ML22220A272
| ML22220A272 | |
| Person / Time | |
|---|---|
| Site: | Monticello |
| Issue date: | 08/08/2022 |
| From: | Domingos C Northern States Power Company, Minnesota, Xcel Energy |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML22220A271 | List: |
| References | |
| EPID L-2021-LLA-0231, L-MT--22-029 | |
| Download: ML22220A272 (11) | |
Text
7+($77$&+0(17727+,6/(77(5&217$,166(&85,7<5(/$7(',1)250$7,21
- ,7+2/')52038%/,&',6&/2685(,1$&&25'$1&(:,7+&)5
:HVW&RXQW\\5RDG
0RQWLFHOOR01
$XJXVW
/07
&)5
$771'RFXPHQW&RQWURO'HVN
861XFOHDU5HJXODWRU\\&RPPLVVLRQ
- DVKLQJWRQ'&
0RQWLFHOOR1XFOHDU*HQHUDWLQJ3ODQW
'RFNHW1R
5HQHZHG)DFLOLW\\2SHUDWLQJ/LFHQVH
1R'35
5HVSRQVHWRD5HTXHVWIRU$GGLWLRQDO,QIRUPDWLRQ5HJDUGLQJWKH0RQWLFHOOR)XHO2LO6WRUDJH
7DQN,QVSHFWLRQ(3,'///$
5HIHUHQFHV
1630OHWWHUWR15&³/LFHQVH$PHQGPHQW5HTXHVW5HYLVH01*37HFKQLFDO 6SHFLILFDWLRQVWR6XSSRUWD7HQ<HDU,QVSHFWLRQRIWKH'LHVHO*HQHUDWRU)XHO2LO 6WRUDJH7DQN'/07GDWHG'HFHPEHU$'$06$FFHVVLRQ1R
0/$
15&HPDLOWR1630³'UDIW5$,5(0RQWLFHOOR)XHO2LO6WRUDJH7DQN,QVSHFWLRQ
(3,'///$'GDWHG-XQH$'$06$FFHVVLRQ1R
0/$
1RUWKHUQ6WDWHV3RZHU&RPSDQ\\D0LQQHVRWDFRUSRUDWLRQGRLQJEXVLQHVVDV;FHO(QHUJ\\
KHUHDIWHU³1630'VXEPLWWHGDOLFHQVHDPHQGPHQWUHTXHVW/$5RQ'HFHPEHU
5HIHUHQFHIRUWKH0RQWLFHOOR1XFOHDU*HQHUDWLQJ3ODQW01*37KHSURSRVHG/$5
UHTXHVWHGDQDPHQGPHQWWRWKH7HFKQLFDO6SHFLILFDWLRQV76IRU01*36SHFLILFDWLRQ
³'LHVHO)XHO2LO/XEH2LODQG6WDUWLQJ$LU'DQG6SHFLILFDWLRQ³$&6RXUFHV+/-6KXWGRZQ'
2QHWLPHRQO\\76FKDQJHVZHUHSURSRVHGWRDOORZWKHFRPPRQ)XHO2LO6WRUDJH7DQN)267
WREHRXWRIVHUYLFHIRUXSWRGD\\VIRUSHUIRUPDQFHRI/LFHQVH5HQHZDOUHTXLUHGWHQ\\HDU
LQVSHFWLRQVRIWKHWDQN$QDOWHUQDWHIXHORLOVWRUDJHV\\VWHPZLOOEHLQVWDOOHGDQGXWLOL]HGGXULQJ
WKHWDQNLQVSHFWLRQWRVXSSO\\WKHUHTXLUHG(PHUJHQF\\'LHVHO*HQHUDWRU('*'D\\7DQN
2Q-XQHWKH861XFOHDU5HJXODWRU\\&RPPLVVLRQ15&UHTXHVWHGDGGLWLRQDO
LQIRUPDWLRQ5$,5HIHUHQFH7KH1630UHVSRQVHWRWKLV5$,LVSURYLGHGLQWKHIROORZLQJ
HQFORVXUH
Document Control Desk Page2 The information provided in this letter does not alter the evaluations performed for Reference 1 in accordance with 10 CFR 50.92, "Issuance of amendment 0
In accordance with 10 CFR 50.91, "Notice for public comment; State consultation," NSPM is providing to the designated Minnesota state official a copy of this response without the attachment to the enclosure which contains security related information withheld in accordance with 10 CFR 2.390.
Should you have any questions or if additional information is needed, please contact Mr. Rrchard Loeffler at (612) 342-8981 or Rick.A.Loeffler@xcelenergy.com.
Summary of Commitments This letter makes no new commitments and no revisions to existing commitments.
I declare, under penalty of perjury, that the foregoing is true and correct. Executed on August 8, 2022.
