Final Supporting Statement NRC Form 741

FINAL OMB SUPPORTING STATEMENT

FOR

DOE/NRC FORM 741, NUCLEAR MATERIAL TRANSACTION REPORT AND

NUREG/BR-0006, REVISION 7

“INSTRUCTIONS FOR COMPLETING NUCLEAR MATERIAL TRANSACTION REPORTS, (DOE/NRC FORMS 741 and 740M)”

(3150-0003)

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REVISION

_{Description of the Information Collection}

The U.S. Nuclear Regulatory Commission (NRC) is required to collect nuclear material transaction information for domestic safeguards use and to make it available to the International Atomic Energy Agency (IAEA). One of the forms that NRC uses to collect this information is U.S. Department of Energy (DOE)/NRC Form 741, “Nuclear Material Transaction Report.”

Form 741 is used to document inventory changes for special nuclear material and source material in the Nuclear Materials Management and Safeguards System (NMMSS). The licensees who are primarily affected are any facilities that possess or are licensed to possess source and special nuclear materials within the United States. The NRC provides the form and instructions to all affected licensees, who must submit reports in computer readable format.

Licensees submit reports on a continuing basis when specified events occur, such as the receipt, transfer, or inventory adjustment of licensed material. The instructions for completing DOE/NRC Form 741 are in NUREG/BR-0006, “Instructions for Completing Nuclear Material Transaction Reports (DOE/NRC Forms 741 and 740M).”

Collection of the subject information corresponds to the physical movement or transmutation of special nuclear material or source material covered by the regulation. The information is required by regulations in Title 10 of the Code of Federal Regulations (10 CFR) Parts 74 (section 74.15) and 75 (sections 75.12, 75.33 and 75.34) to be collected from the shipper immediately following dispatch and from the receiver within 10 days of receipt.

The collection is being revised to include the approximate 10 additional licensees required to report pursuant to the U.S.-IAEA Caribbean Territories Safeguards Agreement, INFCIRC/366.

A. JUSTIFICATION

1. Need for and Practical Utility of the Information Collection

In order for the United States to fulfill its responsibilities as a participant in the U.S.-IAEA Safeguards Agreements and satisfy its domestic safeguards responsibilities, it is necessary for licensees to submit DOE/NRC Form 741, "Nuclear Material Transaction Report" whenever an inventory change occurs involving source or special nuclear material. This submittal informs NMMSS of the inventory change, so that the facility’s inventory will be maintained as up-to- date, within NMMSS.

2. Agency Use of Information

The NRC is required to collect nuclear material transaction information for domestic safeguards use and to make it available to the IAEA. NRC uses DOE/NRC Form 741, together with NUREG/BR-0006, Revision 7 (the instructions for completing the forms), to collect, retrieve, analyze, and maintain relevant inventory data. Without the report form, NRC's ability to collect and maintain these data would be severely limited.

3. Reduction of Burden through Information Technology

There are no legal obstacles to reducing the burden associated with this collection. The NRC encourages respondents to use information technology when it would be beneficial to them. The NRC issued a regulation on October 10, 2003 (68 FR 58791), consistent with the Government Paperwork Elimination Act, which allows its licensees, vendors, applicants, and members of the public the option to make submissions electronically via CD-ROM, e-mail, special Web-based interface, or other means.

Form 741 is used by both NRC and the DOE. The NRC provides the form and instructions to all affected licensees, who must submit reports in computer readable format. Once submitted by licensees, information from these forms is saved in the NMMSS. Common reporting forms are used to minimize the reporting burden on industry members required to provide regulations or contractual obligations. The licensee is thus able to file one report to meet the requirements of both agencies. Compliance with specific reporting requirements is monitored by the agency for which the specific data are required.

It is estimated that 99 percent of the responses are filed electronically.

4. Effort to Identify Duplication and Use Similar Information

No sources of similar information are available. There is no duplication of requirements. In addition, the use of common reporting forms by DOE and NRC minimizes the reporting burden on industry members required to provide nuclear material data to one or both agencies.

5. Effort to Reduce Small Business Burden

The burden on licensees will vary with the size and type of licensed operation. The burden on small licensees represents a small percent of the total burden. Further reduction would not enable NRC to fulfill its international or domestic responsibilities.

6. Consequences to Federal Program or Policy Activities if the Collection is not

Conducted or is Conducted Less Frequently

Collection of the subject information corresponds to the physical movement or transmutation of special nuclear material or source material covered by the regulation. The information is required by regulations in Title 10 of the Code of Federal Regulations (10 CFR) Parts 74 (section 74.15) and 75 (sections 75.12, 75.33 and 75.34) to be collected from the shipper immediately following dispatch and from the receiver within 10 days of receipt. This is the minimum frequency of collection required to satisfy reporting regulations and as required by the facility’s license to possess material.

7. Circumstances which Justify Variation from the Office of Management and Budget (OMB) Guidelines

There is no variation from OMB guidelines.

8. Consultations outside the NRC

Opportunity for public comment on the information collection requirements for this clearance package was published In the Federal Register on October 28, 2016 (81 FR 75167). In addition, six general licensees who are likely to be impacted by the final rule were emailed as part of the public consultation process. No comments were received.

9. Payment or Gift to Respondents

Not applicable.

10. Confidentiality of Information

Confidential and proprietary information is protected in accordance with NRC

regulations at 10 CFR 9.17(a) and 10 CFR 2.390(b).

11. Justification for Sensitive Questions

None.

12. Estimated of Annualized Burden and Burden Hour Cost

Licensees submit reports on a continuing basis when specified events occur, such as the receipt, transfer, or inventory adjustment of licensed material. They must submit the reports in computer readable format. The data are then entered into the NMMSS, maintained by an NRC contractor. The information is not compiled or published.

The NRC expects approximately 350 licensees to submit an estimated annual average of 10,000 DOE/NRC 741 forms each year. This estimate is based on calendar year 2015 data provided by NMMSS staff, and the NRC anticipates that the number of annual submissions will remain stable during the next 3 years. The burden of preparation and submission of each report is estimated to be 1.25 hours. The total resulting burden for required submissions of the form by all licensees will be 12,500 hours (10,000 reports x 1.25 hours/report).

The total annual cost to all respondents to comply with this requirement is estimated to be $3,312,500 (12,500 hours x $265/hour). Cost estimates are calculated at a rate of $265 per hour, which is based on NRC's fee recovery rate.

13. Estimate of Other Additional Costs

There are no additional costs.

14. Estimated Annualized Cost to Federal Government

The collected information is not submitted to the NRC. Licensees report directly to the NMMSS contractor. The data contained in the NMMSS is available to various NRC staff that uses it to perform their assigned job functions; however, the individual submissions are not reviewed by NRC staff. The NRC costs for NMMSS operations were approximately $1,600,000 during fiscal year 2015.

This monetary value reflects the use of NMMSS for the collection of Form

_{741 data, in addition to other data collections and operations.}

15. Reason for Change in Burden or Cost

The estimated burden for the NRC Form 741 has not changed.

Changes to 10 CFR to implement the U.S.-IAEA Caribbean Territories Safeguards Agreement will require 10 new small entities to fill out existing OMB-approved forms related to nuclear material accounting information to fulfill the obligations of the safeguards agreement. There is no significant change in the overall burden due to the addition of these entities, because approximately 10 new entities are expected to submit 1 form annually, thus not overall changing the approximate annual submission of 10,000 forms.

_{16. Publication for Statistical Use}

None.

17. Reason for Not Displaying the Expiration Date

Not applicable.

18. Exceptions to the Certification Statement

None.

B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS

Statistical methods are not used in this collection of information.