ML20033C692

Staff Requirements Memo Re 811028 Discussion of NRC Enforcement Policy.Press Release Will Be Issued for Level I-III Violations.No Press Releases Will Be Issued for Levels IV & V Violations.Ahearne Comments on SECY-81-600 Encl

ML20033C692
Person / Time
Issue date:	11/06/1981
From:	Chilk S NRC OFFICE OF THE SECRETARY (SECY)
To:	Birckwit L, Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO), NRC OFFICE OF THE GENERAL COUNSEL (OGC)
References
REF-10CFR9.7 M811028B, NUDOCS 8112030667
Download: ML20033C692 (13)

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'IN RESPONSE, PLEASE l

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porn,y REFER T0:.M8110288 g

8I UNITED STATES r

P" g / 7 NUCLEAR REGULATORY COMMISSION r

WASHINGTON, D.C. 20555 -

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.o November 6, 1981 p

OFFICE OF THE

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SECRETARY MEMORANDUM FORi silliam J. Dircks, Exec

' e Director for Operations Leonard Bickwit, Jr.,

. al Counsel FROM:

Samuel J. Chilk, Secrei gg g

SSION OF NRC ENFORCEMENi bF11 y

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SUBJECT:

STAFF REQUIREMENTS - DES 28,1981l M

POLICY,-2:05 P.M., WEDIESDAY, OCTOBER N'VL '-

COMMISSIONERS' CONFEREM:E ROOM, DC 0FFICE

-(0 PEN TO PUBLIC ATTENDANCE)

NOV181981* 91 acca

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AA The Comission discussed a revised general statement of policy and procedure for. enforcement actions without taking final action.

//

The Commission agreed upon a press release, policy whereby a press release will be issued for Levels I, II, and III violations. There will be no press release for Levels IV and V violations.

The Commission requested the Director, IE, to consider the following revisions to the Statement of Policy (Enclosure 2 of SECY-81-600):

1..

Comments ' expressed by Commissioner Ahearne at the meeting and detailed in a Response Sheet dated 10/30/81 (attached).

2.

Page 26, Supplement VII--Severity Categories, Category A -

clarify the level of management decision, generally to be the level of decision vis-a-vis recommendations to superiors; reconsider the neec to insert appropriate phraseology regarding "wi11 fulness"; consider elimination of the phrase "would clearly have resulted in regulatory action."

3.

Page 10, Table 1A - EDO indicated that a definition of Category One would be added.

4.

Page 10, Table 1 A, Footnote ** - delete " holding material licenses."

5.

Page 6 - the'first sentence of the first. paragraph needs to be clarified.-

6.

Consider. the feasibility.of a lettered prefix to the severity categories which would serve to identify its applicability and prevent comparisons of like severities for differing incidents (e.g., T-1 for transportation, severity 1).

8112030667 81110f LPDR 10CFR PT9.7

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7.

Review the Policy Statement-for consistency.in the numbering.

system.

JTheGeneralCounselindicatedthathisofficewouldalsohavesevertI comments that would be provided by memorandum.

~(DGC)-(SECYSuspense:

11/9/81)~

Subsequent to' the meeting, Commissioner: Bradford indicated that he would be circulating additional comments'.

~The. Commission requested that the revisions be submitted for Commission consideration.

(IE) (SECY Suspense:

11/23/81)

Attachment:

As Stated

'cc: Chairman Palladino Commissioner Gilinsky Commissioner Bradford~

Commissioner Ahearne Commissioner Roberts Commission Staff Offices Public Document Room J

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- Destroy previous ver "F'F f'R M X'T I O N VOTF

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SAMuELJ.'CHILK,SECRETARYOFTHECOMMISSION

FROM, COMMISSIONER AHEARNE

SUBJECT:

SECY-81-600 - REVISED GENERAL STATEMENT OF POLICY AND PROCEDURE FOR ENFORCEMENT ACTIONS APPROVED" DISAPPROVED ~

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NOT PARTICIPATING ~

EST DISCUSSION g

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COMMENTS:

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DRlt SECRETARIAT NOTE:

PLEASE.ALSO.. RESPOND.TO.AND/OR COMMENT ON..dGC/0PE MEMORANDUM IF ONE HAS SEEN ISSUED ON THIS PAPER.

