Safeguards Information-Modified Handling Categorization; Change for Materials Facilities, 58664-58672 [2014-23256]

Agencies

• NUCLEAR REGULATORY COMMISSION

[Federal Register Volume 79, Number 189 (Tuesday, September 30, 2014)]
[Rules and Regulations]
[Pages 58664-58672]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23256]


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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 30, 37, 73, and 150

[NRC-2012-0140]
RIN 3150-AJ18


Safeguards Information--Modified Handling Categorization; Change 
for Materials Facilities

AGENCY: Nuclear Regulatory Commission.

ACTION: Direct final rule.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is amending its 
regulations to remove the Safeguards Information--Modified Handling 
(SGI-M) designation of the security-related information for large 
irradiators, manufacturers and distributors, and for transport of 
category 1 quantities of radioactive material. The rulemaking will also 
result in the removal of the SGI-M designation of the security-related 
information for the transportation of irradiated reactor fuel that 
weighs 100 grams or less in net weight of irradiated fuel. The 
security-related information for these facilities and the 
transportation of certain

[[Page 58665]]

materials will no longer be designated as SGI-M and will be protected 
under the information protection requirements that apply to other 
materials licensees that possess category 1 and category 2 quantities 
of radioactive material.

DATES: This final rule is effective January 28, 2015, unless a 
significant adverse comment is received by October 30, 2014. If the 
rule is withdrawn as a result of such comments, timely notice of the 
withdrawal will be published in the Federal Register. Comments received 
after this date will be considered if it is practical to do so, but the 
NRC staff is able to ensure consideration only for comments received on 
or before this date.

ADDRESSES: Please refer to Docket ID NRC-2012-0140 when contacting the 
NRC about the availability of information for this direct final rule. 
You may access publicly-available information related to this direct 
final rule by any of the following methods:
     Federal Rulemaking Web site: Go to https://www.regulations.gov and search for Docket ID NRC-2012-0140. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-287-
3422; email: Carol.Gallagher@nrc.gov. For technical questions, contact 
the individual listed in the FOR FURTHER INFORMATION CONTACT section of 
this direct final rule.
     NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly-available documents online in the 
ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``ADAMS Public Documents'' and 
then select ``Begin Web-based ADAMS Search.'' For problems with ADAMS, 
please contact the NRC's Public Document Room (PDR) reference staff at 
1-800-397-4209, 301-415-4737, or by email to pdr.resource@nrc.gov. The 
ADAMS accession number for each document referenced (if it is available 
in ADAMS) is provided the first time that it is mentioned in the 
SUPPLEMENTARY INFORMATION section.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Vanessa Cox, Office of Federal and 
State Materials and Environmental Management Programs, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-
8342, email: Vanessa.Cox@nrc.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

    The NRC has issued three sets of security orders containing SGI-M 
for the protection of category 1 and category 2 quantities of 
radioactive material. These orders were all issued under the 
Commission's authority for common defense and security. The first set 
of orders was issued to panoramic and underwater irradiator licensees 
that possess more than 370 Terabequerels (TBq) (10,000 curies (Ci)) of 
radioactive material (large irradiators) (EA-02-249; June 6, 2003) (68 
FR 35458; June 13, 2003). The second set of orders was issued to 
manufacturing and distribution (M&D) licensees (EA-03-225; January 12, 
2004) (69 FR 5375; February 4, 2004). The third set of orders was 
issued to licensees that transport source, byproduct, or special 
nuclear material in category 1 quantities of radioactive material (EA-
05-006; July 19, 2005) (70 FR 44407; August 2, 2005). The third set of 
orders also covered transportation of irradiated reactor fuel that 
weighs 100 grams or less in net weight of irradiated fuel.
    The orders issued to large irradiators, M&D licensees, and 
licensees transporting category 1 quantities of radioactive materials, 
require these licensees to perform specified actions within specific 
timeframes. The information related to these timeframes is designated 
SGI-M. Some licensees have developed security plans incorporating these 
timeframes. Therefore, information contained in these security plans 
has been designated as SGI-M. Furthermore, the orders to licensees 
transporting category 1 quantities of radioactive material require 
these licensees to develop transportation security plans and coordinate 
itinerary information with the states through which the shipment will 
be traveling. Portions of these transportation security plans and 
itinerary information are also designated as SGI-M.
    A fourth set of orders, commonly called the Increased Control (IC) 
Orders, was issued to all other licensees that possessed greater than 
category 2 quantities of radioactive material (EA-05-090; November 14, 
2005) (70 FR 72128; December 1, 2005). These orders were issued under 
the Commission's authority for protection of public health and safety. 
The IC Orders require licensees to immediately detect, assess, and 
respond to any unauthorized access to category 2 or greater quantities 
of radioactive material. These orders do not contain any specific 
response times or other SGI-M information. Because these licensees' 
security plans are based on the IC Orders, and these orders do not 
contain SGI information, the security plans for licensees subject only 
to the IC Orders are not designated as SGI-M.
    On October 24, 2008 (73 FR 63546), the NRC published a final rule 
that established, among other things, the requirements for protection 
of SGI-M and designated categories of licensees that would be subject 
to the SGI-M provisions. The SGI-M requirements are located in part 73 
of Title 10 of the Code of Federal Regulations (10 CFR), ``Physical 
Protection of Plants and Materials.'' This rule required certain 
licensees to establish, implement, and maintain an information 
protection system that includes the applicable measures for SGI-M 
specified in 10 CFR 73.23, ``Protection of Safeguards Information--
Modified Handling: Specific requirements.'' This section contains 
specific requirements related to panoramic and underwater irradiators 
that possess greater than 370 TBq (10,000 Ci) of byproduct material in 
the form of sealed sources; manufacturers and distributors of items 
containing source, byproduct, or special nuclear material in greater 
than or equal to category 2 quantities of concern; the transportation 
of irradiated reactor fuel that weighs 100 grams or less in net weight 
of irradiated fuel; and transportation of source, byproduct, or special 
nuclear material in greater than or equal to category 1 quantities of 
concern. The rule was effective on February 23, 2009. Orders containing 
the requirements for protection of SGI-M were not modified or rescinded 
after issuance of the final rule; therefore, licensees are currently 
subject to both the requirements in the regulations and the orders.
    On March 19, 2013 (78 FR 16922), the NRC published a final rule in 
the Federal Register, adding a new part 37 to Title 10 of the CFR, 
``Physical Protection of Category 1 and Category 2 Quantities of 
Radioactive Material.'' NRC licensees were required to comply with 10 
CFR part 37 by March 19, 2014. The final rule establishes the security 
requirements for the protection of category 1 and category 2 quantities 
of radioactive material and for transportation of irradiated reactor 
fuel that weighs 100 grams or less in net weight of irradiated fuel. 
The rule also contains information protection requirements for the 
security plan, procedures, and other information.

