NRC Proposes Expanding Exemptions from Materials Licensing: Implications for Licensees, Agreement States

On Oct. 5, 2026, the U.S. Nuclear Regulatory Commission (NRC) published a companion proposed rule (91 FR 63168) and direct final rule (91 FR 63133) titled “Exemptions From Materials Licensing.” The rulemaking would amend regulations across 10 CFR Parts 20, 30, 40, and 70 to expand the uses and quantities of byproduct, source, and special nuclear material that do not require a specific license. Comments on the proposed rule are due Nov. 4, 2026.

The proposed revisions address two areas where the NRC considers the historical licensing framework out of step with radiological risk:

1. Byproduct Material Exempt Quantities (10 CFR Section 30.71, Schedule B)

NRC regulations at 10 CFR Section 30.18 allow persons to receive, possess, use, transfer, or own byproduct material in quantities not exceeding those listed in 10 CFR Section 30.71 (Schedule B) without a license. Possession of greater quantities generally requires a specific license. Under the proposed and direct final rules, the NRC would replace the Schedule B table with a direct reference to Appendix C of 10 CFR Part 20. Appendix C, which was developed for a different purpose, identifies radionuclide-specific quantities of licensed material that trigger the container-labeling requirements of 10 CFR Sections 20.1904 and 20.1905, based on dose limits and exposure assumptions. The NRC states that using the Appendix C values is a more risk-informed approach to byproduct material licensing. 

2. Blanket Exemptions for DOE Contractors (10 CFR Sections 30.12, 40.11, and 70.11)

DOE or DOE contractor activities on federally controlled sites are generally exempt from NRC regulation. When DOE contractors conduct activities with nuclear material at non-federal sites, however, they generally must obtain an exemption, which requires review and approval by the NRC and the host Agreement State.

The rule would amend 10 CFR Sections 30.12, 40.11, and 70.11 to grant a categorical, blanket exemption for a range of DOE contractor activities involving off-site training, provided the activities fall within certain contract and activity criteria. It is not clear, however, how compliance with these criteria will be assessed, given that no regulatory request is required. In addition to implementing policies reflected in Executive Order 14300 (90 FR 22587), this change reflects a growing push for uniformity across Agreement State programs.

Key Takeaways and Practical Recommendations

• Review Inventories Against Appendix C: Licensees (NRC and Agreement State) may wish to review their current and planned radioactive materials inventories against the quantities in 10 CFR Part 20, Appendix C. Sources that currently require specific license amendments may fall within the exempt quantities once the rule takes effect.
• Monitor State Compatibility Rulemakings: Agreement State licensees cannot rely on the NRC exemptions until the relevant state regulatory body formally amends its rules (or issues generic enforcement discretion). Licensees operating in Agreement States should therefore track state implementation procedures and timelines.
• DOE Contractor Operations: DOE contractors conducting law enforcement or first-responder radiological training may wish to review the scope of their operations to confirm that all sources and temporary locations qualify under the new Sections 30.12, 40.11, and 70.11 criteria. Qualifying activities would no longer require case-specific exemption requests. Open questions include whether and how the NRC plans to audit these entities for conformance with the exemption criteria, and whether and how Agreement State approval will be obtained between the rule’s effective date and Agreement State adoption of compatible regulations.