ML070350041

License Amendment, Issuance of Amendment Nos. 165, 165, & 165 Increased Flexibility in Mode Restraints (TAC Nos. MD3153, MD3154, & MD3155)

ML070350041
Person / Time
Site:	Palo Verde
Issue date:	02/21/2007
From:	Fields M NRC/NRR/ADRO/DORL/LPLIV
To:	Edington R Arizona Public Service Co
Markley, M T, NRR/DORL/LP4, 301-415-5723
Shared Package
ML070350039	List: ML070350041 ML070350042
References
TAC MD3153, TAC MD3154, TAC MD3155
Download: ML070350041 (31)

Text

February 21, 2007 Mr. Randall K. Edington Senior Vice President, Nuclear Mail Station 7602 Arizona Public Service Company P. O. Box 52034 Phoenix, AZ 85072-2034

SUBJECT:

PALO VERDE NUCLEAR GENERATING STATION, UNITS 1, 2, AND 3 -

ISSUANCE AMENDMENTS RE: INCREASED FLEXIBILITY IN MODE RESTRAINTS (TAC NOS. MD3153, MD3154, AND MD3155)

Dear Mr. Edington:

The Nuclear Regulatory Commission has issued the enclosed Amendment No. 165 to Facility Operating License No. NPF-41, Amendment No. 165 to Facility Operating License No. NPF-51, and Amendment No. 165 to Facility Operating License No. NPF-74 for the Palo Verde Nuclear Generating Station, Units 1, 2, and 3, respectively. The amendments consist of changes to the Technical Specifications (TSs) in response to your application dated September 28, 2006.

The requested changes would modify TS requirements for mode change limitations in Limiting Condition for Operation (LCO) 3.0.4 and Surveillance Requirement 3.0.4 to adopt the provisions of Industry/Technical Specification Task Force (TSTF) Traveler number TSTF-359, Increase Flexibility in Mode Restraints. The availability of TSTF-359 for adoption by licensees was announced in the Federal Register on April 4, 2003 (68 FR 16579). The requested changes would also modify TS Example 1.4-1 to accurately reflect the changes made to LCO 3.0.4.

This change is consistent with TSTF-485, which has been incorporated into the Standard Technical Specifications Revision 3.1.

A copy of the Safety Evaluation is enclosed. A Notice of Issuance will be included in the Commissions biweekly update Federal Register notice.

Sincerely,

/RA/

Mel B. Fields, Senior Project Manager Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. STN 50-528, STN 50-529, and STN 50-530

Enclosures:

1. Amendment No. 165 to NPF-41

2. Amendment No. 165 to NPF-51

3. Amendment No. 165 to NPF-74

4. Safety Evaluation cc w/encls: See next page

February 21, 2007 Mr. Randall K. Edington Senior Vice President, Nuclear Mail Station 7602 Arizona Public Service Company P. O. Box 52034 Phoenix, AZ 85072-2034

SUBJECT:

PALO VERDE NUCLEAR GENERATING STATION, UNITS 1, 2, AND 3 -

ISSUANCE AMENDMENTS RE: INCREASED FLEXIBILITY IN MODE RESTRAINTS (TAC NOS. MD3153, MD3154, AND MD3155)

Dear Mr. Edington:

The Nuclear Regulatory Commission has issued the enclosed Amendment No. 165 to Facility Operating License No. NPF-41, Amendment No. 165 to Facility Operating License No. NPF-51, and Amendment No. 165 to Facility Operating License No. NPF-74 for the Palo Verde Nuclear Generating Station, Units 1, 2, and 3, respectively. The amendments consist of changes to the Technical Specifications (TSs) in response to your application dated September 28, 2006.

The requested changes would modify TS requirements for mode change limitations in Limiting Condition for Operation (LCO) 3.0.4 and Surveillance Requirement 3.0.4 to adopt the provisions of Industry/Technical Specification Task Force (TSTF) Traveler number TSTF-359, Increase Flexibility in Mode Restraints. The availability of TSTF-359 for adoption by licensees was announced in the Federal Register on April 4, 2003 (68 FR 16579). The requested changes would also modify TS Example 1.4-1 to accurately reflect the changes made to LCO 3.0.4.

This change is consistent with TSTF-485, which has been incorporated into the Standard Technical Specifications Revision 3.1.

A copy of the Safety Evaluation is enclosed. A Notice of Issuance will be included in the Commissions biweekly update Federal Register notice.

Sincerely,

/RA/

Mel B. Fields, Senior Project Manager Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. STN 50-528, STN 50-529, and STN 50-530

Enclosures:

1. Amendment No. 165 to NPF-41

2. Amendment No. 165 to NPF-51

3. Amendment No. 165 to NPF-74

4. Safety Evaluation cc w/encls: See next page DISTRIBUTION:

PUBLIC RidsNrrLAJBurkhardt TWertz, ITSB LPLIV r/f RidsNrrPMMFields JNakoski, SPWB RidsAcrsAcnwMailCenter RidsOgcRp RidsNrrPMMMarkley RidsNrrDirsItsb RidsRgn4MailCenter GHill RidsNrrDorlDpr WBennett/SPWB RidsNrrDorlLpl4 (DTerao)

ADAMS Accession Nos.: Pkg ML070350039 (Amd ML070350041, License/TS Pg ML070350042)

• SE input memo date OFFICE NRR/LPL4/PM NRR/LPL4/PM NRR/LPL4/LA ITSB/BC* OGC NRR/LPL4/BC NAME MMarkley MFields LFeizollahi TKobetz SETurk DTerao DATE 2/12/07 2/12/07 2/12/07 1/3/07 2/21/07 2/21/07 OFFICIAL AGENCY RECORD

Palo Verde Nuclear Generating Station cc:

Mr. Steve Olea Mr. John Taylor Arizona Corporation Commission Public Service Company of New Mexico 1200 W. Washington Street 2401 Aztec NE, MS Z110 Phoenix, AZ 85007 Albuquerque, NM 87107-4224 Mr. Douglas Kent Porter Mr. Geoffrey M. Cook Senior Counsel Southern California Edison Company Southern California Edison Company 5000 Pacific Coast Hwy Bldg N50 Law Department, Generation Resources San Clemente, CA 92672 P.O. Box 800 Rosemead, CA 91770 Mr. Robert Henry Salt River Project Senior Resident Inspector 6504 East Thomas Road U.S. Nuclear Regulatory Commission Scottsdale, AZ 85251 P.O. Box 40 Buckeye, AZ 85326 Mr. Jeffrey T. Weikert Assistant General Counsel Regional Administrator, Region IV El Paso Electric Company U.S. Nuclear Regulatory Commission Mail Location 167 Harris Tower & Pavillion 123 W. Mills 611 Ryan Plaza Drive, Suite 400 El Paso, TX 79901 Arlington, TX 76011-8064 Mr. John Schumann Chairman Los Angeles Department of Water & Power Maricopa County Board of Supervisors Southern California Public Power Authority 301 W. Jefferson, 10th Floor P.O. Box 51111, Room 1255-C Phoenix, AZ 85003 Los Angeles, CA 90051-0100 Mr. Aubrey V. Godwin, Director Mr. Brian Almon Arizona Radiation Regulatory Agency Public Utility Commission 4814 South 40 Street William B. Travis Building Phoenix, AZ 85040 P.O. Box 13326 1701 North Congress Avenue Mr. Scott Bauer, Acting General Manager Austin, TX 78701-3326 Regulatory Affairs and Performance Improvement Ms. Karen O'Regan Palo Verde Nuclear Generating Station Environmental Program Manager Mail Station 7636 City of Phoenix P.O. Box 52034 Office of Environmental Programs Phoenix, AZ 85072-2034 200 West Washington Street Phoenix AZ 85003 Mr. Matthew Benac Assistant Vice President Nuclear & Generation Services El Paso Electric Company 340 East Palm Lane, Suite 310 Phoenix, AZ 85004 January 2007

ARIZONA PUBLIC SERVICE COMPANY, ET AL.

