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NRC Seal NRC NEWS
U. S. NUCLEAR REGULATORY COMMISSION
Office of Public Affairs Telephone: 301/415-8200
Washington, DC 20555-001 E-mail: opa@nrc.gov

                                 

No. 96-84                               FOR IMMEDIATE RELEASE
                                        (Friday, June 14, 1996)



         NRC, DOE SIGN MOU ON POSSIBLE FUTURE PRODUCTION
              OF TRITIUM IN NRC-LICENSED FACILITIES


     The Nuclear Regulatory Commission and the Department of Energy have entered into a
Memorandum of Understanding concerning DOE's possible future use of NRC-regulated facilities
to produce tritium for nuclear weapons.

     The agreement establishes a basis for NRC review and consultation on DOE's possible
purchase of commercial reactors, or of irradiation services from commercial reactors, for this
purpose.  As an alternative, DOE is also considering building a new accelerator facility to produce
tritium.  Preliminary activities under the agreement include NRC assistance to DOE in assessing
and resolving technical issues to support a DOE decision within three years on the methods for
tritium production.

     Production of tritium in commercial reactors would likely require licensing actions by
NRC, including safety analyses and environmental reviews.  It would also require DOE and NRC
to develop mechanisms to ensure that DOE national defense production requirements would not
impair NRC's regulatory authority to shut down any utilized reactor for safety reasons.

     Other details of the agreement, including matters expressly outside its scope, are provided
in the attached copy.

     Signers of the recent agreement were NRC Chairman Shirley A. Jackson and Energy
Secretary Hazel R. O'Leary. 

                                  #
.       MEMORANDUM OF UNDERSTANDING BETWEEN THE NUCLEAR
     REGULATORY COMMISSION AND THE DEPARTMENT OF ENERGY
                              
                              
I. Introduction

The Department of Energy (DOE) and the Nuclear Regulatory Commission
(NRC), in recognition of a mutual commitment to the effective and
efficient protection of the public health and safety and the
environment, have developed this Memorandum of Understanding
(hereinafter referred to as agreement) in order to establish a basic
framework within which DOE and NRC will endeavor to resolve issues of
concern to either agency that relate to the regulation of nuclear
facilities, projects, and activities, involved in the production of
tritium, as described in this agreement.

Tritium, an essential material in U.S. nuclear weapons, decays at a
rate of approximately five percent per year (a 12.3-year half-life).
The U.S. is not currently producing tritium. Resumption of tritium
production will be essential for maintaining the U.S. nuclear weapons
stockpile and the U.S. nuclear deterrent.

DOE distributed its "Tritium Supply and Recycling Programmatic
Environmental Impact Statement" in October 1995 in which it announced
its preferred "dual path" strategy for acquiring a new supply of
tritium. That strategy is to begin work on two production alternatives:
(1) to procure an option or options to purchase or lease existing
commercial light-water reactors (CLWRs) or procure CLWR irradiation
services for tritium production and (2) to design, build, and test
critical components of an accelerator-produced tritium (APT) system for
tritium production. A decision to implement the DOE's preferred dual
path strategy for tritium production, based upon the Programmatic
Environmental Impact Statement and related cost, schedule, and
technical analyses, was announced in a Record of Decision issued on
December 5, 1995.

During the next three years, DOE will be undertaking the research and
analyses necessary to provide the technical, economic, and regulatory
bases for the selection of the primary and backup technology approaches
by 1998. However, regardless of whether the commercial reactor option
is selected as the primary approach for tritium production, DOE intends
to complete confirmatory testing, fabricate the first core load of
targets, and develop a new extraction capability as a contingency to
meet national defense requirements.
.The production of tritium in CLWRs presents a range of technical,
regulatory, and policy issues. DOE is pursuing resolution of many of
the technical issues in its design and testing of a target assembly for
tritium production. The use of this target in CLWRs for tritium
production will likely require NRC's approval. Issues concerning the
NRC's licensing and related regulatory authority over DOE and its
contractors must be addressed if DOE opts to purchase an existing or a
partially completed commercial reactor. Selection by DOE of this
option, or of other options, may require amendment of the Atomic Energy
Act of 1954 and the implementing NRC regulations.

