ML20041D738
| ML20041D738 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 02/22/1982 |
| From: | Palladino N NRC COMMISSION (OCM) |
| To: | Simpson A SENATE, ENVIRONMENT & PUBLIC WORKS |
| References | |
| NUDOCS 8203090067 | |
| Download: ML20041D738 (3) | |
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February 22, 198?
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h The Honorable Alan K.
Simpson Chairman Subcommittee on Nuclear Regulation
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Dear Mr. Chairman:
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This is in response to your December 22, 1981 letter which requested a copy of the criteria we intend to apply in re-viewing and approving the independent design reverification program, and the selection of contractors to conduct the program, for the Diablo Canyon plant.
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Section 1(a) of Attachment 1 to the Commission's November 19, 1981 Order outlines the information we are requesting from.the independent contractor for the design verification program.
T Additional information may be required as our review continues.
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The criteria we will use for selection of the independent E.;
auditor are enclosed.
tu I trust that this information is responsive to your request.
E Sincerely,
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Enclosure:
ic Criteria for Selection of 5
Independent Auditor 7
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Senator Gary Hart L
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PDR COMMS NRCC
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CORRESPONDENCE PDR
s CRITERIA FOR SELECTION OF INDEPENDENT AUDITOR The most important factor in NRC's evaluation of the individuals or companies proposed by Pacific Gas and Electric to canplete the required design verification program is their competence.
This competence must be based on knowledge and experience in the matters under review.
These individuals or companies should also be independent.
Independence means that the individuals or companies selected nust be able to provide an objective, dispassionate technical judgement, provided solely on the basis of technical merit.
Their integrity must be such that they are regarded as reputable companies or individuals.
Also, the companies or individuals may not have had any direct previous involvement with the activities at Diablo Canyon that they will be reviewing.
In addition, the following factors will be considered in evaluating the question of independence:
(1) Whether the individuals or companies involved had been previously hired by PG&E to do similar seismic design work.
(2) Whether any individual involved had been previously employed by PG&E (and the nature of the employaent).
(3) Whether the individual owns or controls significant amounts of PG&E stock.
s (4) Whether members of the present household of individuals involved are employed by PG&E.
(5) Whether any relatives are employed by PG&E in a management capacity.
In addition to the above considerations, the following procedural guidelines will be used to assure independence:
(1) An auditable record will be provided of all comments on draft or final reports, any changes made as a result of such comments, and the reasons for such changes; or the consultant will issue only a final report (without prior licensee comment).
(2)
HRC will assume and exercise the responsibility for serving the report on all parties.
We are requiring that PG&E provide the NRC with a description and a discussion of the corporate qualifications of the companies proposed to carry out the various design verification programs, including information that demonstrates the independence of these companies.
This information will be provided to the Governor of California ar.d the Joint Intervenors for comments.
Based upon review of the information provided by PG&E and the comments of the Governor and Joint Intervenor, the NRC will decide on the acceptability of' the NRC companies with respect to their " independence" and " competence."
In addition, approval will not be given by NRC if we determine that a potential conflict of interest exists in the performance of any required audits that cannot be adequately addressed by procedural safeguards.
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.o. an, esi.ea.tv sese o.actea WA$MINGTON. D.C. 20$10 December 22, 1981 i
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Honorable Nunzio J. Palladino Chairman U.S. Nuclear Regulatory Commission Washin gton.
D.C.
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Dear Cha rma adino:
On November 19, 1981, the Commission issued an order suspending the authority of the Pacific Gas and Electric Company to load fuel and conduct low power testing at the Diablo Canyon nuclear power plant.
Among other things, the order specifies certain actions that the licensee must complete satisfactorily before this suspension will be lifted.
In particular, the order requires NRC review and approval of an independent design verifi-cation program for the plant, to be proposed by the licensee, and the qualifications of the contractors proposed by the licensee to conduct the program.
I understand that the Commission will be considering in the near future possible criteria to be used in assessing the inde-pendence of this design verification program and the suitability of the contractors proposed by the utility to conduct the program.
I believe that the Commission, in establishing these criteria in this particular case, should consider the implications of these criteria for possible broader, industry-wide application.
Your recent statements have noted the possible need for independent, third party auditing in ' order to improve quality assurance in the construction of nuclear power plants.
In addition, I intend to cosponsor an amendment, to be proposed by Senator Ford when the Senate considers the NRC authorization bill early next year, that would require a study and pilot program of alternate concepts for improving quality assurance programs.
