October 26, 1999

MEMORANDUM TO:

FROM:

SUBJECT:

Alan Madison Performance Assessment Section Division of Inspection Program Management, NRR

Roy Mathew Inspection Program Branch Division of Inspection Program Management Office of Nuclear Reactor Regulation

REVISED OVERSIGHT PROCESS: SUMMARY OF THE OCTOBER 13, 1999 MEETING WITH THE NUCLEAR POWER INSTITUTE TO DISCUSS THE CONTINUED DEVELOPMENT OF PERFORMANCE ASSESSMENT PROCESS AND INSPECTION PROGRAM IMPROVEMENTS

On October 13, 1999, a public meeting was held between the NRC and the NEI to

continue exchanging information and views in further developing the concepts sent to the

Commission for improving the process for overseeing the safety performance of nuclear power

reactors. The meeting agenda, a list of those who attended the meeting, a copy of written

information exchanged at the meeting, and summary minutes are attached.

Attachments: As stated

Contact: August Spector 301-415-2140

Distribution: Central Files PUBLIC IIPB R/F M. Thadani, NRR DIPM R/F

qq~f(

Itf F3DOCUMENT NAME: G:\IPB\IIPB Misc\meetingsumml 013.wpd To receive a copy of this document, indicate in the box: "C" = Copy without enclosures "E" = Copy with enclosures

"N" = No copy *see previous concurrence

OFFICE IIPB:DIPM* I IPB:DIPM NAME RMathew AKSpector DATE 10/21/99 1012 /99

OFFICIAL RECORD COPY

I U

MEMORANDUM TO: File

FROM: Roy Mathew Inspection Program Branch Division of Inspection Program Management Office of Nuclear Reactor Regulation

SUBJECT: REVISED OVERSIGHT PROCESS: SUMMARY OF HE OCTOBER 13, 1999 MEETING WITH THE NUC AR POWER INSTITUTE TO DISCUSS THE CONTINUED VELOPMENT OF PERFORMANCE ASSESSMENT PROC SS AND INSPECTION PROGRAM IMPROVEMEN

On October 13, 1999, a public meeting was held between th NRC and the NEI to

continue exchanging information and views in further developin the concepts sent to the

Commission for improving the process for overseeing the s ety performance of nuclear power

reactors. The meeting agenda, a list of those who atte ded the meeting, a copy of written

information exchanged at the meeting, and summ minutes are attached.

Attachments: As stated

Contact: August Spector 301-41 5-21 40

Distribution: Central Files PUBLIC PIPB R/F M. Thadani, NRR

DOCUMENT NAME: etingsumml0l3.wpd To receive a copy of is document, indicate in the box: "C" = Copy without enclosures "E" = Copy with enclosures "N" = No co py ithe b :" p y

OFFICE IIPB:[)PM IIPB:DIPM I PBDM NAME RM hew AKS ector AMADISON DATE- 1 /99 10/ /99 10/ /99

OFFICIAL RECORD COPY

Public Meeting Minutes

Date: October 13, 1999

Time: 8:00 a.m. to 2:30 p.m.

Topic: NRC/NEI MEETING TO DISCUSS THE CONTINUED DEVELOPMENT OF PERFORMANCE ASSESSMENT PROCESS AND INSPECTION PROGRAM IMPROVEMENTS

Attendees: See Attached Listing

Items Distributed: See attachments

Overview:

For NEI and the NRC to discuss and review the NRC's development of performance assessment process and inspection program improvements. Participants shared progress by the NRC's Transition Task Force (TTF) on the new Regulatory Oversight initiative and gained input from NEI and the public.

Issues Discussed:

Operating Reactor Assessment Program

NRC discussed the organization, content and key highlights of changes in draft Manual Chapter (MC) for Operating Reactor Assessment Program. NRC distributed a copy of the MC to the participants and requested any comments to be provided for discussion at the October 27, 1999 meeting (see attachment)

Manual Chapter 0360

NRC discussed the draft staff guidelines and criteria for assessment and review of plants that are not under the routine reactor oversight process. The participants shared their views regarding the need for developing performance indicator reporting guidelines for plants that are in 0350 process and during extended shutdown conditions. NRC distributed a copy of the MC to the participants and requested any comments to be provided for discussion at the October 27, 1999 meeting (see attachment)

Enforcement Guidance for Performance Indicator (PI) Reporting

The NRC discussed PI reporting requirement and proposed revision to the pilot program Enforcement Guidance Memorandum (EGM) for pilot plants. The Proposal would allow a 21day grace period after the Pis were initially submitted (within 14 days) during which errors could be corrected without 50.9 being enforced. 'Proposal would also allow licensee identified errors that do not result in a threshold being crossed to not be treated as violations of 50.9. The NEI and industry participants stated that such a grace period would likely result in rework on their part to re-verify the PI results, without much value added. NRC also discussed the proposed revision to the pilot EGM that would extend the guidance past the end of the pilot, and address the historical data submittals for all of the plants in January 2000.

Physical Protection

The NEI and other industry participants discussed protected area security equipment unavailability performance Indicator, particularly Intrusion Detection System (IDS). They stated that potential for 5% of the plants being outside the green band. They perceive an inordinate number of plants being outside the green band when all plants report their PI data in January, 2000. NEI proposed to change the threshold for equipment availability PI in conjunction with another PI relating to the unavailability of a particular zone. The NRC stated that threshold and method of calculating this PI will be discussed at the October 22, 1999 meeting. The NEI stated that specific shadow pilot plant data would be provided to the staff for review.

The NEI also discussed their effort in developing a strawman for the safeguard significance determination process flow chart. They stated that the results will be discussed with the NRC at the October 27, 1999 meeting.

Supplemental Inspection Program

NRC discussed three alternative approaches for dealing with the inspection findings that result from supplemental inspections. NRC and Industry participants agreed for further discussion at the October 27, 1999 meeting.

Corrective Action Guidance Document

The NEI/INPO stated that they are making progress in the development of a corrective action guidance document. NRC pointed out that the guidance document should provide the attributes to determine an effective corrective action program including root cause and extended condition determination.

Significance Determination Process (SDP)

NRC shared with NEI and Industry participants their plans for bench marking the non-pilot plant SDP work sheets and collection of plant specific risk data. NRC stated that they will discuss the event assessment SDP and procedure at the October 27, 1999 meeting.

Next meeting:

Agreed to hold next public meeting on October 22, 1999 from 8:00 a.m. to noon to discuss PI issues.

Meeting adjourned at 2:30 p.m.

AGENDA FOR OCTOBER 13,1999, NRC/NEI MEETING TO DISCUSS THE CONTINUED DEVELOPMENT OF RISK-INFORMED PERFORMANCE ASSESSMENT PROCESS AND INSPECTION PROGRAM IMPROVEMENTS

• Introduction

• Purpose of Meeting

• Review/Discuss the Risk-Informed Inspection Program and Assessment Process

* Planning for Future Interaction

List Of Attachments

Draft Inspection Manual Chapter 0350 Draft Manual Chapter for Operating Reactor Assessment Program

List of Attendees Public Meeting

October 13, 1999

Nuclear Energiy Institute (NEI) John Butler Tom Houghton

Nuclear Regulatory Commission (NRC) Bill Borchardt, OE Bill Dean, NRR Timothy Frye, NRR Jeff Jacobson, NRR Michael Johnson, NRR Cornelius Holden, NRR Roy Mathew, NRR Bob Pascarelli, NRR Serita Sanders, NRR Joseph Shea, NRR John Thompson, NRR Barry Westreich, NRR

OTHERS William Allen, AEP-Cook Kevin Borton, PECO Cary Gradle, BGE Dennis Hassler, PSEG Nuclear Jack Leveille, NSP Patricia Loftus, Common Wealth Edison Don Olson, Virginia Power Jeff Reinhart, INPO Garret Smith, NPPD-Cooper Bob Steigerwald, NYPA-Fitzpatrick Jim Sumpter, NPPD-Cooper Wade Warren, Southern Nuclear

NRC INSPECTION MANUAL MANUAL CH-LAPTER 0350

STAFF GUIDELINES FOR ASSESSMENT AND REVIEW OF PLANTS THAT ARE NOT UNDER THE ROUTINE REACTOR OVERSIGHT PROCESS

0350-01 PURPOSE

01.01 To establish guidelines for the assessment and review of licensee'perfot-tance, conducting inspections, rand providing restart approval for plants that are not under the routine reactor oversight process.

01.02 To ensure that when a license is not under the routine reactor oversight process that is caused by an extended plant shutdown due to performance problems, that the NRC responds in a clear and predictable manner with a unified and consistent position to the licensees.

01.03 To provide for a record of the major regulatory actions and resolution of technical issues leading to approval for restart and to the eventual return to the routine reactor oversight process.

01.04 To ensure that the public health and safety is assured after plant restart.

0350-02 OBJECTIVES

02.01 To provide a process with guidelines for entering and exiting the restart approval process.

02.02 To ensure that NRR and the regional offices are appropriately involved in restart decisions.

02.03 To establish a process plan for the actions necessary to approve restart and provide an objective basis to justify a return to the routine oversight process.

02.04 To provide a mechanism to communicate issues and corrective actions to the public and interested agencies.

Issue Date: XX/XX/99 - 1 - 0350

0350-03 APPLICABILITY

This manual chapter may be implemented following an extended plant shutdown due to significant performance problems in any of the strategic performance areas, and/or a significant plant event.

For the purposes of this inspection manual chapter, significant performance problems are those that meet the entry conditions for Column 4 or 5 of the Action Matrix contained in Management Directive 8.XX.

This manual chapter and its appendix provide general guidance for NRC oversight of plant restart based on previous experience and should be used for developing the Panel Restart Checklist.

0350-04 RESPONSIBILITIES AND AUTHORITIES

04.,01 ' QDirctor, Office-of Nuclear Reactor Riaulation INRE)

a. Notifies the Executive Director for Operations (EDO) and the Commission, as appropriate, of the NRC actions taken when a nuclear power plant is under the guidance of this manual chapter.

b. Notifies the EDO of the actions required by the proposed Panel Restart Checklist.

