Certification of Gaseous Diffusion Plants; Proposed Rule NUCLEAR REGULATORY COMMISSION

SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend

its regulations to add a new part that would include the requirements

for certification and operation of the U.S. Department of Energy (DOE)

owned gaseous diffusion plants that enrich uranium. These proposed

regulations would protect the public health and safety from

radiological hazards and would provide for the common defense and

security, including adequate safeguards, in all uranium enrichment

activities of the United States Enrichment Corporation (USEC) in its

operation of the two gaseous diffusion plants that USEC is leasing from

the DOE. These two plants are located in Paducah, Kentucky, and

Portsmouth, Ohio. In addition to the proposed new part, a number of

conforming amendments are also being proposed to NRC's Regulations.

DATES: Submit comments by April 12, 1994. Comments received after this

date will be considered if it is practical to do so, but the Commission

is able to assure consideration only for comments received on or before

this date.

ADDRESSES: Mail written comments to: Secretary, U.S. Nuclear Regulatory

Commission, Washington, DC, 20555. ATTN: Docketing and Service Branch.

Hand deliver comments to: 11555 Rockville Pike, Rockville, MD,

20852, between 7:45 am and 4:15 pm Federal workdays.

Copies of comments received, the environmental assessment, finding

of no significant impact, and the regulatory analysis may be examined

at the NRC Public Document Room, 2120 L Street NW. (Lower Level),

Washington, DC.

FOR FURTHER INFORMATION CONTACT: Mr. C. W. Nilsen, Office of Nuclear

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

20555, telephone (301) 492-3834; Mr. S. R. Ruffin, Office of Nuclear

Material Safety and Safeguards, U.S. Nuclear Regulatory Commission,

Washington, DC 20555, telephone (301) 504-2696; Mr. C. B. Sawyer,

Office of Nuclear Material Safety and Safeguards, U.S. Nuclear

Regulatory Commission, Washington, DC 20555, telephone (301) 504-2366;

or Mr. D. G. Kidd, Office of Administration, Division of Security, U.S.

Nuclear Regulatory Commission, Washington, DC 20555, telephone (301)

492-4127.

SUPPLEMENTARY INFORMATION:

Background

The President signed H.R. 776, the ``Energy Policy Act of 1992''

(the Act), into law on October 24, 1992. The Act amended the Atomic

Energy Act of 1954 (``AEA''), to establish a new government

corporation, the U.S. Enrichment Corporation (the ``Corporation''), for

the purpose of managing and operating the uranium enrichment enterprise

previously owned and operated by the Department of Energy. Section 1701

of the AEA, as amended, provides that within 2 years after enactment of

the legislation, the NRC is required to promulgate standards that will

apply to the two operating gaseous diffusion plants to protect the

public health and safety from radiological hazards, and to provide for

the common defense and security. The NRC is proposing to establish

requirements and procedures for the certification process by addition

of a new part to Chapter I of Title 10 of the Code of Federal

Regulations.

Section 1701(b)(2) of the AEA, as amended, directs the NRC to

establish a certification process under which the two gaseous diffusion

plants at Portsmouth, Ohio, and Paducah, Kentucky, to be operated by

the Corporation, will be annually certified by the NRC for compliance

with those standards.

The Commission recognizes that the gaseous diffusion plants were

designed and constructed before the new certification requirement was

established in the Energy Policy Act of 1992, and that they have

operated safely for approximately 40 years. This proposed rule is based

upon comparable NRC requirements that have been in place for a number

of years, and that the staff believes are adequate and appropriate for

the gaseous diffusion plants, and are at least as stringent as the DOE

requirements under which the plants currently operate. However, in

notice and comment rulemaking there is the potential that as a result

of public comment on the proposed rule, the final rule may include

different criteria. In this connection, commenters should be informed

that the DOE has identified oversight operational requirements to be

met by the gaseous diffusion plants for the transition period in which

DOE continues to regulate the plants, until NRC assumes responsibility

for regulatory oversight. The NRC will not assume regulatory oversight

authority until after it establishes the final rule and completes the

first certification process. The DOE submittal which describes

oversight requirements may be reviewed in the NRC Public Document Room.

Also, the Corporation has submitted unsolicited proposed standards

for the gaseous diffusion plants which are included as Appendix A to

this document. The Commission invites comments on whether some or all

of the requirements proposed by the Corporation or contained in the DOE

oversight requirements should be used in lieu of those proposed by the

Commission. Based on public comments, the Commission will consider

whether it should adopt selected portions of them in the final rule.

The Commission must determine that the certification process, including

any modifications based on public comments, will provide an adequate

level of protection of the public health and safety, the environment,

and the common defense.

The Commission has also prepared a side-by-side comparison of the

proposed regulations with the requirements set forth in DOE's

transition document and existing NRC regulations. The document can be

reviewed in the NRC Public Document Room. The Commission explicitly

invites public comment on whether any of the proposed requirements

exceed those necessary to protect the public health and safety and, if

so, whether the added safety protection warrants the costs that would

be incurred to implement the requirement.

In addition to the proposed new part 76, a number of conforming

changes are also being proposed to the provisions of Chapter I of Title

10 of the Code of Federal Regulations. These changes would be necessary

to implement the new part.

Proposed Action

The Commission is proposing to add a new 10 CFR Part 76 entitled

``Certification of Gaseous Diffusion Plants.'' This new part will

include procedural requirements, generally applicable NRC health and

safety standards, technical safety requirements, and safeguards and

security requirements specific to the gaseous diffusion plants. The

Commission will use the requirements included in this new Part 76 to

satisfy Energy Policy Act requirements. The certification requirements

in this proposed rulemaking include actions that are either required by

the Act or required by the Commission's own procedures to protect the

public health and safety from radiological hazards, to provide for the

common defense and security, and to ensure adequate safeguards.

A. General Requirements.

The general requirements being proposed are based on and derived

mainly from 10 CFR part 70. Part 70 contains the regulations used by

the Commission to license the possession of special nuclear material at

major fuel cycle facilities for which the NRC has regulatory

responsibility for protecting public health and safety, and the common

defense and security. Specific proposed sections in this new part,

which are based on 10 CFR Part 70, as modified for the certification

process, include the following:

Section 76.1 Purpose. This section defines the purpose of Part 76

to be limited to certification of the existing 40 year old gaseous

diffusion plants previously operated by the Department of Energy.

(Reference Sec. 70.1).

Section 76.2 Scope. This section defines the scope of Part 76 to

cover the operation of gaseous diffusion plants previously operated by

DOE and leased to the Corporation, and clarifies the new part applies

only to those plants. (Reference Sec. 70.2).

Section 76.4 Definitions. This section contains definitions of

terms as used in this part. (Reference Sec. 70.4).

Section 76.5 Communications. This section describes requirements

for oral and written submissions to the Commission. (Reference

Sec. 70.5).

Section 76.6 Interpretations. This section contains requirements

for interpretations authorized by the Commission. (Reference

Sec. 70.6).

Section 76.7 Employee protection. This section indicates that

discrimination is prohibited. (Reference Sec. 70.7).

Section 76.8 Information collection requirements: OMB approval not

required. This section indicates that the information collection

requirements contained in this part need not be reviewed and approved

by the Office of Management and Budget in accordance with the paperwork

Reduction Act (Reference Sec. 70.8).

Section 76.9 Completeness and accuracy of information. This

section specifies that all information must be complete and accurate.

(Reference Sec. 70.9).

Section 76.10 Deliberate misconduct. This section prohibits

certain Corporation activities and describes resulting enforcement

action. (Reference Sec. 70.10).

Section 76.23 Specific exemptions. This section specifies that the

Commission may grant exemptions. (Reference Sec. 70.14).

Section 76.76 Backfitting. This section sets forth the conditions

for backfitting the plants and establishes backfit

guidelines.(Reference Sec. 50.109).

Section 76.81 Authorized use of radioactive material. The section

sets forth requirements for the Corporation's possession and use of

radioactive material. (Reference Sec. 70.41).

Section 76.83 Transfer of radioactive material. This section

contains requirements for the Corporation's transfer of radioactive

material. (Reference Sec. 70.42).

Section 76.89 Criticality accident requirements. This section

contains monitoring requirements for criticality accidents. (Reference

Sec. 70.24).

Section 76.91 Emergency planning. This section contains emergency

planning requirements. (Reference Sec. 70.22(i)).

Section 76.120 Reporting requirements. This section contains

requirements for 1-hour notification, 4-hour notification, 24-hour

notification, and for preparation and submission of reports. (Reference

Sec. 70.50, Sec. 70.52, and Sec. 74.11).

Section 76.121 Inspections. This section states that the

Corporation shall afford the Commission opportunity for inspection and

that office space for Commission inspection personnel must be provided.

(Reference Sec. 70.55).

Section 76.131 Violations. This section specifies actions the

Commission may take, to include obtaining a court order to prevent a

violation and contains civil penalty provisions. (Reference

Sec. 70.71).

Section 76.133 Criminal penalties. This section specifies criminal

sanctions for violations. For purposes of section 223 of the Atomic

Energy Act of 1954, as amended, which provides for criminal sanctions,

all regulations in part 76 are issued under one or more of sections

161b, 161i, or 161o except for the sections listed in Sec. 76.133(b).

(Reference Sec. 70.72).

B. Procedural Requirements

As directed by Section 1701(c) of the AEA, as amended, the proposed

rule contains procedures for the annual certification process. Apart

from requiring an annual application for a certificate of compliance

and a determination by the Commission, in consultation with EPA, of

compliance with the NRC's standards, the legislation does not specify

procedures for the certification process. In addition, the amendments

to the AEA provide that the requirement for a certificate of compliance

is in lieu of any requirement for a license. Thus, the NRC has

substantial discretion in determining appropriate procedures for the

certification process. By providing for public notice and a written

comment period with respect to an application for a certificate of

compliance, as well as the opportunity for the Corporation and other

interested parties to petition the Commission for review of the

decision to grant or deny a certificate or request for approval of a

compliance plan, the Commission believes that it is proposing a fair

and efficient procedural scheme.

The procedural requirements being proposed for the certification

process, to implement provisions of the Act and to constitute the

Commission's proposed certification process, include:

Section 76.21 Certificate required. This section contains the

requirement to obtain a certificate of compliance to operate the

gaseous diffusion plants. (Reference the Act).

Section 76.31 Annual application requirement. This section

specifies the annual application requirements for the certificate of

compliance. (Reference the Act).

Section 76.33 Application procedures. This section contains filing

requirements and specifies the required contents of the application.

Section 76.37 Federal Register notice. This section concerns

public notice of the filing of an application and the opportunity for

public comment.

Section 76.39 Public meeting. This section describes the

procedures for a public meeting on the application to be held at the

discretion of the Director, Office of Nuclear Material Safety and

Safeguards (NMSS), NRC, and provisions for a transcript of a meeting. A

public meeting will be held on the first certification application.

Section 76.41 Record underlying decisions. This section specifies

that any decision must be based on information in the record and that

significant information on any proceeding, with limited exceptions,

must be part of the public docket. This is not intended to constitute a

requirement of adjudication on the record after opportunity for agency

hearing under the Administrative Procedure Act.

Section 76.43 Annual date for decision. This section describes the

timing of the annual decision on the application by the Director, NMSS.

Section 76.45 Application for amendment of certificate. This

section states the procedure for the Corporation to apply for an

amendment of a certificate prior to the established date of the next

application for a certificate.

Section 76.51 Conditions of certification. This section requires

compliance by the Corporation with all requirements set forth and

referenced in Part 76 or in a certificate of compliance or approved

compliance plan.

Section 76.53 Consultation with Environmental Protection Agency

(EPA). This section requires that the Commission will consult with the

EPA in making the annual decision on the application for a certificate,

including the provisions of any compliance plan.

Section 76.55 Timely renewal. This section states that timely and

sufficient filing of an application for a certificate of compliance

maintains in effect any existing certification or approved compliance

plan until issuance of a final and effective decision on the

application. This addresses the unlikely situation in which the

Commission is unable to make its final, annual determinations regarding

an application for a certificate of compliance despite the filing of a

sufficient application. In this case, the Commission will deem its

prior determinations regarding compliance to be its current and

effective determinations until final resolution of the subsequent

application and will advise Congress accordingly in its annual report

under section 1701(b) of the AEA, as amended. The Commission invites

commenters to specifically address this proposal.

Section 76.60 Regulatory requirements which apply. This section

specifies the requirements which the NRC will apply for certification

of the Corporation's operation of the gaseous diffusion plants.

Section 76.62 Issuance of certificate or approval of compliance

plan. This section specifies that the Director, NMSS, may issue a

certificate or approval of a compliance plan, requires notice of the

decision in the Federal Register, and states that the Corporation or

affected members of the public who have provided comments in the

proceeding may seek the Commission's review of the Director's decision.

Section 76.64 Denial of certificate or compliance plan. This

section states that the Director, NMSS, may deny a certificate or

compliance plan and that the denial must be noticed in the Federal

Register. This section also provides an opportunity for action by the

Corporation before denial. It also states that the Corporation or

affected members of the public who have provided comments on the

application may seek the Commission's review of the Director's

decision.

Section 76.68 Plant changes. This section describes plant or

operational changes permitted by the Corporation with or without prior

Commission approval. Documentation of revisions that do not require

Commission approval must be submitted to the NRC. For changes that

require Commission approval the Corporation may apply for an amendment

of a certificate under Sec. 76.45.

Section 76.70 Post issuance. This section specifies procedures for

amendment, revocation, suspension, or amendment for cause of the

certificate.

Section 76.72 Miscellaneous procedural matters. This section

addresses procedures for filing petitions, ruling on matters of

procedure, and communication between Commission and staff. Additional

guidance regarding the filing and service of petitions for review of

the Director's decision and responses to such petitions may be included

in the Director's decision or by order of the Commission.

Except for proceedings under 10 CFR part 2, Subpart G for

imposition of a civil penalty, the Commission is not imposing

restrictions on ex parte communications or on the ability of the NRC

staff and the Commission to communicate with one another at any stage

of this regulatory process. Staff would not participate in a review of

the Director's decision as a party, but rather would serve as an

advisor to the Commission. Congress has not required formal

adjudication, and the Commission believes that informal processing

without such formal restrictions on communication are best suited for

resolution of applications for a certificate on an annual basis.

C. Technical Safety Requirements

The major technical safety requirements proposed are found in the

following sections:

Section 76.35 Contents of applications. This section specifies

that applications must include a safety analysis report, a compliance

status report which includes environmental and effluent monitoring

data, a quality assurance program description, a description of use of

radioactive material, a description of the training program, a nuclear

material control and accounting plan, a physical protection plan for

special nuclear material in transit, a plant physical security plan, an

emergency plan, a plan for security facility approval and protection of

classified information and hardware, a description of the Corporation's

response necessary to implement International Atomic Energy Agency

safeguards, and a description of the waste treatment and management

program.

The proposed paragraphs 76.35 (k) and (l), would require a

description of the depleted uranium and waste management programs,

including funding plans to assure availability of funds to implement

the programs. The Commission is aware that DOE has established a

decommissioning fund (See 58 FR 41160, (August 2, 1993) 10 CFR Part 76,

``Uranium Enrichment Decontamination and Decommissioning Fund;

Procedures for Special Assessment of Domestic Utilities'' for a

description of the fund's and DOE's requirements), and is inclined to

interpret that the NRC has no regulatory jurisdiction in the area of

decommissioning funds. The Commission is inclined to interpret the Act

to terminate NRC regulatory jurisdiction over the Department's gaseous

diffusion plants if and when the Corporation ceases operations and the

plants are brought to a cold shutdown condition. Oversight

responsibility would then revert to DOE which will be responsible for

the plants' decontamination and decommissioning including disposal of

all wastes and disposition of any depleted uranium at the sites. Under

this interpretation, the Corporation's plans for wastes and depleted

uranium will therefore be matters for DOE, rather than NRC, to address.

