[Federal Register Volume 70, Number 51 (Thursday, March 17, 2005)]
[Notices]
[Pages 13052-13053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-5280]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 72-17]


Notice of Issuance of Environmental Assessment and Finding of No 
Significant Impact Regarding a Proposed Exemption; Portland General 
Electric Company; Trojan Independent Spent Fuel Storage Installation

AGENCY: Nuclear Regulatory Commission.

ACTION: Issuance of environmental assessment and finding of no 
significant impact.

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FOR FURTHER INFORMATION CONTACT: Christopher M. Regan, Senior Project 
Manager, Spent Fuel Project Office, Office of Nuclear Material Safety 
and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 
20555. Telephone: (301) 415-8500; fax number: (301) 415-8555; e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Portland General Electric Company (PGE) is the licensee and holder 
of License No. SNM-2509 for the Trojan Independent Spent Fuel Storage 
Installation (Trojan ISFSI). In addition, PGE holds License No. NPF-1, 
pursuant to 10 CFR part 50, for the Trojan Nuclear Plant (TNP). The 
licensee will complete decommissioning of the Trojan Nuclear Plant and 
intends to terminate its part 50 license for the Trojan Nuclear Plant. 
The Trojan ISFSI contains the spent fuel removed from the Trojan 
Nuclear Plant.
    Currently, the licensee provides financial assurance for the Trojan 
ISFSI pursuant to 10 CFR 72.30(c)(5), which allows a part 50 license 
holder to use the financial assurance provisions of part 50 to provide 
financial assurance for an ISFSI. The licensee maintains an external 
sinking fund for decommissioning funds pursuant to 10 CFR 50.75(e). 
However, when its part 50 license is terminated, it will no longer meet 
the condition of 10 CFR 72.30(c)(5) that allows it to use its existing 
external sinking fund to provide financial assurance for its ISFSI.
    On April 29, 2004, PGE filed a request for NRC approval of a 
partial exemption from the provision of 10 CFR 72.30(c)(5) that 
requires an ISFSI licensee to additionally hold a part 50 license in 
order to use an external sinking fund as the exclusive means of 
financial assurance for decommissioning costs of an ISFSI.

II. Environmental Assessment

    Identification of Proposed Action: Pursuant to the requirements of 
10 CFR 72.7, PGE requested a partial exemption from the financial 
assurance requirements of 10 CFR 72.30(c)(5). The exemption request was 
``partial'' because it would apply only to the requirement that the 
ISFSI licensee also hold a part 50 license to use an external sinking 
fund as its exclusive method of providing financial assurance for its 
ISFSI. The licensee will continue to provide financial assurance 
conforming to the requirements of 10 CFR 50.75(e) and (h), although it 
reserved the right to change to another method as provided in other 
sections of 10 CFR 72.30(c). The licensee pointed out that the wording 
of 10 CFR 72.30(c)(5) allowed an ``electric utility'' to use an 
external sinking fund as the exclusive method of providing financial 
assurance when its part 72 ISFSI license was first issued. However, the 
rule was amended effective on December 24, 2003, which resulted in the 
change of the condition from ``electric utility'' to ``a Part 50 
licensee.'' PGE stated that it will remain an electric utility after 
the termination of its part 50 license, hence it will continue to meet 
the intent of the rule as originally issued.
    The proposed action before the Commission is whether to grant this 
exemption pursuant to 10 CFR 72.7.
    Need for the Proposed Action: The applicant is undertaking 
decommissioning activities associated with the Trojan Nuclear Plant and 
has informed the NRC of its intent to terminate the TNP operating 
license (License No. NPF-1), issued pursuant to 10 CFR part 50. PGE's 
2003 Annual Financial Statement (Form 10-K, submitted to the U.S. 
Securities and Exchange Commission (SEC) on March 19, 2004) stated that 
PGE will collect $14 million annually, until 2011, from its customers 
to pay for decommissioning. Those collections will occur whether or not 
the exemption is granted. However, if the exemption is not granted, PGE 
will incur higher costs due to the expense of providing a second 
independent financial assurance instrument, which would lead to 
unnecessary additional costs. Therefore, the exemption is in the public 
interest. If PGE were to adhere to the financial assurance requirements 
of 10 CFR 72.30, without the granting of the partial exemption, an 
unnecessary financial burden and associated increased overall operating 
costs would be borne by the applicant. In addition, granting of the 
partial exemption to the requirements of 10 CFR 72.30(c)(5) will 
facilitate