[[Page 58666]]

II. Discussion

A. What action is the NRC taking?

    The NRC is amending its regulations to remove the SGI-M designation 
of the security-related information for large irradiators, M&Ds, and 
transport of category 1 quantities of radioactive material. The 
rulemaking will also result in the removal of the SGI-M designation of 
the security-related information for the transportation of irradiated 
reactor fuel that weighs 100 grams or less in net weight of irradiated 
fuel. The security-related information will instead be protected under 
the new 10 CFR part 37, ``Physical Protection of Category 1 and 
Category 2 Quantities of Radioactive Material.''

B. What is the purpose of the direct final rule?

    The purpose of the direct final rule is to remove the SGI-M 
designation of the security-related information for large irradiators, 
M&Ds, and for transport of category 1 quantities of radioactive 
material. The rulemaking will also result in the removal of the SGI-M 
designation of the security-related information for the transportation 
of irradiated reactor fuel that weighs 100 grams or less in net weight 
of irradiated fuel.

C. Whom will this action affect?

    The direct final rule will apply to any panoramic and underwater 
irradiator licensee that possesses more than 370 TBq (10,000 Ci) of 
radioactive material, M&D licensees, and any licensee that transports 
small quantities of irradiated reactor fuel that weighs 100 grams or 
less in net weight of irradiated fuel or category 1 quantities of 
radioactive material whether the facility is licensed by the NRC or an 
Agreement State. There are 85 Agreement State licensees and 27 NRC 
licensees that will be impacted by this rule. These are the materials 
licensees that received orders under the Commission's authority to 
protect the common defense and security.

D. With the redesignation of the security-related information, will the 
security plans become public information?

    No, the security-related information will not be made public. The 
change in the designation of the security-related information does not 
result in public disclosure of the information as the information will 
still be protected under 10 CFR part 37. Access to this information 
will be based upon a trustworthiness and reliability determination and 
on a need-to-know determination.

E. Will documents now designated SGI-M still have to be protected as 
SGI-M?

    Yes, documents marked as SGI-M must be protected as SGI-M until 
they are removed from the SGI-M category (destroyed or decontrolled). 
Once 10 CFR part 37 or the equivalent Agreement State regulations are 
in place and the NRC security orders are rescinded, the SGI-M security 
Orders and security plans required by the Orders must be destroyed in 
accordance with 10 CFR 73.23(i). Additionally, if a panoramic 
irradiator or M&D licensee develops a 10 CFR part 37 security plan in 
preparation for compliance with 10 CFR part 37 or the equivalent 
Agreement State regulation before Sec.  73.23 is revised, the licensee 
must decontrol the 10 CFR part 37 security plan in accordance with 
Sec.  73.23(h) once Sec.  73.23 is revised.
    The NRC does not expect licensees who were subject to the NRC 
security orders to find all stored documents designated as SGI-M solely 
for the purpose of destroying the documents. Instead, as those 
documents are removed from storage, the licensee must either destroy or 
decontrol the document(s) at that time. Documents marked as SGI-M must 
continue to be protected as SGI-M until they are destroyed or 
decontrolled. Additional information on the destruction or 
decontrolling of SGI is available in Section 9 of Regulatory Guide 
5.79, ``Protection of Safeguards Information.''

F. What are the information protection requirements under 10 CFR part 
37? How does this compare to the information protection requirements 
prescribed for SGI-M?

