99-8315. Issuance of Directors Decision Under 10 CFR 2.206  

  • [Federal Register Volume 64, Number 64 (Monday, April 5, 1999)]
    [Notices]
    [Pages 16504-16508]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-8315]
    
    
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    NUCLEAR REGULATORY COMMISSION
    
    
    Issuance of Directors Decision Under 10 CFR 2.206
    
        Notice is hereby given that by petition dated October 15, 1998, the 
    Natural Resources Defense Council (NRDC) has requested that the U.S. 
    Nuclear Regulatory Commission (NRC) exert authority to ensure that the 
    U.S. Army Corps of Engineers' (the Corps) handling of radioactive 
    materials in connection with the Formerly Utilized Sites Remedial 
    Action Program (FUSRAP) is effected in accord with properly issued 
    license and all other applicable requirements. As NRDC notes in its 
    petition, FUSRAP began in 1974 as a program of the U.S. Department of 
    Energy (DOE), and that DOE had identified a total of 46 sites for 
    cleanup under FUSRAP. By 1997, cleanup of 25 of these sites had been 
    completed. There are currently 21 sites still in need of remediation. 
    In October 1997, Congress transferred funding for FUSRAP from DOE to 
    the Corps. NRDC believes that the Corps should obtain an NRC license to 
    conduct activities under FUSRAP. At this time, the NRC has not required 
    the Corps to obtain a license.
        The request has been referred to the Director of the Office of 
    Nuclear Material Safety and Safeguards. A copy of the petition was sent 
    to DOE and the Corps, and DOE and the Corps were given the opportunity 
    to comment.
        By letter dated November 30, 1998, NRC acknowledged receipt of the 
    October 15, 1998, Petition.
        The Director, Office of Nuclear Materials Safety and Safeguards, 
    has determined that the request should be denied for the reasons stated 
    in the ``Director's Decision Under 10 CFR 2.206'' (DD-99-07), the 
    complete text of which follows this notice and which is available for 
    public inspection in the Commission's Public Document Room, the Gelman 
    Building, located at 2120 L Street, N.W, Washington D.C. 20555, and is 
    also available on the NRC Electronic Bulletin Board at (800) 952-9676.
        A copy of this Decision has been filed with the Secretary of the 
    Commission for the Commission's review in accordance with 10 CFR 
    2.206(c) of the Commission's regulations. As provided by this 
    regulation, this Decision will constitute the final action of the 
    Commission 25 days after the date of issuance unless the Commission, on 
    its own motion, institutes review of the Decision within that time.
    
        Dated at Rockville, Maryland, this 26 day of March 1999.
    
        For the Nuclear Regulatory Commission.
    Carl J. Paperiello,
    Director, Office of Nuclear Material Safety and Safeguards.
    
    Director's Decision Under 10 CFR Sec. 2.206
    
    I. Introduction
    
        On October 15, 1998, Thomas B. Cochran, Ph.D., Director, Nuclear 
    Program, Natural Resources Defense Council (NRDC) and James Sottile, 
    IV, Caplin & Drysdale, Chartered, filed a petition on behalf of NRDC 
    (the ``petitioner'') addressed to L. Joseph Callan, Executive Director 
    for Operations, U.S. Nuclear Regulatory Commission (NRC). The petition 
    requests that NRC exert authority to ensure that the Corps of 
    Engineers' handling of radioactive materials in connection with the 
    Formerly Utilized Sites Remedial Action Program (FUSRAP) is effected in 
    accord with a properly issued license and all other applicable 
    requirements.
    
