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Rule2026-20336

Exemptions From Materials Licensing

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Published
October 5, 2026
Effective
December 21, 2026

Issuing agencies

Nuclear Regulatory Commission

Abstract

The U.S. Nuclear Regulatory Commission (NRC) is amending several regulations for byproduct, source, and special nuclear material by expanding how certain nuclear material can be safely used without a license. This action is responsive to the NRC's mission to enable safe, efficient, and reliable licensing and consistent with several Executive orders. These changes are deregulatory in nature, eliminating the need to obtain licenses for certain materials uses and quantities.

Full Text

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<title>Federal Register, Volume 91 Issue 191 (Monday, October 5, 2026)</title>
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[Federal Register Volume 91, Number 191 (Monday, October 5, 2026)]
[Rules and Regulations]
[Pages 63133-63146]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20336]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 91, No. 191 / Monday, October 5, 2026 / Rules 
and Regulations

[[Page 63133]]



NUCLEAR REGULATORY COMMISSION

10 CFR Parts 20, 30, 40, and 70

[NRC-2025-1568]
RIN 3150-AL61


Exemptions From Materials Licensing

AGENCY: Nuclear Regulatory Commission.

ACTION: Direct final rule.

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

SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is amending 
several regulations for byproduct, source, and special nuclear material 
by expanding how certain nuclear material can be safely used without a 
license. This action is responsive to the NRC's mission to enable safe, 
efficient, and reliable licensing and consistent with several Executive 
orders. These changes are deregulatory in nature, eliminating the need 
to obtain licenses for certain materials uses and quantities.

DATES: This direct final rule is effective December 21, 2026, unless 
significant adverse comments are received by November 4, 2026. If this 
direct final rule is withdrawn as a result of such comments, timely 
notice of the withdrawal will be published in the Federal Register. 
Comments received on this direct final rule will also be considered to 
be comments on a companion proposed rule published in the Proposed 
Rules section of this issue of the Federal Register.

ADDRESSES: Please refer to Docket ID NRC-2025-1568 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:
    <bullet> Federal Rulemaking Website: Electronically at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Search for Docket ID NRC-2025-1568. Address 
questions about NRC dockets to Helen Chang; telephone: 301-415-3228; 
email: <a href="/cdn-cgi/l/email-protection#d098b5bcb5befe93b8b1beb790bea2b3feb7bfa6"><span class="__cf_email__" data-cfemail="49012c252c27670a2128272e09273b2a672e263f">[email&#160;protected]</span></a>. For technical questions, contact the 
individual listed in the FOR FURTHER INFORMATION CONTACT section of 
this document.
    <bullet> NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly available documents online in the 
ADAMS Public Documents collection at <a href="https://www.nrc.gov/reading-rm/adams.html">https://www.nrc.gov/reading-rm/adams.html</a>. To begin the search, select ``Begin ADAMS Public Search.'' 
For problems with ADAMS, please contact the NRC's Public Document Room 
(PDR) reference staff at 1-800-397-4209, at 301-415-4737, or by email 
to <a href="/cdn-cgi/l/email-protection#732337215d2116001c06011016331d01105d141c05"><span class="__cf_email__" data-cfemail="18485c4a364a7d6b776d6a7b7d58766a7b367f776e">[email&#160;protected]</span></a>. For the convenience of the reader, 
instructions about obtaining materials referenced in this document are 
provided in the ``Availability of Documents'' section.
    <bullet> NRC's PDR: The PDR, where you may examine and order copies 
of publicly available documents, is open by appointment. To make an 
appointment to visit the PDR, please send an email to 
<a href="/cdn-cgi/l/email-protection#da8a9e88f488bfa9b5afa8b9bf9ab4a8b9f4bdb5ac"><span class="__cf_email__" data-cfemail="48180c1a661a2d3b273d3a2b2d08263a2b662f273e">[email&#160;protected]</span></a> or call 1-800-397-4209 or 301-415-4737, between 8 
a.m. and 4 p.m. eastern time, Monday through Friday, except Federal 
holidays.

FOR FURTHER INFORMATION CONTACT: Denise Edwards, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-
7204, email: <a href="/cdn-cgi/l/email-protection#a4e0c1cacdd7c18ae1c0d3c5d6c0d7e4cad6c78ac3cbd2"><span class="__cf_email__" data-cfemail="fcb89992958f99d2b9988b9d8e988fbc928e9fd29b938a">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Obtaining Information and Submitting Comments
    A. Obtaining Information
    B. Submitting Comments
II. Executive Order 14300: Ordering the Reform of the Nuclear 
Regulatory Commission
III. Rulemaking Procedure
IV. Background
V. Discussion
    A. Expanding Exemptions for Byproduct Material
    B. Expanding Exemptions for Department of Energy (DOE) 
Contractors
VI. Regulatory Flexibility Certification
VII. Regulatory Analysis
    A. Need for the Rule
    B. Analytical Framework
    C. Estimated Costs and Savings of the Direct Final Rule
VIII. Backfitting and Issue Finality
IX. Plain Writing
X. National Environmental Policy Act
XI. Paperwork Reduction Act
XII. Executive Orders
    A. Executive Order 12866: Regulatory Planning and Review (as 
Amended by Executive Order 14215, Ensuring Accountability for All 
Agencies)
    B. Executive Order 14192: Unleashing Prosperity Through 
Deregulation
    C. Executive Order 14267: Reducing Anti-Competitive Regulatory 
Barriers
XIII. Congressional Review Act
XIV. Coordination With NRC Agreement States
XV. Compatibility of Agreement State Regulations
XVI. Voluntary Consensus Standards
XVII. Availability of Guidance
XVIII. Availability of Documents

I. Obtaining Information and Submitting Comments

A. Obtaining Information

    Please refer to Docket ID NRC-2025-1568 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:
    <bullet> Federal Rulemaking Website: Go to <a href="https://www.regulations.gov">https://www.regulations.gov</a> and search for Docket ID NRC-2025-1568.
    <bullet> NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly available documents online in the 
ADAMS Public Documents collection at <a href="https://www.nrc.gov/reading-rm/adams.html">https://www.nrc.gov/reading-rm/adams.html</a>. To begin the search, select ``Begin ADAMS Public 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 
<a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="c8b8acbae6baadbba7bdbaabad88a6baabe6afa7be">[email&#160;protected]</a>. For the convenience of the reader, instructions 
about obtaining materials referenced in this document are provided in 
the ``Availability of Documents'' section.
    <bullet> NRC's PDR: The NRC Public Document Room (PDR), where you 
may examine and order copies of publicly available documents, is open 
by appointment. To make an appointment to visit the PDR, please send an 
email to <a href="/cdn-cgi/l/email-protection#d1819583ff83b4a2bea4a3b2b491bfa3b2ffb6bea7"><span class="__cf_email__" data-cfemail="adfde9ff83ffc8dec2d8dfcec8edc3dfce83cac2db">[email&#160;protected]</span></a> or call 1-800-397-4209 or 301-415-4737, 
between 8 a.m. and 4 p.m. eastern time, Monday through Friday, except 
Federal holidays.

B. Submitting Comments

    Comments must be submitted electronically using <a href="https://www.regulations.gov">https://www.regulations.gov</a> no later than 11:59 p.m. eastern time on November 
4, 2026. Please include Docket ID NRC-2025-1568 in your comment 
submission.

[[Page 63134]]

    The NRC cautions you not to include identifying or contact 
information that you do not want to be publicly disclosed in your 
comment submission. The NRC will post all comment submissions at 
<a href="https://www.regulations.gov">https://www.regulations.gov</a> as well as enter the comment submissions 
into ADAMS. The NRC does not routinely edit comment submissions to 
remove identifying or contact information.
    If you are requesting or aggregating comments from other persons 
for submission to the NRC, then you should inform those persons not to 
include identifying or contact information that they do not want to be 
publicly disclosed in their comment submission. Your request should 
state that the NRC does not routinely edit comment submissions to 
remove such information before making the comment submissions available 
to the public or entering the comment into ADAMS.

II. Executive Order 14300: Ordering the Reform of the Nuclear 
Regulatory Commission

    On May 23, 2025, President Donald J. Trump signed Executive Order 
(E.O.) 14300, ``Ordering the Reform of the Nuclear Regulatory 
Commission.'' Section 5, ``Reforming and Modernizing the NRC's 
Regulations,'' directs the NRC to undertake a review and wholesale 
revision of its regulations and guidance documents as guided by the 
policies set forth in section 2 of the E.O. This rulemaking is part of 
the NRC's response to the direction in Section 5 of the E.O. because in 
conducing the wholesale review of its regulation, the NRC reexamined 
the regulations pertaining to the use of certain nuclear material 
without a license.

III. Rulemaking Procedure

    Because the NRC considers this action to be noncontroversial, the 
NRC is using the ``direct final rule procedure'' for this rule. This 
amendment is effective on December 21, 2026. However, if the NRC 
receives significant adverse comments on this direct final rule by 
November 4, 2026, then the NRC will publish a document that withdraws 
this action and will address the comments received in a subsequent 
final rule as a response to the companion proposed rule published in 
the Proposed Rules section of this issue of the Federal Register. 
Absent significant modifications to the proposed revisions requiring 
republication, the NRC will not initiate a second comment period on 
this action.
    A significant adverse comment is a comment where the commenter 
explains why the rule would be inappropriate, including challenges to 
the rule's underlying premise or approach, or would be ineffective or 
unacceptable without a change. A comment is adverse and significant if:
    (1) The comment opposes the rule and provides a reason sufficient 
to require a substantive response in a notice-and-comment process. For 
example, a substantive response is required when:
    (a) The comment causes the NRC to reevaluate (or reconsider) its 
position or conduct additional analysis;
    (b) The comment raises an issue serious enough to warrant a 
substantive response to clarify or complete the record; or
    (c) The comment raises a relevant issue that was not previously 
addressed or considered by the NRC.
    (2) The comment proposes a change or an addition to the rule, and 
it is apparent that the rule would be ineffective or unacceptable 
without incorporation of the change or addition.
    (3) The comment causes the NRC to make a change (other than 
editorial) to the rule.
    For detailed instructions on filing comments, please see the 
ADDRESSES section of this document.

