1. 1 Part 74 Material Control and Accounting (MC&A) Rulemaking Update NMMSS Users Annual Training Meeting Las Vegas, NV – May 20, 2010 Thomas Pham Material Control and Accounting Branch

2. 2 Overview Background Background Proposed changes Proposed changes Current status Current status Next steps Next steps

3. 3 Background After 9/11 events, staff were asked to conduct a comprehensive review of safeguards and security programs After 9/11 events, staff were asked to conduct a comprehensive review of safeguards and security programs Aug 5, 2005 – staff recommended revising MC&A regulations (SECY-05-0143) Aug 5, 2005 – staff recommended revising MC&A regulations (SECY-05-0143) Nov 18, 2005 – Commission directed staff to evaluate MC&A regulations and develop comprehensive rulemaking plan Nov 18, 2005 – Commission directed staff to evaluate MC&A regulations and develop comprehensive rulemaking plan Apr 25, 2008 – Staff submitted the rulemaking plan and technical basis (SECY-08-0059) Apr 25, 2008 – Staff submitted the rulemaking plan and technical basis (SECY-08-0059) Feb 5, 2009 – Commission selected Option 4 of the proposed rulemaking plan Feb 5, 2009 – Commission selected Option 4 of the proposed rulemaking plan

4. 4 Proposed Changes Under Option 4 : Under Option 4 : Part 74 will be revised to be applicable for current and future facilities Part 74 will be revised to be applicable for current and future facilities Most MC&A regulations in other chapters will be consolidated in Part 74 Most MC&A regulations in other chapters will be consolidated in Part 74 MC&A regulatory guides and NUREG publications will be updated in conjunction with the Part 74 rulemaking MC&A regulatory guides and NUREG publications will be updated in conjunction with the Part 74 rulemaking

5. 5 Proposed Changes Revise Subpart B – General Provisions - to include general performance objectives and basic system capabilities for all licensed facilities Revise Subpart B – General Provisions - to include general performance objectives and basic system capabilities for all licensed facilities Revise and add definitions (e.g., MC&A, item, MBA, physical inventory, waste) Revise and add definitions (e.g., MC&A, item, MBA, physical inventory, waste) Revise and eliminate exemptions (e.g., reprocessing facilities, 500-gram item control for Cat. III) Revise and eliminate exemptions (e.g., reprocessing facilities, 500-gram item control for Cat. III) Addition of “two-person” rule Addition of “two-person” rule

6. 6 Proposed Changes Enhance tamper-indicating device (TID) program Enhance tamper-indicating device (TID) program Relocate Part 72 MC&A requirements Relocate Part 72 MC&A requirements Will not relocate Part 40 and 150 requirements Will not relocate Part 40 and 150 requirements Other changes Other changes

7. 7 Current Status Staff submitted final technical basis in March 2010 Staff submitted final technical basis in March 2010 NRC staff working group has been formed NRC staff working group has been formed Working group will develop draft rule and submit by April 2011 Working group will develop draft rule and submit by April 2011 Staff are also revising MC&A regulatory guides Staff are also revising MC&A regulatory guides

8. 8 Next Steps After draft rule is presented to the Commission, expect approval in June 2011 After draft rule is presented to the Commission, expect approval in June 2011 Draft rule will go out for public comment in July 2011 Draft rule will go out for public comment in July 2011 Public comments will be addressed and the final rule will be submitted in early 2012 Public comments will be addressed and the final rule will be submitted in early 2012 Expect the final rule to be published around June 2012 Expect the final rule to be published around June 2012 Work will continue on revising regulatory guides and NUREGs Work will continue on revising regulatory guides and NUREGs

9. 9 Questions & Answers