DOCKET NO. STN 50-528 PALO VERDE NUCLEAR GENERATING STATION, UNIT 1 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 165 License No. NPF-41

1. The Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment by the Arizona Public Service Company (APS or the licensee) on behalf of itself and the Salt River Project Agricultural Improvement and Power District, El Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority dated September 28, 2006, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act) and the Commission's regulations set forth in 10 CFR Chapter I; B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C. There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations; D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

2. Accordingly, the license is amended by changes to the Technical Specifications as indicated in the attachment to this license amendment, and paragraph 2.C(2) of Facility Operating License No. NPF-41.

3. This license amendment is effective as of the date of issuance and shall be implemented within 120 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

David Terao, Chief Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Attachment:

Changes to the Operating License and Technical Specifications Date of Issuance: February 21, 2007

ARIZONA PUBLIC SERVICE COMPANY, ET AL.

DOCKET NO. STN 50-529 PALO VERDE NUCLEAR GENERATING STATION, UNIT 2 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 165 License No. NPF-51

1. The Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment by the Arizona Public Service Company (APS or the licensee) on behalf of itself and the Salt River Project Agricultural Improvement and Power District, El Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority dated September 28, 2006, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act) and the Commission's regulations set forth in 10 CFR Chapter I; B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C. There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations; D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

2. Accordingly, the license is amended by changes to the Technical Specifications as indicated in the attachment to this license amendment, and paragraph 2.C(2) of Facility Operating License No. NPF-51.

3. This license amendment is effective as of the date of issuance and shall be implemented within 120 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

David Terao, Chief Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Attachment:

Changes to the Operating License and Technical Specifications Date of Issuance: February 21, 2007

ARIZONA PUBLIC SERVICE COMPANY, ET AL.

DOCKET NO. STN 50-530 PALO VERDE NUCLEAR GENERATING STATION, UNIT 3 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 165 License No. NPF-74

1. The Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment by the Arizona Public Service Company (APS or the licensee) on behalf of itself and the Salt River Project Agricultural Improvement and Power District, El Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority dated September 28, 2006, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act) and the Commission's regulations set forth in 10 CFR Chapter I; B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C. There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations; D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

2. Accordingly, the license is amended by changes to the Technical Specifications as indicated in the attachment to this license amendment, and paragraph 2.C(2) of Facility Operating License No. NPF-74.

3. This license amendment is effective as of the date of issuance and shall be implemented within 120 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

David Terao, Chief Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Attachment:

Changes to the Operating License and Technical Specifications Date of Issuance: February 21, 2007

ATTACHMENT TO LICENSE AMENDMENT NOS. 165, 165, AND 165 FACILITY OPERATING LICENSE NOS. NPF-41, NPF-51, AND NPF-74 DOCKET NOS. STN 50-528, STN 50-529, AND STN 50-530 Replace the following pages of the Facility Operating License Nos. NPF-41, NPF-51, and NPF-74, and Appendix A Technical Specifications with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

Operating Licenses Replace Page 5 of Facility Operating License No. NPF-41 with the attached Page 5.

Replace Page 6 of Facility Operating License No. NPF-51 with the attached Page 6.

Replace Page 4 of Facility Operating License No. NPF-74 with the attached Page 4.

Technical Specifications REMOVE INSERT 1.4-2 1.4-2 3.0-1 3.0-1 3.0-2 3.0-2 3.0-5 3.0-5 3.3.1-1 3.3.1-1 3.3.1-2 3.3.1-2 3.3.1-11 3.3.1-11 3.3.1-12 3.3.1-12 3.3.2-1 3.3.2-1 3.3.2-2 3.3.2-2 3.3.5-1 3.3.5-1 3.3.5-2 3.3.5-2 3.3.7-2 3.3.7-2 3.3.10-1 3.3.10-1 3.3.11-1 3.3.11-1 3.4.13-1 3.4.13-1 3.4.16-1 3.4.16-1 3.4.16-2 3.4.16-2 3.4.17-1 3.4.17-1 3.5.4-1 3.5.4-1 3.6.7-1 3.6.7-1 3.7.4-1 3.7.4-1 3.7.5-1 3.7.5-1 3.8.1-1 3.8.1-1

(2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A, as revised through Amendment No. 165, and the Environmental Protection Plan l contained in Appendix B, are hereby incorporated into this license.

APS shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan, except where otherwise stated in specific license conditions.

(3) Antitrust Conditions This license is subject to the antitrust conditions delineated in Appendix C to this license.

(4) Operating Staff Experience Requirements Deleted (5) Post-Fuel-Loading Initial Test Program (Section 14, SER and SSER 2)*

Deleted (6) Environmental Qualification Deleted (7) Fire Protection Program APS shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report for the facility, as supplemented and amended, and as approved in the SER through Supplement 11, subject to the following provision:

APS may make changes to the approved fire protection program without prior approval of the Commission only if those changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.

(8) Emergency Preparedness Deleted

____________________

• The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/or its supplements wherein the license condition is discussed.

Amendment No. 164 165

(2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A, as revised through Amendment No. 165, and the Environmental Protection Plan l contained in Appendix B, are hereby incorporated into this license.

APS shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan, except where otherwise stated in specific license conditions.

(3) Antitrust Conditions This license is subject to the antitrust conditions delineated in Appendix C to this license.

(4) Operating Staff Experience Requirements (Section 13.1.2, SSER 9)*

Deleted (5) Initial Test Program (Section 14, SER and SSER 2)

Deleted (6) Fire Protection Program APS shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report for the facility, as supplemented and amended, and as approved in the SER through Supplement 11, subject to the following provision:

APS may make changes to the approved fire protection program without prior approval of the Commission only if those changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.

(7) Inservice Inspection Program (Sections 5.2.4 and 6.6, SER and SSER 9)

Deleted (8) Supplement No. 1 to NUREG-0737 Requirements Deleted

____________________

• The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/or its supplements wherein the license condition is discussed.

Amendment No. 164 165

(1) Maximum Power Level Arizona Public Service Company (APS) is authorized to operate the facility at reactor core power levels not in excess of 3876 megawatts thermal (100% power) through operating cycle 13, and 3990 megawatts thermal (100% power) after operating cycle 13, in accordance with the conditions specified herein.

(2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A, as revised through Amendment No. 165, and the Environmental Protection Plan contained in l Appendix B, are hereby incorporated into this license. APS shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan, except where Otherwise stated in specific license conditions.

