[Federal Register Volume 73, Number 115 (Friday, June 13, 2008)]
[Notices]
[Pages 33858-33859]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-13321]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-293]
Entergy Nuclear Operations, Inc.; Pilgrim Nuclear Power Station
Exemption
1.0 Background
Entergy Nuclear Operations, Inc. (Entergy or the licensee) is the
holder of Facility Operating License No. DPR-35, which authorizes
operation of the Pilgrim Nuclear Power Station (Pilgrim). The license
provides, among other things, that the facility is subject to all
rules, regulations, and orders of the Nuclear Regulatory Commission
(NRC or the Commission) now or hereafter in effect.
The facility consists of a boiling-water reactor located in
Plymouth County, Massachusetts.
2.0 Request/Action
Title 10 of the Code of Federal Regulations (10 CFR), Part 50,
Sec. 50.75(f)(3), requires that ``Each power reactor licensee shall at
or about 5 years prior to the projected end of operations submit a
preliminary decommissioning cost estimate which includes an up-to-date
assessment of the major factors that could affect the cost to
decommission.'' Section 50.75(f)(5) requires a licensee at the same
time to include, if necessary, plans to adjust funding levels to
demonstrate a reasonable level of financial assurance, that funds will
be available when needed for decommissioning. The current operating
licensee expires on June 8, 2012.
In summary, by letter dated February 28, 2008, Agencywide Documents
Access and Management System (ADAMS) accession number ML081000176,
Entergy requested an exemption to the schedule requirement of 10 CFR
50.75(f)(3) to allow Entergy to submit the Pilgrim site-specific
preliminary cost estimate by August 1, 2008, which is less than 4 years
from the date of the expiration of the operating license. The exemption
request applies to the timing of the submission of the preliminary cost
estimate and did not request an exemption from any of the information
requirements of the regulation.
3.0 Discussion
Pursuant to 10 CFR 50.12, the Commission may, upon application by
any interested person or upon its own initiative, grant exemptions from
the requirements of 10 CFR Part 50 when (1) the exemptions are
authorized by law, will not present an undue risk to public health or
safety, and are consistent with the common defense and security; and
(2) when special circumstances are present. One of these special
circumstances, described in 10 CFR 50.12(a)(2)(ii), is that the
application of the regulation is not necessary to achieve the
underlying purpose of the rule.
As documented in the Decommissioning Considerations for 1991 Rules
and Regulations, the underlying purpose of 10 CFR 50.75(f)(3) is to
provide a preliminary decommissioning plan, a cost estimate for
implementing the plan, and any changes in funding necessary to ensure
that there will be sufficient funds for decommissioning.
The NRC staff reviewed the licensee's evaluation in support of the
subject exemption request. Entergy submitted the decommissioning
funding status report for Pilgrim on March 26, 2008. The NRC staff
calculated Pilgrim's required minimum funding assurance based on the
formula under 10 CFR 50.75. The trust fund balances to the midpoint of
decommissioning (December 2015), as effectively allowed under NRC
regulations, was also calculated by applying a 2 percent real rate of
return. Based on the formula amount, the Pilgrim decommissioning trust
fund has an excess of $125 million as of December 31, 2007, and will
have an excess of more than $200 million by the time of expiration of
the license.
Entergy submitted a license renewal application (LRA) for Pilgrim
on January 25, 2006, which was approximately 6.5 years prior to the
expiration date of the operating license for Pilgrim Station. In
connection with the LRA, the final supplemental environmental impact
statement was issued on July 27, 2007, and the safety evaluation report
for the LRA was issued on June 28, 2007. Subsequently, the safety
evaluation report was issued as NUREG-1891 on November 30, 2007.
Although the licensee stated that the review of the LRA and milestones
achieved constitute ``a clear indication'' that the LRA will be
granted, the NRC does not agree.
Entergy's exemption request essentially relies on the fact that its
LRA is pending before the NRC, certain milestones have been met, and
that Entergy anticipates the NRC will render a final decision on the
LRA on or about August 1, 2008. Entergy cites selected language from
the statement of considerations for the proposed rule for license
renewal, as well as language from the statement of considerations for
the final license renewal rule, to support its exemption request.
Entergy argues that the level of review, thus far, on the
[[Page 33859]]
LRA and the achievement of certain milestones ``represent a clear
indication that the Pilgrim LRA would be ultimately approved.''
Therefore, the Commission should waive the requirement for a
preliminary cost estimate, according to Entergy. Entergy further argues
that ``approximately four years prior to the expiration date of the
current operating license * * * is within interpretation of the
regulation'' requiring a preliminary cost estimate at or about 5 years
prior to the projected end of operations.
