1
          1                      UNITED STATES OF AMERICA
          2                    NUCLEAR REGULATORY COMMISSION
          3                                 ***
          4                BRIEFING ON STATUS OF LICENSE RENEWAL
          5                                 ***
          6                           PUBLIC MEETING
          7                                 ***
          8                                  Nuclear Regulatory Commission
          9                                  Commission Hearing Room
         10                                  11555 Rockville Pike
         11                                  Rockville, Maryland
         12
         13                                  Thursday, June 12, 1997
         14
         15              The Commission met in open session, pursuant to
         16    notice, at 9:35 a.m., the Honorable SHIRLEY A. JACKSON,
         17    Chairman of the Commission, presiding.
         18
         19    COMMISSIONERS PRESENT:
         20              SHIRLEY A. JACKSON, Chairman of the Commission
         21              KENNETH C. ROGERS, Member of the Commission
         22              GRETA J. DICUS, Member of the Commission
         23              EDWARD McGAFFIGAN, JR., Member of the Commission
         24              NILS J. DIAZ, Member of the Commission
         25
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          1    STAFF AND PRESENTERS SEATED AT COMMISSION TABLE:
          2              KAREN D. CYR, General Counsel
          3              JOHN C. HOYLE, Secretary
          4              JOSEPH CALLAN, EDO
          5              SAM COLLINS, Director, NRR
          6              MARYLEE SLOSSON, Acting Director, Division of
          7                Reactor Program Management, NRR
          8              DAVID MATTHEWS, Chief, Generic Issues and
          9                Environmental Projects Branch, NRR
         10              STEPHEN HOFFMAN, SR., Project Manager, License
         11                Renewal Directorate, NRR
         12
         13
         14
         15
         16
         17
         18
         19
         20
         21
         22
         23
         24
         25
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          1                        P R O C E E D I N G S
          2                                                     [1:33 p.m.]
          3              CHAIRMAN JACKSON:  Good afternoon.  I don't
          4    usually name names, but good afternoon, Marylee, Steve, Joe,
          5    Sam, and Dave.
          6              The purpose of today's meeting between the
          7    Commission and the NRC staff is to discuss the status of
          8    activities associated with the implementation of the license
          9    renewal rule for nuclear powerplants, which is 10 CFR Part
         10    54.
         11              Since the original license renewal rule was issued
         12    in December of 1991, the staff and the nuclear power
         13    industry have been working to implement the requirements of
         14    the rule effectively.  After about two years of experience
         15    with activities related to implementing the rule, the staff
         16    and the nuclear power industry identified several key issues
         17    that needed to be resolved in order to provide a more stable
         18    and predictable regulatory process for license renewal.
         19              In February 1994 the Commission directed the staff
         20    to proceed with rulemaking to amend 10 CFR Part 54, and in
         21    May 1995 a revised license renewal rule was published.  The
         22    revised rule focused on the management of the effects of
         23    aging on certain systems, structures, and components during
         24    the period of extended operation.  Since the revised rule
         25    was published in 1995 the staff and the nuclear power
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          1    industry have continued to work on acceptable strategies and
          2    guidance to implement the requirements of the rule
          3    effectively.  In SECY 97-118, entitled "Activities
          4    Associated with the Implementation of 10 CFR Part 54," the
          5    staff has provided the Commission with an update on the
          6    status of ongoing staff and industry initiatives associated
          7    with the license renewal rule.
          8              The Commission therefore looks forward to the
          9    discussion with our staff on license renewal activities.  In
         10    particular, the Commission is interested in first
         11    understanding what if any potential policy issues might
         12    require Commission decision, and, second, understanding how
         13    all the ongoing activities associated with, for example,
         14    regulatory guide development, standard review plan
         15    development, the license renewal demonstration program,
         16    industry report template development, will all coalesce into
         17    timely, clear, and coherent implementation guidance.
         18              Now I understand that copies of your presentation
         19    are available at the entrances to the meeting, and so unless
         20    my fellow Commissioners have any opening comments, Mr.
         21    Callan, please proceed.
         22              MR. CALLAN:  Well, Chairman, you covered all the
         23    points I was going to make at the outset.
         24              CHAIRMAN JACKSON:  Good.  We'll go on the next
         25    person.
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          1              MR. CALLAN:  In fact, you even identified
          2    everybody at the table.
          3              [Laughter.]
          4              But I'll go through it again and provide their
          5    full names and their titles.
          6              Once again, Sam Collins; he's the Director of NRR. 
          7    Marylee Slosson, the Acting Director of the Division of
          8    Reactor Program Management.  Dave Matthews, the Project
          9    Director of the Generic Issues and Environmental Projects
         10    Branch.  And then finally Steve Hoffman, the Senior Project
         11    Manager in the License Renewal Project Directorate.
         12              Marylee Slosson will begin the presentation for
         13    the staff.
         14              MS. SLOSSON:  Thank you.
         15              Good afternoon.  I'm going to go ahead and start
         16    with the second slide, because the Chairman very aptly went
         17    through the kind of the history and brief summary of the
         18    license renewal a little, but I was going to go through, so
         19    if we could go ahead and have the second slide, with the
         20    license renewal program as with any program, the program is
         21    developed on key principles.
         22              In the case of license renewal, the two principles
         23    on which the staff has proceeded are based on some
         24    significant Commission determinations during the rulemaking
         25    process as outlined on this slide.  The first principle of
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          1    license renewal is that with the possible exception of the
          2    detrimental effects of aging on the functionality of certain
          3    plant systems, structures, and components in the period of
          4    extended operation, and possibly a few other issues related
          5    to safety only during the extended period of operation, the
          6    regulatory process is adequate to ensure that the licensing
          7    basis of all currently operating plants provides and
          8    maintains an acceptable level of safety so that operation
          9    will not be inimical to public health and safety or common
         10    defense and security.
         11              The second principle of license renewal is that
         12    the licensing basis must be maintained in the same manner
         13    and to the same extent during the period of extended
         14    operation as it was during the original licensing term. 
         15    Issues that may arise relevant to current plan operation
         16    must be addressed as part of the current plant license and
         17    cannot be deferred to a renewal review.  For example, the
         18    issues that have resulted from Millstone and Maine Yankee
         19    lessons-learned reviews related to 10 CFR 5059, licensing,
         20    and design bases are being addressed as part of the
         21    operating reactors program.  Any process improvements that
         22    are realized as a result of the lessons-learned initiatives
         23    will carry forward into the renewal term.  Therefore, this
         24    approach fully supports the principles upon which license
         25    renewal is based.
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          1              If I can have the third slide, please.
          2              We'd now like to begin the status portion of
          3    today's briefing, during which we'll discuss ongoing
          4    industry and staff activities and plant-specific and owners
          5    groups areas.  We'll also discuss development of
          6    implementation guidance, environmental activities, and our
          7    planned future activities.  If there are not any questions
          8    at this time I'd like to turn the presentation over to Mr.