    The 10 CFR part 37 rulemaking requires that a need-to-know 
determination be made before an individual is allowed to have access to 
the security-related information. The 10 CFR part 37 rulemaking 
requires licensees to limit access to and prevent unauthorized 
disclosure of their security plans and implementing procedures. When 
not in use, the security plan and implementing procedures must be 
stored in a manner that will prevent the unauthorized removal of those 
documents. Information stored in non-removable electronic form must be 
password-protected. These requirements are similar to the storage 
requirements for SGI-M.
    The regulations in 10 CFR part 37 also require a background 
investigation to determine the trustworthiness and reliability of an 
individual seeking access to protected information. This determination 
must be conducted by a reviewing official who has also been determined 
to be trustworthy and reliable. The background investigation for access 
to information under 10 CFR part 37 is similar to that required by 
Sec.  73.23, with the exception that fingerprints are not submitted and 
a Federal Bureau of Investigation (FBI) criminal history records check 
is not required. However, many of the individuals needing access to 
protected information would also require access to radioactive 
material. Unescorted access to radioactive material requires 
fingerprinting and an FBI criminal history records check as part of the 
background investigation required under 10 CFR part 37. Therefore, the 
NRC anticipates that most individuals requiring access to security-
related information would already have undergone fingerprinting and an 
FBI criminal history records check.
    The regulations in 10 CFR part 37 do not have requirements for the 
transmission of information or for marking the material. However, with 
the exception of routing information, licensees do not routinely 
transmit security-related information and the routing information is 
not transmitted as SGI-M, but is protected as SGI-M once received. 
Licensees are not required to submit the security plan or implementing 
procedures to the NRC.
    The NRC concludes that 10 CFR part 37 provides adequate protection 
of the security-related information without unduly burdening licensees 
with the additional requirements for protection of SGI-M.

G. What is the reason for the designation change?

    The NRC considers that this re-designation is appropriate based on 
the following: (1) Large irradiators have a lower risk of theft, and 
M&D licensees have a similar risk of theft when compared to other 
licensees possessing category 1 and category 2 quantities of 
radioactive material; (2) the information protection requirements in 10 
CFR part 37 provide adequate protection of the security-related 
information; (3) the security requirements under 10 CFR part 37 are the 
same for all licensees; (4) information security requirements should be 
consistent across all areas that are regulated under NRC authority for 
public health and safety; (5) the change will ease communication 
between regulator and licensee; and (6) under 10 CFR part 73, the NRC 
would continue to inspect Agreement State licensee programs for the 
protection of SGI-M

[[Page 58667]]

until the Agreement State requirements become effective. Additionally, 
several commenters on the proposed 10 CFR part 37 rule, including 
several Agreement States, indicated that the security-related 
information for large irradiators, M&Ds, and licensees that transport 
category 1 quantities of radioactive material should not be considered 
SGI-M.
    Sandia National Laboratories (SNL) performed vulnerability 
assessments on a variety of materials licensees before the ICs were 
developed. The ICs and 10 CFR part 37 incorporate security measures 
that were identified in the draft vulnerability assessments (ADAMS 
Accession No. ML082130714) as being effective in providing reasonable 
assurance that public health and safety and the common defense and 
security will be adequately protected. The SNL study also indicates 
that certain licensees are less vulnerable to theft than other 
licensees. Large irradiators have a lower risk of theft, and M&D 
licensees have a similar risk of theft when compared to other licensees 
subject to the security requirements in 10 CFR part 37. The NRC, 
therefore, concludes that licensee security plans for M&D and large 
irradiator licensees need not be protected at a higher level than the 
security plans of other licensees subject to 10 CFR part 37.
    As noted in the response to Question F, 10 CFR part 37 will provide 
adequate protection of the security-related information that is 
currently designated as SGI-M for these licensees. The actual security 
requirements in 10 CFR part 37 are the same for all licensees. These 
security requirements do not contain any of the information from the 
security orders that was designated as SGI-M. The SGI-M timeframes that 
were in the orders are replaced in the 10 CFR part 37 rule by terms 
such as prompt, immediate, and without delay. Therefore, disclosure of 
one licensee's response times will not compromise another licensees' 
security-related information because the response time designated in 
the rule is already public knowledge, (i.e., immediate).
    Currently, itinerary information for the transportation of category 
1 quantities of material and for the transportation of irradiated 
reactor fuel that weighs 100 grams or less in net weight of irradiated 
fuel is designated as SGI-M under 10 CFR part 73 and the orders. 
Licensees are required to coordinate this information with states 
through which the shipment will pass. Shipment information is shared on 
a need-to-know basis for pre-planning, coordination, and advance 
notification purposes. Although the information is considered to be 
SGI-M, the information is not handled as SGI-M for the purposes of 
communication (telephone and facsimile) with the States and other 
licensees; however, once the shipment information is received, it must 
be handled as SGI-M. If the SGI-M designation for these licensees is 
revised, the licensees will be able to communicate freely with the 
States and transportation companies possessing a need-to-know and will 
not need to deal with the inconsistency in transmitting the SGI-M 
shipment information as non-SGI-M.
    The security orders for the transportation of category 1 quantities 
of radioactive material, large irradiator licensees, and M&D licensees 
were issued under the NRC's common defense and security authority. The 
new 10 CFR part 37 security requirements, however, were issued under 
the NRC's authority to protect the public health and safety. The NRC 
has determined that the information protection requirements set forth 
in the new 10 CFR part 37 are adequate to protect the security 
information associated with large irradiators, M&Ds, and licensees that 
transport category 1 quantities of radioactive material. Therefore, 
once this direct final rule is effective, the security information 
associated with these licensees is no longer required to be handled as 
SGI-M. Furthermore, this will ensure that all the information security 
requirements are consistent across all areas that are regulated under 
public health and safety.
    Protection of information at a level less than SGI-M will allow 
licensees to communicate more easily with regulators regarding 
implementation of the 10 CFR part 37 requirements, but still requires 
licensees to limit access to specific security plans and procedures. 
For example, licensees will be required to limit access to the plans to 
those employees who need access to perform a job function. Licensees 
also will be required to store their security plans in locked cabinets 
while not in use, but could use normal lines of communication with the 
NRC or an Agreement State to discuss security-related questions or 
concerns. This approach achieves meaningful information protection 
without unduly burdening licensees' and regulators' ability to achieve 
effective implementation of the 10 CFR part 37 requirements.
    If the security-related information for these facilities remains 
designated as SGI-M, the NRC will be responsible for inspection and 
enforcement of the SGI-M programs at those facilities regulated by an 
Agreement State. This can result in confusion for licensees. Results of 
many aspects of the security inspections would be SGI-M and could not 
be discussed in an open environment. Because only some security-related 
information at these facilities would be SGI-M, licensees would need to 
maintain two systems to protect security-related information, which 
needlessly increases the burden on the licensee.