IV. Background

    This rulemaking (1) amends the regulations pertaining to quantities 
of byproduct material that are exempt from licensing in title 10 of the 
Code of Federal Regulations (10 CFR) part 30, ``Rules of General 
Applicability to Domestic Licensing of Byproduct Material,'' 
specifically Sec.  30.71 (``Schedule B''); and (2) expands the 
exemptions from licensing for Department of Energy (DOE) contractors. 
Exemptions for DOE contractors are in part 30, and also in 10 CFR part 
40, ``Domestic Licensing of Source Material''; and 10 CFR part 70, 
``Domestic Licensing of Special Nuclear Material,'' specifically 
Sec. Sec.  30.12, 40.11, and 70.11. The NRC has authority to issue 
licenses to persons for the use of radioactive material under the 
Atomic Energy Act of 1954, as amended (AEA). With respect to the 
revision to Schedule B, the exempt quantities of byproduct material, 
under section 81 of the AEA, the NRC also has authority to exempt 
certain classes or quantities of byproduct material from the 
requirements for a license. In considering its exemptions from 
licensing, the NRC is directed by the AEA to make a finding that the 
exemption of such classes or quantities of such material or such kinds 
of uses or users will not constitute an unreasonable risk to the common 
defense and security and to the health and safety of the public. 
Consistent with this direction, the NRC has defined limits for such 
material by quantity (mass), radioactivity (activity), the material's 
use, the person using the material, or a combination thereof.
    The NRC has identified its regulations for exempt quantities in 
Schedule B as an area for regulatory improvement. Exempt quantity 
limits for exempt use in Schedule B were identical to other quantity 
limits in the NRC's radiation protection regulations in 10 CFR part 20 
until it was revised in 1991 (56 FR 23360; May 21, 1991). The NRC 
published changes to 10 CFR part 20 to reflect the adoption of 
recommendations of the International Commission on Radiation Protection 
(ICRP) Publication Nos. 26 and 30. At the time, the values in Schedule 
B were not revised because conformity was not considered essential when 
10 CFR part 20 was updated. In June 2001, the NRC conducted a technical 
evaluation of its exemptions, published in NUREG-1717, ``Systematic 
Radiological Assessment of Exemptions for Source and Byproduct 
Materials.'' This evaluation concluded that providing a cross-reference 
to appendix C to 10 CFR part 20 continues to ensure reasonable 
assurance of adequate protection of public health and safety. Further 
changes were made due to the Energy Policy Act of 2005, which added 
additional byproduct material to the NRC's jurisdiction. Schedule B was 
partially updated in a final rule, ``Requirements for Expanded 
Definition of Byproduct Material; Final Rule'' (72 FR 55864; October 1, 
2007) to include radionuclides that were commonly used at that time. 
More recently, the NRC has received information that expanding the use 
of byproduct material under exemption should be pursued, following a 
comment letter from National Institutes of Health, dated December 15, 
2020.
    Next, based on licensing experience, the NRC also has identified 
its regulations granting exemptions to DOE contractors as an area for 
regulatory improvement. These regulations for byproduct, source, and 
special nuclear material are addressed in Sec. Sec.  30.12, 40.11, and 
70.11, respectively. Almost identical versions of these regulations 
have been in place since the existence of the Atomic Energy Commission 
(AEC), when the AEC reviewed its contractor activities for exemption 
(see e.g., 16 FR 3251; April 13, 1951; 21 FR 213; January 11, 1956; 29 
FR 14401; October 20, 1964). When the AEC was reorganized in 1975, the 
NRC retained the responsibility to perform the review of the exemption 
requests for DOE

[[Page 63135]]

contractors working in areas subject to the jurisdiction of the NRC.

V. Discussion

    The NRC is amending its regulations in this rule to expand how 
byproduct material can be safely used without a license and expand 
exemptions from licensing for certain activities of DOE contractors.
    As discussed in the ``Background'' section, these long-standing 
exemptions both for exempt quantities of byproduct material in Schedule 
B and the exemptions for DOE contractors have only been slightly 
changed in the past decades. Since their promulgation, from time to 
time the NRC has evaluated exempt material use to ensure that the 
limits are still protective of health and safety. On its own 
initiative, the NRC has also performed technical evaluations of 
Schedule B, examining if higher quantity or activity limits would still 
provide adequate protection of health and safety, common defense and 
security, and the environment. A comprehensive technical evaluation was 
published in ``Systematic Radiological Assessment of Exemptions for 
Source and Byproduct Materials'' (NUREG-1717, June 2001), which 
supports the quantity and activity limits established in revised 
Schedule B. That evaluation demonstrated that the quantity and activity 
limits in revised Schedule B present such low risk, even in 
conservative misuse scenarios, that regulation would not meaningfully 
improve safety. Further, the revised Schedule B more closely aligns the 
NRC's labeling and licensing requirements by matching the quantities of 
materials that are exempt from licensing under 10 CFR part 30 with 
those that are exempt from labelling under 10 CFR part 20 with limited 
exceptions.
    With respect to the exemptions for DOE contractors, the NRC has 
reviewed exemption requests it has received and approved from its 
licensees and from the DOE in order to assess what limits would ensure 
safe use of radioactive material exempt from the licensing process.
    Overall, these amendments will provide greater regulatory 
flexibility, thereby accomplishing the goals of E.O. 14300 while 
ensuring safety. The following discussion elaborates on these points, 
organized by subject area.

A. Expanding Exemptions for Byproduct Material

    This rule amends the NRC's regulations in Schedule B to include all 
the radionuclides that are widely used by researchers and in academic, 
industrial, and medical settings. Without this update, individuals who 
use and possess radionuclides not included in the existing Schedule B 
list must continue to apply for a specific license where one is not 
needed to ensure reasonable assurance of adequate protection of public 
health and safety. Therefore, the NRC is replacing the current Schedule 
B with a reference to appendix C to 10 CFR part 20 and a clarifying 
footnote that the quantities listed are also used in 10 CFR part 30 to 
define quantities exempt from licensing. The limits in Schedule B are 
referred to elsewhere in regulations as ``exempt quantities''; however, 
Schedule B limits are published in terms of activity, as are the values 
in appendix C to part 20. The majority of the exempt quantity 
thresholds specifically listed in the current Schedule B match values 
contained in appendix C to 10 CFR part 20. This will expand 
radionuclides that are currently not listed in Schedule B, will update 
the quantities of existing radionuclides on the table based on the 
latest safety data, and will ensure that persons currently exempt from 
requiring a license continue to be exempt.
    This change updates the activities of byproduct material for which 
possession is exempt from the requirement for a specific license. This 
rulemaking ensures exempt quantity thresholds are tied to risks 
associated with the radionuclide as appendix C to 10 CFR part 20 is 
developed based on NRC risk modules. The change saves resources for 
individuals who use low-risk quantities of certain radionuclides 
identified in appendix C to 10 CFR part 20 as it removes the need to 
get a specific license. It also saves resources for NRC and Agreement 
States to review specific license applications and conduct inspections.
    The quantities for three radionuclides specifically listed in Sec.  
30.71 (cadmium-109, iridium-192, and zirconium-93) have lower values (1 
[micro]Ci, 37 kilobecquerel) in appendix C to 10 CFR part 20 than 
currently contained in 10 CFR 30.71 (10 [micro]Ci). If the values for 
these radionuclides are replaced by the values in appendix C to 10 CFR 
part 20, the exempt quantity threshold for these radionuclides will 
decrease. Additionally, the current exempt quantity of any byproduct 
materials other than alpha emitting byproduct material not listed in 
Sec.  30.71 is 0.1 [micro]Ci, which is equal to the smallest exempt 
quantity listed. Since the smallest quantity in appendix C to 10 CFR 
part 20 is 0.001 [micro]Ci and the quantity for any radionuclide other 
than alpha emitting radionuclides not listed in appendix C to 10 CFR 
part 20 is 0.01 [micro]Ci, radionuclides not listed in Sec.  30.71 
could have their exempt quantity reduced if not listed in appendix C to 
10 CFR part 20 or if they are listed in appendix C to 10 CFR part 20 
with a quantity lower than 0.1 [micro]Ci. These situations could 
require individuals to obtain a specific license when they are 
currently exempt from that requirement. To avoid this the NRC is 
including in the rule language exceptions retaining the current exempt 
quantities for the three specified radionuclides and any byproduct 
material other than alpha emitting byproduct material for which the 
quantity in appendix C to 10 CFR part 20 is lower than 0.1 [micro]Ci.
    This rulemaking modernizes the exempt quantity thresholds by 
effectively adding values for widely used radionuclides in medical, 
academic, and industrial applications not previously exempted and 
updating certain thresholds based on updated scientific and safety 
information. This rulemaking also reduces the number of specific 
licenses that nuclear materials users must apply for due to the exempt 
quantities in the current Schedule B.

