[Federal Register Volume 65, Number 170 (Thursday, August 31, 2000)]
[Notices]
[Pages 53050-53058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22496]


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NUCLEAR REGULATORY COMMISSION


Proposed Guidelines for Including Industry Initiatives in the 
Regulatory Process

AGENCY: Nuclear Regulatory Commission.

ACTION: Notice of opportunity for public comment.

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SUMMARY: The NRC staff has developed proposed guidelines to ensure that 
future industry initiatives would be treated and evaluated in a 
consistent and predictable manner. The proposed guidelines would allow 
industry initiatives to play an important role in achieving the NRC's 
regulatory goals of maintaining safety, reducing unnecessary regulatory 
burden, improving efficiency, effectiveness, and realism, and improving 
public confidence. The NRC staff is soliciting stakeholder comments 
from interested parties related to the proposed guidelines for 
including industry initiatives involving nuclear power reactor 
licensees in the regulatory process.

DATES: Comment period expires October 16, 2000. Comments submitted 
after this date will be considered if it is practical to do so, but 
assurance of consideration cannot be given except for comments received 
on or before this date.

ADDRESSEES: Submit written comments to Chief, Rules and Directives 
Branch, Division of Administrative Services, U.S. Nuclear Regulatory 
Commission, Mail Stop T6-D69, Washington, DC 20555-0001. Written 
Comments may also be delivered to 11545 Rockville Pike, Rockville, 
Maryland, from 7:45 am to 4:15 pm, Federal workdays. Copies of written 
comments received may be examined at the NRC Public Document Room, 2120 
L Street, NW. (Lower Level), Washington, DC.

FOR FURTHER INFORMATION CONTACT: Jack Foster or Eric Benner, Division 
of Regulatory Improvements Programs, Office of Nuclear Reactor 
Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001. Telephone: 301-415-3647 or 301-415-1171. email [email protected] or 
[email protected]

SUPPLEMENTARY INFORMATION:

Background

    The Nuclear Regulatory Commission (NRC), by a staff requirements 
memorandum (SRM) dated June 28, 2000, approved issuing for public 
comment proposed guidelines for including industry initiatives in the 
regulatory process, as described in SECY-00-0116, ``Industry 
Initiatives in the Regulatory Process,'' dated May 30, 2000.
    The NRC staff has met with stakeholders on several occasions (i.e., 
on October 27, 1999, in Rosemont, Illinois; on December 21, 1999, and 
February 17, 2000, in Rockville, Maryland; and, on March 28, 2000, in

[[Page 53051]]

Washington, DC during an industry initiatives break-out session at the 
NRC's Twelfth Annual Regulatory Information Conference) to solicit from 
stakeholders information and individual views regarding the development 
of a process to include industry initiatives in the regulatory process. 
The staff also issued a Federal Register notice (FRN) on December 13, 
1999 (64 FR 69574) soliciting additional stakeholder comments on both 
the technical and regulatory aspects relating to the development of 
guidelines to allow the drafting of a regulatory framework that 
supports the implementation of industry initiatives, by January 15, 
2000. This date was chosen to give the staff sufficient time to 
incorporate stakeholder comments into the proposed guidelines. No 
comments were received in response to the FRN. The meeting summaries 
are available through ADAMS and on the NRC's web page at http://www.nrc.gov/NRC/REACTOR/VII/index.html which has electronic copies of 
all relevant background material such as meeting notices, summaries, 
and transcripts; letters to and from the industry; and milestones for 
implementing the subject activity.
    The staff has been advocating the use of industry initiatives for 
several years, and the industry has responded favorably by forming 
specialized working groups to address specific technical issues of 
interest. To date, methods for interaction between the staff and these 
industry working groups have developed in an ad hoc manner and have 
generally been quite successful. However, if these interactions are to 
become an integral part of the regulatory process, the Commission has 
determined that developing and implementing guidelines for industry 
initiatives is appropriate.