04.02 Regional Administrator

a. Decides, in consultation with the NRR Associate Director for Project Licensing & Technical Analysis, whether this manual chapter applies to a specific reactor restart.

b. Discusses with the Deputy Executive Director for Regulatory Programs, the Director of the Office of Enforcement (OE), and the Director of NRR, as appropriate, the need for an order or confirmatory action letter (CAL) specifying the actions required of the licensee to receive NRC approval to restart the plant and on the proposed Panel Restart Checklist.

c. In coordination with the NRR Associate Director for Project Licensing and Technical Analysis, decides whether to establish a Reactor Oversight Panel (henceforth referred to as the Panel).

d. Selects the Chairman of the Panel and establishes the Panel's composition and responsibilities.

e. In conjunction with NRR, reviews and determines the acceptability of licensee's corrective action program.

f. Approves restart of the shutdown plant, following consultation with the EDO and the Director of NRR.

g. Approves termination of the IMC 0350 reactor oversight processes and a return to the routine oversight process.

0350 - 2 - Issue Date: XX/XX/99

04.03 Associate Director For Proiect Licensing and Technical Analysis, NRR

In conjunction with the Regional Administrator, decides whether this manual chapter applies to a specific reactor restart.

04.04 Director, Division of Licensing Project Management, NRR

a. In conjunction with the Chairman of the Panel, coordinates participation in followup conference calls and management discussions to ensure that the Director of NRR and pertinent staff are directly involved, when appropriate, in followup action.

b. Coordinates and implements actions prescribed in the Panel Process Plan (Appendix A, Section B) and the Panel Restart Checklist that are determined to be NRR's responsibility. These include licensing actions, and where applicable, Sappropri-ate NRC Office ýor NRR-.Division irter.ction with other Federal agencies (e.g., Federal Emergency Management Agency (FEMA), Environmental Protection Agency (EPA), Department of Justice (DOJ)) pursuant to any applicable Memoranda of Understanding.

04.05 Chairman, Reactor Oversight Panel

a. Coordinates the Panel's activities and develops the Panel Process Plan and the Panel Restart Checklist to assign responsibilities and schedules for restart actions and interactions with the licensee and outside organizations. (See Section 06.01.b for typical responsibilities of the Panel.)

b. Coordinates and implements those actions prescribed in the Panel Process Plan that have been determined to be the regional office's responsibility. These include, when appropriate, interactions with State and local agencies and with regional offices of Federal agencies.

c. In conjunction with the NRR Director of Project Licensing, coordinates participation in followup conference calls and management discussions to ensure that the Regional Administrator and the Director of NRR are directly involved, when appropriate, in followup action.

0350-05 BACKGROUND AND INITIAL ACTIONS

05.01 Background

An operating commercial nuclear power plant with performance problems may be shut down for a variety of reasons. Licensees may voluntarily or involuntarily place the plant in a shutdown condition due to significant degraded performance or due to a significant plant event.

Issue Date: XX/XX/99 -3- 0350

DIZ4FT.

In general, degraded performance is defined to include one or more of the cornerstones of safety, as defined by MD 8.XX, then the level of NRC actions are governed by Exhibit 3, "Action Matrix" of MD 8.XX. Although not a prerequisite, it is expected that before performance degrades to the threshold for implementation of this manual chapter, the staff will have performed supplemental inspections, including Inspection Procedures XX, "Supplemental Inspection Procedures for Issues Categorized Contained in Column Three of the Assessment Action Matrix," and "Diagnostic Inspection for Issues Categorized in Column Four of the Assessment Action Matrix." The outcomes from these inspections will be important input parameters that can be used to assist the NRC in the evaluation of licensee performance during implementation of this manual chapter.

The Reactor Assessment Process provides for periodic assessment of licensee performance data on a quarterly, mid-year, and end-of-year basis. Therefore, entry into this manual chapter can be made dutring any of these apsessmezit intqrvals,, or: be made based on developing circumstances which would require a more timely and direct assessment of licensee performance.

Once a licensee is under the auspices of this manual chapter, the routine Reactor Assessment Process is suspended. However, an assessment of performance data and inspection findings will continue to be performed by the Panel for the purposes of determining the required level of inspection oversight, and to provide input into other regulatory actions such as enforcement, communications, and public meetings.

The focus of this manual chapter is to oversee and assess licensee performance until such time that the licensee can be returned to the routine Reactor Assessment Process. It is important to understand that the staff should not unnecessarily keep the plant shutdown if there are no risk significant issues or corrective actions that would preclude a return to plant operation and jeopardize public health and safety.

05.02 Initial Actions

Once a plant's performance has been assessed where it is determined that the licensee's performance has crossed the threshold of Column 4 of the Action Matrix, and the plant is in an extended shutdown condition, then the threshold for implementing this manual chapter is met. Upon implementation of this manual chapter and establishment of the Panel, prompt consideration should be given by the Panel to determine if inspection or review activities needs to be conducted to determine if longstanding issues or a significant reduction in the safety margin exists.

When this manual chapter is entered, a Panel Process Plan and Panel Restart Checklist should be developed using the guidance contained in Appendix A, "Generic NRC Restart Review Activities." The Panel Restart Checklist is defined as a matrix of restart issues, that contains a description and status of the issue, NRC status, inspection report documentation, and the corresponding identified root causes and corrective actions that require

0350 - 4 - Issue Date: XX/XX/99

rs Lz-

disposing and/or resolution prior to restart. The Panel Restart Checklist should be focused on those issues that resulted in a performance categorization commensurate with Column Four of the Action Matrix. Appendix A, Section C describes the Panel Restart Checklist.

However, it is important to note that additional issues that are identified during the plant shutdown may be added to the Panel Restart Checklist provided that any one or more of the following conditions is met:

* results in a significant violation of the facility's license, technical specifications, regulations, or orders under any mode of plant operation;

* results in a loss of the licensee's ability to maintain and operate the facility in accordance with the design and licensing basis;

* results in a condition where NRC management lacks reasonable assurance that the licensee can or will conduct its activities without undue risk to public health and safety; and

* represents a failure of licensee management controls to effectively address previous significant concerns to prevent recurrence.

The Panel, NRR, and the applicable regional office should discuss the specific circumstances for adding issues to the Panel Restart Checklist. Additional issues are defined as any issue that is unrelated to the initial reason(s) for the plant shutdown, but is determined to be risk-significant. Any issue that is characterized as white, yellow, or red as determined by the SDP, has enough risk significance to be considered a restart issue. The Regional Administrator and the NRR Associate Director for Project Licensing and Technical Analysis will be informed of the circumstances and the risk significance of the situation to plant safety and operation.

0350-06 OVERSIGHT REVIEW ACTIVITIES

06.01 Reactor Oversiaht Panel

a. Membership. For each plant restart subject to oversight consistent with this manual chapter, the Regional Administrator, in coordination with the NRR Associate Director for Licensing Project Management, decides whether to establish the Panel. The Regional Administrator normally establishes the composition of the panel and its responsibilities in writing. The panel will typically consist of the following individuals or those in similar positions:

f! Director, regional office Division of Reactor Projects (DRP) (Chairman)

Issue Date: XX/XX/99 - 5 - 0350

-r M ::T

"* Director, responsible NRR Project Directorate (Vice

Chairman)

"* Responsible regional office DRP Branch Chief

* Regional office Division of Reactor Safety (DRS) Branch Chief

* Responsible Project Manager, NRR

* Responsible Senior Resident Inspector

1. Senior Risk Analyst, Region

Members can be added to or removed from the panel, as appropriate, depending on the specific details of the problems leading to the plant shutdown and the matters to be evaluated before restart is authorized.

b. Responsibilities of the Reactor Oversight Panel.

1. Review all available information directly related to the reason for the plant shutdown for the past 4 quarters of plant operation. This includes a review of performance indicator data, inspection findings, and a review of docketed correspondence from the licensee.

2. Develop the Panel Process Plan and the Panel Restart Checklist. The Panel Process Plan should include a plan for implementation of the Checklist and modify it as needed to ensure that all risk significant performance issues directly relating to the plant shutdown, including extent of condition, are resolved or dispositioned before restart.

3. Maintain an ongoing overview of licensee performance throughout the corrective action process to include periodic meetings among members of the panel to discuss the licensee's plans for restart.

4. Determine the inspection resources necessary to review identified risk significant issues for restart.

5. Assess the adequacy of the licensee's corrective action or improvement program and the ability of the licensee to self-identify problems.

6. Assess the physical readiness of the plant for restart.

7. Periodically provide NRC management and the Commission, if requested, briefings and updates of the status of the licensee's progress, corrective actions, and overview of licensee performance.

8. Conduct periodic meetings with the licensee to discuss progress toward satisfactory completion of the licensee's restart program. Depending on the reason for the plant

0350 - 6 - Issue Date: XX/XX/99

DRA-FT

shutdown, meetings with the licensee may be held near the facility. These meetings are usually open for public observation, but not participation. A public meeting may be scheduled after the formal meeting with the utility is completed. (See Section 07.04 for public participation guidance)

9. Based on the satisfactory completion of the pre-startup portion of the licensee's restart program, provide a written recommendation and the basis for the recommendation to the Regional Administrator and Director of NRR for approval to restart.

10. Provide post restart oversight of licensee performance until there is a return to the routine oversight process.

11. Provide a written recommendation to the Regional Administrator and Director, NRR for the return to the .routine oversight process.

06.02 Panel Process Plan

The Panel should develop a Plan that provides the following: (a) the specific plan by which the NRC will determine the licensee's readiness for restart; (b) risk significant issues related to the reason for the shutdown that must be resolved before restart (i.e. restart issues); and (c) who has lead responsibility for each action. Items (a) and (b), respectively, correspond to the "Process" and "Issues" portions of the Panel Restart Checklist. Appendix A, Section B of this manual chapter contains generic examples and guidelines of how to construct the plant-specific Panel Restart Checklist. These examples should be-evaluated for applicability to the plant in question. Issues from Appendix A will only be included in the Panel Restart Checklist when they must be resolved before plant restart.