H. Will the orders be rescinded?

    Yes, the orders will be rescinded once 10 CFR part 37 is 
implemented for NRC licensees. For Agreement State licenses, the orders 
will be rescinded when the Agreement State adopts program element 
requirements based on those elements that embody the essential 
objectives of the 10 CFR part 37 requirements. Agreement States have 
until March 2016 to comply.

I. Will the NRC issue guidance for this rule?

    No, the NRC does not plan to issue guidance specific to this rule. 
Existing guidance on SGI does not contain references to these types of 
facilities and, therefore, does not need to be revised. The guidance on 
10 CFR part 37, NUREG-2155, Implementation Guidance for 10 CFR Part 37, 
``Physical Protection of Category 1 and Category 2 Quantities of 
Radioactive Material'' (ADAMS Accession No. ML13053A061), will be 
revised to remove references to SGI-M. Only the revised pages will be 
issued for the 10 CFR part 37 guidance document. The changes will be 
included in the next update to NUREG-2155.

J. Are individuals transporting category 1 radioactive material subject 
to the background investigation requirements?

    No. Under this final rule, the Commission is revising the listing 
of categories of individuals relieved from the background investigation 
requirements to include employees of carriers that transport category 1 
quantities of radioactive material. Additionally, information related 
to the physical protection of shipments of source and byproduct 
material in category 1 quantities of radioactive material is no longer 
designated as SGI-M. For these reasons, the NRC will rely on the 
background investigations required by the U.S. Department of 
Transportation (DOT) and the Transportation Security Administration 
(TSA) programs for background investigations of these personnel. While 
the background investigation may not be identical to one required under 
10 CFR part 37, the potential risk that a

[[Page 58668]]

commercial driver or package handler may pose due to any difference in 
the background investigation is acceptably small.
    As part of this rulemaking, the NRC considered the level of 
responsibility to place on its licensees regarding fingerprinting and 
criminal history records checks for persons involved in the 
transportation of category 1 radioactive material. Licensees covered by 
the fingerprinting and criminal history records check requirements of 
10 CFR part 37 may decide to transfer radioactive material away from 
the site or may receive radioactive material from another entity.
    Such transfers or receipts may occur either as part of a shipment 
to or from a domestic or an international company. Individuals involved 
in the shipment, in particular those employed by carriers or other 
organizations handling shipments, may have unescorted access to the 
material during the shipment process. These persons may not be 
employees of the licensee and therefore may not be under the licensee's 
direct control. Section 37.29(a) grants relief from the background 
investigation for those individuals who are commercial vehicle drivers 
for category 2 road shipments and package handlers at transportation 
facilities such as freight terminals and railroad yards.
    These individuals would typically be outside the control of the 
licensee.

III. Summary of Changes

Section 30.4 Definitions

    The definition for ``Quantities of Concern'' is removed from the 
regulations as it is no longer needed.

Section 30.32 Application for Specific Licenses

    Paragraph (k) is removed from the regulations to remove the 
reference to the SGI requirements in 10 CFR part 73.

Section 30.34 Terms and Conditions of Licenses

    Paragraph (l) is removed from the regulations to remove the 
reference to the SGI requirements in 10 CFR part 73.

Section 37.29 Relief From Fingerprinting, Identification, and Criminal 
History Records Checks and Other Elements of Background Investigations 
for Designated Categories of Individuals Permitted Unescorted Access to 
Certain Radioactive Materials

    Paragraph (a)(10) is revised to include category 1 drivers.

Section 37.43 General Security Program Requirements

    Paragraph (d)(1) is revised to remove reference to Sec.  
37.43(d)(9).
    Paragraph (d)(9) is removed from the regulations to remove the 
reference to the SGI requirements in 10 CFR part 73.

Section 37.77 Advance Notification of Shipment of Category 1 Quantities 
of Radioactive Material

    Paragraph (f) is revised to change the reference for protection of 
the information from Sec.  73.21 to Sec.  37.43(d).

Section 73.2 Definitions

    The definition for ``Quantities of Concern'' is removed from the 
regulations, as it is no longer needed.

Section 73.21 Protection of Safeguards Information: Performance 
Requirements

    Paragraph (a)(1)(ii) is revised to remove panoramic and underwater 
irradiators that possess greater than 370 TBq (10,000 Ci) of byproduct 
material in the form of sealed sources; manufacturers and distributors 
of items containing source, byproduct, or special nuclear material in 
greater than or equal to category 2 quantities of radioactive material; 
and transportation of source, byproduct, or special nuclear material in 
greater than or equal to category 1 quantities of radioactive material 
from the list of categories of licensees subject to the provisions of 
10 CFR part 73 for the protection of SGI-M.

