[Federal Register Volume 66, Number 154 (Thursday, August 9, 2001)]
[Notices]
[Pages 41898-41900]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19965]


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NUCLEAR REGULATORY COMMISSION

[Docket No(s). 50-498 and 50-499]


STP Nuclear Operating Company, et al. South Texas Project, Units 
1 and 2; Exemption

1.0  Background

    STP Nuclear Operating Company, et al. (STPNOC or the licensee) is 
the holder of Facility Operating License Nos. NPF-76 and NPF-80, which 
authorize operation of the South Texas Project, Units 1 and 2 (STP or 
the facilities). The licenses provide, among other things, that the 
licensee is subject to all rules, regulations, and orders of the U.S. 
Nuclear Regulatory Commission (NRC or the Commission) now or hereafter 
in effect.
    The facilities consist of two pressurized-water reactors located at 
the

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licensee's site in Matagorda County, Texas.

2.0  Request/Action

    Under Section 50.55a(h)(2) of Title 10 to the Code of Federal 
Regulations, Part 50, [10 CFR 50.55a(h)(2)] for nuclear power plants 
with construction permits issued after January 1, 1971, but before May 
13, 1999, protection systems must meet the requirements stated in 
either Institute of Electrical and Electronics Engineers (IEEE) Std. 
279, ``Criteria for Protection Systems for Nuclear Power Generating 
Stations,'' or in IEEE Std. 603-1991, ``Criteria for Safety Systems for 
Nuclear Power Generating Stations,'' and the correction sheet dated 
January 30, 1995. STPNOC is committed to meet IEEE 279-1971. The scope 
of IEEE 279 states that this standard establishes the minimum safety-
related functional performance and reliability requirements for 
protection systems in a nuclear power plant. Fulfillment of these 
requirements does not necessarily establish the adequacy of protective 
system functional performance and reliability, but failure to fulfill 
any of these requirements usually indicates system inadequacy.
    By letter dated July 13, 1999, as supplemented October 14 and 22, 
1999, January 26 and August 31, 2000, and January 15, 18, 23, March 19, 
May 8, and May 21, 2001, (hereinafter, the submittal), STPNOC requested 
an exemption from the requirements of 10 CFR 50.55a(h) to the extent 
that it imposes the requirements of Sections 4.3 and 4.4 of IEEE 279 on 
structures, systems, and components (SSCs) categorized as low safety 
significant (LSS) and non-risk significant (NRS), using the licensee's 
categorization process. Section 4.3 of IEEE 279 contains requirements 
for the quality of components and modules. Section 4.4 of IEEE 279 
contains requirements for equipment qualification. The other 
requirements listed in IEEE 279, including functional and design 
requirements, will continue to be applied.

3.0  Discussion

    Pursuant to 10 CFR 50.12, the Commission may, upon application by 
any interested person or upon its own initiative, grant exemptions from 
the requirements of 10 CFR Part 50, when (1) the exemptions are 
authorized by law, will not present an undue risk to public health or 
safety, and are consistent with the common defense and security; and 
(2) when special circumstances are present. Under 10 CFR 
50.12(a)(2)(vi), special circumstances are present whenever there is 
any other material circumstances not considered when the regulation was 
adopted for which it would be in the public interest to grant an 
exemption. If the special circumstance of 10 CFR 50.12(a)(2)(vi) is 
relied on exclusively, the exemption may not be granted until the 
Executive Director for Operations has consulted with the Commission.
    The NRC has completed its evaluation of STPNOC's request for an 
exemption from the requirements of 10 CFR 50.55a(h)(2). The NRC's 
evaluation is provided in a safety evaluation (SE), dated August 3, 
2001, prepared in support of this exemption.
    The staff has reviewed STPNOC's integrated SSC categorization 
process. The categorization process was found to use both a 
probabilistic and a deterministic based methodology that appropriately 
addressed the issues of defense-in-depth, safety margins, and aggregate 
risk impacts. The staff finds the proposed categorization process to be 
acceptable to categorize the risk significance of both functions and 
SSCs for use in reducing the scope of SSCs subject to special 
treatment. The categorization process provides an acceptable method for 
defining those SSCs for which exemptions from the special treatment 
requirements can be granted. In support of its finding on the 
licensee's categorization process, the staff also found that the 
alternative treatment practices provide the licensee with a framework 
that, if effectively implemented, will provide reasonable confidence 
that safety-related LSS and NRS SSCs remain capable of performing their 
safety functions under design-basis conditions. Based on these 
findings, the staff determined that LSS and NRS SSCs could be excluded 
from the scope of 10 CFR 50.55a(h)(2) to the extent that it imposes the 
requirements of Sections 4.3 and 4.4 of IEEE 279 on LSS and NRS SSCs 
without undue risk to public health and safety.
    The staff also found that granting of this exemption is in the 
public interest in that it enhances the effectiveness and efficiency of 
the NRC's oversight of the licensee's activities at STP by focusing its 
resources on those SSCs that are most significant to maintaining public 
health and safety. Likewise, the licensee's resources and attention can 
be focused on those SSCs that have the highest contribution to plant 
risk. Further, the licensee's categorization process provides a method 
for establishing a licensing basis for STP that is consistent with the 
risk-informed approach in the NRC's reactor oversight process. This 
enhances the regulatory framework under which STPNOC operates its 
facility and by which the NRC oversees the licensee's activities.
    As discussed further in the August 3, 2001, SE prepared in support 
of this exemption, the NRC has concluded that the special circumstances 
of 10 CFR 50.12(a)(2)(vi) are satisfied in that the licensee has 
presented a material circumstance (the categorization process) that was 
not considered when the regulations were adopted and that provides an 
acceptable method for refining the scope of SSCs to include under the 
regulations. Furthermore, it is in the public interest to grant such 
exemptions. Finally, as required by 10 CFR 50.12(a)(2)(vi), the 
Executive Director for Operations has consulted with the Commission in 
the application of this special circumstance during the Commission 
meeting held on July 20, 2001.

