A WHOLE NEW BALL GAME: BENEFITING FROM THE SIMPLIFIED MATERIALS LICENSING PROCEDURES

Year
2004
Author(s)
Matias F. Travieso-Diaz - Pillsbury Winthrop Shaw Pittman LLP
Blake J. Nelson - Akin Gump Strauss Hauer & Feld LLP
Abstract
For many years, the nuclear industry has expressed dissatisfaction with the complex and protracted litigation procedures utilized by the Nuclear Regulatory Commission (NRC) for the initial licensing of nuclear facilities and the approval of amendments or transfers of those licenses. Millions of dollars in extra costs have been attributed to licensing delays, and many a project has foundered while trying to negotiate the rocks and shoals of NRC licensing. After several years of evaluating competing comments and proposals for change, the agency has finally released a comprehensive amendment to its rules of practice for licensing proceedings, located in Part 2 of Title 10 of the Code of Federal Regulations. The new rules are not just a matter of concern to lawyers but are vitally important to existing and prospective nuclear materials licensees. The NRC has endeavored to reduce unnecessary procedural burdens, produce more timely decisions, and reduce the resources that the participants in licensing proceedings must expend. If these goals are achieved, nuclear facility development and operation will be made simpler, cheaper, and less uncertain – to the benefit of the entire industry and the general public. The linchpin of the new regulations is the establishment of revised informal hearing procedures as the presumptive format for most licensing actions. A significantly modified Subpart L is the new \"default\" hearing track, with specialized hearing tracks applying to particular kinds of proceedings, such as enforcement actions and the licensing of uranium enrichment facilities. Subpart L is intended to govern essentially all materials licensing proceedings, including those of facilities regulated under 10 CFR Parts 30, 32 through 36, 40, 61, 70 and 72. This paper describes the framework for the issuance, amendment and transfer of nuclear materials facilities licenses established by the revised Part 2 regulations. In addition to summarizing the new regulatory processes, the authors identify – based on their experience in handling streamlined procedures under former subparts K, L and M of Part 2 – certain steps that license applicants, facility owners and operators can implement to take advantage of the streamlined procedures.