The Commission requests comments on appropriate interpretations of the

Energy Policy Act of 1992, and after taking into account any such

comments, the Commission may eliminate the requirements under

Sec. 76.35 (k) and (l).

The proposed rule would require any application which contains

Restricted Data, classified National Security Information, Safeguards

Information, proprietary or other withholdable data to be prepared in

such a manner that all such information or data are separated from the

information to be made available to the public.

Section 76.85 Assessment of accidents. This section contains the

requirement for performance of a safety analysis of the potential for

releases of radioactive material from accidents.

Specifically, the proposed rule requires that a safety analysis of

the site activities be performed to evaluate the potential for releases

of radiological material from the existing plants. The analysis would

evaluate releases from a reasonable spectrum of postulated accident

scenarios which may occur in the gaseous diffusion plants taking into

account the existing systems in operation, including procedures, that

are intended to mitigate the consequence of any release. These

potential releases, together with operational practices and site

characteristics, including meteorology, are to be used to evaluate the

potential onsite and offsite radiological consequences.

The Corporation must provide a level of protection against

accidents during plant operations sufficient to provide adequate

protection of the public health and safety. In assessing the level of

protection provided by the Corporation, the operational safety

objectives to be used by the Commission will be that no individual at

the site boundary would be likely to receive a total radiation dose to

the whole body in excess of .25 Sv (25 rems) (total effective dose

equivalent). The Corporation must also provide an assessment of public

health and safety as a result of an intake of soluble uranium in an

amount that can be considered as equivalent in risk to a .25 Sv (25

rems) acute radiation dose. The proposed .25 Sv (25 rems) objective was

chosen because there is little risk of permanent damage in the event of

an accidental release and it is also used in 10 CFR part 100 for part

50 licensees. The above objectives will be used by NRC as a factor to

assist in arriving at an overall public health and safety

determination, and it does not constitute a siting criterion for the

uranium enrichment plants. Instead, it should be used by the

Corporation as an operational goal, and the Corporation should

accordingly provide information pertaining to specifications for

conducting plant operations that would result in this goal being met or

that adequate supplementary protective measures are developed and

implemented.

In proposing that the Corporation evaluate intakes of soluble

uranium the Commission recognizes that the chemical toxicity of uranium

could be the limiting factor in the accident analyses under this

section. The Commission's intent to use chemical toxicity

considerations in part 76 is consistent with its practice elsewhere

(e.g., 10 CFR 20.1201(e)), and prevents any potential regulatory gap in

public protection against the toxic effects of soluble uranium. In this

regard, the NRC staff has placed a contract to conduct an extensive

evaluation of the available international literature on the toxic

effects of uranium in humans, with emphasis on sensitive populations

such as children and pregnant women which were not evaluated in earlier

NRC studies. This review will encompass the present regulatory

structure in place in various U.S. government agencies and should

identify any inconsistencies in approach or level of protection

achieved for both occupational and public exposures to uranium to

determine an acceptable basis for evaluating the gaseous diffusion

plants. The results of this analysis will be available by July, 1994,

and will be considered in evaluating the Corporation's application.

The Commission is interested in comments on the use of safety

objectives, including suggested limiting values with supporting

rationale, and whether or not they should be included as part of the

rule.

In a related matter, the NRC staff recently announced that it is

developing guidance and regulatory requirements on integrated safety

analysis (ISA) of licensed fuel cycle facilities (58 FR 40167, July 27,

1993). An ISA is a systematic review process by which a licensee or

applicant will analyze its facility and processes and will assemble

essential information for the safety analysis report. It is too early

to determine how this effort will affect the gaseous diffusion plants.

However, when a determination is made in the future regarding any

additional safety analysis requirements for licensed fuel cycle

facilities or the methodology for implementing them, the applicability

of these methodologies to gaseous diffusion plants will also be

addressed.

Section 76.87 Technical safety requirements. This proposed section

specifies that safety requirements must be included in the application.

Safety topics to be considered are those mainly associated with the

plant operations, management controls, and confinement of radioactive

material.

The proposed rule requires the Corporation to include technical

safety requirements derived from analyses and evaluations included in

the safety analysis report. These safety requirements would include

safety limits and limiting control settings within which process

variables would be maintained for adequate control to guard against the

uncontrolled release of radioactivity. The safety requirements would

also include limiting conditions for operation, surveillance

requirements, design features, and administrative controls. The

requirements are similar to operating technical specifications or

license conditions applied to nuclear fuel cycle plants to assure that

operations are controlled as described in the safety analysis report.

Section 76.93 Quality assurance. This section requires a quality

assurance program. The Commission recognizes that the GDPs are fuel

cycle facilities and that the appropriate quality assurance (QA) for

GDPs is not the same as for reactors. The GDPs are existing plants and

they were designed, constructed, and assembled over 40 years ago. The

QA requirements for the GDPs will be based on applying the applicable

QA criteria of ASME NQA-1-1989, ``Quality Assurance Program

Requirements for Nuclear Facilities'', in a graded approach and to an

extent that is commensurate with the importance to safety.

Section 76.95 Training. This section requires a description of the

training program, that will be provided to personnel to enable them to

perform the functions of their jobs, including information on the

positions for which training will be provided, to assure that personnel

are qualified to operate and maintain the plants safely and in

compliance with the regulatory requirements.

D. Incorporation of Existing Regulations

In addition, portions of other existing Commission regulations will

be applicable for certification of the Corporation's operation of the

gaseous diffusion plants (proposed Sec. 76.60). They are contained in

Title 10, Code of Federal Regulations as follows:

Requirements for notices, instructions, and reports to workers are

contained in 10 CFR part 19, ``Notices, Instructions, and Reports To

Workers: Inspection and Investigations.'' Part 19 specifies the

requirements for notices, instructions, and reports by the Corporation

to individuals participating in gaseous diffusion activities. It also

sets forth the rights and responsibilities of the Commission and

individuals during interviews on any matter within the Commission's

jurisdiction.

Requirements for protection against ionizing radiation are

contained in 10 CFR part 20, ``Standards For Protection Against

Radiation.'' Part 20 specifies the requirements to control the receipt,

possession, use, storage, transfer, and disposal of byproduct, source,

and special nuclear material by the Corporation in such a manner that

the total dose to an individual (including doses resulting from

radioactive material and from radiation sources other than background

radiation) does not exceed the standards for protection against

radiation prescribed by the NRC for normal operating conditions and

anticipated operational occurrences.

Requirements for reporting of defects and noncompliance are

contained in 10 CFR part 21, ``Reporting of Defects and

Noncompliance.'' Part 21 specifies the procedures and requirements for

persons to notify the Commission immediately of component defects or

failure to comply with regulatory requirements which could create a

substantial safety hazard.

Requirements for fitness-for-duty programs are contained in 10 CFR

part 26, ``Fitness-for-Duty Programs.'' It is the purpose of part 26 to

prescribe requirements and standards for establishment and maintenance

of fitness-for-duty programs to reduce the likelihood of theft or

diversion of strategic special nuclear material. The requirements of

this part are relevant only to the extent that the Corporation elects

to engage in activities which involve formula quantities of strategic

special nuclear material.

Requirements for packaging and transportation are contained in 10

CFR part 71, ``Packaging and Transportation of Radioactive Material.''

It is the purpose of part 71 to establish requirements and procedures

for packaging, preparation for shipment, and transportation of

radioactive material.

Requirements for physical security and material control and

accounting are contained in 10 CFR part 70, ``Domestic Licensing of

Special Nuclear Material,'' part 73, ``Physical Protection of Plants

and Materials,'' and part 74, ``Material Control and Accounting of

Special Nuclear Material,'' as specified in Subpart E to this part. It

is the purpose of Subpart E to identify the specific sections that

establish the requirements and procedures for transfer, protection at

fixed sites and in transit, and control and accounting of the various

enrichments of U235 covered under the certification.

Safeguards regulation of special nuclear material is conducted on a

graded basis. The grades reflect the importance of specified kinds and

quantities of material to the public safety and to the common defense

and security. Three grades of material are defined in Commission

regulations. In declining order of importance they are:

(1) Formula quantities of strategic special nuclear material (also

referred to by the shorter phrase ``Category I material'');

(2) Special nuclear material of moderate strategic significance

(Category II), and

(3) Special nuclear material of low strategic significance

(Category III).

The gaseous diffusion plants are to produce only Category III

material and only the safeguards for that grade of material need apply

to production activities. Nonetheless, the Commission recognizes that

the Corporation may need to or may opt to engage in nonproduction

activities that involve the other categories of material. One reason

stems from the fact that in the past, the Portsmouth plant has produced

high enriched uranium hexafluoride (UF6). As a result of this past

production, there may be portions of the plant under lease by the

Corporation or to which the Corporation will have access that will

continue to have high enriched UF6 fixed to interior surfaces of

process equipment. Additionally, some areas, such as the analytical

laboratory, may continue to have a high enriched inventory. A second

reason stems from the possibility that the Corporation may elect to

engage in nonproduction business activities that involve high enriched

UF6. To be responsive to the full range of possible Corporation

activities, safeguards regulations for all three categories of material

are listed in Subpart E and are to be applied in accordance with the

categories of material the Corporation actually uses, possesses, or has

access to.

Requirements for security facility approval and protection of

classified matter are contained in 10 CFR part 95, ``Security Facility

Approval and Safeguarding of National Security Information and

Restricted Data.'' It is the purpose of part 95 to establish

requirements and procedures for the foregoing matters. The Corporation

and its contractor personnel will be considered as authorized by the

Commission under 95.35(a) for access to classified matter based on

their DOE access authorizations.

NRC does not intend to incorporate any additional requirements for

personnel security screening for access to or control over special

nuclear material as contained in 10 CFR part 11, ``Criteria and

Procedures for Determining Eligibility for Access to or Control over

Special Nuclear Material,'' should the Corporation elect to engage in

activities which involve strategic special nuclear material. The

requirements for this separate access program are met by the DOE access

authorization program for the GDPs.

E. Overview of the Certification Process

The Act specifically provides for the NRC to issue a certificate of

compliance, in lieu of a license. The Commission intends that the

certificate would be a relatively simple document, which certifies

compliance with NRC requirements, subject to any applicable conditions,

and subject to the Corporation's adherence to the representations and

commitments in its application.

The initial certification would be based on review of an

application submitted by the Corporation. The initial application would

contain a complete description of operations, a safety analysis, and

other information required to demonstrate compliance with NRC

requirements. Subsequent applications could reference previously

submitted information. For annual reviews after the initial

certification, the Commission would focus on new information and

changes from the previous year, and public comments. The Commission

anticipates that it will perform a complete review, similar to that

performed for the initial certification, every 10 years. This would

correspond to the license renewal period for other fuel facilities.

The proposed rule also allows for unscheduled submittals in cases

where the Corporation proposes new or modified operations, and cannot

wait for the annual certification because of the significant nature of

the modification. In such cases, the Commission could issue an amended

certification.

In cases where either the Corporation or the Commission identifies

areas of non-compliance, a compliance plan would be submitted for NRC

approval as provided in the Act.

The Commission intends that the annual certification process will

follow a predictable schedule, with an application being filed in

April, publication of a Federal Register notice shortly thereafter

providing at least 30 days for public comment, a certification decision

in October, any appeals acted upon by December, and the required report

to Congress in January of the next year. However, in cases where there

are significant unresolved issues such that the Commission cannot

complete certification in a given year, a compliance plan could be

developed and approved or, if this is not possible because of time

constraints, a ``timely renewal'' provision allows the previous

certification to remain in effect pending resolution. The Commission

would still file an annual report with Congress, and identify the

unresolved issues.

A more detailed discussion of the certification process is provided

below:

I. Initial Certification

The Corporation would be required to initially apply to

the Commission for certification six months after promulgation of a

final rule (Sec. 76.31). Depending on when the final rule is issued,

the due date could be as early as January 1, 1995. The application for

certification must include: (a) A description of operations, (b) a

safety analysis and other information to demonstrate that the

Corporation is in compliance with NRC requirements, and/or (c) a plan

for achieving compliance with respect to any areas of noncompliance

with the NRC standards (Sec. 76.33).

The Director, Nuclear Material Safety and Safeguards would

promptly publish in the Federal Register a notice of receipt of an

application (Sec. 76.37). This would include: (a) A notice of

opportunity for public comment, with at least a 30 day comment period,

and (b) the date of public meetings near each site.

The staff would conduct a review based on information in

the record and facts officially noticed in the proceeding (Sec. 76.41).

The staff would consult with EPA on applications received

(Sec. 76.53).

The Director would render a decision within 6 months of

receipt of the application (Sec. 76.43).

I.A. Finding of Compliance or Approval of Compliance Plan

Upon a finding of compliance or approval of a compliance

plan, the Director would issue a written decision (Sec. 76.62(a)).

A notice of the Director's decision would be published in

the Federal Register (Sec. 76.62(b)).

The Corporation or any person whose interest may be

affected, and who is on the record having appropriately provided

written or oral comments, could file a petition with the Commission

within 15 days of the publication of the Federal Register notice

(Sec. 76.62(c)).

Any person who is on the record could file a response to

any petition for review within 10 days of the filing of the petition

(Sec. 76.62(c)).

The Commission could adopt, modify, set aside, or take

other appropriate action on the Director's decision within 60 days of

publication of the Federal Register notice. Otherwise, the Director's

decision would become final and effective (Sec. 76.62(d)).

Once the initial certification became final and effective,

the NRC would assume regulatory jurisdiction over the facilities.

The Commission would report to Congress in January

following initial certification on the status of health, safety, and

environmental conditions at the plants.

I.B. Finding of Non-Compliance or Disapproval of Compliance Plan

The Director could make an initial finding of non-

compliance or not approve a compliance plan upon review of a written

finding that the application is in non-compliance with one or more of

the Commission's requirements, or that the compliance plan is

inadequate to protect the public health and safety, environment, or

common defense and security (Sec. 76.64(a)).

Before making a final finding of non-compliance, the

Director would advise the Corporation in writing of any areas of non-

compliance, and offer the Corporation an opportunity to submit a

proposed compliance plan regarding those areas of non-compliance

(Sec. 76.64(c)).

Upon making a final determination of non-compliance, the

Director would publish notice of the decision in the Federal Register

(Sec. 76.64(b)).

The Corporation or any person whose interest could be

affected, and who is on the record having appropriately provided

written or oral comments, could file a petition with the Commission

within 15 days of the publication of the Federal Register notice

(Sec. 76.64(d)).

Any person who is on the record could file a response to

any petition for review within 10 days of the filing of the petition

(Sec. 76.6(d)).

The Commission could adopt, modify, set aside, or take

other appropriate action on the Director's decision within 60 days of

the Federal Register notice of the decision. Otherwise, the Director's

decision would become final and effective. (Sec. 76.64(e)).

The Commission would report to Congress in January

following initial certification on the status of health, safety, and

environmental conditions at the plants.

II. Annual Certification

After the initial application, annual application for

certification would be required to be received by April 15 of each year

(Sec. 76.31).

Information contained in previous applications,

statements, or reports filed with the Commission could be incorporated

by reference (Sec. 76.33(f)).

The Director would promptly publish in the Federal

Register a notice of receipt of an application (Sec. 76.37). This would

include a notice of opportunity for public comment for at least 30

days. It could also include a notice of public meetings if they are

determined by the Director to be in the public interest.

The Commission review would focus on new and previously

unreviewed information and public comments.

The Director's decision would be rendered on review of a

satisfactory application by October of each year.