0 Christop er P, Domingos Site Vice President, Monticello and Prairie Island Nuclear Generating Plants Northern States Power Company-Minnesota Enclosure cc:
Administrator, Region Ill, US NRC Project Manager, Monticello, US NRC Resident Inspector, Monticello, US NRC State of Minnesota
(1&/2685(
0217,&(//218&/($5*(1(5$7,1*3/$17
5(63216(727+(5(48(67)25$,7,21$/,1)250$7,21
5(*$5',1*7+(0217,&(//2)8(/2,/6725$*(7$1.,163(&7,21
SDJHVIROORZ
(QFORVXUH
/07
3DJHRI
5(63216(727+(5(48(67)25$,7,21$/,1)250$7,215$,
5(*$5',1*7+(0217,&(//2)8(/2,/6725$*(7$1.,163(&7,21
5$,
5HJXODWRU\\%DVLV
&)5IVWDWHVWKDW³7KHOLFHQVHHVKDOOGRFXPHQWDQGPDLQWDLQWKHSURFHVVXVHGWR
GHYHORSDQGLGHQWLI\\WDUJHWVHWVWRLQFOXGHWKHVLWHVSHFLILFDQDO\\VHVDQGPHWKRGRORJLHVXVHG
WRGHWHUPLQHDQGJURXSWKHWDUJHWVHWHTXLSPHQWRUHOHPHQWV'
&)5H9LWDODUHDVVWDWHVWKDW
L 9LWDOHTXLSPHQWPXVWEHORFDWHGRQO\\ZLWKLQYLWDODUHDVZKLFKPXVWEHORFDWHG ZLWKLQDSURWHFWHGDUHDVRWKDWDFFHVVWRYLWDOHTXLSPHQWUHTXLUHVSDVVDJH WKURXJKDWOHDVWWZRSK\\VLFDOEDUULHUVH[FHSWDVRWKHUZLVHDSSURYHGE\\WKH
&RPPLVVLRQDQGLGHQWLILHGLQWKHVHFXULW\\SODQV
LL 7KHOLFHQVHHVKDOOSURWHFWDOOYLWDODUHDDFFHVVSRUWDOVDQGYLWDODUHD HPHUJHQF\\H[LWVZLWKLQWUXVLRQGHWHFWLRQHTXLSPHQWDQGORFNLQJGHYLFHVWKDW DOORZUDSLGHJUHVVGXULQJDQHPHUJHQF\\DQGVDWLVI\\WKHYLWDODUHDHQWU\\
FRQWUROUHTXLUHPHQWVRIWKLVVHFWLRQ
LLL 8QRFFXSLHGYLWDODUHDVPXVWEHORFNHGDQGDODUPHG
LY 0RUHWKDQRQHYLWDODUHDPD\\EHORFDWHGZLWKLQDVLQJOHSURWHFWHGDUHD
,VVXH
2QSDJHRIRIWKHOLFHQVHDPHQGPHQWUHTXHVWGDWHG'HFHPEHU$JHQF\\ZLGH
'RFXPHQWV$FFHVVDQG0DQDJHPHQW6\\VWHP$'$06$FFHVVLRQ1R0/$WKH
ILUVWSDUDJUDSKPHQWLRQVWKDWWKHKRVHVIURPWKHGRXEOHZDOOHGWHPSRUDU\\IXHORLOVWRUDJH
WDQNVUHIHUUHGWRDV³)5$&'SHQHWUDWLQJWKHSURWHFWHGDUHD3$IHQFLQJZLOOKDYHVHFXULW\\
FRPSHQVDWRU\\PHDVXUHVLPSOHPHQWHGDVGHWHUPLQHGE\\WKH6HFXULW\\3ODQ7KHILUVW
SDUDJUDSKDOVRPHQWLRQVWKDWWKH)5$&V\\VWHPZLOOEHORFDWHGRXWVLGHWKH3$DQGWKHIXHO
WUDQVIHUV\\VWHPZLOOEHORFDWHGLQVLGHWKH3$
5$,5HTXHVW
- KDWHIIHFWLIDQ\\ZLOOWKHUHPRYDORIWKHIXHORLOVWRUDJHWDQNDQGWKHLQVWDOODWLRQRIWHPSRUDU\\
HTXLSPHQWKDYHRQWDUJHWVHWVYLWDODUHDVDQGHTXLSPHQWDQGLPSOHPHQWDWLRQRI
WKHVLWH¶VSURWHFWLYHVWUDWHJ\\"
(QFORVXUH
/07
3DJHRI
5$,5HVSRQVH
x 7KHUHPRYDORIWKHIXHORLOVWRUDJHWDQNDQGWKHLQVWDOODWLRQRIWHPSRUDU\\HTXLSPHQW GRHVQRWFUHDWHDQ\\QHZWDUJHWVHWVRUFKDQJHDQ\\WDUJHWVHWVGHVFULEHGZLWKLQWKH 7DUJHW6HW$QDO\\VLV