(3) Antitrust Conditions This license is subject to the antitrust conditions delineated in Appendix C to this license.

(4) Initial Test Program (Section 14, SER and SSER 2)

Deleted (5) Additional Conditions Deleted D. APS has previously been granted an exemption from Paragraph III.D.2(b)(ii) of Appendix J to 10 CFR Part 50. This exemption was previously granted in Facility Operating License NPF-65 pursuant to 10 CFR 50.12.

With the granting of this exemption, the facility will operate, to the extent authorized herein, in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission.

E. The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p). The combined set of plans, which contains Safeguards Information protected under 10 CFR 73.21, is entitled: "Palo Amendment No. 164 165

SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO AMENDMENT NO. 165 TO FACILITY OPERATING LICENSE NO. NPF-41, AMENDMENT NO. 165 TO FACILITY OPERATING LICENSE NO. NPF-51, AND AMENDMENT NO. 165 TO FACILITY OPERATING LICENSE NO. NPF-74 ARIZONA PUBLIC SERVICE COMPANY, ET AL.

PALO VERDE NUCLEAR GENERATING STATION, UNITS 1, 2, AND 3 DOCKET NOS. STN 50-528, STN 50-529, AND STN 50-530

1.0 INTRODUCTION

By application dated September 28, 2006, (Agencywide Documents Access and Management System (ADAMS) Accession No. ML062830057) Arizona Public Service Company (the licensee), requested changes to the Technical Specifications (TSs) for Palo Verde Nuclear Generating Station (PVNGS).

The requested changes would modify TS requirements for mode change limitations in Limiting Condition for Operation (LCO) 3.0.4 and Surveillance Requirement (SR) 3.0.4 to adopt the provisions of Industry/TS Task Force (TSTF) Traveler number TSTF-359, Increase Flexibility in Mode Restraints. The availability of TSTF-359 for adoption by licensees was announced in the Federal Register on April 4, 2003 (68 FR 16579). The requested changes would also modify TS Example 1.4-1 to accurately reflect the changes made to LCO 3.0.4. This change is consistent with TSTF-485, which has been incorporated into the Standard Technical Specifications Revision 3.1.

On July 17, 2002, the Nuclear Energy Institute (NEI) Risk-Informed TSTF (RITSTF) submitted proposed change, TSTF-359, Revision 7, to the Standard TSs (STSs) (NUREGs 1430-1434) on behalf of the industry. TSTF-359, Revision 7, proposed to change the STS LCO 3.0.4 and SR 3.0.4 requirements regarding mode change limitations by risk-informing limitations on entering the mode of applicability of an LCO. The Notice of Opportunity to Comment on the model safety evaluation (SE) using the Consolidated Line Item Improvement Process (CLIIP) with respect to this change was published in the Federal Register on August 2, 2002 (67 FR 50475). The Nuclear Regulatory Commission (NRC/Commission) staff prepared a model SE incorporating changes resulting from public comments. The NRC staff has since made minor editorial changes to the SE. TSTF-359, Revision 8, as modified, provides the complete approved change as discussed in the Federal Register notice dated April 4, 2003.

The RITSTF subsequently incorporated the modifications identified in the April 4, 2003, notice into TSTF-359, Revision 9.

This proposal is one of the industrys initiatives under the risk-informed TS program. These initiatives are intended to maintain or improve safety while reducing unnecessary burden and to make TS requirements consistent with the Commissions other risk-informed regulatory requirements, in particular Section 50.65 of Title 10 of the Code of Federal Regulations (10 CFR), Requirements for monitoring the effectiveness of maintenance at nuclear power plants, or the Maintenance Rule.

The current PVNGS TS LCO 3.0.4 specifies that the plant cannot go to higher modes of operation1 (i.e., move toward power operation) except when the associated ACTIONS to be entered permit continued operation in the MODE or other specified condition in the Applicability for an unlimited period of time. In addition, PVNGS TS SR 3.0.4 restricts mode changes unless the LCOs Surveillances have been met within their specified surveillance Frequency.

The industry believes that this requirement is unnecessarily restrictive and can unduly delay plant startup while considerable resources are being used to resolve startup issues that are risk insignificant or low risk. A maintenance activity that takes longer than planned can delay a mode change and adversely impact a licensees orderly plant startup and return to power operation. In Revision 3.0 of NUREG-1432, Standard Technical Specifications for Combustion Engineering Plants, LCO 3.0.4 and SR 3.0.4 were revised to allow entry into a mode without meeting its LCO after performance of a risk assessment addressing inoperable systems and components, and establishment of appropriate risk management actions. The licensee proposes to adopt the provisions of LCO 3.0.4 and SR 3.0.4 in NUREG-1432 STS Revision 3.

The objective of the proposed changes is to provide additional operational flexibility without compromising plant safety.

The proposed changes to LCO 3.0.4 and SR 3.0.4 would allow, for systems and components, mode changes into a TS condition that has a specific required action and completion time (CT).

The licensee will utilize the LCO 3.0.4 and SR 3.0.4 allowances only when they determine that there is a high likelihood that the LCO will be satisfied within the LCO CT after the mode change. In addition, the LCO 3.0.4 and SR 3.0.4 allowances can be applied to values and parameters in specifications when explicitly stated in the TSs (nonsystem/component TSs such as Reactor Coolant System Specific Activity). These changes are in addition to the current mode change allowance when a required action has an indefinite CT. The LCO 3.0.4 and SR 3.0.4 mode change allowances are not permitted for the systems and components (termed higher risk) listed below in Section 3.1.2, Identification of Risk-Important TS Systems and Components, for the modes specified. Two examples are: (1) Combustion Engineering plants cannot transition from Mode 5 to Mode 4 without a high-pressure safety injection system train operable, and (2) Combustion Engineering plants cannot transition up into any mode with an inoperable required emergency diesel generator.

2.0 REGULATORY EVALUATION

In 10 CFR 50.36, Technical specifications, the Commission established its regulatory requirements related to the content of TSs. Pursuant to 10 CFR 50.36, TSs are required to include items in the following five specific categories related to station operation: (1) safety 1

Mode numbers decrease in the transition up to a higher mode of operation, power operation is Mode 1.

limits, limiting safety system settings, and limiting control settings, (2) LCOs, (3) SRs, (4) design features, and (5) administrative controls. The rule does not specify the particular requirements to be included in a plants TSs. As stated in 10 CFR 50.36(c)(2)(i), the Limiting conditions for operation are the lowest functional capability or performance levels of equipment required for safe operation of the facility. When a limiting condition for operation of a nuclear reactor is not met, the licensee shall shut down the reactor or follow any remedial action permitted by the technical specifications . . . . By convention, the LCOs and related SRs are contained in Sections 3.1 through 3.10 of the STSs. STS Section 3.0, on LCO and SR Applicability, provides details or ground rules for complying with the LCOs and related SRs. STS LCO 3.0.4 and SR 3.0.4 address requirements for LCO compliance when transitioning between modes of operation.

TSs have taken advantage of risk technology as experience and capability have increased.

