Understanding NRC vs. Agreement State Regulations

Key takeaways:

1. Use the NRC if your operations involve nuclear reactors, federal lands, or large-scale materials.
2. If in an Agreement State and dealing with materials covered under the agreement, the state agency is your go-to.
3. Regardless of the regulator, compliance, documentation, and safety are non-negotiable.
4. Regulatory environments may evolve—stay informed and maintain open lines with your regulator.

Introduction

Navigating the world of nuclear and radioactive material regulation can feel daunting, particularly for businesses in fields like healthcare, manufacturing, lab research, oil and gas, or construction that deal with radioactive materials. There are two sets of regulatory bodies that you must be aware of:

• The U.S. Nuclear Regulatory Commission (NRC), a federal body.
• Agreement States, which administer their own compatible regulatory programs.

Although the goal—ensuring safety—is shared, the path a business takes depends largely on whether their operations fall under federal or state oversight. This post is crafted in clear, layperson-friendly language to help businesses understand:

• What the NRC does vs. what Agreement States do.
• How to determine which rules apply to your business.
• Step-by-step guidance to help businesses work effectively with whichever regulator is relevant.

Let’s jump in.

1. What Is the NRC?

The Nuclear Regulatory Commission (NRC) is the federal agency responsible for regulating nuclear-related activities in the U.S. Its mission includes:

• Protecting public health and safety.
• Overseeing nuclear reactors, fuel cycle facilities, radioactive materials, and waste and decommissioning processes. (NRC Web)

The NRC handles licensing, inspection, enforcement, and rulemaking for these activities. Most importantly, they oversee all commercial reactors—whether they’re in Agreement States or not—as well as other sensitive areas such as exports, research reactors, large quantities of special nuclear materials, and materials on federal lands. (NRC Web)

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2. What Is an Agreement State?

Agreement States are individual U.S. states that have formally agreed with the NRC—under Section 274 of the Atomic Energy Act (AEA)—to take over regulation of certain radioactive materials within their borders. These include:

• Byproduct materials (e.g. radionuclides from fission, radium, materials from accelerators, fusion-related), as defined in AEA Sections 11e(1), (2), (3), etc.
• Source materials, such as uranium and thorium.
• Certain special nuclear materials, but limited to quantities that can’t form a critical mass. (NRC Web)

As of March 2025, there are 39 Agreement States, collectively regulating about 88% of all U.S. radioactive material licenses. (NRC Web)

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3. What’s the Difference — NRC vs. Agreement State?

Aspect	NRC (Federal)	Agreement State (State-Level)
Regulatory Authority	National — regulates reactors, exports, federal lands, etc.	State — regulates byproduct/source/small material within state borders
Licensing	Businesses file via NRC; use NRC Form 313 (materials) or Form 374 (special licenses)	Businesses apply through state agency using comparable, often state-specific forms; typically similar to NUREG‑1556 guidance
Inspections & Enforcement	Conducted by NRC regional staff	Conducted by state agencies under a compatible regulatory framework
Fees, Processes, Procedures	NRC’s standard, nationwide; consistent but possibly slower	Can differ state by state—often faster or more tailored locally
Regulations	Federal rules like 10 CFR Part 20 and Part 35 apply	Must be compatible with NRC rules but may be more restrictive (adamswebsearch2.nrc.gov, Federal Register, NRC Web)
Program Oversight	Oversees directly	Oversight ensured via periodic joint evaluations using IMPEP (adamswebsearch2.nrc.gov, Federal Register)

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4. Why Should Businesses Care? Key Considerations

A. Where Is Your Business Located?

• In an Agreement State? You’ll interact with a state agency for licensing, inspections, fees, and enforcement.
• In a Non‑Agreement State or Federal Land? The NRC handles everything federally.

B. Which Materials Are You Using?

• If you’re dealing with byproduct/source/special nuclear materials within an Agreement State, the state authority applies.
• If your activities involve nuclear reactors, export/import, federal installations, federal lands, or large quantities of materials—the NRC retains jurisdiction, regardless of location.

C. Impact on Licensing, Fees, and Procedures

• NRC licensing uses federal forms and a standardized process.
• Agreement States often adopt guidance from NRC’s NUREG‑1556 series but may have state-specific processes and fee schedules. 

