ML25080A077
| ML25080A077 | |
| Person / Time | |
|---|---|
| Issue date: | 04/15/2025 |
| From: | Prosanta Chowdhury NRC/NRR/DNRL/NRLB |
| To: | Jardaneh M NRC/NRR/DNRL/NRLB |
| Shared Package | |
| ML25059A100 | List: |
| References | |
| Download: ML25080A077 (1) | |
Text
MEMORANDUM TO:
Mahmoud Jardaneh, Chief New Reactor Licensing Branch Division of New and Renewed Licenses Office of Nuclear Reactor Regulation FROM:
Prosanta Chowdhury, Senior Project Manager New Reactor Licensing Branch Division of New and Renewed Licenses Office of Nuclear Reactor Regulation
SUBJECT:
U.S. NUCLEAR REGULATORY COMMISSION
SUMMARY
OF THE MARCH 6, 2025, PUBLIC MEETING REGARDING AMERICAN SOCIETY OF MECHANICAL ENGINEERS CODE CASE N-883: CONSTRUCTION OF ITEMS PRIOR TO THE ESTABLISHMENT OF A SECTION III, DIVISION 1, OWNER The U.S. Nuclear Regulatory Commission (NRC) conducted an Observation public meeting on March 6, 2025, to hold discussions with the Nuclear Energy Institute (NEI) representatives regarding American Society of Mechanical Engineers (ASME) Code Case (CC) N-883:
Construction of Items Prior to the Establishment of a Section III, Division 1, Owner. There was no closed session for this meeting. NRC staff presentation can be found at the NRCs Agencywide Document Control and Access System (ADAMS) Accession No. ML25063A240.
NEI presentation can be found at ML25059A110.
Highlights of the meeting are listed below:
The meeting aimed to discuss the NRC's position on ASME CC N-883, focusing on the construction of items before the establishment of an Owner and exploring potential guidance for the nuclear industry.
The ASME CC N-883 allows for the construction of items prior to the identification of an Owner under specific conditions, which the NRC conditionally endorsed for certain license holders.
CONTACT: Prosanta Chowdhury, NRR/DNRL 301-415-1647 April 15, 2025 Signed by Chow on 04/15/25
M. Jardaneh 2
The NRC explained its regulatory authority, emphasizing that it does not extend to ASME Certificate Holders unless they are contractors or suppliers to NRC licensees.
NEI highlighted the industry's need for early manufacturing to support new business models and reduce critical path time for nuclear projects, stressing the importance of flexibility in regulatory processes.
The discussion revealed differing interpretations of ASME CC N-883's language and the NRC's concerns about regulatory authority, oversight, and the applicability of Title 10 of the Code of Federal Regulations (10 CFR) Part 21, Reporting of Defects and Noncompliance, and 10 CFR Part 50, Appendix B, Notices of Nonconformance (NON) and Violation (NOV) and 10 CFR Part 21 NOVs, requirements.
The meeting concluded with a call for further discussions to align on a clear process for early manufacturing, addressing both technical and regulatory concerns, and considering potential rulemaking or other solutions.
During the meeting, NRC staff discussed the NRC position on enabling construction (e.g.,
fabrication) of ASME code items without the establishment of an Owner. The staff stated that Owners may utilize items constructed under the provisions of this Case only when the items have been constructed by Certificate Holders who are specifically authorized by the regulatory authority having jurisdiction over the Owners facility to construct items using this Case. In this regard, the staff evaluated four options: (1) using the existing Vendor Inspection Program (VIP) to perform inspections of ASME Certificate Holders; (2) using a voluntary ASME code inspection program instead of the VIP; (3) developing a regulatory framework to issue specific licenses for construction of items by ASME Certificate Holders; and (4) take no further action. The staff reiterated the conditions on which Regulatory Guide 1.84, Design, Fabrication, and Materials Code Case Acceptability, ASME Section III, Revision 39, (ML21181A225), has endorsed ASME CC N-883; staff also stated that the NRC would evaluate the need for adding Manufacturing License (ML) provision to the condition once ASME CC N-883, Revision 1, is issued. An ML application would have to meet the requirements in 10 CFR Part 52, Licenses, Certifications, and Approvals for Nuclear Power Plants, Subpart F, Manufacturing Licenses.
