Industry Perspective on

Final Part 52 -Rule

Industry Briefing of NRC Commission

November 9, 2006

r±~I
Industry Panel

m Marvin Fertel, Chief Nuclear Officer, NEI

* Scotty Hinnant, Chief Nuclear Officer,

Progress Energy & Chairman of NEI New Plant

Working Group

" Marilyn Kray, President, NuStart Energy

NiE !
Part 52

* After 8 years the rule needs to be issued

• COL applications will be at the final review

stage in six months

* Recommendation: Issue final rule with a

few specific changes,

9 Avoid misinterpretation

* Increase certainty

e Improve implementation efficiency

N ,EI
Issues

" Environmental finality

* Design certification change process

" Section 52.99 -- new requirements

" International operating experience

* Regulation by generic communication

* Severe accident issues

Pt E-:I
Environmental Finality

* Environmental finality is critical issue

" Use COL environmental report to define issues

" Use of NEPA scoping process to provide

opportunity for public comment would improve

process

* NRC Staff evaluates public comments

" Determines if significant new information has been

identified

* Issues Commission-approved notice on scope of

proceeding

* 'iEI
Design Certification Change

Process

*o Rule should support concept of design

certification finality

* Rulemaking for design changes beyond

those permitted by existing regulations

should only be initiated based on insights

from:

* First-of-a-Kind Engineering

* Construction
Construction Inspection

(§52.-99)

m NRC October 25 new rule language.

* Does not reflect the intense NRC construction

inspection program, Sign-As-You-Go approach

* Does not reflect detailed industry & NRC

schedules for supporting ITAAC activities

• Impractical for implementation

* More public dialogue is critical before rule is

finalized
Evaluation of International

Operatin g Experience (QE)

- The rule should not require COL

applicants to monitor and evaluate

international OE comparable to. NRC

generic letters and bulletins

* NRC Office Instruction LIC-400 requires

the staff to factor international OE into NRC

programs
Regulation by Generic Communication & Guida nce

- Applicants should not be required to

demonstrate how generic letters and

bulletins have been incorporated into

plant design

*-Insight from generic communications

must be incorporated into rules, SRP

and guidance as issues are resolved
Severe Accident Issues

w Severe accidents are not §50.2 design bases

* Change process for severe accident design

features is unclear and inconsistent with SOC

and standard regulatory change processes

* Rule change needed to:

Make the regulation consistent with standard

regulatory practices

* State the requirement only applies to a specific set of

ex-vessel severe accident events that are not design

bases accidents
iu Limmited Work Authorizations

* Proposed rule has many positive aspects

" Remaining- issues requiring resolution

" Excavation

* Scope of facilities subject to LWA

El
Licensing/Hearing Process Enhancements

m Industry supports issuance of

October 20 Draft Policy Statement

* Further process improvements for

consideration

e Establish target milestones for SER & EIS

e Start ESP and COL hearings based on draft SER

& EIS

* Focus hearing on application-specific issues
In Addition...

* Eliminate the uncontested part of the

mandatory ESP and COL hearing

* Specify use of informal, legislative-type

hearings under Section 52.103 (ITAAC)

r4EMI
Summary

- Need to finalize the rule but...

* Changes are needed to avoid

misinterpretation, improve certainty and

effectiveness

* Need timely dialogue with NRC staff

on §52.99

- Industry will provide written

amplification of these comments

two I
FINAL RULE PART

LICENSES,

CERTIFICATIONS

APPROVALS

52

IND

November 9, 2006

Luis Reyes, Executive

Director for Operations
Agenda

" Background

" Purpose

" Outcomes of Final Rule

" Interactions

" Finality in Environmental Area

" Design Certification Amendments

" Other Process Enhancements

" Optimize Closure Process for ITAAC

2
Background

* January 30, 2006 SRM on SECY05-0203 approved proposed rule

publication

" Proposed rule published March

13, 2006

" Comment period ended May 30, 2006

3
Purpose

* Update 10 CFR Part 52

- lessons learned during design

certification & ESP reviews

interactions with stakeholders

on COL process

* Enhance efficiency/effectiveness

* Clarify applicability of

requirements

4
Outcomes of Final Rule

• Clear statement of application

requirements for each

licensing/approval process

* ITAAC closure process

* Flexibility in regulatory processes

* Clear applicability of technical

and administrative requirements

for each process

5
Interactions

" Stakeholder meetings

* Public comments

* Range of staff views considered

* Supplemental proposed rule on

limited work authorizations

published October 17, 2006 as

directed by SRM dated October 2,

2006

6
Finality in Environ mental

Area

" Clarifying environmental finality at

ESP Stage

" Enhancing concept of new and

significant information

* Describing process for complete

EIS at ESP Stage

* Range of staff views considered

7
Design Certification

Amendments

" In proposed rule, Commission

raised questions about

amendment provisions

" Many commenters encouraged

NRC to adopt a process

" NRC added three criteria

" Amendments would apply to all

referencing plants

8
Other Process

Enhancements

* Several process changes made in

response to stakeholder

comments

* Retain provisions for identical

designs at multiple sites reviews

* Allow COL applications to be

submitted in two parts

9
Optimize closure process

" Proposed rule raised questions

about ITAAC completion

" Purposes of rule provisions

- meet statutory requirements

-facilitate inspection process

- address roles of NRC and

licensee in information availability

-provide stability in process

10
Requirements on ITAAC

Completion

• Submittal of ITAAC schedule

ITAAC completion notifications

* Sufficient information for ITAACs

not completed before hearing

notice

* Notice of opportunity for hearing

11
Acronyms

" COL- combined license

" EIS - environmental impact

statement

" ESP - early site permit

" ITAAC - inspections, tests,

analyses and acceptance criteria

" SRM - staff requirements

memorandum

12