Regulatory Analysis for NPR Fingerprinting Final Rule

Regulatory Analysis for Final Rulemaking:
Requirements for Fingerprint Based Criminal History
Records Checks for Individuals Seeking Unescorted Access
to Nonpower Reactors (Research or Test Reactors)

U.S. Nuclear Regulatory Commission
Office of Nuclear Reactor Regulation

Table of Contents

Executive Summary ....................................................................................................................................... i
Abbreviations ................................................................................................................................................iii
1.

Introduction ................................................................................................................................... 1
1.1

Statement of the Problem and Reasons for the Rulemaking........................................................ 1

1.2

Background ................................................................................................................................... 1

1.2.1
1.2.2
1.3
2.

Current Regulations Governing Fingerprint Based Background Checks at NPRs ................... 1
Commission Orders................................................................................................................... 1
Regulatory Objective ..................................................................................................................... 2
Identification and Preliminary Analysis of Alternative Approaches ............................................... 2

2.1

Option 1: No Action ....................................................................................................................... 2

2.2

Option 2: Amend Regulations to Incorporate Orders .................................................................... 2

2.3

Option 3: Amend Regulations to Incorporate Orders and Address Unescorted Access to Vital
Areas ............................................................................................................................................. 3

2.4

Option 4: Amend Regulations to Incorporate Orders and Address Unescorted Access to Areas
of Significance............................................................................................................................... 4

3.

Evaluation of Benefits and Costs .................................................................................................. 4
3.1

Identification of Affected Attributes ............................................................................................... 4

3.2

Analytical Methodology ................................................................................................................. 5

3.2.1
3.2.2
3.2.3
3.2.4
4.

Baseline for Analysis ................................................................................................................. 6
Research or Test Reactor Characteristics ................................................................................ 7
Data ........................................................................................................................................... 7
Additional Assumptions ............................................................................................................. 7
Results .......................................................................................................................................... 9

4.1

Benefits and Costs ........................................................................................................................ 9

4.2

Sensitivity Analysis – Pre-Order Baseline ................................................................................... 13

4.3

Backfit Analysis ........................................................................................................................... 16

4.4

Disaggregation ............................................................................................................................ 16

Table of Contents (continued)

4.5

Safety Goal Evaluation ................................................................................................................ 17

4.6

CRGR Results ............................................................................................................................. 17

4.7

Regulatory Flexibility Analysis..................................................................................................... 18

5.

Decision Rationale ...................................................................................................................... 19

6.

Implementation ........................................................................................................................... 20
6.1

Schedule ..................................................................................................................................... 20

6.2

Impacts on Other Requirements ................................................................................................. 20

Appendix: Cost Detail

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page i

Executive Summary
The Nuclear Regulatory Commission (NRC) is amending its regulations to require nonpower
reactor (NPR)1 licensees to obtain fingerprint-based criminal history records checks before
granting any individual unescorted access to their facilities. This action complies with the
requirements of Section 652 of the Energy Policy Act of 2005 (EPAct) which amended Section
149 of the Atomic Energy Act of 1954, as amended (AEA), to require fingerprinting and a
Federal Bureau of Investigation (FBI) identification and criminal history records checks of
individuals permitted unescorted access to a utilization facility. As a result of this action, NPR
licensees will be subject to the fingerprinting and criminal history records checks requirements
specified in the NRC’s regulations until the NRC previously issued Orders EA-07-074 and EA07-098 pertaining to this matter.
The analysis presented in this document examines the benefits and costs of the final rule
requirements relative to the baseline of existing requirements, including current regulations and
the relevant orders. The key findings of the analysis are as follows:
•

Total Cost to Industry. The final rule is expected to lead to a total one-time cost across all
31 operating NPR licensees of approximately $51,000, followed by a total annual cost of
approximately $12,000. The total present value of these costs is $179,000 (using a 7percent discount rate) and $228,000 (using a 3-percent discount rate) over the next 20
years.

•

Average Cost per NPR licensee. The average NPR will incur a one-time cost of
approximately $1,600 followed by annual costs of approximately $400. Should a new NPR
be required to meet the rule without first being subjected to the orders, the corresponding
costs will be higher, at an estimated $28,200 in one-time costs, and $9,900 in annual costs.

•

Costs to NRC. The rule will result in a total one-time cost to the NRC of approximately
$144,000, followed by annual costs of approximately $37,000. The total present value of
these annual costs is $528,000 (using a 7-percent discount rate) and $677,000 (using a 3percent discount rate).

•

Annual Impact to the Economy. The final rule will result in an annual impact to the economy
estimated at approximately $83,000 (using a 7 percent discount rate, annualizing one-time
costs and savings over 20 years, and adding these “annualized” one-time costs to annual
costs), or approximately $77,000 (using a 3 percent discount rate). This rule is therefore not
a major rule as defined by the Congressional Review Act.

1

Note: All currently licensed research and test reactors (RTR) are nonpower reactors. NRC regulations
consider all RTRs a subset of nonpower reactors (NPRs). NPRs are defined in 10 CFR Part 50.2 and
include utilization facilities licensed under Atomic Energy Act (AEA) Section 103 and 104. The use of the
term NPR in place of RTR properly incorporates all Class 103 and Class 104 licensees defined in
§§ 50.21, and 50.22 as utilization facilities, although there are currently no NPR licensee that are not
RTRs. Therefore, the use of the term NPRs includes RTRs in this and all related rulemaking documents.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page ii

•

Value of Benefits Not Reflected Above. The incremental benefits result from the application
of fingerprint based criminal history checks to individuals prior to granting unescorted access
to vital areas. This expanded applicability (not contained in the orders) better addresses the
full range of NPR characteristics, and better fulfills the NRC’s responsibility under Section
149 of the AEA (i.e., to promote the common defense and security and protect public health
and safety). It also leads to related benefits in security and other attributes, and to better
regulatory efficiency.