HRC-SECY. FORM DEC6 80

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1

.Mr. Ahearne's comments on Secy 81-600:

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Requestircwork.

2.

Include in the policy statement-that enforcement action, to include ~ civil penalties, for ~ licensed operators and other-

_ individuals will be determined on a case-by-case basis.

3.

I propose that. administrative review of the Director's enforcement action be limited-to matters of fact and abuse of discretionary authority.

4.

Su,7plement VII needs revision to clarify. and differentiate between-lying or willful withholding vs. material false statement' management awareness of above lying associated with a violation vs. lying on a matter 'not specifically related to violation.

5.

Also see attached.

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'NRC uses thi notice 1of violation as the standard method for formalizing' the existance of a violation.

A notice of violation.is normally the

- only enforcement action taken, except in cases 'where the criteria for

civil penalties and orders, as set forth in Sections IV.B and IV.C, respectively, are met.

In such cases, the notice of violation will-be issued in conjunction with the elevated actions. '-

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Because the NRC wants to encourage and support. licensee? 'nitiative i

E for self-identification and correction of problems, NRC will. net igenera.lly issue a notice of violation for a violation that meets all of the following tests:

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It was identified by the licensee;

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(2)

It fit in Severity Level IV or V; (3)

It was reported, if required-D

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It was or will be' corrected, including measures to prevent 4

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recurrence, within a reasonable time;.and i'

. (.5). I.t was not.a v.iolation that. coul;d reasonably be expec'ted to have-

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been prevented by the liennsee's corrective action for a previous violation.

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^ Licensees are not ordinarily cited for violations resulting from BGTTEY2-matters not within their control.

Generally, however, licensees are held resoonsible for the acts of their employees.

Accordingly, this n@b5MkTIed policy s'hould not be construed to excuse personnel' errors.

B.

CIVIL PENALTY v

hl A civil penalty is a monetary penalty that may be imposed for.viclation of (a) certain sp?ci.fied licansing Act or supplementary NRC rules or. provisions of the Atomic Energy orders, (b) any requirement for which a license may be revoked, or (c) reporting requirements under Section 206 of the Energy Reorganization Act.

Civil penalties are designed to emphasize the need for lasting remedial action and to j

deter future violations.

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Generally, civil penalties are imposed for Severity Level I and II i

violations, are considered foFSeverity Level III violations, and may be imposed for Severity Level IV violations that are similar3 to violations discussed in a previous enforcement conference, and for which the erforcement conference was ineffective in achieving.the l

required corrective action.

i 3ihe word "similar," as used in this policy, refers to those violations I

which could have been reasonably expected to have been. prevented by the l

licensee's corrective action for the previous violation.

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'provided that such violations were not disclosed as a result'of 1

overexposures or unplanned releases of radioactivity or other specific,.

self-disclosing inci~ dents.

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F An'the other ha6' ~,"inif'fective l'ic'ensee progr'ams for pfoblem identi- ~

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,1 fication or correction :are unacceptable.

In. cases involving serious i; NRC-identified violations or involving serious breakdown.in managemrnt

'fi controls,- NRC will' not hesitate to napply its full enforcement authority.

p.where such action.is warranted, including iss6ing apprcpriate orders

f. and-assessing civil penalties for continuing violations on a'per day y

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S '. basis, up to the statutory limit of $1,00,0_00_per vio.lation, per day....

