[Federal Register Volume 66, Number 154 (Thursday, August 9, 2001)]
[Notices]
[Pages 41900-41901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19967]


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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 licensee's site in Matagorda County, Texas.

2.0  Request/Action

    Under Section 50.59 of Title 10 to the Code of Federal Regulations, 
Part 50, (10 CFR 50.59) requirements were established by which 
licensees could make changes to their facilities without prior NRC 
approval. For changes to the facility as described in the Final Safety 
Analysis Report (FSAR) (or to procedures as described in the FSAR), the 
licensee is to perform an evaluation of the change to determine whether 
certain conditions are met--if so, prior NRC approval for the change is 
required. The purpose of the rule is to ensure that the NRC has the 
opportunity to review changes of potential significance to the basis 
for licensing of the facility before they are implemented. The rule 
requires licensees to review proposed changes, and if they meet 
criteria that are related to accident probability or consequences, to 
seek prior NRC review and approval before implementing the particular 
change.
    As discussed in a rulemaking that revised the 10 CFR 50.59 
requirements published on October 4, 1999, (64 FR 53582) the rule was 
originally established to allow licensees the ability to make certain 
changes to their facilities, but also to preserve the functional 
requirements and information included in the FSAR on how the 
facilities, including its structures, systems, and components (SSCs), 
conform with NRC requirements for design, construction, and operation 
of the plant. The rule revision was intended to clarify which changes 
require evaluation and which changes require prior NRC approval.
    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), the licensee 
requested an exemption from the requirements of 10 CFR 50.59 [in 
particular, Paragraphs 50.59(c)(1), 50.59(c)(2) and 50.59(d)(1) of the 
revised rule] to perform a written evaluation for changes in special 
treatment requirements for low safety significant (LSS) and non-risk 
significant (NRS) SSCs. STPNOC further requested an exemption from the 
requirement to seek prior NRC approval for such changes to the extent 
that they fall within the listed criteria in 10 CFR 50.59.

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. Special circumstances are 
present under 10 CFR 50.12(a)(2)(ii) when application of the regulation 
in the particular circumstances would not serve the underlying purpose 
of the rule or is not necessary to achieve the underlying purpose of 
the rule.
    The NRC has completed its evaluation of STPNOC's request for an 
exemption from the requirements of 10 CFR 50.59 [Sections 50.59(c)(1), 
50.59(c)(2) and 50.59(d)(1) under the revised rule]. The NRC's 
evaluation is provided in a safety evaluation (SE), dated August 3, 
2001, prepared in support of this exemption. The FSAR for STP includes 
descriptions of many of the special treatment requirements as presently 
applied to SSCs. As such, the proposed approach described in the 
licensee's submittal that revises treatment applied to SSCs based on 
the results of the categorization process will result in changes to the 
descriptions of this treatment in the FSAR. These changes to the FSAR 
would fall within the scope of those requiring evaluation, and possibly 
prior NRC review and approval, pursuant to 10 CFR 50.59. STPNOC is 
proposing that it would not be required to evaluate FSAR changes that 
result from changes in the treatment for SSCs categorized as LSS or NRS 
or to seek prior NRC review and approval for these changes pursuant to 
10 CFR 50.59. The exemption request does not extend to changes to 
functional requirements for SSCs that are described in the FSAR.
    In the licensee's submittal, it requested exemptions from certain 
special treatment and process requirements in 10 CFR 21.3; 10 CFR 
50.34(b)(6)(ii); 10 CFR 50.34(b)(10); 10 CFR 50.34(b)(11); 10 CFR 
50.49(b); 10 CFR 50.54(a)(3); 10 CFR 50.55a(f); 10 CFR 50.55a(g); 10 
CFR 50.55a(h); 10 CFR 50.65(b); 10 CFR Part 50, Appendix A, General 
Design Criterion (GDC) 1, GDC 2, GDC 4, and GDC 18; 10 CFR Part 50, 
Appendix B; 10 CFR 50, Appendix J, Option B, Section III.B; and 10 CFR 
Part 100, Appendix A, Sections VI(a)(1) and (2). These exemption 
requests are being made to enable STPNOC to apply certain requirements 
in a graded manner based upon the safety/risk significance

[[Page 41901]]

of the SSCs. The NRC's SE dated August 3, 2001, provides a complete 
description of the extent of the requested exemptions from these 
regulations. The regulations for which exemptions are being sought 
include ``special treatment'' requirements, such as qualification, 
inspection, testing, monitoring, and quality assurance requirements.
    As noted, the purpose of the requirements in 10 CFR 50.59 is for 
licensees to assess proposed changes in order to identify when NRC 
review is needed. As part of the overall exemption review, NRC has 
reviewed the categorization methodologies used to determine the risk 
significance of SSCs. Further, NRC has reviewed the elements of the 
treatment processes proposed by the licensee that would be applicable 
to the various categories of SSCs. The specific changes to FSAR 
requirements resulting from use of these processes is part of the 
implementation process following the granting of the exemptions to the 
special treatment requirements of 10 CFR Parts 21, 50, and 100. 
Therefore, requiring an additional review of individual changes to the 
FSAR with respect to the exemptions from the special treatment 
requirements, for the purposes of deciding on the need for NRC prior 
approval, is unnecessary in that NRC review of the licensee's processes 
that will lead to those detailed FSAR changes was performed during the 
review of the requested exemptions. As previously noted, the scope of 
the exemption requested from 10 CFR 50.59 is only for changes 
concerning special treatment requirements for SSCs categorized as LSS 
or NRS. Any other changes to the facility (or procedures) as described 
in the FSAR, even if they relate to LSS or NRS SSCs, would not be 
exempted from the requirements of 10 CFR 50.59.
    The NRC concluded that the intent of the underlying regulation (10 
CFR 50.59) for prior NRC approval of particular changes contained in 
the submittal is satisfied by the review conducted for the exemptions 
from the special treatment requirements of 10 CFR Parts 21, 50, and 
100. Thus, application of the rule to the particular instances of 
changes to specific special treatment as described in the FSAR is not 
necessary.

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 
50.59(c)(1), (c)(2), and (d)(1) to the extent that they require the 
licensee to perform a written evaluation for changes to the STP FSAR, 
and to seek prior NRC approval of these changes, resulting from the 
exemptions granted to the requirements of 10 CFR Parts 21, 50, and 100 
requested in the licensee's submittal. All other changes to the FSAR, 
even those associated with LSS and NRS SSCs, are not included within 
the scope of the exemption granted. 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 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 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. 01-19967 Filed 8-8-01; 8:45 am]
BILLING CODE 7590-01-P