          9    Stephen Hoffman.
         10              CHAIRMAN JACKSON:  Before you go --
         11              [Laughter.]
         12              So given what you were just saying about the
         13    licensing basis issues coming out of the various initiatives
         14    that are already under way, would you say that given what we
         15    already are doing that there's nothing in our recent
         16    regulatory experiences since the Commission laid out these
         17    principles that have caused us to reexamine the adequacy of
         18    those principles?
         19              MS. SLOSSON:  That's right, I don't believe within
         20    any of the Millstone lessons-learned issues we've identified
         21    anything.
         22              CHAIRMAN JACKSON:  Okay.  And then the second
         23    question is whether you can give us some sense in the
         24    aggregate of whether industry interest in pursuing license
         25    renewal has decreased, remained the same, or increased as a
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          1    consequence of the economic deregulation and restructuring
          2    in the industry, and a related question is I notice that the
          3    CE owners group appears to be the only owners group not
          4    sponsoring a license renewal effort, and do you know if they
          5    plan to do so, and are they supportive of the BG&E license
          6    renewal effort?
          7              There are only five questions.
          8              MS. SLOSSON:  Only five questions to answer.
          9              I guess with respect to economic deregulation I
         10    think it's --
         11              CHAIRMAN JACKSON:  Let's leave it -- let's just
         12    put it in a more neutral tone.
         13              Have you noticed any change over the last year,
         14    couple of years in terms of any waning or increase of
         15    interest in the license renewal area in an active way?
         16              MS. SLOSSON:  Do you want to --
         17              MR. HOFFMAN:  I'd say generally it's stayed the
         18    same or maybe we've actually gotten a little more certain
         19    interest from licensees in the process.
         20              CHAIRMAN JACKSON:  What about the question related
         21    to the CE owners group activities?
         22              MR. HOFFMAN:  They have not approached us as to
         23    any intent to submit anything with the staff.  I think they
         24    are letting BG&E take the lead.
         25              CHAIRMAN JACKSON:  Are they providing support for
.                                                           9
          1    that effort?
          2              MR. HOFFMAN:  That I can't answer.
          3              CHAIRMAN JACKSON:  Okay.  Thanks.
          4              MS. SLOSSON:  All right, Steve, if you can go
          5    through the status.
          6              MR. HOFFMAN:  All right.  Industry approach to
          7    date for license renewal has been to actually submit
          8    technical reports and methodologies for staff review and
          9    approval in advance of actually submitting a formal
         10    application.  The intent is that, and it's allowed by the
         11    rules, that once they obtain this approval, they could
         12    incorporate by reference these reports that have been
         13    accepted by the staff.  This gives them better information
         14    on which to decide whether to continue operation after the
         15    current license term and give them some idea as to the cost
         16    of the aging management programs.
         17              As was indicated in the previous slide, we've got
         18    two licensees that are three owners groups that have been
         19    preparing reports and submitting them to the staff.  Other
         20    licensees we are aware of have also been active supporting
         21    the owners groups activities as well as the NEI generic
         22    effort like on the Reg Guide, but we've gotten no formal
         23    indication from them as to, you know, planned submittals at
         24    this time.
         25              The slide on BG&E, please.
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          1              Baltimore Gas & Electric has been active since
          2    practically 1990 in license renewal.  They incorporated
          3    license renewal as part of their life-cycle management for
          4    program for Calvert Cliffs.  Although no decision has been
          5    made yet to submit an application by BG&E, they currently
          6    expect to complete preparation of their application by fall
          7    of 1997.  So it will be ready.  They actually made their
          8    first submittal back in 1993 with their methodology for
          9    performing the integrated plan assessment.  We were
         10    reviewing that when the staff decided to go back and amend
         11    the rule.  After the rule was issued they revised that
         12    methodology, resubmitted it, and we have reviewed it and
         13    found it acceptable in a final staff safety evaluation
         14    report.  BG&E's approach has been to prepare the reports for
         15    the systems structures and in some cases major components
         16    such as the vessel internals that they handle in separate
         17    reports.
         18              As part of a demonstration program for the Reg
         19    Guide, which I'll talk about a little bit more later on, the
         20    staff was on site, and we looked at some of the reports that
         21    they were preparing, and we found that in a number of areas
         22    they contained sufficient information for the staff to begin
         23    its technical review and submit it, but there was some
         24    concern in a couple areas as to whether or not there was
         25    enough detail there.
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          1              In response BG&E agreed to prepare a formal and
          2    content template, and between May of '96 and January of this
          3    year the staff and BG&E worked to review that report and to
          4    resolve implementation issues based on some examples they
          5    used to implement that.  We concluded that if that template
          6    is properly implemented, the reports that are prepared on
          7    that and submitted to the staff should have sufficient
          8    information for us to begin our renewal review.
          9              In parallel with that template review they asked
         10    and we agreed, they actually submitted five technical
         11    reports and asked for us to review them in the area that we
         12    did not have any concerns identified as part of the
         13    demonstration program.  That review is going on.  We have
         14    issued a request for information and they're responding.
         15              End of May we just received four new reports. 
         16    These were prepared using the template and we've just begun
         17    our review on that.
         18              Their plan is to submit a total of 28 technical
         19    reports by fall of this year, which will constitute pretty
         20    much the technical portion of a renewal application.
         21              CHAIRMAN JACKSON:  Let me ask you this question,
         22    can you give us some sense of what level of staff resources
         23    and over what time frame will be necessary to complete the
         24    review of the BG&E technical reports?  Have you been able to
         25    consider that?  I don't know who wants to answer that.
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          1              MS. SLOSSON:  I will answer that.
          2              We anticipate that the review of the reports will
          3    be completed by the end of 1999 if we get them on the
          4    schedule as indicated.  And our level of effort for license
          5    renewal for '98 is approximately 20 FTE and $900,000 and, in
          6    '99, approximately 25 FTE and a million dollars for review
          7    of those reports.
          8              CHAIRMAN JACKSON:  Let me ask you the next
          9    question.  And this has to do, really, with kind of
         10    stability of the regulatory framework.  So that is the
         11    context in which I am asking this question.  And it may be a
         12    bit early to address it and, if it is, you know, tell me and
         13    then I'll ask you, you know, in another meeting or in
         14    another way, can you discuss the relationship
         15    between -- which you have said the staff has basically
         16    approved between the BG&E report template, NEI guidance
         17    91-10, which has been, I guess, reg guide endorsed, and the
         18    draft license renewal standard review plan?
         19              You know, there is a NUREG 1568, owners groups
         20    topical reports and the plant-specific application.  Now,
         21    that's a lot.
         22              But I guess, you know, and I'm not asking you
         23    necessarily to go through each one chapter and verse but I
         24    want to understand the sense in which these things are all
         25    consistent or not consistent so that we are not in a
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          1    position where things get approved and then a standard
          2    review plan or some other guidance comes along that is a
          3    little different, et cetera, et cetera, because our staff
          4    needs to know what they are going to review against and the
          5    industry needs to know going forward beyond BG&E's template
          6    is that going to be the game?  You know, what it is they are
          7    going to be reviewed against?
