ML19240A364

NEI Issue Escalation Briefing - August 28, 2019

ML19240A364
Person / Time
Site:	Nuclear Energy Institute
Issue date:	08/28/2019
From:	Slider J Nuclear Energy Institute
To:	Alex Garmoe, Tekia Govan, Aron Lewin Division of Inspection and Regional Support
Govan T, 415-6297, NRR/DIRS
References
Download: ML19240A364 (8)

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From: SLIDER, James To: Lewin, Aron; Govan, Tekia; Garmoe, Alex

Subject:

[External_Sender] Update on Issue Escalation Process Date: Wednesday, August 28, 2019 6:59:58 AM Attachments: NEI Issue Escalation Briefing_20190828.pptx Alex asked for an update on our proposal to standardize our approach to escalating disagreements with NRC. Dave Gudger has been working on this effort for the past several months and will lead our briefing on this topic today. His presentation file is attached. I will bring paper copies for sharing in the meeting room this morning.

If you have any questions, please contact me.

Best regards, Jim James SLIDER l Technical Advisor, Regulatory Affairs 1201 F Street, NW, Suite 1100 l Washington, DC 20004 P: 202.739.8015 nei.org This electronic message transmission contains information from the Nuclear Energy Institute, Inc. The information is intended solely for the use of the addressee and its use by any other person is not authorized. If you are not the intended recipient, you have received this communication in error, and any review, use, disclosure, copying or distribution of the contents of this communication is strictly prohibited. If you have received this electronic transmission in error, please notify the sender immediately by telephone or by electronic mail and permanently delete the original message. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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Standardized Issue Escalation Practices Dave Gudger, Exelon NEI Reactor Oversight Process Task Force August 28, 2019

OBJECTIVE Establish and communicate a timely, efficient and formal stepwise issue escalation practice seeking the common goal of resolution based on objective evidence and sound regulatory principles at the lowest level of management practical.

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Why does the industry see the need to formalize the escalation?

• Disagreements between the licensee and the regulator are inevitable and sometimes cannot be resolved at the level at which they arise

• When disagreements occur, the licensee and regulator may also disagree on when or how to escalate the issue for resolution

• The ideal is parallel escalation, in which each side understands escalation is occurring and the salient points of concern

• The alternative is non-parallel escalation, which can result in misinformation and strained relationships

• Both Industry and NRC recognize the importance of issue resolution at the lowest management level

• Industry believes aligning on a best practice approach could improve efficiency and timeliness for NRC and licensees

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POTENTIAL CONSEQUENCES Pitfalls of Non-Parallel Escalation

• Misinformation

• Salient points are not clearly articulated - Where do we agree and where do we disagree?

• Relevant facts do not always get escalated along with the issue of concern

• Strained Relationships

• If the licensee drives escalation, NRC personnel may perceive this as going over my head to get a more favorable resolution

• If the NRC drives escalation, the licensees personnel may perceive this as inspectors are not willing to consider licensee input

• Both the above perceptions undermine mutual trust we desire to maintain in our working relationships

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What does GOOD look like?

Five Principles:

1. Seek mutual understanding: All parties should understand when escalation becomes necessary

2. Perform due diligence: The parties should do their homework, i.e., establish, share, and document as appropriate all relevant facts at every step

3. Escalate systematically: Escalation should occur systematically one level at a time

4. Provide feedback: The basis for the final decision should be fed back to all levels

5. Capture lessons learned: After the disagreement is resolved, lessons learned from exercising the escalation process should be captured for organizational or process improvements

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PROPOSED SOLUTION Best practice approach follows a template

• Define the Gap: After all relevant information has been presented by both parties and a robust and candid dialogue has occurred, licensee communicates specific points of disagreement and why escalation is warranted

• Document and Elevate: Using the recommended template and, after an impartial assessment of the facts, both parties communicate escalation internally in advance (Template becomes the traveler for the issue)

• Resolve: Template is updated at each step of escalation to include new information or insights gained as well as any decisions or actions

• Close the Loop: Document and feed back the final decision or additional actions, decision makers, and the basis for any decisions

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Next Steps Complete our internal reviews Share more broadly with industry Share with NRC Monitor implementation and use

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