83_FR_19690 83 FR 19603 - Modified Small Quantities Protocol

83 FR 19603 - Modified Small Quantities Protocol

NUCLEAR REGULATORY COMMISSION

Federal Register Volume 83, Issue 87 (May 4, 2018)

Page Range19603-19614
FR Document2018-09462

The U.S. Nuclear Regulatory Commission (NRC) is amending its regulations to collect information on nuclear material possessed by entities in the U.S. Caribbean Territories, as well as to allow for International Atomic Energy Agency (IAEA) inspection access, if requested by the IAEA. This final rule implements the requirements of ``The Agreement between the United States of America and the IAEA for the application of safeguards in connection with the Treaty for the Prohibition of Nuclear Weapons in Latin America'' (INFCIRC/366 or U.S.- IAEA Caribbean Territories Safeguards Agreement), that apply to the United States (U.S.) based on modifications to this Agreement's small quantities protocol.

Federal Register, Volume 83 Issue 87 (Friday, May 4, 2018)
[Federal Register Volume 83, Number 87 (Friday, May 4, 2018)]
[Rules and Regulations]
[Pages 19603-19614]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09462]



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Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and 
Regulations

[[Page 19603]]



NUCLEAR REGULATORY COMMISSION

10 CFR Part 75

[NRC-2015-0263]
RIN 3150-AJ70


Modified Small Quantities Protocol

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

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

SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is amending its 
regulations to collect information on nuclear material possessed by 
entities in the U.S. Caribbean Territories, as well as to allow for 
International Atomic Energy Agency (IAEA) inspection access, if 
requested by the IAEA. This final rule implements the requirements of 
``The Agreement between the United States of America and the IAEA for 
the application of safeguards in connection with the Treaty for the 
Prohibition of Nuclear Weapons in Latin America'' (INFCIRC/366 or U.S.-
IAEA Caribbean Territories Safeguards Agreement), that apply to the 
United States (U.S.) based on modifications to this Agreement's small 
quantities protocol.

DATES: Effective date: This final rule is effective June 4, 2018. 
Compliance date: Compliance with this final rule is required by July 3, 
2018.

ADDRESSES: Please refer to Docket ID NRC-2015-0263 when contacting the 
NRC about the availability of information for this action. You may 
obtain publicly-available information related to this action by any of 
the following methods:
     Federal Rulemaking Website: Go to http://www.regulations.gov and search for Docket ID NRC-2015-0263. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: Carol.Gallagher@nrc.gov. For technical questions, contact 
the individual listed in the FOR FURTHER INFORMATION CONTACT section of 
this document.
     NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly-available documents online in the 
ADAMS Public Documents collection at http://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: Gregory R. Trussell, Office of Nuclear 
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001; telephone: 301-415-6445; email: 
Gregory.Trussell@nrc.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Agreement between the U.S. and the IAEA for the application of 
safeguards in connection with the Treaty for the Prohibition of Nuclear 
Weapons in Latin America (U.S.-IAEA Caribbean Territories Safeguards 
Agreement (ADAMS Accession No. ML17065A218)) entered into force on 
April 6, 1989. When the U.S.-IAEA Caribbean Territories Safeguards 
Agreement was signed, the U.S. and the IAEA also concluded a ``Small 
Quantities Protocol'' (SQP) to the agreement that held in abeyance 
almost all reporting and access requirements. The SQPs are designed for 
countries with minimal or no nuclear material and activities to 
minimize the burden of international safeguards implementation. The 
IAEA, as a part of its efforts to strengthen international safeguards 
in 2005, identified proliferation concerns associated with holding 
certain provisions of the U.S.-IAEA Caribbean Territories Safeguards 
Agreement in abeyance through an SQP, and has since urged countries 
with an original SQP, including the U.S., to adopt a ``modified SQP'' 
that would have the effect of taking out of abeyance certain reporting 
and inspection requirements of the U.S.-IAEA Caribbean Territories 
Safeguards Agreement. The U.S. and the IAEA have agreed on the text for 
a modified SQP, which will be brought into force upon an exchange of 
diplomatic letters between the U.S. and the IAEA.
    When the U.S.-IAEA Caribbean Territories Safeguards Agreement and 
its SQP was brought into force in 1989, no revisions were made to part 
75 of title 10 of the Code of Federal Regulations (10 CFR), 
``Safeguards on Nuclear Material--Implementation of U.S.-IAEA 
Agreement,'' as most of the provisions were held in abeyance by the 
original SQP. In light of the modified SQP, which takes certain 
reporting and inspection provisions of the U.S.-IAEA Caribbean 
Territories Safeguards Agreement out of abeyance, the scope and 
requirements of 10 CFR part 75 need to be revised to include these 
reporting and inspection requirements. The applicable requirements of 
the U.S.-IAEA Caribbean Territories Safeguards Agreement, as captured 
in the amendments to 10 CFR part 75, impact all entities that possess 
source material and special nuclear material within the U.S. Caribbean 
Territories.

II. Discussion

A. General Overview

    The scope and requirements of 10 CFR part 75 need to be expanded to 
include the provisions of the U.S.-IAEA Caribbean Territories 
Safeguards Agreement under the modified SQP. The applicable 
requirements of the U.S.-IAEA Caribbean Territories Safeguards 
Agreement, as captured in the amendments to 10 CFR part 75, impact all 
entities that possess source material and special nuclear material 
within the U.S. Caribbean Territories, which are defined in the amended 
10 CFR part 75 as: Puerto Rico, the U.S. Virgin Islands, Navassa 
Island, Serranilla Bank, Baja Nuevo (Petrel Island), and the Guantanamo 
Bay Naval Base.
    This final rule requires affected entities to:
     Provide basic information about the user (e.g., user's 
name and address), including organizational structure,

[[Page 19604]]

geographic location, use of the nuclear material, and other relevant 
information requested pursuant to the safeguards agreement.
     Provide an initial inventory report of all source and 
special nuclear material possessed, and an annual inventory report 
thereafter. This reporting requirement will also include source 
material that is contained in non-nuclear end use applications (e.g., 
depleted uranium shielding).
     Provide annual Material Status Reports for nuclear 
materials covered by the applicable provisions of the U.S.-IAEA 
Caribbean Territories Safeguards Agreement.Provide an inventory change 
report when possessors import or export nuclear material (including 
shipments between U.S. Territories as well as to and from the 50 
States) and provide advance notification, as specified in Sec. Sec.  
75.43, 75.44, and 75.45, of such an import or export exceeding one 
effective kilogram, as defined in Sec.  75.4.
     Provide access for IAEA inspections. These inspections are 
expected to occur on an infrequent basis. The scope of IAEA inspections 
may include several activities, such as examination of records; 
verifying the functioning and calibration of instruments; and utilizing 
IAEA equipment for independent measurement, containment (such as a 
seal), and/or surveillance.
    The regulations in 10 CFR part 75 already contain requirements for 
the existing IAEA safeguards agreements to which the U.S. is a party, 
i.e., the U.S.-IAEA Safeguards Agreement (INFCIRC/288) (ADAMS Accession 
No. ML17065A211) and its associated Additional Protocol. The revised 
regulations will clearly delineate which entities are subject to the 
requirements under each particular safeguards agreement. It should be 
noted that those entities subject to the provisions of the U.S.-IAEA 
Caribbean Territories Safeguards Agreement are not subject to the 
provisions of the U.S.-IAEA Safeguards Agreement and its associated 
Additional Protocol as defined in Sec.  75.4.

B. IAEA Inspections

    Possessors of source and special nuclear material in the U.S. 
Caribbean Territories will be subject to special and ad hoc inspections 
by the IAEA pursuant to the modified SQP. Articles 69, 71, 72, 73, 74, 
and 87 of U.S.-IAEA Caribbean Territories Safeguards Agreement that 
pertain to IAEA inspections were previously held in abeyance. Through 
the modification of the SQP, these Articles will be newly applicable to 
possessors of ``nuclear material outside facilities,'' as that term is 
defined in revised Sec.  75.4, which means ``nuclear material in the 
U.S. Caribbean Territories that is not in a facility, and is 
customarily used in amounts of one effective kilogram or less.'' In 
order to accommodate these new requirements, the NRC is revising 
existing sections of 10 CFR part 75 that pertain to IAEA inspections. 
Under existing regulations, IAEA inspections were only applicable to 
``facilities,'' under the U.S.-IAEA Safeguards Agreement. However, 
through the inclusion of the U.S.-IAEA Caribbean Territories Safeguards 
Agreement in the scope of 10 CFR part 75, the NRC is expanding the 
applicability of inspection-related sections to include possessors of 
nuclear material outside facilities.

C. Records and Reports

    Possessors of nuclear material outside facilities in the U.S. 
Caribbean Territories will be subject to new recordkeeping and 
reporting requirements pursuant to the modified SQP. Articles 7, 12, 
32, 47, 60, 66, 67, and 93 of the U.S.-IAEA Caribbean Territories 
Safeguards Agreement were either held in abeyance or not applicable; 
however, through the modification of the SQP, these Articles will now 
be applicable to possessors of nuclear material outside facilities. In 
order to accommodate these new requirements, the NRC revised existing 
sections of 10 CFR part 75 that pertain to records and reports. Under 
existing regulations, recordkeeping and reporting requirements were 
only applicable to ``facilities'' and ``locations'' (as defined in 
Sec.  75.4). However, through the inclusion of the U.S.-IAEA Caribbean 
Territories Safeguards Agreement in the scope of 10 CFR part 75, the 
NRC is expanding the applicability of recordkeeping and reporting-
related sections to include possessors of nuclear material outside 
facilities.

D. Terminations and Exemptions

    The U.S. Government may request termination and exemption from IAEA 
safeguards for declared source or special nuclear material under 
Articles 11, 13, 33, 34, 35, and 36 of the U.S.-IAEA Caribbean 
Territories Safeguards Agreement. Previously, the U.S. Government had 
not utilized the termination and exemption provisions under the U.S.-
IAEA Safeguards Agreement, therefore these provisions were not in the 
existing regulations in 10 CFR part 75. Due to the anticipated material 
types, quantities, and uses of nuclear material in the U.S. Caribbean 
Territories, as well as the fact that this safeguards agreement mimics 
a comprehensive safeguards agreement for a non-nuclear weapon state, 
the U.S. Government anticipates utilizing the exemption and termination 
provisions under the U.S.-IAEA Caribbean Territories Safeguards 
Agreement. As such, this final rule incorporates termination and 
exemption provisions into 10 CFR part 75.

E. New Definitions

    Given the addition of the U.S.-IAEA Caribbean Territories 
Safeguards Agreement to the scope of 10 CFR part 75, it is necessary to 
specifically define and reference each individual safeguards agreement 
(i.e., ``U.S.-IAEA Safeguards Agreement'' and ``U.S.-IAEA Caribbean 
Territories Safeguards Agreement''). This change is implemented 
throughout 10 CFR part 75 to ensure consistency in the use of 
terminology, and to distinguish between the requirements of each 
safeguards agreement. Furthermore, the new term ``physical location'' 
is added to 10 CFR part 75 to clarify the difference between geographic 
coordinates and the Additional Protocol term of art ``location.'' The 
term ``nuclear material outside of facilities'' was added as a new and 
distinct term that refers specifically to special nuclear and source 
material in the U.S. Caribbean Territories. This new term was necessary 
in order to distinguish the requirements of the U.S.-IAEA Caribbean 
Territories Safeguards Agreement from the requirements in the other 
safeguards agreements that utilize the terms of art ``facilities'' and 
``locations.'' The term ``U.S. Caribbean Territories'' was added to 
refer to the territories covered by the U.S.-IAEA Caribbean Territories 
Safeguards Agreement.

F. General Administrative Matters

    To enhance the clarity and consistency of the regulations, several 
new definitions are added, and other definitions are revised or 
removed. Additionally, this final rule incorporates conforming changes, 
punctuation, and grammatical edits. In several sections, a website link 
is added to reference existing NRC guidance documents to replace the 
requirement for the public to submit a written request for a copy of 
the guidance documents.

III. Rulemaking Procedure

    Under the Administrative Procedure Act (5 U.S.C. 553(a)(1)), the 
normal notice and comment requirements do not apply if the rulemaking 
involves a military or foreign affairs function of the U.S. Since this 
final rule involves a

[[Page 19605]]

foreign affairs function of the U.S., the notice and comment provisions 
of the Administrative Procedure Act do not apply (5 U.S.C. 553(a)(1)). 
This final rule will become effective 30 days after its publication in 
the Federal Register. The amendments are effective June 4, 2018.

IV. Section-by-Section Analysis

PART 75--SAFEGUARDS ON NUCLEAR MATERIAL--IMPLEMENTATION OF US/IAEA 
AGREEMENT

    This final rule revises the 10 CFR part 75 title to read: 
SAFEGUARDS ON NUCLEAR MATERIAL--IMPLEMENTATION OF SAFEGUARDS AGREEMENTS 
BETWEEN THE UNITED STATES AND THE INTERNATIONAL ATOMIC ENERGY AGENCY.

Sec.  75.1 Purpose.

    This final rule revises Sec.  75.1 to include all requirements 
under any safeguards agreement between the U.S. and the IAEA.
    The purpose section is revised to make it generally applicable to 
all U.S.-IAEA safeguards agreements utilizing a new term ``safeguards 
agreements.'' ``Safeguards agreements'' includes the U.S.-IAEA 
Caribbean Territories Safeguards Agreement as well as other existing 
U.S.-IAEA safeguards agreements. The word ``physical'' is added in 
front of the word ``location'' (to read ``physical location'').

Sec.  75.2 Scope.

    This final rule revises Sec.  75.2 to ensure that possessors of 
nuclear material outside facilities who are physically located in the 
U.S. Caribbean Territories are now included within the scope of the 
regulations in 10 CFR part 75. The previous text in Sec.  75.2 is 
simplified to remove unnecessary and repetitive references to existing 
requirements already enumerated elsewhere in 10 CFR part 75. The 
national security exclusion, which previously only referenced the term 
``locations,'' a term of art specifically relating to the Additional 
Protocol, is changed to reference ``facilities or locations.''

Sec.  75.3 Exemptions.

    This final rule revises Sec.  75.3 to reference all safeguards 
agreements between the U.S. and the IAEA, using the defined term 
``safeguards agreements,'' rather than list each agreement 
individually. ``Safeguards agreements'' includes the U.S.-IAEA 
Caribbean Territories Safeguards Agreement, as exemptions may apply to 
this agreement. Paragraph (b) is moved to new Sec.  75.26, ``Exemptions 
from IAEA safeguards.''

Sec.  75.4 Definitions.

    This final rule revises Sec.  75.4 by adding definitions to 
accommodate the inclusion of the SQP to the U.S.-IAEA Caribbean 
Territories Safeguards Agreement in a manner that avoids confusion with 
the existing safeguards agreements, removing a definition that was 
specific to only one safeguards agreement, and revising certain 
definitions to make them generally applicable to all safeguards 
agreements. The definition for Agreement is being removed; the 
definitions for Inventory change, Key measurement point, Location, and 
Safeguards Agreement are being revised; and the definitions for Nuclear 
Material Outside Facilities, Person, Physical location, Small 
Quantities Protocol, U.S. Caribbean Territories, U.S.-IAEA Caribbean 
Territories Safeguards Agreement, and U.S.-IAEA Safeguards Agreement 
are being added.
    Agreement is being removed because it referred to one specific 
safeguards agreement; Sec.  75.4 now includes and defines each specific 
safeguards agreement.
    Inventory change is being revised to remove the words ``source or 
special'' from the definition because the term ``nuclear material'' is 
defined under this part to include only source or special nuclear 
material.
    Key measurement point is being revised to include the word 
``physical'' before the word ``location'' so as to remove any potential 
confusion between this usage and the term of art ``location'' as it is 
used specifically in the Additional Protocol.
    Location is revised to read any geographical point or area subject 
to IAEA safeguards under the Additional Protocol because it was 
identified either by the U.S. in its declarations, or by the IAEA 
resulting from a question.
    Safeguards Agreement is being revised to read ``Safeguards 
Agreements'' such that it includes all current safeguards agreements, 
protocols, and subsidiary arrangements, between the U.S. and the IAEA.
    Nuclear material outside facilities is being added and means 
nuclear material in the U.S. Caribbean Territories that is not in a 
facility, and is customarily used in amounts of one effective kilogram 
or less.
    Person is being added and means (1) any individual, corporation, 
partnership, firm, association, trust, estate, public or private 
institution, group, government agency other than the Commission or the 
U.S. Department of Energy (except that the Department shall be 
considered a person within the meaning of the regulations in this part 
to the extent that its facilities and activites are subject to the 
licensing and related regulatory authority of the Commission pursuant 
to law), any State or any political subdivision of, or any political 
entity within a State, any foreign government or nation or any 
political subdivision of any such government or nation, or other 
entity; and (2) any legal successor, representative, agent, or agency 
of the foregoing.
    Physical location is being added to provide a definition that is 
specific to a geographic point or area where nuclear material or 
activity resides and to remove any potential confusion with the term of 
art ``location'' as it is used specifically in the Additional Protocol.
    Small Quantities Protocol is being added and means the Small 
Quantities Protocol to the Agreement between the United States of 
America and the International Atomic Energy Agency for the Application 
of Safeguards in Connection with the Treaty for the Prohibition of 
Nuclear Weapons in Latin America (INFCIRC/366).
    U.S. Caribbean Territories is being added and means those 
territories for which, de jure or de facto, the U.S. is internationally 
responsible and which lie within the limits of the geographical zone 
established in Article 4 of the Treaty for the Prohibition of Nuclear 
Weapons in Latin America and the Caribbean (Tlatelolco Treaty), which 
includes: Puerto Rico, the U.S. Virgin Islands, Navassa Island, 
Serranilla Bank, Baja Nuevo (Petrel Island), and the Guantanamo Bay 
Naval Base.
    U.S.-IAEA Caribbean Territories Safeguards Agreement is being added 
and means the Agreement between the United States of America and the 
International Atomic Energy Agency for the Application of Safeguards in 
Connection with the Treaty for the Prohibition of Nuclear Weapons in 
Latin America (INFCIRC/366), and all protocols and subsidiary 
arrangements thereto.
    U.S.-IAEA Safeguards Agreement is being added and means the 
Agreement between the United States of America and the IAEA for the 
Application of Safeguards in the United States (INFCIRC/288), and all 
protocols and subsidiary arrangements thereto.

Sec.  75.6 Facility and location reporting.

    This final rule revises the heading for Sec.  75.6 to read 
``Reporting requirements for facilities, locations, and nuclear 
material outside facilities.'' The requirement to provide advance

[[Page 19606]]

notification of imports, exports, or domestic transfers has been added 
to the table in paragraph (c) to correct an oversight from a previous 
rulemaking action. The letter ''C'' is being added after ``DOE/NRC Form 
742'' under the first item in the table under paragraph (c), to correct 
an oversight from a previous rulemaking action. The websites, https://www.nrc.gov/reading-rm/doc-collections/forms and www.AP.gov, where the 
forms listed in paragraphs (c) through (d) of Sec.  75.6 can be 
accessed, are being added to correct an oversight from a previous 
rulemaking action. The phone number for the NRC Headquarters Operations 
Center (HOC) is being added to the table in paragraph (c) to clarify 
the means of contacting the HOC. Adding the terms ``nuclear material 
outside facilities'' and ``safeguards agreements'' to paragraph (b) of 
this section makes the U.S.-IAEA Caribbean Territories Safeguards 
Agreement generally applicable in this section. The section is being 
further revised to include accounting, recordkeeping, and reporting 
requirements for those entities subject to the U.S.-IAEA Caribbean 
Territories Safeguards Agreement that are physically located in the 
U.S. Caribbean Territories. These requirements are listed in the table 
under new paragraph (e) and pertain to the requirements as outlined in 
Parts I and II of the U.S.-IAEA Caribbean Territories Safeguards 
Agreement. Other conforming changes to account for the new information 
in paragraph (e) are being made throughout 10 CFR part 75 for 
consistency.

Sec.  75.7 Notification of IAEA safeguards.