The Plan: (1) ensures there is an adequate inspection plan and that thee is a record to support the restart determination, (2) tracks restart issue status and reference documents which contain the inspection results, associated with the resolution of the issues, (3) addresses new issues, including extent of condition that affect the NRC determination on whether the plant is ready for restart, (4) provides the basis for why selected issues were not resolved before restart, and (5) establishes responsibilities and methodologies for interactions with the Commission, Advisory Committee on Reactor Safeguards (ACRS), media, Federal agencies, Congressional State and local officials, and other stakeholders.

The Regional Administrator, in coordination with the Deputy Executive Director for Regulatory Programs and the Director of NRR, normally have the authority to approve restart. In some instances that involve pre-existing orders, Commission or EDO approval may be required.

Issue Date: XX/XX/99 - 7 - 0350

0350-07 POST RESTART ACTIVITIES

07.01 Coordination of Post Restart Activities

once restart approval is granted, the Panel will remain involved in an oversight capacity for approximately 4 consecutive quarters. This will allow the licensee to re-establish applicable performance indicators (PIs) with current data and also allow the staff to assess licensee performance before a return to the routine oversight process is established.

The Panel should evaluate any self-assessments, docketed responses to inspection findings and program changes, and corrective actions that did not require resolution prior to restart. At the end of each quarter, the Panel will compare this and other licensee performance data to the corresponding NRC response and action levels in the Action Matrix. The Panel should then determine or make adjustments to the appropriate level of NRC oversight .activities. Detailed guidance on post, restart *oversight is discussed in section B.7 of the Appendix.

A final letter documenting the results of its post restart review and oversight efforts should be issued to the Regional Administrator by the panel. The letter should give the basis for the panel's conclusion to terminate its oversight activities and to return the plant to the routine oversight process. Based on the recommendations of the Panel, the Regional Administrator, in consultation with the Director, NRR, and the Deputy EDO for Regulatory Programs will decide whether a return to the routine oversight process is warranted.

0350-08 GUIDANCE

08.01 Coordination of Followup Actions

The focal point for working-level discussions within the NRC for followup actions will be the appropriate Restart Oversight Panel Chairman and the NRR Licensing Project Management Division Director. They should coordinate participation in conference calls, the Panel, and management discussions to ensure that the Regional Administrator, the Director of NRR, and pertinent staff are directly involved, when appropriate. They should coordinate and implement the actions prescribed in the Panel Restart Checklist.

08.02 Commission Involvement

The Commission must be kept adequately informed of the staff's restart actions on a continuing basis. NRR will inform the Commission of the staff's and licensee's restart actions through periodic Commission papers or memoranda to the EDO. On the basis of these interactions between the staff and the Commission, the need for Commission briefings will be determined by the circumstances and the Commission's wishes.

0350 - 8 - Issue Date: XX/XX/99

For those plants requiring Commission approval for restart, the staff should anticipate Commission briefings with licensee participation (a) after a corrective action plan is agreed to and (b) after completion of the OSTI or ORAT about a month before plant restart is anticipated. At the final briefing before restart is granted, the NRC staff should provide its basis for licensee readiness for restart.

08.03 Independent Review

The NRR staff should keep the ACRS informed of NRC's actions involving plants using this inspection manual chapter. Normally this is performed through the use of briefings. The Panel should coordinate and plan any briefings to the ACRS, as requested.

08.04 Stakeholder Participation

The need for, and, level of NRC participation with the, stakeholders will be determined by NRC management on a case-by-case basis and will be incorporated into the actions necessary for restart. The level of appropriate stakeholder participation varies greatly from situation to situation and depends on the cause of the shutdown, interest of local citizens, interest of elected officials, and concerns of other government agencies. Stakeholder meetings have proven to be a valuable vehicle for public participation in the restart process. These meetings, which are often transcribed, are held to receive comments on licensee plans and to describe the results of the NRC review of licensee activities. Stakeholder meetings in the local area should be strongly considered to hear concerns and comments on the licensee's restart activities and to factor applicable concerns and comments into the NRC's restart review.

8.05 Other AQencies and Government Orcranizations

The chairman of the Panel will hold an open dialogue with local and state government officials and agencies. The Panel Chairman should ensure that inquiries are promptly addressed from the Office of Congressional Affairs (OCA), Congress, local and State Government agencies, and various Federal agencies. Appropriate caution should be exercised to avoid the release of predecisional, proprietary, or safeguards information when responding to inquiries. In cases when interest extends to a foreign government (e.g., Canada), the Office of International Programs (OIP) or its designee shall brief the foreign officials if the EDO deems it appropriate.

The decision regarding the licensee's ability to restart will include consideration of the need to involve staff from other Federal agencies, such as FEMA, EPA, and DOJ, and State and local government representatives. Briefings with elected officials and observations of NRC inspections by State representatives have been an effective way of enhancing NRC communication regarding problem plants.

Issue Date: XX/XX/99 -9- 0350

0350-09 RECORDS

It is important to have appropriate documentation of the restart process. The licensee and the NRC staff must understand the reasons for the plant shutdown and the necessary actions to be completed before restart. In addition, information related to NRC and licensee actions, as well as acceptance criteria and confirmatory actions by other agencies and government organizations, must be made available to the public. Generally, information on NRC and licensee actions related to plant restart should be attached to or included in NRC inspection reports. However, other forums, such as public correspondence between the licensee and the NRC or Commission papers, are acceptable. At a minimum, the record developed for the shutdown and restart process shall consists of the following:

1. Licensee docketed correspondence concerning plant performance.

2. Confirmatory action letter (CAL) or order issued to the licensee specifying the accion(s) to be taken.

3. Panel membership and the Panel Process Plan.

4. The Panel Restart Checklist, including any revisions.

5. Interim progress reports (e.g., Commission paper, EDO memoranda).

6. Meeting summaries from Panel meetings and meetings between the NRC and licensee representatives. This includes the basis for why any white, yellow, or red issues were or were not selected as restart items.

7. Inspection reports and related correspondence.

8. Pertinent licensing actions completed by the NRC.

9. Other agency and government actions communicated to the NRC.

10. The basis for restart approval.

11. The basis for the return to the routine oversight process.

All documents relating to the restart process are to be included in the docket file and, to the extent permitted by 10 CFR 2.790, made public in accordance with NRC policy.

0350 - 10 - Issue Date: XX/XX/99

0350-10 REFERENCES

Management Directive 8.XX, The Reactor Oversight Process

Manual Chapter XX, Reactor Assessment

Management Directive 8.3, NRC Incident Investigation Procedures

END

Appendix

A. Generic NRC Restart Review Activities

issue ~ ~ ~ ~ ~ I i~t: A2~/ L.-U~- 11 -Issue Date: XX/XX/9 0.55

A

APPENDIX A

GENERIC NRC RESTART REVIEW ACTIVITIES

A. GENERAL ....................... ......................... A-2

A.l PURPOSE ..... .......... ................. A-2 A.2 OBJECTIVES .................. ..................... A-2

B. PROCESS PLAN .................... ...................... A-2

B.1 AGENCY RESPONSE ............... ................... A-2

B.2 NOTIFICATIONS ................. .................... A-3 B.3 ESTABLISH AND ORGANIZE THE NRC REVIEW PROCESS .... A-3

B.4 REVIEW IMPLEMENTATION ........... ................ A-4 B.4.1 'LicensbeePerformance Improvement'Plan .... A-4

B.4.2 Determine Restart Issues and Resolution A-4

B.4.3 Obtain External Stakeholder Comments .... A-5

B.5 RESTART AUTHORIZATION ........... ................ A-5 B.6 RESTART AUTHORIZATION NOTIFICATION .. ......... . A-6 B.7 POST RESTART OVERSIGHT ............ ............... A-6

C. PANEL RESTART CHECKLIST ............. ................. A-7 C.1 DETERMINE RESTART ISSUES AND RESOLUTION ............. A-7

Issue Date: XXlXXI99 A-1 0350, Appendix A

A. GENERAL

A.1 PURPOSE

To provide guidelines for planning and coordinating NRC activities associated with NRC's oversight of nuclear power plants restarting after an extended shutdown.

A.2 OBJECTIVES

To ensure that NRC oversight efforts are consistently developed, communicated, and implemented. Specific guidance is provided to support the following:

a. using the SDP to screen, prioritize and identify issues requiring resolution prior to restart,

b. tracking, documenting, and followup of non-restart issues copnmensurate with eýstablished inspection prpgram quidance,

c. identifying the level of effort needed to review and approve a plant restart,

d. coordinating, overseeing, and tracking restart-related activities, and

e. coordinating, overseeing, and tracking post restart-related activities.

B. PROCESS PLAN

This section outlines the general NRC restart oversight process. The major process steps are outlined below.

1. Verification of Appropriate Agency Response 2. Verification of Appropriate Notifications 3. Establish and Organize the NRC Review Process 4. Assessment of Licensee Performance 5. Restart Authorization 6. Restart Authorization Notification

These major process steps are broken down into potential tasks and are provided in a menu format. However, only those tasks that are applicable should be selected for incorporation into the Panel Process Plan.

Where appropriate, the typical lead responsible organization is indicated in parentheses next to the task. Where an NRC action responsibility is not indicated, the Panel will determine responsibility. This responsibility may be shared in some cases.

B.l AGENCY RESPONSE

The Panel should focus their restart review efforts on those performance issues and conditions that were identified through the routing reactor oversight process. The performance data, root

0350, Appendix A A-2 Issue Date: XX/XX/99

Pi,;: r

causes, and their apparent risk impact from these issues are to be established early in the process. This information will assist the NRC in characterizing the problems, the appropriate regulatory response, and the adequacy of the licensee's corrective actions. Early management appraisal of the situation is also important to ensure the proper immediate actions are taken.