x 7KHUHPRYDORIWKHIXHORLOVWRUDJHWDQNDQGWKHLQVWDOODWLRQRIWHPSRUDU\\HTXLSPHQW GRHVQRWFUHDWHDQ\\QHZYLWDODUHDVRUFKDQJHDQ\\YLWDODUHDVWKDWDUHGHVFULEHGZLWKLQ WKH6HFXULW\\3ODQ
x 7KHUHPRYDORIWKHIXHORLOVWRUDJHWDQNDQGWKHLQVWDOODWLRQRIWHPSRUDU\\HTXLSPHQW GRHVQRWDIIHFWLPSOHPHQWDWLRQRIWKHVLWH¶VSURWHFWLYHVWUDWHJ\\&RPSHQVDWRU\\
PHDVXUHVZLOOEHLPSOHPHQWHGLQDFFRUGDQFHZLWKWKH6HFXULW\\3ODQGXULQJWKH DSSOLFDEOHSKDVHVRIWKHWHPSRUDU\\FRQILJXUDWLRQFKDQJHVHHUHVSRQVHWR5$,
5$,
5HJXODWRU\\%DVLV
&)5EVWDWHVWKDW³7KHOLFHQVHHVKDOOHVWDEOLVKPDLQWDLQDQGLPSOHPHQWDQ
LQVLGHUPLWLJDWLRQSURJUDPDQGVKDOOGHVFULEHWKHSURJUDPLQWKH3K\\VLFDO6HFXULW\\3ODQ'
L 7KHLQVLGHUPLWLJDWLRQSURJUDPPXVWPRQLWRUWKHLQLWLDODQGFRQWLQXLQJ WUXVWZRUWKLQHVVDQGUHOLDELOLW\\RILQGLYLGXDOVJUDQWHGRUUHWDLQLQJXQHVFRUWHG DFFHVVDXWKRUL]DWLRQWRDSURWHFWHGRUYLWDODUHDDQGLPSOHPHQWGHIHQVH
LQGHSWKPHWKRGRORJLHVWRPLQLPL]HWKHSRWHQWLDOIRUDQLQVLGHUWRDGYHUVHO\\
DIIHFWHLWKHUGLUHFWO\\RULQGLUHFWO\\WKHOLFHQVHH¶VFDSDELOLW\\WRSUHYHQW VLJQLILFDQWFRUHGDPDJHDQGVSHQWIXHOVDERWDJH
LL 7KHLQVLGHUPLWLJDWLRQSURJUDPPXVWFRQWDLQHOHPHQWVIURP
$ 7KHDFFHVVDXWKRUL]DWLRQSURJUDPGHVFULEHGLQ
% 7KHILWQHVVIRUGXW\\SURJUDPGHVFULEHGLQSDUWRIWKLVFKDSWHU
& 7KHF\\EHUVHFXULW\\SURJUDPGHVFULEHGLQDQG
' 7KHSK\\VLFDOSURWHFWLRQSURJUDPGHVFULEHGLQWKLVVHFWLRQ
&)5HL%VWDWHVWKDW³0RQLWRUHGZLWKLQWUXVLRQGHWHFWLRQHTXLSPHQWGHVLJQHGWR
VDWLVI\\WKHUHTXLUHPHQWVRILDQGEHFDSDEOHRIGHWHFWLQJERWKDWWHPSWHGDQGDFWXDO
SHQHWUDWLRQRIWKHSURWHFWHGDUHDSHULPHWHUEDUULHUEHIRUHFRPSOHWHGSHQHWUDWLRQRIWKH
SURWHFWHGDUHDSHULPHWHUEDUULHU'
(QFORVXUH
/07
3DJHRI
&)5J³$FFHVVFRQWUROV'VWDWHVWKDW³&RQVLVWHQWZLWKWKHIXQFWLRQRIHDFKEDUULHU
RUEDUULHUV\\VWHPWKHOLFHQVHHVKDOOFRQWUROSHUVRQQHOYHKLFOHDQGPDWHULDODFFHVVDV
DSSOLFDEOHDWHDFKDFFHVVFRQWUROSRLQWLQDFFRUGDQFHZLWKWKHSK\\VLFDOSURWHFWLRQSURJUDP
GHVLJQUHTXLUHPHQWVRI&)5E'
&)5K³6HDUFKSURJUDPV'VWDWHVLQSDUWWKDWWKHOLFHQVHHLVUHTXLUHGWRGHYHORS
DQGLPSOHPHQWDVHDUFKSURJUDP³WRGHWHFWGHWHUDQGSUHYHQWWKHLQWURGXFWLRQRIILUHDUPV
H[SORVLYHVLQFHQGLDU\\GHYLFHVRURWKHULWHPVZKLFKFRXOGEHXVHGWRFRPPLWUDGLRORJLFDO
VDERWDJH'
&)5L³/DQGYHKLFOHV'VWDWHVWKDW
/LFHQVHHVVKDOO$'HVLJQFRQVWUXFWLQVWDOODQGPDLQWDLQDYHKLFOHEDUULHU
V\\VWHPWRLQFOXGHSDVVLYHDQGDFWLYHEDUULHUVDWDVWDQGRIIGLVWDQFHDGHTXDWH
