ML21292A127

NRC Staff Presentations for October 20-21,2021 Fuel Facility Stakeholders Public Meeting

ML21292A127
Person / Time
Issue date:	10/20/2021
From:	Rowley J NRC/NMSS/DFM/FFLB
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J ROWLEY NRC/NMSS/DFM/FFLB 3014154053
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Download: ML21292A127 (112)

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Jonathan Rowley, Project Manager Division of Fuel Management Office of Nuclear Material Safety and Safeguards Email: Jonathan.Rowley@nrc.gov Phone: 301-415-4053 1

Fuel Facility Stakeholders Meeting October 20, 2021 Public Meeting With Nuclear Energy Institute and Members from the Nuclear Fuel Facility Industry

Meeting Category and Public Participation This is an Observation Meeting. This is a meeting in which attendees will have an opportunity to observe the NRC performing its regulatory function or discussing regulatory issues. Attendees will have an opportunity to ask questions of the NRC staff or make comments about the issues discussed following the business portion of the meeting; however, the NRC is not actively soliciting comments towards regulatory decisions at this meeting.

2

Agenda - October 20, 2021 Topic Time Speakers Introduction (Purpose, Rules for Meeting) 10:00 AM Jonathan Rowley, Project Manager Division of Fuel Management (DFM)

Opening Remarks 10:10 AM Shana Helton, Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission Janet Schlueter Nuclear Energy Institute (NEI)

• Status of Action Items from March 2021 Meeting

• Integrated Schedule and Supplement Updates 10:15 AM Jonathan Rowley, Project Manager, DFM Public Q & A 10:45 AM Fuel Facility Licensing

• Status of Smarter Licensing Program

• COVID Request for Regulatory Relief and Lessons Learned 10:50 AM Matthew Bartlett, Project Manager, DFM Jennifer Tobin, Project Manager, DFM NRC staff/NEI/Industry NRC priorities non-fee billable work expenditures 11:35 AM Matthew Bartlett, Project Manager, DFM Public Q & A 11:50 PM Lunch Break 12:00 PM 3

Agenda - October 20, 2021 (cont.)

Topic Time Speakers Low Safety Significance Issue Resolution 1:00 PM Donnie Harrison, Senior Level Advisor, DFM NEI/Industry Fuel Facility Oversight

• Status of the Fuel Cycle Smarter Inspection Program

• COVID-19 Public Health Emergency Oversight Activities Assessment

• Region II Inspection Topics 1:20 PM Alayna Pearson, Fuel Cycle Operations Engineer, DFM Leira Cuadrado, Senior Project Manager, Division of Materials Safety, Security, State, and Tribal Programs Eric Michel, Branch Chief, Region II NEI/Industry Public Q & A 1:50 PM 4

Agenda - October 20, 2021 (cont.)

Topic Time Speakers Discussion on Various Regulatory Initiatives:

Status of Forthcoming NRC Letter on Safety Margin Staff Requirements Memorandum on SECY-19-0095 on Part 73 rulemaking re: security orders post 9/11 Part 71 proposed rule NRC Environmental Justice Practice Transformation Survey 2:00 PM Alayna Pearson, Fuel Cycle Operations Engineer, DFM Jill Shephard, Branch Chief, Division of Rulemaking, Environmental, and Financial Support Gregory Suber, Director, Environmental Justice Review Team Aida Rivera, Executive Technical Assistant, Office Executive Director of Operations NEI/Industry Public Q & A 3:00 PM Recap of Action Items from the Day 3:10 PM Jonathan Rowley, Project Manager, DFM Closing Remarks and Adjourn 3:20 PM Shana Helton, Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission Janet Schlueter Nuclear Energy Institute (NEI) 5

Opening Remarks Shana Helton, Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards Janet Schlueter, Senior Director Fuel and Radiation Safety Nuclear Energy Institute 6

Jonathan Rowley Project Manager Division of Fuel Management Office of Nuclear Material Safety and Safeguards 7

Action Items from March 2021 Fuel Facility Stakeholders Public Meeting

Action Items - March 2021 Public Meeting 8

8 Action Item 1 Smarter Licensing Consider establishing a Web page to provide information on smarter licensing similar to the level of the information provided on smarter inspection.

Action item 2 Logistics The NEI again requested that NRC staff provide the slides for these meetings earlier to give them more review time.

Action Item 3 COVID-19 Lessons Learned NEI asked that NRC staff inform them what they could do differently to facilitate inspections during the PHE, and under normal operations.

Consider the following topic for future discussion: incorporation of remote inspections into routine oversight activities.

Action Item 4 Safety Margins Violations to 10 CFR Part 70.62 requirements: NRC staff will consider industry recommendations to clarify the guidance in IMC 0616 for determining when a violation is a SL-IV or minor.

Action item 5 Issues of Low Safety Significance The industry requested the opportunity for more involvement/transparency in the development process of the screening questions.

Action Item 6 Issues of Low Safety Significance The NRC staff should consider licensee participation in the tabletops.

Action Item 7 Issues of Low Safety Significance The NRC staff should consider the situation where licensees put commitments in place that go beyond the regulations. The Low Safety Significance Issue Resolution process may trigger license amendment requests to remove those commitments.

Action item 8 Security for Facilities Possessing Cat II SNM Consider developing generic guidance on the main fuel types.

Action Item 9 Security for Facilities Possessing Cat II SNM NEI request: provide in advance the date for releasing Q and A information.

Action Items - March 2021 Public Meeting Action Item 1 Smarter Licensing

• Consider establishing a Web page to provide information on smarter licensing similar to the level of the information provided on smarter inspection.

