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{{#Wiki_filter:July 9, 2008 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD
{{#Wiki_filter:July 9, 2008 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of                                          )
                                                          )
ENTERGY NUCLEAR VERMONT YANKEE, LLC )                              Docket No. 50-271-LR AND ENTERGY NUCLEAR OPERATIONS, INC. )
                                                          )        ASLBP No. 06-849-03-LR (Vermont Yankee Nuclear Power Station)                    )
NRC STAFFS BRIEF IN REPONSE TO BOARD ORDER In accordance with the Boards June 27 Order (Regarding the Briefing of Certain Legal Issues) (June 27 Order), the staff of the US Nuclear Regulatory Commission (Staff) hereby responds to the legal questions posed by the Board. The two legal issues were: (1) Performance of time-limited aging analyses (TLAA) subsequent to issuance of license renewal and (2) reference to NUREGs in demonstrating that effects of aging will be managed.
BACKGROUND The Board asked the parties to brief two issues related to performance of TLAAs subsequent to the issuance of a license renewal. In providing the basis for its request, the Board stated that the Staff changed its interpretation of § 54.21(c)(1)1 between August 2007 and May 2008. See June 27 Order at 2-3. The Staff, however, has not changed its position on what is required by § 54.21(c)(1). Instead, Entergys approach 1
Section 54.21(c)(1) allows license renewal applicants to address TLAAs within the scope of license renewal by demonstrating one of the following: (i) The analyses remain valid for the period of extended operation; (ii) The analyses have been projected to the end of the period of extended operation; or (iii) The effects of aging on the intended function(s) will be adequately managed for the period of extended operation.


In the Matter of  )
to satisfying the requirements of § 54.21(c)(1) has not been clear throughout this proceeding. This lack of clarity as to Entergys approach may have led to confusion both as to the Staffs interpretation of § 54.21(c) and to which subsection Entergy seeks to satisfy. For example, in its June 27 Order, the Board questioned whether Entergy ever characterized its proposal as an aging management program under § 54.21(c)(1)(iii). Id at n.3. However, in admitting NEC Contention 2 the Board noted: Entergy itself has stated that it is relying on subsection (iii) of this regulation [§ 54.21(c)(1)] (i.e. the requirement to demonstrate that the effects of aging will be adequately managed) in the case of environmentally assisted fatigue.2 Thus, before addressing the Boards questions, it is necessary to address this confusion.
  )
On July 6, 2006, Entergy submitted Commitment 27 which stated that [f]or each location that may exceed a CUF of 1.0 when considering environmental effects, VYNPS will implement one or more of the following options: (1) further refinement . . .
ENTERGY NUCLEAR VERMONT YANKEE, LLC ) Docket No. 50-271-LR AND ENTERGY NUCLEAR OPERATIONS, INC. )    ) ASLBP No. 06-849-03-LR (Vermont Yankee Nuclear Power Station)  )
(2) management of affected locations by an inspection program . . . (3) repair or replacement of the affected locations.3 Then, on July 3, 2007, Entergy revised Commitment 27 to state that it would select one of the aforementioned options [a]t least two years prior to entering the period of extended operation.4 On July 30, 2007, in response to a Staff request for additional information (RAI) about the July 3, 2007 amendments to Commitment 27, Entergy stated that it intended to comply with 2
 
Entergy Nuclear Vermont Yankee, LLC & Entergy Nuclear Operations, Inc. (Vermont Yankee Nuclear Power Station), LBP-06-20, 64 NRC 131, 186 (2006) (emphasis in original).
NRC STAFF'S BRIEF IN REPONSE TO BOARD ORDER In accordance with the Board's June 27 Order (Regarding the Briefing of Certain Legal Issues) ("June 27 Order"), the staff of the US Nuclear Regulatory Commission
3 Vermont Yankee License Renewal Application Amendment 33, ADAMS Accession No.
 
("Staff") hereby responds to the legal questions posed by the Board. The two legal
 
issues were: (1) Performance of time-limited aging analyses ("TLAA") subsequent to
 
issuance of license renewal and (2) reference to NUREGs in demonstrating that effects
 
of aging will be managed.
BACKGROUND The Board asked the parties to brief two issues related to performance of TLAAs subsequent to the issuance of a license renewal. In providing the basis for its request, the Board stated that the Staff changed its interpretation of § 54.21(c)(1) 1 between August 2007 and May 2008.
See June 27 Order at 2-3. The Staff, however, has not changed its position on what is required by § 54.21(c)(1). Instead, Entergy's approach 1 Section 54.21(c)(1) allows license renewal applicants to address TLAAs within the scope of license renewal by demonstrating one of t he following: (i) The analyses remain valid for the period of extended operation; (ii) The analyses have been projected to the end of the period of extended operation; or (iii) The effects of aging on the intended function(s) will be adequately managed for the period of extended operation. to satisfying the requirements of § 54.21(c)(1) has not been clear throughout this proceeding. This lack of clarity as to Entergy's approach may have led to confusion both  
 
as to the Staff's interpretation of § 54.21(c) and to which subsection Entergy seeks to  
 
satisfy. For example, in its June 27 Order, the Board questioned whether Entergy ever  
 
characterized its proposal as an aging management program under § 54.21(c)(1)(iii).
Id at n.3. However, in admitting NEC Contention 2 the Board noted: "Entergy itself has  
 
stated that it is relying on subsection (iii) of this regulation [§ 54.21(c)(1)] (i.e. the  
 
requirement to demonstrate that the effects of aging will be adequately managed) in the case of environmentally assisted fatigue."
2 Thus, before addressing the Board's questions, it is necessary to address this confusion.
On July 6, 2006, Entergy submitted Commitment 27 which stated that "[f]or each  
 
location that may exceed a CUF of 1.0 when considering environmental effects, VYNPS  
 
will implement one or more of the following options: (1) further refinement . . .  
 
(2) management of affected locations by an inspection program . . . (3) repair or  
 
replacement of the affected locations."
3 Then, on July 3, 2007, Entergy revised Commitment 27 to state that it would select one of the aforementioned options "[a]t least  
 
two years prior to entering the period of extended operation."
4 On July 30, 2007, in response to a Staff request for additional information ("RAI") about the July 3, 2007  
 
amendments to Commitment 27, Entergy stated that it intended to comply with 2 Entergy Nuclear Vermont Yankee, LLC & Entergy Nuclear Operations, Inc. (Vermont Yankee Nuclear Power Station), LBP-06-20, 64 NRC 131, 186 (2006) (emphasis in original).
3 Vermont Yankee License Renewal Applic ation Amendment 33, ADAMS Accession No.
ML0619202840.
ML0619202840.
4 Vermont Yankee License Renewal Applic ation Amendment 27, ADAMS Accession No.
4 Vermont Yankee License Renewal Application Amendment 27, ADAMS Accession No.
ML0719002031. Commitment 27 "by demonstrating, through the implementation of Option 1 [further refinement], that the cumulative usage factors (CUF) of the most fatigue sensitive
ML0719002031.
 
locations are less than 1.0 throughout the license renewal period, considering both


mechanical and environmental effects."
Commitment 27 by demonstrating, through the implementation of Option 1 [further refinement], that the cumulative usage factors (CUF) of the most fatigue sensitive locations are less than 1.0 throughout the license renewal period, considering both mechanical and environmental effects.5 Entergys statement in its July 30 response indicated that it intended to rely on 10 C.F.R. § 54.21(c)(1)(ii), not (iii). Thus, at the time of the August 20, 2007 conference call between members of the NRC license renewal staff and Entergy representatives (see Exh. NEC-JH_62) the Staff understood that Entergy intended to comply with (ii).
5   Entergy's statement in its July 30 response indicated that it intended to rely on  
Therefore, when the Staff stated that Entergy must demonstrate in its LRA that its environmentally-assisted metal fatigue analysis has been completed, and cannot rely on a commitment to complete this analysis prior to entering the period of extended operation, it was explaining what is required to satisfy § 54.21(c)(1)(ii) not (iii). See id.
Between submitting its July 30 RAI response and submitting License Renewal Application Amendment 31 on September 17, 2007 (Staff Exh. 22), Entergy changed course again. In Amendment 31, Entergy stated that an assessment of the impact of the reactor water environment on critical components will be part of its fatigue monitoring program (FMP), inclusion of an assessment of the impact of the reactor water environment on critical components makes its FMP consistent with NUREG-1801 Section X.M1 (Staff Exh. 7 at 6-7), and thus the effects of aging will be adequately managed in accordance with 10 C.F.R. § 54.21(c)(1)(iii). See Staff Exh. 22 at Attachment 1. Based on Amendment 31, the Staff reviewed Entergys license 5
Vermont Yankee License Renewal Application Amendment 28, ADAMS Accession No.
ML0721408470.


10 C.F.R. § 54.21(c)(1)(ii), not (iii). Thus, at the time of the August 20, 2007 conference
renewal application for compliance with § 54.21(c)(1)(iii). See Staff Exh. 1 at 4-43.
 
Therefore the Staff did not change its interpretation of § 54.21(c)(1). Instead, Entergy temporarily indicated that it would rely on § 54.21(c)(ii), before ultimately relying upon § 54.21(c)(1)(iii).
call between members of the NRC license renewal staff and Entergy representatives
DISCUSSION I.     Response to Issues 1A & AB A.     Response to Issue 1A The Board asked whether a license condition that requires performance of certain CUFen TLAAs6 after the license renewal is issued complies with § 54.21(c).
 
(see Exh. NEC-JH_62) the Staff understood that Entergy intended to comply with (ii). 
 
