurance requirements for decommissioning in 10 CFR

30.35, 40.36, 70.25, and 72.30. Because the regulatory problems in

delaying decommissioning apply to all licensees, regardless of size,

the NRC has determined that the provisions of the rule should apply to

all 10 CFR Parts 30, 40, 70, and 72 licensees.

Under existing regulations in, Sec. 72.42(b), ISFSI and MRS

licensees are required to file applications for renewal of their

licenses at least 2 years prior to expiration of the existing license.

This final rule requires licensees to notify the NRC (at least 2 years

prior to license expiration) if an application for renewal will not be

filed. The notification requirement, coupled with the 12-month time

period for preparation of the final decommissioning plan, is equivalent

to the current requirement in Sec. 72.54(a) for submittal of a plan 1

year before expiration of the license. This requirement also has the

effect of clearly documenting the licensee's decision on the future of

the site 2 years before license termination.

This final rule does not define radiological criteria for release

for unrestricted use, but states that licenses will be terminated in

accordance with NRC requirements. The NRC is in the process of

establishing these levels in an enhanced participatory rulemaking that

will be noticed in the Federal Register. Pending promulgation of the

new radiological criteria, licensees are expected to comply with

current criteria and practices as described in the NRC Action Plan

Ensuring Timely Decommissioning of SDMP Sites (57 FR 13389; April 16,

1992). Further information on acceptable criteria may be obtained

through the NRC regional or headquarters offices. Once the radiological

criteria are finalized, licenses would be terminated in accordance with

those criteria.

The final rule also clarifies requirements for radiological surveys

performed as part of the license termination process. This rule

clarifies that licensees need only submit the final survey showing that

the site or area is suitable for release in accordance with NRC

requirements after decommissioning has been completed. Some licensees

have questioned whether existing requirements may be construed to

require two surveys. In order to adequately review and approve a

decommissioning plan the NRC must be aware of the conditions at the

site. Therefore, a new item was included in the proposed rule that

added to the contents of a proposed decommissioning plan a description

of the conditions of the site or separate building or outdoor area

sufficient to evaluate the acceptability of the plan. This description

may be a preliminary radiation survey or other type of documentation

which characterizes the conditions of the site. No comments were

received on this item in the proposed rule.

III. Summary of Requirements and Discussion of Comments

Seventeen comment letters were received on the proposed rule. Nine

letters were received from licensees, three from public interest

groups, four from industry organizations, and one from a State

government. All of the comments were considered with respect to

possible revision of the proposed rule. This discussion summarizes the

major requirements in the regulation by section and discusses the

significant issues raised by public comment and how they were resolved.

The bases and origins of the requirements are also explained. Copies of

the public comments received on the proposed rule are available for

inspection and copying for a fee at the NRC Public Document Room, 2120

L Street, N.W. (Lower Level), Washington, D.C. 20036.

Sections 30.4, 40.4, 70.4, and 72.3--Definitions

These sections define terms that are used in the amended Parts 30,

40, 70 and 72. Of particular relevance to this rulemaking is the

definition of principal activities. The final rule defines principal

activities as those activities that are essential to achieving the

purpose for which the license was issued or amended. Principal

activities are commonly listed or described in the license under the

Authorized Use heading. Principal activities are defined in the

regulation to prevent licensees from avoiding end-of-use

decommissioning. For example, a licensee could not store licensed

radioactive material in an otherwise unused building to avoid end-of-

use decommissioning. Storage of licensed material is not a principal

activity unless it is specifically authorized for waste (such as

greater than class C) that cannot currently be accepted at available

disposal facilities, or it is the primary purpose for which the license

was issued (such as, spent fuel storage in an ISFSI).

Some commenters suggested that definitions for the terms ``uranium

recovery facility'' and ``characterization of the site'' be added to

the proposed rule. The NRC did not adopt these suggestions with this

rulemaking. First, the term ``uranium recovery facility'' does not

appear in this rule; hence no definition is needed. Second, whether

there is a need to define ``site characterization'' is better

determined by the nature of the criteria for decommissioning and will

be addressed upon completion of that rulemaking.

Sections 30.36(a)-(c), 40.42 (a)-(c), 70.38(a)-(c) and 72.54(a)-(c)

These sections of the regulations address license termination,

expiration, revocation, denial of renewal, and their relationship to

each other. A license ``expires'' when: (1) the expiration date stated

in the license is reached [unless the licensee has appropriately filed

for renewal], (2) the NRC revokes the license, or (3) the NRC formally

denies an application to renew the license. ``Expiration'' of a

license, whether voluntary or involuntary, refers to the end of a

licensee's authorization to perform activities licensed under the

Atomic Energy Act of 1954, as amended, with the exception of a

licensee's continuing authorization to perform licensed activities

incident to and necessary for site decontamination and decommissioning.

Licensees with expired licenses must then decommission pursuant to the

time limits and other requirements stated in the regulations. The final

rule makes clear that the decommissioning and timeliness criteria apply

to all licensees for whom the authorization to perform licensed

activities has expired, regardless of whether the expiration was

voluntary or involuntary. When the NRC has determined that

decommissioning has been completed in a satisfactory manner, the NRC

will relieve the licensee of license obligations by terminating the

license. All licenses remain in effect until formally terminated by the

NRC. One commenter suggested revising the language to clarify that

licensees were not required to control access to areas within their

facility once they are decontaminated. The language in the final rule

was revised to state that licensees were required to control access to

restricted areas until they were suitable for release in accordance

with NRC requirements.

Sections 30.36(d), 40.42(d), 70.38(d), and 72.54(d)--Submittal of

Decommissioning Plan (if Required) Within 12 Months of Notification

The final rule establishes specific requirements for: (1) timely

decommissioning of the entire site at the end of all licensed activity

at the site, thereby allowing license termination and release of the

site in accordance with NRC requirements (i.e., ``end-of-license''

decommissioning); and (2) timely decommissioning of separate buildings

and outdoor areas where licensed activities have ceased while licensed

activities continue to be conducted at other site locations (i.e.,

``end-of-use'' decommissioning). Licenses will be amended to exclude

decommissioned buildings or outdoor areas as authorized places of use

following satisfactory completion of end-of-use decommissioning.

The final rule requires licensees to submit notification of the

existence of inactive buildings or outdoor areas but does not require

them to provide notification of the existence of inactive parts of

buildings, such as rooms or laboratories. To include parts of buildings

in the regulation was seen as a cumbersome regulatory requirement both

for licensees and the NRC without sufficient resultant benefit. In

addition to notification, licensees will be required to initiate

decommissioning, or submit a decommissioning plan for NRC approval

within 12 months of the notification.

A commenter noted that the 12-month period allowed by the proposed

rule for submittal of a decommissioning plan fails to recognize the

scope of work necessary to characterize a site prior to preparing a

plan. This commenter suggested that consistent with other licensing

actions, scheduling commitments should be developed on a site-specific

basis. A second commenter also felt that the 12-month period was

unrealistic because of the need to obtain other agency approvals and

those agencies are not subject to NRC schedules or under the licensee's

control. This commenter suggested that, rather than requiring that a

decommissioning plan be submitted within 12 months, the rule should

require submission of a proposed schedule taking into account the

requirements of other affected regulatory bodies.

The NRC did not extend the 12-month period for submittal of a

decommissioning plan. The NRC notes that flexibility has been included

in the final rule. The NRC may approve alternate schedules as indicated

in Secs. 30.36(f)(2), 40.42(f)(2), 70.38(f)(2) and 72.52(e)(2). The

final rule requires the decommissioning plan to be submitted within 12

months from:

(1) The notification of license expiration,

(2) A decision by the licensee to permanently cease ``principal

activities,'' or

(3) When there are no ``principal activities'' for 24 months.

Sections 30.36(d) (2), (3), and (4), 40.42(d) (2), (3), and (4), 70.38

(d) (2), (3), and (4), 72.54(d) (2) and (3)--Notification of Inactivity

for 24 Months and Begin Decommissioning or Submit Plan, as Appropriate.

Sixteen of the 17 commenters foresaw major difficulties with having

to begin decommissioning within 24 months of inactivity. They stated

that it may not be in the licensee's best interest to decommission

unattached buildings because of the additional manpower involved and

that future business that would require use of the buildings may be

unknown.

The time required for completing decommissioning consists of the

periods both for initiating the decommissioning process and for

subsequently completing decommissioning activities. In determining the

appropriate time period for initiating decommissioning, the NRC

considered the health and safety benefits to be obtained by allowing

short-lived isotopes to decay before beginning decommissioning

operations and the licensee's need to make business decisions

concerning future use of inactive buildings or outdoor areas. In

determining the appropriate time period for the completion of

subsequent decommissioning activities, the NRC considered the time

needed to plan and safely carry out decommissioning operations based on

previous experience.