NRC Staff Resolution

• Periodic status updates of smarter licensing program being added to the NRC public website (https://www.nrc.gov/materials/fuel-cycle-fac/regs-guides-comm.html#building).

9 9

Action Item 2 Logistics

• The NEI again requested that NRC staff provide the slides for these meetings earlier to give them more review time.

NRC Staff Resolution

- NRC will attempt to provide slides to NEI at least one week prior to meetings 10 10 Action Items - March 2021 Public Meeting

Action Item 3 COVID-19 Lessons Learned a) NEI asked that NRC staff inform them what they could do differently to facilitate inspections during the Public Health Emergency (PHE) and under normal operations.

b) Consider the following topic for future discussion:

incorporation of remote inspections into routine oversight activities.

11 11 Action Items - March 2021 Public Meeting

Action Items - March 2021 Public Meeting NRC Staff Resolution a) The NRC staff has not identified anything to be done differently to facilitate inspections during the PHE than under normal operations. Should such areas be identified, they will be communicated.

a) The staff has noted this is an area of interest and will keep it under consideration for future discussions.

12 12

Action Item 4 Safety Margins

• Violations to 10 CFR Part 70.62 requirements: NRC staff will consider industry recommendations to clarify the guidance in IMC 0616 for determining when a violation is a SL-IV or minor.

NRC Staff Resolution

• The industry recommendations are still under consideration.

13 13 Action Items - March 2021 Public Meeting

Action Items 5 and 6 Issues of Low Safety Significance

• The industry requested the opportunity for more involvement/transparency in the development process of the screening questions.

• The NRC staff should consider licensee participation in the tabletops.

14 14 Action Items - March 2021 Public Meeting

Action Items - March 2021 Public Meeting NRC Staff Resolution Subsequent to the March meeting, the fuel cycle industry did not provide any additional example past issues to tabletop and the NRC staff has slightly refined its progressive screening process based on the one internal tabletop activity. As opportunities arise to further develop and refine the progressive screening process, the NRC staff will consider holding a workshop to walk through some experiences and how they were used to further improve the staff guidance. If an example past issue is identified to tabletop by the industry, the NRC will consider walking through the tabletop with industry participation and/or feedback.

15 15

Action Items - March 2021 Public Meeting Action Item 7 Issues of Low Safety Significance

• The NRC staff should consider the situation where licensees put commitments in place that go beyond the regulations. The Low Safety Significance Issue Resolution process may trigger license amendment requests to remove those commitments.

NRC Staff Resolution of Item 7 A licensee can pursue a license amendment to change or remove prior commitments. The staff would review such requests using our normal processes, which would include considering the safety significance of the commitment and its relationship to the regulations and regulatory compliance.

16 16

Action Items - March 2021 Public Meeting Action Item 8 Security for Facilities Possessing Cat II Special Nuclear Material (SNM)

• Consider developing generic guidance on the main fuel types.

NRC Staff Resolution

- The NRC staff has begun development of a draft Interim Staff Guidance 17 17

Action Items - March 2021 Public Meeting Action Item 9 Security for Facilities Possessing Cat II SNM

• NEI requested for the NRC staff to provide in advance the date for releasing Question and Answer (Q&A) information NRC Staff Resolution The Q&As were made available on the NRC public website (https://www.nrc.gov/reactors/new-reactors/advanced/rulemaking-and-guidance/fuel-cycle.html) in October 2021 18 18

Integrated Schedule Chart and Supplement Updates Jonathan Rowley Project Manager Division of Fuel Management Office of Nuclear Material Safety and Safeguards 19

20 Integrated Schedule Chart Updates 20 See Portable Document Format (PDF) under ADAMS Accession Number ML21288A144.

See ADAMS Accession Number ML21288A152 for a detailed summary of the changes.

Updates to Integrated Schedule Chart and Supplement

• Updated information

- Fuel Facility Stakeholders Meeting https://www.nrc.gov/materials/fuel-cycle-fac/regs-guides-comm.html#cumeffects

- Integrated Schedule (Chart)

ADAMS Accession Number ML21288A144 Summary of changes to previously listed activities (June 2021 - October 2021)

ADAMS Accession Number ML21288A152

- Integrated Schedule Supplement ADAMS Accession Number ML21288A148 21

Public Participation At this time, the public is afforded an opportunity to ask questions and/or provide comments on the following topics:

- Status of Action Items from March 2021 Meeting

- Integrated Schedule and Supplement Updates 22

Smarter Licensing Program Matthew Bartlett, Project Manager Fuel Facility Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards 23

Background:

1. The smarter fuel cycle licensing program has been ongoing since 2019, see Charter - April 26, 2019, (ADAMS Accession No. ML19115A016)

2. A number of recommendations were identified and grouped as Near-Term, Mid-Term and Long-Term, based on the time for implementation, see Recommendations - April 30, 2020 (ADAMS Accession No. ML20099F354)

3. The NRC staff developed an actions plan describing implementation, see Action Plan - July 10, 20220 (ADAMS Accession No. ML20184A267).

24 Smarter Licensing Program

Accomplishments

1. The Near-Term recommendations have been incorporated into the following NRC Division Instructions (DI):

• LIC-FM-1 Licensing Overview (Draft),

• LIC-FM-2 Acceptance Review Process (Draft),

• LIC-FM-3 Requests for Additional Information (Draft), and

• LIC-FM-4 Safety Evaluation Reports (Draft).

2. These DIs will be made publicly available in ADAMS following concurrence.

25 Smarter Licensing Program

Next Steps 1.

Finalize the DIs and make them publicly available.

2.

Conduct staff training on the Near-Term recommendations in the finalized DIs.

3.