•

Decision Rationale. This regulatory analysis concluded that the final rule is justified in view
of the industry costs and the qualitatively analyzed benefits noted above.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Abbreviations
AEA
ANPR
CFR
CRGR
EPAct
FBI
NPR
NRC
RTR
SGI
SNM

Atomic Energy Act (AEA) of 1954, as amended
Advance notice of proposed rulemaking
Code of Federal Regulations
Committee to Review Generic Requirements
Energy Policy Act of 2005 (EPAct)
Federal Bureau of Investigation
Nonpower Reactor
Nuclear Regulatory Commission
Research or test reactor
Safeguards Information
Special nuclear material

Page iii

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

1.

Page 1

Introduction

This document presents a regulatory analysis of a rule that establishes new requirements for
nonpower reactors (NPRs) as set forth by the U.S. Nuclear Regulatory Commission (NRC) in
Title 10, Part 73, of the Code of Federal Regulations (10 CFR Part 73). This introduction is
divided into three sections. Section 1.1 states the problem and the reasons for the rulemaking,
Section 1.2 provides other background information, and Section 1.3 discusses regulatory
objectives.

1.1

Statement of the Problem and Reasons for the Rulemaking

Section 652 of the Energy Policy Act of 2005 (EPAct), enacted on August 8, 2005, amended the
fingerprinting requirements of the Atomic Energy Act of 1954, as amended (AEA). Specifically,
the EPAct amended Section 149 of the AEA to require fingerprinting and Federal Bureau of
Investigation (FBI) identification and criminal history records checks before an individual may
have unescorted access to any utilization facility, including NPRs, or radioactive material or
other property subject to regulation by the NRC, or to Safeguards Information (SGI).
Although the NRC had previously taken several steps to provide additional regulatory oversight
for unescorted access to NPRs, the EPAct granted the NRC further authority to impose FBI
identification and criminal history records checks based on fingerprints of any person permitted
unescorted access to various NRC-regulated facilities, including NPRs.

1.2

Background

1.2.1

Current Regulations Governing Fingerprint Based Background Checks at NPRs

NRC regulations currently do not address fingerprinting and criminal history records checks for
NPR licensees, although they do address fingerprinting and criminal history records checks of
individuals seeking access to SGI (including by NPR licensees), as well as unescorted access
to nuclear power reactors. These regulations are located in 10 CFR § 73.57.
1.2.2

Commission Orders

To address the EPAct amendments regarding fingerprinting and criminal history records checks
for unescorted access at nonpower reactors, the NRC imposed two orders:
•
•

EA-07-074, "Issuance of Order Imposing Fingerprinting and Criminal History Records
Check Requirements for Unescorted Access to Research and Test Reactors," dated
April 30, 2007 (72 FR 25337; May 4, 2007); and
EA-07-098, "Order Imposing Fingerprinting and Criminal History Records Check
Requirements for Unescorted Access to the General Atomics’ Research and Test
Reactors," dated August 1, 2007 (72 FR 44590; August 8, 2007).

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 2

Licensees were required to submit fingerprints of individuals who were seeking or currently had
unescorted access. Individuals who had previously been subjected to fingerprinting that would
satisfy the requirements for unescorted access did not need to be fingerprinted again. These
orders required that a reviewing official consider the results of the FBI criminal history records
check in conjunction with other applicable requirements to determine whether an individual may
be granted or allowed continued unescorted access. The reviewing official was allowed to be
the same official previously approved by NRC for the Safeguards Information (SGI) order (i.e.,
Order EA-06-203 dated September 29, 2006 (71 FR 59140; October 6, 2006), that implemented
the EPAct fingerprinting and criminal history records check requirements for individuals seeking
access to SGI). The order required that an NRC approved reviewing official was the only
individual who could make the unescorted access determination. The decisions then had to be
documented.

1.3

Regulatory Objective

The NRC’s objective for the current rulemaking is to establish generically applicable
fingerprinting and criminal history check requirements for unescorted access to NPRs similar to
those previously imposed by the Commission orders.

2.

Identification and Preliminary Analysis of Alternative Approaches

This section presents the preliminary analysis of the alternatives that the staff considered to
meet the regulatory goals identified in the previous section. (Section 4 presents a more detailed
analysis of the final rule.) The staff considered four alternatives for revising the NPR
requirements, as discussed below.

2.1

Option 1:

No Action

Under Option 1, the no-action alternative, NRC would not have amended the current
regulations. Licensees would have continued to comply with Commission orders EA-07-074,
and EA-07-098. This option would have avoided certain costs that the rule will impose.
However, taking no action could have presented a problem for the licensing of new NPRs that
did not receive the orders. The NRC’s regulations would have been out of date and not have
represented the minimum requirements the Commission deems necessary to ensure the
adequate protection of public health and safety and the common defense and security. This
alternative would have directly conflicted with the Commission’s licensing obligations set forth in
Section 182 of the Atomic Energy Act of 1954, as amended (AEA).

2.2

Option 2:

Amend Regulations to Incorporate Orders

Under Option 2, NRC would have conducted a rulemaking to address changes in 10 CFR
§ 73.57 to incorporate, on a generic basis, the same fingerprinting and criminal history check
requirements for unescorted access to nonpower reactors as those previously imposed by the
Commission orders. Consequently, it would have required fingerprint based criminal history
records checks only for individuals who possess the capability and knowledge to make
unauthorized use of the special nuclear material (SNM) or to remove the SNM from the NPR.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 3

This option would not have addressed unescorted access to risk-significant materials and
equipment other than to SNM.
Through the rulemaking, the NRC would have improved regulatory efficiency and stability by
ensuring that all NPR licensees would be subject to uniform regulatory requirements for the
granting of unescorted access. In addition, codification of the requirements would enable the
NRC to require appropriate measures for new NPR license applicants, permitting the agency to
fulfill the NRC’s statutory obligations under the AEA.

