[Federal Register Volume 66, Number 178 (Thursday, September 13, 2001)]
[Notices]
[Pages 47700-47708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22867]


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NUCLEAR REGULATORY COMMISSION


Proposed Generic Communication; Resolution of Degraded and 
Nonconforming Conditions; (``Generic Letter 91-18 Process'')--(MB2530)

AGENCY: Nuclear Regulatory Commission.

ACTION: Notice of opportunity for public comment.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is proposing to 
issue a regulatory issue summary (RIS) to make available to the nuclear 
power industry updated staff guidance on the resolution of degraded and 
nonconforming conditions. Earlier guidance on this subject was provided 
to the industry as an attachment to Generic Letter 91-18, Revision 1, 
issued on October 8, 1997. The updated guidance will reflect relevant 
NRC regulatory process and regulation changes that have occurred since 
1997. The NRC is seeking comment from interested parties on the clarity 
and utility of the proposed RIS and the draft updated guidance under 
the Supplementary Information heading. The NRC will consider the 
comments received in its final evaluation of the proposed RIS and 
updated guidance. Comments should address the contents of the guidance 
but not the regulations associated with it.
    This Federal Register notice is available through the NRC's 
document management system (ADAMS) under accession number ML012420393. 
The draft updated guidance under the Supplementary Information heading 
is also provided in comparative text format on the NRC Web site at 
http://www.nrc.gov/NRC/GENACT/GC/RI/

[[Page 47701]]

DRAFT/index.html to better show the substantive revisions to the 1997 
version of the guidance.

DATES: Comment period expires October 29, 2001. 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 the Chief, Rules and Directives 
Branch, Division of Administrative Services, Office of Administration, 
U.S. Nuclear Regulatory Commission, Mail Stop T6-D59, Washington, DC 
20555-0001, and cite the publication date and page number of this 
Federal Register notice. Written comments may also be delivered to NRC 
Headquarters, 11545 Rockville Pike (Room T-6D59), Rockville, Maryland, 
between 7:30 am and 4:15 pm on Federal workdays.

FOR FURTHER INFORMATION, CONTACT: Eileen McKenna at (301) 415-2189 or 
by e-mail to [email protected].

SUPPLEMENTARY INFORMATION:

NRC Regulatory Issue Summary 2001-xx Resolution of Degraded and 
Nonconforming Conditions ``Generic Letter 91-18 Process''

Addressees

    All holders of operating licenses for nuclear power reactors, 
including those who have permanently ceased operations and have 
certified that fuel has been permanently removed from the reactor 
vessel, and all holders of operating licenses for nonpower reactors, 
including those whose licenses no longer authorize operation.

Intent

    The U.S. Nuclear Regulatory Commission (NRC) is issuing this 
regulatory issue summary (RIS) to inform licensees that NRC Inspection 
Manual Part 9900, Technical Guidance, ``Resolution of Degraded and 
Nonconforming Conditions,'' has been revised. The revised inspection 
guidance reflects relevant changes that have been made to NRC 
regulations and NRC policies and practices since 1997. This RIS 
requires no action or written response on the part of an addressee.

Background Information

    NRC staff inspection guidance on the resolution of degraded and 
nonconforming conditions at licensed reactor facilities is contained in 
NRC Inspection Manual Part 9900, Technical Guidance, ``Resolution of 
Degraded and Nonconforming Conditions.'' This guidance has previously 
been provided to licensees for information, most recently in Revision 1 
of Generic Letter (GL) 91-18, which was issued on October 8, 1997.
    The NRC reviewed this inspection guidance to assess its currency 
and concluded that the guidance needed to be updated to reflect 
regulatory changes that have occurred since 1997, including the 
implementation of the revised reactor oversight process, the 
requirement that licensees appropriately assess and manage the increase 
in risk related to proposed maintenance activities (10 CFR 
50.65(a)(4)), and the revision of 10 CFR 50.59 to remove ambiguity in 
the change control process. The attachment to this RIS contains the 
revised Part 9900 section on the resolution of degraded and 
nonconforming conditions. This guidance supersedes in its entirety the 
guidance previously provided in Revision 1 of GL 91-18. The Part 9900 
guidance on operability that was originally provided in GL 91-18 has 
not been revised.