B.2 NOTIFICATIONS

Notification to industry and public stakeholders of implementation of this manual chapter should be promptly communicated via press releases, letters, and a posting on NRC's INTERNET homepage website. The notification should include the NRC's understanding of the performance issues, performance trend history over the last four quarters, and any other pertinent issue or regulatory concern. With regard to the responsibilities of the Panel, notification to regional and headquarters offices of cognizant Federal agencies should have already been performed in accordance with the guidance in IMC XXX,, "Even-b Response". However, as the review, process continues, additional and continuing notifications may be required.

TASK

a. Issue Daily and Directors Highlight (NRR).

b. Issue preliminary notification (Region).

c. Conduct Commissioner assistants' briefing.

d. Issue Commission paper (Region).

e. Cognizant Federal agencies notified (i.e., FEMA, EPA, DOJ).

f. State and local officials notified (Region).

g. Congressional notification (NRR).

B.3 ESTABLISH AND ORGANIZE THE NRC REVIEW PROCESS

It will be necessary to establish and organize the NRC restart oversight to ensure the effective coordination of resources in evaluating the licensee's readiness for restart. Effective interactions within and outside the NRC are critical to ensure the pertinent issues are properly identified and resolved.

TASK

a. Establish the Panel.

b. Develop the Panel Restart Checklist.

c. Assess available information (i.e. PI data, baseline and supplemental inspection findings, results of risk studies and event analyses, licensee self-assessments, performance improvement plan, and industry reviews).

Issue Date: XX/XX/99 A-3 0350, Appendix A

d. Obtain input from involved parties both within NRC and other Federal agencies such as FEMA, EPA, DOJ.

e. Conduct periodic Regional Administrator briefing (Region).

f. Conduct periodic NRR Executive Team briefing (NRR).

g. Develop the Panel Restart Checklist (Panel).

h. Regional Administrator approves the Panel Restart Checklist.

i. NRR Office Director approves the Panel Restart Checklist (for those issues where NRR has technical lead).

j. Implement the Panel Restart Checklist (Panel).

k. Modify CAL or order as necessary (Region).

B.4, ASSESSMENT QF L;CENSEE.PERFONANCE

Early establishment of the review areas of concern will assist in defining the methods and appropriate level of oversight. Once the licensee has developed its performance improvement plan, the NRC shall review that plan to verify its completeness and adequacy. The NRC will also need to determine which corrective actions will be required to be implemented before restart and those which can be deferred to some later date as long-term, post-restart corrective actions.

B.4.1 Licensee Performance Improvement Plan

TASK

a. (Evaluate) NRC inspection findings including AIT, IIT, or other team inspections performed subsequent to the Panel's formation.

b. (Evaluate) the licensee's performance improvement plan and associated root cause determination and corrective action plans.

B.4.2 Obtain External Stakeholder Comments

Throughout the duration of the plant shutdown, and until the plant is returned to the routine oversight process, solicitation of comments from diverse sources may be appropriate. The decision to solicit comments from a group and the level of participation should be made on a case-by-case basis. Input from these groups should be factored into the restart process as appropriate. If needed, comments concerning the adequacy of state and local emergency planning and preparedness should be obtained from FEMA headquarters through NRR.

TASK

a. Obtain public comments.

0350, Appendix A A-4 Issue Date: XX/XXI99

b. Obtain comments from State and Local Officials (Region).

c. Obtain comments from applicable Federal agencies.

B.4.3 Closeout Actions

When the licensee has completed actions to resolve the restart issues and significant concerns are substantially addressed and complete, the NRC needs to conduct closeout activities to independently verify that corrective actions required before restart are complete and that the plant is physically ready for restart. This section provides actions associated with completion of significant NRC reviews and preparations for restart.

TASK

a. Evaluate licensee's restart readiness self-assessment (Region).

b. Restart issues described in the Panel Restart Checklist are closed.

c. Conduct appropriate NRC restart readiness team inspection(s) (p.g., OSTI, ORAT, SSFI).

d. Develop restart coverage inspection plan (Region).

e. Disposition comments from other parties (Panel).

f. Determine that all conditions of the Order/CAL are satisfied. [If applicable, the NRC and the licensee should clearly understand what actions remain to be completed and what will be required by the licensee to demonstrate their completion (Panel).]

g. Verify the Panel Restart Checklist is complete (Panel).

B.5 RESTART AUTHORIZATION

When the restart oversight process has reached the point that the issues have been identified, corrected, and reviewed, a restart authorization process is begun.

TASK

a. The Panel prepares restart authorization letter to the licensee and basis for restart.

b. Determine that no restart objections from other applicable HQ offices, or Federal agencies exist.

c. Obtain Regional Administrator approval for restart (Region).

d. Obtain NRR Office Director concurrence for restart (NRR).

e. Obtain EDO concurrence for restart when required.

Issue Date: XX/XX/99 A-5 DS 0350, Appendix A

f. Conduct ACRS briefing, if requested (NRR).

g. Conduct Commission briefing, if requested (NRR).

h. Obtain Commission approval or concurrence for restart, when required.

i. Regional Administrator authorizes restart [note: once approval is given, external stakeholders should be notified by phone and provided a copy of the restart authorization letter and press release, as applicable.]

B.6 RESTART AUTHORIZATION NOTIFICATION

Notify the applicable parties of the restart authorization. Notifications should generally be made using a memorandum or other format consistent with the level of formality required. Communication of planned actions is important at this stage to

,ensurelthat NRC intentions are clearly understood.

TASK

Notify:

a. Commission (if the Commission did not concur in the Restart Authorization) (NRR).

b. EDO (if the EDO did not concur in the Restart Authorization) (NRR).

c. Congressional Affairs (NRR).

d. ACRS (a briefing may be substituted for the written notification if the ACRS requests a briefing) (NRR).

e. Applicable Federal agencies (NRR).

f. Public Affairs (Region and NRR).

g. State and local officials (Region).

h. Congress (OCA)

i. Media (via press release) (OPA)

j. Citizens or groups that expressed interest during the restart approval process (Region).

k. International Programs for sites whose emergency planning zones cross international boundaries (OIP).

B.7 POST RESTART OVERSIGHT

After the NRC has granted approval for the licensee to resume reactor operations, the Panel should remain involved in an oversight capacity for approximately 4 consecutive quarters. At the end of each of the four performance quarters, the Panel should

0350, Appendix A A-6 Issue Date: XX/XX/99

evaluate the performance data and any inspection findings and make subsequent step adjustments in the appropriate level of NRC oversight activity.

TASK

a. Issue an inspection plan for the next six months, including identifying any inspections in areas not covered by the PIs and that are beyond the normal baseline inspection program.

b. Determine if adjustments are needed to the level of required inspection oversight on a quarterly basis. Use the Action Matrix to aid in the determination of required inspections.

c. Monitor PI data and inspection findings on a monthly basis to assess whether corrective actions implemented since startup were effective to prevent recurrence.

d., Review self assessments- docketed correspondence, pe-rformance improvement plan changes, and long-term corrective actions not implemented before restart.

e. As appropriate, conduct public meetings with the licensee to discuss performance improvements. Meetings with the public should also be considered.

f. Provide a written recommendation to the Regional Administrator to return the plant to the routine oversight process.

g. Regional Administrator approves return to the routine oversight process and terminates the restart oversight process.

C. PANEL RESTART CHECKLIST

C.1 Determine Restart Issues and Resolution

The establishment of the issues that require resolution before restart requires a clear understanding of the risk-significance of the issues and the actions required of the NRC and the licensee to address them. It is important to note that the Panel has oversight of the assessment process prior to the return to the ROAP. Therefore, the scope of what issues to be considered for the Panel is not limited by strategic area or by cornerstone, but by their importance to protecting the public health and safety.

The Panel Restart Checklist should contain: (1) a listing of restart issues and their risk significance sorted by cornerstone, (2) a brief description of the issue, (3) who has the lead (both

NRC & licensee), (4) issue status, (5) corrective action -status, (6) closure completion date, and (7) the corresponding inspection report number.

The criteria for determining what issues get added to the list are:

Issue Date: XX/XX/99 A-7 0350, Appendix A

* result in a significant violation of the facility's license, technical specifications, regulations, or orders under any mode of plant operation;

* result in a loss of the licensee's ability to maintain and operate the facility in accordance with the design and licensing basis;

* result in a condition where NRC management lacks reasonable assurance that the licensee can or will conduct its activities without undue risk to public health and safety; and

* represent a failure of licensee management controls to effectively address previous significant concerns to prevent recurrence.

TASK

a. Review/evaluate licensee generated restart issues to determine completeness (Panel).

b. Perform independent NRC identification of restart issues (Region).

c. Both NRC and the licensee should come to agreement on the restart issues.

d. Evaluate the licensee's plan for resolving restart issues (Panel). Use guidance contained in Section B of this

Appendix.

END

Issue Date: XX/XX/990350, Appendix A A-8

NRC INSPECTION MANUAL MANUAL CHAPTER XXXX

OPERATING REACTOR ASSESSMENT PROGRAM

1. PURPOSE

The Revised Reactor Oversight Process is the result of an effort by the NRC to provide improvements in the NRC's inspection, assessment, and enforcement programs. The result .s a regulatory framework (exhibit 1) that is more objective, understandable, and predictable -and focuses agency resources on areas that have the greatest impact on safe plant operation. The Operating Reactor Assessment Program evaluates the overall safety performance of licensees operating commercial nuclear reactors and communicates those results to licensee management, members of the public, and other government agencies.

The assessment program collects information from the inspection program and performance indicators in order to enable the agency to arrive at objective conclusions about the licensee's safety performance. Based on this assessment information, the process determines the appropriate level of agency response including supplemental inspection, demands for information, confirmation of specific corrective actions, or orders, up to and including a plant shutdown. The assessment information and proposed agency response are then communicated to the public. Follow-up agency actions, as applicable, are conducted to ensure that the corrective actions designed to address performance weaknesses were effective.

