[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]
BILLING CODE 7590-01-P