Therefore, when the Staff stated that Entergy "must demonstrate in its LRA that its
 
environmentally-assisted metal fatigue analysis has been completed, and cannot rely on
 
a commitment to complete this analysis prior to entering the period of extended
 
operation," it was explaining what is required to satisfy § 54.21(c)(1)(ii) not (iii).
See id. Between submitting its July 30 RAI response and submitting License Renewal
 
Application Amendment 31 on September 17, 2007 (Staff Exh. 22), Entergy changed
 
course again. In Amendment 31, Entergy stated that an assessment of the impact of the
 
reactor water environment on critical com ponents will be part of its fatigue monitoring program ("FMP"), inclusion of an assessment of the impact of the reactor water
 
environment on critical components makes its FMP consistent with NUREG-1801 Section X.M1 (Staff Exh. 7 at 6-7), and thus the effects of aging will be adequately
 
managed in accordance with 10 C.F.R. § 54.21(c)(1)(iii).
See Staff Exh. 22 at Attachment 1. Based on Amendment 31, the Staff reviewed Entergy's license 5 Vermont Yankee License Renewal Applic ation Amendment 28, ADAMS Accession No.
ML0721408470. renewal application for compliance with § 54.21(c)(1)(iii).
See Staff Exh. 1 at 4-43. Therefore the Staff did not change its interpretation of § 54.21(c)(1). Instead, Entergy temporarily indicated that it would re ly on § 54.21(c)(ii), before ultimately relying upon § 54.21(c)(1)(iii).
DISCUSSION I. Response to Issues 1A & AB A. Response to Issue 1A The Board asked whether "a license condition that requires performance of  
 
certain CUFen TLAAs 6 after the license renewal is issued" complies with § 54.21(c).
Section 54.21 provides:
Section 54.21 provides:
Each application must contain the following information:  . . .
Each application must contain the following information:
  ...
(c) An evaluation of time-limited aging analyses.
(c) An evaluation of time-limited aging analyses.
(1) A list of time-limited aging analyses, as defined in § 54.3, must be provided. The applicant shall demonstrate that-(i) The analyses remain valid for the period of extended operation (ii) The analyses have been projected to the end of the period of extended operation; or   (iii) The effects of aging on the intended function(s) will be adequately managed for the period of extended operation.  
(1) A list of time-limited aging analyses, as defined in § 54.3, must be provided. The applicant shall demonstrate that (i) The analyses remain valid for the period of extended operation (ii) The analyses have been projected to the end of the period of extended operation; or (iii) The effects of aging on the intended function(s) will be adequately managed for the period of extended operation.
 
(emphasis added).
(emphasis added).  
To satisfy § 54.21(c)(1), the applicant must assess and list TLAAs and demonstrate compliance with (i), (ii), or (iii). If a license renewal applicant chooses to demonstrate that its analyses remain valid for 60 years pursuant to § 54.21(c)(1)(i), its application must demonstrate that existing analyses are valid for 60 years. If an applicant selects (ii), its application must demonstrate that its analyses have been 6
 
TLAA for purposes of license renewal is defined in § 54.3.
To satisfy § 54.21(c)(1), the applicant must assess and list TLAAs and demonstrate compliance with (i), (ii), or (iii). If a license renewal applicant chooses to  
 
demonstrate that its analyses remain valid for 60 years pursuant to § 54.21(c)(1)(i), its  
 
application must demonstrate that existing analyses are valid for 60 years. If an  
 
applicant selects (ii), its application must demonstrate that its analyses have been 6 TLAA for purposes of license renew al is defined in § 54.3. projected to 60 years, such that no further analysis or management is necessary. If the applicant "cannot or chooses not to justify or extend an existing TLAA," its application
 
must list TLAAs and demonstrate that the effects of aging will be adequately managed for the period of extended operation pursuant to § 54.21(c)(1)(iii).
7  In other words, under (iii) the applicant can properly demonstrate that aging effects associated with the TLAA will be adequately managed by aging management programs. Moreover, unlike (i) and (ii), the word "analysis" does not even appear in (iii). Applicants selecting (iii) are not
 
required to perform, include, or demonstrate the adequacy of their analyses in their
 
applications.
Issuance of a renewed license with a condition requiring performance of certain
 
TLAA CUFens prior to the period of extended operation is consistent with
 
§ 54.21(c)(1)(iii) and does not render §54.21(c)(1)(ii) superfluous.
8  The plain language of the regulation and its subsections makes clear that a demonstration in the application
 
that a TLAA is either good for 60 years or has been projected to 60 years is only
 
required if the applicant selects § 54.21(c)(1)(i) or (ii). Applicants selecting either (i) or (ii) rest on existing or an extension of existing TLAA analyses alone. Therefore a license
 
condition for an applicant relying on (i) or (ii) to perform TLAA evaluations later would be
 
contrary to § 54.21(c)(1).
7 Nuclear Power Plant License Renewal; Re visions, Final Rule, 60 Fed. Reg. 22,461, 22,480 (May 8, 1995).
8 The Commission clearly and directly addr essed and accepted the use of "new commitments to monitor, manage, and corre ct age-related degradation unique to license renewal . . . ."  Nuclear Power Plant License Renewal, Final Rule, 56 Fed. Reg. 64,943, 64,946 (Dec. 13, 1991). The Commission reaffirmed this position when it revised Part 54 in 1995.
See 60 Fed. Reg. at 22473. If the Commission finds co mmitments acceptable, surely a license condition is acceptable as well. However, applicants selecting the (iii) option are not required to demonstrate that their existing TLAA analysis is either good for 60 years or the analysis has been
 
projected to 60 years. No analysis is required by (iii). Moreover, if such analyses
 
existed there would be no need for (iii). Applicants who select (iii) rest not on analyses
 
but on a demonstration that aging effects will be adequately managed.
9  Otherwise adding (iii) to the regulations would have been meaningless. 
 
One way for applicants to make the demonstration required by § 54.21(c)(1)(iii) is to implement a fatigue monitoring program c onsistent with the program described in GALL Section X.M1 Metal Fatigue of Reactor Coolant Pressure Boundary (Staff Exh. 7 at X M-1 to X M-2). In describing the elements of an acceptable aging management program ("AMP") for monitoring metal fatigue in Section X.M1, the NRC explained the
 
purpose of corrective actions, stating that an acceptable AMP for metal fatigue will be
 
one that:
[p]rovides for corrective actions to prevent the usage factor from exceeding the design code limit during the period of
 
extended operation.
Acceptable corrective actions include repair of the component, replacement of the component, and a more rigorous analysis of the component to demonstrate that the design code limit will not be exceeded during the extended period of operation. 
 
Id. (emphasis added). Thus, additional analyses as a corrective action (and license conditions to perform analyses as a corrective action) are treated no differently than 9 This is consistent with the definition of TLAA in § 54.3. The definition of TLAA does not suggest that license renewal applic ations must contain TLAA analys es or that applicants must demonstrate the adequacy of an existing TLAA or a TLAA projected to the end of the period of extended operation. Rather, it defines which existing TLAAs are within the scope of license renewal and thus must be consider ed by license renewal applicants. repair or replacement.
10  For a component that will not meet its acceptance criteria during the period of extended operation, the program described in the application may provide for, as corrective action, additional analysis, then, should the analysis not meet
 
the acceptance criteria, provide for repair or replacement of the component. 
 
Alternatively, the program could directly select analysis, repair, or replacement alone. 
 
These are all corrective actions under an aging management program. Accordingly, a
 
license condition to perform additional analysis prior to the period of extended operation
 
as part of an aging management program is absolutely consistent with § 54.21(c)(1)(iii)
 
and does not render § 54.21(c)(1)(i) or (ii) mere surplusage. Rather, reading
 
§ 54.21(c)(1) to require that applicants demonstrate the adequacy of all their analyses in
 
their applications would render § 54.21(c)(1)(iii) meaningless, precluding licensees from
 
being allowed to manage the effects of aging by repair, replacement, or additional more
 
rigorous analysis, as the regulation clearly allows. It would also force applicants to
 
perform analyses and make a demonstration not required by the Commission's


regulations.
projected to 60 years, such that no further analysis or management is necessary. If the applicant cannot or chooses not to justify or extend an existing TLAA, its application must list TLAAs and demonstrate that the effects of aging will be adequately managed for the period of extended operation pursuant to § 54.21(c)(1)(iii).7 In other words, under (iii) the applicant can properly demonstrate that aging effects associated with the TLAA will be adequately managed by aging management programs. Moreover, unlike (i) and (ii), the word analysis does not even appear in (iii). Applicants selecting (iii) are not required to perform, include, or demonstrate the adequacy of their analyses in their applications.
B. Response to Issue 1B The Board asked whether it is "legally permissible under 10 C.F.R. § 54.29 to  
Issuance of a renewed license with a condition requiring performance of certain TLAA CUFens prior to the period of extended operation is consistent with
§ 54.21(c)(1)(iii) and does not render §54.21(c)(1)(ii) superfluous.8 The plain language of the regulation and its subsections makes clear that a demonstration in the application that a TLAA is either good for 60 years or has been projected to 60 years is only required if the applicant selects § 54.21(c)(1)(i) or (ii). Applicants selecting either (i) or (ii) rest on existing or an extension of existing TLAA analyses alone. Therefore a license condition for an applicant relying on (i) or (ii) to perform TLAA evaluations later would be contrary to § 54.21(c)(1).
7 Nuclear Power Plant License Renewal; Revisions, Final Rule, 60 Fed. Reg. 22,461, 22,480 (May 8, 1995).
8 The Commission clearly and directly addressed and accepted the use of new commitments to monitor, manage, and correct age-related degradation unique to license renewal . . . . Nuclear Power Plant License Renewal, Final Rule, 56 Fed. Reg. 64,943, 64,946 (Dec. 13, 1991). The Commission reaffirmed this position when it revised Part 54 in 1995. See 60 Fed. Reg. at 22473. If the Commission finds commitments acceptable, surely a license condition is acceptable as well.


issue a license renewal even though certain TLAAs have not been performed."  June 27
However, applicants selecting the (iii) option are not required to demonstrate that their existing TLAA analysis is either good for 60 years or the analysis has been projected to 60 years. No analysis is required by (iii). Moreover, if such analyses existed there would be no need for (iii). Applicants who select (iii) rest not on analyses but on a demonstration that aging effects will be adequately managed.9 Otherwise adding (iii) to the regulations would have been meaningless.
One way for applicants to make the demonstration required by § 54.21(c)(1)(iii) is to implement a fatigue monitoring program consistent with the program described in GALL Section X.M1 Metal Fatigue of Reactor Coolant Pressure Boundary (Staff Exh. 7 at X M-1 to X M-2). In describing the elements of an acceptable aging management program (AMP) for monitoring metal fatigue in Section X.M1, the NRC explained the purpose of corrective actions, stating that an acceptable AMP for metal fatigue will be one that:
[p]rovides for corrective actions to prevent the usage factor from exceeding the design code limit during the period of extended operation. Acceptable corrective actions include repair of the component, replacement of the component, and a more rigorous analysis of the component to demonstrate that the design code limit will not be exceeded during the extended period of operation.
Id. (emphasis added). Thus, additional analyses as a corrective action (and license conditions to perform analyses as a corrective action) are treated no differently than 9
This is consistent with the definition of TLAA in § 54.3. The definition of TLAA does not suggest that license renewal applications must contain TLAA analyses or that applicants must demonstrate the adequacy of an existing TLAA or a TLAA projected to the end of the period of extended operation. Rather, it defines which existing TLAAs are within the scope of license renewal and thus must be considered by license renewal applicants.


Order at 3. Section 54.29 provides that the Commission may issue a renewed license if  
repair or replacement.10 For a component that will not meet its acceptance criteria during the period of extended operation, the program described in the application may provide for, as corrective action, additional analysis, then, should the analysis not meet the acceptance criteria, provide for repair or replacement of the component.
 