    II. Background
    
        During the 1940s, 1950s, and 1960s, the Manhattan Engineer District 
    and the Atomic Energy Commission performed work at a number of sites 
    throughout the United States as part of the nation's early atomic 
    energy program. Although many of the sites were cleaned up under 
    guidelines in effect at the time, residual contamination remains at 
    many of the sites today. The contaminants at these sites involved 
    primarily low levels of uranium, thorium, and radium, with their 
    associated decay products. The U.S. Department of Energy (DOE) began 
    FUSRAP in 1974 to study these sites and take appropriate cleanup 
    action. By 1997, DOE had identified 46 sites in the program and had 
    completed remediation at 25 sites with some ongoing operation, 
    maintenance, and monitoring being undertaken by DOE. Remedial action 
    was planned, underway, or pending final closeout at the remaining 21 
    sites.
        On October 13, 1997, Congress passed the 1998 Energy and Water 
    Development Appropriations Act,1 which transferred 
    administration of FUSRAP to the U.S. Army Corps of
    
    [[Page 16505]]
    
    Engineers (the Corps or USACE) and appropriated $140,000,000 to the 
    Corps for the completion of FUSRAP activities. The language in the law 
    reads as follows:
    
        \1\ Energy and Water Development Appropriations Act, 1998, Pub. 
    L. No. 105-62, 111 Stat. 1326 (1997)
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        For the expenses necessary to administer and execute the 
    Formerly Utilized Sites Remedial Action Program to clean up 
    contaminated sites throughout the United States where work was 
    performed as part of the nation's early atomic energy program, 
    $140,000,000, to remain available until expended: Provided, that the 
    unexpended balances of prior appropriations provided for these 
    activities in this Act or any previous Energy and Water Development 
    Appropriations Act may be transferred to and merged with this 
    appropriation account, and thereafter, may be accounted for as one 
    fund for the same time period as originally enacted.2
    
        \2\ Id.
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        The legislative history behind this provision offers little 
    guidance regarding the details of the Corps' new involvement. The 
    Conference Committee report states that ``(t)he conferees have agreed 
    to transfer the Formerly Utilized Sites Remedial Action Program 
    (FUSRAP) to the Corps of Engineers, and funding for this program is 
    contained in Title I of the bill.'' 3 The House 
    Appropriations Committee report indicates that this change stems from 
    concerns over the cost of the FUSRAP program under DOE. The Committee 
    report concludes that ``(c)learly, the problem must be in the contract 
    management and contract administration function performed by the 
    Department of Energy and the management and operating contractors who 
    actually subcontract for most of the cleanup work.'' 4 
    Finally, citing the Corps' efforts under the Formerly Used Defense 
    Sites (FUDS) program, the report indicates that there are significant 
    cost and schedule efficiencies to be gained by ``. . . having the Corps 
    of Engineers manage the Department of Energy's FUSRAP program as 
    well.'' 5
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        \3\ H.R. Conf. Rep. No. 271, 105th Cong., 1st Sess., 85 (1997).
        \4\ H.R. Rep. No. 190, 105th Sess., 99 (1997).
        \5\ Id.
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        Given the lack of guidance in the legislative history, two members 
    of Congress sought to clarify the law's intent through subsequent 
    correspondence. In a November 6, 1997, letter to Energy Secretary 
    Federico Pena and Defense Secretary William Cohen, Senator Pete 
    Domenici and Representative Joseph McDade indicated, among other 
    things, that:
    
        Transfer of the FUSRAP program to the U.S. Army Corps of 
    Engineers makes management, oversight, programming and budgeting, 
    technical investigations, designs, administration, and other such 
    activities directly associated with the execution of remediation 
    work at the currently eligible sites a responsibility of the Corps 
    of Engineers. It should be emphasized that basic underlying 
    authorities for the program remain unaltered and the responsibility 
    of DOE [emphasis added].
    