Develop job-aids and templates for implementations of the Mid-Term recommendations.

4.

A quarterly updated will be published to the NRC public website at: https://www.nrc.gov/materials/fuel-cycle-fac/regs-guides-comm.html#building.

26 Smarter Licensing Program

27 QUESTIONS/COMMENTS Smarter Licensing Program

COVID Lessons Learned and Beyond Jennifer Tobin, Project Manager Fuel Facility Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards 28

COVID Status Since March 2021 Meeting COMPLETED EMERGENCY PREPAREDNESS (EP) EXERCISE EXEMPTIONS:

UNDER REVIEW:

29 Licensee Application Date Targeted Completion Need for Regulatory Compliance BWXT (EP) 9/14/21 11/1/21 1/30/22 Nuclear Fuel Services (Physical Security) 9/1/21 11/22/21 1/20/22 Nuclear Fuel Services (EP) 9/1/21 11/1/21 12/18/21 Licensee Application Date Targeted Completion Actual Completion Need for Regulatory Compliance Honeywell International 4/30/21 8/30/21 8/11/21 10/1/21 Global Nuclear Fuels-America 8/20/21 9/30/21 10/1/21 12/31/21 Framatome Inc.

9/1/21 9/30/21 10/1/21 10/6/21 Louisiana Energy Services 9/16/21 10/18/21 10/14/21 12/31/21

Lessons Learned in Licensing Reviews during COVID PHE

• NRC guidance Letter dated May 14, 2020, U.S. NUCLEAR REGULATORY COMMISSION PLANNED ACTIONS RELATED TO EMERGENCY PREPAREDNESS BIENNIAL EXERCISE REQUIREMENTS FOR ALL LICENSEES DURING THE CORONAVIRUS DISEASE 2019 PUBLIC HEALTH EMERGENCY (ML20120A003)

Letter dated November 10, 2020, U.S. NUCLEAR REGULATORY COMMISSION UPDATED PLANNED ACTIONS RELATED TO CERTAIN REQUIREMENTS FOR OPERATING AND DECOMMISSIONING REACTOR LICENSEES DURING THE CORONAVIRUS DISEASE 2019 PUBLIC HEALTH EMERGENCY (ML20261H515)

• Pre-submittal discussions with NRC staff improved efficiency

• Precedence is a useful source of information 30

Current and Future Non-fee Billable Activities Matthew Bartlett, Project Manager Fuel Facility Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards 31

Budget vs. Utilization (FY2021) 32 Product Line Budget FTE Utilization FTE Difference Event Response 2.0 1.3 (0.7)

Generic Homeland Security 3.0 2.7 (0.3)

International Activities 7.0 6.1 (0.9)

Licensing 19.0 20.7 1.7 Oversight 26.0 26.1 0.1 Rulemaking 1.0 1.0 0.0 Mission Support 14.0 16.4 2.4 Training 1.0 0.8 (0.2)

TOTAL 73.0 75.1 2.1

Status of Non-Billable Work in the Fuel Facilities Business Line (FY2021) 33 Product Line 1 - Event Response Description Budget FTE Utilized Difference NB-FF-Event Response-Response Operations 2

1.3 (0.7)

Response Operations Total 2

1.3 (0.7)

Actual hours for an FTE 1513 hours0.0175 days <br />0.42 hours <br />0.0025 weeks <br />5.756965e-4 months <br /> Loaded hours for an FTE 2085 hours0.0241 days <br />0.579 hours <br />0.00345 weeks <br />7.933425e-4 months <br /> (including leave)

Status of Non-Billable Work in the Fuel Facilities Business Line (FY2021) 34 Description Budget FTE Utilized Difference Security Infrastructure 2.0 2.7 0.7 Control of Radioactive Materials 1.0 0

(1.0)

Response Operations Total 3.0 2.7 (0.3)

Product Line 2 - Generic Homeland Security (Off Fee Base)

Status of Non-Billable Work in the Fuel Facilities Business Line (Fiscal 2021) 35 Conventions & Treaties Import/Export Licensing International Cooperation International Liaison Description Budget FTE Utilized Difference Conventions & Treaties 4

3.3 (0.7)

Licensing Export/Import 1

1.1 0.1 International Technical Cooperation 2

1.7 (0.3)

Response Operations Total 7

6.1 (0.9)

Product Line 3 - International Activities (Off Fee Base)

Non-Billable Work (Fiscal 2021) 36 Description Budget Utilized Difference Licensing Action (Fee Recoverable) 16 6.2 2.0 Licensing Action (Non-Billable) 11.8 Policy Advice and Outreach 1

0.6 (0.4)

Security 2

2.1 0.1 Response Operations Total 19 20.7 1.7 Product Line 4 - Licensing Actions

• Product Line 4 - Licensing (Non-Billable items)

Generic Charges - Office of the General Counsel, Materials Control & Accounting (MC&A), etc.