The Director's decision would result in a:

(A) Finding of compliance or approval of compliance plan (see I.A.), or

(B) Finding of non-compliance or disapproval of compliance plan (see

I.B.).

III. Amendment of Certificate

The Corporation could make changes to a plant or a plant's

operation without prior Commission approval that do not reduce the

safety margin, result in undue risk to the public health and safety,

environment, and the common defense and security, or present an

unreviewed safety question (Sec. 76.68).

The Corporation could at any time apply for amendment of

the certificate to cover unreviewed information on new or modified

activities not addressed in the certificate. The submittal should

contain sufficient information for the Director to make findings of

compliance for the proposed activities as required for any other

certification (Sec. 76.45).

Information contained in previous applications,

statements, or reports filed with the Commission could be incorporated

by reference in any application for amendment ((Sec. 76.33(f)).

The Director would promptly publish a Corporation request

for amendment of the certificate in the Federal Register as a notice of

an application (Sec. 76.37). This would include a notice of opportunity

for public comment. It could also include a notice of a public meeting

if the Director determines that a meeting is in the public interest.

The Director's decision would be rendered within 6 months

of receipt of a satisfactory request to modify the safety basis or

compliance status of the plant.

The Director's decision would result in a:

(A) Finding of compliance or approval of compliance plan (see I.A.), or

(B) Finding of non-compliance or disapproval of compliance plan (see

I.B.).

IV. Timely Renewal

In any case where the Corporation has filed a timely application

for certification or a compliance plan, the existing certification or

compliance plan would not expire until the Commission has made a

determination on the Corporation's submittal (Sec. 76.55).

Commissioner Rogers' Additional Comments

Section 76.76 of the Proposed Rule addresses backfitting. I would

be particularly interested in comments on two issues regarding the

provisions of that section. These are (1) whether the provisions of

Sec. 76.76 should become effective immediately when 10 CFR part 76

becomes final, as would happen were the proposed section to remain

unchanged, or whether there should be some interim before these

provisions become effective (e.g. until completion of the first annual

certification following initial certification) and (2) whether the

standard for requiring a backfit should be that of Sec. 76.76(a)(3),

``* * * a substantial increase in the overall protection of the public

health and safety or the common defense and security * * *'' or the

less stringent standard of cost-effectiveness that is contained in

section 1(b)(6) of Executive Order 12866 of September 30, 1993, ``* * *

a reasoned determination that the benefits of the intended regulation

justify its costs.''

I raise these questions because the Corporation and the NRC have

only recently been given their respective responsibilities for the

operation and regulation of the gaseous diffusion plants, and

therefore, have had no prior corporate experience with these

responsibilities. While I have every confidence in the ability of both

organizations to carry out their responsibilities with a high degree of

competence, I expect that there will be a period during which both

organizations will gain additional knowledge about the configuration

and functioning of the plants.

Some of this new knowledge could suggest changes that would be

worthwhile from the standpoint of public health and safety or

safeguards. Moreover, while the NRC becomes more knowledgeable about

the regulation of these plants, it also will be re-examining and

considering changes to 10 CFR part 70, the regulation that served as a

model for proposed 10 CFR part 76. This re-examination was started as a

result of incidents that occurred at major materials facilities and

could lead to changes that also could have safety implications for 10

CFR part 76. For these reasons I would be interested in comments on the

potential advantages and disadvantages of delaying the effectiveness of

Sec. 76.76 for an appropriate interim.

With regard to the standard for imposing backfits, proposed

Sec. 76.76(a)(3) would require that a potential backfit meet the same

standard as that applied to potential nuclear power reactor backfits

that is contained in 10 CFR 50.109(a)(3). This standard has imposed a

salutary discipline on the Commission in its regulation of nuclear

power reactors. However, when this standard was first established in

1970, the regulations applicable to nuclear power reactors had already

been through a period of evolution. When the Commission confirmed the

standard in 1985, these regulations had again undergone some

considerable evolution as a result of lessons learned from the Three

Mile Island accident. 10 CFR part 76 has had no similar evolution.

Accordingly, I would be interested in comments on the advantages and

disadvantages of substituting the less stringent standard contained in

Sec. 1(b)(6) of Executive Order 12866 for the standard proposed in

Sec. 76.76(a)(3), at least for some period of time after 10 CFR part 76

becomes final.

Submission of Comments in Electronic Format

Commenters are encouraged to submit, in addition to the original

paper copy, a copy of the letter in electronic format on a DOS-

formatted (IBM compatible) 5.25 or 3.5 inch computer diskette. Text

files should be provided in WordPerfect format or unformatted ASCII

code. The format and version should be identified on the diskette's

external label.

Finding of No Significant Environmental Impact: Availability;

Categorical Exclusion

The Commission has determined under the National Environmental

Policy Act (NEPA) of 1969, as amended, and the Commission's regulations

in Subpart A of 10 CFR part 51, that this rule, if adopted, would not

be a major Federal action significantly affecting the quality of the

human environment and therefore, an environmental impact statement is

not required. The two plants to be regulated by this rule have already

been subject to evaluation in accordance with the National

Environmental Policy Act. The Department of Energy has prepared an

environmental impact statement for the gaseous diffusion plant in

Portsmouth, Ohio1, and an environmental assessment for the plant

in Paducah, Kentucky2. The Commission's proposed certification

requirements are intended to be at least as stringent as the existing

requirements applicable to the two plants which are currently operating

and have been operating for nearly 40 years. The promulgation of a rule

governing these plants and their subsequent regulation by the NRC will

not result in any environmental impacts beyond those which currently

exist or would be expected to continue absent NRC regulatory oversight.

The NRC environmental assessment and finding of no significant impact

on which this determination is based are available for inspection at

the NRC Public Document Room, 2120 L Street NW. (Lower Level),

Washington, DC.

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

\1\ Final Environmental Impact Statement, Portsmouth Gaseous

Diffusion Plant Site, May 1977, ERDA-1555; Final Environmental

Statement, Portsmouth Gaseous Diffusion Plant Expansion, September

1977, ERDA-1549.

\2\ Final Environmental Impact Assessment Of The Paducah Gaseous

Diffusion Plant Site, August 1982, DOE/EA-0155.

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

Similarly, subsequent certificates of compliance including

amendments, modifications and renewals issued pursuant to this part

will consist of findings of compliance with 10 CFR part 76. Therefore,

such actions will not result in any significant new environmental

impacts. Part 51 of Title 10 of the Code of Federal Regulations is

being amended to include a categorical exclusion for such certification

actions pursuant to part 76.

Under its procedures implementing NEPA, the Commission may exclude

from preparation of an environmental impact statement or an

environmental assessment a category of actions which do not

individually or cumulatively have a significant effect on the human

environment and which have been found to have no such effect in NRC

procedures. In this rulemaking, the Commission proposes to find that

the issuance, amendment, modification and revision of a certificate of

compliance for the Corporation comprise a category of actions which

does not individually or cumulatively have a significant effect on the

human environment. Actions within this category are similar in that

they will be based on a finding by NRC that the Corporation has

demonstrated compliance with the requirements in part 76. As noted

above, after conducting an environmental assessment for part 76, the

Commission made a finding of no significant environmental impact, and

concluded that part 76 requirements, if promulgated, would not allow

the enrichment facilities to operate in such a way as to result in any

adverse environmental effects greater than the existing impacts which

have been already evaluated. Accordingly, a Commission finding of

compliance with the part 76 requirements would not have a significant

effect on the human environment.

Paperwork Reduction Act Statement

The information collection requirements contained in this proposed

rule of limited applicability apply only to a wholly-owned

instrumentality of the United States and affect fewer than ten

respondents. Therefore, Office of Management and Budget clearance is

not required pursuant to the Paperwork Reduction Act of 1980 (44 U.S.C.

3501 et seq.).

Draft Regulatory Analysis

The Commission has prepared a draft regulatory analysis on this

proposed regulation. The analysis examines the costs and benefits of

the alternatives considered by the Commission. The draft analysis is

available for inspection in the NRC Public Document Room, 2120 L Street

NW. (Lower Level), Washington, DC.

The Commission requests public comment on the draft analysis.

Comments on the draft analysis may be submitted to the NRC as indicated

under the ADDRESSES heading.

Regulatory Flexibility Certification

As required by the Regulatory Flexibility Act of 1980, 5 U.S.C.

605(b), the Commission certifies that this rule, if adopted, will not

have a significant economic impact upon a substantial number of small

entities since it only addresses the Corporation's operation of two

existing plants which do not fall into this category.

Backfit Analysis

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

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

not required.

List of Subjects

10 CFR Part 19

Criminal penalties, Environmental protection, Nuclear materials,

Nuclear power plants and reactors, Occupational safety and health,

Radiation protection, Reporting and recordkeeping requirements, Sex

discrimination.

10 CFR Part 20

Byproduct material, Criminal penalties, Licensed material, Nuclear

materials, Nuclear power plants and reactors, Occupational safety and

health, Packaging and containers, Radiation protection, Reporting and

recordkeeping requirements, Special nuclear material, Source material,

Waste treatment and disposal.

10 CFR Part 21

Nuclear power plants and reactors, Penalties, Radiation protection,

Reporting and recordkeeping requirements.

10 CFR Part 26

Alcohol abuse, Alcohol testing, Appeals, Chemical testing, Drug

abuse, Drug testing, Employee assistance programs, Fitness for duty,

Management actions, Nuclear power reactors, Protection of information,

Reporting and recordkeeping requirements.

10 CFR Part 51

Administrative practice and procedure, Environmental impact

statement, Nuclear materials, Nuclear power plants and reactors,

Reporting and recordkeeping requirements.

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 71

Criminal penalties, Hazardous materials transportation, Nuclear

materials, Packaging and containers, Reporting and recordkeeping

requirements.

10 CFR Part 73

Criminal penalties, Hazardous materials transportation, Export,

Import, Nuclear materials, Nuclear power plants and reactors, Reporting

and recordkeeping requirements, Security measures.

10 CFR Part 74

Accounting, Criminal penalties, Hazardous materials transportation,

Material control and accounting, Nuclear materials, Packaging and

containers, Radiation protection, Reporting and recordkeeping

requirements, Scientific equipment, Special nuclear material.

10 CFR Part 76

Certification, Criminal penalties, Radiation protection, Reporting

and recordkeeping requirements, Security measures, Special nuclear

material, Uranium enrichment by gaseous diffusion.

10 CFR Part 95

Classified information, Criminal penalties, Reporting and

recordkeeping requirements, Security measures.

For the reasons set out in the preamble and under the authority of

the Atomic Energy Act of 1954, as amended; the Energy Reorganization

Act of 1974, as amended; and 5 U.S.C. 553; the NRC is proposing to

adopt the following amendments to 10 CFR parts 19, 20, 21, 26, 51, 70,

71, 73, 74, and 95 and the new 10 CFR part 76.

PART 19--NOTICES, INSTRUCTIONS, AND REPORTS TO WORKERS: INSPECTION

AND INVESTIGATIONS

1. The authority citation for part 19 is revised to read as

follows:

Authority: Secs. 53, 63, 81, 103, 104, 161, 186, 68 Stat. 930,

933, 935, 936, 937, 948, 955, as amended, sec. 234, 83 Stat. 444, as

amended (42 U.S.C 2073, 2093, 2111, 2133, 2134, 2201, 2236, 2282);

sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841); Pub. L. 95-

601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851).

2. Section 19.2 is revised to read as follows:

Sec. 19.2 Scope.

The regulations in this part apply to all persons who receive,

possess, use, or transfer material licensed by the Nuclear Regulatory

Commission pursuant to the regulations in parts 30 through 35, 39, 40,

60, 61, or part 72 of this chapter, including persons licensed to

operate a production or utilization facility pursuant to part 50 of

this chapter, persons licensed to possess power reactor spent fuel in

an independent spent fuel storage installation (ISFSI) pursuant to part

72 of this chapter, and persons required to obtain a certificate of

compliance or an approved compliance plan under part 76 of this

chapter. The regulations regarding interviews of individuals under

subpoena apply to all investigations and inspections within the

jurisdiction of the Nuclear Regulatory Commission other than those

involving NRC employees or NRC contractors. The regulations in this

part do not apply to subpoenas issued pursuant to 10 CFR 2.720.

PART 20--STANDARDS FOR PROTECTION AGAINST RADIATION

3. The authority citation for part 20 is revised to read as

follows:

Authority: Secs. 53, 63, 65, 81, 103, 104, 161, 182, 186, 68

Stat. 930, 933, 935, 936, 937, 948, 953, 955, as amended (42 U.S.C.

2073, 2093, 2095, 2111, 2133, 2134, 2201, 2232, 2236), secs. 201, as

amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C.

5841, 5842, 5846).

4. Section 20.1002 is revised to read as follows:

Sec. 20.2 Scope.

The regulations in this part apply to persons licensed by the

Commission to receive, possess, use, transfer, or dispose of byproduct,

source, or special nuclear material or to operate a production or

utilization facility under parts 30 through 35, 39, 40, 50, 60, 61, 70,

or 72 of this chapter, and to persons required to obtain a certificate

of compliance or an approved compliance plan under part 76 of this

chapter. The limits in this part do not apply to doses due to

background radiation, to exposure of patients to radiation for the

purpose of medical diagnosis or therapy, or to voluntary participation

in medical research programs.

PART 21--REPORTING OF DEFECTS AND NONCOMPLIANCE

5. The authority citation for part 21 is revised to read as

follows:

Authority: Sec. 161, 68 Stat. 948, as amended, sec. 234, 83

Stat. 444, as amended (42 U.S.C. 2201, 2282); secs. 201, as amended,

206, 88 Stat. 1242, as amended 1246 (42 U.S.C. 5841, 5846).

Section 21.2 also issued under secs. 135, 141, Pub. L. 97-425,

96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161).

6. Section 21.2 is amended by adding paragraph (e) to read as

follows:

Sec. 21.2 Scope.

* * * * *

(e) The regulations in this part apply to each individual,

partnership, corporation, or other entity required to obtain a

certificate of compliance or an approved compliance plan under part 76

of this chapter.

PART 26--FITNESS-FOR-DUTY PROGRAMS

7. The authority citation for part 26 is revised to read as

follows:

Authority: Secs. 53, 81, 103, 104, 107, 161, 68 Stat. 930, 935,

936, 937, 948, as amended (42 U.S.C. 2073, 2111, 2112, 2133, 2134,

2137, 2201); secs. 201, 202, 206, 88 Stat. 1242, 1244, 1246, as

amended (42 U.S.C. 5841, 5842, 5846).

8. Section 26.2 is amended by adding paragraph (d) to read as

follows:

Sec. 26.2 Scope.

* * * * *

(d) The regulations in this part apply to the Corporation required

to obtain a certificate of compliance or an approved compliance plan

under Part 76 of this chapter only if the Corporation elects to engage

in activities involving formula quantities of strategic special nuclear

material. When applicable, the requirements apply only to the

Corporation and personnel carrying out the activities specified in

Sec. 26.2(a)(1) through (5).

PART 51--ENVIRONMENTAL PROTECTION REGULATIONS FOR DOMESTIC

LICENSING AND RELATED REGULATORY FUNCTIONS

9. The authority citation for part 51 is revised to read as

follows:

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

secs. 201, as amended, 202, 88 Stat. 1242, as amended, 1244 (42

U.S.C. 5841, 5842).

10. Section 51.22 is amended by adding paragraph (c)(19) to read as

follows:

Sec. 51.22 Criterion for categorical exclusion; identification of

licensing and regulatory actions eligible for categorical exclusion or

otherwise not requiring environmental review.

* * * * *

(c) * * *

(19) Issuance, amendment, modification, or renewal of a certificate

of compliance of gaseous diffusion enrichment facilities pursuant to 10

CFR Part 76.