2.3

Option 3:

Amend Regulations to Incorporate Orders and Address
Unescorted Access to Vital Areas

Option 3, like Option 2, requires fingerprint based criminal history records checks as a
requirement for granting unescorted access to special nuclear materials by individuals who
possess the capability and knowledge to make unauthorized use of the SNM or to remove the
SNM from the NPR. In addition, Option 3 addresses other potentially risk-significant materials
and equipment by requiring such checks for any individual seeking unescorted access to “vital
areas.” Vital area is defined in § 73.2 as “any area which contains vital equipment,” and vital
equipment is in turn defined in § 73.2 as “any equipment, system, device, or material, the
failure, destruction, or release of which could directly or indirectly endanger the public health
and safety by exposure to radiation. Equipment or systems which would be required to protect
public health and safety following such failure, destruction, or releases are also considered to be
vital.” These definitions apply to all the provisions within 10 CFR Part 73, and accordingly apply
to NPR licensees whose security requirements are governed by 10 CFR Part 73. The
equipment, systems, devices, and material that fall within the § 73.2 vital equipment definition
meet the utilization facility definition in Section 11.cc of the AEA. Hence fingerprinting
individuals who wish to have unescorted access to vital areas (which contain vital equipment)
ensures that individuals permitted access to the “utilization facility” as defined in the AEA, is
properly implemented in the NRC’s regulations.
Generally, the NRC expects that the “SNM material” criterion (present in both Option 2 and
Option 3) would be the more useful criterion for many NPR situations. However, the “vital area”
criterion in Option 3 adds sufficient flexibility to address the range of situations that could exist at
NPR facilities, including NPRs that have vital equipment other than SNM. For this reason, the
NRC believes that Option 3, and not Option 2, better fulfills NRC’s responsibilities under Section
149 of the Atomic Energy Act (i.e., to promote the common defense and security and to protect
the health and safety of the public).
Because Option 3 could enlarge the pool of personnel that would require fingerprinting, it could
result in higher costs to licensees relative to Option 2. However, NRC’s expectation is that the
“vital area” criterion will result in a similar group of people requiring fingerprinting when
compared to the NRC orders previously issued to NPR licensees. Based on the comments
submitted to the NRC in response to an advance notice of proposed rulemaking (ANPR)
published in the Federal Register (74 FR 17115) on April 14, 2009, it appears that NPRs may
not have to conduct any additional fingerprinting to comply with Option 3. Thus, the NRC
believes that Option 3 will impose a minimal burden, if any, on licensees.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 4

The NRC has estimated the benefits and costs of this option, as described in Sections 3 and 4
of this regulatory analysis, and has pursued Option 3 in the final rule for the reasons discussed
above and in Section 5.

2.4

Option 4:

Amend Regulations to Incorporate Orders and Address
Unescorted Access to Areas of Significance

Option 4 is similar to Option 3, but would require fingerprint based criminal history records
checks for any individual seeking unescorted access to “areas of significance” (e.g., controlled
access areas, or to a range of prescriptive locations regardless of whether the locations are
“vital” at particular NPRs). Given the variation in NPR facilities, however, the NRC determined
that this option would be difficult to implement in a manner that effectively promotes the
common defense and security and/or protects the health and safety of the public. In addition,
commenters on the ANPR indicated this option would be very burdensome relative to the
orders. For example, one commenter indicated that 200 additional individuals would have to be
fingerprinted to comply, with turnover of up to 25-50 percent per year.

3.

Evaluation of Benefits and Costs

This section examines the benefits and costs expected to result from this rulemaking, and is
presented in two subsections. Section 3.1 identifies attributes that are expected to be affected
by the rulemaking. Section 3.2 describes how benefits and costs have been analyzed.

3.1

Identification of Affected Attributes

This section identifies the factors within the public and private sectors that the regulatory
alternatives (discussed in Section 2) are expected to affect. These factors are classified as
"attributes" using the list of potential attributes provided by NRC in Chapter 5 of its Regulatory
2
Analysis Technical Evaluation Handbook. Affected attributes include the following:

2

•

Safeguards and Security Considerations – The actions are intended to establish
requirements that will provide high assurance that activities involving special
nuclear material are not inimical to the common defense and security and do not
constitute an unreasonable risk to the public health and safety.

•

Public Health (Accident) – The action will reduce the risk that public health will be
affected by radiological releases resulting from radiological sabotage.

•

Occupational Health (Accident) – The action will reduce the risk that occupational
health will be affected by radiological releases resulting from radiological
sabotage.

•

Industry Implementation – The action will require licensees to develop
procedures to address fingerprinting, processing of criminal history

Regulatory Analysis Technical Evaluation Handbook, Final Report, NUREG/BR-0184, Office of Nuclear Regulatory
Research, January 1997.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 5

records checks, granting unescorted access, protecting information, and
recordkeeping.
•

Industry Operation – The action will require licensees to conduct
fingerprinting of certain individuals and to incorporate criminal history
records checks into decisions on whether to grant unescorted access.

•

NRC Implementation – Under the action, NRC will be available if needed to
answer licensee questions regarding the new rule. NRC also will complete the
rulemaking.

•

NRC Operation – The action will require the NRC to process fingerprint requests
from licensees by sending the requests to the FBI. The NRC also will conduct
periodic inspections related to the new requirements.

•

Regulatory Efficiency – The action will result in enhanced regulatory
efficiency by replacing multiple orders with a single, uniform, and
transparent rulemaking that will apply to current as well as future
licensees.

•

Off-Site Property – The action will reduce the risk that off-site property will be
affected by radiological releases resulting from radiological sabotage.

•

On-Site Property – The action will reduce the risk that on-site property will be
affected by radiological releases resulting from radiological sabotage.

Attributes that are not expected to be affected under any of the rulemaking options include the
following: occupational health (routine); public health (routine); environmental considerations;
other government;3 general public; improvements in knowledge; and antitrust considerations.

