ML25127A313

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NRC Presentation for May 14, 2025 Fuel Facility Stakeholders Meeting
ML25127A313
Person / Time
Issue date: 05/07/2025
From: Rowley J
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Download: ML25127A313 (1)


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1 Jonathan Rowley, Project Manager Division of Fuel Management Office of Nuclear Material Safety and Safeguards Email: Jonathan.Rowley@nrc.gov Phone: 301-415-4053 Fuel Facility Stakeholders Meeting May 14, 2025 Public Meeting With Nuclear Energy Institute and Members from the Nuclear Fuel Facility Industry

2 Meeting Category and Public Participation This is an Observation Meeting. This is a meeting in which attendees will have an opportunity to observe the NRC performing its regulatory function or discussing regulatory issues. Attendees will have an opportunity to ask questions of the NRC staff or make comments about the issues discussed following the business portion of the meeting; however, the NRC is not actively soliciting comments towards regulatory decisions at this meeting.

3 Agenda - May 14, 2025 Topic Time Speakers Introduction (Purpose, Rules for Meeting) 8:30 AM Jonathan Rowley, Project Manager Division of Fuel Management (DFM)

Opening Remarks 8:35 AM Shana Helton, Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission Greg Core, Director Fuel Cycle Facilities Nuclear Energy Institute (NEI)

Status of Action Items from November 2024 Meeting and Integrated Schedule and Supplement Updates 8:40 AM Jonathan Rowley, Project Manager, DFM Environmental Center of Expertise Activities 8:45 AM Diana Toro, Project Manager, Division of Rulemaking, Environmental, and Financial Support (REFS)

Environmental Report Pre-Application Guidance 9:05 AM Isaac Johnston, Project Manager, REFS Endangered Species Act Non-Federal Representative Process 9:25 AM Mitchell Dehmer, Environmental Scientist, REFS Public Question and Answer 9:45 AM Public

4 Agenda - May 14, 2025 (cont.)

Topic Time Speakers Break 9:50 AM Defining Likelihood Definitions for Fuel Cycle Facilities 10:00 AM Dante Johnson, Branch Chief, DFM Budget and Fee Update 10:30 AM Samantha Lav, Branch Chief, DFM SharePoint External Sharing 11:00 AM Jonathan Rowley, Project Manager, DFM Fuel Facilities Construction Inspection Program Updates 11:10 AM Gerond George, Branch Chief, DFM Public Question and Answer 11:20 AM Public Recap of Action Items for the Day 11:25 AM Jonathan Rowley, DFM Greg Core, NEI Closing Remarks and Adjourn 11:30 AM Shana Helton, DFM Greg Core, NEI

5 Opening Remarks Shana Helton, Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards Greg Core, Director Fuel Cycle Facilities Nuclear Energy Institute

6 Jonathan Rowley, Project Manager Division of Fuel Management Office of Nuclear Material Safety and Safeguards Action Items from November 2024 Fuel Facility Stakeholders Public Meeting

7 Action Items - November 2024 Stakeholders Meeting 7

Action Item 1 The NRC and NEI/Industry shall exchange any meeting presentation materials at least one week prior to the scheduled meeting date.

NRC Staff Resolution DFM will continue to make the presentation materials available to the public at least one week prior to the meeting date. (Ongoing Periodic Action)

Action Item 2 The NRC staff will maintain a current integrated schedule of regulatory activities chart on the NRC public website for the fuel facility stakeholders meeting.

NRC Staff Resolution The integrated schedule is updated at least twice a year prior to each stakeholders meeting and as needed when new items are added.

(Ongoing Periodic Action)

Action Item 3 A discussion on what happens to unutilized Part 170 fees is to be include in the Spring 2025 stakeholder meeting.

NRC Staff Resolution A discussion is included in the NRC presentation for the May 14, 2025, fuel facility stakeholders meeting. (Closed)

Action Item 4 The industry and the NRC should develop separate lists of areas for targeted guidance updates and then meet to compare the lists before the NRC begins revising NUREG-1520.

