COMMISSION BRIEFING SLIDES/EXHIBITS

PERIODIC BRIEFING ON NEW REACTOR ISSUES

OCTOBER 24, 2007
StAtus of Construction Inspection

Program Activities

N'-,

Industry Briefing of NRC Commission

Kevin Richards, Group Vice President

STP Nuclear Operating Company

October 24, 2007 " N

H U C L E A R

E N E R G Y

I N S T IT U T I
Industry Participants

S"Kevin Richards, Group Vice President,

STP Nuclear Operating Company

* Ed Cummins, Vice President of Regulatory

Affairs, Westinghouse

* Sherry Grier, Procurement Quality Manager,

Duke Energy and Chairman of NUPIC.

NIE I .2
Construction Quality & Assessment

" Project Quality

- Utilize modern construction practices

- Establish high standards

- Open communications at all levels

" Corrective Action Program

" Construction Assessment

- Centered on the corrective action program

- Focused on

" Programmatic issues

" Willful misreporting

" Major defects in significant equipment accepted for service

I3
Workforce & Access Authorization

* Skilled Work Force

- Being addressed by industry through partnerships with

educational institutions

- Training & knowledge transfer important

* Access During Construction

- Drug and alcohol screening

- Identify terrorists, illegal aliens and outstanding felony

warrants

- DHS and law enforcement checks are sufficient

rqJE 4
NRC CommissionMeeti'ng

- Ed Cummins

Westinghouse Electric Company

October 24, 2007

4 E: I

N UC L E A R

EI N E R G Y

I N S T I T U T I -•
Design Lessons Learned

" Utility Requirements Document (URD)

" Accumulated lessons learned from 30 years of operating

experiences

" Detailed, strict conformance reviews were an integral part of the

plant design process

" European Utility Requirements (EUR)

* Similar to the URD but based on operating experience in Europe

" INPO - Operating experience to apply to advanced light water

designs

" COL applicants are very active participants in the details of the

designs that they have selected

" NRC generic issues

•I• 2
Design Maturity

" Standardization permits design completion for plants after

the first unit

" IOCFR52 licensing process demands more design

completion than the IOCFR50 two-step requirements for

PSAR

" Lessons learned validate the importance of design

maturity

" Design maturity is a recognized goal by all stakeholders in

new nuclear projects

III 3
Construction Lessons, Learned

* Lessons learned from overseas construction and

from corrective action plans

* Key areas for continued attention include:

- Design completion

- Early regulatory approval

- Supervision of suppliers

- Attention to details, and

- Effective corrective action programs

. ... • . . . •4
Benefits of Modularization

" Quality is improved by the use of a controlled

environment and a stable, permanent work force

" Demand for critical skills at the site are reduced

" Preliminary testing such as flushing and hydrostatic

testing can be accomplished in the shop

m Simplifies construction management challenges

" Successfully implemented by all of the nuclear plant

suppliers in Japan

" Successfully applied in other industries
Impact of Modularization on

Project Delivery

" Modularization demands early design details

" Engineered components must be delivered to the modular

fabricator much earlier

" Develop detailed module design

* Evaluation of module suppliers

" Involvement in design for manufacturability

" Capability

" Nuclear experience

* Regulatory impacts of module supply

e Manufacture may start 18-24 months before COL is issued

e Large modules assembled on the site

• Inspection plan should recognize location and schedule for

module manufacture

6
I

~Dulce

r'Energ)(.
 

Nuclear Procurement
 

Issues Committee (NUPIC)
 

and New Plant Issues
 

October 24, 2007
 

Sherry Grier
 

Procurement Quality Mgr., Duke Energy
 

NUPIC Chairman
 
NUPIC Background

* Formed in 1989

Membership

-32 US members

- 13 International members (Brazil,

Canada, Korea, Mexico, Taiwan,

Slovenia, South Africa, Spain and

Sweden)