With regard to initiation of the decommissioning process, the

background information developed for the rulemaking on general

requirements for decommissioning (53 FR 24018; June 27, 1988) included

an evaluation of decommissioning planning and preparation requirements

for the wide variety of different sized operations licensed under 10

CFR Parts 30, 40, and 70. The evaluation indicated that, in general,

for materials license facilities, further benefits derived from

radiological decay are not likely to be gained by delaying

decommissioning beyond approximately 3 years from the date that

operations cease. The NRC considers a period of approximately 24 months

for making business decisions on further use of inactive facilities to

be reasonable. This permits licensees sufficient time to make decisions

concerning future use of an inactive facility, while accommodating

periods of inactivity due to normal operations, testing, or routine

business cycles.

Based on the 24-month time period considered reasonable for making

business decisions and considering that the incremental benefits due to

radioactive decay between the second and third years of inactivity are

small, the NRC considers a period of approximately 24 months to be a

reasonable time period to permit a building or outdoor area to remain

inactive without undergoing decommissioning. Therefore, the final rule

stipulates that licensees must notify NRC if they have buildings or

outdoor areas where no principal activities have been conducted for 24

months. Notification is also required when the license has expired or

when the licensee has decided to permanently cease principal activities

and begin the formal process leading to license termination. The rule

allows licensees 60 days to provide notification. The rule requires

licensees that are not required to submit decommissioning plans to

begin decommissioning within the 60-day period provided for

notification unless the NRC has granted a delay or postponement.

Licensees required to submit decommissioning plans will be required to

submit final decommissioning plans within 12 months following

notification to cease principal activities.

Based on its analysis of the situation, the NRC arrived at a 24-

month period as being a reasonable time period for a facility, building

or outside area to remain inactive without undergoing decommissioning.

Licensees may file for exemption if they feel they will exceed the 24-

month inactivity period.

Sections 30.36(e) and (h), 40.42(e) and (h), 70.38(e) and (h), and

72.54(e) and (j)--Submittal of Request to Delay Initiation of the

Decommissioning Process and Submittal of Alternate Decommissioning

Schedules.

The NRC recognizes that licensees may not wish to decommission the

site or separate buildings or outdoor areas when submitting the

notification of inactivity for 24 months. Thus, the rule permits

licensees to make a request and justify delay or postponement.

Licensees will be required to submit the request with justification 30

days prior to the time notification would have been required under

paragraph (d). In practical terms, this means:

(1) 30 days after the license expiration date,

(2) 30 days following the decision to permanently cease principal

activities at the site or in separate buildings or outdoor areas, or

(3) 30 days following the end of the 24-month time period of

inactivity for the site or in separate buildings or outdoor areas.

Five commenters expressed opinions against the provision for

granting an extension of time for submitting a decommissioning plan. A

commenter recommended that an additional factor be included under

paragraph (h), in each of the affected sections in the regulation as a

reason to delay decommissioning--the future availability of emerging

technologies which would enable more thorough or efficient

decontamination. The NRC did not adopt this recommendation because this

additional factor, as worded, appears to be too general to be used as a

basis for delaying decommissioning. If some particular emerging

technology could be identified which would offer more thorough or

efficient decontamination on a definite time scale, it could form the

basis of a request to the NRC by a licensee for a delay in beginning

decommissioning.

Some commenters expressed the opinion that 30 days is not enough

time for the licensee to perform a proper analysis and prepare a

meaningful submittal. They proposed allowing 90 days for submitting a

schedule for preparation, submittal and review of a site

characterization plan, site characterization report, and site

decommissioning plan and elimination of the 30-day notice. The

commenters appeared to misunderstand the purpose of the 30-day notice.

The 30-day notice is not for a request to extend the time for submittal

of a decommissioning plan but applies to a request and justification

for postponement of the initiation of the decommissioning process. For

those licensees required to submit decommissioning plans, the

regulation allows licensees 12 months, not 30 days, to prepare the

decommissioning plan.

A commenter expressed concern with the provision which puts the

decommissioning timetable ``on hold'' until the NRC makes a

determination on the extension request. To make the NRC accountable,

the commenter strongly urged that the NRC modify the rule to place a

reasonable time limit on NRC determinations regarding extension

requests (i.e., 30 days). The NRC did not adopt this comment because a

30-day time period for evaluating a request for an extension of the 24-

month decommissioning period would be difficult to adhere to due to the

complexity involved in evaluation of non-routine factors such as

extensive ground-water contamination and because the NRC may have to

request further information from the licensee.

Sections 30.36(e), 40.42(e), 70.38(e), and 72.54 (e)(1)--Inclusion of

Specific Information to Support a Request to Delay or Postpone

Initiation of Decommissioning

Three commenters stated that the wording of the extension request

provision failed to define specific standards to be met by a licensee

or to describe how the NRC will evaluate requests. It was noted that

the term ``otherwise in the public interest'' was not precisely defined

and could be interpreted in a variety of ways. Two commenters noted

that the rule states that the NRC may grant a request to delay or

postpone decommissioning if NRC determines the relief ``is not

detrimental to public health and safety and is otherwise in the public

interest.'' In addition, these commenters felt that this section was

unnecessary for uranium recovery licensees because the NRC already

knows the safety status of the facilities through various periodic

reports that must be submitted.

The NRC did not adopt these suggestions. Sections 30.36(h),

40.42(h), 70.38(h) and 72.54(j) of the final rule contain five criteria

the NRC will evaluate in reaching a decision on the merits of the

licensee's request. Guidance on techniques used by the staff to

evaluate requests is typically provided in regulatory guides and other

guidance documents. The NRC will issue additional guidance as necessary

after the final rule is issued.

Sections 30.36 (e) and (h), 40.42 (e) and (h), 70.38 (e) and (h), and

72.54 (e) and (j)--Public Participation

One commenter suggested that the public would like to be given a

role in evaluating the merits of requests for extensions of the

decommissioning schedules. This commenter stated that the rule should

provide for hearings for any variation in the rule conditions,

including granting of an extension.

In most cases, when an extension is granted the license would be

amended. Since current NRC rules (Sec. 2.1205) provide individuals that

could be affected the right to request a hearing whenever a license

amendment is issued, there does not appear to be a need for any

additional rule changes to accommodate this concern.

Sections 30.36(f)(4)(vi), 30.36(g), 30.36(h), 40.42(f)(4)(vi),

40.42(g), 40.42(h), 70.38(f)(4)(vii), 70.38(g), 70.38(h), 72.54(i), and

72.54(j)(1) and (2)--Decommissioning Period

Six of the 17 comment letters on the proposed rule questioned the

practicability of the 18-month period for the completion of

decommissioning for various reasons. Several commenters felt that the

18-month limit was premature because NRC has not yet established the

acceptance criteria, which may affect cost and scheduling of

decommissioning. Other commenters stated that most fuel facilities

require significantly more time than 18 months and the rule should

recognize this. A commenter expressed the view that the 18-month period

should not apply to uranium recovery facilities because portions of the

milling facility may need to remain under license for ground-water

remediation and tailings closure. The commenter suggested modifying the

rule to state that decommissioning would be completed as soon as

practicable after a final decision to cease operations. This commenter

also suggested extending the period for decommissioning to make

scheduling more realistic for major materials licensees. In addition,

this commenter suggested that the NRC request strict compatibility for

Agreement States to preclude imposition of more restrictive standards

than those imposed by NRC.

The NRC has concluded that an 18-month period for completion of

decommissioning may not be adequate for many major materials licensees.

In response to the comments received, the NRC has decided to increase

the time limit to complete decommissioning. This change is expected to

have the effect of reducing the number of requests for extensions of

the time period without having a significant impact on public health

and safety. Following initiation of decommissioning activities,

licensees would have a maximum of 24 months to complete

decommissioning.

The amended regulations permit licensees to request the NRC to

consider extending the 24-month time limit for decommissioning. The NRC

will consider site-specific factors on a case-by-case basis. Factors

that the NRC may consider to be appropriate include:

(1) Availability of waste disposal facilities;

(2) Reductions in dose or waste volume due to radioactive decay;

(3) Technical feasibility of decommissioning;

(4) Regulatory requirements of other government agencies;

(5) Lawsuits;

(6) Ground-water treatment activities;

(7) Monitored natural ground-water restoration; or

(8) Other factors that could result in more environmental harm than

deferred clean-up or that are beyond the control of the licensee.

Based on these time periods the NRC estimates that licensees who

are not required to submit decommissioning plans will complete their

decommissioning activities in approximately 50 months or less after

cessation of operations (i.e., 24 months of inactivity, 60 days for

notification, and 24 months to complete decommissioning). Licensees who

are required to submit decommissioning plans would be expected to

complete their decommissioning activities in approximately 62 months or

less (i.e., 24 months of inactivity, 60 days for notification, 12

months to submit a decommissioning plan, and 24 months to complete

decommissioning). NRC review and approval of decommissioning plans

(estimated to be 6 months or less) will be in addition to the 62-month

total.

Sections 30.36(f)(1) and (3), 40.42(f)(1) and (3), 70.38(f)(1) and

(3)--Activities Permitted Prior to Approval of a Decommissioning Plan

Three commenters stated that the rule should clearly specify what

decontamination and decommissioning activities are permitted without

approval of a decommissioning plan. They also stated that there should

be specific wording that permits the licensee to proceed with certain

activities pending approval of the plan. They believed that

decommissioning activities covered under existing authorizations and

procedures should be able to proceed pending approval of the plan. In

addition, one commenter believed that those activities which would not

increase health and safety impacts to workers and the public should be

permitted pending approval of the plan. A commenter noted that license

amendments could be considered for specific activities while the plan

is under NRC review.