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NRC reviews each proposed civil penalty case on its own merits and

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7 adjusts the base civil penalty values upward or downward app ~ropriately. '

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Tables-.1A and 1B identi.fy.the base civil _ penalty values Yor different severity levels, activity areas,.and classes of li.censees.

After

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considering all relevant circumstances, adjustments to these values.

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.. y be made for. the factors described below:

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Prompt identification andlep5r'ing t

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. Reduction-of.up to 50% of the. base civ.il penalty.may be. given when a licensee identifies the violation, and promptly reports

'the violation to the NRC.

In-weighing this factor, consider-ation will be given to, among other things, the length of time the violation existed prior to discovery, the opportunity

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available to discover the violation, and the promptness and completeness of any required report.

This fa,ctor will not be

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applied to violations which constitute or are identified as a result of overexposures, unplanned releases of radioactivity or g, ggg-other specific, self-disclosing incidents.

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,,4.be-civen te tM :not take iEe'fiate action to correct the problem

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Corrective Acti,on to Prevent Recurrence Recognizing that corrective action is always required to' meet regulatory requirements, the promptness and extent to which the licensee takes corrective action, including actions to prevent recurrence, may be considered in modifying the civil penalty to be assessed.

Unusually prompt and extensive corrective action l

may result in reducing the proposed civil penalty as much as 50% '

of the base value shown in Table 1.

On the other hand, the l

civil pencity may be increased as much as 25% of the base value -

l if initiation of corrective action is not prompt or if the cor-rective action is only minimally acceptable.

I'n weighing this -

factor consideration will be given to, among other things ~, the

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timeliness of the corrective action, degree of' licensee initia- ~

.I tive, and comprehensiveness of the corrective action--such as j

whether the action-is focused narrowly to the specific violation or broadly to the general area of concern.

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Enforcement History

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...,, The base civil penalty may be.idereased as much as 25% depending on the enforcement ~-history in the general area of concern.

Specifically, failure to implement previous corrective action.

for prior similar. problems may increase the civil penait TalBe.

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Prior Notice -of Similar Events y.

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The base civil penalty may be increased as much as.25% for cases

--.i - where the licensee had prior knowledge of a problem as a result '

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of specific NRC or-industry notification and failed to take ' -

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The base civil penalty may be increased as much as 25% where multiple examples of a particular violation are -identified

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This factor is applicable only where NRC identifies the violation, or for violations associated with self-disclosing incidents.

.The above factors are additive so that the civil penalty for.any severity level may range from plus or minus 100% of the base value.

However, in no instance will a cifi1 penalty for any one violation

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's exceed 5100,000 erc(.q<

The duration of a violation may also be considered in assessing a x-civil penalty.

A greater civil penalty may be imposed if a' violation

' cont.inues for more than a day.

Generally, if a licensee is aware of the existence of a condition which results in an ongoing violation and fails to initiate corrective action, each day the condition existed may be considered as a separate violation and, as such, subject to a separate addition'al civil penalty.

Generally, for situations where a licensee is unaware of a condition resulting in a cor.tinuing violation, a separate violation and attendant civil penalty may be considered for each day that the licensee clearly should have been aware of the condition or had an opportunity to correct the condition, but failed to do so.

For example, if such a condition exists for six months and it clearly should have been found by licensee tests or audits which are required once each month, a violation and ' associated civil penalty could be considered for each of the six separate occasions that the violation was not detected by the' test or audit.

~ Civil penalties in excess of three times the maximum civil pe.nalty

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for a single Severity Level I violation for each type of licensee require specific Commission approval in accordance with guidance set forth in Section VI below.

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NRC statutory authority permits the' assessment of the maximum' civil

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penalty for each violation.

The Tables and the mitigating factors

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it determine the civil penalties which may be assessed for each violation.

' However, to e'mphasize the focus on thi fundameni.a1 underivino causes

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tof a problem for which enf_orcement_ac. tion _. app _ ears _to be warraiited, '

'the cumul_ative total for all violatime whie-h contributed to or were '-

4 unavoidable consequences of that orablem will generally be basec7n 1

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trie amount snown -in the table as aojusteo.

