[Federal Register Volume 62, Number 52 (Tuesday, March 18, 1997)]
[Notices]
[Pages 12861-12864]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6759]
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NUCLEAR REGULATORY COMMISSION
[Docket 70-3091]
Notice of Availability of Memorandum of Understanding Between the
Nuclear Regulatory Commission and the Department of Energy Concerning
the Cooperation and Support for Demonstration Phase (Phase I) of DOE
Hanford Tank Waste Remediation System Privatization Activities
SUMMARY: On January 29, 1997, the Nuclear Regulatory Commission (NRC)
and the Department of Energy (DOE) signed a Memorandum of Understanding
(MOU) to provide a basis for cooperation and support during the
demonstration phase (Phase I) of the DOE Hanford Tank Waste Remediation
System (TWRS) Privatization Activities. The MOU establishes a
cooperative process to support DOE in developing a regulatory program
consistent with the NRC's regulatory approach.
FOR FURTHER INFORMATION CONTACT: Amy L. Bryce, Special Projects Branch,
Division of Fuel Cycle Safety and Safeguards, Office of Nuclear
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission,
Washington, DC 20555, (301) 415-5848.
SUPPLEMENTARY INFORMATION:
Memorandum of Understanding Between the Nuclear Regulatory Commission
and the Department of Energy
Cooperation and Support for Demonstration Phase (Phase I) of DOE
Hanford Tank Waste Remediation System Privatization Activities
I. Purpose
The purpose of this Memorandum of Understanding (MOU) between the
Nuclear Regulatory Commission (NRC) and the Department of Energy (DOE)
is to establish the basis for cooperation and mutual support during the
demonstration phase (defined as Phase I) of DOE's Tank Waste
Remediation System (TWRS) Privatization activities. An objective of
this DOE/NRC interaction is the development and execution of a
comprehensive regulatory program by DOE that is consistent with NRC's
regulatory approach for protecting workers, the general public, and the
environment. DOE's regulatory program is to be structured to facilitate
the possible transition of regulatory responsibilities from DOE to NRC
at the start of the full-scale operations phase (defined as Phase II).
During Phase I, DOE is responsible for implementing the TWRS
Privatization regulatory program. This MOU provides for cooperation and
mutual support in an integrated effort that provides for:
1. DOE to acquire capability to implement a program of nuclear
safety and safeguards regulation consistent with NRC's regulatory
approach.
2. NRC to acquire sufficient knowledge and understanding of the
physical and operational situation at the Hanford waste tanks and the
processes, technology and hazards involved in Phase I activities, to
enable NRC (a) to assist DOE in performing reviews in a manner
consistent with NRC's regulatory approach and (b) to be prepared to
develop an effective and efficient regulatory program for the licensing
of DOE contractor-owned and contractor-operated facilities that will
process waste at Hanford during Phase II.
II. Introduction
A. Background
During 1991, the Department of Energy (DOE) established the TWRS
Program at the Hanford Site to manage, retrieve, treat, immobilize, and
dispose of certain radioactive waste in a safe, environmentally-sound,
and cost-effective manner. The requirements and commitments for the
TWRS cleanup activities are documented in the Hanford Federal
Facilities Agreement and Consent Order, also known as the Tri-Party
Agreement (TPA). Under the TPA, DOE, the U.S. Environmental Protection
Agency (EPA), and the Washington State Department of Ecology have
agreed to a timetable for cleanup of the Hanford Site.
DOE, through the TWRS Program, is making a fundamental change in
its contracting approach at Hanford, utilizing privately-owned
facilities on the Hanford Site for processing waste which contains
special nuclear material. This change in contracting approach also
necessitates a fundamental change in DOE's approach to regulation and
oversight.
To accomplish the TWRS requirements, DOE plans to privatize
treatment operations for the Hanford tank wastes. The TWRS
Privatization is divided into two phases, a demonstration phase
(defined as Phase I) and a full-scale operations phase (defined as
Phase II). During both phases, DOE will purchase waste treatment
services from a DOE contractor-owned, contractor-operated facility
under a fixed-price type of contract; DOE will provide the feedstock to
be processed. The DOE TWRS Privatization Contractor must finance the
project; design the equipment and facility; apply for and receive
required permits and licenses; construct the facility and bring it on
line; operate the
[[Page 12862]]
facility to treat waste; and deactivate the facility.
DOE will undertake nuclear safety and safeguards regulatory
responsibility associated with the TWRS Privatization activities during
Phase I. The EPA and the State of Washington have responsibility to
regulate environmental issues and the Occupational Safety and Health
Administration has responsibility to regulate occupational safety.