The NRC did not adopt these suggestions because sufficient latitude

currently exists for licensees to carry out decommissioning activities

in the absence of an approved decommissioning plan provided the

procedures used are approved under existing licensing conditions and do

not increase the potential for health and safety impacts to workers or

to the public or result in significantly greater release of radioactive

material to the environment.

Sections 30.36(i), 40.42(i), 70.38(i), and 72.54(k)--Radiation Surveys

The comments on this subject were concerned with radiation survey

measurements and radiation units to be used. Three commenters

questioned the practical value of the required measurement of beta/

gamma radiation levels at one centimeter from the surface. The

commenters noted that this measurement was not included in NUREG/CR-

5849. Four commenters objected to the requirement in the proposed rule

to use SI units. They believed that this proposal was in conflict with

Part 20 and would be confusing to all concerned. Here again, the

commenters suggested that the results of radiation measurement be

specified elsewhere, such as in the rule dealing with residual

radiation standards.

The NRC has decided to delete the requirement for beta/gamma

radiation levels at 1 centimeter from the surface since sufficient

guidance exists in NUREG/CR-5849. The provision in the final rule that

requires that radiation levels be reported in SI units reflects NRC

policy on metrication which was published in the Federal Register on

October 7, 1991 (57 FR 46202). In keeping with this policy, levels of

gamma radiation will be expressed in units of millisieverts. The

millisievert was chosen over Coulomb/kilogram to convert from Roentgen

because expressing in units of absorbed dose allows easy conversion.

The values only differ with respect to orders of magnitude. The staff

notes that using absorbed dose to express levels gamma radiation is the

approach adopted in Europe and will foster international consistency.

Sections 30.36(j)(2), 40.42(j)(2), 70.38(j)(2), and 72.54(l)(2)--Delay

for Radiation Criteria Rule

Five commenters expressed opposition to or concern with the NRC's

plans to proceed with the timeliness in decommissioning rulemaking

separate from and in advance of the EPR currently underway. The main

points made by the commenters in support of either delaying the

timeliness rulemaking or combining the two rulemakings were:

(1) Proceeding with the timeliness rulemaking separately constrains

the public's ability to influence the radiological-standards rulemaking

and weakens the NRC's stated commitment to greater public

participation;

(2) The timeliness rulemaking is isolated from the enhanced public

participation of the radiological-standards rulemaking;

(3) It is inconsistent to define the length of time decommissioning

will require when it is not known what the extent of decommissioning

will be (the timeliness rulemaking is based on the premise of

decommissioning for release in accordance with NRC requirements). The

results of the radiological standards rulemaking may provide for

alternative approaches to decommissioning, such as continual

remediation or long-term monitoring, restricted use, and continued

institutional care, perhaps through the transfer of the property to a

governmental entity; and

(4) Because decommissioning should be done correctly and is

expensive, its scheduling and implementation should be accomplished

with the benefit of final residual radiation criteria.

The comments regarding the desirability of either delaying the

timeliness in decommissioning rulemaking until the rulemaking on

decommissioning criteria is completed or combining the two rulemakings

have merit. Ideally, the two subjects could be addressed in a single

rulemaking because of their strong interdependence. However, the NRC

has determined that, pending promulgation of the new decommissioning

criteria, adequate criteria exist to conduct decommissioning and are

described in the NRC Action Plan Ensuring Timely Decommissioning of

SDMP sites (57 FR 13389; April 16, 1992). Because having these new

timeliness requirements in the regulations is expected to improve the

NRC's ability to see that timely decommissioning is accomplished, the

NRC did not adopt the commenters' suggestion. Adoption of the

suggestions of the commenters on this point would result in either the

continuation of the ``status quo'', i.e., establishment of time

schedules for decommissioning on a case-by-case basis through license

condition or order, or postponement of all decommissioning of materials

facilities until the rulemaking on decommissioning criteria has been

completed.

Section 70.38(f)(4)(vi)

A commenter suggested deleting the requirements to submit updated

descriptions of physical security plans and material control and

accountability plans. This comment was not adopted because this

information is likely to be different from the plans designed to cover

routine operations. As noted in the comment, the licensee may be in a

position where the possession limit for special nuclear material can be

reduced below the threshold for the plans, then the information would

not be required in the decommissioning plan.

Viability of Uranium Recovery Industry

Uranium recovery licensees consist of conventional mills,

commercial, research and development in situ facilities, ore buying

stations, and heap-leach facilities. These sites may contain processing

facilities and waste disposal areas. All of the sites, other than the

tailings impoundments and waste disposal areas, are to be

decommissioned and released in accordance with NRC requirements under

NRC's present regulations. The waste disposal areas are reclaimed and,

when the specific license is terminated, they are licensed for long-

term care under the general license in Sec. 40.28.

The current requirements for decommissioning and reclamation of

these sites are contained primarily in Appendix A to 10 CFR Part 40. In

particular, Criterion 9 of Appendix A requires that prior to

commencement of operations, there must be a NRC-approved plan for:

(1) Decontamination and decommissioning of mill buildings and the

milling site to levels which allow unrestricted use of these areas upon

decommissioning, and

(2) The reclamation of tailings and/or waste disposal areas in

accordance with technical criteria presented in Section I of Appendix

A.

Nonetheless, Sec. 40.42 applies to the uranium processing

facilities. The effect of the final rule is to require the uranium

recovery licensees to notify the NRC within 60 days when they have

permanently ceased operations or have not conducted operations for 24

months (Sec. 40.42(d)) and to submit an updated decommissioning plan

within 12 months of this notification or license expiration. The

provisions in the amended Sec. 40.42(g) on the content of a

decommissioning plan are consistent with the decommissioning plan

required in Criterion 9 of Appendix A to 10 CFR Part 40. The

decommissioning plan submitted at the end of operations is intended to

better describe the actual conditions of the site at that time.

Some uranium recovery licensees may require additional time to

conduct final decommissioning and site survey in order to support the

reclamation of waste disposal areas. Section 40.42(k) provides for an

exemption for the waste disposal areas at uranium recovery facilities.

Disposal areas (as defined in Appendix A to 10 CFR Part 40) are

reclaimed and ownership is eventually transferred to the Department of

Energy. Criterion 6A of Appendix A to 10 CFR Part 40 and Subpart D of

40 CFR Part 192 specifically require the submittal and approval of a

timely reclamation plan. For these reasons, the provisions in the final

rule in Sec. 40.42(f) for the content of a plan and Sec. 40.42(g) for

the timing of completion of the plan do not apply to the reclamation of

the waste disposal areas at uranium recovery facilities and thorium

mills.

To coordinate decommissioning of uranium recovery facilities and

reclamation of disposal areas, the NRC may need to extend the date for

completion of decommissioning including the final radiological survey

until the reclamation of the disposal area has been completed.

Typically, the reclamation of a disposal area may require several years

of drying, several construction seasons, and a period of stability

monitoring prior to the licensee proposing to terminate the license.

Requests for delay in completion of the final aspects of

decommissioning can be accommodated through the provisions in

Sec. 40.42(h).

The NRC recognizes the fluctuation that has occurred in the uranium

industry. The amended regulation allows the NRC to extend the 24-month

period of inactivity if the NRC determines, based on a request by the

licensee, that this relief is not detrimental to the public health and

safety and is otherwise in the public interest. Commenters stated that

the proposed rule threatens future energy security of the United States

by forcing decommissioning of uranium production facilities. According

to the commenters, the proposed timetables failed to take into account

site-specific circumstances, factors beyond the control of the

licensee, and the problematic nature of the international marketplace.

Two commenters stated that their suggestion of exempting uranium

recovery facilities from the rule would allow the United States to

maintain its domestic uranium producing industry rather than forcing

its demise with every downturn in the market and thereby help limit

U.S. dependence on foreign energy sources. They also stated that such

an exemption would be consistent with NRC Chairman Selin's written

testimony before the Senate Committee on Energy and Natural Resources

during hearings on the then proposed National Energy Act on June 26,

1992.

What the commenters are referring to is not written testimony but

NRC's June 26, 1992, comments to Congress on provisions of the proposed

National Energy Policy Act of 1992 relating to mill tailings cleanup

funding. The NRC is not exempting uranium recovery facilities from

decommissioning. There is no policy justification for concluding that

once a uranium recovery facility has ceased operations, decommissioning

should not commence promptly. In fact, prompt decommissioning is

consistent with this agency's mandate to protect public health and

safety. Commenters have misconstrued the Commission's June 26, 1992,

letter to Congress. In that letter, the Commission urged Congress to

modify the legislation to provide that uranium mills could be eligible

for reimbursements for some of their cleanup costs even if the mills

were still operating in 2002. The legislation then pending provided

that decommissioning of a mill had to be completed by the end of 2002

in order to receive Federal funding. The legislation ultimately enacted

included the modifications recommended by the NRC. Nowhere in NRC's

correspondence did the Commission suggest that decommissioning be

deferred once a facility has ceased operations. In addition,

flexibility has been built into the final rule so that a licensee can

file for an exemption from having to commence decommissioning following

24 months of inactivity.