The NRC does not agree that the review, thus far, of the LRA and
milestones achieved constitute ``a clear indication'' that the LRA will
be granted. Moreover, the NRC does not agree that submitting a
preliminary cost estimate less than 4 years prior to license expiration
is within interpretation of the requirements of 10 CFR 50.75(f)(3).\1\
Therefore, based on the arguments presented by Entergy, an exemption is
not warranted.
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\1\ If Entergy believes that submitting a preliminary cost
estimate less than 4 years prior to the date of license expiration
is ``within interpretation of the regulation,'' then it is not clear
why Entergy has filed this exemption request. The NRC staff notes
that Entergy has not claimed that the ``projected end of
operations'' unexpectedly moved to an earlier date as a result in
change of circumstance (for example, early permanent shutdown), thus
resulting in a period of time spent to submit a preliminary cost
estimate well short of the 5 years.
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However, the NRC has considered the current funding levels of
Pilgrim's decommissioning trust and the underlying purpose of 10 CFR
50.75(f)(3). Moreover, the NRC staff is not aware of any information
indicating that the preliminary decommissioning cost estimate for
Pilgrim is likely to be higher than the current minimum formula amount
to such a degree that a problematic underfunding situation will exist
that would require a full 5-year period to rectify.
Authorized by Law
This exemption would allow Entergy to submit the Pilgrim site-
specific preliminary cost estimate by August 1, 2008, which is less
than 4 years from the date of the expiration of the operating license.
As stated in Section 3.0 above, 10 CFR 50.12 allows the NRC to grant
exemptions from the requirements of 10 CFR Part 50. The NRC staff has
determined that granting of the licensee's proposed exemption 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.
No Undue Risk To Public Health And Safety
The underlying purpose of 10 CFR 50.75(f)(3), is to ensure that all
power reactor licensees maintain minimum decommissioning funding
assurance that a facility will be able to decontaminate to NRC
standards before a license is terminated. The exemption request applies
to the timing of the submission of the preliminary cost estimate and
did not request an exemption from any of the information requirements
of the regulation.
Based on the above, no new accident precursors are created by
allowing Entergy to submit the Pilgrim site-specific preliminary cost
estimate by August 1, 2008, which is less than 4 years from the date of
the expiration of the operating license. Similarly, the probability of
postulated accidents is not increased. Therefore, there is no undue
risk (since risk is probability multiplied by consequences) to public
health and safety.
Consistent With Common Defense And Security
The proposed exemption would allow Entergy to submit the Pilgrim
site-specific preliminary cost estimate by August 1, 2008, which is
less than 4 years from the date of the expiration of the operating
license. This change to the plant requirements for the preliminary
decommissioning cost estimate submittal has no relation to security
issues. Therefore, the common defense and security is not impacted by
this exemption.
Special Circumstances
One of the special circumstances, described in 10 CFR
50.12(a)(2)(ii), is that the application of the regulation is not
necessary to achieve the underlying purpose of the rule. The underlying
purpose of 10 CFR 50.75(f)(3), is to ensure that all power reactor
licensees maintain minimum decommissioning funding assurance that a
facility will be able to decontaminate to NRC standards before a
license is terminated. The NRC staff finds that the preliminary
decommissioning cost estimate for Pilgrim is not likely to be higher
than the current minimum formula amount to such a degree that a
problematic underfunding situation will exist that would require a full
5-year period to rectify.
Based upon consideration of the information in the licensee's
submittal, the NRC staff concludes that this exemption meets the
underlying purpose of the rule.
4.0 Conclusion
Accordingly, the Commission has determined that, pursuant to 10 CFR
50.12(a), the exemption is authorized by law, will not present an undue
risk to the public health and safety, and is consistent with the common
defense and security. In addition, a special circumstance is present
such that the application of the regulation in these particular
circumstances is not necessary to achieve the underlying purpose of the
rule. Therefore, the Commission hereby grants Entergy a schedule
exemption from the requirement of 10 CFR 50.75(f)(3) to submit the
Pilgrim site-specific preliminary cost estimate by August 1, 2008.
Pursuant to 10 CFR 51.32, the Commission has determined that the
granting of this exemption will not have a significant effect on the
quality of the human environment (73 FR32607).
This exemption is effective upon issuance.
Dated at Rockville, Maryland, this 9th day of June 2008.
For the Nuclear Regulatory Commission.
Timothy McGinty,
Acting Director, Division of Operating Reactor Licensing, Office of
Nuclear Reactor Regulation.
[FR Doc. E8-13321 Filed 6-12-08; 8:45 am]
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