Since the mid-1980's, the NRC has been reviewing and granting improvements to the TSs that are based, at least in part, on probabilistic risk assessment (PRA) insights. In its final policy statement on TS improvements of July 22, 1993, the Commission stated that it expects that licensees will utilize any plant-specific PRA or risk survey in preparing their TS-related submittals. In evaluating these submittals, the NRC staff applies the guidance in Regulatory Guide (RG) 1.174, An Approach for Using Probabilistic Risk Assessment in Risk-Informed Decisions on Plant-Specific Changes to the Licensing Basis, dated November 2002, and in RG 1.177, An Approach for Plant-Specific, Risk-Informed Decisionmaking: Technical Specifications, dated August 1998. The staff has appropriately adapted this guidance to assess the acceptability of upward mode changes with equipment inoperable. This review had the following objectives:

C To ensure that plant risk does not increase unacceptably during the actual implementation of the proposed change (e.g., when the plant enters a higher mode while an LCO is not met). This risk increase is referred to as temporary.

C To compare and assess the risk impact of the proposed change to the acceptance guidelines of the Commissions Safety Goal Policy Statement, as documented in RG 1.174. The risk impact, which is measured by the average yearly risk increase associated with the change, aims at minimizing the cumulative risk associated with the proposed change so that the plants average baseline risk is maintained within a minimal range.

C To assess the licensees ability to identify risk-significant configurations resulting from maintenance or other operational activities and take appropriate compensatory measures to avoid such configurations.

The NRC staff reviewed the reliance on 10 CFR 50.65(a)(4) for the non-higher-risk systems and components, and related guidance to assess and manage the risk of upward mode changes. The Commission has found that compliance with the industry guidance for implementation of 10 CFR 50.65(a)(4), as endorsed by RG 1.182, Assessing and Managing Risk before Maintenance Activities at Nuclear Power Plants, and mandated by STS LCO 3.0.4, SR 3.0.3, and SR 3.0.4, satisfies the configuration risk management objectives of RG 1.177 for TS surveillance interval and CT extensions. Reliance on 10 CFR 50.65(a)(4) processes that are consistent with the provisions of the NRC-endorsed industry guidance were also found

adequate for managing risk of missed surveillances as described in the Federal Register on September 28, 2001 (66 FR 49714).

The NRC staff review also had the objective of ensuring that existing inspection programs have the necessary controls in place to allow the NRC staff to oversee the implementation of the proposed change and reliance on 10 CFR 50.65(a)(4) processes or programs. The inspection program also allows the staff to adequately assess the licensees performance associated with risk assessments. The review encompassed inspection procedures (IPs) (i.e., NRC IP 62709 dated December 28, 2000, Configuration Risk Assessment and Risk Management Process, and NRC IP 71111.13 dated January 17, 2002, Maintenance Risk Assessments and Emergent Work Control), the significance determination process (SDP) (i.e., Inspection Manual Chapter (IMC) 0609, Appendix K, dated May 19, 2005, Maintenance Risk Assessment and Risk Management Significance Determination Process), enforcement guidance (i.e., draft Enforcement Manual Section 8.1.11, Actions Involving the Maintenance Rule), and the associated reactor oversight process (ROP).

2.1 Proposed Change to LCO 3.0.4 and SR 3.0.4 Currently, LCO 3.0.4 does not allow entrance into a higher mode (or other specified condition) in the applicability when an LCO is not met, except when the associated actions to be entered permit continued operation in that mode or condition indefinitely or a specific exception is granted. Similarly, when an LCOs surveillances have not been met within their specified frequency, entry into a higher mode (or other specified condition) is not allowed by SR 3.0.4.

LCO 3.0.4 for PVNGS currently states:

When an LCO is not met, entry into a MODE or other specified condition in the Applicability shall not be made except when the associated ACTIONS to be entered permit continued operation in the MODE or other specified condition in the Applicability for an unlimited period of time.

This Specification shall not prevent changes in MODES or other specified conditions in the Applicability that are required to comply with ACTIONS or that are part of a shutdown of the unit.

Exceptions to the Specification are stated in the individual Specifications.

LCO 3.0.4 is only applicable for entry into a MODE or other specified condition in the Applicability in MODES 1, 2, 3, and 4.

The revised LCO 3.0.4 will state:

When an LCO is not met, entry into a MODE or other specified condition in the Applicability shall only be made:

a. When the associated ACTIONS to be entered permit continued operation in the MODE or other specified condition in the Applicability for an unlimited period of time;

b. After performance of a risk assessment addressing inoperable systems and components, consideration of the results, determination of the acceptability of entering the MODE or other specified condition in the Applicability, and establishment of risk management actions, if appropriate; exceptions to this Specification are stated in the individual Specifications, or

c. When an allowance is stated in the individual value, parameter, or other Specification.

This Specification shall not prevent changes in MODES or other specified conditions in the Applicability that are required to comply with ACTIONS or that are part of a shutdown of the unit.

SR 3.0.4 currently states:

Entry into a MODE or other specified condition in the Applicability of an LCO shall not be made unless the LCOs Surveillances have been met within their specified frequency. This provision shall not prevent entry into MODES or other specified conditions in the Applicability that are required to comply with ACTIONS or that are part of a shutdown of the unit.

SR 3.0.4 is only applicable for entry into a MODE or other specified condition in the Applicability in MODES 1, 2, 3, and 4.

The revised SR 3.0.4 will conform to the changes to LCO 3.0.4 and state:

Entry into a MODE or other specified condition in the Applicability of an LCO shall only be made when the LCO's Surveillances have been met within their specified Frequency, except as provided by SR 3.0.3. When an LCO is not met due to Surveillances not having been met, entry into a MODE or other specified condition in the Applicability shall only be made in accordance with LCO 3.0.4.

This provision shall not prevent entry into MODES or other specified conditions in the Applicability that are required to comply with ACTIONS or that are part of a shutdown of the unit.

The proposed LCO 3.0.4(a) retains the current allowance for when the required actions allow indefinite operation. The proposed LCO 3.0.4(b) allows entering modes or other specified conditions in the applicability except when higher-risk systems and components (listed in Section 3.1.2), for the mode being entered, are inoperable. The decision for entering a higher mode or condition in the applicability of the LCO will be made by plant management after the required risk assessment has been performed and requisite risk management actions established through the program established to implement 10 CFR 50.65(a)(4). Entry into the modes or other specified conditions in the applicability of the TS shall be for no more than the duration of the applicable required actions CT, or until the LCO is met. Current notes in individual specifications that permitted mode changes are now encompassed by LCO 3.0.4(b) and can be removed. Notes that prohibit mode changes under LCO 3.0.4(b) must be added (i.e., for higher-risk systems and components).

The proposed LCO 3.0.4(b) allowance can involve multiple components in a single LCO or in multiple LCOs; however, use of the LCO 3.0.4(b) provisions are always contingent upon completion of a 10 CFR 50.65(a)(4) based risk assessment.

LCO 3.0.4 allowances related to values and parameters of TSs are not typically addressed by LCO 3.0.4(b) risk assessments, and are, therefore, addressed by a new LCO 3.0.4(c).

LCO 3.0.4(c) refers to allowances already in the TSs and annotated in the individual Specifications. LCO 3.0.4(c) also allows for entry into the modes or other specified conditions in the applicability of a TS for no more than the duration of the applicable required actions CT or until the LCO is met or the unit is not within the applicability of the TS.

