INSIDE NRC Volume 37 / Number 21 / October 19, 2015 NRC region says TVA’s Watts Bar-2 meets operating license criteria NRC’s Region II office has concluded that the Tennessee Valley Authority’s Watts Bar-2 meets the requirements for receiving an operating license, and the agency could issue the license in “a couple of weeks,” NRC said in a letter and statement October 15. In the letter to TVA, NRC’s Region II acting regional administrator Leonard Wert said construction of Watts Bar-2 has been substantially completed, the unit complies with the permits and applications filed by TVA, and it is likely to be operated in accordance with regulations. That letter was one of the the final NRC steps before the director of the agency’s Office of Nuclear Reactor Regulation can issue the operating license. The decision on whether to issue the operating license “is expected within the next couple of weeks,” NRC said in a statement October 15. Work on Watts Bar-2 began in 1972 and was suspended in the 1980s; it resumed in 2007. TVA said in 2012 the unit was expected to enter commercial operation in December 2015. The Region II NRC letter “is validation of what we have built at Watts Bar-2 and that it meets all these readiness requirements,” TVA spokesman Jim Hopson said in an interview October 15. TVA does not have a firm date for when NRC might issue an operating license, he said. NRC said in the letter there have been 64 inspections of Watts Bar-2 during construction that closed out most of 560 items requiring verification. About 20 items have not been fully closed by the agency, but they did not affect the decision that Watts (continued on page 9) Pilgrim decommissioning fund is ‘adequate,’ says Entergy executive Entergy has “adequate funds” set aside to meet NRC’s minimum requirements for decommissioning its single-unit Pilgrim plant in Massachusetts, a company executive said October 13. William Mohl, president of the Entergy Wholesale Commodities business segment, said at a press briefing that day the company will permanently shut the 728-MW BWR no later than June 1, 2019. An evaluation of Pilgrim’s operating costs and revenues begun earlier this year made it “clear” that “Pilgrim is simply no longer financially viable," Mohl said. The evaluation concluded the plant would sustain “losses of revenue of over $40 million annually” for the foreseeable future, he said. The company has not decided whether it will permanently shut Pilgrim in spring 2017 or mid-year 2019, Mohl said. The Wholesale Commodities business segment includes Entergy's merchant nuclear units. Responding to a reporter’s question about Entergy’s decommissioning plans for Pilgrim, Mohl said the company has "adequate funds of Inhofe drafting bill to revise NRC fees The Republican chairman of the Senate committee that oversees NRC said October 7 that he is developing legislation that would revise the way the agency calculates and collects annual fees from its licensees. Senator James Inhofe, an Oklahoma Republican, said in his opening statement at a hearing of the Environment and Public Works Committee that the agency's workload has been declining in recent years, due in part to fewer applications for new reactor licenses than had been expected. Also, Inhofe said in his written statement, www.platts.com despite the fact that the US nuclear power industry has spent more than $4 billion on actions taken in response to the Fukushima I accident in Japan, "NRC staff has repeatedly sent proposals to the Commission, which they admit are not safety-significant or costjustified. I believe this shows the NRC's bureaucracy has grown beyond the size needed to accomplish its mission." Inhofe also criticized "the NRC's extreme level of corporate overhead costs; reactor oversight spending increasing despite the decline in operating reactors; over-budgeting about $870 million that exceeds NRC’s minimum requirements.” The agency’s “minimum or site specific cost estimate” of the decommissioning trust fund requirement for Pilgrim is $627.9 million, according to an NRC 2015 decommissioning funding status report for all units issued by the agency October 15. The report, which was based on estimates as of December 31, 2014, and which assumed Pilgrim would shut at the end of its current license in June 2032, stated there was about (continued on page 9) INSIDE THIS ISSUE Cyber security rule implementation by 2017, says NRC official 2 Southern Nuclear seeks approval of alternate simulator at Vogtle 4 NRC requires security improvements at Energy Northwest's Columbia 5 NRC delays rulemaking on spent fuel and waste storage security 5 Taiwan to decide on Chinshan's fate in 2016 6 Japanese regulator to consider revising fire safety regulations NUCLEAR 7 INSIDE NRC OCTOBER 19, 2015 for New Reactors work that no longer exists; and persistent carry-over funds." Inhofe said he does not "have confidence that the agency will diligently address the need for reform on its own. I believe it's time for Congress to step in. I intend to draft legislation to reform the NRC's budget structure and fee collection in an effort to instill fiscal discipline in the agency and ensure that resources are properly focused on safety-significant matters and timely decision-making." Inhofe did not provide details about what might be included in the legislation, or when it might be introduced. Asked after the hearing whether Inhofe has definite plans to introduce such legislation during the current session of Congress, committee spokeswoman Kristina Baum said in an email October 7 that Inhofe "is developing legislation on the topic. However, we’ll keep you posted in regards to timing." NRC is required by law to recover 90% of its annual budget from licensee fees. The Nuclear Energy Institute has told the agency several times in recent years, in comments on the annual fee recovery rules, that the US nuclear power industry believes that the agency's annual fees are increasing at an excessive rate. NRC Chairman Stephen Burns and the other three commissioners said during the hearing October 7 that the agency's ongoing Project Aim 2020 will increase NRC's efficiency and better tailor the size of its staff and budget to the type and amount of work expected in the next few years. "A central element of the Project Aim effort is the rebaselining process," Burns said in his written testimony. "In our direction to staff, my colleagues and I made clear that the focus should be on identifying INSIDE NRC Volume 37 / Number 21 / October 19, 2015 ISSN: 0194-0252 Senior Managing Editor William Freebairn ([email protected]) Editor Benjamin Leveau ([email protected]) Managing Editors Steven Dolley ([email