On June 18, 2013, the NRC issued a Notice of Violation and proposed civil penalty in the amount of $70,000 to the Tennessee Valley Authority (TVA) for a Severity Level III problem involving three violations of NRC requirements relating to the commercial grade dedication (CGD) program at the Watts Bar Nuclear Plant, Unit 2 (WB2). Specifically TVA failed to: (1) verify the proper critical characteristics for certain safety-related items procured for the WB2 project starting with the resumption of construction activities in 2008 as a result of a breakdown in its 10 CFR Part 50, Appendix B quality assurance (QA) program; (2) report the breakdown in its QA program to the NRC as required by 10 CFR 50.55(e)(4) and (e)(5); and (3) follow plant procedures and identify a significant condition adverse to quality and, thus, reevaluate corrective action categorization when the QA program breakdown was found to be more significant than originally reported.