2
NUPIC Objectives

Cooperative program for performing

and sharing joint supplier audits

* Audits are evaluated by each member

and serve as basis for maintaining

suppliers on Approved Suppl ers List

* Forum for sharing procurement and

supplier quality issues

3
NUPIC Objectives

" Secure website with information

on 800 suppliers with 400

supported by joint audits

" Electronic distribution of

audit/survey reports

* Perform approximately 150 joint

audits -annually

4
NUPIC Key Benefits

* Industry-wide standardized approach

to conducting performance based

supplier audits

• Diverse audit teams from different

utilities

* Technical specialist participation

required

* Peer reviews of audits and supplier

feedback

5
NUPIC Interfaces with NRC

* NRC Inspectors observe selected

NUPIC audits

• NRC Vendor Branch personnel

attend NUPIC meetings

* Vendor Branches provide

feedback on inspections

6
New Plant Benefits

* Standardized designs

* Existing infrastructure for

information and resource sharing

can be expanded

* Foundation in place for new plant

supplier audits

7
Challenges

* Complex regulations, standards

and guidance for procurement

* Increased use of new and

international suppliers

* Increased manufacturing pressure

for existing suppliers

8
Fraudulent Materials

- Not a new issue

- Industry addressed in early 90's

through Comprehensive Procurement

Initiative

-Heightened industry awareness of

potential for fraudulent items

-Industry information exchange prior

to audit

9
Effective Actions to Identify

Fraudulent Items

" Increased engineering

involvement

" Emphasis on technical verification

of product quality

* Developed commercial grade

dedication process

" Enhanced tests and inspections

* Performance based vendor audits

instead of programmatic audits

10
NUPIC Preparations for New

Plants

" Established standing committee

to identify and address new plant

needs

" Interacting with NEI New Plant QA

Task Force

- Lessons learned reviews

- Review recent DOE experience

11
NUPIC Preparations for New

Plants

" Evaluating the results of the

"lessons learned"

• Checklists being enhanced

* Auditor training

" Developing strategies for

conducting oversight of common

suppliers

12
The NRC Process &

Nuclear Energy:

Calvert County, Maryland

October 24, 2007

Wilson H. Parran

President, Calvert County, Maryland Board

of County Commissioners
Nuclear Energy &

Calvert County, Maryland

Calvert County is home to,

Calvert Cliffs Nuclear Power

Plant, Lusby, Maryland - In March 2000, Calvert Cliffs was the

first nuclear power plant in the United

States to achieve re-licensing

- Calvert Cliffs has 30+ years of

operating history with an outstanding

safety record, remains an outstanding

corporate citizen and maintains a

significant environmental commitment

- Calvert Cliffs is a major economic

engine, contributing $16.2M (FY07),

has been a stable revenue source

since FY1 973, and currently has over

800+ jobs on site

2
NRC Regulatory Process:

Calvert County, Maryland

Historical

- Calvert County's relationship with the NRC began after Calvert

Cliffs Nuclear Power Plant came on line; licensing occurred prior

to NRC creation

- However, NRC oversaw the relicensing of Calvert Cliffs

• NRC process was outstanding

• NRC ensured significant public participation

0 NRC addressed all regulatory questions and constituent concerns

* Current

Calvert Cliffs Nuclear Power Plant currently under consideration

for 3rd reactor. NRC involvement has been proactive and positive:

* NRC approached the County, requesting to publically present the

NRC's role and process for new reactor construction

* NRC conducted public outreach session in the County; 300+

individuals attended

0 Because of the historical and current approach, Calvert County

remains confident in the NRC process 3
NRC Process New Reactors

* Calvert County understands, and is

comfortable with, the fact that the

NRC is:

An independent and technically oriented

government agency that only evaluates the safety ofthe proposed plant and its potential impact on the

environment and the surrounding community

Not an advocate for nuclear power or for the

proposed expansion

This provides an unbiased, independent review

process

4
NRC Process New Reactors

* NRC's Role in Calvert County:

-Calvert County is appreciative of. the NRC's

efforts and trusts the regulatory process and

oversight

-Calvert County encourages the NRC to

continue to:

9 Provide outstanding public information

o Be accessible

9 Be responsible to constituent concerns

• Be open and responsive to citizen input

5
Calvert County & Potential

Calvert Cliffs Expansion

Calvert County supports the

potential expansion

Calvert County already granted a 50% tax credit for,

new construction

- Calvert County stands ready to share in our nation's

responsibility to provide resources that produce energy

to minimize the impact to -our global environment and

reduce foreign energy supply reliance

- Calvert County looks to the NRC to continue to

address constituent questions and concerns

throughout the process /

6
Calvert County, Maryland

Contact information:

IkOW Vilson H. Parran

President

Calvert County, Maryland

Board of County Commissioners

www.ecalvert.com

410.535.1600

7
Environmental

Justice Requires

Public Participation

October 24, 2007

Louis A. Zeller

Blue Ridge Environmental Defense League

www.BREDL.org

PO Box 88 Glendale Springs, NC 28629

BREDLc@skybest.com (336) 982-2691

1
CAA Section 112

In 1989, EPA established its risk policy by deciding

that the life-time excess risk of cancer, or

maximum individual risk (MIR), to any given

toxic should-not be greater than one in 10,000

(1'x 10-4). In the same year, EPA promulgated

its final rule for radionuclides, that protects the

public from a MIR risk of Tx 10-4 but also

regulates to protect 90% of the people within

eighty kilometers of a source to risk levels of

1 x 10-6 using the two-step approach required

by the NRDC v. EPA case. (138)

2
MACTs: Technology Based

Standards

For new sources, MACT must be at least as stringent as

the average emissions achieved by the best controlled

sources in the same category. For existing sources,

MACT may not be less stringent than the average

emission limitation of the best performing 12% of existing

units. Where there are few sources, the average of the

best performing five sources is to be used. Hazardous

pollutants are to be controlled by the reduction in

emissions through process changes, substitution of

materials or other modifications, as well as through the

use of traditional pollution control devices and work

practices. (254)

3
titip.