protected]) Elaine Hiruo ([email protected]) Editor, Asia Yuzo Yamaguchi ([email protected]) Senior Editor Jim Ostroff ([email protected]) Contact the editors: [email protected] Editorial Director, Nuclear Shelley Kerr Global Editorial Director, Power Sarah Cottle European, Asian Editors Chief Content Officer Martin Fraenkel Managing Editor Oliver Adelman ([email protected]) Platts President Imogen Dillon Hatcher Advertising Tel : +1-720-264-6631 Manager, Advertisement Sales Kacey Comstock To reach Platts: E-mail:[email protected]; North America: Tel:800-PLATTS-8; Latin America: Tel:+54-114121-4810; Europe & Middle East: Tel:+44-20-7176-6111; Asia Pacific: Tel:+65-6530-6430 Copyright © 2015 McGraw Hill Financial 2 what work is most important to the safety and security mission of the agency, and what activities can be shed, deprioritized, or performed with a less intense resource commitment." — Steven Dolley, Washington Cyber security rule implementation by 2017, says NRC official US nuclear power plants are scheduled to complete by 2017 the implementation of cyber security requirements posited by NRC regulations, an agency official said October 13. James Andersen, director of NRC's Cyber Security Directorate, said in a post that day on the agency's blog that power reactor licensees are implementing requirements of a 2009 cyber security rule in two phases. "During Phase 1, they implemented controls to protect their most significant digital assets from the most prevalent cyber attack vectors," he said. "This phase was completed in December 2012, and our inspections of Phase 1 actions will be done late this year." Andersen said: "During Phase 2, which will be completed in 20162017, licensees will complete full implementation of their cyber security programs. They will add additional technical cyber controls, cyber security awareness training for employees, incident response testing and drills, configuration management controls, and supply chain protection." He added that "cyber security involves 'defense in depth.' Crucial safety- or security-related systems (both digital and analog) are isolated from the Internet, giving them strong protection. Such 'air gaps' are important, but not sufficient. Licensees must also address Inside NRC is published every other Monday by Platts, a RECOMMENDATION TO BUY, SELL OR HOLD SUCH INVESTMENT OR SECURITY OR MAKE ANY OTHER division of McGraw Hill Financial, registered office: Two Penn Plaza, 25th Floor, New York, N.Y. 10121-2298.. INVESTMENT DECISIONS. NEITHER PLATTS, NOR ITS AFFILIATES OR THEIR THIRD-PARTY LICENSORS Officers of the Corporation: Harold McGraw III, GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS Chairman; Doug Peterson, President and Chief OR COMPLETENESS OF THE DATA OR ANY Executive Officer; David Goldenberg, Acting COMPONENT THEREOF OR ANY COMMUNICATIONS, General Counsel; Jack F. 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PARTICULAR INVESTMENT, SECURITY, RATING OR Platts is a trademark of McGraw Hill Financial ANY OBSERVATION CONCERNING A SECURITY OR Copyright © 2015 by Platts, McGraw Hill Financial INVESTMENT PROVIDED IN THE DATA IS NOT A INSIDE NRC OCTOBER 19, 2015 wireless threats, portable media such as discs or thumb drives, and other avenues of attack. Physical security and access controls, including guarding against an insider threat to the plant, also add to cyber security, as do cyber intrusion detection and response capability." Andersen said: "NRC will soon publish a new regulation requiring nuclear plant licensees to notify the agency quickly of certain cyber attacks." Report warns of cyber security threats A new report by the UK’s Chatham House think tank warned that a combination of increased online activity by criminals, states and terrorist groups, combined with the relatively recent digitization of many nuclear installations, means that the danger of a cyber attack on a civilian nuclear facility has increased. The October 5 report, "Cyber Security at Civil Nuclear Installations: Understanding the Risks," said that “recent high-profile cyber attacks, including the deployment of the sophisticated 2010 Stuxnet worm, have raised new concerns about the cyber security vulnerabilities of nuclear facilities.” Stuxnet was a 2010 computer “worm,” or malware program, that attacked Iranian computer software and was responsible for damaging a significant number of Iran's nuclear centrifuges, according to media reports at the time, which linked the program to the American and Israeli security services. The Chatham House report said that “even a small-scale cyber security incident at a nuclear facility would be likely to have a disproportionate effect on public opinion and the future of the civil nuclear industry.” A spokeswoman for the UK's Office for Nuclear Regulation, or ONR, said in an October 7 email that "ONR recognises the thrust of the recommendations in the Chatham House report. As the nuclear safety and security regulator we licence sites and approve their security plans on the basis of a range of defence in depth measures, which includes cyber security." The spokeswoman added that "cyber risks are always developing and no one can afford to be complacent. In addition to our robust inspection regime, ONR is constantly reinforcing the importance of cyber security to senior figures across the UK nuclear industry. We agree with the Chatham House report that significant attention must be paid to these issues now and in future." NRC and US nuclear industry officials said that many of the report's criticisms do not apply to US nuclear power plants, which have in place robust cyber security measures and are adding more. The report says that “the cyber security risk is growing as nuclear facilities become increasingly reliant on digital systems and make increasing use of commercial ‘off-the-shelf’ software, which offers considerable cost savings but increases vulnerability to hacking attacks.” Caroline Baylon, a cyber security expert at Chatham House and the report’s lead author, said in an interview October 5 that there are seven cyber incidents at nuclear facilities cited in the report. She added that there was "not a lot of incident disclosure" in the nuclear industry, but that “one of my sources has documented as many as 50 industrial control systems incidents at nuclear facilities.” Baylon said that recent digitization of nuclear plant systems is Copyright © 2015 McGraw Hill Financial 3 “basically an industry-wide trend. Digitalisation tended to happen later in the nuclear sector [compared to other industries] because of initial regulatory restrictions.” The report notes that the risks of cyber attack increase with the