WRSURWHFWSHUVRQQHOHTXLSPHQWDQGV\\VWHPVQHFHVVDU\\WRSUHYHQWVLJQLILFDQW
FRUHGDPDJHDQGVSHQWIXHOVDERWDJHDJDLQVWWKHHIIHFWVRIWKHGHVLJQEDVLV
WKUHDWRIUDGLRORJLFDOVDERWDJHODQGYHKLFOHERPEDVVDXOW
&)5R³&RPSHQVDWRU\\PHDVXUHV'VWDWHVWKDW
7KHOLFHQVHHVKDOOLGHQWLI\\FULWHULDDQGPHDVXUHVWRFRPSHQVDWHIRU GHJUDGHGRULQRSHUDEOHHTXLSPHQWV\\VWHPVDQGFRPSRQHQWVWRPHHWWKH UHTXLUHPHQWVRIWKLVVHFWLRQ
&RPSHQVDWRU\\PHDVXUHVPXVWSURYLGHDOHYHORISURWHFWLRQWKDWLV HTXLYDOHQWWRWKHSURWHFWLRQWKDWZDVSURYLGHGE\\WKHGHJUDGHGRU LQRSHUDEOHHTXLSPHQWV\\VWHPRUFRPSRQHQWV
$SSHQGL[&WR3DUW6HFWLRQ,,%FYUHTXLUHVOLFHQVHHVWRGHYHORSLPSOHPHQWDQG
PDLQWDLQDZULWWHQSURWHFWLYHVWUDWHJ\\WREHGRFXPHQWHGLQSURFHGXUHVWKDWGHVFULEHVLQGHWDLO
WKHSK\\VLFDOSURWHFWLRQPHDVXUHVVHFXULW\\V\\VWHPVDQGGHSOR\\PHQWRIWKHDUPHGUHVSRQVH
WHDPUHODWLYHWRVLWHVSHFLILFFRQGLWLRQVWRLQFOXGHEXWQRWEHOLPLWHGWRIDFLOLW\\OD\\RXWDQGWKH
ORFDWLRQRIWDUJHWVHWHTXLSPHQWDQGHOHPHQWV7KHSURWHFWLYHVWUDWHJ\\VKRXOGVXSSRUWWKH
JHQHUDOJRDOVRSHUDWLRQDOFRQFHSWVDQGSHUIRUPDQFHREMHFWLYHVLGHQWLILHGLQWKHOLFHQVHH¶V
VDIHJXDUGVFRQWLQJHQF\\SODQ
,VVXH
7KHOLFHQVHDPHQGPHQWUHTXHVWGRHVQRWDSSHDUWRDGGUHVVKRZ0RQWLFHOOR1XFOHDU
- HQHUDWLQJ3ODQW0RQWLFHOORZLOOFRQWLQXHWREHSURWHFWHGDJDLQVWWKH'HVLJQ%DVLV7KUHDW
'%7RUSURYLGHDQ\\GHWDLOHGLQIRUPDWLRQUHJDUGLQJWKHSK\\VLFDOVHFXULW\\FRPSHQVDWRU\\
PHDVXUHVWKDWZLOOEHWDNHQWRHQVXUHWKHSODQWUHPDLQVDGHTXDWHO\\SURWHFWHGIRUWKHGXUDWLRQ
RIWKHWHPSRUDU\\FRQILJXUDWLRQFKDQJHWRWKHSODQW2QSDJHRI³$OWHUQDWH)XHO2LO
6XSSO\\6\\VWHP'WKHILUVWSDUDJUDSKPHQWLRQVWKDWWKHKRVHVIURPWKH)5$&WDQNVSHQHWUDWLQJ
WKHSURWHFWHGDUHD3$IHQFLQJZLOOKDYHVHFXULW\\FRPSHQVDWRU\\PHDVXUHVLPSOHPHQWHGDV
GHWHUPLQHGE\\WKH6HFXULW\\3ODQ7KHILUVWSDUDJUDSKDOVRPHQWLRQVWKDWWKH)5$&V\\VWHPZLOO
EHORFDWHGRXWVLGHWKH3$DQGWKHIXHOWUDQVIHUV\\VWHPZLOOEHORFDWHGLQVLGHWKH3$7KH
VXEPLWWDOGRHVQRWSURYLGHDGHVFULSWLRQRIZKHUHRXWVLGHWKH3$WKH)5$&V\\VWHPZLOOEH
ORFDWHGHJZLOOLWEHLQWKHRZQHUFRQWUROOHGDUHDQHDUWKHODUJHRUVPDOOYHKLFOHEDUULHU
(QFORVXUH
/07
3DJHRI
V\\VWHP",WDOVRGRHVQRWGHVFULEHZKHUHWKHIXHOWUDQVIHUV\\VWHPZLOOEHORFDWHGZLWKLQWKH
3$ZLOOWKHORFDWLRQLQWHUIHUHZLWKLQWHUORFNLQJRYHUODSSLQJILHOGVRIILUH"3DJHRIWRS
RISDJHVWDWHVLQSDUW³<<VHFXULW\\PHDVXUHVZLOOEHLPSOHPHQWHGGXULQJWKHWLPHWKHKRVHLV
UXQWKURXJKWKHGRRURIWKH'LHVHO*HQHUDWRU%XLOGLQJ'3DJHRI³$)266:HDWKHU