NRC's participation during Phase I will primarily be of a cooperative
nature for the purposes of information transfer and assisting DOE in
the establishment of a regulatory program that is consistent with NRC's
regulatory approach for protecting workers, the general public, and the
environment.
This MOU describes the relationship between NRC and DOE for
activities conducted during Phase I only. The relationship between NRC,
DOE, and the DOE TWRS Privatization Contractors during Phase II remains
to be clarified by legislation and/or regulatory requirements.
B. Phase Descriptions
Phase I
Phase I is a proof-of-concept/commercial demonstration-scale
effort. The objectives of Phase I are to: (a) demonstrate the technical
and business viability of using privatized facilities to treat Hanford
tank waste;(b) define and maintain required levels of safety and
safeguards; (c) maintain environmental protection and compliance; and
(d) substantially reduce life-cycle costs and time required to treat
Hanford tank waste.
Phase II
Phase II will be the full-scale production phase, in which the
facilities are to be configured so that all the remaining tank waste
can be processed. The objectives of Phase II are to (a) implement the
lessons learned from Phase I, and (b) process all tank waste into forms
suitable for final disposal. The current DOE proposal is to have NRC
assume full regulatory responsibility (consistent with the manner in
which NRC regulates its licensees) for Phase II, although certain
operational, statutory, and regulatory issues must be clarified before
the proposed Phase II regulation by NRC can be implemented. Current
estimates are that DOE procurement documents and NRC regulatory
requirements for Phase II would be needed by the year 2004.
This MOU does not apply to Phase II activities.
III. Authority
A. Department of Energy
Sections 31, 91 and 161 of the Atomic Energy Act of 1954, as
amended; Section 104 of the Energy Reorganization Act of 1974; and,
Section 301 of the DOE Organization Act authorize DOE to provide for
the safe storage, processing, transportation and disposal of hazardous
waste, including radioactive waste, resulting from nuclear materials
production and weapons production. In addition, with regard to
activities under DOE's jurisdiction, Section 161.i.(3) of the Atomic
Energy Act of 1954, as amended, permits DOE to prescribe such
regulations or orders as it may deem necessary to govern DOE activities
authorized by the Atomic Energy Act of 1954, as amended, including
standards and restrictions governing the design, location, and
operation of facilities used in the conduct of such activity, in order
to protect health and to minimize danger to life or property.
B. Nuclear Regulatory Commission
Sections 53, 57, 62, 63, 81, 103, 104, and 161b, of the Atomic
Energy Act of 1954, as amended, and Section 201(f) of the Energy
Reorganization Act of 1974 authorize NRC to license and establish by
rule, regulation, or order, standards and instructions to govern the
possession and use of special nuclear material, source material, or
byproduct material to protect health or to minimize danger to life or
property, or to promote the common defense and security. This agreement
is entered into pursuant to these and other applicable authorities,
including the Economy Act of 1932, as amended.
IV. Foundation Understandings
1. This MOU applies to Phase I only.
2. DOE will regulate the DOE TWRS Privatization Contractors during
Phase I under the terms and conditions agreed upon by DOE and the DOE
TWRS Privatization Contractors, and will be responsible for the
regulatory oversight of all design, construction, operational, and
event-response activities. NRC will have no regulatory authority over
the DOE TWRS Privatization Contractors during Phase I.
3. No regulatory action, process, or practice established by DOE
during Phase I will be binding on NRC during any possible NRC
regulatory oversight of DOE TWRS Privatization Contractors during Phase
II.
4. NRC's regulatory approach is based (a) on reviewing the
applicant's systematic and integrated identification of potential
accidents and interactions resulting from radiological and related
process chemical and fire hazards, and (b) on ensuring adequate
protection against those hazards which could impact on the safety of
the worker, the general public and the protection of the environment.
V. Agreements Between Parties
A. Responsibilities
Department of Energy
The Manager, Richland Operations Office, will be responsible for
implementing the terms of this agreement. The TWRS Regulatory Official,
who reports to the Manager, Richland Operations Office, will be the DOE
point of contact for all communications relating to carrying out the
provisions of this agreement.
Nuclear Regulatory Commission
The Director of Nuclear Materials Safety and Safeguards (NMSS) will
be responsible for implementing the terms of this agreement. The Chief
of the responsible Branch within NMSS will be the NRC point of contact
for all communications related to carrying out the provisions of this
agreement.