Inclusion of QA Plan in the Decommissioning Plan

One commenter suggested that the content of the decommissioning

plan be augmented to include a quality assurance program description, a

description of the manner in which the characterization of the site was

performed and assurance that the characterization was performed in

accordance with a quality assurance program and implementing

procedures. This commenter pointed out that the QA program is currently

only discussed in Part 72. Because it is especially important to assure

high quality data in conducting various tests (e.g., analysis of soil,

water, air, contamination), requirements for QA programs should be

added to the other sections as well.

The NRC believes that the QA programs incorporated into existing

licenses apply to decommissioning as well.

IV. Other Issues

10 CFR Part 2, Appendix C, Supplement VI--Enforcement

Four commenters expressed disagreement with the enforcement policy

stated in the Supplementary Information of the proposed rule. They

believed that a Severity Level 3 enforcement category seemed harsh or

excessive in view of the subjective and unpredictable character of many

factors that will influence determinations and actions regarding

decommissioning. They also noted that the one-level approach does not

seem to recognize the wide range of situations or interpretations that

could result in citations. They suggested that the enforcement policy

be consistent with the complexities and uncertainties involved.

This comment was not adopted because the NRC considers timely

decommissioning of materials facilities an important regulatory issue.

Thus, violations involving a failure to notify the NRC as required by

regulation or license condition or to complete decommissioning

activities in accordance with regulation or license condition normally

will be classified at Severity Level III and will result in

consideration of monetary civil penalties or other enforcement action

as appropriate.

Environmental Assessment

A commenter disagreed with the NRC Finding of No Significant

Environmental Impact for the proposed rule and believed that it

represented an inadequate consideration of potential environmental

effects. The commenter noted that NRC has indicated its intention to

prepare a GEIS for the residual radiological standards rulemaking and

because the timeliness rulemaking has such a strong link to it that the

timeliness rulemaking also logically requires a GEIS.

As noted in the Supplementary Information with the proposed rule,

the NRC staff prepared an Environmental Assessment which found that, if

adopted, the proposed rule would not be a major Federal action

significantly affecting the quality of the human environment, and

therefore an environmental impact statement is not required. As

discussed in the Environmental Assessment, the NRC had previously

prepared a Generic Environmental Impact Statement on Decommissioning

(GEIS). For licensees covered by this regulation, the GEIS found that

either immediate decommissioning or short-term storage to allow short-

lived radionuclides to decay is the preferred decommissioning strategy.

Delayed decommissioning for an extended period of time would only

rarely be justified for these types of facilities. The GEIS concluded

that the overall impact of decommissioning existing nuclear materials

facilities is small. Because these regulatory changes specifically lean

in the direction of the preferred decommissioning strategies, immediate

decommissioning or short-term storage, it can be concluded that this

rulemaking will have no adverse impact on the environment. A more

detailed rationale is given in the environmental assessment published

with the notice of proposed rulemaking on Timeliness in Decommissioning

of Materials Facilities (58 FR 4099; January 13, 1993).

Economic Impacts

Several commenters stated that the proposed rule represents gross

interference with the licensee's right to operate a business within

applicable regulations and within the framework of normal business and

economic cycles. They believed that licensees must be given the option

to ``wait out'' down-turns in the market by idling facilities and

placing them under long term care and maintenance until operations can

be profitably restarted. They believed that the proposed rule would

deprive the licensees of the ability to obtain future financial return

on investment.

The NRC agrees that licensees should have flexibility with regard

to business decisions, and this sensitivity resulted in specific

provisions and exemptions to account for the special circumstances

where the rule might work a hardship on a particular licensee. The NRC

does not believe that further considerations are necessary.

License Fees

A commenter suggested that the timeliness rule should recognize the

diminished risk and regulatory effort associated with a license during

the decommissioning process and the NRC fee structure adjusted

accordingly.

In response, there does not appear to be any need to change the fee

structure for decommissioning. It is noted that fees for license

amendments for major materials or fuel cycle facilities are on a full

cost recovery basis and the cost, therefore, would depend upon the

amount of effort expended by the NRC staff on any given case. Once a

licensee enters a possession-only status the option is available of

qualifying for a different fee category due to a change in the nature

of the licensed activities.

V. Enforcement

Concurrent with the publication of the final rule, the Commission

is modifying Supplement VI of the Enforcement Policy to provide that

violations involving a failure to notify the NRC as required by

regulation or license condition, failure to meet decommissioning

standards, failure to complete decommissioning activities in accordance

with regulation or license condition, or failure to meet required

schedules without adequate justification may be classified as Severity

Level III and may result in consideration of monetary civil penalties

or other enforcement action as appropriate.

VI. Agreement State Compatibility

The final rule is a matter of compatibility between the NRC and the

Agreements States, thereby providing consistency between Federal and

State safety requirements. This rule is assigned a Division 2

compatibility. Under this level of compatibility, the Agreement States

would be expected to adopt a timeliness in decommissioning rule but

would be permitted flexibility to apply more stringent requirements if

deemed appropriate by the State.

VII. Implementation

The timing provisions of this rule begin on the effective date.

Thus, licensees that currently have unused facilities at the time of

publication of the final rule would not need to submit notifications

required by this rule earlier than 2 years after the rule becomes

effective. This provides those licensees with same period of time (2

years) in which to determine whether the unused facility would be put

into use again or to submit notification as required by the rule.

VIII. Finding of No Significant Environmental Impact: Availability

The NRC has determined under the National Environmental Policy Act

of 1969, as amended, and the NRC's regulations in Subpart A of 10 CFR

Part 51, that this rule is not a major Federal action significantly

affecting the quality of the human environment, and therefore, an

environmental impact statement is not required. The action establishes

specific requirements for timeliness of decommissioning of nuclear

materials facilities. The action is directed to improving the

regulatory, licensing, inspection, and enforcement framework relating

to these facilities and does not change the underlying fundamental

requirement to decommission facilities to levels acceptable for

release. Thus, this action will not adversely affect the quality of the

human environment. The environmental assessment and finding of no

significant impact on which this determination is based is available

for inspection at the NRC Public Document Room, 2120 L Street, NW.

(Lower Level), Washington, DC. Single copies are available without

charge upon written request from Mary L. Thomas, Office of Nuclear

Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC

20555.

IX. Paperwork Reduction Act Statement

This final rule amends information collection requirements that are

subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et

seq.). These requirements were approved by the Office of Management and

Budget approval numbers 3150-0009, -0017, -0020, -0028, and -0132.

The public reporting burden for this collection of additional

information is estimated to average 0.5 hours per response, to prepare

and submit a notification of intent to terminate licensed activities.

Send comments regarding this burden estimate or any other aspect of

this collection of information, including suggestions for reducing this

burden, to the Information and Records Management Branch (T6F33), U.S.

Nuclear Regulatory Commission, Washington, DC 20555; and to the Desk

Officer, Office of Information and Regulatory Affairs, NEOB-10202

(3150-0009, 3150-0017, 3150-0020, 3150-0028, and 3150-0132), Office of

Management and Budget, Washington, DC 20503.

X. Regulatory Analysis

The NRC has prepared a regulatory analysis on this regulation. The

analysis examines the costs and benefits of the requirements in the

rule. The analysis is available for inspection at the NRC Public

Document Room, 2120 L Street NW. (Lower Level), Washington, DC.

XI. 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. The rule

imposes requirements for timely decommissioning of a site. Although the

rule includes all materials licensees regulated by the NRC and the

Agreement States, decommissioning efforts for licensees that possess

and use only materials with short half-lives or materials only in

sealed sources are simple and require only that enough time be

permitted to either allow short-lived materials to decay or to enable

them to properly dispose of their sealed sources. Therefore, the impact

of the rule on these licensees is not significant. The net cost to the

remaining licensees, estimated to number 3,300, is expected to be small

based on an analysis of the costs of decommissioning, including waste

disposal. The analysis indicates that in nearly all cases, the cost of

decommissioning (which includes the costs of waste disposal) will

increase if decommissioning is delayed. Complete details of the cost

analysis are contained in Section 6.2 of the Regulatory Analysis.

However, these remaining 3,300 licensees are not likely to be small

entities and, in addition, there actually may be significant costs of

cleanup of secondary contamination if decommissioning is delayed.

XII. Backfit Analysis

The NRC has determined that the backfit rule, 10 CFR 50.109, does

not apply to this proposed rule and, therefore, that a backfit analysis

is not required for this proposed rule because these amendments do not

involve any provisions which would impose backfits as defined in 10 CFR

50.109(a)(1).

List of Subjects

10 CFR Part 2

Administrative practice and procedure, Antitrust, Byproduct

material, Classified information, Environmental protection, Nuclear

materials, Nuclear power plants and reactors, Penalty, Sex

Discrimination, Source material, Special nuclear material, Waste

treatment and disposal.

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, and 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.

10 CFR Part 72

Independent storage of spent fuel and high level waste, Manpower

training programs, Nuclear materials, Occupational safety and health,

Reporting and recordkeeping requirements, Security measures, and Spent

fuel.