Summary of Issue

    NRC Inspection Manual, Part 9900, Technical Guidance, ``Resolution 
of Degraded and Nonconforming Conditions,'' provides guidance to NRC 
inspectors for reviewing the actions of licensees to restore or 
establish acceptable conditions following the discovery of degraded or 
nonconforming conditions in plant structures, systems, or components 
(SSCs). The governing NRC requirements for degraded or nonconforming 
conditions affecting the SSCs may collectively be viewed as a process 
for licensees to develop a basis for continued operation or to place 
the facility in a safe condition and take prompt corrective action. 
This process has not fundamentally changed from that outlined in the 
previous version of the Part 9900 guidance on resolution of degraded or 
nonconforming conditions. The attached revised Part 9900 guidance 
addresses related guidance and requirements for resolution of degraded 
and nonconforming conditions, and updates information that has changed 
as a result of changes to regulations or to NRC policies and 
procedures.

Backfit Discussion

    This RIS requires no action or written response and, therefore, is 
not a backfit under 10 CFR 50.109. Consequently, the staff did not 
perform a backfit analysis.

Federal Register Notification

    A notice of opportunity for public comment was published in the 
Federal Register on September xx, 2001 (66 FR xxxxx), to give 
interested parties an opportunity to suggest ways for improving the 
guidance. The staff concludes that this RIS and the attached NRC 
inspection guidance are informational and pertain to a staff position 
that does not represent a departure from current regulatory 
requirements and practice.

Paperwork Reduction Act Statement

    This RIS does not request any information collection.
    Please refer any questions that you may have about this matter to 
the technical contact identified below.

David B. Matthews,
Director, Division of Regulatory Improvement Programs, Office of 
Nuclear Reactor Regulation.

    Technical Contact: Eileen McKenna, NRR, 301-415-2189, E-mail: 
[email protected].
    Attachments:
    1. NRC Inspection Manual Part 9900, Technical Guidance, 
``Resolution of Degraded and Nonconforming Conditions''
    2. List of Recently Issued NRC Regulatory Issue Summaries

Attachment 1

NRC Inspection Manual

Part 9900: Technical Guidance

Resolution of Degraded and Nonconforming Conditions

Draft--August 2001

Resolution of Degraded and Nonconforming Conditions

Table of Contents

 
                                                                    Page
 
1.0  Purpose and Scope...........................................      1
2.0  Definitions.................................................      2
  2.1  Licensing Basis...........................................      2
  2.2  Design Basis..............................................      2
  2.3  Degraded Condition........................................      2
  2.4  Nonconforming Condition...................................      2
  2.5  Full Qualification........................................      3
  2.6  Operable/Operability......................................      3
3.0  Background..................................................      3
4.0  Discussion of Notable Provisions............................      3
  4.1  Public Health and Safety..................................      3
  4.2  Operability Determinations................................      3
  4.3  The Licensing Basis and 10 CFR part 50, appendix B........      4
  4.4  Discovery of an Existing but Previously Unanalyzed              4
   Condition or Accident.........................................
  4.5  Establishing a Basis for Continued Operation..............      5
  4.6  Justification for Continued Operation.....................      5
  4.7  Reasonable Assurance of Safety............................      7
  4.8  Evaluation of Compensatory Measures.......................      7
  4.9  Maintenance Activities....................................      8
  4.10  Final Corrective Action..................................      8
5.0  Enforcement.................................................     10
6.0  Reference...................................................     10
 


[[Page 47702]]