(3.6 FTE - 7506 hours0.0869 days <br />2.085 hours <br />0.0124 weeks <br />0.00286 months <br /> [loaded])

Smarter Licensing Program (2.4 FTE - 5004 hours0.0579 days <br />1.39 hours <br />0.00827 weeks <br />0.0019 months <br /> [loaded])

Licensing Assistant (2 FTE - 4170 hours0.0483 days <br />1.158 hours <br />0.00689 weeks <br />0.00159 months <br /> [loaded])

Division Guidance Development (1 FTE - 2085 [loaded])

Guidance for MC&A at Cat II (0.8 FTE - 1668 hours0.0193 days <br />0.463 hours <br />0.00276 weeks <br />6.34674e-4 months <br /> [loaded])

Stakeholder Meeting (0.5 FTE - 1042 hours0.0121 days <br />0.289 hours <br />0.00172 weeks <br />3.96481e-4 months <br /> [loaded])

Other (1.5 FTE - 3125 hours0.0362 days <br />0.868 hours <br />0.00517 weeks <br />0.00119 months <br /> [loaded])

Non-Billable Work (Fiscal 2021) 37 Description Budget Utilized Difference Allegations and Investigations 1.0 0.8 (0.2)

Enforcement 3

2.1 (0.9)

Inspection (Fee Recoverable) 18.8 7.3 0.8 Inspection (Non-Billable) 11.5 Security 4

4.5 0.5 Response Operations Total 26 26.1 0.1 Product Line 5 - Oversight DFFI Office Tasks (3.5 FTE - 7,297 hrs), Oversight Security (3.0 FTE - 6,255 hrs)

Enforcement (2.1 FTE - 4378 hours0.0507 days <br />1.216 hours <br />0.00724 weeks <br />0.00167 months <br />), Generic Charges (2.0 FTE - 4170 hours0.0483 days <br />1.158 hours <br />0.00689 weeks <br />0.00159 months <br />),

DFFI Meetings (1.8 FTE - 3,753 hours0.00872 days <br />0.209 hours <br />0.00125 weeks <br />2.865165e-4 months <br />),

Smarter Inspection Program (1.1 FTE - 2293 hours0.0265 days <br />0.637 hours <br />0.00379 weeks <br />8.724865e-4 months <br />)

Develop and Maintain Inspection Guidance (0.9 FTE - 1876 hours0.0217 days <br />0.521 hours <br />0.0031 weeks <br />7.13818e-4 months <br />)

Allegations and Investigations (0.8 FTE 1668 hours0.0193 days <br />0.463 hours <br />0.00276 weeks <br />6.34674e-4 months <br />)

DFFI Technical Assistant (0.7 1459hours)

Non-Billable Work (Fiscal 2021) 38 Description Budget Utilized Difference Mission Rulemaking 1.0 04 (0.6)

Rulemaking Support 0

0.6 0.6 Response Operations Total 1

1 0

Product Line 7 - Rulemaking

• Pre-Rulemaking 0.1 FTE - 209 hours0.00242 days <br />0.0581 hours <br />3.455688e-4 weeks <br />7.95245e-5 months <br />

• Proposed Rules 0.2 FTE - 417 hours0.00483 days <br />0.116 hours <br />6.894841e-4 weeks <br />1.586685e-4 months <br />

• Final Rules 0.1 FTE - 209 hours0.00242 days <br />0.0581 hours <br />3.455688e-4 weeks <br />7.95245e-5 months <br />

• Rulemaking Support 0.6 FTE - 1251 hours0.0145 days <br />0.348 hours <br />0.00207 weeks <br />4.760055e-4 months <br />

Non-Billable Work (Fiscal 2021) 39 Description Budget Utilized Difference Entry-Level Hiring 1.0 0.8 (0.2)

Non-Supervisory Resources 2.0 2.1 0.1 Supervisory Staff 10.0 12.2 2.2 Administrative Assistants 2.0 2.1 0.1 Response Operations Total 1

1 0

Product Line M & N - Training/Missions Support and Supervisors Entry-Level Hiring 0.8 FTE - 1668 hours0.0193 days <br />0.463 hours <br />0.00276 weeks <br />6.34674e-4 months <br /> Non-Supervisory Resources 2.1 FTE - 4378 hours0.0507 days <br />1.216 hours <br />0.00724 weeks <br />0.00167 months <br /> Supervisory Staff 12.2 FTE - 25,437 hours0.00506 days <br />0.121 hours <br />7.225529e-4 weeks <br />1.662785e-4 months <br /> Administrative Assistants 2.1 FTE - 4378 hours0.0507 days <br />1.216 hours <br />0.00724 weeks <br />0.00167 months <br />

Future Non-Billable Work in the Fuel Facilities Business Line 40

• FY 2022

- Commission meetings and drop-in meetings

- New NUREG-2212, Guidance For New Applications For Materials Licenses of Greater Than Critical Mass

- Renew existing license for 2 fee-exempt universities

- Smarter Licensing Long-term actions and periodic review of guidance

- Smarter Inspection Long-term actions and periodic review of guidance

- Annual Fee Rule

- RROAR Rulemaking

- Aligning on Authorizing Official responsibilities

- Operating Experience Review

- COVID Lessons Learned

Future Non-Billable Work in the Fuel Facilities Business Line

• FY 2023

- Commission meetings and drop-in meetings

- Update NUREG-1520, Standard Review Plan for Fuel Cycle Facilities License Applications

- Updating NUREG-1748, Environmental Review Guidance

- Issue new license for 1 fee-exempt university

- Renew existing license for 1 fee-exempt university

- Potential hearing for new license

- Operating Experience Review

- Annual Fee Rule 41

QUESTIONS/COMMENTS Current and Future Non-fee Billable Activities 42

Public Participation At this time, the public is afforded an opportunity to ask questions and/or provide comments on the following topics:

Fuel Facility Licensing Status of Smarter Licensing Program COVID Lessons Learned and Beyond Non-fee Billable Work Expenditures 43

Very Low Safety Significant Issue Resolution (VLSSIR)

Donnie Harrison, Senior Level Advisor Division of Fuel Management Office of Nuclear Material Safety and Safeguards 44

10/19/2021 45

10/19/2021 46

10/19/2021 47

Smarter Inspection Program Alayna Pearson, Inspection and Oversight Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards 48

Smarter Inspection Program 49

• Working Group (WG) conducted a holistic assessment of the fuel cycle oversight program to:

- Improve effectiveness and efficiency

- Further integrate risk-informed insights to ensure that the appropriate focus is applied to the areas most important to safety

• DFM Director approved (ML20079E064) the WGs recommendations (ML20078P093) on March 19, 2020 49

Smarter Inspection Program 50

• Revise fuel cycle inspection guidance documents

- Adjust the frequency of inspections + number of hours, according to the risk of the activity

- Reduce inspection frequency for facilities with an approved corrective action program

• To date, 40 inspection guidance documents have been revised and issued, and training sessions have been conducted to familiarize staff with the revisions and ensure common understanding of any new and revised guidance 50

Smarter Inspection Program 51

• Issued publicly available closure memorandum in June 2021 -

ML21172A286

• The following action is being tracked internally:

• Formalize process to incorporate operating experience into inspection program 51

Discussion on NRCs COVID-19 Public Health Emergency Oversight Activities Assessment - Phase B Leira Cuadrado, Senior Project Manager Material Safety and Tribal Liaison Branch Division of Materials Safety, Security, State, and Tribal Programs Office of Nuclear Material Safety and Safeguards 52 52

What is the Phase B of the NMSS COVID-19 Public Health Emergency Oversight Activities Assessment?

Evaluation of the various practices, adjustments, processes, and inspection techniques used to support inspection activities Focused on the Nuclear Materials and Waste Safety Programs.

Provide recommendations to enable NMSS activities to become more agile, resilient, and efficient both during future PHEs and when operating under normal circumstances.

Charter Available in ADAMS Accession No. ML21085A576 10/19/2021 53

Phase B Working Group Objectives 10/19/2021 54

Phased Approach for this Assessment 10/19/2021 55

Feedback Mechanisms Internal survey to inspection staff and program office staff Interviews to inspection staff and management (Branch Chiefs, Division Directors, and Regional Administrators/Office Directors)

Public Meetings to obtain external feedback in July and August 2021 10/19/2021 56

10/19/2021 57 Announcing materials inspections Remote and hybrid inspections Use of BOX or other platforms for document sharing Request records in advance for remote, hybrid, and on-site inspections Conduct interviews remotely during remote, hybrid, and onsite inspections On-site inspections

10/19/2021 58

Recommendations 10/19/2021 59

Specific to the FFBL - Hybrid approach for inspections Current and Future PHE Hybrid with remote and on-site concurrently is preferred During normal/routine implementation of the program On-site preferred method of inspection Flexibility for remote/hybrid aspect should be leveraged on a case-by-case 10/19/2021 60

• Report in review and concurrence process

• Will be publicly available by the end of November 2021 10/19/2021 61 Current Status

Inspection Topics Eric Michel Division of Fuel Facility Inspection Region II 62

Planned Update to IMC 2600 Appendix B 63

• Material Control and Accounting (MC&A)

Observation

• Estimated Resources Current: 30 hours3.472222e-4 days <br />0.00833 hours <br />4.960317e-5 weeks <br />1.1415e-5 months <br /> Planned: 20 hours2.314815e-4 days <br />0.00556 hours <br />3.306878e-5 weeks <br />7.61e-6 months <br />

• Frequency to better align with core inspection for Category III and Gas Centrifuge Current: Triennial Planned: Quadrennial 63

Public Participation At this time, the public is afforded an opportunity to ask questions and/or provide comments on the following topics:

• Issues of Low Safety Significance

• Status of the Fuel Cycle Smarter Inspection Program

• COVID-19 PHE Oversight Activities Assessment

• Region II Inspection Topics 64

Status of NRC Letter on Safety Margin Alayna Pearson Inspection and Oversight Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards 65

Status of NRC Letter on Safety Margin 66

• In two letters, submitted by NEI, dated July 24, 2020 (ML20211L714) and April 20, 2021 (ML21236A302), the industry discussed their position on safety margin and suggested edits to Inspection Manuel Chapter 0616

• The NRC staff is developing a letter in response to the concerns raised

• Coordination with general counsel, regional inspectors and backfit subject matter experts

• Letter and update to IMC 0616 expected by the end of the calendar year 2021 66

SRM on SECY-19-0095 Irene Wu Division of Rulemaking, Environmental, and Financial Support Office of Nuclear Material Safety and Safeguards 67

Status of Enhanced Security of Special Nuclear Material Rulemaking

• In SECY-19-0095, the staff recommended discontinuation of the rulemaking based on stakeholder input and a preliminary cost/benefit analysis.

• In SRM-SECY-19-0095, the Commission disapproved the staffs recommendation to discontinue this rulemaking.

- The SRM directs staff to develop a notation vote paper with a full range of options.

68

Proposed Rule: Harmonization of Transportation Safety Requirements with International Atomic Energy Agency Standards (Status)

James R. Firth Division of Rulemaking, Environmental, and Financial Support Office of Nuclear Material Safety and Safeguards

Part 71: Rulemaking Purpose and Types of Changes

• Harmonize the NRCs regulations with those of the International Atomic Energy Agency (IAEA)

- IAEA Safety Standards Regulations (2012 and 2018 Editions)

• Harmonize the NRCs regulations with changes made in a concurrent U.S. Department of Transportation (DOT) rulemaking

• Make other NRC-initiated changes 70

IAEA Harmonization

• Fissile material exemptions

• Revise insolation requirements for package evaluations

- Revise units for insolation for normal conditions of transport

- Include insolation for Hypothetical Accident Conditions

• Include Definition for Radiation Level

• Delete Low Specific Activity-III Leaching Test*

• Include New Definition for Surface Contaminated Object*

71

IAEA Harmonization (continued)