B. Expanding Exemptions for Department of Energy (DOE) Contractors

    Since September 11, 2001, DOE contractors have routinely provided 
training involving radioactive materials to law enforcement personnel 
and first responders at the Federal, state, and local levels. Whenever 
these training activities take place outside a Federal government-owned 
or controlled site, the DOE contractor must obtain an exemption from 
the NRC (and Agreement State, if applicable) to perform the activity. 
This rule updates the NRC's regulations in Sec. Sec.  30.12, 40.11, and 
70.11 so that DOE contractors will no longer need to request specific 
exemptions individually. Instead, the rule would grant a standing 
exemption for temporary training activities involving law enforcement 
emergency response, and similar personnel, provided the radioactive 
materials used fall below specified quantity limits. Once Agreement 
States adopt the rule, these exemptions would apply within their 
jurisdictions as well. The rule establishes explicit quantity 
thresholds, confines the exemptions to temporary training activities, 
and ensures the continued use of appropriate safety procedures. This 
approach increases efficiency and reduces administrative workload for 
NRC, Agreement States, and DOE contractors by eliminating repeated 
reviews of training activities that have already demonstrated a 
consistent safety record under DOE oversight.

[[Page 63136]]

    These radioactive materials are used in accordance with DOE's 
occupational radiation protection program in 10 CFR part 835, which is 
similar to the NRC's radiation protection program in 10 CFR part 20 and 
provides protection of public health and safety and security controls. 
The DOE contractors typically conduct multiple training activities and 
exercises each year, submitting multiple, nearly identical, exemption 
requests. These training activities generally involve quantities of 
radioactive material which do not require additional security controls 
beyond 10 CFR part 20 requirements. In limited cases, the NRC has 
approved exemptions involving quantities that fall under security 
requirements under 10 CFR part 37, ``Physical Protection of Category 1 
and Category 2 Quantities of Radioactive Material.''
    In assessing how to structure the new exemptions, the NRC staff 
reviewed years of past case-by-case exemption approvals. Since 2001, 
the NRC has consistently evaluated these exemption requests without 
identifying any safety issues. The DOE already regulates similar 
radioactive materials under its jurisdiction and typically only seeks 
NRC and Agreement State exemptions when training occurs outside DOE 
controlled sites. The DOE also maintains emergency response procedures 
that address work performed in NRC or Agreement State jurisdictions and 
includes processes for notification in the event of abnormal 
conditions. Historically, the NRC has considered these procedures when 
reviewing exemption requests.
    Therefore, considering DOE's history of safe oversight of these 
activities and the continued involvement of the NRC or Agreement States 
in the event of an abnormal condition, the NRC staff believe there is a 
low safety risk associated with providing the exemptions for certain 
quantities of material that are typically used in these training 
exercises. Additionally, the NRC staff do not believe additional 
notification is required outside of existing notifications during 
abnormal conditions.
    When DOE training is conducted in Agreement States, the NRC has 
performed the review and provided the Agreement State opportunity to 
comment. The quantity limits now being codified reflect these past 
approvals and were validated with DOE during this rule's development. 
To ensure consistency across the National Materials Program, Agreement 
States need to adopt compatible regulations so that DOE contractors 
receive the same exemptions nationwide.
    In addition to the changes made to the regulations for byproduct, 
source, and special nuclear material exemptions, the NRC is making 
administrative clarifications to Sec. Sec.  30.12, 40.11, and 70.11. 
These revisions enumerate the DOE contractor exemptions more clearly, 
replacing language that was previously ambiguous and could cause 
confusion once the expanded exemptions take effect. These 
administrative edits do not change any existing exemptions. They 
improve clarity so the expanded rule can be implemented without 
misinterpretation.

VI. Regulatory Flexibility Analysis

    The Regulatory Flexibility Act, as amended at 5 U.S.C. 601 et seq., 
requires that agencies consider the impact of their rulemakings on 
small entities and, consistent with applicable statutes, consider 
alternatives to minimize these impacts on the businesses, 
organizations, and government jurisdictions to which they apply.
    The NRC has established standards for determining which of its 
licensees qualify as small entities pursuant to 10 CFR 2.810, ``NRC 
size standards.'' These standards are based on the Small Business 
Administration's most common receipt-based size standards and provide 
for business concerns that are manufacturing entities, with the use of 
a criteria of less than 500 employees.
    The Small Business Regulatory Enforcement Fairness Act requires 
that the NRC prepare a written compliance guide to assist small 
entities in complying with each rule for which a regulatory flexibility 
analysis is prepared. Because this direct final rule is deregulatory 
and does not impose new requirements on small entities, the NRC does 
not expect to prepare a compliance guide under this Act.
    This direct final rule reduces regulatory burden and results in 
cost savings compared to maintaining the current requirements. Aligning 
Sec.  30.71 (Schedule B) with appendix C to 10 CFR part 20 will 
increase the number of radionuclides eligible for exemption and will 
raise quantity thresholds for certain radionuclides. These changes 
allow small entities, such as universities, research institutions, and 
small businesses, to use a broader range of radionuclides without a 
specific license, provided the quantities remain below the quantity 
limits.
    This rule also updates Sec. Sec.  30.12, 40.11, and 70.11 to add 
exemptions for DOE contractors conducting temporary training activities 
with byproduct, source, and special nuclear material under specific, 
previously approved quantities. Under the current regulations, DOE must 
request case-by-case exemptions from the NRC and Agreement States for 
these activities when performed in NRC and Agreement State 
jurisdiction. These exemptions eliminate the need for repeated 
exemption requests on a case-by-case basis, provided DOE contractors 
meet the conditions specified in these sections. This change reduces 
administrative burden for DOE, NRC, and Agreement States while 
maintaining oversight and public protection.
    Overall, this rule benefits small entities and DOE contractors by 
streamlining licensing and exemption processes, saving time and costs, 
and improving efficiency without compromising health and safety. The 
Commission certifies that this deregulatory rule does not have a 
significant impact on a substantial number of small entities.

VII. Regulatory Analysis

    This regulatory analysis is prepared in accordance with E.O. 12866, 
``Regulatory Planning and Review,'' and E.O. 14215, ``Ensuring 
Accountability for All Agencies.'' E.O. 14215 requires all federal 
agencies, including the NRC, to comply with E.O. 12866 and submit 
significant actions for Office of Information and Regulatory Affairs 
(OIRA) review. The analysis assesses the costs and savings of the 
alternatives considered by the NRC and concludes that the deregulatory 
actions in this rule are expected to reduce regulatory burden and 
generate cost savings for licensees, the NRC, the Agreement States, and 
the DOE contractors when compared to the no-action baseline. The 
regulatory analysis is detailed in the following paragraphs of this 
document. Comments on the analysis may be submitted to the NRC as 
indicated under the ADDRESSES section of this document.

A. Need for the Rule

    The NRC was created by Congress in 1974 to ensure the safe use of 
radioactive materials for beneficial civilian purposes while protecting 
people and the environment. The NRC protects public health and safety 
and advances the nation's common defense and security by enabling the 
safe and secure use and deployment of civilian nuclear energy 
technologies and radioactive materials through efficient and reliable 
licensing, oversight, and regulation for the benefit of society and the 
environment. From an economic perspective, common defense and national 
security are public goods for

[[Page 63137]]

which the markets cannot maximize net benefits, and markets alone can 
sometimes create unintended impacts to public health and safety. 
Consistent with its statutory authority, NRC provides reasonable 
assurance of adequate protection of public health and safety.
    Section 5 of E.O. 14300 directs the NRC to undertake a review and 
wholesale revision of its regulations and guidance documents as guided 
by the policies set forth in section 2 of the E.O. This rulemaking is 
part of the NRC's response to the direction in Section 5 of the E.O. 
because in conducting the wholesale review of its regulation, the NRC 
reexamined the regulations pertaining to the use of certain nuclear 
material without a license and determined--based on past experience and 
practice--such uses can be expanded. Rulemaking is the most effective 
way to achieve this. Licensees may amend their current license for 
additional radionuclides; however, such amendments impose a cost on 
licensees and regulators without a proportionate benefit to public 
health and safety. Expanding the use of certain nuclear material 
without the need for a license also cannot be accomplished through 
guidance, as such guidance would conflict with the existing regulatory 
text. Therefore, amending the NRC's regulations is the most effective 
way to make this deregulatory change for all intended exempt uses.

B. Analytical Framework

    This analysis uses the current regulations under 10 CFR parts 30, 
40, and 70 as the no-action baseline (Alternative 1), evaluates the 
changes in this direct final rule as the regulatory alternative 
(Alternative 2), and estimates the costs and savings associated with 
implementing the rule.
    Alternative 2 will revise 10 CFR parts 30, 40, and 70 to modernize 
exempt quantity thresholds and add exemptions for DOE contractors 
conducting temporary training activities under specified quantities of 
radioactive material. Specifically, these amendments include aligning 
Sec.  30.71 (Schedule B) with appendix C to 10 CFR part 20, adding 
radionuclides widely used in research, industry, and medicine, and 
updating quantity thresholds based on current scientific and safety 
information. These changes will allow a broader range of radionuclides 
to be used without a specific license, provided the quantities remain 
below the updated exempt limits.
    The rule also will add exemptions for DOE contractors under 
Sec. Sec.  30.12, 40.11, and 70.11 to eliminate repeated case-by-case 
exemption requests for temporary training activities performed in NRC 
and Agreement State jurisdiction. These training activities have 
historically been completed safely under DOE oversight. Additionally, 
the DOE has routinely requested similar quantities of byproduct, 
source, and special nuclear material often resulting in nearly 
repetitive reviews and approvals by the NRC and Agreement States. This 
rule identifies maximum quantities of byproduct, source, and special 
nuclear material that qualify for exemptions based on the robust past 
history of approval and safe use. By removing unnecessary regulatory 
burden, these changes will improve efficiency, predictability, and 
flexibility while maintaining the NRC's mission of protecting public 
health and safety.
    The amendments include administrative updates, clarifications, and 
streamlined requirements that improve consistency and support 
regulatory efficiency. Overall, these changes address E.O. 14300, 
Section 5, by reducing administrative burdens for the NRC, Agreement 
States, licensees, and applicants while ensuring continued oversight 
and safety.
    To estimate the regulatory impact of this direct final rule, the 
NRC used input from NRC staff, internal data sources, and information 
provided by stakeholders. Where possible, the NRC provides quantitative 
estimates based on available data; where data are not available, the 
NRC relies on staff judgment to approximate the impact and level of 
effort involved.
    The analysis then monetizes the estimated time savings for NRC 
staff, Agreement State staff, licensees, and DOE contractors resulting 
from activities that will no longer be required under this rule. These 
savings include (1) avoided license applications and amendments for 
exempt quantities of radioactive material due to updates to Sec.  30.71 
(Schedule B) and (2) avoided case-by-case exemption requests for DOE 
contractors. Monetized savings are calculated by multiplying the 
estimated labor hours avoided by (1) licensees for preparing and 
submitting license applications and amendments, (2) DOE contractors for 
preparing exemption requests, and (3) NRC and Agreement State staff for 
reviewing these submissions, by the applicable wage rates.
    For NRC staff, the NRC uses its internal labor rate of $158 per 
hour.\1\ Wage rates for licensees and Agreement State staff are derived 
from U.S. Bureau of Labor Statistics (BLS) \2\ data and adjusted using 
the NRC's standard 2.4 multiplier to account for fringe benefits and 
overhead costs. Wage rates for DOE contractors are based on DOE-
provided data and reflect costs specific to DOE operations rather than 
BLS blended averages.
---------------------------------------------------------------------------