The use of existing CLWRs is subject to an additional set of issues
concerning the use of civilian commercial reactors for purposes that
support military requirements. The manner in which these concerns are
resolved and a final determination on the mode of tritium production
chosen will not involve NRC technical or policy review and is not a
subject of this agreement. Commercial arrangements with prospective
CLWRs are also not a subject of this agreement. National strategic
policy considerations may involve matters beyond the scope of this
agreement; nothing in this agreement is intended to preclude such
considerations. Matters beyond the scope of this agreement that affect
the NRC will require the Commission's approval.

II. Authority

Section 91 of the Atomic Energy Act of 1954, as amended, Sections
102(g) and 104(d) of the Energy Reorganization Act of 1974, and Section
301 (a) of the Department of Energy Organization Act of 1977, authorize
DOE to engage in the development of atomic weapons and the production
of nuclear materials needed for such weapons. Sections 53, 57, 63, 81,
103, 104, and 161b. of the Atomic Energy Act of 1954, as amended,
authorize NRC to regulate by rules, orders, standards, and instructions
any persons possessing and using production or utilization facilities,
special nuclear material, source material, and byproduct material for
the purpose of promoting the common defense and security and protecting
health or minimizing danger to life or property. The DOE-NRC Memorandum
of Understanding of February 24, 1978, establishes an overall
management policy with regard to interagency relationships in the
conduct of research programs and related areas and includes within its
scope those guidelines governing DOE work performed by NRC. This
agreement is entered into pursuant to these and other applicable
authorities, including the Economy Act of 1932.

III. Purpose

The purpose of this agreement is to establish the basis for review and
consultation by NRC with respect to DOE's possible acquisition of
CLWRs, or acquisition of irradiation services from CLWRs, for the
production of tritium.

                                   2
                                    .IV. Agreements Between the Parties  

A. General

1. NRC and DOE will promote the timely and orderly completion of
projects undertaken pursuant to this memorandum with due regard for the
public health and safety, protection of the environment, and the common
defense and security. Essential to this timely and orderly completion
is a relationship between the agencies marked by open and candid
communications at all levels and prompt resolution of any issues that
may arise.

2. NRC agrees to use available DOE information and reports and to
comply with DOE administrative requirements for handling such
information to the maximum extent practicable. DOE will, however,
provide NRC such additional information as NRC may require to identify
issues related to the public health and safety and protection of the
environment that may be presented by the project. Project information
or reports submitted under this agreement by DOE to NRC for review,
comments provided by NRC to DOE in response thereto, and other
information that is part of the official record generally shall be
available for public inspection, with exceptions as specified in NRC
regulations.

3. NRC and DOE recognize the importance of providing timely and
accurate information to the public regarding projects, activities, and
regulatory decisions that may affect the public health and safety and
protection of the environment. Meetings between NRC and DOE staff in
connection with project activities that pertain to specific regulatory
decisions or actions shall be governed by the NRC's policy on open
meetings (59 FR 48340; September 20, 1994).

4. Each agency also recognizes that it will be responsible for the
safeguarding, control of, and accounting for classified, proprietary,
and procurement-sensitive information used or otherwise furnished in
connection with projects in accordance with its established procedures.

5. Committees such as the Advisory Committee on Reactor Safeguards and
the Advisory Committee on Nuclear Waste for NRC and the Defense Nuclear
Facilities Safety Board for DOE provide independent review of their
respective agency's facilities, safety studies, and related matters. If
necessary, NRC and DOE agree to support these independent reviews by
providing information or briefings related to their respective areas of
responsibilities.