2.2 Proposed Change to Example 1.4-1 The current Example 1.4-1 states:

If the interval as specified by SR 3.0.2 is exceeded while the unit is not in a MODE or other specified condition in the Applicability of the LCO for which performance of the SR is required, the Surveillance must be performed within the Frequency requirements of SR 3.0.2, prior to entry into the MODE or other specified condition. Failure to do so would result in a violation of SR 3.0.4.

The proposed Example 1.4-1 conforms to the changes in TSTF-485 that was approved by the staff on December 6, 2005 (ADAMS Accession No. ML053460302). The revised Example 1.4-1 states:

If the interval as specified by SR 3.0.2 is exceeded while the unit is not in a MODE or other specified condition in the Applicability of the LCO for which performance of the SR is required, then SR 3.0.4 becomes applicable. The Surveillance must be performed within the Frequency requirements of SR 3.0.2 prior to entry into the MODE or other specified condition, as modified by SR 3.0.3, or the LCO is considered not met (in accordance with SR 3.0.1) and LCO 3.0.4 becomes applicable.

This change is being made to correct Example 1.4-1 to conform to the changes made to LCO 3.0.4.

3.0 TECHNICAL EVALUATION

During the development of the current STSs, improvements were made to LCO 3.0.4, such as clarifying its applicability with respect to plant shutdowns, cold shutdown mode, and refueling mode. In addition, during the STSs development, almost all the LCOs with CTs greater than or equal to 30 days, and many LCOs with CTs greater than or equal to 7 days, were given individual LCO 3.0.4 exceptions. During some conversions to the STSs, individual plants provided acceptable justifications for other LCO 3.0.4 exceptions. All of these specific LCO 3.0.4 exceptions allow entry into a mode or other specified condition in the TS applicability while relying on the TS-required actions and associated CTs. The proposed change under evaluation would provide standardization and consistency to the use and application of LCO 3.0.4, both internal to and between each of the specifications and STS NUREGs. This proposed change will also ensure consistency through the utilization of appropriate levels of risk

assessment of plant configurations for application of LCO 3.0.4. However, nothing in this SE should be interpreted as encouraging upward mode transition with inoperable equipment.

Good practice should dictate that such transitions should normally be initiated only when all required equipment is operable and that mode transition with inoperable equipment should be the exception rather than the rule.

The current LCO 3.0.4 allowances are retained in the proposal and do not represent a change in risk from the current situation. The LCO 3.0.4(b) allowances apply to systems and components, and require a risk assessment prior to use to ensure an acceptable level of safety is maintained. The LCO 3.0.4(c) allowances apply to parameters and values which have been previously approved by the NRC in a plants specific TSs. The licensee will provide a discussion and list of each NRC-approved LCO 3.0.4(c)-specific value and parameter allowance in their TS Bases. The Bases of LCO 3.0.4 will be revised to explain the new allowances and their use. The NRC staff did a qualitative assessment of the risk impact of the proposed change in LCO 3.0.4(b) allowances by evaluating how the licensees implementation of the proposed risk-informed approach is expected to meet the guidance of the applicable RGs. The staff referred to the guidance provided in RG 1.174 and in RG 1.177. RG 1.177 provides the NRC staffs recommendations on using risk information to assess the impact of proposed changes to nuclear power plant TSs on the risk associated with plant operation.

Although RG 1.177 does not specifically address the type of generic change in this proposal, the staff considered the approach documented in RG 1.177 in evaluating the risk information provided in support of the proposed changes in LCO 3.0.4.

The NRC staffs evaluation of how the implementation of the proposed risk-informed approach used to justify LCO 3.0.4(b) allowances agrees with the objectives of the guidance outlined in RG 1.177 is discussed below in Section 3.1. Oversight of the risk-informed approach associated with the LCO 3.0.4(b) allowances is discussed below in Section 3.2.

3.1 Evaluation of Risk Management Both the temporary and cumulative risk of the proposed change are adequately limited. The temporary risk is limited by the exclusion of higher-risk systems and components (Section 3.1.2 below), and CT limits (Section 3.1.3 below). The cumulative risk is limited by the temporary risk limitations and by the expected low frequency of the proposed mode changes with inoperable equipment as discussed below in Section 3.1.4. Adequate NRC oversight of the licensees ability to use the LCO 3.0.4(b) provisions under appropriate circumstances (i.e., to identify risk-significant configurations when entering a higher mode or condition in the applicability of an LCO as discussed below in Section 3.1.5) is provided by NRC inspection of the licensees implementation of 10 CFR 50.65(a)(4) as applied to the proposed change.

3.1.1 Temporary Risk Increases RG 1.177 proposes the incremental conditional core damage probability (ICCDP) and the incremental conditional large early release probability (ICLERP) as appropriate measures of the increase in probability of core damage and large early release, respectively, during the period of implementation of a proposed TS change. In addition, RG 1.177 stresses the need to preclude potentially high-risk configurations introduced by the proposed change. The ICCDP associated

with any specified plant condition, such as the condition introduced by entering a higher mode with plant equipment inoperable, is expressed by the following equation:

ICCDP =R d = (R1 - Ro) d where:

R = the conditional risk increase, in terms of core damage frequency (CDF),

caused by the specified condition d = the duration of the specified plant condition R1 = the plant CDF with the specified condition permanently present Ro = the plant CDF without the specified condition The same expression can be used for ICLERP by substituting the measure of risk (i.e., large early release frequency (LERF) for CDF). The magnitude of the ICCDP and ICLERP values associated with plant conditions applicable to LCO 3.0.4(b) allowances can be managed by controlling the conditional risk increase, R (in terms of both CDF and LERF) and the duration, d, of such conditions. The following sections discuss how the key elements of the proposed risk-informed approach, used to justify LCO 3.0.4(b) allowances, are expected to limit R and d and, thus, prevent any significant temporary risk increases.

3.1.2 Identification of Risk-Important TS Systems and Components A major element that limits the risk of the proposed mode change flexibility is the exclusion of certain systems and associated LCOs for the mode change allowance. The TSs allow operation in Mode 1 (power operation) with specified levels of inoperability for specified times.

This provides a benchmark of currently acceptable risk against which to measure any incremental risk inherent in the proposed LCO 3.0.4(b). If a system inoperability accrues risk at a higher rate in one or more of the transition modes than it would in Mode 1, then an upward transition into that mode should not be allowed without demonstration of a high degree of experience and sophistication in risk management. However, the risk management process evaluated in Section 3.1.5 is adequate if higher-risk systems/components are excluded from the scope of LCO 3.0.4(b).

The importance of most TS systems in mitigating accidents increases as power increases.

However, some TS systems are relatively more important during lower power and shutdown operations, because:

C certain events are peculiar to modes of plant operation other than power operation, C certain events are more probable at modes of plant operation other than power operation, C some modes of plant operation have less mitigation system capability than power operation.

The risk information submitted in support of the proposed changes to LCO 3.0.4 and SR 3.0.4 includes qualitative risk assessments performed by each owners group to identify higher-risk

systems and components at the various modes of operation, including transitions between modes, as the plant moves upward from the refueling mode of operation toward power operation. The owners groups' generic qualitative risk assessments are included as attachments to TSTF-359, Revision 9. Each of the owners groups' generic qualitative risk assessments discuss the technical approach used and the systems/components subsequently determined to be of higher risk significance; the systems/components not to be granted the LCO 3.0.4 allowances for the various modes are listed. The owners groups' generic qualitative risk assessments are:

C BWR Owners Group Risk-Informed Technical Specification Committee, Technical Justification to Support Risk-Informed Improvements to Technical Specification Mode Restraints for BWR Plants, General Electric Company GE-NE A13-00464 (Rev. 2).