Resolution of Degraded and Nonconforming Conditions

1.0  Purpose and Scope

    To provide guidance to NRC inspectors on resolution of degraded 
and nonconforming conditions affecting the following systems, 
structures, or components (SSCs) normally described in the updated 
final safety analysis report (UFSAR):
    (i) Safety-related SSCs, which are those relied upon to remain 
functional during and following design basis events (a) to ensure 
the integrity of the reactor coolant pressure boundary, (b) to 
ensure the capability to shut down the reactor and maintain it in a 
safe shutdown condition, or (c) to ensure the capability to prevent 
or mitigate the consequences of accidents that could result in 
potential offsite exposures comparable to the 10 CFR part 100 
guidelines. Design basis events are defined the same as in 10 CFR 
50.49(b)(1).
    (ii) All SSCs whose failure could prevent satisfactory 
accomplishment of any of the required functions identified in (i) 
(a), (b), and (c).
    (iii) All SSCs relied on in the safety analyses or plant 
evaluations that are a part of the plant's licensing basis. These 
analyses and evaluations include those submitted to support license 
amendment requests, exemption requests, or relief requests, and 
those submitted to demonstrate compliance with the Commission's 
regulations, such as the regulations for fire protection (10 CFR 
50.48), environmental qualification (10 CFR 50.49), pressurized 
thermal shock (10 CFR 50.61), anticipated transients without scram 
(10 CFR 50.62), and station blackout (10 CFR 50.63).
    (iv) Any SSCs subject to 10 CFR part 50, appendix B.
    (v) Any SSCs subject to 10 CFR part 50, appendix A, criterion 1.
    (vi) Any SSCs explicitly subject to facility Technical 
Specifications (TS).
    (vii) Any SSCs subject to facility TS through the definition of 
operability (i.e., support SSCs outside TS).
    This guidance is intended for NRC inspectors who are reviewing 
actions of licensees that hold an operating license. Although this 
guidance generally reflects existing staff practices, application to 
specific plants may constitute a backfit. Consequently, significant 
differences in licensee practices should be discussed with NRC 
management to ensure that the guidance is applied in a reasonable 
and consistent manner for all licensees.
    If, during an inspection, an NRC inspector obtains information 
reasonably indicating a possible degraded or nonconforming condition 
affecting any of the SSCs listed above, the inspector should 
promptly inform the licensee so the licensee can promptly evaluate 
the SSC's status.
    This guidance is only applicable to the discovery of degraded or 
nonconforming conditions. In some instances, however, a licensee may 
find it necessary to take actions that reduce the functional 
capability of SSCs in order to perform maintenance. For these cases, 
applicable guidance on the conduct of the pre-maintenance risk 
assessment and the management of the increase in risk caused by the 
maintenance activities (including the relationship with TS, risk 
assessment in accordance with 10 CFR 50.65(a)(4), and compensatory 
measures) is contained in Regulatory Guide 1.182 (see also 
Inspection Manual Part 9900, ``Guidance on Voluntary Entry Into 
Limiting Conditions for Operation Action Statements To Perform 
Preventive Maintenance'').

2.0  Definitions

2.1  Licensing Basis

    The licensing basis comprises the set of NRC requirements 
applicable to a specific plant, and a licensee's written commitments 
for assuring compliance with and operation within applicable NRC 
requirements and the plant-specific design basis (including all 
docketed and still effective modifications and additions to such 
commitments over the life of the license). The licensing basis 
includes the NRC regulations contained in 10 CFR parts 2, 19, 20, 
21, 30, 40, 50, 51, 55, 72, 73, and 100 and the appendices thereto; 
orders; license conditions; exemptions; and TS. It also includes the 
plant-specific design basis information defined in 10 CFR 50.2 and 
documented in the most recent UFSAR (as required by 10 CFR 50.71) 
and the licensee's commitments remaining in effect that were made in 
docketed licensing correspondence such as licensee responses to NRC 
bulletins, generic letters, and enforcement actions, as well as 
licensee commitments documented in NRC safety evaluations and 
licensee event reports.

2.2  Design Basis

    Design basis is that body of plant-specific design basis 
information defined in 10 CFR 50.2.\1\
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    \1\ Guidance and examples for identifying 10 CFR 50.2 design 
bases are contained in Regulatory Guide 1.186, which endorses 
Appendix B to the Nuclear Energy Institute (NEI) document NEI 97-04, 
``Guidance and Examples for Identifying 10 CFR 50.2 Design Bases.''
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2.3  Degraded Condition

    A condition of an SSC, potentially affecting operability, in 
which quality or functional capability has been reduced by 
mechanisms such as aging, erosion, corrosion, or improper operation 
or maintenance.