    The Energy and Water Development Appropriations Act for fiscal year 
    1999 (FY99), P.L. 105-245, continued the Corps' involvement as the 
    implementing agency for the FUSRAP. In particular, the 1999 Act 
    provided that response actions by the United States Army Corps of 
    Engineers under FUSRAP shall be subject to the administrative, 
    procedural, and regulatory provisions of the Comprehensive 
    Environmental Response, Compensation and Liability Act (CERCLA) (42 
    U.S.C. 9601 et seq.), and the National Oil and Hazardous Substances 
    Pollution Contingency Plan, 40 CFR, Chapter 1, Part 300. In addition, 
    the 1999 Act provided that, ``* * * except as stated herein, these 
    provisions do not alter, curtail or limit the authorities, functions or 
    responsibilities of other agencies under the Atomic Energy Act (42 
    U.S.C. 2011 et seq.) * * *'' 6
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        \6\ Pub. L. No. 105-245, Title I.
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        To date, NRC has not regulated activities conducted under FUSRAP, 
    including those activities conducted by the Corps since the transfer of 
    the program. The petitioner, however, believes that NRC should regulate 
    the Corps' FUSRAP activities, arguing that the Appropriations Act did 
    not purport to transfer authority over FUSRAP to the Corps. As such, 
    according to the petitioner, the Corps may not legally administer the 
    program absent proper oversight because, unlike DOE and (in most cases) 
    DOE contractors, the Corps is not exempt from the licensing 
    requirements of the Atomic Energy Act (see 42 U.S.C. 2014(s)). The 
    petitioner further indicates that DOE has publicly stated that it 
    cannot extend its licensing exemption for private contractors to the 
    Corps and that DOE has no regulatory authority over the Corps for the 
    latter's FUSRAP activities. The petitioner concludes that ``* * * the 
    Corps does not have the legal authority to run FUSRAP without first 
    obtaining a license from the NRC.''
        In support of its position, the petitioner notes that the 
    institutional mission of the Corps is not focused on the safety and 
    security of the nation's nuclear activities. In addition, NRC's failure 
    to regulate the Corps' FUSRAP activities is claimed to be inconsistent 
    with the intent of the laws governing the utilization and cleanup of 
    nuclear materials. Finally, the petitioner adds that, with very few 
    exceptions, Congress intended that no person should be permitted to 
    handle nuclear materials except in accordance with a license issued by 
    NRC.
        In a November 30, 1998, letter NRC informed the petitioner that the 
    petition had been received and was currently under review. On the same 
    date, NRC forwarded the petition to the DOE and the Corps for their 
    comment. In a January 12, 1999, letter, the Chief Counsel for the 
    Corps, Robert M. Andersen, responded to NRC's request. DOE responded to 
    NRC's request in a January 14, 1999, letter from William J. Dennison, 
    Assistant General Counsel for Environment.
    
    The Corps' Response
    
        In its response, the Corps states that it is not required to obtain 
    a license from NRC for its FUSRAP activities. The Corps' response 
    emphasizes that Congress directed the Corps to conduct its FUSRAP 
    activities pursuant to the CERCLA.7 The Corps' principal 
    argument is that no NRC license is required because of the federal 
    permit waiver for on-site removal or remedial actions in Sec. 121(e)(1) 
    of CERCLA. The Corps also believes that the AEA exempts FUSRAP activity 
    from NRC licensing. In its opinion, ``Congress intended for USACE to 
    fill the shoes of the AEC successor agency responsible for FUSRAP 
    cleanup, that is DOE, an agency not considered a ``person'' subject to 
    licensing under the AEA.'' The Corps further posits that, in 
    transferring the FUSRAP program, Congress expressed no intent that the 
    agency obtain an NRC license for that activity and, instead, sought a 
    seamless transition ``unimpeded by procedural requirements outside of 
    CERCLA.''
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        \7\ 42 USC 9601 et seq.
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        Nevertheless, the Corps commits to meeting the substantive 
    requirements of both the Atomic Energy Act (AEA) and CERCLA. It 
    acknowledges that NRC license requirements may apply to portions of 
    FUSRAP response actions conducted off-site, beyond the scope of the 
    permit waiver. The letter concludes by acknowledging that the 
    substantive provisions of NRC regulations are applicable or relevant 
    and appropriate requirements (ARARs) for many FUSRAP response actions 
    under CERCLA and, as such, the Corps will look ``... to NRC for 
    guidance in interpreting and implementing these requirements on the 
    sites.''
    