    This final rule reorders and revises Sec.  75.7 for clarity and 
changes the reference to ``Safeguards Agreement'' to read ``US-IAEA 
Safeguards Agreement,'' and the reference to ``facility or location'' 
to read ``facility.'' Both changes in reference clarify that a 
selection for IAEA safeguards can only be made under the U.S.-IAEA 
Safeguards Agreement, and do not pertain to other referenced agreements 
in this part, such as the Additional Protocol or the U.S.-IAEA 
Caribbean Territories Safeguards Agreement. Minor editorial changes, 
such as changing ``Commission'' to read ``NRC,'' are also being made.

Sec.  75.8 IAEA inspections.

    This final rule revises Sec.  75.8 to include the term of art 
``nuclear material outside facilities,'' which is specific to the U.S.-
IAEA Caribbean Territories Safeguards Agreement, and is included in 
paragraphs (a)-(d), which state that the NRC will provide notice in 
writing if an IAEA inspection is to occur, and describe the procedures 
that must be followed to allow the IAEA access. Paragraph (a) is 
revised to include the SQP agreement as allowing for IAEA inspections. 
Paragraph (a)(1) is revised to add the types of inspections applicable 
to possessors of nuclear material outside facilities located in the 
U.S. Caribbean Territories, which are ad hoc and special inspections 
only. Paragraph (a)(4) is revised to replace the word ``place'' with 
the term physical location to be more specific in where IAEA 
inspections may take place. The requirements specific to inspections 
for nuclear material outside facilities are located in new paragraphs 
(h) and (i), which are parallel in structure to the requirements for 
``facilities.'' The text in the original paragraph (h) is revised and 
redesignated as new paragraph (j). Minor editorial changes, such as 
changing ``Commission'' to read ``NRC,'' are also being made.

Sec.  75.9 Information collection requirements: OMB approval.

    This final rule revises Sec.  75.9 to add a reference to new Sec.  
75.12 to the list of approved information collection requirements in 10 
CFR part 75.

Facility and Location Information

    This final rule revises the undesignated center heading, ``Facility 
and Location Information'' to read ``Information for Facilities, 
Locations, and Nuclear Material Outside Facilities.''

Sec.  75.10 Facility information.

    This final rule revises the Sec.  75.10 section heading to read 
``Facilities.'' Other minor conforming changes are being made to this 
section including changing ``Safeguards Agreement'' to read ``US-IAEA 
Safeguards Agreement'' and to include the word ``physical'' before the 
word ``location'' to denote when an actual physical location is being 
specified and to distinguish it from the ``location'' term of art used 
specifically under the Additional Protocol. Minor editorial changes, 
such as changing ``Commission'' to read ``NRC,'' are also being made.

Sec.  75.11 Location information.

    This final rule revises Sec.  75.11 section heading to read 
``Locations.'' Other conforming changes are being made to this section 
including adding the word ``physical'' before the word ``location'' to 
denote when an actual physical location is being specified and to 
distinguish it from the ``location'' term of art used specifically 
under the Additional Protocol. Minor editorial changes, such as 
changing ``Commission'' to read ``NRC,'' are also being made.

Sec.  75.12 Communication of information to IAEA is revised and 
redesignated as Sec.  75.13 Communication of information to IAEA.

    This final rule redesignates Sec.  75.12 as new Sec.  75.13 and 
adds new Sec.  75.12, ``Nuclear material outside facilities.'' The 
records retention requirements in paragraphs (b)(1) and (b)(4) of this 
section have been moved to Sec.  75.24, ``Retention of records.'' Minor 
conforming changes are being made including changing the references to 
individual safeguards agreements to refer collectively to all 
safeguards agreements between the U.S. and the IAEA, and adding new 
Sec.  75.12 for requirements applicable only to the U.S. Caribbean 
Territories. Minor editorial changes, such as changing ``Commission'' 
to read ``NRC,'' are also being made.

Sec.  75.12 Nuclear material outside facilities.

    This final rule adds new Sec.  75.12, which provides details on the 
types of information possessors of nuclear material outside facilities 
physically located in the U.S. Caribbean Territories are required to 
report to the NRC on an annual basis, such as name, mailing address, 
use of nuclear material, etc.
Material Accounting and Control For Facilities
    This final rule revises the undesignated center heading, ``Material 
Accounting and Control For Facilities'' to read ``Material Accounting 
and Control'' so that the subpart applies to all entities subject to 
material accounting and control requirements, not only to facilities.

Sec.  75.15 Facility attachments.

    This final rule revises Sec.  75.15 by making minor conforming 
changes, such as changing ``Commission'' to read ``NRC'' and changing 
``Safeguards Agreement'' to read ``U.S.-IAEA Safeguards Agreement.''

Sec.  75.21 General requirements.

    This final rule revises Sec.  75.21 by adding new paragraph (b) to 
include possessors of nuclear material outside facilities, and the 
requirement to establish, maintain, and follow written material 
accounting and control procedures, pursuant to the U.S.-IAEA Caribbean 
Territories Safeguards Agreement. The records retention requirements in 
paragraph (a) are moved to Sec.  75.24, ``Retention of records.''

[[Page 19607]]

Minor conforming changes are being made to change the reference from 
``Safeguards Agreement'' to read ``U.S.-IAEA Safeguards Agreement'' and 
by changing ``Commission'' to read ``NRC.''

Sec.  75.24 Retention of records.

    This final rule restructures and revises Sec.  75.24 to include new 
paragraphs (a) and (b) to include the records retention requirements 
from Sec.  75.21(a) and to specifically list who is required to retain 
records and to include the term of art ``nuclear material outside 
facilities,'' which is specific to the U.S.-IAEA Caribbean Territories 
Safeguards Agreement. Minor editorial changes, such as changing 
``Commission'' to read ``NRC,'' are also being made.
IAEA Nuclear Material Exemptions and Terminations
    This final rule adds a new undesignated center heading, ``IAEA 
Nuclear Material Exemptions and Terminations.''

Sec.  75.26 Exemption from IAEA safeguards and Sec.  75.27 Requirements 
for facilities, locations, and nuclear material outside facilities 
after issuance of IAEA exemptions.

    This final rule adds new Sec. Sec.  75.26 and 75.27 to describe the 
types of nuclear material upon which the U.S. Government may request an 
exemption from IAEA safeguards and to address the different 
requirements after such exemptions have been granted by the IAEA for 
facilities, locations, and nuclear material outside facilities.

Sec.  75.28 Termination from IAEA safeguards and Sec.  75.29 
Requirements for facilities, locations, and nuclear material outside 
facilities after termination from IAEA safeguards.

    This final rule adds new Sec. Sec.  75.28 and 75.29 to describe the 
conditions under which the U.S. Government may request the termination 
of IAEA safeguards and to address the different requirements after such 
terminations have been granted by the IAEA for facilities, locations, 
and nuclear material outside facilities.

Sec.  75.31 General requirements.

    This final rule restructures Sec.  75.31 to include new paragraphs 
(a) and (b) to address general accounting, recordkeeping, and reporting 
requirements for possessors of nuclear material outside facilities. 
Minor editorial changes, such as changing ``Commission'' to read 
``NRC,'' are also being made.

Sec.  75.32 Initial inventory report.

    This final rule revises Sec.  75.32 to address the specific initial 
inventory reporting requirements for both licensees of facilities and 
possessors of nuclear material outside facilities and to make minor 
editorial changes. Paragraph (a) is revised and split into two 
paragraphs: (a) Licensees of facilities and (b) Possessors of nuclear 
material outside facilities. Paragraph (b) is revised and redesignated 
as new paragraph (c). Paragraph (c) is revised and redesignated as new 
paragraph (e). A new paragraph (d) is added. Minor editorial changes, 
such as changing ``Commission'' to read ``NRC,'' are also being made.

Sec.  75.33 Accounting reports.

    This final rule revises Sec.  75.33 by changing the name of the 
``Nuclear Material Transaction Report'' to read ``Inventory Change 
Report (Nuclear Material Transaction Report).''

Sec.  75.34 Inventory change reports.

    This final rule revises Sec.  75.34 to include possessors of 
nuclear material outside facilities in the requirement to submit 
inventory change reports and to include time submittal requirements. 
New paragraph (b)(4) is added to address the specific import 
requirements for possessors of nuclear material outside facilities. The 
previously undesignated sentence after paragraph (a)(2) but before 
paragraph (b) is revised and designated as paragraph (b)(3). The 
paragraphs previously designated (b)(1) and (2) are redesignated as 
paragraphs (c)(1) and (2) to explain when a U.S. Department of Energy 
(DOE)/NRC Form 740M must be completed. Websites that contain the Office 
of Management and Budget (OMB)-approved NUREG guidance documents are 
included in new paragraph (d). Minor editorial changes are being made, 
such as changing the name ``Nuclear Material Transaction Reports'' to 
read ``Inventory Change Report (Nuclear Material Transaction Report).''

Sec.  75.35 Material status reports.

    This final rule revises Sec.  75.35 to include possessors of 
nuclear material outside facilities in the requirement to submit 
material status reports. New paragraphs (c)-(e) are being added. 
Paragraph (c) is added to include possessors of nuclear material 
outside facilities to the requirement to submit material status 
reports. Paragraph (d) is added to clarify when a material status 
report must be accompanied by DOE/NRC Form 740M. Paragraph (e) is added 
to clarify where the forms and their instructions may be accessed. 
Furthermore, a specific 12-month reporting period is being added. Minor 
editorial changes, such as changing ``Commission'' to read ``NRC,'' are 
also being made.

Sec.  75.36 Special reports.

    This final rule revises Sec.  75.36 to include possessors of 
nuclear material outside facilities in the requirements for submitting 
special reports. Paragraph (c) is removed and the text is revised and 
redesignated as paragraphs (b)(1) and (2). Minor editorial changes, 
such as changing ``Commission'' to read ``NRC,'' are also being made.

Sec.  75.43 Circumstances requiring advance notification.

    This final rule revises Sec.  75.43 by modifying paragraph (a) to 
make the section generally applicable to any person subject to any 
U.S.-IAEA safeguards agreement. Minor editorial changes, such as 
changing ``Commission'' to read ``NRC,'' are also being made.

Sec.  75.46 Expenses.

    This final rule revises Sec.  75.46 to make it generally applicable 
to any person subject to any U.S.-IAEA safeguards agreement. Minor 
editorial changes, such as changing ``Commission'' to read ``NRC,'' are 
also being made.

Sec.  75.53 Criminal penalties.

    This final rule revises paragraph (b) by changing the reference 
Sec.  75.12 to its new designation as Sec.  75.13 and by adding new 
Sec. Sec.  75.26 through 75.29.

V. Regulatory Flexibility Certification

    Under the Regulatory Flexibility Act (5 U.S.C. 605(b)), the NRC 
certifies that this final rule will not have a significant economic 
impact on a substantial number of small entities. This final rule 
affects two ``small entities'' as defined by the Regulatory Flexibility 
Act or the size standards established by the NRC (10 CFR 2.810).

VI. Regulatory Analysis

    A regulatory analysis has not been prepared for this final rule. 
The information reported is necessary to satisfy U.S. Government 
obligations with the IAEA under the Agreement between the U.S. and the 
IAEA for the application of safeguards in connection with the Treaty 
for the Prohibition of Nuclear Weapons in Latin America, (INFCIRC/366 
or ``U.S.-IAEA Caribbean Territories Safeguards Agreement'').

VII. Backfitting and Issue Finality

    The NRC has determined that the backfit rule (Sec. Sec.  50.109, 
70.76, 72.62, or

[[Page 19608]]

76.76) does not apply to this final rule because this amendment does 
not involve any provisions that would impose backfits as defined in the 
backfit rule. Implementation of the U.S.-IAEA Caribbean Territories 
Safeguards Agreement and its modified SQP will not involve backfitting 
or issue finality considerations. The entities subject to the revised 
requirements needed to implement the modified SQP are not accorded 
backfitting or issue finality protection. Therefore, a backfit analysis 
is not required.

VIII. Cumulative Effects of Regulation

    This final rule will take maximum advantage of the existing 
requirements in 10 CFR part 75 for those persons possessing nuclear 
material to maintain records of their receipt, shipment, and disposal 
of nuclear material and to submit reports on their holdings of nuclear 
material. Furthermore, the NRC will use existing OMB approved forms for 
reporting information on nuclear material.

IX. 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).

X. Environmental Impact: Categorical Exclusion

    The NRC has determined that this final rule is the type of action 
described in 10 CFR 51.22(c)(1), which categorically excludes from 
environmental review rules that are corrective or of a minor, nonpolicy 
nature and do not substantially modify existing regulations. Therefore, 
neither an environmental impact statement nor an environmental 
assessment has been prepared for this final rule.

XI. Paperwork Reduction Act

    This final rule contains a revision to existing collections of 
information subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.). The collections of information were approved by the OMB, 
approval numbers 3150-0003, 3150-0004, 3150-0055, 3150-0057, and 3150-
0058.
    The burden to the public for the information collection(s) is 
estimated to average 3 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
information collection.
    Persons licensed to possess specified quantities of nuclear 
material currently report inventory and transaction of material to the 
Nuclear Materials Management and Safeguards System via the DOE/NRC 
Forms: DOE/NRC Form 740M, Concise Note; DOE/NRC Form 741, Nuclear 
Material Transaction Report; DOE/NRC Form 742, Material Balance Report; 
and DOE/NRC Form 742C, Physical Inventory Listing. This collection is 
being renewed to include approximately 25 entities (9 have been 
identified) subject to the U.S.-IAEA Caribbean Territories Safeguards 
Agreement (INFCIRC/366). Part 75 of 10 CFR requires licensees to 
provide reports of nuclear material inventory and flow for entities 
under the U.S.-IAEA Caribbean Territories Safeguards Agreement 
(INFCIRC/366), permit inspections by IAEA inspectors, give immediate 
notice to the NRC in specified situations involving the possibility of 
loss of nuclear material, and give notice for imports and exports of 
specified amounts of nuclear material. These licensees will also follow 
written material accounting and control procedures, although actual 
reporting of transfer and material balance records to the IAEA will be 
done through the U.S. State System of Accounting and Control (Nuclear 
Materials Management and Safeguards System, collected under OMB 
clearance numbers 3150-0003, 3150-0004, 3150-0055, 3150-0057, and 3150-
0058).
    The NRC needs this information to implement its international 
safeguards obligations under the U.S.-IAEA Caribbean Territories 
Safeguards Agreement (INFCIRC/366).
    You may submit comments on any aspect of the information 
collection(s), including suggestions for reducing the burden, by the 
following methods:
    Federal rulemaking website: Go to http://www.regulations.gov and 
search for Docket ID NRC-2015-0263.
     Mail comments to: Information Services Branch, Office of 
the Chief Information Officer, Mail Stop: T-2 F43, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555-0001 or to Aaron Szabo, 
Desk Officer, Office of Information and Regulatory Affairs (3150-0004, 
-0005, -0055, -0056, and -0057), NEOB-10202, Office of Management and 
Budget, Washington, DC 20503; telephone: 202-395-3621, email: 
oira_submission@omb.eop.gov.

Public Protection Notification

    The NRC may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless the document requesting 
or requiring the collection displays a currently valid OMB control 
number.

XII. Congressional Review Act

    This final rule is a rule as defined in the Congressional Review 
Act (5 U.S.C. 801-808). However, OMB has not found it to be a major 
rule as defined in the Congressional Review Act.

XIII. Agreement State Compatibility

    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 on September 3, 1997 (62 FR 
46517), this rule is classified as Compatibility Category ``NRC.'' 
Compatibility is not required for Category ``NRC'' regulations. The NRC 
program elements in this category are those that relate directly to 
areas of regulation reserved to the NRC by the Atomic Energy Act of 
1954, as amended, or the provisions of title 10 of the Code of Federal 
Regulations. Although an Agreement State may not adopt program elements 
reserved to NRC, it may wish to inform its licensees of certain 
requirements via a mechanism that is consistent with the particular 
State's administrative procedure laws but does not confer regulatory 
authority on the State.

XIV. Availability of Guidance

    The NRC has revised NUREG/BR-0006, ``Instructions for Completing 
Nuclear Material Transaction Reports'' (ADAMS Accession Nos. 
ML17026A069), and NUREG/BR-0007, ``Instructions for the Preparation and 
Distribution of Material Status Reports'' (Accession Nos. ML17026A076), 
to add an SQP-specific appendix. Public comment will be sought by the 
NRC for the next revisions of NUREG/BR-0006 and NUREG/BR-0007 (separate 
from this final rule), anticipated in calendar year 2018.

List of Subjects in 10 CFR Part 75

    Criminal penalties, Intergovernmental relations, Nuclear energy, 
Nuclear materials, Nuclear power plants and reactors, Penalties, 
Reporting and recordkeeping requirements, Security measures, Treaties.

    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 part 75:

[[Page 19609]]

PART 75--SAFEGUARDS ON NUCLEAR MATERIAL--IMPLEMENTATION OF 
SAFEGUARDS AGREEMENTS BETWEEN THE UNITED STATES AND THE 
INTERNATIONAL ATOMIC ENERGY AGENCY

0
1. The authority citation for part 75 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 53, 63, 103, 104, 
122, 161, 223, 234, 1701 (42 U.S.C. 2073, 2093, 2133, 2134, 2152, 
2201, 2273, 2282, 2297f); Energy Reorganization Act of 1974, sec. 
201 (42 U.S.C. 5841); Nuclear Waste Policy Act of 1982, secs. 135, 
141 (42 U.S.C. 10155, 10161); 44 U.S.C. 3504 note.

0
2. Revise the heading of part 75 to read as set forth above.


0
3. Revise Sec.  75.1 to read as follows:


Sec.  75.1  Purpose.

    The purpose of this part is to implement the requirements 
established by the safeguards agreements between the United States 
(U.S.) and the International Atomic Energy Agency (IAEA). This part 
contains requirements to ensure that the U.S. meets its nuclear non-
proliferation obligations under the safeguards agreements. These 
obligations include providing information to the IAEA on the physical 
location of applicant, licensee, or certificate holder activities; 
information on source and special nuclear materials; and access to the 
physical location of applicant, licensee, or certificate holder 
activities. These obligations are similar to the obligations accepted 
by other countries.

0
4. Revise Sec.  75.2 to read as follows:


Sec.  75.2  Scope.

    (a) The regulations in this part apply to all persons licensed by 
the Nuclear Regulatory Commission (NRC) or an Agreement State; who hold 
a certificate of compliance, construction permit or authorization 
issued by the NRC; who have filed an application with the NRC to 
construct a facility or to receive source or special nuclear material; 
or who possess source or special nuclear material subject to NRC 
regulation under 10 CFR Chapter I.
    (b) The regulations in this part do not apply to facilities or 
locations determined by the U.S. Government to be associated with 
activities or information of direct national security significance.

0
5. Revise Sec.  75.3 to read as follows:


Sec.  75.3  Exemptions.

    The NRC may, upon application of any interested person or upon its 
own initiative, grant exemptions from the requirements of this part 
that it determines are authorized by law and consistent with the 
safeguards agreements, are not inimical to the common defense and 
security, and are otherwise in the public interest.

0
6. Amend Sec.  75.4 by:
0
a. Removing the definition of Agreement;
0
b. Revising the definitions of Inventory change, Key measurement point, 
and Location;
0
c. Adding definitions in alphabetical order for Nuclear Material 
Outside Facilities, Person, and Physical location;
0
d. Remove the definition for Safeguards Agreement;
0
e. Adding definitions in alphabetical order for Safeguards Agreements, 
Small Quantities Protocol, U.S. Caribbean Territories, U.S.-IAEA 
Caribbean Territories Safeguards Agreement, and U.S.-IAEA Safeguards 
Agreement.
    The revisions and additions read as follows:


Sec.  75.4  Definitions.