          8              MR. HOFFMAN:  Okay, if I leave anything out let me
          9    know.
         10              Regarding BG&E's template, BG&E actually was
         11    further along when we started the reg guide in review of NEI
         12    95-10, so their template, their methodology is more plant
         13    specific, it is equivalent to the staff is making sure that
         14    what is in their approach is consistent with what we are
         15    doing with 95-10.
         16              As far as the various documents, they all really
         17    are interrelated.  You know, if we are looking at something
         18    on an owners group report or for BG&E, it turns out it is
         19    also typically coming up like in the review of NEI 95-10 or
         20    it's an area that we are looking at for incorporating the
         21    guidance in the SRP.  So as we go through this, the rest of
         22    the presentation, you are going to see there are a lot of
         23    activities going on and we are trying to pull it all
         24    together at the same time to come up with consistent
         25    guidance that will be of use to both the staff and the
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          1    industry.
          2              CHAIRMAN JACKSON:  Right, and it is important that
          3    they are all knit together, so that you are not all doing
          4    this one and then the next guy, you know, you tell him to
          5    bring you his rock and you're going to review it against
          6    some separate criteria and that's what the concern is.
          7              MS. SLOSSON:  And the first two review cycles that
          8    we are going through are very, very important because they
          9    do provide us with specific issues that we are using to
         10    develop that guidance that will be used generically.
         11              CHAIRMAN JACKSON:  So it is almost like a pilot?
         12              MS. SLOSSON:  It is very similar to a pilot.
         13              CHAIRMAN JACKSON:  All right.
         14              MS. SLOSSON:  And the resource numbers I gave you
         15    were for the entire license renewal, it wasn't just for
         16    BG&E.
         17              CHAIRMAN JACKSON:  I see.  Okay.
         18              MS. SLOSSON:  That was a total effort.  But I
         19    wanted to clarify that.
         20              [Laughter.]
         21              MR. CALLAN:  Including environmental.
         22              CHAIRMAN JACKSON:  Is that right?
         23              MS. SLOSSON:  Right.
         24              CHAIRMAN JACKSON:  Okay.
         25              MR. HOFFMAN:  Slide five, please.
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          1              Duke Power Company has also been very active in
          2    license renewal since around early 1993, not only on
          3    Oconee-specific activities but they have also been
          4    supporting the NEI effort, the B&W Owners Group and
          5    Westinghouse Owners Group activities.
          6              Their approach is a little different than BG&E. 
          7    They are preparing one report with five major sections. 
          8    They are taking a discipline approach similar to the format
          9    of the FSAR.  They are going to be evaluating all of the
         10    electrical instrumentation and control components in one
         11    group, mechanical components, the structures and then they
         12    will address the reactor building and reactor coolant
         13    systems separately.
         14              They have indicated that they intend to
         15    incorporate by reference the topical reports that are under
         16    review by the B&W Owners Group and one of the Westinghouse
         17    Owners Group topicals.
         18              Their goal is to complete the application and be
         19    prepared for a submittal in late 1998 if the company makes
         20    the decision to formally apply.  They have indicated that
         21    some of their considerations they are looking at besides
         22    technical and environmental include the regulatory aspects,
         23    the financial and the political concerns associated with
         24    actually applying for renewal.
         25              In July of '96, they submitted their first section
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          1    on the reactor building.  The staff looked at it and found
          2    that it didn't have, in some areas, sufficient information
          3    for us to begin our review.  In response, they committed to
          4    preparing this generic format and content document using the
          5    reactor building as a guide.  Kind of like the BG&E template
          6    effort to establish the -- what's necessary for a report to
          7    begin review.  They submitted that in late '96.  We reviewed
          8    it.  Actually went on site in January of '97 to look at some
          9    of the backup documentation and how it was being implemented
         10    and we found that between the document itself and some
         11    commitments they made in response to comments that it should
         12    provide the guidance necessary to prepare reports sufficient
         13    for our review.
         14              They revised the reactor building report and
         15    submitted it in March of this year and we are currently
         16    reviewing that.
         17              The remaining four sections are scheduled to come
         18    in by fall of this year with essentially complete -- there
         19    may be a couple holes.  But those will be finished by the
         20    end of the year.  And, again, that should constitute pretty
         21    much the technical portion of an application.
         22              CHAIRMAN JACKSON:  Let me ask you this question. 
         23    You mentioned that Duke may incorporate by reference both
         24    B&W Owners Group and Westinghouse Owners Group topical
         25    reports.  Are there any concerns vis-a-vis proprietary
.                                                          17
          1    material?
          2              MR. HOFFMAN:  Not with these reports.
          3              CHAIRMAN JACKSON:  And the other question is,
          4    would an a la carte, you know, approach be allowed where an
          5    applicant can pick and choose sections of topical reports
          6    and, if so, will this facilitate or complicate our reviews?
          7              MR. HOFFMAN:  Well, Duke has been very active in
          8    the B&W Owners Group effort and so I wouldn't expect them to
          9    be taking parts of the topicals.  If they chose not to use
         10    the entire topical, we would have to look at it more as a
         11    plat-specific submittal as opposed to a preapproved approach
         12    because we have discussed with the industry and it is in the
         13    guideline that, if you are going to use a topical, you have
         14    to show how you are enveloped and how any site-specific
         15    commitments are being made before you can use it.
         16              Okay, next slide.
         17              Babcock & Wilcox Owners Group is active.  They
         18    were actually the first owners group to make a submittal. 
         19    They've got a generic program for five operating plants
         20    which are the three Oconee units of Duke's, GPU's CMI-1 and
         21    Entergy's two Arkansas units.  They have submitted three of
         22    the four planned component topical reports on reactor
         23    coolant system piping, pressurizer and the reactor vessel. 
         24    Based on the review, we have already found one acceptable on
         25    the final safety evaluation report.  We have issued another
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          1    draft and we are working on a second final safety evaluation
          2    report and draft.  We expect the final report this month on
          3    the vessel internals.
          4              Our review -- actually what they have indicated
          5    is, in the future, after they complete the topical work,
          6    they will take on the longer term generic issues that may be
          7    identified in renewal as well as provide support to Duke and
          8    the other licensees who may apply for renewal.
          9              A review of the reports to date has been more
         10    advanced on B&W than the others because they have been in
         11    longer, has been that generally existing programs have been
         12    sufficient.
         13              We have found in some cases where enhancements
         14    have been needed, say on small bore piping and augmented
         15    inspection but in general the existing programs have been
         16    sufficient.
         17              CHAIRMAN JACKSON:  Is the B&W generic license
         18    renewal effort still broadly supported by the members?
         19              MR. HOFFMAN:  It's been supported for some time by
         20    three of the five.
         21              One member, Florida Power, was involved early on,
         22    but our understanding is that they dropped out due to
         23    financial reasons, not for lack of interest.