    DOE's Response
    
        DOE's response differs in several respects from that of the Corps. 
    On the
    
    [[Page 16506]]
    
    matter of DOE's continued involvement with FUSRAP and oversight of the 
    Corps, the Department ``respectfully disagrees'' with the Corps. 
    According to its submittal, DOE is not authorized to regulate the 
    Corps' FUSRAP activities and cannot transfer its AEA authorities to the 
    Corps. In the Department's view, ``(t)he transfer legislation did not 
    make the Corps a DOE contractor, or otherwise subject the Corps' 
    activities to the control or direction of DOE.'' The letter also 
    indicates that DOE and the Corps are currently developing a memorandum 
    of understanding (MOU) to clarify their respective roles and 
    responsibilities as a result of the legislative transfer. Nevertheless, 
    DOE believes that, with the exception of a few ``administrative 
    issues,'' there are no remaining issues between the two agencies that 
    should affect NRC's disposition of the NRDC petition. The letter 
    concludes that NRC should ``evaluate the licensability of the Corps' 
    activities in the same manner as it would evaluate the activities of 
    any other `person' within the meaning of the Atomic Energy Act.'' DOE 
    defers to NRC on this question. The letter does not contain a DOE 
    position concerning the viability of the Corps' CERCLA argument.
    
    III. Discussion
    
        The NRC staff has completed its evaluation of the petitioner's 
    requests and the responses from the Corps of Engineers and the 
    Department of Energy. For the reasons discussed below, the NRC denies 
    the petitioner's request insofar as it calls on NRC to require the 
    Corps to obtain a license for activities conducted at FUSRAP sites.
    
    CERCLA Permit Waiver
    
        Pursuant to Sec. 121(e)(1) of CERCLA, ``(n)o Federal, State, or 
    local permit shall be required for the portion of any removal or 
    remedial action conducted entirely onsite, where such remedial action 
    is selected and carried out in compliance with this section.'' 
    8 This provision waives any NRC license requirements that 
    would apply to the Corps' activities at FUSRAP sites conducted pursuant 
    to CERCLA.
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        \8\ See also, 10 CFR 300.400(e).
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        The Corps argues that, because Congress specifically subjected 
    FUSRAP sites to the provisions of CERCLA in the 1999 Act, section 
    121(e)(1) applies to Corps' response actions at FUSRAP sites. In 
    developing regulations for the implementation of CERCLA, the 
    Environmental Protection Agency (EPA) addressed the Sec. 121(e)(1) 
    waiver provision for federal agency CERCLA response actions in 
    Sec. 300.400(e) of the National Contingency Plan (NCP). That provision 
    states, in pertinent part:
    
        ``Permit requirements. (1) No federal, state, or local permits 
    are required for on-site response actions conducted pursuant to 
    CERCLA sections 104, 106, 120, 121, or 122. The term on-site means 
    the areal extent of contamination and all suitable areas in very 
    close proximity to the contamination necessary for implementation of 
    response actions.'' 9
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        \9\ 40 CFR 300.400(e)(1).
    
        In the preamble of the final rule which proposed this section, EPA 
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    provided:
    
        Proposed Sec. 300.400(e)(1) states that the permit waiver 
    applies to all on-site actions conducted pursuant to CERCLA sections 
    104, 106, or 122; in effect, this covers all CERCLA removal and 
    remedial actions (all ``response'' actions). However, a number of 
    other federal agencies have inquired as to whether this language 
    would reach response actions conducted pursuant to CERCLA sections 
    121 and 120. In response, EPA has made a non substantive 
    clarification of the applicability of the permit waiver in CERCLA 
    section 121(e)(1) to include on-site response actions conducted 
    pursuant to CERCLA sections 120 and 121. . . . The addition of 
    CERCLA section 120 simply recognizes that the permit waiver applies 
    to federal facility cleanups conducted pursuant to CERCLA section 
    120(e), which are also selected and carried out in compliance with 
    CERCLA section 121.10
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        \10\ 55 FR 8666, 8689 (1990) (``National Oil and Hazardous 
    Substances Pollution Contingency Plan; Final Rule) (emphasis added). 
    This change echoed EPA's intentions stated in the proposed rule: 
    ``EPA proposes to state that on-site permits are not required for 
    response actions taken by EPA, other federal agencies, States, or 
    private parties pursuant to CERCLA sections 104, 106, or 122.'' 53 
    Fed. Reg. 51394, 51406 (1988) (``National Oil and Hazardous 
    Substances Pollution Contingency Plan; Proposed Rule) (emphasis 
    added).
    