2SHUDWLRQDO&RQVLGHUDWLRQV'VHFRQGSDUDJUDSKVWDWHVLQSDUW³<<WKHWDQNFDQEHTXLFNO\\
UHILOOHGWKHKRVHVUHPRYHGDQGWKH'LHVHO*HQHUDWRU%XLOGLQJGRRUFORVHG'
5$,5HTXHVW
'HVFULEHKRZ0RQWLFHOORZLOOFRQWLQXHWREHSURWHFWHGDJDLQVWWKH'%7ZLWKWKH VHFXULW\\FRPSHQVDWRU\\PHDVXUHVIRUWKHGXUDWLRQRIWKHWHPSRUDU\\FRQILJXUDWLRQ FKDQJHWRWKHSODQW
5$,,WHP5HVSRQVH
&RPSHQVDWRU\\PHDVXUHVZLOOEHLPSOHPHQWHGGXULQJVHYHUDOGLIIHUHQWSKDVHVRIWKH WHPSRUDU\\FRQILJXUDWLRQFKDQJH
)LUVWFRPSHQVDWRU\\PHDVXUHVZLOOEHLPSOHPHQWHGGXULQJWKHWLPHWKDWH[FDYDWLRQLV FRQGXFWHGWRHQWUHQFKLQVWDOOWKHIXHOWUDQVIHUKRVHVXQGHUWKH3URWHFWHG$UHD3$
ERXQGDU\\7KHVHVSHFLILFFRPSHQVDWRU\\PHDVXUHVZLOOQRORQJHUEHQHHGHGRQFHWKH IXHOWUDQVIHUKRVHVDUHHVWDEOLVKHGXQGHUWKH3$ERXQGDU\\VLQFHWKHVL]HRIWKHVH KRVHVGRQRWUHVXOWLQDQXQDWWHQGHGRSHQLQJ8$27KHVHFRPSHQVDWRU\\PHDVXUHV ZLOODOVREHHVWDEOLVKHGGXULQJUHPRYDORIWKHIXHOWUDQVIHUKRVHV7KHFRPSHQVDWRU\\
PHDVXUHVWKDWZLOOEHLPSOHPHQWHGGXULQJWKHVHSKDVHVDUHLQDFFRUGDQFHZLWK 6HFWLRQRIWKH6HFXULW\\3ODQ
6HFRQGFRPSHQVDWRU\\PHDVXUHVZLOOEHLPSOHPHQWHGZKHQHYHUWKH'LHVHO*HQHUDWRU
%XLOGLQJGRRULVRSHQHGWRWUDQVIHUIXHORLOLQWRWKHUHTXLUHG(PHUJHQF\\'LHVHO
- HQHUDWRU('*GD\\WDQN7KHFRPSHQVDWRU\\PHDVXUHVWKDWZLOOEHLPSOHPHQWHG GXULQJWKLVSKDVHDUHLQDFFRUGDQFHZLWK6HFWLRQRIWKH6HFXULW\\3ODQ
'HVFULEHKRZWKHKRVHVZLOOSHQHWUDWHWKH3$IHQFHOLQHHJWKURXJKRSHQJDWHV
SHQHWUDWLRQVWKURXJKWKHIHQFHOLQHIDEULFDQGGHVFULEHWKHVHFXULW\\FRPSHQVDWRU\\
PHDVXUHVWKDWZLOOEHSURYLGHGDQGLPSOHPHQWHGZLWKLQWKHVLWHSURFHGXUHV$OVR
GHVFULEHKRZWKHLQWUXVLRQGHWHFWLRQV\\VWHP,'6DQGDVVHVVPHQWV\\VWHPDWWKH3$
EDUULHUZLOOFRQWLQXHWRSURYLGHLWVLQWHQGHGIXQFWLRQVIRUWKHGXUDWLRQRIWKHWHPSRUDU\\
SODQWFRQILJXUDWLRQ
5$,,WHP5HVSRQVH 7KHIXHOWUDQVIHUKRVHVZLOOEHHQWUHQFKHGXQGHUQHDWKWKH3$ERXQGDU\\LHWKH3$
IHQFHOLQH$VGHVFULEHGLQWKHUHVSRQVHWR5$,,WHPFRPSHQVDWRU\\PHDVXUHV ZLOOEHLPSOHPHQWHGGXULQJWKHLQVWDOODWLRQDQGUHPRYDORIWKHIXHOWUDQVIHUKRVHV
2QFHWKHIXHOWUDQVIHUKRVHVDUHHVWDEOLVKHGWKHFRPSHQVDWRU\\PHDVXUHVDUHQR ORQJHUUHTXLUHGDVWKHKRVHGLPHQVLRQVGRQRWUHVXOWLQ8$2SDWKZD\\V7KH LQVWDOODWLRQRIWKHIXHOWUDQVIHUKRVHVZLOOQRWLPSDFWWKH,'6DQGDVVHVVPHQW FDSDELOLWLHVZKLFKZLOOEHYDOLGDWHGWKURXJKDSSURYHGWHVWLQJSURFHGXUHV
(QFORVXUH
/07
3DJHRI
'HVFULEHKRZFKDQJHVWRWKH,'6ZLOOEHLQVSHFWHGDQGWHVWHGGXULQJLPSOHPHQWDWLRQ RIDQ\\FKDQJHV&RQILUPZKHWKHUWKHWHVWLQJRI,'6ZLOOFRQIRUPWR 5HJXODWRU\\*XLGH³3HULPHWHU,QWUXVLRQ$ODUP6\\VWHPV'5HYLVLRQ