C B&W Owners Group Qualitative Risk Assessment for Increased Flexibility in MODE Restraints, Framatome Technologies BAW-2383, October 2001.

C Combustion Engineering Owners Group (CEOG) Task 1181, Qualitative Risk Assessment for Relaxation of Mode Entry Restraints, CE Nuclear Power LLC, CE NPSD-1207 (Rev. 0).

C WOG Qualitative Risk Assessment Supporting Increased Flexibility in MODE Restraints, January 2002.

Following interactions with the NRC staff, all owners groups used the same systematic approach in their qualitative risk assessments to identify the higher-risk systems in the STSs, consisting of the following steps:

C identification of plant conditions (i.e., plant parameters and availability of key mitigation systems) associated with changes in plant operating modes while returning to power, C identification of key activities that have the potential to impact risk and which are in progress during transitions between modes while the plant is returning to power, C identification of applicable accident initiating events for each mode or other specified condition in the applicability, and C identification of the higher-risk systems and components by combining the information in the first three steps (qualitative risk assessment).

The risk assessments properly used the results and insights from previous deterministic and probabilistic studies to systematically search for plant conditions in which certain key plant components are more important in mitigating accidents than during operation at power (Mode 1). This search was systematic, taking the following factors into account for the various stages of returning the plant to power:

C the status of accident mitigation and normally operating systems, C the status of key plant parameters such as reactor coolant system pressure, C the key activities that are in progress during transitions between modes which have the potential to impact risk (e.g., the transfer from auxiliary to main feedwater at some pressurized-water reactor (PWR) plants when Mode 1 is entered),

C the applicable accident initiating events for each mode of plant operation, and C design and operational differences among plants or groups of plants.

The following systems and components were identified by the CEOG as higher-risk systems and components, when the plant is entering a new mode.

CEOG Plants System Entering Mode Emergency Diesel Generators (EDGs) 5, 4, 3, 2, 1 Auxiliary Feedwater/Emergency Feedwater (AFW/EFW) 4, 3, 2 ,1 System High-Pressure Safety Injection (HPSI) System 4, 3 (below 1700 pounds per square inch absolute (psia))

Low-Temperature Overpressure Protection (LTOP)/ 5, 4 (below set Power-Operated Relief Valve (PORVs) (when used for temperature)

LTOP)

Shutdown Cooling System (Low-Pressure Safety 5 Injection (LPSI) pumps)

If a licensee identifies a higher-risk system for only some of the modes of applicability, the TSs for that system would be modified by a note that reads, for example, "LCO 3.0.4(b) is not applicable when entering MODE 1 from MODE 2." Systems identified as higher risk for Modes 5 and 6 for PWRs, and Modes 4 and 5 for boiling-water reactor (BWRs), are also excluded from transitioning up to the mode of higher risk, and as previously discussed, notes for those transitions are superfluous. In addition, mode transitions for Modes 5 and 6 for PWRs, and Modes 4 and 5 for BWRs, will be addressed by administrative controls.

At PVNGS, the licensee proposes to include notes restricting application of LCO 3.0.4(b) to the following risk significant systems:

TS 3.4.13, Low Temperature Overpressure Protection (LTOP) System TS 3.4.13 is applicable in MODE 4 when any RCS cold-leg temperature is < 214 oF during cooldown and when any RCS cold-leg temperature is < 291 oF during heatup;

MODE 5 and MODE 6 when the reactor vessel head is on. A note will be added to state that LCO 3.0.4(b) is not applicable when entering Mode 4.

TS 3.5.4, ECCS - Shutdown TS 3.5.4 is applicable in Mode 3 with pressurizer pressure < 1837 psia and with RCS Tc < 485 oF and Mode 4. A note will be added to state that LCO 3.0.4(b) is not applicable to the emergency core cooling system (ECCS) HPSI Subsystem when entering Mode 4.

TS 3.7.5, Auxiliary Feedwater (AFW) System TS 3.7.5 is applicable in Modes 1, 2, 3, and Mode 4 when steam generator is relied upon for heat removal. A note will be added to state that LCO 3.0.4(b) is not applicable.

TS 3.8.1, A.C.[Alternating Current] Sources - Operating TS 3.8.1 is applicable in Modes 1, 2, 3, and 4. A note will be added stating that LCO 3.0.4(b) is not applicable to diesel generators.

In summary, the staffs review of the owners groups' qualitative risk assessments finds that they are of adequate quality to support the application (i.e., they identify the higher-risk systems and components) associated with entering higher modes of plant operation with equipment inoperable while returning to power.

The licensee has adopted the TSTF-359 wording for LCO 3.0.4 and SR 3.0.4. Existing notes stating that LCO 3.0.4 is not applicable have been deleted from various TS LCOs as described in TSTF-359 and the supporting documentation. The format and numbering of the PVNGS TS vary from the STS, but the changes proposed are consistent with TSTF-359 and this SE. LCO 3.0.4(c) has been referenced appropriately for the TS defining limits on parameters and values. The licensee has, consistent with the above list, added notes to the appropriate TS to state that the revised LCO 3.0.4(b) allowing mode changes with inoperable equipment is not applicable to the identified higher-risk systems.

3.1.3 Limited Time in TS-Required Actions Any temporary risk increase will be limited by, among other factors, duration constraints imposed by the TS CTs of the inoperable systems. For the systems and components which are not higher risk, any temporary risk increase associated with the proposed allowance will be smaller than what is considered acceptable when the same systems and components are inoperable at power. This is due to the fact that CTs associated with the majority of TS systems and components were developed for power operation and pose a smaller plant risk for action statement entries initiated or occurring at lower modes of operation as compared to power operation.

The LCO 3.0.4(b) allowance will be used only when the licensee determines that there is a high likelihood that the LCO will be satisfied following the mode change. This will minimize the likelihood of additional temporary risk increases associated with the need to exit a mode due to

failure to restore the unavailable equipment within the CT. In most cases, licensees will enter into a higher mode with the intent to move up to Mode 1 (power operation). As discussed below in Section 3.2, the revised ROP monitors unplanned power changes as a performance indicator. Thus, the ROP discourages licensees from entering a mode or other specified condition in the applicability of an LCO, and moving up in power, when there is a likelihood that the mode would have to be subsequently exited due to failure to restore the unavailable equipment within the CT. Another disincentive for licensees to enter a higher mode when an LCO is not met is related to reporting requirements. It clearly states in 10 CFR 50.72, Immediate notification requirements for operating nuclear power reactors, that a report is required when the initiation of a nuclear plant shutdown is required by TSs. The NRCs oversight program will provide the framework for inspectors and other staff to follow the history at a specific plant of entering higher modes while an LCO is not met, and use such information in assessing the licensees actions and performance.

