Attachment J-4 - NRC and Navy Interagency Agreement.pdf

Disposition of Defueled Nuclear-Powered ex-ENTERPRISE (CVN 65) U.S. Navy

Interagency Agreement for NRC Support Services (FY25-FY30)

Summary

Naval Sea Systems Command (NAVSEA), in collaboration with the Naval Nuclear Propulsion

Program (NNPP), a joint U.S. Navy (Navy) and Department of Energy Program, also referred to as Naval Reactors, is contracting for commercial dismantlement and disposal of the defueled ex-

ENTERPRISE (CVN 65).

NAVSEA is the acquisition organization responsible for this project and holder of the contract on behalf of the U.S. Navy. Naval Reactors is responsible for the public health and safety associated with the disposition of defueled nuclear-powered ships of the Navy per the Atomic Energy Act

(AEA) of 1954, as amended. Naval Reactors is also responsible for management and execution of this Interagency Agreement (IA) with the U.S. Nuclear Regulatory Commission (NRC).

In preparation for the contracted work, the NNPP and NRC have developed a plan for the NRC to provide support services to the Navy and the NNPP governed by a regulatory framework described in this IA. This plan is similar to the successful regulatory model (ML20177A172) applied to the Surface Ship Support Barge (SSSB) decommissioning project from 2020-2023.

Continuing the SSSB oversight model, the NRC will provide the Navy and Naval Reactors with typical NRC oversight consisting of technical support, independent analyses, and inspection services to assist Naval Reactors in fulfilling its decommissioning responsibility in support of public health and safety. As with the SSSB IA, the NRC will employ a similar regulatory framework used for the decommissioning of complex materials licensees with exceptions noted below. The inspection program will utilize the Inspection Manual Chapter (IMC) 2561, “Decommissioning

Power Reactor Inspection Program,” as the principal inspection framework. The NRC will revise

Inspection Manual Chapter 2565, “Regional Inspection Activities for Naval Reactors Naval

Vessels Undergoing Decommissioning,” which defines the roles of the NRC inspectors to be consistent with this IA after approval by both parties.

Naval Reactors will reimburse the NRC for technical support and inspection services as explained in the commitment and agreement section of this IA. Throughout the process, Naval Reactors’ intent is to enforce the recommendations of the NRC by contract with the company performing dismantlement and disposal as if the contractor were directly subject to NRC oversight as a licensee. Naval Reactors will use the NRC’s recommendations and may do so without any addition to or subtraction from the NRC's recommendations. Naval Reactors will address NRC recommendations for fine or necessary contractor response via the contract.

This document includes the notional regulatory framework and the NRC scope of work necessary to support commercial dismantlement of ex-ENTERPRISE using NRC technical and inspection services while Naval Reactors retains regulatory authority consistent with the AEA.

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Background on NRC Decommissioning Process for Materials Licensees

For facilities or materials sites licensed by the NRC, the licensee would be required to notify the

NRC within 60 days upon either the expiration of the license, a decision by the licensee to cease operations, or a period of inactivity of 24 months. Within 12 months of this notification, the licensee is required to submit a Decommissioning Plan (DP).

Until the DP is approved, no major radiological decommissioning activities can be performed. The licensee may perform decommissioning preparations including removal of operational radioactive waste, draining of systems and processing of solid wastes and liquid effluents, provided the license allows said activities.

The DP review process begins with an acceptance review. The objective of the acceptance review is to verify that the application contains sufficient information before the NRC begins an in-depth technical review. At the conclusion of the acceptance review, the DP will either be accepted for detailed technical review or rejected and returned to the licensee with the deficiencies identified.

For DPs proposing unrestricted release of the materials licensed site, a full technical review will be performed in accordance with 10 CFR Part 20, Subpart E “Radiological Criteria for License

Termination.”

The results of the NRC’s technical review will be documented in a Safety Evaluation Report

(SER). Further, NRC will conduct an environmental review to determine required actions for compliance with the National Environmental Policy Act (NEPA) of 1969. NRC guidance in

NUREG-1748 provides the general procedures for the environmental review of licensing actions for materials facilities regulated by the NRC. This guidance considers whether a NEPA

Categorical Exclusion (CATEX) would apply or whether NRC needs to prepare an Environmental

Assessment (EA) or Environmental Impact Statement (EIS) and describes the processes for preparation of the documentation necessary to comply with the NEPA. Following completion of the

SER and required actions to comply with the NEPA, a license amendment will be issued approving the DP.