3.2

Analytical Methodology

This section describes the process used to evaluate benefits and costs associated with the
various regulatory options. The benefits of the rule include any desirable changes in affected
attributes (e.g., monetary savings, improved safety resulting from new requirements) while the
costs include any undesirable changes in affected attributes (e.g., monetary costs, increased
exposures).
The analysis evaluates several attributes on a quantitative basis. These include industry
implementation, industry operation, NRC implementation, and NRC operation. Quantitative
analysis requires a baseline characterization, including factors such as the number of licensees
affected, the nature of the activities currently being conducted, and the types of new or modified
systems and procedures that licensees will implement, or will no longer implement, as a result
3

Although the rule requires licensees to send fingerprints to the FBI, this analysis does not address
impacts on the FBI because the fingerprints must be accompanied by payment of a fee to cover the FBI’s
costs.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 6

of the rule. In fact, however, licensees may respond to the rule in different ways depending on
their own site-specific characteristics, such as: (1) the physical characteristics of their sites; (2)
the current contents of their procedures and/or security plans; and (3) the institutional activities
occurring at or near their operations. It is beyond the scope of this analysis to characterize and
analyze individually affected licensees, in part because the information that would be needed
would include “Safeguards Information” that is protected under § 73.21.4 Nevertheless, the
analysis proceeds quantitatively for these attributes by making generalizing assumptions.
Sections 3.2.1–3.2.4 describe the most significant analytical data and assumptions used in the
quantitative analysis of these attributes. Additional details regarding the calculations used in the
analysis are presented in an appendix to the analysis.
The analysis relies on a primarily qualitative (rather than quantitative) evaluation of several of
the affected attributes (safeguards and security considerations, public health, occupational
health, off-site property, and on-site property) due to the difficulty in quantifying the impact of the
current rulemaking.5 These attributes will be affected by the regulatory options through the
associated reduction in the risks of radiological sabotage damage to or theft of the reactor fuel.
Quantification of any of these attributes would require estimation of factors such as: (1) the
frequency of attempted radiological sabotage and theft; (2) the frequency with which radiological
sabotage and theft attempts are (i.e., pre-rule) and will be (i.e., post-rule) successful; and (3) the
impacts associated with successful radiological sabotage attempts at nonpower reactors.
3.2.1

Baseline for Analysis

This regulatory analysis measures the incremental impacts of the final rule relative to a
“baseline,” which reflects the behavior anticipated should the final rule not be imposed. The
primary baseline used in this analysis assumes full licensee compliance with existing NRC
requirements for the 31 currently operating NPRs, including current regulations and relevant
orders, including in particular EA-07-074 and EA-07-098. Section 4.1 presents the estimated
incremental costs and benefits of the final rule relative to this baseline. Unless otherwise noted,
the estimated costs and benefits presented in this document reflect this baseline and are
referred to as the “main analysis.”
The analysis also considers costs for a single new NPR that is planned but not yet built. This
NPR will be subject to the final rule but not the orders. Therefore, in the main analysis, this
facility will incur very different costs than the NPRs that already are operating. To avoid
presenting results that are misleading or confusing, the costs to this future NPR are segregated
from the other results in the main analysis.
The NRC staff also has prepared a sensitivity analysis as part of this regulatory analysis, in
accordance with the agency’s regulatory analysis guidelines. The sensitivity analysis, like the
main analysis, estimates the incremental savings and costs of the final rule, but it assumes an
alternative baseline consisting of the NPR requirements that would be in place if NRC had not
issued Orders EA-07-074 and EA-07-098. This analysis is referred to as the “pre-order baseline
analysis,” and its results appear in Section 4.2. In the pre-order baseline, the results for all 32
4

Safeguards Information under 10 CFR 73.21 includes, for example, Security Plans and security procedures.
The regulatory efficiency attribute also is evaluated qualitatively, by definition. See NRC’s Regulatory Analysis
Technical Evaluation Handbook, Section 5.5.14.

5

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 7

NPRs (i.e., the 31 that currently are operating plus the one planned NPR) are presented
together (because, in contrast to the main analysis, it is not misleading to do so, as their preorder baseline costs are very similar).
3.2.2

Research or Test Reactor Characteristics

The analysis models a total of 32 nonpower reactors, including 31 operating NPRs and one
planned NPR (as discussed in Section 3.2.1). It assumes that incremental costs and savings
accrue to sites independent of the reactor design or the type of entity owning the reactor (i.e.,
academic, private, or federal). It also assumes that all nonpower reactors are in full compliance
with current requirements imposed by NRC’s regulations and Commission orders. As a result,
the analysis applies the same average cost per activity to each site, even though in reality some
sites will incur higher or lower costs. The analysis assumes that currently operating NPRs will
continue to operate for 20 years. Therefore, costs and savings are estimated for the 32 reactor
sites over a 20 year period, with each year’s costs or savings discounted back at a 7-percent
and 3-percent discount rate, in accordance with NUREG/BR-0058, Rev. 4, “Regulatory Analysis
Guidelines of the U.S. Nuclear Regulatory Commission.” (See Section 4.1 for these results.)
3.2.3

Data

Information on operating reactors and shutdown dates has been taken from NUREG-1350, Vol.
21, NRC Information Digest, 2010-2011 Edition. To the extent practical, quantitative information
(e.g., costs and savings) and qualitative information (e.g., the nature and magnitude of
safeguards and security impacts) on attributes affected by the rule has been obtained from, or
developed in consultation with, NRC staff and commercial vendors.
NRC headquarters staff discussed their understanding of the potential differences between the
new requirements and the current measures in place at existing licensees and have
incorporated available, non-safeguards, information into this regulatory analysis. The NRC
sought insight from stakeholders on implementing costs and related issues via questions in the
advance notice of proposed rulemaking published in the Federal Register (74 FR 17115, April
14, 2009).
3.2.4

Additional Assumptions

The analysis employs a number of assumptions, including the following:
•

The analysis covers a 20-year time horizon beginning in calendar year 2012, and
assumes all current NPR licensees continue to operate through the 20-year period.