$JHQF\\ZLGH'RFXPHQWV$FFHVVDQG0DQDJHPHQW6\\VWHP$FFHVVLRQ1R
0/6HFWLRQ³5HFRPPHQGHG7HVWLQJ3URFHGXUHV'7HVWLQJ 2SWLRQ,RU,,
5$,,WHP5HVSRQVH 7KHUHZLOOEHQRFKDQJHVWRWKH,'61RDOWHUQDWLYHWHVWLQJLVQHHGHGRUUHTXLUHG
3URYLGHGHWDLOHGGHVFULSWLRQVRIZKHUHWKH)5$&DQGIXHORLOWUDQVIHUV\\VWHPVZLOOEH ORFDWHGDQGZKHWKHUWKHVHORFDWLRQVZLOOLQWHUIHUHZLWKWKHVLWHSURWHFWLYHVWUDWHJ\\
5$,,WHP5HVSRQVH 7KH)5$&WDQNVZLOOEHORFDWHGWRWKH:HVWRIWKHSODQWLQDSRVLWLRQEHWZHHQWKH VLWH¶VFUHGLWHG(DUO\\:DUQLQJ6\\VWHP(:6DQGWKH3$ERXQGDU\\,'67KLVORFDWLRQ GRHVQRWUHVXOWLQGHJUDGDWLRQRISURWHFWLYHVWUDWHJ\\HIIHFWLYHQHVVHJILHOGVRIILUH
6HH)LJXUHVDQGLQWKHDWWDFKPHQWWRWKLVHQFORVXUH
'HVFULEHWKHVHFXULW\\FRPSHQVDWRU\\PHDVXUHVIRUWKH'LHVHO*HQHUDWLQJ%XLOGLQJWKDW ZLOOEHLPSOHPHQWHGSHUVLWHSURFHGXUHVWRSURWHFWDJDLQVWXQDXWKRUL]HGDFFHVVDQG FRQWURO
5$,,WHP5HVSRQVH 7KHFRPSHQVDWRU\\PHDVXUHVWKDWZLOOEHLPSOHPHQWHGGXULQJWKLVSKDVHDUHLQ DFFRUGDQFHZLWK6HFWLRQRIWKH6HFXULW\\3ODQ
5$,
5HJXODWRU\\%DVLV
&)5³6DIHW\\VHFXULW\\LQWHUIDFHUHTXLUHPHQWVIRUQXFOHDUSRZHUUHDFWRUV'VWDWHVWKDW
D
(DFKRSHUDWLQJQXFOHDUSRZHUUHDFWRUOLFHQVHHZLWKDOLFHQVHLVVXHGXQGHU SDUWRURIWKLVFKDSWHUVKDOOFRPSO\\ZLWKWKHUHTXLUHPHQWVRIWKLV VHFWLRQ
E
7KHOLFHQVHHVKDOODVVHVVDQGPDQDJHWKHSRWHQWLDOIRUDGYHUVHHIIHFWVRQ VDIHW\\DQGVHFXULW\\LQFOXGLQJWKHVLWHHPHUJHQF\\SODQEHIRUHLPSOHPHQWLQJ FKDQJHVWRSODQWFRQILJXUDWLRQVIDFLOLW\\FRQGLWLRQVRUVHFXULW\\
F
7KHVFRSHRIFKDQJHVWREHDVVHVVHGDQGPDQDJHGPXVWLQFOXGHSODQQHG DQGHPHUJHQWDFWLYLWLHVVXFKDVEXWQRWOLPLWHGWRSK\\VLFDOPRGLILFDWLRQV
SURFHGXUDOFKDQJHVFKDQJHVWRRSHUDWRUDFWLRQVRUVHFXULW\\DVVLJQPHQWV
(QFORVXUH
/07
3DJHRI
PDLQWHQDQFHDFWLYLWLHVV\\VWHPUHFRQILJXUDWLRQDFFHVVPRGLILFDWLRQRU
UHVWULFWLRQVDQGFKDQJHVWRWKHVHFXULW\\SODQDQGLWVLPSOHPHQWDWLRQ
G
- KHUHSRWHQWLDOFRQIOLFWVDUHLGHQWLILHGWKHOLFHQVHHVKDOOFRPPXQLFDWH WKHPWRDSSURSULDWHOLFHQVHHSHUVRQQHODQGWDNHFRPSHQVDWRU\\DQGRU PLWLJDWLYHDFWLRQVWRPDLQWDLQVDIHW\\DQGVHFXULW\\XQGHUDSSOLFDEOH
&RPPLVVLRQUHJXODWLRQVUHTXLUHPHQWVDQGOLFHQVHFRQGLWLRQV
,VVXH
7KHVXEPLWWDOGLGQRWDSSHDUWRDGGUHVVVDIHW\\VHFXULW\\LQWHUIDFH
5HTXHVW
'HVFULEHKRZVDIHW\\VHFXULW\\LQWHUIDFHLVEHLQJDGGUHVVHGIRUWKLVWHPSRUDU\\SODQWFKDQJHLQ
DFFRUGDQFHZLWK&)5
5$,5HVSRQVH
7KHVDIHW\\VHFXULW\\LQWHUIDFHLVDGGUHVVHGE\\WKHQXFOHDULQGXVWU\\6WDQGDUG'HVLJQ3URFHVV