In its discussion, the NRC staff stated that under the current regulatory framework, the NRC does not have regulatory authority: 1) over ASME Certificate Holders who are unlicensed, except to the extent they are acting as contractors to or suppliers of NRC licensee or license applicant; and 2) to treat Standard Design Approval (SDA) or Design Certification Rule as an Owner under the ASME code. Finally, the staff discussed ML approach and rulemaking approach as potential alternatives.
NEI representatives made a presentation on the need for early manufacturing. NEI representatives discussed the need for a pathway to manufacture components prior to identifying owner/licensee and cited SECY-24-0008, Micro-Reactor Licensing and Deployment Considerations: Fuel Loading and Operational Testing at a Factory, (ML23207A252), as a reference. NEI representatives also presented a schematic depicting key differences in Traditional and Alternative processes. In the traditional process, NRC oversight encompasses manufacturing as well as delivery of components to an Owner (e.g., a licensee).
In the alternative process, NRC oversight does not begin until delivery of manufactured components to an Owner.
M. Jardaneh 3
Regarding NRC regulatory authority, NEI made extensive reference to the NRC response letter to NuScales Request for NRC Actions to Promptly Enable Construction of ASME Code Items without an Owner, dated November 1, 2024 (ML24204A242). In this letter, NRC staff explained that consistent with the Atomic Energy Act of 1954, as amended, the agency does not have regulatory authority over ASME Certificate Holders who are unlicensed, except to the extent they are acting as contractors to or suppliers of an NRC licensee or license applicant. NEI stated that it was their understanding that the NRC could create a process to provide regulatory clarity and predictability for the business model (manufacturing components before identifying the owner). In the referenced letter, the NRC mentioned two options for enabling manufacturing of ASME components prior to identifying an Owner: 1) an ML for the component(s) that meet 10 CFR Part 52 requirements in which case a designer would be considered an Owner; and 2) applicant or licensee (future owner) demonstrate that component meets NRC requirements, ASME code, and capable of performing safety function demonstrated by a process meeting Quality Assurance (QA) requirements.
NEI stated its objective of establishing regulatory basis for alternative approach that can be used for long-term solution and immediate use. Further, NEI stated their belief that the NRC appears to have four reasons as basis to conclude ASME CC N-883 could not be used as intended: 1) ASME N-883 itself restricts use to NRC licensees or applicants; 2) ASME technical basis is limited to components of four inches or less (nominal pipe size); 3) NRC QA Requirements in 10 CFR Part 50, Appendix B, only apply to NRC licensees and applicants; and
- 4) NRC does not have jurisdiction over ASME Holders not in contract with NRC licensee/applicant. According to NEI, NRCs position to restrict use of N-883 is not clear to industry, and that allowing it for use by DC or SDA holder could enable new business models.
NEI discussed their arguments against NRCs position and reasons stated above, to which the NRC staff provided clarification. On the fact that ASME technical basis is limited to components of four inches or less, it was NEIs understanding that one purpose of issuing CC N-883 was to not limit manufacturing to only four inches and under. NEI asked if the NRC would need N-883 updated to explicitly permit larger components and document the basis. Further, NEI stated it was unclear what challenge(s) need to be solved to enable an alternative approach. NEI inquired whether there are NRC requirements missing that otherwise would enable the alternative approach as discussed above.
NEI believes the lack of a clear NRC process for manufacturing components without an Owner imposes undue regulatory risks, and that industry would be willing to accept commercial risk which would be manageable with a clear regulatory process. NEI proposed a process, containing seven steps as well as a table comparing the traditional approach vs. an alternative approach for a set of key elements, to enable alternative approach and provide regulatory clarity and predictability. Finally, NEI proposed a path-forward, including 1) alignment on the technical basis for an alternative approach (no Owner identified); 2) near term use of technical basis/process using Alternative Approach; and 3) long-term regulatory clarity and durability by NRC endorsement of technical basis/process. NRC staff provided feedback on NEI proposal by emphasizing the limitations under the current regulations and acknowledging the need to provide guidance for future licensees who may procure a component fabricated at risk under the provisions of the Code Case.