Alternatively, the program could directly select analysis, repair, or replacement alone.
it finds that: (a) Actions have been identified and have been or will be taken with 10 As a corrective action, Entergy has perfo rmed more rigorous analyses of critical components and submitted them to the Staff.
These are all corrective actions under an aging management program. Accordingly, a license condition to perform additional analysis prior to the period of extended operation as part of an aging management program is absolutely consistent with § 54.21(c)(1)(iii) and does not render § 54.21(c)(1)(i) or (ii) mere surplusage. Rather, reading
See e.g.
§ 54.21(c)(1) to require that applicants demonstrate the adequacy of all their analyses in their applications would render § 54.21(c)(1)(iii) meaningless, precluding licensees from being allowed to manage the effects of aging by repair, replacement, or additional more rigorous analysis, as the regulation clearly allows. It would also force applicants to perform analyses and make a demonstration not required by the Commissions regulations.
Vermont Yankee License Renewal Application Amendments 31 (Staff Exh. 22), 33 (Sta ff Exh. 8), and 34 (Entergy Exh. E2-28). respect to matters identified in paragraphs (a)(1) and (a)(2) of this section, such that there is reasonable assurance that the activities authorized by
B.      Response to Issue 1B The Board asked whether it is legally permissible under 10 C.F.R. § 54.29 to issue a license renewal even though certain TLAAs have not been performed. June 27 Order at 3. Section 54.29 provides that the Commission may issue a renewed license if it finds that:
 
(a) Actions have been identified and have been or will be taken with 10 As a corrective action, Entergy has performed more rigorous analyses of critical components and submitted them to the Staff. See e.g. Vermont Yankee License Renewal Application Amendments 31 (Staff Exh. 22), 33 (Staff Exh. 8), and 34 (Entergy Exh. E2-28).
the renewed license will continue to be conducted in accordance with the
 
CLB . . . . These matters are:
  . . .
(2) time-limited aging analyses that have been identified to require review
 
under § 54.21(c).  


respect to matters identified in paragraphs (a)(1) and (a)(2) of this section, such that there is reasonable assurance that the activities authorized by the renewed license will continue to be conducted in accordance with the CLB . . . . These matters are:
          ...
(2) time-limited aging analyses that have been identified to require review under § 54.21(c).
(emphasis added).
(emphasis added).
Accordingly, a renewed license may be issued if there is reasonable assurance that actions will be taken to ensure continued compliance with the CLB. Because license conditions are binding requirements, license conditions can provide reasonable  
Accordingly, a renewed license may be issued if there is reasonable assurance that actions will be taken to ensure continued compliance with the CLB. Because license conditions are binding requirements, license conditions can provide reasonable assurance that actions necessary for compliance with Commission regulations will be taken.11 Entergy is relying upon § 54.21(c)(1)(iii). Entergy has appropriately identified TLAAs and is demonstrating that aging effects will be adequately managed in lieu of relying on an existing analyses or analyses projected to the end of the period of extended operation. The proposed license condition will ensure that actions will be taken to ensure that the effects of aging will be adequately managed and is thus consistent with § 54.29.12 11 See 56 Fed. Reg. at 64,943 (Commission accepting the use of licensee commitments to monitor, manage, and correct age-related degradation). See also Private Fuel Storage LLC (Independent Spent Fuel Storage Installation), CLI-00-13, 52 NRC 23, 29-30 (2000) (PFS)
(stating that license conditions can be an acceptable method for providing reasonable assurance of financial qualifications under 10 C.F.R. Part 72 and noting that the material issue for compliance with 10 C.F.R. § 72.22(e) is whether the applicant will have adequate funds not whether it already has them).
12 See supra note 8. Furthermore, Commission law supports the proposition that license conditions requiring post-licensing verification are acceptable. See PFS, CLI-00-13, 52 NRC at
: 34. In PFS, the Commission required the applicant produce a sample contract of the type it would use to satisfy its financial assurance commitments so that the intervenor could challenge it and, through the hearing process, a sample contract could be approved by the Board for the Staff to use in verifying the applicants compliance with its post-licensing commitments. The license condition at issue here requires that Entergy perform confirmatory calculations for the core spray and reactor recirculation outlet nozzles using the same method it used for the feedwater nozzle.
See Staff Exh. 1 at 43. Entergys calculation for the feedwater nozzle is thus like the sample (continued. . .)


assurance that actions necessary for compliance with Commission regulations will be
C.       Public Scrutiny and Due Process To the extent that NEC claims that allowing an applicant to select
 
§ 54.21(c)(1)(iii) instead of (i) or (ii) would frustrate public scrutiny of TLAA methodology,13 is an attack on the Commissions regulation and thus contravenes 10 C.F.R. § 2.335(a) 14 which prohibits attacks on the Commissions regulations in the absence of a waiver of § 2.335(a) by the Commission.15 Furthermore, an applicants reliance on § 54.21(c)(1)(iii) does not preclude members of the public from scrutinizing and challenging the adequacy of the licensees demonstration that the effects of aging will be adequately managed. As this case illustrates, NEC first challenged the adequacy of Entergys plan to manage aging in accordance with § 54.21(c)(1)(iii) generally. Then, through Contentions 2A and 2B, NEC mounted a specific challenge to a portion of Entergys aging management plan corrective actionsby taking issue with the method Entergy used to refine its CUFen analysis of critical components. Moreover, there has been no showing that due process, as a matter of law, requires that an agency require actual testing and analyses prior to
taken.11  Entergy is relying upon § 54.21(c)(1)(iii). Entergy has appropriately identified TLAAs and is demonstrating that aging effects will be adequately managed in lieu of
(. . .continued) contract in PFS. Through its contentions, NEC has challenged the method Entergys for calculation CUFens.
 
13 See June 27 Order at 3 (quoting New England Coalition Inc. Initial Statement of Position (Apr. 28, 2008) at 19.
relying on an existing analyses or analyses projected to the end of the period of
14 Section 2.335(a) prohibits challenges to the Commissions regulations in any adjudicatory subject to Part 2 unless a party to the proceeding requests and receives pursuant to
 
§ 2.335(b) a wavier of § 2.335(a) on the basis of special circumstances with respect to the subject matter of the particular proceeding such that the rule, regulation, or subsection thereof does not serve the purposes for which it was adopted.
extended operation. The proposed license condition will ensure that actions will be
15 See Entergy Nuclear Vermont Yankee, LLC & Entergy Nuclear Operations, Inc.
 
(Vermont Yankee Nuclear Power Station), CLI-07-16, 65 NRC 371, 383 (2007).
taken to ensure that the effects of aging will be adequately managed and is thus
 
consistent with § 54.29.
12 11 See 56 Fed. Reg. at 64,943 (Commission accepting the use of licensee commitments to monitor, manage, and correct age-related degradation).
See also Private Fuel Storage LLC (Independent Spent Fuel Storage Installati on), CLI-00-13, 52 NRC 23, 29-30 (2000) ("
PFS") (stating that "license conditions can be an acc eptable method for providing reasonable assurance of financial qualifications under 10 C.F.R. Part 72" and noting that the material issue for compliance with 10 C.F.R. § 72.22(e) is w hether the applicant will have adequate funds not whether it already has them).
12 See supra note 8. Furthermore, Commission law supports the proposition that license conditions requiring post-licensing verification are acceptable.
See PFS , CLI-00-13, 52 NRC at
: 34. In PFS , the Commission required the applicant produce a sample contract of the type it would use to satisfy its financial assurance commitments so that the intervenor could challenge it and, through the hearing process, a sample contract could be approved by the Board for the Staff to use in verifying the applicant's compliance with its post-licensing commitments. The license condition at issue here requires that Entergy perform confirmatory calculations for the core spray and reactor recirculation outlet nozzles using the same method it used for the feedwater nozzle.
See Staff Exh. 1 at 43. Entergy's calculation fo r the feedwater nozzle is thus like the sample (continued. . .)    C. Public Scrutiny and Due Process To the extent that NEC claims that allowing an applicant to select  
§ 54.21(c)(1)(iii) instead of (i) or (ii) "would 'frustrate public scrutiny of TLAA  
 
methodology,'"
13 is an attack on the Commission's regulation and thus contravenes 10 C.F.R. § 2.335(a) 14 which prohibits attacks on the Commission's regulations in the absence of a waiver of § 2.335(a) by the Commission.
15   Furthermore, an applicant's reliance on § 54.21(c)(1)(iii) does not preclude  
 
members of the public from scrutinizing and challenging the adequacy of the licensee's
 
demonstration that the effects of aging will be adequately managed. As this case  
 
illustrates, NEC first challenged the adequacy of Entergy's plan to manage aging in  
 
accordance with § 54.21(c)(1)(iii) generally. Then, through Contentions 2A and 2B, NEC  
 
mounted a specific challenge to a portion of Entergy's aging management plan-
 
corrective actions-by taking issue with the method Entergy used to refine its CUFen  
 
analysis of critical components. Moreover, there has been no showing that due process, as a matter of law, requires that an agency require actual testing and analyses prior to
(. . .continued) contract in PFS. Through its contentions, NEC has challenged the method Entergy's for calculation CUFens.
13 See June 27 Order at 3 (quoting New England C oalition Inc. Initial Statement of Position (Apr. 28, 2008) at 19.  
 
14 Section 2.335(a) prohibits challenges to the Commission's regulations in any adjudicatory subject to Part 2 unless a party to the proceeding requests and receives pursuant to  
§ 2.335(b) a wavier of § 2.335(a) on the basis of s pecial circumstances with respect to the subject matter of the particular proceeding such that the rule, regulation, or subsection thereof does not serve the purposes for which it was adopted.  
 
15 See Entergy Nuclear Vermont Yankee, LLC & Entergy Nuclear Operations, Inc. (Vermont Yankee Nuclear Power Station), CLI-07-16, 65 NRC 371, 383 (2007). issuing a license. II. Staff Response to Issue 2 The second legal issue the Board requested that the parties brief involves applicants referencing NUREGs to demonstrate that aging will be adequately managed. 


issuing a license.
II. Staff Response to Issue 2 The second legal issue the Board requested that the parties brief involves applicants referencing NUREGs to demonstrate that aging will be adequately managed.
Specifically, the Board asked the parties:
Specifically, the Board asked the parties:
Does a renewal application that contains a short written description of an aging management program that lacks content or details but instead  
Does a renewal application that contains a short written description of an aging management program that lacks content or details but instead states that it is comparable to and based on the relevant section of NUREG-1801 or EPRI NSAC-202L, demonstrate that the effects of aging will be adequately managed as required by 10 C.F.R.
 
        §§ 54.21(a)(3) and 54.21(c)(1)(iii)?
states that it is "comparable to" and "based on" the relevant section of  
June 27 Order at 5.
 