3.1.4 Cumulative Risk Increases The cumulative risk impact of the change to allow the plant to enter a higher mode of operation with one or more safety-related components unavailable (as proposed here), is measured by the average yearly risk increase associated with the change. In general, this cumulative risk increase is assessed in terms of both CDF and LERF (i.e., CDF and LERF, respectively).

The increase in CDF due to the proposed change is expressed by the following equation, which integrates the risk impact from all expected specified conditions (i.e., all expected plant conditions caused by mode changes with various TS systems and components unavailable).

CDF = j(CDFi) = j ICCDPi fi where CDFi = the CDF increase due to specified condition i ICCDPi = the ICCDP associated with specified condition i fi = the average yearly frequency of occurrence of specified condition i A similar expression can be used for LERF by substituting the measure of risk (i.e., LERF for CDF). The magnitude of the CDF and LERF values associated with plant conditions applicable to LCO 3.0.4(b) allowances can be managed by controlling the temporary risk increases, in terms of both CDF and LERF (i.e., ICCDP and ICLERP), and the frequency (f), of each of such conditions. In addition to the points made in the previous section regarding temporary risk increases, the following points put into perspective how the key elements of the proposed risk-informed approach, used to justify an LCO 3.0.4(b) allowance, are expected to prevent significant cumulative risk increases by limiting the frequency of its use:

C The frequency of risk significant conditions will be limited by not providing the LCO 3.0.4(b) allowances to the higher risk systems and components.

C The frequency of risk significant conditions will be limited by the requirement to assess the likelihood that the LCO will be satisfied following the mode change.

C The frequency of risk significant conditions is limited by the fact that such conditions can occur only when the plant is returning to power following shutdown

(i.e., during a small fraction of time per year). Data over the past 5 years indicate that the plants are averaging 2.1 startups per year.

The addition of the proposed LCO 3.0.4(b) allowances to the plant maintenance activities is not expected to change the plants average (cumulative) risk significantly.

3.1.5 Risk Assessment and Risk Management of Mode Changes With all safety systems and components operable, a plant can transition up in mode to power operation. With one or more system(s) or component(s) inoperable, this change permits a plant to transition up in mode to power operation if the inoperable system(s) or component(s) are not in the pre-analyzed higher risk category, a 10 CFR 50.65(a)(4)-based risk assessment is performed prior to the mode transition, and the requisite risk management actions are taken.

The proposed TS Bases state, in part:

LCO 3.0.4.b allows entry into a MODE or other specified condition in the Applicability with the LCO not met after performance of a risk assessment addressing inoperable systems and components, consideration of the results, determination of the acceptability of entering the MODE or other specified condition of the Applicability, and establishment of risk management actions, if appropriate.

The risk assessment may use quantitative, qualitative, or blended approaches, and the risk assessment will be conducted using the plant program, procedures, and criteria in place to implement 10 CFR 50.65(a)(4), which requires that risk impacts of maintenance activities to be assessed and managed.

It should be noted that the risk assessment, for the purposes of LCO 3.0.4(b), must take into account all inoperable TS equipment regardless of whether the equipment is included in the licensees normal 10 CFR 50.65(a)(4) risk assessment scope. The risk assessments will be conducted using the procedures and guidance endorsed by RG 1.182. The results of the risk assessment shall be considered in determining the acceptability of entering the MODE or other specified condition in the Applicability, and any corresponding risk management actions. A risk assessment and establishment of risk management actions, as appropriate, are required for determination of acceptable risk for entering MODES or other specified conditions in the Applicability when an LCO is not met. Elements of acceptable risk assessment and risk management actions are included in Section 11 of Nuclear Management and Resources Council (NUMARC) document 93-01, Assessment of Risk Resulting from Performance of Maintenance Activities, as endorsed by RG 1.182, which addresses general guidance for conduct of the risk assessment, gives quantitative and qualitative guidelines for establishing risk management actions, and provides example risk management actions. These risk management actions include actions to plan and conduct other activities in a manner that controls overall risk, actions to increase risk awareness by shift and management personnel, actions to reduce the duration of the conditions, actions to minimize the magnitude of risk increases (establishment of backup success paths or compensatory measures), and actions to ensure that a determination is made that the proposed Mode change is acceptable.

The guidance references state that a licensees risk assessment process should be sufficiently robust and comprehensive to assess risk associated with maintenance activities during power operation, low power, and shutdown conditions (all modes of operation), including changes in plant conditions. NUMARC 93-01 states that the risk assessment should include consideration of: (1) the degree of redundancy available for performance of the safety function(s) served by the out-of-service equipment, (2) the duration of the out-of-service condition, (3) component and system dependencies that are affected, (4) the risk impact of performing the maintenance during shutdown versus at power, and, (5) the impact of mode transition risk. For power operation, key plant safety functions are those that ensure the integrity of the reactor coolant pressure boundary, ensure the capability to shut down and maintain the reactor in safe shutdown condition, and ensure the capability to prevent or mitigate the consequences of accidents that could result in potentially significant offsite exposures.

While the inoperabilities permitted by the CTs of TS-required actions take into consideration the safety significance and redundancy of the system or components within the scope of an LCO, the CTs generally do not address or consider concurrent system or component inoperabilities in multiple LCOs. Therefore, the performance of the 10 CFR 50.65(a)(4) risk assessment, which looks at the entire plant configuration, is essential (and required) prior to changing operational mode. The 10 CFR 50.65(a)(4) based risk assessment will be used to confirm (or reject) the appropriateness of transitioning up in mode given the actual status of plant safety equipment.

The risk impact on the plant condition of invoking an LCO 3.0.4(b) allowance will be assessed and managed through the program established to implement 10 CFR 50.65(a)(4). This program is consistent with RG 1.177 and RG 1.174 in its approach. The implementation guidance for paragraph (a)(4) of the Maintenance Rule addresses controlling temporary risk increases resulting from maintenance activities. This guidance, consistent with guidance in RG 1.177, establishes action thresholds based on qualitative and quantitative considerations and risk management actions. Significant temporary risk increases following an LCO 3.0.4(b) allowance are unlikely to occur unless:

C high-risk configurations are allowed (e.g., certain combinations of multiple component outages), or C risk management of plant operation activities is inadequate.

The requirements associated with the proposed change are established to ensure that such conditions will not occur.

The thresholds of the cumulative (aggregate) risk impacts assessed pursuant to 10 CFR 50.65(a)(4) and the associated implementation guidance are based on the permanent change guidelines in RG 1.174. Therefore, licensees will manage the risk by exercising LCO 3.0.4 in conjunction with the risk from other concurrent plant activities to ensure that any increase, in terms of CDF and LERF, will be small and consistent with the Commissions Safety Goal Policy Statement.

3.2 Oversight The ROP provides a means for assessing the licensees performance in the application of the proposed mode change flexibility. The adequacy of the licensees assessment and management of maintenance-related risk is addressed by existing inspection programs and guidance for 10 CFR 50.65(a)(4). Although the current versions of that guidance do not specifically address application of the licensees paragraph 50.65(a)(4) program to support risk-informed TSs, it is expected that, in most cases, risk assessment and management associated with risk-informed TSs would be required by paragraph 50.65(a)(4) because maintenance activities will be involved.