NRC Staff Resolution The NRC provided a list of areas for targeted guidance updates during the November 2024 stakeholders meeting. The industry continues to develop their list. A meeting date has not been established. (Ongoing Action)

Action Item 5 The NRC will schedule a meeting or workshop on licensing best-practices and areas of improvement in conjunction with the spring 2025 fuel facility stakeholders meeting.

NRC Staff Resolution A public meeting on potential improvements for licensing fuel facilities was held on April 10, 2025. A licensing best-practices workshop will be held on May 14, 2025. (Closed)

8 Integrated Schedule Chart and Supplement Updates Jonathan Rowley, Project Manager Division of Fuel Management Office of Nuclear Material Safety and Safeguards

9 Updates to Integrated Schedule Chart and Supplement

  • Updated information

- Fuel Facility Stakeholders Meeting https://www.nrc.gov/materials/fuel-cycle-fac/regs-guides-comm.html#cumeffects

- Integrated Schedule (Chart)

ADAMS Accession Number ML25125A204

- Integrated Schedule Supplement ADAMS Accession Number ML25125A205 Summary of changes to previously listed activities (November 2024 - May 2025)

ADAMS Accession Number ML25125A206

10 Modernizing Environmental Reviews Diana Diaz-Toro, Environmental Project Manager Division of Rulemaking, Environmental, and Financial Support Office of Nuclear Material Safety and Safeguards 10

11 Environmental Center of Expertise Environmental Center for Expertise (ECOE) was established in 2019

- Centralize organizational responsibility, consolidate expertise, increase effectiveness and efficiency, increase knowledge management

- Flexibility to shift resources to meet demand ECOE workload has increased and is anticipated to continue to grow Fiscal Responsibility Act and the ADVANCE Act ECOE realigned in late 2023

- 3 Project Management Branches

- 2 Technical Review Branches

12 Efficiency and Outcomes SECY-24-0046, Implementation of the Fiscal Responsibility Act of 2023 National Environmental Policy Act Amendments Continue to integrate the risk-informed approach into NEPA decision-making

- Categorical exclusions

- EAs vs. EIS

- Right-sizing the NEPA review

- Incorporate by reference Focusing on pre-application activities

- Readiness reviews can minimize risks for delays

- Engaging early with Tribes or other consulting parties, when appropriate Non-Federal designees for Endangered Species Act consultations Supporting the business line owners via M-LEAP effort

13 Efficiency and Outcomes 13 RULEMAKING PROCESSES Expanded Categorical Exclusions Rule:

1,000 staff hours savings per year Risk-informed technical scope:

up to 20%

resource savings Non-Federal representatives for Endangered Species Act consultations:

50-80% resource savings per consultation Incorporation by reference:

up to 10-50 % fewer pages depending on available studies Potential rulemaking from 2023 NEPA Amendments: 6 new efficiency recommendations

14 Efficiency and Outcomes Average time to prepare an EIS has decreased by ~25% percent from 2019 -2024 Average EIS pages have decreased by ~48% from 2019-2024 Shorter documents focused on important environmental issues Prepared in less time

15 Environmental Law (If Applicable)a NRC Applicant Other Agencies Involved National Environmental Policy Act

Cooperating Endangered Species Act Section 7 May Delegate b FWS/NOAA National Historic Preservation Act Section 106 May Delegate c ACHP/SHPO/Tribes Magnuson-Stevens Act

NMFS National Marine Sanctuaries Act

NMFS Rivers and Harbors Act Section 10, Clean Water Act Section 404 Permit

USACE Clean Water Act Section 401 Water Quality Certification

EPA/State Clean Water Act Section 402 (National Pollutant Discharge Elimination System Permit)

EPA/State Coastal Zone Management Act Determination

NOAA a Does not represent a comprehensive list of potentially applicable environmental laws.

b Non-federal representatives may conduct informal Sec. 7 consultation or prepare biological assessments in support of formal Section 7 consultation.

C Section 106 delegation of SHPO consultation to the applicant is under preliminary consideration.