An application that contains a short written description of an AMP stating that it is comparable to and based on NRC guidance documents, is sufficient to demonstrate that the effects of aging will be adequately managed as required by 10 C.F.R.
NUREG-1801 or EPRI NSAC-202L, "demonstrate that the effects of  
§§ 54.21(a)(3) and 54.21(c)(1)(iii). Calculational methods and details are not required to demonstrate regulatory compliance. There is no regulatory requirement regarding the amount of detail that the applicant must include in describing its Aging Management Programs. Rather, § 54.21(a)(3) and § 54.21(c)(1)(iii) simply require that applicants demonstrate that the effects of aging will be adequately managed. As discussed below, the NRC has provided licensees with guidance on how to make the required demonstrations. Entergys approach is consistent with that guidance.
 
B.     Staff Guidance The Staff has issued a number of license renewal guidance documents including
aging will be adequately managed" as required by 10 C.F.R.  
 
§§ 54.21(a)(3) and 54.21(c)(1)(iii)?  
 
June 27 Order at 5.  
 
An application that contains a short written description of an AMP stating that it is "comparable to" and "based on" NRC guidance documents, is sufficient to "demonstrate that the effects of aging will be adequately managed" as required by 10 C.F.R.  
 
§§ 54.21(a)(3) and 54.21(c)(1)(iii). Calculational methods and details are not required to  
 
demonstrate regulatory compliance. There is no regulatory requirement regarding the  
 
amount of detail that the applicant must include in describing its Aging Management  
 
Programs. Rather, § 54.21(a)(3) and § 54.21(c)(1)(iii) simply require that applicants  
 
"demonstrate" that the effects of aging will be "adequately managed.As discussed  
 
below, the NRC has provided licensees with guidance on how to make the required  
 
demonstrations. Entergy's approach is consistent with that guidance.
B. Staff Guidance The Staff has issued a number of license renewal guidance documents including   GALL, SRP-LR, 16 and Regulatory Guide 1.188.
17  At their inception, the Staff recommended and the Commission approved the approach to "focus staff review guidance in [the] standard review plan on areas where existing programs should be
 
augmented . . . to provide credit for ex isting programs for license renewal."
Memorandum from Annette L. Vietti-Cook, Se cretary to William D. Travers, Executive Director of Operations, Staff Requirements-SECY-99-148-Credit for Existing Programs


for License Renewal (Aug. 27, 1999) (ADAMS Accession No. ML003751930). At this  
GALL, SRP-LR,16 and Regulatory Guide 1.188.17 At their inception, the Staff recommended and the Commission approved the approach to focus staff review guidance in [the] standard review plan on areas where existing programs should be augmented . . . to provide credit for existing programs for license renewal.
 
Memorandum from Annette L. Vietti-Cook, Secretary to William D. Travers, Executive Director of Operations, Staff Requirements-SECY-99-148-Credit for Existing Programs for License Renewal (Aug. 27, 1999) (ADAMS Accession No. ML003751930). At this time, the Commission directed the Staff to proceed with the development of the Generic Aging Lessons Learned (GALL) report and the license renewal Standard Review Plan (SRP) and regulatory guide and to seek stakeholders participation. Id. See also NUREG -1739, Analysis of Public Comments on the Improved License Renewal Guidance Documents (Apr. 2001)18; Transcript, United States of America Nuclear 16 NUREG-1800, Rev. 1, Standard Review Plan for Review of License Renewal Applications for Nuclear Power Plants ("SRP-LR") (Sept. 2005).
time, the Commission directed the "Staff to proceed with the development of the Generic  
17 Standard Format and Content for Applications To Renew Nuclear Power Plant Operating Licenses (July 2001) (ADAMS Accession No. ML012010322).
 
18 For example, NUREG-1739 includes comments from industry representatives regarding the level of detail required to be in an application. In response, the Staff stated that an applicant who references GALL in a license renewal application would be expected to verify that the programs relied on for a specific structures or components is bounded by the program evaluated in GALL, in order to use GALL as a reference for an acceptable program in the same way that topical reports are used as references for accepted programs. The staff review would intend to use GALL to focus on the areas where further evaluation is recommended or a plant-specific aging management program is proposed. By referencing the GALL, the staff expects that an applicant would decrease the volume of the application and the level of effort required for the staff review.
Aging Lessons Learned (GALL) report and the license renewal Standard Review Plan (SRP) and regulatory guide" and to "seek stakeholders' participation."
The references along with exceptions to the GALL report may be in tables, footnotes to tables, or in a separate section in the front or the back of the application.
Id. See also NUREG -1739, Analysis of Public Comments on the Improved License Renewal Guidance Documents (Apr. 2001) 18; Transcript, United States of America Nuclear 16 NUREG-1800, Rev. 1, Standard Review Plan for Review of License Renewal Applications for Nuclear Power Plants ("SRP-LR") (Sept. 2005).
(continued. . .)
17 Standard Format and Content for Applicat ions To Renew Nuclear Power Plant Operating Licenses (July 2001) (ADAMS Accession No. ML012010322).
18 For example, NUREG-1739 includes comm ents from industry representatives regarding the level of detail required to be in an app lication. In response, the Staff stated that an applicant who references GALL in a license renewal application would be expected to verify that the programs relied on for a specific structures or components is bounded by the  
 
program evaluated in GALL, in or der to use GALL as a reference for an acceptable program in the same way that topical reports  
 
are used as references for acc epted programs. The staff review would intend to use GALL to focus on the areas where further  
 
evaluation is recommended or a plant-specific aging management program is proposed. By referencing the GALL, the  
 
staff expects that an applicant w ould decrease the volume of the application and the level of effort required for the staff review.  
 
The references along with except ions to the GALL report may be in tables, footnotes to tables, or in a separate section in the front or the back of the application. (continued. . .)   Regulatory Commission, Office of the Secretary, Briefing on License Renewal Aging Lessons Learned (GALL) Report, Standard review Plan (SRP), and Regulatory Guide (Dec. 4, 2000) (ADAMS Accession No. ML003775462). On August 3, 2001 the GALL
 
Report Rev 0, SRP-LR, and Regulatory Guide 1.188 were released to the public. 


Regulatory Commission, Office of the Secretary, Briefing on License Renewal Aging Lessons Learned (GALL) Report, Standard review Plan (SRP), and Regulatory Guide (Dec. 4, 2000) (ADAMS Accession No. ML003775462). On August 3, 2001 the GALL Report Rev 0, SRP-LR, and Regulatory Guide 1.188 were released to the public.
Issuance, Availability of Regulatory Guide, Standard Review Plan, and Generic Again Lessons Learned (GALL) Report, 66 Fed. Reg. 40,750 (Aug. 3, 2001).
Issuance, Availability of Regulatory Guide, Standard Review Plan, and Generic Again Lessons Learned (GALL) Report, 66 Fed. Reg. 40,750 (Aug. 3, 2001).
The Commission has recognized that license renewal guidance documents  
The Commission has recognized that license renewal guidance documents serve to enhance the predictability, consistency, and efficiency of the NRC reviews of license renewal applications. SECY-01-0074, Approval to Publish Generic License Renewal Guidance Documents (July 2, 2001) (ADAMS Accession No. ML011860200).
Accordingly, GALL provides important guidance concerning the preparation and review of license renewal applications.19 In GALL Rev. 0 at iii, the NRC stated that GALL:
contains the staff's generic evaluation of the existing plant programs and documents the technical basis for determining where existing programs are adequate without modification and where existing programs should be augmented for the extended period of operation. The evaluation results documented in the GALL report indicate that many of the existing programs are adequate to manage the aging effects for particular structures or components for license renewal without change. The GALL report also contains recommendations on specific areas for which existing programs should be augmented for license renewal. An applicant may reference the GALL report in a license renewal application to demonstrate that the programs at the applicants facility correspond to those reviewed
(. . .continued)
NUREG-1739 at Table C: Disposition of Written Public Comments, Comment NMC-2, Item C.3.14.
19 The first edition of GALL was published in 2001. See NUREG-1801, Generic Aging Lessons Learned (GALL) Report, Rev. 0 (July 2001) (GALL Rev. 0). Since that time, one revision of GALL has been released. See NUREG-1801, Generic Aging Lessons Learned (GALL)
Rev. 1 (Sept. 2005).


"serve to enhance the predictability, consistency, and efficiency of the NRC reviews of
and approved in the GALL report and that no further staff review is required.
 
license renewal applications."  SECY-01-0074, Approval to Publish Generic License
 
Renewal Guidance Documents (July 2, 2001) (ADAMS Accession No. ML011860200). 
 
Accordingly, GALL provides important guidance concerning the preparation and review
 
of license renewal applications.
19  In GALL Rev. 0 at iii, the NRC stated that GALL:
contains the staff's generic evaluation of the existing plant programs and documents the technical basis for determining where existing programs are
 
adequate without modification and where existing programs should be
 
augmented for the extended period of operation. The evaluation results
 
documented in the GALL report indicate that many of the existing
 
programs are adequate to manage the aging effects for particular
 
structures or components for license renewal without change. The GALL
 
report also contains recommendations on specific areas for which existing
 
programs should be augmented for license renewal. An applicant may reference the GALL report in a license renewal application to demonstrate that the programs at the applicant's facility correspond to those reviewed
(. . .continued)
NUREG-1739 at Table C: Disposition of Writt en Public Comments, Comment NMC-2, Item C.3.14. 19 The first edition of GALL was published in 2001.
See NUREG-1801, Generic Aging Lessons Learned (GALL) Report, Rev. 0 (July 2001) ("GALL Rev. 0"). Since that time, one revision of GALL has been released.
See NUREG-1801, Generic Aging Lessons Learned (GALL)
Rev. 1 (Sept. 2005). and approved in the GALL report and that no further staff review is required.
(emphasis added).
(emphasis added).
Likewise the SRP provides guidance as to the question of acceptability of the statement that the aging management plan is "comparable to" and "based on" the  
Likewise the SRP provides guidance as to the question of acceptability of the statement that the aging management plan is comparable to and based on the relevant section of GALL, the SRP-LR at 3.0.1 states that:
 
[i]f an applicant takes credit for a program in the GALL Report, it is incumbent on the applicant to ensure that the plant program contains all the elements of the referenced GALL Report program.
relevant section of GALL, the SRP-LR at 3.0.1 states that:
In addition, the conditions at the plant must be bounded by the conditions for which the GALL Report program was evaluated. The above verifications must be documented on-site in an auditable form. The applicant should include a certification in the license renewal application that the verifications have been completed and are documented on-site in an auditable form.
[i]f an applicant takes credit for a program in the GALL Report, it is incumbent on the applicant to ensure that the plant program  
Therefore, a written description of an AMP stating that it is comparable to or based on NRC guidance documents is acceptable.
 
