ML23004A179
| ML23004A179 | |
| Person / Time | |
|---|---|
| Issue date: | 01/03/2023 |
| From: | Virkar H NRC/OIG/AIGA |
| To: | Dan Dorman NRC/EDO |
| References | |
| OIG-16-A-16 | |
| Download: ML23004A179 (1) | |
Text
MEMORANDUM DATE: January 3, 2023 TO: Daniel H. Dorman Executive Director for Operations FROM: Hruta Virkar, CPA /RA/
Assistant Inspector General for Audits
SUBJECT:
STATUS OF RECOMMENDATIONS: AUDIT OF THE NRCS DECOMISSIONING FUNDS PROGRAM (OIG-16-A-16)
REFERENCE:
DIRECTOR, OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS, MEMORANDUM DATED DECEMBER 14, 2022 Attached is the Office of the Inspector Generals (OIG) analysis and status of recommendations as discussed in the agencys response dated December 14, 2022.
Based on this response, recommendations 1 and 2 remain in open and resolved status.
Recommendations 3 through 9 were previously closed. Please provide an updated status of the open and resolved recommendations by June 30, 2023.
If you have any questions or concerns, please call me at 301.415.1982 or Terri Cooper, Team Leader, at 301.415.5965.
Attachment:
As stated cc: M. Bailey, OEDO J. Jolicoeur, OEDO M.Meyer, OEDO J. Lubinski, NMSS T. Wertz, NMSS RidsEdoMailCenter Resource OIG Liaison Resource EDO_ACS Distribution NRC Headquarters l 11555 Rockville Pike l Rockville, Maryland 20852 l 301.415.5930 www.nrcoig.oversight.gov
Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16)
Recommendation 1: Clarify guidance to further define legitimate decommissioning activities by developing objective criteria for this term.
Agency Response Dated December 14, 2022: The staff plans to add additional criteria to RG 1.184 (DG-1347) and to specifically indicate that exemptions are needed for any spending of the decommissioning trust fund other than for radiological decommissioning activities.
The staff originally planned to address this recommendation as part of the proposed power reactor decommissioning rulemaking, Regulatory Improvements for Reactors Transitioning to Decommissioning (RIN 3150-AJ59, NRC-2015-0070).
Staff proposed changes to Title 10 of the Code of Federal Regulations (10 CFR), Section 50.82(a)(8)(i)(A) and Section 52.110(h)(1)(i) that removed the term legitimate from the phrase legitimate decommissioning activities and planned to better clarify guidance in Regulatory Guide (RG) 1.184 (DG-1347), Decommissioning of Nuclear Power Reactors, to include objective criteria for identifying decommissioning activities and expenses that fall within the definition of decommission in 10 CFR 50.2, Definitions. The proposed objective criteria included:
- Expenses directly related to activities that satisfy the definition of decommission in 10 CFR 50.2;
- Expenses directly related to decommissioning planning and execution including consulting and paper studies, environmental assessments, engineering, and licensing activities;
- Expenses directly related to the decontamination and dismantling of systems, structures, and components (SSCs) (labor, materials, and equipment), including disposal of waste generated from decontamination and dismantling activities;
- Expenses directly related to the disposal of contaminated SSCs (labor, materials, and equipment);
- Expenses directly related to radiological soil remediation (labor, materials, and equipment),
including disposal of this waste; 2
Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16)
Recommendation 1 (continued):
- Expenses directly related to overhead costs (i.e., emergency planning and security) and energy (e.g., electricity and fuel) used in support of decommissioning activities and to maintain the safety and security of the site;
- Expenses directly related to undistributed costs such as property taxes and nuclear insurance required while in decommissioning until the license terminated; and,
- Expenses directly related to improving the efficiency and effectiveness of the decommissioning process (demonstrated through a cost-benefit analysis to reduce expenses and preserve the decommissioning fund), and to improve the safety and security of the site.
Additionally, the staff proposed changes to 10 CFR 50.82(a)(8)(viii) to provide a licensee the option to use its decommissioning trust fund for spent fuel management and specific license independent spent fuel storage installation decommissioning costs only if: (1) the licensee has submitted, and the U.S.
Nuclear Regulatory Commission (NRC) has docketed, the certifications required under 10 CFR 50.82(a)(1) or 10 CFR 52.110(a); (2) 90 days have elapsed since the NRC received the licensees post shutdown decommissioning activities report under 10 CFR 50.82; and (3) the licensee has identified excess funds in the decommissioning trust. Such excess funds would be funds in the trust that are greater than those funds reasonably needed to maintain compliance with 10 CFR 50.82(a)(8)(i)(B) and (C), complete radiological decommissioning, and terminate the license. The Commission issued SRM-18-0055 on November 3, 2021, disapproving the above proposed changes to rule language.