•

To help ensure continuity in the event of staff turnover, each NPR is assumed to seek
and obtain approval from NRC for two individuals to serve as reviewing officials of
criminal history reports, and to ensure that two individuals are qualified to obtain
fingerprints. The analysis also assumes that one reviewing official and one fingerprinter
must be replaced each year due to staff turnover.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 8

•

The analysis includes costs for “manage ongoing fingerprint process,” which captures
the following activities: (1) ordering fingerprinting forms; (2) ensuring that there is at
least one employee (e.g., two) trained on how to take fingerprints; and (3) ensuring that
there is at least one employee (e.g., two) that the NRC has approved to review
fingerprinting records. If there is not an employee trained on taking fingerprints, they will
identify an employee to be trained and make sure the training has been completed.
Similarly, if there is not an employee who is approved by the NRC to review fingerprint
records, the licensee will identify an employee to gain approval and make sure that
employee has received approval.

•

At the time of the initial fingerprinting, 24 individuals per licensee will need to be
fingerprinted plus 3 individuals annually thereafter due to staff turnover. The analysis
also assumes that an additional authorization applicant per licensee would possess a
favorably-decided criminal history check within the past five years and therefore would
be required to complete an additional fingerprint application under the final rule (unless
otherwise exempt), but not under the orders.

•

At the time of the initial fingerprinting, three individuals per licensee plus one individual
annually per licensee thereafter will receive a final adverse determination based on the
criminal history records received as a result of their fingerprint application. The analysis
also assumes that one individual annually per licensee will appeal a final adverse
determination.

•

The NRC will need to notify NPR licensees annually regarding fingerprint application fee
changes.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

4.

Page 9

Results

This section presents the analytical results which are organized into five separate sections:
•

Section 4.1 presents findings on the overall benefits and costs of the final rule under the
main analysis.

•

Section 4.2 summarizes the results of the sensitivity analysis addressing the pre-order
baseline.

•

Section 4.3 considers the findings relative to NRC’s backfit rule.

•

Section 4.4 considers the findings on a disaggregated basis.

•

Section 4.5 addresses the applicability of a safety goal evaluation to the current
rulemaking.

•

Section 4.6 describes the information that is provided to the Committee to Review
Generic Requirements (CRGR) for information only.

4.1

Benefits and Costs

This section summarizes the benefits and costs estimated for the regulatory options. To the
extent that the affected attributes could be analyzed quantitatively, the net effect of each option
has been calculated and is presented below. However, some values and impacts could be
evaluated only on a qualitative basis.
The results of the benefit-cost analysis are summarized in Exhibits 4-1 and 4-2. Relative to the
no-action alternative (Option 1), the final rule (i.e., Option 3) will result in a net quantitative cost
estimated between $707,000 and $905,000 (7-percent and 3-percent discount rate,
respectively), with higher costs to the NRC than to industry.
The analysis also estimates that the final rule will result in minor qualitative benefits in the
following attributes: regulatory efficiency, safeguards and security, public health (accident),
occupational health (accident), off-site property, and on-site property. The benefits will be minor
because most of the benefits are attributable to Orders EA-07-074 and EA-07-098 rather than
the final rule (see Section 4.2 for a discussion of results under the pre-order baseline). The
incremental benefits of the rule result from the expansion of the scope of fingerprint based
criminal history checks to include individuals seeking unescorted access to vital areas. This
expanded scope, which was not addressed in the orders, better fulfills NRC’s responsibilities
under Section 149 of the Atomic Energy Act (i.e., to promote the common defense and security
and to protect the health and safety of the public). See additional discussion in Section 2.3.
Specific benefits will include enhanced regulatory efficiency through regulatory and compliance
improvements. There also will be benefits in increased security and from the resulting
decreased risks to public health, occupational health, off-site property, and on-site property.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 10

Exhibit 4-1
Summary of Benefits/Savings and Costs/Burdens
Net Monetary Savings (or Costs) Total Present Value

Non-Monetary Benefits/Costs

Option 1: No Action

Qualitative Benefits and Costs:

$0

None.

Option 3: Final Rule

Qualitative Benefits:

Industry (31 operating NPRs):
($193,000) using a 7% discount rate
($242,000) using a 3% discount rate

Safeguards and Security: Increased level of assurance that NPRs are
safeguarded from attacks and theft of SNM.

NRC:
($529,000) using a 7% discount rate
($677,000) using a 3% discount rate

Regulatory Efficiency: Enhanced regulatory efficiency through
regulatory and compliance improvements.
Public Health (Accident): Reduced risk that public health will be
affected by radiological releases resulting from attacks and theft of
SNM.
Occupational Health (Accident): Reduced risk that occupational health
will be affected by radiological releases resulting from attacks and theft
of SNM
Off-Site Property: Reduced risk that off-site property will be affected by
radiological releases resulting from attacks and theft of SNM.
On-Site Property: Reduced risk that on-site property will be affected by
radiological releases resulting from attacks and theft of SNM.
Qualitative Costs:
None.

Exhibit 4-2
Industry and NRC Savings and Costs
Total Savings and Costs
Entity
Industry
NRC
Total

•

One-Time
Saving
(Cost)
($65,000)
($144,000)
($209,000)

Annual
Saving
(Cost)
($12,000)
($37,000)
($50,000)

Average per Licensee

NPV
(7 percent)

NPV
(3 percent)

One-Time
Saving (Cost)

($193,000)
($529,000)
($721,000)

($242,000)
($677,000)
($919,000)

($2,100)
n/a
($2,100)

Annual
Saving
(Cost)
($400)
n/a
($400)

Total Cost to Industry. The final rule will lead to a total one-time cost across all RTR
licensees of approximately $65,000, followed by total annual costs on the order of $12,000.
The total present value of these costs is $193,000 (using a 7-percent discount rate) and
$242,000 (using a 3-percent discount rate) over the next 20 years.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 11

•

Average Cost per RTR licensee. The average RTR will incur a one-time cost of
approximately $2,100 followed by annual costs of approximately $400.

•

Value of Benefits Not Reflected Above. The cost figures shown above do not reflect the
value of the benefits of the final rule. These benefits are evaluated qualitatively above.