increased use of digital systems at generating stations, both because computer systems are more prone to cyber attack, but also because some stations are also increasingly using "off the shelf," or commercially available, software that is more vulnerable to attack. The report said that “the conventional belief that all nuclear facilities are ‘air gapped’ (isolated from the public internet) is a myth. The commercial benefits of internet connectivity mean that a number of nuclear facilities now have VPN connections installed, which facility operators are sometimes unaware of.” The report noted that “search engines can readily identify critical infrastructure components with such connections,” adding that “even where facilities are air gapped, this safeguard can be breached with nothing more than a flash drive.” The report said that “supply chain vulnerabilities [at civilian nuclear installations] mean that equipment used at a nuclear facility risks compromise at any stage.” The report also said that a "lack of training, combined with communication breakdowns between engineers and security personnel, means that nuclear plant personnel often lack an understanding of key cyber security procedures.” Asked what would be the best way to improve cyber security internationally at civilian nuclear installations, Baylon noted that insurance against cyber attack was starting to be “more of a trend, it will create a greater following,” adding that regulation in the area of cyber security at nuclear installations was “developing organically.” Report makes generalizations, NRC says NRC spokesman David McIntyre said in an email October 6 that the Chatham House report "makes numerous questionable generalizations, and addresses the 'nuclear industry' globally, rather than by country. The NRC has been very forward-thinking in developing cyber security requirements for commercial nuclear facilities and we are confident that these requirements provide protection and flexibility to respond to evolving threats." William Gross, senior project manager, engineering, at the Nuclear Energy Institute, said in an interview October 6 that the Chatham House report has "some very valid recommendations," but many of the concerns expressed in it are not security problems at nuclear power plants in the US. The US nuclear industry implemented comprehensive cyber security programs in 2008, and regulatory requirements issued by NRC in 2009 are being implemented, Gross said. While some elements are still being implemented, "the key technology countermeasures are substantively in place," including controls on portable devices such as smart phones and portable media such as USB drives, he said. Some of the security measures in place at US power reactors include data diodes, network hardware that allows data to be sent from a particular system but not received, effectively precluding cyber attacks on such assets, Gross said. Air gaps are also in widespread INSIDE NRC OCTOBER 19, 2015 use, he said. Also, Gross said, cyber security training is required for all personnel with access to US nuclear power plants, including contractors. The US Department of Homeland Security's Office of Cyber and Infrastructure Analysis said in a paper dated October 6, provided by Gross, that "NRC does not direct industry on how to achieve the requisite security. Operators can find the approach most suitable for their plant." The DHS office said: "Some cybersecurity experts have noted that each alternative approach to enforcing security among network security levels has its own limitation. The standard of care used in the commercial nuclear power industry is comparable to that used to protect U.S. Government classified networks. Thus, while it is not perfect, it represents the best known approach." The DHS office concluded: "At this time, based on what has been implemented, the overall operational and regulatory requirements of the nuclear industry substantially avoid the possibility of a cybersecurity incident having a significant effect outside of the plant." — Steven Dolley, Washington; Oliver Adelman, London Southern Nuclear seeks approval of alternate simulator at Vogtle Southern Nuclear Operating Co. has requested NRC permission to use alternative criteria for approving the plant simulator for testing reactor operators for the Vogtle-3 and -4 units being built in Georgia. Reactor operators must be tested on either a so-called plant reference simulator or one approved by NRC under alternative criteria. Because of delays in a verification process for simulators at the four AP1000 units under construction in the US, they are not yet designated plant reference simulators. As a result, South Carolina Electric & Gas, which is building two AP1000 units at its Summer station, applied in January for NRC approval of its simulator under the alternate criteria. That review has been on hold while SCE&G provides additional information, NRC said this summer. Southern Nuclear’s similar request was made public by NRC October 8. In a letter dated September 18, Southern Nuclear asked that NRC approve the simulator by December 18 “[t]o support the operator licensing schedule.” The first groups of potential AP1000 reactor operators are waiting to complete the simulator portion of the NRC-administered exam that determines whether they will receive a license. SCE&G’s first class of reactor operators took the written exam in May, but the simulator portion of the exam had to be postponed as a result of the lack of a reference plant simulator or a commission-approved alternative. Southern Nuclear postponed planned reactor operator exams scheduled for November, in part to provide additional time to meet a requirement relating to development of job performance measures, Georgia Power, the largest utility owners of the Vogtle plant, said in an August filing with Georgia’s Public Service Commission. The delay will not have an impact on the commercial operation dates for Vogtle-3 and -4, which are June 2019 and June 2020, respectively, Georgia Power said. Georgia Power and Southern Nuclear are both subsidiaries of Southern Company. Copyright © 2015 McGraw Hill Financial 4 NRC regulations require that a plant reference simulator, meaning one that mirrors plant behavior in every significant way, be used for NRC-administered operator licensing tests. Alternately, if a site wants to use a simulator that has not yet been accepted by NRC as a plant reference simulator, a request can be made to use a commissionapproved simulator that meets certain criteria. Such a commission-approved simulator is intended as a temporary measure until the simulator is verified through a process, known as integrated