RS-20-114, License Amendment Request - Proposed Changes to Technical Specifications Sections 1.1, Definitions, and 5.0, Administrative Controls, for Permanently Defueled Condition

From kanterella
Jump to navigation Jump to search

License Amendment Request - Proposed Changes to Technical Specifications Sections 1.1, Definitions, and 5.0, Administrative Controls, for Permanently Defueled Condition
ML20269A401
Person / Time
Site: Byron  Constellation icon.png
Issue date: 09/24/2020
From: Simpson P
Exelon Generation Co
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
RS-20-114
Download: ML20269A401 (31)
v • d • e


Text

4300 Winfield Road Warrenville, IL 60555 Exelon Generation 630 65 7 2000 Office 10 CFR 50.90 RS-20-114 September 24, 2020 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Byron Station, Units 1 and 2 Renewed Facility Operating License Nos. NPF-37 and NPF-66 NRC Docket Nos. STN 50-454 and STN 50-455

Subject:

License Amendment Request - Proposed Changes to Technical Specifications Sections 1.1, "Definitions," and 5.0, "Administrative Controls," for Permanently Defueled Condition

References:

1. Letter from J. Bradley Fewell (Exelon Generation Company, LLC) to U.S. Nuclear Regulatory Commission, "Certification of Permanent Cessation of Power Operations for Byron Station, Units 1 and 2," dated September 2, 2020 (NRC Accession No. ML20246G613)
2. Letter from Patrick R. Simpson (Exelon Generation Company, LLC) to U.S. Nuclear Regulatory Commission, "Request for Approval of Certified Fuel Handler Training and Retraining Program," for Byron Station, Units 1 and 2, and Dresden Nuclear Power Station, Units 1, 2 and 3, dated September 24, 2020 In accordance with 10 CFR 50.90, "Application for amendment of license, construction permit, or early site permit," Exelon Generation Company, LLC (Exelon) requests amendments to the Technical Specifications (TS) of Renewed Facility Operating License Nos. NPF-37 and NPF-66 for Byron Station, Units 1 and 2 (Byron).

On August 27, 2020, Exelon announced that it plans to close Byron due to severe economic challenges. By letter dated September 2, 2020 (Reference 1), Exelon provided formal notification to the U.S. Nuclear Regulatory Commission (NRC) pursuant to 10 CFR 50.4(b)(8) and 10 CFR 50.82(a)(1)(i) that it would permanently cease operations at Byron on or before September 30, 2021.

Once the certifications for permanent cessation of operations and permanent removal of fuel from the reactor vessels are submitted to the NRC in accordance with 10 CFR 50.82(a)(1)(i) and (ii), then pursuant to 10 CFR 50.82(a)(2), the 10 CFR 50 licenses will no longer authorize operation of the reactors or emplacement or retention of fuel in the reactor vessels.

September 24, 2020 U.S. Nuclear Regulatory Commission Page 2 The basis for this proposed License Amendment Request (LAR) is that certain TS administrative controls may be revised or removed to reflect the permanently defueled condition. Specifically, this LAR proposes changes to the organization, staffing, and training requirements contained in Section 5.0, "Administrative Controls," of the Byron TS and defines two new positions for Certified Fuel Handler and Non-Certified Operator in Section 1.1, "Definitions." The proposed amendments also support implementation of the Certified Fuel Handler Training and Retraining Program that was submitted to the NRC on September 24, 2020 (Reference 2). to this letter provides a detailed description and evaluation of the proposed changes to the TS. Attachment 2 provides the existing TS pages for Byron, marked up to show the proposed changes.

The proposed changes have been reviewed by the Byron Plant Operations Review Committee in accordance with the requirements of the Exelon Quality Assurance Program.

Exelon requests approval of the proposed amendments by August 16, 2021, to support the current schedule for the Byron transition to a permanently defueled facility. Once approved, the amendments shall be implemented within 60 days from the effective date of the amendments.

Exelon requests that the approved amendments become effective following submittal of the certifications required by 10 CFR 50.82(a)(1), informing the NRC that the Byron Units have been permanently shutdown and defueled.

In accordance with 10 CFR 50.91, "Notice for public comment; State consultation," paragraph (b),

Exelon is notifying the State of Illinois of this application for license amendment by transmitting a copy of this letter and its attachments to the designated State Officials.

There are no regulatory commitments contained within this submittal.

Should you have any questions concerning this submittal, please contact Ms. Lisa Simpson at (630) 657-2815.

I declare under penalty of perjury that the foregoing is true and correct. Executed on the 24th day of September 2020.

Patrick R. Simpson Sr. Manager - Licensing Exelon Generation Company, LLC Attachments: 1. Evaluation of Proposed Changes

2. Markup of Technical Specifications Pages

6HSWHPEHU

861XFOHDU5HJXODWRU\&RPPLVVLRQ

3DJH







FF  15&5HJLRQDO$GPLQLVWUDWRU5HJLRQ,,,

15&6HQLRU5HVLGHQW,QVSHFWRU+/-%\URQ6WDWLRQ

15&3URMHFW0DQDJHU155+/-%\URQ6WDWLRQ

,OOLQRLV(PHUJHQF\0DQDJHPHQW$JHQF\+/-'LYLVLRQRI1XFOHDU6DIHW\

'LUHFWRU15&'LYLVLRQRI)XHO0DQDJHPHQW1066





$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





6XEMHFW 3URSRVHG&KDQJHVWR7HFKQLFDO6SHFLILFDWLRQV6HFWLRQV'HILQLWLRQV

DQG$GPLQLVWUDWLYH&RQWUROVIRU3HUPDQHQWO\'HIXHOHG&RQGLWLRQ





 6800$5<'(6&5,37,21



 '(7$,/(''(6&5,37,21



 7(&+1,&$/(9$/8$7,21



 5(*8/$725<(9$/8$7,21



 $SSOLFDEOH5HJXODWRU\5HTXLUHPHQWV&ULWHULD



 1R6LJQLILFDQW+D]DUGV&RQVLGHUDWLRQ



 &RQFOXVLRQ



 (19,5210(17$/&216,'(5$7,21



 5()(5(1&(6







$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





 6800$5<'(6&5,37,21



,QDFFRUGDQFHZLWK&)5$SSOLFDWLRQIRUDPHQGPHQWRIOLFHQVHFRQVWUXFWLRQSHUPLW

RUHDUO\VLWHSHUPLW([HORQ*HQHUDWLRQ&RPSDQ\//& ([HORQ SURSRVHVFKDQJHVWRWKH

7HFKQLFDO6SHFLILFDWLRQV 76 RI5HQHZHG)DFLOLW\2SHUDWLQJ/LFHQVH1RV13)DQG

13)IRU %\URQ6WDWLRQ8QLWVDQG %\URQ 



2Q$XJXVW([HORQDQQRXQFHGWKDWLWSODQVWRFORVH%\URQGXHWRVHYHUHHFRQRPLF

FKDOOHQJHV%\OHWWHUGDWHG6HSWHPEHU 5HIHUHQFH ([HORQSURYLGHGIRUPDO

QRWLILFDWLRQWRWKH861XFOHDU5HJXODWRU\&RPPLVVLRQ 15& SXUVXDQWWR&)5 E  

DQG&)5 D  L WKDWLWZRXOGSHUPDQHQWO\FHDVHRSHUDWLRQVDW%\URQRQRUEHIRUH

6HSWHPEHU



2QFHWKHFHUWLILFDWLRQVIRUSHUPDQHQWFHVVDWLRQRIRSHUDWLRQVDQGSHUPDQHQWUHPRYDORIIXHO

IURPWKHUHDFWRUYHVVHOVDUHVXEPLWWHGWRWKH15&LQDFFRUGDQFHZLWK&)5 D  L 

DQG LL WKHQSXUVXDQWWR&)5 D  WKH&)5OLFHQVHVZLOOQRORQJHUDXWKRUL]H

RSHUDWLRQRIWKHUHDFWRUVRUHPSODFHPHQWRUUHWHQWLRQRIIXHOLQWKHUHDFWRUYHVVHOV



,QRUGHUWRVXSSRUWDFWLYLWLHVDW%\URQRQFHWKHVLWHLVLQDSHUPDQHQWO\VKXWGRZQDQGGHIXHOHG

FRQGLWLRQVRPHDGPLQLVWUDWLYHFRQWUROVDUHQRORQJHUDSSOLFDEOHDQGFDQEHGHOHWHGRUUHYLVHG

7KHUHIRUHWKLV/LFHQVH$PHQGPHQW5HTXHVW /$5 SURSRVHVFKDQJHVWKDWZRXOGGHOHWHRU

UHYLVHFHUWDLQRUJDQL]DWLRQVWDIILQJDQGWUDLQLQJUHTXLUHPHQWVFRQWDLQHGLQ6HFWLRQ

$GPLQLVWUDWLYH&RQWUROVRIWKH%\URQ76WRIXUWKHUVXSSRUWSODQWDFWLYLWLHVDQG

GHFRPPLVVLRQLQJHIIRUWVIROORZLQJSHUPDQHQWFHVVDWLRQRIRSHUDWLRQV



$GGLWLRQDOO\E\OHWWHUGDWHG6HSWHPEHU 5HIHUHQFH ([HORQVXEPLWWHGD&HUWLILHG

)XHO+DQGOHU &)+ 7UDLQLQJDQG5HWUDLQLQJ3URJUDPIRU15&DSSURYDO7KLVSURSRVHG/$5

ZLOOVXSSRUWLPSOHPHQWDWLRQRIWKH&)+SURJUDPRQFHDSSURYHGVLQFHOLFHQVHGRSHUDWRUVZLOO

QRORQJHUEHUHTXLUHGWRVXSSRUWSODQWRSHUDWLRQV7KHQHHGIRUOLFHQVHGRSHUDWRUVLVVSHFLILHG

LQ6HFWLRQRIWKH76,QDGGLWLRQWRWKHFKDQJHVWRDGGUHVVWKH&)+SRVLWLRQLQ766HFWLRQ

WKHWHUPV&HUWLILHG)XHO+DQGOHUDQG1RQ&HUWLILHG)XHO+DQGOHUKDYHEHHQDGGHGWR

766HFWLRQ'HILQLWLRQV



7KHSURSRVHGFKDQJHVZRXOGQRWEHFRPHHIIHFWLYHXQWLOERWKRIWKHIROORZLQJKDYHRFFXUUHG

 WKH15&KDVDSSURYHGWKH%\URQ&HUWLILHG)XHO+DQGOHU7UDLQLQJDQG5HWUDLQLQJ3URJUDP

DQG  ([HORQKDVVXEPLWWHGWKHUHTXLUHG&)5 D  LL FHUWLILFDWLRQWKDWWKH%\URQ

8QLWVKDYHEHHQSHUPDQHQWO\GHIXHOHG



7KLV/$5SURYLGHVDGLVFXVVLRQDQGGHVFULSWLRQRIWKHSURSRVHG76FKDQJHVDWHFKQLFDO

HYDOXDWLRQRIWKHSURSRVHG76FKDQJHVDQGLQIRUPDWLRQVXSSRUWLQJDILQGLQJRI1R6LJQLILFDQW

+D]DUGV&RQVLGHUDWLRQ 16+& 





 

3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





 '(7$,/(''(6&5,37,21



7KHSURSRVHG76PDUNXSVDUHLQFOXGHGLQ$WWDFKPHQW7KHVSHFLILFFKDQJHVDIIHFWLQJ%\URQ

766HFWLRQVDQGDUHGHVFULEHGLQWKLVVHFWLRQWKHVXSSRUWLQJWHFKQLFDOHYDOXDWLRQLV

SUHVHQWHGLQ6HFWLRQRIWKLV$WWDFKPHQW3URSRVHGLQVHUWLRQVDUHVKRZQLQBold-Italics,

DQGGHOHWLRQVDUHVKRZQXVLQJVWULNHWKURXJK5HYLVHGIRUPDWWLQJQXPEHULQJDQGZRUGLQJLQ

766HFWLRQDUHFRQVLVWHQWZLWK6HFWLRQRI185(*9ROXPH6WDQGDUG7HFKQLFDO

6SHFLILFDWLRQV 676 IRU:HVWLQJKRXVH3ODQWV 5HIHUHQFH H[FHSWZKHUHQRWHGWRPDNHWKH

SURSRVHG76UHIOHFWSHUPDQHQWO\GHIXHOHGUHDFWRUV



766HFWLRQ+/-'HILQLWLRQV

3URSRVHG76'HILQLWLRQV

 

  7HUP   'HILQLWLRQ

 

CERTIFIED FUEL HANDLER A CERTIFIED FUEL HANDLER is an individual who complies with the provisions of the CERTIFIED FUEL HANDLER training and retraining program required by Specification 5.3.2.

 

  7HUP   'HILQLWLRQ

 

NON-CERTIFIED OPERATOR A NON-CERTIFIED OPERATOR is a non-licensed operator who complies with the qualification requirements of Specification 5.3.1 but is not a CERTIFIED FUEL HANDLER.