B. General Provisions
1. At the foundation of the DOE privatization approach is a
predictability and reliability feature embedded in DOE's contracts with
the TWRS Privatization Contractors `` namely contractual commitments
for DOE regulatory actions within specific time periods. Essential to
timely and orderly DOE regulatory actions is the awareness by NRC of
these contractual commitments and the need for timely interaction
between DOE and NRC at all levels.
2. If an issue arises in the implementation of this MOU which
cannot be resolved at the agency point-of-contact level, the NRC and
DOE agree to refer the matter within 30 days to the Director, NMSS, and
the Manager, Richland Operations Office, for appropriate action.
3. It is the intent of both parties to conduct the TWRS Regulatory
Program in an open, public, and professional manner. NRC and DOE
recognize the importance of providing timely and accurate information
to the public regarding regulatory matters that may affect the
protection of workers, the general public, and the environment.
Meetings between NRC and DOE staff in connection with this MOU will be
governed by NRC policy on open meetings (59 FR48340; September 20,
1994). NRC will participate with DOE in public meetings and other
public
[[Page 12863]]
interactions, as appropriate. All transmittals between DOE and NRC
regarding TWRS Privatization activities will be made publicly
available, consistent with NRC and DOE policies and requirements, at an
established local public document room.
4. Each agency recognizes that it is responsible for the
protection, control, and accounting of classified, proprietary, and
procurement-sensitive information; Safeguards Information (SGI); and
Unclassified Controlled Nuclear Information (UCNI).
5. Each agency will be responsible for processing, under its
established program(s), allegations--declarations or statements or
assertions of impropriety or inadequacy whose validity has not been
established-- associated with the regulated TWRS Privatization
activities covered by this Memorandum of Understanding. Each agency
will keep the other agency informed, as appropriate, of such
allegations, the allegations'' status, and the allegations''
resolution. Each agency will assure that allegations are promptly
referred to the agency or entity that has jurisdiction over the
allegation.
6. In support of the DOE TWRS Privatization activities, DOE will
provide private office space and equipment, if needed, for NRC in the
vicinity of the TWRS Regulatory Unit in the Richland, Washington area.
DOE will provide the NRC with ready access to current TWRS regulatory
information; access to key individuals in the Regulatory Unit for
consistency discussions; access to TWRS general information, tank farm
status and operational issues, and safety perspectives; and access to
Hanford Site safety perspectives.
C. Regulatory Interaction Activities
1. Site Familiarization
NRC will need to acquire knowledge of the physical and operational
situation for the Hanford waste tanks and of the processes,
technologies, and hazards involved in processing the tank wastes. The
following activities will be performed to provide this familiarization:
a. NRC will visit the Hanford Site, as necessary, to examine the
conditions of the tank farms as they may relate to TWRS Privatization.
As part of NRC's orientation, DOE will provide NRC information on:
The physical conditions and operational requirements
necessary for safe storage, retrieval, transfer, and processing of the
tank waste,
Evaluations of the criticality potential for TWRS Privatization
activities,
Radiation levels of the waste and chemical forms of the
waste,
Contamination levels in the areas of the planned TWRS
Privatization facilities and tanks,
Hydrogen generation/flammable gas situation of tanks,
Organic complexant/nitrate oxidizer situation of tanks,
Other possible hazards associated with the waste,
Available or planned waste movement systems, and
The Resource Conservation and Recovery Act (RCRA),
Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA), and Atomic Energy Act of 1954 for the TWRS.
b. DOE will provide NRC access to the tank farms, tank farm records
and documentation, and other information concerning operational
conditions and events that NRC may desire in order to understand the
TWRS Privatization project and associated hazards, processes, and
conditions.
c. Upon request by NRC, DOE will brief or hold discussions with NRC
on issues related to the TWRS Privatization effort. The locations,
timing, and content of these meetings will be agreed upon by the points
of contact for each agency.
d. NRC may occasionally conduct reviews and special audits or
inspections at DOE's request to provide objective perspective on
selected regulatory issues.
2. Regulatory Familiarization
To assist the DOE in establishing the capability to regulate
consistent with NRC concepts and principles, the NRC will provide
detailed briefings, guidance documents, and support in developing
important administrative and technical program elements of a regulatory
program. NRC will provide DOE access to regulatory training provided by
NRC to its staff on a space available basis and, with specific
agreement, will provide DOE opportunity to observe NRC's regulatory
activities.