system validation, as being a plant reference simulator. Because the AP1000 units being built in South Carolina and Georgia are the first of that reactor type in the US, verifying that they match a reference unit is difficult before construction is completed, company officials have said. The simulator at Summer may not receive plant reference status until sometime in 2018, the South Carolina Public Service Comission staff said in a July 30 status report on construction at the site. Westinghouse and SCE&G are working to expedite that date, the report said. The review of the application for an NRC-approved simulator instead of a reference plant one at Summer has been held up by legal questions raised by NRC staff, James Kellum, a senior reactor operations engineer in the agency’s Office of New Reactors, said during a meeting April 22 in Chattanooga, Tennessee (Nucleonics Week, 7 May, 8). He said the agency’s Office of the General Counsel had reviewed issues related to the use of draft emergency action levels, how updates to procedures relating to control room alarms would be handled, and some procedural questions about the test results. The response from the general counsel’s office was received in early April, but raised some additional questions and the issue is being discussed by senior NRC management, Kellum said. NRC told SCE&G in a letter July 2 that it was suspending its safety evaluation of the simulator approval request because of a lack of information. While some issues were resolved during meetings between March and June, "several significant technical issues remain unresolved," NRC said. SCE&G must provide information on a series of technical and corrective action items before NRC can resume the review, the agency said. Also, NRC staff must write a safety evaluation report supporting the approval of an alternative to a reference plant simulator. The South Carolina PSC staff report said July 30 the safety evaluation for the commission-approved simulator for the site was expected to be completed in the third quarter of 2015. The state PSC staff said in the report that because of delays in approving the simulator, candidates to be reactor operators could only take the written portion of the NRC exam in May. Preliminary results indicated a lower-than-expected number of candidates passed the written exam, the PSC staff said. A group of SCE&G, Southern Nuclear and Westinghouse personnel, along with industry experts, are reviewing the results to determine the cause of the low passing rate, the report said. A second class of reactor operator candidates had their exams, originally scheduled for November, delayed until the second quarter of 2016, the PSC staff said. — William Freebairn, Washington INSIDE NRC OCTOBER 19, 2015 NRC requires security improvements at Energy Northwest's Columbia NRC has issued a confirmatory order to Energy Northwest's Columbia in Washington state, requiring improvements in the security program at the 1,173-MW unit, NRC said in a Federal Register notice October 13. The order is the result of a mediated settlement negotiated between the federal regulator and the utility after a 15-month investigation by NRC's Office of Investigations found that two security officers at the plant "willfully violated" regulations "on multiple occasions" between 2012 and 2014, the notice said. NRC said the investigation was initiated to determine whether security officers at Columbia "were willfully inattentive while on duty" — a phrase which in previous investigations has referred to a range of infractions, sometimes including sleeping on duty. NRC said in the notice that the two officers "were not available at all times inside the protected area for their assigned response duties," but did not elaborate. The agency does not release details about most security-related incidents at nuclear power plants because it considers them sensitive information, and it did not provide details on the two officers' alleged violations in this case or identify them by name. The confirmatory order requires EN to conduct a common cause evaluation of the event within three months and incorporate the results in Columbia's corrective action program as appropriate. Within six months, annual training for Columbia employees will be revised to enhance its coverage of "deliberate misconduct" and its consequences, NRC said. Within 18 months, the utility will install wideangle cameras in bullet-resistant enclosures at the plant, which will be monitored by security supervisors at least twice per shift, it said. EN spokesman John Dobken said in an email October 13: "This is an issue we take very seriously. We have already implemented several corrective actions to prevent a recurrence." Dobken said that "[t]he individuals involved are no longer employed with Energy Northwest. The events referenced in the Order are by no means representative of the highly trained, professional security force we have on site." — Steven Dolley, Washington NRC begins special inspection at Dominion's Millstone-2 NRC began a special inspection October 13 of Dominion's 918-MW Millstone-2 in Connecticut to review issues associated with water leakage from the reactor's shutdown cooling system October 4, the agency said in a statement that day. Dominion declared an unusual event, the lowest of NRC's four categories of emergencies at power reactors, because the leakage exceeded 25 gallons per minute, the agency said. The leak from a relief valve was repaired and the emergency terminated later that day, and "all of the leakage was contained within other plant systems, as designed," NRC said. The leakage occurred as Millstone-2 was being shut for a refueling and maintenance outage, which is ongoing. NRC Region I Administrator Dan Dorman said in the statement: "Our Copyright © 2015 McGraw Hill Financial 5 initial review of the event has raised questions regarding operator performance. We have determined that the use of a Special Inspection is appropriate in this case to help the NRC better understand Dominion's response to the event." A report on the inspection team's findings will be issued within 45 days of the inspection's conclusion, NRC said. Millstone spokesman Kenneth Holt said in an email October 13 that Dominion is "conducting an investigation to ensure we understand all of the contributing factors to the Unusual Event." The company "will be working with the NRC’s Special Inspection Team and sharing information about what happened," Holt said. "We look forward to any insights that they may provide as we take steps to prevent recurrence." — Steven Dolley, Washington FUEL AND WASTE REGULATION NRC delays rulemaking on spent fuel and