ML12312A190

Redacted Version, Issuance of Amendment No. 190, 190, and 190, Revise Physical Protection License Condition Related to Cyber Security Plan Implementation Milestone 6 and 7 (TAC Nos. ME9247, ME9248, and ME9249)

ML12312A190
Person / Time
Site:	Palo Verde
Issue date:	12/13/2012
From:	Gibson L K Plant Licensing Branch IV
To:	Edington R K Arizona Public Service Co
Gibson L K
References
TAC ME9247, TAC ME9248, TAC ME9249
Download: ML12312A190 (26)

Text

OFFICIAL USE ONt'/-SECURITV-REt:ATEO INFORMATION UNITED NUCLEAR REGULATORY WASHINGTON, D.C. 20555*0001 December 13, 2012 Mr. Randall K. Edington Executive Vice President Nuclearl Chief Nuclear Officer Mail Station 7602 Arizona Public Service Company P.O. Box 52034 Phoenix, AZ 85072*2034 PALO VERDE NUCLEAR GENERATING STATION, UNITS 1,2, AND 3* ISSUANCE OF AMENDMENTS RE: CHANGE IN IMPLEMENTATION OF CYBER SECURITY PLAN (TAC NOS. ME9247, ME9248, AND ME9249)

Dear Mr. Edington:

The U.S. Nuclear Regulatory Commission (NRC, the Commission) has issued the enclosed Amendment No. 190 to Renewed Facility Operating License No. NPF-41, Amendment No. 190 to Renewed Facility Operating License No. NPF-51, and Amendment No. 190 to Renewed Facility Operating License No. NPF-74 for the Palo Verde Nuclear Generating Station, Units 1, 2, and 3, respectively.

The amendments consist of changes to the Renewed Facility Operating Licenses in response to your application dated August 10, 2012, as supplemented by letters dated September 4, October 11, and November 16, 2012. The amendments revise the scope of Milestones 6 and 7 of the Cyber Security Implementation Plan and revise License Condition 2.E of the Renewed Facility Operating Licenses.

The NRC has determined that the related safety evaluation (SE) contains sensitive related information pursuant to Title 10 of the Code of Federal Regulations, Section 2.390, "Public inspections, exemptions, requests for withholding." Accordingly, the NRC staff has also prepared a non-sensitive version of the SE. which is provided in Enclosure

4. The sensitive NOTICE: Enclosure 5 to this letter contains sensitive security-related information.

Upon separation from Enclosure 5, this letter is DECONTROLLED. OFFICIAL USE ONLY SECURITY RELATED INFORMATION OffiCIAL USE ONLY* SECURln'*RElATED INFORMATION R. Edington -2 version of the SE is provided in Enclosure

5. The Notice of Issuance will be included in the Commission's next biweekly Federal Register notice. Sincerely, Lauren K. Gibson, Project Manager Plant Licensing Branch IV Division of Operating Reactor licensing Office of Nuclear Reactor Regulation Docket Nos. STN 50-528, STN 50-529, and STN 50*530

Enclosures:

1. Amendment No. 190 to NPF-41 2. Amendment No. 190 to NPF-51 3. Amendment No. 190 to NPF-74 4. Non-sensitive Safety Evaluation

5. Sensitive Safety Evaluation cc wlo Encl 5: Distribution via Listserv OFFICIAL USE ONLY SECURITY RELATED INFORMATION ENCLOSURE AMENDMENT NO. TO RENEWED FACILITY OPERATING LICENSE NO. ARIZONA PUBLIC SERVICE CO'I ET PALO VERDE NUCLEAR GENERATING STATION, UNIT DOCKET NO.

