Fukushima Project Elizabeth Lopez Nick Ivanoff Director ... 62449 (OM&A) Developmental Business Case Summary N-BCS 09013 - 10000 R000 i&i2öi 4Z LAZAI Nick Ivanoff Fukushima Project

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GENERATIONSevere Accident Management Guidance Implementation 10 - 62449 (OM&A)

Developmental Business Case Summary N - BCS - 09013 - 10000 - R000

i&i2öi4Z LAZAINick IvanoffFukushima Project — Support P82-2 Prepare BCS J SAI702-5107 ‘ /

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Elizabeth Lopez,, ,Director Fukushima Project P82-2 ,z7 /L4j’ /702-5070 7 Z N.

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Mark ElliottSenior Vice President and CNE P82-5 14 /702-5418

Fred Dermarkar/

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Filed: 2013-09-27 EB-2013-0321 Ex. F2-3-3 Attachment 1 Tab 10

Z of 12

Severe Accident Management Guidance Implementation 10 - 62449 (OM&A)

Developmental Business Case Summary N - BCS-09013-10000 - R000

1! RECOMMENDATION:

We recommend a Developmental Release of an initial $0.621 Million OM&A to fund Preliminary Engineering

for this project. Approval of this request will bring the total to date funding to $0.621 Million including a

contingency of Million. The total project is estimated to cost $25.4 Million with an estimated completion

date of 12/31/2015

The Business Objective of this Regulatory project is to improve the Severe Accident Management Program at

OPGN and to ensure that the related CNSC Fukushima Action Items are completed.

While the OPG Nuclear Fleet has already implemented a Severe Accident Management Program, OPG

Management has decided to further enhance the capability to respond to a Severe Accident by addressing

improvement areas identified during initial implementation, by staging emergency kits to facilitate response, by

incorporating the use of new portable Emergency Mitigating Equipment (EME) where possible. and by

undertaking assessments to ensure adequacy of response given the lessons learned from the Fukushima Daiichi

Nuclear Power Plant accident.

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OAR Element 1.2 Project not in Budget)

Submitted By; (Date)

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i;fn Léezbector Fukusnia Suppor’

F nancia Approva By Date

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[OPITARIOFOWII[ENERAT1ON Ii Sus ase

Severe Accident Management Guidance Implementation 10 62449 (OM&A)Developmental Business Case Summary N - BCS - 09013 - 10000 - R000

2! BACKGROUND & ISSUES:

As a result of the nuclear accident at the Fukushima Daiichi Nuclear Power Plant on March 11, 2011, OPGNexpedited the implementation of its Severe Accident Management Guidance (SAMG) Program which had beenpartially established in 2010. The goal of the SAMG program is to establish a means of precluding largeuncontrolled releases of radioactivity to the environment subsequent to a severe reactor accident, which is asubset of beyond design basis events.

Phase 1 of the implementation was completed in 2010 and focused initially on providing SAMG within theEmergency Response Organization (ERO). Phase 2 of the implementation plan included issuance of detailed sitelevel proceduralized guidelines; these were completed by July 26, 2011 at both the Darlington and PickeringNuclear Power Plants. By year end 2011 additional activities associated with Phase 2, including ERO procedurerevisions and training of certified staff, were completed.

During Phase 2 implementation, a number of improvement opportunities were identified in SAMG. Theseincluded procedural issues. strategy issues. and the need to provide emergency equipment in the field to supportthe Enabling Instructions. While these issues do not invalidate the use of the guidelines, they must be addressedto ensure timely and effective execution of SAMG should the need arise. Therefore, the need for a furtherimplementation phase (i.e. Phase 3) has been identified. The primary focus of SAMG Phase 3 implementationwill be to better prepare for field execution by refining and validating existing guidelines and by training andconducting drills. Additionally. in support of SAMG Improvements, several engineering assessments will beperformed as part of Phase 3. These assessments may result in design changes and/or requirements to reviseSAMG procedures. In Phase 3, the deliverable for these assessments will include detailed assessment reportsand recommendations which will be used to define the scope of all remaining work. Subsequently, a fourth andfinal phase of SAMG implementation will be required to address the final improvement requirements andcomplete the project. The scope of Phase 4 will be defined in Q2 2013 when the assessments are completed.

