Finding of No Significant Impact and Notice of Opportunity for a Hearing, Renewal of Special Nuclear Material License SNM-42, Babcock & Wilcox Company, Naval Nuclear Fuel Division, Lynchburg, VA

NUCLEAR REGULATORY COMMISSION

[Docket 70-27]

Finding of No Significant Impact and Notice of Opportunity for a

Hearing, Renewal of Special Nuclear Material License SNM-42, Babcock &

Wilcox Company, Naval Nuclear Fuel Division, Lynchburg, VA

The U.S. Nuclear Regulatory Commission is considering the renewal

of Special Nuclear Material License SNM-42 for the continued operation

of the Babcock & Wilcox (B&W) Naval Nuclear Fuel Division (NNFD) and

Lynchburg Technology Center (LTC) in Lynchburg, Virginia.

Summary of the Environmental Assessment

Identification of the Proposed Action:

B&W has requested the renewal of Special Nuclear Material License

SNM-42 for the NNFD and LTC for a period of 10 years. In 1994, the NRC

approved the consolidation of all activities authorized under LTC's

License SNM-778 into NNFD's License SNM-42.

The B&W facility is located on a 212-hectare (525-acre) site in the

northeastern corner of Campbell County, approximately 8 km (5 miles)

east of Lynchburg, Virginia. This site is located in a generally rural

area, consisting primarily of rolling hills with gentle slopes,

farmland, and woodlands. The NNFD/LTC coexists on the site with the B&W

Fuel Company plant which is separately licensed by the NRC. The

combined NNFD/LTC facility is centrally located on the site with the

main manufacturing complex contained in a 7.7-hectare (19-acre) fenced

area and the LTC complex contained in a 5.5-hectare (13.6-acre) area

for a combined total of 13.2 hectares (32.6 acres).

With this renewal, the combined NNFD/LTC activities will continue.

The licensed activities include:

The fabrication of unirradiated, highly enriched uranium

into complete core assemblies for nuclear reactor fuel components for

the U.S. Navy propulsion program and other government agencies, as well

as university and other research reactors.

The recovery of process uranium from scrap material.

The continuation of existing research and development

operations and non-nuclear process control research.

The availability of analytical services for commercial

power plants.

The decontamination of reactor related hardware for

inspection and evaluation.

The Need for The Proposed Action

The NNFD operation primarily supports the U.S. Navy propulsion

program including fuel loading and subsequent refueling of ship

reactors. The demand for this operation will continue in order to

maintain at least the present fleet operation. If the operation of the

NNFD is discontinued, another facility will have to be used in order to

meet the national security needs of the U.S. Navy. In addition, this

facility provides nuclear fuel modules to U.S. Department of Energy

contractors and other research institutions. The LTC performs research

and development necessary to create new products and processes, along

with examining and improving those of the present generation.

Denial of license renewal for the NNFD/LTC facility would require

that similar activities be undertaken at another site.

Environmental Impacts of the Proposed Action

Renewal of the combined NNFD/LTC license, involves a balance of

positive and negative impacts. The positive impacts include

contribution to national security, lessening of dependence on fossil

fuels, and lessening of the negative environmental impacts related to

production and utilization of fossil fuels. The negative impacts

include releases of radioactive materials in the various environmental

media associated with facility operation.

For the proposed action, renewal of the combined NNFD/LTC license,

the continued handling of materials and conduct of operations at the

facility poses a potential impact to the environment and public health

and safety. For normal operations, the impact is related to the release

of low levels of toxic or radioactive materials to the environment over

extended periods of time. For accident conditions, the

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hazard may involve release of higher concentrations of materials over

relatively short periods of time.

The nonradioactive gaseous emissions from the combined NNFD/LTC are

nitrogen oxides and fluoride compounds released from the process

buildings and combustion products released from the steam plant. The

state-issued air quality permit for the facility calls for the NOX

concentration at the site boundary to meet National Ambient Air Quality

Standards (NAAQS). It has been determined that a maximum sector annual

average NOX concentration is approximately 0.8 percent of the

NAAQS limit for NOX. Consequently, it is concluded that NOX

emissions produce an insignificant environmental impact (NRC, 1991).

The maximum hydrogen fluoride (HF) site boundary concentration is

estimated as 0.04 g/m \3\ . This concentration is

approximately 1 percent of the time weighted average threshold limit

value (TLV) proposed for workers by the American Conference of

Governmental Industrial Hygienists (ACGIH) (ACGIH, 1986). Consequently,

no significant impacts are expected.

Potential surface water impacts associated with operation of the

combined NNFD/LTC include disruption of flow of the James River due to

withdrawals and degradation of water quality of the river due to

contaminant releases. The design capacity for withdrawal by the B&W

facility is 0.02 m \3\/s (0.67 ft \3\/s). To date, this use of the

James River by the B&W facility has had no adverse impact on the James

River flow rate. The flow rates associated with future operations are

expected to be similar or less than the historical flows; no additional

impact is expected.