2.4  Nonconforming Condition

    A condition of an SSC, potentially affecting operability, that 
involves a failure to meet requirements or licensee commitments 
because of such factors as improper design, testing, construction, 
or modification. The following are examples of nonconforming 
conditions:
    1. A condition fails to conform to one or more applicable codes 
or standards specified in the UFSAR.
    2. As-built equipment or as-modified equipment does not meet 
UFSAR descriptions.
    3. Operating experience or engineering reviews demonstrate a 
design inadequacy.
    4. Documentation required by NRC requirements such as 10 CFR 
50.49 is unavailable or deficient.

2.5  Full Qualification

    Full qualification is conformance to all aspects of the 
licensing basis, including codes and standards, design criteria, 
safety analyses, and commitments.

2.6  Operable/Operability

    The Standard Technical Specifications define operable or 
operability as follows:

A system, subsystem, train, component, or device shall be operable 
or have operability when it is capable of performing its specified 
functions and when all necessary attendant instrumentation, 
controls, electrical power, cooling or seal water, lubrication or 
other auxiliary equipment that are required for the system, 
subsystem, train, component, or device to perform its function(s) 
are also capable of performing their related support function(s).

    This definition of operable and operability specifically applies 
to SSCS covered by its and to those support systems that fall within 
the definition. However, the same definition may be applied 
generically to all SSCs covered by this guidance when discussing 
their operability (ability to perform their functions).

3.0  Background

    A nuclear power plant's SSCs are designed to meet NRC 
requirements, satisfy the licensing basis, and conform to specified 
codes and standards. For degraded or nonconforming conditions of 
these SSCs, the TS may require the licensee to take actions. The 
provisions of Criterion XVI of 10 CFR Part 50, Appendix B, may 
apply, requiring the licensee to promptly identify and correct 
conditions adverse to safety or quality. Collectively, these 
requirements may be viewed as a process for licensees to develop a 
basis to continue operation or to place the plant in a safe 
condition and take prompt corrective action. Reporting may also be 
required in accordance with 10 CFR 50.72, 50.73, and 50.9(b), 10 CFR 
part 21, and the TS.
    Changes to the facility in accordance with 10 CFR 50.59 may be 
made as part of the corrective action required by Appendix B. The 
process displayed in the attached chart, ``Resolution of Degraded 
and Nonconforming Conditions,'' identifies these and other 
provisions that a licensee may follow to restore or establish 
acceptable conditions. These provisions are success paths that 
enable licensees to continue safe operation of their facilities.

4.0  Discussion of Notable Provisions

4.1  Public Health and Safety

    All success paths, whether specifically stated or not, are 
directed first at ensuring public health and safety and second at 
restoring the SSCs to the licensing basis of the plant as an 
acceptable level of safety. Identification of a degraded or 
nonconforming condition that may pose an immediate threat to public 
health and safety requires the plant to be placed in a safe 
condition.
    Technical Specifications address the safety systems, installed 
instrumentation, and process variables and provide Limiting 
Conditions for Operation (LCOs), Actions,

[[Page 47703]]

Surveillance Requirements, Design Features, and Administrative 
Controls required to ensure public health and safety.

4.2  Operability Determinations

    NRC Inspection Manual Part 9900, ``Operable/Operability: 
Ensuring the Functional Capability of a System or Component,'' 
provides guidance on licensee responsibilities to assess whether 
systems or components continue to be operable when degraded or 
nonconforming conditions have been identified. The basis for 
continued operation (as supported by an operability determination) 
is further discussed in Sections 4.5 and 4.6 below.
    Other situations where operability must be assessed include the 
discovery of an error in a design calculation, nonconformance with 
an industry standard, or an incorrect underlying assumption for 
ensuring the operability of a structure, system, or component. With 
the explicit inclusion of an affected requirement in facility TS, 
the introduction of any discrepancies can result in the affected 
requirement being nonconservative or the inability of a licensee to 
satisfy an LCO or surveillance requirement (depending upon the 
nature of the issue). Guidance related to non-conservative TS is 
provided in Administrative Letter 98-10, ``Dispositioning of 
Technical Specifications That Are Insufficient to Assure Plant 
Safety.'' If a licensee does not satisfy an LCO or surveillance 
requirement that is included explicitly in the TS, then associated 
actions are taken or relief is sought (see section 4.6 below).
    In some cases, a design calculation or industry standard is used 
to define surveillance acceptance criteria but the specifics are not 
explicitly included in the TS (e.g., the TS surveillance requirement 
is to verify a capability for providing power or cooling and a 
reference document or the TS bases discuss the details of how this 
is determined). If an error in a calculation or nonconformance with 
an industry standard is found in these cases, the licensee should 
assess operability. If the affected SSC is determined to be 
inoperable, the TS define the appropriate actions. If, however, the 
affected SSC is determined to be operable, plant operation may 
continue, and the discrepancy resolved as further discussed in this 
guidance.