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 2, 30, 40, 70, and 72.

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 of the term principal activities is

added in alphabetical order to read as follows:

Sec. 30.4 Definitions.

* * * * *

Principal activities, as used in this part, means activities

authorized by the license which are essential to achieving the

purpose(s) for which the license was issued or amended. Storage during

which no licensed material is accessed for use or disposal and

activities incidental to decontamination or decommissioning are not

principal activities.

* * * * *

3. Section 30.36 is revised to read as follows:

Sec. 30.36 Expiration and termination of licenses and decommissioning

of sites and separate buildings or outdoor areas.

(a) Each specific license expires at the end of the day on the

expiration date stated in the license unless the licensee has filed an

application for renewal under Sec. 30.37 not less than 30 days before

the expiration date stated in the existing license. If an application

for renewal has been filed at least 30 days prior to the expiration

date stated in the existing license, the existing license expires at

the end of the day on which the Commission makes a final determination

to deny the renewal application or, if the determination states an

expiration date, the expiration date stated in the determination.

(b) Each specific license revoked by the Commission expires at the

end of the day on the date of the Commission's final determination to

revoke the license, or on the expiration date stated in the

determination, or as otherwise provided by Commission Order.

(c) Each specific license continues in effect, beyond the

expiration date if necessary, with respect to possession of byproduct

material until the Commission notifies the licensee in writing that the

license is terminated. During this time, the licensee shall--

(1) Limit actions involving byproduct material to those related to

decommissioning; and

(2) Continue to control entry to restricted areas until they are

suitable for release in accordance with NRC requirements.

(d) Within 60 days of the occurrence of any of the following,

consistent with the administrative directions in Sec. 30.6, each

licensee shall provide notification to the NRC in writing of such

occurrence, and either begin decommissioning its site, or any separate

building or outdoor area that contains residual radioactivity so that

the building or outdoor area is suitable for release in accordance with

NRC requirements, or submit within 12 months of notification a

decommissioning plan, if required by paragraph (f)(1) of this section,

and begin decommissioning upon approval of that plan if--

(1) The license has expired pursuant to paragraph (a) or (b) of

this section; or

(2) The licensee has decided to permanently cease principal

activities, as defined in this part, at the entire site or in any

separate building or outdoor area that contains residual radioactivity

such that the building or outdoor area is unsuitable for release in

accordance with NRC requirements; or

(3) No principal activities under the license have been conducted

for a period of 24 months; or

(4) No principal activities have been conducted for a period of 24

months in any separate building or outdoor area that contains residual

radioactivity such that the building or outdoor area is unsuitable for

release in accordance with NRC requirements.

(e) The Commission may grant a request to extend the time periods

established in paragraph (d) if the Commission determines that this

relief is not detrimental to the public health and safety and is

otherwise in the public interest. The request must be submitted no

later than 30 days before notification pursuant to paragraph (d) of

this section. The schedule for decommissioning set forth in paragraph

(d) of this section may not commence until the Commission has made a

determination on the request.

(f)(1) A decommissioning plan must be submitted if required by

license condition or if the procedures and activities necessary to

carry out decommissioning of the site or separate building or outdoor

area have not been previously approved by the Commission and these

procedures could increase potential health and safety impacts to

workers or to the public, such as in any of the following cases:

(i) Procedures would involve techniques not applied routinely

during cleanup or maintenance operations;

(ii) Workers would be entering areas not normally occupied where

surface contamination and radiation levels are significantly higher

than routinely encountered during operation;

(iii) Procedures could result in significantly greater airborne

concentrations of radioactive materials than are present during

operation; or

(iv) Procedures could result in significantly greater releases of

radioactive material to the environment than those associated with

operation.

(2) The Commission may approve an alternate schedule for submittal

of a decommissioning plan required pursuant to paragraph (d) of this

section if the Commission determines that the alternative schedule is

necessary to the effective conduct of decommissioning operations and

presents no undue risk from radiation to the public health and safety

and is otherwise in the public interest.

(3) Procedures such as those listed in paragraph (f)(1) of this

section with potential health and safety impacts may not be carried out

prior to approval of the decommissioning plan.

(4) The proposed decommissioning plan for the site or separate

building or outdoor area must include:

(i) A description of the conditions of the site or separate

building or outdoor area sufficient to evaluate the acceptability of

the plan;

(ii) A description of planned decommissioning activities;

(iii) A description of methods used to ensure protection of workers

and the environment against radiation hazards during decommissioning;

(iv) A description of the planned final radiation survey; and

(v) An updated detailed cost estimate for decommissioning,

comparison of that estimate with present funds set aside for

decommissioning, and a plan for assuring the availability of adequate

funds for completion of decommissioning.

(vi) For decommissioning plans calling for completion of

decommissioning later than 24 months after plan approval, the plan

shall include a justification for the delay based on the criteria in

paragraph (h) of this section.

(5) The proposed decommissioning plan will be approved by the

Commission if the information therein demonstrates that the

decommissioning will be completed as soon as practicable and that the

health and safety of workers and the public will be adequately

protected.

(g)(1) Except as provided in paragraph (h) of this section,

licensees shall complete decommissioning of the site or separate

building or outdoor area as soon as practicable but no later than 24

months following the initiation of decommissioning.

(2) Except as provided in paragraph (h) of this section, when

decommissioning involves the entire site, the licensee shall request

license termination as soon as practicable but no later than 24 months

following the initiation of decommissioning.

(h) The Commission may approve a request for an alternative

schedule for completion of decommissioning of the site or separate

building or outdoor area, and license termination if appropriate, if

the Commission determines that the alternative is warranted by

consideration of the following:

(1) Whether it is technically feasible to complete decommissioning

within the allotted 24-month period;

(2) Whether sufficient waste disposal capacity is available to

allow completion of decommissioning within the allotted 24-month

period;

(3) Whether a significant volume reduction in wastes requiring

disposal will be achieved by allowing short-lived radionuclides to

decay;

(4) Whether a significant reduction in radiation exposure to

workers can be achieved by allowing short-lived radionuclides to decay;

and

(5) Other site-specific factors which the Commission may consider

appropriate on a case-by-case basis, such as the regulatory

requirements of other government agencies, lawsuits, ground-water

treatment activities, monitored natural ground-water restoration,

actions that could result in more environmental harm than deferred

cleanup, and other factors beyond the control of the licensee.

(i) As the final step in decommissioning, the licensee shall--

(1) Certify the disposition of all licensed material, including

accumulated wastes, by submitting a completed NRC Form 314 or

equivalent information; and

(2) Conduct a radiation survey of the premises where the licensed

activities were carried out and submit a report of the results of this

survey unless the licensee demonstrates that the premises are suitable

for release in some other manner. The licensee shall, as appropriate--

(i) Report levels of gamma radiation in units of millisieverts

(microroentgen) per hour at one meter from surfaces, and report levels

of radioactivity, including alpha and beta, in units of megabecquerels

(disintegrations per minute or microcuries) per 100 square

centimeters--removable and fixed--for surfaces, megabecquerels

(microcuries) per milliliter for water, and becquerels (picocuries) per

gram for solids such as soils or concrete; and

(ii) Specify the survey instrument(s) used and certify that each

instrument is properly calibrated and tested.

(j) Specific licenses, including expired licenses, will be

terminated by written notice to the licensee when the Commission

determines that:

(1) Byproduct material has been properly disposed;

(2) Reasonable effort has been made to eliminate residual

radioactive contamination, if present; and

(3)(i) A radiation survey has been performed which demonstrates

that the premises are suitable for release in accordance with NRC

requirements; or (ii) Other information submitted by the licensee is

sufficient to demonstrate that the premises are suitable for release in

accordance with NRC requirements.

4. Section 30.37 is revised to read as follows:

Sec. 30.37 Application for renewal of licenses.

(a) Application for renewal of a specific license must be filed on

NRC Form 314 and in accordance with Sec. 30.32.

(b) [Reserved]

PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL

5. 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).

Section 40.7 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 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).

6. In Sec. 40.4 a definition of the term principal activities is

added in alphabetical order to read as follows:

Sec. 40.4 Definitions.

* * * * *

Principal activities, as used in this part, means activities

authorized by the license which are essential to achieving the

purpose(s) for which the license was issued or amended. Storage during

which no licensed material is accessed for use or disposal and

activities incidental to decontamination or decommissioning are not

principal activities.

* * * * *

7. Section 40.42 is revised to read as follows:

Sec. 40.42 Expiration and termination of licenses and decommissioning

of sites and separate buildings or outdoor areas.

(a) Each specific license expires at the end of the day on the

expiration date stated in the license unless the licensee has filed an

application for renewal under Sec. 40.43 not less than 30 days before

the expiration of the existing license. If an application for renewal

has been filed, the existing license expires at the end of the day on

which the Commission makes a final determination to deny the renewal

application or, if the determination states an expiration date, the

expiration date stated in the determination.

(b) Each specific license revoked by the Commission expires at the

end of the day on the date of the Commission's final determination to

revoke the license, or on the expiration date stated in the

determination, or as otherwise provided by Commission Order.