waste storage security NRC commissioners voted October 6 to approve staff's recommendation to delay for five years the start of a proposed rulemaking on security for spent fuel and waste storage facilities. Chairman Stephen Burns and Commissioners Kristine Svinicki and William Ostendorff voted to approve the recommendation. Commissioner Jeffery Baran approved in part and disapproved in part, saying the rulemaking should be delayed for only 12 months. The commission said in an October 6 staff requirements memorandum, or SRM, that "[a]t the end of the five-year period, the staff should re-evaluate whether rulemaking in this area is warranted. However, the staff notes several scenarios, including its evaluation in the context of the Project Aim re-baselining, under which the staff would accelerate this rulemaking." The commission added that if staff determines such an acceleration is warranted, it "should provide the Commission with its basis for that determination before it reinitiates the rulemaking." In 2007, the commission approved staff's proposal "to apply a radiological dose-based regulatory approach to all independent spent fuel storage facilities (ISFSI) using release-fraction values specified by the NRC," staff said in a paper to the commission, Comsecy-15-0024, dated September 11 and released October 6. "Specifically, this dose-based approach would require licensees to demonstrate that the security at ISFSIs or monitored retrievable storage installations could effectively protect against releases, if any, resulting from specific security events bounded by the design basis threat for radiological sabotage," staff said. Security measures developed under such an approach "should be sufficiently robust that the estimated dose at the site boundary would not exceed 0.05 Sievert (5 rem)," staff said. The commission also ordered staff "to develop new, risk-informed performance-based security requirements applicable to all ISFSIs to enhance existing security requirements, and to develop ISFSI-specific regulatory guidance supporting the implementation of the new regulations," the paper said. After further review and stakeholder input, "staff conducted proof- INSIDE NRC OCTOBER 19, 2015 of-concept testing to determine if certain postulated security scenarios were credible," the paper said. Ongoing analysis by staff of scenarios in which radioactive materials might be released, using the Melcor software package, is projected to be completed in December, it said. Staff said in its paper that the rulemaking could safely be postponed because existing security orders and inspections already provide adequate protection of Isfsis. Postponing the start of the rulemaking, it said, would allow staff to complete its Melcor analysis of release scenarios, take into account progress made on a related rulemaking on power reactor decommissioning (INRC, 12 Jan, 1) and achieve "further clarity on the development of the domestic spent nuclear fuel management strategy," including potential construction of one or more consolidated interim storage facilities that have been proposed. Also, expenditures on the rulemaking, including development of guidance, "need[s] to be evaluated in light of competing agency priorities," staff said. Staff proposed in its paper that completion of the technical basis being developed to support the rulemaking be postponed from December 2015 to December 2020 and that issuance of a final rule be postponed from December 2018 to December 2023. Burns said in comments attached to his vote sheet that he agreed with staff's proposed revised schedule. He also said he agreed with staff's assessment that current security orders and inspections provide adequate protection, a point that Svinicki and Ostendorff also made in their comments. Baran said that "[w]hile delaying this security rulemaking ultimately may make sense, I disapprove a five-year delay at this time." He said that "it would be better to consider such proposals in the context of" the agency's ongoing Project Aim 2020, which seeks to increase NRC's efficiency and tailor the size of staff to the workload expected over the next five years. Baran said he supports a 12-month postponement of the rulemaking, adding that any staff request for further postponement should be included in a "re-baselining assessment" of all agency work being conducted as part of Project Aim that is due to be delivered to the commission in April. The Nuclear Energy Institute said in comments filed with NRC this summer that it considers the proposed rulemaking unnecessary because security of US nuclear facilities is already adequately protected and agency and industry resources could be better used on other tasks. "It is unclear why any new or revised regulation is needed in this area," John Butler, senior director, strategic programs at NEI, said in the July 20 comments. "Security orders currently in place provide adequate protection for facilities storing SNF and high-level radioactive waste and should be codified with no additional requirements." — Steven Dolley, Washington INTERNATIONAL REGULATION Taiwan to decide on Chinshan's fate in 2016 Taiwan's Ministry of Economic Affairs and the state-owned Taiwan Power Co. will decide next summer whether to extend the life of the Copyright © 2015 McGraw Hill Financial 6 Chinshan nuclear power plant or proceed with its decommissioning, Atomic Energy Council Chairman Tsai Chuen-horng told the Education and Cultural Affairs Committee of the Legislative Yuan, Taiwan's parliament, October 8. Taipower submitted an application December 2013 to extend the operating license for the first of two 636-MW BWR units at the Chinshan plant, also known as Nuclear One. The AEC's review will consider issues such as the age of the facility and its components, the availability of fuel, and the safety of equipment that has been operating for 40 years, Tsai said. The commission expects to complete its review by June or July, he said. "Assuming that the application is approved, it will be up to Taipower or the Ministry of Economic Affairs to decide whether to actually extend the period of operation," Tsai said. The government controlled by the Chinese Nationalist Party — Kuomintang, or KMT — has not said whether it supports life extension for the Chinshan units. During a question period in the Legislature October 6, KMT Legislator Wu Yu-sheng, who is running for re-election in the district including Chinshan, urged KMT Premier Mao Chih-kuo to make a clear statement on whether the facility would be decommissioned on schedule in 2018 and 2019. Mao replied that there were "several times" in the past year in which reserve capacity of Taiwan's central