    \1\ This NRC labor rate differs from those developed under the 
agency's license fee recovery program (10 CFR part 170, ``Fees for 
Facilities, Materials, Import and Export Licenses, and Other 
Regulatory Services under the Atomic Energy Act of 1954, as 
Amended''). NRC labor rates for fee recovery purposes are 
appropriately designed for full-cost recovery of the services 
rendered and thus include nonincremental costs (e.g., overhead, 
administrative, and logistical support costs). <a href="https://www.nrc.gov/about-nrc/regulatory/rulemaking/regulatory-analysis">https://www.nrc.gov/about-nrc/regulatory/rulemaking/regulatory-analysis</a>.
    \2\ U.S. Bureau of Labor Statistics, Occupational Employment and 
Wage Statistics, National Industry-Specific Occupational Employment 
and Wage Statistics, May 2024.

                                    Table 1--Wage Rates Used in the Analysis
                                               [2024 U.S. dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                          Fully
                                                                                 Hourly                  loaded
      Standard occupational                 Position title           Weighting    mean     NRC loaded    hourly
          classification                                                (%)       wage     multipliers    mean
                                                                                                          wage
----------------------------------------------------------------------------------------------------------------
                  Licensees/Applicants Labor Rates (National Cross-industry, Private Ownership)
----------------------------------------------------------------------------------------------------------------
17-2081..........................  Environmental Engineers........          33    $54.44           2.4    $43.55
19-5010..........................  Occupational Health and Safety           33     40.25           2.4     32.20
                                    Specialists and Technicians.
23-1011..........................  Lawyers........................          33     93.72           2.4     74.98
----------------------------------------------------------------------------------------------------------------

[[Page 63138]]

 
Blended mean wage                                                                                         150.73
----------------------------------------------------------------------------------------------------------------
                 Agreement States Wage Rates (State Government, including Schools and Hospitals)
----------------------------------------------------------------------------------------------------------------
17-2081..........................  Environmental Engineers........          33     48.66           2.4     38.93
19-5010..........................  Occupational Health and Safety           33     37.24           2.4     29.79
                                    Specialists and Technicians.
23-1011..........................  Lawyers........................          33     57.44           2.4     45.95
----------------------------------------------------------------------------------------------------------------
Blended mean wage                                                                                         114.67
----------------------------------------------------------------------------------------------------------------
                                                              NRC wage rate                               158.00
----------------------------------------------------------------------------------------------------------------
                                                               Contractor Labor Rates
                                  ------------------------------------------------------------------------------
                                   Radiological Engineering.......          69    273.70  ............    188.17
                                   Principal Researcher...........          13    331.30  ............     41.41
                                   Supervisor/Manager.............           9    273.70  ............     25.66
                                   Administrative.................           9    154.95  ............     14.53
----------------------------------------------------------------------------------------------------------------
Blended mean wage                                                                                         269.77
----------------------------------------------------------------------------------------------------------------

    All costs and cost savings are expressed in 2024 dollars. The 
analysis covers a 5-year period, which provides a reasonable basis for 
projecting licensee activities. In accordance with Office of Management 
and Budget (OMB) Circular A-4 and the NRC's internal guidance document, 
NUREG/BR-0058, Revision 5, the staff used net present value (NPV) 
calculations to estimate the value of future cost savings in constant 
2024 dollars, the most recent year for which complete annual data are 
available. NPV analysis allows for the comparison of costs and benefits 
that occur at different points in time by discounting them to a common 
base year. Consistent with OMB guidance, the analysis applies real 
discount rates of 3 percent and 7 percent. The 3-percent rate reflects 
the social rate of time preference and approximates the real return on 
long-term government debt. The 7-percent rate reflects the opportunity 
cost of capital and approximates the average pretax real rate of return 
on private-sector investments.
    The resulting estimates and underlying calculations are presented 
in the subsequent sections.

C. Estimated Costs and Savings of the Direct Final Rule

    This section analyzes the estimated costs and savings associated 
with revisions to Sec.  30.71 (Schedule B) to align with appendix C to 
10 CFR part 20, as well as exemptions for DOE contractors under 
Sec. Sec.  30.12, 40.11, and 70.11. The analysis concludes with a 
summary of implementation costs, anticipated cost savings, and net cost 
savings.
1. Expanding Exemptions for Byproduct Material
    As discussed in Section IV.A, ``Expanding Exemptions for Byproduct 
Material'' of this document, this direct final rule will replace the 
current Sec.  30.71 (Schedule B) table with a reference to appendix C 
to 10 CFR part 20, which includes a broader range of radionuclides. It 
will also retain the current exempt quantities for cadmium-109, 
iridium-192, and zirconium-93 because their thresholds in Sec.  30.71 
(Schedule B) are already higher than those in appendix C to 10 CFR part 
20. The rule will add a blanket provision stating that the exempt 
quantity limit for any byproduct material other than alpha emitting 
radionuclides is 0.1 microcuries. This change reduces the need for 
specific licenses for very small quantities of certain radionuclides, 
eliminating associated application, review, and compliance costs for 
both applicants and regulators. Agreement States will be required to 
adopt compatible regulations; however, the scope of changes is limited, 
and the associated revisions are expected to be minimal. The estimated 
savings apply only to reduced licensing requirements for possession of 
exempt quantities and do not include any changes for manufacturers or 
distributors, because distribution requirements under Sec.  32.18 
remain unchanged.
    By aligning Sec.  30.71 (Schedule B) with appendix C to 10 CFR part 
20, this rule will reduce the need for specific licenses for certain 
radionuclides without compromising public health and safety. Based on 
NRC experience, at least 10 specific license applications or amendment 
requests are submitted to the NRC each year, and approximately 70 
similar applications are submitted to Agreement States. Each licensee/
applicant spends about 40 hours per license on compliance activities. 
NRC staff spend an average of 50 hours reviewing each application. 
Agreement State staff spend 50 hours reviewing each application. As 
shown in table 2, eliminating the specific licenses requirement for 
certain radionuclides will reduce burden for licensees, the NRC, and 
Agreement States. These activities represent approximately 7,200 hours 
of effort and $962,682 in annual costs that will be eliminated under 
this rule.

[[Page 63139]]



                       Table 2--Annual Cost Savings From Elimination of Exemption Requests
                                      [NRC, agreement states and licensees]
----------------------------------------------------------------------------------------------------------------
                                   Reduction in
                                     number of     Burden hours    Total burden    Fully loaded     Annual cost
             Entity                  exemption      per request    hours reduced     wage rate        savings
                                     requests
----------------------------------------------------------------------------------------------------------------
Licensees/Applicants............              80              40           3,200         $150.73        $482,330
NRC.............................              10              50             500          158.00          79,000
Agreement States................              70              50           3,500          114.67         401,352
                                 -------------------------------------------------------------------------------
    Total.......................  ..............  ..............           7,200  ..............         962,682
----------------------------------------------------------------------------------------------------------------

    Over the 5-year analysis period (2027-2031), these changes are 
projected to generate cumulative undiscounted savings of $4.8 million. 
Using 2024 as the base year, the net present value of these savings is 
estimated at $4.4 million using a 3 percent discount rate or $3.9 
million using a 7 percent discount rate.

