ML20210Q326

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Notation Vote Response Sheet Disapproving with Comments, SECY-99-159 - Response to SRM SECY-97-304,980205, Response to SRM:SECY-97-144, Potential Policy Issues Raised by Non-Owner Operators
ML20210Q326
Person / Time
Issue date: 07/12/1999
From: Merrifield J
NRC COMMISSION (OCM)
To: Vietticook A
NRC OFFICE OF THE SECRETARY (SECY)
Shared Package
ML20210Q299 List:
References
SECY-97-144-C, SECY-97-304-C, SECY-99-159-C, NUDOCS 9908160009
Download: ML20210Q326 (2)


Text

m NOTATION VOTE RESPONSE SHEET TO:

Annette Vietti-Cook, Secretary FROM:

COMMISSIONER MERRIFIELD

SUBJECT:

SECY-99-159 - RESPONSE TO STAFF REQUIREMENTS MEMORANDUM (SRM) SECY-97-304, FEBRUARY 5,1998,

" RESPONSE TO SRM: SECY-97-144, ' POTENTIAL POLICY l

lSSUES RAISED BY NON-OWNER OPERATORS'"

Approved Disapproved Abstain Not Participating COMMENTS:

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Entered on "AS" Yes t/

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's COMMISSIONER MERRIFIELD'S COMMENTS ON SECY 99-159 The staff's effort to provide guidance regarding the threshold for NRC review of non-owner operating arrangements is commendable in light of the changing operating environment for nuclear power plant licensees. However, because the proposed Regulatory Guide presented in SECY 99-159 has some disappointing inconsistencies, I disapprove the staff's recommendation to publish the draft Regulatory Guide for public comment. My concerns are outlined below.

1

- The Regulatory Guide is confusing in three respects. First, the Regulatory Guide does not expressly mention that a 50.80 review will be automatically triggered if the proposed operating agreement involves transfer of authority to decide a matter which requires a license. While this 1

crucial point is noted on page 3 of the SECY paper itself, it is not carried forward into the Regulatory Guide. Having not made this point in the Regulatory Guide, however, the staff 4

proceeds to list a long series of examples which fall into this category (i.e., examples of matters which require a license and whose transfer would thus trig ger a 50.80 review.

Secondly, the Regulatory Guide expressly states that for tha transfer of decision-making authority for matters which do not require a license, the staff vill review the collective impact of the transfer of such individual decision-making authorities and Metermine if a defacto transfer of license authority has occurred. However, although there are hui.ireds of such decision-making j

activities involved in operation of a power plant, the Regulatory Gude contains examples of only three and, confusingly, Intersperses them with the examples of specite licensed activities

' described above. Thus, it is extremely difficult for the user of the Regulatory Guide to either understand the basic philosophy of the staff's approach or gain insight into the specific points to consider when evaluating a potential operating agreement.

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Thirdly, in the category of those activities which require a license, the Regulatory Guide lists some examples with a troubling lack of detail. Notably, the draft Regulatory Guide suggests that the entity which has decision-making authority over deferral of repairs would be considered to

. have authority over licensed activities and must be on the license. However, the Regulatory Guide does not in any way explore the limits of such a very broad concept. For instance, can a

- distinction be made between repairs to safety and non-safety equipment? What constitutes a deferral? While it is not possible to analyze all possible decision-making agreements in this area ahead of time, it is important that the Regulatory Guide make clear that the staff has considered some bounds to these and similar categories.

It is important that the staff complete the work it has started in this aspect of the dynamic arena of electric utility restructuring and deregulation. The staff should prepare a draft Reg Guide that presents guidance in a clear, organized fashion, the basic principles underlying 10 CFR 50.80.

If the staff uses examples such as those presented in SECY 99-159, the examples should be representative and illustrative of the basic principles, should be well articulated, and should contain appropriate caveats for their use.

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UNITED STATES y

NUCLEAR REGULATORY COMMISSION 1

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WASHINGTON, D.C. 20555 0001 August 12, 1999

++***p SECRETARY MEMORANDUM TO:

William D. Travers Executive Director for Operations g/

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FROM:

Annette L. Vietti-Cook, Secretary

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SUBJECT:

STAFF REQUIREMENTS - SECY-99-159 - RESPONSE TO STAFF REQUIREMENTS MEMORANDUM (SRM) SECY-97-304, FEBRUARY 5,1998, " RESPONSE TO SRM: SECY-97-144,

' POTENTIAL POLICY ISSUES RAISED BY NON-OWNER OPERATORS'"

The Commission has disapproved publication of the draft regulatory guide for public comment on " Criterion for Triggering a Review Under 10 CFR 50.80 for Non-Owner Operator Service Companies." The staff should revise the draft regulatory guide to address the following comments and resubmit it to the Commission for approval prior to publication.

(EDO)

(SECY Suspense:

9/20/99) 1.

Clarify that there are two types of criteria, those that will automatically trigger a @50.80 review (those that affect licensed activities) and those that can be considered collectively before a @50.80 review is required.

2.

Make clear what decision-making activities automatically trigger review under $50.80.

Provide any appropriate bounding of the broad statements of pertinent types of licensed sctivity. Identify and segregate with greater clarity the most important examples of a licensed activity that would individualiy trigger the need for $50.80 review. Do not intersperse these examples of automatically triggered reviews with examples of collective review.

3.

Similar attention should be given to amplification of the areas of activity that will be examined collectively in determining the need for @50.80 review. Provide any appropriate bounding of this criteria. Improve the clarity of the examples. The draft should contain more than 3 such examples. If the Maff um examples such as those presented in SECY 99-159, the examples should be representative and illustrative of the basic principles, should be well articulated, and should contain appropriate cavaats for their use.

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cc:

Chairman Dieus r

Commissioner Diaz Commissioner McGaffigan.

j Commissioner Merrifield OGC d

CIO CFO OCA-OlG '

OPA Office Directors, Regions, ACRS, ACNW, ASLBP (via E-Mail)

PDR DCS

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