electricity grid was only 2%. Taiwan faces the possibility of power restrictions "at any time," he said. Development of other power sources cannot fill the supply gap in the two or three years before the reactors are scheduled to shut, Mao said. The decision on whether to extend the operation period or decommission Chinshan would take place "at the end of next year," he said. Tsai told legislators that Taipower must submit its decommissioning plans by December 5. Operators are legally required to submit such plans three years before the expiration of their 40-year operational license. Under the present schedule, Chinshan-1 is scheduled to be retired in December 2018 and Chinshan-2 in May 2019. Taipower will also submit applications for the decommissioning of the two reactors at the Kuosheng plant, also known as Nuclear Two, by the end of 2018 and 2019, respectively. However, Democratic Progressive Party Legislator Cheng Li-chun, a co-convenor of the Educational and Cultural Affairs Committee, said Tsai's statement was incorrect. In an interview October 12, Cheng said: "AEC cannot issue a decision on Taipower's application for a license renewal for Nuclear One before the Ministry of Economic Affairs publically expresses its intention." Cheng cited an agreement reached by all the legislative party caucuses in January to attach a binding rider to the 2015 budget of the Atomic Energy Council, requiring that AEC ask MOEA to clarify whether the operating life of the Chinshan units will be extended (Nucleonics Week, Jan. 29, 1). The rider said that AEC cannot grant a new operating license to Chinshan before MOEA clarifies this question, and instructs AEC to INSIDE NRC OCTOBER 19, 2015 deliver a report to the committee before granting any such license. "The statement by [AEC] Chairman Tsai contradicts the conditions of this rider," Cheng said. However, AEC Vice Chairman Chou Yuan-ching said in an interview October 12 that the AEC had fulfilled this condition. "We have sent an official document that has already notified the MOEA that it would have to report to the legislature before the AEC announces its decision and the MOEA has returned a document stating that it was preparing for both options," Chou said. "This preparation includes our reviews of the applications," said Chou. Chou said MOEA would be required to deliver a report on its position to the committee and that AEC would also present a report on its decision next June or July. Chinshan-1 has been out of service for more than nine months since a fault was discovered in an Areva-made Atrium-10 fuel assembly during a refuelling outage in December. In his report, Tsai also asked the committee to schedule a meeting to review the AEC's report on the incident in which a connecting bolt broke in a fuel assembly at Chinshan-1. The committee approved a resolution March 12 requiring AEC to deliver a report on the incident before the regulatory agency can permit Taipower to restart the 636-MW BWR. Even though AEC had completed its review of the root cause reports submitted by Taipower and Areva in April, the committee has yet to schedule a time for the AEC to deliver the report. Chou said AEC had issued 10 requests to the committee since the review was completed in April. DPP Legislator Cheng Li-chun said an interview October 12 that "there is no reason to rush to schedule this report due to a short-term situation or scare tactics about power shortages." "Even if its operation was restored, Chinshan-1 can only operate for 15 months before its space in its spent fuel pool will be exhausted," said Cheng, who added that "it would be less risky simply to decommission it earlier." Cheng also stated that she accepted the findings of the TaipowerAreva report, which was conducted by "an independent third party." She said: "The potential risks of a start-up after such an unprecedented incident justify an independent study by a third party agency not affiliated with Taipower or the government." Cheng also stated that questions regarding Chinshan's future operation — including decommissioning, restart of Chinshan-1 and spent fuel storage — "should be addressed in a comprehensive and deliberative process." KMT Legislator Chen Pi-han, the other co-convenor of the committee, said in an interview October 12 that it was unlikely she would schedule AEC to deliver the report on the fuel assembly incident during the current session. Chen also urged the Executive Yuan, which is Taiwan's Cabinet, and the Legislative Yuan "to have mutual respect and the Executive Yuan should not take any action on Chinshan before the Legislative Yuan has approved the special report." Chen said her committee has several tasks to complete, including its review of AEC's proposed budget, before the last session of this Legislative Yuan ends December 15. Copyright © 2015 McGraw Hill Financial 7 Lawmakers will end the session early to campaign before the January 16 national elections, in which voters will choose a new president and legislators. "I doubt whether there will be time to schedule a meeting on controversial issues," Chen said. — Dennis Engbarth, Taipei Japanese regulator to consider revising fire safety regulations Japan’s Nuclear Regulation Authority, or NRA, might develop regulations to address the risk of fires caused by high energy arc faults, or HEAFs, because such fires can be associated with earthquakes, Gyo Sato, NRA’s director for regulation planning, said at a press briefing in Tokyo October 7. The US NRC's Office of Nuclear Regulatory Research, RES, said in an August 2013 report on its research activities in fiscal years 2012 through 2014 that "[c]atastrophic failures of energized electrical equipment referred to as high energy arcing faults (HEAF) have occurred in nuclear power plant (NPP) components throughout the world. HEAF typically occur in 480V and higher electrical equipment and cause large pressure and temperature increases in the component electrical enclosure. These increases in pressure and temperature could ultimately lead to serious equipment failure and secondary fires and could put the NPP at risk." The Organization for Economic Co-operation and Development's Nuclear Energy Agency, or NEA, has identified 50 HEAFs that have occurred at nuclear power plants worldwide, Kunio Onisawa, NRA's supervisor for systems safety, said in a statement to the comissioners at the regulator's October 7 meeting. Two of the four HEAFs in Japan occurred after a magnitude 9 earthquake on March 11, 2011, Onisawa said in his statement. One of these fires occurred at Tokyo Electric Power Co.’s Fukushima I-1 reactor. In the second event that day, two high-voltage switch gear systems