* * * * *

PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

11. The authority citation for part 70 is revised 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 (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).

12. Section 70.1 is amended by revising paragraph (a) and adding

paragraph (d) to read as follows:

Sec. 70.1 Purpose.

(a) Except as provided in paragraphs (c) and (d) of this section,

the regulations of this part establish procedures and criteria for the

issuance of licenses to receive title to, own, acquire, deliver,

receive, possess, use, and transfer special nuclear material; and

establish and provide for the terms and conditions upon which the

Commission will issue such licenses.

* * * * *

(d) As provided in Part 76 of this chapter, the regulations of this

part establish procedures and criteria for physical security and

material control and accounting for the issuance of a certificate of

compliance or the approval of a compliance plan.

PART 71--PACKAGING AND TRANSPORTATION OF RADIOACTIVE MATERIAL

13. The authority citation for part 71 is revised to read as

follows:

Authority: Secs. 53, 57, 62, 63, 81, 161, 182, 183, 68 Stat.

930, 932, 933, 935, 948, 953, 954, as amended (42 U.S.C. 2073, 2077,

2092, 2093, 2111, 2201, 2232, 2233); secs. 201, as amended, 202,

206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842,

5846).

Section 71.97 also issued under sec. 301, Pub. L. 96-295, 94

Stat. 789-790.

14. Section 71.0 is amended by adding paragraph (e) to read as

follows:

Sec. 71.0 Purpose and scope.

* * * * *

(e) The regulations in this part apply to any person required to

obtain a certificate of compliance or an approved compliance plan

pursuant to part 76 of this chapter if the person delivers radioactive

material to a common or contract carrier for transport or transports

the material outside the confines of the person's plant or other

authorized place of use.

PART 73--PHYSICAL PROTECTION OF PLANTS AND MATERIALS

15. The authority citation for part 73 is revised to read as

follows:

Authority: Secs. 53, 161, 68 Stat. 930, 948, as amended, sec.

147, 94 Stat. 780 (42 U.S.C. 2073, 2167, 2201); sec. 201, as

amended, 204, 88 Stat. 1242, as amended, 1245 (42 U.S.C. 5841,

5844).

Section 73.1 also issued under secs. 135, 141, Pub. L. 97-425,

96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161). Section 73.37(f) also

issued under sec. 301, Pub. L. 96-295, 94 Stat. 789 (42 U.S.C. 5841

note). Section 73.57 is issued under sec. 606, Pub. L. 99-399, 100

Stat. 876 (42 U.S.C. 2169).

16. Section 73.1 is amended by adding paragraph (b)(9) to read as

follows:

Sec. 73.1 Purpose and scope.

* * * * *

(b) * * *

(9) As provided in part 76 of this chapter, the regulations of this

part establish procedures and criteria for physical security for the

issuance of a certificate of compliance or the approval of a compliance

plan.

PART 74--MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR

MATERIAL

17. The authority citation for part 74 is revised to read as

follows:

Authority: Secs. 53, 57, 161, 182, 183, 68 Stat. 930, 932, 948,

953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C.

2073, 2077, 2201, 2232, 2233, 2282); secs. 201, as amended, 202,

206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842,

5846).

18. Section 74.2 is amended by adding paragraph (d) to read as

follows:

Sec. 74.2 Scope.

* * * * *

(d) As provided in part 76 of this chapter, the regulations of this

part establish procedures and criteria for material control and

accounting for the issuance of a certificate of compliance or the

approval of a compliance plan.

19. A new part 76 is added to 10 CFR chapter I to read as follows:

PART 76--CERTIFICATION OF GASEOUS DIFFUSION PLANTS

Subpart A--General Provisions

Sec.

76.1 Purpose.

76.2 Scope.

76.4 Definitions.

76.5 Communications.

76.6 Interpretations.

76.7 Employee protection.

76.8 Information collection requirements: OMB approval not

required.

76.9 Completeness and accuracy of information.

76.10 Deliberate misconduct.

76.21 Certificate required.

76.23 Specific exemptions.

Subpart B--Application

76.31 Annual application requirement.

76.33 Application procedures.

76.35 Contents of applications.

76.37 Federal Register notice.

76.39 Public meeting.

76.41 Record underlying decisions.

76.43 Annual date for decision.

76.45 Application for amendment of certificate.

Subpart C--Certification

76.51 Conditions of certification.

76.53 Consultation with Environmental Protection Agency.

76.55 Timely renewal.

76.60 Regulatory requirements which apply.

76.62 Issuance of certificate or approval of compliance plan.

76.64 Denial of certificate or compliance plan.

76.68 Plant changes.

76.70 Post issuance.

76.72 Miscellaneous procedural matters.

76.76 Backfitting.

Subpart D--Safety

76.81 Authorized use of radioactive material.

76.83 Transfer of radioactive material.

76.85 Assessment of accidents.

76.87 Technical safety requirements.

76.89 Criticality accident requirements.

76.91 Emergency planning.

76.93 Quality assurance.

76.95 Training.

Subpart E--Safeguards and Security

76.111 Physical security, material control and accounting, and

protection of certain information.

76.113 Formula quantities of strategic special nuclear material--

Category I.

76.115 Special nuclear material of moderate strategic

significance--Category II.

76.117 Special nuclear material of low strategic significance--

Category III.

76.119 Security facility approval and safeguarding of National

Security Information and restricted data.

Subpart F--Reports and Inspections

76.120 Reporting requirements.

76.121 Inspections.

76.123 Tests.

Subpart G--Enforcement

76.131 Violations.

76.133 Criminal penalties.

Authority: Secs. 161, 68 Stat. 948, as amended, secs. 1312,

1701, 106 Stat. 2392, 2951-53 (42 U.S.C. 2201, 2297b-11, 2297f);

secs. 201, as amended, 206, 88 Stat. 1244, 1246 (42 U.S.C. 5841,

5842). Sec. 76.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat.

2951 (42 U.S.C. 5851).

Subpart A--General Provisions

Sec. 76.1 Purpose.

(a) This part establishes requirements that will govern the

operation of the gaseous diffusion plants at Portsmouth, Ohio, and

Paducah, Kentucky. These requirements are promulgated to protect the

public health and safety from radiological hazards and provide for the

common defense and security. This part also establishes the

certification process that will be used to ensure compliance with the

established requirements.

(b) The regulations contained in this part are issued pursuant to

the Atomic Energy Act of 1954, as amended; Title II of the Energy

Reorganization Act of 1974, as amended; and Title XI of the Energy

Policy Act of 1992.

Sec. 76.2 Scope.

The regulations in this part apply only to the gaseous diffusion

plants at Portsmouth, Ohio, and Paducah, Kentucky leased by DOE to the

Corporation. This part also gives notice to all persons who knowingly

provide to the Corporation or any contractor, or subcontractor any

components, equipment, materials, or other goods or services that

relate to the activities subject to this part that they may be

individually subject to NRC enforcement action for violation of

Sec. 76.10.

Sec. 76.4 Definitions.

As used in this part:

Act means the Atomic Energy Act of 1954 (68 Stat. 919), and

includes any amendments to the Act.

Administrative controls means the provisions relating to

organization and management, procedures, recordkeeping, review and

audit, and reporting necessary to ensure operation of the plant in a

safe manner.

Agreement State means any State with which the Commission has

entered into an effective agreement under subsection 274b. of the Act.

Non-Agreement State means any other State.

Atomic energy means all forms of energy released in the course of

nuclear fission or nuclear transformation.

Certificate of compliance or certificate means a certificate of

compliance issued pursuant to this part.

Classified matter means documents or material containing classified

information.

Commission means the Nuclear Regulatory Commission or its duly

authorized representatives.

Common defense and security means the common defense and security

of the United States.

Compliance plan means a plan for achieving compliance approved

pursuant to this part.

Corporation means the United States Enrichment Corporation (USEC),

a wholly-owned corporation of the United States that is authorized

under lease from the Department of Energy to operate the gaseous

diffusion enrichment plants in Paducah, Kentucky, and Portsmouth, Ohio.

Department and Department of Energy (DOE) means the Department of

Energy established by the Department of Energy Organization Act (Pub.

L. 95-91, 91 Stat. 565, 42 U.S.C. 7101 et seq.), to the extent that the

Department, or its duly authorized representatives, exercises functions

formerly vested in the U.S. Atomic Energy Commission, its Chairman,

members, officers and components and transferred to the U.S. Energy

Research and Development Administration and to the Administrator

thereof pursuant to sections 104 (b), (c) and (d) of the Energy

Reorganization Act of 1974, as amended, (Pub. L. 93-438, 88 Stat. 1233

at 1237, 42 U.S.C. 5814) and retransferred to the Secretary of Energy

pursuant to section 301(a) of the Department of Energy Organization Act

(Pub. L. 95-91, 91 Stat. 565 at 577-578, 42 U.S.C. 7151).

Depleted uranium means the byproduct residues from the uranium

enrichment process in which the concentration of the isotope U235

is less than that occurring in natural uranium.

Director means the Director, or his or her designee, of the Office

of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory

Commission.

Effective dose equivalent means the sum of the products of the dose

equivalent to the body organ or tissue and the weighting factors

applicable to each of the body organs or tissues that are irradiated,

as defined in 10 CFR part 20 (Secs. 20.1001 through 20.2402).

Effective kilograms of special nuclear material means:

(1) For uranium with an enrichment in the isotope U-235 of 0.01 (1

percent) and above, its element weight in kilograms multiplied by the

square of its enrichment expressed as a decimal weight fraction; and

(2) For uranium with an enrichment in the isotope U-235 below 0.01

(1 percent), its element weight in kilograms multiplied by 0.0001.

Formula quantity means strategic special nuclear material in any

combination in a quantity of 5000 grams or more computed by the

formula, grams = (grams contained U-235) + 2.5(grams U-233+grams

plutonium).

Limiting conditions for operation means the lowest functional

capability or performance levels of equipment required for safe

operation of the plant.

Limiting control settings means settings for automatic alarm or

protective devices related to those variables having significant safety

functions.

National security information means information that has been

determined pursuant to Executive Order 12356 or any predecessor order

to require protection against unauthorized disclosure and that is so

designated.

Person means:

(1) Any individual, corporation, partnership, firm, association,

trust, estate, public or private institution, group, Government Agency

other than the Commission or the Department, except that the Department

shall be considered a person within the meaning of the regulations in

this part to the extent that its facilities and activities are subject

to the licensing and related regulatory authority of the Commission

pursuant to section 202 of the Energy Reorganization Act of 1974, as

amended, (88 Stat. 1244); any State or any political subdivision of or

any political entity within a State, any foreign government or nation

or any political subdivision of any such government or nation, or other

entity; and

(2) Any legal successor, representative, agent, or agency of the

foregoing.

Process means a series of actions that achieves an end or result.

Produce, when used in relation to special nuclear material, means:

(1) To manufacture, make, produce, or refine special nuclear

material;

(2) To separate special nuclear material from other substances in

which such material may be contained; or

(3) To make or to produce new special nuclear material.

Restricted data means all data concerning design, manufacture or

utilization of atomic weapons, the production of special nuclear

material, or the use of special nuclear material in the production of

energy, but does not include data declassified or removed from the

Restricted Data category pursuant to Section 142 of the Act.

Safety limits means those bounds within which the process variables

must be maintained for adequate control of the operation and that must

not be exceeded in order to protect the integrity of the physical

system that is designed to guard against the uncontrolled release of

radioactivity.

Sealed source means any radioactive material that is encased in a

capsule designed to prevent leakage or escape of the radioactive

material.

Security facility approval means that a determination has been made

by the NRC that a facility is eligible to use, process, store,

reproduce, transmit, or handle classified matter.

Source material means source material as defined in section 11z. of

the Act and in the regulations contained in part 40 of this chapter.

Special nuclear material means:

(1) Plutonium, uranium 233, uranium enriched in the isotope 233 or

in the isotope 235, and any other material which the Commission,

pursuant to the provisions of Section 51 of the Act, determines to be

special nuclear material, but does not include source material; or

(2) Any material artificially enriched in any of the foregoing, but

does not include source material.

Special nuclear material of low strategic significance means:

(1) Less than an amount of special nuclear material of moderate

strategic significance, as defined in this section, but more than 15

grams of uranium-235 (contained in uranium enriched to 20 percent or

more in the U-235 isotope), or 15 grams of uranium-233, or 15 grams of

plutonium, or the combination of 15 grams when computed by the

equation, grams = (grams contained U-235) + (grams plutonium) + (grams

U-233); or

(2) Less than 10,000 grams but more than 1000 grams of uranium-235

(contained in uranium enriched to 10 percent or more but less than 20

percent in the U-235 isotope), or

(3) 10,000 grams or more of uranium-235 (contained in uranium

enriched above natural but less than 10 percent in the U-235 isotope).

Special nuclear material of moderate strategic significance means:

(1) Less than a formula quantity of strategic special nuclear

material but more than 1000 grams of uranium-235 (contained in uranium

enriched to 20 percent or more in the U-235 isotope), or more than 500

grams of uranium-233 or plutonium, or in a combined quantity of more

than 1000 grams when computed by the equation, grams = (grams contained

U-235) + 2 (grams U-233 + grams plutonium); or

(2) 10,000 grams or more of uranium-235 (contained in uranium

enriched to 10 percent or more but less than 20 percent in the U-235

isotope).

Special nuclear material scrap means the various forms of special

nuclear material generated during chemical and mechanical processing,

other than recycle material and normal process intermediates, which are

unsuitable for use in their present form, but all or part of which will

be used after further processing.

Strategic special nuclear material means uranium-235 (contained in

uranium enriched to 20 percent or more in the U-235 isotope), uranium-

233, or plutonium.

Surveillance requirements means requirements relating to test,

calibration, or inspection to ensure that the necessary quality of

systems and components is maintained, that plant operation will be

within the safety limits, and that the limiting conditions of operation

will be met.

United States, when used in a geographical sense, includes Puerto

Rico and all territories and possessions of the United States.

Uranium enrichment plant means:

(1) Any plant used for separating the isotopes of uranium or

enriching uranium in the isotope 235, using gaseous diffusion

technology; or

(2) Any equipment or device, or important component part especially

designed for such equipment or device, capable of separating the

isotopes of uranium or enriching uranium in the isotope 235, using

gaseous diffusion technology.

Sec. 76.5 Communications.

Except where otherwise specified, all correspondence, reports,

applications, and other written communications submitted pursuant to 10

CFR part 76 should be addressed to the Director, Office of Nuclear

Material Safety and Safeguards, ATTN: Document Control Desk, U.S.

Nuclear Regulatory Commission, Washington, DC 20555-0001, and copies

sent to the NRC Region III Office (shown in appendix D of part 20 of

this chapter) and the Resident Inspector. Communications and reports

may be delivered in person at the Commission's offices at 11555

Rockville Pike, Rockville, Maryland, or at 2120 L Street, NW.,

Washington, DC.

Sec. 76.6 Interpretations.

Except as specifically authorized by the Commission in writing, no

interpretation of the meaning of the regulations in this part by any

officer or employee of the Commission other than a written

interpretation by the General Counsel will be recognized to be binding

upon the Commission.

Sec. 76.7 Employee protection.

(a) Discrimination by the Corporation, or a contractor or

subcontractor of the Corporation against an employee for engaging in

certain protected activities is prohibited. Discrimination includes

discharge and other actions that relate to compensation, terms,

conditions, or privileges of employment. The protected activities are

established in Section 211 of the Energy Reorganization Act of 1974, as

amended, and in general are related to the administration or

enforcement of a requirement imposed under the Atomic Energy Act or the

Energy Reorganization Act.