                                       Table 3--Total 5-Year Cost Savings
                                      [NRC, agreement states and licensees]
----------------------------------------------------------------------------------------------------------------
                                    Cost of
                                   exemption         Cost of       Cost savings
             Year                requests with      exemption       due to this     3% NPV ($)      7% NPV ($)
                                    existing      requests with      rule ($)
                                  regulations    this final rule
----------------------------------------------------------------------------------------------------------------
                                                  Undiscounted
----------------------------------------------------------------------------------------------------------------
1.............................          962,682                0         962,682         934,642         899,702
2.............................          962,682                0         962,682         907,420         840,843
3.............................          962,682                0         962,682         880,990         785,835
4.............................          962,682                0         962,682         855,330         734,425
5.............................          962,682                0         962,682         830,418         686,379
                               ---------------------------------------------------------------------------------
    Total.....................        4,813,408                0       4,813,408       4,408,800       3,947,185
----------------------------------------------------------------------------------------------------------------

    The NRC and industry stakeholders may incur minimal implementation 
costs associated with updating internal procedures. These costs are 
expected to be minimal and have not been quantified.
2. Expanding Exemptions for DOE Contractors
    As discussed in Section IV.B ``Expanding Exemptions for DOE 
Contractors'' of this document, this direct final rule will revise the 
exemption provisions under Sec. Sec.  30.12, 40.11, and 70.11 to add 
exemption approvals for DOE contractors conducting temporary training 
activities under specified quantities of radioactive material. Under 
the current regulations, DOE contractors must request case-by-case 
exemptions from the NRC when training occurs in NRC and Agreement State 
jurisdiction. The NRC first reviews these requests to confirm that the 
material poses a low risk to public health and safety. Agreement States 
conduct confirmatory reviews of the exemption requests that fall within 
their jurisdiction.
    Preparing and reviewing exemption requests imposes a recurring 
administrative burden. Each request requires DOE contractors to prepare 
documentation describing the material involved, outline applicable 
safety controls, and demonstrate that the training activity is 
authorized and consistent with applicable regulatory requirements. NRC 
staff then review the exemption request, verify compliance, and 
document their findings. The NRC then forwards its findings and the 
exemption decision to the Agreement States for confirmatory review. As 
shown in table 4, eliminating the exemption requirement will reduce 
burden for DOE contractors, NRC, and Agreement States. DOE contractors 
currently submit about 29 exemption requests annually, based on the 3-
year average. The NRC reviews all exemption requests, while Agreement 
States review only those within their jurisdictions, which account for 
approximately 90 percent of the total requests. These activities 
represent approximately 1,390 hours of effort and $266,921 in annual 
costs that will be eliminated under this rule.

                       Table 4--Annual Cost Savings From Elimination of Exemption Requests
                             [DOE contractors, NRC, agreement states and licensees]
----------------------------------------------------------------------------------------------------------------
                                   Reduction in
                                     number of     Burden hours    Total burden    Fully loaded     Annual cost
             Entity                  exemption      per request    hours reduced     wage rate        savings
                                     requests
----------------------------------------------------------------------------------------------------------------
DOE Contractors.................              29              16             464         $269.77        $125,172
NRC.............................              29              28             822          158.00         129,823
Agreement States................              26               4             104          114.67          11,926
                                 -------------------------------------------------------------------------------

[[Page 63140]]

 
    Total.......................  ..............  ..............           1,390  ..............         266,921
----------------------------------------------------------------------------------------------------------------

    The rule will eliminate the need for these case-by-case exemption 
requests by adding exemptions for specified quantity limits, provided 
the activity is a temporary training of law enforcement, emergency 
response, or other similar personnel and appropriate procedures are in 
place. This change will reduce administrative burden for DOE 
contractors, NRC, and Agreement States while maintaining oversight and 
public protection.
    As shown in table 5, over the 5-year analysis period (2027-2031), 
these changes are projected to generate cumulative undiscounted savings 
of approximately $1.3 million. Using 2024 as the base year, the NPV of 
these savings is estimated at $1.2 million using a 3 percent discount 
rate or $1.1 million using a 7 percent discount rate. NRC and industry 
stakeholders may incur minimal implementation costs associated with 
eliminating the exemption process and updating internal procedures. 
These costs are expected to be minimal and have not been quantified.

                                       Table 5--Total 5-Year Cost Savings
                             [DOE contractors, NRC, agreement states and licensees]
----------------------------------------------------------------------------------------------------------------
                                    Cost of
                                   exemption         Cost of       Cost savings
             Year                requests with      exemption       due to this     3% NPV ($)      7% NPV ($)
                                    existing      requests with      rule ($)
                                 regulations($)  this final rule
----------------------------------------------------------------------------------------------------------------
                                                  Undiscounted
----------------------------------------------------------------------------------------------------------------
2027..........................          266,921                0         266,921         259,147         249,459
2028..........................          266,921                0         266,921         251,599         233,139
2029..........................          266,921                0         266,921         244,271         217,887
2030..........................          266,921                0         266,921         237,156         203,633
2031..........................          266,921                0         266,921         230,249         190,311
                               ---------------------------------------------------------------------------------
    Total.....................        1,334,606                0       1,334,606       1,222,421       1,094,430
----------------------------------------------------------------------------------------------------------------

3. Summary of Costs, Cost Savings, and Net Cost Savings
    Overall, this direct final rule is considered a deregulatory action 
and is expected to reduce administrative burden by streamlining 
exemption provisions, improving efficiency and predictability, and 
increasing flexibility for the NRC, Agreement States, licensees, and 
DOE contractors. These changes include aligning exempt quantity 
thresholds in Sec.  30.71 (Schedule B) with appendix C to 10 CFR part 
20 and adding exemption approvals for DOE contractors conducting 
temporary training activities under specified quantities of radioactive 
material under Sec. Sec.  30.12, 40.11, and 70.11.
    Over the 5-year analysis period (2027-2031), the revisions are 
estimated to generate net savings of $6.1 million (savings minus 
costs), undiscounted. As shown in table 6, the NPV of these net savings 
will be $5.6 million, discounted at 3 percent, or $5.0 million, 
discounted at 7 percent. The projected annualized cost savings will be 
$1.2 million, discounted at 3 percent, or $1.1 million, discounted at 7 
percent. Although the rule will generate savings, NRC and industry 
stakeholders may incur minimal implementation costs associated with 
eliminating the exemption process and updating internal procedures. 
These costs are expected to be minimal and have not been quantified.
    Licensees account for the largest share of net savings, with about 
2.4 million over 5 years, undiscounted, and 2.2 million discounted at 3 
percent, or 2.0 million discounted at 7 percent. Agreement States will 
realize about 2.1 million over 5 years, undiscounted, and 1.9 million 
discounted at 3 percent, or 1.7 million discounted at 7 percent. NRC 
savings are estimated at 1.0 million over 5 years, undiscounted, and 
956,000 discounted at 3 percent, or 856,000 discounted at 7 percent. 
DOE contractor savings are estimated at 626,000 over 5 years, 
undiscounted, and 573,000 discounted at 3 percent, or 513,000 
discounted at 7 percent.

                              Table 6--Total 5-Year Costs, Savings, and Net Savings
                           [NRC, agreement states, licensees, and DOE contractors] \3\
----------------------------------------------------------------------------------------------------------------
                            Attribute                              Undiscounted       3% NPV          7% NPV
----------------------------------------------------------------------------------------------------------------
Licensees' Savings from Rule....................................      $2,412,000      $2,209,000      $1,978,000
NRC Staff's Savings from Rule...................................       1,044,000         956,000         856,000
Agreement States' Savings from Rule.............................       2,066,000       1,893,000       1,695,000

[[Page 63141]]

 
DOE Contractors' Savings from Rule..............................         626,000         573,000         513,000
                                                                 -----------------------------------------------
Implementation Costs............................................           Minimal cost, not quantified
                                                                 -----------------------------------------------
    Total Net Savings...........................................       6,148,000       5,631,000       5,042,000
Annualized Savings..............................................  ..............       1,159,000       1,074,000
----------------------------------------------------------------------------------------------------------------

    In addition to the quantified analysis, this direct final rule 
provides qualitative benefits by improving regulatory clarity and 
predictability. Aligning exempt quantity thresholds in Sec.  30.71 
(Schedule B) with appendix C to 10 CFR part 20 and codifying exemptions 
for DOE contractors reduces ambiguity and minimizes the need for case-
by-case reviews. These changes streamline processes, support broader 
use of radionuclides in research, industry, and medicine, and enhance 
efficiency while maintaining safety. The exemptions for DOE contractors 
further reduces administrative burden and improves coordination among 
NRC, Agreement States, and DOE contractors.
---------------------------------------------------------------------------

    \3\ Values rounded to the nearest 1,000 dollars.
---------------------------------------------------------------------------

    In addition to this analysis, OIRA requires agencies to report 
results as a perpetual stream (perpetuity) once a rule is implemented. 
The perpetual stream has annualized savings of about 1.1 million.

VIII. Backfitting and Issue Finality

    This final rule amends the NRC's byproduct, source, and special 
nuclear material regulations to expand how nuclear material can be 
safely used without a license. The final rule does not meet the 
definition of backfitting in Sec.  50.109, 70.76, 72.62, or 76.76, or 
affect issue finality of an approval issued under 10 CFR part 52. 
Therefore, the NRC has determined that this final rule does not 
constitute a backfit or affect issue finality for any approvals issued 
under 10 CFR part 52.

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 
31885).

X. National Environmental Policy Act

A. Introduction

    The NRC has prepared this environmental assessment (EA) of the 
direct final rule amending byproduct, source, and special nuclear 
material regulations to determine the significance of the environmental 
effects of the agency action in accordance with the National 
Environmental Policy Act of 1969, as amended (NEPA) and NRC's NEPA 
implementing regulations in 10 CFR part 51, ``Environmental Protection 
Regulations for Domestic Licensing and Related Regulatory Functions.'' 
As explained in this EA, the NRC has determined that the agency action 
to amend these regulations to expand which radionuclides are exempt 
from the requirement for a specific license, update the quantity 
thresholds for certain radionuclides exempt from a specific license, 
and expand exemptions for certain DOE contractor activities would have 
no significant effect on the quality of the human environment. The 
direct final rule amends regulations in 10 CFR parts 30.12, 30.71, 
40.11, and 70.11.

B. Rule Amendments Requiring Environmental Assessment

    The NRC evaluated the direct final rule amendments for the 
potential to affect the human environment and determined that the 
agency action (rulemaking) does not have a significant environmental 
effect. Environmental effects were determined to be the same for a 
given facility regardless of the amendment. However, these amendments 
also involve safety requirements that differ from those under the 
existing regulatory framework. Therefore, the environmental effects 
analysis focuses on whether changes in safety requirements would lead 
to significantly different environmental effects than those experienced 
under existing NRC regulations. As explained in Table B-1, these rule 
amendments update NRC regulations, continue to provide reasonable 
assurance of adequate protection of public health and safety, and 
therefore, result in no new or different environmental effects. Table 
B-1 presents the basis for why these rule amendments have no 
significant environmental effects.