Environmental Laws: NRC and Applicant Roles

16 Questions 16

17 Environmental Report Pre-Application Guidance Isaac Johnston, Environmental Project Manager Division of Rulemaking, Environmental, and Financial Support Office of Nuclear Material Safety and Safeguards 17

18 Pre-Application Engagement Guidance

  • There is currently no NRC guidance on environmental report pre-application engagement for materials licenses.

- NRC staff have prepared a draft guidance providing industry with information on the voluntary pre-application engagement process.

  • Pre-application interactions help NRC staff to become familiar with the proposed action, issues of public concern, level of detail and supporting analyses and identify areas where additional information may be needed.

18

19 Advantages to Pre-Application Engagement 19 Advantages for the Applicant Advantages for the NRC Enhanced regulatory predictability and reduced risk of project delays.

Greater review efficiency because NRC staff becomes familiar with the proposed action, possible alternatives, impact analyses, and potential need for ESA and NHPA consultations Greater review efficiency because the NRC staff becomes familiar with proposed action, which may reduce cost and shorten environmental reviews NRC staff becomes familiar with applicants approach and any unique site-specific environmental conditions Early interactions between the NRC, the applicant, and other agencies that may have a

role in the environmental review expediting the environmental review schedule Early engagement with external stakeholders, such as Federal, State, and local agencies, and Tribal government(s)

Potential discussion on Endangered Species Act Non-Federal Representative Begin the level of environmental review analysis

20 Pre-Application Engagement The following information should be discussed during pre-application engagement:

  • Stakeholder information (potentially affected federal, state, and local agencies and tribes)
  • Site selection process and site-specific environmental information and issues, including supporting technical bases and any analyses
  • Consultation and data needs
  • Required permits, approvals, authorizations from other regional, state, and federal agencies and the status of procuring needed non-nrc permit(s) or authorization(s)
  • Issues that could affect the environmental review schedule
  • Estimated application submittal date 20

21 Pre-Application Guidance Publication NRC staff are finalizing a draft guidance document providing details about pre-application engagement and the benefits for potential applications.

NRC staff expects to publish the draft guidance for comment in late summer 2025.

Comment Period will be 30 days.

The guidance document will eventually be incorporated as an appendix to the revised NUREG-1748 21

22 Questions 22

23 Endangered Species Act (ESA)

Non-Federal Representative (NFR) Process Mitchell Dehmer, Environmental Scientist Division of Rulemaking, Environmental, and Financial Support Office of Nuclear Material Safety and Safeguards 23

24 ESA Section 7 NFR Process ESA Section 7, "Interagency Cooperation ESA Section 7(a)(2) requires Federal agencies to consult with the Services to insure that their actions do not:

- jeopardize the continued existence of listed species or

- destroy or adversely modify critical habitat.

The NRCs actions, including granting of new, renewed, or amended licenses, are subject to Section 7 consultation requirements.

The Services maintain joint regulations at 50 CFR Part 402 that interpret and implement ESA Section 7.

- Subpart B contains the consultation procedures (50 CFR 402.10-402.16).

- When taking an action, the NRC must comply with these regulations.

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25 ESA Section 7 NFR Process Non-Federal Representatives (NFRs)

  • The ESA Sect 7 regulations allow consultation to be conducted by:

- The Federal agency (NRC staff)

- A designated NFR (NRC applicant, licensee, or their consultant)

  • An NFR may:

- Conduct the entire consultation for an informal consultation

- Prepare the biological assessment in support of either an informal consultation or a formal consultation 25

26 ESA Section 7 NFR Process NFR History

  • Historically, the NRC designated NFRs for ESA consultation, but the practice was discontinued around 2001.
  • In 2024, the NRC began designating NFRs again to streamline consultations, reduce required staff resources, and support various efficiency initiatives and requirements (for example, ADVANCE Act).
  • To date, NRC has designated NFRs for consultations associated with operating reactors, test reactors, and fuel cycle facility licensing.