Following approval of the DP, the licensee must start radiological decommissioning in accordance with the approved DP within 24 months or within an NRC approved alternate schedule. NRC staff will inspect the licensee during decommissioning activities to ensure compliance with the DP and will provide publicly available inspection reports. These inspections will normally include in-process and confirmatory radiological surveys to verify the licensee will be able to demonstrate compliance with the radiological criteria for license termination at the completion of the decommissioning.

As the final step in decommissioning, the licensee is required to:

• Certify the disposition of all licensed material, including accumulated wastes, by submitting a completed NRC Form 314 or equivalent information;

• Perform a radiation survey or demonstrate that the premises are suitable for release in accordance with the Subpart E of 10 CFR Part 20;

• Properly dispose of licensed material;

• Ensure the site meets the approved DP; and

Maintain site security and a site boundary fence until the NRC terminates the project.

Background on NRC Materials License Transfers:

If the licensee were to propose to transfer the license to a decommissioning company or other entity, the licensee would submit an application for license transfer pursuant to 10 CFR 30.34, “Terms and Conditions of Licenses”. Such an application would have much of the same information as a DP, along with additional information on the qualifications of the decommissioning company and the financial assurances that the decommissioning process would be completed by the decommissioning company wishing to assume the license. The results of the

NRC staff's review would be documented in a SER. Upon satisfactory completion of this review, the NRC could consent to the transfer of the license to the decommissioning company together with any necessary modifications to the license through approval of a license amendment.

The NRC could elect to review a DP and License Transfer Request in parallel in a case where an approved DP did not already exist.

Background on NRC Regulations Applied to Non-Licensed Sites

In some cases, the NRC oversees complex decommissioning of sites where the site license was either terminated prematurely by the NRC’s predecessor, the Atomic Energy Commission, or for other reasons do not have a current NRC license. However, the NRC has jurisdiction over the byproduct material at these sites. In such cases, there are no existing licensing bases in areas such as security, emergency preparedness, fire protection, quality assurance, environmental monitoring, radiation safety, and As Low As Reasonably Achievable (ALARA) that would comply with NRC requirements. Instead of a DP, the NRC requires a “Decommissioning Work Plan”

(DWP) be provided for NRC review and approval. The DWP uses the NRC decommissioning technical guidance to perform the decommissioning and achieve radiological closure of the site instead of license termination. To bring radiological closure of the site, the NRC documents its findings in a Technical Evaluation Report (TER), instead of a SER. The DWP would incorporate all the above listed topics to include all other DP items discussed in NUREG 1757, Vol 1, Appendix

D, Table D1, ‘Application of Checklist to Decommissioning Groups”, for the appropriate

Decommissioning Group, except for financial assurance and restricted release/alterative criteria.

Framework for Applying NRC Requirements for Materials Licensees via NAVSEA Contract

For decommissioning of ex-ENTERPRISE, the NAVSEA contract will require the contractor performing the work to comply with the regulations and guidance applicable to NRC regulations for “Standards for Protection Against Radiation” (i.e., 10 CFR 20), in addition to the areas specified below:

The following power reactor requirements will apply:

• Fire prevention and safety will comply with the requirements applied to power reactors

(10 CFR Part 50.48(f)) described in NRC Regulatory Guide 1.191,” Fire Protection Program for Nuclear Power Plants During Decommissioning and Permanent Shutdown”

(ML011500010) and consider applicable information notices, such as Information Notice

2023-04, Operating Experience Related to Fire Events at Decommissioning Nuclear Power

Plants in the United States.”

• “Major radioactive component” will follow the definition applicable to power reactors

(IMC 2561, “Decommissioning Power Reactor Inspection Program” (ML17348A400)).

• “Major decommissioning activities” will follow the definition applicable to power reactors

(10 CFR Part 50.2, “Definitions”).