Proposed Guidelines for Including Industry Initiatives in the 
Regulatory Process

    The staff has developed the following proposed guidelines for 
including industry initiatives involving nuclear power reactor 
licensees in the regulatory process. These proposed guidelines are 
intended to ensure that future industry initiatives proposed by 
applicable industry groups (AIGs) would be treated and evaluated in a 
consistent and controlled manner that is visible and open to all 
stakeholders. An AIG could be the members of one or more Owners Groups, 
an industry organization such as the Nuclear Energy Institute (NEI) or 
the Electric Power Research Institute (EPRI), or two or more licensees. 
If multiple AIGs individually submit separate initiatives regarding the 
same issue, all industry initiatives will be addressed pursuant to 
these guidelines. The nature of issues that may be addressed through 
industry initiatives are very broad. Therefore, it is intended that the 
following guidelines provide flexibility in allowing the staff, AIGs, 
and other stakeholders to interact in pursuing industry initiatives. 
However, these guidelines provide the staff with a structured framework 
for processing issues from their identification through implementation 
to resolution. It is intended that, by promoting a consistent, 
controlled and visible process, these guidelines will assure that 
safety is maintained while providing for efficient and effective use of 
resources, reduced unnecessary regulatory burden and enhanced public 
confidence.
    In addition, it is important to note that these guidelines 
reference other existing NRC policies and procedures (e.g., generic 
communications, SECY-99-143; commitment tracking, SECY-00-0045; 
inspection/oversight, SECY-00-0049; enforcement policy, SECY-00-0061 
and SECY-99-219; commitment policy, SECY-98-224; and, fees policy, 10 
CFR Parts 170 and 171, among others). It is not the intent of these 
guidelines to create any new policies or procedures in those areas. The 
most recent version of the applicable NRC policies and procedures 
should be utilized when implementing these guidelines.

Description and Examples of Industry Initiatives Process

    The following describes the actions associated with each numbered 
step indicated in the ``Industry Initiatives Process'' flowchart, 
below. For the purpose of these guidelines, there are two types of 
industry initiatives, Type 1 and Type 2. Type 1 industry initiatives 
are further subdivided into two parts. Industry initiatives are defined 
as:
    Type 1: Initiatives developed by AIGs in response to some issue of 
potential regulatory concern (a) to substitute for or complement 
regulatory actions for issues within existing regulatory requirements, 
or (b) which are potential cost beneficial safety enhancement issues 
outside existing regulatory requirements;
    Type 2: Initiatives developed by AIGs to address issues of concern 
to the applicable industry group but that are outside existing 
regulatory requirements and are not cost beneficial safety 
enhancements, or that are used as an information gathering mechanism.

Type 1 Industry Initiative Examples

    A Type 1a example of an existing program that compliments existing 
regulatory requirements via an industry initiative is the Boiling Water 
Reactor Vessel and Internals Project (BWRVIP). This program, in which 
all U.S. BWR licensees participate, was instituted in 1994 to address 
the potential consequences of intergranular stress corrosion cracking 
(IGSCC) in the BWR core shroud. It subsequently expanded in scope to 
address all BWR austenitic stainless steel and Alloy 600 safety-related 
components, the reactor vessel, and safety-related piping. This 
industry-led program developed approximately 50 generic industry 
guidelines for inspection scope and frequency, flaw evaluation, and 
mitigation and repair. All BWR owners committed to adhere to the 
program or inform the staff of any plant-specific deviations. Further, 
since the BWRVIP representatives agreed which components are safety-
related, actions taken to inspect, evaluate, and repair these 
components are covered by the individual licensee's 10 CFR Part 50, 
Appendix B, quality assurance (QA) program.
    A second Type 1a industry initiative example is the framework for 
managing steam generator (SG) tube integrity associated with NEI-97-06, 
``Steam Generator Program Guidelines.'' This industry initiative will 
involve license amendments by all pressurized water reactor (PWR) 
licensees to change from deterministic to performance-based technical 
specifications. In response to the staff's ongoing regulatory 
development effort, the PWR industry focused its efforts on improving 
existing SG inspection guidance and developing additional guidelines on 
other programmatic elements related to SG tube integrity. The 
industry's efforts to improve industry guidance culminated in the NEI 
97-06 industry initiative, developed through the NEI Nuclear Strategic 
Issues Advisory Committee, which establishes a framework for 
structuring and strengthening existing SG programs. This industry 
initiative discusses regulatory interfaces, licensee responsibilities, 
and a protocol for revising referenced guidelines. It also defines the 
performance criteria that licensees shall use to measure tube 
integrity. It should be noted that the final staff review of NEI-97-06 
is still in progress.
    An example of a Type 1b industry initiative is the NEI guidelines 
that have been provided to licensees to address shutdown risks. This 
risk-significant issue is not explicitly required by existing 
regulations. The staff, using an