• Revise Uranium Hexafluoride Package Requirements

• Include Evaluation of Aging Mechanisms and a Maintenance Program

• Revise Transitional Arrangements*

• Include Head Space for Liquid Expansion*

• Revise Tables Containing A1 and A2 Values and Exempt Material Activity and Consignment Limits*

• Changes to harmonize with DOT and IAEA 72

IAEA Harmonization: Fissile Material Exemptions

• The proposed rule would not include all the IAEA fissile material exceptions

• The proposed rule will propose 2 additional fissile exemptions in § 71.15

- 3.5 grams or less uranium-235 could be included in an individual package (with restrictions on enrichment and total plutonium and uranium-233 content)

- Packages transported under exclusive use on a conveyance could contain up to a 140 grams of fissile material 73

Part 71: NRC-Initiated Changes

• Biennial quality assurance reporting (§ 71.106)

• Remove Type A limits from general license requirements (§§ 71.22, 71.23)

• Revise the determination of the mass limits containing mixed quantities of fissile material when uranium-233 is present (§ 71.22)

• Revise compatibility category designations for quality assurance requirements (Subpart H)

• Remove duplicative reporting (§ 71.95)

• Revise the definition of Low Specific Activity (LSA)

Material (§ 71.4)

• Remove references to irradiated reactor fuel in the advance notification requirements (§ 71.97) 74

General Licenses: Fissile Material (§ 71.22) and Plutonium-Beryllium Special Form Material (§ 71.23)

• No longer limit the general license to Type A quantities of radioactive material.

• No longer limit the general license to the use of a Type A package

• Other additional package requirements would no longer apply:

• § 71.55, General requirements for fissile material packages, and

• § 71.59, Standards for arrays of fissile material packages 75

Compatibility Category Designations for Quality Assurance (Subpart H)

• Goal: improve coverage of quality assurance requirements for Agreement State licensees

• Most requirements would be redesignated as Compatibility Category B

- Agreement States would be required to have compatible regulations for the approval, inspection, and enforcement of quality assurance programs for their licensees

- NRC and Agreement States would receive important reports regarding issues with radioactive material shipments 76

Part 71 Proposed Rule: Status

• July 20, 2021: SRM-20-0102 approved publication with changes

• The NRCs proposed rule will include changes to harmonize with changes being made by DOT in a concurrent rulemaking.

• Publication Notes

- Expected late 2021 (coordinating with the DOT) day comment period

- Public meeting during public comment period 77

Documents Draft Regulatory Basis for Harmonization of Transportation Safety Requirements with IAEA Standards (ML18262A185)

SECY-20-0102: Proposed Rule: Harmonization of Transportation Safety Requirements with International Atomic Energy Agency Standards (RIN 3150-AJ85; NRC-2016-0179) (ML20101F914)

SRM-SECY-20-0102: Proposed Rule: Harmonization of Transportation Safety Requirements with International Atomic Energy Agency Standards (RIN 3150-AJ85; NRC-2016-0179) (ML21201A039)

International Atomic Energy Agency, Regulations for the Safe Transport of Radioactive Material - 2012 Edition, IAEA Safety Standards Series No.

SSR-6, IAEA, Vienna (2012)

International Atomic Energy Agency, Regulations for the Safe Transport of Radioactive Material, IAEA Safety Standards Series No. SSR-6 (Rev.1),

IAEA, Vienna (2018) 78

Acronyms and Initialisms DOT - U.S. Department of Transportation IAEA - International Atomic Energy Agency MRPB - Materials Rulemaking and Project Management Branch NMSS - Office of Nuclear Material Safety and Safeguards NRC - U.S. Nuclear Regulatory Commission REFS - Division of Rulemaking, Environmental, and Environmental Support RIN - Regulation Identifier Number SECY - Commission Paper SSR - Safety Standards Regulations SRM - Staff Requirements Memorandum 79

NRC Environmental Justice Practice Gregory Suber, Director Environmental Justice Review Team 10/19/2021 80

Environmental Justice Review

• Systematic Review of NRC Environmental Justice (EJ) Program

- Internal review of policies, program, and activities

- Comprehensive external outreach

• Public Comment Period ends October 29th

• Paper due to Commission mid-February 10/19/2021 81

Environmental Justice Review

• Assessment of NRCs consideration of recent Executive Orders concerning EJ

• Evaluating the adequacy of the NRC 2004 EJ Policy Statement

• Benchmarking NRC EJ program with other Federal agencies

• Exploring formal mechanisms to enhance external stakeholder outreach efforts 10/19/2021 82

Environmental Justice Review

• What we are finding from outreach

- EJ communities want early involvement in NRC activities; more input in to decision making

- EJ Communities in rural, isolated areas have unique communication needs that must be considered

- Relationship building is essential to gaining trust

- Most executive agencies have much more robust and expansive EJ programs and activities 10/19/2021 83

Environmental Justice Review

• How you can still contribute to the conversation

- Public Meeting on October 21st

- Comments Accepted via

• Telephone: 301-415-3875 (leave voicemail comment)

• E-mail: NRC-EJReview@nrc.gov

• Mail: Office of Administration, MS TWFN-7-A60M, U.S.

Nuclear Regulatory Commission, Washington, DC 20555-001, ATTN: Program Management Announcements and Editing Staff

• Federal Rulemaking Website: www.regulations.gov using Docket ID NRC-2021-0137 10/19/2021 84

External Stakeholder Feedback Survey on Transformation Aida Rivera Executive Technical Assistant Office Executive Director of Operations 10/19/2021 85

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Background===

• Survey seeks external stakeholder perceptions on agencys transformation efforts

• Gathers information on how our focus areas have directly contributed to our Mission Performance, Information Sharing, Quality of Decision-making, and Timeliness of Decision-making

• Survey seeks feedback from a wide variety of NRC stakeholders (i.e., members of the public, Tribal governments, Agreement States, licensees, etc.)