[[Page 63142]]



 Table B-1--Basis for No Significant Environmental Effects Determination
       for Rule Amendments Not Covered by a Categorical Exclusion
------------------------------------------------------------------------
                                 Basis for no significant environmental
       Rule amendments                          effects
------------------------------------------------------------------------
30.71........................  The direct final rule amendment aligns
                                exempt quantity thresholds in 10 CFR
                                30.71 (Schedule B) with appendix C to 10
                                CFR part 20 to reduce the need for
                                specific licenses for certain
                                radionuclides without compromising
                                public health and safety.
                               The direct final rule amendment replaces
                                the 10 CFR 30.71 (Schedule B) table with
                                a reference to appendix C to 10 CFR part
                                20, except for cadmium-109, iridium-192,
                                and zirconium-93, for which current
                                exempt quantities are retained.
                                Retention of current quantities for
                                these radionuclides avoids creating a
                                requirement for a specific license where
                                one is not currently required. The
                                amendment also adds a provision stating
                                that the exempt quantity limit for any
                                byproduct material other than alpha
                                emitting radionuclides is 0.1
                                microcuries. This eliminates the need
                                for specific licenses for very small
                                quantities of certain radionuclides that
                                would not be harmful. Licensing
                                requirements for possession of exempt
                                quantities do not include any changes
                                for manufacturers or distributors.
                                Distribution requirements under 10 CFR
                                32.18 remain unchanged. The NRC has
                                reviewed updated scientific and safety
                                information, as discussed in the rule
                                preamble, and determined that higher
                                exempt quantity and activity limits for
                                certain radionuclides continue to
                                provide reasonable assurance of adequate
                                protection of public health and safety
                                and would not result in any physical
                                changes in the environment. Therefore,
                                the NRC has determined that the
                                rulemaking action results in no
                                significant environmental effects.
30.12; 40.11; 70.11..........  Based on licensing experience, NRC staff
                                identified byproduct, source, and
                                special nuclear material regulations
                                granting exemptions to DOE contractors
                                as an area for regulatory improvement.
                               This direct final rule updates Sec.  Sec.
                                  30.12, 40.11, and 70.11 to add
                                exemptions for DOE contractors
                                conducting temporary training activities
                                with byproduct, source, and special
                                nuclear material under specific,
                                previously approved quantities. Under
                                current regulations, DOE contractors
                                must request on a case-by-case basis
                                exemptions for these activities when
                                performed in NRC and Agreement State
                                jurisdictions. The amendments eliminate
                                the need for repeated exemption requests
                                on a case-by-case basis, provided DOE
                                contractors meet the conditions
                                specified in these sections. This change
                                reduces administrative burden for DOE,
                                NRC, and Agreement States by eliminating
                                repeated reviews of training activities
                                that have already demonstrated a
                                consistent safety record, while
                                maintaining oversight and public
                                protection.
                               In addition, radioactive materials are
                                used in accordance with DOE's
                                occupational radiation protection
                                program in 10 CFR part 835, which is
                                similar to the NRC's radiation
                                protection program in 10 CFR part 20,
                                providing continued public health and
                                safety protection and security controls.
                                The NRC reviewed years of past
                                approvals, as discussed in the rule
                                preamble, and determined that a standing
                                exemption for temporary training
                                activities involving law enforcement
                                emergency response and similar
                                personnel, provided the radioactive
                                materials used fall below the specified
                                quantity limits, has a low safety risk
                                and continues to provide reasonable
                                assurance of adequate protection of
                                public health and safety and would not
                                result in any physical changes in the
                                environment. Therefore, the NRC has
                                determined that the rulemaking action
                                will result in no significant
                                environmental effects.
------------------------------------------------------------------------

    The rule amendments listed in Table B-1 would modernize existing 
NRC byproduct, source, and special nuclear material regulations to 
expand which radionuclides are exempt from the requirement for a 
specific license, update the quantity thresholds for certain 
radionuclides exempt from a specific license, and expand exemptions for 
certain temporary DOE contractor training activities while ensuring 
these regulations continue to be safe, effective, and efficient and 
continue to provide reasonable assurance of adequate protection of 
public health and safety and the environment. As noted in Table B-1, 
the amendments consist of administrative and procedural changes for 
license exemptions and do not authorize any site-specific action on the 
part of the NRC or licensee and would have no significantly different 
environmental effects than those from the current regulatory framework.

C. Environmental Impacts of the Agency Action

    Implementation of the direct final rule would result in no physical 
changes to the environment, and, therefore, the NRC has determined that 
this agency action does not have a significant effect on the quality of 
the human environment. The rule amendments are administrative in 
application, maintain ample margins of safety for public exposure, and 
would provide an equivalent level of safety and security as current NRC 
regulations.
    Since no physical changes would occur in the human environment, the 
agency action (direct final rule) would not affect any threatened or 
endangered species or historic properties. Accordingly, the NRC finds 
that implementing the direct final rule would have no significant 
environmental impact.

D. Environmental Impacts of the Alternative to the Agency Action

    Under the no-action alternative (i.e., the status quo), NRC 
regulations would remain unchanged. As explained in section B, the 
direct final rule does not have a significant effect on the quality of 
the human environment. Therefore, the no action alternative and the 
agency action (direct final rule) would have the same environmental 
effect, although there would be costs attributable to reviewing the 
environmental effects of exemption requests under the no action 
alternative. Licensees would continue to comply with existing NRC 
regulations or request regulatory relief (exemption) from the 
regulations. The NRC would continue to evaluate the environmental 
effects of exemption requests. The averted costs (benefits) of the 
rulemaking would not occur. The Regulatory Analysis for the direct 
final rule in Section VII provides information about the costs and 
benefits of the no action alternative and the agency action (direct 
final rule).

E. Finding of No Significant Impact

    The NRC has prepared this EA to determine the environmental effects 
of the agency action (direct final rule). As explained in the EA, the 
NRC has determined the direct final rule does not change radiation 
protection and emergency preparedness requirements or overall risk, 
continues to provide reasonable assurance of adequate protection of 
public health and safety, and results in no new or different 
environmental effects. Therefore, the

[[Page 63143]]

NRC concludes that these regulatory changes do not have a significant 
effect on the quality of the human environment. Based on this 
conclusion, the NRC has determined there is no need to prepare an 
environmental impact statement. Accordingly, the NRC finds the agency 
action to amend its regulations to expand which radionuclides are 
exempt from needing a specific license, update the quantity thresholds 
for certain radionuclides exempt from a specific license, and to expand 
exemptions for certain DOE contractor activities has no significant 
environmental impact.

F. References

<bullet> 10 CFR Part 30. Code of Federal Regulations, Chapter I, 
Title 10, Energy, Part 30, ``Rules of General Applicability to 
Domestic Licensing of Byproduct Material.''
<bullet> 10 CFR Part 40. Code of Federal Regulations, Chapter I, 
Title 10, Energy, Part 40, ``Domestic Licensing of Source 
Material.''
<bullet> 10 CFR Part 70. Code of Federal Regulations, Chapter I, 
Title 10, Energy, Part 70, ``Domestic Licensing of Special Nuclear 
Material.''
<bullet> Endangered Species Act of 1973, as amended. Pub. L. 93-205, 
87 Stat. 884 (1973).
<bullet> National Environmental Policy Act of 1969, as amended. Pub. 
L. 91-190, 83 Stat. 852 (1969).
<bullet> National Historic Preservation Act of 1966, as amended. 
Pub. L. 89-665, 80 Stat. 915 (1966).

XI. Paperwork Reduction Act

    This direct final rule does not contain any new or amended 
collections of information subject to the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501 et seq.). Existing collections of information were 
approved by the Office of Management and Budget, approval numbers 3150-
0017, 3150-0020, and 3150-0009.

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. Executive Orders

    The following are Executive orders (E.O.) that are related to this 
direct final rule:

A. Executive Order 12866: Regulatory Planning and Review (as Amended by 
Executive Order 14215, Ensuring Accountability for All Agencies)

    The Office of Information and Regulatory Affairs (OIRA) has 
determined that this direct final rule is a significant regulatory 
action under section 3(f) of E.O. 12866, though not economically 
significant under section 3(f)(1). Accordingly, the NRC submitted this 
direct final rule to OIRA for review. The NRC is required to conduct an 
economic analysis in accordance with section 6(a)(3)(B) of E.O. 12866. 
More can be found in Section VII of this document, ``Regulatory 
Analysis.''

B. Executive Order 14192: Unleashing Prosperity Through Deregulation

    This action is determined to be a deregulatory action as defined by 
E.O. 14192. Details on the estimated costs of this direct final rule 
can be found in Section VII of this document, ``Regulatory Analysis.''

C. Executive Order 14267: Reducing Anti-Competitive Regulatory Barriers

    E.O. 14267 requires the NRC to identify anti-competitive 
regulations for rescission or modification. The NRC identified Sec.  
30.71 because of section 3(a)(iv) of the Executive order. The 
modification of the regulation supports the objectives of E.O. 14267 by 
removing regulatory requirements that could create or facilitate 
licensure or accreditation requirements that unduly limit competition.

XIII. Congressional Review Act

    This final rule is a rule as defined in the Congressional Review 
Act (5 U.S.C. 801-808). However, the Office of Management and Budget 
has found that it does not meet the criteria at 5 U.S.C. 804(2).