The draft rule, absent the staffs original proposed revisions, and accompanying draft regulatory guides (including DG-1347), which do contain the additional criteria and guidance on application of exemptions, were published for public comment on March 3, 2022.
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Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16)
Recommendation 1 (continued):
Initially the public comment period was for 75 days, but after several requests to extend the comment period, it was extended until August 30, 2022. The staff is currently working to address the public comments on both the draft rule and the draft regulatory guides received during the comment period. The Executive Director for Operations is scheduled to be briefed on the resolution of the public comments in January 2023.
Proposed Rule Publication Date: 03.03.2022 Proposed Revised Rule to the Commission: October 2023 Estimated Final Rule Publication Date: May 2024 Point of
Contact:
Trent Wertz, NMSS/REFS, 301.415.1568 OIG Analysis: The proposed corrective action addresses the intent of the OIGs recommendation. This recommendation will be closed when the OIG receives and reviews the final rule and associated guidance and determines that it further defines legitimate decommissioning activities by developing objective criteria for this term, or removes the term completely.
Status: Open: Resolved.
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Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16)
Recommendation 2: Develop and issue clarifying guidance to NRC staff and licensees specifying the instances when an exemption is not needed.
Agency Response Dated December 14, 2022: The staff plans to add additional criteria to RG 1.184 (DG-1347) and to specifically indicate that exemptions are needed for any spending of the decommissioning trust fund other than for radiological decommissioning activities.
The staff originally planned to address this recommendation as part of the proposed power reactor decommissioning rulemaking. Staff proposed changes to 10 CFR 50.82(a)(8)(viii) to provide a licensee the option to use its decommissioning trust fund for spent fuel management and specific license independent spent fuel storage installation decommissioning costs only if: (1) the licensee has submitted, and the NRC has docketed, the certifications required under 10 CFR 50.82(a)(1) or 10 CFR 52.110(a); (2) 90 days have elapsed since the NRC received the licensees post shutdown decommissioning activities report under 10 CFR 50.82; and (3) the licensee has identified excess funds in the decommissioning trust. Such excess funds are funds in the trust that are greater than those funds reasonably needed to maintain compliance with 10 CFR 50.82(a)(8)(i)(B) and (C), complete radiological decommissioning, and terminate the license. These criteria would have been incorporated in Regulatory Guide (RG) 1.184 (DG-1347). A licensee that would choose this option would not need to submit a regulatory exemption to use the decommissioning trust fund for spent fuel management and specific license Independent Spent Fuel Storage Installation costs.
Additionally, the staff proposed changes to guidance in RG 1.184 to include objective criteria for identifying decommissioning activities and expenses that fall within the definition of decommission in 10 CFR 50.2.
These criteria are identified in response to Recommendation 1 from the OIGs Audit of NRCs Decommissioning Funds Program (OIG-16-A-16).
Other revisions to RG 1.184 include the: 1) clarification of the appropriate use of decommissioning planning 5
Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16)
Recommendation 2 (continued):
funds; 2) clarification that funds within a licensees decommissioning trust are exclusively for radiological decommissioning and cannot be used for spent fuel management; and 3) clarification that a regulatory exemption is required for any use of the decommissioning trust fund other than radiological decommissioning, including decommissioning planning.
The Commission issued SRM-18-0055 on November 3, 2021, disapproving the above recommendations to the rule language.
The draft rule, absent the staffs original proposed revisions, and accompanying draft regulatory guides (including DG-1347), which do contain the additional criteria and guidance on application of exemptions, were published for public comment on March 3, 2022.
Initially the public comment period was for 75 days, but after several requests to extend the comment period, it was extended until August 30, 2022. The staff is currently working to address the public comments on the draft rule and the draft regulatory guides received during the comment period. The Executive Director for Operations is scheduled to be briefed on the resolution of the public comments in January 2023.
Proposed Rule Publication Date: 03.03.2022 Proposed Revised Rule to the Commission: October 2023 Estimated Final Rule Publication Date: May 2024 Point of
Contact:
Trent Wertz, NMSS/REFS, 301.415.1568 6
Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16)
Recommendation 2 (continued):
OIG Analysis: The proposed actions meet the intent of the recommendation. The OIG will close this recommendation when the DNFSB implements a process to validate the DNFSB GSS security authorization is maintained in accordance with DNFSB policy.
Status: Open: Resolved.
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