[Federal Register Volume 79, Number 62 (Tuesday, April 1, 2014)]
[Notices]
[Pages 18326-18328]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-07243]
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NUCLEAR REGULATORY COMMISSION
[NRC-2013-0252]
Order Approving Direct Transfer of Licenses and Conforming
Amendments
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In the Matter of:
Calvert Cliffs Nuclear Power Plant, Docket Nos. 50-317, 50-318,
LLC) Exeloon Generation Company, LLC 72-8
(Calvert Cliffs Nuclear Power Plant License Nos. DPR-53, DPR-69,
Units 1 and 2 and Independent Spent SNM-2505.
Fuel Storage Instllation).
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I
Calvert Cliffs Nuclear Power Plant, LLC (Calvert Cliffs, LLC or the
licensee), is the holder of Renewed Facility Operating License Nos.
DPR-53 and DPR-69 and Materials License No. SNM-2505, which authorizes
the possession, use, and operation of Calvert Cliffs Nuclear Power
Plant, Units 1 and 2 (Calvert Cliffs 1 and 2 or the facility),
including an Independent Spent Fuel Storage Installation (ISFSI). The
facility and its ISFSI are located in Calvert County, Maryland.
II
By application dated August 6, 2013, as supplemented by letters and
emails dated August 14, 2013, September 23 and 26, 2013, December 17,
2013, January 9, 2014, and February 5, 10, 14, and 21, 2014 (together,
the application), Constellation Energy Nuclear Group, LLC (CENG)
requested on behalf of itself, its subsidiary licensee, Calvert Cliffs,
LLC, and Exelon Generation Company, LLC (Exelon Generation) (together,
the applicants), that the U.S. Nuclear Regulatory Commission (NRC)
approve the proposed direct transfer of operating authority of the
facility and its ISFSI to Exelon Generation. The applicants also
requested approval of conforming license amendments that would reflect
the proposed transfer of operating authority to Exelon Generation.
Prior to the transfer, Exelon Generation was an intermediate 50.01
percent parent company of CENG, which is the parent company owner of
Calvert Cliffs, LLC. After completion of the proposed transfer, Exelon
Generation would remain an intermediate parent company and also become
the co-licensee of Calvert Cliffs, LLC and the operator of Calvert
Cliffs 1 and 2. Exelon Generation will assume direct licensed
responsibility for the operation of the facility and its ISFSI, but the
ownership will not be affected. There will be no physical changes to
the facility and no adverse changes in day-to-day operations.
Approval of the direct transfer of the renewed facility operating
licenses, the materials license, and conforming amendments was
requested by the applicants pursuant to Sections 50.80, 50.90, and
72.50 of Title 10 of the Code of Federal Regulations (10 CFR). A notice
entitled, ``Consideration of Approval of Transfer of Renewed Facility
Operating Licenses, Materials Licenses, and Conforming Amendments
Containing Sensitive Unclassified Non-Safeguards Information,'' was
published in the Federal Register on December 26, 2013 (78 FR 78411).
No comments or hearing requests were received.
Pursuant to 10 CFR 50.80 and 72.50, no license, or any right
thereunder, shall be transferred, directly or indirectly, through
transfer of control of the license, unless the NRC shall give its
consent in writing. Upon review of the information in the application,
and other information before the Commission, the NRC staff has
determined that Exelon Generation is qualified to acquire and hold the
operating authority under the licenses previously held by the licensee,
and that the transfer of the licenses, as proposed in the application,
is otherwise consistent with the applicable provisions of law,
regulations, and orders issued by the Commission, pursuant thereto,
subject to the conditions set forth below. The NRC staff has further
found that the application for the proposed conforming amendments
complies with the standards and requirements of the Atomic Energy Act
of 1954, as amended (the Act), and the Commission's rules and
regulations set forth in 10 CFR Chapter I; the facilities will operate
in conformity with the application, the provisions of the Act and the
rules and regulations of the Commission; there is reasonable assurance
that the activities authorized by the proposed license amendments can
be conducted without endangering the health and safety of the public
and that such activities will be conducted in compliance with the
Commission's regulations; the issuance of the proposed conforming
amendments will not be inimical to the common defense and security or
to the health and safety of the public; and the issuance of the
proposed conforming amendments will be in accordance with 10 CFR Part
51 of the Commission's regulations and all applicable requirements have
been satisfied.
