ML23229A512

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GE-Hitachi Nuclear Energy Americas, LLC, Response to NRC Staff Observations Enclosed with NRC Acceptance Letter (Reference 2) Related to GE, Geha and GNF-A Application (Reference 1)
ML23229A512
Person / Time
Site: Vallecitos Nuclear Center, 07000754, 07001113, 07200001, 07001220, Vallecitos
Issue date: 08/17/2023
From: Murray S
GE-Hitachi Nuclear Energy Americas
To:
Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation, Document Control Desk
Shared Package
ML23229A511 List:
References
M230111
Download: ML23229A512 (1)


Text

GE Hitachi Nuclear Energy

  • HITACHI Scott P. Murray Manager, Facility Licensing 3901 Castle Hayne Road P.O. Box 780 WIimington, NC 28402 USA T (910) 819-5950 Proprietary Information Notice scott.murray@ge.com to this letter contains GEHA and/or GNF-A proprietary information which is to be withheld from public disclosure in accordance with 10 CFR 2.390. Upon removal of Attachment 3, the balance of this letter may be made public.

M230111 August 17, 2023 Osiris Siurano-Perez, Project Manager Fuel Facility Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission Washington, D. C. 20555-001 Attention: Document Control Desk

Subject:

Response to NRC Staff Observations enclosed with NRC Acceptance Letter (Reference 2) Related to GE, GEHA and GNF-A Application (Reference 1)

References:

1) Applicat{on for NRC Order Consenting to Indirect Transfer of Cqntrol with Respect to Reactor Licenses, Materials Licenses and Export Licenses, and Notification Regarding Other Approvals, dated May 30, 2023 (ML23152A116)
2) Letter from 0. Siurano-Perez (NRC) to M. Catts (GEHA), Acceptance of General Electric Company Application for Order Consenting to Indirect Transfer of Control of Licenses, dated July 27, 2023 (L-2023-LLM-0003)

On June 1, 2023, General Electric Company (GE), GE-Hitachi Nuclear Energy Americas, LLC (GEHA) and Global Nuclear Fuel-Americas, LLC (GNF-A) (together, "Applicants") submitted an Application for Order Consenting to Indirect Transfer of Control with Respect to Reactor Licenses, Materials Licenses and Export Licenses, and Notification Regarding Other Approvals

("Application") (Reference 1). The NRC accepted the Application for technical review on July 27, 2023 (Reference 2).

The NRC, as part of its acceptance review, provided three observations and sought additional information and clarification for the NRC's technical review of the Application. Attachment 1 to this letter provides Applicants' response to the NRC Staff's observations.

If you have any questions regarding this matter, please contact me at (910) 819-5950.

M230111 U.S. NRC August 17, 2023 Page 2 of 2 Sincerely, d~d~

Facility Licensing Attachments:

1) GEHA Affidavit
2) GNF-A Affidavit
3) Applicants' Response to NRC Staff's Observations Related to Their Application for Order Consenting to the Indirect Transfer of Control of NRC Licenses (Contains Proprietary Information to be Withheld from Public Disclosure) cc: Director, Office of Nuclear Materials Safety and Safeguards Director, Office of International Programs Director, Office of Nuclear Reactor Regulations SPM 23-033

M230111 U.S. NRC August 17, 2023 Page 1 of 2 Attachment 1 GE-Hitachi Nuclear Energy Americas, LLC Affidavit I, Scott P. Murray, state as follows:

(1) I am the Manager, Facility Licensing of GE-Hitachi Nuclear Energy Americas, LLC (GEHA), and have been delegated the function of reviewing the information described in paragraph (2) which is sought to be withheld and have been authorized to apply for its withholding.

(2) The information sought to be withheld is provided in Attachment 3 to GEHA's letter, M230111, S. Murray to 0. Siurano-Perez, entitled "Response to NRC Staff Observations enclosed with NRC Acceptance Letter Related to GE, GEHA and GNF-A Application dated August 17, 2023. GEH proprietary information contained in Attachment 3 is identified by the statement "Proprietary Information Withhold from Public Disclosure Pursuant to 10 CFR 2.390."

(3) In making this application for withholding of proprietary information of which it is the owner or licensee, GEH relies upon the exemption from disclosure set forth in the Freedom of Information Act (FOIA), 5 USC Sec. 552(b)(4), and the Trade Secrets Act, 18 USC Sec. 1905, and NRC regulations 10 CFR 9.17(a)(4), and 2.390(a)(4) for trade secrets (Exemption 4). The material for which exemption from disclosure is here sought also qualifies under the narrower definition of trade secret, within the meanings assigned to those terms for purposes of FOIA Exemption 4 in, respectively, Critical Mass Energy Project v. Nuclear Regulatory Commission, 975 F2d 871 (DC Cir. 1992), and Public Citizen Health Research Group v. FDA, 704 F2d 1280 (DC Cir. 1983).