2. OBJECTIVES

A. To collect information from inspection findings and performance indicators.

B. To arrive at an objective assessment of licensee safety performance using perfofmance indicators and inspection findings.

C. To assist NRC management in making timely and predictable decisions regarding appropriate agency actions used to oversee, inspect, and assess licensee performance.

D. To provide a method for informing the public of the NRC's assessment of licensee performance.

E. To provide a process to follow up on areas of concern.

3. APPLICABILITY

This chapter applies to all operating U.S. commercial nuclear reactors except those sites reactors that are under IMC 0350, Staff Guidelines for Agency Review of Plants with Performance Issues Not Periodically Assessed under the Routine Reactor Oversight Process.

Page 1 of 25

4. DEFINITIONS

A. Significance Determination Process (SDP) - A process that applies risk characterization to inspection findings such that the overall licensee performance assessment process can compare and evaluate the findings on a significance scale similar to the performance indicators.

B. Degraded Cornerstone - A cornerstone that has two or more white inputsor one yellow input.t oeyl

Note: Degraded cornerstones may vary throughout the period4. .

(e.g. Is' quarter inputs are IE+MS, 21 quarter inputs are 1E+BI, 3d quat Wer inputs are IE+MS, 4th quarter inputs are BI+MS)

MS = Mitigation Systems Cornerstone Degraded IE = Initiating Events Cornerstone Degraded BI = Barrier Integrity Cornerstone Degraded

C. Repetitive Degraded Cornerstone. A cornerstone that is degraded (2 white inputs or 1 yellow input) for five or more consecutive quarters

D. Multiple Degraded Cornerstone. Two or more cornerstones that are degraded for five or more consecutive quarters.

E. Annual Assessment Cycle. A combination of twelve months of assessment inputs (4 sets of PI data that is reported quarterly and 12 months of inspection findings) that is evaluated at the end-of-cycle review.

5. RESPONSIBILITIES AND AUTHORITIES

A. Executive Director for Operations (EDO). Oversees the activities described in this manual chapter.

B. Director, Office of Nuclear Reactor Regulation (NRR). Implements the requirements of this manual chapter within NRR.

1. Develops assessment program policies and procedures.

"2. Ensures uniform program implementation and effectiveness.

3. Concurs on all agency actions that deviate from the Action Matrix as described in paragraphs 6.C.2 and 6.C.3 of this manual chapter.

Page 2 of 25

A - - .

C. Regional Administrators

1. Implement the requirements of this manual chapter within their respective regions.

2. Confer with the Director of NRR when contemplating agency actions that deviate from the Action Matrix.

3. Develop and issue licensee annual assessment letters, which contain a concise assessment of licensee performance using performance indicators and NRC findings.

4. Direct reallocation of inspection resources within the regional office based on the,, Action Matrix. , /

5. Establish a schedule and determine a suitable location for the annual public meeting with the licensee to ensure a mutual understanding of the issues discussed in the annual -assessment letter.

6. Suspend the end-of-year performance review for those plants that have been transferred to the Inspection Manual Chapter 0350 process.

D. Chief, Inspection Program Branch

1. Develops guidance to the regional offices to ensure the uniformity and adequacy of regional implementation of the program.

2. Collects feedback from the regional offices and recommends improvements to the Operating Reactor Assessment Program.

6. BASIC REQUIREMENTS

A. Assessment Process.

The reactor assessment process (exhibits 2 and 3) reviews licensee performance over a 12-month period . Each review is used to evaluate the performance indicators and NRC inspection findings at different management levels and frequencies in order to assess the plant's safety performance.

A continuous review is conducted by the regional staff. Inspections are conducted on an continuous basis in accordance with IMC 2515 and performance indicators are reported quarterly by the licensee. Primary assessment activities occur at quarterly intervals. However, resident and regional inspectors shall maintain a continuous awareness of plant performance. The inspectors will use the SDP to evaluate inspection findings and be aware of non-SDP enforcement actions. If a significant issue should arise, the regional office shall address the issue without waiting until the end of the quarter. Regional management should notify the licensee in writing if additional inspection activities are scheduled to occur within the current quarter via an

Page 3 of 25

Assessment Follow up letter (exhibit 5). A variety of reviews are performed which are described below:

1. Quarterly. The quarterly review utilizes PI data submitted by licensees and inspection findings compiled over the previous twelve months to determine appropriate agency actions based on the results of the assessment inputs.

The review should be completed within four weeks of the end 6f the previous quarter. The BC will review the PIs and the inspection findings contained in the plaat issue matrix (PIM) to identify any changes in performance trends. The BC shall utilize the action matrix to identify the :scope of NRC actions and notify the licensee via an Assessment Follow Up letter when either: a) assessment input thresholds are crossed or b) when an assessment input enters the green band and it has a significant impact on the inspection plan (i.e. scheduled supplemental inspections will not be performed due to input reentering the licensee response band). This letter should be issued within two weeks of completing the quarterly review. Additionally, for plants that have repetitive degraded cornerstones, multiple degraded cornerstones, multiple yellow inputs, or one red input, consideration shall be given at each quarterly review for 1) transferring the plant to the IMC 0350 process and 2) declaring licensee performance to be unacceptable in accordance with the guidance contained within this chapter.

2. Mid-Cycle. The mid-cycle review utilizes PI data submitted by licensees and inspection findings compiled over the previous twelve months to determine appropriate agency actions based on the results of the assessment inputs. This review is also used to plan inspection activities for the next twelve months.

A Mid-Cycle Review Meeting will be chaired by a Division of Reactor Projects (DRP) or Division of Reactor Safety (DRS) Division Director (DD) or deputy DD and will be staffed by members of the DRP and DRS branches responsible for directing inspection resources. The Action Matrix will be used to determine the scope of agency actions in response to the assessment inputs. The mid-year review will be held at approximately the six-month point of the annual assessment cycle. The mid-cycle review will be completed within four weeks of the end of the second quarter.

When the regions complete the mid-year review they shall issue a letter to each licensee of planned inspection activities for the next year (exhibit 6) and indicate the reason for planned inspections outside the normal baseline inspection. This letter should be sent within two weeks of completing the midyear review.

3. End-of-Cycle The End-of Cycle Review is a comprehensive assessment of licensee performance using all PI and inspection data from the previous 12 months. This review is also used to plan inspection activities for the next twelve months.

Page 4 of 25

a -

The End of-Cycle Review Meeting will be chaired by a DRP or DRS DD. Participants at the meeting will be a senior manager from DRP, DRS, and NRR, the DRP BC, and inspectors and BCs with oversight of significant inspections at the site throughout the year. The Regional Administrator will be expected to participate and provide regional perspective to the review. Representative(s) from the Office of Nuclear Reactor Regulation (NRR) will attend this meeting to ensure a coordinated, balanced, and consistent agency response across the regional offices for a given set of assessment inputs. The end-of-cycle meeting should be held within four weeks of the end of the assessment cycle. The Action Matrix will be used to determine the scope of agency actions in response to assessment inputs.

4. Agency Action Review.

An Agency Action Review Meeting is conducted approximately two weeks after the End-of-Cycle Review by senior NRC managers and is chaired by the Director of NRR. The purpose of the meeting is to ensure a coordinated, balanced, and consistent agency response for a given set of assessment inputs.

Senior NRC management will review and discuss overall industry performance, oversight process performance, and plants with significant performance weaknesses as determined by the Action Matrix. Plants with significant performance weaknesses are those plants that have repetitive degraded cornerstones, multiple degraded cornerstones, multiple yellow inputs, or a red input. This review uses data compiled during the end-of-cycle review and involves a collegial review by NRC management and staff of the appropriateness of agency actions for plants with significant performance issues. The Agency Allegations Advisor, representative(s) from the Office of Investigations, Office of Enforcement, Office of Research, and NRR may attend based on the assessment results. All of the annual assessment letters (exhibits 7,8,9, and 10) shall be sent to the licensee no later than one week after completing the Agency Action Review meeting.

The annual assessment letter shall contain:

a. An statement regarding overall plant performance. b. An enumeration of any PIs or inspection findings that are

outside of the licensee response band. c. A brief discussion of any cross-cutting issues that were a cause

of any inspection findings or PIs that were outside of the licensee response band

d. A discussion of the results of inspection procedure 71152 Identification and Resolution of Problems

e. A statement of any action to be taken by the agency.

Page 5 of 25

5. Commission Meeting. Annually the EDO will brief the Commission to convey the results of the Agency Action Review meeting to the Commission. The Commission should be briefed within eight weeks of the end of the assessment cycle.

B. Action Matrix

The Action Matrix (exhibit 4) was developed using the philosophy that the licensee should be allowed to address degrading performance issues first and agency's action should be pursued based on the effectiveness of the licensee's corrective action and quality assurance programs. The Action Matrix identifies the range of NRC and licensee actions and the appropriate level of communication for varying level of licensee performance. A few terms are used throughout,. the discussion of the Action Matrix. These are:

Regulatory Conference Regulatory conferences between licensees and the agency may be held for a variety of reasons to discuss licensee performance . These may be to discuss inspection findings, PIs, or events. Such conferences may include enforcement conferences, routine meetings between the SRI and licensee, and other meetings.

Licensee Action Anticipated actions by the licensee in response for the appropriate column of the Action Matrix.

NRC inspection The range of NRC inspection activities for the appropriate column of the Action Matrix.

Regulatory actions Range of actions to be taken by the agency according to the appropriate column of the Action Matrix.

Below is a brief discussion of the components of the Action Matrix. Refer to exhibit 4

for a depiction of the Action Matrix.