[[Page 13053]]

completion of the decommissioning of the TNP site and eventual 
termination of the 10 CFR part 50 license.
    Environmental Impacts of the Proposed Action: In 1999 the NRC 
issued a license to PGE to construct and operate the Trojan ISFSI. 
Prior to this action the NRC examined the environmental impacts of 
constructing, operating, and decommissioning of the Trojan ISFSI and 
determined that such impacts would be acceptably small. The staff's 
conclusions were documented in an environmental assessment and finding 
of no significant impact and published in the Federal Register (61 FR 
64378) on December 4, 1996. On the basis that the proposed exemption 
deals with financial matters that will not affect the physical design 
or operation of the Trojan ISFSI, the staff finds that the proposed 
exemption will not have any significant environmental impact.
    Alternative to the Proposed Action: As an alternative to the 
proposed action, the staff considered denial of the proposed action 
(i.e., the ``no-action'' alternative). Approval or denial of the 
exemption request would result in no change in the environmental 
impacts described in the staff's final EA. Therefore, the environmental 
impacts of the proposed action and the alternative action are similar.
    Agencies and Persons Consulted: On March 3, 2005, Mr. Adam Bless of 
the Oregon Office of Energy, Energy Resources Division, was contacted 
regarding the environmental assessment for the proposed exemption and 
had no concerns. The NRC staff previously evaluated the environmental 
impacts of the Trojan ISFSI in the environmental assessment and finding 
of no significant impact published in the Federal Register (61 FR 
64378) on December 4, 1996, and has determined that additional 
consultation under Section 7 of the Endangered Species Act is not 
required for this specific exemption which involves financial assurance 
mechanisms and will not affect listed species or critical habitat. The 
NRC staff has similarly determined that the proposed exemption is not a 
type of activity having the potential to cause effects on historic 
properties. Therefore, no further consultation is required under 
Section 106 of the National Historic Preservation Act.

III. Finding of No Significant Impact

    The environmental impacts of the proposed action have been reviewed 
in accordance with the requirements set forth in 10 CFR part 51. Based 
upon the foregoing EA, the Commission finds that the proposed action of 
granting the partial exemption from 10 CFR 72.30(c)(5) that requires an 
ISFSI licensee to additionally hold a part 50 license in order to use 
an external sinking fund as the exclusive means of financial assurance 
for decommissioning costs of an ISFSI, will not significantly impact 
the quality of the human environment. Accordingly, the Commission has 
determined that a Finding of No Significant Impact is appropriate, and 
that an environmental impact statement for the proposed exemption is 
not necessary.
    Supporting documentation, with respect to this exemption request, 
is available for inspection at NRC's Public Electronic Reading Room at 
http://www.nrc.gov/reading-rm/ADAMS.html. A copy of the PGE request for 
NRC approval of a partial exemption from the provision of 10 CFR 
72.30(c)(5), dated April 29, 2004, can be found at this site using the 
Agencywide Documents Access and Management System (ADAMS) accession 
number ML041260470. Any questions should be referred to Christopher M. 
Regan, Spent Fuel Project Office, Office of Nuclear Material Safety and 
Safeguards, U.S. Nuclear Regulatory Commission, Washington DC 20555, 
Mailstop O 13D13, telephone (301) 415-8500, fax (301) 415-8555.

    Dated in Rockville, Maryland, this 10th day of March, 2005.

    For the Nuclear Regulatory Commission.

Christopher M. Regan,
Senior Project Manager, Spent Fuel Project Office, Office of Nuclear 
Material Safety and Safeguards.
[FR Doc. 05-5280 Filed 3-16-05; 8:45 am]
BILLING CODE 7590-01-P