Section 73.23 Protection of Safeguards Information--Modified Handling: 
Specific Requirements

    The introductory text in this section is revised to remove 
panoramic and underwater irradiators that possess greater than 370 TBq 
(10,000 Ci) of byproduct material in the form of sealed sources; 
manufacturers and distributors of items containing source, byproduct, 
or special nuclear material in greater than or equal to category 2 
quantities of concern; transportation of more than 1000 TBq (27,000 Ci) 
but less than or equal to 100 grams of spent nuclear fuel; and 
transportation of source, byproduct, or special nuclear material in 
greater than or equal to category 1 quantities of radioactive material 
from the list of categories of licensees subject to the provisions of 
10 CFR part 73 for the protection of SGI-M.
    Paragraph (a)(2) is revised to remove the security-related 
information that is associated with the physical protection of 
shipments of more than 1000 TBq (27,000 Ci) but less than or equal to 
100 grams of spent nuclear fuel, source material and byproduct material 
in category 1 quantities of concern from the SGI-M category.

Appendix I to Part 73--Category 1 and 2 Radioactive Materials

    Appendix I, Table I-1--Quantities of Concern Threshold Limits, is 
removed from the regulations as it is no longer needed.

Section 150.15 Persons Not Exempt

    Paragraph (a)(9) is removed from the regulations to remove the 
reference to the SGI requirements in 10 CFR part 73.

IV. Procedural Background

    Because the NRC considers this action to be non-controversial, the 
NRC is using the direct final rule process for this rule. The amendment 
to the rule will become effective on January 28, 2015. However, if the 
NRC receives a significant adverse comment on this direct final rule by 
October 30, 2014, then the NRC will publish a document that withdraws 
this action and will address the comments received in a final rule as a 
response to the companion proposed rule published elsewhere in this 
issue of the Federal Register. Absent significant modifications to the 
proposed revisions requiring republication, the NRC will not initiate a 
second comment period on this action.
    A significant adverse comment is a comment where the commenter 
explains why the rule would be inappropriate, including challenges to 
the rule's underlying premise or approach, or would be ineffective or 
unacceptable without a change. A comment is adverse and significant if:
    (1) The comment opposes the rule and provides a reason sufficient 
to require a substantive response in a notice-and-comment process. For 
example, a substantive response is required when:
    (a) The comment causes the NRC staff to reevaluate (or reconsider) 
its position or conduct additional analysis;
    (b) The comment raises an issue serious enough to warrant a 
substantive response to clarify or complete the record; or
    (c) The comment raises a relevant issue that was not previously 
addressed or considered by the NRC staff.
    (2) The comment proposes a change or an addition to the rule, and 
it is apparent that the rule would be ineffective or unacceptable 
without incorporation of the change or addition.
    (3) The comment causes the staff to make a change (other than 
editorial) to the rule.
    For detailed instructions on submitting a comment, please see the 
companion proposed rule published

[[Page 58669]]

elsewhere in this issue of the Federal Register.

V. Compatibility of Agreement State Regulations

    Under the ``Policy Statement on Adequacy and Compatibility of 
Agreement State Programs'' approved by the Commission on June 30, 1997, 
and published in the Federal Register (62 FR 46517; September 3, 1997), 
this direct final rule will be a matter of compatibility between the 
NRC and the Agreement States, thereby providing consistency among the 
Agreement States and the NRC requirements. The NRC staff and Agreement 
State representation analyzed the rule in accordance with the procedure 
established within Part III, ``Categorization Process for NRC Program 
Elements,'' of Handbook 5.9 to Management Directive 5.9, ``Adequacy and 
Compatibility of Agreement State Programs'' (a copy of which may be 
viewed at https://www.nrc.gov/reading-rm/doc-collections/management-directives/).
    The NRC program elements (including regulations) are placed into 
four compatibility categories (see the Compatibility Table in this 
section). In addition, the NRC program elements can also be identified 
as having particular health and safety significance or as being 
reserved solely to the NRC. Compatibility Category A consists of 
program elements that are basic radiation protection standards and 
scientific terms and definitions that are necessary to understand 
radiation protection concepts. An Agreement State should adopt Category 
A program elements in an essentially identical manner to provide 
uniformity in the regulation of agreement material on a nationwide 
basis. Compatibility Category B consists of program elements that apply 
to activities that have direct and significant effects in multiple 
jurisdictions. An Agreement State should adopt Category B program 
elements in an essentially identical manner. Compatibility Category C 
consists of program elements that do not meet the criteria of Category 
A or B, but the essential objectives of which an Agreement State should 
adopt to avoid conflict, duplication, gaps, or other conditions that 
would jeopardize an orderly pattern in the regulation of agreement 
material on a nationwide basis. An Agreement State should adopt the 
essential objectives of the Category C program elements. Compatibility 
Category D consists of program elements that do not meet any of the 
criteria of Category A, B, or C, and, therefore, do not need to be 
adopted by Agreement States for purposes of compatibility.
    Health and Safety (H&S) are program elements that are not required 
for compatibility but are identified as having a particular health and 
safety role (i.e., adequacy) in the regulation of agreement material 
within the State. Although not required for compatibility, the State 
should adopt program elements in this H&S category based on those of 
the NRC that embody the essential objectives of the NRC program 
elements because of particular health and safety considerations. 
Compatibility Category NRC consists of program elements that address 
areas of regulation that cannot be relinquished to Agreement States 
under the Atomic Energy Act of 1954, as amended, or provisions of 10 
CFR. These program elements are not adopted by Agreement States. The 
following table lists the parts and sections that will be revised and 
their corresponding categorization under the ``Policy Statement on 
Adequacy and Compatibility of Agreement State Programs.''