In the context of Flow Accelerated Corrosion, the NRC Guidance documents reference the Electric Power Research Institute (EPRI) guidelines in the Nuclear Safety Analysis Center (NSAC)-202L-R2 for an effective flow-accelerated corrosion (FAC) program. See GALL, Rev. 1, Vol. 2 at XI M-61. The Vermont Yankee FAC AMP also references the EPRI Report and states that the program is consistent with GALL. See LRA at Appendix B-47. Similarly, the Vermont Yankee FMP references GALL and has been found to be consistent with GALL. See Staff Exh. 1 at 3-75. As discussed above, this is sufficient to demonstrate that the effects of aging will be adequately managed.
contains all the elements of the referenced GALL Report program.  
 
In addition, the conditions at the plant must be bounded by the  
 
conditions for which the GALL Report program was evaluated. The  
 
above verifications must be documented on-site in an auditable  
 
form. The applicant should include a certification in the license  
 
renewal application that the verifications have been completed and  
 
are documented on-site in an auditable form.  
 
Therefore, a written description of an AMP stating that it is "comparable to" or "based on" NRC guidance documents is acceptable.
In the context of Flow Accelerated Corrosion, the NRC Guidance documents reference the Electric Power Research Institute (EPRI) guidelines in the Nuclear Safety  
 
Analysis Center (NSAC)-202L-R2 for an effective flow-accelerated corrosion (FAC)  
 
program.
See GALL, Rev. 1, Vol. 2 at XI M-61. The Vermont Yankee FAC AMP also references the EPRI Report and states that the program is consistent with GALL.
See LRA at Appendix B-47. Similarly, the Vermont Yankee FMP references GALL and has  
 
been found to be consistent with GALL.
See Staff Exh. 1 at 3-75. As discussed above, this is sufficient to "demonstrate" that the effects of aging will be "adequately managed."  C. Audit Programs Provide Assurance that AMPs are Adequate Applicants do not need to provide a detailed explanation or description of an AMP in their applications because the Staff verifies the consistency of licensee AMPs with Staff guidance through audits.
20  Thus, when a licensee states that its program "will be identical to the existing program," is "c omparable" to the program described in GALL, is "based on" EPRI Report NSAC-202L-R2, and includes "(a) an evaluation to determine
 
critical locations, (b) initial operational inspections to determine the extent of thinning at
 
these locations, and (c) follow-up inspections to confirm predications, or repair or
 
replace components as necessary," that is sufficient for the purposes of Part 54.
See June 27 Order at 4-5.
The Staff has audited Entergy's FAC and other AMPs and found Entergy's
 
approach to be consistent with the approved regulatory guidance.
See Audit and Review Report for Plant Aging Management Programs at B 3.0.1.2. Therefore, the
 
applicant's FAC program to manage the aging effects of FAC is adequate.
20 "An audit and review is conducted at the applic ant's facility to evaluate those AMRs or AMPs that the applicant claims to be consistent with the GA LL Report. An audit also includes technical assessments of exceptions or enhancements to the GALL Report AMP program elements. Reviews are performed to address thos e AMRs or AMPs related to emergent issues, stated to be not consistent with the GALL Report, or based on an NRC-approved precedent (e.g., AMRs and AMPs addressed in an NRC SER of a prev ious LRA). As a result of the criteria established in 10 CFR Part 54, and the guidance provided in SRP-LR, GALL Report, Regulatory Guide1.188, and the applicant's exceptions and/
or enhancements to a GALL Report AMP . . . ."
NUREG-1800, at Section 3.0.1. CONCLUSION As explained above, the NRC Staff has not changed its interpretation of
§ 54.21(c)(1) and Entergy is relying upon § 54.21(c)(1)(iii). With regard to Issues 1A and 1B, the license condition requiring Entergy to complete two CUFen calculations at least
 
two years prior to the period of extended operation is not inconsistent with either
 
§§ 54.21(c) or 54.29. With regard to Issue 2, Entergy's application has demonstrated
 
that the effects of aging will be adequately managed by providing a written description
 
that states its AMP is "comparable to" and "based on" the relevant section of
 
NUREG-1801 or EPRI NSAC-202L.
Respectfully submitted,        /RA/
Lloyd B. Subin Counsel for NRC Staff 
 
        /RA/        Mary C. Baty Counsel for NRC Staff
 
Dated at Rockville, Maryland 
 
this 9th day of July, 2008
 
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of )  ) ENTERGY NUCLEAR VERMONT YANKEE, ) Docket No. 50-271-LR
 
LLC, and ENTERGY NUCLEAR )    OPERATIONS, INC. )  ASLBP No. 06-849-03-LR  )
(Vermont Yankee Nuclear Power Station) )
CERTIFICATE OF SERVICE
 
I hereby certify that copies of the "NRC STAFF'S BRIEF IN RESPONSE TO BOARD ORDER"
 
in the above-captioned proceeding have been served on the following by electronic mail with
 
copies by deposit in the NRC's internal mail system or, as indicated by an asterisk, by electronic mail, with copies by U.S. mail, first class, this 9 th day of July, 2008.
 
Alex S. Karlin, Chair
 
Administrative Judge
 
Atomic Safety and Licensing Board 
 
U.S. Nuclear Regulatory Commission
 
Washington, DC  20555-0001
 
E-mail: ask2@nrc.gov Office of the Secretary
 
Attn: Rulemakings and Adjudications Staff
 
Mail Stop: O-16G4
 
U.S. Nuclear Regulatory Commission
 
Washington, DC  20555-0001
 
E-mail: hearingdocket@nrc.gov William H. Reed*
 
Administrative Judge
 
Atomic Safety and Licensing Board 
 
1819 Edgewood Lane
 
Charlottesville, VA 22902
 
E-mail: whrcville@embarqmail.com Marcia Carpentier, Law Clerk
 
Atomic Safety and Licensing Board 
 
Mail Stop: T-3F23
 
U.S. Nuclear Regulatory Commission
 
Washington, DC  20555-0001 E-mail: mxc7@nrc.gov Richard E. Wardwell
 
Administrative Judge
 
Atomic Safety and Licensing Board 
 
U.S. Nuclear Regulatory Commission
 
Washington, DC  20555-0001
 
E-mail: rew@nrc.gov Lauren Bregman, Law Clerk
 
Atomic Safety and Licensing Board
 
U.S. Nuclear Regulatory Commission
 
Mail Stop: T-3 F23
 
Washington, D.C. 20555-0001
 
E-mail: lauren.bregman@nrc.gov Office of Commission Appellate
 
Adjudication
 
Mail Stop: O-16G4
 
U.S. Nuclear Regulatory Commission
 
Washington, DC  20555-0001
 
E-mail: OCAAmail@nrc.gov Peter C.L. Roth, Esq*
 
Office of the Attorney General
 
33 Capitol Street
 
Concord, NH  3301
 
E-mail: peter.roth@doj.nh.gov Ronald A. Shems, Esq.*
Karen Tyler, Esq.
 
Shems Dunkiel Kassel & Saunders, PLLC
 
91 College Street
 
Burlington, VT  05401 E-mail: rshems@sdkslaw.com Ktyler@sdkslaw.com Anthony Z. Roisman, Esq.*
National Legal Scholars Law Firm 
 
84 East Thetford Rd.
 
Lyme, NH  03768
 
E-mail: aroisman@nationallegalscholars.com David R. Lewis, Esq.*
 
Matias F. Travieso-Diaz, Esq
 
Elina Teplinsky, Esq
 
Blake J. Nelson, Esq
 
Pillsbury Winthrop Shaw Pittman LLP
 
2300 N Street, NW
 
Washington, DC  20037-1128
 
E-mail: david.lewis@pillsburylaw.com matias.travieso-diaz@pillsburylaw.com elina.teplinsky@pillsburylaw.com
 
b lake.nelson@pillsburylaw.com Sarah Hofmann, Esq.*
Director of Public Advocacy 
 
Department of Public Service
 
112 State Street - Drawer 20
 
Montpelier, VT  05620-2601
 
E-mail: sarah.hofmann@state.vt.us Diane Curran*
 
Harmon, Curran, Spielberg, & Eisenberg, LLP
 
1726 M Street N.W., Suite 600
 
Washington, D.C. 20036
 
E-mail:  dcurran@harmoncurran.com Matthew Brock*
 
Assistant Attorney General, Chief
 
Environmental Protection Division
 
Office of the Attorney General


One Ashburton Place, 18th Floor
C.      Audit Programs Provide Assurance that AMPs are Adequate Applicants do not need to provide a detailed explanation or description of an AMP in their applications because the Staff verifies the consistency of licensee AMPs with Staff guidance through audits.20 Thus, when a licensee states that its program will be identical to the existing program, is comparable to the program described in GALL, is based on EPRI Report NSAC-202L-R2, and includes (a) an evaluation to determine critical locations, (b) initial operational inspections to determine the extent of thinning at these locations, and (c) follow-up inspections to confirm predications, or repair or replace components as necessary, that is sufficient for the purposes of Part 54. See June 27 Order at 4-5.
The Staff has audited Entergys FAC and other AMPs and found Entergys approach to be consistent with the approved regulatory guidance. See Audit and Review Report for Plant Aging Management Programs at B 3.0.1.2. Therefore, the applicants FAC program to manage the aging effects of FAC is adequate.
20 An audit and review is conducted at the applicants facility to evaluate those AMRs or AMPs that the applicant claims to be consistent with the GALL Report. An audit also includes technical assessments of exceptions or enhancements to the GALL Report AMP program elements. Reviews are performed to address those AMRs or AMPs related to emergent issues, stated to be not consistent with the GALL Report, or based on an NRC-approved precedent (e.g.,
AMRs and AMPs addressed in an NRC SER of a previous LRA). As a result of the criteria established in 10 CFR Part 54, and the guidance provided in SRP-LR, GALL Report, Regulatory Guide1.188, and the applicants exceptions and/or enhancements to a GALL Report AMP . . . .
NUREG-1800, at Section 3.0.1.