766HFWLRQ+/-5HVSRQVLELOLW\

&XUUHQW76 3URSRVHG76

 

 7KHVWDWLRQPDQDJHUVKDOOEHUHVSRQVLEOHIRU  7KHplantPDQDJHUVKDOOEHUHVSRQVLEOHIRU

RYHUDOOIDFLOLW\RSHUDWLRQDQGVKDOOGHOHJDWHLQ RYHUDOOIDFLOLW\RSHUDWLRQDQGVKDOOGHOHJDWHLQ

ZULWLQJWKHVXFFHVVLRQWRWKLVUHVSRQVLELOLW\ ZULWLQJWKHVXFFHVVLRQWRWKLVUHVSRQVLELOLW\

GXULQJKLVDEVHQFH GXULQJKLVDEVHQFH

 

 $6HQLRU5HDFWRU2SHUDWRU 652 VKDOOEH  $6HQLRU5HDFWRU2SHUDWRU 652 shift UHVSRQVLEOHIRUWKHFRQWUROURRPFRPPDQG manager VKDOOEHUHVSRQVLEOHIRUWKHFRQWURO

IXQFWLRQZKLOHHLWKHUXQLWLVLQ02'( URRPshiftFRPPDQGIXQFWLRQZKLOHHLWKHU

RU)RUHDFKXQLWDQ652PD\EHGHVLJQDWHG XQLWLVLQ02'(RU)RUHDFKXQLW

DVUHVSRQVLEOHIRUWKHFRQWUROURRPFRPPDQG DQ652PD\EHGHVLJQDWHGDVUHVSRQVLEOH

IXQFWLRQ:KLOHERWKXQLWVDUHLQ02'(RU IRUWKHFRQWUROURRPFRPPDQGIXQFWLRQ

RUGHIXHOHGDQLQGLYLGXDOZLWKDQDFWLYH652 :KLOHERWKXQLWVDUHLQ02'(RURU

OLFHQVHRU5HDFWRU2SHUDWRUOLFHQVHVKDOOEH GHIXHOHGDQLQGLYLGXDOZLWKDQDFWLYH652

GHVLJQDWHGWRDVVXPHWKHFRQWUROURRP OLFHQVHRU5HDFWRU2SHUDWRUOLFHQVHVKDOOEH

FRPPDQGIXQFWLRQ GHVLJQDWHGWRDVVXPHWKHFRQWUROURRP

FRPPDQGIXQFWLRQ



3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





766HFWLRQ2UJDQL]DWLRQ

&XUUHQW76 3URSRVHG76

 

 2QVLWHDQG2IIVLWH2UJDQL]DWLRQV  2QVLWHDQG2IIVLWH2UJDQL]DWLRQV

 

 2QVLWHDQGRIIVLWHRUJDQL]DWLRQVVKDOOEH 2QVLWHDQGRIIVLWHRUJDQL]DWLRQVVKDOOEH

HVWDEOLVKHGIRUIDFLOLW\RSHUDWLRQDQGFRUSRUDWH HVWDEOLVKHGIRUIDFLOLW\RSHUDWLRQstaffDQG

PDQDJHPHQWUHVSHFWLYHO\7KHRQVLWHDQG FRUSRUDWHPDQDJHPHQWUHVSHFWLYHO\7KH

RIIVLWHRUJDQL]DWLRQVVKDOOLQFOXGHWKHSRVLWLRQV RQVLWHDQGRIIVLWHRUJDQL]DWLRQVVKDOOLQFOXGH

IRUDFWLYLWLHVDIIHFWLQJVDIHW\RIWKHQXFOHDU WKHSRVLWLRQVIRUDFWLYLWLHVDIIHFWLQJVDIHW\RIWKH

SRZHUSODQW QXFOHDUSRZHUSODQWthe safe storage and

  handling of irradiated fuel

 

D /LQHVRIDXWKRULW\UHVSRQVLELOLW\DQG D /LQHVRIDXWKRULW\UHVSRQVLELOLW\DQG

FRPPXQLFDWLRQVKDOOEHGHILQHGDQG FRPPXQLFDWLRQVKDOOEHGHILQHGDQG

HVWDEOLVKHGWKURXJKRXWKLJKHVW HVWDEOLVKHGWKURXJKRXWKLJKHVW

PDQDJHPHQWOHYHOVLQWHUPHGLDWHOHYHOV PDQDJHPHQWOHYHOVLQWHUPHGLDWHOHYHOV

DQGDOORSHUDWLQJRUJDQL]DWLRQSRVLWLRQV DQGDOORSHUDWLQJfacilityRUJDQL]DWLRQ

7KHVHUHODWLRQVKLSVVKDOOEH SRVLWLRQV7KHVHUHODWLRQVKLSVVKDOOEH

GRFXPHQWHGDQGXSGDWHGDV GRFXPHQWHGDQGXSGDWHGDV

DSSURSULDWHLQRUJDQL]DWLRQFKDUWV DSSURSULDWHLQRUJDQL]DWLRQFKDUWV

IXQFWLRQDOGHVFULSWLRQVRIGHSDUWPHQWDO IXQFWLRQDOGHVFULSWLRQVRIGHSDUWPHQWDO

UHVSRQVLELOLWLHVDQGUHODWLRQVKLSVDQG UHVSRQVLELOLWLHVDQGUHODWLRQVKLSVDQG

MREGHVFULSWLRQVIRUNH\SHUVRQQHO MREGHVFULSWLRQVIRUNH\SHUVRQQHO

SRVLWLRQVRULQHTXLYDOHQWIRUPVRI SRVLWLRQVRULQHTXLYDOHQWIRUPVRI

GRFXPHQWDWLRQ7KHVHUHTXLUHPHQWV GRFXPHQWDWLRQ7KHVHUHTXLUHPHQWV

LQFOXGLQJWKHJHQHULFWLWOHVRIWKRVH LQFOXGLQJWKHJHQHULFWLWOHVRIWKRVH

SHUVRQQHOIXOILOOLQJWKHUHVSRQVLELOLWLHVRI SHUVRQQHOIXOILOOLQJWKHUHVSRQVLELOLWLHVRI

WKHSRVLWLRQVGHOLQHDWHGLQWKHVH WKHSRVLWLRQVGHOLQHDWHGLQWKHVH

7HFKQLFDO6SHFLILFDWLRQVVKDOOEH 7HFKQLFDO6SHFLILFDWLRQVVKDOOEH

GRFXPHQWHGLQWKH4XDOLW\$VVXUDQFH GRFXPHQWHGLQWKHExelon 3URJUDP Decommissioning4XDOLW\$VVXUDQFH

 3URJUDP

 

E 7KHVWDWLRQPDQDJHUVKDOOEH E 7KHVWDWLRQplantPDQDJHUVKDOOEH

UHVSRQVLEOHIRURYHUDOOVDIHRSHUDWLRQRI UHVSRQVLEOHIRURYHUDOOVDIHRSHUDWLRQRI

WKHSODQWDQGVKDOOKDYHFRQWURORYHU WKHSODQWfacilityDQGVKDOOKDYHFRQWURO

WKRVHRQVLWHDFWLYLWLHVQHFHVVDU\IRU RYHUWKRVHRQVLWHDFWLYLWLHVQHFHVVDU\

VDIHRSHUDWLRQDQGPDLQWHQDQFHRIWKH IRUVDIHRSHUDWLRQstorageDQG

SODQW handlingRIWKHSODQW irradiated fuel

 

F 7KH&KLHI1XFOHDU2IILFHUVKDOOEH F 7KH&KLHI1XFOHDU2IILFHUA responsible UHVSRQVLEOHIRURYHUDOOSODQWQXFOHDU officerVKDOOEHUHVSRQVLEOHhave VDIHW\DQGVKDOOWDNHDQ\PHDVXUHV corporate responsibilityIRURYHUDOO

QHHGHGWRHQVXUHDFFHSWDEOH SODQWQXFOHDUVDIHW\the safe storage SHUIRUPDQFHRIWKHVWDIILQRSHUDWLQJ and handling of irradiated fuelDQG

PDLQWDLQLQJDQGSURYLGLQJWHFKQLFDO VKDOOWDNHDQ\PHDVXUHVQHHGHGWR

VXSSRUWWRWKHSODQWWRHQVXUHQXFOHDU HQVXUHDFFHSWDEOHSHUIRUPDQFHRIWKH

VDIHW\DQG VWDIILQRSHUDWLQJPDLQWDLQLQJDQG

 SURYLGLQJWHFKQLFDOVXSSRUWWRWKHSODQW

 facilityWRHQVXUHsafe storage and

 handling of irradiated fuel QXFOHDU

3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





 VDIHW\DQG

 

G 7KHLQGLYLGXDOVZKRWUDLQWKHRSHUDWLQJ G 7KHLQGLYLGXDOVZKRWUDLQWKHRSHUDWLQJ

VWDIIRUSHUIRUPKHDOWKSK\VLFVRU VWDIICERTIFIED FUEL HANDLERSRU

TXDOLW\DVVXUDQFHIXQFWLRQVPD\UHSRUW SHUIRUPKHDOWKSK\VLFVradiation WRWKHDSSURSULDWHRQVLWHPDQDJHU protectionRUTXDOLW\DVVXUDQFH

KRZHYHUWKHVHLQGLYLGXDOVVKDOOKDYH IXQFWLRQVPD\UHSRUWWRWKHDSSURSULDWH

VXIILFLHQWRUJDQL]DWLRQDOIUHHGRPWR RQVLWHPDQDJHUKRZHYHUWKHVH

HQVXUHWKHLULQGHSHQGHQFHIURP LQGLYLGXDOVVKDOOKDYHVXIILFLHQW

RSHUDWLQJSUHVVXUHV RUJDQL]DWLRQDOIUHHGRPWRHQVXUHWKHLU

 LQGHSHQGHQFHIURPRSHUDWLQJSUHVVXUHV

 ability to perform their assigned

 functions

 

 )DFLOLW\6WDII  )DFLOLW\6WDII

 

7KHIDFLOLW\VWDIIRUJDQL]DWLRQVKDOOLQFOXGHWKH 7KHIDFLOLW\VWDIIRUJDQL]DWLRQVKDOOLQFOXGHWKH

IROORZLQJ IROORZLQJ

 

D $WRWDORIWKUHHQRQOLFHQVHGRSHUDWRUV D $WRWDORIWKUHHQRQOLFHQVHGRSHUDWRUV

IRUWKHWZRXQLWVLVUHTXLUHGLQDOO IRUWKHWZRXQLWVLVUHTXLUHGLQDOO

FRQGLWLRQV$WOHDVWRQHRIWKHUHTXLUHG FRQGLWLRQV$WOHDVWRQHRIWKHUHTXLUHG

QRQOLFHQVHGRSHUDWRUVVKDOOEH QRQOLFHQVHGRSHUDWRUVVKDOOEH

DVVLJQHGWRHDFKXQLW DVVLJQHGWRHDFKXQLWEach duty shift

 shall be composed of at least one

 shift manager and two NON-

 CERTIFIED OPERATORS. The NON-

 CERTIFIED OPERATOR position may

 be filled by a CERTIFIED FUEL

 HANDLER.

 

E 6KLIWFUHZFRPSRVLWLRQPD\EHOHVV E 6KLIWFUHZFRPSRVLWLRQPD\EHOHVVWKDQ

WKDQWKHPLQLPXPUHTXLUHPHQWRI WKHPLQLPXPUHTXLUHPHQWRI&)5

&)5 P  L DQGDDQG  P  L DQGSpecificationD

IIRUDSHULRGRIWLPHQRWWRH[FHHG DQGIIRUDSHULRGRIWLPHQRWWR

KRXUVLQRUGHUWRDFFRPPRGDWH H[FHHGKRXUVLQRUGHUWR

XQH[SHFWHGDEVHQFHRIRQGXW\VKLIW DFFRPPRGDWHXQH[SHFWHGDEVHQFHRI

FUHZPHPEHUVSURYLGHGLPPHGLDWH RQGXW\VKLIWFUHZPHPEHUVSURYLGHG

DFWLRQLVWDNHQWRUHVWRUHWKHVKLIWFUHZ LPPHGLDWHDFWLRQLVWDNHQWRUHVWRUHWKH

FRPSRVLWLRQWRZLWKLQWKHPLQLPXP VKLIWFUHZFRPSRVLWLRQWRZLWKLQWKH

UHTXLUHPHQWV PLQLPXPUHTXLUHPHQWV and the

 following conditions are met:

 1) No movement of irradiated fuel is

 in progress;

 2) No movement of loads over

 irradiated fuel is in progress.

 This provision does not permit any

 shift crew position to be unstaffed

 upon shift change due to the

 absence or tardiness of an oncoming

 shift crew member.

 

 



3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





 

F $UDGLDWLRQSURWHFWLRQWHFKQLFLDQVKDOO F $UDGLDWLRQSURWHFWLRQWHFKQLFLDQVKDOO

EHRQVLWHZKHQIXHOLVLQWKHUHDFWRU EHRQVLWHZKHQIXHOLVLQWKHUHDFWRU

7KHSRVLWLRQPD\EHYDFDQWIRUQRWPRUH during the movement of irradiated WKDQKRXUVLQRUGHUWRSURYLGHIRU fuel and during movement of loads XQH[SHFWHGDEVHQFHSURYLGHG over irradiated fuel7KHSRVLWLRQPD\

LPPHGLDWHDFWLRQLVWDNHQWRILOOWKH EHYDFDQWIRUQRWPRUHWKDQKRXUVLQ

UHTXLUHGSRVLWLRQ RUGHUWRSURYLGHIRUXQH[SHFWHG

 DEVHQFHSURYLGHGLPPHGLDWHDFWLRQLV

 WDNHQWRILOOWKHUHTXLUHGSRVLWLRQ

 

G 'HOHWHG G 'HOHWHGOversight of irradiated fuel

 handling operations shall be

 provided by a CERTIFIED FUEL

 HANDLER.

 

H 7KHRSHUDWLRQVPDQDJHURUWKH H 7KHRSHUDWLRQVPDQDJHURUWKH

VXSHUYLVRULQFKDUJHRIWKHRSHUDWLRQV VXSHUYLVRULQFKDUJHRIWKHRSHUDWLRQV

VKLIWFUHZVVKDOOKROGDQ652OLFHQVH VKLIWFUHZVVKDOOKROGDQ652OLFHQVH

 The shift manager shall be a

 CERTIFIED FUEL HANDLER

 

I 7KH6KLIW7HFKQLFDO$GYLVRU 67$ VKDOO I 7KH6KLIW7HFKQLFDO$GYLVRU 67$ VKDOO

SURYLGHDGYLVRU\WHFKQLFDOVXSSRUWWRWKH SURYLGHDGYLVRU\WHFKQLFDOVXSSRUWWRWKH

6KLIW0DQDJHULQWKHDUHDVRIWKHUPDO 6KLIW0DQDJHULQWKHDUHDVRIWKHUPDO

K\GUDXOLFVUHDFWRUHQJLQHHULQJDQG K\GUDXOLFVUHDFWRUHQJLQHHULQJDQG

SODQWDQDO\VLVZLWKUHJDUGWRWKHVDIH SODQWDQDO\VLVZLWKUHJDUGWRWKHVDIH

RSHUDWLRQRIWKHIDFLOLW\,QDGGLWLRQWKH RSHUDWLRQRIWKHIDFLOLW\,QDGGLWLRQWKH

67$VKDOOPHHWWKHTXDOLILFDWLRQV 67$VKDOOPHHWWKHTXDOLILFDWLRQV

VSHFLILHGE\WKH&RPPLVVLRQ3ROLF\ VSHFLILHGE\WKH&RPPLVVLRQ3ROLF\

6WDWHPHQWRQ(QJLQHHULQJ([SHUWLVHRQ 6WDWHPHQWRQ(QJLQHHULQJ([SHUWLVHRQ

6KLIW 6KLIWAt all times when irradiated fuel

 is stored in the spent fuel pool, at least one person qualified to stand watch in the control room (NON-CERTIFIED OPERATOR or CERTIFIED FUEL HANDLER) shall be present in the control room. 