(c) Each specific license continues in effect, beyond the

expiration date if necessary, with respect to possession of source

material until the Commission notifies the licensee in writing that the

license is terminated. During this time, the licensee shall--

(1) Limit actions involving source material to those related to

decommissioning; and

(2) Continue to control entry to restricted areas until they are

suitable for release in accordance with NRC requirements;

(d) Within 60 days of the occurrence of any of the following,

consistent with the administrative directions in Sec. 40.5, each

licensee shall provide notification to the NRC in writing and either

begin decommissioning its site, or any separate building or outdoor

area that contains residual radioactivity, so that the building or

outdoor area is suitable for release in accordance with NRC

requirements, or submit within 12 months of notification a

decommissioning plan, if required by paragraph (f)(1) of this section,

and begin decommissioning upon approval of that plan if--

(1) The license has expired pursuant to paragraph (a) or (b) of

this section; or

(2) The licensee has decided to permanently cease principal

activities, as defined in this part, at the entire site or in any

separate building or outdoor area; or

(3) No principal activities under the license have been conducted

for a period of 24 months; or

(4) No principal activities have been conducted for a period of 24

months in any separate building or outdoor area that contains residual

radioactivity such that the building or outdoor area is unsuitable for

release in accordance with NRC requirements.

(e) The Commission may grant a request to delay or postpone

initiation of the decommissioning process if the Commission determines

that such relief is not detrimental to the public health and safety and

is otherwise in the public interest. The request must be submitted no

later than 30 days before notification pursuant to paragraph (d) of

this section. The schedule for decommissioning set forth in paragraph

(d) of this section may not commence until the Commission has made a

determination on the request.

(f)(1) A decommissioning plan must be submitted if required by

license condition or if the procedures and activities necessary to

carry out decommissioning of the site or separate building or outdoor

area have not been previously approved by the Commission and these

procedures could increase potential health and safety impacts to

workers or to the public, such as in any of the following cases:

(i) Procedures would involve techniques not applied routinely

during cleanup or maintenance operations;

(ii) Workers would be entering areas not normally occupied where

surface contamination and radiation levels are significantly higher

than routinely encountered during operation;

(iii) Procedures could result in significantly greater airborne

concentrations of radioactive materials than are present during

operation; or

(iv) Procedures could result in significantly greater releases of

radioactive material to the environment than those associated with

operation.

(2) The Commission may approve an alternate schedule for submittal

of a decommissioning plan required pursuant to paragraph (d) of this

section if the Commission determines that the alternative schedule is

necessary to the effective conduct of decommissioning operations and

presents no undue risk from radiation to the public health and safety

and is otherwise in the public interest.

(3) The procedures listed in paragraph (f)(1) of this section may

not be carried out prior to approval of the decommissioning plan.

(4) The proposed decommissioning plan for the site or separate

building or outdoor area must include:

(i) A description of the conditions of the site or separate

building or outdoor area sufficient to evaluate the acceptability of

the plan;

(ii) A description of planned decommissioning activities;

(iii) A description of methods used to ensure protection of workers

and the environment against radiation hazards during decommissioning;

(iv) A description of the planned final radiation survey; and

(v) An updated detailed cost estimate for decommissioning,

comparison of that estimate with present funds set aside for

decommissioning, and a plan for assuring the availability of adequate

funds for completion of decommissioning.

(vi) For decommissioning plans calling for completion of

decommissioning later than 24 months after plan approval, a

justification for the delay based on the criteria in paragraph (h) of

this section.

(5) The proposed decommissioning plan will be approved by the

Commission if the information therein demonstrates that the

decommissioning will be completed as soon as practicable and that the

health and safety of workers and the public will be adequately

protected.

(g)(1) Except as provided in paragraph (h) of this section,

licensees shall complete decommissioning of the site or separate

building or outdoor area as soon as practicable but no later than 24

months following the initiation of decommissioning.

(2) Except as provided in paragraph (h) of this section, when

decommissioning involves the entire site, the licensee shall request

license termination as soon as practicable but no later than 24 months

following the initiation of decommissioning.

(h) The Commission may approve a request for an alternate schedule

for completion of decommissioning of the site or separate building or

outdoor area, and license termination if appropriate, if the Commission

determines that the alternative is warranted by consideration of the

following:

(1) Whether it is technically feasible to complete decommissioning

within the allotted 24-month period;

(2) Whether sufficient waste disposal capacity is available to

allow completion of decommissioning within the allotted 24-month

period;

(3) Whether a significant volume reduction in wastes requiring

disposal will be achieved by allowing short-lived radionuclides to

decay;

(4) Whether a significant reduction in radiation exposure to

workers can be achieved by allowing short-lived radionuclides to decay;

and

(5) Other site-specific factors which the Commission may consider

appropriate on a case-by-case basis, such as the regulatory

requirements of other government agencies, lawsuits, ground-water

treatment activities, monitored natural ground-water restoration,

actions that could result in more environmental harm than deferred

cleanup, and other factors beyond the control of the licensee.

(i) As the final step in decommissioning, the licensee shall--

(1) Certify the disposition of all licensed material, including

accumulated wastes, by submitting a completed NRC Form 314 or

equivalent information; and

(2) Conduct a radiation survey of the premises where the licensed

activities were carried out and submit a report of the results of this

survey unless the licensee demonstrates that the premises are suitable

for release in some other manner. The licensee shall, as appropriate--

(i) Report levels of gamma radiation in units of millisieverts

(microroentgen) per hour at one meter from surfaces, and report levels

of radioactivity, including alpha and beta, in units of megabecquerels

(disintegrations per minute or microcuries) per 100 square centimeters

removable and fixed for surfaces, megabecquerels (microcuries) per

milliliter for water, and becquerels (picocuries) per gram for solids

such as soils or concrete; and

(ii) Specify the survey instrument(s) used and certify that each

instrument is properly calibrated and tested.

(j) Specific licenses, including expired licenses, will be

terminated by written notice to the licensee when the Commission

determines that:

(1) Source material has been properly disposed;

(2) Reasonable effort has been made to eliminate residual

radioactive contamination, if present; and

(3)(i) A radiation survey has been performed which demonstrates

that the premises are suitable for release in accordance with NRC

requirements.

(ii) Other information submitted by the licensee is sufficient to

demonstrate that the premises are suitable for release in accordance

with NRC requirements.

(k) Specific licenses for uranium and thorium milling are exempt

from paragraphs (d)(4), (f) and (g) of this section with respect to

reclamation of tailings impoundments and/or waste disposal areas.

8. Section 40.43 is revised to read as follows:

Sec. 40.43 Renewal of licenses.

(a) Application for renewal of a specific license must be filed on

NRC Form 314 and in accordance with Sec. 40.31.

(b) [Reserved]

PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

9. 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); secs. 201, as amended, 202,

204, 206, 88 Stat. 1242, as amended, 1244, 1245, 1246 (42 U.S.C.

5841, 5842, 5845, 5846).

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 as amended by Pub. L. 102-486 sec. 2902, 106 Stat. 3123 (42

U.S.C. 5851). Section 70.21(g) also issued under sec. 122, 68 Stat.

939 (42 U.S.C. 2152). Section 70.31 also issued under sec. 57d, Pub.

L. 93-377, 88 Stat. 475 (42 U.S.C. 2077). Sections 70.36 and 70.44

also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C.

2234). Section 70.61 also issued under secs. 186, 187, 68 Stat. 955

(42 U.S.C. 2236, 2237). Section 70.62 also issued under sec. 108, 68

Stat. 939, as amended (42 U.S.C. 2138).

10. In Section 70.4 a definition of the term principal activities

is added in alphabetical order to read as follows:

Sec. 70.4 Definitions.

* * * * *

Principal activities, as used in this part, means activities

authorized by the license which are essential to achieving the

purpose(s) for which the license was issued or amended. Storage during

which no licensed material is accessed for use or disposal and

activities incidental to decontamination or decommissioning are not

principal activities.

* * * * *

Sec. 70.33 [Amended].

11. Section 70.33 is amended by removing and reserving paragraph

(b).

12. Section 70.38 is revised to read as follows:

Sec. 70.38 Expiration and termination of licenses and decommissioning

of sites and separate buildings or outdoor areas.

(a) Each specific license expires at the end of the day on the

expiration date stated in the license unless the licensee has filed an

application for renewal under Sec. 70.33 not less than 30 days before

the expiration of the existing license. If an application for renewal

has been filed, the existing license expires at the end of the day on

which the Commission makes a final determination to deny the renewal

application or, if the determination states an expiration date, the

expiration date stated in the determination.

(b) Each specific license revoked by the Commission expires at the

end of the day on the date of the Commission's final determination to

revoke the license, or on the expiration date stated in the

determination, or as otherwise provided by Commission Order.

(c) Each specific license continues in effect, beyond the

expiration date if necessary, with respect to possession of special

nuclear material until the Commission notifies the licensee in writing

that the license is terminated. During this time, the licensee shall--

(1) Limit actions involving special nuclear material to those

related to decommissioning; and

(2) Continue to control entry to restricted areas until they are

suitable for release in accordance with NRC requirements.