The contractor will be accountable under the regulatory framework as described in this IA to follow programs and implement site-specific procedures covering the areas identified below. The areas identified below are applicable, but not all aspects of the guidance applies to the ex-ENTERPRISE project. For example, since the ex-ENTERPRISE is not a licensed reactor facility, technical specifications required by Part 50 are not applicable. Therefore, the programs and procedures should be consistent with the applicable aspects of the guidance listed below. These procedures will be developed by the contractor and incorporated by reference into the contract, or the contract will be required to commit to have the types of procedures as indicated by the guidance in the

DWP before radiological decommissioning begins (as defined in this IA). When the DWP is submitted for review, the quality assurance program, corrective action program, emergency response plan and effluent and environmental monitoring program documents should also be submitted:

• Quality assurance program, corrective action program, and audits consistent with the elements in NUREG-1757, Consolidated Decommissioning Guidance Decommissioning Process for Materials Licensees, Section 17.6 (ML063000243). The NRC will review the corrective action program and associated procedures to determine their adequacy as part of the DWP review. If adequate and approved by the Navy, the NRC will use Section 2.3.2.a of the NRC Enforcement Policy, dated January 12, 2024 for Severity Level IV issues.

• Emergency preparedness and response and notification consistent with Regulatory Guide

3.67, (Draft was Issued as DG-3039, Dated May 2010), Standard Format and Content for

Emergency Plans for Fuel Cycle and Materials Facilities (ML103360487).

• The DWP shall have a DWP change management process section that is approved by the

Naval Reactors based on recommendation from NRC (similar in concept to 10 CFR 50.59, “Changes, Tests and Experiments”), that will clearly define thresholds requiring Naval

Reactors review/approval to include notification of the Navy of proposed changes in a timely manner and for NAVSEA to evaluate if a contract modification is warranted. The procedure will also include a process for issuing “information only” to the Navy and NRC for changes not meeting those thresholds.

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• Characterization, Remediation, and Final Status Survey (FSS) activities consistent with

Multi-Agency Radiation Survey and Site Investigation Manual (MARSSIM) (NUREG-1575, Revision 1)( ML003761445) and Multi-Agency Radiation Survey and Assessment of

Materials and Equipment Manual (MARSAME) (NUREG-1575, Supplement 1 (74 FR

2998), as applicable, or other methods if approved by Naval Reactors based on recommendation from the NRC.

• Material (equipment) release criteria defined via the guidance of NRC IE 81-07, “Control of

Radioactively Contaminated Material”(ML103420362).

• Environmental and Effluent monitoring program consistent with Section 17.4 of NUREG- 1757, Vol 1, Rev. 2 (ML063000243).

A summary of the process for terminating NRC materials licensees described in NUREG-1757 is outlined below, followed by a description of how the regulatory framework will be applied to dismantlement and disposal of defueled ex-ENTERPRISE.

Regulatory Framework Applied to Navy Defueled Nuclear-Powered Ship Decommissioning

U.S. Navy ships are not NRC-licensed and can be freely relocated from a port of origin to a contractor facility. Further, the attributes of the decommissioning process of defueled nuclear-powered Navy ships and the requirements placed on the contractor performing this work narrow the range of possible decommissioning regulatory oversight requirements that might otherwise apply to an NRC licensee proposing to terminate a license. These attributes include:

• Performance of work at a site with no prior history of radiological work (i.e., no existing soil or ground water radioactive contamination).

• Requirement to perform work in a manner that prevents or mitigates the potential for release of radioactivity to the environment.

• Requirement to validate the project site is released for unrestricted use upon completion of the work.

• Requirement to coordinate necessary public outreach and implement necessary agreements and training to ensure emergency response scaled based on the lack of nuclear fuel and radioactivity present, necessary to protect the public, workforce, and the environment in the unlikely event of a large spread of radioactivity, fire and significant adverse weather-related problems.

Therefore, a regulatory framework that integrates the applicable procedures described above to a

Navy ship decommissioning project must be applied.

The following outline describes the framework under which the NRC will assist the Navy with the oversight of dismantlement and disposal of the defueled reactor plants and associated support systems rather than direct NRC regulation of these activities. This framework is based on the following assumptions:

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• The contractor is to decide and justify which decommissioning group model to follow when the DWP is submitted; however, it is expected to meet the decommissioning criteria of at least a Group 3, as defined in “Unrestricted Release Using Screening Criteria;

Decommissioning Plan Required” as identified in NUREG-1757, Vol 1.

• No unvalidated decommissioning modeling or new technology will be used by the contractor and therefore no technical basis documents will be needed to be submitted by the contractor for NRC review and Navy approval. Note that innovative decommissioning methods are welcome but will likely add time and resources to the review.