* * * * *
    Inventory change means an increase or decrease in the quantity of 
nuclear material in an IAEA material balance area.
    Key measurement point means a physical location where nuclear 
material appears in such a form that it may be measured to determine 
material flow or inventory. Key measurement points include, but are not 
limited to, inputs and outputs (including measured discards) and 
storages in IAEA material balance areas.
    Location means any geographical point or area subject to IAEA 
safeguards under the Additional Protocol because it was identified 
either by the U.S. in its declarations, or by the IAEA resulting from a 
question.
* * * * *
    Nuclear material outside facilities means nuclear material in the 
U.S. Caribbean Territories that is not in a facility, and is 
customarily used in amounts of one effective kilogram or less.
    Person means:
    (1) Any individual, corporation, partnership, firm, association, 
trust, estate, public or private institution, group, government agency 
other than the Commission or the U.S. Department of Energy (except that 
the Department shall be considered a person within the meaning of the 
regulations in this part to the extent that its facilities and 
activities are subject to the licensing and related regulatory 
authority of the Commission pursuant to law) any State or any political 
subdivision of, or any political entity within a State, any foreign 
government or nation or any political subdivision of any such 
government or nation, or other entity; and
    (2) Any legal successor, representative, agent, or agency of the 
foregoing.
    Physical location means a specific geographical point or area, 
where either nuclear material subject to Safeguards Agreements resides 
or an activity subject to the Safeguards Agreements occurs.
    Safeguards Agreements means the Agreement between the United States 
of America and the IAEA for the Application of Safeguards in the United 
States (INFCIRC/288) and all protocols and subsidiary arrangements 
thereto, and the Agreement between the United States and the 
International Atomic Energy Agency for the Application of Safeguards in 
Connection with the Treaty for the Prohibition of Nuclear Weapons in 
Latin America (INFCIRC/366) and all protocols and subsidiary 
arrangements thereto.
    Small Quantities Protocol means the Small Quantities Protocol to 
the Agreement between the United States of America and the 
International Atomic Energy Agency for the Application of Safeguards in 
Connection with the Treaty for the Prohibition of Nuclear Weapons in 
Latin America (INFCIRC/366).
* * * * *
    U.S. Caribbean Territories means those territories for which, de 
jure or de facto, the U.S. is internationally responsible and which lie 
within the limits of the geographical zone established in Article 4 of 
the Treaty for the Prohibition of Nuclear Weapons in Latin America and 
the Caribbean (Tlatelolco Treaty), which includes: Puerto Rico, the 
U.S. Virgin Islands, Navassa Island, Serranilla Bank, Baja Nuevo 
(Petrel Island), and the Guantanamo Bay Naval Base.
    U.S.-IAEA Caribbean Territories Safeguards Agreement means the 
Agreement between the United States of America and the IAEA for the 
Application of Safeguards in Connection with the Treaty for the 
Prohibition of Nuclear Weapons in Latin America (INFCIRC/366), and all 
protocols and subsidiary arrangements thereto.
    U.S.-IAEA Safeguards Agreement means the Agreement between the 
United States of America and the International Atomic Energy Agency for 
the Application of Safeguards in the United States (INFCIRC/288), and 
all protocols and subsidiary arrangements thereto.

[[Page 19610]]


0
7. Amend Sec.  75.6 by revising section heading and paragraphs (b) and 
(c) and adding paragraph (e) to read as follows:


Sec.  75.6  Reporting requirements for facilities, locations, and 
nuclear material outside facilities.

* * * * *
    (b) Each applicant, licensee, certificate holder, or possessor of 
nuclear material outside facilities, who has been given notice by the 
NRC in writing that it is required to report under Safeguards 
Agreements for its facility, nuclear material outside facilities, or 
location, shall make its initial and subsequent reports, including 
attachments, in an appropriate format defined in the instructions. The 
DOE/NRC forms and their instructions may be accessed at https://www.nrc.gov/reading-rm/doc-collections/forms. The AP-A and associated 
forms may be accessed at www.AP.gov.
    (c) Facilities--Specific information regarding facilities is to be 
reported as follows:

------------------------------------------------------------------------
              Item                   Section       Manner of delivery
------------------------------------------------------------------------
Initial Inventory Report........         75.32  As specified by printed
                                                 instructions for
                                                 preparation of DOE/NRC
                                                 Form-742C.
Inventory Change Reports........         75.34  As specified by printed
                                                 instructions for
                                                 preparation of DOE/NRC
                                                 Form-741 and Form-740M.
Material Status Reports.........         75.35  As specified by printed
                                                 instructions for
                                                 preparation of DOE/NRC
                                                 Form-742, Form-742C,
                                                 and Form-740M.
Special Reports.................         75.36  To the NRC Headquarters
                                                 Operations Center
                                                 (commercial telephone
                                                 number 301-816-5100).
Advance Notification of Import           75.43  In writing to the NRC,
 and Exports or of Domestic                      as specified in
 Transfers.                                      75.6(a), 75.44, and
                                                 75.45.
Facility information............      75.10(d)  As specified by printed
                                                 instructions for Form N-
                                                 71 and associated
                                                 forms.
Site information................      75.10(e)  As specified by printed
                                                 instructions for
                                                 preparation of DOC/NRC
                                                 Form AP-A and
                                                 associated forms.
------------------------------------------------------------------------

* * * * *
    (e) Nuclear material outside facilities--Specific information 
regarding nuclear material outside facilities in the U.S. Caribbean 
Territories is to be reported as follows:

------------------------------------------------------------------------
              Item                   Section       Manner of delivery
------------------------------------------------------------------------
Initial Inventory Report........         75.32  As specified by printed
                                                 instructions for
                                                 preparation of DOE/NRC
                                                 Form-742C and DOE/NRC
                                                 Form 740M.
Inventory Change Reports........         75.34  As specified by printed
                                                 instructions for
                                                 preparation of DOE/NRC
                                                 Form-741 and DOE/NRC
                                                 Form-740M.
Material Status Reports.........         75.35  As specified by printed
                                                 instructions for
                                                 preparation of DOE/NRC
                                                 Form-742, DOE/NRC Form-
                                                 742C, and DOE/NRC Form-
                                                 740M.
Special Reports.................         75.36  To the NRC Headquarters
                                                 Operations Center
                                                 (commercial telephone
                                                 number 301-816-5100).
Advance Notification of Import           75.43  In writing to the NRC,
 and Exports or of Domestic                      as specified in
 Transfers.                                      75.6(a), 75.43, 75.44,
                                                 and 75.45.
Nuclear Material Outside                 75.12  As specified by printed
 Facilities Information.                         instructions for
                                                 preparation of DOE/NRC
                                                 Form 740M.
------------------------------------------------------------------------


0
8. Revise Sec.  75.7 to read as follows:


Sec.  75.7  Notification of IAEA safeguards.

    (a) The NRC, by written notice, will inform the applicant, 
licensee, or certificate holder of those facilities subject to the 
application of IAEA safeguards under the U.S.-IAEA Safeguards 
Agreement.
    (b) The licensee must inform the NRC in accordance with Sec.  
75.6(c):
    (1) Before the licensee begins an activity that may be subject to 
the U.S-IAEA Safeguards Agreement; or
    (2) Within 30 days of beginning an activity subject to the 
Additional Protocol.
    (c) The notice provided under paragraph (a) of this section is 
effective until the NRC informs the licensee or certificate holder, in 
writing, that its facility is no longer so designated. Whenever a 
previously designated facility is no longer subject to the application 
of IAEA safeguards under the U.S.-IAEA Safeguards Agreement, the NRC 
will give the licensee or certificate holder prompt notice to that 
effect.

0
9. In Sec.  75.8, revise paragraphs (a) introductory text, (a)(1) and 
(4), and (b) through (d); redesignate paragraph (h) as paragraph (j) 
and revise it, and add new paragraph (h) and paragraph (i) to read as 
follows:


Sec.  75.8  IAEA inspections.

    (a) As provided in the U.S.-IAEA Safeguards Agreement and 
Additional Protocol, inspections may be ad hoc, routine, special, or a 
complementary access (or a combination of the foregoing). As provided 
in the Small Quantities Protocol of the U.S.-IAEA Caribbean Territories 
Safeguards Agreement, inspections may be ad hoc or special. The 
objectives of the IAEA inspectors in the performance of inspections are 
as follows:
    (1) Ad hoc inspections to verify information contained in the 
licensee's, applicant's, certificate holder's, or possessor's of 
nuclear material outside facilities facility information or initial 
inventory report, or to identify and verify changes in the situation 
that have occurred after the inventory date under Sec.  75.32(a) or (b) 
at any physical location where the initial inventory report or any 
inspections carried out indicate that nuclear material subject to 
safeguards pursuant to the Safeguards Agreements may be present;
* * * * *
    (4) Special inspections may be conducted at any of the physical 
locations specified above and any

[[Page 19611]]

additional places where the NRC (in coordination with other Federal 
agencies), in response to an IAEA request, finds access to be 
necessary;
* * * * *
    (b) The NRC will notify the applicant, licensee, certificate 
holder, or possessor of nuclear material outside facilities of each 
such inspection or complementary access in writing as soon as possible 
after receiving the IAEA's notice from the U.S. Department of State. 
The applicant, licensee, certificate holder, or possessor of nuclear 
material outside facilities should consult with the NRC immediately if 
the inspection or complementary access would unduly interfere with its 
activities or if its key personnel cannot be available.
    (c) Each applicant, licensee, certificate holder, or possessor of 
nuclear material outside facilities subject to the provisions of this 
part shall recognize as a duly authorized representative of the IAEA 
any person bearing IAEA credentials for whom the NRC has provided 
written or electronic authorization that the IAEA representative is 
permitted to conduct inspection activities on specified dates. If the 
IAEA representative's credentials have not been confirmed by the NRC, 
the applicant, licensee, certificate holder, or possessor of nuclear 
material outside facilities shall not admit the person until the NRC 
has confirmed the person's credentials. The applicant, licensee, 
certificate holder, or possessor of nuclear material outside facilities 
shall notify the NRC promptly, by telephone, whenever an IAEA 
representative arrives at a facility, nuclear material outside 
facilities, or location without advance notification. The applicant, 
licensee, certificate holder, or possessor of nuclear material outside 
facilities shall also contact the NRC, by telephone, within 1 hour with 
respect to the credentials of any person who claims to be an IAEA 
representative and shall accept written or electronic confirmation of 
the credentials from the NRC. Confirmation may be requested through the 
NRC Operations Center (commercial telephone number 301-816-5100).
    (d) Each applicant, licensee, certificate holder, or possessor of 
nuclear material outside facilities subject to the provisions of this 
part shall allow the IAEA opportunity to conduct an NRC-approved 
inspection or complementary access of the facility, nuclear material 
outside facilities, or location to verify the information submitted 
under Sec. Sec.  75.10 through 75.12 and 75.31 through 75.43. The NRC 
will assign an employee to accompany IAEA representative(s) at all 
times during the inspection or complementary access. The applicant, 
licensee, certificate holder, or possessor of nuclear material outside 
facilities may accompany IAEA representatives who inspect or access the 
facility, nuclear material outside facilities, or location. The IAEA 
representatives should not be delayed or otherwise impeded in the 
exercise of their duties.
* * * * *
    (h) Each possessor of nuclear material outside facilities shall 
permit the IAEA, in conducting an ad hoc or special inspection for 
nuclear material outside facilities, to:
    (1) Observe that the measurements of nuclear material at key 
measurement points for material balance accounting are representative;
    (2) Verify the function and calibration of instruments and other 
measurement control equipment;
    (3) Observe that samples at key measurement points for material 
balance accounting are taken in accordance with procedures that produce 
representative samples, observe the treatment and analysis of the 
samples, and obtain duplicates of these samples;
    (4) Arrange to use the IAEA's own equipment for independent 
measurement and surveillance; and
    (5) Perform other measures requested by the IAEA and approved by 
the NRC.
    (i) Each possessor of nuclear material outside facilities shall, at 
the request of an IAEA inspector during an ad hoc or special inspection 
for nuclear material outside facilities:
    (1) Ship material accountancy samples taken for the IAEA's use, in 
accordance with applicable packaging and export licensing regulations, 
by the method of carriage and to the address specified by the 
inspector; and
    (2) Take other actions contemplated by the U.S.-IAEA Caribbean 
Territories Safeguards Agreement and included in the safeguards 
approach approved by the United States and the IAEA, including but not 
limited to the following examples:
    (i) Enabling the IAEA to arrange to install its equipment for 
measurement and surveillance;
    (ii) Enabling the IAEA to apply its seals and other identifying and 
tamper-indicating devices to containers;
    (iii) Making additional measurements and taking additional samples 
for the IAEA's use;
    (iv) Analyzing the IAEA's standard analytical samples;
    (v) Using appropriate standards in calibrating instruments and 
other equipment; and
    (vi) Carrying out other calibrations.
    (j) Nothing in this section requires or authorizes an applicant, 
licensee, certificate holder, or possessor of nuclear material outside 
facilities to carry out any operation that would otherwise constitute a 
violation of the terms of any applicable license, regulation, or order 
of the NRC.


Sec.  75.9  [Amended]

0
10. In Sec.  75.9, in paragraph (b), add the number ``75.12'' in 
numerical order.

0
11. Revise the undesignated center heading ``FACILITY AND LOCATION 
INFORMATION'' to read ``INFORMATION FOR FACILITIES, LOCATIONS, AND 
NUCLEAR MATERIAL OUTSIDE FACILITIES''.

0
12. In Sec.  75.10:
0
a. Revise the section heading;
0
b. In paragraphs (a) and (c)(2) remove the phrase ``Safeguards 
Agreement'' wherever it may appear and add in its place the phrase 
``U.S.-IAEA Safeguards Agreement'';
0
c. In paragraphs (b)(1) and (2) and (d)(5), remove the word 
``location'' and add in its place the phrase ``physical location''; and
0
d. Wherever it may appear, remove the word ``Commission'' and add in 
its place the word ``NRC''.
    The revision reads as follows:


Sec.  75.10  Facilities.

* * * * *

0
13. In Sec.  75.11:
0
a. Revise the section heading;
0
b. Remove the word ``Commission'' and add in its place the word ``NRC'' 
in the introductory text; and
0
c. In paragraphs (b)(1) and (3) and (5) through (7), wherever it may 
appear, remove the word ``location'' and add in its place the phrase 
``physical location''.
    The revision reads as follows:


Sec.  75.11  Locations.

* * * * *


Sec.  75.12  [Redesignated as Sec.  75.13]

0
14. Redesignate Sec.  75.12 as Sec.  75.13 and revise it add new Sec.  
75.12 to read as follows:


Sec.  75.12  Nuclear material outside facilities.

    A possessor of nuclear material outside facilities shall provide to 
the NRC the possessor's name and mailing address, physical location of 
the nuclear material, use of nuclear material, and nuclear material 
accounting and control procedures, including organizational 
responsibilities for accountancy and control. This information must be 
provided annually with the material status report in accordance with 
Sec. Sec.  75.6(e) and 75.35(c).

[[Page 19612]]

Sec.  75.13  Communication of information to the International Atomic 
Energy Agency (IAEA).

    (a) Except as otherwise provided in this section, the NRC will 
furnish to the IAEA all information submitted under Sec. Sec.  75.10, 
75.11, 75.12, and 75.31 through 75.43.
    (b)(1) An applicant, licensee, certificate holder, or possessor of 
nuclear material outside facilities may request that information of 
particular sensitivity, that it customarily holds in confidence, not be 
transmitted physically to the IAEA. An applicant, licensee, certificate 
holder, or possessor of nuclear material outside facilities who makes 
this request shall, at the time the information is submitted, identify 
the pertinent document or part thereof and make a full statement of the 
reasons supporting the request.
    (2) In considering such a request, it is the policy of the NRC to 
achieve an effective balance between legitimate concerns of licensees, 
applicants, certificate holders, or possessors of nuclear material 
outside facilities, including protection of the competitive position of 
the owner of the information, and the undertaking of the United States 
to cooperate with the IAEA to facilitate the implementation of the 
safeguards provided for in the Safeguards Agreements. The NRC will take 
into account the obligation of the IAEA to take every precaution to 
protect commercial and industrial secrets and other confidential 
information coming to its knowledge in the implementation of the 
safeguards agreements.
    (3) A request made under Sec.  2.390 of this chapter will not be 
treated as a request under this section unless the application makes 
specific reference to this section, nor shall a determination to 
withhold information from public disclosure necessarily require a 
determination that such information not be transmitted physically to 
the IAEA.
    (4) If a request is granted, the NRC will determine a physical 
location where the information will remain readily available for 
examination by the IAEA and will so inform the applicant, licensee, 
certificate holder, or possessor of nuclear material outside 
facilities.
    (c) A request made under Sec.  2.390(b) of this chapter will not be 
treated as a request under this section unless the application makes 
specific reference to this section, nor shall a determination to 
withhold information from public disclosure necessarily require a 
determination that this information not be transmitted physically to 
the IAEA.
    (d) Where consistent with the Safeguards Agreements, the NRC may at 
its own initiative, or at the request of a licensee, determine that any 
information submitted under Sec. Sec.  75.10, 75.11, and 75.12 shall 
not be physically transmitted to, or made available for examination by, 
the IAEA.

0
15. Revise the undesignated center heading ``MATERIAL ACCOUNTING AND 
CONTROL FOR FACILITIES'' to read ``MATERIAL ACCOUNTING AND CONTROL''.


Sec.  75.15  [Amended]

0
16. In Sec.  75.15:
0
a. Wherever it may appear, remove the phrase ``Safeguards Agreement'' 
and add in its place the phrase ``U.S.-IAEA Safeguards Agreement''; and
0
b. Wherever it may appear, remove the word ``Commission'' and add in 
its place the word ``NRC''.

0
17. In Sec.  75.21, revise paragraph (a), redesignate paragraphs (b) 
through (d) as paragraphs (c) through (e), and add new paragraph (b) to 
read as follows:


Sec.  75.21  General requirements.

    (a) Each licensee or certificate holder who has been given notice 
by the NRC in writing that its facility has been identified under the 
U.S.-IAEA Safeguards Agreement shall establish, maintain, and follow 
written material accounting and control procedures.
    (b) Each possessor of nuclear material outside facilities in the 
U.S. Caribbean Territories shall establish, maintain, and follow 
written material accounting and control procedures.
* * * * *

0
18. Revise Sec.  75.24 to read as follows:


Sec.  75.24  Retention of records.

    (a) The applicant, licensee, certificate holder, or possessor of 
nuclear material outside facilities shall retain as a record any 
request made pursuant to Sec. Sec.  75.13(b)(1), 75.13(b)(4), and 75.21 
and documents related to that request, which are either prepared or 
received by that entity, until the NRC terminates the license or 
certificate, or until the entity no longer possesses nuclear material, 
whichever occurs later. When records required by these sections are 
superseded, these records must be retained for 3 years after each 
change is made.
    (b) The applicant, licensee, certificate holder, or possessor of 
nuclear material outside facilities shall retain the records referred 
to in Sec. Sec.  75.22 and 75.23 for at least 5 years.

0
19. Under Sec.  75.24, add a new undesignated center heading and new 
Sec. Sec.  75.26 through 75.29 to read as follows:

IAEA Nuclear Material Exemptions and Terminations

Sec.
75.26 Exemption from IAEA safeguards.
75.27 Requirements for facilities, locations, and nuclear material 
outside facilities after issuance of IAEA exemptions.
75.28 Termination from IAEA safeguards.
75.29 Requirements for facilities, locations, and nuclear material 
outside facilities after termination from IAEA safeguards.


Sec.  75.26  Exemption from IAEA safeguards.

    (a) The U.S. Government may request from the IAEA an exemption from 
IAEA safeguards with respect to nuclear material of the following 
types:
    (1) Source and special nuclear material in gram quantities or less 
as a sensing component in instruments;
    (2) Nuclear material used in nonnuclear activities; and
    (3) Plutonium with an isotopic concentration of plutonium-238 
exceeding 80 percent.
    (b) Nuclear material exempted under paragraph (a) of this section 
must not exceed the quantity limits specified in the Safeguards 
Agreements.
    (c) The NRC shall provide a prompt notification of an exemption 
issued by the IAEA to the applicable licensee, certificate holder, or 
nuclear material outside facilities.


Sec.  75.27  Requirements for facilities, locations, and nuclear 
material outside facilities after issuance of IAEA exemptions.