Adoption of the proposed change will make failure to assess and manage the risk of an upward mode change with inoperable equipment covered by TSs, prior to commencing such a mode change, a violation of TSs. Further, as explained above in general, under most foreseeable circumstances, such a change in configuration would also require a risk assessment under 10 CFR 50.65(a)(4). Inoperable systems or components will necessitate maintenance to restore them to operability, and, hence, a 10 CFR 50.65(a)(4) risk assessment would be performed prior to the performance of those maintenance actions (except for immediate plant stabilization and restoration actions if necessary). Further, before altering the plants configuration, including plant configuration changes associated with mode changes, the licensee must update the existing paragraph 50.65(a)(4) risk assessment to reflect those changes.

The July 19, 1999, Federal Register Notice (64 CFR 38553) issuing a revision to the maintenance rule along with NRC Inspection Procedure (IP) 71111.13 and Section 11 of NUMARC 93-01, indicate that to determine the safety impact of a change in plant conditions during maintenance, a risk assessment must be performed before changing plant conditions.

The Bases for the proposed TS change mandate that the risk assessment and management of upward mode changes will be conducted under the licensees program and process for meeting 10 CFR 50.65(a)(4). Oversight of licensee performance in assessing and managing the risk of plant maintenance activities is conducted principally by inspection in accordance with ROP Baseline IP 71111.13. Supplemental IP 62709 is used to evaluate the licensees process, when necessary.

The ROP is described in overview in NUREG-1649, Revision 3, Reactor Oversight Process, and in detail in the NRC Inspection Manual. IP 71111.13 provides for verification of performance of risk assessments when they are required by 10 CFR 50.65(a)(4) and in accordance with licensee procedures. The procedure also provides for verification of the adequacy of those risk assessments and verification of effective implementation of licensee-prescribed risk management actions. The rule itself requires such assessment and management of risk prior to maintenance activities, including preventive maintenance, surveillance, and testing (and promptly for emergent work) during all modes of plant operation.

The guidance documents for both industry implementation of paragraph 50.65(a)(4) and NRC oversight of that implementation indicate that changes in plant configuration (which would include mode changes) in support of maintenance activities must be taken into account in the risk assessment and management process. Revisions to NRC inspection guidance and licensee implementation procedures will be needed to address oversight of risk assessment and management required by TSs in support of mode changes that are not already required

under the circumstances by paragraph 50.65(a)(4). This consideration provides performance-based regulatory oversight of the use of the proposed flexibility, and a disincentive to use the flexibility without the requisite care in planning.

In addition, the staff has developed detailed SDP guidance in IMC 0609, Appendix K, dated May 19, 2005, for use in assessing inspection findings related to 10 CFR 50.65(a)(4). The ROP considers inspection findings and performance indicators in evaluating the licensees ability to operate safely. The SDP is used to determine the significance of inspection findings related to the licensees assessment and management of the risk associated with performing maintenance activities under all plant operating or shutdown conditions. Unplanned reactor scrams and unplanned power changes are two of the Reactor Safety Performance Indicators that the ROP utilizes to assess licensee performance and inform the public. The ROP will provide a disincentive to entering into power operation (Mode 1) when there is a significant likelihood that the mode would have to be subsequently exited due to failure to restore the unavailable equipment within the CT.

The licensee included in its application the revised TS Bases to be implemented with the TS change and the NRC staff found them to be acceptable. However, the NRC staff acknowledges that the TS Bases Control Program is the appropriate process for updating the affected TS Bases pages and has, therefore, not included the affected Bases pages with these amendments.

3.3 Summary The industry, through the NEI RITSTF, has submitted a proposed TS change to allow entry into a higher mode of operation or other specified condition in the TS applicability while relying on the TS conditions and associated required actions and CTs provided a risk assessment is performed to confirm the acceptability of that action. The proposal revises LCO 3.0.4 and SR 3.0.4, and their application to the TSs. New paragraphs (a), (b), and (c) are proposed for LCO 3.0.4.

The proposed LCO 3.0.4(a) retains the current allowance, permitting the mode change when the TS-required actions allow indefinite operation. Proposed LCO 3.0.4(b) is the change to allow entry into a higher mode of operation, or other specified condition in the TS applicability, while relying on the TS conditions and associated required actions and CTs, provided a risk assessment is performed to confirm the acceptability of that action for the existing plant configuration. The NRC staff review finds that the process proposed by industry for assessing and managing risk during the implementation of the proposed LCO 3.0.4(b) allowances meets Commission guidance for TS changes. Key elements of this process are listed below.

C A risk assessment shall be performed before any LCO 3.0.4(b) allowance is invoked.

C The risk impact on the plant condition of invoking an LCO 3.0.4(b) allowance will be assessed and managed through the program established to implement 10 CFR 50.65(a)(4) and the associated guidance in RG 1.182. Allowing entry into a higher mode or condition in the applicability of an LCO after a 10 CFR

50.65(a)(4) based risk assessment and appropriate risk management actions are taken for the existing plant configuration will ensure that plant safety is maintained.

C The LCO 3.0.4(b) allowance will be used only when the licensee determines that there is a high likelihood that the LCO will be satisfied within the required actions CT.

C TS systems and components which may be of higher risk during mode changes have been identified generically by each owners group for each plant operational mode or condition. Licensees will identify such plant-specific systems and components in the individual plant TSs. The proposed LCO 3.0.4(b) allowance does not apply to these systems and components for the mode or condition in the applicability of an LCO at which they are of higher risk.

C Plants adopting LCO 3.0.4(b) will ensure that plant procedures in place to implement 10 CFR 50.65(a)(4) address the situation where entering a mode or other specified condition in the applicability is contemplated with plant equipment inoperable. Such plant procedures typically follow the guidance in NUMARC 93-01, Section 11, as revised in February 2000 and endorsed by NRC RG 1.182.

The NRCs ROP provides the framework for inspectors and other staff to oversee the implementation of 10 CFR 50.65(a)(4) requirements at a specific plant and assess the licensees actions and performance.

The LCO 3.0.4(b) allowance does not apply to values and parameters of the TSs that have their own respective LCOs (e.g., Reactor Coolant System Specific Activity), but instead those values and parameters are addressed by LCO 3.0.4(c). The TS values and parameters for which mode transition allowances apply will have a note that states LCO 3.0.4(c) is applicable.

The objective of the proposed change is to provide additional operational flexibility without compromising plant safety.

The proposed revision to Example 1.4-1 corrects it in order to conform with the changes made to LCO 3.0.4.

4.0 STATE CONSULTATION

In accordance with the Commission's regulations, the Arizona State official was notified of the proposed issuance of the amendment. The State official had no comments.

5.0 ENVIRONMENTAL CONSIDERATION

The amendments change requirements with respect to installation or use of a facility component located within the restricted area as defined in 10 CFR Part 20 and change a surveillance requirement. The NRC staff has determined that the amendments involve no significant increase in the amounts and no significant change in the types of any effluents that

may be released offsite and that there is no significant increase in individual or cumulative occupational radiation exposure. The Commission has previously issued a proposed finding that the amendments involve no significant hazards consideration, and there has been no public comment on such finding published November 7, 2006 (71 FR 65140). Accordingly, the amendments meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(9). Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the issuance of the amendments.

6.0 CONCLUSION

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

Principal Contributor: T. Wertz Date: February 21, 2007