(1) The protected activities include but are not limited to:

(i) Providing the Commission or his or her employer information

about alleged violations of either of the above statutes or possible

violations of requirements imposed under either of the above statutes;

(ii) Refusing to engage in any practice made unlawful under either

of the above statutes or under these requirements if the employee has

identified the alleged illegality to the employer;

(iii) Requesting the Commission to institute action against his or

her employer for the administration or enforcement of these

requirements;

(iv) Testifying in any Commission proceeding, or before Congress,

or at any Federal or State proceeding regarding any provision (or

proposed provision) of either of the above statutes.

(v) Assisting or participating in, or attempting to assist or

participate in, the above activities.

(2) These activities are protected even if no formal proceeding is

actually initiated as a result of the employee assistance or

participation.

(3) This section has no application to any employee alleging

discrimination prohibited by this section who, acting without direction

from his or her employer (or the employer's agent), deliberately causes

a violation of any requirement of the Energy Reorganization Act of

1974, as amended, or the Atomic Energy Act of 1954, as amended.

(b) Any employee who believes that he or she has been discharged or

otherwise discriminated against by any person for engaging in protected

activities specified in paragraph (a)(1) of this section may seek a

remedy for the discharge or discrimination through an administrative

proceeding in the Department of Labor. The administrative proceeding

must be initiated within 180 days after an alleged violation occurs by

filing a complaint alleging the violation with the Department of Labor,

Employment Standards Administration, Wage and Hour Division. The

Department of Labor may order reinstatement, back pay, and compensatory

damages.

(c) A violation of paragraphs (a), (e), or (f) of this section by

the Corporation, or a contractor or subcontractor of the Corporation

may be grounds for:

(1) Denial, revocation, or suspension of the certificate.

(2) Other enforcement action.

(d) Actions taken by an employer, or others which adversely affect

an employee may be predicated upon nondiscrimination grounds. The

prohibition applies when the adverse action occurs because the employee

has engaged in protected activities. An employee's engagement in

protected activities does not automatically render him or her immune

from discharge or discipline for legitimate reasons or from adverse

action dictated by nonprohibited considerations.

(e) (1) The Corporation shall prominently post the revision of NRC

Form 3, ``Notice to Employees,'' referenced in 10 CFR 19.11(c). This

form must be posted at locations sufficient to permit employees

protected by this section to observe a copy on the way to or from their

place of work. Premises must be posted not later than 30 days after an

application is docketed and remain posted while the application is

pending before the Commission, during the term of the certificate, and

for 30 days following certificate termination.

(2) The Corporation shall notify its contractors of the prohibition

against discrimination for engaging in protected activities.

(3) Copies of NRC Form 3 may be obtained by writing to the NRC

Region III Office listed in appendix D to part 20 of this chapter or by

contacting the NRC Office of Information Resource Management, Division

of Information Support Services, Information and Records Management

Branch.

(f) No agreement affecting the compensation, terms, conditions, or

privileges of employment, including an agreement to settle a complaint

filed by an employee with the Department of Labor pursuant to Section

211 of the Energy Reorganization Act of 1974, as amended, may contain

any provision which would prohibit, restrict, or otherwise discourage

an employee from participating in protected activity as defined in

paragraph (a)(1) of this section including, but not limited to,

providing information to the NRC or to his or her employer on potential

violations or other matters within NRC's regulatory responsibilities.

Sec. 76.8 Information collection requirements: OMB approval not

required.

The information collection requirements contained in this part of

limited applicability apply to a wholly-owned instrumentality of the

United States and affect fewer than ten respondents. Therefore, Office

of Management and Budget clearance is not required pursuant to the

Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

Sec. 76.9 Completeness and accuracy of information.

(a) Information provided to the Commission or information required

by statute or by the Commission's rules, regulations, standards,

orders, or other conditions to be maintained by the Corporation must be

complete and accurate in all material respects.

(b) The Corporation shall notify the Commission of information

identified as having for the regulated activity a significant

implication for public health and safety or common defense and

security. The Corporation violates this paragraph only if the

Corporation fails to notify the Commission of information that the

Corporation has identified as having a significant implication for

public health and safety or common defense and security. Notification

must be provided to the Administrator of NRC's Region III Office within

2 working days of identifying the information. This requirement is not

applicable to information which is already required to be provided to

the Commission by other reporting or updating requirements.

Sec. 76.10 Deliberate misconduct.

(a) The Corporation or any employee of the Corporation and any

contractor (including a supplier or consultant), subcontractor, or any

employee of a contractor or subcontractor, who knowingly provides to

the Corporation, or any contractor or subcontractor, components,

equipment, materials, or other goods or services, that relate to the

Corporation's activities subject to this part; may not:

(1) Engage in deliberate misconduct that causes or, but for

detection, would have caused, the Corporation to be in violation of any

rule, regulation, or order, or any term, condition, or limitation of a

certificate or approval issued by the Commission, or

(2) Deliberately submit to the NRC, the Corporation, or its

contractor or subcontractor, information that the person submitting the

information knows to be incomplete or inaccurate in some respect

material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this

section may be subject to enforcement action in accordance with the

procedures in 10 CFR part 2, subpart B.

(c) For purposes of paragraph (a)(1) of this section, deliberate

misconduct by a person means an intentional act or omission that the

person knows:

(1) Would cause the Corporation to be in violation of any rule,

regulation, or order, or any term, condition, or limitation of a

certificate or approved compliance plan issued by the Director, or

(2) Constitutes a violation of a requirement, procedure,

instruction, contract, purchase order or policy of the Corporation,

contractor, or subcontractor.

Sec. 76.21 Certificate required.

The Corporation or its contractors may not operate the gaseous

diffusion plants at Portsmouth, Ohio, and Paducah, Kentucky without the

issuance of a certificate of compliance, or an approved compliance

plan, pursuant to this part. Except as authorized by the NRC under

other provisions of this chapter, no person other than the Corporation

or its contractors may acquire, deliver, receive, possess, use, or

transfer radioactive material at the gaseous diffusion plants at

Portsmouth, Ohio, and Paducah, Kentucky.

Sec. 76.23 Specific exemptions.

The Commission may, upon its own initiative or upon application of

the Corporation, grant such exemptions from the requirements of the

certification regulations as it determines are authorized by law and

will not endanger life, or property, or the common defense and

security, and are otherwise in the public interest.

Subpart B--Application

Sec. 76.31 Annual application requirement.

The Corporation shall apply to the Commission each year,1 on

or before April 15, for a certificate of compliance with the

Commission's regulations for the gaseous diffusion plants leased from

the Department.

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

\1\The initial filing for a certificate of compliance must be

tendered no later than 6 months after the date this rule is

published in the Federal Register or by April 15, 1995, whichever is

earlier.

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

Sec. 76.33 Application procedures.

(a) Filing requirements. An application for certificate of

compliance shall be tendered by filing 20 copies of the application

with the Director, Office of Nuclear Material Safety and Safeguards,

with copies sent to the NRC Region III Office and Resident Inspector,

in accordance with Sec. 76.5.

(b) Oath or affirmation. An application for certificate of

compliance must be executed in a signed original by a duly authorized

officer of the Corporation under oath or affirmation.

(c) Contents of application. The annual application for a

certificate of compliance must contain:

(1) The information set forth in Sec. 76.35.

(2) A plan for achieving compliance with respect to any areas of

noncompliance with the NRC's regulations that are identifiable by the

Corporation at the time of the filing of the application, including:

(i) A description of the areas of noncompliance;

(ii) A plan of actions and schedules for achieving compliance;

(iii) A justification for continued operation with adequate safety

and safeguards; and

(iv) Sufficient information for the Commission to prepare an

environmental assessment.

(d) Pre-filing consultation. The Corporation may confer with the

Commission's staff prior to filing an application.

(e) Additional information. At any time during the review of an

application, the Corporation may be required to supply additional

information to the Commission's staff in order to enable the Commission

or the Director, as appropriate, to determine whether the certificate

should be issued or denied, or to determine whether a compliance plan

should be approved.

(f) Incorporation by reference. Information contained in previous

applications, statements, or reports filed with the Commission may be

incorporated by reference, provided that the reference is clear and

specific.

Sec. 76.35 Contents of applications.

The application for a certificate of compliance must include the

information identified in this section.

(a) A safety analysis report which must include the following

information:

(1) The activities involving special nuclear material and the

general plan for carrying out these activities;

(2) The name, amount, and specifications (including the chemical

and physical form and, where applicable, isotopic content) of the

special nuclear material, source and byproduct material the Corporation

proposes to use, possess or produce, including any material held up in

equipment from previous operations;

(3) The qualifications requirements, including training and

experience, of the Corporation's management organization and key

individuals responsible for safety in accordance with the regulations

in this chapter;

(4) A training program that meets the requirements of Sec. 76.95.

(5) A description of equipment and facilities which will be used by

the Corporation to protect health and minimize danger to life or

property (such as handling devices, working areas, shields, measuring

and monitoring instruments, devices for the treatment and disposal of

radioactive effluent and wastes, storage facilities, provisions for

protection against natural phenomena, fire protection systems,

criticality accident alarm systems, etc.);

(6) A description of the management controls and oversight program

to ensure that activities directly relevant to nuclear safety and

safeguards and security are conducted in an appropriately controlled

manner that ensures protection of employee and public health and safety

and protection of the national security interests; and

(7) A description of the plant site, and a description of the

principal structure, systems, and components of the plant.

(b) A quality assurance program that meets the requirements of

Sec. 76.93.

(c) Technical safety requirements in accordance with Sec. 76.87. A

summary statement of the bases or reasons for the requirements, other

than those covering administrative controls, shall also be included in

the application, but may not become part of the technical safety

requirements.

(d) An emergency plan that meets the requirements of Sec. 76.91.

(e) A fundamental nuclear material control plan which describes the

measures used to control and account for special nuclear material that

the Corporation uses, possesses, or has access to. The plan must

describe, as appropriate:

(1) How formula quantities of strategic special nuclear material

will be controlled and accounted for in accordance with the relevant

requirements of subpart E;

(2) How special nuclear material of moderate strategic significance

will be controlled and accounted for in accordance with the relevant

requirements of subpart E; and

(3) How special nuclear material of low strategic significance will

be controlled and accounted for in accordance with the relevant

requirements of subpart E.

(f) A transportation protection plan which describes the measures

used to protect shipments of special nuclear material of low strategic

significance in accordance with the relevant requirements of subpart E

when in transit off site.

(g) A physical protection plan which describes the measures used to

protect special nuclear material that the Corporation uses, possesses,

or has access to at fixed sites. The plan must describe, as

appropriate:

(1) How formula quantities of special nuclear material will be

protected against both theft and radiological sabotage in accordance

with the relevant requirements of subpart E;

(2) How special nuclear material of moderate strategic significance

will be protected in accordance with the relevant requirements of

subpart E;

(3) How special nuclear material of low strategic significance will

be protected in accordance with the relevant requirements of subpart E;

and

(4) The measures used to protect special nuclear material while in

transit between protected areas, all of which are located on a single

fixed site under the control of the applicant. The level of protection

afforded the material while in transit must not be less than that

afforded the same material while it was within the protected area from

which transit began.

(h) A plan describing the facility's proposed security procedures

and controls as set forth in Sec. 95.15(b) for protection of classified

information and hardware.

(i) An application which contains restricted data, classified

national security information, safeguards information, proprietary

data, or other withholdable information, must be prepared in such a

manner that all such information or data are separated from the

information to be made available to the public.

(j) In response to a written request by the Commission, the

Corporation shall file with the Commission the installation information

described in Sec. 75.11 of this chapter on Form N-71. The Corporation

shall also permit verification of this installation information by the

International Atomic Energy Agency and take any other action necessary

to implement the US/IAEA Safeguards Agreement, as set forth in part 75.

(k) A description of the program, as appropriate, for processing,

management, and disposal of mixed and radioactive wastes generated by

operations and depleted uranium. The application must also include a

description of the waste streams generated by enrichment operations,

annual volumes of waste expected, identification of radioisotopes

contained in the waste, physical and chemical forms, and plans for

managing the waste.

(l) A description of the funding program to be established to

ensure that funds will be set aside and available for the ultimate

processing and disposition of depleted uranium and any waste generated.

The Corporation shall establish financial surety arrangements to ensure

that sufficient funds will be available to adequately cover conversion

of depleted UF6 to a stable form, as well as ultimate disposition.

The financial mechanism, such as prepayment, surety, insurance, or

external sinking fund, must ensure availability of funds. The funding

program must contain a basis for cost estimates for conversion and

disposition of depleted UF6, and must include means of adjusting

cost estimates and associated funding levels over the life of the

plant. The Corporation shall ensure the adequacy of the financing

mechanism, considering the volume of generated depleted uranium and any

waste and estimates for future generation, in its annual application

for certification.

(m) A compliance status report which includes the status of various

state, local and Federal permits, licenses, approvals, and other

entitlements, as described in Sec. 51.45(d) of this chapter. The report

must include environmental and effluent monitoring data.

Sec. 76.37 Federal Register notice.

The Director shall publish in the Federal Register:

(a) A notice of the filing of an application (specifying that

copies of the application, except for Restricted Data, classified

National Security Information, Safeguards Information, proprietary

data, or other withholdable information will be made available for the

public inspection in the Commission's Public Document Room at 2120 L

Street, NW. (Lower Level), Washington, DC, and in the local public

document room at or near the location of the plant);

(b) A notice of opportunity for written public comment on the

application; and

(c) The date of any scheduled public meeting regarding the

application.

Sec. 76.39 Public meeting.

(a) A public meeting will be held on an application if the

Director, in his or her discretion, determines that a meeting is in the

public interest with respect to a decision on the application.

(b) Conduct of public meeting.

(1) The Director shall conduct any public meeting held on the

application.

(2) Public meetings will take place near the locale of the subject

plant, unless otherwise specified by the Director.

(3) A public meeting will be open to all interested members of the

public and be conducted as deemed appropriate by the Director.

(4) Members of the public will be given an opportunity during a

public meeting to make their views regarding the application known to

the Director.

(5) A transcript will be kept of each public meeting.

(6) No restricted data, classified national security information,

safeguards information, proprietary data, or other withholdable

information may be introduced at the meeting.

Sec. 76.41 Record underlying decisions.

(a) Any decision of the Commission or its designee under this part

in any proceeding regarding an application for a certificate must be

based on information in the record and facts officially noticed in the

proceeding.

(b) All public comments and correspondence in any proceeding

regarding an application for a certificate must be made a part of the

public docket of the proceeding, except as provided under 10 CFR 2.790.

Sec. 76.43 Annual date for decision.

The Director will render a decision on an application within 6

months of the receipt of the application unless the Director alters the

date for decision and publishes notice of the new date in the Federal

Register.

Sec. 76.45 Application for amendment of certificate.

In addition to the annual application for certification submitted

pursuant to Sec. 76.31, the Corporation may at any time apply for

amendment of the certificate to cover proposed new or modified

activities. The amendment application should contain sufficient

information for the Director to make findings of compliance for the

proposed activities as required for the original certificate.

Upon receipt of the Corporation's application for amendment of the

certificate, the Director will determine whether the proposed

activities are significant, and if so, follow the procedures specified

in Secs. 76.37 and 76.39. If the Director determines that the

activities are not significant the Director will, after appropriate

review, issue a decision pursuant to subpart C of this part.

Subpart C--Certification

Sec. 76.51 Conditions of certification.

The Corporation shall comply with all of the requirements set forth

and referenced in this part or set forth in the certificate of

compliance or in an approved compliance plan.

Sec. 76.53 Consultation with Environmental Protection Agency.

