[Federal Register Volume 73, Number 5 (Tuesday, January 8, 2008)]
[Notices]
[Pages 1370-1371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-99]


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NUCLEAR REGULATORY COMMISSION

[Docket No: 50-409]


Dairyland Power Cooperative; La Crosse Boiling Water Reactor; 
Exemption

1.0 Background

    Dairyland Power Cooperative (DPC) (the licensee) is the holder of 
Possession Only License No. DPR-45 for the La Crosse Boiling Water 
Reactor (LACBWR) in Genoa, Wisconsin. The license provides, among other 
things, that the facility is subject to all rules, regulations, and 
orders of the U.S. Nuclear Regulatory Commission (NRC, the Commission) 
now or hereafter in effect.

2.0 Request/Action

    Title 10 of the Code of Federal Regulations (10 CFR), Part 74, 
Section 74.19(b) requires, in part, a licensee authorized to possess 
special nuclear material (SNM) in a quantity exceeding one effective 
kilogram at any one time to establish, maintain, and follow written 
material control and accounting (MC&A) procedures that are sufficient 
to enable the licensee to account for the SNM in its possession under 
license. Regulations at 10 CFR 74.19(c) require, in part, a licensee 
authorized to possess SNM, at any one time and site location, in a 
quantity greater than 350 grams of contained uranium-235, uranium-233, 
or plutonium, or any combination thereof, to conduct a physical 
inventory of all SNM in its possession under license at intervals not 
to exceed 12 months.
    On February 4, 1980, NRC issued a license amendment for LACBWR, 
approving an increase in the capacity of the spent fuel pool by using a 
vertical two-tier storage rack configuration. The two-tiered storage 
rack configuration does not allow observation of areas below occupied 
areas of the upper rack and does not allow observation of the areas 
below occupied areas of the lower rack, without fuel handling 
activities. Spent fuel pool loading was completed after LACBWR shutdown 
in 1987.
    Due to the physical layout of the spent fuel pool at LACBWR, fuel 
handling activities would need to occur in order for DPC to inventory 
all SNM in the LACBWR spent fuel pool. Historically, the licensee's 
annual physical inventory of SNM in the spent fuel pool consisted of 
verifying that each fuel assembly that can be observed (without fuel 
handling activity) is in its historical location and that no SNM items 
have been moved or are missing. In March 2006, NRC staff conducted an 
inspection of the MC&A safeguards program at LACBWR, which included 
review of the MC&A procedures and the annual physical inventory 
required in 10 CFR 74.19. The inspection resulted in a notice of 
violation related to the licensee's MC&A procedures and annual physical 
inventory of SNM.
    In response to the notice of violation, DPC requested an exemption 
from certain inventory-related requirements of 10 CFR 74.19(b) and 10 
CFR 74.19(c), in a letter dated July 26, 2006. The exemption would 
limit the handling of fuel assemblies, due to the associated risks 
(fuel handling accident, fuel assembly damage, further fuel rod segment 
displacement from existing damaged fuel assemblies), and result in 
decreased radiation doses to workers. DPC wishes to rely upon the 
historical MC&A record at LACBWR to provide positive means of 
verification in performance of annual physical inventory of SNM. The 
licensee would also continue to use security measures or controls to 
assure no unauthorized access or diversion of contents from the spent 
fuel pool. DPC has commenced

[[Page 1371]]

the preliminary stages of a dry cask storage project and requests 
exemption from these requirements until such time that LACBWR spent 
fuel is moved to dry cask storage, which is currently expected to occur 
in 2010.
    NRC staff reviewed DPC's request and issued a request for 
additional information on February 8, 2007. DPC provided the additional 
information on March 21, 2007.

3.0 Discussion

    Pursuant to 10 CFR 74.7, the Commission may, upon application of 
any interested person or upon its own initiative, grant such exemptions 
from the requirements of the regulations in 10 CFR Part 74 as it 
determines are authorized by law and will not endanger life or property 
or the common defense and security, and are otherwise in the public 
interest. The underlying purpose of 10 CFR 74.19 is to provide 
recordkeeping requirements for material control and accounting of SNM, 
including requirements for procedures and for conduct of an annual 
physical inventory of all SNM.
    In 2006, while conducting work (that required fuel handling) in the 
spent fuel pool, DPC was able to observe most of the fuel assemblies. 
No historical records discrepancies were found with respect to the 
lower tier fuel assemblies that were observed during that time. 
However, some fuel assemblies in the lower tier of the spent fuel pool 
have not been observed since 1987. Regarding these assemblies, the 
licensee must observe them by the completion of its next annual 
inventory, using existing procedures for any fuel handling needed, to 
confirm the assemblies are in the locations indicated by the accounting 
records. After DPC confirms the locations of the remaining assemblies 
in the lower tier of the spent fuel pool (that have not been observed 
since 1987) by completion of its next annual inventory, the licensee's 
claim of thorough MC&A documentation dating back to 1987 can be 
verified.
    Since all assemblies will have been observed over a two-year period 
by the completion of the next inventory period in 2008, and the 
licensee has commenced the preliminary stages of a dry cask storage 
project that currently indicates that assemblies will be removed from 
the spent fuel pool within the next few years, the staff has determined 
that it will be sufficient for the licensee to continue its current 
inventory practice with regard to assemblies, following the 2008 
inventory campaign. This approach will help prevent the future movement 
of certain fuel assemblies that might result in unnecessary fuel 
breakage, while still meeting the intent of the recordkeeping 
requirements of 10 CFR 74.19.
    The licensee committed in its March 21, 2007, letter to place in 
the fuel debris storage baskets, all fuel rod segments and debris 
retrieved in the future. The licensee must inventory, on an annual 
basis, the contents of the stainless steel baskets that contain fuel 
pellets and other debris. The licensee must also revise all pertinent 
procedures to incorporate those future actions. In addition, the 
licensee must observe and note the presence of each bottom tier 
assembly prior to an assembly being placed above it in the upper tier 
position. The licensee must also provide significant revisions to the 
dry storage project plan and/or timeline to the NRC in a timely manner 
(within 45 days).
    The NRC staff has determined that granting of the licensee's 
proposed exemption, with certain conditions discussed above, will not 
result in a violation of the Atomic Energy Act of 1954, as amended, or 
the Commission's regulations. Therefore, the exemption is authorized by 
law.

4.0 Conclusion

    Given the above considerations, the NRC staff concludes that by 
granting the proposed exemption with the above conditions, the 
underlying purpose of the requirements in 10 CFR 74.19 will be met. The 
Commission has determined that, pursuant to 10 CFR 74.7, the exemption 
is authorized by law, will not endanger life or property or the common 
defense and security, and is otherwise in the public interest. 
Therefore, the Commission hereby grants DPC an exemption from certain 
inventory-related requirements of 10 CFR 74.19(b) and 10 CFR 74.19(c) 
for LACBWR, provided the licensee satisfies the conditions set forth in 
the discussion above. This exemption will expire at the time the fuel 
is transferred to dry cask storage.
    Pursuant to 10 CFR 51.32, the Commission has determined that the 
granting of this exemption will have no significant impact on the 
environment (72 FR 73383, December 27, 2007).

    Dated at Rockville, Maryland, this 28th day of December 2007.
    For the Nuclear Regulatory Commission.
Keith I. McConnell,
Acting Director, Division of Waste Management and Environmental 
Protection, Office of Federal and State Materials and Environmental 
Management Programs.
[FR Doc. E8-99 Filed 1-7-08; 8:45 am]
BILLING CODE 7590-01-P