Boston, MA 02108
CONCLUSION As explained above, the NRC Staff has not changed its interpretation of
§ 54.21(c)(1) and Entergy is relying upon § 54.21(c)(1)(iii). With regard to Issues 1A and 1B, the license condition requiring Entergy to complete two CUFen calculations at least two years prior to the period of extended operation is not inconsistent with either
§§ 54.21(c) or 54.29. With regard to Issue 2, Entergys application has demonstrated that the effects of aging will be adequately managed by providing a written description that states its AMP is comparable to and based on the relevant section of NUREG-1801 or EPRI NSAC-202L.
Respectfully submitted,
                                                      /RA/
Lloyd B. Subin Counsel for NRC Staff
                                                      /RA/
Mary C. Baty Counsel for NRC Staff Dated at Rockville, Maryland this 9th day of July, 2008


E-mail: matthew.brock@state.ma.us
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of                                    )
                                                    )
ENTERGY NUCLEAR VERMONT YANKEE,                      )            Docket No. 50-271-LR LLC, and ENTERGY NUCLEAR                          )
OPERATIONS, INC.                                  )            ASLBP No. 06-849-03-LR
                                                    )
(Vermont Yankee Nuclear Power Station)              )
CERTIFICATE OF SERVICE I hereby certify that copies of the NRC STAFFS BRIEF IN RESPONSE TO BOARD ORDER in the above-captioned proceeding have been served on the following by electronic mail with copies by deposit in the NRCs internal mail system or, as indicated by an asterisk, by electronic mail, with copies by U.S. mail, first class, this 9th day of July, 2008.
Alex S. Karlin, Chair                                  Office of the Secretary Administrative Judge                                  Attn: Rulemakings and Adjudications Staff Atomic Safety and Licensing Board                      Mail Stop: O-16G4 U.S. Nuclear Regulatory Commission                    U.S. Nuclear Regulatory Commission Washington, DC 20555-0001                              Washington, DC 20555-0001 E-mail: ask2@nrc.gov                                  E-mail: hearingdocket@nrc.gov William H. Reed*                                      Marcia Carpentier, Law Clerk Administrative Judge                                  Atomic Safety and Licensing Board Atomic Safety and Licensing Board                      Mail Stop: T-3F23 1819 Edgewood Lane                                    U.S. Nuclear Regulatory Commission Charlottesville, VA 22902                              Washington, DC 20555-0001 E-mail: whrcville@embarqmail.com                      E-mail: mxc7@nrc.gov Richard E. Wardwell                                    Lauren Bregman, Law Clerk Administrative Judge                                  Atomic Safety and Licensing Board Atomic Safety and Licensing Board                      U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission                    Mail Stop: T-3 F23 Washington, DC 20555-0001                              Washington, D.C. 20555-0001 E-mail: rew@nrc.gov                                    E-mail: lauren.bregman@nrc.gov Office of Commission Appellate                        Peter C.L. Roth, Esq*
Adjudication                                        Office of the Attorney General Mail Stop: O-16G4                                      33 Capitol Street U.S. Nuclear Regulatory Commission                    Concord, NH 3301 Washington, DC 20555-0001                              E-mail: peter.roth@doj.nh.gov E-mail: OCAAmail@nrc.gov


        /RA/ _____________________________
Ronald A. Shems, Esq.*                          Anthony Z. Roisman, Esq.*
Karen Tyler, Esq.                              National Legal Scholars Law Firm Shems Dunkiel Kassel & Saunders, PLLC          84 East Thetford Rd.
91 College Street                              Lyme, NH 03768 Burlington, VT 05401                            E-mail: aroisman@nationallegalscholars.com E-mail: rshems@sdkslaw.com Ktyler@sdkslaw.com David R. Lewis, Esq.*                          Sarah Hofmann, Esq.*
Matias F. Travieso-Diaz, Esq                    Director of Public Advocacy Elina Teplinsky, Esq                            Department of Public Service Blake J. Nelson, Esq                            112 State Street - Drawer 20 Pillsbury Winthrop Shaw Pittman LLP            Montpelier, VT 05620-2601 2300 N Street, NW                              E-mail: sarah.hofmann@state.vt.us Washington, DC 20037-1128 E-mail: david.lewis@pillsburylaw.com matias.travieso-diaz@pillsburylaw.com elina.teplinsky@pillsburylaw.com blake.nelson@pillsburylaw.com Diane Curran*                                  Matthew Brock*
Harmon, Curran, Spielberg, & Eisenberg, LLP    Assistant Attorney General, Chief 1726 M Street N.W., Suite 600                  Environmental Protection Division Washington, D.C. 20036                          Office of the Attorney General E-mail: dcurran@harmoncurran.com                One Ashburton Place, 18th Floor Boston, MA 02108 E-mail: matthew.brock@state.ma.us
                                                  /RA/
_____________________________
Mary C. Baty Counsel for NRC Staff}}
Mary C. Baty Counsel for NRC Staff}}

Revision as of 16:03, 14 November 2019

2008/07/09 - Vermont Yankee - Nrc'S Brief in Response to Board Order
ML081920248
Person / Time
Site: Vermont Yankee Entergy icon.png
Issue date: 07/09/2008
From: Baty M, Subin L
NRC/OGC
To:
Atomic Safety and Licensing Board Panel
SECY RAS
References
50-271-LR, ASLBP 06-849-03-LR, RAS M-122
Download: ML081920248 (17)


Text

July 9, 2008 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of )

)

ENTERGY NUCLEAR VERMONT YANKEE, LLC ) Docket No. 50-271-LR AND ENTERGY NUCLEAR OPERATIONS, INC. )

) ASLBP No. 06-849-03-LR (Vermont Yankee Nuclear Power Station) )

NRC STAFFS BRIEF IN REPONSE TO BOARD ORDER In accordance with the Boards June 27 Order (Regarding the Briefing of Certain Legal Issues) (June 27 Order), the staff of the US Nuclear Regulatory Commission (Staff) hereby responds to the legal questions posed by the Board. The two legal issues were: (1) Performance of time-limited aging analyses (TLAA) subsequent to issuance of license renewal and (2) reference to NUREGs in demonstrating that effects of aging will be managed.

BACKGROUND The Board asked the parties to brief two issues related to performance of TLAAs subsequent to the issuance of a license renewal. In providing the basis for its request, the Board stated that the Staff changed its interpretation of § 54.21(c)(1)1 between August 2007 and May 2008. See June 27 Order at 2-3. The Staff, however, has not changed its position on what is required by § 54.21(c)(1). Instead, Entergys approach 1

Section 54.21(c)(1) allows license renewal applicants to address TLAAs within the scope of license renewal by demonstrating one of the following: (i) The analyses remain valid for the period of extended operation; (ii) The analyses have been projected to the end of the period of extended operation; or (iii) The effects of aging on the intended function(s) will be adequately managed for the period of extended operation.

to satisfying the requirements of § 54.21(c)(1) has not been clear throughout this proceeding. This lack of clarity as to Entergys approach may have led to confusion both as to the Staffs interpretation of § 54.21(c) and to which subsection Entergy seeks to satisfy. For example, in its June 27 Order, the Board questioned whether Entergy ever characterized its proposal as an aging management program under § 54.21(c)(1)(iii). Id at n.3. However, in admitting NEC Contention 2 the Board noted: Entergy itself has stated that it is relying on subsection (iii) of this regulation [§ 54.21(c)(1)] (i.e. the requirement to demonstrate that the effects of aging will be adequately managed) in the case of environmentally assisted fatigue.2 Thus, before addressing the Boards questions, it is necessary to address this confusion.

On July 6, 2006, Entergy submitted Commitment 27 which stated that [f]or each location that may exceed a CUF of 1.0 when considering environmental effects, VYNPS will implement one or more of the following options: (1) further refinement . . .

(2) management of affected locations by an inspection program . . . (3) repair or replacement of the affected locations.3 Then, on July 3, 2007, Entergy revised Commitment 27 to state that it would select one of the aforementioned options [a]t least two years prior to entering the period of extended operation.4 On July 30, 2007, in response to a Staff request for additional information (RAI) about the July 3, 2007 amendments to Commitment 27, Entergy stated that it intended to comply with 2

Entergy Nuclear Vermont Yankee, LLC & Entergy Nuclear Operations, Inc. (Vermont Yankee Nuclear Power Station), LBP-06-20, 64 NRC 131, 186 (2006) (emphasis in original).

3 Vermont Yankee License Renewal Application Amendment 33, ADAMS Accession No.

ML0619202840.

4 Vermont Yankee License Renewal Application Amendment 27, ADAMS Accession No.

ML0719002031.

Commitment 27 by demonstrating, through the implementation of Option 1 [further refinement], that the cumulative usage factors (CUF) of the most fatigue sensitive locations are less than 1.0 throughout the license renewal period, considering both mechanical and environmental effects.5 Entergys statement in its July 30 response indicated that it intended to rely on 10 C.F.R. § 54.21(c)(1)(ii), not (iii). Thus, at the time of the August 20, 2007 conference call between members of the NRC license renewal staff and Entergy representatives (see Exh. NEC-JH_62) the Staff understood that Entergy intended to comply with (ii).

Therefore, when the Staff stated that Entergy must demonstrate in its LRA that its environmentally-assisted metal fatigue analysis has been completed, and cannot rely on a commitment to complete this analysis prior to entering the period of extended operation, it was explaining what is required to satisfy § 54.21(c)(1)(ii) not (iii). See id.

Between submitting its July 30 RAI response and submitting License Renewal Application Amendment 31 on September 17, 2007 (Staff Exh. 22), Entergy changed course again. In Amendment 31, Entergy stated that an assessment of the impact of the reactor water environment on critical components will be part of its fatigue monitoring program (FMP), inclusion of an assessment of the impact of the reactor water environment on critical components makes its FMP consistent with NUREG-1801 Section X.M1 (Staff Exh. 7 at 6-7), and thus the effects of aging will be adequately managed in accordance with 10 C.F.R. § 54.21(c)(1)(iii). See Staff Exh. 22 at Attachment 1. Based on Amendment 31, the Staff reviewed Entergys license 5

Vermont Yankee License Renewal Application Amendment 28, ADAMS Accession No.

ML0721408470.

renewal application for compliance with § 54.21(c)(1)(iii). See Staff Exh. 1 at 4-43.

Therefore the Staff did not change its interpretation of § 54.21(c)(1). Instead, Entergy temporarily indicated that it would rely on § 54.21(c)(ii), before ultimately relying upon § 54.21(c)(1)(iii).

DISCUSSION I. Response to Issues 1A & AB A. Response to Issue 1A The Board asked whether a license condition that requires performance of certain CUFen TLAAs6 after the license renewal is issued complies with § 54.21(c).

Section 54.21 provides:

Each application must contain the following information:

...

(c) An evaluation of time-limited aging analyses.

(1) A list of time-limited aging analyses, as defined in § 54.3, must be provided. The applicant shall demonstrate that (i) The analyses remain valid for the period of extended operation (ii) The analyses have been projected to the end of the period of extended operation; or (iii) The effects of aging on the intended function(s) will be adequately managed for the period of extended operation.

(emphasis added).

