Palo Verde, Units 1, 2, and 3 - Issuance of Amendment Nos ...Amendment No. 181 License No. NPF-41 ....

UNITED STATES NUCLEAR REGULATORY COMMISSION

WASHINGTON, D.C. 20555-0001

November 5, 2010

Mr. Randall K. Edington Executive Vice President Nuclear! Chief Nuclear Officer

Mail Station 7602 Arizona Public Service Company P.O. Box 52034 Phoenix, AZ 85072-2034

SUB~IECT: PALO VERDE NUCLEAR GENERATING STATION, UNITS 1,2, AND 3 ISSUANCE OF AMENDMENTS - ADOPTION OF TSTF-491, "REMOVAL OF MAIN STEAM AND MAIN FEEDWATER VALVE ISOLATION TIMES FROM TECHNICAL SPECIFICATIONS" (TAC NOS. ME3917, ME3918, AND ME3919)

Dear Mr. Edington:

The Nuclear Regulatory Commission (NRC) has issued the enclosed Amendment No. 181 to Facility Operating License No. NPF-41, Amendment No. 181 to Facility Operating License No. NPF-51, and Amendment No. 181 to Facility Operating License No. NPF-74 for the Palo Verde Nuclear Generating Station, Units 1, 2, and 3, respectively. The amendments consist of changes to the Technical Specifications (TSs) in response to your application dated April 29, 2010.

The amendments remove the main steam and main feedwater valve isolation times from the TSs and replace them with a requirement that the times be within limits. Those limits will be specified in a document subject to control by the Title 10 of the Code of Federal Regulations, Section 50.59 process. These changes are consistent with NRC-approved TS Task Force (TSTF) Standard Technical Specification change traveler TSTF-491, Revision 2, "Removal of Main Steam and Main Feedwater Valve Isolation Times from Technical Specifications."

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A copy of the related Safety Evaluation is also enclosed. The Notice of Issuance will be included in the Commission's next biweekly Federal Register notice.

Sincerely,

;;U~1-((' 7~ ~ mes R. Hall, Senior Project Manager

lant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Docket Nos. STN 50-528, STN 50-529, and STN 50-530

Enclosures: 1. Amendment No. 181 to NPF-41 2. Amendment No. 181 to NPF-51 3. Amendment No. 181 to NPF-74 4. Safety Evaluation

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ARIZONA PUBLIC SERVICE COMPANY, ET AL.

DOCKET NO. STN 50-528

PALO VERDE NUCLEAR GENERATING STATION, UNIT 1

AMENDMENT TO FACILITY OPERATING LICENSE

Amendment No. 181 License No. NPF-41

1. The Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment by the Arizona Public Service Company (APS or the licensee) on behalf of itself and the Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority dated April 29, 2010, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act) and the Commission's regulations set forth in 10 CFR Chapter I;

B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission;

C. There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations;

D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and

E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

Enclosure 1

R. Edington - 2

2. Accordingly, the license is amended by changes to the Technical Specifications as indicated in the attachment to this license amendment, and Paragraph 2.C(2) of Facility Operating License No. NPF-41 is hereby amended to read as follows:

(2) Technical Specifications and Environmental Protection Plan

The Technical Specifications contained in Appendix A, as revised through Amendment No. 181 , and the Environmental Protection Plan contained in Appendix B, are hereby incorporated into this license. APS shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan, except where otherwise stated in specific license conditions.

3. This license amendment is effective as of the date of issuance and shall be implemented within 90 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

Michael T. Markley, Chief Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Attachment: Changes to the Facility Operating

License No. NPF-41 and Technical Specifications

Date of Issuance: November 5, 2010



ARIZONA PUBLIC SERVICE COMPANY. ET AL.


PALO VERDE NUCLEAR GENERATING STATION. UNIT 2









Enclosure 2

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The Technical Specifications contained in Appendix A, as revised through Amendment No. 181, and the Environmental Protection Plan contained in Appendix B, are hereby incorporated into this license. APS shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan, except where otherwise stated in specific license conditions.











PALO VERDE NUCLEAR GENERATING STATION, UNIT 3









Enclosure 3

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ATTACHMENT TO LICENSE AMENDMENT NOS.181, 181, AND 181

FACILITY OPERATING LICENSE NOS. NPF-41, NPF-51. AND NPF-74

DOCKET NOS. STN 50-528, STN 50-529, AND STN 50-530

Replace the following pages of the Facility Operating Licenses Nos. NPF-41, NPF-51, and NPF-74, and Appendix A Technical Specifications with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

Operating Licenses

REMOVE INSERT

Replace Page 5 of Facility Operating License No. NPF-41 with the attached Page 5.