•

Costs to NRC. The rule will result in a total one-time cost to the NRC of approximately
$144,000, followed by annual costs of approximately $37,000. The total present value of
these annual costs is $529,000 (using a 7-percent discount rate) and $677,000 (using a 3percent discount rate).

Exhibits 4-3 and 4-4 show the one-time and annual costs and savings of the rule to,
respectively, NPR licensees and the NRC for each activity (or set of activities) that will need to
be conducted under the final rule.
Exhibit 4-3
Industry Savings and Costs by Activity
Average Cost per
Licensee
Activity

Total Cost (All
Licensees)

One-time
Savings
(Cost)

Annual
Savings
(Cost)

One-time
Savings
(Cost)

Annual
Savings
(Cost)

Develop procedures for protecting records from
unauthorized disclosure (73.57(f)(1)) and
ensuring the quality of fingerprinting (73.57(d)(1))

-

-

-

-

Manage ongoing fingerprinting process (73.57)

-

-

-

-

($1,239)

-

($38,400)

-

Ensure capability of fingerprinter(s) per
procedures, e.g., by training (73.57(d)(1))

-

-

-

-

Obtain NRC approval for reviewing official(s) of
criminal history records (73.57(g)(1))

-

-

-

-

Fingerprint applicants for authorization (includes
notifying them of the process, taking information
and fingerprints, and sending fingerprint
application and payment for each affected
individual) (73.57(b)(1), (3), (6), 73.57(d)(1),
(3)(i))

($258)

-

($8,000)

-

($400)

($400)

($12,400)

($12,400)

($48)

-

($1,500)

-

Evaluate security plan considering the
constraints of vital areas (73.57(g)(2)(i))

Fingerprint applicants for authorization (as
above) for each affected individual with a
favorably-decided U.S. Government criminal
history check within the last 5 years unless
otherwise exempt (exempt in orders)
Receive and review records from NRC and make
a decision on approval or final adverse

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 12

determination for each affected individual
(73.57(b), (g))
Document decision for each individual
fingerprinted (orders)

($97)

-

($3,000)

-

Inform each affected individual of final adverse
determinations (73.57(e)(1), (e)(2))

($40)

-

($1,250)

-

-

-

-

-

($ 2,082)

($ 400)

($ 64,550)

($ 12,400)

Pay fingerprint application fee for individuals
(73.57(d)(3))
Total

Exhibit 4-4
NRC Savings and Costs by Activity
Average Cost per
Licensee
Requirement

Total Cost (All
Licensees)

One-time
Savings
(Cost)

Annual
Savings
(Cost)

One-time
Savings
(Cost)

Annual
Savings
(Cost)

-

-

-

-

($8)

-

($240)

-

($4,645)

-

($144,000)

-

-

($1,200)

-

($37,200)

Inspect licensees records to determine
compliance with regulations (73.57(f)(4))

-

-

-

-

Directly notify licensees regarding any changes
in fingerprinting application fees (73.57(d)(3)(ii))

-

-

-

-

($4,653)

($1,200)

($144,240)

($37,200)

Approve reviewing officials (73.57(g)(1))
Process fingerprint applications and criminal
history records (73.57(b)(6), (d))
Finalize the rulemaking
Respond to individual appeals of final adverse
determinations (76.57(e)(3))

Total

Finally, Exhibit 4-5 shows the cost results related to a single new NPR that is planned but not
yet built. This NPR will be subject to the final rule but not the orders. Therefore, in the main
analysis, this facility will incur different costs from the NPRs that already are operating. To
avoid presenting misleading results, the costs to this future NPR are segregated from the other
results.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 13

Exhibit 4-5
Industry and NRC Savings and Costs Related to a Single New NPR
Total Savings and Costs

Entity
Industry
NRC
Total

4.2

One-Time
Saving
(Cost)

Annual Saving
(Cost)

NPV
(7 percent)

NPV
(3 percent)

($28,225)
($780)
($29,005)

($9,855)
($1,980)
($11,835)

($130,082)
($21,244)
($151,327)

($169,386)
($29,141)
($198,527)

Sensitivity Analysis – Pre-Order Baseline

The NRC has performed a sensitivity analysis using an alternative baseline (called the
“pre-order baseline”) that considers the incremental costs of the final rule as if NRC had not
issued Orders EA-07-074 and EA-07-098. Benefits and costs are higher under this baseline,
because it reflects both the incremental benefits and costs of the final rule and the incremental
benefits and costs of the orders. Note that the impacts of the orders already have been
incurred, but they have not previously been analyzed. This analysis includes the results for the
31 operating NPRs as well as an additional NPR that is planned but not yet built.6
The key findings of the sensitivity analysis are presented in Exhibit 4-6 and are discussed
below:
Exhibit 4-6
Sensitivity Analysis under the Pre-Order Baseline:
Industry and NRC Savings and Costs
Total Savings and Costs
Entity
Industry
NRC
Total

6

Average per Licensee

One-Time
Saving
(Cost)
($942,000)

Annual
Saving
(Cost)
($315,000)

NPV
(7 percent)

NPV
(3 percent)
($5,459,000)

One-Time
Saving
(Cost)
($29,400)

Annual
Saving
(Cost)
($9,900)

($4,201,000)

($169,000)
($1,111,000)

($63,000)
($379,000)

($824,000)
($5,025,000)

($1,077,000)
($6,535,000)

n/a
($29,400)

n/a
($9,900)

As noted in the previous section, the main analysis cost results for the planned NPR were segregated
from the results for operating NPRs because it would have been misleading to blend them. That is not an
issue in the pre-order baseline, so the results for all 32 NPRs are presented together in Exhibit 4-6 and
Exhibit 4-7.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 14

•

Total Cost to Industry. The final rule will lead to a total one-time cost across all NPR
licensees of approximately $942,000, followed by total annual costs of approximately
$315,000. The total present value of these costs is $4.2 million (using a 7-percent discount
rate) and $5.5 million (using a 3-percent discount rate) over the next 20 years.

