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POLICY ISSUE
NOTATION VOTE

SECy-03-0200

November 18, 2003

• PURPOSE
• BACKGROUND
• DISCUSSION
• COORDINATION
• RECOMMENDATIONS
• REFERENCES

PURPOSE:

To inform the Commission of the results of the U.S. Nuclear Regulatory Commission (NRC) staff's review of the license renewal application for the McGuire Nuclear Station (McGuire), Units 1 and 2, and Catawba Nuclear Station (Catawba), Units 1 and 2, submitted by Duke Energy Corporation (hereafter referred to as Duke or the applicant), and request that the Commission authorize the Director of the Office of Nuclear Reactor Regulation (NRR) to make the appropriate findings and renew the operating licenses for McGuire Units 1 and 2, and Catawba Units 1 and 2 for up to an additional 20 years.

BACKGROUND:

By letter dated June 13, 2001 (Reference 1), Duke submitted its application to renew the operating licenses for McGuire Units 1 and 2 and Catawba Units 1 and 2, in accordance with Parts 51 and 54 of Title 10 of the Code of Federal Regulations (CFR). In its submittal, the applicant requested renewal of operating licenses NPF-9 for McGuire Unit 1, and NPF-17 for McGuire Unit 2, for a period of 20 years beyond the current license expiration dates of midnight, June 12, 2021, for McGuire Unit 1, and midnight, March 3, 2023, for McGuire Unit 2. The applicant also requested renewal of operating licenses NFP-35 for Catawba Unit 1, and NFP-52 for Catawba Unit 2, for a period of 19 to 17 years respectively beyond the current license expiration dates of midnight, December 6, 2024, for Catawba Unit 1, and midnight, February 24, 2026, for Catawba Unit 2.⁽¹⁾ The operating licenses for McGuire Units 1 and 2 and Catawba Units 1 and 2, were initially issued under Section 103 of the Atomic Energy Act.

DISCUSSION:

The staff performed its safety review of the license renewal application in accordance with 10 CFR Part 54, using guidance in the NRR Office Letter 805, "License Renewal Application Review Process," and the "Standard Review Plan for Review of License Renewal Applications for Nuclear Power Plants," issued July 2001. The "Safety Evaluation Report Related to the License Renewal of McGuire Nuclear Station, Units 1 and 2, and Catawba Nuclear Station, Units 1 and 2" (Reference 2) (SER), describes the results of the staff's review of the applicant's scoping and screening, aging management programs, and time-limited aging analyses, in accordance with the requirements of 10 CFR Part 54. The SER was published as NUREG-1772 in March 2003.

The license renewal application included a supplement to the final safety analysis report (FSAR), as required by 10 CFR 54.21(d). By a letter dated October 28, 2002, the applicant transmitted Revision 1 of the FSAR supplements for McGuire and Catawba, which were subsequently revised by letters dated November 5, 2002, November 14, 2002, November 18, 2002, and November 21, 2002. By letter dated December 16, 2002, the applicant submitted Revision 2 of the FSAR supplements for McGuire and Catawba. The FSAR supplement revisions superseded the versions in the license renewal application. The revised FSAR supplements contain a summary description of the applicant's programs and activities for managing the effects of aging and the applicant's evaluation of the time-limited aging analyses for the period of extended operation. The staff reviewed the revised FSAR supplements and found that they meet the requirements of 10 CFR 54.21(d). The attached proposed renewed licenses require that the applicant include the FSAR supplements in the updated FSARs (UFSARs). By letter dated September 27, 2003, the applicant submitted the UFSAR for Catawba. The UFSAR for McGuire is scheduled for release in April 2004. Until the UFSAR update is completed, conditions in the proposed renewed licenses require that any changes to programs described in the FSAR supplements be made in accordance with 10 CFR 50.59. This assures the NRC that these programs, maintenance activities, and inspection procedures will be adequately controlled.

The FSAR supplements also identify future actions. Throughout NUREG-1772, the staff describes various schedules for future actions. These schedules reflect the staff's determination that the future actions are not required for operation during the existing license term; however, they are required to be completed before the units enter the period of extended operation to effectively manage aging. The proposed renewed licenses include license conditions for the completion of these future actions. The applicant can change the schedules for these actions without prior NRC approval as long as the actions are completed in accordance with the license condition.