Closing discussions revolved around regulatory issues, particularly, the interpretation and application of 10 CFR Part 21 requirements by the NRC and concerns raised by various stakeholders.
M. Jardaneh 4
Key points from the discussions are listed below:
Stakeholders emphasis on the need for specific guidance to move forward.
NRC's jurisdiction, especially, regarding the manufacturing stage before an owner is identified.
The difference in interpretation of the ASME code case, specifically, a restriction that the NRC included in their approval.
Third-party oversight mechanism in the current regulatory framework, particularly, in the context of the ASME code case.
The ongoing uncertainty and lack of clear guidance are affecting the ability of businesses in the nuclear industry to pursue alternative business models.
The need for faster resolution to avoid delays.
The meeting ended with a call for further discussions, with an emphasis on resolving the issues related to interpretation, jurisdiction, and oversight to ensure regulatory clarity and flexibility.
There were several comments from members of the public attending this meeting; the NRC staff provided clarification, as appropriate. NEI added clarification as well.
No regulatory decisions were discussed or made at this meeting.
The public meeting notice posted on the NRC public website can be found under ML25063A372. The enclosure to this summary provides a list of the meeting attendees.
Enclosure:
List of Attendees
Pkg: ML25059A100 Memo: ML25080A077 NRC Slides: ML25063A240 NEI Slides: ML25059A110 Meeting Notice: ML25063A372
- via email NRR-106 OFFICE NRR/DNRL/NRLB: PM NRR/DNRL/NLIB: LA NRR/DROL/IQVB: BC NAME PChowdhury SGreen*
KKavanagh DATE 03/20/2025 03/21/2025 03/26/2025 OFFICE NRR/DNRL/NRLB: BC NRR/DNRL/NRLB: PM NAME MJardaneh PChowdhury DATE 04/04/2025
Enclosure U.S. NUCLEAR REGULATORY COMMISSION
SUMMARY
OF THE MARCH 6, 2025, PUBLIC MEETING REGARDING ASME CODE CASE N-883: CONSTRUCTION OF ITEMS PRIOR TO THE ESTABLISHMENT OF A SECTION III, DIVISION 1, OWNER LIST OF ATTENDEES March 6, 2025 Name Organization Greg Bowman U.S. Nuclear Regulatory Commission (NRC)
Michele Sampson NRC Russell Felts NRC Phil McKenna NRC Mahmoud Jardaneh NRC Prosanta Chowdhury NRC Stacy Joseph NRC Kerri Kavanagh NRC Aixa Belen NRC Yamir Diaz-Castillo NRC Thomas Hayden NRC Ricky Vivanco NRC River Rohrman NRC Chakrapani Basavaraju NRC Christopher Cook NRC Raj Iyengar NRC Robert Weisman NRC Sheldon Clark NRC Juli Ezell NRC Yiu Law NRC Greg Oberson NRC John Honcharik NRC Jon Greives NRC Joseph Bass NRC Kamal Manoly NRC Marcus Nichol Nuclear Energy Institute (NEI)
Thomas Basso NEI Martin ONeill NEI Jerry Bonanno NEI
2 Mark Ritcher NEI Marc Albert Public Andrew Brenner Public Jana Bergman Public Robert Keating Public Brandon B. Kusisto Public Brett McGlone Public Jesse S Brown Public Carolyn Monaco Public Clark Shurtleff Public Eric Oesterle Public Ross Moore Public Scott Auerbach Public Amanda Spalding Public Steve Andrews Public Marc Tannenbaum Public Jonathan Thomas Public Timothy McDonald Public Tom Roberts Public Trace Orf Public Gary Becker Public Mark Shaver Public Steve McCracken Public Jan Mazza Public