4.0  Conclusion

    Accordingly, the Commission has determined that, pursuant to 10 CFR 
50.12(a), the exemption is authorized by law, will not endanger life or 
property or common defense and security, and is, otherwise, in the 
public interest. Also, special circumstances are present. Therefore, 
the Commission hereby grants, subject to the conditions described 
below, STPNOC the exemption from the requirements of 10 CFR 
50.55a(h)(2) to the extent that it imposes the requirements of Sections 
4.3 and 4.4 of IEEE 279 on SSCs at STP categorized as LSS and NRS. As 
conditions of this exemption:

    1. The licensee described the categorization, treatment, and 
oversight (evaluation and assessment) processes in its submittal 
dated July 13, 1999, as supplemented October 14 and 22, 1999, 
January 26 and August 31, 2000, and January 15, 18, 23, March 19, 
May 8 and 21, 2001. The licensee has documented these processes in a 
proposed Final Safety Analysis Report (FSAR) submittal dated May 21, 
2001, found acceptable by the staff as the regulatory basis for 
granting this exemption (see the NRC's SE dated August 3, 2001). The 
licensee shall incorporate this proposed FSAR submittal into the STP 
FSAR and shall implement the categorization, treatment, and 
oversight processes consistent with the STP FSAR descriptions.
    2. The licensee shall implement a change control process that 
incorporates the following requirements:
    a. Changes to FSAR Section 13.7.2, ``Component Categorization 
Process,'' dated May 21, 2001, and found acceptable by the NRC as 
described in the NRC's SE dated August 3, 2001, may be made without 
prior NRC approval, unless the change would decrease the 
effectiveness of the process in identifying high safety significant 
and medium safety significant components.
    b. Changes to FSAR Section 13.7.3, ``Treatment of Component 
Categories,'' dated

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May 21, 2001, and found acceptable by the NRC as described in the 
NRC's SE dated August 3, 2001, may be made without prior NRC 
approval, unless the change would result in a reduction in the 
assurance of component functionality.
    c. Changes to FSAR Section 13.7.4, ``Continuing Evaluations and 
Assessments,'' dated May 21, 2001, and found acceptable by the NRC 
as described in the NRC's SE dated August 3, 2001, may be made 
without prior NRC approval, unless the change would result in a 
decrease in effectiveness of the evaluations and assessments.
    d. The licensee shall submit a report, as specified in 10 CFR 
50.4, of changes made without prior NRC approval pursuant to these 
provisions. The report shall identify each change and describe the 
basis for the conclusion that the change does not involve a decrease 
in effectiveness or assurance as described above. The report shall 
be submitted within 60 days of the date of the change.
    e. Changes to FSAR Sections 13.7.2, 13.7.3, and 13.7.4 that do 
not meet the criteria of a through c above shall be submitted to the 
NRC for prior review and approval.

    Pursuant to 10 CFR 51.32, an environmental assessment and finding 
of no significant impact has been prepared and published in the Federal 
Register (66 FR 32397). Accordingly, based upon the environmental 
assessment, the Commission has determined that the granting of this 
exemption will not have a significant effect on the quality of the 
human environment.
    This exemption is effective upon submittal of a FSAR update 
pursuant to 10 CFR 50.71(e) incorporating the FSAR Sections described 
in the conditions above.

    Dated at Rockville, Maryland, this 3rd day of August, 2001.

    For the Nuclear Regulatory Commission.
John A. Zwolinski,
Director, Division of Licensing Project Management, Office of Nuclear 
Reactor Regulation.
[FR Doc. 01-19965 Filed 8-8-01; 8:45 am]
BILLING CODE 7590-01-P