In February 2012, the CNSC issued a number of Fukushima Action Items to OPG, This project includes SAMGPhase 3 and Phase 4: it encompasses all of the work required to improve the SAMG program and complete theactions committed to the CNSC.


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GENERATION a , r r


31 ALTERNATIVES & ECONOMIC ANALYSIS:

$*O0s Alt emmerided Alt 2

Base Case Full IncrementalC

T*tatQM&A 0 25Ii1 WA

I IIICapital Expenditures 0 0 0 0

1RR% NIA WA NIA NIA

Discounted Payback (Yrs) NIA NIA NIA WA

Present Value (PV)

Net Present Value (NPV)

U

WA if

.. NIA

NIA

Base Case: Do Nothing

This project is required to address several CNSC Fukushima Action Items and is in response to the CNSC Task

Force Report Recommendations for improvements as a result of the lessons learned after the Fukushima Nuclear

Power Plant Accident. As such, the Do Nothing option is not a viable alternative.

Alternative 1: SAMG Implementation Improvements

Initial assessments of the required improvements include addressing and correcting items on the gap lists

documented during Phase 2 SAMG implementation, staging of Emergency Kits, updating SAMG documents, and

performing assessments committed to in the CNSC Fukushima Action Items. Emergency Mitigating Equipment

(purchased under Projects 13-49229/491 59 and 16-31508) may somewhat offset the scope of SAMG Phase 3

however this needs to be assessed. A Developmental Release is recommended to fully define the scope and cost

of the improvements required. a Partial Release and Full Release will follow,

Alternative 2: SAMG Implementation Improvements (do more>

SAMG da not Qrgnai ncae tre Eergerc Mtgaton Equprnent EME whIch ‘as neen recerty procurea as

a result of the Fukushima ac dent Conip eton of SAMG as onginaily rtended ndudea actions whch are no

onger beneficial when credit s taken for the new EME e they now become additional or redunaant It s rot

recommended to implement all gaps associated with earIer implementation of SAMG unti an assessment s

made which ncludes crediting the use EME for Severe Accident mitigation


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GENERATION 3r se S irarySevere Accident Management Guidance implementation 10- 62449 (OM&A)

I., Developmental Business Case Summary N - BCS - 09013 - 10000 - R000

4! THE PROPOSAL

The deliverables for this Developmental Release are as follows:

Complete the preliminary assessments and engineering necessary to define the scope for a partial fundingrelease to implement the proposed improvements to the Severe Accident Management Guidance (SAMG)Program. Phase 3. These assessments include the following improvement areas:

o reconcile the documented gaps identified during Phase 2 SAMG implementation.o stage equipment kits in the field to support deployment during an emergency,o conduct training, validation, and drills using the new procedures and equipmento update the SAMG Technical Basis Documentso revise SAMG documents where appropriate, to include the use of Emergency Mitigating

Equipment (e.g. portable pumps and generators) in severe accident situations.

Complete the preliminary assessments to define the scope of engineering work for a partial fundingrelease required to address improvement areas identified in CNSC Fukushima Action Items, Theseinclude assessments of:

o Equipment and instrument survivability subsequent to Beyond Design Basis Accidentso Required strategies for Hydrogen mitigationo Required strategies for Containment ventingo Impact of Shield Tank relief capacity on Containment performance and SAMG strategieso Potential impact of SAMG strategies on IFB loss of cooling and inventory makeup accidentso Options and SAMG strategies with regard to multi-unit severe accidents

• Prepare and obtain approval of a Partial Release BCS, expected July 2012.

Future Partial Release:

• Funding for the Partial Release will cover Phase 3 of the SAMG Implementation Improvement Project.Completion of Phase 3 is anticipated to be December 31. 2013.

• Scope of Phase 3 will be as defined in detail and described under the Developmental Release mentionedabove.