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555*0001 ARIZONA PUBLIC SERVICE COMPANY. ET AL. DOCKET NO. STN 50-528 PALO VERDE NUCLEAR GENERATING STATION. UNIT 1 AMENDMENT TO RENEWED FACILITY OPERATING LICENSE Amendment No. 190 License No. NPF-41 The Nuclear Regulatory Commission (the Commission) has found that: The application for amendment by the Arizona Public Service Company (APS or the licensee) on behalf of itself and the Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority dated Aug ust 10, 2012, as supplemented by letters dated September 4, October 11, and November 16, 2012, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act) and the Commission's regulations set forth in 10 CFR Chapter I; The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; There is reasonable assurance (I) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations; The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

-Accordingly, the license is amended by changes as indicated in the attachment to this license amendment, and Paragraph 2.E of Renewed Facility Operating License No. NPF-41 is hereby amended to read as follows: The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The combined set of plans, which contains Safeguards Information protected under 10 CFR 73.21, is entitled: "Palo Verde Nuclear Station Security Plan, Training and Qualification Plan, Safeguards Contingency Plan and Independent Spent Fuel Storage Installation Security Program Revision 3," submitted by letter dated May 16,2006. APS shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP), including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The APS CSP was approved by License Amendment No. 185 as supplemented by a change approved by License Amendment No. 190. This license amendment is effective as of the date of issuance and shall be implemented within 60 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION Michael T. Markley, Chief Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Attachment:

Changes to the Renewed Facility Operating License No. NPF-41 Date o'f Issuance:

December 13, 2012 ATTACHMENT TO LICENSE AMENDMENT NO. RENEWED FACILITY OPERATING LICENSE NO. DOCKET NO. STN Replace the following page of the Renewed Facility Operating License No. NPF-41 with the attached revised page. The revised page is identified by amendment number and contains marginal lines indicating the areas of change. Renewed Facility Operating License No, NPF-41 REMOVE INSERT 8 8 and will not endanger life or property or the common defense and security and is otherwise in the public interest.

This exemption is, therefore, hereby granted pursuant to 10 CFR 50.12. With the granting of this exemption, the facility will operate, to the extent authorized herein, in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission. The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The combined set of plans, which contains Safeguards Information protected under 10 CFR 73.21, is entitled: "Palo Verde Nuclear Station Security Plan, Training and Qualification Plan. Safeguards Contingency Plan and Independent Spent Fuel Storage Installation Security Program Revision 3," submitted by letter dated May 16, 2006. APS shall fully implement and maintain in effect a\l provisions of the Commission-approved cyber security plan (CSP). including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The APS CSP was approved by License Amendment No. 185 as supplemented by a change approved by License Amendment No. 190. Deleted The licensees shall have and maintain financial protection of such type and in such amounts as the Commission shall require in accordance with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public liability claims; and This renewed operating license is effective as of the date of issuance and shall expire at midnight on June 1, 2045. FOR THE NUCLEAR REGULATORY COMMISSION IRA! Eric J. Leeds, Director Office of Nuclear Reactor Regulation Attachments:

1. Attachment 1 -[Requirements for Initial Mode 1 Entry] -Deleted 2. Attachment 2 -[Operating Staff Experience Requirements]

-Deleted 3. Attachment 3 -[Emergency Response Capabilities]

-Deleted 4. Appendix A -Technical Specifications

5. Appendix B -Environmental Protection Plan 6. Appendix C -Antitrust Conditions

7. Appendix D -Additional Conditions Date of Issuance:

April 21, 2011 Renewed Facility Operating License No. NPF-41 Amendment No. 190 ENCLOSURE AMENDMENT NO. TO RENEWED FACILITY OPERATING LICENSE NO. ARIZONA PUBLIC SERVICE CO., ET PALO VERDE NUCLEAR GENERATING STATION, UNIT DOCKET NO.

UNITED NUCLEAR REGULATORY WASHINGTON.

D.C. 20555-0001 ARIZONA PUBLIC SERVICE COMPANY. ET DOCKET NO. STN PALO VERDE NUCLEAR GENERATING STATION. UNIT AMENDMENT TO RENEWED FACILITY OPERATING Amendment No. 190 License No. NPF-51 The Nuclear Regulatory Commission (the Commission) has found that: The application for amendment by the Arizona Public Service Company (APS or the licensee) on behalf of itself and the Salt River Project Agricultural Improvement and Power District.

EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority dated August 10, 2012. as supplemented by letters dated September

4. October 11, and November 16, 2012, complies with the standards and requirements of the Atomic Energy Act of 1954. as amended (the Act) and the Commission's regulations set forth in 10 CFR Chapter I; The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations; The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

-2 Accordingly, the license is amended by changes as indicated in the attachment to this license amendment, and Paragraph 2.E of Renewed Facility Operating License No. NPF-51 is hereby amended to read as follows: The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The combined set of plans, which contains Safeguards Information protected under 10 CFR 73.21, is entitled: "Palo Verde Nuclear Station Security Plan, Training and Qualification Plan, Safeguards Contingency Plan and Independent Spent Fuel Storage Installation Security Program Revision 3," submitted by letter dated May 16, 2006. APS shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP), including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The APS CSP was approved by License Amendment No. 185 as supplemented by a change approved by License Amendment No. 190. This license amendment is effective as of the date of issuance and shall be implemented within 60 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION Michael T. Markley, Chief Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Attachment:

Changes to the Renewed Facility Operating License No. NPF-51 Date of Issuance:

December 13, 2012 ATTACHMENT TO LICENSE AMENDMENT NO. RENEWED FACILITY OPERATING LICENSE NO. DOCKET NO. STN Replace the following page of the Renewed Facility Operating License No. NPF-51 with the attached revised page. The revised page is identified by amendment number and contains marginal lines indicating the areas of change. Renewed Facility Operating License No. NPF-51 REMOVE INSERT 9 9

-9 The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (5'1 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The combined set of plans, which contains Safeguards Information protected under 10 CFR 73.21, is entitled: "Palo Verde Nuclear Station Security Plan, Training and Qualification Plan, Safeguards Contingency Plan and Independent Spent Fuel Storage Installation Security Program Revision 3," submitted by letter dated May 16, 2006. APS shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP), including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The APS CSP was approved by License Amendment No. 185 as supplemented by a change approved by License Amendment No. 190. Deleted The licensees shall have and maintain financial protection of such type and in such amounts as the Commission shall require in accordance with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public liability claims; and This renewed operating license is effective as of the date of issuance and shall expire at midnight on April 24, 2046. FOR THE NUCLEAR REGULATORY COMMISSION IRA! Eric J. Leeds, Director Office of Nuclear Reactor Regulation Attachments:

1. [Requirements for Initial Mode 1 Entry] -Deleted 2. [Schedule for NUREG-0737, Sup. 1, Requirement (SPDS)]-Deleted 3. Appendix A -Technical Specifications

4. Appendix B -Environmental Protection Plan 5. Appendix C -Antitrust Conditions

6. Appendix D -Additional Conditions Date of Issuance:

April 21, 2011 Renewed Facility Operating License No. NPF-51 Amendment No. 190 ENCLOSURE AMENDMENT NO. TO RENEWED FACILITY OPERATING LICENSE NO. ARIZONA PUBLIC SERVICE CO., ET PALO VERDE NUCLEAR GENERATING STATION, UNIT DOCKET NO.

UNITED NUCLEAR REGULATORY WASHINGTON, D.C. 20555-0001 ARIZONA PUBLIC SERVICE COMPANY, ET AL. DOCKET NO. STN 50-530 PALO VERDE NUCLEAR GENERATING STATION, Ut'lliT 3 AMENDMENT TO RENEWED FACILITY OPERATING LICENSE Amendment No_ 190 License No. NPF-74 The Nuclear Regulatory Commission (the Commission) has found that: The application for amendment by the Arizona Public Service Company (APS or the licensee) on behalf of itself and the Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority dated August 10, 2012, as supplemented by letters dated September 4, October 11, and November 16, 2012, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act) and the Commission's regulations set forth in 10 CFR Chapter I; The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations; The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

Accordingly, the license is amended by changes as indicated in the attachment to this license amendment, and Paragraph 2.E of Renewed Facility Operating License No. NPF-74 is hereby amended to read as follows: The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, training and qualification.

and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p}.