• Work will be conducted consistent with NRC guidance or other methods if approved by the

Navy as recommended by the NRC, unless specified otherwise in the Navy contract with its decommissioning contractor.

For clarity in describing this framework relative to NRC license termination activities, the following definitions will be substituted:

• Instead of “DP” the term “DWP” will be used.

• Instead of “SER” the term “TER” will be used.

• Instead of violations issued to a licensee, recommended violations would be issued to the

Navy for action.

• Instead of completion of decommissioning within 24 months, the completion will be based on the complexity of work, the DWP strategy, and the contractual agreement between the

Navy and its decommissioning contractor.

• Instead of submitting the DWP within 12 months to the Navy, the submittal of the DWP for review and approval will be based on contractual agreement between the Navy and its decommissioning contractor.

• Inspection services of the site and reactor plants will be consistent with the NRC oversight model for decommissioning projects of similar scope and complexity.

• No NRC environmental review for implementing the project is required because the EIS was performed by Navy for the decommissioning of the ex-ENTERPRISE. The Navy will perform an additional evaluation to ensure that it is compliant with previous Navy environmental reviews. At Naval Reactors’ request, NRC staff may provide input to the

Naval Reactors evaluation. NRC will review the DWP and associated Navy assessment of its environmental reviews and recommend whether the Navy’s previous ex-ENTERPRISE

NEPA evaluation(s) for the project remain bounded.

• The 2002 Environmental Protection Agency (EPA)/NRC Memorandum of Understanding

(ML022830208), “Consultation and Finality on Decommissioning and Decontamination of

Contaminated Sites” does not apply because that project is not under NRC regulatory authority. However, the NRC will evaluate the MOU criteria and provide a recommendation to the Navy to inform the Navy’s decision on unrestricted release consistent with the MOU and 10 CFR 20.

Under this framework, the NRC will perform the same type of reviews for decommissioning, and perform the same type of inspections with inspection reports, throughout the decommissioning process as it would for a facility with an NRC license that must comply with 10 CFR Part 20, Subpart E. Also, the NRC review will include similar reviews to those that would be performed in cases in which a license transfer to a decommissioning company was being proposed for ship transfer from the Navy to the Navy’s Decommissioning contractor to perform work. However, instead of NRC taking regulatory action with the decommissioning contractor company, the NRC would provide recommended actions to the Navy based on NRC Enforcement Policy. The Navy, in turn, would take actions through its contract with the decommissioning contractor to implement the NRC recommendations without addition or subtraction.

Key steps in this process include the following:

• The NAVSEA contract with the decommissioning contractor would require that the decommissioning contractor perform dismantlement and disposal in compliance with all

NRC regulations described in the IA. In the contract, NAVSEA will require that the decommissioning contractor comply with all NRC recommendations, and will also require that the decommissioning contractor provide the same information and unfettered access to the NRC as required for an NRC-licensed decommissioning process.

• NAVSEA will transfer possession of ex-ENTERPRISE to the decommissioning contractor.

This transfer would only occur after the NRC reviewed a Request for Transfer of

Possession and recommend to the Navy consent to transfer. The Request for Transfer of

Possession will be consistent with the information specified in 10 CFR 30.34(b)(2)(i) and will include the information specified in NUREG-1556, Vol. 18, Program-Specific Guidance

About Service Provider Licenses,” Rev. 1, dated August 2017 (ML17242A055), as well as additional information necessary to understand the contractor’s planned activities following acceptance of the ship and prior to approval of the DWP. Although no license exists to be transferred and no NRC decommissioning service provider license is required, the NRC's review would be similar to the type of review performed for a proposed license transfer for a licensed decommissioning service provider. This will include a review of the contractor’s decommissioning strategy and schedule, as well as their technical capabilities. The NRC will use NUREG-1556, Vol. 18, Tables B–1 through B–4 to assess whether the contractor is, and will remain, technically capable to conduct decommissioning safely.

Following transfer of possession of the ship to the contractor at the decommissioning facility location, the contractor may elect to conduct certain decommissioning activities agreed to by the

Navy (as recommended by the NRC). However, no decommissioning activities that would disturb contamination or radiologically impacted materials will be conducted until after NRC review and

Navy approval of the contractor’s DWP, described in the next section.