In reviewing an application for a certificate, including the

provisions of any compliance plan, the Director shall consult with the

Environmental Protection Agency and solicit the Environmental

Protection Agency's written comments on the application .

Sec. 76.55 Timely renewal.

In any case in which the Corporation has timely filed a sufficient

annual application for a certificate of compliance, the existing

certificate of compliance or approved compliance plan does not expire

until the Director has made a determination on the application for a

certificate of compliance.

Sec. 76.60 Regulatory requirements which apply.

The Nuclear Regulatory Commission will use the following

requirements for certification of the Corporation for operation of the

gaseous diffusion plants:

(a) The Corporation shall provide for adequate protection of the

public health and safety and common defense and security.

(b) The Corporation shall demonstrate compliance with the

provisions of this part.

(c) The Corporation shall demonstrate compliance with the

applicable provisions of 10 CFR part 19, ``Notices, Instructions and

Reports To Workers: Inspection and Investigations.''

(d) The Corporation shall demonstrate compliance with the

applicable provisions of 10 CFR part 20, ``Standards For Protection

Against Radiation.''

(e) The Corporation shall demonstrate compliance with the

applicable provisions of 10 CFR part 21, ``Reporting of Defects and

Noncompliance.''

(f) The Corporation shall demonstrate compliance with the

applicable provisions of 10 CFR part 26, ``Fitness-for-Duty Programs.''

The requirements of this section apply only if the Corporation elects

to engage in activities involving formula quantities of strategic

special nuclear material. When applicable, the requirements apply only

to the Corporation and personnel carrying out the activities specified

in Sec. 26.2(a) (1) through (5).

(g) The Corporation shall demonstrate compliance with the

applicable provisions of 10 CFR part 71, ``Packaging and Transportation

of Radioactive Material.''

(h) The Corporation shall demonstrate compliance with the

applicable provisions for physical security and material control and

accounting as specified in subpart E to this part and contained in 10

CFR part 70, ``Domestic Licensing of Special Nuclear Material,'' part

73, ``Physical Protection of Plants and Materials,'' and part 74,

``Material Control and Accounting of Special Nuclear Material.'' The

requirements in these parts address safeguards for three different

kinds of nuclear material: Special nuclear material of low strategic

significance (Category III), special nuclear material of moderate

strategic significance (Category II), and formula quantities of

strategic special nuclear material (Category I). The requirements for

Category III material apply to the production of low enriched uranium.

The requirements for Category II and Category I material apply only if

the Corporation elects to engage in activities that involve these kinds

of material and then only to the situations and locations that involve

these kinds of material.

(i) The Corporation shall demonstrate compliance with the

applicable provisions for security facility approval and for

safeguarding of classified matter as specified in subpart E to this

part.

Sec. 76.62 Issuance of certificate or approval of compliance plan.

(a) Upon a finding of compliance with the Commission's regulations

for issuance of a certificate or approval of a compliance plan, the

Director shall issue a written decision explaining the decision. The

Director may impose such terms and conditions as deemed appropriate.

(b) The Director shall publish notice of the decision in the

Federal Register.

(c) The Corporation, or any person whose interest may be affected

who submitted written comment in response to the Federal Register

notice on the application or compliance plan under Sec. 76.37, or who

provided oral comments at any meeting held on the application or

compliance plan conducted under Sec. 76.39, may file a petition, not to

exceed 30 pages, requesting review of the Director's decision. This

petition must be filed with the Commission not later than 15 days after

publication of the Federal Register notice. Any person described above

may file a response to any petition for review, not to exceed 30 pages,

within 10 days after the filing of the petition. Unless the Commission

grants the petition for review or otherwise acts within 60 days after

the publication of the Federal Register notice, the Director's initial

decision on the certificate application or compliance plan becomes

effective and final. The Commission may adopt by order such further

procedures as in its judgment would serve the purpose of review of the

Director's decision.

(d) The Commission may adopt, modify, or set aside the findings,

conclusions, conditions or terms in the Director's decision and will

state the basis of its action in writing.

Sec. 76.64 Denial of certificate or compliance plan.

(a) The Director may deny an application for a certificate of

compliance or not approve a compliance plan upon a written finding that

the application is in noncompliance with one or more of the

Commission's requirements for the plant, or that the compliance plan is

inadequate to protect the public health and safety or the common

defense and security.

(b) The Director shall publish notice of the decision in the

Federal Register.

(c) Before a denial of an application for a certificate of

compliance, the Director shall advise the Corporation in writing of any

areas of noncompliance with the Commission's regulations and offer the

Corporation an opportunity to submit a proposed compliance plan

regarding those areas of noncompliance identified.

(d) The Corporation, or any person whose interest may be affected

and who submitted written comment in response to the Federal Register

notice on the application or compliance plan under Sec. 76.37 or who

provided oral comment at any meeting held on the application or

compliance plan conducted under Sec. 76.39, may file a petition, not to

exceed 30 pages, requesting review of the Director's decision. This

petition must be filed with the Commission not later than 15 days after

publication of the Federal Register notice. Any person described above

may file a response to any petition for review, not to exceed 30 pages,

within 10 days after filing of the petition. Unless the Commission

grants the petition for review or otherwise acts within 60 days after

the publication of the Federal Register notice, the Director's initial

decision on the certificate application or compliance plan becomes

effective and final. The Commission may adopt by order such further

procedures as in its judgment would serve the purpose of review of the

Director's decision.

(e) The Commission may adopt, modify, or set aside the findings,

conclusions, conditions or terms in the Director's decision and will

state the basis of its action in writing.

Sec. 76.68 Plant changes.

(a) The Corporation may make changes to the plant or to the plant's

operations without prior Commission approval provided all the

provisions of this section are met.

(1) The Corporation shall conduct a written safety analysis which

demonstrates that the changes would not result in undue risk to public

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

environment.

(2) The changes must be authorized by responsible management and

approved by the plant safety review committee.

(3) The changes must not decrease effectiveness of the plant's

safety, safeguards and security programs.

(4) The changes must not cause projections of the annual individual

or cumulative occupational radiation exposures to increase

significantly.

(5) The changes must not significantly affect the types of or

increase the amounts of effluent released offsite.

(6) The changes must not involve an unreviewed safety question.

(b) To ensure that the approved application remains current with

respect to the actual site description and that the plant's programs,

plans, policies, and operations are in place, the Corporation shall

submit revised pages to the approved application and safety analysis

report, marked and dated to indicate each change. These revisions must

be submitted within 90 days of their adoption as specified in

Sec. 76.33.

(c) The Corporation shall maintain records of changes in the plant

and of changes in the programs, plans, policies, procedures and

operations described in the approved application, and copies of the

safety analyses on which the changes were based. The records of plant

changes must be retained until the end of the plant's life. The records

of changes in procedures must be retained for a period of 2 years.

(d) The Corporation may at any time apply under Sec. 76.45 for

amendment of the certificate to cover proposed new or modified

activities not permitted by paragraph (a) of this section.

Sec. 76.70 Post issuance.

(a) Amendment of certificate terms and conditions. The terms and

conditions of a certificate of compliance or an approved compliance

plan are subject to modification by reason of amendments to the Act, or

by reason of rules, regulations, or orders issued in accordance with

the Act.

(b) Revocation, suspension, or amendments for cause. A certificate

of compliance or a compliance plan may be revoked, suspended, or

amended, in whole or in part for:

(1) Any material false statement in the application or statement of

fact required by the Commission in connection with the application;

(2) Conditions revealed by the application, or any report, record,

inspection, or other means which would warrant the Commission to refuse

to grant a certificate or approve a compliance plan on an original

application; and

(3) Violation of, or failure to observe any of, the applicable

terms and conditions of the Act, or the certificate of compliance, the

compliance plan, or of any rule, regulation, or order of the

Commission.

(c) Procedures governing amendment, revocation, or suspension.

(1) Except in cases of willfulness or those in which the public

health interest, common defense and security, or safety requires

otherwise, no certificate of compliance or compliance plan may be

amended, suspended, or revoked unless, before the institution of

proceedings therefor, facts or conduct which may warrant the action

must have been called to the attention of the Corporation in writing

and the Corporation shall have been accorded an opportunity to

demonstrate or achieve compliance with the lawful requirements related

to such action.

(2) In any proceeding to amend, revoke, or suspend a certificate of

compliance or compliance plan, the Commission shall provide the

Corporation and other interested persons with an opportunity to provide

written views to the Commission. The Commission shall consider these

views and may adopt by order further procedures for a hearing of the

issues before making a final enforcement decision.

(d) Additional information. At any time after the granting of a

certificate of compliance or approval of a compliance plan, the

Commission may require further statements from the Corporation in order

to enable the Commission to determine whether the certificate or

approved compliance plan should be modified or revoked.

Sec. 76.72 Miscellaneous procedural matters.

(a) The filing of any petitions for review or any responses thereto

shall be governed by the procedural requirements set forth in 10 CFR

2.701 (a) and (c), 2.708, 2.709, 2.710, 2.711, and 2.712. Additional

guidance regarding the filing and service of petitions for review of

the Director's decision and responses to such petitions may be provided

in the Director's decision or by order of the Commission.

(b) The Secretary of the Commission shall have the authority to

rule on procedural matters set forth in 10 CFR 2.772.

(c) There are no restrictions on ex parte communications or on the

ability of the NRC staff and the Commission to communicate with one

another at any stage of the regulatory process, with the exception that

the rules on ex parte communications and separation of functions set

forth in 10 CFR 2.780 and 2.781 shall apply to proceedings under 10 CFR

part 2, subpart G for imposition of a civil penalty.

(d) The procedures set forth in 10 CFR 2.205, Subpart B, and in 10

CFR 2.205, Subpart G, shall be applied in connection with NRC action to

impose a civil penalty pursuant to section 206 of the Energy

Reorganization Act of 1974 and the implementing regulations in 10 CFR

part 21 (Reporting of Defects and Noncompliance), as authorized by

section 1312(e) of the Atomic Energy Act of 1954, as amended;

(e) The procedures set forth in 10 CFR 2.206 shall apply to a

request by any person to institute a proceeding pursuant to Sec. 76.70

to amend, revoke, or suspend a certificate of compliance or approved

compliance plan, or for such other action as may be proper.

Sec. 76.76 Backfitting.

(a) (1) Backfitting is defined as the modification of, or addition

to, systems, structures, or components of a plant; or to the procedures

or organization required to operate a plant; any of which may result

from a new or amended provision in the Commission rules or the

imposition of a regulatory staff position interpreting the Commission

rules that is either new or different from a previous staff position.

(2) Except as provided in paragraph (a)(4) of this section, the

Commission shall require a systematic and documented analysis pursuant

to paragraph (c) of this section for backfits which it seeks to impose.

(3) Except as provided in paragraph (a)(4) of this section, the

Commission shall require the backfitting of a plant only when it

determines, based on the analysis described in paragraph (b) of this

section, that there is a substantial increase in the overall protection

of the public health and safety or the common defense and security to

be derived from the backfit and that the direct and indirect costs of

implementation for that plant are justified in view of this increased

protection.

(4) The provisions of paragraphs (a)(2) and (a)(3) of this section

are inapplicable and, therefore, backfit analysis is not required and

the standards in paragraph (a)(3) of this section do not apply where

the Commission or staff, as appropriate, finds and declares, with

appropriately documented evaluation for its finding, any of the

following:

(i) That a modification is necessary to bring a plant into

compliance with a certificate or the rules or orders of the Commission,

or into conformance with written commitments by the Corporation; or

(ii) That regulatory action is necessary to ensure that the plant

provides adequate protection to the health and safety of the public and

is in accord with the common defense and security; or

(iii) That the regulatory action involves defining or redefining

what level of protection to the public health and safety or common

defense and security should be regarded as adequate.

(5) The Commission shall always require the backfitting of a plant

if it determines that such regulatory action is necessary to ensure

that the plant provides adequate protection to the health and safety of

the public and is in accord with the common defense and security.

(6) The documented evaluation required by paragraph (a)(4) of this

section shall include a statement of the objectives of and reasons for

the modification and the basis for invoking the exception. If

immediately effective regulatory action is required, then the

documented evaluation may follow rather than precede the regulatory

action.

(7) If there are two or more ways to achieve compliance with a

certificate or the rules or orders of the Commission, or with written

Corporation commitments, or there are two or more ways to reach a level

of protection which is adequate, then ordinarily the Corporation is

free to choose the way which best suits its purposes. However, should

it be necessary or appropriate for the Commission to prescribe a

specific way to comply with its requirements or to achieve adequate

protection, then cost may be a factor in selecting the way, provided

that the objective of compliance or adequate protection is met.

(b) In reaching the determination required by paragraph (a)(3) of

this section, the Commission will consider how the backfit should be

scheduled in light of other ongoing regulatory activities at the plant

and, in addition, will consider information available concerning any of

the following factors as may be appropriate and any other information

relevant and material to the proposed backfit:

(1) Statement of the specific objectives that the proposed backfit

is designed to achieve;

(2) General description of the activity that would be required by

the Corporation in order to complete the backfit;

(3) Potential change in the risk to the public from the accidental

release of radioactive material;

(4) Potential impact on radiological exposure of facility

employees;

(5) Installation and continuing costs associated with the backfit,

including the cost of plant downtime;

(6) The potential safety impact of changes in plant or operational

complexity, including the relationship to proposed and existing

regulatory requirements;

(7) The estimated resource burden on the NRC associated with the

proposed backfit and the availability of such resources;

(8) The potential impact of differences in plant type, design or

age on the relevancy and practicality of the proposed backfit;

(9) Whether the proposed backfit is interim or final and, if

interim, the justification for imposing the proposed backfit on an

interim basis.

(c) No certificate will be withheld during the pendency of backfit

analyses required by the Commission's rules.

(d) The Executive Director for Operations shall be responsible for

implementation of this section, and all analyses required by this

section shall be approved by the Executive Director for Operations or

his designee.

Subpart D--Safety

Sec. 76.81 Authorized use of radioactive material.

The Corporation shall confine its possession and use of radioactive

material to the locations and purposes covered by the certificate or

approved compliance plan. Except as otherwise provided, the certificate

or approved compliance plan issued pursuant to the requirements in this

part entitles the Corporation to receive title to, own, acquire,

receive, possess, and use radioactive material in accordance with the

certificate.

Sec. 76.83 Transfer of radioactive material.

(a) The Corporation may not transfer radioactive material except as

authorized pursuant to this section.

(b) Except as otherwise provided and subject to the provisions of

paragraphs (c) and (d) of this section, the Corporation may transfer

radioactive material:

(1) From one component of the Corporation to another;

(2) To the Department;

(3) To the agency in any Agreement State which regulates

radioactive materials pursuant to an agreement with the Commission

under section 274 of the Act, if the quantity transferred is not

sufficient to form a critical mass;

(4) To any person exempt from the licensing requirements of the Act

and requirements in this part, to the extent permitted under such

exemption;

(5) To any person in an Agreement State, subject to the

jurisdiction of that State, who has been exempted from the licensing

requirements and regulations of that State, to the extent permitted

under the exemption;

(6) To any person authorized to receive such radioactive material

under terms of a specific license or a general license or their

equivalents issued by the Commission or an Agreement State;

(7) To any person abroad pursuant to an export license issued under

part 110 of this chapter; or

(8) As otherwise authorized by the Commission in writing.

(c) Before transferring radioactive material to any party specified

in paragraph (b) of this section, the Corporation shall verify that the

transferee is authorized to receive the type, form, and quantity of

radioactive material to be transferred.

(d) The following methods for the verification required by

paragraph (c) of this section are acceptable:

(1) The Corporation may have in its possession and read a current

copy of the transferee's specific license or confirmation of

registration. The Corporation shall retain a copy of each license or

confirmation for 3 years from the date that it was obtained.