[[Page 53052]]

older version of NUREG/BR-0058 which did not allow any credit for 
industry initiatives, found this issue to be valid for backfitting as a 
safety enhancement pursuant to 10 CFR 50.109. The rulemaking was 
discontinued since the Commission concluded that existing industry 
practices provide an adequate level of safety. The Commission also 
directed that NUREG/BR-0058 be updated to permit appropriate credit for 
industry initiatives. No enforcement would presently be appropriate.

Type 2 Industry Initiative Examples

    A Type 2 industry initiative addresses issues that are not related 
to a regulatory requirement and do not address a safety concern (e.g., 
productivity, balance of plant system performance, or resource 
management). An example is site access authorization, in which industry 
representatives determined that a common approach would be beneficial. 
In this case, the staff and stakeholders participants agreed that a 
commitment to the NRC regarding the industry initiative was 
unnecessary, and inspections and enforcement are not applicable.
    A second example of a Type 2 industry initiative is one developed 
for information gathering purposes. In some cases, it may be necessary 
to collect additional information to better understand the significance 
of an emerging issue and how to address it in an efficient and 
effective manner. In this case, the information that is collected would 
be included in the industry initiative action plan. Alternately, any 
NRC activities to collect information would be conducted in accordance 
with the guidance provided in SECY-99-143, ``Revisions to Generic 
Communication Program,'' and the applicable rules and regulations 
referenced therein.

Box 1--Issue Identification

    There are many ways that an emerging issue, potentially suitable 
for being addressed via an industry initiative, may be identified. 
These include the NRC staff being informed by the AIGs, the public, 
another government entity (domestic or foreign), through the staff's 
own investigations (e.g., inspection, event assessment, or research 
studies), or other means. It is intended that a broad range of 
information sources be considered in identifying issues of concern.
    However, it is important to note that some issues may fall into 
other NRC processes (e.g., allegations or petitions submitted pursuant 
to 10 CFR 2.206), and care should be taken to make sure that such 
issues are properly characterized and assigned to the appropriate 
process for dispositioning. Issues arising from allegations or 
petitions may be resolved in the longer term by use of an industry 
initiative, but are not initially considered to be candidates for an 
industry initiative.
    Emerging issues should be documented and the staff's preliminary 
evaluation of the technical and policy implications presented to the 
Office of Nuclear Reactor Regulation's (NRR) Executive Team (ET) for 
review and initial dispositioning (see Box 2, below). The staff's 
preliminary evaluation of the technical and policy implications of the 
emerging issue would include consideration of:
    (a) Whether or not the issue is an adequate protection issue,
    (b) Whether or not there is an immediate safety concern,
    (c) Which plants (types or specific plants) could the issue 
potentially involve,
    (d) The likelihood that AIGs would pursue resolution through an 
industry initiative,
    (e) If AIGs decide that the issue is appropriate for resolution 
through an industry initiative, should the resolution be handled 
through a Type 1 or Type 2 industry initiative,
    (f) If an industry initiative is not pursued, what other regulatory 
process would be appropriate,
    (g) Types of staff work that would be involved in resolving the 
issue (e.g., prior review and approval, monitoring, inspection, etc.),
    (h) Estimate of staff resources required for industry initiative 
and other options,
    (i) Whether or not a backfit potential is involved,
    (j) Whether or not the issue involves an allegation or petition 
submitted pursuant to 10 CFR 2.206,
    (k) Assessment against the outcome goals,
    (l) Plans for stakeholder involvement,
    (m) Options for how the plants could resolve the issue,
    (n) Need for periodic reports to monitor licensee implementation of 
industry initiative, and
    (o) Need for Commission notification and followup.
    Other factors of consideration would be included, as appropriate. 
Similarly, factors that industry or other stakeholders identify should 
be documented (e.g., letter to the Director of NRR), then reviewed as 
above.
    In developing an emerging issue, it may be appropriate to hold 
public meetings and/or workshops to obtain additional information and 
individual views regarding the issue from appropriate stakeholders. 
However, meetings and/or workshops held during this phase of the 
process should be primarily for the purpose of understanding the issue 
in order to facilitate the rest of the process presented in these 
guidelines, and should not involve significant commitments of staff 
resources.
    The public should be notified of the issue, either by press 
release, generic communication, weekly highlight, or other appropriate 
media. At a minimum, any meetings and/or workshops should be noticed in 
a timely manner and open to the public to allow public participation 
(see Public Participation, below).