         24              One never was involved -- Toledo Edison.
         25              Westinghouse Owners Group -- their program has
.                                                          19
          1    been very active too.  They are preparing 15 topical reports
          2    for major components and structures.  The intent is to bound
          3    all Westinghouse plants with the reports.
          4              Their reports give the attributes of an acceptable
          5    aging management program as opposed to B&W's, where with the
          6    smaller population of plants they have actually made
          7    commitments to specific programs.
          8              They have submitted four topical reports that are
          9    under review.  We're preparing a draft safety evaluation
         10    report on the reactor coolant system supports and the
         11    remainder in various stages of requests for information and
         12    responses.
         13              The fifth report on the vessel internals is
         14    scheduled to be submitted this month, and then they have
         15    indicated that they plan to submit an additional two to
         16    three reports.
         17              The Boiling Water Reactor Owners Group program was
         18    based on preparing topic reports for reference design.  They
         19    picked the BWR Mark I and an applicant that came in, if
         20    there were any differences would justify those in their
         21    plant-specific application.
         22              They submitted the first of their six planned
         23    reports on the containment in December of '95 which the
         24    Staff reviewed and issued a request for additional
         25    information on in February '96.  That review was put on hold
.                                                          20
          1    by the BWR Owners Group initially because of funding.
          2              We just received a letter from them in May
          3    indicating that they are going to maintain that hold on
          4    their program and let the implementation issues, the process
          5    issues that have been identified as part of their report
          6    review and the Reg Guide, let them be resolved by the lead
          7    plant reviews.
          8              CHAIRMAN JACKSON:  So that is all BWR Owners Group
          9    license renewal activities?
         10              MR. HOFFMAN:  In the Owners Group, yes.
         11              CHAIRMAN JACKSON:  And if some of the technical
         12    issues are associated with the BWR containments, how does
         13    suspending action resolve those issues?
         14              MR. HOFFMAN:  Well, some of them deal with the
         15    interpretation of the guidance, which I will get into more
         16    in the Reg Guide effort and where -- what is going to be
         17    necessary in an application.
         18              CHAIRMAN JACKSON:  Okay.
         19              MR. HOFFMAN:  So they are going to let the lead
         20    plants take those on.
         21              The regulatory guide development began in earnest
         22    in May of '95 when we amended the rule.  A little bit of
         23    background for you.  About that time Nuclear Energy
         24    Institute approached us and indicated they were preparing
         25    the industry guideline, NEI 95-10, and requested our review
.                                                          21
          1    and endorsement if it was found acceptable.
          2              We agreed to that, and there were extensive
          3    interactions between August of '95 and March of '96 that
          4    resulted in us preparing the draft Reg Guide that was
          5    published for comment in August of '96 that proposed
          6    endorsement of NEI 95-10, rev. zero.
          7              During this development process, that was March to
          8    August of '96, we participated in a trial application of the
          9    95-10 guidance.  NEI sponsored an industry demonstration
         10    program in which six utilities participated.  That was
         11    Baltimore Gas & Electric, Duke, Southern Nuclear, Wisconsin
         12    Electric, Philadelphia Electric, and Virginia Power.
         13              The Staff actually sent a team out to each of the
         14    licensees with the exception of Virginia Power, which chose
         15    not to participate in the Staff site visit but underwent an
         16    NEI-led peer review.
         17              The intent was to look at, assess the adequacy of
         18    the guidance and the ability of the participants to
         19    implement the guidance and obviously identify any needs for
         20    revision.
         21              In the demonstration program the licensees used
         22    the guidance to select certain system structures and
         23    components and then they kind of ran it through the process
         24    of doing the integrated plan assessment, evaluated time
         25    limited aging analysis, and prepared sample application
.                                                          22
          1    materials that the Staff reviewed.
          2              Generally what we found was that the 95-10, rev.
          3    zero contains the basic guidance needed to prepare an
          4    application, but we did see some inconsistent application of
          5    the guidance as well as some areas where improvements could
          6    be made or additional clarification would avoid conflicts in
          7    the future.
          8              We did publish our lessons learned in a NUREG
          9    Report 1568.
         10              During the public comment period we also conducted
         11    a public workshop to allow as much opportunity for the
         12    public to be involved in this.  We discussed the rule, the
         13    Reg Guide and 95-10 guidance, and the demonstration program
         14    lessons learned, since that was being completed towards the
         15    end of the public comment period.
         16              The comment period ended at the end of November of
         17    '96 and we received comments from NEI, five licensees, two
         18    owners groups, and the Department of Energy. No comments
         19    from the general public.
         20              The comments received on the Reg Guide raised some
         21    issues with interpretation of the wording and some of the
         22    guidance contained in the draft Reg Guide and 95-10.
         23              Discussions with industry on the issues raised by
         24    the comments helped establish a better understanding of the
         25    differences in interpretation in some of the areas.
.                                                          23
          1              Examples of some of the areas that were discussed
          2    were the amount of information needed to demonstrate the
          3    adequacy of existing programs being credited for aging
          4    management, the amount of detail needed in an application
          5    versus onsite available for Staff inspection, and the level
          6    at which intended functions must be maintained and whether
          7    component failure was allowed.
          8              After extensive discussions with the industry, the
          9    Staff now believes that the issues associated with the
         10    guidance can best be resolved through trial application of
         11    the draft guidance on specific structure and component
         12    reviews.
         13              Therefore, we have modified our approach for
         14    developing the final Reg Guide and instead of issuing it
         15    final in September of '97, as currently planned, we intend
         16    to focus on plant-specific and owners group reviews using
         17    the draft Reg Guide and the working draft standard review
         18    plan for license renewal that I will talk about next to gain
         19    the needed experience with implementation of the rule and
         20    use that to help finalize the Reg Guide as well as the
         21    standard review plan.
         22              CHAIRMAN JACKSON:  So then where would that track
         23    you to when you think you would finalize the Reg Guide?
         24              MR. HOFFMAN:  What we would expect to do is
         25    actually the guidance would not just sit.  We would
.                                                          24
          1    incorporate a lot of that guidance that has been developed
          2    and is being developed into the working draft of the
          3    standard review plan, which is scheduled to be updated and
          4    put in the public document room in September.
          5              CHAIRMAN JACKSON:  How appropriate would it be to
          6    incorporate or to endorse, to publish a Reg Guide that
          7    endorses those portions of 95-10 that we feel are
          8    appropriate and then to supplement the Reg Guide on the
          9    issues that have yet to be resolved at a later date?
         10              MR. HOFFMAN:  We considered that, but what we are
         11    seeing is the interpretation by some of the -- like the
         12    commenters that there's some principles that run throughout
         13    that if we did that it would get the guidance out there, but
         14    we are not certain that it is really a document that the
         15    industry in the majority would embrace and would feel would
         16    be useful for pursuing renewal.
         17              What we are finding is that we have got two
         18    licensees and two owners groups that are proceeding using
         19    the guidance that is available.  They have indicated that
         20    they don't need the Reg Guide in order to proceed.