(2) The Corporation shall have in its possession a written

confirmation by the transferee that the transferee is authorized by

license or registration confirmation to receive the type, form, and

quantity of special nuclear material to be transferred, specifying the

license or registration confirmation number, issuing agency, and

expiration date. The Corporation shall retain the written confirmation

as a record for 3 years from the date of receipt of the confirmation;

(3) For emergency shipments, the Corporation may accept a

certification by the transferee that he or she is authorized by license

or registration certification to receive the type, form, and quantity

of special nuclear material to be transferred, specifying the license

or registration number, issuing agency, and expiration date, provided

that the oral confirmation is confirmed in writing within 10 days. The

Corporation shall retain the written confirmation of the oral

certification for 3 years from the date of receipt of the confirmation;

(4) The Corporation may obtain other sources of information

compiled by a reporting service from official records of the Commission

or the licensing agency of an Agreement State as to the identity of

licensees and the scope and expiration dates of licenses and

registrations. The Corporation shall retain the compilation of

information as a record for 3 years from the date that it was obtained;

or

(5) When none of the methods of verification described in

paragraphs (d) (1) through (4) of this section are readily available or

when the Corporation desires to verify that information received by one

of these methods is correct or up-to-date, the Corporation may obtain

and record confirmation from the Commission or the licensing agency of

an Agreement State that the transferee is licensed to receive the

special nuclear material. The Corporation shall retain the record of

confirmation for 3 years from the date the record is made.

Sec. 76.85 Assessment of accidents.

The Corporation shall perform a safety analysis to establish the

basis for limiting conditions for operation of the plant with respect

to the potential for releases of radiological material. Special

attention must be directed to assurance that plant operation will be

conducted in a manner to prevent or to mitigate the radiological

consequences from a reasonable spectrum of postulated accidents which

include internal and external events and natural phenomena in order to

ensure adequate protection of the public health and safety. Plant

operating history relevant to the assessment should be included. In

performing this assessment, the full range of operations should be

considered including, but not necessarily limited to, operation at the

maximum capacity contemplated. The assessment must be performed using

an expected release rate resulting from anticipated operational

occurrences and accidents with existing systems and procedures intended

to mitigate the release consequences, along with site characteristics,

including meteorology, to evaluate the offsite radiological

consequences.

Sec. 76.87 Technical safety requirements.

(a) The Corporation shall establish technical safety requirements.

In establishing the requirements, the Corporation shall consider the

analyses and results of the safety analysis report submitted pursuant

to Sec. 76.35.

(b) The format for the technical safety requirements shall be

appropriate for each individual requirement.

(c) Each of the following safety topics shall be considered under

this section:

(1) Effects of natural phenomena;

(2) Building and process ventilation and offgas;

(3) Criticality prevention;

(4) Fire prevention;

(5) Radiation protection;

(6) Radioactive waste management;

(7) Maintenance;

(8) Environmental protection;

(9) Packaging and transporting nuclear materials;

(10) Accident analysis;

(11) Chemical safety;

(12) Sharing of facilities, structures, systems and components;

(13) Utilities essential to radiological safety; and

(14) Operations.

(d) Technical safety requirements shall include items in the

following categories:

(1) Safety limits.

(i) If any safety limit is exceeded, corrective action must be

taken as stated in the technical safety requirements or the affected

part of the process must be shut down unless this action would further

reduce the margin of safety.

(ii) The Corporation shall notify the Commission, review the

matter, and record the results of the review, including the cause of

the condition and the basis for corrective action taken to preclude

recurrence.

(iii) The Corporation shall retain the record of the results of

each review until the Commission no longer has certification authority.

(2) Limiting control settings.

(i) Where a limiting control setting is specified for a variable on

which a safety limit has been placed, the setting must be so chosen

that protective action, either automatic or manual, will correct the

abnormal situation before a safety limit is exceeded. If, during

operation, the automatic alarm or protective devices do not function as

required, appropriate action must be taken to maintain the variables

within the limiting control-setting values and to repair promptly the

automatic devices or to shut down the affected part of the process.

(ii) The Corporation shall notify the Commission, review the

matter, and record the results of the review, including the cause of

the condition and the basis for corrective action taken to preclude

recurrence.

(iii) The Corporation shall retain the record of the results of

each review until the Commission no longer has certification authority.

(3) Limiting conditions for operation. When a limiting condition

for operation of any process step in the system is not met, the

Corporation shall shut down that part of the operation or follow any

remedial action permitted by the technical requirements until the

condition can be met.

(i) The Corporation shall notify the Commission, review the matter,

and record the results of the review, including the cause of the

condition and the basis for corrective action taken to preclude

recurrence.

(ii) The Corporation shall retain the record of the results of each

review until the Commission no longer has certification authority.

(4) Design features. Design features to be included are those

systems, components, or structures of the plant which, if altered or

modified, would have a significant effect on safety and are not covered

in categories described in paragraphs (d) (1), (2), and (3) of this

section.

(5) Surveillance requirement.

(6) Administrative controls.

(7) Initial notification. Reports made to the Commission in

response to the requirements of this section must be made in accordance

with Sec. 76.120.

Sec. 76.89 Criticality accident requirements.

(a) Criticality accident requirements. The Corporation shall

maintain in each area in which special nuclear material is handled,

used, or stored, a monitoring system meeting the requirements of

paragraph (b) of this section. The monitoring system must use gamma- or

neutron-sensitive radiation detectors which will energize clearly

audible alarm signals if criticality occurs. This section is not

intended to require monitoring systems for transport of special nuclear

material packaged in accordance with the requirements of part 71 of

this chapter.

(b) The monitoring system must be capable of meeting the

requirements of paragraph (b)(1) or (b)(2) of this section.

(1) The system must detect a criticality that produces an absorbed

dose in soft tissue of 20 rads of combined neutron and gamma radiation

at an unshielded distance of 2 meters from the reacting material within

1 minute. Coverage of all areas in which special nuclear material is

handled, used, or stored must be provided by two detectors.

(2) The system must detect a criticality which generates radiation

levels of 300 rems per hour, 1 foot from the source of the radiation.

The monitoring devices in the system must have a preset alarm point of

not less than 5 millirems per hour (in order to avoid false alarms) nor

more than 20 millirems per hour. In no event may any such device be

farther than 120 feet from the special nuclear material being handled,

used, or stored; lesser distances may be necessary to meet the

requirements of this paragraph on account of intervening shielding or

other pertinent factors.

Sec. 76.91 Emergency planning.

The Corporation shall establish, maintain, and be prepared to

follow a written emergency plan. The emergency plan submitted under

Sec. 76.35(d) shall include the following information:

(a) Plant description. A description of the plant and area near the

plant site.

(b) Types of accidents. An identification of each type of

radioactive materials accident for which protective actions may be

needed.

(c) Classification of accidents. A system for classifying accidents

as alerts or site area emergencies.

(d) Detection of accidents. Identification of the means of

detecting each type of accident in a timely manner.

(e) Mitigation of consequences. A description of the means and

equipment for mitigating the consequences of each type of accident,

including those provided to protect workers onsite, and a description

of the program for maintaining the equipment.

(f) Assessment of releases. A description of the methods and

equipment to assess releases of radioactive materials.

(g) Responsibilities. A description of the responsibilities of all

individuals supporting emergency response should an accident occur,

including identification of personnel responsible for promptly

notifying offsite response organizations and the NRC, as well as a

description of responsibilities for developing, maintaining, and

updating the plan.

(h) Notification and coordination. A commitment to and a

description of the means to promptly notify offsite response

organizations, including the request for offsite assistance and medical

assistance for the treatment of contaminated injured onsite workers

when appropriate. A control point must be established. The notification

and coordination must be planned so that unavailability of some

personnel, parts of the plant, and some equipment will not prevent the

notification and coordination. The Corporation shall also commit to

notify the NRC Operations Center immediately after notification of the

appropriate offsite response organizations and not later than one hour

after the Corporation declares an emergency. These reporting

requirements do not supersede or release the Corporation from complying

with the requirements under the Emergency Planning and Community Right-

to-Know Act of 1986, Title III, Public Law 99-499 or other state or

federal reporting requirements.

(i) Information to be communicated. A description of the types of

information on plant status, radioactive releases, and recommended

protective actions, if necessary, to be provided to offsite response

organizations and to the NRC.

(j) Training. A description of the frequency, performance

objectives, and plans for the training that the Corporation will

provide workers on how to respond to an emergency including any special

instructions, briefings, and orientation tours the Corporation would

offer to fire, police, medical, and other emergency personnel. The

training shall familiarize personnel with site-specific emergency

procedures. The training shall also prepare site personnel for their

responsibilities for the accident scenarios postulated as most probable

for the specific site, including the use of team training for these

accident scenarios.

(k) Safe Shutdown. A description of the means of restoring the

plant to a safe condition after an accident.

(l) Exercises. Provisions for conducting quarterly communications

checks with offsite response organizations and biennial onsite

exercises to test response to simulated emergencies. Quarterly

communications checks with offsite response organizations shall include

the check and update of all necessary telephone numbers. The

Corporation shall invite offsite response organizations to participate

in the biennial exercises. Participation of offsite response

organizations in biennial exercises, although recommended, is not

required. Exercises shall use accident scenarios postulated as most

probable for the specific site and the accident scenarios shall not be

made known to most exercise participants. The Corporation shall

critique each exercise using individuals that do not have direct

implementation responsibility for the plan. Critiques of exercises

shall evaluate the appropriateness of the plan, emergency procedures,

facilities, equipment, training of personnel, and overall effectiveness

of the response. Deficiencies found by the critiques shall be

corrected.

(m) Hazardous chemicals. Confirmation that the Corporation has met

its responsibilities under the Emergency Planning and Community Right-

to-Know Act of 1986, Title III, Public Law 99-499, if applicable to the

Corporation's activities at the proposed place of use of the special

nuclear material.

(n) Comment from offsite response organizations. The Corporation

shall allow the offsite response organizations expected to respond in

case of an accident 60 days to comment on the emergency plan before

submitting it to NRC. The Corporation shall provide any comments

received within the 60 days to the NRC with the emergency plan.

Sec. 76.93 Quality assurance.

The Corporation shall establish, maintain, and execute a quality

assurance program satisfying each of the applicable quality assurance

criteria of ASME NQA-1-1989, ``Quality Assurance Program Requirements

for Nuclear Facilities''. The Corporation shall execute the applicable

criteria in a graded approach to an extent that is commensurate with

the importance to safety.

Sec. 76.95 Training.

A training program shall be established, implemented, and

maintained for individuals relied upon to operate, maintain, or modify

the GDPs in a safe manner. The training program shall be based on a

``systems approach to training'' (SAT) that includes the following:

(a) Systematic analysis of the jobs to be performed.

(b) Learning objectives derived from the analysis which describe

desired performance after training.

(c) Training design and implementation based on the learning

objectives.

(d) Evaluation of trainee mastery of the objectives during

training.

(e) Evaluation and revision of the training based on the

performance of trained personnel in the job setting.

Subpart E--Safeguards and Security

Sec. 76.111 Physical security, material control and accounting, and

protection of certain information.

Nuclear Regulatory Commission regulations that will be used for

certification of the Corporation2 for physical security and

material control and accounting are contained in Title 10 of the Code

of Federal Regulations as described in this subpart. The regulations

referenced in this subpart contain requirements for physical security

and material control and accounting for formula quantities of strategic

special nuclear material (Category I), special nuclear material of

moderate strategic significance (Category II), and special nuclear

material of low strategic significance (Category III), and for

protection of Restricted Data, classified National Security

Information, Safeguards Information, and information designated by the

U.S. Department of Energy as Uncontrolled Classified Nuclear

Information.

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\2\For the purpose of this subpart, the terms ``licensee'' or

``license'' used in Parts 70, 73, and 74 of this chapter, shall

mean, respectively, the Corporation, or the certificate of

compliance or approved compliance plan.

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Sec. 76.113 Formula quantities of strategic special nuclear material--

Category I.

(a) The requirements for material control and accounting for

formula quantities of strategic special nuclear material (Category I)

are contained in Secs. 70.51, 74.11, 74.13, 74.15, 74.17. 74.51, 74.53,

74.55, 74.57, 74.59, 74.81, and 74.82.

(b) The requirements for physical security for formula quantities

of strategic special nuclear material (Category I) are contained in

Secs. 73.20, 73.40, 73.45, 73.46, 73.70, and 73.71.

(c) The requirements for the protection of Safeguards Information

pertaining to formula quantity of strategic special nuclear material

(Category I) are contained in Sec. 73.21. Information designated by the

U.S. Department of Energy as Uncontrolled Classified Nuclear

Information shall be protected at a level equivalent to that accorded

Safeguards Information.

Sec. 76.115 Special nuclear material of moderate strategic

significance--Category II.

(a) The requirements for material control and accounting for

special nuclear material of moderate strategic significance (Category

II) are contained in Secs. 70.51, 70.52, 70.53, 70.54, 70.57, 70.58,

74.11. 74.13, 74.15, 74.17, 74.81, and 74.82.

(b) The requirements for physical security for special nuclear

material of moderate strategic significance (Category II) are contained

in Secs. 73.67, and 73.71.

Sec. 76.117 Special nuclear material of low strategic significance--

Category III.

(a) The requirements for material control and accounting for

special nuclear material of low strategic significance (Category III)

are contained in Secs. 70.51, 74.11, 74.13, 74.15, 74.17, 74.33, 74.81,

and 74.82.

(b) The requirements for physical security for special nuclear

material of low strategic significance (Category III) are contained in

Secs. 73.67, 73.70. 73.71, and 73.74.

Sec. 76.119 Security facility approval and safeguarding of national

security information and restricted data.

The requirements for security facility approval and for

safeguarding of classified matter are contained in part 95 of this

chapter.

Subpart F--Reports and Inspections

Sec. 76.120 Reporting requirements.

(a) Immediate report. The Corporation shall notify the NRC

Operations Center3 within one hour after discovery of:

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\3\The commercial telephone number for the NRC Operations Center

is (301) 951-0550.

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(1) A criticality event;

(2) Any loss, other than normal operating loss, of special nuclear

material;

(3) Any theft or unlawful diversion of special nuclear material

which the Corporation is authorized to possess or any incident in which

an attempt has been made or is believed to have been made to commit a

theft or unlawful diversion of special nuclear material.

(4) An emergency condition that has been declared as an alert, site

area emergency, or general emergency.

(b) Four-hour report. The Corporation shall notify the NRC

Operations Center as soon as possible but not later than 4 hours after

discovery of an event4 that could prevent immediate protective

actions necessary to avoid releases, or exposures to radiation or

radioactive materials that could exceed regulatory limits.

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\4\Events may include fires, explosions, radiological releases,

etc.

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(c) Twenty-four hour report. The Corporation shall notify the NRC

Operations Center within 24 hours after the discovery of any of the

following events involving radioactive material:

(1) An unplanned contamination event that:

(i) Requires access to the contaminated area, by workers or the

public, to be restricted for more than 24 hours by imposing additional

radiological controls or by prohibiting entry into the area;

(ii) Involves a quantity of material greater than five times the

lowest annual limit on intake specified in appendix B to Secs. 20.1001

through 20.2402 of 10 CFR part 20 for the material; or

(iii) Causes access to the contaminated area to be restricted for

any reason other than to allow isotopes with a half-life of less than

24 hours to decay to a level that would allow decontamination.

(2) An event in which equipment is disabled or fails to function as

designed when:

(i) The equipment is required to prevent releases, prevent

exposures to radiation and radioactive materials exceeding specified

limits, mitigate the consequences of an accident, or restore this

facility to a preestablished safe condition after an accident;

(ii) The equipment is required to be available and either should

have been operating or should have operated on demand; or

(iii) No redundant equipment is available and operable to perform

the required safety function.