The findings set forth above are supported by the NRC staff's
safety evaluation dated the same day as this Order.
III
Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the
Act, 42 U.S.C. Sections 2201(b), 2201(i), 2201(o), and 2234; and 10 CFR
50.80 and 72.50, it is hereby ordered that the direct license transfer
of the operating authority of the licenses from the licensee to Exelon
Generation, as described herein, is approved, subject to the following
conditions:
1. The existing E.D.F. International S.A.S. Support Agreement of
approximately $145 million, dated November 6, 2009, may not be amended
or modified without 30 days prior written notice to the Director of the
Office of Nuclear Reactor Regulation or
[[Page 18327]]
his designee. Calvert Cliffs, LLC, CENG, or Exelon Generation shall not
take any action to cause E.D.F. International S.A.S., or its successors
and assigns, to void, cancel, or materially modify the E.D.F.
International S.A.S. Support Agreement or cause it to fail to perform,
or impair its performance under the E.D.F. International S.A.S. Support
Agreement, without the prior written consent of the NRC. Exelon
Generation shall inform the NRC in writing no later than 14 days after
any funds are provided to or for the CENG subsidiary licensee under the
E.D.F. International S.A.S. Support Agreement.
2. Exelon Corporation shall, no later than the time the license
transfers occur, enter into a Support Agreement of approximately $245
million with the licensee. The Exelon Corporation Support Agreement
shall supersede the Support Agreement provided by Exelon Generation,
dated March 12, 2012, in all respects and shall be consistent with the
representations contained in the August 6, 2013 transfer application.
Calvert Cliffs, LLC, CENG, or Exelon Generation shall not take any
action to cause Exelon Corporation, or its successors and assigns, to
void, cancel, or materially modify the Exelon Corporation Support
Agreement or cause it to fail to perform, or impair its performance
under the Exelon Corporation Support Agreement, without the prior
written consent of the NRC. The Exelon Corporation Support Agreement
may not be amended or modified without 30 days prior written notice to
the Director of the Office of Nuclear Reactor Regulation or his
designee. An executed copy of the Exelon Corporation Support Agreement
shall be submitted to the NRC no later than 30 days after the
completion of the proposed transaction and license transfers. Exelon
Generation shall inform the NRC in writing no later than 14 days after
any funds are provided to or for the licensee under the Exelon
Corporation Support Agreement.
3. Exelon Corporation shall, no later than the time the license
transfers occur, provide a parent guarantee in the amount of $165
million to ensure a source of funds for the facility in the event that
the existing cash pool between the licensee and CENG is insufficient to
cover operating costs. The existing CENG cash pool arrangement shall be
consistent with the representations contained in the 2009 Transfer
Application dated January 22, 2009 (ADAMS Accession No. ML090290101).
Calvert Cliffs, LLC, CENG, or Exelon Generation shall not take any
action to cause Exelon Corporation, or its successors and assigns, to
void, cancel or materially modify the parent guarantee or cause it to
fail to perform, or impair its performance under the parent guarantee
without the prior written consent of the NRC.
4. Within 14 days of the license transfers, Exelon Generation shall
submit to the NRC the Nuclear Operating Services Agreement reflecting
the terms set forth in the application dated August 6, 2013. Section
7.1 of the Nuclear Operating Services Agreement may not be modified in
any material respect related to financial arrangements that would
adversely impact the ability of the licensee to fund safety-related
activities authorized by the license without the prior written consent
of the Director of the Office of Nuclear Reactor Regulation.