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• Once under contract to NAVSEA, the decommissioning contractor will prepare a DWP in accordance with NRC requirements applied by the regulatory framework described in this

IA and consistent with decommissioning guidance (e.g., NUREG 1757) as described in the contract requirements provided by the Navy as well as any other requirements in the Navy contract. The DWP will be forwarded by Naval Reactors to the NRC for review. The NRC will conduct the same acceptance review as it would for a decommissioning project regulated by NRC. An acceptance review is an administrative review to determine if all the information has been provided so that the staff can complete its detailed technical review.

Following acceptance of the DWP by Naval Reactors, the NRC would perform actions normally required to review and approve a DP in support of a license termination of a materials site. Any requests for additional information (RAIs) for the decommissioning contractor would be provided to Naval Reactors for action with the contractor, and any additional information submittals would be required to be addressed under the NAVSEA contract with the decommissioning contractor.

o If the DWP is accepted for detailed technical review, the NRC will begin to prepare a

TER. The RAI process would be used to obtain any additional information from the contractor needed to complete the staff’s review. The TER will confirm whether additional NEPA action is needed based on the provided DWP and the completed

Navy EIS for Commercial Disposal of the defueled ex-ENTERPRISE or other provided Navy environmental review for the project. The TER will accompany the

NRC recommended action regarding the contractor DWP.

o If the DWP is acceptable, the NRC will recommend that NAVSEA approve the DWP and issue any Navy required environmental policy documentation for compliance with the NEPA. NAVSEA would subsequently take those actions in accordance with the applicable commitments in the contract.

• If approval of the DWP were recommended by the NRC and authorized by NAVSEA under the contract, the NRC would inspect the conduct of the dismantlement and disposal for compliance with NRC regulations and the DWP in the same manner that the NRC would for a licensed decommissioning project, with the previously noted exceptions. NRC violations during the inspection would be briefed to the contractor in a similar manner as if they were an NRC licensee, and the NAVSEA contract would require the contractor to receive those findings for to initiation of corrective actions. However, the formal written inspection reports would be provided first to Naval Reactors for sharing with the decommissioning contractor.

If corrective actions or penalties were recommended by the NRC, it would be the responsibility of Naval Reactors and NAVSEA to require such actions, if not previously implemented by the contractor, or enforce any penalties. Should the contractor dispute the inspection findings, Naval Reactors will consult with the NRC and resolve the dispute.

• The NRC's reviews and inspections will be performed in accordance with NRC publicly available IMCs and inspection procedures and may include a mix of materials and reactor decommissioning inspection programs, as deemed appropriate by the NRC inspectors. The main IMC will be IMC 2561, and a specific IMC for Navy decommissioning work will be developed (or IMC 2565 for the SSSB will be updated) for the implementation of this IA.

Non-radiological hazards, including occupational safety and health, Resource Conservation

Recovery Act (RCRA) hazardous materials, Polychlorinated Biphenyl’s (PCBs), and asbestos containing materials, would be regulated by other State and Federal agencies in the same manner that these hazards are regulated in non-nuclear Navy ship dismantlement and recycling.

• Upon the contractor completing the dismantlement and disposal and Final Status Surveys

Reports (FSSR) requirements in the DWP, the contractor will notify the NRC that it has completed all DWP requirements. NRC would then be able to assess the completion of the decommissioning through a TER and recommendation letter to Naval Reactors regarding unrestricted release. In addition, the NRC would perform any necessary final inspections, confirmatory surveys, and technical reviews to ensure that all radiologically impacted portions of the ship and reactor plants were properly disposed of and that the site meets the requirements for unrestricted release. For FSSRs, there may be more than one TER based on whether the contractor submits its FSSRs in phases. NRC would provide the results of such final reviews in a "Closure" letter (or equivalent) to Naval Reactors, with a

TER to document NRC's closure of our activities. FSSR TERs are separate from the final

TER assessing project completion and recommendation regarding unrestricted release.

FSSR TERs are referenced in the Final Project TER. The Final Project TER may take 1-2 months after the submittal of the last required documentation. Naval Reactors and

NAVSEA would take any required action prior to contract closeout with the decommissioning contractor.