Degradation of surface water quality is prevented by enforcement of

release limits and monitoring programs mandated under the facility

National Pollution Discharge Elimination Systems (NPDES) permit. LTC

liquid discharges are a small part of the combined discharges, which

are monitored under this permit. NPDES permit conditions were exceeded

twice during the 1989 through 1993 period. In the first instance, the

discharge load for fluoride was exceeded during September 1993. In the

second instance, the permit level for fecal coliform was exceeded at an

internal monitoring point during July 1994 but was within limits at the

final release monitoring point. This infrequent exceedance of NPDES

levels does not indicate occurrence of a significant environmental

impact.

Potential groundwater impacts include drawdown of the water table

in the vicinity of facility wells and degradation of groundwater

quality due to uncontrolled leakage to the subsurface soils. The B&W

withdrawals of groundwater in the area of the James River are small in

comparison to the capacity of the wells and the groundwater system.

There are no discharges of waste waters to ponds that could result

in groundwater contamination from proposed operations except for those

ponds that are used to manage the flow rate of discharges into the

James River. The groundwater does have high levels of trichloroethylene

(TCE) contamination from previous leaks which have been identified and

eliminated.

On September 27, 1991, the Environmental Protection Agency (EPA)

Region III issued a Final Order of Consent (Docket RCRA-III-050-CA)

under Section 3008(h) of the Resource Conservation Reauthorization Act

(RCRA), as amended. The Consent Order specified that B&W perform

interim measures to prevent or relieve immediate threats to human

health or the environment, perform a RCRA field investigation (RFI) to

delineate the nature and extent of any releases of past raw products or

wastes, and to perform a corrective measures study (CMS) to identify

and evaluate alternatives for corrective action (B&W, 1995b).

On April 17, 1995, the draft RFI report was completed and submitted

to EPA Region III. The RFI report identified three groundwater plumes

which were contaminated with TCE, tetrachloroethylene (PCE), and

related degradation constituents above the drinking water limit of

0.005 parts per million (ppm). The largest plume (Plume A) is located

beneath the NNFD plant, extending 884 m (2,900 feet) from the upper

road on the southwest portion of the site northeast to the James River.

Plume A has a maximum width 365 m (1,200 feet), an approximate area of

28 hectares (70 acres), and an average concentration of 0.1 ppm TCE.

The TCE source areas for plume A are the former TCE storage tank

location where the maximum groundwater contamination is 145 ppm TCE,

and a former zirconium chip burning area near the James River where the

maximum groundwater contamination is 44.3 ppm TCE (B&W, 1995b).

The second largest plume (Plume C) is located beneath the

Commercial Nuclear Fuel Plant (CNFP), extending 503 m (1,650 feet) from

the upper side of the CNFP plant north towards the James River. Plume C

has a maximum width of 190 m (625 feet), an approximate area of 10

hectare (24 acres) and an average concentration of 0.01 ppm TCE. The

TCE source area for plume C is the former TCE storage tank location,

and the maximum groundwater contamination is 0.397 ppm TCE (B&W,

1995b).

The third largest plume (Plume B) is located on the western portion

of the site where the former uranium recovery building was buried.

Plume B has a maximum length of 229 m (750 feet), a maximum width of 90

meters (300 feet), an approximate area of 2 hectares (5 acres), and an

average concentration of 0.1 ppm TCE and 0.1 ppm PCE. The exact TCE and

PCE source areas for plume B are unknown, but are most likely due to

past waste disposal practices in the building disposal area. The

maximum groundwater contamination is 3.4 ppm TCE and 58.6 ppm PCE. Upon

EPA Region III approval of the RFI report, B&W will proceed with the

CMS, where alternatives for corrective action will be evaluated (B&W,

1995b).

All but two of the underground tanks installed at the site have

been removed and so the potential for accidental contamination of the

groundwater is reduced. Remediation plans are being prepared for the

cleanup of the TCE plume. The continued operation of the combined NNFD/

LTC is not expected to result in any additional negative impact on the

local groundwater.

Operation of the NNFD and LTC may pose risks to public health and

safety due to release of radioactive material under normal operational

or accident conditions. Radioactive materials released from the NNFD

and LTC may reach the public through a variety of transport pathways

contributing to both internal and external exposures. For atmospheric

releases; internal exposures may occur through inhalation of

radioactive material dispersed in the air or ingestion of crops and

animal products which come in contact with radioactive material

deposited from the air. External exposures may occur through direct

radiation from an airborne plume or from particulates deposited onto

the ground from the plume. For liquid releases, internal exposures from

ingestion of water or irrigated crops may occur. External exposures

from recreational activities, including swimming and boating may occur.