5. Within 10 days of the license transfers, Exelon Generation shall
submit to the NRC the amended CENG Operating Agreement reflecting the
terms set forth in the application dated August 6, 2013. The amended
and restated Operating Agreement may not be modified in any material
respect concerning decisionmaking authority over safety, security and
reliability without the prior written consent of the Director of the
Office of Nuclear Reactor Regulation.
6. At least half the members of the CENG Board of Directors must be
U.S. citizens.
7. The CENG Chief Executive Officer, Chief Nuclear Officer, and
Chairman of the CENG Board of Directors must be U.S. citizens. These
individuals shall have the responsibility and exclusive authority to
ensure and shall ensure that the business and activities of CENG with
respect to the facility's license are at all times conducted in a
manner consistent with the public health and safety and common defense
and security of the United States.
8. CENG will retain its Nuclear Advisory Committee (NAC) composed
of U.S. citizens who are not officers, directors, or employees of CENG,
EDF Inc., Constellation Nuclear, LLC, or CE Nuclear, LLC. The NAC will
report to, and provide transparency to, the NRC and other U.S.
governmental agencies regarding foreign ownership and control of
nuclear operations.
9. The NAC shall prepare an annual report regarding the status of
foreign ownership, control, or domination of the licensed activities of
power reactors under the control, in whole or part, of CENG. The NAC
report shall be submitted to the NRC within 30 days of completion, or
by January 31 of each year (whichever occurs first). No action shall be
taken by CENG or any entity to cause Constellation Nuclear, LLC, Exelon
Generation, or their parent companies, subsidiaries or successors to
modify the NAC report before submittal to the NRC. The NAC report shall
be made available to the public, with the potential exception of
information that meets the requirements for withholding such
information from public disclosure under the regulations of 10 CFR
2.390, ``Public Inspections, Exemptions, Requests for Withholding.''
10. Before completion of the direct transfer of the Calvert Cliffs
1 and 2 and ISFSI licenses, Exelon Generation shall provide the
Director of the Office of Nuclear Reactor Regulation satisfactory
documentary evidence that the licensees have obtained the appropriate
amount of primary and secondary insurance, and have complied with the
requirements of 10 CFR Part 140 of the Commission's regulations.
It is further ordered that consistent with 10 CFR 2.1315(b), the
amendments that make changes, as indicated in Enclosure 2 to the cover
letter forwarding this Order, to conform the licenses to reflect the
subject direct transfer, are approved. The license amendments shall be
issued and made effective at the time the proposed direct transfer
action is consummated.
It is further ordered that after receipt of all required regulatory
approvals for the proposed direct transfer action, Exelon Generation
shall inform the Director of the Office of Nuclear Reactor Regulation
in writing of such receipt no later than 2 business day prior to the
date of the closing of the direct transfer. Should the proposed direct
transfer not be completed within one year of this Order's date of
issuance, this Order shall become null and void, provided, however,
upon written application and good cause shown, such date may be
extended by order.
This Order is effective upon issuance.
For further details with respect to this Order, see the application
and the non-proprietary safety evaluation dated the same date as this
Order, which are available for public inspection at the Commission's
Public Document Room (PDR), located at One White Flint North, Public
File Room O-1 F21, 11555 Rockville Pike (first floor), Rockville,
Maryland. Publicly available documents created or received at the NRC
are accessible electronically through Agencywide Documents Access and
Management System (ADAMS) in the NRC Library at 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 by telephone at 1-800-397-4209, or
301-
[[Page 18328]]
415-4737, or by email to [email protected].
Dated at Rockville, Maryland this 24th day of March 2014.
For the Nuclear Regulatory Commission.
Eric J. Leeds,
Director, Office of Nuclear Reactor Regulation.
Catherine Haney,
Director, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 2014-07243 Filed 3-31-14; 8:45 am]
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