• Survey provides an opportunity for growth

• Provides insights on how NRC external stakeholders perceive our transformation efforts

• Feedback can help NRC tailor our future activities on transformation 10/19/2021 86

Access and Timeframe

• Survey made publicly available on our updated Transformation public web page

• External Survey (see link)

• Survey will be available through March 31, 2022

• Allows enough time for all interested NRC external stakeholders to participate and provide survey feedback

• Recognizes that NRC external stakeholders participate in various NRC activities, during different times of the year 10/19/2021 87

Public Participation At this time, the public is afforded an opportunity to ask questions and/or provide comments on the following topics:

Status of Forthcoming NRC Letter on Safety Margin SRM on SECY-19-0095 on Part 73 rulemaking re: security orders post 9/11 Part 71 proposed rule NRC Environmental Justice Practice Transformation Survey 88

Jonathan Rowley Division of Fuel Management Office of Nuclear Material Safety and Safeguards Recap of Action Items - Day 1 89

Closing Remarks - Day 1 Shana Helton, Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards Janet Schlueter, Senior Director Fuel and Radiation Safety Nuclear Energy Institute 90

Jonathan Rowley, Project Manager Division of Fuel Management Office of Nuclear Material Safety and Safeguards Email: Jonathan.Rowley@nrc.gov Phone: 301-415-4053 Fuel Facility Stakeholders Meeting October 21, 2021 Public Meeting With Nuclear Energy Institute and Members from the Nuclear Fuel Facility Industry 91

Meeting Category and Public Participation This is an Observation Meeting. This is a meeting in which attendees will have an opportunity to observe the NRC performing its regulatory function or discussing regulatory issues. Attendees will have an opportunity to ask questions of the NRC staff or make comments about the issues discussed following the business portion of the meeting; however, the NRC is not actively soliciting comments towards regulatory decisions at this meeting.

92

Agenda - October 21, 2021 Topic Time Presenter Introduction (Purpose/Rules) 10:00 AM Jonathan Rowley, Project Manager, DFM Opening Remarks 10:05 AM Shana Helton, Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission Janet Schlueter Nuclear Energy Institute (NEI)

Status of High Assay Low Enriched Uranium (HALEU)

Activities 10:10 AM Jason Piotter, Project Manager, DFM Status of draft NUREG-2159 Materials Control and Accountability 10:25 AM Tom Pham, Senior Safeguards Technical Analyst, DFM Public Q & A 11:10 AM Recap of Action Items from the Meeting 11:20 AM Jonathan Rowley, Project Manager, DFM Closing Remarks and Adjourn 11:30 AM Shana Helton, Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission Janet Schlueter Nuclear Energy Institute (NEI) 93

Opening Remarks Shana Helton, Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards Janet Schlueter, Senior Director Fuel and Radiation Safety Nuclear Energy Institute 94

Status of High Assay Low Enriched Uranium (HALEU)

Activities Jason Piotter, Project Manager Division of Fuel Management Office of Nuclear Material Safety and Safeguards 10/19/2021 95

Readiness Activities -

Fuel Cycle Facilities Regulations (10 CFR Part 70) are adequate for the review of fuel enrichment and fabrication for technologies being developed at higher enrichments.

We continue to assess our regulatory framework to identify any challenges and/or data needs.

We are conducting technical evaluations to assess necessary updates for the guidance to account for advanced reactor designs

- Updated NRC guidance for material control and accounting for Category II fuel cycle facilities.

- Physical Security requirements for Category II facilities Q&As 10/19/2021 96

How are we preparing?

• Meetings between advanced reactor vendors will help staff gain knowledge on specific designs and technologies.

• Training sessions will provide staff with insights into significant safety features of specific designs and technologies.

• Technical reports addressing potential challenges will help staff risk inform their reviews.

10/19/2021 97

Pre-Application Engagements

• We encourage pre-application engagements to support an efficient review of new applications and amendments.

o NMSS/DFM Letters to Advanced Reactors Stakeholders to encourage potential applicants to engage in early communication and interactions.

• Pre-application engagements provide benefits for NRC staff and applicants.

10/19/2021 98

Conclusions NMSS/DFM is proactively identifying potential technical challenges and information needs associated with the safe use of advanced reactor fuels in the areas of enrichment, fabrication, and transport.

NRC expects some of the efforts related to accident tolerant fuel to benefit the licensing and certification of advanced reactor fuels.

Applicants are encouraged to engage early to ensure a common understanding of the regulatory issues associated with new advanced reactor fuel designs.

We have experience with advanced technologies with regards to fuel cycle and transportation licensing, and we have the regulatory infrastructure in place. We continue to gather information to ensure our readiness.

10/19/2021 99

10/19/2021 100 Jason Piotter U. S. Nuclear Regulatory Commission Office of Nuclear Material Safety and Safeguards Division of Fuel Management Jason.Piotter@nrc.gov 301-415-7739

Readiness Activities -

Transportation Issues We have experience in the approval of transportation packages for UF6, TRISO, and metallic fuels.

We are completing technical evaluations on transport of advanced reactor fuel designs to identify potential information needs and determine whether additional updates to safety review guidance may be warranted.

