ML24250A120
| ML24250A120 | |
| Person / Time | |
|---|---|
| Site: | 99902069 |
| Issue date: | 02/27/2025 |
| From: | Cayetano Santos NRC/NRR/DANU/UAL1 |
| To: | Joshua Borromeo NRC/NRR/DANU/UAL1 |
| References | |
| Download: ML24250A120 (1) | |
Text
February 27, 2025 MEMORANDUM TO:
Josh Borromeo, Chief Advanced Reactor Licensing Branch 1 Division of Advanced Reactors and Non-Power Production and Utilization Facilities Office of Nuclear Reactor Regulation FROM:
Cayetano Santos Jr., Senior Project Manager Advanced Reactor Licensing Branch 1 Division of Advanced Reactors and Non-Power Production and Utilization Facilities Office of Nuclear Reactor Regulation
SUBJECT:
SUMMARY
OF AUGUST 30, 2024, MEETING WITH KAIROS ON THE APPLICABILITY OF 10 CFR PART 21 AND 10 CFR 50.55(e)
BASIC COMPONENT DEFINITION TO THE HERMES NON-POWER TEST REACTORS Meeting Information:
Applicant: Kairos Power, LLC (Kairos)
Project No.: 99902069 Meeting Type: Virtual Observation Meeting Public Meeting Notice: Agencywide Documents Access and Management System (ADAMS)
Accession No.: ML24221A034
Contact:
Cayetano Santos, NRR/DANU (301) 415-7270 CAYETA NO SANTOS Digitally signed by CAYETANO SANTOS Date:
2025.02.27 14:07:16 -05'00'
J. Borromeo 2
Background:
In a letter dated April 1, 2024, Kairos Power, LLC (Kairos) requested the U.S. Nuclear Regulatory Commission (NRC) staff review and provide written feedback on a white paper (WP) titled, Basic Component Definition for Kairos Power Non-Power Test Reactors. The purpose of the WP was to confirm Kaiross understanding of the definitions of the term basic component as it applies to the Hermes non-power test reactors considering their vertically-integrated strategy of performing most safety-related design and manufacturing work internally. On August 9, 2024, the NRC staff provided Kairos with draft feedback and observations on this WP (ML24214A165).
Meeting Summary:
On August 30, 2024, a public meeting was held between the NRC staff and representatives of Kairos (ML24221A034) to discuss the NRC staffs draft feedback and observations on the white paper.
Below is a summary of the comments and discussions:
Kairos representatives stated that 10 CFR Part 21 and 10 CFR 50.55(e) apply to Kairos as the owner, constructor, and operator of the Hermes facilities but not as a supplier of components to the Hermes facilities. The NRC staff disagreed and commented that Kairos would be considered a first-tier supplier.
The NRC staff noted previous experience with General Atomics that is similar, but not identical, to Kaiross situation with the Hermes facilities. In this example, one division of General Atomics manufactured components for the operational division of General Atomics. However, unlike for Kairos, a contractual relationship existed between the two divisions of General Atomics.
The NRC staff acknowledged that applying 10 CFR Part 21 requirements to Kaiross strategy for the Hermes facilities is unique but would not be a backfit, forward fit, or a new staff position. Given this novel situation, the NRC staff stated it would be helpful for Kairos to propose a program describing how it would meet the intent of the 10 CFR Part 21 regulations so the NRC staff could understand and review the details of their approach. The NRC staff also noted that there is no regulatory requirement to have separation between organizations responsible for manufacturing and operation, but the NRC staff review would consider the level of independence between these two organizations.
Kaiross position is that if a safety-related component manufactured in-house was installed on a Hermes facility and that component contained a defect, it would be reportable per technical specifications (TS) but not per 10 CFR Part 21 because that component doesnt meet the definition of a basic component. The NRC staff disagreed because a safety-related component manufactured in-house that contained a defect is considered a basic component and should be reported per 10 CFR Part 21. Under Kaiross position, there is uncertainty regarding when Kairos would be required to notify the NRC.