4.3  The Licensing Basis and 10 CFR 50, Appendix B

    The design and operation of a nuclear plant must be consistent 
with its licensing basis. Whenever degraded or nonconforming 
conditions of SSCs subject to Appendix B \2\ are identified, 
Appendix B requires prompt corrective action to correct or resolve 
the condition. The licensee must establish a schedule for completing 
the corrective action. The timeliness of the corrective action 
should be commensurate with the safety significance of the issue. 
The time period within which corrective action must be completed 
begins with the discovery of the condition, not when it is reported 
to the NRC.
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    \2\ Appendix B is only applicable to safety-related SSCs. 
However, NRC expects licensees to take corrective action for any 
nonconformances with the UFSAR consistent with Appendix B, Criterion 
XVI, in a time frame commensurate with safety.
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    In determining whether the licensee is making reasonable efforts 
to complete corrective action promptly, NRC will consider whether 
corrective action was taken at the first opportunity, taking into 
account safety significance, effects on operability, significance of 
degradation, and what is necessary to implement the corrective 
action. Factors that the NRC may consider are the amount of time 
required for design, review, approval, or procurement of the repair 
or modification; the availability of specialized equipment to 
perform the repair or modification; and whether the plant must be in 
hot or cold shutdown to implement the actions. The NRC expects 
licensees to explicitly justify time periods longer than the next 
refueling outage in the deficiency tracking documentation.

4.4  Discovery of an Existing But Previously Unanalyzed Condition or 
Accident

    In the course of its activities, the licensee may discover a 
previously unanalyzed condition or accident. Upon discovery of an 
existing but previously unanalyzed condition or accident that 
significantly degrades plant safety, the licensee is required to 
report it in accordance with 10 CFR 50.72 and 50.73, and put the 
plant in a safe condition. (See NUREG-1022, Revision 2, for guidance 
on conditions considered to significantly degrade plant safety.)
    For a previously unanalyzed condition or accident that is 
considered a significant safety concern but is not part of the 
design or licensing basis, the licensee may subsequently be required 
to take additional action after consideration of backfit issues (see 
10 CFR 50.109(a)(5)).

4.5  Establishing a Basis for Continued Operation

    The license authorizes the licensee to operate the plant in 
accordance with applicable regulations, license conditions, and the 
TS. If an SSC is degraded or nonconforming but operable, the TS 
establish an acceptable basis to continue to operate.\3\ When 
safety-related equipment is affected, the licensee must promptly 
identify and correct the condition adverse to safety or quality in 
accordance with 10 CFR part 50, appendix B, criterion XVI.
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    \3\ An exception to this general statement is the case of a 
facility that is experiencing significant performance problems that 
have led to issuance of a confirmatory action letter or order 
preventing that licensee from continuing to operate or resuming 
operation until approval is granted by the NRC.
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    The basis for a licensee's authority to continue to operate 
arises because the TS contain the specific characteristics and 
conditions of operation necessary to avoid the possibility that an 
abnormal situation or event will give rise to an immediate threat to 
public health and safety. If the TS are satisfied, and required 
equipment is operable, and the licensee is correcting the degraded 
or nonconforming condition in a timely manner, continued plant 
operation does not pose an undue risk to public health and safety.
    When a licensee finds itself in noncompliance with a regulation, 
immediate action such as shutting down the plant is not necessarily 
required, unless otherwise specified by NRC requirements. In such 
situations, the licensee should first determine if there is an 
immediate safety issue as a result of the noncompliance with a 
regulation. The licensee should further determine what other NRC 
requirements apply to the situation (e.g., 10 CFR part 50, appendix 
B, criterion XVI, or 10 CFR 50.12) and take the required action.
    In developing a basis for continued operation, licensees should 
consider matters such as the following:
     The availability, reliability, and operability of 
redundant or backup equipment
     Compensatory measures, including limited reliance on 
administrative controls
     The safety function and the events protected against
     Conservatism and margins
     Probability of needing the safety function
     Probabilistic risk assessment (PRA) or Individual Plant 
Evaluation (IPE) results that determine how operating the facility 
in the proposed manner will impact the core damage frequency or 
conditional core damage probability
     Plant-specific and industry experience, testing, and 
research
    The NRC concern with respect to a licensee's basis for continued 
operation is that the operability decision be correct, the 
documentation of the licensee's actions be appropriate, and any 
required submittals to the NRC (see below) be complete. The 
licensee's documentation of its basis for continued operation is 
normally proceduralized through the existing plant record system and 
is subject to NRC inspection (Inspection Procedure 71111.15).