766HFWLRQ+/-)DFLOLW\6WDII4XDOLILFDWLRQV

&XUUHQW76 3URSRVHG76

 

 (DFKPHPEHURIWKHIDFLOLW\VWDIIVKDOOPHHWRU  (DFKPHPEHURIWKHIDFLOLW\VWDIIVKDOOPHHWRU

H[FHHGWKHPLQLPXPTXDOLILFDWLRQVUHIHUHQFHG H[FHHGWKHPLQLPXPTXDOLILFDWLRQVUHIHUHQFHG

IRUFRPSDUDEOHSRVLWLRQVDVVSHFLILHGLQWKH IRUFRPSDUDEOHSRVLWLRQVDVVSHFLILHGLQWKH

([HORQ4XDOLW\$VVXUDQFH7RSLFDO5HSRUW ([HORQ4XDOLW\$VVXUDQFH7RSLFDO5HSRUW

Decommissioning Quality Assurance Program

3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





5.3.2 An NRC-approved training and retraining program for the CERTIFIED FUEL HANDLERS shall be maintained.



766HFWLRQ+/-3URFHGXUHV

&XUUHQW76 3URSRVHG76

 

 :ULWWHQSURFHGXUHVVKDOOEHHVWDEOLVKHG  :ULWWHQSURFHGXUHVVKDOOEHHVWDEOLVKHG

LPSOHPHQWHGDQGPDLQWDLQHGFRYHULQJWKH LPSOHPHQWHGDQGPDLQWDLQHGFRYHULQJWKH

IROORZLQJDFWLYLWLHV IROORZLQJDFWLYLWLHV

 

D 7KHDSSOLFDEOHSURFHGXUHV D 7KHDSSOLFDEOHSURFHGXUHVapplicable UHFRPPHQGHGLQ5HJXODWRU\*XLGH to the safe storage and handling of

5HYLVLRQ$SSHQGL[$ irradiated fuelUHFRPPHQGHGLQ

)HEUXDU\ 5HJXODWRU\*XLGH5HYLVLRQ

 $SSHQGL[$)HEUXDU\

 

E 7KHHPHUJHQF\RSHUDWLQJSURFHGXUHV E 7KHHPHUJHQF\RSHUDWLQJSURFHGXUHV

UHTXLUHGWRLPSOHPHQWWKHUHTXLUHPHQWV UHTXLUHGWRLPSOHPHQWWKHUHTXLUHPHQWV

RI185(*DQG185(* RI185(*DQG185(*

6XSSOHPHQWDVVWDWHGLQ*HQHULF 6XSSOHPHQWDVVWDWHGLQ*HQHULF

/HWWHU6HFWLRQ /HWWHU6HFWLRQDeleted

 

F )LUH3URWHFWLRQ3URJUDP F )LUH3URWHFWLRQ3URJUDP

LPSOHPHQWDWLRQDQG LPSOHPHQWDWLRQDQG

 

G $OOSURJUDPVVSHFLILHGLQ6SHFLILFDWLRQ G $OOSURJUDPVVSHFLILHGLQ6SHFLILFDWLRQ

 