Throughout this entire process, it is the intention of both NRC and NAVSEA that dismantlement and disposal of radiologically impacted portions of the ship and defueled reactor plants be conducted within NRC regulations. However, in, no case would the NRC act directly as a regulator of the decommissioning contractor, but rather would provide all recommended approvals, disapprovals, RAIs, inspection results, and enforcement actions or penalties to Naval Reactors and NAVSEA. As stated previously, Naval Reactors and NAVSEA intend to enforce the NRC's recommended actions by contract, without any addition to or subtraction from, the NRC's recommendations.

Commitments and Agreements Supporting the Scope of Work

Interagency Agreement Cost Reimbursement

• The Navy will reimburse NRC for all costs associated with the technical support and inspection services described in this IA, including but not limited to direct labor costs, sub-contractor costs, laboratory analysis fees, and travel for NRC or NRC sub-contractor personnel to the Navy contractor site(s).

• NRC services under this Agreement may include both NRC Headquarters services as well as a specific NRC Region’s services, depending on the location(s) where the contractor proposes to conduct work and NRC inspector availability. NRC services can also include participation in public meetings as well as the use of contractor support or laboratory services.

• The Navy agrees to cover the costs of expedite fees for NRC provided laboratory analysis services, when the NRC recommends that expediting results is in the best interest of supporting the framework for applying NRC requirements on Navy decommissioning.

• Both parties agree that the amount of NRC work necessary to provide support for Navy ship and reactor plant decommissioning will depend on the technical complexity of the contractor’s plans, quality of the work planning documents (e.g., DWP), management programs (project, quality assurance, radiological controls, radiation health, and other required programs to comply with NRC and Navy contractual requirements), decommissioning work packages, implementing procedures, and work execution conducted by the Navy's contractor as well as specific technical approaches to the work that may be proposed by the Navy's contractor. Therefore, the estimated funding discussed in this Agreement is only an estimate.

• Future adjustments may be needed based on the quality and performance of the Navy contractor's work. All NRC costs associated with the scope of work in this Agreement will be fully reimbursed.

Interagency Agreement Administration

• The Navy will ensure that the NRC has unfettered access to the contractor site(s) for Navy defueled nuclear-powered ship dismantlement and disposal.

• The Navy will ensure the NRC has access to detailed work schedules and other project planning information necessary to allow for scheduling of NRC activities such as inspections or confirmatory surveys.

• The Navy will require the contractor to implement corrective actions identified by the NRC during inspections or other interactions. Further, it is the Navy’s intent to enforce and/or enact the NRC recommendations related to the project scope of work without addition or subtraction.

• The Navy will deliver ex-ENTERPRISE to the contractor only after the NRC recommends approving the transfer of possession. The Navy will only allow implementation of the DWP after it receives a recommendation for approval.

• The NRC will make its inspection reports available to the public, as appropriate in consultation with the Navy.

Target Responses Times Related to Project Correspondence

The Navy action on NRC recommendations will be taken as soon as practicable. The target for issuing any formal correspondence related to recommendations or enforcement actions based on the contractor’s performance of work is within 5 business days. However, formal correspondence related to Navy approval of the DWP or issuance of environmental policy related documentation may require up to 2 weeks or longer.

• Acceptance Reviews:

o NRC will conduct acceptance reviews of the decommissioning contractor’s submittals for the Request to Transfer Possession, DWP, and termination request for Unrestricted Release of the Decommissioning Site. NRC will schedule an acceptance conference with the decommissioning contractor and the Navy for these submittals within 4-6 weeks of receipt.

• Transfer of Possession:

o The NRC will review the contractor’s request for transfer of possession of the ship and make a recommendation to the Naval Reactors whether to transfer of possession of the ship to contractor in accordance with 10 CFR 30.34 (b)(2)(i).

o NRC will complete the review and recommend action on an acceptable Request to

Transfer Possession from the decommissioning contractor within 6 weeks of accepting the Request delivered by NAVSEA.

• Decommissioning Work Plan:

o NRC will aim to complete review and recommend action on a DWP submitted by the contractor within 4 months of the decision on the acceptance, but the actual review time will be determined by the complexity and quality of the DWP. NRC will provide periodic updated estimates for completing the review to Naval Reactors/NAVSEA and the contractor throughout the review process.

o NRC will aim to complete review and recommend action on acceptance of revisions to the approved DWP, that meet the threshold requiring NRC review, within 6 weeks of receipt. However, the nature of the DWP revision may impact the decommissioning TER and environmental review documentation, which could increase the required review time to 2 months or more. The NRC and Naval

Reactors will communicate the review process and required actions to approve the

DWP revision to the contractor when known.

