Information Notice No. 87-33: Applicability of 10 CFR Part 21 to Nonlicensees
SSINS No.: 6835
IN 87-33
UNITED STATES
NUCLEAR REGULATORY COMMISSION
OFFICE OF NUCLEAR REACTOR REGULATION
WASHINGTON, D.C. 20555
July 24, 1987
Information Notice No. 87-33: APPLICABILITY OF 10 CFR PART 21
TO NONLICENSEES
Addressees:
All NRC licensees.
Purpose:
This notice is provided to inform addressees of a potential generic problem
concerning the applicability of 10 CFR Part 21 to certain fabrication, erec-
tion, installation, modification, inspection, testing, and training services
provided to licensees. It is expected that recipients will review the
information for applicability to their facilities and consider actions, if
appropriate, to preclude similar problems. However, suggestions contained in
this information notice do not constitute NRC requirements; therefore, no
specific action or written response is required.
Description of Circumstances:
During recent NRC inspections at the Byron Station, Units 1 and 2, it was
noted that the licensee, Commonwealth Edison Company (CECo), had failed to
appropriately apply the requirements of 10 CFR Part 21 to onsite contractors.
These contractors provided fabrication, erection, installation, modification,
maintenance, inspection, and testing services for the Byron facility. During
interviews with senior CECo management, the NRC was informed that CECo had
made the decision not to specify applicability of the requirements of 10 CFR
Part 21 for any of their onsite contractors. During a separate NRC
inspection, it was also noted that Iowa Electric Light and Power Company
(IELP) had failed to appropriately apply the requirements of 10 CFR Part 21 to
a local vendor that had repaired/rewound Class 1E electrical equipment for the
Duane Arnold Nuclear Power facility. Information Notice No. 85-101,
"Applicability of 10 CFR 21 to Consulting Firms Providing Training," was
previously issued on December 31, 1985, to inform licensees and consultants of
a potential generic problem concerning the applicability of 10 CFR Part 21 to
certain training activities provided by consultants. The notice was issued
after an NRC vendor inspection of a company which provided consulting
services, including training, to the nuclear industry disclosed that licensees
had failed to appropriately apply the requirements of 10 CFR Part 21 to the
consultant providing the training.
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IN 87-33
July 24, 1987
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Discussion:
The Commission is taking this opportunity to emphasize the responsibilities of
licensees under the requirements of 10 CFR Part 21, "Reporting of Defects and
Noncompliance." 10 CFR Part 21 establishes procedures and requirements for
the implementation of Section 206 of the Energy Reorganization Act of 1974, as
amended. Section 206 imposes reporting responsibilities on directors and
responsible officers of firms constructing, owning, operating or supplying the
components of any facility or activity which is licensed or otherwise
regulated pursuant to the Atomic Energy Act of 1954, as amended, or the Energy
Reorganization Act of 1974, as amended. The focus of Section 206 goes beyond
those entities licensed or regulated by the Commission to all entities that
engage in the activities described in the regulation.
10 CFR 21.3(c) states that the terms "constructing" or "construction" include
the design, manufacture, fabrication, placement, erection, installation,
modification, inspection, or testing of a facility or activity that is subject
to 10 CFR Part 21 and consulting services which are related to the facility or
activity that are important to safety. 10 CFR 21.3(1) states that the terms
"supplying" or "supplies" means contractually responsible for a basic
component used or to be used in a facility or activity subject to 10 CFR Part
21. 10 CFR 21.3(a)(3) states that "in all cases 'basic component' includes
design, inspection, testing, or consulting services important to safety that
are associated with the component hardware, whether these services are
performed by the component supplier or others." Hence, onsite and offsite
construction services are subject to the provisions of 10 CFR Part 21 whenever
these services are associated with a basic component as defined in 10 CFR
21.3(a)(1). Although 10 CFR Part 21 obligations are applicable, whether or
not the contractor has been contractually obligated to the provisions of 10
CFR Part 21, licensee procurement of such services should nevertheless specify
the applicability of 10 CFR Part 21 as stated in 10 CFR 21.31 unless such
services fall under the definition of "commercial grade item" as defined in 10
CFR 21.3(a)(4). Any deviation discovered following the suitability for
application review performed to dedicate a commercial grade item for a
safety-related application would be required to be evaluated by the dedicating
or subsequent user organization and, if appropriate, reported pursuant to the
requirements of 10 CFR Part 21.
Further discussion and guidance on this matter is provided in NUREG-0302,
Revision 1, "Remarks Presented (Questions/Answers Discussed) at Public
Regional Meetings to discuss Regulations (10 CFR Part 21) for Reporting of
Defects and Noncompliance," published in October 1977.* This publication
provides NRC staff remarks on 10 CFR Part 21 as well as some legislative and
legal discussions on 10 CFR Part 21 and its impact upon reactor, material,
fuel cycle, and export licensees and related suppliers.
_________________________
*NUREG-0302, Rev. 1, is available through the NRC/GPO Sales Program,
U.S. NRC, Washington, D.C. 20555, (202) 275-2060 IN 87-33
July 24, 1987
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No specific action or written response is required by this information notice.
If you have any questions about this matter, please contact the Regional
Administrator of the appropriate regional office or this office.
Charles E. Rossi, Director
Division of Operational Events Assessment
Office of Nuclear Reactor Regulation
Technical Contacts: Jaime Guillen, NRR
(301) 492-8933
M. P. Phillips, RIII
(312) 790-5530
R. S. Love, RIII
(312) 790-5593
Attachment: List of Recently Issued NRC Information Notices
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