4.6  Justification for Continued Operation

    Under certain defined and limited circumstances, the licensee 
may find that strict compliance with the TS or a license condition 
would cause an unnecessary plant action not in the best interest of 
public health and safety. NRC review and action is required before 
the licensee takes actions that are not in compliance with the 
license conditions or the TS, except in certain emergency situations 
when 10 CFR 50.54(x) and (y) are applied. A Justification for 
Continued Operation (JCO) is the licensee's technical basis for 
requesting authorization from the NRC to operate in a manner that is 
prohibited (e.g., outside TS or license conditions). The preparation 
of a JCO does not constitute authorization to continue operation. 
See Part 9900 guidance on Notices of Enforcement Discretion (NOED) 
for information on the NRC process for exercising enforcement 
discretion with regard to limiting conditions for operation in power 
reactor TS or license conditions.
    Other documents or processes that are not equivalent to and do 
not perform the same function as the JCO defined above may also be 
referred to as JCOs. For example, NRC generic communications may 
provide direction on how to establish bases for continued operation 
for specific issues, and licensees may not be required to submit 
these

[[Page 47704]]

determinations to the NRC. In Generic Letter 88-07, ``Environmental 
Qualification of Electrical Equipment,'' and Generic Letter 87-02, 
``Seismic Adequacy,'' these determinations are referred to as 
``JCOs.'' Licensees should continue to follow earlier guidance 
regarding the preparation and use of these determinations for 
specific issues. When reviewing licensee actions in response to a 
degraded or nonconforming condition, the NRC considers the content 
of the documentation, not its name.

4.7  Reasonable Assurance of Safety

    For SSCs that are not expressly subject to TS and are determined 
to be inoperable, the licensee should assess the reasonable 
assurance of safety using considerations similar to those discussed 
in Section 4.5 above. If reasonable assurance of safety exists, then 
the facility may continue to operate while prompt corrective action 
is taken.

4.8  Evaluation of Compensatory Measures

    When evaluating the impact of a degraded or nonconforming 
condition on plant operation and on the operability of SSCs, a 
licensee may decide to implement a compensatory measure as an 
interim step to restore operability or to otherwise enhance the 
capability of SSCs until the final corrective action is completed. 
This guidance concerns interim measures implemented before 
maintenance to restore the condition of the SSC has begun (also see 
Section 4.9 below).
    Reliance on a compensatory measure for operability should be an 
important consideration in establishing the ``reasonable time 
frame'' for completing the corrective action process. The NRC 
normally expects that conditions requiring interim compensatory 
measures to demonstrate operability will be resolved more quickly 
than conditions that do not require compensatory measures to show 
operability, since reliance on interim measures suggests a greater 
degree of degradation. Similarly, if an operability determination 
relies upon operator action, NRC expects the nonconforming condition 
to be resolved expeditiously.
    With respect to the use of compensatory measures, the approved 
regulatory guidance (Regulatory Guide 1.187, endorsing NEI 96-07, 
Revision 1) for implementating the revised 10 CFR 50.59 rule states:

    If an interim compensatory action is taken to address the 
condition and involves a temporary procedure or facility change, 10 
CFR 50.59 should be applied to the temporary change. The intent is 
to determine whether the temporary change/compensatory action itself 
(not the degraded condition) impacts other aspects of the facility 
or procedures described in the UFSAR.