(d) Within 60 days of the occurrence of any of the following,

consistent with the administrative directions in Sec. 70.5, each

licensee shall provide notification to the NRC in writing and either

begin decommissioning its site, or any separate building or outdoor

area that contains residual radioactivity, so that the building or

outdoor area is suitable for release in accordance with NRC

requirements, or submit within 12 months of notification a

decommissioning plan, if required by paragraph (f)(1) of this section,

and begin decommissioning upon approval of that plan if--

(1) The license has expired pursuant to paragraph (a) or (b) of

this section; or

(2) The licensee has decided to permanently cease principal

activities, as defined in this part, at the entire site or in any

separate building or outdoor area; or

(3) No principal activities under the license have been conducted

for a period of 24 months; or

(4) No principal activities have been conducted for a period of 24

months in any separate building or outdoor area that contains residual

radioactivity such that the building or outdoor area is unsuitable for

release in accordance with NRC requirements.

(e) The Commission may grant a request to delay or postpone

initiation of the decommissioning process if the Commission determines

that this relief is not detrimental to the public health and safety and

is otherwise in the public interest. The request must be submitted no

later than 30 days before notification pursuant to paragraph (d) of

this section. The schedule for decommissioning set forth in paragraph

(d) of this section may not commence until the Commission has made a

determination on the request.

(f)(1) A decommissioning plan must be submitted if required by

license condition or if the procedures and activities necessary to

carry out decommissioning of the site or separate building or outdoor

area have not been previously approved by the Commission and these

procedures could increase potential health and safety impacts to

workers or to the public, such as in any of the following cases:

(i) Procedures would involve techniques not applied routinely

during cleanup or maintenance operations;

(ii) Workers would be entering areas not normally occupied where

surface contamination and radiation levels are significantly higher

than routinely encountered during operation;

(iii) Procedures could result in significantly greater airborne

concentrations of radioactive materials than are present during

operation; or

(iv) Procedures could result in significantly greater releases of

radioactive material to the environment than those associated with

operation.

(2) The Commission may approve an alternate schedule for submittal

of a decommissioning plan required pursuant to paragraph (d) of this

section if the Commission determines that the alternative schedule is

necessary to the effective conduct of decommissioning operations and

presents no undue risk from radiation to the public health and safety

and is otherwise in the public interest.

(3) The procedures listed in paragraph (f)(1) of this section may

not be carried out prior to approval of the decommissioning plan.

(4) The proposed decommissioning plan for the site or separate

building or outdoor area must include:

(i) A description of the conditions of the site or separate

building or outdoor area sufficient to evaluate the acceptability of

the plan;

(ii) A description of planned decommissioning activities;

(iii) A description of methods used to ensure protection of workers

and the environment against radiation hazards during decommissioning;

(iv) A description of the planned final radiation survey; and

(v) An updated detailed cost estimate for decommissioning,

comparison of that estimate with present funds set aside for

decommissioning, and a plan for assuring the availability of adequate

funds for completion of decommissioning.

(vi) A description of the physical security plan and material

control and accounting plan provisions in place during decommissioning.

(vii) For decommissioning plans calling for completion of

decommissioning later than 24 months after plan approval, a

justification for the delay based on the criteria in paragraph (h) of

this section.

(5) The proposed decommissioning plan will be approved by the

Commission if the information therein demonstrates that the

decommissioning will be completed as soon as practical and that the

health and safety of workers and the public will be adequately

protected.

(g)(1) Except as provided in paragraph (h) of this section,

licensees shall complete decommissioning of the site or separate

building or outdoor area as soon as practicable but no later than 24

months following the initiation of decommissioning.

(2) Except as provided in paragraph (h) of this section, when

decommissioning involves the entire site, the licensee shall request

license termination as soon as practicable but no later than 24 months

following the initiation of decommissioning.

(h) The Commission may approve a request for an alternate schedule

for completion of decommissioning of the site or separate building or

outdoor area, and license termination if appropriate, if the Commission

determines that the alternative is warranted by consideration of the

following:

(1) Whether it is technically feasible to complete decommissioning

within the allotted 24-month period;

(2) Whether sufficient waste disposal capacity is available to

allow completion of decommissioning within the allotted 24-month

period;

(3) Whether a significant volume reduction in wastes requiring

disposal will be achieved by allowing short-lived radionuclides to

decay;

(4) Whether a significant reduction in radiation exposure to

workers can be achieved by allowing short-lived radionuclides to decay;

and

(5) Other site-specific factors which the Commission may consider

appropriate on a case-by-case basis, such as regulatory requirements of

other government agencies, lawsuits, ground-water treatment activities,

monitored natural ground-water restoration, actions that could result

in more environmental harm than deferred cleanup, and other factors

beyond the control of the licensee.

(i) As the final step in decommissioning, the licensee shall--

(1) Certify the disposition of all licensed material, including

accumulated wastes, by submitting a completed NRC Form 314 or

equivalent information; and

(2) Conduct a radiation survey of the premises where the licensed

activities were carried out and submit a report of the results of this

survey unless the licensee demonstrates that the premises are suitable

for release in some other manner. The licensee shall, as appropriate--

(i) Report levels of gamma radiation in units of millisieverts

(microroentgen) per hour at one meter from surfaces, and report levels

of radioactivity, including alpha and beta, in units of megabecquerels

(disintegrations per minute or microcuries) per 100 square centimeters

removable and fixed for surfaces, megabecquerels (microcuries) per

milliliter for water, and becquerels (picocuries) per gram for solids

such as soils or concrete; and

(ii) Specify the survey instrument(s) used and certify that each

instrument is properly calibrated and tested.

(j) Specific licenses, including expired licenses, will be

terminated by written notice to the licensee when the Commission

determines that:

(1) Special nuclear material has been properly disposed;

(2) Reasonable effort has been made to eliminate residual

radioactive contamination, if present; and

(3)(i) A radiation survey has been performed which demonstrates

that the premises are suitable for release in accordance with NRC

requirements; or

(ii) Other information submitted by the licensee is sufficient to

demonstrate that the premises are suitable for release in accordance

with NRC requirements.

PART 72--LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF

SPENT NUCLEAR FUEL AND HIGH-LEVEL RADIOACTIVE WASTE

13. The authority citation for Part 72 continues to read as

follows:

Authority: Secs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, 183,

184, 186, 187, 189, 68 Stat. 929, 930, 932, 933, 934, 935, 948, 953,

954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C.

2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2232, 2233,

2234, 2236, 2237, 2238, 2282); sec. 274, Pub. L. 86-373, 73 Stat.

688, as amended (42 U.S.C. 2021); sec. 201, as amended, 202, 206, 88

Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846);

Pub. L. 95-601, sec. 10, 92 Stat. 2951 as amended by Pub. L. 102-

486, sec. 2902, 106 Stat. 3123 (42 U.S.C. 5851); sec. 102 Pub. L.

91-190, 83 Stat. 853 (42 U.S.C. 4332). Secs. 131, 132, 133, 135,

137, 141, Pub. L. 97-425, 96 Stat. 2229, 2230, 2232, 2241, sec. 148,

Pub. L. 100-203, 101 Stat. 1330-235 (42 U.S.C. 10151, 10152, 10153,

10155, 10157, 10161, 10168).

Section 72.44(g) also issued under secs. 142(b) and 148(c), (d),

Pub. L. 100-203, 101 Stat. 1330-232, 1330-236 (42 U.S.C. 10162(b),

10168(c), (d)). Section 72.46 also issued under sec. 189, 68 Stat.

955 (42 U.S.C. 2239); sec. 134, Pub. L. 97-425, 96 Stat. 2230 (42

U.S.C. 10154). Section 72.96(d) also issued under sec. 145(g), Pub.

L. 100-203, 101 Stat. 1330-235 (42 U.S.C. 10165(g)). Subpart J also

issued under secs. 2(2), 2(15), 2(19), 117(a), 141(h), Pub. L. 97-

425, 96 Stat. 2202, 2203, 2204, 2222, 2244, (42 U.S.C. 10101,

10137(a), 10161(h)). Subparts K and L are also issued under sec.

133, 98 Stat. 2230 (42 U.S.C. 10153) and Sec. 218(a) 96 Stat. 2252

(42 U.S.C. 10198).

14. In Sec. 72.3, a definition of the term principal activities is

added in alphabetical order to read as follows:

Sec. 72.3 Definitions.

* * * * *

Principal activities, as used in this part, means activities

authorized by the license which are essential to achieving the

purpose(s) for which the license was issued or amended, excluding

activities incidental to decontamination or decommissioning.

* * * * *

15. Section 72.54 is revised to read as follows:

Sec. 72.54 Expiration and termination of licenses and decommissioning

of sites and separate buildings or outdoor areas.

(a) Each specific license expires at the end of the day on the

expiration date stated in the license except when a licensee has filed

an application for renewal pursuant to Sec. 72.42 not less than 24

months before the expiration of the existing license. If an application

for renewal has been filed at least 24 months prior to the expiration

date stated in the existing license, the existing license expires at

the end of the day on which the Commission makes a final determination

to deny the renewal application or, if the determination states an

expiration date, the expiration date stated in the determination.