         21              Generally what we find is that when we focus on a
         22    specific structure on component with a licensee or an owners
         23    group that we can work through these issues and we can come
         24    to agreement as to what is acceptable for an application. 
         25    It is when we go back up and start talking in broad terms,
.                                                          25
          1    broad policy type statements that we then start debating
          2    interpretations of the wording.
          3              CHAIRMAN JACKSON:  And that is why you are saying
          4    that you want to incorporate the experience gained from
          5    implementing it on plant-specific and the owners group.
          6              You were going to make a comment, Sam?
          7              MR. COLLINS:  No.
          8              CHAIRMAN JACKSON:  Just showing your interest?
          9              MR. COLLINS:  Right.
         10              CHAIRMAN JACKSON:  Okay.
         11              COMMISSIONER McGAFFIGAN:  What would be the
         12    plan -- it will be several years before you try to
         13    finalize -- but there would be another round of public
         14    comment at that point where you would put out a new revised
         15    draft and go through a process at that point?  Is that the
         16    thought?
         17              MR. HOFFMAN:  I think we'll have to.
         18              We haven't really looked at it in detail but it is
         19    most likely we would.
         20              We wouldn't terminate actually the process with
         21    Nuclear Energy Institute.  The idea is not to stop.  It's
         22    just to -- I think it would be better to focus our resources
         23    on these lead plant reviews and finishing the owners group
         24    topicals, and then continue the interaction with NEI, just
         25    not on as high a priority basis.
.                                                          26
          1              During the draft work we were meeting with them
          2    weekly.  We had -- it was a very intensive effort trying to
          3    produce the final document, so we would continue the effort
          4    with NEI during this time.
          5              CHAIRMAN JACKSON:  Okay.
          6              MR. HOFFMAN:  We have already covered part of
          7    this.  We placed -- the original draft standard review plan
          8    for license renewal was issued for comment back in 1990 but
          9    it was based on the '91 rule so we updated that to reflect
         10    actually it was the '94 proposed rule wording and agreements
         11    that were reached from -- back in that timeframe there was a
         12    NUMARC initiative in which were prepared industry reports
         13    that addressed aging management for some structures and
         14    components.
         15              The Staff had been doing a review.  We
         16    incorporated the agreements from that into that working
         17    draft standard review plan.
         18              Currently we are working on updating and expanding
         19    that to capture -- there were some modifications for the
         20    final '95 amended rule wording, the experience we have
         21    gained from the plant and owners group reviews to date, the
         22    experience from the draft Reg Guide development and also
         23    some additional administrative requirements and that should
         24    be in the PDR by September.
         25              The current schedule is to publish the draft
.                                                          27
          1    standard review plan for public comment after the review of
          2    several renewal applications to allow experience to be
          3    gained.
          4              Next I would like to discuss two areas that we are
          5    monitoring for potential effect on implementation of the
          6    license renewal.
          7              That is use of risk insights and maintenance rule
          8    experience.
          9              Regarding the use of risk insights, the Staff
         10    recently received Commission approval to publish the draft
         11    regulatory guides and standard review plan that provide
         12    guidance for using probabilistic risk assessment and risk
         13    informed decisions on plant-specific changes to the current
         14    licensing basis.
         15              These Reg Guides and SRPs were submitted to the
         16    Commission in SECY 97-077.
         17              Once issued final, licensees will be able to use
         18    this guidance to make changes to its COB during the current
         19    operating term, and, consistent with the principles of
         20    license renewal, the regulatory process carries forward into
         21    the renewal term so a renewal applicant would be able to use
         22    this guidance in preparing its application as well as in the
         23    renewal term.
         24              Specifically for license renewal, when the amended
         25    license renewal was issued, the Commission stated in the
.                                                          28
          1    statement's consideration that PRA could be used by a
          2    renewal applicant when assessing the relative importance of
          3    a structure or component subject to an aging management
          4    review and for developing the aging management program.
          5              The PRA Reg Guides that were just approved for
          6    issuance for draft for comment could also be used for
          7    guidance for an applicant in performing these assessments.
          8              We also plan to use risk insights when we develop
          9    the inspection program for license renewal, which I will
         10    talk about again in a minute.
         11              Maintenance rule experience -- the license renewal
         12    relies on existing licensee programs, in particular the
         13    maintenance rule -- that was clear in the amended '95
         14    rule -- to conclude that active components can be
         15    generically excluded from the scope of renewal review
         16    because the effects of aging are more readily detectable.
         17              Although passive structures and components are
         18    technically within the scope of the maintenance rule, the
         19    Commission at that time believed that there was insufficient
         20    experience regarding the evaluation of long-term effects of
         21    aging on passive functions to be able to generically exclude
         22    them from renewal review.
         23              Because of this dependence on the maintenance
         24    rule, license renewal staff is monitoring the implementation
         25    of the maintenance rule and the baseline inspections being
.                                                          29
          1    performed to determine how lessons learned from the
          2    maintenance rule can best be factored into the license
          3    renewal process.
          4              One example of an issue identified by the
          5    maintenance rule, inspections, has been the need for
          6    additional guidance for monitoring the structures.  That was
          7    described in the maintenance rule status paper, SECY 97-055.
          8              In that case license renewal staff has been
          9    participating in the Staff activities to develop guidance
         10    for both operating reactors as well as for the renewal term.
         11              The help the exchange of information, both the
         12    maintenance rule and license renewal staffs have been
         13    monitoring and participating in each other's activities. 
         14    Maintenance rule staff was active in our development of the
         15    draft Reg Guide and participated in the demonstration
         16    program for the Reg Guide.
         17              License renewal staff is going to be participating
         18    in a maintenance rule baseline inspection, and we are
         19    monitoring the results of their ongoing inspections for any
         20    lessons learned.
         21              Okay, Inspection Program Development.  The intent
         22    is to prepare a draft of the inspection program for license
         23    renewal to support review of the first application.  We're
         24    using the ongoing dialogue with industry and the experience
         25    gained from reviews of the owners group and plant-specific
.                                                          30
          1    documents to help staff know where to focus its inspection
          2    efforts and where there's a need for new or modified
          3    programs both for the renewal review as well as on into the
          4    renewal term.
          5              We also like I said plan to use risk insights in
          6    establishing that program, consistent with like the SRP we
          7    would finalize that inspection program after we've gained
          8    the experience of several renewal application reviews.
          9              If there's no additional questions, I'll let Dave
         10    Matthews discuss environmental.
         11              MR. MATTHEWS:  Good afternoon.
         12              Before I present a description of the status of
         13    our environmental review activities associated with license
         14    renewal, I think it would be helpful to review just briefly
         15    in contrast to the Part 54 rulemaking activities that there
         16    was a companion rulemaking activity in the environmental
         17    protection area associated with an amendment to Part 51 to
         18    address license renewal.