                                    Compatibility Table for Direct Final Rule
----------------------------------------------------------------------------------------------------------------
                                                                                         Compatibility
             Section                    Change               Subject         -----------------------------------
                                                                                  Existing             New
----------------------------------------------------------------------------------------------------------------
                                                 10 CFR Part 30
----------------------------------------------------------------------------------------------------------------
30.4.............................  Remove.........  Definition of             NRC.............
                                                     ``quantities of
                                                     concern.''.
30.32(k).........................  Remove.........  Application for specific  NRC.............
                                                     licenses.
30.34(l).........................  Remove.........  Terms and conditions of   NRC.............
                                                     licenses.
----------------------------------------------------------------------------------------------------------------
                                                 10 CFR Part 37
----------------------------------------------------------------------------------------------------------------
37.29(a)(10).....................  Amend..........  Relief from               B...............  B
                                                     fingerprinting,
                                                     identification, and
                                                     criminal history
                                                     records checks and
                                                     other elements of
                                                     background
                                                     investigations for
                                                     designated categories
                                                     of individuals
                                                     permitted unescorted
                                                     access to certain
                                                     radioactive materials.
37.43(d)(1)......................  Amend..........  Remove reference to Sec.  NRC.............
                                                       37.43(d)(9)..
37.43(d)(9)......................  Remove.........  General security program  NRC.............
                                                     requirements.
37.77(f).........................  Revise.........  Advance notification of   NRC.............  C
                                                     shipment of category 1
                                                     quantities of
                                                     radioactive material.
----------------------------------------------------------------------------------------------------------------
                                                 10 CFR Part 73
----------------------------------------------------------------------------------------------------------------
73.2.............................  Remove.........  Definition of             NRC.............
                                                     ``quantities of
                                                     concern.''.
73.21............................  Amend..........  Protection of safeguards  NRC.............  NRC
                                                     information:
                                                     performance
                                                     requirements.
73.23............................  Amend..........  Protection of safeguards  NRC.............  NRC
                                                     information-modified
                                                     handling: specific
                                                     requirements.
Appendix I.......................  Remove.........  Category 1 and category   NRC.............
                                                     2 radioactive materials.
----------------------------------------------------------------------------------------------------------------
                                                 10 CFR Part 150
----------------------------------------------------------------------------------------------------------------
150.15(a)(9).....................  Remove.........  Persons not exempt......  NRC.............
----------------------------------------------------------------------------------------------------------------


[[Page 58670]]

VI. Plain Writing

    The Plain Writing Act of 2010 (Pub. L. 111-274) requires Federal 
agencies to write documents in a clear, concise, and well-organized 
manner. The NRC has written this document to be consistent with the 
Plain Writing Act as well as the Presidential Memorandum, ``Plain 
Language in Government Writing,'' published June 10, 1998 (63 FR 
31883).

VII. Voluntary Consensus Standards

    The National Technology Transfer and Advancement Act of 1995 (Pub. 
L. 104-113), requires that Federal agencies use technical standards 
that are developed or adopted by voluntary consensus standards bodies 
unless the use of such a standard is inconsistent with applicable law 
or otherwise impractical. In this direct final rule, the NRC will 
revise the categories of licensees subject to the provision of 10 CFR 
part 73 for the protection of SGI-M by removing panoramic and 
underwater irradiator licensees that possess more than 370 TBq (10,000 
Ci) of radioactive material, M&D licensees, licensees that transport 
category 1 quantities of radioactive material, and licensees that 
transport irradiated reactor fuel that weighs 100 grams or less in net 
weight of irradiated fuel from the listing. This action does not 
constitute the establishment of a standard that establishes generally 
applicable requirements.

VIII. Finding of No Significant Environmental Impact: Availability

    The Commission has determined under the National Environmental 
Policy Act of 1969, as amended, and the Commission's regulations in 
subpart A of 10 CFR part 51, that this rule is not a major Federal 
action significantly affecting the quality of the human environment and 
therefore an environmental impact statement is not required. The rule 
changes the information protection requirements for 112 licensees. The 
rule will affect neither radiological or nonradiological releases nor 
occupational or public exposure. The NRC has determined that there is 
no significant environmental impact associated with the rulemaking 
action
    The environmental assessment (ADAMS Accession No. ML13046A330) is 
available for inspection at the NRC's PDR, 11555 Rockville Pike, 
Rockville, Maryland 20852.

IX. Paperwork Reduction Act Statement

    This direct final rule decreases the burden on record-keepers to 
mark documents containing Safeguards Information designated as SGI-M as 
specified in 10 CFR 73.23 (b), (d), and (f). The burden reduction for 
this information collection is estimated to average 5.5 hours per 
record-keeper. Further information about information collection 
requirements associated with this direct final rule can be found in the 
companion proposed rule published elsewhere in this issue of the 
Federal Register.
    This direct final rule is being issued prior to approval by the 
Office of Management and Budget (OMB) of these information collection 
requirements, which were submitted under OMB control number 3150-0002. 
When OMB notifies us of its decision, we will publish a document in the 
Federal Register providing notice of the effective date of the 
information collections or, if approval is denied, providing notice of 
what action we plan to take.
    Send comments on any aspect of these information collections, 
including suggestions for reducing the burden, to the Information 
Services Branch, Mail Stop T-5 F53, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001, or by email to Infocollects.Resource@NRC.gov 
and to the Desk Officer, Danielle Jones, Office of Information and 
Regulatory Affairs, NEOB-10202 (3150-0002), Office of Management and 
Budget, Washington, DC 20503.
Public Protection Notification
    The NRC may not conduct or sponsor, and a person is not required to 
respond to, a request for information or an information collection 
request unless the requesting document displays a currently valid OMB 
control number.