    In considering whether a compensatory measure may affect other 
aspects of the facility, a licensee should pay particular attention 
to ancillary aspects of the compensatory measure that may result 
from actions taken to directly compensate for the degraded 
condition.
    As an example, suppose a licensee plans to close a valve to 
isolate a leak. Although that action would stop the leak, it may 
affect flow distribution to other components or systems, complicate 
required operator responses, or have other effects that should be 
evaluated before the compensatory measure is implemented. In 
accordance with 10 CFR 50.59, if the evaluation determines that 
implementation of the compensatory action itself would involve a TS 
change or otherwise require NRC approval under the evaluation 
criteria, NRC approval, in accordance with 10 CFR 50.90 and 50.92, 
is required before implementation of the compensatory action. If any 
SSC would not be operable (in accordance with the TS) unless the 
compensatory measure was in place, the licensee must follow the TS 
requirements (see also Section 4.6 above).

4.9  Maintenance Activities

    After identifying a degraded or nonconforming condition, a 
licensee will typically perform corrective maintenance to restore 
the facility to its as-designed condition. Paragraph 50.65(a)(4) 
requires licensees to assess and manage the increase in risk that 
may result from proposed maintenance activities. The conduct of 
maintenance may also involve other temporary procedure or facility 
alterations to allow the maintenance to be performed or to reduce 
risk. Such alterations include jumpering terminals, lifting leads, 
and using temporary blocks, bypasses, or scaffolding. These 
temporary alterations associated with maintenance are to be assessed 
as part of the 10 CFR 50.65(a)(4) risk assessment and, consistent 
with NRC regulatory guidance, a separate 10 CFR 50.59 review of the 
risk reduction measures is not required (except under limited 
conditions; see Regulatory Guide 1.182 endorsing Section 11 of the 
NEI (formerly the Nuclear Management and Resources Council (NUMARC)) 
document NUMARC 93-01, ``Assessment of Risk Resulting From 
Performance of Maintenance Activities,'' for further information).

4.10  Final Corrective Action

    The licensee is responsible for corrective action. A licensee's 
range of corrective action may involve (1) full restoration to the 
UFSAR-described condition such as through performance of corrective 
maintenance (see Section 4.9 above), (2) NRC approval for a change 
to the licensing basis to accept the as-found condition as is, or 
(3) some modification of the facility other than restoration to the 
condition as described in the UFSAR. If corrective action is taken 
to restore the degraded or nonconforming condition, no 10 CFR 50.59 
evaluation is required. The 10 CFR 50.59 process applies when the 
final resolution of the degraded or nonconforming condition differs 
from the established UFSAR requirement. At this point, the licensee 
plans to make a change to the facility or procedures as described in 
the UFSAR. The proposed change is now subject to the review process 
established by 10 CFR 50.59. A change can be safe, but still require 
NRC approval. The proposed final resolution may require staff review 
and approval without affecting the continued operation of the plant, 
because interim operation is being governed by the processes for 
determining operability and taking corrective action (Appendix B).
    In two situations, the identification of a final resolution or 
final corrective action triggers a 10 CFR 50.59 review, unless 
another regulation applies (e.g., 10 CFR 50.55a): (1) when a 
licensee decides as the final corrective action to change its 
facility or procedures to something other than full restoration to 
the UFSAR-described condition, and (2) when a licensee decides to 
change its licensing basis, as described in the UFSAR, to accept the 
degraded or nonconforming condition as its revised licensing basis. 
Each of these situations is discussed in greater detail below.