        Section 121(e)(1) applies to federal agencies such as the Corps in 
    this case. The Corps may take the role of ``lead agency'' in a CERCLA 
    cleanup action. The NCP defines ``lead agency'' as ``the agency that 
    provides the OSC/RPM to plan and implement response actions under the 
    NCP. EPA, the USCG, another federal agency, or a state * * * may be the 
    lead agency for a response action.'' 11 The NCP also states 
    that ``Federal agencies listed in Sec. 300.175 have duties established 
    by statute, executive order, or Presidential directive which may apply 
    to federal response actions following, or in prevention of, the 
    discharge of oil or release of a hazardous substance, pollutant, or 
    contaminant.'' 12 The Corps, a branch of the U.S. Department 
    of Defense, is among the agencies listed.13 In the case of 
    the FUSRAP program, Congress specifically designated the Corps as the 
    ``lead agency'' in passing the 1999 Appropriations Act.14
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        \11\ 40 CFR 300.5 (emphasis added). The definition goes on to 
    state, ``The federal agency maintains its lead agency 
    responsibilities whether the remedy is selected by the federal 
    agency for non-NPL sites or by EPA and the federal agency or by EPA 
    alone under CERCLA section 120.''
        \12\ 40 CFR 300.170.
        \13\ See 40 CFR 300.175(b)(4)(i).
        \14\ Pub. L. No. 105-245, Title I.
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        As the Corps acknowledges in its letter, the permit waiver in 
    Sec. 121(e)(1) has been rarely addressed in the courts. In support of 
    its position, the Corps does cite McClellan Ecological Seepage 
    Situation (MESS) v. Cheney, a case which held that a Resource 
    Conservation and Recovery Act (RCRA) permit was not required when 
    activities which might otherwise require a RCRA permit took place at a 
    site only as part of a CERCLA removal or remedial action.15 
    In McClellan, MESS, a citizens' group, filed suit against the Secretary 
    of Defense, with regard to cleanup actions being taken at McClellan Air 
    Force Base, under RCRA and certain state laws. MESS claimed, inter 
    alia, that McClellan was required to obtain a RCRA permit for the 
    management of certain hazardous wastes on the base. The court held that 
    an RCRA permit was not required, because the remedial activities were 
    taken pursuant to CERCLA. The court relied on Sec. 121(e)(1), stating, 
    ``Section 121(e) expressly provides that the activity does not have to 
    be separately permitted.'' 16
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        \15\ 763 F. Supp. 431 (E.D. Cal. 1989). This holding was later 
    vacated on the basis of subject matter jurisdiction. See McClellan 
    Ecological Seepage Situation (MESS) v. Perry, 47 F.3d 325 (9th Cir. 
    1995).
        \16\ 763 F. Supp. 431, at 435. The court went on to note in 
    dicta that where there has been treatment that requires a RCRA 
    permit which is not associated with a remedial or removal action 
    under CERCLA, such a permit would be required. Id.
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        The Corps also cites United States v. City of Denver to uphold this 
    interpretation of Sec. 121(e)(1).17 In that case, the court 
    held that CERCLA preempted a zoning ordinance which was in actual 
    conflict with EPA's remedial order. The court stated, ``[T]o hold that 
    Congress intended that non-uniform and potentially conflicting zoning 
    laws could override CERCLA remedies would fly in the face of Congress's 
    [sic] goal of effecting prompt cleanups of the literally thousands of 
    hazardous waste sites across the country.'' 18
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        \17\ 100 F.3d 1509 (10th Cir. 1996).
        \18\ Id. at 1513. The Corps cited Ohio v. USEPA, 997 F.2d 1520 
    (D.C. Cir. 1993) in support of its Sec. 121(e)(1) position. NRC 
    would note that the case upholds a number of provisions in EPA's 
    1990 revision of the NCP, including Sec. 121(e)(1). However, the 
    court's discussion centers on EPA's definition of the term 
    ``onsite,'' and does not discuss the exemption provision, as a 
    whole, in detail.
    