                                   3
                                    .6. The principal senior management contacts for this agreement will be
the Director, Division of Reactor Program Management, Office of Nuclear
Reactor Regulation, NRC, and the Director of the Commercial Light Water
Reactors Project, DOE. These individuals may designate appropriate
staff representatives for the purpose of administering this agreement.
Identification of these contacts is not intended to restrict
communication between DOE and NRC staff members on routine technical
consultation and other day-to-day activities.

B. Planning and Reimbursement of Costs

1. NRC and DOE will cooperate in long-range planning so as to ensure
that both agencies anticipate the magnitude of funding, the allocation
of resources, and the timing of events necessary to conduct interagency
projects. Consultations and information exchanges between NRC and DOE
on long-range planning activities and other normal functions are
generally not subject to reimbursement.

2. Specific project activities in which DOE requests that NRC review,
consult on, or comment upon to identify issues related to public health
and safety, occupational safety, and protection of the environment are
generally subject to reimbursement at full agency costs from DOE in
accordance with established NRC regulations, policies, and procedures
on reimbursement for work performed for other Federal agencies.

3. The details of the levels of support to be furnished to one
organization by the other with respect to funding will be developed in
specific interagency agreements or other agreements, subject to the
availability of funds. This agreement shall not be used to obligate or
commit funds or as the basis for the transfer of funds. DOE and NRC
will provide each other mutual support in budget justification to the
Office of Management and Budget and hearings before the Congress with
respect to programs on which the organizations collaborate.

C. Preliminary Phase Activities

1. NRC will assist DOE in assessing and resolving technical and
licensing issues (including physical security, security clearance, and
environmental issues) in order to support a Secretarial decision on the
primary and backup tritium production approaches within three years.

2. The production of tritium under an existing commercial license will
require DOE and NRC to develop mechanisms to ensure that national
defense production requirements will not affect the regulation,
including plant shutdown for safety reasons, of the facilities.

                                   4
                                    .3. NRC and DOE will work together to develop a reimbursable agreement
for the full agency cost for NRC to conduct this work in accordance
with NRC administrative procedures. Reimbursement will be required to
the extent that such resources are not appropriated to the NRC for this
work. Additionally, a project level schedule will be jointly developed
to implement required preapplication phase activities.   

D. Target Topical Report Phase Activities

1. As the project continues and more precise information is developed,
DOE may submit for the NRC staff's review and approval a topical report
describing detailed technical and licensing requirements for the use of
a target tritium production assembly in a CLWR. A revised or new
reimbursable agreement, as well as a project level schedule, will be
jointly developed at that time. Reimbursement will be required to the
extent that such resources are not appropriated to the NRC for this
work.

2. DOE acknowledges that the NRC staff's approval of any topical report
is not binding on an Atomic Safety and Licensing Board or the
Commission in the event any aspect of the topical report is challenged
in an administrative adjudication.

E. Acquisition Phase Activities

Tritium production in CLWRs is likely to require licensing action by
NRC, including safety analysis and environmental review. As specific
options are chosen, NRC and DOE will cooperate in planning and
completing these activities in accordance with applicable licensing
procedures.

V. Other Provisions

1. Nothing in this agreement shall limit the authority of either agency
to independently exercise its authority with regard to matters that are
the subject of this agreement.

2. Nothing in this agreement shall be deemed to establish any right or
provide a basis for any action, either legal or equitable, by any
person or class of persons challenging a Government action or a failure
to act.

                                   5
                                    .3. This agreement shall be effective upon signature of both parties and
will remain in effect until terminated by mutual agreement or by the
written notice of either party submitted six months in advance of
termination. Amendments or modifications to this agreement may be made
upon the written agreement of the parties.





DOE Approved:                       NRC Approved:


  
Hazel R. O'Leary                    Shirley A. Jackson
Secretary                           Chairman
Department of Energy                U.S. Nuclear Regulatory Commission


5/22/96                             May 22, 1996       
Date                                Date