    (a) Licensees of facilities. After the NRC has notified a licensee 
of a facility under Sec.  75.26(c) that the IAEA has approved the 
exemption requested under Sec.  75.26(a) of this part, the licensee:
    (1) Shall submit reports to the NRC pursuant to Sec. Sec.  75.6(c) 
and 75.31(a); and
    (2) Shall not export any nuclear material identified under Sec.  
75.26 until the NRC notifies the licensee that IAEA safeguards under 
the U.S.-IAEA Safeguards Agreement have been re-applied.
    (b) Licensees of locations. A licensee of a location shall provide 
annual updates pursuant to Sec.  75.11(c) following notification from 
the NRC that the IAEA has approved the exemption requested under Sec.  
75.26.
    (c) Possessors of nuclear material outside facilities. After the 
NRC has notified a possessor of nuclear material outside facilities 
under Sec.  75.6(c) that the IAEA has approved the exemption requested 
under Sec.  75.26(a), a possessor of nuclear material outside 
facilities:
    (1) Shall submit reports to the NRC pursuant to Sec. Sec.  75.6(e) 
and 75.31(b); and
    (2) Shall not export out of the U.S. Caribbean Territories any 
nuclear material identified under Sec.  75.26 until

[[Page 19613]]

the NRC notifies the possessor that IAEA safeguards under the U.S.-IAEA 
Caribbean Territories Safeguards Agreement have been re-applied.
    (d) Prohibition against commingling of nuclear material in storage. 
Licensees of facilities, licensees of locations, and possessors of 
nuclear material outside facilities shall not store nuclear material 
exempted under Sec.  75.26 together with nuclear material subject to 
Safeguards Agreements.
    (e) Nuclear material exempted from IAEA safeguards under Sec.  
75.26 is not subject to inspections by the IAEA.


Sec.  75.28  Termination from IAEA safeguards.

    (a) Upon request of the U.S. Government, the IAEA may terminate 
IAEA safeguards on nuclear material that has been consumed, or has been 
diluted in such a way that it is no longer usable for any nuclear 
activity relevant from the point of view of safeguards, or has become 
practicably irrecoverable.
    (b) The NRC will notify the affected licensees, certificate 
holders, and nuclear material outside facilities of the IAEA's 
termination of IAEA safeguards.


Sec.  75.29  Requirements for facilities, locations, and nuclear 
material outside facilities after termination from IAEA safeguards.

    (a) Licensees of facilities. A licensee of a facility shall submit 
an Inventory Change Report pursuant to Sec. Sec.  75.6(c) and 75.31(a) 
following notification from the NRC that IAEA safeguards have been 
terminated as described in Sec.  75.28.
    (b) Licensees of locations. A licensee of a location shall provide 
annual updates pursuant to Sec.  75.11(c) following notification from 
the NRC that IAEA safeguards have been terminated as described in Sec.  
75.28.
    (c) Possessors of nuclear material outside facilities. A possessor 
of nuclear material outside facilities shall submit an Inventory Change 
Report pursuant to Sec. Sec.  75.6(e) and 75.31(b) following 
notification from the NRC that IAEA safeguards have been terminated as 
described in Sec.  75.28.
    (d) Nuclear material that has had IAEA safeguards terminated as 
described in Sec.  75.28 is not subject to inspections by the IAEA.

0
20. Revise Sec.  75.31 to read as follows:


Sec.  75.31  General requirements.

    (a) Each licensee or certificate holder who has been given notice 
by the NRC under Sec.  75.7 that its facility has been identified under 
the U.S.-IAEA Safeguards Agreement shall make, in an appropriate 
computer-readable format, an initial inventory report, and thereafter 
shall make accounting reports, with respect to the facility and, in 
addition, licensees or certificate holders who have been given notice, 
under Sec.  75.7 that their facilities are subject to the application 
of IAEA safeguards, shall make the special reports described in Sec.  
75.36. These reports must be based on the records kept under Sec.  
75.21. At the request of the NRC, the licensee or certificate holder 
shall amplify or clarify any report with respect to any matter relevant 
to implementation of the U.S.-IAEA Safeguards Agreement. Any 
amplification or clarification must be in writing and must be 
submitted, to the address specified in the request, within 20 days of 
the date of the request or other time as may be specified by the NRC.
    (b) Each possessor of nuclear material outside facilities 
(possessor) subject to the U.S.-IAEA Caribbean Territories Safeguards 
Agreement shall make, in an appropriate computer-readable format, an 
initial inventory report in accordance with Sec.  75.32 of this report. 
Thereafter, that possessor shall make accounting reports as described 
in Sec. Sec.  75.33 through 75.35 and special reports as described in 
Sec.  75.36. These reports must be based on the records kept under 
Sec.  75.21(b). At the request of the NRC, the possessor shall amplify 
or clarify any report with respect to any matter relevant to 
implementation of the U.S.-IAEA Caribbean Territories Safeguards 
Agreement. Any amplification or clarification must be in writing and 
must be submitted, to the address specified in the request, within 20 
days of the date of the request or other time as may be specified by 
the NRC.

0
21. Revise Sec.  75.32 to read as follows:


Sec.  75.32  Initial inventory report.

    (a) Licensees of facilities. The initial inventory report must show 
the quantities of nuclear material at a facility. The quantities 
reported in the initial inventory report must be accurate as of the 
last day of the calendar month in which the NRC gives notice to the 
licensee or certificate holder that an initial inventory report is 
required (the ``inventory date'' on DOE/NRC Form 742C).
    (b) Possessors of nuclear material outside facilities. The initial 
inventory report must show the quantities of nuclear material outside 
facilities. The quantities reported in the initial inventory report 
must be accurate as of the last day of the calendar month in which the 
possessor of nuclear material outside facilities becomes subject to the 
requirements of this part (the ``inventory date'' on DOE/NRC Form 
742C).
    (c) Initial inventory report. The information in the initial 
inventory report may be based upon the accounting records. The initial 
inventory report must be submitted to the NRC on DOE/NRC Form 742C in 
accordance with the instructions in NUREG/BR-0007 and NMMSS Report D-24 
``Personal Computer Data Input for NRC Licensees.'' Copies of the 
instructions for completing DOE/NRC Form 742C and DOE/NRC Form 740M may 
be obtained from the following websites: http://www.nrc.gov/reading-rm/doc-collections/nuregs/brochures and https://nnsa.energy.gov/aboutus/ourprograms/nuclearsecurity/nmmsshome/nmmssinfo/nmmssreports.
    (d) Report forms. DOE/NRC Form 742C must be accompanied by DOE/NRC 
Form 740M if any batch of source material reported in DOE/NRC Form 742C 
is equal to or less than 0.4 kg.
    (e) Report submission. The initial inventory report must be 
submitted to the NRC no later than 20 days after the inventory date.

0
22. In Sec.  75.33, revise (a)(1)(i) to read as follows:


Sec.  75.33   Accounting reports.

    (a)(1) * * *
    (i) Inventory Change Reports (Nuclear Material Transaction Report); 
and
* * * * *

0
23. Revise Sec.  75.34 to read as follows:


Sec.  75.34  Inventory change reports.

    (a) Each licensee of a facility, certificate holder, or possessor 
of nuclear material outside facilities who transfers nuclear material 
subject to IAEA safeguards shall submit an Inventory Change Report 
(Nuclear Material Transaction Report) to the NRC no later than the 
close of business the next working day after each transfer, in 
accordance with the instructions in NUREG/BR-0006 and NMMSS Report D-24 
``Personal Computer Data Input for NRC Licensees.'' Each licensee of a 
facility, certificate holder, or possessor of nuclear material outside 
facilities who receives nuclear material subject to IAEA safeguards 
shall submit an Inventory Change Report to the NRC. Inventory Change 
Reports for receipts must be submitted within 10 days after the 
material is received, in accordance with the instructions in NUREG/BR-
0006 and NMMSS Report D-24 ``Personal Computer Data Input for NRC 
Licensees.'' Copies of the instructions for completing DOE/NRC Form 741 
and DOE/NRC Form 740M may be obtained from the following websites: 
http://www.nrc.gov/reading-rm/doc-collections/nuregs/brochures and

[[Page 19614]]

https://nnsa.energy.gov/aboutus/ourprograms/nuclearsecurity/nmmsshome/nmmssinfo/nmmssreports.
    (b) An Inventory Change Report (Nuclear Material Transaction 
Report) must specify identification and batch data for each batch of 
nuclear material, the date of the inventory change, and, as 
appropriate:
    (1) The originating IAEA material balance area or the shipper; and
    (2) The receiving IAEA material balance area or the recipient.
    (3) Each person who receives any nuclear material from a foreign 
source shall complete both the supplier's and receiver's portion of 
DOE/NRC Form 741.
    (4) Each person in the U.S. Caribbean Territories who receives 
nuclear material from the U.S. outside the U.S. Caribbean Territories 
shall complete both the supplier's and receiver's portion of DOE/NRC 
Form 741.
    (c) An Inventory Change Report must be accompanied by DOE/NRC Form 
740M whenever it is necessary to:
    (1) Explain the inventory changes set forth in the operating 
records required by Sec.  75.23; or
    (2) Describe, to the extent specified in the license conditions, 
the anticipated operational program for the facility, including, but 
not limited to, the schedule for taking physical inventory.
    (d) Copies of the instructions for completing DOE/NRC Form 741 and 
DOE/NRC Form 740M may be obtained from the following websites: http://www.nrc.gov/reading-rm/doc-collections/nuregs/brochures and https://nnsa.energy.gov/aboutus/ourprograms/nuclearsecurity/nmmsshome/nmmssinfo/nmmssreports.

0
24. Revise Sec.  75.35 to read as follows:


Sec.  75.35  Material status reports.

    (a) Each licensee of a facility, certificate holder, or possessor 
of nuclear material outside facilities with nuclear materials subject 
to IAEA safeguards shall submit a material status report for each 
physical inventory taken in accordance with the material accounting and 
control procedures required by Sec.  75.21. The material status report 
must include a DOE/NRC Form 742 and a DOE/NRC Form 742C, which lists 
all batches separately and specifies material identification and batch 
data for each batch. The reports described in this section must be 
prepared and submitted in accordance with instructions in NUREG/BR-
0006, NUREG/BR-0007, and NMMSS Report D-24.
    (b) Unless otherwise specified in the license conditions, material 
status reports shall be submitted to the NRC as soon as possible, but 
in any event no later than 30 days after the start of the physical 
inventory.
    (c) Possessors of nuclear material outside facilities must submit a 
material status report to the NRC every 12 calendar months, for a 
reporting period that commences on May 1st and concludes on April 30th 
of the next calendar year. The annual inventory report must be dated 
April 30th.
    (d) A material status report must be accompanied by DOE/NRC Form 
740M whenever it is necessary to:
    (1) Describe the anticipated operational program;
    (2) Provide additional explanation and clarification at the 
country, facility material balance area, report, or entry level;
    (3) Provide additional explanation not accommodated in any of the 
data elements of DOE/NRC Form 742 or DOE/NRC Form 742C; or
    (4) Report actual inventory values equal to or less than 0.4 kg of 
source material.
    (e) Copies of the instructions for completing DOE/NRC Form 742, 
DOE/NRC Form 742C, and DOE/NRC Form 740M may be obtained from the 
following websites: http://www.nrc.gov/reading-rm/doc-collections/nuregs/brochures and https://nnsa.energy.gov/aboutus/ourprograms/nuclearsecurity/nmmsshome/nmmssinfo/nmmssreports.

0
25. Revise Sec.  75.36 to read as follows:


Sec.  75.36  Special reports.

    (a) This section applies to licensees, certificate holders, and 
possessors of nuclear material outside facilities who:
    (1) Have been given notice under Sec.  75.7(a) that their 
facilities are subject to the application of IAEA safeguards, or
    (2) Are subject to the U.S.-IAEA Caribbean Territories Safeguards 
Agreement.
    (b) Each entity subject to this section shall immediately make a 
special report to the NRC, by telephone, if:
    (1) There is a loss of nuclear material:
    (i) In excess of specified limits, as stated in license conditions, 
for those entities described in paragraph (a)(1) of this section, or
    (ii) In any amount, for those entities described in paragraph 
(a)(2) of this section,
    (2) There are unexpected changes in containment to the extent that 
unauthorized removal of nuclear material has become possible, or
    (3) Reporting is required under a license condition.

0
26. In Sec.  75.43, revise paragraph (a) to read as follows:


Sec.  75.43  Circumstances requiring advance notification.

    (a) Each person subject to the Safeguards Agreements shall give 
advance written notification to the NRC regarding the international and 
domestic transfers specified in this section.
* * * * *

0
27. Revise Sec.  75.46, revise paragraphs (a), (b), (c) introductory 
text, and (d) to read as follows:


Sec.  75.46  Expenses.

    (a) Under the Safeguards Agreements, the IAEA undertakes to 
reimburse any person subject to this part for extraordinary expenses 
incurred as a result of its specific request provided that the IAEA has 
agreed in advance to do so. The Safeguards Agreements also provide that 
the IAEA will reimburse that person for the cost of making additional 
measurements or taking samples at the specific request of an IAEA 
inspector.
    (b) The NRC will inform persons subject to this part, by license 
condition or by other means (e.g., written communication), of those 
items of extraordinary expense that the IAEA has agreed in advance to 
reimburse.
    (c) The NRC will inform persons subject to this part, by license 
condition or by other means (e.g., written communication), of the 
procedures to be used to document:
* * * * *
    (d) The NRC will take appropriate action to assist persons subject 
to this part regarding the reimbursement of any expense that, under the 
Safeguards Agreements, is to be borne by the IAEA.


Sec.  75.53  [Amended]

0
28. In Sec.  75.53, in paragraph (b), add the numbers ``75.13'', 
``75.26'', ``75.27'', ``75.28'', and ``75.29'' in numerical order.

    Dated at Rockville, Maryland, this 30th day of April, 2018.

    For the Nuclear Regulatory Commission.
Annette L. Vietti-Cook,
Secretary of the Commission.
[FR Doc. 2018-09462 Filed 5-3-18; 8:45 am]
 BILLING CODE 7590-01-P



                                                                                                                                                                                          19603

                                           Rules and Regulations                                                                                         Federal Register
                                                                                                                                                         Vol. 83, No. 87

                                                                                                                                                         Friday, May 4, 2018



                                           This section of the FEDERAL REGISTER                    INFORMATION CONTACT    section of this                and has since urged countries with an
                                           contains regulatory documents having general            document.                                             original SQP, including the U.S., to
                                           applicability and legal effect, most of which              • NRC’s Agencywide Documents                       adopt a ‘‘modified SQP’’ that would
                                           are keyed to and codified in the Code of                Access and Management System                          have the effect of taking out of abeyance
                                           Federal Regulations, which is published under           (ADAMS): You may obtain publicly-                     certain reporting and inspection
                                           50 titles pursuant to 44 U.S.C. 1510.
                                                                                                   available documents online in the                     requirements of the U.S.–IAEA
                                           The Code of Federal Regulations is sold by              ADAMS Public Documents collection at                  Caribbean Territories Safeguards
                                           the Superintendent of Documents.                        http://www.nrc.gov/reading-rm/                        Agreement. The U.S. and the IAEA have
                                                                                                   adams.html. To begin the search, select               agreed on the text for a modified SQP,
                                                                                                   ‘‘ADAMS Public Documents’’ and then                   which will be brought into force upon
                                           NUCLEAR REGULATORY                                      select ‘‘Begin Web-based ADAMS                        an exchange of diplomatic letters
                                           COMMISSION                                              Search.’’ For problems with ADAMS,                    between the U.S. and the IAEA.
                                                                                                   please contact the NRC’s Public                          When the U.S.–IAEA Caribbean
                                           10 CFR Part 75                                          Document Room (PDR) reference staff at                Territories Safeguards Agreement and
                                                                                                   1–800–397–4209, 301–415–4737, or by                   its SQP was brought into force in 1989,
                                           [NRC–2015–0263]
                                                                                                   email to pdr.resource@nrc.gov. The                    no revisions were made to part 75 of
                                           RIN 3150–AJ70                                           ADAMS accession number for each                       title 10 of the Code of Federal
                                                                                                   document referenced (if it is available in            Regulations (10 CFR), ‘‘Safeguards on
                                           Modified Small Quantities Protocol                      ADAMS) is provided the first time that                Nuclear Material—Implementation of
                                                                                                   it is mentioned in the SUPPLEMENTARY                  U.S.–IAEA Agreement,’’ as most of the
                                           AGENCY:  Nuclear Regulatory                             INFORMATION section.                                  provisions were held in abeyance by the
                                           Commission.                                                • NRC’s PDR: You may examine and                   original SQP. In light of the modified
                                           ACTION: Final rule.                                     purchase copies of public documents at                SQP, which takes certain reporting and
                                                                                                   the NRC’s PDR, Room O1–F21, One                       inspection provisions of the U.S.–IAEA
                                           SUMMARY:   The U.S. Nuclear Regulatory                  White Flint North, 11555 Rockville                    Caribbean Territories Safeguards
                                           Commission (NRC) is amending its                        Pike, Rockville, Maryland 20852.                      Agreement out of abeyance, the scope
                                           regulations to collect information on                   FOR FURTHER INFORMATION CONTACT:                      and requirements of 10 CFR part 75
                                           nuclear material possessed by entities in               Gregory R. Trussell, Office of Nuclear                need to be revised to include these
                                           the U.S. Caribbean Territories, as well as              Material Safety and Safeguards, U.S.                  reporting and inspection requirements.
                                           to allow for International Atomic Energy                Nuclear Regulatory Commission,                        The applicable requirements of the
                                           Agency (IAEA) inspection access, if                     Washington, DC 20555–0001; telephone:                 U.S.–IAEA Caribbean Territories
                                           requested by the IAEA. This final rule                  301–415–6445; email: Gregory.Trussell@                Safeguards Agreement, as captured in
                                           implements the requirements of ‘‘The                    nrc.gov.                                              the amendments to 10 CFR part 75,
                                           Agreement between the United States of                                                                        impact all entities that possess source
                                                                                                   SUPPLEMENTARY INFORMATION:
                                           America and the IAEA for the                                                                                  material and special nuclear material
                                           application of safeguards in connection                 I. Background                                         within the U.S. Caribbean Territories.
                                           with the Treaty for the Prohibition of                     The Agreement between the U.S. and
                                           Nuclear Weapons in Latin America’’                                                                            II. Discussion
                                                                                                   the IAEA for the application of
                                           (INFCIRC/366 or U.S.–IAEA Caribbean                     safeguards in connection with the                     A. General Overview
                                           Territories Safeguards Agreement), that                 Treaty for the Prohibition of Nuclear
                                           apply to the United States (U.S.) based                                                                          The scope and requirements of 10
                                                                                                   Weapons in Latin America (U.S.–IAEA                   CFR part 75 need to be expanded to
                                           on modifications to this Agreement’s                    Caribbean Territories Safeguards
                                           small quantities protocol.                                                                                    include the provisions of the U.S.–IAEA
                                                                                                   Agreement (ADAMS Accession No.                        Caribbean Territories Safeguards
                                           DATES: Effective date: This final rule is               ML17065A218)) entered into force on                   Agreement under the modified SQP.
                                           effective June 4, 2018. Compliance date:                April 6, 1989. When the U.S.–IAEA                     The applicable requirements of the
                                           Compliance with this final rule is                      Caribbean Territories Safeguards                      U.S.–IAEA Caribbean Territories
                                           required by July 3, 2018.                               Agreement was signed, the U.S. and the                Safeguards Agreement, as captured in
                                           ADDRESSES: Please refer to Docket ID                    IAEA also concluded a ‘‘Small                         the amendments to 10 CFR part 75,
                                           NRC–2015–0263 when contacting the                       Quantities Protocol’’ (SQP) to the                    impact all entities that possess source
                                           NRC about the availability of                           agreement that held in abeyance almost                material and special nuclear material
                                           information for this action. You may                    all reporting and access requirements.                within the U.S. Caribbean Territories,
                                           obtain publicly-available information                   The SQPs are designed for countries                   which are defined in the amended 10
                                           related to this action by any of the                    with minimal or no nuclear material                   CFR part 75 as: Puerto Rico, the U.S.
                                           following methods:                                      and activities to minimize the burden of              Virgin Islands, Navassa Island,
                                              • Federal Rulemaking Website: Go to                  international safeguards                              Serranilla Bank, Baja Nuevo (Petrel
                                           http://www.regulations.gov and search                   implementation. The IAEA, as a part of                Island), and the Guantanamo Bay Naval
amozie on DSK3GDR082PROD with RULES




                                           for Docket ID NRC–2015–0263. Address                    its efforts to strengthen international               Base.
                                           questions about NRC dockets to Carol                    safeguards in 2005, identified                           This final rule requires affected
                                           Gallagher; telephone: 301–415–3463;                     proliferation concerns associated with                entities to:
                                           email: Carol.Gallagher@nrc.gov. For                     holding certain provisions of the U.S.–                  • Provide basic information about the
                                           technical questions, contact the                        IAEA Caribbean Territories Safeguards                 user (e.g., user’s name and address),
                                           individual listed in the FOR FURTHER                    Agreement in abeyance through an SQP,                 including organizational structure,