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27 ESA Section 7 NFR Process NFR Designation NRC sends letter designating NFR to the appropriate Service (FWS, NMFS)

INFORMAL CONSULTATION NFR submits final biological assessment/evaluation and requests the Services concurrence with its findings.

Consultation is complete upon the Services concurrence.

FORMAL CONSULTATION NFR submits final biological assessment/

evaluation to NRC and NFR role is complete.

NRC submits biological assessment/ evaluation to the Service & initiates formal consultation.

Consultation is complete upon the Services issuance of a biological opinion.

NFR Submits Draft for Review NRC reviews draft and provides feedback NFR Drafts Biological Assessment/Evaluation NRC and NFR check in, as needed. NFR may holds meetings with Services, as needed NRC provides NFR with official species list NRC & NFR establish milestones &

timeline Proposed Action NRC meets with licensee to discuss the NFR option (ideally, at pre-app stage)

The type of ESA consultation (informal or formal) dictates remainder of process

- OR -

28 ESA Section 7 NFR Process NFR Backgrounder for NRC Applicants and Licensees: ML25076A129 28 Questions?

29 Public Participation At this time, the public is afforded an opportunity to ask questions and/or provide comments on the following topics:

Modernizing Environmental Reviews Environmental Report Pre-application Guidance Endangered Species Act Non-Federal Representative Process

30 Defining Likelihood Definitions for Fuel Cycle Facilities Danté Johnson, Branch Chief Nuclear Analysis and Risk Assessment Branch Division of Fuel Management 30

31 Key Messages

  • Ensure safety while being flexible
  • Use risk-informed decision-making in licensing decisions
  • Focus on facility design and operation aspects that have the highest safety significance (graded approach to safety)

32 Purpose of Integrated Safety Analysis (ISA)

- Collection of individual accident sequences for which IROFS are established

- Used to ensure that accident sequences are identified and that appropriate independent controls are established

  • Approaches

- Quantitative Approach

- Qualitative Approach

- Semi-quantitative Approach

33 Risk-Informed Regulations and Guidance

  • Part 70 Appendix A (b)(2)
  • NUREG-1520, Rev. 2 Standard Review Plan for Fuel Cycle Facilities License Applications, June 2015.

- Chapter 3 addresses ISAs

  • NUREG-1513, Integrated Safety Analysis Guidance Document, May 2001

34 Open to Alternative Approaches

- Likelihood targets of -4/-

5

  • Review focus:

- Criteria and commitments that demonstrate compliance with applicable regulations

- Facility risk is being appropriately limited

- Safety is being maintained by limiting the likelihood of events

35 Next Steps

  • Develop and Issue Staff Guidance Document

- Solicit feedback during Spring/Summer 2025

- Finalize in late 2025

  • Guidance will be incorporated into next revision of NUREG-1520

36 Questions 36

37 Budget and Fee Update Samantha Lav, Branch Chief Fuel Facility Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards 37

38 Fuel Facilities Business Line vs.

Fee Class Fuel Facilities Business Line Budget Fuel Facilities Fee Class Budget Mission-direct salaries and benefits for the business line (e.g., licensing, oversight, rulemaking, guidance, event response, training, licensing and oversight infrastructure, outreach)

Excluded activities (e.g., generic homeland security, some international activities, and licensing and inspection of some greater than critical mass licensees)

Mission-indirect program support for the business line (e.g., supervisors, administrative assistants, travel, and some international activities)

Budgeted mission-direct resources allocated from the fuel facility business line and other business lines that benefit the fee class The proportion of mission-indirect program support from all business lines and agency support resources (i.e., corporate support and Inspector General [IG]) allocated to the fee class through the application of the professional hourly rate and the fully-costed full time equivalent (FTE) rate.