XIV. Coordination With NRC Agreement States

    On September 3, 2025, the NRC held a government-to-government 
meeting with the Agreement States regarding E.O. 14300, ``Ordering the 
Reform of the Nuclear Regulatory Commission.'' In this meeting, the NRC 
presented its goals and objectives for future rulemakings, including 
this rule, to be done in response to the E.O. At the time of the 
meeting, the rule text was not available. Additionally, throughout the 
development of the rule, the NRC interacted with Agreement State 
representatives to hear their perspectives on the rule where early rule 
language was shared. On February 5, 2026, the NRC met with certain 
Agreement State representatives to discuss the rule text and to resolve 
the compatibility of Agreement State regulations.

XV. Compatibility of Agreement State Regulations

    On the basis of the ``Agreement State Program Policy Statement'' 
approved by the Commission on October 2, 2017, and published in the 
Federal Register (82 FR 48535; October 18, 2017), NRC program elements 
can be placed into six categories (A, B, C, D, NRC, or health and 
safety (H&S)) to form the basis for evaluating and classifying the 
program elements. Under the Policy Statement, a program element means 
any component or function of a radiation control regulatory program, 
including regulations and other legally binding requirements imposed on 
regulated persons, which contributes to implementation of that program. 
This rule only modifies regulations that are of Compatibility Category 
B.
    Compatibility Category B pertains to a limited number of program 
elements that cross jurisdictional boundaries and should be addressed 
to ensure uniformity of regulation on a nationwide basis. For 
Compatibility Category B, the Agreement State program element shall be 
essentially identical to that of NRC.
    The rule is a matter of compatibility between the NRC and the 
Agreement States, thereby providing consistency among Agreement State 
and NRC requirements. The compatibility (A, B, C, D, and NRC) and 
adequacy (H&S) categories are designated in the following table:

                                        Adequacy and Compatibility Table
----------------------------------------------------------------------------------------------------------------
                                                                                    Adequacy or compatibility
             Section                     Change                Subject         ---------------------------------
                                                                                    Existing           New
----------------------------------------------------------------------------------------------------------------
30.12...........................  Amend..............  Byproduct material                    B                B
                                                        exempt persons under
                                                        DOE contract.
30.71...........................  Amend..............  Byproduct material                    B                B
                                                        exempt limits.

[[Page 63144]]

 
40.11...........................  Amend..............  Source material exempt                B                B
                                                        persons under DOE
                                                        contract.
70.11...........................  Amend..............  Special Nuclear                       B                B
                                                        Material exempt
                                                        persons under DOE
                                                        contract.
----------------------------------------------------------------------------------------------------------------

XVI. Voluntary Consensus Standards

    The National Technology Transfer and Advancement Act of 1995, 
Public Law 104-113, requires that Federal agencies use technical 
standards that are developed or adopted by voluntary consensus 
standards bodies unless the use of such a standard is inconsistent with 
applicable law or otherwise impractical. In this direct final rule, the 
NRC will revise regulations exempting users from regulatory 
requirements. This action does not constitute the establishment of a 
standard that contains generally applicable requirements.

XVII. Availability of Guidance

    The NRC will not be issuing guidance for this rulemaking. The NRC 
and Agreement States do not license exempt users of byproduct, source, 
and special nuclear material. This rule only amends regulations for 
such exemptions; therefore there is no applicable guidance for this 
rulemaking.

XVIII. Availability of Documents

    The documents identified in the following table are available to 
interested persons through one or more of the following methods, as 
indicated.

------------------------------------------------------------------------
                                               ADAMS accession No./web
                  Document                      link/Federal Register
                                                       citation
------------------------------------------------------------------------
                            Related Documents
------------------------------------------------------------------------
Requirements for Expanded Definition of      72 FR 55864.
 Byproduct Material, Final Rule, October 1,
 2007.
Standards for Protection Against Radiation,  56 FR 23360.
 Final Rule, May 21, 1991.
NUREG-1717, ``Systematic Radiological        ML011980433 (package).
 Assessment of Exemptions for Source and
 Byproduct Materials,'' June 2001.
Letter from Catherine A. Ribaudo, National   ML20353A268 (package).
 Institutes of Health, December 15, 2020.
Licensing Requirements, Exemptions for       29 FR 14401.
 Certain AEC Contractors, Final Rule,
 October 20, 1964.
Licensing of Byproduct Material, Final       21 FR 213.
 Rule; January 11, 1956.
Radioisotope Distribution, Final Rule,       16 FR 3251.
 April 13, 1951.
Agreement State Program Policy Statement,    82 FR 48535.
 October 18, 2017.
Presidential Memorandum, ``Plain Language    63 FR 31885.
 in Government Writing,'' June 10, 1998.
NRC Regulatory Analysis, Public Website....  <a href="https://www.nrc.gov/about-nrc/regulatory/rulemaking/regulatory-analysis">https://www.nrc.gov/about-nrc/regulatory/rulemaking/regulatory-analysis</a>.
------------------------------------------------------------------------
                            Executive Orders
------------------------------------------------------------------------
Executive Order 12866, ``Regulatory          58 FR 51735.
 Planning and Review,'' October 4, 1993.
Executive Order 14192, ``Unleashing          90 FR 9065.
 Prosperity Through Deregulation,''
 February 6, 2025.
Executive Order 14215, ``Ensuring            90 FR 10447.
 Accountability for All Agencies,''
 February 24, 2025.
Executive Order 14300, ``Ordering the        90 FR 22587.
 Reform of the Nuclear Regulatory
 Commission,'' May 29, 2025.
------------------------------------------------------------------------

    The NRC may post materials related to this document, including 
public comments, on the Federal rulemaking website at <a href="https://www.regulations.gov">https://www.regulations.gov</a> under Docket ID NRC-2025-1568. In addition, the 
Federal rulemaking website allows members of the public to receive 
alerts when changes or additions occur in a docket folder. To 
subscribe: (1) navigate to the docket folder (NRC-2025-1568); (2) click 
the ``Subscribe'' button; and (3) enter an email address and click on 
the ``Subscribe'' button.

List of Subjects

10 CFR Part 20

    Byproduct material, Criminal penalties, Fusion, Hazardous waste, 
Licensed material, Nuclear energy, Nuclear materials, Nuclear power 
plants and reactors, Occupational safety and health, Packaging and 
containers, Penalties, Radiation protection, Reporting and 
recordkeeping requirements, Source material, Special nuclear material, 
Waste treatment and disposal.

10 CFR Part 30

    Byproduct material, Criminal penalties, Government contracts, 
Intergovernmental relations, Isotopes, Nuclear energy, Nuclear 
materials, Penalties, Radiation protection, Reporting and recordkeeping 
requirements, Whistleblowing.

10 CFR Part 40

    Criminal penalties, Exports, Government contracts, Hazardous 
materials transportation, Hazardous waste, Nuclear energy, Nuclear 
materials, Penalties, Reporting and recordkeeping requirements, Source 
material, Uranium, Whistleblowing.

10 CFR Part 70

    Classified information, Criminal penalties, Emergency medical 
services, Hazardous materials transportation, Material control and 
accounting, Nuclear energy, Nuclear materials, Packaging and 
containers, Penalties, Radiation protection, Reporting and 
recordkeeping requirements, Scientific equipment, Security measures, 
Special nuclear material, Whistleblowing.

    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,

[[Page 63145]]

as amended; and 5 U.S.C. 552 and 553, the NRC adopts the following 
amendments to 10 CFR parts 20, 30, 40, and 70:

PART 20--STANDARDS FOR PROTECTION AGAINST RADIATION

0
 1. The authority citation for part 20 continues to read as follows:

    Authority:  Atomic Energy Act of 1954, secs. 11, 53, 63, 65, 81, 
103, 104, 161, 170H, 182, 186, 223, 234, 274, 1701 (42 U.S.C. 2014, 
2073, 2093, 2095, 2111, 2133, 2134, 2201, 2210h, 2232, 2236, 2273, 
2282, 2021, 2297f); Energy Reorganization Act of 1974, secs. 201, 
202 (42 U.S.C. 5841, 5842); Low-Level Radioactive Waste Policy 
Amendments Act of 1985, sec. 2 (42 U.S.C. 2021b); 44 U.S.C. 3504 
note.

0
 2. Amend appendix C to part 20 by adding footnote 2 to the heading and 
the corresponding footnote entry at the end of the appendix to read as 
follows:

 Appendix C to Part 20--Quantities\1\ \2\ of Licensed Material Requiring
                                Labeling
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Radionuclide..............................  Quantity ([micro]Ci).
 
                                * * * * *
------------------------------------------------------------------------
\1\ The quantities listed above were derived by taking 1/10th of the
  most restrictive ALI listed in table 1, columns 1 and 2, of appendix B
  to Sec.  Sec.   20.1001-20.2401 of this part, rounding to the nearest
  factor of 10, and arbitrarily constraining the values listed between
  0.001 and 1,000 [micro]Ci. Values of 100 [micro]Ci have been assigned
  for radionuclides having a radioactive half-life in excess of 10\9\
  years (except rhenium, 1000 [micro]Ci) to take into account their low
  specific activity.
\2\ The quantities listed in this table are also used in 10 CFR part 30
  to define quantities exempt from licensing.

* * * * *

PART 30--RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF 
BYPRODUCT MATERIAL

0
 3. The authority citation for part 30 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 11, 81, 161, 181, 
182, 183, 184, 186, 187, 223, 234, 274 (42 U.S.C. 2014, 2111, 2201, 
2231, 2232, 2233, 2234, 2236, 2237, 2273, 2282, 2021); Energy 
Reorganization Act of 1974, secs. 201, 202, 206, 211 (42 U.S.C. 
5841, 5842, 5846, 5851); 44 U.S.C. 3504 note.


0
4. Revise Sec.  30.12 to read as follows:


Sec.  30.12   Persons using byproduct material under certain Department 
of Energy and Nuclear Regulatory Commission contracts.