NPPs and COL Application Sites

4
NRC INFORMATION NOTICE 2007-04

February 5, 2007

NRC INFORMATION NOTICE 2007-04: CONSTRUCTION EXPERIENCE RELATED TO THE

ASSURANCE OF QUALITY IN. THE CONSTRUCTION OF NUCLEAR FACILITIES

In both Finland and the United States, interest in new

reactor and fuel cycle facility construction is resuming

after many years. However, the problems currently being

identified in Finland are very similar to those that

occurred in the ,United States more than 20 years ago.

Regardless of the licensing process and the type of

construction, a commitment to quality, instilled early in a

nuclear construction project, is important to ensure that

the facility is constructed and will operate in

conformance with its license and the NRC's regulations.

UNITED STATES NRC OFFICE OF NUCLEAR REACTOR REGULATION

5
Insufficient guidance of subcontractors' work in

Olkiluoto 3 nuclear power plant project

This past March, the Finnish Radiation and Nuclear Safety.Authority

(STUK) appointed an investigation team to assess compliance with

safety requirements in the construction of Olkiluoto 3 nuclear power

plant unit. In its report published today, the investigation team states

that the major problems involve project management, in particular

with regard to construction work, but not nuclear safety. The power

plant vendor has selected subcontractors with no prior experience in

nuclear power plant construction to implement the project. These

subcontractors have not received sufficient guidance and

supervision to ensure smooth progress of their work. The

investigation team provides recommendations both to the buyer and

the vendor company. Furthermore, there is also room for

improvement in the practices of the regulatory body.

December 7, 2006-

http ://www. stu k.fi/stu k/tiedotteet/en_GB/news_419/

6
Environmental Justice

07 LC 25 4926ER

Senate Resolution 598

Senator Thomas of the 2 nd

" WHEREAS, four counties within 40 miles of Plant Vogtle have areas that are

persistently distressed and suffer from unemployment or poverty; and.

* WHEREAS, radiological monitoring programs reveal that Savannah River fish,

particularly resident game fish species, are contaminated with cesium 137. Large

mouth bass are contaminated with cesium 137 and are a target species of

subsistence fishermen on the Savannah River. Recreationally important fish species

in the vicinity of Plant Vogtle routinely have been found to have detectable levels of .cesium 137 in the edible flesh of collected samples; and

" WHEREAS, African American and low-income individuals are at specific heightened risk from hazardous materials in the Savannah River, and although individuals from

all socioeconomic backgrounds engage in fishing in the area, African Americans in

particular commonly engage in subsistence fishing along the Savannah River and

have a higher than average consumption of fish, frequently surpassing allowable

contaminated fish consumption levels.

7
ýU

UNITED STATES NUCLEAR REGULATORY COMMISSION

Protecting People and the Environment

New Reactor Inspection

Program

Luis Reyes

Executive Director for Operations

October 24, 2007
Recent Accomplishments

" Rules published: Part 52, Limited

Work Authorization Rule, Aircraft

Impact Assessments (proposed)•

" COL applications submitted

* Safeguards protection orders

issued

" Public outreach meetings held

" Technical support contracts

awarded

2
Staffing

* 386 on board, 40 anticipated

gains by January 2008. FY08 goal

is 485

* Status of office consolidation:

- 256 staff in TWFN 6th/7 th floors

- 113 staff on OWFN 7th floor

- 12 staff OWFN 4th floor

- Of these, 47 in conference rooms

3
New Reactor Licensing Applications (Site and Technology Selected)

An estimated schedule by Fiscal Year

2005 2006 2007

I 2008 2009 1 2010 1 2011 2012 2013 2014 1

APIOOO Fýrogram Roview I 3D Amenmen

I Design

Hearini~ "6W*EU OZAK*J

Due

l _i ýU•I•!iI i iI

* Schedules depicted for

future activities represent

nominal assumed review

durations based on submittal

time frames in letters of intent

from prospective applicants.

Actual schedules will be

determined when applications

are docketed.

I-earinan::

il -,• ES.P Hearinai>

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Legend: ESBWR FIrogram Ri Mvew

M. Hear fiaio - - In

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during ESPIC

ivironmental

er in ( ) next t4

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lost SER/EIS

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DL safety

eviews)

COL name

,nits/site.