D. Inspections and Compliance

• Expect inspections by the relevant authority (state or NRC).
• Enforcement actions—fines or penalties—may vary in level or process by state. States must enforce under a compatible program, but they can be stricter. (adamswebsearch2.nrc.gov)

E. Regulatory Change and Coordination

• Agreement States are required to inform the NRC of proposed rule changes or significant program updates to avoid conflicts or gaps. (Federal Register)
• Both parties participate in joint rulemaking, training, and program evaluation via IMPEP. (adamswebsearch2.nrc.gov)

5. Step-by-Step Guide for Businesses

Step 1: Identify Your Jurisdiction

1. Check if your state is an Agreement State (as of March 2025, there are 39). (NRC Web)
   Use the NRC website or state radiation control agency for confirmation.
2. Determine if your activities involve materials or areas retained by NRC, such as:
   • Reactors (commercial or research)
   • Imports/exports
   • Use on federally controlled lands
   • Large quantities of special nuclear material
   • High-level waste or ocean disposal
     If any apply, you’ll still interact with the NRC even if located in an Agreement State. (NRC Web)

Understanding your jurisdiction greatly determines the amount of work you have to put in!

Step 2: Understand Licensing Requirements

• If NRC is in charge:
  • Use NRC Form 313 (for standard materials) or Form 374 (for special materials).
  • Review the NUREG‑1556 guidance series for application help.
• If in an Agreement State:
  • Contact your state’s radiation control department.
  • They’ll likely follow NUREG‑1556 for guidance but will have state-specific forms, documentation, and fees. (NRC Web)

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Step 3: Prepare for Inspections and Compliance

• NRC-regulated operations will be inspected by the NRC on a national standard schedule.
• Agreement State-regulated operations will be inspected by state inspectors under programs evaluated through IMPEP to ensure federal compatibility. (adamswebsearch2.nrc.gov)

Organizations should:

• Develop and maintain radiation safety programs.
• Track regulations and guidance—state-level ones if applicable.
• Ensure documentation and recordkeeping meet standards.

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Step 4: Factor in Fees, Enforcement, and Process Timelines

• Expect different fee structures in Agreement States vs. NRC—states may charge more or less.
• Enforcement tools (warnings, fines, license suspension) may vary in approach or severity.
• Some businesses report faster processing at the state level due to closer proximity and less bureaucracy—but check with your specific state authority.

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Step 5: Stay Up-to-Date with Regulatory Changes

• Agreement States must coordinate changes with the NRC to maintain compatibility. 
• Participate in forums such as the Organization of Agreement States (OAS) or the Conference of Radiation Control Program Directors (CRCPD) for insight into upcoming developments. (Federal Register)

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6. Real-World Context & Perspective

• Minimal change for end-users: When a state transitions to Agreement State status, license holders typically see little difference in operations—they now just answer to the state instead of the NRC—but the underlying rules remain comparable. 
• Historical process is rigorous: States undergo a multi-year process (typically ~4 years) when entering into agreement with NRC—including drafting program descriptions, state legislation, regulation compatibility, public comments, and NRC assessments. (NRC Web)
• Compatibility is critical: The NRC uses IMPEP (Integrated Materials Performance Evaluation Program) every 4–5 years to ensure that each Agreement State remains adequate and compatible with federal standards. (adamswebsearch2.nrc.gov)
• Scope remains federal for some areas: Even in Agreement States, the NRC retains full authority over power reactors, national security, exports/imports, research reactors, high-level waste, and federal lands. (NRC Web)

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7. What This Means for Your Business

If your U.S. business uses radioactive materials:

• Understand which jurisdiction applies.
• Connect with the correct regulatory authority for guidance, applications, and inspections—whether the NRC or your state’s radiation division.
• Build your radiation safety program to meet whichever standards apply—always erring on the side of higher protection.
• Factor in differences in fees, licensing forms, inspection processes, and timelines.
• Stay engaged with regulatory updates—any change at the state or federal level can affect your compliance.

Conclusion

Distinguishing between NRC authority and that of Agreement States is vital for any business dealing with radioactive or nuclear materials. While the underlying priority—public and environmental safety—remains constant, the path you follow and the agency you interact with depends on both location and material type.