'HYHORSPHQWDQGLPSOHPHQWDWLRQRIWKH$OWHUQDWH)XHO2LO6XSSO\\6\\VWHP$)266WHPSRUDU\\
PRGLILFDWLRQLVFRQWUROOHGE\\WKLVSURFHVV'XULQJGHYHORSPHQWD'HVLJQ$WWULEXWH5HYLHZZDV
SHUIRUPHGWRGHWHUPLQHSRWHQWLDOO\\LPSDFWHGHQJLQHHULQJGLVFLSOLQHVSURJUDPVDQG
VWDNHKROGHUVIURPRWKHUGHSDUWPHQWVDUHDVLQFOXGLQJ6HFXULW\\DQG(PHUJHQF\\
3UHSDUHGQHVV7KH'HVLJQ$WWULEXWH5HYLHZUHVXOWHGLQDQLPSDFWUHYLHZEHLQJSHUIRUPHGE\\
6HFXULW\\6HFXULW\\HYDOXDWHGWKHSK\\VLFDOFKDQJHVWRWKHSODQWIRUWKHLUHIIHFWVRQWKH6HFXULW\\
3ODQ6HFXULW\\UHODWHGLQSXWZDVSURYLGHGWRVXSSRUWWHPSRUDU\\PRGLILFDWLRQGHYHORSPHQWDV
ZHOODVWKHQHHGIRUFRPSHQVDWRU\\PHDVXUHVZKLFKDUHGLVFXVVHGLQWKHUHVSRQVHWR5$,
1RLPSDFWVWRWKH(PHUJHQF\\3ODQZHUHLGHQWLILHG
5$,
5HJXODWRU\\%DVLV
185(*³*XLGDQFHIRUWKH5HYLHZRI&KDQJHVWR+XPDQ$FWLRQV'SURYLGHVJXLGDQFHIRU
UHYLHZLQJFKDQJHVWRKXPDQDFWLRQVWKDWDUHFUHGLWHGIRUVDIHW\\185(*SURYLGHV
JXLGDQFHLQ6HFWLRQVDQGIRUYHULI\\LQJWKRVHGHWHUPLQLVWLFDVSHFWVRIGHVLJQKDYHEHHQ
DSSURSULDWHO\\FRQVLGHUHG185(*VD\\VWKDWGHWHUPLQLVWLFDVSHFWVLQFOXGHYHULI\\LQJWKDW
WKHFKDQJHPHHWVFXUUHQWUHJXODWLRQVDQGGRHVQRWFRPSURPLVHGHIHQVHLQGHSWK
,VVXH
7KHVXEPLWWDOVWDWHVWKDWSURFHGXUHVZLOOEHLQSODFHDQGWUDLQLQJZLOOEHSURYLGHGWRWKH
RSHUDWRUVDVGHWHUPLQHGE\\WKH6\\VWHPDWLF$SSURDFKWR7UDLQLQJ6$7SURFHVV,WLVQRWFOHDU
LQWKHVXEPLWWDOLIWKHUHDUHDQ\\RSHUDWRUDFWLRQVIRUWKLVQHZDOLJQPHQW
(QFORVXUH
/07
3DJHRI
5HTXHVW
3URYLGHDOLVWRIDQ\\UHYLVHGRSHUDWRUDFWLRQVWKDWZLOOEHUHTXLUHGWRWUDQVIHURLOIURPWKH
DOWHUQDWHIXHORLOVWRUDJHV\\VWHPDVZHOODVDQ\\WLPLQJDQDO\\VHVIRUWKRVHRSHUDWRUDFWLRQV
5HVSRQVH
7KHRSHUDWRUDFWLRQVQRUPDOO\\DVVRFLDWHGZLWKWKH'LHVHO)XHO2LO7UDQVIHU6\\VWHPFRQVLVWRI
0RQLWRULQJWKHOHYHOLQWKHFRPPRQ)XHO2LO6WRUDJH7DQN)267RU7
9HULI\\LQJWKDWFRQWLQXRXVIORZIURP)267WRWKH('*'D\\7DQNVLVPDLQWDLQHG+/-
WKHUHE\\DXWRPDWLFDOO\\PDLQWDLQLQJWKHUHTXLUHG('*'D\\7DQNVIXOO
5HFHLYLQJQHZIXHORLOIRUPDNHXSWRWKH)267DQG
$GGLQJPDNHXSIXHORLOWRWKH)267ZKHQQHFHVVDU\\
6LQFHWKH)267LVUHPRYHGIURPVHUYLFHIRUWKLVWHQ\\HDU/LFHQVH5HQHZDOUHTXLUHGLQVSHFWLRQ
RIWKHWDQNWKHIROORZLQJDQDORJRXVRSHUDWRUPRQLWRULQJDFWLRQVIRUWKHLQVWDOOHG$)266DQG
WKHUHTXLUHG('*'D\\7DQNZLOOEHGHVFULEHGLQSURFHGXUHVRUWHPSRUDU\\PRGLILFDWLRQ
GRFXPHQWVXWLOL]HGGXULQJWKH)267LQVSHFWLRQHYROXWLRQ1RWHWKDWWKHVHSURFHGXUHV
WHPSRUDU\\PRGLILFDWLRQGRFXPHQWVDUH&RPSHQVDWRU\\0HDVXUHVDVGHVFULEHGLQWKH