EPR Program Review

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ABWR PtLogram Review

KI I -.ý L _, M _ - in •E'd•41 In RE I / 9/13/07 -- - - -- --- ~ /

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USAPWR Program Review DC~~ - isbsiUAW 4
Objectives

" Ensure that plants are constructed

in accordance with approved

designs and safety regulations

" Determine operational readiness

* Communicate results to all

stakeholders

" Ensure effective transition to

Reactor Oversight Program

5
Early

component

procurement

Construction

start

per LWA

Combined

License

Issuance

Fuel

load

Pre-Combined License I Construction under Combined License I Start-UD

Oversight of Vendor Activities - IMC 2507
Completed Milestones

* Pre-COL/DC audit program

developed and six audits

completed

" Enhanced vendor inspection

program established and six

inspections conducted

* ITAAC sampling methodology

endorsed by ACRS

7
Completed Milestones

(continued)

* Key international relationships

established

* Construction experience program

developed

8
Current Areas of Focus

• Quality Assurance

* Vendor Oversight

* Program Development

9
Pre-Application Audits

Support agency's acceptance

review by:

-Verifying acceptability of an

applicant's QA program used in

the development of a, COL/DC

application

-Assessing the completeness of

a proposed COL/DC application

10
Oversight of First-of-a-Kind

Engineering

o NRC review necessary to finalize

design and develop procurement

and construction documents

* Inspection results will:

-Inform the ITAAC closure

verification process

-Verify that design acceptance

criteria have been appropriately

implemented in the design

11
O

Vendor Inspection Program

Enhancements

* Built upon existing vendor

inspection program and coordinated

with NRR

* Increase inspection frequency and

scope

-Verify QA program implementation

-Detect -possible fraudulent parts or

materials

12
Vendor Inspection Program

Enhancements

(continued)

* Support ITAAC closure

verification

* Expand international cooperation

in vendor oversight

* Clarify oversight and improve

interface with third party industry

audits

13
Ongoing ITAAC Activities

* ITAAC closure letter templates

and verification process

SITAAC inspection and closure

resource requirements

* New Reactor Inspection Program

IT Infrastructure

14
8

Construction Assessment

Process Guiding Principles

* Well defined

" Designed for a construction

environment

* Timely communication and

resolution of identified issues

* Transparency, predictability,

scrutability

" Public availability of inspection

information

15
Construction Assessment

Process Future Work

* Define criteria and process for

assessing the effectiveness of

licensee's corrective action

program

* Define thresholds for agency

response

* Define periodicity and content of

agency assessments

16
Construction Assessment

Process Future Work

(continued)

* Clarify- aspects of the allegation

program, including applicability of

NRC process and scope of

employee protection

* Integrate enforcement policy with

assessment process

17
Construction and Operational

Experience Program

* Program Goals:.

- Use construction experience

gained from both international

and domestic projects for NRC

reviews and inspections

- Provide insights to stakeholders

18
I 1 -1

Construction and Operational

Experience Program

(continued)

• Element of existing agency OpE

program

* Near-term activities include

guidance development, training,

and agreements sharing

construction experience

19
. I I eb

External Stakeholder Interaction

* Numerous public meetings and

workshops held in FY07

" New reactor inspection program

briefings at all NRO public

outreach activities

" Visits to proposed new reactor

sites and module fabricators

" Current information on public web

site

20
C .1

International Bilateral Cooperation

* Interaction with counterparts in

several areas, including.

- Multi-national vendor

inspections with Korean and

French regulators

-Sharing information with United

Kingdom regarding ESBWR and

APIO00

21
International Bilateral Cooperation

(continued)

- Discussions with Japan

regarding foreign vendor

oversight

-Sharing construction and

vendor experience with Finland

(STUK)

-NRC inspector rotation at STUK

and Olkiluoto 3

22
Conclusions

* The staff is effectively conducting

pre-application audit activities and vendor inspections,

supporting application reviews,.

coordinating with international

partners, and carrying out

construction inspection program

development activities

23
Conclusions

(continued)

* Project plans for the development

of key program areas, such as

assessment and ITAAC closure

include opportunity for

stakeholder involvement

• Timely stakeholder support for

and involvement in program

development is necessary for

success

24
Acronyms

ACRS: Advisory Committee on

Reactor Safeguards

COL: Combined License

DC: Design Certification

DOE: US Department of Energy

ESBWR: Economic Simplified

Boiling Water. Reactor

ESP: Early Site Permit

.IMC: Inspection Manual Chapter

IT: Information Technology

25
Acronyms (continued)

ITAAC: Inspections, Tests,

Analyses, and Acceptance

Criteria

LWA: Limited Work Authorization

NRO: Office of New Reactors

NRR: Office of Nuclear Reactor

Regulation

OpE: Operating Experience

QA: Quality Assurance

STUK: Radiation and Nuclear

Safety Authority (Finland)

26