Review of Operating Experience for Transportation of Fresh (Unirradiated)

Advanced Reactor Fuel Types Potential Challenges with Transportation of Fresh (Unirradiated) Advanced Reactor Fuel Types Transportation Experience and Potential Challenges with Transportation of Spent (Irradiated) Advanced Reactor Fuel Types 10/19/2021 101

Guidance for Material Control and Accounting:

NUREG-2159, Revision 1 Acceptable Standard Format and Content for the Fundamental Nuclear Material Control Plan Required for Special Nuclear Material of Moderate Strategic Significance Tom Pham, Sr. Safeguards Technical Analyst Material Control and Accounting Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards 10/19/2021 102

NUREG-2159, Revision 1 Draft for Comment Draft guidance for implementation of MC&A requirements at facilities that possess Category II quantities under 10 CFR Part 74, Subpart D (ADAMS ML21263A119)

Completion of NUREG series for fuel cycle facilities Similar format and content to existing guidance for 10 CFR Part 74, Subpart C (NUREG-1065, Revision 2)

Federal Register Notice (86 FR 52926) was issued on September 23 Provide comments on www.regulations.gov (Docket ID NRC-2021-0170) 60-day comment period will end on November 22 103 2

Differences in Graded Approach: NUREG-2159 (Category II) versus NUREG-1065 (Category III)

• The differences in guidance between NUREG-2159 and NUREG-1065 reflect the differences in the regulations between Subparts D and C

• The requirements in the guidance NUREGs directly track the regulations.

104 3

Category II - Category III Comparison General Performance Objectives & System Capabilities Category II Category III

General Performance Objective:

o Rapid determination of an actual loss of a significant quantity of SNM and a significant quantity is defined in 74.41(a)(3) o Text on pages 4-5 of Chapter 2

System Capabilities:

o Incorporating checks and balances to detect falsification of data and records by single individual or collusion between individuals in 74.41(c) o Text on page 6 of Chapter 2 No definition of a significant quantity in 74.31(a)

No requirement of checks and balances in 74.31 (c) 105 4

Category II - Category III Comparison (Continued)

MC&A Program Elements Category II Category III High level of safeguards awareness training in 74.43(b)(4):

o Text in page 9 of Subchapter 3.4, Training and qualification requirements Item Control limits in 74.43(b)(5) and (b)(6):

o 200 grams or more of Pu/U-233, or 300 grams or more of U-235, exempted up to a formula kilogram of strategic SNM or a total of 17 kilograms of U-235 of moderate strategic SNM Shipper-Receiver Differences limits in 74.43(b)(7):

o 200 gram of Pu/U-233, or 300 grams of U-235 and 2 standard deviations No high level of safeguards awareness training in 74.31(c)(1)

Item Control limits in 74.31(c)(6):

o 500 grams of U-235, exempted up to 50 kilograms of U-235 o

no Pu/U-233

• Shipper-Receiver Differences limits in 74.31(c)(7):

o 500 grams of U-235 and 2 standard deviations o

no Pu/U-233 106 5

Category II - Category III Comparison (Continued)

MC&A Program Elements Category II Category III Internal Control Areas are addressed in 74.43(c)(2),

74.43(c)(5)(v), 74.45(b)(1), and 74.45(b)(1)(ii) o Subchapter 3.6, Material control boundaries, similar approach to Material Balance Area (MBA) and Item Control Area (ICA), starting on page 10 Required tamper-safing procedures if tamper-safe seals are used in 74.43(c)(3) o Chapter 11, Tamper-safing, starting on page 67 Independent assessment not to exceed 18 months in 74.43(b)(8)

• No internal control areas, no MBA, no ICA mentioned in Subpart C

• Tamper-safing program is voluntary/optional in Subpart C

• Independent assessment not to exceed 24 months in 74.31(c)(8) 107 6

Category II - Category III Comparison (Continued)

MC&A Program Elements Category II Category III Physical Inventory program in 74.43(c)(7):

o Inventory Difference (ID) limits are based on SEID calculations and SEID limits o

Inventory frequency of 9 months o

Chapter 7, Physical Inventories, starting on page 41 SEID and ID limits in 74.43(c)(8):

o SEID exceeding 0.125% of Active Inventory o

ID exceeding both 3 SEID and 200 grams of Pu/U-233, or 300 grams or U-235, or 9000 grams of LEU o

Subchapter 7.6 on inventory reconciliation, ID limits, and response actions, starting on page 46 Physical Inventory program in 74.31(c)(5):

o ID limits based on U-235 quantity established by NRC on a site-specific and guidance on Detection Quantity (DQ) and Detection Threshold (DT) in NUREG o

Inventory frequency of 12 months

• SEID limits in 74.31(c)(4):

o Less than the greater of 9,000 grams of U-235 or 0.25% of Active Inventory 108 7

Category II - Category III Comparison (Continued)

MC&A Program Elements Category II Category III Enhanced chapter on Statistics:

o Chapter 6, Statistics, starting on page 31 Measurements and Measurement Control in 74.45:

o Exceptions for sealed sources, heterogenous scrap, samples less than 10 grams of U-235, U-233, or Pu o

Subchapter 4.5 on scrap control starting on page 16 o

Subchapter 5.5 on sampling (sampling tests, sampling errors) starting on page 26 Not Applicable Not Applicable in Measurements 74.31(c)(2) and Measurement Control 74.31(c)(3) 109 8

NUREG-2159, Revision 1 Draft for Comment QUESTIONS/DISCUSSION Provide comments on www.regulations.gov (Docket ID NRC-2021-0170) 60-day comment period will end on November 22 110 9

Jonathan Rowley, Project Manager Division of Fuel Management Office of Nuclear Material Safety and Safeguards Recap of Action Items - Days 1 and 2 111

Closing Remarks Shana Helton, Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards Janet Schlueter, Senior Director Fuel and Radiation Safety Nuclear Energy Institute 112