Technical Specifications

REMOVE INSERT

3.7.2-3 3.7.2-3 3.7.3-2 3.7.3-2

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(3) Antitrust Conditions

This license is subject to the antitrust conditions delineated in Appendix C to this license.

(4) Operating Staff Experience Requirements

Deleted

(5) Post-Fuel-Loading Initial Test Program (Section 14, SER and SSER 2)*

Deleted

(6) Environmental Qualification

Deleted

(7) Fire Protection Program

APS shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report for the facility, as supplemented and amended, and as approved in the SER through Supplement 11, subject to the following provision:

APS may make changes to the approved fire protection program without prior approval of the Commission only if those changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.

(8) Emergency Preparedness

Deleted

'The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/or its supplements wherein the license condition is discussed.

Amendment No. 181

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(4) Operating Staff Experience Requirements (Section 13.1.2. SSER 9)*

Deleted

(5) Initial Test Program (Section 14. SER and SSER 2)

Deleted

(6) Fire Protection Program

APS shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report for the facility, as supplemented and amended, and as approved in the SER through Supplement 11, subject to the following provision:

APS may make changes to the approved fire protection program without prior approval of the Commission only if those changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.

(7) Inservice Inspection Program (Sections 5.2.4 and 6.6. SER and SSER 9)

Deleted

(8) Supplement NO.1 to NUREG-0737 Requirements

Deleted

*The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/or its supplements wherein the license condition is discussed.

Amendment No. 181

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(1) Maximum Power Level

Arizona Public Service Company (APS) is authorized to operate the facility at reactor core power levels not in excess of 3990 megawatts thermal (100% power),in accordance with the conditions specified herein.





(4) Initial Test Program (Section 14, SER and SSER 2)

Deleted

(5) Additional Conditions

The Additional Conditions contained in Appendix D; as revised through Amendment No. 171, are hereby incorporated into this license. The licensee shall operate the facility in accordance with the Additional Conditions.

(6) Mitigation Strategy License Condition

APS shall develop and maintain strategies for addressing large fires and explosions and that include the following key areas:

(a) Fire fighting response strategy with the following elements:

1. Pre-defined coordinated fire response strategy and guidance.

2. Assessment of mutual aid fire fighting assets. 3. Designated staging areas for equipment and materials. 4. Command and control. 5. Training of response personnel.

Amendment No. 181

3.7.2

SURVEILLANCE REQUIREMENTS

SURVEILLANCE

SR 3.7.2.1 -------------------NOTE-------------------Not required to be performed prior to entry into MODE 3.

Verify closure time of each MSIV is within limits with each actuator train on an actual or simulated actuation signal.

MSIVs

FREQUENCY

In accordance with the Inservice Testing Program

PALO VERDE UNITS 1.2.3 3.7.2-3 AMENDMENT NO. +ad 181

MFIVs 3.7.3

ACTIONS (cont-inued)

CONDITION REQUIRED ACTION COMPLETION TIME

C. Required Action and assbciated CompletionTime not met.

C.1

AND

Be in MODE 3. 6 hours

C.2 Be in MODE 5. 36 hours

SURVEILLANCE REQUIREMENTS

SURVEILLANCE

SR 3.7.3.1 Verify the closure time of each MFIV is within limits on an actual or simulated' actuation signal.