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    [[Page 16507]]
    
        In passing the 1998 and 1999 Appropriations Acts, Congress gave no 
    indication that it intended to suspend the waiver provision in 
    Sec. 121(e)(1) of CERCLA in the context of the Corps' FUSRAP 
    activities. The 1999 Act does say: ``Provided further, That, except as 
    stated herein, these provisions do not alter, curtail or limit the 
    authorities, functions or responsibilities of other agencies under the 
    Atomic Energy Act (42 U.S.C. 2011 et seq.) * * * '' In its letter, DOE 
    points to this language to support its argument that the Appropriations 
    Act does not create any authority for it to regulate the Corps. In 
    doing so, DOE interprets the term ``provisions'' as referring to the 
    provisions of the Appropriations Act and not the provisions of CERCLA. 
    The NRC staff agrees with DOE on this point. While the language appears 
    to indicate that the transfer of the program to the Corps does not 
    alter the extent of DOE and perhaps NRC authority under the AEA, there 
    is no specific indication that the language is intended to direct NRC 
    to regulate the Corps' administration of the FUSRAP program. In 
    particular, there is no evidence that in including this phrase, 
    Congress intended to limit the application of the Sec. 121(e)(1) permit 
    waiver to the Corps' FUSRAP activities. In fact, nowhere in the reports 
    for either the 1998 or 1999 Acts or in the text of the laws themselves 
    did Congress give any hint that it intended NRC to regulate the Corps 
    in its administration of the FUSRAP program. Instead, the inclusion of 
    the specific reference to CERCLA suggests that Congress intended NRC to 
    continue to refrain from regulating activities under the FUSRAP program 
    even after DOE's role was reduced or discontinued.
        As DOE states in its letter, the Corps has ``consistently expressed 
    the view that its authorities under the Comprehensive Environmental 
    Response, Compensation and Liability Act (CERCLA) * * * '' are 
    sufficient for the Corps' administration of the FUSRAP program. By the 
    time the 1999 Appropriations Act was passed, the Corps' administration 
    of the FUSRAP program under CERCLA was a matter of public record 
    19 and NRC had not taken any steps to require the Corps to 
    obtain a license from NRC. If Congress had intended NRC to regulate the 
    Corps' activities at FUSRAP sites, it is likely that it would have 
    specifically directed NRC to do so in passing the 1999 Appropriations 
    Act.
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        \19\ See, e.g., Letter from Albert J. Genetti, Jr., U.S. Army 
    Deputy Commander, U.S. Army Corps of Engineers, to Mr. Thomas B. 
    Cochran and Ms. Barbara A. Finamore, Natural Resources Defense 
    Council, May 20, 1998.
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        We note, however, that the waiver in Sec. 121(e)(1) does not apply 
    to off-site activities. To the extent that NRC and U.S. Department of 
    Transportation (DOT) requirements apply to the transportation, transfer 
    and disposal of Atomic Energy Act material taken off of FUSRAP sites, 
    the Corps has committed to following applicable requirements, including 
    those for transfer under the AEA, shipment under the Hazardous 
    Materials Transportation Act, 49 U.S.C. 5101, and NRC manifest 
    requirements (e.g., 10 CFR Sec. 20.2006).20
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        \20\ While the Corps will be following NRC's requirements in 
    this area, it is unlikely that any specific NRC license requirements 
    would apply to shipments from FUSRAP sites. However, the staff will 
    request that the Corps contact NRC if it plans to ship material that 
    does not meet one of the exemptions for a specific license in NRC 
    regulations. See, e.g., 10 C.F.R. Sec. 71.10.
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    NRC Authority Under UMTRCA
    