3. Development of DOE TWRS Regulatory Program
DOE guidance specific to the regulation of DOE TWRS Privatization
Contractors will be prepared and issued by DOE. The guidance is for use
by the DOE's TWRS Regulatory Unit in its execution of the regulatory
reviews and resulting regulatory actions and is provided as information
to the DOE TWRS Privatization Contractors for their preparation of
regulatory submittals. The guidance will cover those submittals
required of the Contractors by DOE such as the Quality Assurance (QA)
program, essential set of safety standards and requirements (including
the site-specific design basis), integrated safety management plan,
safety assessment, construction authorization request, operating
authorization request, operational reports and assessments, and
deactivation authorization. DOE will be responsible for issuing this
guidance in its final form.
The following activities will be performed by NRC and DOE to
develop the guidance:
a. NRC will provide DOE with established and evolving NRC guidance
and position documents as input for DOE to consider in the development
and updating of its guidance for the DOE regulatory review. NRC will
assist DOE in developing a DOE inspection program that will be applied
during design, fabrication, construction (e.g. acceptable codes and
standards for concrete, electrical, welding, etc.), installation, and
qualification testing.
b. DOE will develop guidance for the review of Contractor
submittals and DOE reviews of TWRS Privatization activities. NRC will
review and provide a basis for its comments on DOE's draft guidance to
identify areas that may not be consistent with NRC's regulatory
approach.
c. NRC will participate, as appropriate, with DOE in the joint
development of guidance, based on industry standards, e.g., ANS/ANSI,
for issuance by DOE as guidance for the DOE TWRS Privatization Program.
4. Regulatory Program Implementation
Specific DOE regulatory activities are planned: these include
design basis review, QA program evaluation, standards approval, initial
safety evaluation, construction authorization and inspection, operating
authorization oversight, and deactivation authorization. These actions
will begin in FY 1997 and continue throughout Phase I. The following
activities will be performed by DOE and NRC in fulfillment of their
respective responsibilities under this MOU:
a. DOE will be responsible for safety (e.g. design basis) and
safeguards reviews and determining acceptability of DOE TWRS
Privatization Contractors' submittals against the DOE TWRS guidance.
DOE will have final decision authority for regulatory implementation
during Phase I and for all interactions with the DOE TWRS Privatization
Contractors.
b. NRC will review and provide a basis for its comments on DOE TWRS
Privatization Contractors' submittals to identify any areas that are
not consistent
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with NRC's regulatory approach. These submittals will include all
documents which address the technical and quality basis for the TWRS
facilities and which could affect nuclear and process safety and
safeguards in design, construction and operation.
NRC will assist DOE in evaluating submittals and in verifying
effective implementation of:
Design--design basis, design verification, level of design
detail and documentation, design specifications, calculations and
drawings, and procurement specifications,
Quality assurance--for design, procurement, construction,
pre-operational testing and operation,
Operator training and qualification,
Human factors,
Emergency response.
VI. Other Provisions
1. Nothing in this MOU will limit the authority of either agency to
independently exercise its authority with regard to matters that are
the subject of this MOU.
2. Nothing in this MOU will be deemed to establish any right nor
provide a basis for any action, either legal or equitable, by any
person or class of persons challenging a government action or a failure
to act.
3. This MOU will be effective upon signature and upon satisfaction
of conditions in Section VI.4 and will remain in effect until the end
of Phase I. This agreement may also be terminated by mutual agreement
or by written notice of either party submitted six months in advance of
termination. Amendments or modifications to this agreement may be made
upon written agreement of the parties.
4. This MOU will become effective, and remain in effect during such
time periods when Congress authorizes, and provides appropriate funding
(or when there is another acceptable form of reimbursement) for NRC's
participation in this project.
5. Activities within the scope of this MOU and within the scope of
appropriated resources are mutually agreed to be without reimbursement
of cost for either organization. Special activities such as described
in Sections V.C.1.d and V.C.2 may be negotiated for cost reimbursement
as needed.
John Wagoner, Manager, Richland Operations Office, Department of Energy
Carl Paperiello, Director, Office of Nuclear Materials Safety and
Safeguards, U.S. Nuclear Regulatory Commission
This Memorandum of Understanding was signed by the Manager of the
Department of Energy's Richland Operations Office on January 15, 1997
and the Director of the Office of Nuclear Materials Safety and
Safeguards, U. S. Nuclear Rgulatory Commission on January 29, 1997.
Dated at Rockvile, Maryland, this 7th day of March 1997.
For the Nuclear Regulatory Commission.
Robert C. Pierson,
Chief, Special Projects Branch, Division of Fuel Cycle Safety and
Safeguards, NMSS.
[FR Doc. 97-6759 Filed 3-17-97; 8:45 am]
BILLING CODE 7590-01-P