39 Limited opportunities to adjust budget for workload changes During Budget Formulation Development of staffs budget proposal to the Chairman Commission voting on the budget proposal During OMBs review of the Performance Budget During Congress development of appropriation bills During Budget Execution NRC must recover approximately 100% of its budget minus excluded activities Resources can be moved between business lines to change the budgeted resources to be recovered by the fee class

40 Impact of Workload Changes on Annual Fees Budgeted Resources for Speci"c Licensees/Applications Budgeted Resources for the Fuel Facilities as a Whole 10 CFR Part 170 Fees 10 CFR Part 171 Fees 10 CFR Part 170 Fees 10 CFR Part 171 Fees 10 CFR Part 170 Fees 10 CFR Part 171 Fees 10 CFR Part 170 Fees 10 CFR Part 171 Fees Fee Class Budget Scenario 1 Scenario 2 Scenario 3 Resources Removed from the Business Line Budget

41 Updated Fuel Facility Cost Estimates for 2025

  • Additional categories of licensing actions were added for granularity and to enhance the planning and budgeting of applications

- Initial applications

- License renewals

- Complex licensing actions

- Routine amendments

- Security plan reviews

- Financial assurance reviews

- Nuclear criticality safety reviews

  • Updated inspection costs estimates

42 Questions/Comments

43 Transition to SharePoint External Sharing (SPxS)

Jonathan Rowley, Project Manager Fuel Facility Licensing Branch Division of Fuel Management 43

44

  • NRC has developed a new process to share files with parties outside of the Agency (aka external parties).
  • The new External Sharing Process replaces the existing external file sharing and collaboration solution, Box.com, with SharePoint Online. SharePoint provides a secure online environment to share files with external parties.
  • Box will be fully retired in the fall of 2025 (September 30). Box.com remains available for use at this time.

44 External Sharing: What Changed?

45 External Party Receives Email with Link to the NRC Guest User Registration Form 45

46 3 Ways to Share Files Click on Share to add people to share with, change permission settings, and/or send an email notification.

Click on Copy Link and choose people, permissions, and expiration dates Click on Manage Access through the ellipsis to manage permissions for groups, grant access, or Stop Sharing.

47 Questions 47

48 Fuel Facilities Construction Inspection Program Updates Gerond George, Branch Chief Inspection and Oversight Branch Division of Fuel Management 48

49 Previous Stakeholder Engagement and Timeline The information in the following slides were previously discussed during the April 9, 2024, public meeting. (ADAMS Accession No. ML24114A287)

The NRC staff developed the Inspection Manual Chapters and Inspection Procedures using the stakeholder feedback.

Issuance expected by 3Q-4Q FY 2025, for IMC's 2600/2694 changes and IP 88201 for management measures inspections 49

50 IMC 2600 Fuel Cycle Facility Operational Safety and Safeguards Inspection Program In the past, major modification inspections used a combination of operating core and construction procedures. These revisions provide additional guidance for clarity, transparency, and consistency.

Inspectors will utilize new construction Inspection Procedures (IPs)

(88200 - 88202 series) for technical and management measures (MM) inspections, as applicable, during construction phase and existing operating core IPs during operational readiness review (ORR) inspections, as applicable.

50

51 IMC 2694, Fuel Cycle Facility Construction and Pre-Operational Readiness Review Inspection Program To be used for new applicants and new licensees.

Inspection scope is determined on a case-by-case basis using a principal inspection plan (PIP) and is facility and process-line specific.

Inspectors will utilize new construction IPs (88200 - 88202 series) for technical and MM inspections, as applicable, during construction phase and existing operating baseline IPs during ORR inspections.

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52 IMC 2600 Appendix B NRC Core Inspection Requirement 52

53 IMC 2694 Appendix A DRAFT LANGUAGE 53

54 IMC 2694 Appendix A 54

55 Public Participation At this time, the public is afforded an opportunity to ask questions and/or provide comments on the following topics:

Defining Likelihood Definitions for Fuel Cycle Facilities Budget and Fee Update Transition to SharePoint External Sharing Fuel Facilities Construction Inspection Program Updates

56 Jonathan Rowley, Project Manager Division of Fuel Management Office of Nuclear Material Safety and Safeguards Recap of Action Items

57 Closing Remarks Shana Helton, Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards Greg Core, Director Fuel Cycle Facilities Nuclear Energy Institute