ML20217C180

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Responds to 990826 Memo Requesting Waiver of Part 170 Fees for Operating Reactor Licensees Participating in risk-informed Part 50 Option 2 Pilot Program.Exemption Granted in Accordance with 10CFR170.11(b)(1)
ML20217C180
Person / Time
Issue date: 10/08/1999
From: Funches J
NRC OFFICE OF THE CONTROLLER
To: Collins S
NRC (Affiliation Not Assigned)
References
NUDOCS 9910130183
Download: ML20217C180 (5)


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MEMORANDUM TO:

Samuel J. Collins, Director Office of Nuclear Reactor Regulation Jesse L. Funches /

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FROM:

W" Chief FinancialO icer

SUBJECT:

REQUEST FOR WAIVER OF FEE BILLING FOR RISK-INFORMED PART 50 OPTION 2 PILOT PLANT PARTICIPANTS Your August 26,1999, memorandum requested a waiver of Part 170 fees for operating reactor licensees participating in the Risk-informed Part 50 (RIP 50) Option 2 pilot program. As explained below, an exemption is granted in accordance with 10 CFR Part 170.11(b)(1).

The staff developed three options (described in SECY-98-300) to address risk informed revisions to 10 CFR Part 50 " Domestic Licensing of Production and Utilization Facilities."

in developing the options, the staff met with the public, the Nuclear Energy Institute (NEI),

nuclear utilities, and other representatives of industrial groups on several occasions. During these meetings between the Commission and various stakeholders, the concern was expressed that the NRC is not placing enough emphasis on risk-informing its reactor requirements with the result of risk assessments.

The Commission approved the implementation of Option 2: which is to develop risk-informed cbfinitions of " safety-related" and 'important to safety." The Commission approved the staff's rec.ommendation to use industry pilot studies to assist in the development of the Part 50 modificatbns. NRR is requesting a fee waiver as an additional incentive to operating reactor licensee", contemplating pilot program participation so that the staff can observe the benefits and c;ffeculties of implementing new risk-informed definitions for a variety of facilities, and incorpcrate the lessons learned into its rulemaking activities. NRR believes that these pilot program reviews will assist in the development of a well-structured risk-informed regime that will pmvide increased effectiveness of regulated activiues and reouce future review costs for the industry and therefore, the fee waiver is in the public interest.

NRR has received one pilot plant application from the South Texas Project Nuclear Operating Company. Three other licensees have been identified as prospective applicants for the pi!ot j

program: San Onofre, Fermi 2, and ANO-1, J

Based on the foregoing, an exemption from the 10 CFR Part 170 fee requirements for up to six pilot plant applications received in support of the risk-informed Part 50 Option 2 pilot program is appropriate. This exemption is authorized by law and is graated in accordance with 10 CFR Part 170.11(b)(1).

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l S. Collins-2 October 8, 1999 The License Fee and Accounts Receivable Branch should be informed as the applications are accepted by NRR into the pilot program. The TAC numbers assigned to the applications to track the NRC's review effort should be coded as non-fc9 billable under Part 170.

If you have any questions, please contact Ellen Poteat of my staff at 415-6392.

Distribution:

J. Williams, NRR L. Tremper, OCFO/LFARB OCFO/DAF/LFARB RF OCFO/DAF RF (DAF-9-187)(closes)

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August 26, 1999 MEMORANDUM TO: Jesse L Funches Chief Financial Officer e

FROM:

Samuel J. Collins, Director j

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SUBJECT:

REQUEST FOR WAIVER OF FEE BILLING FOR RISK-lNFORMED PART 50 OPTION 2 PILOT PLANT PARTICIPANTS This memorandum requests a waiver of fees for operating reactor licensees participating in the Risk-Informed Part 50 (RIP 50) Option 2 pilot program. RIP 50 Option 2 is described in SECY-98-300, and is intended to develop risk-informed definitions of " safety-related" and i

"important to safety." The option would only change the regulatory scope of systems, structures and components needing special treatment in terms of quality but does not change the design of the plant or the design basis accidents, which establish the physical complement of plant systems included in the design. This approach should allow a better focus on safety significant systems, structures, and components by licensees and the NRC, while reducing the regulatory burden on licensees associated with items oflow or no safety significance. The

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Staff Requirements Memorandum for SECY-98-300 directed that a pilot program using

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exemptions be used to assist in the development of these changes to Part 50.

NRR wishes to use the propored fee walver as an additional incentive to anyone contemplating pilot program p.irticipation so that the staff can observe the benefits and difficulties of implementing nr w risk-informeo definitions for a variety of facilities, and incorporate the leesons learred into its rulemaking activities. As required by 10 CFR 170.11(b)(1), NRR finds thalwalving fees for these pilot program reviews is in the public interest, because of the reduced costs and increissed effectiveness of regulated activities in a well-structured risk-informad regime. NRR notes that fee relief has been previously authorized for other pilot program activities, such as license renewal ar d risk-informed inservice inspection.

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At this time, the staff han received one pilot plant application from the South Texas Project Nuclear Operating Corr pany. The Nuclear Energy Institute (NEI) has identified three other licensees as prospective pilot program participants if you authorize the proposed fee waiver, note that the TAC numbers for the South Texas review and staff hours already expended will need to be reclassified as non-billable.

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The staff is discussing the pilot programs with NEl, and would like to inform them of this fee waiver as soon as practical.' Therefore, we would appreciate your prompt attention to this request.

CONTACT: Joseph Williams, NRR 415-1470 I I

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