                                      VerDate Sep<11>2014   16:15 May 03, 2018   Jkt 244001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\04MYR1.SGM   04MYR1


                                           19604                  Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and Regulations

                                           geographic location, use of the nuclear                 is defined in revised § 75.4, which                   safeguards agreement mimics a
                                           material, and other relevant information                means ‘‘nuclear material in the U.S.                  comprehensive safeguards agreement for
                                           requested pursuant to the safeguards                    Caribbean Territories that is not in a                a non-nuclear weapon state, the U.S.
                                           agreement.                                              facility, and is customarily used in                  Government anticipates utilizing the
                                             • Provide an initial inventory report                 amounts of one effective kilogram or                  exemption and termination provisions
                                           of all source and special nuclear                       less.’’ In order to accommodate these                 under the U.S.–IAEA Caribbean
                                           material possessed, and an annual                       new requirements, the NRC is revising                 Territories Safeguards Agreement. As
                                           inventory report thereafter. This                       existing sections of 10 CFR part 75 that              such, this final rule incorporates
                                           reporting requirement will also include                 pertain to IAEA inspections. Under                    termination and exemption provisions
                                           source material that is contained in non-               existing regulations, IAEA inspections                into 10 CFR part 75.
                                           nuclear end use applications (e.g.,                     were only applicable to ‘‘facilities,’’
                                           depleted uranium shielding).                                                                                  E. New Definitions
                                                                                                   under the U.S.–IAEA Safeguards
                                             • Provide annual Material Status                      Agreement. However, through the                          Given the addition of the U.S.–IAEA
                                           Reports for nuclear materials covered by                inclusion of the U.S.–IAEA Caribbean                  Caribbean Territories Safeguards
                                           the applicable provisions of the U.S.–                  Territories Safeguards Agreement in the               Agreement to the scope of 10 CFR part
                                           IAEA Caribbean Territories Safeguards                   scope of 10 CFR part 75, the NRC is                   75, it is necessary to specifically define
                                           Agreement.Provide an inventory change                   expanding the applicability of                        and reference each individual
                                           report when possessors import or export                 inspection-related sections to include                safeguards agreement (i.e., ‘‘U.S.–IAEA
                                           nuclear material (including shipments                   possessors of nuclear material outside                Safeguards Agreement’’ and ‘‘U.S.–IAEA
                                           between U.S. Territories as well as to                  facilities.                                           Caribbean Territories Safeguards
                                           and from the 50 States) and provide                                                                           Agreement’’). This change is
                                           advance notification, as specified in                   C. Records and Reports                                implemented throughout 10 CFR part 75
                                           §§ 75.43, 75.44, and 75.45, of such an                     Possessors of nuclear material outside             to ensure consistency in the use of
                                           import or export exceeding one effective                facilities in the U.S. Caribbean                      terminology, and to distinguish between
                                           kilogram, as defined in § 75.4.                         Territories will be subject to new                    the requirements of each safeguards
                                             • Provide access for IAEA                             recordkeeping and reporting                           agreement. Furthermore, the new term
                                           inspections. These inspections are                      requirements pursuant to the modified                 ‘‘physical location’’ is added to 10 CFR
                                           expected to occur on an infrequent                      SQP. Articles 7, 12, 32, 47, 60, 66, 67,              part 75 to clarify the difference between
                                           basis. The scope of IAEA inspections                    and 93 of the U.S.–IAEA Caribbean                     geographic coordinates and the
                                           may include several activities, such as                 Territories Safeguards Agreement were                 Additional Protocol term of art
                                           examination of records; verifying the                   either held in abeyance or not                        ‘‘location.’’ The term ‘‘nuclear material
                                           functioning and calibration of                          applicable; however, through the                      outside of facilities’’ was added as a
                                           instruments; and utilizing IAEA                         modification of the SQP, these Articles               new and distinct term that refers
                                           equipment for independent                               will now be applicable to possessors of               specifically to special nuclear and
                                           measurement, containment (such as a                     nuclear material outside facilities. In               source material in the U.S. Caribbean
                                           seal), and/or surveillance.                             order to accommodate these new                        Territories. This new term was
                                             The regulations in 10 CFR part 75                     requirements, the NRC revised existing                necessary in order to distinguish the
                                           already contain requirements for the                    sections of 10 CFR part 75 that pertain               requirements of the U.S.–IAEA
                                           existing IAEA safeguards agreements to                  to records and reports. Under existing                Caribbean Territories Safeguards
                                           which the U.S. is a party, i.e., the U.S.–              regulations, recordkeeping and                        Agreement from the requirements in the
                                           IAEA Safeguards Agreement (INFCIRC/                     reporting requirements were only                      other safeguards agreements that utilize
                                           288) (ADAMS Accession No.                               applicable to ‘‘facilities’’ and                      the terms of art ‘‘facilities’’ and
                                           ML17065A211) and its associated                         ‘‘locations’’ (as defined in § 75.4).                 ‘‘locations.’’ The term ‘‘U.S. Caribbean
                                           Additional Protocol. The revised                        However, through the inclusion of the                 Territories’’ was added to refer to the
                                           regulations will clearly delineate which                U.S.–IAEA Caribbean Territories                       territories covered by the U.S.–IAEA
                                           entities are subject to the requirements                Safeguards Agreement in the scope of 10               Caribbean Territories Safeguards
                                           under each particular safeguards                        CFR part 75, the NRC is expanding the                 Agreement.
                                           agreement. It should be noted that those                applicability of recordkeeping and
                                           entities subject to the provisions of the               reporting-related sections to include                 F. General Administrative Matters
                                           U.S.–IAEA Caribbean Territories                         possessors of nuclear material outside                  To enhance the clarity and
                                           Safeguards Agreement are not subject to                 facilities.                                           consistency of the regulations, several
                                           the provisions of the U.S.–IAEA                                                                               new definitions are added, and other
                                                                                                   D. Terminations and Exemptions
                                           Safeguards Agreement and its associated                                                                       definitions are revised or removed.
                                           Additional Protocol as defined in § 75.4.                 The U.S. Government may request                     Additionally, this final rule incorporates
                                                                                                   termination and exemption from IAEA                   conforming changes, punctuation, and
                                           B. IAEA Inspections                                     safeguards for declared source or special             grammatical edits. In several sections, a
                                             Possessors of source and special                      nuclear material under Articles 11, 13,               website link is added to reference
                                           nuclear material in the U.S. Caribbean                  33, 34, 35, and 36 of the U.S.–IAEA                   existing NRC guidance documents to
                                           Territories will be subject to special and              Caribbean Territories Safeguards                      replace the requirement for the public to
                                           ad hoc inspections by the IAEA                          Agreement. Previously, the U.S.                       submit a written request for a copy of
                                           pursuant to the modified SQP. Articles                  Government had not utilized the                       the guidance documents.
                                           69, 71, 72, 73, 74, and 87 of U.S.–IAEA                 termination and exemption provisions
                                           Caribbean Territories Safeguards                        under the U.S.–IAEA Safeguards                        III. Rulemaking Procedure
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                                           Agreement that pertain to IAEA                          Agreement, therefore these provisions                    Under the Administrative Procedure
                                           inspections were previously held in                     were not in the existing regulations in               Act (5 U.S.C. 553(a)(1)), the normal
                                           abeyance. Through the modification of                   10 CFR part 75. Due to the anticipated                notice and comment requirements do
                                           the SQP, these Articles will be newly                   material types, quantities, and uses of               not apply if the rulemaking involves a
                                           applicable to possessors of ‘‘nuclear                   nuclear material in the U.S. Caribbean                military or foreign affairs function of the
                                           material outside facilities,’’ as that term             Territories, as well as the fact that this            U.S. Since this final rule involves a


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                                                                  Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and Regulations                                         19605

                                           foreign affairs function of the U.S., the               to new § 75.26, ‘‘Exemptions from IAEA                of Energy (except that the Department
                                           notice and comment provisions of the                    safeguards.’’                                         shall be considered a person within the
                                           Administrative Procedure Act do not                                                                           meaning of the regulations in this part
                                                                                                   § 75.4 Definitions.
                                           apply (5 U.S.C. 553(a)(1)). This final                                                                        to the extent that its facilities and
                                           rule will become effective 30 days after                   This final rule revises § 75.4 by                  activites are subject to the licensing and
                                           its publication in the Federal Register.                adding definitions to accommodate the                 related regulatory authority of the
                                           The amendments are effective June 4,                    inclusion of the SQP to the U.S.–IAEA                 Commission pursuant to law), any State
                                           2018.                                                   Caribbean Territories Safeguards                      or any political subdivision of, or any
                                                                                                   Agreement in a manner that avoids                     political entity within a State, any
                                           IV. Section-by-Section Analysis                         confusion with the existing safeguards                foreign government or nation or any
                                           PART 75—SAFEGUARDS ON                                   agreements, removing a definition that                political subdivision of any such
                                           NUCLEAR MATERIAL—                                       was specific to only one safeguards                   government or nation, or other entity;
                                           IMPLEMENTATION OF US/IAEA                               agreement, and revising certain                       and (2) any legal successor,
                                           AGREEMENT                                               definitions to make them generally                    representative, agent, or agency of the
                                             This final rule revises the 10 CFR part               applicable to all safeguards agreements.              foregoing.
                                           75 title to read: SAFEGUARDS ON                         The definition for Agreement is being                    Physical location is being added to
                                           NUCLEAR MATERIAL—                                       removed; the definitions for Inventory                provide a definition that is specific to a
                                           IMPLEMENTATION OF SAFEGUARDS                            change, Key measurement point,                        geographic point or area where nuclear
                                           AGREEMENTS BETWEEN THE                                  Location, and Safeguards Agreement are                material or activity resides and to
                                           UNITED STATES AND THE                                   being revised; and the definitions for                remove any potential confusion with the
                                           INTERNATIONAL ATOMIC ENERGY                             Nuclear Material Outside Facilities,                  term of art ‘‘location’’ as it is used
                                           AGENCY.                                                 Person, Physical location, Small                      specifically in the Additional Protocol.
                                                                                                   Quantities Protocol, U.S. Caribbean                      Small Quantities Protocol is being
                                           § 75.1 Purpose.                                         Territories, U.S.–IAEA Caribbean                      added and means the Small Quantities
                                              This final rule revises § 75.1 to                    Territories Safeguards Agreement, and                 Protocol to the Agreement between the
                                           include all requirements under any                      U.S.–IAEA Safeguards Agreement are                    United States of America and the
                                           safeguards agreement between the U.S.                   being added.                                          International Atomic Energy Agency for
                                           and the IAEA.                                              Agreement is being removed because                 the Application of Safeguards in
                                              The purpose section is revised to                    it referred to one specific safeguards                Connection with the Treaty for the
                                           make it generally applicable to all U.S.–               agreement; § 75.4 now includes and                    Prohibition of Nuclear Weapons in Latin
                                           IAEA safeguards agreements utilizing a                  defines each specific safeguards                      America (INFCIRC/366).
                                           new term ‘‘safeguards agreements.’’                     agreement.                                               U.S. Caribbean Territories is being
                                           ‘‘Safeguards agreements’’ includes the                     Inventory change is being revised to               added and means those territories for
                                           U.S.–IAEA Caribbean Territories                         remove the words ‘‘source or special’’                which, de jure or de facto, the U.S. is
                                           Safeguards Agreement as well as other                   from the definition because the term                  internationally responsible and which
                                           existing U.S.–IAEA safeguards                           ‘‘nuclear material’’ is defined under this            lie within the limits of the geographical
                                           agreements. The word ‘‘physical’’ is                    part to include only source or special                zone established in Article 4 of the
                                           added in front of the word ‘‘location’’                 nuclear material.                                     Treaty for the Prohibition of Nuclear
                                           (to read ‘‘physical location’’).                           Key measurement point is being                     Weapons in Latin America and the
                                                                                                   revised to include the word ‘‘physical’’              Caribbean (Tlatelolco Treaty), which
                                           § 75.2 Scope.                                           before the word ‘‘location’’ so as to                 includes: Puerto Rico, the U.S. Virgin
                                             This final rule revises § 75.2 to ensure              remove any potential confusion between                Islands, Navassa Island, Serranilla Bank,
                                           that possessors of nuclear material                     this usage and the term of art ‘‘location’’           Baja Nuevo (Petrel Island), and the
                                           outside facilities who are physically                   as it is used specifically in the                     Guantanamo Bay Naval Base.
                                           located in the U.S. Caribbean Territories               Additional Protocol.                                     U.S.–IAEA Caribbean Territories
                                           are now included within the scope of                       Location is revised to read any                    Safeguards Agreement is being added
                                           the regulations in 10 CFR part 75. The                  geographical point or area subject to                 and means the Agreement between the
                                           previous text in § 75.2 is simplified to                IAEA safeguards under the Additional                  United States of America and the
                                           remove unnecessary and repetitive                       Protocol because it was identified either             International Atomic Energy Agency for
                                           references to existing requirements                     by the U.S. in its declarations, or by the            the Application of Safeguards in
                                           already enumerated elsewhere in 10                      IAEA resulting from a question.                       Connection with the Treaty for the
                                           CFR part 75. The national security                         Safeguards Agreement is being                      Prohibition of Nuclear Weapons in Latin
                                           exclusion, which previously only                        revised to read ‘‘Safeguards                          America (INFCIRC/366), and all
                                           referenced the term ‘‘locations,’’ a term               Agreements’’ such that it includes all                protocols and subsidiary arrangements
                                           of art specifically relating to the                     current safeguards agreements,                        thereto.
                                           Additional Protocol, is changed to                      protocols, and subsidiary arrangements,                  U.S.–IAEA Safeguards Agreement is
                                           reference ‘‘facilities or locations.’’                  between the U.S. and the IAEA.                        being added and means the Agreement
                                                                                                      Nuclear material outside facilities is             between the United States of America
                                           § 75.3 Exemptions.                                      being added and means nuclear material                and the IAEA for the Application of
                                             This final rule revises § 75.3 to                     in the U.S. Caribbean Territories that is             Safeguards in the United States
                                           reference all safeguards agreements                     not in a facility, and is customarily used            (INFCIRC/288), and all protocols and
                                           between the U.S. and the IAEA, using                    in amounts of one effective kilogram or               subsidiary arrangements thereto.
                                           the defined term ‘‘safeguards                           less.
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                                           agreements,’’ rather than list each                        Person is being added and means (1)                § 75.6 Facility and location reporting.
                                           agreement individually. ‘‘Safeguards                    any individual, corporation,                            This final rule revises the heading for
                                           agreements’’ includes the U.S.–IAEA                     partnership, firm, association, trust,                § 75.6 to read ‘‘Reporting requirements
                                           Caribbean Territories Safeguards                        estate, public or private institution,                for facilities, locations, and nuclear
                                           Agreement, as exemptions may apply to                   group, government agency other than                   material outside facilities.’’ The
                                           this agreement. Paragraph (b) is moved                  the Commission or the U.S. Department                 requirement to provide advance


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                                           19606                  Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and Regulations

                                           notification of imports, exports, or                    if an IAEA inspection is to occur, and                changes, such as changing
                                           domestic transfers has been added to the                describe the procedures that must be                  ‘‘Commission’’ to read ‘‘NRC,’’ are also
                                           table in paragraph (c) to correct an                    followed to allow the IAEA access.                    being made.
                                           oversight from a previous rulemaking                    Paragraph (a) is revised to include the
                                                                                                                                                         § 75.12 Communication of information
                                           action. The letter ’’C’’ is being added                 SQP agreement as allowing for IAEA
                                                                                                                                                         to IAEA is revised and redesignated as
                                           after ‘‘DOE/NRC Form 742’’ under the                    inspections. Paragraph (a)(1) is revised
                                           first item in the table under paragraph                                                                       § 75.13 Communication of information
                                                                                                   to add the types of inspections
                                           (c), to correct an oversight from a                                                                           to IAEA.
                                                                                                   applicable to possessors of nuclear
                                           previous rulemaking action. The                         material outside facilities located in the               This final rule redesignates § 75.12 as
                                           websites, https://www.nrc.gov/reading-                  U.S. Caribbean Territories, which are ad              new § 75.13 and adds new § 75.12,
                                           rm/doc-collections/forms and                            hoc and special inspections only.                     ‘‘Nuclear material outside facilities.’’
                                           www.AP.gov, where the forms listed in                   Paragraph (a)(4) is revised to replace the            The records retention requirements in
                                           paragraphs (c) through (d) of § 75.6 can                word ‘‘place’’ with the term physical                 paragraphs (b)(1) and (b)(4) of this
                                           be accessed, are being added to correct                 location to be more specific in where                 section have been moved to § 75.24,
                                           an oversight from a previous rulemaking                 IAEA inspections may take place. The                  ‘‘Retention of records.’’ Minor
                                           action. The phone number for the NRC                    requirements specific to inspections for              conforming changes are being made
                                           Headquarters Operations Center (HOC)                    nuclear material outside facilities are               including changing the references to
                                           is being added to the table in paragraph                located in new paragraphs (h) and (i),                individual safeguards agreements to
                                           (c) to clarify the means of contacting the              which are parallel in structure to the                refer collectively to all safeguards
                                           HOC. Adding the terms ‘‘nuclear                         requirements for ‘‘facilities.’’ The text in          agreements between the U.S. and the
                                           material outside facilities’’ and                       the original paragraph (h) is revised and             IAEA, and adding new § 75.12 for
                                           ‘‘safeguards agreements’’ to paragraph                  redesignated as new paragraph (j).                    requirements applicable only to the U.S.
                                           (b) of this section makes the U.S.–IAEA                 Minor editorial changes, such as                      Caribbean Territories. Minor editorial
                                           Caribbean Territories Safeguards                        changing ‘‘Commission’’ to read ‘‘NRC,’’              changes, such as changing
                                           Agreement generally applicable in this                  are also being made.                                  ‘‘Commission’’ to read ‘‘NRC,’’ are also
                                           section. The section is being further                                                                         being made.
                                           revised to include accounting,                          § 75.9 Information collection
                                           recordkeeping, and reporting                            requirements: OMB approval.                           § 75.12 Nuclear material outside
                                           requirements for those entities subject to                                                                    facilities.
                                                                                                     This final rule revises § 75.9 to add a
                                           the U.S.–IAEA Caribbean Territories                     reference to new § 75.12 to the list of                 This final rule adds new § 75.12,
                                           Safeguards Agreement that are                           approved information collection                       which provides details on the types of
                                           physically located in the U.S. Caribbean                requirements in 10 CFR part 75.                       information possessors of nuclear
                                           Territories. These requirements are                                                                           material outside facilities physically
                                           listed in the table under new paragraph                 Facility and Location Information                     located in the U.S. Caribbean Territories
                                           (e) and pertain to the requirements as                     This final rule revises the                        are required to report to the NRC on an
                                           outlined in Parts I and II of the U.S.–                 undesignated center heading, ‘‘Facility               annual basis, such as name, mailing
                                           IAEA Caribbean Territories Safeguards                   and Location Information’’ to read                    address, use of nuclear material, etc.
                                           Agreement. Other conforming changes                     ‘‘Information for Facilities, Locations,
                                                                                                   and Nuclear Material Outside                          Material Accounting and Control For
                                           to account for the new information in
                                           paragraph (e) are being made throughout                 Facilities.’’                                         Facilities
                                           10 CFR part 75 for consistency.                                                                                  This final rule revises the
                                                                                                   § 75.10 Facility information.                         undesignated center heading, ‘‘Material
                                           § 75.7 Notification of IAEA safeguards.                    This final rule revises the § 75.10                Accounting and Control For Facilities’’
                                             This final rule reorders and revises                  section heading to read ‘‘Facilities.’’               to read ‘‘Material Accounting and
                                           § 75.7 for clarity and changes the                      Other minor conforming changes are                    Control’’ so that the subpart applies to
                                           reference to ‘‘Safeguards Agreement’’ to                being made to this section including                  all entities subject to material
                                           read ‘‘US–IAEA Safeguards Agreement,’’                  changing ‘‘Safeguards Agreement’’ to                  accounting and control requirements,
                                           and the reference to ‘‘facility or                      read ‘‘US–IAEA Safeguards Agreement’’                 not only to facilities.
                                           location’’ to read ‘‘facility.’’ Both                   and to include the word ‘‘physical’’
                                           changes in reference clarify that a                     before the word ‘‘location’’ to denote                § 75.15 Facility attachments.
                                           selection for IAEA safeguards can only                  when an actual physical location is                      This final rule revises § 75.15 by
                                           be made under the U.S.–IAEA                             being specified and to distinguish it                 making minor conforming changes, such
                                           Safeguards Agreement, and do not                        from the ‘‘location’’ term of art used                as changing ‘‘Commission’’ to read
                                           pertain to other referenced agreements                  specifically under the Additional                     ‘‘NRC’’ and changing ‘‘Safeguards
                                           in this part, such as the Additional                    Protocol. Minor editorial changes, such               Agreement’’ to read ‘‘U.S.–IAEA
                                           Protocol or the U.S.–IAEA Caribbean                     as changing ‘‘Commission’’ to read                    Safeguards Agreement.’’
                                           Territories Safeguards Agreement.                       ‘‘NRC,’’ are also being made.
                                                                                                                                                         § 75.21 General requirements.
                                           Minor editorial changes, such as
                                                                                                   § 75.11 Location information.                           This final rule revises § 75.21 by
                                           changing ‘‘Commission’’ to read ‘‘NRC,’’
                                           are also being made.                                       This final rule revises § 75.11 section            adding new paragraph (b) to include
                                                                                                   heading to read ‘‘Locations.’’ Other                  possessors of nuclear material outside
                                           § 75.8 IAEA inspections.                                conforming changes are being made to                  facilities, and the requirement to
                                             This final rule revises § 75.8 to                     this section including adding the word                establish, maintain, and follow written
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                                           include the term of art ‘‘nuclear material              ‘‘physical’’ before the word ‘‘location’’             material accounting and control
                                           outside facilities,’’ which is specific to              to denote when an actual physical                     procedures, pursuant to the U.S.–IAEA
                                           the U.S.–IAEA Caribbean Territories                     location is being specified and to                    Caribbean Territories Safeguards
                                           Safeguards Agreement, and is included                   distinguish it from the ‘‘location’’ term             Agreement. The records retention
                                           in paragraphs (a)–(d), which state that                 of art used specifically under the                    requirements in paragraph (a) are moved
                                           the NRC will provide notice in writing                  Additional Protocol. Minor editorial                  to § 75.24, ‘‘Retention of records.’’