FREQUENCY

In accordance with the Inservice Testing Program

PALO VERDE UNITS 1.2.3 3.7.3-2 AMEI~DMENT NO. W '181



SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION

RELATED TO AMENDMENT NO.181 TO FACILITY OPERATING LICENSE NO. NPF-41,

AMENDMENT NO.181 TO FACILITY OPERATING LICENSE NO. NPF-51, AND

AMENDMENT NO.181 TO FACILITY OPERATING LICENSE NO. NPF-74


PALO VERDE NUCLEAR GENERATING STATION, UNITS 1,2, AND 3

DOCKET NOS. STN 50-528, STN 50-529, AND STN 50-530

1.0 INTRODUCTION

By letter dated April 29, 2010 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML101310396), Arizona Public Service (APS or the licensee) proposed changes to the Technical Specifications (TSs) for Palo Verde Nuclear Generating Station, Units 1, 2, and 3 (PVNGS). The requested changes are the adoption of Nuclear Regulatory Commission (NRC)-approved Technical Specification Task Force (TSTF) Standard Technical Specification (STS) change traveler TSTF-491, Revision 2, "Removal of Main Steam and Feedwater Valve Isolation Times," which was proposed by the TSTF by letter dated May 18,2006. The proposed changes would revise TS 3.7.2, "Main Steam Isolation Valves (MSIVs)," and TS 3.7.3, "Main Feedwater Isolation Valves (MFIVs)." The proposed changes would allow relocating the isolation valve closure times to a licensee-controlled document (LCD) that is referenced in the TS Bases. TSTF-491, Revision 2, was announced for availability in the Federal Register on December 29, 2006, as part of the consolidated line item improvement process (CLlIP).

2.0 REGULATORY EVALUATION

Section 182a of the Atomic Energy Act (the "Act") requires applicants for nuclear power plant operating licenses to include TSs as part of the license. The TSs ensure the operational capability of structures, systems, and components that are required to protect the health and safety of the public. The Commission's regulatory requirements related to the content of the TSs are contained in Section 50.36, "Technical specifications," of Title 10 of the Code of Federal Regulations (10 CFR). The regulations in 10 CFR 50.36(c) require that the TSs include items in the following specific categories: (1) safety limits, limiting safety systems settings, and limiting control settings; (2) limiting conditions for operation; (3) surveillance requirements (SRs); (4) design features; and (5) administrative controls.

Enclosure 4

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In general, there are two classes of changes to TSs: (1) changes needed to reflect modifications to the design basis (TSs are derived from the design basis), and (2) voluntary changes to take advantage of the evolution in policy and guidance as to the required content and preferred format of TSs over time. This amendment applies to the second class of changes.

In determining the acceptability of revising STS 3.7.2 and 3.7.3, the NRC staff used the accumulation of generically approved guidance NUREG-1432, "Standard Technical Specifications, Revision 3, Combustion Engineering Plants," dated June 2004. Licensees may revise the TSs to adopt current improved STS format and content provided that the plantspecific review supports a finding of continued adequate safety because: (1) the change is editorial, administrative, or provides clarification (Le., no requirements are materially altered); (2) the change is more restrictive than the licensee's current requirement; or (3) the change is less restrictive than the licensee's current requirement, but nonetheless still affords adequate assurance of safety when judged against current regulatory standards. The detailed application of this general framework, and additional specialized guidance, are discussed in Section 3.0 below in the context of specific proposed changes.

3.0 TECHNICAL EVALUATION

The NRC staff has reviewed the justification for the proposed adoption of TSTF-491, Revision 2, as described in the licensee's submittal dated April 29, 2010. The detailed evaluation below will support the conclusion that: (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) such activities will be conducted in compliance with the Commission's regulations, and (3) the issuance of the amendments will not be inimical to the common defense and security or to the health and safety of the public.

3.1 Main Steam Isolation Valves (MSIVs)

One MSIV is located in each main steam line outside of the containment. Closing the MSIVs isolates each steam generator from the others and isolates the turbine, steam bypass system and other auxiliary steam supplies from the steam generator.

By isolating the steam flow from the secondary side of the steam generator the MSIVs prevent over cooling the reactor core following a high-energy line break. By preventing core overcooling, the MSIVs protect the reactor core from being damaged.

TSTF-491, Revision 2 relocated the required closure times for the MSIVs from STS SR 3.7.2.1 to the LCD that is referenced in the STS Bases for SR 3.7.2.1. Changes to LCDs are subject to the 10 CFR 50.59 process. The 10 CFR 50.59 criteria provide adequate assurance that prior NRC staff review and approval will be requested by the licensee for changes to the Bases or LCD requirements with the potential to affect the safe operation of the plant. Furthermore, the MSIVs are subject to periodic testing and acceptance criteria in accordance with the Inservice Testing (1ST) Program. Compliance with the 1ST Program is required by Section 5.5.7 of the STS and 10 CFR 50.55. The 1ST Program includes specific reference value baseline operating times for valves that are not subject to arbitrary changes.