X. Regulatory Analysis

    The Commission has prepared a regulatory analysis (ADAMS Accession 
No. ML13046A332) for this direct final rule. The regulatory analysis 
examines the costs and benefits of the alternatives considered by the 
Commission. The rule will reduce the burden on affected licensees as 
they will no longer be required to protect security-related information 
as SGI-M. The analysis is available for inspection in the NRC's PDR, 
11555 Rockville Pike, Rockville, Maryland 20852.

XI. Regulatory Flexibility Certification

    In accordance with the Regulatory Flexibility Act of 1980 (5 U.S.C. 
605(b)), the Commission certifies that this rule does not have a 
significant economic impact on a substantial number of small entities. 
The direct final rule will impact 112 licensees, 27 are licensed by the 
NRC and 85 are licensed by Agreement States. These licensees include 
large irradiators, M&Ds, any licensee that ships category 1 quantities 
of radioactive material, and any licensee that transports irradiated 
reactor fuel that weighs 100 grams or less in net weight of irradiated 
fuel. Most of the companies that own these facilities do not fall 
within the scope of the definition of ``small entities'' set forth in 
the Regulatory Flexibility Act or the size standards established by the 
NRC (10 CFR 2.810). However, some of the licensees may. The rule will 
reduce the burden on affected licensees as they will no longer be 
required to protect security-related information as SGI-M.

XII. Backfitting and Issue Finality

    The NRC has determined that the backfit rules (Sec. Sec.  50.109, 
70.76, 72.62, or 76.76) and the issue finality provisions in 10 CFR 
part 52 do not apply to this direct final rule because this amendment 
does not involve any provisions that will either impose backfits as 
defined in 10 CFR chapter I, or represent non-compliance with the issue 
finality of provisions in 10 CFR part 52. Therefore, a backfit analysis 
is not required for this direct final rule, and the NRC did not prepare 
a backfit analysis for this direct final rule.

XIII. Congressional Review Act

    In accordance with the Congressional Review Act of 1996, the NRC 
has determined that this action is not a major rule and has verified 
this determination with the Office of Information and Regulatory 
Affairs of OMB.

List of Subjects

10 CFR Part 30

    Byproduct material, Criminal penalties, Government contracts, 
Intergovernmental relations, Isotopes, Nuclear materials, Radiation 
protection, Reporting and recordkeeping requirements.

10 CFR Part 37

    Byproduct material, Criminal penalties, Export, Hazardous materials 
transportation, Import, Licensed material, Nuclear materials, Reporting 
and recordkeeping requirements, Security measures.

10 CFR Part 73

    Criminal penalties, Export, Hazardous materials transportation, 
Import, Nuclear materials, Nuclear power plants and reactors, Reporting 
and recordkeeping requirements, Security measures.

[[Page 58671]]

10 CFR Part 150

    Criminal penalties, Hazardous materials transportation, 
Intergovernmental relations, Nuclear materials, Reporting and 
recordkeeping requirements, Security measures, Source material, Special 
nuclear material.

    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended; the Energy Reorganization 
Act of 1974, as amended; and 5 U.S.C. 552 and 553, the NRC is adopting 
the following amendments to 10 CFR parts 30, 37, 73, and 150.

PART 30--RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF 
BYPRODUCT MATERIAL

0
1. The authority citation for part 30 continues to read as follows:

    Authority: Atomic Energy Act secs. 81, 82, 161, 181, 182, 183, 
186, 223, 234 (42 U.S.C. 2111, 2112, 2201, 2231, 2232, 2233, 2236, 
2273, 2282); Energy Reorganization Act secs. 201, 202, 206 (42 
U.S.C. 5841, 5842, 5846); Government Paperwork Elimination Act sec. 
1704 (44 U.S.C. 3504 note); Energy Policy Act of 2005, Pub. L. 109-
58, 119 Stat. 549 (2005).

    Section 30.7 also issued under Energy Reorganization Act sec. 
211, Pub. L. 95-601, sec. 10, as amended by Pub. L. 102-486, sec. 
2902 (42 U.S.C. 5851). Section 30.34(b) also issued under Atomic 
Energy Act sec. 184 (42 U.S.C. 2234). Section 30.61 also issued 
under Atomic Energy Act sec. 187 (42 U.S.C. 2237).


Sec.  30.4  [Amended]

0
2. In Sec.  30.4, remove the definition for ``Quantities of concern.''


Sec.  30.32  [Amended]

0
3. In Sec.  30.32, remove paragraph (k).


Sec.  30.34  [Amended]

0
4. In Sec.  30.34, remove paragraph (l).

PART 37--PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 
QUANTITIES OF RADIOACTIVE MATERIAL

0
5. The authority citation for part 37 continues to read as follows:

    Authority: Atomic Energy Act secs. 53, 81, 103, 104, 147, 148, 
149, 161, 182, 183, 223, 234 (42 U.S.C. 2073, 2111, 2133, 2134, 
2167, 2168, 2169, 2201a., 2232, 2233, 2273, 2282).