(4) The information sought to be withheld is considered to be proprietary for the reasons set forth in paragraphs (4)a. and (4)b. Some examples of categories of information that fit into the definition of proprietary information are:

a. Information that discloses a process, method, or apparatus, including supporting data and analyses, where prevention of its use by GEHA's competitors without license from GEHA constitutes a competitive economic advantage over GEHA and/or other companies.
b. Information that, if used by a competitor, would reduce their expenditure of resources or improve their competitive position in the design, manufacture, shipment, installation, assurance of quality, or licensing of a similar product.

(5) To address 10 CFR 2.390(b)(4), the information sought to be withheld is being submitted to the NRC in confidence. The information is of a sort customarily held in confidence by GEHA and is in fact so held. The information sought to be withheld has, to the best of my knowledge and belief, consistently been held in confidence by GEHA, not been disclosed publicly, and not been made available in public sources. All disclosures to third parties, including any required transmittals to the NRC, have been made, or must be made, pursuant to regulatory provisions or proprietary and/or confidentiality agreements that provide for maintaining the information in confidence. The initial designation of this information as proprietary information, and the subsequent steps taken to prevent its unauthorized disclosure are as set forth in the following paragraphs (6) and (7).

(6) Initial approval of proprietary treatment of a document is made by the manager of the originating component, who is the person most likely to be acquainted with the value and sensitivity of the information in relation to industry knowledge, or who is the person most likely to be subject to the terms under which it was licensed to GEHA.

(7) The procedure for approval of external release of such a document typically requires review by the staff manager, project manager, principal scientist, or other equivalent authority for technical content, competitive effect, and determination of the accuracy of the proprietary designation. Disclosures outside GEHA are limited to regulatory bodies, customers, and potential customers, and their agents,

M230111 U.S. NRC August 17, 2023 Page 2 of 2 Attachment 1 GE-Hitachi Nuclear Energy Americas, LLC Affidavit suppliers, and licensees, and others with a legitimate need for the information, and then only in accordance with appropriate regulatory provisions or proprietary and/or confidentiality agreements.

(8) The information identified in paragraph (2) above is classified as proprietary because it contains details of GEHA's processes, methods, supporting data, analyses, design, or manufacturing facilities.

(9) Public disclosure of the information sought to be withheld is likely to cause substantial harm to GEHA's competitive position and foreclose or reduce the availability of profit-making opportunities. The information describing facility design, supporting data, analyses or licensing methodology is part of GEHA's comprehensive safety and technology base, and its commercial value extends beyond the original development cost.. In addition, the technology base includes the value derived from providing analyses done with NRG-approved methods.

The research, development, engineering, analytical and NRC review costs comprise a substantial investment of time and money by GEHA. The precise value of the expertise to devise an evaluation process and apply the correct analytical methodology is difficult to quantify, but it clearly is substantial.

GEHA's competitive advantage will be lost if its competitors are able to use the results of the GEHA experience to normalize or verify their own process or if they are able to claim an equivalent understanding by demonstrating that they can arrive at the same or similar conclusions.

The value of this information to GEHA would be lost if the information were disclosed to the public.

Making such information available to competitors without there having been required to undertake a similar expenditure of resources would unfairly provide competitors with a windfall and deprive GEHA of the opportunity to exercise its competitive advantage to seek an adequate return on its large investment in developing and obtaining these very valuable analytical tools.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on this 17th day of August 2023.

s~!YP/Y!~

GE-Hitachi Nuclear Energy Americas LLC STATE OF NORTH CAROLINA)

)

COUNTY OF NEW HANOVER )

Subscribed and sworn to me, a Notary Public, in and for the State of North Carolina, this 17th day of August 2023.

State of North Carolina My Commission Expires: lp( 13 (1~

KryalleWotlmmt NOTARY PU8UC New Hanowr Ccu1ty, NO My Commission Expll'98 June 13, 2028

M230111 U.S. NRC August 17, 2023 Page 1 of 2 Attachment 2 Global Nuclear Fuels - Americas, LLC Affidavit I, Scott P. Murray, state as follows:

(1) I am the Manager, Facility Licensing of Global Nuclear Fuel - Americas (GNF-A) and have been delegated the function by GNF-A of reviewing the information described in paragraph (2) which is sought to be withheld and have been authorized to apply for its withholding.

(2) The information sought to be withheld is contained in Attachment 3 to GNF-A's letter, M230111, S. Murray to 0. Siurano-Perez, entitled "Response to NRC Staff Observations enclosed with NRC Acceptance Letter Related to GE, GEHA and GNF-A Application" dated August 17, 2023. GNF-A proprietary information contained in Attachment 3 is identified by the statement "Proprietary Information - Withhold from Public Disclosure Pursuant to 10 CFR 2.390."