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                                                                  Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and Regulations                                          19607

                                           Minor conforming changes are being                      § 75.32 Initial inventory report.                     instructions may be accessed.
                                           made to change the reference from                          This final rule revises § 75.32 to                 Furthermore, a specific 12-month
                                           ‘‘Safeguards Agreement’’ to read ‘‘U.S.–                address the specific initial inventory                reporting period is being added. Minor
                                           IAEA Safeguards Agreement’’ and by                      reporting requirements for both                       editorial changes, such as changing
                                           changing ‘‘Commission’’ to read ‘‘NRC.’’                licensees of facilities and possessors of             ‘‘Commission’’ to read ‘‘NRC,’’ are also
                                                                                                   nuclear material outside facilities and to            being made.
                                           § 75.24    Retention of records.
                                                                                                   make minor editorial changes.                         § 75.36 Special reports.
                                              This final rule restructures and                     Paragraph (a) is revised and split into
                                                                                                                                                            This final rule revises § 75.36 to
                                           revises § 75.24 to include new                          two paragraphs: (a) Licensees of
                                                                                                                                                         include possessors of nuclear material
                                           paragraphs (a) and (b) to include the                   facilities and (b) Possessors of nuclear
                                                                                                                                                         outside facilities in the requirements for
                                           records retention requirements from                     material outside facilities. Paragraph (b)
                                                                                                                                                         submitting special reports. Paragraph (c)
                                           § 75.21(a) and to specifically list who is              is revised and redesignated as new
                                                                                                                                                         is removed and the text is revised and
                                           required to retain records and to include               paragraph (c). Paragraph (c) is revised
                                                                                                                                                         redesignated as paragraphs (b)(1) and
                                           the term of art ‘‘nuclear material outside              and redesignated as new paragraph (e).
                                                                                                                                                         (2). Minor editorial changes, such as
                                           facilities,’’ which is specific to the U.S.–            A new paragraph (d) is added. Minor
                                                                                                                                                         changing ‘‘Commission’’ to read ‘‘NRC,’’
                                           IAEA Caribbean Territories Safeguards                   editorial changes, such as changing
                                                                                                                                                         are also being made.
                                           Agreement. Minor editorial changes,                     ‘‘Commission’’ to read ‘‘NRC,’’ are also
                                           such as changing ‘‘Commission’’ to read                 being made.                                           § 75.43 Circumstances requiring
                                           ‘‘NRC,’’ are also being made.                                                                                 advance notification.
                                                                                                   § 75.33 Accounting reports.
                                           IAEA Nuclear Material Exemptions and                                                                             This final rule revises § 75.43 by
                                                                                                      This final rule revises § 75.33 by
                                           Terminations                                                                                                  modifying paragraph (a) to make the
                                                                                                   changing the name of the ‘‘Nuclear
                                                                                                                                                         section generally applicable to any
                                                                                                   Material Transaction Report’’ to read
                                             This final rule adds a new                                                                                  person subject to any U.S.–IAEA
                                                                                                   ‘‘Inventory Change Report (Nuclear
                                           undesignated center heading, ‘‘IAEA                                                                           safeguards agreement. Minor editorial
                                                                                                   Material Transaction Report).’’
                                           Nuclear Material Exemptions and                                                                               changes, such as changing
                                           Terminations.’’                                         § 75.34 Inventory change reports.                     ‘‘Commission’’ to read ‘‘NRC,’’ are also
                                                                                                      This final rule revises § 75.34 to                 being made.
                                           § 75.26 Exemption from IAEA
                                           safeguards and § 75.27 Requirements for                 include possessors of nuclear material                § 75.46 Expenses.
                                           facilities, locations, and nuclear                      outside facilities in the requirement to
                                                                                                                                                            This final rule revises § 75.46 to make
                                           material outside facilities after issuance              submit inventory change reports and to
                                                                                                                                                         it generally applicable to any person
                                           of IAEA exemptions.                                     include time submittal requirements.
                                                                                                                                                         subject to any U.S.–IAEA safeguards
                                                                                                   New paragraph (b)(4) is added to
                                                                                                                                                         agreement. Minor editorial changes,
                                              This final rule adds new §§ 75.26 and                address the specific import
                                                                                                                                                         such as changing ‘‘Commission’’ to read
                                           75.27 to describe the types of nuclear                  requirements for possessors of nuclear
                                                                                                                                                         ‘‘NRC,’’ are also being made.
                                           material upon which the U.S.                            material outside facilities. The
                                           Government may request an exemption                     previously undesignated sentence after                § 75.53 Criminal penalties.
                                           from IAEA safeguards and to address                     paragraph (a)(2) but before paragraph (b)               This final rule revises paragraph (b)
                                           the different requirements after such                   is revised and designated as paragraph                by changing the reference § 75.12 to its
                                           exemptions have been granted by the                     (b)(3). The paragraphs previously                     new designation as § 75.13 and by
                                           IAEA for facilities, locations, and                     designated (b)(1) and (2) are                         adding new §§ 75.26 through 75.29.
                                           nuclear material outside facilities.                    redesignated as paragraphs (c)(1) and (2)
                                                                                                   to explain when a U.S. Department of                  V. Regulatory Flexibility Certification
                                           § 75.28 Termination from IAEA                           Energy (DOE)/NRC Form 740M must be                       Under the Regulatory Flexibility Act
                                           safeguards and § 75.29 Requirements for                 completed. Websites that contain the                  (5 U.S.C. 605(b)), the NRC certifies that
                                           facilities, locations, and nuclear                      Office of Management and Budget                       this final rule will not have a significant
                                           material outside facilities after                       (OMB)-approved NUREG guidance                         economic impact on a substantial
                                           termination from IAEA safeguards.                       documents are included in new                         number of small entities. This final rule
                                                                                                   paragraph (d). Minor editorial changes                affects two ‘‘small entities’’ as defined
                                              This final rule adds new §§ 75.28 and
                                                                                                   are being made, such as changing the                  by the Regulatory Flexibility Act or the
                                           75.29 to describe the conditions under
                                                                                                   name ‘‘Nuclear Material Transaction                   size standards established by the NRC
                                           which the U.S. Government may request
                                                                                                   Reports’’ to read ‘‘Inventory Change                  (10 CFR 2.810).
                                           the termination of IAEA safeguards and
                                                                                                   Report (Nuclear Material Transaction
                                           to address the different requirements                                                                         VI. Regulatory Analysis
                                                                                                   Report).’’
                                           after such terminations have been
                                                                                                                                                           A regulatory analysis has not been
                                           granted by the IAEA for facilities,                     § 75.35 Material status reports.
                                                                                                                                                         prepared for this final rule. The
                                           locations, and nuclear material outside                   This final rule revises § 75.35 to                  information reported is necessary to
                                           facilities.                                             include possessors of nuclear material                satisfy U.S. Government obligations
                                           § 75.31    General requirements.                        outside facilities in the requirement to              with the IAEA under the Agreement
                                                                                                   submit material status reports. New                   between the U.S. and the IAEA for the
                                              This final rule restructures § 75.31 to              paragraphs (c)–(e) are being added.                   application of safeguards in connection
                                           include new paragraphs (a) and (b) to                   Paragraph (c) is added to include                     with the Treaty for the Prohibition of
                                           address general accounting,                             possessors of nuclear material outside                Nuclear Weapons in Latin America,
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                                           recordkeeping, and reporting                            facilities to the requirement to submit               (INFCIRC/366 or ‘‘U.S.–IAEA Caribbean
                                           requirements for possessors of nuclear                  material status reports. Paragraph (d) is             Territories Safeguards Agreement’’).
                                           material outside facilities. Minor                      added to clarify when a material status
                                           editorial changes, such as changing                     report must be accompanied by DOE/                    VII. Backfitting and Issue Finality
                                           ‘‘Commission’’ to read ‘‘NRC,’’ are also                NRC Form 740M. Paragraph (e) is added                   The NRC has determined that the
                                           being made.                                             to clarify where the forms and their                  backfit rule (§§ 50.109, 70.76, 72.62, or


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                                           19608                  Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and Regulations

                                           76.76) does not apply to this final rule                needed, and completing and reviewing                  document requesting or requiring the
                                           because this amendment does not                         the information collection.                           collection displays a currently valid
                                           involve any provisions that would                         Persons licensed to possess specified               OMB control number.
                                           impose backfits as defined in the backfit               quantities of nuclear material currently
                                           rule. Implementation of the U.S.–IAEA                   report inventory and transaction of                   XII. Congressional Review Act
                                           Caribbean Territories Safeguards                        material to the Nuclear Materials                        This final rule is a rule as defined in
                                           Agreement and its modified SQP will                     Management and Safeguards System via
                                                                                                                                                         the Congressional Review Act (5 U.S.C.
                                           not involve backfitting or issue finality               the DOE/NRC Forms: DOE/NRC Form
                                                                                                                                                         801–808). However, OMB has not found
                                           considerations. The entities subject to                 740M, Concise Note; DOE/NRC Form
                                                                                                                                                         it to be a major rule as defined in the
                                           the revised requirements needed to                      741, Nuclear Material Transaction
                                                                                                                                                         Congressional Review Act.
                                           implement the modified SQP are not                      Report; DOE/NRC Form 742, Material
                                           accorded backfitting or issue finality                  Balance Report; and DOE/NRC Form                      XIII. Agreement State Compatibility
                                           protection. Therefore, a backfit analysis               742C, Physical Inventory Listing. This
                                           is not required.                                        collection is being renewed to include                   Under the ‘‘Policy Statement on
                                                                                                   approximately 25 entities (9 have been                Adequacy and Compatibility of
                                           VIII. Cumulative Effects of Regulation                  identified) subject to the U.S.–IAEA                  Agreement State Programs’’ approved by
                                             This final rule will take maximum                     Caribbean Territories Safeguards                      the Commission on June 30, 1997, and
                                           advantage of the existing requirements                  Agreement (INFCIRC/366). Part 75 of 10                published in the Federal Register on
                                           in 10 CFR part 75 for those persons                     CFR requires licensees to provide                     September 3, 1997 (62 FR 46517), this
                                           possessing nuclear material to maintain                 reports of nuclear material inventory                 rule is classified as Compatibility
                                           records of their receipt, shipment, and                 and flow for entities under the U.S.–                 Category ‘‘NRC.’’ Compatibility is not
                                           disposal of nuclear material and to                     IAEA Caribbean Territories Safeguards                 required for Category ‘‘NRC’’
                                           submit reports on their holdings of                     Agreement (INFCIRC/366), permit                       regulations. The NRC program elements
                                           nuclear material. Furthermore, the NRC                  inspections by IAEA inspectors, give                  in this category are those that relate
                                           will use existing OMB approved forms                    immediate notice to the NRC in                        directly to areas of regulation reserved
                                           for reporting information on nuclear                    specified situations involving the                    to the NRC by the Atomic Energy Act of
                                           material.                                               possibility of loss of nuclear material,              1954, as amended, or the provisions of
                                                                                                   and give notice for imports and exports               title 10 of the Code of Federal
                                           IX. Plain Writing                                       of specified amounts of nuclear                       Regulations. Although an Agreement
                                             The Plain Writing Act of 2010 (Pub.                   material. These licensees will also                   State may not adopt program elements
                                           L. 111–274) requires Federal agencies to                follow written material accounting and                reserved to NRC, it may wish to inform
                                           write documents in a clear, concise, and                control procedures, although actual                   its licensees of certain requirements via
                                           well-organized manner. The NRC has                      reporting of transfer and material                    a mechanism that is consistent with the
                                           written this document to be consistent                  balance records to the IAEA will be                   particular State’s administrative
                                           with the Plain Writing Act as well as the               done through the U.S. State System of                 procedure laws but does not confer
                                           Presidential Memorandum, ‘‘Plain                        Accounting and Control (Nuclear                       regulatory authority on the State.
                                           Language in Government Writing,’’                       Materials Management and Safeguards
                                                                                                   System, collected under OMB clearance                 XIV. Availability of Guidance
                                           published June 10, 1998 (63 FR 31883).
                                                                                                   numbers 3150–0003, 3150–0004, 3150–
                                           X. Environmental Impact: Categorical                                                                             The NRC has revised NUREG/BR–
                                                                                                   0055, 3150–0057, and 3150–0058).
                                           Exclusion                                                                                                     0006, ‘‘Instructions for Completing
                                                                                                     The NRC needs this information to
                                                                                                   implement its international safeguards                Nuclear Material Transaction Reports’’
                                              The NRC has determined that this                                                                           (ADAMS Accession Nos.
                                           final rule is the type of action described              obligations under the U.S.–IAEA
                                                                                                   Caribbean Territories Safeguards                      ML17026A069), and NUREG/BR–0007,
                                           in 10 CFR 51.22(c)(1), which                                                                                  ‘‘Instructions for the Preparation and
                                           categorically excludes from                             Agreement (INFCIRC/366).
                                                                                                     You may submit comments on any                      Distribution of Material Status Reports’’
                                           environmental review rules that are                                                                           (Accession Nos. ML17026A076), to add
                                                                                                   aspect of the information collection(s),
                                           corrective or of a minor, nonpolicy                                                                           an SQP-specific appendix. Public
                                                                                                   including suggestions for reducing the
                                           nature and do not substantially modify                                                                        comment will be sought by the NRC for
                                                                                                   burden, by the following methods:
                                           existing regulations. Therefore, neither                  Federal rulemaking website: Go to                   the next revisions of NUREG/BR–0006
                                           an environmental impact statement nor                   http://www.regulations.gov and search                 and NUREG/BR–0007 (separate from
                                           an environmental assessment has been                    for Docket ID NRC–2015–0263.                          this final rule), anticipated in calendar
                                           prepared for this final rule.                             • Mail comments to: Information                     year 2018.
                                           XI. Paperwork Reduction Act                             Services Branch, Office of the Chief
                                                                                                                                                         List of Subjects in 10 CFR Part 75
                                                                                                   Information Officer, Mail Stop: T–2 F43,
                                             This final rule contains a revision to                U.S. Nuclear Regulatory Commission,                     Criminal penalties, Intergovernmental
                                           existing collections of information                     Washington, DC 20555–0001 or to                       relations, Nuclear energy, Nuclear
                                           subject to the Paperwork Reduction Act                  Aaron Szabo, Desk Officer, Office of                  materials, Nuclear power plants and
                                           of 1995 (44 U.S.C. 3501 et seq.). The                   Information and Regulatory Affairs                    reactors, Penalties, Reporting and
                                           collections of information were                         (3150–0004, –0005, –0055, –0056, and
                                           approved by the OMB, approval                                                                                 recordkeeping requirements, Security
                                                                                                   –0057), NEOB–10202, Office of                         measures, Treaties.
                                           numbers 3150–0003, 3150–0004, 3150–                     Management and Budget, Washington,
                                           0055, 3150–0057, and 3150–0058.                         DC 20503; telephone: 202–395–3621,                      For the reasons set out in the
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                                             The burden to the public for the                      email: oira_submission@omb.eop.gov.                   preamble and under the authority of the
                                           information collection(s) is estimated to                                                                     Atomic Energy Act of 1954, as amended;
                                           average 3 hours per response, including                 Public Protection Notification                        the Energy Reorganization Act of 1974,
                                           the time for reviewing instructions,                      The NRC may not conduct or sponsor,                 as amended; and 5 U.S.C. 552 and 553,
                                           searching existing data sources,                        and a person is not required to respond               the NRC is adopting the following
                                           gathering and maintaining the data                      to, a collection of information unless the            amendments to 10 CFR part 75:


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                                                                  Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and Regulations                                         19609