On the basis of its safety evaluation, as described in NUREG-1772, the staff reached the following conclusions, in accordance with 10 CFR 54.29:

1. Actions have been identified and have been or will be taken with respect to managing the effects of aging during the period of extended operation on the functionality of structures and components that have been identified to require an aging management review under 10 CFR 54.21(a)(1).

2. Actions have been identified, and have been or will be taken with respect to time-limited aging analyses that have been identified to require review under 10 CFR 54.21(c).

Accordingly, the staff finds that there is reasonable assurance that the activities authorized by the renewed licenses will continue to be conducted in accordance with the current licensing bases for McGuire Units 1 and 2 and Catawba Units 1 and 2.

To support the review of the applicant's license renewal applications, Region II conducted two inspections. The inspections were conducted in accordance with Inspection Manual Chapter 2516, "Policy and Guidance for the License Renewal Inspection Programs," and Inspection Procedure 71002, "License Renewal Inspection." As described in the memorandum from Luis A. Reyes, Regional Administrator, NRC Region II, dated December 30, 2002 (Reference 3), the results of these two inspections verified that the applicant implemented the scoping and screening methodology and established aging management programs in conformance with the descriptions in the application for license renewal, and that there is reasonable assurance that the applicant's aging management programs provide an adequate basis for renewing the licenses for McGuire Units 1 and 2 and Catawba Units 1 and 2 for up to an additional 20 years.

The staff issued the SER with open items on August 14, 2002 (Reference 4). On October 8, 2002, the staff and the applicant briefed the Advisory Committee on Reactor Safeguards (ACRS) Subcommittee on Plant License Renewal on the SER with open items. After the open items were resolved, the staff issued its final SER on January 6, 2003, which documented the staff's review and the resolution of open items. The ACRS Full Committee was briefed on February 6, 2003. On February 14, 2003, the ACRS issued its "Report on the Safety Aspects of the License Renewal Application for McGuire Nuclear Station, Units 1 and 2, and Catawba Nuclear Station, Units 1 and 2." In its report (included in Chapter 5 of NUREG-1772), the ACRS recommended that application for renewal of the operating licenses for McGuire Nuclear Station, Units 1 and 2, and Catawba Nuclear Station, Units 1 and 2, should be approved. The ACRS concluded that the programs instituted to manage aging-related degradation were appropriate and provided reasonable assurance that McGuire Units 1 and 2 and Catawba Units 1 and 2 can be operated in accordance with their licensing bases for the period of extended operation without undue risk to the health and safety of the public.

The staff performed its environmental review of the McGuire Units 1 and 2 and Catawba Units 1 and 2 license renewal application in accordance with 10 CFR Part 51, using the guidelines described in the "Standard Review Plans for Environmental Reviews for Nuclear Power Plants, Supplement 1: Operating License Renewal," NUREG-1555, Supplement 1, dated March 2000. On August 23, 2001, and September 20, 2001, the staff published notices of intent to prepare two environmental impact statements (EISs) and conduct scoping for McGuire and Catawba, respectively (66 FR 44386 and 66 FR 48489). These notices initiated 60-day scoping periods for each site. The EISs, prepared by the staff for the plant-specific reviews, are supplements to the Generic Environmental Impact Statement (GEIS), NUREG-1437, which was codified in 10 CFR Part 51 for license renewal. The EISs for McGuire Units 1 and 2 and Catawba Units 1 and 2 are Supplements 8 and 9 to the GEIS (SEISs), respectively. On June 12, 2002, two public meetings were held in Huntersville, North Carolina for McGuire. On June 27, 2002, two other public meetings were held in Rock Hill, South Carolina for Catawba. During these meetings, the staff described the approach and results of the NRC's environmental reviews and answered questions from members of the public. The comment periods for the draft SEISs for McGuire and Catawba ended on August 2, 2002, and August 9, 2002, respectively. The staff evaluated the comments received on the draft SEISs and considered the environmental impacts of the proposed actions, the environmental impacts of alternatives to the proposed actions, and the alternatives available for reducing or avoiding adverse impacts. The final versions of the SEISs for the McGuire Units 1 and 2 and Catawba Units 1 and 2 license renewal application were issued on December 24, 2002 (Reference 5). The disposition of comments from members of the public are discussed in Appendix A of the SEISs. As discussed in Section 9.3 of the SEISs, the staff determined that, on the basis of (1) the analysis and findings in the "Generic Environmental Impact Statement for License Renewal of Nuclear Plants," NUREG-1437; (2) the environmental reports submitted by the applicant; (3) consultation with other Federal, State, and local agencies; (4) the staff's own independent review; and (5) the staff's consideration of public comments, the adverse environmental impacts of license renewal for McGuire Units 1 and 2 and Catawba Units 1 and 2 are not so great that preserving the option of license renewal for energy-planning decision-makers would be unreasonable.