simultaneously caught fire at Tohoku EPC’s Onagawa-1 BWR. The fire subsequently spread to 10 other switch gear systems via power cable ducts. As a result, a pump in the residual heat removal system was inoperative for a short period, NRA said in an October 7 statement. RES said in its 2013 report: "Most recently, the United States has experienced events at Palo Verde Nuclear Generating Station in 2013, H.B. Robinson Steam Electric Plant in 2010, and Columbia Generating Station in 2009. Discussions at the OECD Fire Incidents records exchange meetings indicate similar HEAF events have recently occurred in Canada, France, Germany, and most recently at Japan’s Onagawa NPP during the earthquake and tsunami of 2011." Japan's NRA has concluded that the Onagawa-1 HEAF was one of the most risky of such events that have occurred in Japan, according to a staff report submitted to the NRA commissioners October 7. Another HEAF occurred at Tepco’s Kashiwazaki-Kariwa-3 BWR in July 2007, when an electrical transformer caught fire after a magnitude 6.8 offshore earthquake struck the unit. NEA is conducting tests on the issue at the US National Institute of Standards and Technology, or NIST, in Maryland, Onisawa said. NEA has said that its HEAF research program is scheduled to be conducted INSIDE NRC OCTOBER 19, 2015 from July 2012 to December 2015. NEA's multinational program includes France, Germany, Japan, South Korea, Spain and the US. RES said in its report that the main objective of the NIST testing project — known as Joint Analysis of Arc Faults, or Joan of Arc — "is to perform experiments to obtain scientific fire data on the HEAF phenomenon known to occur in NPPs through carefully designed experiments. The goal is to use the data from these experiments and past events to develop a mechanistic model to account for the failure modes and consequence portions of HEAFs. These experiments will be designed to improve the state of knowledge and provide better characterization of HEAF in the fire probabilistic risk assessment and National Fire Protection Association 805 license amendment request applications." About one-third of US power reactors are or will be transitioning to a voluntary alternative risk-informed set of fire protection requirements, known as NFPA 805 after the standard on which they are based. Before incorporating the new safety requirements into NRA regulations, NRA Chairman Shunichi Tanaka, during the October 7 NRA meeting, instructed Sato to first interview engineers at Japanese power companies to find whether they have developed any new antiHEAF measures. Onisawa told the NRA commissioners October 7 that his team had noted that there is a risk of HEAF event occurrence after major earthquakes. NRA intends to conduct its own research, including analyzing test results from NIST, until March 2017, when Japan’s fiscal 2016 ends, Onisawa said, adding that NRA intends to publish test results and analyses, including some of those conducted by NRC. — Shota Ushio, Tokyo Blayais-3 and -4 reactors restarted after ASN 10-year reviews Two reactors at the Blayais nuclear power plant have restarted after being approved by regulator ASN to resume operation, having completing their scheduled ten-year inspections, ASN said in statements October 7 and October 15. Blayais-3 was shut from July 2014 to September 29 for the inspection, ASN said in a statement October 7. Blayais-4 was shut from May 23 to October 14, the regulator said in a statement October 15. ASN considers a reactor to have restarted when it reaches 100% of its capacity. Environmental regulation in France requires nuclear operators to conduct a review of the reactors’ safety every ten years. The operator must submit a final safety review to ASN, which will then make a final decision on the reactors future operation. ASN said in both its statements: “In the next six months, EDF will send to the government and ASN a report containing the conclusions of the safety review .... ASN will analyze the report and then take a position on the continued operation” of Blayais-3 and -4. Pressure tests were conducted on the reactors’ primary circuits during the outages. The operator also tested the containment buildings and assess the integrity of the reactor pressure vessels by verifying the vessels' Copyright © 2015 McGraw Hill Financial 8 welding quality. While a final safety report has not been submitted, ASN said the results of the inspection of the primary circuits were “satisfactory," and they were requalified for an additional 10 years. ASN said the reviews went “smoothly," although there had been “difficulties in the supply of material and human resources” given both reactors were inspected simultaneously. Blayais-3 was shut for 14 months, 9 months longer than Blayais-4. ASN said a delay in the reviews occurred at the end of 2014 when Areva did not provide “all the required safety justifications” on the new steam generators to replace the original ones at Blayais-3. Notably, ASN said it required further testing to prove the mechanical properties of some materials and that it said it needed to verify the control methods in place to detect potential defects in the generators. ASN said in July that it had authorized EDF to install new steam generators. In addition, ASN said it noted a number of incidents at both plants during the shutdown, with three INES-1 anomalies at Blayais-3 and one INES-2 incident at Blayais-4 with the accidental exposure of a worker to an ionizing radiation dose. (INRC, 7 Sep, 6). INES-1 is the lowest level of incident on the International Nuclear and Radiological event scale. It is characterized as an anomaly, as opposed to an incident (INES-2) or a serious incident (INES-3). The scale rises to 7, which represents a major accident. — Benjamin Leveau, London Watts Bar-2...from page 1 Bar-2 is ready to operate, NRC said in the letter to TVA. Among the items remaining open are fire protection deficiencies, which will be addressed during additional inspections, NRC said. The agency will also check to ensure that TVA has properly implemented an emergency lighting system and pre-operational test programs, it said. An operational readiness assessment inspection in June and July concluded that the Watts Bar plant was prepared for dual-unit operation (INRC, 10 Aug, 1). The operational readiness inspection reviewed management oversight, control of safety-significant activities, operator training and readiness, and corrective action program implementation for Watts Bar-2, NRC said in slides prepared for a July 27 meeting. The inspection was required before NRC could issue the readiness letter. If issued, it would be the first operating