6HFWLRQDQG$WWDFKPHQWRIWKHOLFHQVHDPHQGPHQWUHTXHVW/$5
x 0RQLWRULQJIXHOOHYHOYROXPHLQWKH$)266VWRUDJHWDQNVFROORTXLDOO\\UHIHUUHGWRDV
³)5$&'WDQNVLQVWHDGRIWKH)2670RQLWRULQJWKH)267LVGRQHRQFHSHUVKLIWZKLOH DQ('*LVLQVWDQGE\\DQGDSSUR[LPDWHO\\KRXUO\\ZKLOHDQ('*LVLQVHUYLFH$VWKLVLV SDVVLYHPRQLWRULQJDQGLVHVVHQWLDOO\\WKHVDPHDFWLRQWKDWFXUUHQWO\\H[LVWVQRWLPLQJ DQDO\\VLVZDVSHUIRUPHG
x 0RQLWRULQJIXHOOHYHOLQWKHUHTXLUHG('*'D\\7DQNLQVWHDGRIYHULI\\LQJFRQWLQXRXVIORZ IURPWKH)2677KLVLVGRQHRQFHSHUVKLIWZKLOHDQ('*LVLQVWDQGE\\DQG DSSUR[LPDWHO\\KRXUO\\ZKLOHDQ('*LVLQVHUYLFH$VWKLVLVSDVVLYHPRQLWRULQJDQGLV HVVHQWLDOO\\WKHVDPHDFWLRQWKDWFXUUHQWO\\H[LVWVQRWLPLQJDQDO\\VLVZDVSHUIRUPHG
x 5HFHLYLQJQHZIXHORLOGLUHFWO\\WRWKH$)266VWRUDJHWDQNVUDWKHUWKDQUHFHLYLQJIXHORLO WRWKH'LHVHO2LO5HFHLYLQJ7DQN7DQGWKHQWUDQVIHUULQJLWWRWKH)267&RPELQLQJ WKHVHWZRH[LVWLQJDFWLYLWLHVLQWRDVLQJOHDFWLRQVLPSOLILHVWKHSURFHVVUHTXLULQJOHVVWLPH WKDQWKHSURFHVVFXUUHQWO\\HPSOR\\HGKHQFHQRWLPLQJDQDO\\VLVZDVSHUIRUPHG
x 7UDQVIHUULQJIXHORLOIURPWKH)5$&WDQNVWRPDLQWDLQWKHUHTXLUHG('*'D\\7DQN VXSSO\\PDQXDOO\\LQVWHDGRIWKHQRUPDOFRQWLQXRXVIORZIURPWKH)2677KLVZLOOEH DFFRPSOLVKHGE\\URXWLQJDGLVFKDUJHKRVHIURPDSRUWDEOHIXHORLOWUDQVIHUSXPSZKLFK WDNHVVXFWLRQRQWKH)5$&WDQNVWRWUDQVIHUIXHORLOWRWKHUHTXLUHG('*'D\\7DQN
R
$WLPLQJDQDO\\VLVLQYROYLQJDVLPXODWHGZDONWKURXJKRIWKHHYROXWLRQXVLQJWKH FXUUHQWSODQQHGWHPSRUDU\\PRGLILFDWLRQGRFXPHQWVIRUWKH$)266ZDV SHUIRUPHGZKLFKUHVXOWHGLQWKHIROORZLQJWLPHOLQH
,QSDUDOOHORQHRSHUDWRUUHSRUWVWRWKH$)266ZKHUHWKHSRUWDEOHIXHORLO WUDQVIHUSXPSLVORFDWHGZKLOHDPLQLPXPRIRQHRSHUDWRUDORQJZLWKD VHFXULW\\RIILFHUDQGDUDGLDWLRQSURWHFWLRQWHFKQLFLDQUHSRUWWRWKH('*
5RRPDFFHVVGRRU+/-DSSUR[LPDWHO\\PLQXWHVWRWDO
(QFORVXUH
/07
3DJHRI
7KH('*DFFHVVGRRULVRSHQHGDQGWKHSUHVWDJHGKRVHLVURXWHGWRWKH
('*'D\\7DQNGHVLJQDWHGILOOSRLQW+/-DSSUR[LPDWHO\\PLQXWHV
7KHSRUWDEOHIXHORLOWUDQVIHUSXPSLVVWDUWHGDQGILOOLQJFRPPHQFHV+/-
DSSUR[LPDWHO\\PLQXWHV
R 7KHUHIRUHDSSUR[LPDWHO\\PLQXWHVZLOOEHQHHGHGWRFRPPHQFHILOOLQJWKH UHTXLUHG('*'D\\7DQN
$GGLWLRQDOO\\DVGHVFULEHGLQWKH/$5RQFHFRPPHQFHGDFRPSOHWHUHILOOLQJRIDQ
HPSW\\('*GD\\WDQNJDOORQWDQNLVHVWLPDWHGWRWDNHDSSUR[LPDWHO\\PLQXWHV
7KHUHIRUHEDVHGRQWKHDERYHFRQVLGHUDWLRQVWKHWLPHGXUDWLRQWRUHILOOWKHUHTXLUHG
('*'D\\7DQNLVZHOOZLWKLQWKHPLQLPXPKRXUVXSSO\\RIIXHORLODYDLODEOHIRUWKH
('*