NOTICE OF VIOLATION

AND
PROPOSED IMPOSITION OF CIVIL PENALTY

Sequoyah Docket Nos.: 05000259, 05000260

Watts Bar 05000296, 05000327
Browns Ferry 05000328, 05000390
05000391
License Nos.: DPR-33, DPR-52,
DPR-68, DPR-77,
DPR-79, NPF-90,
NPF-96

EA-20-006
EA-20-007

U.S. Nuclear Regulatory Commission (NRC) Office of Investigations (OI) Report No. 2-2018-
033, completed on October 3, 2019, and OI Report No. 2-2019-015, completed on January 21,
2020, identified four violations of an NRC regulation, Title 10 of the Code of Federal Regulations
(10 CFR) 50.7. In accordance with the NRC Enforcement Policy, the NRC proposes to impose
a civil penalty pursuant to Section 234 of the Atomic Energy Act of 1954, as amended (Act), 42
U.S.C. 2282, and 10 CFR 2.205. The particular violations and associated civil penalties are set
forth below:

A. 10 CFR 50.7(a), states, in part, that “Discrimination by a Commission licensee, an applicant

for a Commission license, or a contractor or subcontractor of a Commission licensee or
applicant against an employee for engaging in certain protected activities is prohibited.
Discrimination includes discharge and other actions that relate to compensation, terms,
conditions, or privileges of employment.”

1. Contrary to the above, on March 9, 2018, the Tennessee Valley Authority (TVA)
discriminated against a former Sequoyah employee for engaging in protected activity.
Specifically, the former Sequoyah employee engaged in protected activity by raising
concerns regarding a chilled work environment, filing complaints with the Employee
Concerns Program, and by raising concerns regarding the response to two non-cited
violations. After becoming aware of this protected activity, the former Director of
Corporate Nuclear Licensing (CNL) filed a formal complaint against the former
employee. The filing of a formal complaint triggered an investigation by the TVA Office
of the General Counsel. This action was based, at least in part, on the former employee
engaging in protected activity.

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 2. Contrary to the above, on May 25, 2018, TVA discriminated against a former Sequoyah
employee for engaging in a protected activity. Specifically, the former Sequoyah
employee engaged in protected activity by raising concerns about a chilled work
environment, filing complaints with the Employee Concerns Program, and raising
concerns about the regulatory response the Kirk Key and Service Life non-cited
violations. After becoming aware of this protected activity, TVA placed the former
employee on paid administrative leave until the former employee resigned in August
2018. This action was based, at least in part, on the former employee engaging in
protected activity.

This is Severity Level II problem (Enforcement Policy Sections 2.2.1.d, 6.10).

Civil Penalty - $303,471

B. 10 CFR 50.7(a), states, in part, that “Discrimination by a Commission licensee, an applicant

for a Commission license, or a contractor or subcontractor of a Commission licensee or
applicant against an employee for engaging in certain protected activities is prohibited.
Discrimination includes discharge and other actions that relate to compensation, terms,
conditions, or privileges of employment.”

1. Contrary to the above, on March 9, 2018, TVA discriminated against a former corporate
employee for engaging in protected activity. Specifically, the former corporate employee
engaged in protected activity by raising concerns of a chilled work environment. After
becoming aware of this protected activity, the former Director of CNL filed a formal
complaint against the former employee. The filing of a formal complaint triggered an
investigation by the TVA Office of the General Counsel that resulted in the former
employee being placed on paid administrative leave followed by termination. This action
was based, at least in part, on the former employee engaging in a protected activity.

2. Contrary to the above, on January 14, 2019, TVA discriminated against a former
corporate employee for engaging in protected activity. Specifically, the former corporate
employee engaged in protected activity by raising concerns of a chilled work
environment to the former Vice President of Regulatory Affairs and a TVA attorney
during a TVA Office of the General Counsel investigation. After becoming aware of this
protected activity, the former Vice President of Regulatory Affairs played a significant
role in the decisionmaking process to place the former employee on paid administrative
leave and terminate the former employee. These actions were based, at least in part, on
the former employee engaging in a protected activity.

This is Severity Level I problem (Enforcement Policy Sections 2.2.1.d, 6.10).

Civil Penalty - $303,471

Combined total Civil Penalty: $606,942.