1. Response

The Action Matrix lists expected NRC and licensee actions based on the inputs to the assessment process. Actions are graded such that the agency becomes more engaged with licensees as performance declines. Listed below are the range of expected NRC and licensee actions for each column of the Action Matrix:

All assessment inputs are green - The licensee will receive only the baselfie inspection program and identified deficiencies will be placed into the licensee's corrective action program. Regulatory Conferences should consist of routine SRI and branch chief interactions with the licensee.

Assessment inputs that results in one or two white inputs in different cornerstones - The licensee is expected to place the identified deficiencies in their corrective action program and perform an evaluation of the root and contributing causes. The licensee's evaluation will be reviewed during

Page 6 of 25

supplemental inspection procedure 95001 Supplemental Inspection for One or Two White Inputs in a Strategic Performance Area. Following completion of the supplemental inspection, the Branch Chief or Division Director should discuss the performance deficiencies and the licensee's proposed corrective actions with the licensee.

Assessment inputs that results in a degraded cornerstone or 3 white inputs to any Strategic Performance Area -The licensee is expected to place the identified deficiencies in their corrective action program and perform an evaluation of the root and contributing causes for both the individual and the collective issues. The licensee's evaluation will be reviewed during supplemental inspection procedure 95002 Supplemental Inspection For One Degraded Cornerstone Or Any Three White Inputs in a Strategic Performance Area. Also, an independent assessment of the extent of condition will be performed by the region using an inspection procedure chosen from the tables contained in Appendix B to Inspection Manual Chapter 2515. Following completion of the supplemental inspection, the Division Director or Regional Administrator should discuss the performance deficiencies and the licensee's proposed corrective actions with the licensee.

Assessment inputs that results in a degraded cornerstone, multiple degraded cornerstones, multiple yellow inputs or a red input - The licensee is expected to place the identified deficiencies in their corrective action program and perform an evaluation of the root and contributing causes for both the individual and the collective issues. This evaluation may consist of a third party assessment. Supplemental inspection procedure 95003 Supplemental Inspection for Repetitive Degraded Cornerstones. Multiple degraded Cornerstones, Multiple Yellow Inputs, or One Red Input will be performed to determine the breadth and depth of the performance deficiencies. Following the completion of the supplemental inspection, the EDO or his designee, in conjunction with the Regional Administrator and the Director of NRR will decide whether additional agency actions are warranted. These actions could include additional demands for information, confirmation of specific corrective actions, or orders, up to and including a plant shutdown. The EDO will then meet with senior licensee management to discuss the performance issues, planned agency actions, and licensee proposed corrective actions. A facility's performance may be determined to be unacceptable and ordered to shutdown if performance declines to a level that meets one or more of the following four criteria:

- Situations in which the NRC lacks reasonable assurance that the licensee can or will conduct its activities without undue risk to public health and safety.

- Multiple significant violations of the facility's license, technical specifications, regulations, or orders.

Page 7 of 25

- Loss of confidence in the licensee's ability to maintain and operate the facility in accordance with the design basis (e.g. multiple examples of safety-significance where the facility was determined to be outside of its design basis, either due to inappropriate modifications, the unavailability of design basis information, inadequate configuration management, or the demonstrated lack of an effective problem identification and corrective action system).

- A pattern of failure of licensee management controls to effectively address previous significant concerns to prevent their recurrence.

In such instances the Commission will meet with senior licensee management to discuss the licensee's degrading performance and the corrective actions which will need to be taken before operation-of the facility can be resumed. The plant will also be placed under the guidance of IMC 0350.

2. Communication

Communication between the licensee and the NRC is based on a graded approach. For decreasing licensee performance, higher levels of agency management will sign the assessment letters and conduct the annual public meeting.

C. Considerations within the assessment process

1) The regional office may elect not to conduct a supplemental inspection for a white finding if the finding was identified as part of a licensee self-assessment and the need for additional inspection is not warranted. If supplemental inspection procedure 95001 Supplemental Inspecdon for One or Two White Inputs in a Strategic Performance Area is not performed, the

regional office must document its reasons in the assessment follow up letter to the licensee. The regional office must document only those considerations listed below that contributed to the decision not to conduct a supplemental inspection. These considerations are:

/

-The effectiveness of the licensee's corrective action program -The adequacy of the licensee's root cause analysis -the prioritization of the licensee's corrective actions with consideration of risk-significance and regulatory compliance -Whether the root cause of the deficiency is limited to a specific event or indicative of a broader programmatic concern -The effectiveness of the licensee's quality assurance program -Recurrences of the same or similar event -The results of recent enforcement action -The results of recent allegations(including harassment and intimidation)

Page 8 of 25

,P A. -;

2) The agency may consider in a few limited situations that an event that results in a red inspection finding is not indicative of overall licensee performance, but rather, a condition outside of the licensee's control. The staff will consider treating these findings as exceptions for the purpose of determining appropriate NRC actions per the Action Matrix. In such instances, the minimum response would be implementation of supplemental inspection procedure 95001 Supplemental Inspection for One or Two White Inputs in a Strategic Performance Area. In these cases the Regional Administrator shall obtain concurrence from the Director of the Office of Nuclear Reactor Regulation (NRR).

3) The agency may consider in a few rare instances that circumstances dictate that actions outside of the Action Matrix apply. In these cases the Regional Administrator shall obtain concurrence from the Director of the Office of Nuclear Reactor Regulation (NRR) for the/1 proposed actions. ,

D. Transfer of plant to IMC 0350 process

The criteria for a plant entering IMC 0350 is 1) plant performance that results in repetitive degraded cornerstones, multiple degraded cornerstones, multiple yellow inputs, or one red input, plant shutdown (whether voluntary or via an agency order to shutdown), and an agency management decision to place the plant in the IMC 0350 process or 2) A facility's performance may be determined to be unacceptable. At this point, periodic assessments (quarterly, midcycle, and end-of-cycle) of licensee performance is transferred from the Operating Reactor Assessment Process to the IMC 0350 process. This process is more completely described in IMC 0350.

EXAMPLE: One example where NRC management may choose to place a plant under the IMC 0350 process is a plant whose performance has declined through the action matrix and has repetitive degraded cornerstones, multiple degraded cornerstones, multiple yellow inputs, or one red input and previous licensee corrective actions have been ineffective in improving performance. An example where NRC management may choose not to place a plant in the IMC 0350 process is a plant that has a single red issue. The licensee may be allowed to shutdown the plant, correct the deficiency, and restart without entering the IMC 0350 process.

E. Event Response

The resident inspector shall perform an initial determination of facility status and licensee actions to mitigate the event in accordance with inspection procedure 71153 Event Follow Up. These actions include observing plant parameters and current plant status, evaluating the performance of mitigating systems and actions taken by the licensee, and confirming that the licensee has properly classified the event in accordance with the emergency plan and made timely off-site notification of any event when required. A risk analyst will estimate the risk significance of the event using the best available PRA tools and insights. The initial risk determination will be used to consider appropriate followup inspection resources. Any resulting performance issues will be characterized for risk significance utilizing the

Page 9 of 25

A -

Significance Determination Process (SDP). These performance issues will be combined with performance indicators and inspection findings to determine appropriate agency response per the Action Matrix. This process is more completely described in Management Directive 8.3.

6. Annual Meeting with Licensee

A. Scheduling

A public meeting with the licensee will be scheduled within 16 weeks of the end of the assessment period to discuss the results of the NRC's annual assessment of the-licensee's performance. The 16 week requirement may occasionally be exceeded to accommodate the licensee's schedule. The meeting will be conducted onsite or in the vicnty of the site so that it will be accessible to members of the public. NRC management, as specified in the Action Matrix, will conduct the public meeting.

B. Meeting Preparation

The region shall notify those on distribution for the annual assessment letters of the meeting with the licensee. The region shall notify the media and State and local government officials of the issuance of the annual assessment letter and of the meeting with the licensee. Adequate notification of the meeting will be accomplished by distribution within at least 10 days to the Public Document Room of the letter scheduling the meeting with the licensee.

C. Conduct of Licensee Meeting

The annual public meeting is intended to provide a forum for a candid discussion of issues related to the licensee's performance. NRC management, as specified in the Action Matrix, will discuss the agency's evaluation of licensee performance as documented in the annual assessment letter. The licensee will be given the opportunity to respond at the meeting to any information contained in the annual assessment letter.

The annual meeting will be a public meeting. The meeting must be closed for such portions of the meeting which involve matters that should not be publicly disclosed under Section 2.790 of Title 10 of the Code of Federal Regulations (10 CFR 2.790). Members of the public, the press, and government officials from other agencies should be treated as observers during the conduct of the meeting. Attendees will be given the opportunity to ask questions at the conclusion of the meeting.

Page 10 of 25

Exhibit 1 - REGULATORY FRAMEWORK

Strategic Performance

Areas

HUMAN ---------- SAFETY CONSCIOUS WORK ---------------- PROBLEM --------PERFORMANCE ENVIRONMENT IDENTIFICATION AND

RESOLUTION

". PERFORMANCE INDICATOR

"* INSPECTION

"• OTHER INFORMATION SOURCES

"* DECISION THRESHOLDS Page II of 25

Exhibit 2 - Process Table

Level of Review Frequency/ Timing Participants Desired Outcome Communication (* indicates lead)

Continuous Continuous SRI*, RI, regional Performance None required, notify licensee by an ctors, analysts awareness Assessment Follow Up letter only if

S 46A . .thresholds crossed

Quarterly Once per quartel N, DGRP: BC*, PE, SRI, Input/verify PI/PIM Update data set, notify licensee by an Four weeks afteva RI data, detect early Assessment Follow Up letter onl if of quarter trends thresholds crossed

Mid-Cycle At mid-cycle/ Divisions of Reactor Detect trends, plan Inspection look ahead letter Four weeks after end Safety (DRS) or DRP inspection for six OA second quarter DD*, DRP and DRS monthl.