Box 2--NRR ET Approval To Pursue Issue

    The staff's initial evaluation of the issue is reviewed by the NRR 
ET to ensure that the emerging issue is of sufficient importance either 
to meet with the AIGs and other stakeholders to present the NRC staff's 
views on the appropriateness of addressing an emerging issue as an 
industry initiative, or to immediately pursue regulatory action, if 
justified (see Box 4, below). The staff''s evaluation, as presented to 
the NRR ET, should include, to the extent possible:
    (1) Identification of applicable regulatory requirements (e.g., 
regulations, technical specifications, design bases, commitments),
    (2) Safety significance from both a deterministic and probabilistic 
risk assessment perspectives,
    (3) Limitations in the amount of information available or ability 
to characterize the issue,
    (4) An assessment of the impact of the industry initiatives on 
other NRC organizations and a discussion of how those organizations 
will be involved in the further evaluation of the industry initiative, 
and
    (5) Staff recommendations.
    It is recognized that, in the early stages of issue development, 
additional information may be necessary to fully characterize or 
quantify the issue and that information presented at this stage may be 
somewhat preliminary and qualitative in nature. The NRR ET will render 
a decision on whether to: (1) Not pursue the issue (see Box 3, below), 
(2) pursue the issue on an expedited basis (see Box 4, below) or, (3) 
pursue the issue via an industry initiative.
    Consistent with the definitions provided in SECY-99-063, ``The Use 
by Industry of Voluntary Initiatives in the Regulatory Process,'' SECY-
99-143, ``Revisions to Generic Communication Program,'' and these 
guidelines, many issues can be addressed through an

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industry initiative. However, those issues that involve matters of 
adequate protection shall not be addressed via the process provided in 
these guidelines.

Box 3--Not Pursue Issue

    The NRR ET may decide that the issue does not need to be pursued. 
This decision would consider both the safety significance and the 
existing regulatory bases, and should be documented in a memorandum 
from the sponsoring organization (e.g., division) to the Director, NRR. 
If the issue is one identified by an AIG or other stakeholder, the AIGs 
and other interested stakeholders should be informed in writing of the 
decision and its bases.
    The NRR decision to not pursue an issue at this time would not 
preclude the AIGs or individual licensees from pursuing an issue 
through other avenues.

Box 4--Pursue Issue Resolution on an Expedited Basis

    Some issues may need to be handled in a more expeditious manner 
than is possible by an industry initiative. Some considerations that 
may be taken into account when determining the urgency of an issue may 
include the level of risk involved and the need for prompt corrective 
action. In the event that the NRR ET determines that the issue requires 
expedited action, approaches could be taken that include activation of 
the appropriate Owners Group's Regulatory Response Group (RRG), 
issuance of orders, or issuance of a bulletin, as described in SECY-99-
143. The staff may defer formal regulatory actions while the 
appropriate Owners Group's RRG is activated to address the issue. The 
AIGs, stakeholders and the public are kept informed through public 
meetings or other appropriate media, as described in the Communications 
Plan, below.