For atmospheric releases, potentially exposed members of the public

considered in the analysis include a maximally exposed individual

located at the site boundary and the population out to a distance of 80

kilometers (50 miles). In order to

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provide a conservative evaluation of potential liquid pathway impacts,

the analysis assumes that a maximally exposed individual downstream of

the facility and the surrounding population obtain drinking water and

irrigation water from the James River.

The NNFD releases radioactive material to the atmosphere from

approximately 27 stacks while the LTC releases radioactive material

from 2 stacks. The NNFD releases are primarily uranium while the LTC

releases are mixed fission products, including H-3 and Kr-85. For

internal exposures, uranium is the dominant radionuclide; inhalation

exposures are greater than ingestion exposures, and the lung is the

controlling organ.

Low-level liquid radioactive waste from the NNFD and the LTC are

processed through the Waste Treatment Facility. The system effluent is

monitored and released to the James River. Releases attributable to the

NNFD are primarily uranium while those from the LTC are primarily

tritium.

NRC regulations (10 CFR 20.1301) require that total effective dose

equivalent (TEDE) for members of the public not exceed 1.0x10-\3\ Sv

(100 mrem) per year. In addition, EPA regulations (40 CFR Part 190)

require that for routine releases to the general environment, the

annual dose equivalent not exceed 2.5x10-\4\ Sv (25 mrem) to the whole

body, 7.5x10-\4\ Sv (75 mrem) to the thyroid, and 2.5x10-\4\ Sv (25

mrem) to any other organ (EPA, 1977). For releases to the atmosphere,

EPA regulations (40 CFR Part 61) require that the annual effective dose

equivalent not exceed 1.0x10-\4\ Sv (10 mrem) (EPA, 1991). Doses

associated with NNFD and LTC operations are dominated by releases to

the atmosphere. For the maximally exposed individual, TEDE is estimated

as 2.4x10-\7\ Sv (0.024 mrem) while the largest dose to a tissue is

estimated as 2.0x10-\6\ Sv (0.2 mrem) to the lung. The doses are small

fractions of the limits established by the NRC and EPA and indicate

that facility operations will have insignificant impact on public

health and safety. Because conservative assumptions were used in the

analysis, actual doses are expected to be lower.

The NNFD and LTC handle materials which could pose a risk to public

health and safety if released during accidents. Prior NRC analysis of

operation of the NNFD considered accidents including criticality, fire,

and flood (NRC, 1978). This prior analysis is supplemented by

consideration of the research and development, analytical, and

decontamination operations conducted at the LTC. The initial step in

the accident analysis is auditing of hazardous materials and

potentially hazardous activities present or conducted at the facility.

Other than radioactive materials, the LTC does not contain significant

inventories of potentially hazardous materials. In addition, the

facility does not fabricate or convert materials in any continuous

process. Thus, the handling and examination of fuel assemblies and the

management of effluents associated with these operations are the

activities which may pose a risk to the public health and safety.

The NNFD conducts an environmental monitoring program which

includes sediment, soil, vegetation, surface water, air, and

groundwater media at 20 locations on or near the facility. The program

is intended to identify trends in concentrations or accumulation of

uranium or other contaminants in the environment. Action levels have

been established for each media to provide a basis for response to

potential problems. Actions triggered by exceedance of an action level

may include resampling of the area, performance of isotopic analysis,

investigation of the source of contamination, elimination of the source

of contamination, or termination of operations pending identification

of a method for reduction of contaminant levels. Environmental

monitoring results are reviewed as part of the ALARA program.

The NRC staff has reviewed the location of the environmental

monitoring program sampling points, the frequency of sample collection,

and the trends of the sampling program results in conjunction with

environmental pathway and exposure analysis and concluded that the

monitoring program provides adequate protection of public health and

safety.

Alternatives to the Proposed Action

Implementation of the license renewal alternative involves

continued operation of the facility at levels consistent with past

practice for both the NNFD and LTC. Data and analysis presented in this

Environmental Assessment updates and supplements the data and analysis

presented in an Environmental Assessment (NRC, 1991) prepared earlier

in the license renewal process. No new major construction or

introduction of new processes is contemplated. The nature of the

manufacturing, research, and waste management operations is summarized

in this section. The system description presented in this section is

adapted from material contained in the prior B&W Environmental

Assessment (NRC, 1991) and license renewal application (B&W, 1995a).

The alternative of denial of license renewal for the B&W combined

NNFD/LTC facility at the Lynchburg, Virginia site implies cessation of

manufacturing and commencement of decontamination and decommissioning

(D&D) of the facility. Decontamination and decommissioning activities

would be substantially the same as those described for the license

renewal alternative in Section 2.1 of this environmental assessment.

