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avoid overlapping regulatory authority with its potential for conflicting standards and heavier burdens on those who are regulated. Since the NRC has authority to regulate the site specific details of uranium millings, it seems appropriate from the standpoint of efficiency and expertise that the NRC should also regulate the treatment and ultimate disposal of tailings which we permitted to be generated in the first place.

In view of the large volume of tailings which milling operations generate, it is important that NRC have clear authority to make arrangements and commitments for their disposal at the start of operation rather than leaving the problem for EPA to address after the tailings have been generated. The EPA would establish ambient environmental radiation standards for this new class of byproduct material under Atomic Energy Act authority transferred to EPA under Reorganization Plan No. 3 of 1970.

As I noted earlier, EPA has not exercised its authority over mill tailings under the RCRA. The proposed legislation would not affect EPA's authority under the RCRA other than as to the limited class of new byproduct materials. Therefore, EPA would continue to possess regulatory authority over other toxic or hazardous chemicals other than in tailings.

As to the regulation of nonradiological hazards associated with tailings, NRC has adequate authority under the Atomic Energy Act and NEPA to regulate source, special and byproduct material with respect to nonradiological but still hazardous characteristics.

In exercising the authority which H.R. 13382 would create, NRC will consult with all interested Federal and State agencies, including EPA, to assure that a consistent pattern of regulation over milltailings is achieved. The new authority would enable the Commission to continue its regulatory oversight after mill operations have ceased.

This oversight is needed to insure that the long-term consequences of its prior licensing do not pose a threat to public health and safety. Because the radioactive materials of major concern will be licensable, the NRC, or an agreement State, would exercise continued oversight over the tailings disposal area whether under a specific license or not as part of its normal regulatory function. At this point I would like to note some specific provisions of H.R. 13382 which should be remedied in drafting a revised and comprehensive milltailings control bill. The new definition of byproduct material contained in H.R. 13382 is linked to the Commission's definition of source material, now codified at 10 CFR 40.4(h). This definition excludes ores containing one-twentieth of 1 percent (0.05 percent) or less of uranium or thorium from the source material category.

The Commission is informed that there are a few mills currently using feedstock of less than 0.05-percent uranium. As high-grade ores become scarcer, there may be a greater incentive in the future to turn to such low grade materials.

Since such operations should be covered by any regulatory regime over milltailings, the Commission would suggest that the definition of byproduct material in H.R. 13382 be revised to include tailings produced by extraction of uranium or thorium from any ore processed primarily for its source material content.

Mr. DINGELL. I am curious about why you include in that the word "processed" primarily for source material content. There are other ores that are being processed that do contain thorium and uranium in amounts and I assume equal in value to those you are discussing here.

Is there any reason why we ought not give you the same authority with regard to those ores?

Mr. HENDRIE. Mr. Chairman, the intent of the language is to keep NRC's regulatory authority primarily in the field of the nuclear fuel cycle. Not to extend this out into such things as phosphate mining and perhaps even limestone mining which are operations that do disturb the radium-bearing crust of the Earth and produce some exposures but those other activities are not connected with the nuclear fuel cycle, EPA is looking at those and those appear to me to be things that ought to be left to EPA regulation under the Resource Conservation Recovery Act and general authorities.

Mr. DINGELL. Your thesis is that we ought not however set up a set of circumstances where we would leave some of these to fall between the cracks and wind up being unregulated.

Mr. HENDRIE. I agree fully, Mr. Chairman, and I believe the way the language would cut here, as we recommended, would not leave any crevasse between the two authorities.

Mr. DINGELL. That is my main concern.

Mr. HENDRIE. Section 4 of H.R. 13382 would add a new section to the Atomic Energy Act, section 161x, authorizing the commission to establish regulations to insure funds will be available for decommissioning and decontamination in conjunction with facilities or materials licensed under this act.

We believe section 4 of H.R. 13382 should be modified to state that this regulatory authority deals only with sites, structures, and equipment used in conjunction with milltailings. The intention would be to leave unaltered for now the Commission's existing authority over financial security arrangements for decontamination and decommissioning related to other licensed activities.

I am submitting for the record a supplement which contains a revised text of H.R. 13382 containing proposed language changes, a section-by-section analysis of H.R. 13382, as revised, and some additional comments.

Mr. Chairman, this concludes my statement. I shall be happy to try to answer any questions the Committee may have.

[Testimony resumes on p. 364.]

[Attachments to Mr. Hendries' prepared statement follow:]

SUPPLEMENTAL SUBMISSION OF THE UNITED STATES

NUCLEAR REGULATORY COMMISSION MILL TAILINGS LEGISLATION

SUMMARY

This supplemental submission includes the text of proposed mill tailings legislation based upon H.R. 13382,

but including certain proposed modifications which the Commission believes are desirable, based on consultation with other agencies. A section-by-section analysis of the modified draft and supplementary comments are also included. The proposed modifications are:

(1)

a change in Section 2 adding the phrase
"any ore processed primarily for its source
material content" in lieu of the phrase

"source material as defined in Section llz.(2)."

The same change is also made in Section 3.

(ii) the deletion in Section 3 of the phrase,
"except the Nuclear Regulatory Commission,"

(iii) an amendment of Section 4, which adds a new
Section 161x to the Atomic Energy Act giving
the Commission explicit authority to require
financial security arrangements for decontamina-
tion and decommissioning, so that the scope of
the new section is limited to activities associ-
ated with uranium mill tailings.

(iv) the addition of a new Section 10, adding a new
Section 83 to the Atomic Energy Act, to clarify
the relationship of NRC's regulatory program

to the inactive sites subject to a DOE remedial
action program.

(v) Section 10 and 11 are renumbered 11 and 12.

TEXT OF H.R. 13382, REVISED TO INCLUDE NRC'S

RECOMMENDED LANGUAGE CHANGES

To amend the Atomic Energy Act of 1954, as amended to provide for regulation of uranium mill tailings, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, that section lle. of the Atomic Energy Act of 1954, as amended, is amended to read as follows:

"e.

The term 'byproduct material' means (1) any radioactive material (except special nuclear material) yielded in or made radioactive by exposure to the radiation incident to the process of producing or utilizing special nuclear material, and (2) the naturally occurring daughters of uranium and thorium found in the tailings or wastes produced by the extraction or concentration of uranium or thorium

from seuree material as defined in Section 118¬(2)any ore processed primarily for its source material content."

Sec. 2.

Section 81 of the Atomic Energy Act of 1954, as amended, is amended by adding a new sentence at the end thereof to read as follows: "No license shall be required by the Commission for the transfer, receipt, acquisition, ownership, or possession of byproduct material as defined

by section lle. (2) until three years from the date of enactment of the Uranium Mill Tailings Licensing Act of 1978."

Sec. 3.

Section 161g. of the Atomic Energy Act of 1954, as amended, is amended by adding a new sentence at the end thereof to read as follows:

"The Department of Energy may accept donations of
reclaimed land used for the disposal of byproduct
material resulting from the concentration or extrac-
tion of uranium or thorium from material as defined
in Section 11s-(2) any ore processed primarily for
its source material content. Land donated under
this section is not subject to the provisions of
Title III of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, nor
to disposal under the Federal Property and Adminis-
trative Services Act of 1949, as amended. The
President shall assign custody of land donated under
this section to any agency of the United States,
exeept the Nuelear Regulatory Commission, authorized
by law to manage land owned by the United States."

Sec. 4.

Section 161 of the Atomic Energy Act of 1954, as amended, is amended by adding a new section 161x. to read

as follows:

27-240-70 22

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