Box 5--Establish Industry Initiative

    If an expedited resolution is unnecessary and the NRR ET determines 
to pursue the issue through an industry initiative, a letter would be 
sent from the NRR Director to the identified AIGs and other interested 
stakeholders. These letters will include a description of the issue, 
provide appropriate references and background information, identify the 
NRC contact for the issue (see Project Management, below), and propose 
that an initial public meeting or workshop be scheduled to share 
information on the issue. The AIGs would be invited to evaluate the 
issue and to develop a proposal for addressing the issue, which would 
be presented to the staff and other stakeholders at the proposed 
initial public meeting/workshop. Stakeholders would be invited to 
provide individual views regarding the issue and any proposed actions. 
The staff will need to evaluate the AIG's proposal, and any 
stakeholders comments or proposals, before any further meetings and/or 
workshops on the issue are held.
    The public would be informed of meetings and/or workshops held on 
this issue, and would be encouraged to attend and/or provide input (see 
Public Participation, below).
    Since many different approaches may be used to resolve the issue, 
multiple meetings and/or workshops may be needed at this point in the 
process in order to exchange information, present proposals from the 
stakeholders, and to receive individual views on the possible options 
for resolution of the issue. These interactions would include the NRC, 
AIGs and other stakeholders. The objectives are to better understand 
the issue, and to establish an industry initiative action plan with 
tasks, milestones, resources required, and responsible parties, to be 
utilized by the AIGs in pursuing issue resolution. The AIGs industry 
initiative action plan should provide the basis for pursuing the issue 
as an industry initiative, and the need, as appropriate, for licensee 
commitments to the industry initiative. The staff should establish its 
own industry initiative action task plan. An industry initiative 
communications plan should also be developed by the staff. Schedules 
should be established consistent with the significance of the issue.
    In some cases, it may be necessary to collect additional 
information to better understand the significance of an emerging issue 
and how to address it in an efficient and effective manner. Information 
needs could be addressed in the industry initiative action and 
communication plans, or may require some affirmative action on the part 
of NRC. Any NRC activities to collect information would be conducted in 
accordance with the guidance provided in SECY-99-143 and the applicable 
rules and regulations referenced therein. Any voluntary information 
collections are subject to Paperwork Reduction Act considerations and 
will be coordinated with the Offices of the Chief Information Officer 
(OCIO) and the General Counsel (OGC).
    Possible approaches to resolving the issue could include actions 
such as development and implementation of an industry program, 
voluntary license amendments, revision of industry guideline documents, 
modifications to codes and standards, or creation of a Generic Safety 
Issue (GSI). In general, the intent would be to accomplish the issue 
resolution in the most efficient and effective manner.

Box 6--Regulatory Acceptance of the Proposed Industry Initiative

    The NRC staff should consider the proposed industry initiative 
action and communications plans developed in Box 5 as part of the 
Planning, Budgeting and Performance Management (PBPM) ``add/shed'' 
budgeting process. The review should consider the background of the 
issue and the details of the industry initiative action and 
communications plans that have been developed, including the proposed 
actions, milestones, resources and responsible parties. The review 
should address how the industry initiative action and communications 
plans supports the NRC's goals of maintaining safety, reducing 
unnecessary burden, improving public confidence, and enhancing 
efficiency and effectiveness, and should be documented.
    If the industry initiative action and communications plans 
developed in Box 5 are found acceptable by the NRR ET, implementation 
of the industry initiative action and communications plans will proceed 
as described in Boxes 8 and 9.
    If the industry initiative action and/or communications plans 
developed in Box 5 are found unacceptable, the issues leading to 
rejection of the industry initiative action and/or communications plans 
should be publically communicated to the AIGs and other stakeholders. 
If an acceptably revised industry initiative action and/or 
communications plans cannot be developed, the NRC will consider the 
need for further regulatory action (see Box 7, below).
    The staff's acceptance or rejection of a proposed industry 
initiative will be published in the Federal Register and placed on the 
NRC's web page, and the Commission will be informed through appropriate 
means.

Box 7--Determine Appropriate Regulatory Action

    If the staff does not accept the AIG's proposed actions to be 
taken, an individual licensee in the AIG does not commit to the 
industry initiative, or if AIG member licensees fail to implement the 
committed-to actions, the NRC staff may independently take action. 
After having determined that the Type 1 industry initiative issue 
involves either a needed safety enhancement and/or compliance with 
existing Rules and/or

[[Page 53054]]

regulations, the staff should take regulatory actions (e.g., rule-
making, issuing appropriate generic communications, orders, etc.) to 
appropriately address this issue, as needed. Any regulatory actions 
taken would be determined consistent with existing Regulations and NRC 
policy and procedures. For items requiring a backfit analysis per 10 
CFR 50.109, crediting of the industry initiative would follow the 
position in NUREG/BR-0058, Revision 3, ``Regulatory Analysis Guidelines 
of the U.S. Nuclear Regulatory Commission,'' or the latest applicable 
guidance. The public should be kept informed, through public meetings 
or other appropriate media, while the staff develops these regulatory 
actions.