•

Average Cost per NPR licensee. The average NPR will incur a one-time cost of
approximately $29,000 followed by annual costs of approximately $10,000.

•

Value of Benefits Not Reflected Above. The cost figures shown above do not reflect the
value of the benefits of the final rule. Compared to the benefits that are evaluated
qualitatively in Section 4.1, benefits under the pre-order baseline are much higher. It is
likely that almost all of the benefit of the final rule has been obtained already through the
imposition of Orders EA-07-074 and EA-07-098.

•

Costs to NRC. The rule will result in a one-time cost to NRC of approximately $169,000,
followed by annual costs of approximately $63,000. The total present value of these costs is
$824,000 (using a 7-percent discount rate) and $1.1 million (using a 3-percent discount
rate).

Exhibit 4-7 shows, relative to the pre-order baseline, the one-time and annual costs and savings
of the rule to NPR licensees for each activity (or set of activities) that will need to be conducted
under the final rule.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 15

Exhibit 4-7
Sensitivity Analysis under the Pre-Order Baseline:
Industry Savings and Costs by Activity
Average Cost per
Licensee
Activity

Total Cost (All Licensees)

One-time
Savings
(Cost)

Annual
Savings
(Cost)

One-time
Savings
(Cost)

Annual
Savings
(Cost)

Develop procedures for protecting records from
unauthorized disclosure (73.57(f)(1)) and
ensuring the quality of fingerprinting
(73.57(d)(1))

($7,000)

-

($224,000)

-

Manage ongoing fingerprinting process (73.57)

-

($6,000)

-

($192,000)

Evaluate security plan considering the
constraints of vital areas (73.57(g)(2)(i))

($1,200)

-

($38,400)

-

Ensure capability of fingerprinter(s) per
procedures, e.g., by training (73.57(d)(1))

($2,200)

($800)

($70,400)

($25,600)

Obtain NRC approval for reviewing official(s) of
criminal history records (73.57(g)(1))

($2,000)

($400)

($64,000)

($12,800)

($9,600)

($1,200)

($307,200)

($38,400)

($400)

($400)

($12,800)

($12,800)

Receive and review records from NRC and
make a decision on approval or final adverse
determination for each affected individual
(73.57(b), (g))

($1,875)

($225)

($60,000)

($7,200)

Document decision for each individual
fingerprinted (orders)

($3,750)

($450)

($120,000)

($14,400)

Inform each affected individual of final adverse
determinations (73.57(e)(1), (e)(2))

($750)

($250)

($24,000)

($8,000)

Pay fingerprint application fee for individuals
(73.57(d)(3))

($650)

($130)

($20,800)

($4,160)

($29,425)

($9,855)

($941,600)

($315,360)

Fingerprint applicants for authorization
(includes notifying them of the process, taking
information and fingerprints, and sending
fingerprint application and payment for each
affected individual) (73.57(b)(1), (3), (6),
73.57(d)(1), (3)(i))
Fingerprint applicants for authorization (as
above) for each affected individual with a
favorably-decided U.S. Government criminal
history check within the last 5 years, unless
otherwise exempt (exempt in orders)

Total

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 16

Exhibit 4-8 shows the one-time and annual costs and savings of the rule to the NRC for each
activity (or set of activities) that it will need to conduct under the final rule.
Exhibit 4-8
Sensitivity Analysis under the Pre-Order Baseline:
NRC Savings and Costs by Activity
Average Cost per
Licensee
Requirement

Total Cost (All
Licensees)

One-time
Savings
(Cost)

Annual
Savings
(Cost)

One-time
Savings
(Cost)

Annual
Savings
(Cost)

Approve reviewing officials (73.57(g)(1))

($480)

($240)

($15,360)

($7,680)

Process fingerprint applications and criminal
history records (73.57(b)(6), (d))

($300)

($36)

($9,600)

($1,152)

($4,500)

-

($144,000)

-

Respond to individual appeals of final adverse
determinations (76.57(e)(3))

-

($1,200)

-

($38,400)

Inspect licensees records to determine
compliance with regulations (73.57(f)(4))

-

($480)

-

($15,360)

Directly notify licensees regarding any changes
in fingerprinting application fees (73.57(d)(3)(ii))

-

($24)

-

($768)

($5,280)

($1,980)

($168,960)

($63,360)

Finalize the rulemaking

Total

4.3

Backfit Analysis

The NRC’s backfit provision are found in the regulations at 10 CFR §§ 50.109, 70.76, 72.62,
76.76, and in 10 CFR Part 52. Under § 50.2, nonpower reactors are research or test reactors
licensed in accordance with Sections 103 or 104c of the AEA and 10 CFR §§ 50.21(c) or 50.22
for research and development. The NRC has determined that the backfit provision in § 50.109
does not apply to test, research, or training reactors. The NRC has further determined that the
amendments to § 73.57 contained in this rule do not involve any provisions that would impose
backfits on nuclear power plant licensees or on licensees for special nuclear material,
independent spent fuel storage installations or gaseous diffusion plants as defined in 10 CFR
chapter I. Therefore, a backfit analysis was not prepared for this rule.

4.4

Disaggregation

In order to comply with the guidance provided in Section 4.3.2 (“Criteria for the Treatment of
Individual Requirements”) of the Regulatory Analysis Guidelines, the NRC conducted a
screening review to ensure that the aggregate analysis does not mask the inclusion of individual
rule provisions that are not cost-beneficial when considered individually and not necessary to

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 17

meet the goals of the rulemaking. Consistent with the Regulatory Guidelines, the NRC
evaluated, on a disaggregated basis, each of the new regulatory provisions expected to result in
incremental costs or savings. Based on this screening review, the NRC staff has determined
that each of the requirements is needed and is cost-justified relative to its qualitative benefits.