         19              Part 51 was revised finally to address license
         20    renewal issues in December of 1996, just last year.  That
         21    rule revision was based on a generic Environmental Impact
         22    Statement to address the environmental impacts attendant to
         23    license renewal, which was issued in final form in May of
         24    1996.  In turn that GEIS was based on operating experience
         25    from an environmental perspective of the 118 reactors that
.                                                          31
          1    were either operating at the time or planned in 1991 when
          2    this effort was undertaken.
          3              The result of that rulemaking activity and GEIS
          4    development focused on 92 impacts associated with license
          5    renewal that related to environmental protection.  Those 92
          6    impacts were sorted and classified in the final rule into
          7    two categories.  Category 1 impacts, and there were 68 of
          8    those that were dealt with by the Commission's approval in a
          9    generic capacity, and 24 site-specific impacts, referred to
         10    as category 2 impacts, that were to be left for
         11    determination during the site-specific evaluation of the
         12    environmental impacts.
         13              I think it would also be helpful if I could turn
         14    to background slide 6, to just briefly describe the process
         15    that is outlined in part 51 for a plant-specific review. 
         16    And the major steps are the staff's environmental review of
         17    an application.  In this case we're talking the licensee's
         18    environmental report.  That would then result in the staff
         19    issuing a site-specific supplemental Environmental Impact
         20    Statement in draft form addressing those 24 issues that were
         21    left to site-specific review.
         22              The staff at that point following the draft and
         23    the scoping process and public comment would issue a final
         24    Environmental Impact Statement and would make a
         25    determination of the acceptability of the license renewal
.                                                          32
          1    action.  At that point the responsibility turns to the
          2    Commission to issue a record of decision based on that
          3    Environmental Impact Statement and the staff's conclusion,
          4    and the wording of that record of decision that's called for
          5    in Part 51 relates to preserving the option of license
          6    renewal for energy-planning decision makers.  That is a
          7    little different from the traditional cost-benefit balancing
          8    that is usually done in environmental reviews, and that's
          9    articulated in the final rule.
         10              Turning back now to the status slide, which is
         11    slide 12, at the time that the Commission approved for final
         12    publication the revisions to Part 51 they also requested the
         13    staff to address the issue of guidance associated with the
         14    implementation of that rule, and the two elements of that
         15    guidance and the staff responded to the Commission with a
         16    schedule for these, were the environmental standard review
         17    plan, which we plan to publish for public comment in August
         18    1997, and we're on schedule to do that, and the hope is
         19    provided the comments are such that we can resolve them
         20    expeditiously, is to issue a final environmental standard
         21    review plan in August of 1998.  In addition a regulatory
         22    guide is under preparation, with the planned schedule for
         23    that of being published for public comment in July of 1997,
         24    with a reg guide to be finalized in March of 1998.
         25              Consistent with the approach you've just heard
.                                                          33
          1    with regard to Part 54 review efforts, we have had
          2    discussions and extensive interaction with Baltimore Gas &
          3    Electric on a template process for the format and content of
          4    an environmental report that would support an application. 
          5    The goal of that process was to ensure that an environmental
          6    report when submitted would be considered suitable for
          7    further staff review as part of an actual application.  So
          8    we weren't making determinations on the acceptability of the
          9    material contained therein, only acceptability of its scope
         10    associated with the staff's ongoing review.
         11              We concluded that template process through a
         12    management meeting which took place on Thursday, June 5,
         13    where we provided our assessment to BG&E management that we
         14    thought the process had culminated in a format and content
         15    document that they had prepared that if they were to prepare
         16    an environmental report along those lines it would meet that
         17    requirement, namely that it would pass our acceptability
         18    review.
         19              We've had interactions with NEI and Duke.  With
         20    Duke with regard to the fact that they have under
         21    preparation an environmental report to support a possible
         22    application, and we've also talked with NEI with regard to
         23    their desires to consider the development of guidance for
         24    the industry in this area.
         25              COMMISSIONER McGAFFIGAN:  Does that conclude the
.                                                          34
          1    environmental part?
          2              CHAIRMAN JACKSON:  I think so.
          3              Do you have a question?
          4              COMMISSIONER McGAFFIGAN:  Can I ask a question?
          5              CHAIRMAN JACKSON:  Sure.
          6              COMMISSIONER McGAFFIGAN:  I've gone back and
          7    looked at Part 51, and one of the issues that you've
          8    mentioned in the paper before us on page 7, an area that
          9    needs some clarification, and you're discussing it with
         10    industry, is the generic and cumulative impacts associated
         11    with transportation operation in the vicinity of a
         12    high-level waste repository site.
         13              That's one of these category 2 items under the
         14    rule that was published.  And it strikes me that sort of
         15    puts people in a pretty tough situation in that it probably
         16    should be dealt with generically maybe by ourselves.  And so
         17    how do we get ourselves out of the fix that we're probably
         18    not going to deal with the generic transportation issues of
         19    Yucca Mountain for a few years yet, and yet some of these
         20    folks are on a time line to come in as early as late this
         21    year or next year?  So do you have any thoughts as to how we
         22    deal with that issue?  What has been the nature of the
         23    discussions?
         24              MR. MATTHEWS:  Yeah, based on our discussions with
         25    BG&E and with Duke, it is clear that that is probably, if
.                                                          35
          1    there is an -- what appears at this point in time to be an
          2    issue that's unresolved in this area, although there are
          3    some other ones the resolution of which isn't completely
          4    clear, this one would be less clear than the others.
          5              However, this situation was anticipated in
          6    conjunction with the approval of the final rule in December
          7    of last year.  The staff and the Commission found themselves
          8    in the position of not having a sufficient generic analysis
          9    upon which to base a finding that this could be considered
         10    as a category 1 issue.  However, the Commission expected,
         11    and they expressed in the statement of consideration, that
         12    as part of its efforts to develop regulatory guidance for
         13    this rule, the Commission would consider whether further
         14    changes to the rule are desirable to generically address the
         15    issue of cumulative transportation impacts.  And that's
         16    exactly what the staff is going at this juncture.
         17              CHAIRMAN JACKSON:  So let me make sure -- so what
         18    is it that the staff is doing?
         19              MR. MATTHEWS:  I was going to move on to that.
         20              COMMISSIONER McGAFFIGAN:  Well, we'll both let you
         21    go.
         22              MR. MATTHEWS:  The staff has obtained and is
         23    currently evaluating information from DOE which we
         24    anticipate will provide the basis for a generic analysis of
         25    cumulative effects of transportation in the vicinity of a
.                                                          36
          1    high-level waste repository.
          2              CHAIRMAN JACKSON:  And are you going to bring a
          3    paper forth to the Commission on this?
          4              MR. MATTHEWS:  Yes, and in fact I will get to the
          5    issue of what options might be available.