                                           PART 75—SAFEGUARDS ON                                   determines are authorized by law and                  foreign government or nation or any
                                           NUCLEAR MATERIAL—                                       consistent with the safeguards                        political subdivision of any such
                                           IMPLEMENTATION OF SAFEGUARDS                            agreements, are not inimical to the                   government or nation, or other entity;
                                           AGREEMENTS BETWEEN THE UNITED                           common defense and security, and are                  and
                                           STATES AND THE INTERNATIONAL                            otherwise in the public interest.                       (2) Any legal successor,
                                           ATOMIC ENERGY AGENCY                                    ■ 6. Amend § 75.4 by:                                 representative, agent, or agency of the
                                                                                                   ■ a. Removing the definition of                       foregoing.
                                           ■ 1. The authority citation for part 75                 Agreement;                                              Physical location means a specific
                                           continues to read as follows:                           ■ b. Revising the definitions of                      geographical point or area, where either
                                             Authority: Atomic Energy Act of 1954,                 Inventory change, Key measurement                     nuclear material subject to Safeguards
                                           secs. 53, 63, 103, 104, 122, 161, 223, 234,             point, and Location;                                  Agreements resides or an activity
                                           1701 (42 U.S.C. 2073, 2093, 2133, 2134, 2152,           ■ c. Adding definitions in alphabetical               subject to the Safeguards Agreements
                                           2201, 2273, 2282, 2297f); Energy                        order for Nuclear Material Outside                    occurs.
                                           Reorganization Act of 1974, sec. 201 (42                                                                        Safeguards Agreements means the
                                           U.S.C. 5841); Nuclear Waste Policy Act of
                                                                                                   Facilities, Person, and Physical location;
                                                                                                   ■ d. Remove the definition for                        Agreement between the United States of
                                           1982, secs. 135, 141 (42 U.S.C. 10155, 10161);
                                           44 U.S.C. 3504 note.                                    Safeguards Agreement;                                 America and the IAEA for the
                                                                                                   ■ e. Adding definitions in alphabetical               Application of Safeguards in the United
                                           ■ 2. Revise the heading of part 75 to
                                                                                                   order for Safeguards Agreements, Small                States (INFCIRC/288) and all protocols
                                           read as set forth above.
                                                                                                   Quantities Protocol, U.S. Caribbean                   and subsidiary arrangements thereto,
                                           ■ 3. Revise § 75.1 to read as follows:                  Territories, U.S.–IAEA Caribbean                      and the Agreement between the United
                                                                                                   Territories Safeguards Agreement, and                 States and the International Atomic
                                           § 75.1   Purpose.
                                                                                                   U.S.–IAEA Safeguards Agreement.                       Energy Agency for the Application of
                                             The purpose of this part is to                                                                              Safeguards in Connection with the
                                           implement the requirements established                    The revisions and additions read as
                                                                                                   follows:                                              Treaty for the Prohibition of Nuclear
                                           by the safeguards agreements between                                                                          Weapons in Latin America (INFCIRC/
                                           the United States (U.S.) and the                        § 75.4   Definitions.                                 366) and all protocols and subsidiary
                                           International Atomic Energy Agency                      *      *    *     *      *                            arrangements thereto.
                                           (IAEA). This part contains requirements                    Inventory change means an increase                   Small Quantities Protocol means the
                                           to ensure that the U.S. meets its nuclear               or decrease in the quantity of nuclear                Small Quantities Protocol to the
                                           non-proliferation obligations under the                 material in an IAEA material balance                  Agreement between the United States of
                                           safeguards agreements. These                            area.                                                 America and the International Atomic
                                           obligations include providing                              Key measurement point means a                      Energy Agency for the Application of
                                           information to the IAEA on the physical                 physical location where nuclear                       Safeguards in Connection with the
                                           location of applicant, licensee, or                     material appears in such a form that it               Treaty for the Prohibition of Nuclear
                                           certificate holder activities; information              may be measured to determine material                 Weapons in Latin America (INFCIRC/
                                           on source and special nuclear materials;                flow or inventory. Key measurement                    366).
                                           and access to the physical location of                  points include, but are not limited to,
                                           applicant, licensee, or certificate holder                                                                    *     *     *     *     *
                                                                                                   inputs and outputs (including measured                  U.S. Caribbean Territories means
                                           activities. These obligations are similar               discards) and storages in IAEA material
                                           to the obligations accepted by other                                                                          those territories for which, de jure or de
                                                                                                   balance areas.                                        facto, the U.S. is internationally
                                           countries.                                                 Location means any geographical                    responsible and which lie within the
                                           ■ 4. Revise § 75.2 to read as follows:                  point or area subject to IAEA safeguards              limits of the geographical zone
                                           § 75.2   Scope.                                         under the Additional Protocol because it              established in Article 4 of the Treaty for
                                             (a) The regulations in this part apply                was identified either by the U.S. in its              the Prohibition of Nuclear Weapons in
                                           to all persons licensed by the Nuclear                  declarations, or by the IAEA resulting                Latin America and the Caribbean
                                           Regulatory Commission (NRC) or an                       from a question.                                      (Tlatelolco Treaty), which includes:
                                           Agreement State; who hold a certificate                 *      *    *     *      *                            Puerto Rico, the U.S. Virgin Islands,
                                           of compliance, construction permit or                      Nuclear material outside facilities                Navassa Island, Serranilla Bank, Baja
                                           authorization issued by the NRC; who                    means nuclear material in the U.S.                    Nuevo (Petrel Island), and the
                                           have filed an application with the NRC                  Caribbean Territories that is not in a                Guantanamo Bay Naval Base.
                                           to construct a facility or to receive                   facility, and is customarily used in                    U.S.–IAEA Caribbean Territories
                                           source or special nuclear material; or                  amounts of one effective kilogram or                  Safeguards Agreement means the
                                           who possess source or special nuclear                   less.                                                 Agreement between the United States of
                                           material subject to NRC regulation                         Person means:                                      America and the IAEA for the
                                           under 10 CFR Chapter I.                                    (1) Any individual, corporation,                   Application of Safeguards in
                                             (b) The regulations in this part do not               partnership, firm, association, trust,                Connection with the Treaty for the
                                           apply to facilities or locations                        estate, public or private institution,                Prohibition of Nuclear Weapons in Latin
                                           determined by the U.S. Government to                    group, government agency other than                   America (INFCIRC/366), and all
                                           be associated with activities or                        the Commission or the U.S. Department                 protocols and subsidiary arrangements
                                           information of direct national security                 of Energy (except that the Department                 thereto.
                                           significance.                                           shall be considered a person within the                 U.S.–IAEA Safeguards Agreement
                                                                                                   meaning of the regulations in this part               means the Agreement between the
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                                           ■ 5. Revise § 75.3 to read as follows:
                                                                                                   to the extent that its facilities and                 United States of America and the
                                           § 75.3   Exemptions.                                    activities are subject to the licensing and           International Atomic Energy Agency for
                                             The NRC may, upon application of                      related regulatory authority of the                   the Application of Safeguards in the
                                           any interested person or upon its own                   Commission pursuant to law) any State                 United States (INFCIRC/288), and all
                                           initiative, grant exemptions from the                   or any political subdivision of, or any               protocols and subsidiary arrangements
                                           requirements of this part that it                       political entity within a State, any                  thereto.


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                                           19610                        Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and Regulations

                                           ■ 7. Amend § 75.6 by revising section                                 nuclear material outside facilities, who                instructions. The DOE/NRC forms and
                                           heading and paragraphs (b) and (c) and                                has been given notice by the NRC in                     their instructions may be accessed at
                                           adding paragraph (e) to read as follows:                              writing that it is required to report                   https://www.nrc.gov/reading-rm/doc-
                                                                                                                 under Safeguards Agreements for its                     collections/forms. The AP–A and
                                           § 75.6 Reporting requirements for
                                           facilities, locations, and nuclear material                           facility, nuclear material outside                      associated forms may be accessed at
                                           outside facilities.                                                   facilities, or location, shall make its                 www.AP.gov.
                                           *     *     *    *      *                                             initial and subsequent reports,                           (c) Facilities—Specific information
                                             (b) Each applicant, licensee,                                       including attachments, in an                            regarding facilities is to be reported as
                                           certificate holder, or possessor of                                   appropriate format defined in the                       follows:

                                                                               Item                                            Section                                    Manner of delivery

                                           Initial Inventory Report ...................................................             75.32      As specified by printed instructions for preparation of DOE/NRC Form–
                                                                                                                                                 742C.
                                           Inventory Change Reports .............................................                   75.34      As specified by printed instructions for preparation of DOE/NRC Form–
                                                                                                                                                 741 and Form–740M.
                                           Material Status Reports .................................................                75.35      As specified by printed instructions for preparation of DOE/NRC Form–
                                                                                                                                                 742, Form–742C, and Form–740M.
                                           Special Reports .............................................................            75.36      To the NRC Headquarters Operations Center (commercial telephone
                                                                                                                                                 number 301–816–5100).
                                           Advance Notification of Import and Exports or of Do-                                     75.43      In writing to the NRC, as specified in 75.6(a), 75.44, and 75.45.
                                             mestic Transfers.
                                           Facility information .........................................................        75.10(d)      As specified by printed instructions for Form N–71 and associated
                                                                                                                                                 forms.
                                           Site information ..............................................................       75.10(e)      As specified by printed instructions for preparation of DOC/NRC Form
                                                                                                                                                 AP–A and associated forms.



                                           *      *   *    *      *                                              regarding nuclear material outside                      facilities in the U.S. Caribbean
                                             (e) Nuclear material outside                                                                                                Territories is to be reported as follows:
                                           facilities—Specific information

                                                                               Item                                            Section                                    Manner of delivery

                                           Initial Inventory Report ...................................................             75.32      As specified by printed instructions for preparation of DOE/NRC Form–
                                                                                                                                                 742C and DOE/NRC Form 740M.
                                           Inventory Change Reports .............................................                   75.34      As specified by printed instructions for preparation of DOE/NRC Form–
                                                                                                                                                 741 and DOE/NRC Form–740M.
                                           Material Status Reports .................................................                75.35      As specified by printed instructions for preparation of DOE/NRC Form–
                                                                                                                                                 742, DOE/NRC Form–742C, and DOE/NRC Form–740M.
                                           Special Reports .............................................................            75.36      To the NRC Headquarters Operations Center (commercial telephone
                                                                                                                                                 number 301–816–5100).
                                           Advance Notification of Import and Exports or of Do-                                     75.43      In writing to the NRC, as specified in 75.6(a), 75.43, 75.44, and 75.45.
                                             mestic Transfers.
                                           Nuclear Material Outside Facilities Information .............                            75.12      As specified by printed instructions for preparation of DOE/NRC Form
                                                                                                                                                 740M.



                                           ■   8. Revise § 75.7 to read as follows:                              facility is no longer subject to the                    Agreement, inspections may be ad hoc
                                                                                                                 application of IAEA safeguards under                    or special. The objectives of the IAEA
                                           § 75.7     Notification of IAEA safeguards.
                                                                                                                 the U.S.–IAEA Safeguards Agreement,                     inspectors in the performance of
                                             (a) The NRC, by written notice, will                                the NRC will give the licensee or                       inspections are as follows:
                                           inform the applicant, licensee, or                                    certificate holder prompt notice to that                  (1) Ad hoc inspections to verify
                                           certificate holder of those facilities                                effect.                                                 information contained in the licensee’s,
                                           subject to the application of IAEA                                                                                            applicant’s, certificate holder’s, or
                                           safeguards under the U.S.–IAEA                                        ■ 9. In § 75.8, revise paragraphs (a)
                                                                                                                 introductory text, (a)(1) and (4), and (b)              possessor’s of nuclear material outside
                                           Safeguards Agreement.                                                                                                         facilities facility information or initial
                                             (b) The licensee must inform the NRC                                through (d); redesignate paragraph (h) as
                                                                                                                 paragraph (j) and revise it, and add new                inventory report, or to identify and
                                           in accordance with § 75.6(c):
                                             (1) Before the licensee begins an                                   paragraph (h) and paragraph (i) to read                 verify changes in the situation that have
                                           activity that may be subject to the U.S–                              as follows:                                             occurred after the inventory date under
                                           IAEA Safeguards Agreement; or                                                                                                 § 75.32(a) or (b) at any physical location
                                                                                                                 § 75.8      IAEA inspections.                           where the initial inventory report or any
                                             (2) Within 30 days of beginning an
                                           activity subject to the Additional                                      (a) As provided in the U.S.–IAEA                      inspections carried out indicate that
                                           Protocol.                                                             Safeguards Agreement and Additional                     nuclear material subject to safeguards
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                                             (c) The notice provided under                                       Protocol, inspections may be ad hoc,                    pursuant to the Safeguards Agreements
                                           paragraph (a) of this section is effective                            routine, special, or a complementary                    may be present;
                                           until the NRC informs the licensee or                                 access (or a combination of the                         *      *     *      *    *
                                           certificate holder, in writing, that its                              foregoing). As provided in the Small                      (4) Special inspections may be
                                           facility is no longer so designated.                                  Quantities Protocol of the U.S.–IAEA                    conducted at any of the physical
                                           Whenever a previously designated                                      Caribbean Territories Safeguards                        locations specified above and any


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                                                                  Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and Regulations                                                 19611

                                           additional places where the NRC (in                     representative(s) at all times during the               (vi) Carrying out other calibrations.
                                           coordination with other Federal                         inspection or complementary access.                     (j) Nothing in this section requires or
                                           agencies), in response to an IAEA                       The applicant, licensee, certificate                  authorizes an applicant, licensee,
                                           request, finds access to be necessary;                  holder, or possessor of nuclear material              certificate holder, or possessor of
                                           *      *     *    *     *                               outside facilities may accompany IAEA                 nuclear material outside facilities to
                                              (b) The NRC will notify the applicant,               representatives who inspect or access                 carry out any operation that would
                                           licensee, certificate holder, or possessor              the facility, nuclear material outside                otherwise constitute a violation of the
                                           of nuclear material outside facilities of               facilities, or location. The IAEA                     terms of any applicable license,
                                           each such inspection or complementary                   representatives should not be delayed or              regulation, or order of the NRC.
                                           access in writing as soon as possible                   otherwise impeded in the exercise of
                                                                                                                                                         § 75.9       [Amended]
                                           after receiving the IAEA’s notice from                  their duties.
                                           the U.S. Department of State. The                       *      *     *     *     *                            ■  10. In § 75.9, in paragraph (b), add the
                                           applicant, licensee, certificate holder, or               (h) Each possessor of nuclear material              number ‘‘75.12’’ in numerical order.
                                           possessor of nuclear material outside                   outside facilities shall permit the IAEA,             ■ 11. Revise the undesignated center
                                           facilities should consult with the NRC                  in conducting an ad hoc or special                    heading ‘‘FACILITY AND LOCATION
                                           immediately if the inspection or                        inspection for nuclear material outside               INFORMATION’’ to read
                                           complementary access would unduly                       facilities, to:                                       ‘‘INFORMATION FOR FACILITIES,
                                           interfere with its activities or if its key               (1) Observe that the measurements of                LOCATIONS, AND NUCLEAR
                                           personnel cannot be available.                          nuclear material at key measurement                   MATERIAL OUTSIDE FACILITIES’’.
                                              (c) Each applicant, licensee, certificate            points for material balance accounting                ■ 12. In § 75.10:
                                           holder, or possessor of nuclear material                are representative;                                   ■ a. Revise the section heading;
                                           outside facilities subject to the                         (2) Verify the function and calibration             ■ b. In paragraphs (a) and (c)(2) remove
                                           provisions of this part shall recognize as              of instruments and other measurement                  the phrase ‘‘Safeguards Agreement’’
                                           a duly authorized representative of the                 control equipment;                                    wherever it may appear and add in its
                                           IAEA any person bearing IAEA                              (3) Observe that samples at key                     place the phrase ‘‘U.S.–IAEA Safeguards
                                           credentials for whom the NRC has                        measurement points for material                       Agreement’’;
                                           provided written or electronic                          balance accounting are taken in                       ■ c. In paragraphs (b)(1) and (2) and
                                           authorization that the IAEA                             accordance with procedures that                       (d)(5), remove the word ‘‘location’’ and
                                           representative is permitted to conduct                  produce representative samples, observe               add in its place the phrase ‘‘physical
                                           inspection activities on specified dates.               the treatment and analysis of the                     location’’; and
                                           If the IAEA representative’s credentials                samples, and obtain duplicates of these               ■ d. Wherever it may appear, remove
                                           have not been confirmed by the NRC,                     samples;                                              the word ‘‘Commission’’ and add in its
                                           the applicant, licensee, certificate                      (4) Arrange to use the IAEA’s own                   place the word ‘‘NRC’’.
                                           holder, or possessor of nuclear material                equipment for independent                                The revision reads as follows:
                                           outside facilities shall not admit the                  measurement and surveillance; and
                                                                                                     (5) Perform other measures requested                § 75.10       Facilities.
                                           person until the NRC has confirmed the
                                           person’s credentials. The applicant,                    by the IAEA and approved by the NRC.                  *     *     *     *     *
                                                                                                     (i) Each possessor of nuclear material              ■ 13. In § 75.11:
                                           licensee, certificate holder, or possessor
                                                                                                   outside facilities shall, at the request of           ■ a. Revise the section heading;
                                           of nuclear material outside facilities
                                                                                                   an IAEA inspector during an ad hoc or                 ■ b. Remove the word ‘‘Commission’’
                                           shall notify the NRC promptly, by
                                                                                                   special inspection for nuclear material               and add in its place the word ‘‘NRC’’ in
                                           telephone, whenever an IAEA
                                                                                                   outside facilities:                                   the introductory text; and
                                           representative arrives at a facility,                     (1) Ship material accountancy                       ■ c. In paragraphs (b)(1) and (3) and (5)
                                           nuclear material outside facilities, or                 samples taken for the IAEA’s use, in
                                           location without advance notification.                                                                        through (7), wherever it may appear,
                                                                                                   accordance with applicable packaging                  remove the word ‘‘location’’ and add in
                                           The applicant, licensee, certificate                    and export licensing regulations, by the
                                           holder, or possessor of nuclear material                                                                      its place the phrase ‘‘physical location’’.
                                                                                                   method of carriage and to the address                    The revision reads as follows:
                                           outside facilities shall also contact the               specified by the inspector; and
                                           NRC, by telephone, within 1 hour with                     (2) Take other actions contemplated                 § 75.11       Locations.
                                           respect to the credentials of any person                by the U.S.–IAEA Caribbean Territories                *        *       *      *     *
                                           who claims to be an IAEA                                Safeguards Agreement and included in
                                           representative and shall accept written                 the safeguards approach approved by                   § 75.12       [Redesignated as § 75.13]
                                           or electronic confirmation of the                       the United States and the IAEA,                       ■ 14. Redesignate § 75.12 as § 75.13 and
                                           credentials from the NRC. Confirmation                  including but not limited to the                      revise it add new § 75.12 to read as
                                           may be requested through the NRC                        following examples:                                   follows:
                                           Operations Center (commercial                             (i) Enabling the IAEA to arrange to
                                           telephone number 301–816–5100).                                                                               § 75.12       Nuclear material outside facilities.
                                                                                                   install its equipment for measurement
                                              (d) Each applicant, licensee,                        and surveillance;                                       A possessor of nuclear material
                                           certificate holder, or possessor of                       (ii) Enabling the IAEA to apply its                 outside facilities shall provide to the
                                           nuclear material outside facilities                     seals and other identifying and tamper-               NRC the possessor’s name and mailing
                                           subject to the provisions of this part                  indicating devices to containers;                     address, physical location of the nuclear
                                           shall allow the IAEA opportunity to                       (iii) Making additional measurements                material, use of nuclear material, and
                                           conduct an NRC-approved inspection or                   and taking additional samples for the                 nuclear material accounting and control
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                                           complementary access of the facility,                   IAEA’s use;                                           procedures, including organizational
                                           nuclear material outside facilities, or                   (iv) Analyzing the IAEA’s standard                  responsibilities for accountancy and
                                           location to verify the information                      analytical samples;                                   control. This information must be
                                           submitted under §§ 75.10 through 75.12                    (v) Using appropriate standards in                  provided annually with the material
                                           and 75.31 through 75.43. The NRC will                   calibrating instruments and other                     status report in accordance with
                                           assign an employee to accompany IAEA                    equipment; and                                        §§ 75.6(e) and 75.35(c).