The cornbined set of plans, which contains Safeguards Information protected under 10 CFR 73.21, is entitled: "Palo Verde Nuclear Station Security Plan, Training and Qualification Plan, Safeguards Contingency Plan and Independent Spent Fuel Storage Insta"ation Security Program Revision 3," submitted by letter dated May 16,2006. APS shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP). including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The APS CSP was approved by License Amendment No. 185 as supplemented by a change approved by License Amendment No. 190. This license amendment is effective as of the date of issuance and shall be implemented within 60 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION Michael T. Markley, Chief Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Attachment:

Changes to the Renewed Facility Operating License No. NPF-74 Date of Issuance:

December 13, 2012 ATTACHMENT TO LICENSE AMENDMENT NO. RENEWED FACILITY OPERATING LICENSE NO. DOCKET NO. STN Replace the following page of the Renewed Facility Operating License No. NPF-74 with the attached revised page. The revised page is identified by amendment number and contains marginal lines indicating the areas of change. Renewed Facility Operating License No. NPF-74 REMOVE INSERT 6 6 The UFSAR supplement, as revised, submitted pursuant to 10 CFR 54.21(d), describes certain future activities to be completed prior to and/or during the period of extended operation.

The licensee shall complete these activities in accordance with Appendix A of NUREG-1961, "Safety Evaluation Report Related to the License Renewal of Palo Verde Nuclear Generating Station, Units 1, 2, and 3," issued April 2011. The licensee shall notify the NRC in writing when activities to be completed prior to the period of extended operation are complete and can be verified by NRC inspection. All capsules in the reactor vessel that are removed and tested must meet the test procedures and reporting requirements of American SOCiety for Testing and Materials (ASTM) E 185-82 to the extent practicable for the configuration of the specimens in the capsule. The NRC must approve any changes to the capsule withdrawal schedule, including spare capsules, prior to implementation.

All capsules placed in storage must be maintained for future insertion.

The NRC must approve any changes to storage requirements. APS has previously been granted an exemption from Paragraph IILD.2{b){ii) of Appendix J to 10 CFR Part 50. This exemption was previously granted in Facility Operating License NPF-65 pursuant to 10 CFR 50.12, With the granting of this exemption, the facility will operate, to the extent authorized herein, in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission. The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54{p).

The combined set of plans, which contains Safeguards Information protected under 10 CFR 73.21. is entitled: "Palo Verde Nuclear Station Security Plan, Training and Qualification Plan, Safeguards Contingency Plan and Independent Spent Fuel Storage Installation Security Program Revision 3," submitted by letter dated May 16, 2006. APS shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP), including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54{p).

The APS CSP was approved by License Amendment No. 185 as supplemented by a change approved by License Amendment No. 190. Renewed Facility Operating License No. NPF-74 Amendment No. 190 ENCLOSURE SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REGULATION RELATED TO AMENDMENT NOS. 190, 190, and TO RENEWED FACILITY LICENSE NOS. NPF-41, NPF-51, AND ARIZONA PUBLIC SERVICE COMPANY, ET PALO VERDE NUCLEAR GENERATING STATION, UNITS 1,2, AND DOCKET NOS. STN 50-528, STN 50-529, AND STN Security-related information pursuant to Section 2.390 of Title 10 the Code of Federal Regulations has been redacted from this Redacted infonnatlon is Identified by blank space enclosed within double brackets.

OFFICIAL USE ONLY* SECURITY-RELATED INFORMATION UNITED NUCLEAR REGULATORY WASHINGTON, D.C. 20555-0001 SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO AMENDMENT NOS. 190,190, AND 190 TO RENEWED FACILITY OPERATING LICENSE NOS, NPF-41, NPF-51, AND NPF-74 ARIZONA PUBLIC SERVICE COMPANY, ET AL. PALO VERDE NUCLEAR GENERATING STATION. UNITS 1,2. AND 3 DOCKET NOS. STN 50-528, STN 50-529, AND STN 50-530

1.0 INTRODUCTION

By application dated August 10,2012 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML 12240A053), as supplemented by letters dated September 4, October 11, and November 16, 2012 (ADAMS Accession Nos. ML 12255A278, ML 122786A333, and ML 12325A067, respectively), Arizona Public Service Company (APS, the licensee) requested changes to the renewed facility operating licenses for Palo Verde Nuclear Generating Station (PVNGS), Units 1, 2, and 3. The proposed changes would revise the scope of Cyber Security Plan (CSP) Implementation Schedule Milestones

1. 6 and #7 and the existing license conditions in the renewed facility operating licenses.