7KHUHDUHQRFRUUHVSRQGLQJ76%DVHV6HFWLRQVDVVRFLDWHGZLWKWKHVH76VHFWLRQV





 7(&+1,&$/(9$/8$7,21



7KLVWHFKQLFDOHYDOXDWLRQLVIRUDGPLQLVWUDWLYHFKDQJHVWR%\URQ766HFWLRQ'HILQLWLRQV

DQG6HFWLRQ$GPLQLVWUDWLYH&RQWUROV5HYLVHGIRUPDWWLQJQXPEHULQJDQGZRUGLQJDUH

FRQVLVWHQWZLWKWKH6HFWLRQRI185(*9ROXPH6WDQGDUG7HFKQLFDO6SHFLILFDWLRQV

676 IRU:HVWLQJKRXVH3ODQWV 5HIHUHQFH H[FHSWZKHUHQRWHGWRPDNHWKHSURSRVHG76

UHIOHFWSHUPDQHQWO\GHIXHOHGUHDFWRUV$VDUHVXOWWKH76VKRXOGEHPRUHUHDGDEOHDQG

WKHUHIRUHXQGHUVWDQGDEOHE\IDFLOLW\SHUVRQQHODVZHOODVRWKHUXVHUV7KHUHIRUPDWWLQJ

UHQXPEHULQJDQGUHZRUGLQJSURFHVVLQYROYHVQRWHFKQLFDOFKDQJHVWRWKHH[LVWLQJ76H[FHSW

ZKHUHVSHFLILFDOO\QRWHG



766HFWLRQ+/-'HILQLWLRQV



([HORQSURSRVHVWRDGGGHILQLWLRQVIRUWZRQHZWHUPV&(57,),(')8(/+$1'/(5DQG

121&(57,),('23(5$725WRHQVXUHFRQVLVWHQWXQGHUVWDQGLQJDQGDSSOLFDWLRQ

3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





WKURXJKRXWWKH76)XUWKHUGLVFXVVLRQRIWKH&(57,),(')8(/+$1'/(5DQG121

&(57,),('23(5$725DUHLQFOXGHGLQVHYHUDORIWKHSURSRVHG76LQ6HFWLRQ



766HFWLRQ+/-5HVSRQVLELOLW\



766HFWLRQ5HVSRQVLELOLW\SURYLGHVDGHVFULSWLRQDQGUHTXLUHPHQWVUHJDUGLQJFHUWDLQNH\

RSHUDWLRQDOPDQDJHPHQWUHVSRQVLELOLWLHV7KHVHFWLRQLQFOXGHVLQKHUHQWUHVSRQVLELOLWLHV

DVVRFLDWHGZLWKUHDFWRURSHUDWLRQWKDWDUHQRORQJHUDSSOLFDEOHIROORZLQJVXEPLWWDORIWKH

FHUWLILFDWLRQVUHTXLUHGE\&)5 D  7KHUHIRUHWKRVHUHVSRQVLELOLWLHVDUHGLIIHUHQWIRU

DSHUPDQHQWO\GHIXHOHGFRQGLWLRQEHFDXVH&)5 D  SURKLELWV([HORQIURPRSHUDWLQJ

WKHUHDFWRUVRUSODFLQJIXHOLQWKHUHDFWRUYHVVHOV



7KLVVHFWLRQLGHQWLILHVWKHUHVSRQVLELOLWLHVIRUWKHPDLQFRQWUROURRP 0&5 FRPPDQGIXQFWLRQ

DVVRFLDWHGZLWK0RGHVRISODQWRSHUDWLRQDQGLVEDVHGRQSHUVRQQHOSRVLWLRQVDQGTXDOLILFDWLRQV

IRUDQRSHUDWLQJSODQW,WLGHQWLILHVWKHQHHGIRUDGHOHJDWLRQRIDXWKRULW\IRUFRPPDQGLQDQ

RSHUDWLQJSODQWZKHQWKHSULQFLSDODVVLJQHHOHDYHVWKH0&5



76+/-7KLV76VHFWLRQGHVFULEHVWKHPDQDJHULDOSRVLWLRQZLWKUHVSRQVLELOLW\IRURYHUDOOSODQW

RSHUDWLRQVIROORZLQJSHUPDQHQWVKXWGRZQ7KHDVVLJQPHQWRIWKHSRVLWLRQIRUWKLVUHVSRQVLELOLW\

LVFKDQJHGIURPWKHVWDWLRQPDQDJHUWRWKHSODQWPDQDJHU7KHSODQWPDQDJHUZLOOEHWKH

VHQLRUSRVLWLRQDWWKHIDFLOLW\DQGZLOOEHGXO\DXWKRUL]HGZLWKVXIILFLHQWDXWKRULW\WRFDUU\RXWWKH

VSHFLILFUHVSRQVLELOLWLHVGHVFULEHGLQ76$OWKRXJKQRWDQ([HORQFRUSRUDWHRIILFHUWKH

SODQWPDQDJHUZLOOEHYHVWHGE\([HORQZLWKVLPLODUDXWKRULW\RYHUDFWLYLWLHVVXEMHFWWRWKHVDIH

VWRUDJHDQGKDQGOLQJRILUUDGLDWHGIXHO7KHSODQWPDQDJHUZLOOEHGXO\DXWKRUL]HGE\([HORQ

ZLWKVXIILFLHQWDXWKRULW\DQGRUJDQL]DWLRQDOIUHHGRPWRLGHQWLI\LQLWLDWHUHFRPPHQGDQGSURYLGH

VROXWLRQVDWDGHIXHOHGIDFLOLW\



7KHSODQWPDQDJHUZLOOUHSRUWWRDUHVSRQVLEOHRIILFHU LHYLFHSUHVLGHQWRUKLJKHU ZLWKLQWKH

([HORQFRUSRUDWHRUJDQL]DWLRQZKRZLOOKDYHWKHQHFHVVDU\DXWKRULW\DQGIXOOUHVSRQVLELOLW\IRU

WKHVDIHVWRUDJHDQGKDQGOLQJRILUUDGLDWHGIXHO7KLVUHSRUWLQJFKDLQDQGDXWKRULW\ZLOOEH

HVWDEOLVKHGDQGPDLQWDLQHGLQWKH([HORQ'HFRPPLVVLRQLQJ4XDOLW\$VVXUDQFH3URJUDP



KHQWKHSODQWPDQDJHULVDEVHQWIURPWKHIDFLOLW\KHVKHZLOOGHOHJDWHLQZULWLQJWKH

VXFFHVVLRQRIUHVSRQVLELOLW\WRDSULQFLSDODOWHUQDWHPDQDJHUZLWKHTXLYDOHQWQXFOHDUSRZHUSODQW

H[SHULHQFHDQGWUDLQLQJ7KHGHOHJDWLRQRIDXWKRULW\ZLOOEHHVWDEOLVKHGDQGPDLQWDLQHGLQWKH

([HORQ'HFRPPLVVLRQLQJ4XDOLW\$VVXUDQFH3URJUDP



76+/-([HORQSURSRVHVWRUHYLVHWKLV76VHFWLRQE\HOLPLQDWLQJWKH0RGHGHSHQGHQF\IRU

WKLVIXQFWLRQDQGSHUVRQQHOTXDOLILFDWLRQVDVVRFLDWHGZLWKDQRSHUDWLQJSODQW7KHSURSRVHG

FKDQJHVHVWDEOLVKWKHVKLIWPDQDJHUDVKDYLQJFRPPDQGRIWKHVKLIWZKLFKPRUHDSSURSULDWHO\

UHIOHFWVWKHGHIXHOHGFRPPDQGIXQFWLRQ'HOHJDWLRQRIFRPPDQGLVXQQHFHVVDU\RQFH%\URQLV

LQWKHSHUPDQHQWO\GHIXHOHGFRQGLWLRQZLWKLUUDGLDWHGIXHOLQWKHVSHQWIXHOSRRO 6)3 $Q\

HYHQWLQYROYLQJORVVRI6)3FRROLQJZRXOGHYROYHVORZO\HQRXJKWKDWQRLPPHGLDWHUHVSRQVH

ZRXOGEHUHTXLUHGWRSURWHFWWKHKHDOWKDQGVDIHW\RIWKHSXEOLFRUIDFLOLW\SHUVRQQHO



6DIHRSHUDWLRQLQWKHSHUPDQHQWO\GHIXHOHGFRQGLWLRQFRQVLVWVSULPDULO\RIHQVXULQJVDIHVWRUDJH

DQGKDQGOLQJRIWKHLUUDGLDWHGIXHOWKDWLVVWRUHGRQVLWH$VVRFLDWHGDFWLYLWLHV HJIXHOKDQGOLQJ 

GRQRWQHFHVVDULO\UHO\RQWKH0&57KH0&5ZLOOUHPDLQWKHSK\VLFDOFHQWHURIWKHFRPPDQG

IXQFWLRQKRZHYHUVLQFHFRQWURORIDFWLYLWLHVPD\EHSHUIRUPHGHLWKHUUHPRWHO\IURPWKH0&5RU

3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





ORFDOO\LQWKHSODQWWKHORFDWLRQRIWKHFRPPDQGFHQWHULVIXQFWLRQDOO\ZKHUHWKHVKLIWPDQDJHULV

ORFDWHGWKHUHIRUHWKHUHTXLUHPHQWWRKDYHDOLFHQVHGRSHUDWRULQWKH0&5LVQRORQJHU

QHFHVVDU\7KHSURSRVHG76FKDQJHVUHFRJQL]HWKDWWKHGHOHJDWLRQRIDXWKRULW\IRUFRPPDQG

DQGFRQWURODVSHFWVDUHGLIIHUHQWLQDSHUPDQHQWO\VKXWGRZQDQGGHIXHOHGSODQWIURPWKDWIRUDQ

RSHUDWLQJSODQWZKHQWKHSULQFLSDODVVLJQHHOHDYHVWKH0&5:LWK%\URQSHUPDQHQWO\

VKXWGRZQDQGGHIXHOHGWKHQXPEHURIUHOHYDQWFRQWUROVORFDWHGLQWKH0&5DQGWKHJUDGXDO

QDWXUHRIDEQRUPDORUDFFLGHQWVLWXDWLRQVZRXOGQRWZDUUDQWWKDWWKHFRPPDQGIXQFWLRQUHPDLQ

LQWKH0&5$GHTXDWHFRPPXQLFDWLRQVFDSDELOLW\LVSURYLGHGWRDOORZRSHUDWRUVWRVDIHO\

PDQDJHVWRUDJHDQGKDQGOLQJRILUUDGLDWHGIXHOZLWKRXWUHOLDQFHRQWKH0&5IRUWKHFRPPDQG

IXQFWLRQ



766HFWLRQ+/-2UJDQL]DWLRQ



76+/-2QVLWHDQG2IIVLWH2UJDQL]DWLRQV



7KHLQWURGXFWLRQWRWKLVVHFWLRQLGHQWLILHVWKDWRQVLWHDQGRIIVLWHRUJDQL]DWLRQDOSRVLWLRQVDUH

HVWDEOLVKHGWKDWDUHUHVSRQVLEOHIRUWKHVDIHW\RIWKHQXFOHDUSRZHUSODQW7KLVLVFKDQJHGWR

UHTXLUHWKDWSRVLWLRQVEHHVWDEOLVKHGWKDWDUHUHVSRQVLEOHIRUWKHVDIHVWRUDJHDQGKDQGOLQJRI

LUUDGLDWHGIXHO



7KHWHUPRSHUDWLRQLVFKDQJHGWRVWDII7KLVLVDQDGPLQLVWUDWLYHFKDQJHWKDWUHIOHFWVWKDW

%\URQZLOOEHSHUPDQHQWO\VKXWGRZQDQGGHIXHOHG,QDGGLWLRQWKHWHUPIDFLOLW\LVDPRUH

DSSURSULDWHGHVFULSWLRQRIDVLWHWKDWLVXQGHUJRLQJGHFRPPLVVLRQLQJDQGUHIOHFWVWKDW%\URQZLOO

EHSHUPDQHQWO\VKXWGRZQDQGGHIXHOHG7KLVFKDQJHLVSURSRVHGWKURXJKRXWWKLVOLFHQVH

DPHQGPHQWUHTXHVW,QDOOFDVHVWKLVFKDQJHLVPDGHRYHUDOOPDQDJHPHQWDQGVWDII

UHVSRQVLELOLWLHVDQGWKHGHVFULSWLRQRIWKHIDFLOLW\DUHXQFKDQJHG



7KHWHUPVDIHVWRUDJHDQGKDQGOLQJRILUUDGLDWHGIXHOLVFRQVLGHUHGDQDORJRXVWRWKHWHUP

QXFOHDUVDIHW\IRUDIDFLOLW\WKDWZLOOEHLQWKHSHUPDQHQWO\GHIXHOHGFRQGLWLRQ7KHSURSRVHG

FKDQJHVLQWKLV76VHFWLRQVHUYHWRQDUURZWKHIRFXVRIQXFOHDUVDIHW\FRQFHUQVWRWKRVH

DVVRFLDWHGZLWKVDIHO\PDLQWDLQLQJLUUDGLDWHGIXHO7KHVHFKDQJHVUHPRYHWKHLPSOLFDWLRQWKDW

%\URQFDQUHWXUQWRRSHUDWLRQRQFHWKHFHUWLILFDWLRQVUHTXLUHGE\&)5 D  DUH

VXEPLWWHGWRWKH15&



76D+/-7KLV76VHFWLRQLGHQWLILHVWKHOLQHVRIDXWKRULW\UHVSRQVLELOLW\DQGFRPPXQLFDWLRQ

7KHFKDQJHIURPRSHUDWLQJRUJDQL]DWLRQWRIDFLOLW\RUJDQL]DWLRQLVDPRUHDSSURSULDWH

GHVFULSWLRQRIDVLWHWKDWLVXQGHUJRLQJGHFRPPLVVLRQLQJDQGUHIOHFWVWKDW%\URQZLOOEH

SHUPDQHQWO\VKXWGRZQDQGGHIXHOHG



7KLV76VHFWLRQHVWDEOLVKHVWKDWUHTXLUHPHQWVUHJDUGLQJRUJDQL]DWLRQUHVSRQVLELOLWLHVDUH

VSHFLILHGLQWKH([HORQ4XDOLW\$VVXUDQFH7RSLFDO5HSRUW([HORQSURSRVHVWRUHYLVHWKH

UHIHUHQFHWRWKH([HORQ'HFRPPLVVLRQLQJ4XDOLW\$VVXUDQFH3URJUDPZKLFK%\URQZLOO

WUDQVLWLRQWRGXULQJWKHGHFRPPLVVLRQLQJSURFHVV



76E+/-7KLV76VHFWLRQLGHQWLILHVWKHRUJDQL]DWLRQDOSRVLWLRQUHVSRQVLEOHIRUWKHVDIH

RSHUDWLRQRIWKHSODQWDQGIRUFRQWURORIDFWLYLWLHVQHFHVVDU\IRUWKHVDIHRSHUDWLRQDQG

PDLQWHQDQFHRIWKHSODQW



3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





7RUHIOHFWWKHFKDQJHLQVDIHW\FRQFHUQVIURPDQRSHUDWLQJSODQWWRDSHUPDQHQWO\GHIXHOHG

IDFLOLW\WKHUHVSRQVLELOLW\IRUFRQWURORIDFWLYLWLHVQHFHVVDU\IRUWKHVDIHRSHUDWLRQDQG

PDLQWHQDQFHRIWKHSODQWLVFKDQJHGWRWKHUHVSRQVLELOLW\IRUVDIHVWRUDJHDQGKDQGOLQJRI

LUUDGLDWHGIXHO7KHUHVSRQVLEOHSRVLWLRQLVFKDQJHGIURPWKHVWDWLRQPDQDJHUWRWKHSODQW

PDQDJHU7KHFKDQJHIURPSODQWWRIDFLOLW\LVDGPLQLVWUDWLYH



76F+/-7KLV76VHFWLRQLGHQWLILHVWKHRUJDQL]DWLRQDOSRVLWLRQUHVSRQVLEOHIRURYHUDOOSODQW

QXFOHDUVDIHW\



7RUHIOHFWWKHFKDQJHLQVDIHW\FRQFHUQVIURPDQRSHUDWLQJSODQWWRDSHUPDQHQWO\GHIXHOHG

IDFLOLW\WKHUHVSRQVLELOLW\IRURYHUDOOSODQWQXFOHDUVDIHW\LVFKDQJHGWRWKHFRUSRUDWH

UHVSRQVLELOLW\IRUWKHVDIHVWRUDJHDQGKDQGOLQJRILUUDGLDWHGIXHO,QDGGLWLRQWKHUHVSRQVLELOLW\

IRUSURYLGLQJWHFKQLFDOVXSSRUWWRWKHSODQWWRHQVXUHQXFOHDUVDIHW\LVFKDQJHGWRSURYLGLQJ