(b) Each specific license revoked by the Commission expires at the

end of the day on the date of the Commission's final determination to

revoke the license or on the expiration date stated in the

determination or as otherwise provided by Commission Order.

(c) Each specific license continues in effect, beyond the

expiration date if necessary, with respect to possession of licensed

material until the Commission notifies the licensee in writing that the

license is terminated. During this time, the licensee shall--

(1) Limit actions involving spent fuel or other licensed material

to those related to decommissioning; and

(2) Continue to control entry to restricted areas until they are

suitable for release in accordance with NRC requirements.

(d) As required by Sec. 72.42(d), or within 60 days of the

occurrence of any of the following, consistent with the administrative

directions in Sec. 72.4, each licensee shall notify the NRC in writing,

and submit within 12 months of this notification, a final

decommissioning plan and begin decommissioning upon approval of the

plan if--

(1) The licensee has decided to permanently cease principal

activities, as defined in this part, at the entire site or any separate

building or outdoor area that contains residual radioactivity such that

the building or outdoor area is unsuitable for release in accordance

with NRC requirements; or

(2) No principal activities under the license have been conducted

for a period of 24 months; or

(3) No principal activities have been conducted for a period of 24

months in any separate building or outdoor area that contains residual

radioactivity such that the building or outdoor area is unsuitable for

release in accordance with NRC requirements.

(e)(1) The Commission may grant a request to delay or postpone

initiation of the decommissioning process if the Commission determines

that this relief is not detrimental to the public health and safety and

is otherwise in the public interest. The request must be submitted no

later than 30 days before notification pursuant to paragraph (d) of

this section. The schedule for decommissioning set forth in paragraph

(d) of this section may not commence until the Commission has made a

determination on the request.

(2) The Commission may approve an alternate schedule for submittal

of the final decommissioning plan required pursuant to paragraph (d) of

this section if the Commission determines that the alternate schedule

is necessary to the effective conduct of decommissioning operations and

presents no undue risk from radiation to the public health and safety,

and is otherwise to the public interest.

(f) The proposed final decommissioning plan must include--

(1) A description of the current conditions of the site or separate

building or outdoor area sufficient to evaluate the acceptability of

the plan;

(2) The choice of the alternative for decommissioning with a

description of the activities involved;

(3) A description of controls and limits on procedures and

equipment to protect occupational and public health and safety;

(4) A description of the planned final radiation survey; and

(5) An updated detailed cost estimate for the chosen alternative

for decommissioning, comparison of that estimate with present funds set

aside for decommissioning, and plan for assuring the availability of

adequate funds for completion of decommissioning including means for

adjusting cost estimates and associated funding levels over any storage

or surveillance period; and

(6) A description of technical specifications and quality assurance

provisions in place during decommissioning.

(g) For final decommissioning plans in which the major

dismantlement activities are delayed by first placing the ISFSI or MRS

in storage, planning for these delayed activities may be less detailed.

Updated detailed plans must be submitted and approved prior to the

start of these activities.

(h) If the final decommissioning plan demonstrates that the

decommissioning will be completed as soon as practicable, performed in

accordance with the regulations in this chapter, and will not be

inimical to the common defense and security or to the health and safety

of the public, and after notice to interested persons, the Commission

will approve the plan subject to any appropriate conditions and

limitations and issue an order authorizing decommissioning.

(i)(1) Except as provided in paragraph (j) of this section, each

licensee shall complete decommissioning of the site or separate

building or outdoor area as soon as practicable but no later than 24

months following approval of the final decommissioning plan by the

Commission.

(2) Except as provided in paragraph (j) of this section, when

decommissioning involves the entire site, each licensee shall request

license termination as soon as practicable but no later than 24 months

following approval of the final decommissioning plan by the Commission.

(j) The Commission may approve a request for an alternate schedule

for completion of decommissioning of the site or separate building or

outdoor area, and license termination if appropriate, if the Commission

determines that the alternate schedule is warranted by consideration of

the following:

(1) Whether it is technically feasible to complete decommissioning

within the allotted 24-month period;

(2) Whether sufficient waste disposal capacity is available to

allow completion of decommissioning within the allotted 24-month

period;

(3) Whether a significant volume reduction in wastes requiring

disposal will be achieved by allowing short-lived radionuclides to

decay;

(4) Whether a significant reduction in radiation exposure to

workers can be achieved by allowing short-lived radionuclides to decay;

and

(5) Other site-specific factors that the Commission may consider

appropriate on a case-by-case basis, such as regulatory requirements of

other government agencies, lawsuits, ground-water treatment activities,

monitored natural ground-water restoration, actions that could result

in more environmental harm than deferred cleanup, and other factors

beyond the control of the licensee.

(k) As the final step in decommissioning, the licensee shall--

(1) Certify the disposition of all licensed material, including

accumulated wastes, by submitting a completed NRC Form 314 or

equivalent information; and

(2) Conduct a final radiation survey of the premises where the

licensed activities were conducted and submit a report of the results

of this survey, unless the licensee demonstrates that the premises are

suitable for release in some other manner. The licensee shall, as

appropriate--

(i) Report levels of gamma radiation in units of millisieverts

(microroentgen) per hour at one meter from surfaces, and report levels

of radioactivity, including alpha and beta, in units of megabecquerels

(disintegrations per minute or microcuries) per 100 square centimeters

removable and fixed for surfaces, megabecquerels (microcuries) per

milliliter for water, and becquerels (picocuries) per gram for solids

such as soils or concrete; and

(ii) Specify the survey instrument(s) used and certify that each

instrument is properly calibrated and tested.

(l) Specific licenses, including expired licenses, will be

terminated by written notice to the licensee when the Commission

determines that--

(1) The decommissioning has been performed in accordance with the

approved final decommissioning plan and the order authorizing

decommissioning; and

(2)(i) A radiation survey has been performed which demonstrates

that the premises are suitable for release in accordance with NRC

requirements; or

(ii) Other information submitted by the licensee is sufficient to

demonstrate that the premises are suitable for release in accordance

with NRC requirements.

16. In Sec. 72.86, paragraph (b), is revised to read as follows:

Sec. 72.86 Criminal penalties.

* * * * *

(b) The regulations in this Part 72 that are not issued under

Sections 161b, 161i, or 161o for the purposes of Section 223 are as

follows: Secs. 72.1, 72.2, 72.3, 72.4, 72.5, 72.7, 72.8, 72.9, 72.16,

72.18, 72.20, 72.22, 72.24, 72.26, 72.28, 72.32, 72.34, 72.40, 72.46,

72.56, 72.58, 72.60, 72.62, 72.84, 72.86, 72.90, 72.96, 72.108, 72.120,

72.122, 72.124, 72.126, 72.128, 72.130, 72.182, 72.194, 72.200, 72.202,

72.204, 72.206, 72.210, 72.214, 72.220, 72.230, 72.236, 72.238, and

72.240.

Conforming Amendment

The following amendment to Chapter I of Title 10 generally updates

citations to 10 CFR Parts 30, 40, 70 and 72 and is found in Part 2 of

the NRC regulations. This amendment is particularly important as it

goes beyond updating cross-reference citations. The amendment to 10 CFR

Part 2, Appendix C updates and modifies the examples of severity

levels. Because Appendix C is a policy statement of the Commission and

not a regulation, the Commission is issuing the amendment to the

Commission's enforcement policy in 10 CFR Part 2, Appendix C in final

form without public comment.

PART 2--RULES OF PRACTICE FOR DOMESTIC LICENSING PROCEEDINGS AND

ISSUANCE OF ORDERS

17. The authority citation for Part 2 continues in part to read as

follows:

Authority: Sec. 161, 68 Stat. 948, as amended (42 U.S.C. 2201);

sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841)

* * * * *

18. In Appendix C to 10 CFR Part 2, Supplement VI, Section C is

amended by revising paragraphs 9, and 10, and by adding a new paragraph

11, as follows:

Appendix C--General Statement of Policy and Procedure for NRC

Enforcement Actions

* * * * *

Supplement VI--Fuel Cycle and Materials Operations

C. Severity Level III--Violations involving for example:

* * * * *

9. A failure to submit an NRC Form 241 in accordance with the

requirements in Sec. 150.20 of 10 CFR part 150;

10. A failure to receive required NRC approval prior to the

implementation of a change in licensed activities that has

radiological or programmatic significance, such as, a change in

ownership; lack of an RSO or replacement of an RSO with an

unqualified individual; a change in the location where licensed

activities are being conducted, or where licensed material is being

stored where the new facilities do no meet safety guidelines; or a

change in the quantity or type of radioactive material being

processed or used that has radiological significance; or

11. A significant failure to meet decommissioning requirements

including a failure to notify the NRC as required by regulation or

license condition, substantial failure to meet decommissioning

standards, failure to conduct and/or complete decommissioning

activities in accordance with regulation or license condition, or

failure to meet required schedules without adequate justification.

Dated at Rockville, Maryland, this 11th day of July, 1994.

For the Nuclear Regulatory Commission.

John C. Hoyle,

Acting Secretary of the Commission.

[FR Doc. 94-17206 Filed 7-14-94; 8:45 am]

BILLING CODE 7590-01-P