1. 1 Material Control and Accounting (MC&A) Licensing and Planned Rulemaking Activities at NRC Tom Pham – NRC NMMSS Users Annual Training Meeting Denver, CO – May 21, 2009

2. 2 Overview MC&A Licensing Activities MC&A Rulemaking Activities

3. 3 MC&A Licensing Review Shaw AREVA Mixed-Oxide (MOX) Services Louisiana Energy Services (LES) U.S. Enrichment Corporation (USEC) AREVA Enrichment Services GE-Hitachi Global Laser Enrichment

4. 4 MC&A Licensing Review MOX Fuel Fabrication Facility –Aiken, South Carolina –Operations license application –NRC Review of submitted Fundamental Nuclear Material Control (FNMC) Plan –Operation/Production: anticipated 2014-16

5. 5 MC&A Licensing Review LES National Enrichment Facility –Eunice, New Mexico –Operations license issued: June 2006 –Hot Acceptance Testing: 2009 –FNMC Plan Revision –Operation/Production: anticipated late 2009 (first enrichment cascade)

6. 6 MC&A Licensing Review USEC American Centrifuge Plant –Portsmouth, Ohio –Operations license issued: April 2007 –Feed and Withdrawal System Design License Amendment: 2009 –Operation/Production: anticipated late 2010 (first enrichment cascade)

7. 7 MC&A Licensing Review AREVA Eagle Rock Enrichment Facility –Bonneville County, Idaho –FNMC Plan submittal: December 2008 –FNMC Plan revision for facility’s throughput expansion: April 2009 –Issuance of license: anticipated 2011

8. 8 MC&A Licensing Review GE-Hitachi Global Laser Enrichment Facility –Wilmington, North Carolina –Operations application submittal: 2009 –Issuance of license: anticipated 2012

9. 9 Planned MC&A Rulemaking April 25, 2008: SECY-08-0059 – Rulemaking Plan Part 74 – MC&A of SNM February 5, 2009: Staff Requirements Memorandum –Commission selected Option 4: Rulemaking limited to revising and consolidating current MC&A regulations in Part 74 –Commission directed staff to integrate other options in SECY-08-0059 into the regulatory framework for reprocessing facilities

10. 10 Planned MC&A Rulemaking Part 74 rulemaking schedule: –Technical basis for the rulemaking: March 2010 –Proposed rule and public comments: April 2011 –Final rule and guidance documents: April 2012

11. 11 Planned MC&A Rulemaking Revision of Part 74 regulations proposed: –Relocation of Part 72 (spent nuclear fuel) –Revision of Subpart B – General Provisions to include general performance objectives and basic system capabilities applicable to all licensed SNM facilities –Revision and addition of definition terms (e.g., MC&A, item, receipt, material balance area, physical inventory, waste, etc.)

12. 12 Planned MC&A Rulemaking Revision of Part 74 regulations proposed (continued): –Revision and/or elimination of current MC&A exemptions (e.g., reprocessing facilities from Category I requirements, 500-gram item control for Category III facilities) –Addition of the two-person rule (complementary to Part 73 requirements) –Revision and enhancement of the tamper-indicating device (seal) program –Other miscellaneous changes/revisions

13. 13 Planned MC&A Rulemaking Revision of 14 Regulatory Guides Series 5 (destructive & nondestructive measurements for uranium and plutonium, MC&A statistics, holdup material management, TIDs) Revision of MC&A NUREG guidance documents: –NUREG-1280 for Category I facilities –NUREG-xxxx for Category II facilities –NUREG-1065 for Category III facilities –NUREG/CR-5734 for Enrichment facilities –NUREG/BR-0096 for NRC Form 327

14. 14 Proposed MC&A Regulation Changes MC&A consideration in the regulatory framework for: –Reprocessing facilities (ongoing) –Part 73 Physical Protection rulemaking (Summer 2009) Outstanding options in SECY-08-0059: –NRC SNM Categorization Table (modified threshold values, attractiveness levels, material subcategories and graded requirements, radioactive materials) –Diversion Path Analysis (conceivable and credible diversion paths & mitigating measures for a detection and response program)

15. 15 Questions & Answers