          6              CHAIRMAN JACKSON:  Okay.  Good.
          7              MR. MATTHEWS:  And certainly the Commission will
          8    be involved in the determination of the chosen one
          9              COMMISSIONER McGAFFIGAN:  And what is the timing
         10    for --
         11              MR. MATTHEWS:  I wanted to make a comment that
         12    it's important, given that DOE has not yet issued an
         13    Environmental Impact Statement that would go the full
         14    distance in addressing this issue --
         15              COMMISSIONER McGAFFIGAN:  And won't for some --
         16              MR. MATTHEWS:  For some time.
         17              COMMISSIONER McGAFFIGAN:  Yes.
         18              MR. MATTHEWS:  We're of course concerned that we
         19    not act too precipitously, so we do want to have an analysis
         20    performed by the staff based on information that we receive
         21    from DOE as opposed to just quote "adopting" what they've
         22    provided.  So we do want to do that.
         23              COMMISSIONER McGAFFIGAN:  Is an option for dealing
         24    with the early appliers though -- this is something that
         25    obviously should be dealt with generically.  We can't deal
.                                                          37
          1    with it generically yet.  Is this an area where we're going
          2    to have to use an exemption to -- or some sort of an
          3    approach --
          4              MR. MATTHEWS:  I think there's a potential for
          5    that.  The staff really hasn't considered what the
          6    implications of granting an exemption in this area is, and
          7    we'll certainly consider it if the need arises.
          8              CHAIRMAN JACKSON:  Is that one of the options on
          9    your list?
         10              MR. MATTHEWS:  Yes.  But I wanted to say we think
         11    that there's probably time to perform an analysis and
         12    proposed to you the possibility of an expeditious rulemaking
         13    that will resolve this issue.
         14              CHAIRMAN JACKSON:  I see.
         15              MR. MATTHEWS:  That was what was expected at the
         16    time that the issue was not sufficiently dealt with in
         17    December, and our expectation is that provided the analysis
         18    of DOE's input and our analysis would provide a sufficient
         19    basis for that, that's the road that we'd like to go down.
         20              COMMISSIONER McGAFFIGAN:  I've heard expeditious
         21    rulemaking --
         22              [Laughter.]
         23              COMMISSIONER DICUS:  No, no, no, I have both of
         24    you on either side, so I don't have to worry about it.
         25              No, I'm not clear on the timing in here.  You
.                                                          38
          1    said, you know, we have to wait -- we had to wait a little
          2    bit, you know, obviously with DOE and other things to get
          3    the Environmental Impact Statement and then you talk about
          4    an expeditious rulemaking, so I'm not --
          5              MS. CYR:  If I could say something, I mean the
          6    Commission and -- I mean, the obligation to examine this
          7    under NEPA is fundamentally ours, and we provide by
          8    regulation that licensees have to provide an environmental
          9    report to give us information basically that shortens our
         10    process, so, I mean, in a sense this is a slightly different
         11    situation if you were to quote "grant an exemption" if
         12    that -- in that context -- but what the Commission has done
         13    in the past is -- most notably in the waste confidence
         14    proceeding -- was where we had a generic issue that came up
         15    which the Commission decided that they wanted to address
         16    generically.
         17              They just provided that during the proceeding that
         18    issue in the rulemaking you would not address it in
         19    individual license proceedings and this licensing proceeding
         20    would be subject to whatever the outcome of that generic
         21    proceeding was, so we at least -- we have a situation in the
         22    past where we have just provided that the individual actions
         23    would be subject to whatever the outcome of the action was,
         24    if in fact the license -- their proposal to amend the
         25    existing findings in part 51 didn't terminate prior to the
.                                                          39
          1    time that you had an application come in.
          2              MR. MATTHEWS:  And I might clarify that I hope I
          3    didn't leave the impression we thought we needed to wait on
          4    DOE's final Environmental Impact Statement for us to review
          5    the issue and the associated environmental impacts, and we
          6    the NRC issue a generic document that would reflect the
          7    generic treatment of that issue short of DOE finalizing
          8    their activity.  And that would be the document upon which a
          9    potential rulemaking would be potentially based.  However,
         10    short of that, there might be an option of issuing such a
         11    generic environmental analysis that could be referenced by
         12    the utilities in individual environmental reports.  But,
         13    again, the staff would then turn in development of their
         14    draft environmental impact statement of having to deal with
         15    that issue on a generic basis.
         16              So that is why I made the comment exemptions,
         17    while we haven't considered them in detail, may not really
         18    be the option.
         19              COMMISSIONER McGAFFIGAN:  Could I clarify?
         20              What does expeditious rulemaking mean in this
         21    context?
         22              MR. MATTHEWS:  Well --
         23              COMMISSIONER McGAFFIGAN:  I mean, when would it
         24    begin and when would it end, just approximately?
         25              MR. MATTHEWS:  I think that is the options that we
.                                                          40
          1    would have to consider among us, NOGC, in terms of how
          2    expeditious such a rulemaking could be performed.
          3              COMMISSIONER McGAFFIGAN:  If I am a licensee
          4    listening to this discussion, BG&E or Duke, what am I to
          5    take away from it in terms of is this a problem for me or
          6    not and do I have to include very much on this in my draft
          7    report to the Commission or do I not?
          8              MR. MATTHEWS:  In the current regulatory arena
          9    with the regulation as it exists, they need to address this
         10    issue in the environmental report and address what's phrased
         11    the generic and cumulative impacts so there is an obligation
         12    for them to do that.  However, as I explained with regard to
         13    the process, we then, as Karen has pointed out, we the staff
         14    then assume the obligation for doing a sufficient
         15    environmental review and so we can bring to that review
         16    additional information that we may develop as well.
         17              CHAIRMAN JACKSON:  I think perhaps a way to get at
         18    this is if you were -- well, let me ask two questions, a
         19    question and then make a comment.
         20              When were you expecting to propagate the options
         21    paper to the Commission?
         22              MR. MATTHEWS:  Well, I have to admit that until I
         23    have a better feeling for when the staff can complete their
         24    environmental assessment of the information received by DOE,
         25    it is difficult for us to commit to what might be the next
.                                                          41
          1    step and that was the difficulty I --
          2              CHAIRMAN JACKSON:  I think we need a couple of
          3    things from you.  I think one is that we need to have that
          4    readout of when the staff can complete its review of DOE's
          5    environmental assessment and it's tied into what they are
          6    doing.  But I think we also need a readout relative to
          7    various options that the Commission would have, but
          8    particularly one related to rulemaking.
          9              We need to have some sense of what is possible in
         10    terms of speed and that may require input from OGC so we
         11    understand, you know, what the legal bounds are.  And so if
         12    you could do that?
         13              MR. MATTHEWS:  That was the path we were headed
         14    upon and we will proceed expeditiously.
         15              CHAIRMAN JACKSON:  Sure, apace.  Right.  Thank
         16    you.
         17              MS. SLOSSON:  If we could go to the last slide?
         18              In summary, the staff plans to focus its resources
         19    on the plant-specific and owners group reviews and
         20    applications if we receive it and use the information from
         21    those reviews to make sure that we have clear and concise
         22    guidance from the industry to use in pursuit of license
         23    renewal and in the development of that guidance, certainly,
         24    if we identify any policy issues, we will bring them forward
         25    to the Commission.