• The Phase 3 dehverabies wi include recommenoauons based on engineering assessments that w LI beused to deve op the scope for mprovements and/or modif at ors that may be required .n the final Phaseof the proiect

Future Full Release

• Funding for the Full Release will cover the 4 and final phase of this project

• Phase 4 SAMG scope will include odates to SAMG documents and moiementatior 0f recommendatonsbasd on assessmrts a’d eg ri g rrr t—d d r a 3 a r de pdat s t M

o rate qu pmrt ci r 1 ar’i pa’t If t a p a ! tr. E £raLrc


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BENERATIIJNJSevere Accident Management Guidance Implementation 10 - 62448 (OM&A)


• Scope of the Full Release will be developed in 2013 and Phase 4 completion is expected by the end of

2015 (plant modification work requiring outages may extend beyond this date)

51 QUALITATIVE FACTORS

The initial qualitative factor gained by proceeding with the project will be to proactively meet OPG commitments to

the CNSC to circumvent a regulatory Order. It also demonstrates to the public and our peers, that OPG is

applying lessons learned from the Fukushima event in a timely manner, Enhancements to SAMG will address

vulnerabilities which currently exist and will improve OPG preparedness to deal with a severe emergency.

6! RISKS ANALYSIS (See Attachment D for details)

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Use OPG resources toreview engineeringestimates and provideoversight of work.Consider external OPGexperienced ProjectManagement,Engineering, andCertified Staff wherepossible. Consider COGJoint Project withindustry partners

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Increased scope due toegac/ ;SSUeS abackground nfor’rati n

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BeforeUse external previouslyexoeenceo QPGEng reerig and ReactoSaet Staff to ass st aidprov u spec ‘contingency for externaenaineerina

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Detays to developmentof scope and scopevartattons due to need toalign wtn CANDU

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Use memDershp onCOG SAMG WorkingGroup, CANDU Industry

Team and possbieCOG ceottu


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LENERAT1ONIE ser iaSevere Accident Management Guidance Implementation 10 - 62449 (OM&A)

Developmental Business Case Summary N - BCS - 09O131O0O0 - R0007/ POST IMPLEMENTATION REVIEW

Note: PIR N/A for Developmental Release

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APPENDIX “A’ GLOSSARY (acronyms, codes, technical terms)

CNSC — Canadian Nuclear Safety CommissionOM&A — Operations, Maintenance and AdministrationBDBE Beyond Design Basis EventEME — Emergency Mitigating EquipmentCOG - CANDU Owners GroupERO — Emergency Response OrganizationEP — Emergency PreparednessSAMG — Severe Accident Management Guidance

APPENDIX “B”

LTD SpentLTD SpentD Sni

Comparison of Total Project Estimates

100

o361

omments


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GENERATION II So mnarv



APPENDIX “C” FINANCIAL MODEL - ASSUMPTIONS

- —- — ——- -—-.----,— ----

Discount Rate: 7% Cost Escalation (Yr) 0% SR&D Opportunity YeZZJProgress Payments No Foreign Currency No Retainer Fee No

Depreciaon Rate (Capital) NIA PST No Interest Rate (Capital) OM&A NIA

Revenue Rate NIA Leasing No Indexed Priced Contract No

Comments:

Design Complete: tip to — 40% Fixed Price Contract No 3rd Party Estimate No

Quality of Estimate Budget +30% to .15% OPEX used Yes Lessons Learned Yes

Similar Projects Nothing Similar Budgetary Quote No First Unit Actual Used WA

Firm Vendor Proposal No Cost Sharing No Competitive Bid No

Reviewed by Sponsor Yes Fee for Service No Contracts in place No

Comments:

Jun-20 I 515

Jun-20 515

Nov-18 516

I — Sen 878

2 Feb-18 878

3 Sep 19 878

4 Jan-21 878

PickeringB

Darlington -

8-

- a---—-:

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zztzComments:No outage work anticipated at this time however as scope is developed may be identified later


Removal Costs (above>Inventory W 10

Spare Parts in Invent

Reviewed b (Date) Approved by (Date)

Nck vancyff zabe1 LpezStat V Ma1aaer

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GENERATION Simi’arSevere Accident Management Guidance Implementation 10 - 62449 (OM&A)

Developmental Business Case Summary N - BCS - 09013 - 10000 - R000ATTACHMENT “A” PROJECT COST SUMMARY

—- V-

Project Mgmnt& Support 84J 13001 60J 600 3,341Engineering 64401 2 500J 2 100 14,690Procurementöion