Milestone

1. 6 of the CSP implementation schedule concerns the Milestone

1. 7 of the CSP implementation schedule concerns APS is requesting to modify the scope of Milestone

1. 6 to apply Portions of the letters dated August 10 and October 11. 2012, contain sensitive unclassified non-safeguards information and, accordingly, those portions are withheld from public disclosure.

2.0 REGULATORY EVALUATION

The U.S. Nuclear Regulatory Commission (NRC) staff reviewed and approved the licensee's existing CSP implementation schedule by License Amendment No. 185 to Renewed Facility Operating License No. NPF-41, Amendment No. 185 to Renewed Facility Operating License OFFICIAL USE ONLY SECURITY RELATED INFORMATION OFFICIAL USE SECURITY RELATED INFORMATION No. NPF-51, and Amendment No. 185 to Renewed Facility Operating License No. NPF-74 for PVNGS, Units 1, 2. and 3, respectively, dated July 26. 2011 (ADAMS Accession No. ML 111710110), concurrent with the incorporation of the CSP into the facility current licensing basis. The NRC staff considered the following regulatory requirements and guidance in its review of the current license amendment request to modify the existing CSP implementation schedule: Title 10 of the Code of Federal Regulations (10 CFR) 73.54 states: "Each [CSP] submittal must include a proposed implementation schedule.

Implementation of the licensee's cyber security program must be consistent with the approved schedule." The licensee's renewed facility operating licenses includes a license condition that requires the licensee to fully implement and maintain in effect all provisions of the Commission-approved CSP. Amendment No. 185 to Renewed Facility Operating License No. NPF-41, Amendment No. 185 to Renewed Facility Operating License NPF-51, and Amendment No. 185 to Renewed Facility Operating License No. NPF-74 for PVNGS, Units 1. 2. and 3, respectively.

dated July 26, 2011, which approved the licensee's CSP and implementation schedule, included the following statement: "The implementation of the cyber security plan (CSP), including the key intermediate milestone dates and the full implementation date, shall be in accordance with the implementation schedule submitted by the licensee on March 31, 2011, and approved by the NRC staff with this license amendment.

All subsequent changes to the NRC-approved CSP implementation schedule will require prior NRC approval pursuant to 10 CFR 50.90." In a letter to the Nuclear Energy Institute (NEI) dated March 1, 2011 (ADAMS Accession No. ML 11 0070348).

the NRC staff acknowledged that the cyber security implementation schedule template was "written generically and licensees that use the template to develop their proposed implementation schedules may need to make changes to ensure the submitted schedule accurately accounts for site-specific activities.

n TECHNICAL EVALUATION Amendment No. 185 to Renewed Facility Operating License No. NPF-41, Amendment No. 185 to Renewed Facility Operating License No. NPF-51, and Amendment No. 185 to Renewed Facility Operating License No. NPF-74 for the PVNGS, Units 1, 2. and 3, respectively were issued on July 26, 2011. The NRC staff also approved the licensee's CSP implementation schedule, as discussed in the safety evaluation issued with the amendments.

The implementation schedule had been submitted by the licensee based on a template prepared by NEI, which the NRC staff found acceptable for licensees to use to develop their CSP implementation schedules (ADAMS Accession No. ML 11 0070348).

The licensee's proposed OFFICIAL USE ONLY SECURITY RELATED INFORMATION j¢ OFFICIAL USE ONLY SECURITY RELATED INFORMATION implementation schedule for the cyber security program identified completion dates and bases for the following eight milestones:

3.1 Licensee's Proposed Change Currently.

Milestone

1. 6 of PVNGS's CSP requires APS to In its August 10, 2012, application, APS proposed to modify Milestone

1. 6 to change the APS proposes to amend its CSP to provide that will be fully implemented by a later date, which is the completion date of the CSP implementation schedule.