On October 23, 2001, requests for hearing and petitions for intervention were filed, seeking a hearing relating to the license renewal application. On January 24, 2002, the Atomic Safety and License Board (ASLB) admitted two contentions. This is the first license renewal application with contentions admitted by the ASLB. On April 12, 2002, the Commission reversed the admission of Contention 1, relating to the possible use of Mixed Oxide Fuel. On February 4, 2003, the ASLB dismissed Contention 2, relating to Severe Accident Mitigation Alternatives, as moot. On October 2, 2003, the ASLB denied admission of amended Contention 2. On October 16, 2003, the ASLB denied reinstatement of Contention 1, and terminated the proceeding. On November 4, 2003, the Blue Ridge Environmental Defense League filed a Petition for Review to the Commission seeking reversal of the ASLB's decision regarding amended Contention 2, relating to Severe Accident Mitigation Alternatives. The NRC is not compelled to await exhaustion of administrative or judicial appeals before renewing the operating licenses for McGuire Units 1 and 2, and Catawba Units 1 and 2 for up to an additional 20 years (56 FR 64943). In accordance with 10 CFR § 54.31(c), if the renewed licenses are subsequently set aside on appeal, the previous operating licenses would be reinstated.

In accordance with 10 CFR 54.19(b), license renewal applications must include "conforming changes to the standard indemnity agreement, 10 CFR 140.92, Appendix B, to account for the expiration term of the proposed renewed license." The staff keeps the same license numbers for the renewed licenses. Therefore, there is no need to make conforming changes to the indemnity agreement, and the requirements of 10 CFR 54.19(b) have been met.

As a result of the staff's review of the applicant's license renewal applications, the staff recommends that the Commission authorize the Director of NRR to make the appropriate findings and then issue the attached renewed operating licenses for McGuire Units 1 and 2, and Catawba Units 1 and 2 for up to an additional 20 years of operation.

COORDINATION:

The Office of the General Counsel has reviewed this paper and has no legal objections to its content.

RECOMMENDATIONS:

On the basis of the above discussion, the NRC staff recommends that the Commission:

1. Authorize the Director of NRR to renew the operating licenses for McGuire Units 1 and 2 and Catawba Units 1 and 2 after making the appropriate findings on safety, and environmental matters.

2. Note that the staff will make any necessary conforming changes to the renewed licenses as a result of any pending licensing actions while the Commission is considering the staff's recommendations.

REFERENCES:

1. "Application to Renew the Operating Licenses of McGuire Nuclear Station, Units 1 and 2, and Catawba Nuclear Station, Units 1 and 2," June 13, 2001, Accession No. ML011660301

2. "Safety Evaluation Report Related to the License Renewal of McGuire Nuclear Station, Units 1 and 2, and Catawba Nuclear Station, Units 1 and 2," January 6, 2003, Accession No. ML023640366

3. "Memorandum to Samuel J. Collins on McGuire Units 1 and 2, Catawba Units 1 and 2 License Renewal Application," December 30, 2002, Accession No. ML023640303

4. "Safety Evaluation Report With Open Items Related to the License Renewal of McGuire Nuclear Station, Units 1 and 2, and Catawba Nuclear Station, Units 1 and 2," August 14, 2002, Accession No. ML022260949

5. "Generic Environmental Impact Statement for License Renewal of Nuclear Plants, Supplement 8, Regarding McGuire Nuclear Station, Units 1 and 2," NUREG-1437, Supplement 8, December 24, 2002, Accession No. ML023600266; and "Generic Environmental Impact Statement for License Renewal of Nuclear Plants, Supplement 9, Regarding Catawba Nuclear Station, Units 1 and 2," NUREG-1437, Supplement 9, December 24, 2002, Accession No. ML023600046

1. By letters dated October 1, 1999, the applicant was granted an exemption from 10 CFR 54.17(c) for McGuire Unit 2 and Catawba Units 1 and 2, in order to submit its application to renew the licenses prior to when the regulations would allow.

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