Box 8--Implementation of Industry Initiative

    Once approved, the industry initiative action and communications 
plans developed in Box 6 should be implemented by the AIGs and 
monitored by the staff. The milestones in the AIG's industry initiative 
action plan should be documented in the staff's task action plan, 
tracked in the NRR Director's Quarterly Status Report (DQSR), and 
incorporated into the NRR Operating Plan, as appropriate. The industry 
initiative action plan milestones would be monitored via periodic 
reviews and through periodic public meetings with the AIGs and other 
stakeholders. NRC acceptance of the industry initiative and associated 
action and communications plans would be documented in a Federal 
Register notice and a Regulatory Issue Summary (RIS), in accordance 
with SECY-99-143 (see Communications Plan, below). The public would be 
kept informed of the progress in completing the industry initiative 
action plan as outlined in the industry initiative communications plan, 
and would be encouraged to provide input (see Public Participation, 
below).

Box 9--Inspection and/or Monitoring and Enforcement

    Resolution of Type 1a industry initiative issues may require that 
AIG member licensees implement changes in their programs, technical 
specifications, or take other actions as established in the industry 
initiative plan. Inspection and/or monitoring of implementation of 
these activities would depend on the nature of the activities the AIGs 
implement to address the issue. Enforcement would be available if 
violations of regulatory requirements occur.
    Resolution of Type 1b industry initiative issues would involve NRC 
re-assessment of the issue, and of the efficacy of an industry 
initiative to address the issue. Inspection and/or monitoring of 
implementation of these activities would depend on the nature of the 
activities the AIGs implement to address the issue. Enforcement would 
be available if violations of regulatory requirements occur.
    Type 2 industry initiatives involve industry actions outside 
existing regulatory requirements that are not cost beneficial safety 
enhancements, or that are used as an information gathering mechanism, 
and the need for NRC overview is not anticipated, and enforcement 
action will not be available.
    The need for inspection and/or monitoring should be determined 
consistent with the NRC's Reactor Oversight Process, as described in 
Inspection Manual Chapter 2515. An inspection and/or monitoring plan 
will be established on a case-by-case basis, consistent with the 
requirements associated with implementation of the issue and the 
revised risk-informed NRC inspection program, as described in the NRC's 
Inspection Manual 2515. The inspection and/or monitoring plan would 
include a decision making process on whether to alter the baseline 
inspection program or develop a temporary instruction (TI) that will 
look at risk significance, resources, cornerstone attributes, 
performance indicator (PI) implications, etc., in determining whether 
additional inspections are needed. Special inspections or monitoring of 
the progress may not be necessary, and in most cases it is expected 
that it will not be, based on the nature of the actions taken. For 
example, it is expected that many licensee activities will already be 
adequately covered by the existing inspection and oversight program. 
Inspections may be performed either by resident or regional inspectors 
or special teams to determine if regulatory requirements are met. 
Monitoring may be performed by either inspectors or NRR project 
managers (PMs), wherein they would determine that licensees have taken 
actions committed to be performed as part of the industry initiative. 
Documentation of inspections or monitoring activities should be in 
accordance with the NRC Inspection Manual.
    If a specific licensee, or the industry group in general, fails to 
adequately implement the agreed upon actions, this would be addressed 
by NRC in the context of existing enforcement policy and/or additional 
regulatory action consistent with the guidance above. Additional 
discussion on enforcement is found below in the section ``Enforcement 
Guidelines Consistent with Reactor Oversight Process Improvements.''

Other Items

Project Management

    Once it has been decided to pursue resolution of an issue via an 
industry initiative, a lead project manager (LPM) from either NRR's 
Division of Licensing Project Management (DLPM) or Division of 
Regulatory Improvement Programs (DRIP), as appropriate, should be 
appointed. The LPM will be responsible for: (1) Facilitating staff 
review of the industry initiative, (2) assuring that activities 
described above are accomplished, and (3) acting as the staff's point 
of contact between the AIGs, other stakeholders, and other interested 
members of the public.
    A lead technical reviewer (LTR) will also be assigned, from either 
the Division of Engineering (DE), Division of Systems Safety and 
Analysis (DSSA), Division of Inspection Programs Management (DIPM), or 
DRIP, as appropriate. The LTR will be responsible for coordinating the 
technical review of the industry initiative.