.��_ _ _............_B C s End-of-Cycle At end-of-cycle/ DRS or DRP DD*, k.ssment of plant Assessment letter and inspection look

Four weeks after end RAs, NRR performance, ahead letter of assessment cycle representative, BCs, oversight and

principal inspectors, coordination of regional actions

------------------------- --------------------------.---------------------.-------------------------------

Agency Action Review Annually/ DIR NRR*, RAs, Oversight and Commission briefing, followed by public Two weeks after end- DRS/DRP DDs, DISP, coordination of meetings with individual licensees to discuss of-cycle review OE, 01, other HQ agency-level actions assessment results

_____ _offices as appropriate I

Page 12 of 25

r I

Exhibit 3 - Schedule of events during the annual assessment cycle Event Date Note

Beginning of full implementation of 04/02/00 N/A Revised Reactor Oversight Process

1) End of first quarter of assessment 06/30/00 N/A cycle 2) End of inspection cycle .____________

First quarter PI data available 07/14/00 2 weeks after end of first quarter internally

First Quarter review completed 07/28/00" 4 weeks after end of first quarter

1) End of second quarter of 09/30/00 N/A assessment cycle 2) End of inspection cycle

Second quarter Pi data available 10/14/00 2 weeks after end of second quarter internally

Mid-cycle review completed 10/28/00* 4 weeks after end of second quarter

Mid-Cycle letters sent to licensees 11/111/00* 2 weeks after completion of mid-cycle review

1) End of third quarter of assessment 12/31/00 N/A cycle 2) End of inspection cycle

Third quarter PI data available 01/14/01 2 weeks after end of third quarter internally

Third Quarter review completed 01/28/01" 4 weeks after end of third quarter

1) End of fourth quarter of assessment 03/31/01 N/A cycle 2) End of inspection cycle

Fourth quarter PI data available 04/14/01 2 weeks after end of fourth quarter internally

End-of-Cycle review completed 04/28/01* 4 weeks after end of fourth quarter

Agency Action Review meeting 05/11/01* 2 weeks after completion of end-ofcompleted cycle review

Annual assessment letters sent out to 05/17/01 * 2 weeks after completion of end-oflicensees cycle review

Commission meeting completed 05/24/01* 8 weeks after end of fourth quarter

Complete annual public meetings 07/21/01 16 weeks after end of fourth quarter

* This may be completed earlier as appropriate

Page 13 of 25

DRAFT Exhibit 4 - ACTION MATRIX,,,L.......... as......Prmance a Measured bv Performagnce Indicators and Inszlection Results ,_...._•

All Assessment Inputs One or Two White One Degraded Repetitive Degraded Overall Unacceptable (Performance Inputs (in different Cornerstone (2 White Cornerstone, Multiple Performance; Plants Indicators (Pie) and cornerstones) In a Inputs or 1 Yellow Degraded Not Permitted to Inspection Findings) Strategic Performance Input) or any 3 White Cornerstones, Multiple Operate Within this

U . : i Green, Cornerstone Area; Cornerstone Inputs in a Strategic Yellow irputs, or 1 Red Band, Unacceptable Objectives Fully Met Objectives Fully Met Performance Area; Input'; Cornerstone Margin to Safety

Cornerstone Objectives Objectives Met with Met with Minimal, Longstanding Issues of Reduction In Safety Significant Reduction In

_____________Margin ISafetymar_.....

Regulatory Conference Routine Senior Branch Chief (BC) or DD or Regional EDO (or Commission) Commission meeting Resident Inspector Division Director (DD) Administrator (RA) Meet with Senior with Senior Licensee (SRI) Interaction Meet with Licensee Meet with Licensee Licensee Management Management

Licensee Action Licensee Corrective Licensee Corrective Licensee Self Licensee Performance Action Action with NRC Assessment with NRC Improvement Plan with

______-________.___ Oversight Oversight NRC Oversight cf

NRC Inspection Risk-Informed Baseline Baseline and Baseline and Baseline and Team Inspection supplemental supplemental Inspection

__-____- ______.- .. Program inspection inspection

Regulatory Actions None Document Response to Docket Response to -10 CFR 2.204 DFI Order to Modify, Degrading Area in Degrading Condition in -10 CFR 50.54(f) Letter Suspend, or Revoke assessment letter assessment letter - CAL/Order Licensed Activities

Assessment Report BC or DO review/sign DD review/sign RA review/sign RA review/sign C assessment report (w/ assessment report assessment report assessment report

inspection plan) (w/ inspection plan) (w/ inspection plan) (w/ inspection plan)

Commission Informed

Public Assessment SRI or BC Meet with BC or DD Meet with RA Discuss EDO (or Commission) Commission Meeting SMeeting Licensee Licensee Performance with Discuss Performance with Senior Licensee

Licensee with Senior Licensee Management _.._..,__,__......,.Management '___

1. It is expected in a few limited situations that an inspection finding of this significance will be identified that is not indicative of overall licensee performance. The staff will consider treati ig these inspection findings as exceptions for the purpose of determining appropriate actions.

Page 14 of 25

DRA"

IV. at-

INA PTIn-. -";-^ \

Exhibit 5

Sample Assessment Follow-Up Letter

Licensee distribution designate Licensee name/address

SUBJECT: Assessment Follow-Up - (Plant Name)

(Use one of the two paragraphs, as appropriate) .:

1. Our review of (plant name) identified that you have crossed the threshold(s) for the (insert performance indicator(s) threshold crossed) performance indicator(s). •Additionalty, we have . identified significant inspection findings in the (name of cornerstone) area. However, we do not plan to conduct additional inspections because:

(State reasons why you will not conduct additional inspections)

2. (Use the following sentences as appropriate)

Our review of (plant name) identified that you have crossed the threshold(s) for the (insert performance indicator(s) threshold crossed) performance indicator(s). We have identified significant inspection findings in the (name of cornerstone) area. Therefore, we plan to conduct additional (supplemental) inspections to better understand the causes contributing to your decline in performance.

This letter is to inform you that we will be planning supplemental inspection at your facility during the month of (month/year) to review (state what area you intend to review).

In accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter and its enclosure will be placed in the NRC Public Document Room (PDR).

Please contact (DRP Branch Chief) at (telephone number) with any questions you may have regarding this letter.

(Signed by), Chief Reactor Projects Branch Division of Reactor Projects

Docket Nos. 50-ABC, 50-XYZ Licensee Nos. NPF-0, NPF-0

cc: Normal cc list

Page 15 of 25

Exhibit 6

Sample Inspection Look Ahead Letter

Licensee distribution designate Licensee name/address

SUBJECT: Inspection Plan - (Plant Name)

On (date(s)), the NRC staff reviewed (plant name) to integrate performance information and to plan for inspection activities at your facility from (month/year to month/year). The purpose of this letter is to inform you of our plans for future inspections at your facility so that you will have an opportunity to prepare for these inspections and to inform us of any planned inspections which may conflict with your plant activities.

(Use one of the two paragraphs, as appropriate) \: \.._

1. We have not identified any areas in which you crossed a performance threshold. Therefore, we plan to conduct only baseline inspections at your facility over the next (number) months.

2. (Use the following sentences, as appropriate)

Our 6 month review of (plant name) identified that you have crossed the threshold(s) for the (insert performance indicator(s) threshold crossed) performance indicator(s). The staff has identified significant inspection findings in the (name of cornerstone) area.

(Additional information, as appropriate)

Therefore, we plan to conduct additional inspections to better understand the causes contributing to your decline in performance.

or

No additional inspections are planned in (name of area(s)) because (basis of decision not to conduct further in this area(s))

During the next 12 months (month/year to month/year), we plan to conduct the following inspections. The list includes all planned inspections at your facility. Enclosure I includes all inspections which are scheduled to be accomplished during a specified week in the next 12 months. Enclosure 2 includes all other recurring inspections or inspections which we will perform as situations warrant. The last six months of the inspection plans are tentative and will be revised at the end-of-cycle review meeting.

In accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter and its enclosure will be placed in the NRC Public Document Room (PDR).

If circumstances arise which cause us to change this inspection plan, we will contact you to discuss the change as soon as possible. Please contact (DRP Branch Chief) at (telephone number) with any questions you may have regarding this letter or the inspection plan.

Page 16 of 25

(Signed by), Chief Reactor Projects Branch Division of Reactor Projects

Docket Nos. 50-ABC, 50-XYZ Licensee Nos. NPF-0, NPF-O

Ak

Enclosures: 1. Scheduled Inspection Plan 2. Periodic Inspection Plan 3. Plant Issue Matrix

I

s� $ 7

cc.

Normal cc list

Distribution:

Normal distribution list plus Chief, NRR/DIPM/HPB

Page 17 of 25

/

Exhibit 7 Sample Annual Assessment Letter for Plants With All Assessment Inputs (Performance Indicators and

Inspection Findings) Green

Licensee distribution designate Licensee name/address

SUBJECT: Annual Assessment Letter - (Plant Name)

On (date(s)), the NRC staff completed its end-of-year plant performance assessment of (plant name). The end-of-year review for (plant name) involved the participation of all technical divisions in evaluating performance indicators (PIs) and inspection results for the period (month/day/year to month/day/year). The purpose of this letter is to inform you of our assessment of your safety performance during this period. ,

Overall, (plant name) operated in manner that preserved public health and safety. (Plant name)fully met all cornerstone objectives. " - ..

All performance indicators for the cornerstones were in the licensee response band. Additionally, NRC inspections and licensee self assessments did not identify any findings of safety significance in any of the cornerstones of safety.

On (month/day/year), the NRC completed the baseline inspection procedure 71152 Identification and Resolution of Problems. (Discuss results of inspection).

Therefore, we plan to conduct only baseline inspections at your facility over the next 12 months.

During the next 12 months (month/year to month/year), we plan to conduct the following inspections. These planned inspections include all planned inspections at your facility. Enclosure 1 includes all inspections which are scheduled to be accomplished during a specified week in the next 12 months. Enclosure 2 includes all other recurring inspections or inspections which we will perform as situations warrant. The last six months of the inspection plans are tentative and will be revised at the mid-cycle review meeting.

In accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter and its enclosure will be placed in the NRC Public Document Room (PDR).

If circumstances arise which cause us to change this inspection plan, we will contact you to discuss the change as soon as possible. Please contact (DRP Branch Chief) at (telephone number) with any questions you may have regarding this letter or the inspection plan.

(Signed by), Director Division of Reactor Projects, Region

Page 18 of 25

Docket Nos. 50-ABC, 50-XYZ Licensee Nos. NPF-0, NPF-O

Enclosures:

CC.

Normal cc list

Distribution:

1. Scheduled Inspection Plan 2. Periodic Inspection Plan 3. Plant Issue Matrix

/

/

Normal distribution list plus Chief, NRR/DIPM/IIPB

'A

Page 19 of 25

Exhibit 8 Sample Annual Assessment Letter for Plants With One or Two White Inputs

Licensee distribution designate Licensee name/address

SUBJECT: Annual Assessment Letter - (Plant Name)

On (date(s)), the NRC staff completed its end-of-year plant performance assessment of (plant name). The end-of-year review for (plant name) involved the participation of all technical divisions in evaluating performance indicators (PIs) and inspection results for the period (month/day/year to month/day/year). The purpose of this letter is to inform you of our assessment on your safety performance during this period.

Overall, (plant name) operated in manner that preserved public health and safety. (Plant name) fully met all cornerstone objectives.

[Use either one of the next two sentences, as appropriate, to discuss the PIs]

All performance indicators for the cornerstones were in the licensee response band.

or

The performance indicators for the cornerstones were in the licensee response band with the following exceptions:

(Provide PI(s) which crossed the threshold)

[Use either one of the next two sentences, as appropriate, to discuss NRC inspections]

Additionally, NRC inspections and licensee self assessments did not identify any findings of safety significance in any of the cornerstones.

or

Additionally, NRC inspections identified or confirmed risk significant area(s) in (name of cornerstone(s)).

[Provide brief additional information about these events, as appropriate]

[If these events have been reviewed by the licensee]

We have conducted additional inspections of your investigation into these events and we are satisfied with your review and proposed corrective actions.

[If these events have not been reviewed by the licensee)

Therefore, we will perform additional inspections to review your investigations into thes: events and your proposed corrective actions.

Page 20 of 25

or

No further agency action to these events is warranted because (state reason(s))

On (month/day/year), the NRC completed the baseline inspection procedure 71152 Identification and Resolution of Problems. (Discuss results of inspection).

During the next 12 months (month/year to month/year), we plan to conduct the following inspections. This list includes all planned inspections at your facility. Enclosure I includes all inspections which are scheduled to be accomplished during a specified week in the next 12 months. Enclosure 2 includes all other recurring inspections or inspections which we will perform as situations warrant. The last six months of the inspection plans are tentative and will be revised at the mid-cycle review meeting.

In accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter and its Z enclosure will be placed in the NRC Public Document Room (PDR). /

If circumstances arise which cause us to change this inspection plan,-we will contact you to discuss the change as soon as possible. Please contact (DRP Branch Chief) at (telephone number) with any questions you may have regarding this letter or the inspection plan.

(Signed by), Director Division of Reactor Projects, Region

Docket Nos. 50-ABC, 50-XYZ Licensee Nos. NPF-O, NPF-O

Enclosures: I. Scheduled Inspection Plan 2. Periodic Inspection Plan 3. Plant Issue Matrix

CC. Normal cc list

Distribution:

Normal distribution list plus Chief, NRR/DIPMIIIPB

Page 21 of 25

Exhibit 9 Sample Annual Assessment Letter for Plants with One Degraded Cornerstone

Licensee distribution designate Licensee name/address

SUBJECT: Annual Assessment Letter - (Plant Name)

On (date(s)), the NRC staff completed its end-of-year plant performance assessment of (plant name). The end-of-year review for (plant name) involved the participation of all technical divisions in evaluating performance indicators (PIs) and inspection results for the period (month/day/year to month/day/year). The purpose of this letter is to inform you of our assessment on your safety performance during this time period.

Overall, (plant name) operated in manner that preserved public health and safety. (Plant name) met all cornerstone objectives with minimal reduction in the safety margin. However, (Cornerstone) was degraded../

[Use either one of the next two sentences, as appropriate, to discuss PIs]

All performance indicators for the cornerstones were in the licensee response band.

or

The performance indicators for the cornerstones were in the licensee response band with the following exceptions:

(Provide PIs which crossed the threshold)

[Use either one of the next two sentences, as appropriate, to discuss NRC inspections]

Additionally, NRC inspections and licensee self assessments did not identify any findings of safety significance in any of the cornerstones.

or

Additionally, NRC inspections identified/confirmed risk significant event(s) in (name of cornerstone(s)).

[Provide brief additional information about these events, as appropriate]

[If these events have been reviewed by the licensee]

We have conducted our own independent inspections of the events which resulted in a degraded cornerstone. Further, we are satisfied with your self assessment, conducted with NRC oversight, of the causes contributing to the degraded cornerstone.

[If these events have not been reviewed by the licensee]

Page 22 of 25

Therefore, you should conduct a self assessment into the causes for the degraded cornerstone. Your self assessment efforts should be coordinated with my staff since it will require NRC oversight. Additionally, we will conduct our own independent investigation into the causes for the degraded cornerstone. [Use either one of the next two sentences, as appropriate]

Because (cornerstone) was degraded, this letter is to advise you that we believe a meeting with you would be appropriate. I will be contacting you to arrange for a mutually agreeable time and location for a meeting to discuss your declining performance and your proposed actions to correct these deficiencies.

On (month/day/year), the NRC completed the baseline inspection procedure 71152 Identiftcation and Resolution of Problems. (Discuss results of inspection).

During the next 12 months (month/year to month/year), we plan to conduct the following inspections. These planned inspections include all planned inspections atyour facility. Enclosure,! includes all inspections which are scheduled to be accomplished during a specified week in the next 12 months. Enclosure 2 includes all other recurring inspections or inspections which we will perform as situations warrant. The last six months of the inspection plans are tentative and will be revised at the mid-cycle review meeting.

In accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter and its enclosure will be placed in the NRC Public Document Room (PDR).

If circumstances arise which cause us to change this inspection plan, we will contact you to discuss the change as soon as possible. Please contact (DRP Branch Chief) at (telephone number) with any questions you may have regarding this letter or the inspection plan.

(Signed by) Regional Administrator, Region XX

Docket Nos. 50-ABC, 50-XYZ Licensee Nos. NPF-0, NPF-O

Enclosures: 1. Scheduled Inspection Plan 2. Periodic Inspection Plan 3. Plant Issue Matrix

cc. Normal cc list

Distribution:

Normal distribution list plus Chief, NRR/DIPM/IIPB

Page 23 of 25

Exhibit 10 Sample Annual Assessment Letter for Plants With Repetitive Degraded Cornerstones, Multiple

Degraded Cornerstones, Multiple Yellow Inputs, or One Red Input

Licensee distribution designate Licensee name/address

SUBJECT: Annual Assessment Letter - (Plant Name)

On (date(s)), the NRC staff completed the end-of-year plant performance assessment of (plant name). The end-of-year review for (plant name) involved the participation of all technical divisions in evaluating performance indicators (PIs) and inspection results for the period (month/day/year to month/day/year). The purpose of this letter is to inform you of our assessment on your safety performance during this time period.

Overall, (plant name) operated in manner that preserved public health and safety. (Plant name)" met all cornerstone objectives with longstanding issues or significant reduction in safety margin.

[Use either one of the next two sentences, as appropriate, to discuss PIs]

All performance indicators for the cornerstones were in the licensee response band.

or

The performance indicators for the cornerstones were in the licensee response band with the following exceptions:

(Provide PIs which crossed the threshold)

[Use either one of the next two sentences, as appropriate, to discuss NRC inspections]

Additionally, NRC inspections and licensee self assessments did not identify any findings of safety significance in any of the cornerstones.

or

Additionally, NRC inspections identified/confirmed risk significant event(s) in (name of

cornerstone(s)).

[Provide brief additional information about these events, as appropriate]

Therefore, you should develop a performance improvement plan which will correct the deficiencies which are causing degradation of your cornerstones. Your implementation of the performance improvement plan should be coordinated with my staff since it will require NRC oversight. Additionally, we will be conducting our own independent team investigation into the causes for the degraded cornerstone(s).

Because (cornerstone(s)) was/were degraded, this letter is to advise you that we believe a meeting between the Executive Duty for Operation and your senior management would be appropriate. I will

Page 24 of 25

be contacting you to arrange for a mutually agreeable time and location for a meeting to discuss your declining performance and your proposed actions to correct these deficiencies.

On (month/day/year), the NRC completed the baseline inspection procedure 71152 Identification and Resolution of Problems. (Discuss results of inspection).

During the next 12 months (month/year to month/year), we plan to conduct the following inspections. These planned inspections include all planned inspections at your facility. Enclosure I includes all inspections which are scheduled to be accomplished during a specified week in the next 12 months. Enclosure 2 includes all other recurring inspections or inspections which we will perform as situations warrant. The last six months of the inspection plans are tentative and will be revised at the mid-cycle review meeting. X

In accordance with 10 CFR 2.790 of the NRC's "Rules of Practize," a copy of this letter and its

enclosure will be placed in the NRC Public Document Room (PDR).

If circumstances arise which cause us to change this inspection plan, we will contact you to disodus the change as soon as possible. Please contact (DRP Branch Chief) at (telephone number) with any questions you may have regarding this letter or the inspection plan.

(Signed by) Regional Administrator, Region XX

Docket Nos. 50-ABC, 50-XYZ Licensee Nos. NPF-0, NPF-0

Enclosures: 1. Scheduled Inspection Plan 2. Periodic Inspection Plan 3. Plant Issue Matrix

cc.

Normal cc list

Distribution:

Normal distribution list plus Chief, NRRJDIPM/IIPB

Page 25 of 25

,€ •