Change to Facility or Procedures

    In the first situation, the licensee's proposed final resolution 
of the degraded or nonconforming condition includes other changes to 
the facility or procedures to cope with the uncorrected or only 
partially corrected nonconforming condition. Rather than fully 
correcting the nonconforming condition, the licensee decides to 
restore capability or margin by making another change. In this case, 
the licensee must evaluate the change from the UFSAR-described 
condition to the final condition in which the licensee proposes to 
operate its facility. If the 10 CFR 50.59 evaluation concludes that 
a change to the TS is involved or the change meets any of the 
evaluation criteria specified in the rule for prior NRC approval, a 
license amendment must be requested, and the corrective action 
process is not complete until the approval is received or some other 
resolution occurs.

Change to the Licensing Basis

    In the other situation the licensee proposes to change the 
licensing basis to accept the as-found nonconforming condition. In 
this case, the 10 CFR 50.59 review covers the change from the UFSAR-
described condition to the existing condition in which the licensee 
plans to remain (i.e., the licensee will exit the corrective action 
process by revising its licensing basis to document acceptance of 
the condition). If the 10 CFR 50.59 evaluation concludes that a 
change to the TS is involved or the change meets any of the 
evaluation criteria specified in the rule for prior NRC approval, a 
license amendment must be requested and the corrective action 
process is not complete until the approval is received or some other 
resolution occurs. To resolve the degraded or nonconforming 
condition without restoring the affected equipment to its original 
design, a licensee may need to obtain an exemption from 10 CFR Part 
50 in accordance with 10 CFR 50.12 or relief from a design code in 
accordance with 10 CFR 50.55a. The use of 10 CFR 50.59, 50.12, or 
50.55a in fulfillment of Appendix B corrective action requirements 
does not relieve the licensee of the responsibility to determine the 
root cause, to examine other affected systems, and to report the 
original condition, as appropriate.
    In both of these situations, the need to obtain NRC approval for 
a change does not affect the licensee's authority to operate the 
plant. The licensee may make mode changes, restart from outages, 
etc., provided that necessary equipment is operable and the degraded 
condition does not violate the TS

[[Page 47705]]

or the license. The basis for this position was previously discussed 
in Section 4.5.

5.0  Enforcement

    If the licensee, without good cause, does not correct the 
degraded or nonconforming condition at the first available 
opportunity, the staff will determine whether the licensee has 
failed to take prompt corrective action in accordance with 10 CFR 
part 50, appendix B, criterion XVI. If the NRC concludes that the 
appendix B requirements were not met or the operability 
determination is not valid, the NRC staff will take appropriate 
regulatory action, consistent with the NRC oversight process and the 
enforcement policy for reactors.
    Completing corrective action within a reasonable time frame does 
not prevent the NRC from taking action for the root causes of the 
degraded or nonconforming condition or for violations of other 
regulatory requirements. The nonconforming condition may have 
resulted from earlier changes performed without a 10 CFR 50.59 
evaluation or from inadequate reviews. The staff may determine that 
the discovered nonconforming condition involves a change to the TS 
or otherwise requires prior approval as specified in 10 CFR 50.59. 
In such cases, enforcement action is appropriate to address the time 
from when the degraded or non-conforming conditions were created 
until the time of discovery. The NRC's action will take into account 
the safety significance of the facility conditions that existed 
while the SSC was in the degraded or nonconforming condition.

6.0  Reference

    See the attached chart, ``Resolution of Degraded and 
Nonconforming Conditions.''
END

    Documents may be examined, and/or copied for a fee, at the NRC's 
Public Document Room at One White Flint North, 11555 Rockville Pike 
(first floor), Rockville, Maryland. Publicly available records will 
be accessible electronically from the Agencywide Documents Access 
and Management Systems (ADAMS) Public Electronic Reading Room on the 
Internet at the NRC Web site, http://www.nrc.gov/NRC/ADAMS/index.html. If you do not have access to ADAMS or if you have 
problems in accessing the documents in ADAMS, contact the NRC Public 
Document Room (PDR) reference staff at 1-800-397-4209 or 301-415-
4737 or by e-mail to [email protected].


    Dated at Rockville, Maryland, this 5th day of September 2001.

    For the Nuclear Regulatory Commission.
David B. Matthews,
Director, Division of Regulatory Improvement Programs, Office of 
Nuclear Reactor Regulation.


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[FR Doc. 01-22867 Filed 9-12-01; 8:45 am]
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