(3) An event that requires unplanned medical treatment at a medical

facility of an individual with radioactive contamination on the

individual's clothing or body.

(4) A fire or explosion damaging any radioactive material or any

device, container, or equipment containing radioactive material when:

(i) The quantity of material involved is greater than five times

the lowest annual limit on intake specified in appendix B to

Secs. 20.1001 through 20.2402 of 10 CFR part 20 for the material; and

(ii) The damage affects the integrity of the radioactive material

or its container.

(d) Record or log requirement. A record or log of all emergency

actions carried out in response to an emergency plan shall be made and

retained for a period of 2 years.

(e) Preparation and submission of reports. Reports made by the

Corporation in response to the requirements of this section shall be

made as follows:

(1) Operations Center reports. The Corporation shall make reports

required by paragraphs (a), (b) and (c) of this section by telephone to

the NRC Operations Center. To the extent that the information is

available at the time of notification, the information provided in

these reports must include:

(i) The caller's name and call back telephone number;

(ii) A description of the event, including date and time;

(iii) The exact location of the event;

(iv) The isotopes, quantities, and chemical and physical form of

the material involved;

(v) Any personnel radiation exposure data available; and

(vi) A description of any actions taken in response to the event.

(2) Written report. A report required by paragraph (a), (b) or (c)

of this section shall be followed by a written report within 30 days of

the initial report. Written reports prepared pursuant to other

regulations may be submitted to fulfill this requirement if the reports

contain all of the necessary information and the appropriate

distribution is made. These written reports must be sent to the U.S.

Nuclear Regulatory Commission, Document Control Desk, Washington, DC.

20555-0001, with a copy to the NRC Region III Office listed in appendix

D of part 20 of this chapter and the Resident Inspector. The reports

must include the following information:

(i) A description of the event, including the probable cause and

the manufacturer and model number (if applicable) of any equipment that

failed or malfunctioned;

(ii) The exact location of the event;

(iii) A description of isotopes, quantities and chemical and

physical form of the material involved;

(iv) The date and time of the event;

(v) The causes, including the direct cause, the contributing cause,

and the root cause;

(vi) Corrective actions taken or planned and the results of any

evaluations or assessments;

(vii) The extent of exposure of individuals to radiation or to

radioactive materials without identification of individuals by name;

and

(viii) Lessons learned from the event.

Sec. 76.121 Inspections.

(a) The Corporation shall afford to the Commission at all

reasonable times opportunity to inspect the premises and plants where

radioactive material is used, produced, or stored.

(b) The Corporation shall make available to the Commission for

inspection, upon reasonable notice, records kept pertaining to receipt,

possession, use, acquisition, import, export, or transfer of

radioactive material.

(c)(1) The Corporation shall provide rent-free office space for the

exclusive use of Commission inspection personnel upon request by the

Director, Office of Nuclear Material Safety and Safeguards or the NRC

Region III Administrator. Heat, air conditioning, light, electrical

outlets, and janitorial services must be furnished by the Corporation.

The office must be convenient to and have full access to the plant, and

must provide the inspector both visual and acoustic privacy.

(2) The space provided must be adequate to accommodate the NRC

resident inspection staff, a part-time secretary, and transient NRC

personnel. Space must be generally commensurate with other office

facilities at the site. The office space that is provided must be

subject to the approval of the Director, Office of Nuclear Material

Safety and Safeguards or the NRC Region III Office. All furniture,

supplies, and communication equipment will be furnished by the

Commission.

(3) The Corporation shall afford any NRC resident inspector

assigned to that site or other NRC inspectors identified by the

Director, Office of Nuclear Material Safety and Safeguards, as likely

to inspect the plant, immediate, unfettered access equivalent to access

provided regular plant employees, following proper identification and

compliance with applicable access control measures for security,

radiological protection, and personal safety.

Sec. 76.123 Tests.

The Corporation shall perform, or permit the Commission to perform,

any tests the Commission deems appropriate or necessary for

administration of the requirements in this part. These tests include

tests of:

(a) Radioactive material;

(b) Facilities where radioactive material is utilized, produced or

stored;

(c) Radiation detection and monitoring instruments; and

(d) Other equipment and devices used in connection with the

production, utilization or storage of radioactive material.

Subpart G--Enforcement

Sec. 76.131 Violations.

(a) The Commission may obtain an injunction or other court order to

prevent a violation of the provisions of:

(1) The Atomic Energy Act of 1954, as amended;

(2) Title II of the Energy Reorganization Act of 1974, as amended;

(3) Title XI of the Energy Policy Act of 1992, as amended;

(4) A regulation or order issued pursuant to those Acts.

(b) The Commission may obtain a court order for the payment of a

civil penalty imposed under section 1312(e) of the Atomic Energy Act of

1954, as amended and section 206 of the Energy Reorganization Act of

1974, as amended, for a violation of section 206 of the Energy

Reorganization Act of 1974, as amended.

Sec. 76.133 Criminal penalties.

(a) Section 223 of the Atomic Energy Act of 1954, as amended,

provides for criminal sanctions for willful violation of, attempted

violation of, or conspiracy to violate, any regulation issued under

sections 161b, 161i, or 161o of the Act. For purposes of section 223,

all the regulations in part 76 are issued under one or more of sections

161b, 161i, or 161o except for the sections listed in paragraph (b) of

this section.

(b) The regulations in part 76 that are not issued under sections

161b, 161i, or 161o for the purposes of section 223 are as follows;

Secs. 76.1, 76.2, 76.4, 76.5, 76.6, 76.23, 76.33, 76.35, 76.37, 76.39,

76.41, 76.43, 76.45, 76.53, 76.55, 76.60, 76.62, 76.64, 76.70, 76.72,

76.131, and 76.133.

PART 95--SECURITY FACILITY APPROVAL AND SAFEGUARDING OF NATIONAL

SECURITY INFORMATION AND RESTRICTED DATA

20. The authority citation for part 95 is revised to read as

follows:

Authority: Secs. 145, 161, 68 Stat. 942, 948, AS AMENDED (42

U.S.C. 2165, 2201); sec. 201, 88 Stat. 1242, as amended (42 U.S.C.

5841); E.O. 10865, as amended, 3 CFR 1959-1963 COMP., p.398 (50

U.S.C. 401, note); E.O. 12356, 47 FR 14874, April 6, 1982.

21. Section 95.3 is revised to read as follows:

Sec. 95.3 Scope.

The regulations in this part apply to licensees and others

regulated by the Commission, including persons required to obtain a

certificate of compliance or an approved compliance plan under part 76

of this chapter, or their contractors, who may require access to

National Security Information and/or Restricted Data used, processed,

stored, reproduced, transmitted or handled in connection with a license

or application for a license, or in connection with a certificate,

application for a certificate or an approved compliance plan under part

76 of this chapter.

22. Section 95.5 is amended by adding the definition of licensee to

read as follows:

Sec. 95.5 Definitions.

* * * * *

Licensee means, for the purpose of this part, the holder of a

license issued pursuant to 10 CFR parts 50, 70, or 72 or the holder of

a certificate of compliance or approved compliance plan issued under 10

CFR part 76.

* * * * *

Dated at Rockville, Maryland, this 4th day of February, 1994.

For the Nuclear Regulatory Commission.

Samuel J. Chilk,

Secretary of the Commission.

Note: This appendix will not appear in the Code of Federal

Regulations.

Appendix A to this Document--United States Enrichment Corporation

Recommendations for 10 CFR part 76; Standards and Certification

Process for the Paducah and Portsmouth Gaseous Diffusion Plants

Table of Contents

General Provisions

76.1 Purpose.

76.2 Scope.

76.3 Certification Requirements.

76.4 Definitions.

76.5 Communications.

76.6 Interpretations.

76.7 Employee Protection.

76.9 Completeness and Accuracy of Information.

76.10 Deliberate Misconduct.

Exemptions

76.11 Persons Providing Services Under Certain Department and

Corporation Contracts.

76.13 Department of Defense.

76.14 Specific Exemptions.

Certificate of Compliance

76.18 Type of Certification.

Application for Initial Certificate of Compliance

76.21 Filing.

76.22 Contents of Initial Application.

76.23 Requirements for the Approval of Initial Application.

76.24 Criticality Accident Requirements.

76.25 Decontamination and Decommissioning.

Certificates of Compliance

76.31 Issuance of an Initial Certificate of Compliance.

76.32 Conditions of Initial Certificate.

76.33 Annual Renewals.

76.34 Amendment of Certificates.

76.35 Commission Action on Applications to Renew or Amend.

76.36 Inalienability of Certificates.

76.37 Disclaimer of Warranties.

76.38 Expiration and Termination of Certificates.

76.39 Submission, Review, and Approval of Department Compliance

Plans.

Acquisition, Use and Transfer of Radioactive Material, Creditors'

Rights

76.41 Authorized Use of Radioactive Material.

76.42 Transfer of Radioactive Material.

76.44 Creditor Regulations.

Records, Reports and Inspections

76.50 Reporting Requirements.

76.51 Material Balance, Inventory, and Records Requirements.

76.52 Reports of Accidental Criticality or Loss or Theft or

Attempted Theft of Special Nuclear Material.

76.53 Material Status Reports.

76.54 Nuclear Material Transfer Reports.

76.55 Inspections.

76.56 Tests.

76.59 Effluent Monitoring Reporting Requirements.

Modification and Revocation of Certificate

76.61 Modification and Revocation of Certificate.

76.62 Suspension in War or National Emergency.

76.71 Violations.

76.72 Criminal Penalties.

76.73 Backfitting.

General Provisions

76.1 Purpose

(a) The regulations of this part: establish the standards

necessary to protect the public health and safety from radiological

hazard and provide for the common defense and security applicable to

the gaseous diffusion uranium enrichment plants (GDPs) owned by the

Department of Energy (the Department) and leased to the United

States Enrichment Corporation (the Corporation); establish

procedures and criteria governing the process for the issuance of

Certificates of Compliance (Certificates) for the GDPs to the

Corporation with respect to such standards; and establish and

provide for the terms and conditions upon which the Commission will

issue Certificates, or other approvals with respect to the GDPs. The

regulations in this part also apply to any person to which transfer

of ownership of the Corporation is made pursuant to section 1502 of

the Atomic Energy Act of 1954, as amended.

(b) The regulations contained in this part are issued pursuant

to the Atomic Energy Act of 1954, as amended (68 Stat. 919), Title

II of the Energy Reorganization Act of 1974, as amended (88 Stat.

1242), and Title M of the Energy Policy Act of 1992 (106 Stat.

2952).

(c) In addition to the regulations in this part, the additional

standards set forth in the following regulations are specifically

applicable to the GDPs in accordance with their terms and are

incorporated by reference herein:

(i) 10 CFR part 19 Notices, Instructions, and Reports to

Workers; Inspections.

(ii) 10 CFR part 20 Standards for Protection Against Radiation.

(iii) 10 CFR part 21 Reporting of Defects and Noncompliance.

(iv) 10 CFR part 51 Environmental Protection Regulation for

Domestic Licensing and Related Regulatory Functions.

(vi) 10 CFR part 71 Packaging and Transportation of Radioactive

Material.

(vii) 10 CFR part 170 Fees for Facilities and Materials Licenses

and Other Regulatory Services Under the Atomic Energy Act of 1954,

as Amended.

(d) In addition to the regulations in this part and those cited

in 76.1(c), the additional standards set forth in the following

regulations, with the noted amendments, are specifically applicable

to the GDPs to the extent they are referenced within this part.

(i) 10 CFR part 30 Rules of General Applicability to Domestic

Licensing of Byproduct Material.

10 CFR 30.41(b) is amended to include the following:

(8) To any person certified under 10 CFR 76.

(ii) 10 CFR part 40 Domestic Licensing of Source Material.

10 CFR 40.51(b) is amended to include the following:

(8) To any person certified under 10 CFR 76.

(iii) 10 CFR part 73 Physical Protection of Plants and

Materials.

(iv) 10 CFR part 74 Material Control and Accounting of Special

Nuclear Material.

For purposes of the requirements in this part, 10 CFR

74.33(c)(4)(i) is modified to read: ``Performing, unless otherwise

required to satisfy part 75 of this chapter, a dynamic (nonshutdown)

physical inventory of in-process gaseous (e.g., in the enrichment

equipment) uranium and U235 at least every 65 days, and

performing a static physical inventory of all other uranium and

total U235 contained in natural, depleted, and enriched uranium

located outside of the enrichment processing equipment at least

every 370 calendar days, with static physical inventories being

conducted in conjunction with a dynamic physical inventory of in-

process gaseous uranium and U235 so as to provide a total plant

material balance at least every 370 calendar days; and''

10 CFR 74.33(c)(6)(ii) is modified to read: ``Items are stored

and handled, or subsequently measured, in a manner so that

unauthorized removal of 500 grams or more of U235, as

individual items or as uranium contained in items, will be detected.

Exempted from the requirements of paragraph (c)(6) (i) and (ii) of

this section are licensed-identified items each containing less than

500 grams U235 up to a cumulative total of 50 kilograms of

U235 and items that exist for less than 14 calendar days; and

containers that are not man portable (e.g., weigh more than 500

pounds) and contain uranium in the form of UF6.''

76.2 Scope

Except as provided in Secs. 76.11 to 76.13, inclusive, the

regulations in this part apply to the operation of the GDPs and the

ownership, acquisition, delivery, receipt, possession, use,

processing, and transfer of byproduct material, source material, and

SNM in connection with such operation of the GDPs.

76.3 Certification Requirements

No person subject to the regulations in this part shall operate

the GDPs, except as authorized pursuant to a Certificate or other

approval issued by the Commission pursuant to these regulations.

76.4 Definitions

Act means the Atomic Energy Act of 1954 (68 Stat. 919),

including any amendments thereto;

Agreement State, as designated in part 150 of this chapter means

any State with which the Commission has entered into an effective

agreement under subsection 274b of the Act.

Non-agreement State means any other State.

Alert means events may occur, are in progress; or have occurred

that could lead to a release of radioactive material[s] but that the

release is not expected to require a response by an offsite response

organization to protect persons offsite.

Atomic weapon means any device utilizing atomic energy,

exclusive of the means for transporting or propelling the device

(where such means is a separable and divisible part of the device),

the principal purpose of which is for use as, or for development of,

a weapon, a weapon prototype, or a weapon test device.

Byproduct material means any radioactive material (except

special nuclear material) yielded in or made radioactive by exposure

to the radiation incident to the process of producing or utilizing

special nuclear material.

Certificate of Compliance means a certificate issued by the

Nuclear Regulatory Commission, in consultation with the

Environmental Protection Agency, pursuant to section 1701 of the

Atomic Energy Act of 1954, as amended, containing a finding of

compliance with standards provided in this part and authorizing all

activities approved under this certificate.

Commission means the Nuclear Regulatory Commission or its duly

authorized representatives.

Common defense and security means the common defense and

security of the United States.

Contiguous sites means corporation-controlled locations, deemed

by the Commission to be close enough in proximity to each other that

the SNM must be considered in the aggregate for the purpose of

physical protection.

Decommission means to remove (as a facility) safely from service

and reduce residual radioactivity in accordance with criteria in the

lease agreement between the Department of Energy and the

Corporation.

Department and Department of Energy means the Department of

Energy Organization Act (i.e., Pub. L. 95-91, 91 Stat. 565, 42

U.S.C. 7101 et seq.), to the extent that the Department, or its duly

authorized representatives, exercises functions formerly vested in

the U.S. Atomic Energy Commission, its Chairman, member, officers

and components and transferred to the U.S. Energy Research and

Development Administration and to the Admini

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