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                                           19612                  Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and Regulations

                                           § 75.13 Communication of information to                 licensee, determine that any information              IAEA Nuclear Material Exemptions and
                                           the International Atomic Energy Agency                  submitted under §§ 75.10, 75.11, and                  Terminations
                                           (IAEA).                                                 75.12 shall not be physically
                                              (a) Except as otherwise provided in                                                                        Sec.
                                                                                                   transmitted to, or made available for                 75.26 Exemption from IAEA safeguards.
                                           this section, the NRC will furnish to the               examination by, the IAEA.                             75.27 Requirements for facilities, locations,
                                           IAEA all information submitted under                                                                               and nuclear material outside facilities
                                           §§ 75.10, 75.11, 75.12, and 75.31                       ■ 15. Revise the undesignated center
                                                                                                   heading ‘‘MATERIAL ACCOUNTING                              after issuance of IAEA exemptions.
                                           through 75.43.                                                                                                75.28 Termination from IAEA safeguards.
                                              (b)(1) An applicant, licensee,                       AND CONTROL FOR FACILITIES’’ to
                                                                                                                                                         75.29 Requirements for facilities, locations,
                                           certificate holder, or possessor of                     read ‘‘MATERIAL ACCOUNTING AND                             and nuclear material outside facilities
                                           nuclear material outside facilities may                 CONTROL’’.                                                 after termination from IAEA safeguards.
                                           request that information of particular                  § 75.15   [Amended]                                   § 75.26    Exemption from IAEA safeguards.
                                           sensitivity, that it customarily holds in
                                           confidence, not be transmitted                          ■ 16. In § 75.15:                                        (a) The U.S. Government may request
                                           physically to the IAEA. An applicant,                   ■ a. Wherever it may appear, remove the               from the IAEA an exemption from IAEA
                                           licensee, certificate holder, or possessor              phrase ‘‘Safeguards Agreement’’ and                   safeguards with respect to nuclear
                                           of nuclear material outside facilities                  add in its place the phrase ‘‘U.S.–IAEA               material of the following types:
                                           who makes this request shall, at the                    Safeguards Agreement’’; and                              (1) Source and special nuclear
                                           time the information is submitted,                                                                            material in gram quantities or less as a
                                                                                                   ■ b. Wherever it may appear, remove
                                           identify the pertinent document or part                                                                       sensing component in instruments;
                                                                                                   the word ‘‘Commission’’ and add in its                   (2) Nuclear material used in
                                           thereof and make a full statement of the                place the word ‘‘NRC’’.
                                           reasons supporting the request.                                                                               nonnuclear activities; and
                                              (2) In considering such a request, it is             ■ 17. In § 75.21, revise paragraph (a),                  (3) Plutonium with an isotopic
                                           the policy of the NRC to achieve an                     redesignate paragraphs (b) through (d)                concentration of plutonium-238
                                           effective balance between legitimate                    as paragraphs (c) through (e), and add                exceeding 80 percent.
                                           concerns of licensees, applicants,                      new paragraph (b) to read as follows:                    (b) Nuclear material exempted under
                                           certificate holders, or possessors of                                                                         paragraph (a) of this section must not
                                                                                                   § 75.21   General requirements.                       exceed the quantity limits specified in
                                           nuclear material outside facilities,
                                           including protection of the competitive                   (a) Each licensee or certificate holder             the Safeguards Agreements.
                                                                                                   who has been given notice by the NRC                     (c) The NRC shall provide a prompt
                                           position of the owner of the
                                                                                                   in writing that its facility has been                 notification of an exemption issued by
                                           information, and the undertaking of the
                                                                                                   identified under the U.S.–IAEA                        the IAEA to the applicable licensee,
                                           United States to cooperate with the
                                                                                                   Safeguards Agreement shall establish,                 certificate holder, or nuclear material
                                           IAEA to facilitate the implementation of
                                                                                                   maintain, and follow written material                 outside facilities.
                                           the safeguards provided for in the
                                           Safeguards Agreements. The NRC will                     accounting and control procedures.
                                                                                                                                                         § 75.27 Requirements for facilities,
                                           take into account the obligation of the                   (b) Each possessor of nuclear material              locations, and nuclear material outside
                                           IAEA to take every precaution to protect                outside facilities in the U.S. Caribbean              facilities after issuance of IAEA exemptions.
                                           commercial and industrial secrets and                   Territories shall establish, maintain, and               (a) Licensees of facilities. After the
                                           other confidential information coming                   follow written material accounting and                NRC has notified a licensee of a facility
                                           to its knowledge in the implementation                  control procedures.                                   under § 75.26(c) that the IAEA has
                                           of the safeguards agreements.                           *     *     *     *      *                            approved the exemption requested
                                              (3) A request made under § 2.390 of                  ■ 18. Revise § 75.24 to read as follows:              under § 75.26(a) of this part, the
                                           this chapter will not be treated as a                                                                         licensee:
                                           request under this section unless the                   § 75.24   Retention of records.                          (1) Shall submit reports to the NRC
                                           application makes specific reference to                    (a) The applicant, licensee, certificate           pursuant to §§ 75.6(c) and 75.31(a); and
                                           this section, nor shall a determination to              holder, or possessor of nuclear material                 (2) Shall not export any nuclear
                                           withhold information from public                        outside facilities shall retain as a record           material identified under § 75.26 until
                                           disclosure necessarily require a                        any request made pursuant to                          the NRC notifies the licensee that IAEA
                                           determination that such information not                 §§ 75.13(b)(1), 75.13(b)(4), and 75.21                safeguards under the U.S.–IAEA
                                           be transmitted physically to the IAEA.                  and documents related to that request,                Safeguards Agreement have been re-
                                              (4) If a request is granted, the NRC                 which are either prepared or received by              applied.
                                           will determine a physical location                      that entity, until the NRC terminates the                (b) Licensees of locations. A licensee
                                           where the information will remain                       license or certificate, or until the entity           of a location shall provide annual
                                           readily available for examination by the                no longer possesses nuclear material,                 updates pursuant to § 75.11(c) following
                                           IAEA and will so inform the applicant,                  whichever occurs later. When records                  notification from the NRC that the IAEA
                                           licensee, certificate holder, or possessor              required by these sections are                        has approved the exemption requested
                                           of nuclear material outside facilities.                 superseded, these records must be                     under § 75.26.
                                              (c) A request made under § 2.390(b) of               retained for 3 years after each change is                (c) Possessors of nuclear material
                                           this chapter will not be treated as a                   made.                                                 outside facilities. After the NRC has
                                           request under this section unless the                                                                         notified a possessor of nuclear material
                                           application makes specific reference to                    (b) The applicant, licensee, certificate
                                                                                                                                                         outside facilities under § 75.6(c) that the
                                           this section, nor shall a determination to              holder, or possessor of nuclear material
                                                                                                                                                         IAEA has approved the exemption
                                           withhold information from public                        outside facilities shall retain the records
                                                                                                                                                         requested under § 75.26(a), a possessor
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                                           disclosure necessarily require a                        referred to in §§ 75.22 and 75.23 for at
                                                                                                                                                         of nuclear material outside facilities:
                                           determination that this information not                 least 5 years.                                           (1) Shall submit reports to the NRC
                                           be transmitted physically to the IAEA.                  ■ 19. Under § 75.24, add a new                        pursuant to §§ 75.6(e) and 75.31(b); and
                                              (d) Where consistent with the                        undesignated center heading and new                      (2) Shall not export out of the U.S.
                                           Safeguards Agreements, the NRC may at                   §§ 75.26 through 75.29 to read as                     Caribbean Territories any nuclear
                                           its own initiative, or at the request of a              follows:                                              material identified under § 75.26 until


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                                                                  Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and Regulations                                              19613

                                           the NRC notifies the possessor that                     reports, with respect to the facility and,              (c) Initial inventory report. The
                                           IAEA safeguards under the U.S.–IAEA                     in addition, licensees or certificate                 information in the initial inventory
                                           Caribbean Territories Safeguards                        holders who have been given notice,                   report may be based upon the
                                           Agreement have been re-applied.                         under § 75.7 that their facilities are                accounting records. The initial
                                             (d) Prohibition against commingling                   subject to the application of IAEA                    inventory report must be submitted to
                                           of nuclear material in storage. Licensees               safeguards, shall make the special                    the NRC on DOE/NRC Form 742C in
                                           of facilities, licensees of locations, and              reports described in § 75.36. These                   accordance with the instructions in
                                           possessors of nuclear material outside                  reports must be based on the records                  NUREG/BR–0007 and NMMSS Report
                                           facilities shall not store nuclear material             kept under § 75.21. At the request of the             D–24 ‘‘Personal Computer Data Input for
                                           exempted under § 75.26 together with                    NRC, the licensee or certificate holder               NRC Licensees.’’ Copies of the
                                           nuclear material subject to Safeguards                  shall amplify or clarify any report with              instructions for completing DOE/NRC
                                           Agreements.                                             respect to any matter relevant to                     Form 742C and DOE/NRC Form 740M
                                             (e) Nuclear material exempted from                    implementation of the U.S.–IAEA                       may be obtained from the following
                                           IAEA safeguards under § 75.26 is not                    Safeguards Agreement. Any                             websites: http://www.nrc.gov/reading-
                                           subject to inspections by the IAEA.                     amplification or clarification must be in             rm/doc-collections/nuregs/brochures
                                                                                                   writing and must be submitted, to the                 and https://nnsa.energy.gov/aboutus/
                                           § 75.28   Termination from IAEA safeguards.
                                                                                                   address specified in the request, within              ourprograms/nuclearsecurity/nmmss
                                              (a) Upon request of the U.S.                         20 days of the date of the request or                 home/nmmssinfo/nmmssreports.
                                           Government, the IAEA may terminate                      other time as may be specified by the                   (d) Report forms. DOE/NRC Form
                                           IAEA safeguards on nuclear material                     NRC.                                                  742C must be accompanied by DOE/
                                           that has been consumed, or has been                       (b) Each possessor of nuclear material              NRC Form 740M if any batch of source
                                           diluted in such a way that it is no longer              outside facilities (possessor) subject to             material reported in DOE/NRC Form
                                           usable for any nuclear activity relevant                the U.S.–IAEA Caribbean Territories                   742C is equal to or less than 0.4 kg.
                                           from the point of view of safeguards, or                Safeguards Agreement shall make, in an                  (e) Report submission. The initial
                                           has become practicably irrecoverable.                   appropriate computer-readable format,                 inventory report must be submitted to
                                              (b) The NRC will notify the affected                 an initial inventory report in accordance             the NRC no later than 20 days after the
                                           licensees, certificate holders, and                     with § 75.32 of this report. Thereafter,              inventory date.
                                           nuclear material outside facilities of the              that possessor shall make accounting                  ■ 22. In § 75.33, revise (a)(1)(i) to read
                                           IAEA’s termination of IAEA safeguards.                  reports as described in §§ 75.33 through              as follows:
                                           § 75.29 Requirements for facilities,                    75.35 and special reports as described in
                                                                                                   § 75.36. These reports must be based on               § 75.33    Accounting reports.
                                           locations, and nuclear material outside
                                           facilities after termination from IAEA                  the records kept under § 75.21(b). At the               (a)(1) * * *
                                           safeguards.                                             request of the NRC, the possessor shall                 (i) Inventory Change Reports (Nuclear
                                              (a) Licensees of facilities. A licensee of           amplify or clarify any report with                    Material Transaction Report); and
                                           a facility shall submit an Inventory                    respect to any matter relevant to                     *      *    *    *     *
                                           Change Report pursuant to §§ 75.6(c)                    implementation of the U.S.–IAEA                       ■ 23. Revise § 75.34 to read as follows:
                                           and 75.31(a) following notification from                Caribbean Territories Safeguards
                                           the NRC that IAEA safeguards have been                  Agreement. Any amplification or                       § 75.34    Inventory change reports.
                                           terminated as described in § 75.28.                     clarification must be in writing and                     (a) Each licensee of a facility,
                                              (b) Licensees of locations. A licensee               must be submitted, to the address                     certificate holder, or possessor of
                                           of a location shall provide annual                      specified in the request, within 20 days              nuclear material outside facilities who
                                           updates pursuant to § 75.11(c) following                of the date of the request or other time              transfers nuclear material subject to
                                           notification from the NRC that IAEA                     as may be specified by the NRC.                       IAEA safeguards shall submit an
                                           safeguards have been terminated as                      ■ 21. Revise § 75.32 to read as follows:              Inventory Change Report (Nuclear
                                           described in § 75.28.                                                                                         Material Transaction Report) to the NRC
                                              (c) Possessors of nuclear material                   § 75.32   Initial inventory report.                   no later than the close of business the
                                           outside facilities. A possessor of nuclear                 (a) Licensees of facilities. The initial           next working day after each transfer, in
                                           material outside facilities shall submit                inventory report must show the                        accordance with the instructions in
                                           an Inventory Change Report pursuant to                  quantities of nuclear material at a                   NUREG/BR–0006 and NMMSS Report
                                           §§ 75.6(e) and 75.31(b) following                       facility. The quantities reported in the              D–24 ‘‘Personal Computer Data Input for
                                           notification from the NRC that IAEA                     initial inventory report must be accurate             NRC Licensees.’’ Each licensee of a
                                           safeguards have been terminated as                      as of the last day of the calendar month              facility, certificate holder, or possessor
                                           described in § 75.28.                                   in which the NRC gives notice to the                  of nuclear material outside facilities
                                              (d) Nuclear material that has had                    licensee or certificate holder that an                who receives nuclear material subject to
                                           IAEA safeguards terminated as                           initial inventory report is required (the             IAEA safeguards shall submit an
                                           described in § 75.28 is not subject to                  ‘‘inventory date’’ on DOE/NRC Form                    Inventory Change Report to the NRC.
                                           inspections by the IAEA.                                742C).                                                Inventory Change Reports for receipts
                                           ■ 20. Revise § 75.31 to read as follows:                   (b) Possessors of nuclear material                 must be submitted within 10 days after
                                                                                                   outside facilities. The initial inventory             the material is received, in accordance
                                           § 75.31   General requirements.                         report must show the quantities of                    with the instructions in NUREG/BR–
                                             (a) Each licensee or certificate holder               nuclear material outside facilities. The              0006 and NMMSS Report D–24
                                           who has been given notice by the NRC                    quantities reported in the initial                    ‘‘Personal Computer Data Input for NRC
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                                           under § 75.7 that its facility has been                 inventory report must be accurate as of               Licensees.’’ Copies of the instructions
                                           identified under the U.S.–IAEA                          the last day of the calendar month in                 for completing DOE/NRC Form 741 and
                                           Safeguards Agreement shall make, in an                  which the possessor of nuclear material               DOE/NRC Form 740M may be obtained
                                           appropriate computer-readable format,                   outside facilities becomes subject to the             from the following websites: http://
                                           an initial inventory report, and                        requirements of this part (the ‘‘inventory            www.nrc.gov/reading-rm/doc-
                                           thereafter shall make accounting                        date’’ on DOE/NRC Form 742C).                         collections/nuregs/brochures and


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                                           19614                  Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Rules and Regulations

                                           https://nnsa.energy.gov/aboutus/                           (b) Unless otherwise specified in the                 (3) Reporting is required under a
                                           ourprograms/nuclearsecurity/nmms                        license conditions, material status                   license condition.
                                           shome/nmmssinfo/nmmssreports.                           reports shall be submitted to the NRC as
                                                                                                   soon as possible, but in any event no                 ■ 26. In § 75.43, revise paragraph (a) to
                                              (b) An Inventory Change Report
                                                                                                   later than 30 days after the start of the             read as follows:
                                           (Nuclear Material Transaction Report)
                                           must specify identification and batch                   physical inventory.                                   § 75.43 Circumstances requiring advance
                                           data for each batch of nuclear material,                   (c) Possessors of nuclear material                 notification.
                                           the date of the inventory change, and, as               outside facilities must submit a material
                                           appropriate:                                            status report to the NRC every 12                       (a) Each person subject to the
                                              (1) The originating IAEA material                    calendar months, for a reporting period               Safeguards Agreements shall give
                                           balance area or the shipper; and                        that commences on May 1st and                         advance written notification to the NRC
                                              (2) The receiving IAEA material                      concludes on April 30th of the next                   regarding the international and
                                           balance area or the recipient.                          calendar year. The annual inventory                   domestic transfers specified in this
                                              (3) Each person who receives any                     report must be dated April 30th.                      section.
                                           nuclear material from a foreign source                     (d) A material status report must be               *     *    *     *     *
                                           shall complete both the supplier’s and                  accompanied by DOE/NRC Form 740M
                                                                                                   whenever it is necessary to:                          ■ 27. Revise § 75.46, revise paragraphs
                                           receiver’s portion of DOE/NRC Form
                                                                                                      (1) Describe the anticipated                       (a), (b), (c) introductory text, and (d) to
                                           741.
                                                                                                   operational program;                                  read as follows:
                                              (4) Each person in the U.S. Caribbean
                                           Territories who receives nuclear                           (2) Provide additional explanation                 § 75.46    Expenses.
                                           material from the U.S. outside the U.S.                 and clarification at the country, facility
                                           Caribbean Territories shall complete                    material balance area, report, or entry                 (a) Under the Safeguards Agreements,
                                           both the supplier’s and receiver’s                      level;                                                the IAEA undertakes to reimburse any
                                           portion of DOE/NRC Form 741.                               (3) Provide additional explanation not             person subject to this part for
                                              (c) An Inventory Change Report must                  accommodated in any of the data                       extraordinary expenses incurred as a
                                           be accompanied by DOE/NRC Form                          elements of DOE/NRC Form 742 or                       result of its specific request provided
                                           740M whenever it is necessary to:                       DOE/NRC Form 742C; or                                 that the IAEA has agreed in advance to
                                              (1) Explain the inventory changes set                   (4) Report actual inventory values                 do so. The Safeguards Agreements also
                                           forth in the operating records required                 equal to or less than 0.4 kg of source                provide that the IAEA will reimburse
                                           by § 75.23; or                                          material.                                             that person for the cost of making
                                              (2) Describe, to the extent specified in                (e) Copies of the instructions for                 additional measurements or taking
                                           the license conditions, the anticipated                 completing DOE/NRC Form 742, DOE/                     samples at the specific request of an
                                           operational program for the facility,                   NRC Form 742C, and DOE/NRC Form                       IAEA inspector.
                                           including, but not limited to, the                      740M may be obtained from the
                                                                                                                                                           (b) The NRC will inform persons
                                           schedule for taking physical inventory.                 following websites: http://www.nrc.gov/
                                                                                                                                                         subject to this part, by license condition
                                              (d) Copies of the instructions for                   reading-rm/doc-collections/nuregs/
                                                                                                                                                         or by other means (e.g., written
                                           completing DOE/NRC Form 741 and                         brochures and https://nnsa.energy.gov/
                                                                                                                                                         communication), of those items of
                                           DOE/NRC Form 740M may be obtained                       aboutus/ourprograms/nuclearsecurity/
                                                                                                   nmmsshome/nmmssinfo/nmmssreports.                     extraordinary expense that the IAEA has
                                           from the following websites: http://                                                                          agreed in advance to reimburse.
                                           www.nrc.gov/reading-rm/doc-                             ■ 25. Revise § 75.36 to read as follows:
                                           collections/nuregs/brochures and                                                                                (c) The NRC will inform persons
                                                                                                   § 75.36   Special reports.                            subject to this part, by license condition
                                           https://nnsa.energy.gov/aboutus/
                                           ourprograms/nuclearsecurity/                              (a) This section applies to licensees,              or by other means (e.g., written
                                           nmmsshome/nmmssinfo/nmmssreports.                       certificate holders, and possessors of                communication), of the procedures to be
                                                                                                   nuclear material outside facilities who:              used to document:
                                           ■ 24. Revise § 75.35 to read as follows:
                                                                                                     (1) Have been given notice under                    *     *     *     *     *
                                           § 75.35   Material status reports.                      § 75.7(a) that their facilities are subject
                                                                                                                                                           (d) The NRC will take appropriate
                                              (a) Each licensee of a facility,                     to the application of IAEA safeguards, or
                                                                                                                                                         action to assist persons subject to this
                                           certificate holder, or possessor of                       (2) Are subject to the U.S.–IAEA
                                                                                                                                                         part regarding the reimbursement of any
                                           nuclear material outside facilities with                Caribbean Territories Safeguards
                                                                                                                                                         expense that, under the Safeguards
                                           nuclear materials subject to IAEA                       Agreement.
                                                                                                                                                         Agreements, is to be borne by the IAEA.
                                           safeguards shall submit a material status                 (b) Each entity subject to this section
                                           report for each physical inventory taken                shall immediately make a special report               § 75.53    [Amended]
                                           in accordance with the material                         to the NRC, by telephone, if:
                                           accounting and control procedures                         (1) There is a loss of nuclear material:            ■  28. In § 75.53, in paragraph (b), add
                                           required by § 75.21. The material status                  (i) In excess of specified limits, as               the numbers ‘‘75.13’’, ‘‘75.26’’, ‘‘75.27’’,
                                           report must include a DOE/NRC Form                      stated in license conditions, for those               ‘‘75.28’’, and ‘‘75.29’’ in numerical
                                           742 and a DOE/NRC Form 742C, which                      entities described in paragraph (a)(1) of             order.
                                           lists all batches separately and specifies              this section, or                                        Dated at Rockville, Maryland, this 30th day
                                           material identification and batch data                    (ii) In any amount, for those entities              of April, 2018.
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                                           for each batch. The reports described in                described in paragraph (a)(2) of this                     For the Nuclear Regulatory Commission.
                                           this section must be prepared and                       section,
                                                                                                                                                         Annette L. Vietti-Cook,
                                           submitted in accordance with                              (2) There are unexpected changes in
                                           instructions in NUREG/BR–0006,                          containment to the extent that                        Secretary of the Commission.
                                           NUREG/BR–0007, and NMMSS Report                         unauthorized removal of nuclear                       [FR Doc. 2018–09462 Filed 5–3–18; 8:45 am]
                                           D–24.                                                   material has become possible, or                      BILLING CODE 7590–01–P




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Document Created: 2018-11-02 09:52:15
Document Modified: 2018-11-02 09:52:15
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective date: This final rule is effective June 4, 2018. Compliance date: Compliance with this final rule is required by July 3, 2018.
ContactGregory R. Trussell, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-6445; email: [email protected]
FR Citation83 FR 19603 
RIN Number3150-AJ70
CFR AssociatedCriminal Penalties; Intergovernmental Relations; Nuclear Energy; Nuclear Materials; Nuclear Power Plants and Reactors; Penalties; Reporting and Recordkeeping Requirements; Security Measures and Treaties

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