F

lnrest(CapdaIProject)—

General ContingencySpecific Contingency

Project Co 1Z140 j 365Oj 3,Z5O 3I

rr” w— ‘‘rh

CurrentRelease

Project Costs

TotalContingency

Adjto ProjectCostsCurrent Contingency

Release Total• Project Costs

ThisContingency

ReleaseTotal

DProjeciCostsnContingency

ReleasedTalProjectCosts

FutureContingency

ReleasesTotal

ptiContingency Funding

Total Funding I 6,21 12j40 3650 3,250 2L36i

Variance to Budget 0 0 ] 5,691 10940 3,100 2,700 0 0 j

Project Manager


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IENERATION S ar


Developmental Business Case Summary N-BCS-08013 - 10000 - R000

ATTACHMENT “B” PROJECT VARIANCE ANALYSIS

AJIi iA. Projçct Mgmnt & Support — 3,341 3.341 N/A, first release

Engjneering 14.690 14,690 N/A, first release

Procurement 1,700 1,700 N/A, first release

Construction N/A. first release

Other

).——

—

F Interest (Capital Project Only ,

. ProjectCosts(ScoresBasis) N!A,first release

General Contingency NIA, first release

‘ Specific Contingency N/A, first release

L Oiectcosts (ScoresBasis) - - 25,361 j’ *364R4!A,fIrstr&Ièas&

jReioval Costs included above -—

ilnventorY to be written off -

JSpare Parts in Inventory -

Comments:

This is the first release; therefore, no variance analysis is required.


SCHEDULE

Key Milpfnnpr-7 ww w

--- -

,-- ,-— -- p a a31-Jul-12 Partial BCS Funds approved for release

30-Jun-13 Scope developed for Phase 4 of SAMG

31Dec13 SAMG Phase 3 complete and Full Release approved for Phase 4 SAMG31-Dec15 SAMG fully implemented (Phase 3 and 4), Prolect complete

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A Project Execution Plan (PEP) will be approved by

In Service Declarations: (Capital only)w- ---w —w — — -- - - -

: ,




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ATTACHMENT “C”

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GENERATIDSevere Accident Management Guidance Implementation 10 - 62449 (OM&A)

Developmental Business Case Summary N- BCS - 09013 - 10000 - R000

Click here to enter a dateComments:


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Attachment “D” Risk Probabilities Chart

Prity

I

n1OO AboutllOOjAboutIlntêj olinS

f

Risk Impact Chart

>80% of > 0 day Significant, National and Non-compliance with Potential for Spll or release causing Loss or

Tota delay unacceptable nternational potental for signficant fatality(s) mn’ediate and serious

Project S non- adverse implicabons for extended impact with degradation

conformance coverage or personnel. potentially off-site impacts. of a safety

requiring impacts large damages or e g. :Cleanup costs> system

extensive Criminal Charges OR $l5MCat. A spill (>55

rework Potential loss of pts)

operating licenses

30% - 80% 30 - 90 day Unacceptable Long-term Legislative non- Potential for fe- Exceedances resulting Reduced

of Total delay non- local or compliance with threatening in charges or Directors effectiveness

Project $ conformance national potential for fines, critical injury or OrderCat. A spill (45 - of a safety

4requiring impact charges. and permanent total 55 pts)Public system

some rework, damages ORMajor disability complaints with OPG

but not major degradation of including implications Explosion

reputation with occupational and/or major fire

regulatory bodies disease

15% - 30% 10 -30 day Non- Major local Systematic non- Potential for Cat. B spillsEmission in Reduced

of Total delay conformance impact or compliance with less serious exceedance of effectiveness

Project $ borderng minor natonal potental for critical injuries regulatory or legal of redundant

design inpact.Minor finesORPotential to (e.g. fractures). limitsField orders or safety

tolerances. local damage cause strained permanent AMP sPublic complaints system

potenta to relationship with partial with OPG components

require regulator, increased disablities and implicationsDangerto

rework surveillance and/or temporary total health, life, or property

reguiations disabi ties of asign ficant

nature

Complaintsfrom ocalofficialsDot cans

5% - 15%of TotalProlect S

3 lOdaydelay

a as

Systematic noncompliance withmoacts to prcfect

sched,eORPoss bii tyo regulatory legal

m0 aor

Potential orless serioustemporary

asab ties analuneS requ ringffste ned ra

Acceptablenon

conformancew hn designtoierances no

ow rk

i (

Impact on asafety

support orsafetyreiatedsvsteir

Cat. C spills -

reportableAdministrativei nfractionsPu bl’c

Compants with o anteve implicatons

.IDO ‘S C