.                                                          42
          1              CHAIRMAN JACKSON:  Thank you.
          2              Commissioner Rogers?
          3              COMMISSIONER ROGERS:  I don't have anything.
          4              CHAIRMAN JACKSON:  Commissioner Dicus?
          5              COMMISSIONER DICUS:  I have one more question.
          6              I recognize at the onset this is not specifically
          7    related to license renewal but I am particularly interested
          8    in learning a little bit more about the subject so, for
          9    information purposes, I would like to bring it up.  This has
         10    to do with EQ, which I recognize is an ongoing issue with
         11    operating plants and was taken out of the renewal bin for
         12    that reason, at least that is what I understand.
         13              But what do you expect licensees or how do you
         14    expect licensees to address this in their renewal
         15    applications?
         16              MR. HOFFMAN:  Well, EQ, actually that generic
         17    issue was identified as part of the early license renewal
         18    reviews along with, like metal fatigue which is another
         19    generic issue that we have identified.
         20              When we amended the rule, the statements of
         21    consideration talks about unresolved generic issues and it
         22    does state clearly that a renewed license can be issued with
         23    an unresolved issue.  A couple options, it discusses like
         24    BG&E or Duke could use would be to -- they could come up
         25    with a plant-specific resolution of the issue or they could
.                                                          43
          1    give us a more or less a justification of why they can
          2    continue to operate until some period in the future when
          3    they could then incorporate the final resolution.
          4              We have been involved, you know, even though it
          5    has been taken out of more or less the license renewal's
          6    responsibility, we continue to be involved in the ongoing
          7    activities with research and the technical branches of NRR.
          8              COMMISSIONER DICUS:  How many unresolved generic
          9    safety issues are there?
         10              MR. HOFFMAN:  We are still looking at that.  We
         11    are talking about -- well, unresolved generic issues that
         12    have to be addressed for renewal are only those that involve
         13    structures and components subject to the -- you know, within
         14    the scope of the rule and that involve aging effects.  So we
         15    are talking passive, long-lived components with applicable
         16    aging effects.  So it narrows it down quite a bit.
         17              Some initial cuts show less than 10, in that
         18    ballpark.  And some reviews have shown two.  It depends on
         19    who is doing the review right now.  So we haven't got that
         20    final list.
         21              CHAIRMAN JACKSON:  Okay, Commissioner Diaz?
         22              COMMISSIONER DIAZ:  Yes, let's see.  Following on
         23    that question, I think aging is the key issue on relicensing
         24    versus not the matter of aging but aging gracefully, that
         25    whole issue.
.                                                          44
          1              [Laughter.]
          2              COMMISSIONER DIAZ:  A concern that some of us have
          3    of late.  But, you know that I think it is important to, and
          4    I don't quite see though, how are we developing the body of
          5    knowledge necessary to systematically use some criteria to
          6    determine the degradation, not aging, per se, as a
          7    degradation of safety systems.  Instead, is that process
          8    being developed with significant focus?
          9              MR. HOFFMAN:  There have been a number of
         10    activities.  To clarify, we are looking at the aging
         11    effects.
         12              COMMISSIONER DIAZ:  Aging means degradation due to
         13    aging, right?
         14              MR. HOFFMAN:  Right.
         15              We are looking at the effects as opposed to the
         16    mechanisms themselves because we want to ensure the
         17    functionality of structures and components.
         18              There -- and the intent is that we maintain that
         19    functionality in accordance with the current licensing basis
         20    and, in particular, the design basis.  So that when you are
         21    looking at the effects of aging in a number of areas, you do
         22    go back and see what the design intent is and ensure that
         23    function can be maintained.
         24              There have been some additional -- it's really,
         25    like before, in renewal, everything seems to be kind of
.                                                          45
          1    interrelated.  The NUMARC reports in which they did some
          2    studies on specific structures and components have added to
          3    it, the Office of Research has had their Nuclear Plant
          4    Research -- I forget the exact name of it, that they have
          5    been developing.  There was a generic aging lessons learned
          6    document that has been produced.
          7              So we are pulling all of that data in as part of
          8    this ongoing process and looking at it.
          9              COMMISSIONER DIAZ:  And are we starting to assume
         10    some criteria of pass, no pass, going to watch it?  I mean,
         11    there should be some body of knowledge that we develop
         12    systematically that will not only allow us to look at the
         13    first one but will actually allow us to, in a critical
         14    manner, analyze the functionality and/or potential
         15    continuing effects.  Because I think aging becomes the
         16    critical component of the process; is that correct?
         17              MS. SLOSSON:  Aging is the critical part of the
         18    license renewal review we do for the passive, long-lived
         19    components.  So we are evaluating and developing guidance
         20    for how the staff will look at and what criteria will we use
         21    to determine if an aging management program is effective. 
         22    So that is being done as part of the regulatory guidance
         23    development.
         24              MR. HOFFMAN:  And the Standard Review Plan will
         25    be, for the components and structures looked at, it will
.                                                          46
          1    contain specific guidance as to --
          2              COMMISSIONER DIAZ:  I think that body of knowledge
          3    is critical to the entire process, to maintain it and
          4    upgrade it and develop it to a point that will be useful in
          5    a continuous manner because you are going to go back to it
          6    over and over again.
          7              CHAIRMAN JACKSON:  Commissioner McGaffigan?
          8              COMMISSIONER McGAFFIGAN:  Given how much time was
          9    devoted to the last question that was spurred by this
         10    sentence, I am not sure I want to keep going on it, but
         11    there is a list of other issues other than transportation
         12    issues that you have been discussing with the industry and
         13    the sentence that follows says, good progress has been made
         14    on these issues and dialogue continues.
         15              Are any of the other issues on the list, do they
         16    rise to the same level that the transportation issue rises
         17    to in terms of possibly involving Commission guidance or
         18    whatever?
         19              MR. MATTHEWS:  Not based on what discussions we
         20    have had to date.
         21              CHAIRMAN JACKSON:  Well, I would like to thank the
         22    NRC staff for providing a very informative briefing to the
         23    Commission regarding activities associated with the
         24    implementation of the license renewal rule.  It was
         25    important in 1994, when the Commission directed the staff to
.                                                          47
          1    revise the rule and it is just as important today that the
          2    Commission provide a stable and predictable license renewal
          3    process.
          4              So I commend the staff for its perseverance in
          5    these license renewal efforts and the staff should continue
          6    to work with the nuclear power industry to resolve the
          7    technical and other implementation issues.  And, as you have
          8    heard and you have heard specific ones, should the staff
          9    identify policy issues associated with the license renewal
         10    rule implementation or with the environmental related
         11    requirements contained in 10 CFR Part 51, the staff should
         12    forward these issues promptly to the Commission for timely
         13    resolution along the lines that we have already discussed.
         14              So, unless my fellow commissioners have any
         15    further comments, we are adjourned.
         16              [Whereupon, at 2:36 p.m., the briefing was
         17    concluded.]
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Thursday, February 22, 2007