Public Participation

    Ensuring that all stakeholders have an opportunity to participate 
is essential. As such, the industry initiative communications plan (see 
below) should be developed to ensure that stakeholders will be notified 
of the issue, either by press release, generic communication, or other 
appropriate media. The stakeholders will be given an opportunity to 
provide their individual views on the industry initiative action plan, 
and to participate in all NRC-sponsored meetings and/or workshops on 
the industry initiative. At a minimum, any meetings and/or workshops 
would be noticed on the NRC's web pages in a timely manner and open to 
the public to allow public participation. The industry initiative LPM 
will be responsible for encouraging interested stakeholders to 
participate in the process for consideration of the industry 
initiative, exchanging relevant information with the staff and the AIGs 
while the industry initiative action and communications plans are being 
developed, and then implemented.
    The staff will disclose to the public all information supplied by 
or obtained from industry, subject to relevant Freedom of Information 
Act (FOIA) and Privacy Act exceptions, in support of

[[Page 53055]]

the industry initiative. The NRC will also disclose all information 
supplied by or obtained from industry (subject to relevant FOIA/Privacy 
Act exceptions) that it uses to assess (1) the quality of 
implementation of the industry initiative by licensees and (2) the 
effectiveness of the industry initiative in resolving the underlying 
issues. This disclosure typically will be through the public docketing 
process.

Communications Plan

    A communications plan will be developed by the NRC staff for each 
issue that is being addressed by an industry initiative. The objective 
of this industry initiative communications plan is to make the industry 
initiative visible to all stakeholders and to allow easy access to 
relevant information. Guidance to the staff in this communication plan 
would include the use of the ADAMS system and an NRC industry 
initiative web page, that includes:
    (1) A summary of the issue;
    (2) Meeting announcements and summaries and/or transcripts;
    (3) Non-proprietary versions of submitted reports and staff 
evaluations;
    (4) Action plans;
    (5) Generic communications (e.g., regulatory issues summaries);
    (6) Periodic status reports, press releases, weekly highlights, 
and/or, other appropriate media, issued in a timely manner to 
facilitate public participation in the regulatory process; and,
    (7) A final resolution summary.
    Primary responsibility for implementation of the communications 
plan will be that of the assigned LPM. The NRC industry initiative web 
page will be maintained by the assigned LPM.

Resource Planning, Including Semi-Annual Meetings to Identify Potential 
Industry Initiatives

    To effectively and efficiently delineate expected resource needs 
and expenditures for industry initiatives, the staff should publicly 
meet on a regular basis (approximately twice annually) with industry 
groups and other stakeholders to obtain information on the status of 
ongoing and potential future industry initiatives. This could be an 
additional agenda item on pre-existing public meetings with industry 
groups and representatives, and will be noticed accordingly. Additional 
noticed public meetings could be needed to address emerging or 
unanticipated issues. The purpose of these regularly scheduled public 
meetings is to provide the NRC staff with information that will support 
budgeting and resource planning, and any required staff resource 
reallocations. The LPM would have primary responsibility for 
scheduling, conducting, and documenting these meetings. NRC should 
address its resource needs using the ``add/shed'' process as part of 
the PBPM process in order to prioritize resource expenditures.

Fees

    The agency's fee process, in accordance with 10 CFR Part 170, 
``Fees for Facilities, Materials, Import and Export Licenses, and Other 
Regulatory Services under the Atomic Energy Act of 1954, as Amended,'' 
allows for the exempting of fees for reviews under Sec. 170.11(a)(12), 
Exemptions. Specifically, this paragraph states that:

    No application fees, license fees, renewal fees, or inspection 
fees shall be required for: A performance assessment or evaluation 
for which the licensee volunteers at the NRC's request and which is 
selected by the NRC.

    There would be no licensee-specific charges associated with the 
generic staff review of an industry initiative.