(3) In making this application for withholding of proprietary information of which it is the owner or licensee, GNF-A relies upon the exemption from disclosure set forth in the Freedom of Information Act (FOIA),

5 USC Sec. 552(b)(4), and the Trade Secrets Act, 18 USC Sec. 1905, and NRC regulations 10 CFR 9.17(a)(4), and 2.390(a)(4) for trade secrets (Exemption 4). The material for which exemption from disclosure is here sought also qualifies under the narrower definition of trade secret, within the meanings assigned to those terms for purposes of FOIA Exemption 4 in, respectively, Critical Mass Energy Project v. Nuclear Regulatory Commission. 975 F2d 871 (DC Cir. 1992), and Public Citizen Health Research Group v. FDA. 704 F2d 1280 (DC Cir. 1983).

(4) The information sought to be withheld is considered to be proprietary for the reasons set forth in paragraphs (4)a. and (4)b. Some examples of categories of information that fit into the definition of proprietary information are:

a. Information that discloses a process, method, or apparatus, including supporting data and analyses. where prevention of its use by GNF-A's competitors without license from GNF-A constitutes a competitive economic advantage over GNF-A and/or other companies.
b. Information that, if used by a competitor, would reduce their expenditure of resources or improve their competitive position in the design, manufacture, shipment, installation, assurance of quality, or licensing of a similar product.

(5) To address 10 CFR 2.390(b)(4), the information sought to be withheld is being submitted to the NRC in confidence. The information is of a sort customarily held in confidence by GNF-A and is in fact so held. The information sought to be withheld has, to the best of my knowledge and belief, consistently been held in confidence by GNF-A, not been disclosed publicly, and not been made available in public sources. All disclosures to third parties, including any required transmittals to the NRC, have been made, or must be made, pursuant to regulatory provisions or proprietary and/or confidentiality agreements that provide for maintaining the information in confidence. The initial designation of this information as proprietary information, and the subsequent steps taken to prevent its unauthorized disclosure are as set forth in the following paragraphs (6) and (7).

(6) Initial approval of proprietary treatment of a document is made by the manager of the originating component, who is the person most likely to be acquainted with the value and sensitivity of the information in relation to industry knowledge, or who is the person most likely to be subject to the terms under which it was licensed to GEH. Access to such documents within GNF-A is limited to a "need to know" basis.

(7) The procedure for approval of external release of such a document typically requires review by the staff manager, project manager, principal scientist, or other equivalent authority for technical content,

M230111 U.S. NRC August17,2023 Page 2 of 2 Attachment 2 Global Nuclear Fuels - Americas, LLC Affidavit competitive effect, and determination of the accuracy of the proprietary designation. Disclosures outside GNF-A are limited to regulatory bodies, customers, and potential customers, and their agents, suppliers, and licensees, and others with a legitimate need for the information, and then only in accordance with appropriate regulatory provisions or proprietary and/or confidentiality agreements.

(8) The information identified in paragraph (2) above is classified as proprietary because it contains details of GNF-A's processes, methods, supporting data, analyses, design, or manufacturing facilities.

(9) Public disclosure of the information sought to be withheld is likely to cause substantial harm to GNF-A's competitive position and foreclose or reduce the availability of profit-making opportunities. The information describing facility design, supporting data, analyses or licensing methodology is part of GNF-A's comprehensive safety and technology base, and its commercial value extends beyond the original development cost. The value of the technology base goes beyond the extensive physical database and analytical methodology and includes development of the expertise to determine and apply the appropriate evaluation process. In addition, the technology base includes the value derived from providing analyses done with NRG-approved methods.

The research, development, engineering, analytical and NRC review costs comprise a substantial investment of time and money by GNF-A. The precise value of the expertise to devise an evaluation process and apply the correct analytical methodology is difficult to quantify, but it clearly is substantial.

GNF-A's competitive advantage will be lost if its competitors are able to use the results of the GNF-A experience to normalize or verify their own process or if they are able to claim an equivalent understanding by demonstrating that they can arrive at the same or similar conclusions.

The value of this information to GNF-A would be lost if the information were disclosed to the public.

Making such information available to competitors without there having been required to undertake a similar expenditure of resources would unfairly provide competitors with a windfall and deprive GNF-A of the opportunity to exercise its competitive advantage to seek an adequate return on its large investment in developing and obtaining these very valuable analytical tools.

I declare under penalty of perjury that the foregoing is true and correct.

aJ Executed on this 17th day of August 2023.

Global Nuclear Fuel - Americas LL STATE OF NORTH CAROLINA}

}

COUNTY OF NEW HANOVER }

Subscribed and sworn to me, a Notary Public, in and for the State of North Carolina, this 17th day of August 2023.  !<A A~ J.,, wcm M'/\M Q

Ntary Public in and for the State of North Carolina My Commission Expires: (..,{13{2-'( Krystle Wotinnau NOTARY PUBUC New HanovarCountY, NC My Commission Expires .1ur:<<. 13, 2028