However, since the fuel utilization requirements of the naval

propulsion program and the university training and research programs

would remain unchanged, selection of this alternative implies transfer

of fuel production activities to a new site.

Agencies and Persons Consulted

Virginia State Health Department, Bureau of Radiological

Health.

Virginia Department of Environmental Quality.

--Mixed Waste Issues Enforcement Branch

--Water Control

--Air Quality

--West Central Regional Office

--Enforcement

Virginia Labor Market Area Office, Virginia Employment

Commission.

City of Lynchburg, Economic Development Office.

Environmental Protection Agency, RCRA Enforcement Branch,

Region 3.

Appomatax County Administrator.

Other sources used in the preparation of the EA include the

following:

Babcock & Wilcox, 1995a, License Renewal Application, SNM-42, Naval

Nuclear Fuel Division, Lynchburg, VA, February 1995.

Babcock & Wilcox, 1995b, Supplemental Information to NRC, April

1995.

Babcock & Wilcox, 1991, Environmental Report, Naval Nuclear Fuel

Division, Lynchburg, VA, August 1991.

Babcock & Wilcox, 1989, National Pollution Discharge Permit

Application, VA0003697, September 27, 1989.

Biological Monitoring, Inc., 1989, Final Year End Report for On-

Site Effluent Toxicity Studies and Biological Studies of the James

River Performed in August and September 1989, Prepared for Babcock &

Wilcox.

U.S. Nuclear Regulatory Commission, 1991, Environmental Assessment

for Renewal of Special Nuclear Material License No. SNM-42, Docket No.

70-27 Naval Nuclear Fuel Division, Lynchburg, VA, August 1991.

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U.S. Nuclear Regulatory Commission, 1986, Environmental Assessment

for Renewal of Material License No. SNM-778, Docket No. 70-824,

Lynchburg Research Center, Lynchburg, VA, December 1986.

U.S. Nuclear Regulatory Commission, 1984, Environmental Impact

Appraisal for Babcock & Wilcox Company, Naval Nuclear Fuel Division,

Docket No.70-27. Renewal of Special Nuclear Material License No. SNM-

42, Lynchburg, VA, March 1984.

Conclusion

The NRC staff concludes that the environmental impacts associated

with the proposed license renewal for continued operation of B&W's

NNFD/LTC facility are expected to be insignificant.

Finding of No Significant Impact

The Commission has prepared an Environmental Assessment related to

the renewal of Special Nuclear Material License SNM-42. On the basis of

the assessment, the Commission has concluded that environmental impacts

that would be created by the proposed licensing action would not be

significant and do not warrant the preparation of an Environmental

Impact Statement. Accordingly, it has been determined that a Finding of

No Significant Impact is appropriate.

The Environmental Assessment and the above documents related to

this proposed action are available for public inspection and copying at

the Commission's Public Document Room at the Gelman Building, 2120 L

Street NW, Washington, DC.

Opportunity for a Hearing

Any person whose interest may be affected by the issuance of this

renewal may file a request for a hearing. Any request for hearing must

be filed with the Office of the Secretary, U.S. Nuclear Regulatory

Commission, Washington, DC 20555, within 30 days of the publication of

this notice in the Federal Register; be served on the NRC staff

(Executive Director for Operations, One White Flint North, 11555

Rockville Pike, Rockville, MD 20852); and on the licensee (Babcock &

Wilcox Company, Naval Nuclear Fuel Division, Lynchburg, Virginia); and

must comply with the requirements for requesting a hearing set forth in

the Commission's regulation, 10 CFR Part 2, Subpart L, ``Informal

Hearing Procedures for Adjudications in Materials Licensing

Proceedings.''

These requirements, which the requestor must address in detail,

are:

1. The interest of the requestor in the proceeding;

2. How that interest may be affected by the results of the

proceeding, including the reasons why the requestor should be permitted

a hearing;

3. The requestor's areas of concern about the licensing activity

that is the subject matter of the proceeding; and

4. The circumstances establishing that the request for hearing is

timely, that is, filed within 30 days of the date of this notice.

In addressing how the requestor's interest may be affected by the

proceeding, the request should describe the nature of the requestor's

right under the Atomic Energy Act of 1954, as amended, to be made a

party to the proceeding; the nature and extent of the requestor's

property, financial, or other (i.e.,health, safety) interest in the

proceeding; and the possible effect of any order that may be entered in

the proceeding upon the requestor's interest.

Dated at Rockville, Maryland, this 30th day of August 1995.

For the Nuclear Regulatory Commission.

Robert C. Pierson,

Chief, Licensing Branch, Division of Fuel Cycle Safety and Safeguards,

NMSS.

[FR Doc. 95-22186 Filed 9-6-95; 8:45 am]

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