        Many FUSRAP sites contain material over which NRC would have no 
    regulatory jurisdiction regardless of whether the Corps is the lead 
    agency in implementing the program and regardless of whether response 
    actions by the Corps under the program are subject to CERCLA. In 
    particular, of the 21 sites at which remediation has not yet been 
    completed, 12 sites contain residual material resulting from activities 
    that were not licensed by NRC at the time the Uranium Mill Tailings Act 
    of 1978 (UMTRCA) became effective or at any time thereafter. As defined 
    by the UMTRCA, NRC does not have authority to regulate cleanup of 
    covered residual material resulting from an activity that was not so 
    licensed.
        The language of section 83 of the Atomic Energy Act (42 U.S.C. 
    2113(a)), was added to that Act by UMTRCA. Section 83 a. requires NRC 
    to impose certain terms and conditions relating to cleanup with respect 
    to any ``license issued or renewed after the effective date'' of 
    section 83 for covered activities, and also imposes such terms or 
    conditions on any such ``license in effect on the date of enactment'' 
    of the section. No such responsibility was imposed upon NRC with 
    respect to activities that were not under NRC license before the date 
    of the enactment of section 83, if they were not licensed thereafter.
        Prior to the enactment of UMTRCA, neither the AEC nor the NRC had 
    statutory jurisdiction over residual material resulting from the 
    processing of ore for source material. This position was taken by the 
    AEC after careful legal analysis, and was subsequently adopted by the 
    NRC when it succeeded to the AEC's regulatory functions. Though NRC 
    exercised some control over such material in connection with licensed 
    processing of ore for source material, it did not exercise jurisdiction 
    at inactive sites where no license was in effect. UMTRCA was enacted 
    because the Congress recognized that NRC did not have jurisdiction over 
    radioactive residuals resulting from the extraction of uranium or 
    thorium from ore processed for its source material content at inactive 
    sites. This is evidenced by the floor remarks regarding the amended 
    version of H.R. 13650, the bill that was enacted as UMTRCA. Senator 
    Hart explained:
    
        Although the NRC licenses active uranium mining and milling 
    activities, existing law does not permit the Commission to regulate 
    the disposal of mill tailings once milling and mining operations 
    cease and the operating license expires. It is that authority to 
    regulate tailings after milling operations cease, that we propose be 
    given to the NRC.21
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        \21\ 124 Cong. Rec. S18,748 (October 13, 1978).
    
    Because the residual material at many FUSRAP sites was generated in 
    activities that were not licensed when UMTRCA was enacted, or 
    thereafter, NRC today has no basis to assert any regulatory authority 
    over handling of the residuals at those sites.
        The NRC staff notes that many of the remaining sites (i.e., sites 
    containing materials other than mill tailings) also raise some 
    significant jurisdictional questions in their own right. For instance, 
    a few of the sites may still be in legal possession of DOE even though 
    the Corps is conducting clean up at the site under FUSRAP. While the 
    issue of possession appears to be a matter of continuing discussion 
    between the Corps and DOE, it is highly unlikely that NRC would have 
    authority to require a license for cleanup activities conducted at a 
    site which continues to be a DOE-owned or controlled site. In addition, 
    the concentration of radioactive material at some of the remaining 
    sites may not be sufficient to trigger NRC license requirements. While 
    NRC does not have information sufficient to reach a final conclusion 
    for specific sites, it is the NRC staff's understanding that some of 
    these sites may contain only ``unimportant quantities'' of source 
    material as defined under 10 CFR Sec. 40.13(a). If this is the case, 
    the amount of material at these sites would not be sufficient to 
    implicate NRC license requirements. Given the limitations of NRC 
    jurisdiction under UMTRCA, the potential DOE ownership issues, and the 
    possibility that several sites may
    
    [[Page 16508]]
    
    contain ``unimportant quantities'' of source material, it is likely 
    that the number of FUSRAP sites over which NRC may have jurisdiction 
    would be very small even absent the CERCLA permit waiver.
    