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Pursuant to the provisions of 10 CFR 2.201, the Tennessee Valley Authority is hereby required
to submit a written statement or explanation to the Director, Office of Enforcement, U.S. Nuclear
Regulatory Commission, with a copy to the Document Control Desk, Washington, DC
20555-0001, within 30 days of the date of this Notice of Violation and Proposed Imposition of
Civil Penalty. This reply should be clearly marked as a "Reply to a Notice of Violation (EA-20-06
and EA-20-07)” and should include for the violation: (1) the reason for the violation, or, if
contested, the basis for disputing the violation or severity level; (2) the corrective steps that
have been taken and the results achieved; (3) the corrective steps that will be taken to avoid
further violations; (4) your plan and schedule for completing short and long term corrective
actions and (5) the date when full compliance will be achieved.

Your response may reference or include previous docketed correspondence, if the

correspondence adequately addresses the required response. If an adequate reply is not
received within the time specified in this Notice, the NRC may issue an order or a Demand for
Information requiring you to explain why your license should not be modified, suspended, or
revoked or why the NRC should not take other action as may be proper. Consideration may be
given to extending the response time for good cause shown.

TVA may pay the civil penalty in accordance with NUREG/BR-0254 and by submitting to the
Director, Office of Enforcement, U.S. Nuclear Regulatory Commission, a statement indicating
when and by what method payment was made, or may protest imposition of the civil penalty in
whole or in part, by a written answer within 30 days of the date of this Notice addressed to the
Director, Office of Enforcement, U.S. Nuclear Regulatory Commission. Should the Licensee fail
to answer within 30 days of the date of this Notice, the NRC will issue an order imposing the
civil penalty. Should the Licensee elect to file an answer in accordance with 10 CFR 2.205
protesting the civil penalty, in whole or in part, such answer should be clearly marked as an
"Answer to a Notice of Violation (EA-20-06 and EA-20-07)" and may: (1) deny the violation listed
in this Notice, in whole or in part; (2) demonstrate extenuating circumstances; (3) show error in
this Notice; or (4) show other reasons why the penalty should not be imposed. In addition to
protesting the civil penalty in whole or in part, such answer may request remission or
mitigation of the penalty.

In requesting mitigation of the proposed penalty, the response should address the factors
addressed in Section 2.3.4 of the Enforcement Policy. Any written answer addressing these
factors pursuant to 10 CFR 2.205 should be set forth separately from the statement or
explanation provided pursuant to 10 CFR 2.201, but may incorporate parts of the 10 CFR 2.201
reply by specific reference (e.g., citing page and paragraph numbers) to avoid repetition. The
attention of the Licensee is directed to the other provisions of 10 CFR 2.205 regarding the
procedure for imposing (a) civil penalty.

Upon failure to pay any civil penalty which subsequently has been determined in accordance
with the applicable provisions of 10 CFR 2.205 to be due, this matter may be referred to the
Attorney General, and the penalty, unless compromised, remitted, or mitigated, may be
collected by civil action pursuant to Section 234c of the Act, 42 U.S.C. 2282c.

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The responses noted above (i.e., Reply to Notice of Violation, Statement as to payment of civil
penalty(ies), and Answer to a Notice of Violation) should be addressed to: Director, Office of
Enforcement, U.S. Nuclear Regulatory Commission, One White Flint North, 11555 Rockville,
MD 20852-2738, with a copy to the Regional Administrator, U.S., Nuclear Regulatory
Commission, Region II, 245 Peachtree Center Ave. N.E., Suite 1200, Atlanta, GA 30303, and
the U.S. Nuclear Regulatory Commission, ATTN: Document Control Desk, Washington, DC
20555-0001, and a copy to the NRC Resident Inspector at the facility that is the subject of this
Notice."

Your response will be made available electronically for public inspection in the NRC Public
Document Room or in the NRC’s Agencywide Documents Access and Management System
(ADAMS), accessible from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html. To
the extent possible, your response should not include any personal privacy or proprietary
information. If personal privacy or proprietary information is necessary to provide an acceptable
response, then please provide a bracketed copy of your response that identifies the information
that should be protected and a redacted copy of your response that deletes such information. If
you request that such material is withheld from public disclosure, you must specifically identify
the portions of your response that you seek to have withheld and provide in detail the bases for
your claim (e.g., explain why the disclosure of information will create an unwarranted invasion of
personal privacy or provide the information required by 10 CFR 2.390(b) to support a request for
withholding confidential commercial or financial information). If safeguards information is
necessary to provide an acceptable response, please provide the level of protection described
in 10 CFR 73.21.

In accordance with 10 CFR 19.11, you may be required to post this Notice within two working
days of receipt.

Dated this 24th day of August 2020.