4.5

Safety Goal Evaluation

Safety goal evaluations are applicable only to regulatory initiatives considered to be generic
safety enhancement backfits subject to the substantial additional protection standard at
§ 50.109(a)(3).7 Some aspects of the rule may qualify as generic safety enhancements
because they may affect the likelihood of core damage or spent fuel damage, which generally
are the focus of a quantitative safety goal evaluation. However, the magnitude of this change is
not readily quantifiable due to uncertainties discussed in Section 3.2 above. A more dominant
effect of the rule is to reduce the probability of other types of damage associated with acts of
sabotage or theft, although this effect is equally difficult to quantify. Because the change in
safety associated with the rulemaking cannot be quantified, the regulatory changes cannot be
compared to NRC’s safety goals.

4.6

CRGR Results

This section addresses regulatory analysis information requirements for rulemaking actions or
staff positions subject to review by the Committee to Review Generic Requirements (CRGR).
All information that would be provided to the CRGR is presented in this regulatory analysis, or in
the Federal Register notice for the final rule. As a reference aid, Exhibit 4-9 provides a crossreference between the relevant information and its location in this document or the Federal
Register notice. This information is provided to the CRGR for information only, not for review
and approval.

7

A safety goal evaluation is not needed, therefore, for new requirements falling within the backfit exceptions at 10
CFR 50.109(a)(4)(i)-(iii).

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Page 18

Exhibit 4-9
Specific CRGR Regulatory Analysis Information Requirements
CRGR
Charter
Citation

Information Item to be Included in a Regulatory
Analysis Prepared for
CRGR Review (information only)

Where Item is Discussed

Generic requirement or staff position as it is to be sent
out to licensees or issued for public comments. When
the objective or intended result of a generic requirement
or staff position can be achieved by setting a readily
quantifiable standard that has an unambiguous
relationship to a readily measurable quantity and is
enforceable, the requirements should specify the
objective or result to be attained rather than prescribing
how the objective or result is to be attained.

Rule text in Federal Register
Notice

Regulatory Analysis, Section 4.1

(iii)

The sponsoring office’s position on whether the action
will increase requirements or staff positions, implement
existing requirements or staff positions, or relax or
reduce existing requirements or staff positions.

App. C

The method of implementation.

Regulatory Analysis, Section 6

Identification of the category of power reactors or nuclear
materials facilities/activities to which the generic
requirement or staff position will apply.

Regulatory Analysis, Section
3.2.2 and 4.2

If the action involves a backfit (other than a compliance
or adequate protection backfit), a backfit analysis
containing the required items and rationale.

Regulatory Analysis, Section 4.2

For each proposed power reactor backfit (other than a
compliance or adequate protection backfit), an
assessment of how the action relates to the
Commission’s Safety Goal Policy Statement.

Regulatory Analysis, Section 4.4

App. C
(i)

App. C

(iv)
App. C
(vi)
App. C
(vii)
(viii)
App C.
(xi)

4.7

Regulatory Flexibility Analysis

The NRC has determined that only one NPR licensee falls within the definition of “small entities”
set forth in the size standards established by the NRC (10 CFR 2.810). Moreover, as discussed
in Section 4.1, the final rule is expected to result in only very modest costs to NPRs. Therefore,
the NRC has determined that the final rule will not have a significant economic impact on a
substantial number of small entities.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

5.

Page 19

Decision Rationale

Relative to the “no-action” alternative, the final rule will result in a net cost of approximately
$721,000 (total present value over a 20-year period), assuming a 7-percent discount rate, or
approximately $919,000 assuming a 3-percent discount rate. This impact can be apportioned
as follows:
•

The final rule will lead to a total one-time cost across all NPR licensees of approximately
$65,000, followed by total annual costs of approximately $12,000. The total present value of
these costs is $193,000 (using a 7-percent discount rate) and $242,000 (using a 3-percent
discount rate) over the next 20 years. The average NPR will incur a one-time cost of
approximately $1,600 followed by annual costs of approximately $400.

•

The rule will result in a total one-time cost to the NRC of approximately $144,000, followed
by annual costs of approximately $37,000. The total present value of these annual costs is
$529,000 (using a 7-percent discount rate) and $677,000 (using a 3-percent discount rate).

The benefits of the final rule will be minor because most of the benefits have already accrued as
a result of Orders EA-07-074 and EA-07-098. The incremental benefits of the rule result from
the expansion of the scope of fingerprint based criminal history checks to include individuals
seeking unescorted access to vital areas. This expanded scope (which was not addressed in
the orders) better addresses the full range of NPR characteristics, and better fulfills NRC’s
responsibilities under Section 149 of the Atomic Energy Act (i.e., to promote the common
defense and security and to protect the health and safety of the public). While minor, the
specific benefits of the final rule will include enhanced regulatory efficiency through regulatory
and compliance improvements; increased security; and the resulting reductions in risk to public
health, occupational health, off-site property, and on-site property.
Based on the NRC's assessment of the modest costs to industry and other benefits of the final
rule, the agency has concluded that the rule provisions are justified.
The final rule will result in an annual impact to the economy of approximately $83,000 (using a
7 percent discount rate, annualizing the one-time costs over 20 years, and adding these
“annualized” one-time costs to the annual costs), or approximately $77,000 (using a 3 percent
discount rate). This rule is therefore not a major rule as defined by the Congressional Review
Act.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

6.

Page 20

Implementation

This section identifies how and when the rule will be implemented, the required NRC actions to
ensure implementation, and the impact on NRC resources.

6.1

Schedule

The final rulemaking is expected to be published in August, 2011, and to become effective 120
days following publication in the Federal Register.

6.2

Impacts on Other Requirements

The rulemaking will result in an annual expenditure of agency resources for the NRC to respond
to appeals of adverse determinations from individuals denied unescorted access to NPRs due
to the results of fingerprint based criminal history checks. The NRC does not plan to develop
implementation guidelines. These activities will result in annual costs of approximately $37,000.

Regulatory Analysis: Fingerprint Based Criminal History Records Checks at RTRs

Appendix: Cost Detail

Page 21