license for a US power reactor under NRC's traditional two-step licensing process since February 1996, when the agency approved the operations of Watts Bar1. NRC has since issued five combined construction permit-operating licenses, or COLs, under alternate licensing regulations; four reactors with COLs are under construction in Georgia and South Carolina. Those reactors are expected to come online between mid-2019 and mid-2020. — William Freebairn, Washington INSIDE NRC OCTOBER 19, 2015 Pilgrim ...from page 1 $896.4 million in the Pilgrim decommissoning trust fund at the end of last year and projected a fund balance of about $1.27 billion prior to decommissiong the unit after 2032. It also estimated that about $787.9 million would remain in the Pilgrim trust fund "after decommissioning." “We don’t have a cost estimate associated with [decommissioning] Pilgrim,” Mohl said. The company estimates the cost to complete decommissioning of Vermont Yankee, a 635-MW BWR, will be “about $1.25 billion," he said. Vermont Yankee was shut permanently at the end of December, about 16 months after Entergy said the plant was unprofitable to operate in the New England market. Under the Safstor decommissioning option being used at Vermont Yankee, a plant is placed in a safe, stable condition for as long as 60 years until decommissioning work is completed. Entergy has pledged it will "seek NRC approval to commence major decommissioning activities within 120 days after it has made a reasonable determination that the funds in the nuclear decommissioning trust are adequate to complete decommissioning and remaining spent nuclear fuel management activities," the company said in a December 19 statement. Martin Cohn, a Vermont Yankee spokesman, said in an October 16 email that the unit's decommissioning trust fund totaled about $599 million as of September 30. Mohl said during the press conference that Entergy will decide by the first half of 2016 whether to carry out refueling and maintenance at Pilgrim that is scheduled for the spring of 2017. If a decision is made not to refuel Pilgrim, Mohl said the unit would be permanently shut and placed in Safstor, which can last for up to 60 years. He did not specify when the unit would be shut if it is not refueled in 2017. Entergy will announce by month's end whether it will shut its 849MW FitzPatrick in New York, which "is facing similar economic situations" as Pilgrim, Mohl said. Pilgrim began operating in 1972. Its license was renewed in 2012, allowing it to operate until 2032. Patricia Kakridas, an Entergy spokeswoman, said in an October 14 email “it is premature” to discuss when the company will file a postshutdown decommissioning activities report, or Psdar, with NRC. “Once a decision is made in terms of the timing of the shutdown, we will have a better idea of what filings and corresponding deadlines we must meet,” Kakridas said. NRC Region I spokesman Neil Sheehan said in an October 14 email that “Entergy will have to file a notification with the NRC once the reactor is permanently shut down and another once the last fuel is removed from the reactor.” He added that “Vermont Yankee did both in one submittal.” In addition, he said, Entergy is required to file a Psdar with NRC “within two years after the unit ceases operations. In the case of Vermont Yankee, that plan was actually filed prior to the plant’s shutdown.” Mohl said during the press conference that another factor in the company's decision to shut Pilgrim was the estimated cost of $45 million to $60 million that would be required to bring the plant into compliance with NRC requirements to remediate issues that prompted Copyright © 2015 McGraw Hill Financial 9 NRC earlier this year to move Pilgrim to the agency's highest level of oversight — short of forcing the plant to shut until safety issues are addressed — as a result of recent operational issues. Entergy “is fully responding to the column 4 performance gaps that resulted in the downgrade by NRC,” he said. Plants are subject to increasingly greater oversight as they move to higher-numbered columns in NRC's five-column reactor oversight process. Pilgrim was moved to column 4 from column 3 due to a white inspection finding that "highlights the continuing weaknesses in the implementation of Entergy's program for identifying, evaluating and resolving problems" at the unit, NRC Region I Administrator Daniel Dorman said in a September 2 statement announcing the increased agency oversight. The unit, which has received additional oversight since 2013 due to unplanned reactor shutdowns, was moved to column 4 in the agency's reactor oversight process, retroactive to the first quarter, Dorman said in a September 1 letter to Entergy. Senator Edward Markey, a Massachusetts Democrat and member of the Senate Environment and Public Works Committee, which has oversight of NRC, said in an October 15 letter to NRC Chairman Stephen Burns the agency “must ensure that Entergy has, and is spending, resources sufficient to guarantee the safe and secure operation” of Pilgrim. Markey, a long-time nuclear power critic, said that “especially if the reactor will be continuing to operate until 2019, Entergy must work diligently to resolve the safety issues that caused NRC to place it” in column 4. The letter was cosigned by Massachusetts’ other Democratic Senator, Elizabeth Warren, and all nine of the states’ House members, who are Democrats. Sheehan, in an October 15 email, said: “Entergy has emphasized to the NRC its commitment to safe plant operations until Pilgrim shuts down by sometime in 2019. The company has also told us it intends to get ready for and support NRC inspection activities associated with the plant’s recent transition” to column 4. Sheehan added: “NRC will ensure that Pilgrim abides by its safety commitments. In the near term, we will conduct inspections and provide oversight consistent with that required of a plant in its current status. The agency will keep close watch on Pilgrim’s performance through the end of its operational life.” Lauren Burm, Pilgrim's spokeswoman, said in an October 15 email, in response to Markey's letter: "We are continuing with the safe operation of the plant under the watchful eye of independent inspectors at the NRC. We will remain compliant with all regulations and inspections, up to and including all requirements of the decommissioning process." Burm added: "We remain confident that Pilgrim continues to be a safely operated plant with highly professional and well-trained employees." — Jim Ostroff, Washington INSIDE NRC OCTOBER 19, 2015 Copyright © 2015 McGraw Hill Financial 10
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