To satisfy § 54.21(c)(1), the applicant must assess and list TLAAs and demonstrate compliance with (i), (ii), or (iii). If a license renewal applicant chooses to demonstrate that its analyses remain valid for 60 years pursuant to § 54.21(c)(1)(i), its application must demonstrate that existing analyses are valid for 60 years. If an applicant selects (ii), its application must demonstrate that its analyses have been 6

TLAA for purposes of license renewal is defined in § 54.3.

projected to 60 years, such that no further analysis or management is necessary. If the applicant cannot or chooses not to justify or extend an existing TLAA, its application must list TLAAs and demonstrate that the effects of aging will be adequately managed for the period of extended operation pursuant to § 54.21(c)(1)(iii).7 In other words, under (iii) the applicant can properly demonstrate that aging effects associated with the TLAA will be adequately managed by aging management programs. Moreover, unlike (i) and (ii), the word analysis does not even appear in (iii). Applicants selecting (iii) are not required to perform, include, or demonstrate the adequacy of their analyses in their applications.

Issuance of a renewed license with a condition requiring performance of certain TLAA CUFens prior to the period of extended operation is consistent with

§ 54.21(c)(1)(iii) and does not render §54.21(c)(1)(ii) superfluous.8 The plain language of the regulation and its subsections makes clear that a demonstration in the application that a TLAA is either good for 60 years or has been projected to 60 years is only required if the applicant selects § 54.21(c)(1)(i) or (ii). Applicants selecting either (i) or (ii) rest on existing or an extension of existing TLAA analyses alone. Therefore a license condition for an applicant relying on (i) or (ii) to perform TLAA evaluations later would be contrary to § 54.21(c)(1).

7 Nuclear Power Plant License Renewal; Revisions, Final Rule, 60 Fed. Reg. 22,461, 22,480 (May 8, 1995).

8 The Commission clearly and directly addressed and accepted the use of new commitments to monitor, manage, and correct age-related degradation unique to license renewal . . . . Nuclear Power Plant License Renewal, Final Rule, 56 Fed. Reg. 64,943, 64,946 (Dec. 13, 1991). The Commission reaffirmed this position when it revised Part 54 in 1995. See 60 Fed. Reg. at 22473. If the Commission finds commitments acceptable, surely a license condition is acceptable as well.

However, applicants selecting the (iii) option are not required to demonstrate that their existing TLAA analysis is either good for 60 years or the analysis has been projected to 60 years. No analysis is required by (iii). Moreover, if such analyses existed there would be no need for (iii). Applicants who select (iii) rest not on analyses but on a demonstration that aging effects will be adequately managed.9 Otherwise adding (iii) to the regulations would have been meaningless.

One way for applicants to make the demonstration required by § 54.21(c)(1)(iii) is to implement a fatigue monitoring program consistent with the program described in GALL Section X.M1 Metal Fatigue of Reactor Coolant Pressure Boundary (Staff Exh. 7 at X M-1 to X M-2). In describing the elements of an acceptable aging management program (AMP) for monitoring metal fatigue in Section X.M1, the NRC explained the purpose of corrective actions, stating that an acceptable AMP for metal fatigue will be one that:

[p]rovides for corrective actions to prevent the usage factor from exceeding the design code limit during the period of extended operation. Acceptable corrective actions include repair of the component, replacement of the component, and a more rigorous analysis of the component to demonstrate that the design code limit will not be exceeded during the extended period of operation.

Id. (emphasis added). Thus, additional analyses as a corrective action (and license conditions to perform analyses as a corrective action) are treated no differently than 9

This is consistent with the definition of TLAA in § 54.3. The definition of TLAA does not suggest that license renewal applications must contain TLAA analyses or that applicants must demonstrate the adequacy of an existing TLAA or a TLAA projected to the end of the period of extended operation. Rather, it defines which existing TLAAs are within the scope of license renewal and thus must be considered by license renewal applicants.

repair or replacement.10 For a component that will not meet its acceptance criteria during the period of extended operation, the program described in the application may provide for, as corrective action, additional analysis, then, should the analysis not meet the acceptance criteria, provide for repair or replacement of the component.

Alternatively, the program could directly select analysis, repair, or replacement alone.

These are all corrective actions under an aging management program. Accordingly, a license condition to perform additional analysis prior to the period of extended operation as part of an aging management program is absolutely consistent with § 54.21(c)(1)(iii) and does not render § 54.21(c)(1)(i) or (ii) mere surplusage. Rather, reading

§ 54.21(c)(1) to require that applicants demonstrate the adequacy of all their analyses in their applications would render § 54.21(c)(1)(iii) meaningless, precluding licensees from being allowed to manage the effects of aging by repair, replacement, or additional more rigorous analysis, as the regulation clearly allows. It would also force applicants to perform analyses and make a demonstration not required by the Commissions regulations.

B. Response to Issue 1B The Board asked whether it is legally permissible under 10 C.F.R. § 54.29 to issue a license renewal even though certain TLAAs have not been performed. June 27 Order at 3. Section 54.29 provides that the Commission may issue a renewed license if it finds that:

(a) Actions have been identified and have been or will be taken with 10 As a corrective action, Entergy has performed more rigorous analyses of critical components and submitted them to the Staff. See e.g. Vermont Yankee License Renewal Application Amendments 31 (Staff Exh. 22), 33 (Staff Exh. 8), and 34 (Entergy Exh. E2-28).

respect to matters identified in paragraphs (a)(1) and (a)(2) of this section, such that there is reasonable assurance that the activities authorized by the renewed license will continue to be conducted in accordance with the CLB . . . . These matters are:

...

(2) time-limited aging analyses that have been identified to require review under § 54.21(c).

(emphasis added).

Accordingly, a renewed license may be issued if there is reasonable assurance that actions will be taken to ensure continued compliance with the CLB. Because license conditions are binding requirements, license conditions can provide reasonable assurance that actions necessary for compliance with Commission regulations will be taken.11 Entergy is relying upon § 54.21(c)(1)(iii). Entergy has appropriately identified TLAAs and is demonstrating that aging effects will be adequately managed in lieu of relying on an existing analyses or analyses projected to the end of the period of extended operation. The proposed license condition will ensure that actions will be taken to ensure that the effects of aging will be adequately managed and is thus consistent with § 54.29.12 11 See 56 Fed. Reg. at 64,943 (Commission accepting the use of licensee commitments to monitor, manage, and correct age-related degradation). See also Private Fuel Storage LLC (Independent Spent Fuel Storage Installation), CLI-00-13, 52 NRC 23, 29-30 (2000) (PFS)

(stating that license conditions can be an acceptable method for providing reasonable assurance of financial qualifications under 10 C.F.R. Part 72 and noting that the material issue for compliance with 10 C.F.R. § 72.22(e) is whether the applicant will have adequate funds not whether it already has them).

12 See supra note 8. Furthermore, Commission law supports the proposition that license conditions requiring post-licensing verification are acceptable. See PFS, CLI-00-13, 52 NRC at

34. In PFS, the Commission required the applicant produce a sample contract of the type it would use to satisfy its financial assurance commitments so that the intervenor could challenge it and, through the hearing process, a sample contract could be approved by the Board for the Staff to use in verifying the applicants compliance with its post-licensing commitments. The license condition at issue here requires that Entergy perform confirmatory calculations for the core spray and reactor recirculation outlet nozzles using the same method it used for the feedwater nozzle.

See Staff Exh. 1 at 43. Entergys calculation for the feedwater nozzle is thus like the sample (continued. . .)

C. Public Scrutiny and Due Process To the extent that NEC claims that allowing an applicant to select

§ 54.21(c)(1)(iii) instead of (i) or (ii) would frustrate public scrutiny of TLAA methodology,13 is an attack on the Commissions regulation and thus contravenes 10 C.F.R. § 2.335(a) 14 which prohibits attacks on the Commissions regulations in the absence of a waiver of § 2.335(a) by the Commission.15 Furthermore, an applicants reliance on § 54.21(c)(1)(iii) does not preclude members of the public from scrutinizing and challenging the adequacy of the licensees demonstration that the effects of aging will be adequately managed. As this case illustrates, NEC first challenged the adequacy of Entergys plan to manage aging in accordance with § 54.21(c)(1)(iii) generally. Then, through Contentions 2A and 2B, NEC mounted a specific challenge to a portion of Entergys aging management plan corrective actionsby taking issue with the method Entergy used to refine its CUFen analysis of critical components. Moreover, there has been no showing that due process, as a matter of law, requires that an agency require actual testing and analyses prior to

(. . .continued) contract in PFS. Through its contentions, NEC has challenged the method Entergys for calculation CUFens.

13 See June 27 Order at 3 (quoting New England Coalition Inc. Initial Statement of Position (Apr. 28, 2008) at 19.

14 Section 2.335(a) prohibits challenges to the Commissions regulations in any adjudicatory subject to Part 2 unless a party to the proceeding requests and receives pursuant to

§ 2.335(b) a wavier of § 2.335(a) on the basis of special circumstances with respect to the subject matter of the particular proceeding such that the rule, regulation, or subsection thereof does not serve the purposes for which it was adopted.

15 See Entergy Nuclear Vermont Yankee, LLC & Entergy Nuclear Operations, Inc.

(Vermont Yankee Nuclear Power Station), CLI-07-16, 65 NRC 371, 383 (2007).

issuing a license.

II. Staff Response to Issue 2 The second legal issue the Board requested that the parties brief involves applicants referencing NUREGs to demonstrate that aging will be adequately managed.

Specifically, the Board asked the parties:

Does a renewal application that contains a short written description of an aging management program that lacks content or details but instead states that it is comparable to and based on the relevant section of NUREG-1801 or EPRI NSAC-202L, demonstrate that the effects of aging will be adequately managed as required by 10 C.F.R.

§§ 54.21(a)(3) and 54.21(c)(1)(iii)?

June 27 Order at 5.

An application that contains a short written description of an AMP stating that it is comparable to and based on NRC guidance documents, is sufficient to demonstrate that the effects of aging will be adequately managed as required by 10 C.F.R.

§§ 54.21(a)(3) and 54.21(c)(1)(iii). Calculational methods and details are not required to demonstrate regulatory compliance. There is no regulatory requirement regarding the amount of detail that the applicant must include in describing its Aging Management Programs. Rather, § 54.21(a)(3) and § 54.21(c)(1)(iii) simply require that applicants demonstrate that the effects of aging will be adequately managed. As discussed below, the NRC has provided licensees with guidance on how to make the required demonstrations. Entergys approach is consistent with that guidance.

B. Staff Guidance The Staff has issued a number of license renewal guidance documents including

GALL, SRP-LR,16 and Regulatory Guide 1.188.17 At their inception, the Staff recommended and the Commission approved the approach to focus staff review guidance in [the] standard review plan on areas where existing programs should be augmented . . . to provide credit for existing programs for license renewal.