WHFKQLFDOVXSSRUWWRWKHIDFLOLW\WRHQVXUHVDIHVWRUDJHDQGKDQGOLQJRILUUDGLDWHGIXHO



7KHSURSRVHGFKDQJHUHSODFHVWKHWHUP&KLHI1XFOHDU2IILFHUZLWK$UHVSRQVLEOHRIILFHU

5HVSRQVLEOHRIILFHULVDGHILQHGWHUPLQ&)5PHDQLQJWKHSUHVLGHQWYLFHSUHVLGHQW

RURWKHULQGLYLGXDOLQWKHRUJDQL]DWLRQRIDFRUSRUDWLRQ<<ZKRLVYHVWHGZLWKH[HFXWLYHDXWKRULW\

RYHUDFWLYLWLHVVXEMHFWWRWKLVSDUW7KHUHVSRQVLEOHRIILFHUZLOOEHDFRUSRUDWHSRVLWLRQYHVWHG

ZLWKH[HFXWLYHDXWKRULW\RYHUIDFLOLW\DFWLYLWLHV



76G+/-7KLV76VHFWLRQDGGUHVVHVWKHUHTXLUHPHQWIRURUJDQL]DWLRQDOLQGHSHQGHQFHRIWKH

SHUVRQQHOZKRWUDLQWKHRSHUDWLQJVWDIIKHDOWKSK\VLFVSHUVRQQHORUTXDOLW\DVVXUDQFH

SHUVRQQHOIURPRSHUDWLQJSUHVVXUHV



7KLV76VHFWLRQLVFKDQJHGWRUHSODFHRSHUDWLQJVWDIIZLWK&(57,),(')8(/+$1'/(56

DQGWRUHSODFHLQGHSHQGHQFHIURPRSHUDWLQJSUHVVXUHVZLWKDELOLW\WRSHUIRUPWKHLUDVVLJQHG

IXQFWLRQV7KHVHFKDQJHVUHIOHFWWKHFKDQJHGIXQFWLRQRIWKHSUHYLRXVRSHUDWLQJVWDIIWRD

IRFXVRQVDIHKDQGOLQJDQGVWRUDJHRILUUDGLDWHGIXHODQGWRUHPRYHWKHLPSOLFDWLRQWKDW%\URQ

FDQUHWXUQWRRSHUDWLRQRQFHWKHFHUWLILFDWLRQVUHTXLUHGE\&)5 D  DUHVXEPLWWHG

7KHFKDQJHIURPKHDOWKSK\VLFVWRUDGLDWLRQSURWHFWLRQLVDGPLQLVWUDWLYH



76+/-)DFLOLW\6WDII



7KHSURSRVHGFKDQJHVWR76UHIOHFWWKHUHTXLUHPHQWIRUKDYLQJRQHTXDOLILHGZDWFK

VWDQGHU HLWKHUD1RQ&HUWLILHG2SHUDWRURU&HUWLILHG)XHO+DQGOHU LQWKH0&5ZKHQLUUDGLDWHG

IXHOLVVWRUHGLQWKH%\URQ6)37KLVUHIOHFWVWKHUHGXFHGUHTXLUHPHQWIRU0&5SHUVRQQHO

WUDLQLQJDQGTXDOLILFDWLRQIRUDSODQWQRORQJHUDXWKRUL]HGWRRSHUDWH



1RQ&HUWLILHG2SHUDWRUVZLOOVXSSRUWWKHIDFLOLW\WKURXJKSHUIRUPDQFHRIWDVNVQRWUHTXLULQJ

TXDOLILFDWLRQDVD&HUWLILHG)XHO+DQGOHU7KHWUDLQLQJDQGTXDOLILFDWLRQIRUD1RQ&HUWLILHG

2SHUDWRUZLOOEHGHWHUPLQHGFRQVLVWHQWZLWK&)57UDLQLQJDQGTXDOLILFDWLRQRIQXFOHDU

SRZHUSODQWSHUVRQQHOZKLFKUHTXLUHVWUDLQLQJSURJUDPVWREHGHULYHGXVLQJD6\VWHPV

$SSURDFKWR7UDLQLQJ 6$7 DVGHILQHGLQ&)5$OWKRXJKWKHUHTXLUHPHQWVRI&)5

DSSO\WRKROGHUVRIDQRSHUDWLQJOLFHQVHLVVXHGXQGHU&)5DQGWKH%\URQOLFHQVHV

ZLOOQRORQJHUDXWKRUL]HRSHUDWLRQIROORZLQJVXEPLWWDORIWKHFHUWLILFDWLRQVUHTXLUHGE\&)5

 D  WKH1RQ&HUWLILHG2SHUDWRU7UDLQLQJ3URJUDPDOLJQVZLWKWKRVHUHTXLUHPHQWV7KLV

SURFHVVHQVXUHVWKDWWKH1RQ&HUWLILHG2SHUDWRUZLOOEHTXDOLILHGWRSHUIRUPWKHIXQFWLRQV

QHFHVVDU\WRPRQLWRUDQGHQVXUHVDIHVWRUDJHRILUUDGLDWHGIXHO7KH6$7SURFHVVUHTXLUHV

3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





 V\VWHPDWLFDQDO\VLVRIWKHMREVWREHSHUIRUPHG  OHDUQLQJREMHFWLYHVGHULYHGIURPWKH

DQDO\VLVWKDWGHVFULEHGHVLUHGSHUIRUPDQFHDIWHUWUDLQLQJ  WUDLQLQJGHVLJQDQGLPSOHPHQWDWLRQ

EDVHGRQWKHOHDUQLQJREMHFWLYHV  HYDOXDWLRQRIWUDLQHHPDVWHU\RIWKHREMHFWLYHVGXULQJ

WUDLQLQJDQG  HYDOXDWLRQDQGUHYLVLRQRIWKHWUDLQLQJEDVHGRQWKHSHUIRUPDQFHRIWUDLQHG

SHUVRQQHOLQWKHMREVHWWLQJ7KHUHZLOOEHDVXIILFLHQWQXPEHURILQGLYLGXDOVTXDOLILHGDV1RQ

&HUWLILHG2SHUDWRUVRU&HUWLILHG)XHO+DQGOHUVWRVWDIIWKHIDFLOLW\WZHQW\IRXUKRXUVSHUGD\

VHYHQGD\VSHUZHHN$GGLWLRQDORQVKLIWVWDIILQJZLOOEHSURYLGHGWRVDWLVI\DSSOLFDEOHVHFXULW\

ILUHSURWHFWLRQDQGHPHUJHQF\SUHSDUHGQHVVUHTXLUHPHQWV



7KH0&5ZLOOUHPDLQWKHSK\VLFDOFHQWHURIWKHFRPPDQGIXQFWLRQ+RZHYHUVLQFHFRQWURORI

DFWLYLWLHVPD\EHSHUIRUPHGHLWKHUUHPRWHO\IURPWKH0&5RUORFDOO\LQWKHSODQWWKHORFDWLRQRI

WKHFRPPDQGFHQWHULVIXQFWLRQDOO\ZKHUHWKHVKLIWPDQDJHULVORFDWHGLQDFFRUGDQFHZLWK

SURSRVHG76$FWLYLWLHVSHUIRUPHGIURPWKH0&5WKDWKDYHWKHSRWHQWLDOWRDIIHFWIRUFHG

FRROLQJRILUUDGLDWHGIXHOLQFOXGHFKDQJLQJWKHHOHFWULFDOSRZHUGLVWULEXWLRQV\VWHPDOLJQPHQW



,UUDGLDWHGIXHOKDQGOLQJDFWLYLWLHVLQFOXGLQJVWDUWLQJDQGVWRSSLQJVSHQWIXHOFRROLQJZDWHUSXPSV

DUHSHUIRUPHGORFDOO\LQWKH)XHO+DQGOLQJ%XLOGLQJ,QGLFDWLRQVDQGRUDODUPVDUHDOVRUHFHLYHG

ORFDOO\DQGLQWKH0&5WKDWZRXOGEHLQGLFDWLYHRIVSHQWIXHOSRRODEQRUPDOLWLHV7KHVKLIW

PDQDJHULVUHVSRQVLEOHIRUGLUHFWLQJUHVSRQVHWRWKRVHDEQRUPDOLWLHVIURPHLWKHUWKH0&5RU

ORFDOO\LQDFFRUGDQFHZLWKDSSOLFDEOHUHVSRQVHSURFHGXUHV



)RUDQ\FRQGLWLRQLQFLGHQWRUHYHQWWKDWRFFXUVZKHQD1RQ&HUWLILHG2SHUDWRULVLQWKH0&5

DORQHDQGLVQRWZLWKLQWKHVFRSHRIWKHLUTXDOLILFDWLRQVWKHVKLIWPDQDJHUZLOOEHLPPHGLDWHO\

FRQWDFWHGIRUGLUHFWLRQE\SKRQHUDGLRDQGRUSODQWSDJHV\VWHP7KLVSKLORVRSK\LVGHHPHG

DFFHSWDEOHEHFDXVHWKHQHFHVVLW\WRUHQGHULPPHGLDWHDFWLRQVWRSURWHFWWKHKHDOWKDQGVDIHW\

RIWKHSXEOLFLVQRWFKDOOHQJHG



76D+/-7KLV76VHFWLRQUHTXLUHVDWRWDORIWKUHHQRQOLFHQVHGRSHUDWRUVEHDVVLJQHGIRUWKH

WZRXQLWVLQDOOFRQGLWLRQV7KLVUHTXLUHPHQWLVEHLQJGHOHWHGWRUHIOHFWSHUPDQHQWO\GHIXHOHG

UHDFWRUV



76DLVEHLQJUHSODFHGE\DQHZUHTXLUHPHQWIRUHDFKRQGXW\VKLIWWREHFRPSRVHGRID

PLQLPXPVKLIWFUHZFRPSRVLWLRQRIDWOHDVWRQHVKLIWPDQDJHUDQGWZR1RQ&HUWLILHG2SHUDWRUV

7KH1RQ&HUWLILHG2SHUDWRUSRVLWLRQPD\EHILOOHGE\HLWKHUD1RQ&HUWLILHG2SHUDWRURUE\D

&HUWLILHG)XHO+DQGOHU6LQFHSODQWRSHUDWLRQVFDQQRWUHFXUDW%\URQRQFHWKHFHUWLILFDWLRQV

UHTXLUHGE\&)5 D  DUHVXEPLWWHGWRWKH15&WKHPLQLPXPVWDIILQJUHTXLUHPHQWLV

FKDQJHGWRDPLQLPXPFUHZFRPSOLPHQWRIRQHVKLIWPDQDJHUDQGWZR1RQ&HUWLILHG2SHUDWRUV

7KHQXPEHUDQGFRPSOH[LW\RIRSHUDWLQJV\VWHPVRIDQRSHUDWLQJSODQWZLOOEHUHGXFHGWRWKH

V\VWHPVUHTXLUHGWRSURYLGHDQGVXSSRUW6)3FRROLQJ7KHQHZSURSRVHGFUHZFRPSOLPHQWLV

VXIILFLHQWWRPRQLWRU6)3SDUDPHWHUVVXFKDVSRROOHYHODQGWHPSHUDWXUHZKLOHPDLQWDLQLQJWKH

DELOLW\WRHQVXUHLUUDGLDWHGIXHOKDQGOLQJRSHUDWLRQVDUHFDUULHGRXWLQDVDIHPDQQHU0RUHRYHU

WKHVSHFWUXPRIFUHGLEOHDFFLGHQWVDQGRSHUDWLRQDOHYHQWVDQGWKHTXDQWLW\DQGFRPSOH[LW\RI

DFWLYLWLHVUHTXLUHGIRUVDIHW\KDYHEHHQJUHDWO\UHGXFHGIURPWKDWDWDQRSHUDWLQJSODQW7KH

VKLIWPDQDJHUVKDOOEHTXDOLILHGDVD&HUWLILHG)XHO+DQGOHULQDFFRUGDQFHZLWKSURSRVHG76

H,QWKLVSRVLWLRQWKLVLQGLYLGXDOZLOOUHWDLQFRPPDQGDQGFRQWUROUHVSRQVLELOLW\IRU

RSHUDWLRQDOGHFLVLRQVDQGZLOOEHUHVSRQVLEOHIRUWKHIXQFWLRQVUHTXLUHGIRUHYHQWUHSRUWLQJDQG

HPHUJHQF\UHVSRQVH



3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





76E+/-7KLV76VHFWLRQDGGUHVVHVWKHFRQGLWLRQVXQGHUZKLFKWKHPLQLPXPVKLIW

FRPSOLPHQWPD\EHUHGXFHGGXHWRXQH[SHFWHGFLUFXPVWDQFHV,WDOORZVIRUVKLIWFUHZ

FRPSRVLWLRQWREHOHVVWKDQWKHPLQLPXPUHTXLUHPHQWRI&)5 P  L DQG76D

DQGIIRUDSHULRGRIWLPHQRWWRH[FHHGKRXUVLQRUGHUWRDFFRPPRGDWHXQH[SHFWHG

DEVHQFHRIRQGXW\VKLIWFUHZPHPEHUVSURYLGHGLPPHGLDWHDFWLRQLVWDNHQWRUHVWRUHWKHVKLIW

FUHZFRPSRVLWLRQWRZLWKLQWKHPLQLPXPUHTXLUHPHQWV



7KLV76VHFWLRQLVEHLQJUHYLVHGWRUHPRYHUHIHUHQFHVWR&)5 P  L DQG766HFWLRQ

I2QFHWKHFHUWLILFDWLRQVUHTXLUHGE\&)5 D  KDYHEHHQVXEPLWWHGWKH

UHTXLUHPHQWVRI&)5 P ZLOOQRORQJHUEHDSSOLFDEOHEHFDXVHWKH%\URQ&)5

OLFHQVHVZLOOQRORQJHUDXWKRUL]HRSHUDWLRQRIWKHUHDFWRUVRUHPSODFHPHQWRUUHWHQWLRQRIIXHOLQ

WKHUHDFWRUYHVVHOV7KHVHFHUWLILFDWLRQVDOVRREYLDWHQHHGIRUWKHRSHUDWRUV OLFHQVHVVSHFLILHG

LQ&)5DQGWKHUHTXLUHPHQWVIRUWKH6KLIW7HFKQLFDO$GYLVRU 67$ SRVLWLRQGLVFXVVHGLQ

766HFWLRQI$GGLWLRQDOSURYLVLRQVDUHDGGHGWRHQVXUHWKDWVKLIWFUHZFRPSRVLWLRQLVQRW

EHORZWKHPLQLPXPUHTXLUHPHQWVZKHQWKHPRYHPHQWRILUUDGLDWHGIXHOLVLQSURJUHVVRU

PRYHPHQWRIORDGVRYHULUUDGLDWHGIXHOLVLQSURJUHVV7KLVSURYLVLRQGRHVQRWSHUPLWDQ\VKLIW

FUHZSRVLWLRQWREHXQVWDIIHGGXULQJVKLIWFKDQJHGXHWRWKHDEVHQFHRUWDUGLQHVVRIWKH

RQFRPLQJVKLIWFUHZPHPEHU



76F+/-7KLV76VHFWLRQHVWDEOLVKHVWKHUHTXLUHPHQWIRUDUDGLDWLRQSURWHFWLRQWHFKQLFLDQWR

EHRQVLWHZKHQIXHOLVLQWKHUHDFWRUV7KLV76VHFWLRQDOVRDOORZVIRUWKHSRVLWLRQWREHYDFDQW

IRUQRWPRUHWKDQKRXUVLQRUGHUWRSURYLGHIRUXQH[SHFWHGDEVHQFHSURYLGHGLPPHGLDWH

DFWLRQLVWDNHQWRILOOWKHUHTXLUHGSRVLWLRQ



7RUHIOHFWDSHUPDQHQWO\GHIXHOHGFRQGLWLRQWKLVUHTXLUHPHQWLVEHLQJPRGLILHGWRUHTXLUHD

UDGLDWLRQSURWHFWLRQWHFKQLFLDQWREHSUHVHQWRQVLWHGXULQJWKHPRYHPHQWRILUUDGLDWHGIXHODQG

GXULQJPRYHPHQWRIORDGVRYHULUUDGLDWHGIXHO)ROORZLQJVXEPLWWDORIWKHFHUWLILFDWLRQVRI

SHUPDQHQWUHPRYDORIIXHOIURPWKHUHDFWRUYHVVHOVWRWKH6)3IXHOZLOOQRORQJHUEHSHUPLWWHG

WREHSODFHGRUUHWDLQHGLQWKHYHVVHOV7KHPRGLILHG76UHIOHFWWKRVHUHPDLQLQJDFWLYLWLHVZKHUH

TXDOLILHGUDGLDWLRQSURWHFWLRQWHFKQLFLDQVDUHUHTXLUHGWREHSUHVHQW



76G+/-7KLV76VHFWLRQSUHYLRXVO\GHOHWHGKDVEHHQUHYLVHGWRHVWDEOLVKWKHUHTXLUHPHQW

IRURYHUVLJKWRILUUDGLDWHGIXHOKDQGOLQJRSHUDWLRQVLQWKH6)3WREHSHUIRUPHGE\D&HUWLILHG