• Final Status Survey Reports:

o Naval Reactors will require the contractor to notify NAVSEA and the NRC of plans to commence demobilization related activities at least 6 months prior to execution and provide progress updates at least monthly thereafter for NRC and NAVSEA project completion planning purposes.

o Naval Reactors will require the contractor to notify NAVSEA and the NRC of the schedule for the contractor’s FSSs within 3 months of completion of all FSSRs, unless a shorter timeframe is mutually agreeable. This notification is intended to provide adequate time for NRC to complete its technical review of the Final TER specific to FSSRs and, as necessary, to arrange third-party confirmatory surveys.

o NRC will complete review and recommend action within 2 months on each set, if submitted in phases, of the FSSR.

o NRC will complete review and recommend action within 2 months of receipt of the contractor’s submittal stating that it has completed all work to demonstrate that unrestricted release is met, has submitted all documents as specified in the approved DWP, and recommends release of the dismantlement site for unrestricted use, provided all FSSRs have been reviewed by the NRC. Concurrent reviews of the

FSSR and the final request can be performed, and the schedule will be based on the time to complete the FSSR TER and the Final close out TER.

Actions in Response to Emergencies:

• Naval Reactors will ensure that the contractor is required to provide robust emergency response capabilities as part of the contractor’s Accident Prevention Plan.

• Naval Reactors will ensure that the contractor emergency response actions related to work with radioactive materials are in accordance with the contract and approved procedures

(i.e., protect personnel, the public, and the environment).

• Naval Reactors will immediately notify the NRC of emergencies involving impact beyond the project boundaries or involving stakeholders or responders external to the project site, and direct any NRC recommended additional actions needed from the contractor to address the casualty.

• In the case of an emergency or incident requiring a response beyond the capabilities or authorities of the contractor and/or outside of the services provided by NRC in this IA, Naval Reactors, as the authority ultimately responsible for the radioactive materials in defueled nuclear-powered ships of the Navy, will communicate with the NRC and direct action via Naval Reactors’ authority under the AEA and public law. In addition, Naval

Reactors will lead the local, State and Federal response consistent with the National

Response Framework.

NRC Scope of Work Supporting the Oversight Framework:

• Provide consultation services for Naval Reactors during development of the project requirements on an ad hoc basis.

• Provide consultation services for Naval Reactors during contractor selection only on the contractor’s qualifications, technical experience and decommissioning strategy.

• Review and recommend whether Naval Reactors should consent to the contractor taking possession of ex-ENTERPRISE and associated radioactivity.

• Review and recommend to Naval Reactors changes and approval of the contractor developed and submitted DWP.

• As part of the DWP review, provide a recommendation as to whether the Naval Reactors’ ex-ENTERPRISE EIS bounds the actions under the DWP for Naval Reactors to process and recommend how to proceed with the decommissioning work. NRC will leverage the

EIS for ex-ENTERPRISE.

• Participate in periodic progress and status meetings held jointly with the Navy and contractor on a schedule deemed appropriate by Naval Reactors and NRC commensurate with the scope of ongoing and planned decommissioning work.

• Provide inspection services of the site and reactor plants consistent with the NRC oversight model for decommissioning projects of similar scope and complexity.

Schedule for NRC Scope of Work

The exact timing of NRC services will depend on the Navy's execution of the contracting process as well as the contractor's performance. The following notional timeline is provided for planning purposes.

Table 1, Schedule

Estimated Date Event(s)

Q1 FY25 – Q2 FY25 NRC review of technical issues or questions arising during the NAVSEA contracting process for Ex-ENTERPRISE dismantlement and disposal.

NRC visit to ex-ENTERPRISE for familiarization, if needed.

NRC familiarization review of Ex-ENTERPRISE technical documentation and drawings.

Q2 FY25 – Q2 FY26 NRC review of contractor proposed Request to Transfer Possession and DWP. NRC work products include TERS, EAs if necessary for NEPA for the Navy’s use, correspondence to the Navy identifying additional information to reach a regulatory recommendation, and recommendations to the Navy on approval of any contractor submitted documents and responses to RAIs.

Q2 FY26 – Q4 FY30 NRC review, inspection, and confirmation of completion of ex- ENTERPRISE decommissioning work by the contractor. NRC work products include inspection reports, TERs for FSS reports and project close regarding compliance unrestricted release criteria if the contractor were a licensee, and, as needed, assessments documenting review of intermediate radiological characterization and survey results (remedial surveys).