Kairos representatives stated one of their concerns is that based on the draft NRC staff feedback, all internal documents that describe requirements of basic components could be considered a procurement document and would be required to state that the action falls under the requirements of 10 CFR Part 21.
J. Borromeo 3
Kairos representatives stated that procurement document is defined as a contract and the fundamental legal definition of contract requires the involvement of two separate entities. Since a contract cannot exist within a single entity (i.e., Kairos) there can be no procurement document and components manufactured by Kairos for Hermes are not basic components. The NRC staff commented that the overarching purpose of the regulations as discussed in the Energy Reorganization Act, the statements of consideration for 10 CFR Part 21, the rule itself, and the associated guidance document1 must also be considered when determining how the regulations are applied.
Given Kaiross vertically integrated strategy, the NRC staff asked whether they expected that more or less frequent 10 CFR Part 21 reports would be required. Kairos representatives responded that the issue is whether the 10 CFR Part 21 reporting requirements apply to Kairos for the Hermes facilities and not the frequency of reporting.
Kairos representatives stated that given the NRC staffs feedback and observations, Kairos may request a formal regulatory interpretation of the definition of basic component because without alignment with the NRC staff on this definition, it would be difficult for Kairos to implement 10 CFR Part 21 requirements.
A member of the public made the following comment:
Eric Oesterle commented that the discussion may have generic implications beyond Kairos and the Hermes facilities, and it may be useful to have additional discussions generically in the future. The language in the current rule and regulatory guidance for 10 CFR Part 21 reflect business models and arrangements that existed in the 1970s.
This could be a challenge to current organizations using different business models.
Enclosure:
List of Attendees cc: Kairos Power Hermes via GovDelivery 1 NUREG-0302, Revision 1, Remarks Presented (Questions/Answers Discussed) at Public Regional Meetings to Discuss Regulations (10 CFR Part 21) for Reporting of Defects and Noncompliance (ML062080399)
J. Borromeo 4
SUBJECT:
SUMMARY
OF AUGUST 30, 2024, MEETING WITH KAIROS ON THE APPLICABILITY OF 10 CFR PART 21 AND 10 CFR 50.55(e) BASIC COMPONENT DEFINITION TO THE HERMES NON-POWER TEST REACTORS DATED: FEBRUARY 27, 2025 DISTRIBUTION:
PUBLIC RidsACRS_MailCTR Resource RidsNrrDanuUal1 Resource RidsNrrDanu Resource JBorromeo, NRR CSantos, NRR DGreene, NRR MOrenak, NRR MHiser, NRR DHardesty, NRR OAyegbusi, NRR YDiaz-Castillo, NRR KKavanagh, NRR HCruz, NRR ABelen, NRR AGhosh Naber, NRR MWright, OGC JNadel, NRR BGleaves, NRR ADAMS Accession Number: ML24250A120 NRR-109 OFFICE NRR/DANU/UAL1:PM NRR/DANU/UAL1:LA NRR/DANU/UAL1:BC NRR/DANU/UAL1:PM NAME CSantos DGreene JBorromeo CSantos DATE 9/9/2024 9/9/2024 2/27/2025 2/27/2025 OFFICIAL RECORD COPY
Enclosure List Of Attendees Summary of Meeting with Kairos August 30, 2024 Name Organization Cayetano Santos U.S. Nuclear Regulatory Commission (NRC)
Michael Orenak NRC Matthew Hiser NRC Dune Hardesty NRC Odunayo Ayegbusi NRC Yamir Diaz-Castillo NRC Aixa Belen NRC Holly Cruz NRC Josh Borromeo NRC Anita Ghosh Naber NRC Megan Wright NRC Jared Nadel NRC Billy Gleaves NRC Darrell Gardner Kairos Power, LLC (Kairos)
Drew Peebles Kairos Michael Ellett Kairos James Kendrick Kairos Jordan Hagaman Kairos Ryan Lighty Morgan, Lewis, and Bockius LLP Timothy Matthews Morgan, Lewis, and Bockius LLP Eric Oesterle Member of the Public Lisa Schichlein Member of the Public