)XHO+DQGOHU2YHUVLJKWRILUUDGLDWHGIXHOKDQGOLQJRSHUDWLRQVLQGLFDWHVWKDWWKHUHVSRQVLEOH

&HUWLILHG)XHO+DQGOHUZLOODXWKRUL]HFRPPHQFHPHQWRILUUDGLDWHGIXHOKDQGOLQJDFWLYLWLHV

PRQLWRUWKHSURJUHVVRILUUDGLDWHGIXHOPRYHPHQWVDQGWDNHDSSURSULDWHDFWLRQVLQUHVSRQVHWR

HPHUJHQFLHV,UUDGLDWHGIXHOPRYHVDQGORDGPRYHVWKDWFRXOGDIIHFWWKHVDIHKDQGOLQJDQG

VWRUDJHRILUUDGLDWHGIXHOZRXOGEHDSSURYHGE\WKHVKLIWPDQDJHU3URSRVHG766HFWLRQH

UHTXLUHVWKHVKLIWPDQDJHUWREHD&HUWLILHG)XHO+DQGOHU



76H+/-7KLV76VHFWLRQHVWDEOLVKHVWKHUHTXLUHPHQWIRUWKHRSHUDWLRQVPDQDJHURUWKH

VXSHUYLVRULQFKDUJHRIWKHRSHUDWLRQVVKLIWFUHZVWRKROGD6HQLRU5HDFWRU2SHUDWRU 652 

OLFHQVH



7KLV76VHFWLRQLVEHLQJGHOHWHGDQGUHSODFHGZLWKWKHUHTXLUHPHQWWKDWWKHVKLIWPDQDJHUVKDOO

EHD&HUWLILHG)XHO+DQGOHU2QFHWKHFHUWLILFDWLRQVUHTXLUHGE\&)5 D  KDYHEHHQ

VXEPLWWHGWKHUHTXLUHPHQWVRI&)5 P ZLOOQRORQJHUEHDSSOLFDEOHEHFDXVHWKH%\URQ

&)5OLFHQVHVZLOOQRORQJHUDXWKRUL]HRSHUDWLRQRIWKHUHDFWRUVRUHPSODFHPHQWRU

UHWHQWLRQRIIXHOLQWKHUHDFWRUYHVVHOV7KHVHFHUWLILFDWLRQVDOVRREYLDWHWKHQHHGIRUWKH

3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





RSHUDWRUV OLFHQVHVVSHFLILHGLQ&)57KHUHIRUHWKHUHLVQRORQJHUDQHHGIRURSHUDWLRQV

PDQDJHPHQWVWDIIWRKROGDQ652OLFHQVH



7KLVUHYLVHGUHTXLUHPHQWHQVXUHVWKDWWKHVHQLRULQGLYLGXDORQVKLIWLVDSSURSULDWHO\WUDLQHGDQG

TXDOLILHGLQDFFRUGDQFHZLWKDQ15&DSSURYHG&HUWLILHG)XHO+DQGOHUWUDLQLQJDQGUHWUDLQLQJ

SURJUDPWRVXSHUYLVHVKLIWDFWLYLWLHV7KH%\URQPDQDJHPHQWVWUXFWXUHZLOOQRWUHTXLUH

SRVLWLRQVDERYHWKHVKLIWPDQDJHUWREHD&HUWLILHG)XHO+DQGOHURUDWWHQGHTXLYDOHQWWUDLQLQJ

([HORQKDVGHWHUPLQHGWKDWRQFHWKHSODQWLVSHUPDQHQWO\VKXWGRZQDQGGHIXHOHGWKHWLPH

DYDLODEOHWRPLWLJDWHFUHGLEOHHYHQWVLVH[SHFWHGWREHJUHDWHUWKDQWKDWIRUFXUUHQWGHVLJQEDVLV

HYHQWV$VVXFKPDQDJHPHQWRYHUVLJKWRIWKHSODQWFDQEHSHUIRUPHGE\LQGLYLGXDOVPHHWLQJ

WKHDSSOLFDEOHUHTXLUHPHQWVRIWKH([HORQ'HFRPPLVVLRQLQJ4XDOLW\$VVXUDQFH3URJUDP



76I+/-7KLV76VHFWLRQHVWDEOLVKHVWKHUHTXLUHPHQWVIRUWKH6KLIW7HFKQLFDO$GYLVRU 67$ 

SRVLWLRQ



76ILVGHOHWHGWRUHPRYHWKHUHTXLUHPHQWVIRUWKH67$VLQFHWKDWSRVLWLRQLVRQO\UHTXLUHG

IRUDSODQWDXWKRUL]HGIRUSRZHURSHUDWLRQV2QFHWKHFHUWLILFDWLRQVUHTXLUHGE\&)5

 D  KDYHEHHQVXEPLWWHGWKHUHTXLUHPHQWVRIWKLV76VHFWLRQZLOOQRORQJHUEH

DSSOLFDEOHEHFDXVHWKH%\URQ&)5OLFHQVHVZLOOQRORQJHUDXWKRUL]HRSHUDWLRQRIWKH

UHDFWRUVRUHPSODFHPHQWRUUHWHQWLRQRIIXHOLQWKHUHDFWRUYHVVHOV



7KLVVHFWLRQLVFKDQJHGWRUHIOHFWWKHUHTXLUHPHQWIRUKDYLQJRQHTXDOLILHGZDWFKVWDQGHU HLWKHU

D121&(57,),('23(5$725RU&(57,),(')8(/+$1'/(5 LQWKH0&5ZKHQLUUDGLDWHG

IXHOLVVWRUHGLQWKHVSHQWIXHOSRRO7KLVUHIOHFWVWKHUHGXFHGUHTXLUHPHQWIRU0&5SHUVRQQHO

WUDLQLQJDQGTXDOLILFDWLRQIRUDIDFLOLW\QRORQJHUDXWKRUL]HGWRRSHUDWH



766HFWLRQ+/-)DFLOLW\6WDII4XDOLILFDWLRQV



76+/-7KLV76VHFWLRQHVWDEOLVKHVWKDWHDFKPHPEHURIWKHIDFLOLW\VWDIIVKDOOPHHWRU

H[FHHGWKHPLQLPXPTXDOLILFDWLRQVUHIHUHQFHGIRUFRPSDUDEOHSRVLWLRQVDVVSHFLILHGLQWKH

([HORQ4XDOLW\$VVXUDQFH7RSLFDO5HSRUW



([HORQSURSRVHVWRUHYLVHWKHTXDOLILFDWLRQVUHIHUHQFHWRWKH([HORQ'HFRPPLVVLRQLQJ4XDOLW\

$VVXUDQFH3URJUDPZKLFK%\URQZLOOWUDQVLWLRQWRGXULQJWKHGHFRPPLVVLRQLQJSURFHVV



76+/-7KLV76VHFWLRQLVEHLQJDGGHGWRHVWDEOLVKWKDWDQ15&DSSURYHG&HUWLILHG)XHO

+DQGOHUWUDLQLQJDQGUHWUDLQLQJSURJUDPVKDOOEHPDLQWDLQHG7KH&HUWLILHG)XHO+DQGOHUWUDLQLQJ

DQGUHWUDLQLQJSURJUDPHQVXUHVWKDWWKHTXDOLILFDWLRQVRIIXHOKDQGOHUVDUHFRPPHQVXUDWHZLWK

WKHWDVNVWREHSHUIRUPHGDQGWKHFRQGLWLRQVUHTXLULQJUHVSRQVH&)57UDLQLQJDQG

TXDOLILFDWLRQRIQXFOHDUSRZHUSODQWSHUVRQQHOUHTXLUHVWUDLQLQJSURJUDPVWREHGHULYHGXVLQJD

6$7DVGHILQHGLQ&)5$OWKRXJKWKHUHTXLUHPHQWVRI&)5DSSO\WRKROGHUV

RIDQRSHUDWLQJOLFHQVHLVVXHGXQGHU&)5DQGWKH%\URQOLFHQVHVZLOOQRORQJHUDXWKRUL]H

RSHUDWLRQIROORZLQJVXEPLWWDORIWKHFHUWLILFDWLRQVUHTXLUHGE\&)5 D  WKH&HUWLILHG

)XHO+DQGOHUWUDLQLQJDQGUHWUDLQLQJSURJUDPDOLJQVZLWKWKRVHUHTXLUHPHQWV7KH&HUWLILHG)XHO

+DQGOHUWUDLQLQJDQGUHWUDLQLQJSURJUDPSURYLGHVFRQILGHQFHWKDWDSSURSULDWH6$7EDVHG

WUDLQLQJRISHUVRQQHOZKRZLOOSHUIRUPWKHGXWLHVRID&HUWLILHG)XHO+DQGOHULVFRQGXFWHGWR

HQVXUHWKHIDFLOLW\LVPDLQWDLQHGLQDVDIHDQGVWDEOHFRQGLWLRQ



3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





766HFWLRQ+/-3URFHGXUHV



7KLV76VHFWLRQSURYLGHVDGHVFULSWLRQRIWKHUHTXLUHPHQWVUHJDUGLQJDGPLQLVWUDWLRQRIZULWWHQ

SURFHGXUHV76ZLOOUHPDLQDSSOLFDEOHZLWKWKHUHDFWRUSHUPDQHQWO\GHIXHOHG$VVXFKLWLV

UHWDLQHGDQGUHYLVHGWRUHIOHFWDSHUPDQHQWO\GHIXHOHGFRQGLWLRQ5HOHYDQWSURFHGXUHV

GUDZLQJVDQGLQVWUXFWLRQVZLOOFRQWLQXHWREHFRQWUROOHGLQDFFRUGDQFHZLWK&)5

$SSHQGL[%&ULWHULRQ9,'RFXPHQW&RQWURO$FWLYLWLHVLQYROYLQJVHFXULW\DQGHPHUJHQF\

SODQQLQJDQGSUHSDUHGQHVVZLOOFRQWLQXHWREHFRQWUROOHGE\SURFHGXUH



76D+/-7KHDSSOLFDELOLW\RIWKLV76VHFWLRQLVEHLQJUHYLVHGWRDGGUHVVRQO\SURFHGXUHV

DSSOLFDEOHWRWKHVDIHVWRUDJHDQGKDQGOLQJRILUUDGLDWHGIXHOUHFRPPHQGHGLQ5HJXODWRU\*XLGH

5HYLVLRQ$SSHQGL[$GDWHG)HEUXDU\ 5HIHUHQFH 



7KHSURSRVHGFKDQJHUHGXFHVWKHVFRSHRIWKH76WRUHTXLULQJRQO\WKHHVWDEOLVKPHQW

LPSOHPHQWDWLRQDQGPDLQWHQDQFHRIZULWWHQSURFHGXUHVDSSOLFDEOHWRWKHVDIHVWRUDJHDQG

KDQGOLQJRILUUDGLDWHGIXHO7KLVFKDQJHUHFRJQL]HVWKHUHGXFHGUHTXLUHPHQWVDVVRFLDWHGZLWK

WKHSURWHFWLRQRIVWRUHGLUUDGLDWHGIXHODVRSSRVHGWRWKHRSHUDWLRQRIWKHQXFOHDUSRZHUSODQW



3URFHGXUHVJRYHUQLQJLUUDGLDWHGIXHOKDQGOLQJRSHUDWLRQVZLOOSURYLGHWKHJXLGDQFHQHFHVVDU\WR

HQVXUHVDIHKDQGOLQJRILUUDGLDWHGIXHOLQWKH6)3DQGWUDQVIHUIURPWKH6)3WRGU\IXHOVWRUDJH

FDVNV3URFHGXUHVJRYHUQLQJUHVSRQVHVWRIXHOKDQGOLQJDFFLGHQWVSHUVRQQHOLQMXULHV6)3

HYHQWVDQGH[WHUQDOHYHQWVSURYLGHWKHQHFHVVDU\JXLGDQFHWRPLWLJDWHWKHFRQVHTXHQFHVRI

VXFKHYHQWV



76E+/-7KLV76VHFWLRQUHTXLUHVHPHUJHQF\RSHUDWLQJSURFHGXUHVWKDWLPSOHPHQWWKH

UHTXLUHPHQWVRI185(*DQG185(*6XSSOHPHQWDVVWDWHGLQ*HQHULF

/HWWHU6HFWLRQ 5HIHUHQFH 



7KLV76VHFWLRQLVSURSRVHGWREHGHOHWHGEHFDXVH*HQHULF/HWWHUZDVRQO\DGGUHVVHGWR

OLFHQVHHVRIRSHUDWLQJUHDFWRUVDSSOLFDQWVIRURSHUDWLQJOLFHQVHVDQGKROGHUVRIFRQVWUXFWLRQ

SHUPLWVQRQHRIZKLFKZLOODSSO\WR%\URQLQWKHSHUPDQHQWO\GHIXHOHGFRQGLWLRQ,QDGGLWLRQ

WKHHPHUJHQF\RSHUDWLQJSURFHGXUHVGLVFXVVHGWKHUHLQRQO\SHUWDLQWRDFFLGHQWVDQGHYHQWV

UHVXOWLQJIURPUHDFWRURSHUDWLRQ7KHUHIHUHQFHGSURFHGXUHVZLOOQRORQJHUEHUHTXLUHGIRUD

SHUPDQHQWO\VKXWGRZQDQGGHIXHOHGUHDFWRU$VGLVFXVVHGDERYHSURFHGXUHVJRYHUQLQJWKH

VLWHUHVSRQVHWRDFFLGHQWVHYHQWVDQGLQMXULHVZLOOSURYLGHWKHQHFHVVDU\JXLGDQFHWRPLWLJDWH

WKHFRQVHTXHQFHVRIVXFKHYHQWV



7KHUHDUHQRFKDQJHVSURSRVHGWR76FRU76G





 5(*8/$725<(9$/8$7,21



 $SSOLFDEOH5HJXODWRU\5HTXLUHPHQWV&ULWHULD



7KHSURSRVHGFKDQJHVKDYHEHHQHYDOXDWHGWRGHWHUPLQHZKHWKHUDSSOLFDEOHUHJXODWLRQVDQG

UHTXLUHPHQWVFRQWLQXHWREHPHW([HORQKDVGHWHUPLQHGWKDWWKHSURSRVHGFKDQJHVGRQRW

UHTXLUHDQ\H[HPSWLRQVRUUHOLHIIURPUHJXODWRU\UHTXLUHPHQWV



3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





x &)5 D  UHTXLUHVWKDWZKHQDOLFHQVHHKDVGHWHUPLQHGWRSHUPDQHQWO\FHDVH

RSHUDWLRQVWKHOLFHQVHHVKDOOZLWKLQGD\VVXEPLWDZULWWHQFHUWLILFDWLRQWRWKH15&

FRQVLVWHQWZLWKWKHUHTXLUHPHQWVRI&)5 E  DQGRQFHIXHOKDVEHHQSHUPDQHQWO\

UHPRYHGIURPWKHUHDFWRUYHVVHOVWKHOLFHQVHHVKDOOVXEPLWDZULWWHQFHUWLILFDWLRQWRWKH15&

WKDWPHHWVWKHUHTXLUHPHQWVRI&)5 E  2Q6HSWHPEHU([HORQQRWLILHG

WKH15&WKDW%\URQZRXOGSHUPDQHQWO\FHDVHRSHUDWLRQVRQRUEHIRUH6HSWHPEHU

5HIHUHQFH ([HORQUHFRJQL]HVWKDWDSSURYDORIWKHVHSURSRVHGFKDQJHVLVFRQWLQJHQW

XSRQWKHVXEPLWWDORIWKHFHUWLILFDWLRQVUHTXLUHGE\&)5 D  



x &)5 D  UHTXLUHVVXEPLWWDORIWKHFHUWLILFDWLRQVIRUSHUPDQHQWFHVVDWLRQRI

RSHUDWLRQVDQGSHUPDQHQWUHPRYDORIIXHOIURPWKHUHDFWRUYHVVHOVRUZKHQDILQDOOHJDOO\

HIIHFWLYHRUGHUWRSHUPDQHQWO\FHDVHRSHUDWLRQVKDVFRPHLQWRHIIHFWWKH&)5

OLFHQVHVQRORQJHUDXWKRUL]HRSHUDWLRQRIWKHUHDFWRURUHPSODFHPHQWRUUHWHQWLRQRIIXHOLQWR

WKHUHDFWRUYHVVHOV



x &)57HFKQLFDOVSHFLILFDWLRQVSDUDJUDSK F  LGHQWLILHVLQSDUWWKDWDQ

DGPLQLVWUDWLYHFRQWUROVVHFWLRQVKDOOEHLQFOXGHGLQWKH76DQGVKDOOLQFOXGHSURYLVLRQV

UHODWLQJWRRUJDQL]DWLRQDQGPDQDJHPHQWSURFHGXUHVUHFRUGNHHSLQJUHYLHZDQGDXGLWDQG

UHSRUWLQJQHFHVVDU\WRDVVXUHRSHUDWLRQRIWKHIDFLOLW\LQDVDIHPDQQHU7KHSURSRVHG