0
6. In Sec.  37.29, revise paragraph (a)(10) to read as follows:


Sec.  37.29  Relief from fingerprinting, identification, and criminal 
history records checks and other elements of background investigations 
for designated categories of individuals permitted unescorted access to 
certain radioactive materials.

    (a) * * *
    (10) Commercial vehicle drivers for road shipments of category 1 
and category 2 quantities of radioactive material;
* * * * *

0
7. In Sec.  37.43, revise paragraph (d)(1) and remove paragraph (d)(9) 
to read as follows:


Sec.  37.43  General security program requirements.

* * * * *
    (d) Protection of information. (1) Licensees authorized to possess 
category 1 or category 2 quantities of radioactive material shall limit 
access to and unauthorized disclosure of their security plan, 
implementing procedures, and the list of individuals that have been 
approved for unescorted access.
* * * * *

0
8. In Sec.  37.77, revise paragraph (f) to read as follows:


Sec.  37.77  Advance notification of shipment of category 1 quantities 
of radioactive material.

* * * * *
    (f) Protection of information. State officials, State employees, 
and other individuals, whether or not licensees of the Commission or an 
Agreement State, who receive schedule information of the kind specified 
in Sec.  37.77(b) shall protect that information against unauthorized 
disclosure as specified in Sec.  37.43(d) of this part.

PART 73--PHYSICAL PROTECTION OF PLANTS AND MATERIALS

0
9. The authority citation for part 73 continues to read as follows:

    Authority: Atomic Energy Act secs. 53, 147, 161, 223, 234, 1701 
(42 U.S.C. 2073, 2167, 2169, 2201, 2273, 2282, 2297(f), 2210(e)); 
Energy Reorganization Act sec. 201, 204 (42 U.S.C. 5841, 5844); 
Government Paperwork Elimination Act sec. 1704, 112 Stat. 2750 (44 
U.S.C. 3504 note); Energy Policy Act of 2005, Pub. L. 109-58, 119 
Stat. 594 (2005).

    Section 73.1 also issued under Nuclear Waste Policy Act secs. 
135, 141 (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).


Sec.  73.2  [Amended]

0
10. In Sec.  73.2, remove the definition for ``Quantities of concern.''

0
11. In Sec.  73.21, revise paragraph (a)(1)(ii) to read as follows:


Sec.  73.21  Protection of Safeguards Information: Performance 
Requirements.

    (a) * * *
    (1) * * *
    (ii) Establish, implement, and maintain an information protection 
system that includes the applicable measures for Safeguards Information 
specified in Sec.  73.23 related to: Research and test reactors that 
possess special nuclear material of moderate strategic significance or 
special nuclear material of low strategic significance.
* * * * *

0
12. In Sec.  73.23, revise the introductory text of the section and the 
introductory text of paragraph (a)(2) to read as follows:


Sec.  73.23  Protection of Safeguards Information-Modified Handling: 
Specific Requirements.

    This section contains specific requirements for the protection of 
Safeguards Information in the hands of any person subject to the 
requirements of Sec.  73.21(a)(1)(ii) and research and test reactors 
that possess special nuclear material of moderate strategic 
significance or special nuclear material of low strategic significance. 
The requirements of this section distinguish Safeguards Information 
requiring modified handling requirements (SGI-M) from the specific 
Safeguards Information handling requirements applicable to facilities 
and materials needing a higher level of protection, as set forth in 
Sec.  73.22.
    (a) * * *
    (2) Physical protection in transit. Information not classified as 
Restricted Data or National Security Information related to the 
physical protection of shipments of special nuclear material in less 
than a formula quantity (except for those materials covered under Sec.  
73.22), including:
* * * * *

Appendix I to Part 73--[Removed]

0
13. Remove Appendix I to part 73.

PART 150--EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN 
AGREEMENT STATES AND IN OFFSHORE WATERS UNDER SECTION 274

0
14. The authority citation for part 150 continues to read as follows:

    Authority: Atomic Energy Act secs. 161, 181, 223, 234 (42 U.S.C. 
2201, 2021, 2231, 2273, 2282); Energy Reorganization Act sec. 201 
(42 U.S.C. 5841); Government Paperwork Elimination Act sec. 1704 (44 
U.S.C. 3504

[[Page 58672]]

note); Energy Policy Act of 2005, Pub. L. 109-58, 119 Stat. 594 
(2005).

    Sections 150.3, 150.15, 150.15a, 150.31, 150.32 also issued 
under Atomic Energy Act secs. 11e(2), 81, 83, 84 (42 U.S.C. 
2014e(2), 2111, 2113, 2114).
    Section 150.14 also issued under Atomic Energy Act sec. 53 (42 
U.S.C. 2073).
    Section 150.15 also issued under Nuclear Waste Policy Act secs. 
135 (42 U.S.C. 10155, 10161).
    Section 150.17a also issued under Atomic Energy Act sec. 122 (42 
U.S.C. 2152).
    Section 150.30 also issued under Atomic Energy Act sec. 234 (42 
U.S.C. 2282).


Sec.  150.15  [Amended]

0
15. In Sec.  150.15, remove paragraph (a)(9).

    Dated at Rockville, Maryland, this 23rd day of September, 2014.

    For the Nuclear Regulatory Commission.
Annette L. Vietti-Cook,
Secretary of the Commission.
[FR Doc. 2014-23256 Filed 9-29-14; 8:45 am]
BILLING CODE 7590-01-P