    (a) Except to the extent that Department facilities or activities 
of the types subject to licensing pursuant to section 202 of the Energy 
Reorganization Act of 1974 are involved, any prime contractor of the 
Department is exempt from the requirements for a license set forth in 
sections 81 and 82 of the Act and from the regulations in this part to 
the extent that such contractor, under his prime contract with the 
Department manufactures, produces, transfers, receives, acquires, owns, 
possesses, or uses byproduct material for:
    (1) The performance of work for the Department at a United States 
Government-owned or controlled site, including the transportation of 
byproduct material to or from such site and the performance of contract 
services during temporary interruptions of such transportation;
    (2) Research in, or development, manufacture, storage, testing or 
transportation of, atomic weapons or components thereof; or
    (3) The use or operation of nuclear reactors or other nuclear 
devices in a United States Government-owned vehicle or vessel.
    (b)(1) In addition to the foregoing exemptions and subject to the 
requirement for licensing of Department facilities and activities 
pursuant to section 202 of the Energy Reorganization Act of 1974, any 
prime contractor or subcontractor of the Department or the Commission 
is exempt from the requirements for a license set forth in sections 81 
and 82 of the Act and from the regulations in this part to the extent 
that such prime contractor or subcontractor manufacturers, produces, 
transfers, receives, acquires, owns, possesses, or uses byproduct 
material under his prime contract or subcontract when:
    (i) The Commission determines that the exemption of the prime 
contractor or subcontractor is authorized by law; and
    (ii) Under the terms of the contract or subcontract, there is 
adequate assurance that the work thereunder can be accomplished without 
undue risk to the public health and safety.
    (2) A Department or Commission prime contractor or subcontractor 
does not need to obtain the Commission approval described in paragraph 
(b)(1) of this section where:
    (i) The prime contractor or subcontractor is performing temporary 
activities involving the training of law enforcement, emergency 
response, or other similar personnel;
    (ii) The contract specifies the applicable leak testing, operating, 
emergency, and security procedures consistent with any 10 CFR part 37 
requirements that the contractor or subcontractor is to follow during 
the temporary activities; and
    (iii) The byproduct material is less than the following quantities:
    (A) Category 2 sealed sources listed in table 1 of appendix A to 10 
CFR part 37, excluding Ir-192.
    (B) Sealed sources containing Ir-192: 150 Ci.
    (C) Sealed sources not listed in table 1 of appendix A to 10 CFR 
part 37: 20 millicuries per source and 100 millicuries aggregate.
    (D) Unsealed sources: with a half-life less than or equal to 8 
hours: 50 millicuries.
    (E) Unsealed sources with a half-life less than or equal to 2 
weeks: 5 millicuries.

0
5. Revise Sec.  30.71 to read as follows:


Sec.  30.71  Schedule B.

    (a) Except as provided in paragraph (b) of this section, appendix C 
to part 20 of this chapter will be used as Schedule B for byproduct 
materials.
    (b) The following specified quantities of byproduct material will 
be used in place of those in appendix C to part 20 of this chapter:
    (1) Cadmium-109: 10 microcuries;
    (2) Iridium-192: 10 microcuries;
    (3) Zirconium-93: 10 microcuries; and
    (4) Any byproduct material other than alpha emitting byproduct 
material for which the quantity in appendix C to part 20 of this 
chapter is less than this amount: 0.1 microcuries.

PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL

0
6. The authority citation for part 40 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 62, 63, 64, 65, 69, 
81, 83, 84, 122, 161, 181, 182, 183, 184, 186, 187, 193, 223, 234, 
274, 275 (42 U.S.C. 2092, 2093, 2094, 2095, 2099, 2111, 2113, 2114, 
2152, 2201, 2231, 2232, 2233, 2234, 2236, 2237, 2243, 2273, 2282, 
2021, 2022); Energy Reorganization Act of 1974, secs. 201, 202, 206, 
211 (42 U.S.C. 5841, 5842, 5846, 5851); Uranium Mill Tailings 
Radiation Control Act of 1978, sec. 104 (42 U.S.C. 7914); 44 U.S.C. 
3504 note.


0
7. Revise Sec.  40.11 to read as follows:


Sec.  40.11  Persons using source material under certain Department of 
Energy and Nuclear Regulatory Commission contracts.

    (a) Except to the extent that Department facilities or activities 
of the types subject to licensing pursuant to section 202 of the Energy 
Reorganization Act of 1974 or the Uranium Mill Tailings Radiation 
Control Act of 1978 are involved, any prime contractor of the 
Department is exempt from the requirements for a license set forth in 
sections 62, 63, and 64 of the Act and from the regulations in this 
part to the extent that such

[[Page 63146]]

contractor, under his prime contract with the Department, receives, 
possesses, uses, transfers or delivers source material for:
    (1) The performance of work for the Department at a United States 
Government-owned or controlled site, including the transportation of 
source material to or from such site and the performance of contract 
services during temporary interruptions of such transportation;
    (2) Research in, or development, manufacture, storage, testing or 
transportation of, atomic weapons or components thereof; or
    (3) The use or operation of nuclear reactors or other nuclear 
devices in a United States Government-owned vehicle or vessel.
    (b)(1) In addition to the foregoing exemptions, and subject to the 
requirement for licensing of Department facilities and activities 
pursuant to section 202 of the Energy Reorganization Act of 1974 or the 
Uranium Mill Tailings Radiation Control Act of 1978, any prime 
contractor or subcontractor of the Department or the Commission is 
exempt from the requirements for a license set forth in sections 62, 
63, and 64 of the Act and from the regulations in this part to the 
extent that such prime contractor or subcontractor receives, possesses, 
uses, transfers or delivers source material under his prime contract or 
subcontract when:
    (i) The Commission determines that the exemption of the prime 
contractor or subcontractor is authorized by law; and
    (ii) Under the terms of the contract or subcontract, there is 
adequate assurance that the work thereunder can be accomplished without 
undue risk to the public health and safety.
    (2) A Department or Commission prime contractor or subcontractor 
does not need to obtain the Commission approval described in paragraph 
(b)(1) of this section where:
    (i) The prime contractor or subcontractor is performing temporary 
activities involving the training of law enforcement, emergency 
response, or other similar personnel;
    (ii) The contract specifies the applicable leak testing, operating, 
emergency, and security procedures that the contractor or subcontractor 
is to follow during the temporary activities; and
    (iii) The source material does not exceed the following aggregate 
quantities:
    (A) Sealed sources: 100 millicuries.
    (B) Unsealed sources: 10 millicuries.

PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

0
8. The authority citation for part 70 is revised to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 51, 53, 57(d), 108, 
122, 161, 182, 183, 184, 186, 187, 193, 223, 234, 274, 1701 (42 
U.S.C. 2071, 2073, 2077(d), 2138, 2152, 2201, 2232, 2233, 2234, 
2236, 2237, 2243, 2273, 2282, 2021, 2297f); Energy Reorganization 
Act of 1974, secs. 201, 202, 206, 211 (42 U.S.C. 5841, 5842, 5846, 
5851); Nuclear Waste Policy Act of 1982, secs. 135, 141 (42 U.S.C. 
10155, 10161); 44 U.S.C. 3504 note.


0
9. Revise Sec.  70.11 to read as follows:


Sec.  70.11   Persons using special nuclear material under certain 
Department of Energy and Nuclear Regulatory Commission contracts.

    (a) Except to the extent that Department facilities or activities 
of the types subject to licensing pursuant to section 202 of the Energy 
Reorganization Act of 1974 are involved, any prime contractor of the 
Department is exempt from the requirements for a license set forth in 
section 53 of the Act and from the regulations in this part to the 
extent that such contractor, under his prime contract with the 
Department receives title to, owns, acquires, delivers, receives, 
possesses, uses, or transfers special nuclear material for:
    (1) The performance of work for the Department at a United States 
Government-owned or controlled site, including the transportation of 
special nuclear material to or from such site and the performance of 
contract services during temporary interruptions of such 
transportation;
    (2) Research in, or development, manufacture, storage, testing or 
transportation of, atomic weapons or components thereof; or
    (3) The use or operation of nuclear reactors or other nuclear 
devices in a United States Government-owned vehicle or vessel.
    (b)(1) In addition to the foregoing exemptions, and subject to the 
requirement for licensing of Department facilities and activities 
pursuant to section 202 of the Energy Reorganization Act of 1974, any 
prime contractor or subcontractor of the Department or the Commission 
is exempt from the requirements for a license set forth in section 53 
of the Act and from the regulations in this part to the extent that 
such prime contractor or subcontractor receives title to, owns, 
acquires, delivers, receives, possesses, uses, or transfers special 
nuclear material under his prime contract or subcontract when:
    (i) The Commission determines that the exemption of the prime 
contractor or subcontractor is authorized by law; and
    (ii) Under the terms of the contract or subcontract there is 
adequate assurance that the work thereunder can be accomplished without 
undue risk to the public health and safety.
    (2) A Department or Commission prime contractor or subcontractor 
does not need to obtain the Commission approval described in paragraph 
(b)(1) of this section where:
    (i) The prime contractor or subcontractor is performing temporary 
activities involving the training of law enforcement, emergency 
response, or other similar personnel;
    (ii) The contract specifies the applicable leak testing, operating, 
emergency, and security procedures that the contractor or subcontractor 
is to follow during the temporary activities; and
    (iii) The special nuclear material consists exclusively of sealed 
sources in an aggregate quantity that does not exceed one one-millionth 
of special nuclear material of low strategic significance.

    Dated: October 1, 2026.

    For the Nuclear Regulatory Commission.
Jody Martin,
Secretary of the Commission.
[FR Doc. 2026-20336 Filed 10-2-26; 8:45 am]
BILLING CODE 7590-01-P


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