Tracking of Commitments Consistent with Existing Regulatory Processes

    Tracking of licensee commitments made in accordance with the 
industry initiative action plan, if any, will be handled by the 
individual licensee's NRR PM and the industry initiative LPM in 
accordance with SECY-00-0045. The NEI guidelines, referenced therein, 
provide recommended actions for licensees' management, implementation 
and documentation of commitments (Sections 2, 3, 4 and 5). The 
guidelines were found acceptable by the staff. Related correspondence 
would be made publicly available, as appropriate.

Enforcement Guidelines Consistent with Reactor Oversight Process 
Improvements

    Licensee activities implemented as the result of an industry 
initiative may or may not be enforceable, depending upon the nature of 
the issue being addressed. Licensee actions resulting from an industry 
initiative that are necessary to maintain compliance with an existing 
regulatory requirement would be enforceable. If an industry initiative 
program addresses issues outside current regulatory requirements, or is 
for information gathering, it is not enforceable. If it is determined 
that licensees are not implementing the industry initiative products as 
they have committed to, appropriate enforcement actions, if any, 
consistent with the guidance described below, will be taken by the 
staff, when appropriate.

 Proposed Enforcement Guidelines for Licensees for Industry Initiatives*
------------------------------------------------------------------------
 Type of industry initiative     Industry action    Enforcement guidance
------------------------------------------------------------------------
1.a. Industry initiatives to  AIGs develop and      If licensee does not
 address issues that           implement program,    implement the
 substitute for or             with associated       activities
 complement regulatory         licensee              resulting from the
 actions for issues within     commitments, that     industry
 existing regulatory           is included in        initiative, and its
 requirements (e.g., BWRVIP,   appropriate           actions are not
 NEI SG Guidelines).           documents (e.g.,      consistent with
                               technical             applicable
                               specifications,       regulatory
                               updated final         requirements, if
                               safety analysis       any, enforcement is
                               report, and/or        available. The
                               plant procedures),    severity of the
                               and controlled by     violations would be
                               applicable            established
                               regulatory            consistent with
                               requirements (e.g.,   revised reactor
                               10 CFR Part 50,       oversight process
                               Appendix B program,   and the enforcement
                               10 CFR 50.59, or      policy.
                               Section 182 of the
                               Atomic Energy Act),
                               if any.

[[Page 53056]]

 
1.b. Industry initiatives to  AIGs develop and      Commitment to
 address potential cost        implement program,    industry initiative
 beneficial safety             with associated       by licensee is only
 enhancement issues outside    licensee              link to NRC.
 existing regulatory           commitments.          Deviation or re-
 requirements (e.g.,                                 direction from
 shutdown risks, severe                              committed program
 accident management).                               would cause NRC re-
                                                     assessment of
                                                     issue, and of the
                                                     efficacy of an
                                                     industry initiative
                                                     to address the
                                                     issue. Orders or
                                                     rule-making are
                                                     available as an
                                                     option if 10 CFR
                                                     50.109 criteria for
                                                     backfitting as a
                                                     safety enhancement
                                                     are satisfied; if
                                                     reasonable
                                                     assurance criteria
                                                     are undermined,
                                                     there is no need to
                                                     further satisfy
                                                     backfit criteria.
                                                     Credit for industry
                                                     initiative would be
                                                     considered in a
                                                     backfit analysis,
                                                     consistent with
                                                     Commission guidance
                                                     to SECY-99-178,
                                                     ``Treatment of
                                                     Voluntary
                                                     Initiatives in
                                                     Regulatory
                                                     Analysis,'' dated
                                                     May 21, 1999.
2. Industry initiatives for   AIGs develop and      No NRC overview or
 issues that are outside of    implement program.    enforcement
 regulatory requirements,                            expected to be
 not cost beneficial safety                          needed on program.*
 enhancements, or that are
 used as an information
 gathering mechanism.
------------------------------------------------------------------------
* Issues that involve adequate protection are outside the scope of
  industry initiatives.


7590-01-P

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[GRAPHIC] [TIFF OMITTED] TN31AU00.010



[[Page 53058]]


    Dated at Rockville, Maryland this 16th day of August, 2000.

For the Nuclear Regulatory Commission.
David B. Matthews,
Director, Division of Regulatory Improvement Programs, Office of 
Nuclear Reactor Regulation.
[FR Doc. 00-22496 Filed 8-30-00; 8:45 am]
BILLING CODE 7590-01-C