11 an evaluation of s~uch.

.muiLipie violations shows that more than one fundamental oroblam is l

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involved, each of which if viewed.tadependentav-wou to ITM-to civil

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penalty actionWitself. then separate c1vil oenalties mav be.

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. assessed for each such Tonoameo.tA1_pr.obles In this regard, the failu're to Gre-a requTiTdTport of an e. vent requiring -such reporting

--T lis considered a separate problem and.will normally be' assessed a

$;r-separate civil penalty.

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• E fied that f.hereTiTTGsonaese assurance that the~ licensee can operate..

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%in compliance with.the applicable' requirements;uor modification of

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. Show cause-for.hqod_ ification or rev-ocation~ of the license, as appro <

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When more than' 6.M..Mg.P.' Ac

. one facility-is covered by a single license, the normal progression '

NyMf'., %," will!be based;on similar violations at an individual facility-and not.

i@h[sfN.bn'.similar. violations'.under the same license.

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" -J However, it should be notedlthati,6hdersome.' circumstances,.e.g.,~wherethereiscommoncon-

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,J.7 trol 'over-some fa'cet of facility operations, similar violations may'

'be charged even though the second violation occurred at a diffe,ent

-facility or.under.a.diffe' rent. license.

For example,.a physical security violation at lJnit 2 of a dual unit plant that. repeats an earlier violation at Unit 1 might be considered similar.

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. d,.iN,n.a.K:E.7 RELATED ADMIN.ISTRATI'VE. ACTIONS m-

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.In addition to the formal enforcement mechanisms of notice of viola-Wgy.

tion, civil penalties, and orders','NRC_also uses a^dministrative mechanisms, such as. enforcement conferences tlui.l. etins,:cire ows, confirmatory action. letters to. supplement its enforcemen information notices, gener_ic...l.et.ters, notices of deviation, Eh'd

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NRC expects licensees to adhere to any informai 'pbligations 6nd com-mitments resulting from these processesLand will not hesitah to issue

' appropriate orders to make sure that written commitments are met.

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Enforcement Conferences. are meetings held by NRC with licensee management to discuss safety, safeguards cr environmental i

problems, licensee compliance with regulatory requirements;,. a licensee's proposed corrective' measures (including s:hedtiles'for.

L implementation) and enforcement options available to the NRC.-

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(2)

Bulietins, Circulars, Information Notices and Generic Letters are written notifications to groups of. licensees identifying specific problems and recommending specific actions.

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Notices of Deviation are written notices describing a licensee's

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fai' lure.to satisfy a commitment..The' commitment "

A M, inso% e'd has"not:b~eenmade a legally binding requirement. gTh'e Ofl5".k.. a

%; 9%'.7, r.3,Try'-llfnotice'of deviition? requests the licensee or vendor to provide Y

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written explanation ~or statement describing corrective steps jl p 9..

,;.c-i '" taken (or" planned); the results achieved, and the date when -

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. corrective action will'be' completed..'

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1, (1) ^An action affecting a licensee's operation that requires b'G ancing' M 't"C.-

• ' the p'ublic health and ' safety and" common defense and security impli.cf."c

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,T"/ cations of.not operating with:the potential. radiological or other...: f '

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.(2.).;_ Proposals to impose civil penalties in amounts greater than three l

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3.:.:(3) Any propo. sed enforcement action on which the Commission asks, to be...

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_1(4).,.;_EA'ny actionThe Office Director believes warrants Commission involve ~.A-.

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e35.~3;I VII'. ?.. DMINISTRATNEREINOFCIVILPENALTY.'ANDOTHERORDERS T, ' ' 3..

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7 lt should be noted that under the Commission's current regulations the ':. 7 l.