Memorandum from Annette L. Vietti-Cook, Secretary to William D. Travers, Executive Director of Operations, Staff Requirements-SECY-99-148-Credit for Existing Programs for License Renewal (Aug. 27, 1999) (ADAMS Accession No. ML003751930). At this time, the Commission directed the Staff to proceed with the development of the Generic Aging Lessons Learned (GALL) report and the license renewal Standard Review Plan (SRP) and regulatory guide and to seek stakeholders participation. Id. See also NUREG -1739, Analysis of Public Comments on the Improved License Renewal Guidance Documents (Apr. 2001)18; Transcript, United States of America Nuclear 16 NUREG-1800, Rev. 1, Standard Review Plan for Review of License Renewal Applications for Nuclear Power Plants ("SRP-LR") (Sept. 2005).

17 Standard Format and Content for Applications To Renew Nuclear Power Plant Operating Licenses (July 2001) (ADAMS Accession No. ML012010322).

18 For example, NUREG-1739 includes comments from industry representatives regarding the level of detail required to be in an application. In response, the Staff stated that an applicant who references GALL in a license renewal application would be expected to verify that the programs relied on for a specific structures or components is bounded by the program evaluated in GALL, in order to use GALL as a reference for an acceptable program in the same way that topical reports are used as references for accepted programs. The staff review would intend to use GALL to focus on the areas where further evaluation is recommended or a plant-specific aging management program is proposed. By referencing the GALL, the staff expects that an applicant would decrease the volume of the application and the level of effort required for the staff review.

The references along with exceptions to the GALL report may be in tables, footnotes to tables, or in a separate section in the front or the back of the application.

(continued. . .)

Regulatory Commission, Office of the Secretary, Briefing on License Renewal Aging Lessons Learned (GALL) Report, Standard review Plan (SRP), and Regulatory Guide (Dec. 4, 2000) (ADAMS Accession No. ML003775462). On August 3, 2001 the GALL Report Rev 0, SRP-LR, and Regulatory Guide 1.188 were released to the public.

Issuance, Availability of Regulatory Guide, Standard Review Plan, and Generic Again Lessons Learned (GALL) Report, 66 Fed. Reg. 40,750 (Aug. 3, 2001).

The Commission has recognized that license renewal guidance documents serve to enhance the predictability, consistency, and efficiency of the NRC reviews of license renewal applications. SECY-01-0074, Approval to Publish Generic License Renewal Guidance Documents (July 2, 2001) (ADAMS Accession No. ML011860200).

Accordingly, GALL provides important guidance concerning the preparation and review of license renewal applications.19 In GALL Rev. 0 at iii, the NRC stated that GALL:

contains the staff's generic evaluation of the existing plant programs and documents the technical basis for determining where existing programs are adequate without modification and where existing programs should be augmented for the extended period of operation. The evaluation results documented in the GALL report indicate that many of the existing programs are adequate to manage the aging effects for particular structures or components for license renewal without change. The GALL report also contains recommendations on specific areas for which existing programs should be augmented for license renewal. An applicant may reference the GALL report in a license renewal application to demonstrate that the programs at the applicants facility correspond to those reviewed

(. . .continued)

NUREG-1739 at Table C: Disposition of Written Public Comments, Comment NMC-2, Item C.3.14.

19 The first edition of GALL was published in 2001. See NUREG-1801, Generic Aging Lessons Learned (GALL) Report, Rev. 0 (July 2001) (GALL Rev. 0). Since that time, one revision of GALL has been released. See NUREG-1801, Generic Aging Lessons Learned (GALL)

Rev. 1 (Sept. 2005).

and approved in the GALL report and that no further staff review is required.

(emphasis added).

Likewise the SRP provides guidance as to the question of acceptability of the statement that the aging management plan is comparable to and based on the relevant section of GALL, the SRP-LR at 3.0.1 states that:

[i]f an applicant takes credit for a program in the GALL Report, it is incumbent on the applicant to ensure that the plant program contains all the elements of the referenced GALL Report program.

In addition, the conditions at the plant must be bounded by the conditions for which the GALL Report program was evaluated. The above verifications must be documented on-site in an auditable form. The applicant should include a certification in the license renewal application that the verifications have been completed and are documented on-site in an auditable form.

Therefore, a written description of an AMP stating that it is comparable to or based on NRC guidance documents is acceptable.

In the context of Flow Accelerated Corrosion, the NRC Guidance documents reference the Electric Power Research Institute (EPRI) guidelines in the Nuclear Safety Analysis Center (NSAC)-202L-R2 for an effective flow-accelerated corrosion (FAC) program. See GALL, Rev. 1, Vol. 2 at XI M-61. The Vermont Yankee FAC AMP also references the EPRI Report and states that the program is consistent with GALL. See LRA at Appendix B-47. Similarly, the Vermont Yankee FMP references GALL and has been found to be consistent with GALL. See Staff Exh. 1 at 3-75. As discussed above, this is sufficient to demonstrate that the effects of aging will be adequately managed.

C. Audit Programs Provide Assurance that AMPs are Adequate Applicants do not need to provide a detailed explanation or description of an AMP in their applications because the Staff verifies the consistency of licensee AMPs with Staff guidance through audits.20 Thus, when a licensee states that its program will be identical to the existing program, is comparable to the program described in GALL, is based on EPRI Report NSAC-202L-R2, and includes (a) an evaluation to determine critical locations, (b) initial operational inspections to determine the extent of thinning at these locations, and (c) follow-up inspections to confirm predications, or repair or replace components as necessary, that is sufficient for the purposes of Part 54. See June 27 Order at 4-5.

The Staff has audited Entergys FAC and other AMPs and found Entergys approach to be consistent with the approved regulatory guidance. See Audit and Review Report for Plant Aging Management Programs at B 3.0.1.2. Therefore, the applicants FAC program to manage the aging effects of FAC is adequate.

20 An audit and review is conducted at the applicants facility to evaluate those AMRs or AMPs that the applicant claims to be consistent with the GALL Report. An audit also includes technical assessments of exceptions or enhancements to the GALL Report AMP program elements. Reviews are performed to address those AMRs or AMPs related to emergent issues, stated to be not consistent with the GALL Report, or based on an NRC-approved precedent (e.g.,

AMRs and AMPs addressed in an NRC SER of a previous LRA). As a result of the criteria established in 10 CFR Part 54, and the guidance provided in SRP-LR, GALL Report, Regulatory Guide1.188, and the applicants exceptions and/or enhancements to a GALL Report AMP . . . .

NUREG-1800, at Section 3.0.1.

CONCLUSION As explained above, the NRC Staff has not changed its interpretation of

§ 54.21(c)(1) and Entergy is relying upon § 54.21(c)(1)(iii). With regard to Issues 1A and 1B, the license condition requiring Entergy to complete two CUFen calculations at least two years prior to the period of extended operation is not inconsistent with either

§§ 54.21(c) or 54.29. With regard to Issue 2, Entergys application has demonstrated that the effects of aging will be adequately managed by providing a written description that states its AMP is comparable to and based on the relevant section of NUREG-1801 or EPRI NSAC-202L.

Respectfully submitted,

/RA/

Lloyd B. Subin Counsel for NRC Staff

/RA/

Mary C. Baty Counsel for NRC Staff Dated at Rockville, Maryland this 9th day of July, 2008

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of )

)

ENTERGY NUCLEAR VERMONT YANKEE, ) Docket No. 50-271-LR LLC, and ENTERGY NUCLEAR )

OPERATIONS, INC. ) ASLBP No. 06-849-03-LR

)

(Vermont Yankee Nuclear Power Station) )

CERTIFICATE OF SERVICE I hereby certify that copies of the NRC STAFFS BRIEF IN RESPONSE TO BOARD ORDER in the above-captioned proceeding have been served on the following by electronic mail with copies by deposit in the NRCs internal mail system or, as indicated by an asterisk, by electronic mail, with copies by U.S. mail, first class, this 9th day of July, 2008.

Alex S. Karlin, Chair Office of the Secretary Administrative Judge Attn: Rulemakings and Adjudications Staff Atomic Safety and Licensing Board Mail Stop: O-16G4 U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Washington, DC 20555-0001 E-mail: ask2@nrc.gov E-mail: hearingdocket@nrc.gov William H. Reed* Marcia Carpentier, Law Clerk Administrative Judge Atomic Safety and Licensing Board Atomic Safety and Licensing Board Mail Stop: T-3F23 1819 Edgewood Lane U.S. Nuclear Regulatory Commission Charlottesville, VA 22902 Washington, DC 20555-0001 E-mail: whrcville@embarqmail.com E-mail: mxc7@nrc.gov Richard E. Wardwell Lauren Bregman, Law Clerk Administrative Judge Atomic Safety and Licensing Board Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission Mail Stop: T-3 F23 Washington, DC 20555-0001 Washington, D.C. 20555-0001 E-mail: rew@nrc.gov E-mail: lauren.bregman@nrc.gov Office of Commission Appellate Peter C.L. Roth, Esq*

Adjudication Office of the Attorney General Mail Stop: O-16G4 33 Capitol Street U.S. Nuclear Regulatory Commission Concord, NH 3301 Washington, DC 20555-0001 E-mail: peter.roth@doj.nh.gov E-mail: OCAAmail@nrc.gov

Ronald A. Shems, Esq.* Anthony Z. Roisman, Esq.*

Karen Tyler, Esq. National Legal Scholars Law Firm Shems Dunkiel Kassel & Saunders, PLLC 84 East Thetford Rd.

91 College Street Lyme, NH 03768 Burlington, VT 05401 E-mail: aroisman@nationallegalscholars.com E-mail: rshems@sdkslaw.com Ktyler@sdkslaw.com David R. Lewis, Esq.* Sarah Hofmann, Esq.*

Matias F. Travieso-Diaz, Esq Director of Public Advocacy Elina Teplinsky, Esq Department of Public Service Blake J. Nelson, Esq 112 State Street - Drawer 20 Pillsbury Winthrop Shaw Pittman LLP Montpelier, VT 05620-2601 2300 N Street, NW E-mail: sarah.hofmann@state.vt.us Washington, DC 20037-1128 E-mail: david.lewis@pillsburylaw.com matias.travieso-diaz@pillsburylaw.com elina.teplinsky@pillsburylaw.com blake.nelson@pillsburylaw.com Diane Curran* Matthew Brock*

Harmon, Curran, Spielberg, & Eisenberg, LLP Assistant Attorney General, Chief 1726 M Street N.W., Suite 600 Environmental Protection Division Washington, D.C. 20036 Office of the Attorney General E-mail: dcurran@harmoncurran.com One Ashburton Place, 18th Floor Boston, MA 02108 E-mail: matthew.brock@state.ma.us

/RA/

_____________________________

Mary C. Baty Counsel for NRC Staff