The licensee stated that implementing provides a high degree of protection against cyber-related attacks USE ONLY SiCURITY RilATiD INFORMATION OFFlelM: !lSE ONLY-SEe!lRITY-RELJI<l'EB INFORMJI<l'ION

-By letter dated September 11,2012 (security-related, non-publicly available), the NRC staff requested additional information as to what would be implemented by with respect to Section 4.4, "Ongoing Monitoring and Assessment," of NEI 08-09, Revision 6. The licensee responded on October 11, 2012, In its letter dated October 11, 20 12, APS also stated that 3.2 NRC Staff Evaluation The intent of the cyber security implementation schedule was for licensees to demonstrate ongoing implementation of their cyber security program prior to full implementation, which is set for the date specified in In addition to Milestones

1. 6 and #7 and their associated activities, licensees will be completing five other milestones (Milestones

1. 1 through #5) by Activities include In the aggregate, the interim milestones demonstrate ongoing implementation of the cyber security program at PVNGS. The NRC staff has reviewed the licensee's evaluation of the proposed change in its submittal dated August 10, 2012, and concludes that by completing Milestones

1. 1 through #5, Milestone

1. 6 and Milestone

1. 7 PVNGSwili have an acceptable level of cyber security protection until full program implementation is achieved.

For these reasons, the NRC staff concludes that the licensee's approach is acceptable.

OFFICIAl USE ONlY SECURITY RElATED INFORMATION

&VO OFFICIAL USE ONLY* SECURITY RELATED INFORMATION

-The NRC staff also recognizes that full implementation of operational and management cyber security controls in accordance with requirements of the PVNGS CSP will be achieved with full implementation of the PVNGS CSP by the date set in That is, all required elements for the operational and management cyber security controls in accordance with the PVNGS CSP will be implemented in their entirety at the time of full implementation of the CSP. With regard for Milestone

1. 7, NRC staff recognizes that with the revision to Milestone

1. 6, by the licensee will have However, the NRC staff's expectation is that future changes to the plant that identify prior to the NRC-approved CSP implementation date will be reviewed against the requirements for the and that if any requirements are not yet implemented, PVNGS will implement the requirements such that the The NRC staff does not regard the CSP milestone implementation dates as regulatory commitments that can be changed unilaterally by the licensee, particularly in light of the regulatory requirement at 10 CFR 73.54, that "[ijmplementation of the licensee's cyber security program must be consistent with the approved schedule." As the NRC staff explained in its letter to all operating reactor licensees dated May 9, 2011 (ADAMS Accession No. ML 110980538), the implementation of the plan, including the key intermediate milestone dates and the full implementation date, shall be in accordance with the implementation schedule submitted by the licensee and approved by the NRC. All subsequent changes to the NRC-approved CSP implementation schedule, thus, will require prior NRC approval pursuant to 10 CFR 50.90. 3.3 Revision to license Condition 2.E By letter dated August 10, 2012, the licensee proposed to modify Paragraph 2.E of Renewed Facility Operating License No. NPF-41, Renewed Facility Operating License No. NPF-51 and Renewed Facility Operating license No. NPF-74 for the PVNGS, Units 1, 2, and 3, respectively, which provides license conditions to require the licensee to fully implement and maintain in effect all provisions of the NRC-approved CSP. Current Paragraph 2.E of Renewed Operating License Nos. I\lPF-41 , NPF-51, and NPF-74 state: The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The combined set of plans, which contains Safeguards Information protected under 10 CFR 73.21, is entitled: "Palo Verde Nuclear Station Security Plan, Training and Qualification Plan, Safeguards OFFIelAL ijSE ONLY-SEeijRFfYoRELATEO INFORMATION OFFICIAL USE ONLY* SECURITY*RELATED INFORMATION -Contingency Plan and Independent Spent Fuel Storage Installation Security Program Revision 3," submitted by letter dated May 16, 2006. APS shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP), including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The APS CSP was approved by License Amendment No. 185. Revised Paragraph 2.E of Renewed Operating License Nos. NPF-41, NPF-51, and NPF-74 would state: The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The combined set of plans, which contains Safeguards Information protected under 10 CFR 73.21, is entitled: "Palo Verde Nuclear Station Security Plan, Training and Qualification Plan, Safeguards Contingency Plan and Independent Spent Fuel Storage Installation Security Program Revision 3," submitted by letter dated May 16, 2006. APS shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP), including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The APS CSP was approved by License Amendment No. 185 as supplemented by a change approved by License Amendment No. 190. 3.4 Summary Based on its review of the licensee's submissions, the NRC staff concludes that the proposed changes to Milestone