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The regulations in 10 CFR 50.36 require the inclusion of the periodic testing of the MSIVs in the SRs, not the actual closure time of the valves. The plant-specific adoption of the TSTF-491, Revision 2 change in the PVNGS RSs maintains the periodic testing requirements for MSIVs in accordance with 10 CFR 50.36. Based on the requirements of 10 CFR 50.36, 10 CFR 50.59, and the 1ST Program, the NRC staff concludes that relocating the MSIV closure time from PVNGS TS SR 3.7.3.1 to the LCD as referenced in the PVNGS TS Bases is acceptable.

3.2 Main Feedwater Isolation Valve (MFIV), Main Feedwater Regulation/ Control Valve (MFRV), and Associated Bypass Valves (BVs)

The MFIVs and BVs or the MFRVs and BVs isolate the non-safety-related portions from the safety-related portions of the system. In the event of a secondary side pipe rupture inside containment, these valves limit the quantity of hjgh-energy fluid that enters the containment through the break and provide a pressure boundary for the controlled addition of auxiliary feedwater to the intact loops.

By isolating the feedwater flow from the affected steam generator, the MFIVs, MFRVs, and BVs prevent overcooling the reactor core and over-pressurizing of the containment from feedwater pump runout.

As with the MSIVs, TSTF-491, Revision 2 relocated the required closure times for the MFIVs, MFRVs, and BVs from the STS SR 3.7.3.1 to the LCD that is referenced in the STS Bases for SR 3.7.2.1. Changes to the Bases or LCD are sUbject to the 10 CFR 50.59 process. The 10 CFR 50.59 criteria provide adequate assurance that prior staff review and approval will be requested by the licensee for changes to the Bases or LCD requirements with the potential to affect the safe operation of the plant. Furthermore, the MFIVs, MFRVs, and BVs are subject to periodic testing and acceptance criteria in accordance with the 1ST Program. Compliance with the 1ST Program is required by Section 5.5.7 of the STS and 10 CFR 50.55. The 1ST Program includes specific reference value baseline operating times for valves that are not subject to arbitrary changes.

The PVNGS TS differ from the STS in that they do not contain requirements for MFRVs and BVs. This difference is due to the plant-specific licensing basis of PVNGS and does not affect the applicability of TSTF-491, Revision 2 to PVNGS TS. The regulations in 10 CFR 50.36 require the inclusion of the periodic testing of the MFIVs in the SRs, not the actual closure time of the valves. The plant-specific adoption of the TSTF-491, Revision 2 change in the PVNGS TSs maintains the periodic testing requirements for MFIVs in accordance with 10 CFR 50.36. Based on the requirements of 10 CFR 50.36, 10 CFR 50.59, and the 1ST Program, the NRC staff concludes that relocating the MFIVs closure times from PVNGS TS SR 3.7.3.1 to the LCD as referenced in the PVNGS TS Bases is acceptable.

4.0 STATE CONSULTATION

In accordance with the Commission's regulations, the Arizona State official was notified of the proposed issuance of the amendment. The State official had no comments.

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5.0 ENVIRONMENTAL CONSIDERATION

The amendments change a requirement with respect to the installation or use of a facility component located within the restricted area as defined in 10 CFR Part 20 or surveillance requirements. The NRC staff has determined that the amendment involves no significant increase in the amounts, and no significant change in the types, of any effluents that may be released offsite, and that there is no significant increase in individual or cumulative occupational radiation exposure. The Commission has previously issued a proposed finding that the amendments involve no significant hazards consideration and there has been no public comment on such finding pUblished in the Federal Register on JUly 27,2010 (75 FR 44024). Accordingly, the amendments meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(9). Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the issuance of the amendments.

6.0 CONCLUSION

The Commission has concluded, based on the considerations discussed above, that: (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) such activities will be conducted in compliance with the Commission's regulations, and (3) the issuance of the amendments will not be inimical to the common defense and security or to the health and safety of the public.

Principal Contributor: Lauren Gibson

Date: November 5, 2010

R. Edington - 2

A copy of the related Safety Evaluation is also enclosed. The Notice of Issuance will be included in the Commission's next biweekly Federal Register notice.

Sincerely,

IRN

James R. Hall, Senior Project Manager Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Docket Nos. STN 50-528, STN 50-529, and STN 50-530

Enclosures: 1. Amendment No. 181 to NPF-41 2. Amendment No. 181 to NPF-51 3. Amendment No. 181 to NPF-74 4. Safety Evaluation

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ADAMS Accession No. ML102140296

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Palo Verde, Units 1, 2, and 3 - Issuance of Amendment Nos ...Amendment No. 181 License No. NPF-41 ....

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