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review process may not result in an increased civil peglty but only. in'

-F the reduction or affirmation of the penalty imposed by the Directer.

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SUPPLEMENT III - SEVERITY CATEGORIES gh'

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Severity I - Very significant violations involving:

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- An act of radiological: sabotage or: actual. theft, loss, or diversion c.

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material access area from out.sioe tne protected area (!.e 3r-F #~

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Severity II - Very significant violations involving:

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Actual thef t,.1oss or diversion of a -Category II quantity..'of SNM.

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Failure to use established security systems (including compensatory-measures) designed or used to prevent any. unauthorized individual from enterincj a material access area from outside the protected area (i.e., entry through two barriers) so that access could have been gained without detection; 3.

Failure to implement approved compensatory measures when the central (or secondary) alarm station is inoperable; I

4.

Failure to establish or maintain safeguards syst' ems designed or used to prevent or detect t.he u.nauthorized removal of a Category ~I quantity l

of SSNM from areas of authorized use or storage; or 5.

Failure to use established transportation security systems designed or used to prevent the theft, loss, or diversion of a~ Category I

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quantity.of SSNM or acts of radiological sabotage.

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Severity III - Significant violations involving:

1.

Failure to control access to a vital area or material access area

__A-from inside the protected area or failure to control access to a protected area from outside the protected area; 2.

Failure to centrol access to a transport vehicle or the SNM.being-transported that do.not constitute Severity I or II violations;

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Failure to establish or maintain safeguards. systems designed or_u~ sed to. detect the unauthorized removal of a Category II quantity of SNM

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Failure to properly secure r protect cicssified or other sensitive safeguards information-L 9

Severity IV -~ Violations involving:

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Failure 'to establish pr maintain safeguards systems designed or used

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Failure to implement 10 CFR Parts 25 and 95 and information addressed.

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under Section 142 of the Act, and the NRC approved security plan relevant.to those parts; or 3.

Other violations, such as failure to follow an approved security "i

plan, that have more than minor safeguards significance

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Severity.V - Violations 'that have minor safeguards significance.

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MISCELLANEOUS ACTIVITIES.

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'S

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., A.,

c Severity-I -herv sionificanhviolations inv sving a (4aterial False A.

Statement (MFS)" or a reporting failure, with management aware 1Tess,

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involving information which, had it be ava.ilable to the-NRC5and accurate

.at the time the information should h se been submitted, would clearly have resulted in regulatory action.

B.

Severity.II

.Very sionifican violations involving:

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,M

'r.'.

T 1.

T The~samsitype-violati n as in A but in the absence of management-.,

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awareness;

,2.

.A MFS or~a repo eing. failure, with management awareness, involving.

~

information w ch, had it been available to the NRC and accurate at

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~,- the: time the information should have been submitted, probably would

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~have resul d in regulatory action or would likely have resulted in NRC 3eeki g further information; 3.

Discri nation, which is prohibited by Section 210 of the Energy Reor nization Act (ERA), by management at any levei above first-line.

sup. vision, against an employee for attemptir.g to communicate or ac ally communicating with NRC; or 4.

a knowing and conscious failure to provide the notice required by m_

Part 21.

C.

Severity III - Significant violations involving:

1.

The same type violation as in B.2 but in the absence of management awareness; 2.

A MFS or a reporting failure, with management awareness, not con-stituting Severity Level I or II violations; 3.

Discrimination, which is' prohibited by Section 210 of the ERA, by first-line supervision, against an employee for attempting to commun-icate or actually communicating with NRC which is likely to produce an effect on the willingness of others to provide information to the NRC; or 4..

Inadequate review or failure to review such that, if an appropriate review had been made as required,.a Part 21 report would have been

.made.

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nIn essence, a Material False Statement is a ~ statement that is< false by'ommission or commission and is relevant to the regulatory process.

23The severity level of an untimely report may be reduced one level depending on the M rcumstances' surrounding _the matter.

25