1. 6 and Milestone

1. 7 of the licensee's CSP implementation schedule are acceptable.

The NRC staff also concludes that, upon full implementation of the licensee's cyber security program, the requirements of the licensee's CSP and 10 CFR 73.54 will be met. Therefore, the NRC staff concludes that the proposed changes are acceptable.

4.0 STATE CONSULTATION

In accordance with the Commission's regulations, the Arizona state official was notified of the proposed issuance of the amendments.

The State official had no comments.

5.0 ENVIRONMENTAL CONSIDERATION This amendments relate solely to safeguards matters and do not involve any Significant construction impacts. The Commission has previously issued a proposed finding that the amendments involve no significant hazards consideration, and there has been no public comment on such finding published in the Federal Register on October 9, 2012 (77 FR 61436). OFFICIAb liSE ONb¥ SEGIlRITY REbA+E9 INFORMMION OFFICIAL USE ONLY SECURITY-RELATED INFORMATION Accordingly, the amendments meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(12).

Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the issuance of the amendments.

6.0 CONCLUSION

The NRC staff has concluded, based on the considerations discussed above, that: (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) there is reasonable assurance that such activities will be conducted in compliance with the Commission's regulations, and (3) the issuance of the amendments will not be inimical to the common defense and security or to the health and safety of the public. Principal Contributor:

Monika Coflin Date: December 13,2012 OFFICIAL tiS!: ONL¥-S!:OtlRITV-RELATEB INFOR_19N OFFICIAL USE ONLV-SECURIW"RELATED R. Edington -2 version of the SE is provided in Enclosure

5. The Notice of Issuance will be included in the Commission's next biweekly Federal Register notice. Sincerely, IRAJ Lauren K. Gibson. Project Manager Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. STN 50-528, STN and STN 1, Amendment No. 190 to 2. Amendment No. 190 to NPF-51 3. Amendment No. 190to NPF-74 4. Non-sensitive Safety Evaluation

5. Sensitive Safety Evaluation cc wlo Encl 5: Distribution via Listserv DISTRIBUTION:

NON-PUBLIC LPLIV rtf RidsAcrsAcnw

_MailCTR Resource RidsNrrDorlDpr Resource RidsNrrDorlLpl4 Resource RidsNrrPMPaloVerde Resource RidsNrrLAIBurkhardt Resource RidsNsirDsp Resource RidsOgcRp Resource RidsRgn4MailCenter Resource lWengert, NRR/DORL BSingal, NRR/DORL JPoole, NRR/DORL MCoflln, NSIRIDSP/CSIRB PPederson, NSIRIDSP/CSIRB ADAMS Accession Nos.: Redacted version ML 12312A190, OUO-SRI Version ML 12312A186

• b)y SE memo d a ted 0 c tab er 26 2012 jNAME NRRlLPL4/PM IlGibson NRRlLPl4/LA JBurkhardt NSIRIDSP/CSIRB/BC CErtanger' OGC NLO BMizuno NRRlLPl4/BC MMarkley NRRlLPl4/PM LGibson I DATE 1 1 1/13112 11110112 10/26/12 11116112 1215112 12113/12 OFFICIAL AGENCY RECORD eFFICIAL liSE eNLY-SEellRlf¥oRELATEB INFeRM_eN