FKDQJHVWRWKH$GPLQLVWUDWLYH&RQWUROVVHFWLRQZLWKFRQIRUPLQJFKDQJHVSURSRVHGWR

DGGLWLRQDOVHFWLRQVDUHFRQVLVWHQWZLWKWKHSHQGLQJGHFRPPLVVLRQLQJVWDWXVRIWKHSODQW

7KLVUHTXHVWDSSOLHVWKHSULQFLSOHVLGHQWLILHGLQ&)5 F  'HFRPPLVVLRQLQJIRU

DIDFLOLW\WKDWKDVVXEPLWWHGFHUWLILFDWLRQVUHTXLUHGE\&)5 D  DQGSURSRVHV

FKDQJHVWRWKH$GPLQLVWUDWLYH&RQWUROVDSSURSULDWHIRUWKH%\URQSHUPDQHQWO\GHIXHOHG

FRQGLWLRQ$V&)5 F  VWDWHVLQSDUW76LQYROYLQJDGPLQLVWUDWLYHFRQWUROVZLOOEH

GHYHORSHGRQDFDVHE\FDVHEDVLV



x &)5&RQGLWLRQVRIOLFHQVHVGLVFXVVHVLQSDUWWKHFRQGLWLRQVLQHYHU\QXFOHDU

SRZHUUHDFWRURSHUDWLQJOLFHQVHLVVXHGXQGHU&)56HFWLRQ P WR&)5

GLVFXVVHVUHDFWRURSHUDWRUVDQGVHQLRUUHDFWRURSHUDWRUV 652V OLFHQVHGXQGHU&)5

  • LYHQWKHLPSHQGLQJSHUPDQHQWFHVVDWLRQRIRSHUDWLRQIRU%\URQWKHUHTXLUHPHQWVRIWKLV

VHFWLRQZLOOQRORQJHUDSSO\RQFHWKHFHUWLILFDWLRQVUHTXLUHGE\&)5 D  KDYH

EHHQVXEPLWWHGDQGLWZLOOEHSHUPLVVLEOHWRUHPRYHWKRVHSRVLWLRQVIURPWKH76



x 185(*6WDQGDUG5HYLHZ3ODQIRUWKH5HYLHZRI6DIHW\$QDO\VLV5HSRUWVIRU1XFOHDU

3RZHU3ODQWV/:5(GLWLRQ&KDSWHU&RQGXFWRI2SHUDWLRQV6HFWLRQ

5HYLVLRQ1RQ/LFHQVHG3ODQW6WDII7UDLQLQJGDWHG$XJXVW 15&$FFHVVLRQ1R

0/$ SURYLGHVJXLGDQFHIRUWKH15&UHYLHZRIWUDLQLQJSURJUDPVIRUQRQOLFHQVHG

SODQWVWDII



x 185(*6WDQGDUG7HFKQLFDO6SHFLILFDWLRQV:HVWLQJKRXVH3ODQWV5HYLVLRQ

9ROXPH6SHFLILFDWLRQVGDWHG$SULO 15&$FFHVVLRQ1R0/$ DUHWKH

6WDQGDUG7HFKQLFDO6SHFLILFDWLRQVIRU:HVWLQJKRXVHSODQWVWKDWSURYLGHFRQVLVWHQF\LQWKH

XVDJHRIDSSOLFDEOHZRUGV



x 185(*3URSRVHG6WDQGDUG7HFKQLFDO6SHFLILFDWLRQVIRU3HUPDQHQWO\'HIXHOHG

HVWLQJKRXVH3ODQWV'UDIW5HSRUWIRU&RPPHQWGDWHG0DUFK 15&$FFHVVLRQ1R

0/ SURYLGHVH[DPSOHVRI76WKDWWKH15&IRXQGDFFHSWDEOHGXULQJSUHYLRXV

76UHYLHZVIRUSHUPDQHQWO\VKXWGRZQDQGGHIXHOHGUHDFWRUV

3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV







 1R6LJQLILFDQW+D]DUGV&RQVLGHUDWLRQ



([HORQ*HQHUDWLRQ&RPSDQ\//& ([HORQ UHTXHVWVDPHQGPHQWVWRWKH7HFKQLFDO

6SHFLILFDWLRQV 76 RI5HQHZHG)DFLOLW\2SHUDWLQJ/LFHQVHV1RV13)DQG13)IRU%\URQ

6WDWLRQ8QLWVDQG %\URQ 



7KHSURSRVHGFKDQJHVZRXOGDGGUHYLVHDQGRUUHPRYHFHUWDLQUHTXLUHPHQWVFRQWDLQHGZLWKLQ

6HFWLRQ'HILQLWLRQVDQG6HFWLRQ$GPLQLVWUDWLYH&RQWUROVRIWKH%\URQ767KH76

UHTXLUHPHQWVEHLQJFKDQJHGZRXOGQRWEHDSSOLFDEOHXQWLOWKH&HUWLILHG)XHO+DQGOHU7UDLQLQJ

DQG5HWUDLQLQJ3URJUDPLVDSSURYHGE\WKH15&DQGWKHFHUWLILFDWLRQVUHTXLUHGE\&)5

 D  KDYHEHHQVXEPLWWHG2QFHWKHFHUWLILFDWLRQVIRUSHUPDQHQWFHVVDWLRQRIRSHUDWLRQV

DQGSHUPDQHQWUHPRYDORIIXHODUHVXEPLWWHGWRWKH15&WKH&)5OLFHQVHVIRU%\URQZLOO

QRORQJHUDXWKRUL]HRSHUDWLRQRIWKHUHDFWRUVRUHPSODFHPHQWRUUHWHQWLRQRIIXHOLQWKHUHDFWRU

YHVVHOVLQDFFRUGDQFHZLWK&)5 D  



([HORQKDVHYDOXDWHGZKHWKHURUQRWDVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQLVLQYROYHGZLWKWKH

SURSRVHGDPHQGPHQWVE\IRFXVLQJRQWKHWKUHHVWDQGDUGVVHWIRUWKLQ&)5,VVXDQFH

RIDPHQGPHQWDVGLVFXVVHGEHORZ



 'RHVWKHSURSRVHGDPHQGPHQWLQYROYHDVLJQLILFDQWLQFUHDVHLQWKHSUREDELOLW\RU

FRQVHTXHQFHVRIDQDFFLGHQWSUHYLRXVO\HYDOXDWHG"



5HVSRQVH1R



7KHSURSRVHGFKDQJHVZRXOGQRWWDNHHIIHFWXQWLO%\URQKDVSHUPDQHQWO\FHDVHGRSHUDWLRQ

DQGFHUWLILHGDSHUPDQHQWO\GHIXHOHGFRQGLWLRQ7KHSURSRVHGFKDQJHVZRXOGUHYLVHWKH

%\URQ76E\GHOHWLQJRUPRGLI\LQJFHUWDLQSRUWLRQVRIWKH76DGPLQLVWUDWLYHFRQWUROV

GHVFULEHGLQ6HFWLRQRIWKH76WKDWDUHQRORQJHUDSSOLFDEOHWRDSHUPDQHQWO\VKXWGRZQ

DQGGHIXHOHGIDFLOLW\$GGLWLRQDOO\WKHWHUPV&HUWLILHG)XHO+DQGOHUDQG1RQ&HUWLILHG

2SHUDWRUZRXOGEHDGGHGWR6HFWLRQRIWKH76WRGHILQHWKHVHSRVLWLRQVWKDWDUH

DSSOLFDEOHWRDSHUPDQHQWO\VKXWGRZQDQGGHIXHOHGIDFLOLW\7KHVHFKDQJHVDUH

DGPLQLVWUDWLYHLQQDWXUH



7KHSURSRVHGFKDQJHVGRQRWLQYROYHDQ\SK\VLFDOFKDQJHVWRSODQWVWUXFWXUHVV\VWHPV

DQGFRPSRQHQWV 66&V RUWKHPDQQHULQZKLFK66&VDUHRSHUDWHGPDLQWDLQHGPRGLILHG

WHVWHGRULQVSHFWHG7KHSURSRVHGFKDQJHVGRQRWLQYROYHDFKDQJHWRDQ\VDIHW\OLPLWV

OLPLWLQJVDIHW\V\VWHPVHWWLQJVOLPLWLQJFRQWUROVHWWLQJVOLPLWLQJFRQGLWLRQVIRURSHUDWLRQ

VXUYHLOODQFHUHTXLUHPHQWVRUGHVLJQIHDWXUHV



7KHFKDQJHVGRQRWGLUHFWO\DIIHFWWKHGHVLJQRI66&VQHFHVVDU\IRUVDIHVWRUDJHRI

LUUDGLDWHGIXHORUWKHPHWKRGVXVHGIRUKDQGOLQJDQGVWRUDJHRIVXFKIXHOLQWKHVSHQWIXHO

SRRO 6)3 7KHSURSRVHGFKDQJHVDUHDGPLQLVWUDWLYHLQQDWXUHDQGGRQRWDIIHFWDQ\

DFFLGHQWVDSSOLFDEOHWRWKHVDIHPDQDJHPHQWRILUUDGLDWHGIXHORUWKHSHUPDQHQWO\

VKXWGRZQDQGGHIXHOHGFRQGLWLRQRIWKHUHDFWRUV



7KHUHIRUHWKHSURSRVHGFKDQJHVGRQRWLQYROYHDVLJQLILFDQWLQFUHDVHLQWKHSUREDELOLW\RU

FRQVHTXHQFHRIDQDFFLGHQWSUHYLRXVO\HYDOXDWHG



3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





 'RHVWKHSURSRVHGDPHQGPHQWFUHDWHWKHSRVVLELOLW\RIDQHZRUGLIIHUHQWNLQGRI

DFFLGHQWIURPDQ\DFFLGHQWSUHYLRXVO\HYDOXDWHG"



5HVSRQVH1R



7KHSURSRVHGFKDQJHVWRWKH76GHILQLWLRQVDQGDGPLQLVWUDWLYHFRQWUROVKDYHQRLPSDFWRQ

IDFLOLW\66&VDIIHFWLQJWKHVDIHVWRUDJHRILUUDGLDWHGIXHORURQWKHPHWKRGVRIRSHUDWLRQRI

VXFK66&VRURQWKHDFWXDOKDQGOLQJDQGVWRUDJHRILUUDGLDWHGIXHO7KHSURSRVHG

FKDQJHVGRQRWUHVXOWLQGLIIHUHQWRUPRUHDGYHUVHIDLOXUHPRGHVRUDFFLGHQWVWKDQ

SUHYLRXVO\HYDOXDWHGEHFDXVHWKHUHDFWRUVZLOOEHSHUPDQHQWO\VKXWGRZQDQGGHIXHOHGDQG

([HORQZLOOQRORQJHUEHDXWKRUL]HGWRRSHUDWHWKHUHDFWRUV



7KHSURSRVHGFKDQJHVGRQRWDIIHFWV\VWHPVFUHGLWHGLQWKHDFFLGHQWDQDO\VHVDW%\URQ

7KHSURSRVHGFKDQJHVZLOOFRQWLQXHWRUHTXLUHSURSHUFRQWURODQGPRQLWRULQJRIVDIHW\

VLJQLILFDQWSDUDPHWHUVDQGDFWLYLWLHV



7KHSURSRVHGFKDQJHVGRQRWUHVXOWLQDQ\QHZPHFKDQLVPVWKDWFRXOGLQLWLDWHGDPDJHWR

WKHUHPDLQLQJUHOHYDQWVDIHW\EDUULHUVLQVXSSRUWRIPDLQWDLQLQJWKHSODQWLQDSHUPDQHQWO\

VKXWGRZQDQGGHIXHOHGFRQGLWLRQ HJIXHOFODGGLQJDQG6)3FRROLQJ 6LQFHH[WHQGHG

RSHUDWLRQLQDGHIXHOHGFRQGLWLRQZLOOEHWKHRQO\RSHUDWLRQDOORZHGDQGWKHUHIRUHERXQGHG

E\WKHH[LVWLQJDQDO\VHVVXFKDFRQGLWLRQGRHVQRWFUHDWHWKHSRVVLELOLW\RIDQHZRU

GLIIHUHQWNLQGRIDFFLGHQW



7KHSURSRVHGFKDQJHVGRQRWDOWHUWKHSURWHFWLRQV\VWHPGHVLJQFUHDWHQHZIDLOXUH

PRGHVRUFKDQJHDQ\PRGHVRIRSHUDWLRQ7KHSURSRVHGFKDQJHVGRQRWLQYROYHD

SK\VLFDODOWHUDWLRQRIWKHSODQWDQGQRQHZRUGLIIHUHQWNLQGRIHTXLSPHQWZLOOEHLQVWDOOHG

&RQVHTXHQWO\WKHUHDUHQRQHZLQLWLDWRUVWKDWFRXOGUHVXOWLQDQHZRUGLIIHUHQWNLQGRI

DFFLGHQW



7KHUHIRUHWKHSURSRVHGFKDQJHVGRQRWFUHDWHWKHSRVVLELOLW\RIDQHZRUGLIIHUHQWNLQGRI

DFFLGHQWIURPDQ\DFFLGHQWSUHYLRXVO\HYDOXDWHG



 'RHVWKHSURSRVHGDPHQGPHQWLQYROYHDVLJQLILFDQWUHGXFWLRQLQDPDUJLQRIVDIHW\"



5HVSRQVH1R



7KHSURSRVHGFKDQJHVLQYROYHGHOHWLQJDQGRUPRGLI\LQJFHUWDLQ76DGPLQLVWUDWLYHFRQWUROV

RQFHWKH%\URQIDFLOLW\KDVEHHQSHUPDQHQWO\VKXWGRZQDQGGHIXHOHG$VVSHFLILHGLQ

&)5 D  WKH&)5OLFHQVHVIRU%\URQZLOOQRORQJHUDXWKRUL]HRSHUDWLRQRI

WKHUHDFWRUVRUHPSODFHPHQWRUUHWHQWLRQRIIXHOLQWRWKHUHDFWRUYHVVHOVIROORZLQJVXEPLWWDO

RIWKHFHUWLILFDWLRQVUHTXLUHGE\&)5 D  $VDUHVXOWWKHRFFXUUHQFHRIFHUWDLQ

GHVLJQEDVLVSRVWXODWHGDFFLGHQWVLVQRORQJHUFRQVLGHUHGFUHGLEOHZKHQWKHUHDFWRUVDUH

SHUPDQHQWO\GHIXHOHG



7KHSURSRVHGFKDQJHVDUHOLPLWHGWRWKRVHSRUWLRQVRIWKHDGPLQLVWUDWLYH76VWKDWDUH

UHODWHGWRWKHVDIHVWRUDJHDQGKDQGOLQJRILUUDGLDWHGIXHO7KHSURSRVHG76FKDQJHVGR

QRWDIIHFWSODQWGHVLJQKDUGZDUHV\VWHPRSHUDWLRQRUSURFHGXUHVIRUDFFLGHQWPLWLJDWLRQ

V\VWHPV7KHUHLVQRFKDQJHLQWKHHVWDEOLVKHGVDIHW\PDUJLQVIRUWKHVHV\VWHPV7KH

UHTXLUHPHQWVWKDWDUHSURSRVHGWREHDGGHGUHYLVHGDQGRUGHOHWHGIURPWKH%\URQ76DUH

3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV





QRWFUHGLWHGLQWKHH[LVWLQJDFFLGHQWDQDO\VLVIRUWKHDSSOLFDEOHSRVWXODWHGDFFLGHQWV

WKHUHIRUHWKH\GRQRWFRQWULEXWHWRWKHPDUJLQRIVDIHW\DVVRFLDWHGZLWKWKHDFFLGHQW

DQDO\VLV&HUWDLQSRVWXODWHGGHVLJQEDVLVDFFLGHQWVLQYROYLQJWKHUHDFWRUVDUHQRORQJHU

SRVVLEOHEHFDXVHWKHUHDFWRUVZLOOEHSHUPDQHQWO\VKXWGRZQDQGGHIXHOHGDQG([HORQZLOO

QRORQJHUEHDXWKRUL]HGWRRSHUDWHWKHUHDFWRUV



7KHUHIRUHWKHSURSRVHGFKDQJHVGRQRWLQYROYHDVLJQLILFDQWUHGXFWLRQLQWKHPDUJLQRI

VDIHW\



%DVHGRQWKHDERYH([HORQFRQFOXGHVWKDWWKHSURSRVHGDPHQGPHQWVGRQRWLQYROYHD

VLJQLILFDQWKD]DUGVFRQVLGHUDWLRQXQGHUWKHVWDQGDUGVVHWIRUWKLQ&)5 F DQG

DFFRUGLQJO\DILQGLQJRIQRVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQLVMXVWLILHG



 &RQFOXVLRQ



,QFRQFOXVLRQEDVHGRQWKHFRQVLGHUDWLRQVGLVFXVVHGDERYH WKHUHLVUHDVRQDEOHDVVXUDQFH

WKDWWKHKHDOWKDQGVDIHW\RIWKHSXEOLFZLOOQRWEHHQGDQJHUHGE\RSHUDWLRQLQWKHSURSRVHG

PDQQHU VXFKDFWLYLWLHVZLOOEHFRQGXFWHGLQFRPSOLDQFHZLWKWKH&RPPLVVLRQ VUHJXODWLRQV

DQG WKHLVVXDQFHRIWKHDPHQGPHQWVZLOOQRWEHLQLPLFDOWRWKHFRPPRQGHIHQVHDQGVHFXULW\

RUWRWKHKHDOWKDQGVDIHW\RIWKHSXEOLF





 (19,5210(17$/&216,'(5$7,21



7KHSURSRVHGDPHQGPHQWLQYROYHVDGGLQJGHOHWLQJRUPRGLI\LQJFHUWDLQ76DGPLQLVWUDWLYH

FRQWUROVLQVXSSRUWRISURSRVHGGHFRPPLVVLRQLQJHIIRUWVWRUHIOHFWWKHSHUPDQHQWO\VKXWGRZQ

DQGGHIXHOHGFRQGLWLRQDW%\URQ$UHYLHZKDVGHWHUPLQHGWKDWWKHSURSRVHGDPHQGPHQWZRXOG

FKDQJHDUHTXLUHPHQWZLWKUHVSHFWWRLQVWDOODWLRQRUXVHRIDIDFLOLW\FRPSRQHQWORFDWHGZLWKLQ

WKHUHVWULFWHGDUHDDVGHILQHGLQ&)5RUZRXOGFKDQJHDQLQVSHFWLRQRUVXUYHLOODQFH

UHTXLUHPHQW+RZHYHUWKHSURSRVHGFKDQJHVGRQRWLQYROYH L DVLJQLILFDQWKD]DUGV

FRQVLGHUDWLRQ LL DVLJQLILFDQWFKDQJHLQWKHW\SHVRUDVLJQLILFDQWLQFUHDVHLQWKHDPRXQWVRI

DQ\HIIOXHQWWKDWPD\EHUHOHDVHGRIIVLWHRU LLL DVLJQLILFDQWLQFUHDVHLQLQGLYLGXDORUFXPXODWLYH

RFFXSDWLRQDOUDGLDWLRQH[SRVXUH$FFRUGLQJO\WKHSURSRVHGDPHQGPHQWVPHHWWKHHOLJLELOLW\

FULWHULRQIRUFDWHJRULFDOH[FOXVLRQVHWIRUWKLQ&)5 F  7KHUHIRUHSXUVXDQWWR

&)5 E QRHQYLURQPHQWDOLPSDFWVWDWHPHQWRUHQYLURQPHQWDODVVHVVPHQWQHHGEH

SUHSDUHGLQFRQQHFWLRQZLWKWKHSURSRVHGDPHQGPHQWV





 5()(5(1&(6



 /HWWHUIURP-%UDGOH\)HZHOO ([HORQ*HQHUDWLRQ&RPSDQ\//& WR861XFOHDU

5HJXODWRU\&RPPLVVLRQ&HUWLILFDWLRQRI3HUPDQHQW&HVVDWLRQRI3RZHU2SHUDWLRQVIRU

%\URQ6WDWLRQ8QLWVDQGGDWHG6HSWHPEHU 15&$FFHVVLRQ1R

0/* 



 /HWWHUIURP3DWULFN56LPSVRQ ([HORQ*HQHUDWLRQ&RPSDQ\//& WR861XFOHDU

5HJXODWRU\&RPPLVVLRQ5HTXHVWIRU$SSURYDORI&HUWLILHG)XHO+DQGOHU7UDLQLQJDQG

5HWUDLQLQJ3URJUDPIRU%\URQ6WDWLRQ8QLWVDQGDQG'UHVGHQ1XFOHDU3RZHU

6WDWLRQ8QLWVDQGGDWHG6HSWHPEHU

3DJHRI



$77$&+0(17

(YDOXDWLRQRI3URSRVHG&KDQJHV







 185(*9ROXPH6WDQGDUG7HFKQLFDO6SHFLILFDWLRQV:HVWLQJKRXVH3ODQWV

5HYLVLRQ0DQXVFULSW&RPSOHWHG2FWREHU'DWH3XEOLVKHG$SULO



 5HJXODWRU\*XLGH4XDOLW\$VVXUDQFH3URJUDP5HTXLUHPHQWV 2SHUDWLRQ 

5HYLVLRQ)HEUXDU\ 15&$FFHVVLRQ1R0/ 



 *HQHULF/HWWHU6XSSOHPHQWWR185(*+/-5HTXLUHPHQWVIRU(PHUJHQF\

5HVSRQVH&DSDELOLW\GDWHG'HFHPEHU 15&$FFHVVLRQ1R0/ 















3DJHRI



























$77$&+0(17



0DUNXSRI7HFKQLFDO6SHFLILFDWLRQV3DJHV







%\URQ6WDWLRQ8QLWVDQG

5HQHZHG)DFLOLW\2SHUDWLQJ/LFHQVH1RV13)DQG13)

15&'RFNHW1RV671DQG671











0$5.('837(&+1,&$/63(&,),&$7,2163$*(6







76,16(576













Definitions 1.1 1.0 USE AND APPLICATION 1.1 Definitions

NOTE-------------------------------------

The defined terms of this section appear in capitalized type and are applicable throughout these Technical Specifications and Bases.

Term Definition ACTIONS ACTIONS shall be that part of a Specification that prescribes Required Actions to be taken under designated Conditions within specified Completion Times.

ACTUATION LOGIC TEST An ACTUATION LOGIC TEST shall be the application of various simulated or actual input combinations in conjunction with each possible interlock logic CERTIFIED FUEL state and the verification of the required logic output. The ACTUATION LOGIC TEST, as a minimum, HANDLER shall include a continuity check of output devices.

AXIAL FLUX DIFFERENCE AFD shall be the difference in normalized flux (AFD) signals between the top and bottom halves of a two section excore neutron detector.

CHANNEL CALIBRATION A CHANNEL CALIBRATION shall be the adjustment, as necessary, of the channel so that it responds within the required range and accuracy to known inputs. The CHANNEL CALIBRATION shall encompass the entire channel, including the required sensor, alarm, interlock, display, and trip functions.

Calibration of instrument channels with Resistance INSERT 1 Temperature Detector (RTD) or thermocouple sensors may consist of an inplace qualitative assessment of sensor behavior and normal calibration of the remaining adjustable devices in the channel. The CHANNEL CALIBRATION may be performed by means of any series of sequential, overlapping calibrations or total channel steps so that the entire channel is calibrated, and each step must be performed within the Frequency in the Surveillance Frequency Control Program for the devices included in the step.

BYRON UNITS 1 & 2 1.1 1 Amendment 213

Definitions 1.1 1.1 Definitions MODE A MODE shall correspond to any one inclusive combination of core reactivity condition, power NON-CERTIFIED level, average reactor coolant temperature, and OPERATOR reactor vessel head closure bolt tensioning specified in Table 1.1-1 with fuel in the reactor vessel.

OPERABLE-OPERABILITY A system, subsystem, train, component, or device shall be OPERABLE or have OPERABILITY when it is capable of performing its specified safety function(s) and when all necessary attendant instrumentation, controls, normal or emergency INSERT 2 electrical power, cooling and seal water, lubrication, and other auxiliary equipment that are required for the system, subsystem, train, component, or device to perform its specified safety function(s) are also capable of performing their related support function(s).

PHYSICS TESTS PHYSICS TESTS shall be those tests performed to measure the fundamental nuclear characteristics of the reactor core and related instrumentation.

These tests are:

a. Described in Chapter 14, Initial Test Program, of the UFSAR;
b. Authorized under the provisions of 10 CFR 50.59; or
c. Otherwise approved by the Nuclear Regulatory Commission.

BYRON UNITS 1 & 2 1.1 5 Amendment 106

76,16(576



,16(57



$&(57,),(')8(/+$1'/(5LVDQLQGLYLGXDOZKRFRPSOLHVZLWKWKHSURYLVLRQVRIWKH

&(57,),(')8(/+$1'/(5WUDLQLQJDQGUHWUDLQLQJSURJUDPUHTXLUHGE\6SHFLILFDWLRQ





,16(57



$121&(57,),('23(5$725LVDQRQOLFHQVHGRSHUDWRUZKRFRPSOLHVZLWKWKHTXDOLILFDWLRQ

UHTXLUHPHQWVRI6SHFLILFDWLRQEXWLVQRWD&(57,),(')8(/+$1'/(5





Responsibility 5.1 5.0 ADMINISTRATIVE CONTROLS plant 5.1 Responsibility shift 5.1.1 The station manager shall be responsible for overall facility operation and shall delegate in writing the succession to this shift manager responsibility during his absence.

5.1.2 A Senior Reactor Operator (SRO) shall be responsible for the control room command function while either unit is in MODE 1, 2, 3, or 4. For each unit, an SRO may be designated as responsible for the control room command function. While both units are in MODE 5 or 6, or defueled, an individual with an active SRO license or Reactor Operator license shall be designated to assume the control room command function.

BYRON UNITS 1 & 2 5.1 1 Amendment 106

Organization 5.2 5.0 ADMINISTRATIVE CONTROLS 5.2 Organization the safe storage and handling 5.2.1 Onsite and Offsite Organizations of irradiated fuel.

Onsite and offsite organizations shall be established for facility operation and corporate management, respectively. The onsite and staff offsite organizations shall include the positions for activities affecting safety of the nuclear power plant.

facility

a. Lines of authority, responsibility, and communication shall be defined and established throughout highest management levels, intermediate levels, and all operating organization positions. These relationships shall be documented and updated, as appropriate, in organization charts, functional descriptions of departmental responsibilities and relationships, and job descriptions for key personnel positions, or in equivalent forms of documentation. These Exelon Decommissioning requirements, including the generic titles of those personnel fulfilling the responsibilities of the positions delineated in these Technical Specifications, shall be documented in the Quality Assurance Program; storage facility plant b. The station manager shall be responsible for overall safe operation of the plant and shall have control over those handling onsite activities necessary for safe operation and have corporate maintenance of the plant; irradiated fuel responsibility A responsible officer
c. The Chief Nuclear Officer shall be responsible for overall the safe storage plant nuclear safety and shall take any measures needed to and handling of facility ensure acceptable performance of the staff in operating, irradiated fuel maintaining, and providing technical support to the plant to ensure nuclear safety; and safe storage and CERTIFIED FUEL HANDLERS handling of d. The individuals who train the operating staff, or perform irradiated fuel health physics or quality assurance functions, may report to the appropriate onsite manager; however, these individuals radiation protection shall have sufficient organizational freedom to ensure their independence from operating pressures.

ability to perform their assigned functions.

BYRON UNITS 1 & 2 5.2 1 Amendment 152

Organization 5.2 Each duty shift shall be composed of at least one shift manager and two NON-CERTIFIED 5.2 Organization OPERATORS. The NON-CERTIFIED OPERATOR position may be filled by a 5.2.2 Facility Staff CERTIFIED FUEL HANDLER.

The facility staff organization shall include the following:

a. A total of three non-licensed operators for the two units is required in all conditions. At least one of the required non-licensed operators shall be assigned to each unit.

Specification

b. Shift crew composition may be less than the minimum requirement of 10 CFR 50.54(m)(2)(i) and 5.2.2.a and 5.2.2.f during the movement for a period of time not to exceed 2 hours2.314815e-5 days <br />5.555556e-4 hours <br />3.306878e-6 weeks <br />7.61e-7 months <br /> in order to of irradiated fuel and accommodate unexpected absence of on-duty shift crew members during movement of provided immediate action is taken to restore the shift crew loads over irradiated composition to within the minimum requirements.

fuel c. A radiation protection technician shall be on site when fuel is in the reactor. The position may be vacant for not more than 2 hours2.314815e-5 days <br />5.555556e-4 hours <br />3.306878e-6 weeks <br />7.61e-7 months <br />, in order to provide for unexpected absence, provided immediate action is taken to fill the required position. Oversight of irradiated fuel handling The shift operations shall be provided by a

d. Deleted.

manager shall be CERTIFIED FUEL HANDLER.

a CERTIFIED e. The operations manager or the supervisor in charge of the FUEL HANDLER. operations shift crews shall hold an SRO license.

f. The Shift Technical Advisor (STA) shall provide advisory technical support to the Shift Manager in the areas of thermal hydraulics, reactor engineering, and plant analysis with regard to the safe operation of the facility. In addition, the STA shall meet the qualifications specified by the Commission Policy Statement on Engineering Expertise on Shift.

At all times when irradiated fuel is and the following conditions are met:

stored in the spent fuel pool, at least

1) No movement of irradiated fuel is in one person qualified to stand watch in progress; the control room (NON-CERTIFIED
2) No movement of loads over irradiated OPERATOR or CERTIFIED FUEL fuel is in progress.

HANDLER) shall be present in the This provision does not permit any shift control room.

crew position to be unstaffed upon shift change due to the absence or tardiness of an oncoming shift crew member BYRON UNITS 1 & 2 5.2 2 Amendment 162

Facility Staff Qualifications 5.3 5.0 ADMINISTRATIVE CONTROLS 5.3 Facility Staff Qualifications 5.3.1 Each member of the facility staff shall meet or exceed the minimum qualifications referenced for comparable positions as specified in the Exelon Quality Assurance Topical Report.

Decommissioning Quality Assurance Program 5.3.2 An NRC-approved training and retraining program for the CERTIFIED FUEL HANDLERS shall be maintained.

BYRON UNITS 1 & 2 5.3 1 Amendment 2030

Procedures 5.4 5.0 ADMINISTRATIVE CONTROLS applicable to the safe storage and handling 5.4 Procedures of irradiated fuel 5.4.1 Written procedures shall be established, implemented, and maintained covering the following activities:

a. The applicable procedures recommended in Regulatory Guide 1.33, Revision 2, Appendix A, February 1978;
b. The emergency operating procedures required to implement the requirements of NUREG-0737 and NUREG-0737, Supplement 1, as Deleted stated in Generic Letter 82-33, Section 7.1;
c. Fire Protection Program implementation; and
d. All programs specified in Specification 5.5.

BYRON UNITS 1 & 2 5.4 1 Amendment 106

Retrieved from "https://kanterella.com/w/index.php?title=RS-20-114,_License_Amendment_Request_-_Proposed_Changes_to_Technical_Specifications_Sections_1.1,_Definitions,_and_5.0,_Administrative_Controls,_for_Permanently_Defueled_Condition&oldid=3210700"