ML20183A141 (1) NRC Form 740M- SS

FINAL OMB SUPPORTING STATEMENT FOR
DOE/NRC FORM 740M, CONCISE NOTE AND
NUREG/BR-0006, REVISION 9
“INSTRUCTIONS FOR COMPLETING NUCLEAR MATERIAL TRANSACTION
REPORTS, (DOE/NRC FORMS 740M)”
(3150-0057)
--EXTENSION
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 740M, “Concise Note.” Form
740M is used to provide additional information such as qualifying statements or exceptions to
data on any of the other data forms required under the U.S.-IAEA Safeguards Agreements
(including DOE/NRC Forms 741, 742, and 742C).
The licensees who are primarily affected are (1) facilities that have been notified by letter from
NRC that they are subject to Title 10 of the Code of Federal Regulations (10 CFR) Part 75
(sections 75.12, 75.34 and 75.35) and (2) licensees who import or export nuclear materials.
However, any facility may use the DOE/NRC Form 740M to provide explanatory information
concerning nuclear material transaction if they choose. 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 740M are in NUREG/BR-0006, “Instructions for Completing
Nuclear Material Transaction Reports (DOE/NRC Form 740M).”
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 affected by 10 CFR Part 75 and
licensees who import or export nuclear material to submit DOE/NRC Form
740M, "Concise Note.” This submittal informs the U.S. or the IAEA of any
qualifying statement or exception to any of the data contained in any of the
other reporting forms required under the U.S.-IAEA Safeguards Agreements.

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. The NRC uses
DOE/NRC Form 740M, together with NUREG/BR-0006, Revision 9 (the
instructions for completing the forms), to collect, retrieve, analyze, and submit
required data to IAEA. Without the report form, NRC's ability to collect and
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provide these data would be severely limited.
3.

Reduction of Burden through Information Technology
The NRC has issued Guidance for Electronic Submissions to the NRC , which
provides direction for the electronic transmission and submittal of documents to
the NRC. Electronic transmission and submittal of documents can be
accomplished via the following avenues: the Electronic Submittals application,
which is available from the NRC's “Electronic Submittals” Web page, by Optical
Storage Media (OSM) (e.g. CD-ROM, DVD), by facsimile or by e-mail. The
Electronic Submittals application allows electronic transmission of information to
the NRC pertaining to licensing actions, associated hearings, and other
regulatory matters. The application ensures that information sent to the NRC via
the Internet is secure and unaltered during transmission. It operates 24 hours a
day, except when it is taken down for scheduled maintenance. The application
serves as a secure portal that respondents may use to transmit documents to the
NRC. It is estimated that 99 percent of the responses are filed electronically.
Form 740M is a common form hosted by the NRC that is also used by the DOE.
The NRC provides the form and instructions to all affected NRC licensees who
must submit reports in a computer readable format. Once submitted by
licensees, information from these forms is saved in a Nuclear Materials
Management and Safeguards System (NMMSS). The use of common reporting
forms minimizes 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.
Currently DOE has no burden hours associated with the use of this form.

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.
Further burden reductions for small businesses would prevent the NRC from
fulfilling 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 generally 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. A suggestion by
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reactor operators regarding delay of submittal of receiver's information to allow
batch reporting on a monthly basis was reviewed and deemed to be
inconsistent with international treaty commitments. NRC and industry continue
to jointly examine some industry suggestions to reduce reporting burden at
annual meetings between the U.S. Government and nuclear industry
representatives.
7.

Circumstances which Justify Variation from the Office of Management and Budget
(OMB) Guidelines
There is no variation from OMB guidelines.

8.

Consultations outside NRC
Opportunity for public comment on the information collection requirements for
this clearance package was published in the Federal Register on April 29, 2020
(85 FR 23870). As part of the consultation process, the NRC staff directly
contacted, via email, four fuel cycle licensees. No responses or comments were
received as a result of the FRN or the NRC staff’s direct solicitation of comment.

9.

Payment or Gift to Respondents
Not applicable.

10.

Confidentiality of Information
Confidential and proprietary information is protected in accordance with the 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 an annual total of 175 reports. The burden of preparation
and submission of each report is estimated to be 0.75 hour. The total
resulting burden for required submissions of the form by all licensees will be
131 hours (175 reports x 0.75 hours per report).
The total annual cost to all respondents to comply with this requirement is
estimated to be $36,418 (131 hours x $278/hour).
The $278 hourly rate used in the burden estimates is based on the Nuclear
Regulatory Commission’s fee for hourly rates as noted in 10 CFR 170.20
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“Average cost per professional staff-hour.” For more information on the basis of
this rate, see the Revision of Fee Schedules; Fee Recovery for Fiscal Year
2019 (84 FR 22331, May 17, 2019).
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 DOE 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 are approximately $1,900,000 per fiscal year This
is the NRC’s contribution for the operations of the NMMSS to support the
collection of Forms 740M, 741, 742, and 742C data, in addition to other data
collections and operations.
The staff has developed estimates of annualized costs to the Federal
Government related to the conduct of this collection of information. These
estimates are based on staff experience and subject matter expertise and
include the burden needed to review, analyze, and process the collected
information and any relevant operational expenses

15.

Reason for Change in Burden or Cost
The number of anticipated responses and associated burden has not changed;
however, the cost per hour has increased from $265 to $278, based on an
increase in the NRC’s fee rate.

16.

Publication for Statistical Use
None.

17.

Reason for Not Displaying the Expiration Date
The expiration date is displayed on DOE/NRC Form 740M.

18.

Exceptions to the Certification Statement
None.

B.

COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
Statistical methods are not used in this collection of information.

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