    The Corps' Authority Under the Appropriations Act
    
        In its response, the Corps states that the AEA also exempts FUSRAP 
    activity from NRC licensing because Congress intended the Corps to fill 
    the shoes of DOE, an agency exempt from NRC regulatory requirements 
    under most circumstances. DOE disagrees with this characterization, 
    claiming that, for the most part, it has no role in the FUSRAP program 
    at this time (regulatory, contractual, or otherwise). As such, in DOE's 
    view, the Corps cannot rely on any exemption in the AEA to avoid 
    regulation by NRC. Nevertheless, DOE acknowledges that the transfer to 
    the Corps did not completely eliminate the Department's involvement 
    with FUSRAP. While the issues have yet to be resolved, DOE may have 
    responsibility for inventory reporting of government-owned FUSRAP sites 
    to the General Services Administration and may be required to conduct 
    post-cleanup monitoring at some sites after the Corps' clean up 
    activities cease.
        DOE and the Corps are working on an MOU to address their 
    disagreements regarding the nature of the transfer of the FUSRAP 
    program and their respective responsibilities under the program. Until 
    the disagreement has been resolved, either by the agencies or by 
    further direction from Congress, the NRC staff need not reach a 
    conclusion on the matter. Nevertheless, in view of the clear 
    applicability of CERCLA Sec. 121(e)(1) to the Corps' activity at FUSRAP 
    sites, the staff does not believe that it would be appropriate to 
    require the Corps to obtain an NRC license for its activity at FUSRAP 
    sites.
    
    IV. Conclusion
    
        In sum, Congress has given NRC no clear directive to oversee 
    USACE's ongoing effort under CERCLA to complete the FUSRAP cleanup 
    project. Indeed, Congress has provided NRC no money and no personnel to 
    undertake an oversight role. In addition, Congress has made it clear 
    that the Corps is to undertake FUSRAP cleanup pursuant to CERCLA which 
    waives permit requirements for onsite activities. In these 
    circumstances, we are disinclined to read our statutory authority 
    expansively, and to commit scarce NRC resources, to establish and 
    maintain a regulatory program in an area where, under Congressional 
    direction, a sister federal agency already is at work and has committed 
    itself to following appropriate safety and environmental standards.
        Accordingly, I deny the petition insofar as it requests NRC to 
    impose licensing and other regulatory requirements on the Corps for 
    that agency's handling of radioactive material at FUSRAP sites. Both 
    the permit waiver provision of CERCLA and the ambiguity regarding DOE's 
    role in the program lead me to the conclusion that NRC should not 
    inject itself into the FUSRAP program at this time. Absent specific 
    direction from Congress to the contrary, NRC will continue to refrain 
    from regulating the Corps in its clean up activities at FUSRAP sites.
        As provided by 10 C.F.R. Sec. 2.206, a copy of this Decision will 
    be filed with the Secretary of the Commission for the Commission's 
    review. The Decision will become the final action of the Commission 25 
    days after issuance, unless the Commission, on its own motion, 
    institutes review of the Decision within that time.
    
        Dated at Rockville, Maryland this 26th day of March 1999.
    
        For the Nuclear Regulatory Commission.
    Carl J. Paperiello,
    Director, Office of Nuclear Material Safety and Safeguards.
    [FR Doc. 99-8315 Filed 4-2-99; 8:45 am]
    BILLING CODE 7590-01-P
    
    
    

Document Information

Published:
04/05/1999
Department:
Nuclear Regulatory Commission
Entry Type:
Notice
Document Number:
99-8315
Pages:
16504-16508 (5 pages)
PDF File:
99-8315.pdf