[Federal Register Volume 73, Number 191 (Wednesday, October 1, 2008)]
[Notices]
[Pages 57156-57157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-23107]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 40-3392]


Honeywell International, Inc.; Honeywell Metropolis Works; 
Environmental Assessment and Finding of No Significant Impact

    The U.S. Nuclear Regulatory Commission (NRC) is considering 
issuance of an exemption from 10 CFR 30, Appendix C, for Materials 
License No. SUB-456, issued to Honeywell International, Inc. (Honeywell 
or the licensee), for operation of the Honeywell Metropolis Works, 
located in Metropolis, Illinois. As required by 10 CFR 51.21, the NRC 
has prepared this environmental assessment and finds that granting the 
exemption request will have no significant impact.

Environmental Assessment

Identification of the Proposed Action

    The proposed action would allow Honeywell an extension of a one-
year exemption, previously granted by NRC via letter dated May 11, 
2007, from a portion of the financial test in 10 CFR 30, Appendix C, 
which requires that Honeywell's year end tangible net worth be equal to 
at least ten times its total decommissioning liabilities. The exemption 
granted by NRC allowed Honeywell to include goodwill in the 
determination of tangible net worth and was contained in License 
Condition (LC) -27 in its Materials License No. SUB-526 renewed on May 
11, 2007. The proposed action is in accordance with the licensee's 
application dated April 11, 2008, as supplemented by letter dated May 
15, 2008.

The Need for the Proposed Action

    The proposed action would allow Honeywell an extension of a 
previously approved exemption from the same portion of the financial 
test in 10 CFR 30, Appendix C, until the earlier occurrence of (1) May 
11, 2009, or (2) the effective date of a final rule amending 10 CFR 
Part 30 consistent with the proposed rule published in the Federal 
Register on January 22, 2008.
    Since May 26, 1994, Honeywell has provided a corporate self-
guarantee as financial assurance for decommissioning as required by 10 
CFR Part 30 Appendix C (as made applicable by 10 CFR Part 40.36(e)(2)). 
However, in a letter dated November 3, 2006, Honeywell notified NRC 
that it was unable to meet the tangible net worth part of the financial 
test as required by 10 CFR Part 30 Appendix C. The regulations require, 
among other things, that the licensees have tangible net worth of at 
least 10 times the decommissioning obligation. Honeywell's tangible net 
worth no longer meets the 10 to 1 ratio test, which means that absent 
an exemption, it would no longer be eligible to use the self-guarantee. 
The regulations require that Honeywell provide alternate financial 
assurance within 120 days after notifying the NRC that it is no longer 
qualified to use the self-guarantee.
    In a letter dated December 1, 2006, Honeywell submitted a request 
under the provisions of 10 CFR 40.14 for an exemption from 10 CFR 30, 
Appendix C, that it be allowed to include goodwill in the determination 
of tangible net worth for the purpose of the ratio test. On May 11, 
2007, NRC approved the renewal of Honeywell Materials License No. SUB-
456 and documented its review in a Safety Evaluation Report (SER) 
enclosed with the renewed license. In Section 11.5 of this SER, 
Honeywell was granted a one-year exemption from the tangible net worth 
portion of the financial test which is stipulated in 10 CFR Part 30 
Appendix C, Section II. This exemption allowed Honeywell to use 
goodwill in its calculation of net worth. This exemption was granted 
based on many factors that were documented in the SER including 
Honeywell's bond rating of ``A'' as assigned by Standard & Poor's. The 
SER outlined that a company with an ``A'' bond rating had a relatively 
low probability of default, and that this default rate was almost non-
existent during any given one-year time period.
    As Honeywell's one-year exemption expired on May 11, 2008, 
Honeywell seeks to extend this exemption until the earlier of (1) May 
11, 2009 (i.e. , an additional one year period) or (2) the effective 
date of a final rule amending 10 CFR Part 30 consistent with the 
proposed rule published in the Federal Register on January 22, 2008.

Environmental Impacts of the Proposed Action

    The NRC has completed its safety evaluation of the proposed action 
and concludes the proposed action to be acceptable. The details of the 
staff's safety evaluation will be provided in the exemption that will 
be issued as part of the letter to the licensee approving the exemption 
request dated April 11, 2008.
    The proposed action will not significantly increase the probability 
or consequences of accidents. No changes are being made in the types of 
effluents that may be released off site. There is no significant 
increase in the amount of any effluent released off site. There is no 
significant increase in occupational or public radiation exposure. 
Therefore, there are no significant radiological environmental impacts 
associated with the proposed action.
    With regard to potential non-radiological impacts, the proposed 
action does not have a potential to affect any historic sites. It does 
not affect non-radiological plant effluents and has no other 
environmental impact. Therefore, there are no significant non-
radiological environmental impacts associated with the proposed action. 
Accordingly, the NRC concludes that there are no significant 
environmental impacts associated with the proposed action.

Environmental Impacts of the Alternatives 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). 
Denial of the application would result in additional licensee resources 
being expended on the alternate financial assurance methods which would 
increase the likelihood that funds for decommissioning will not be 
available when needed.

Alternative Use of Resources

    The action does not involve the use of any different resources than 
those

[[Page 57157]]

previously considered in the Environmental Assessment for Renewal of 
NRC License No. SUB-526 for the Honeywell Specialty Materials 
Metropolis Work Facility, dated June 30, 2006.

Agencies and Persons Consulted

    On August 6, 2008, the staff consulted with the Illinois State 
official, Gerald Steele of the Illinois Environmental Protection 
Agency, regarding the environmental impact of the proposed action. The 
State official had no comments.

Finding of No Significant Impact

    On the basis of the environmental assessment, the NRC concludes 
that the proposed action will not have a significant effect on the 
quality of the human environment. Accordingly, the NRC has determined 
not to prepare an environmental impact statement for the proposed 
action.

Further Information

    For further details with respect to the proposed action, see the 
licensee's letter dated April 11, 2008, as supplemented on May 15, 
2008. Documents may be examined, and/or copied for a fee, at the NRC's 
Public Document Room (PDR), located at One White Flint North, 11555 
Rockville Pike (first floor), Rockville, Maryland. Publicly available 
records will be accessible electronically from the Agencywide Documents 
Access and Management System (ADAMS) Public Electronic Reading Room on 
the NRC Web site, http://www.nrc.gov/reading-rm/adams.html. Persons who 
do not have access to ADAMS or who encounter problems in accessing the 
documents located in ADAMS should contact the NRC PDR Reference staff 
at 1-800-397-4209, or 301-415-4737, or send an e-mail to [email protected].

    Dated at Rockville, Maryland, this 22nd day of August 2008.

    For the Nuclear Regulatory Commission
Michael D. Tschiltz,
Acting Director, Division of Fuel Cycle Safety and Safeguards, Office 
of Material Safety and Safeguards.
 [FR Doc. E8-23107 Filed 9-30-08; 8:45 am]
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