NAVSEA On-Site Representatives (OSRs)

The Navy intends to establish an on-site presence of representatives to monitor contractor performance for the total period of project performance. An NNPP-affiliated employee will be included as part of the OSR organization. The OSR organization, including the NNPP-affiliated member, will assist NAVSEA and Naval Reactors in implementation of this IA and facilitate NRC periodic inspections, as required.

The NNPP-affiliated member of the OSR organization also serves as the NNPP on-site regulatory representative. Although NRC requirements and inspection services are in place via this IA, consistent with this IA and the AEA, Naval Reactors retains regulatory authority and responsibility for radioactive materials in defueled nuclear-powered ships of the Navy. As such, the

NNPP-affiliated member of the OSR organization will assist Naval Reactors in upholding the commitments in this IA, and provide contract follow with the NAVSEA on-site team. Inspection services will be provided by the NRC as described elsewhere in this IA. In the case where an unlikely problem, regulatory, or public affairs inquiry requires a response beyond the capabilities or authorities of the contractor and/or outside of the services provided by NRC in this IA, the

NNPP-affiliated member of the OSR organization will assist Naval Reactors in directing action under Naval Reactor’s authorities and responsibilities under the AEA and public law, and as the leading Federal agency within the National Response Framework.

Project Management Reporting

Cost Reports - The NRC is responsible for accurately reporting quarterly costs and progress to the NNPP through the submittal of a Reimbursable Agreement Reportable

Hours Quarterly Certification. In Q4 of each FY, NRC is responsible for providing a to-go estimate of the remaining costs for the FY and returning underrun to the NNPP no less than 8 weeks prior to the end of the FY.

Progress Updates - The NNPP and NAVSEA will routinely be in receipt of NRC work products under this IA. Receipt of these NRC work products as well as Navy efforts overseeing dismantlement and disposal work will provide adequate visibility of NRC work under this IA. No separate or additional NRC progress reports are required. NRC's performance under this IA is limited to availability of Navy appropriations and resources.

Obligation of Funds and Funding Availability

Availability of Appropriated Funds - The duties and obligations of the NNPP hereunder calling for the expenditure of appropriated funds shall be subject to the availability of funds appropriated by the Congress that the Department of Energy may legally spend for such purposes. The Navy will be fully reimbursing NRC for work performed under this IA as required by the Economy Act.

Obligation of Funds – Estimated funds to be obligated by NNPP for performance of this IA are

$X,000,000 based on the following schedule.

Table 2, Obligation of Funds

FY25 $TBD

FY26 $TBD

FY27 $TBD

FY28 $TBD

FY29 $TBD

FY30 $TBD

Such funds obligated are provided for the efforts applicable to the subject IA. The NNPP shall provide written amendment to the NRC to obligate additional funds as may be mutually agreed.

Limitation of Price and NRC Obligations - Funds available for performance are described above in

Obligation of Funds. The amount of funds available at award is not considered sufficient for the performance required for any program period other than the specified program period. If additional funds or an additional program period is needed and mutually agreed to, the NNPP shall modify the amount of funds described in the IA as available for IA performance. This procedure shall apply for any successive program period, if any.

The NNPP is not obligated to the NRC for any amount over that described in the IA as available for IA performance.

The NRC is not obligated to provide services for any IA period after the first period specified under this Agreement (Q1 FY25 through Q4 FY30) unless and until written notification is received from the NNPP of an increase in availability of funds and/or increase in the period of performance. If so notified, the NRC obligation shall increase only to the extent IA performance is required for any additional program period for which funds are made available, and to the extent that NRC support and service resources are determined by the NRC to be available.

Cancellation of Items - "Cancellation", as used in this Section, means that Naval Reactors is cancelling their requirements for all items in program periods subsequent to that in which notice of cancellation is provided. Cancellation shall occur by the date specified in the obligation of funds schedule above related to the applicable subsequent IA period (unless a later date is agreed to), if

Naval Reactors (a) notifies the NRC that funds are not available for IA performance for any subsequent program period or (b) fails to notify that funds are available for performance of the succeeding program period requirement. If cancellation under this section occurs, the NRC shall not be paid a cancellation charge.