These alternate concepts include the use of independent, third party auditing.
That amendment, a copy of which is enclosed, dofines an independent auditor as a third party who has no responsibility for the design or construction of the plant.
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Honorable Nunzio J. palladino l
page Two I am concerned that if the Commission or the Congress at
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some point in the-future decides that in dependent, third party auditing is appropriate on an. industry-wide basis, the criteria now being developed in the Diablo Canyon case will set an impor-1 tant precedent for the industry-wide program.
Therefore, I believe it appropriate for the Commission in this case to con-sider, to the extent possible, criteria that would be appropriate and workable 'on an industry-wide basis, and that would assure th'e availability of a sufficient number of qualified experts to con-duct the necessary third party audits, should they be subsequently j
required throughout the industry.
In that regard, I would appreciate receiving a copy of any criteria that the Commission intends to apply in reviewing and approving the independent design verification program, and the selection of contractors to conduct this program, for the Diablo Canyon plant.
With best regards, 1
Most si cerely, i
la K.
impson Unite tates Senator AKS/phh 1
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I INTENDED 10 he pMposed by Mr.,,[grd,_[fgr, hi sp, lit,_:ir, Simpsgn and gr,]! art)
Viz:
On page 15, af ter line 23, add a ne.- secticn to reac as follows:
Sec.
.(a) The Nuclear Pegulator: Cermission is authorized and directed to implerent and accelerate the resident inspector program so as to assure the assignrent of at least one resident inspector by the end of fiscal year 1982 at each site at which a comnercial nuclear powerplant is under construction and construction is rore than 15 percent coralete.
(b) The Cor. mission shall conduct a study a alternate con-cepts and existinc procrars for improvine quality assurance and quality control perfernance in the construction of corrercial nuclear acwcrolants.
In conductina the study, the corrission shall obtain the corrents of the oublic, l i cens ees holdinc censtruction
>errits and operstinc licenses for nucicar ncwerplants, and the Advisorv Ccrmittee on Peactor Safeguards.
The study shall include, but not he limited to, the followinc altcrnative concepts for
- provine cuality assurance and cuality centrol:
(1) adopting a Fore prescriptive approach to defining principal architectural and encineering criteria for the construction of concercial nuclear prwerolants that would nerve as a basis for cuality assurance and quality control, insnection, and enforcerent actions:
t B (2) requiring, as a conditicn cf the issuance of con-struction permits for cornercial nuclear pcwerplants, that the licensee demonstrate the capability of independently performing all quality assurance and quality control responsibilities for the plant; (3) encouraging and obtaining rore effective inspections or audits of commercial nuclear powerplant construction by independent industry and institutional organizations; (4) reexamining the Ccmmission's crganization and method for quality assurance developrent, review and inspection, with the objective of deriving irproverents in the agency's program; and (5) requiring, as a condition of the issuance of con-struction permits for commercial nuclear powerplants, that the licensee contract or make other arrangements with an independent inspector for auditing quality assurance responsi-bilities for the purpose of verifying quality assurance perforr.ance.
An independent inspector is a third party who has no responsibilities for the design or construction of the plant.
The study shall also include a survey of representative sites at which quality assurance and cuality control programs are operating satisf actorily, and an assessment of the reasons therefor.
(c) The Cor. mission shall undertake a pilot progrce for assess-ing the feasibility and benefits of implerentinc one or more of the alternative concepts identified in subsection (b), provided, that the pilot program shall include the $se of independent, third-
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party inspectors for auditing quality assurance responsibilities of the licensee for the construction of comrercial nuclear power-plants, as described in paragraph (5) of subsection (a).
The pilot program shall include at least three ' sites at which commercial nuclear powerplants are under construction.
In selecting the sites to be included in the pilot program, the Cermission shall select at least one site at which quality assurance and quality control progrars have operated satisfactorily, and at least two sites at which significant construction, quality assurance and quality control deficiencies have been identificd in the past.
The l
Commission may require any changes in existing quality assurance f
anc quality control organizations and relationships that may be necessary at the selected sites to implement this pilot program.
(d) Not later than eighteen months after the date of enactment of this Act, the Commission shall submit a report to::the Senate and the House of Representatives on the results of,the study and the pilot program required by this section.
The report shall include the recommendations of the Commission, including any necessary legislative changes, and a description of~any administrative changes that the Cormission has undertaken or intends to undertake, for irproving quality assurance and quality control perforrance in the ccnstruction of nuclear powerplants.
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