for uranium mill licensing by the State only if the tailings are to be disposed of on land owned by either the State or the United States. In these limited respects, the standard of compatibility and adequacy in the present Act is replaced by a more strict requirement. Compatibility will remain the

acceptance standard, however, for all other aspects of the State program covered by the proposed agreement.

Sec. 7. Section 7 adds a new paragraph to Section 274e. of the Atomic Energy Act of 1954, and is intended to make it clear that existing agreements with states under Section 274 of the Act will need to be amended if states wish to regulate the new class of byproduct material after three years from date of enactment. During the course of the amendment process, the Nuclear Regulatory Commission will review State regulatory programs for mill tailings disposal to confirm that the State substantive regulatory program is at least equivalent in its standards to the Commission's program. Certain public procedures and standards contained in Sections 274d. and 274e. of the Act will need to be followed in effecting the amendment of existing agreements.

If an Agreement State fails to amend its agreement, then on or after three years from enactment, the Commission will license and regulate the byproduct material in tailings

disposal areas, and State authority in this limited area will be preempted by the Commission except as provided by other Federal laws (such as the Clean Air Act). This is consistent with the Federal preemption presently provided in the Act for nuclear materials.

Sec. 8.

By amending Section 274j. of the Atomic Energy Act of 1954, this provision will allow the Commission, on notice and opportunity for hearing, to terminate or suspend the exercise of an Agreement State's authority that pertains to the milling of source material ore and to tailings disposal if the special provisions of Section 274 dealing with mill tailings disposal are not complied with by the State.

Sec. 9. This section adds two new provisions to Section 274 of the Atomic Energy Act of 1954. These two provisions, Sections 2740. and 274p. are substantive and are intended to establish a new national policy on the disposal of uranium mill tailings.

Section 2740. precludes a state from licensing or regulating source material in uranium ore milling unless the radioactive wastes are to be disposed of on State or Federal land. Section 3 of this Act provides the mechanism for Federal ownership (if the land is not already Federally owned) if

that alternative is selected.

Each state would have to

establish its own procedures for establishing state ownership of the disposal area if that alternative were to be selected.

Section 274p. is intended to ensure a measure of national uniformity in substantive uranium mill tailings disposal requirements based upon Commission substantive standards. State requirements would have to be at least the equivalent of Commission standards in the degree of protection given public health and safety from radiation hazards. A state may, however, at its discretion use standards that give greater protection than required by the Commission.

Neither of these two new sections is intended to affect the status of Agreement States licensing actions as state, as opposed to Federal, actions.

Sec. 10. Section 10 adds a new Section 83 to the Atomic Energy Act of 1954, as amended, and is meant to provide a statutory exemption from licensing for sites cleaned up by the Department of Energy under the Residual Radioactive Materials Act of 1978. The exemption from licensing does not mean, however, that persons in possession of the residual radioactive materials (as defined in the Residual Radioactive

Materials Act) or in possession of disposal sites will be The Commission may, through its avail

free of regulation. able regulatory procedures (except licensing), require such persons to monitor the sites, perform remedial work, or take such other measures to protect health or minimize danger to life or property. The Commission is also authorized to inspect as necessary.

Persons in violation of rules or

orders may be subject to a civil penalty even though not licensed. Proposed Sections 83(b) and (c) also will apply to persons in possession of uranium mill tailings disposal areas not part of the DOE program and who may be exempted from licensing in the Commission's discretion under Section 81 of the Atomic Energy Act.

Section 11. This section would authorize appropriations of $500,000 to assist Agreement States in implementing the requirements of the new legislation as it applies to them. Funds would be made available to the affected Agreement States in the form of one time grants to enable them to develop mill tailings regulatory programs at least equivalent to the regulations of the Commission.

Sec. 12. This section of the Act provides a short descriptive title to the amendments taken as a whole.

ADDITIONAL NRC COMMENTS ON H.R. 13382

In addition to the comments on H.R. 13382 contained in its oral testimony, the Commission would like to submit a number of comments addressing other issues raised by the bill.

The second, seventh, and ninth sections of the draft legislation are intended to establish an interim period of three years during which Agreement State programs for the regulation of uranium mill tailings would be reviewed, and agreements amended to bring in the new class of byproduct material added to the Atomic Energy Act of 1954, by the first section of the proposed legislation. The seventh section, in particular, makes it clear that agreements must be amended if the Agreement State is to regulate the tailings area after the three year period under the section 274 framework. Commissioner Gilinsky believes that a two year interim period should be adequate for these purposes. The section also stipulates that certain standards and public procedures required in the review of new agreements prior to execution would also be followed for amendments to existing agreements.