[Federal Register Volume 79, Number 103 (Thursday, May 29, 2014)]
[Notices]
[Pages 30900-30902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-12486]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-305; NRC-2014-0125]
License Exemption Request for Dominion Energy Kewaunee, Inc.
AGENCY: Nuclear Regulatory Commission.
ACTION: Exemption; issuance.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is granting
exemptions in response to a request from Dominion Energy Kewaunee, Inc.
(DEK or the licensee) dated April 4, 2013, as supplemented by letter
dated November 6, 2013. The exemptions would permit the use of a
portion of the Kewaunee Power Station (KPS) decommissioning trust fund
(Trust) for expenses related to irradiated fuel management, and to be
able to make such withdrawals from the trust fund without prior
notification of the NRC. The NRC has reviewed the KPS Trust, the
decommissioning approach and cost estimates in the KPS Post-Shutdown
Decommissioning Activities Report (PSDAR), and the KPS updated
Irradiated Fuel Management Plan and determined that, at this time,
there is sufficient financial resources in the trust for both
irradiated fuel management and to complete decommissioning activities.
ADDRESSES: Please refer to Docket ID NRC-2014-0125 when contacting the
NRC about the availability of information regarding this document. You
may access publicly-available information related to this document
using any of the following methods:
Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2014-0125. Address
questions about NRC dockets to Carol Gallagher; telephone: 301-287-
3422; email: [email protected]. For technical questions, contact
the individual(s) listed in the FOR FURTHER INFORMATION CONTACT section
of this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may access publicly available documents online in the
ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``ADAMS Public Documents'' and
then select ``Begin Web-based ADAMS Search.'' For problems with ADAMS,
please contact the NRC's Public Document Room (PDR) reference staff at
1-800-397-4209, 301-415-4737, or by email to [email protected]. The
ADAMS Accession number for each document referenced in this document
(if that document is available in ADAMS) is provided the first time
that a document is referenced.
NRC's PDR: You may examine and purchase copies of public
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555
Rockville Pike, Rockville, Maryland 20852.
FOR FURTHER INFORMATION CONTACT: Jeanne A. Dion, telephone: 301-415-
1349, email: [email protected]; or William Huffman, telephone: 301-
415-2046, email: [email protected]. Both of the Office of Nuclear
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington DC
20555-0001.
I. Background
Dominion Energy Kewaunee is the holder of Renewed Facility
Operating License No. DPR-43. By letter dated February 25, 2013 (ADAMS
Accession No. ML13058A065), DEK, submitted a certification to the NRC
indicating it would permanently cease power operations at the Kewanee
Power Station (KPS) on May 7, 2013. On May 7, 2013, DEK permanently
ceased power operation at KPS. On May 14, 2013, DEK certified that it
had permanently defueled the KPS reactor vessel (ADAMS Accession No.
ML13135A209).
The facility consists of a permanently shutdown and defueled
pressurized water reactor located in Kewaunee County, Wisconsin.
II. Request/Action
On April 4, 2013, DEK submitted a request for exemptions (ADAMS
Accession No. ML13098A031) from Section 50.82(a)(8)(i)(A) and Section
50.75(h)(1)(iv) of Part 50 of Title 10 of the Code of Federal
Regulations (10 CFR). The exemptions from 10 CFR 50.82(a)(8)(i)(A) and
10 CFR 50.75(h)(1)(iv) would permit withdrawal and use of a portion of
the funds from the KPS Trust for irradiated fuel management consistent
with the KPS updated Irradiated Fuel Management Plan and the KPS PSDAR.
The licensee also requested an exemption from 10 CFR 50.75(h)(1)(iv)
that would permit withdrawals from the Trust for irradiated fuel
management activities without prior notification of the NRC, in the
same manner as withdrawals are made under 10 CFR 50.82(a)(8) for
decommissioning activities. By separate letters dated February 26,
2013, and April 25, 2014, DEK submitted updates to the KPS Irradiated
Fuel Management Plan as required by 10 CFR 50.54(bb) (ADAMS Accession
Nos. ML13059A028 and ML14119A120). By separate letters dated February
26, 2013, and April 25, 2014, DEK submitted its PSDAR and a revision to
the PSDAR, as required by 10 CFR 50.82(a)(4)(i) (ADAMS Accession Nos.
ML13063A248 and ML14118A382). In addition, DEK supplemented the April
4, 2013, submittal with a letter dated November 6, 2013 (ADAMS
Accession No. ML13312A916), in which DEK committed to executing a
Parent Company Guarantee in the amount of up to $60 million if
supplemental decommissioning funds are needed in the future. This
Parent Company Guarantee will provide additional financial assurance
that sufficient funding is available for decommissioning and irradiated
fuel management beyond those funds already available in the Trust.
The requirements of 10 CFR 50.82(a)(8)(i)(A) restrict the use of
decommissioning trust fund withdrawals to expenses for legitimate
decommissioning activities consistent
[[Page 30901]]
with the definition of decommissioning in 10 CFR 50.2, which reads as
follows:
``to remove a facility or site safely from service and reduce
residual radioactivity to a level that permits--
(1) Release of the property for unrestricted use and termination
of the license; or
(2) Release of the property under restricted conditions and
termination of the license.''
The definition does not include activities associated with
irradiated fuel management. The requirements of 10 CFR 50.75(h)(1)(iv)
also restrict the use of decommissioning trust fund disbursements
(other than for ordinary and incidental expenses) to decommissioning
expenses until final decommissioning is completed. Therefore,
exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) are
needed to allow DEK to withdraw funds from the Trust for irradiated
fuel management prior to completion of all decommissioning activities.
The requirements of 10 CFR 50.75(h)(1)(iv) further provide that,
except for decommissioning withdrawals being made under 10 CFR
50.82(a)(8) or for payment of ordinary and incidental expenses, no
disbursement may be made from the Trust without written notice to the
NRC at least 30 working days in advance. Therefore an exemption from 10
CFR 50.75(h)(1)(iv) is also needed to allow DEK to withdraw funds from
the Trust for irradiated fuel management without prior NRC
notification.
III. 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) any of the special circumstances listed in 10 CFR 50.12(a)(2) are
present. These special circumstances include, among other things, the
following:
(a) Application of the regulation in the particular circumstances
would not serve the underlying purpose of the rule or is not necessary
to achieve the underlying purpose of the rule; or
(b) Compliance would result in undue hardship or other costs that
are significantly in excess of those contemplated when the regulation
was adopted, or that are significantly in excess of those incurred by
others similarly situated.
A. Special Circumstances
Special circumstances, in accordance with 10 CFR 50.12(a)(2)(ii),
are present whenever application of the regulation in the particular
circumstances is not necessary to achieve the underlying purpose of the
rule.
The underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(1)(iv) are to provide reasonable assurance that adequate funds
will be available for decommissioning of power reactors. Strict
application of these requirements would prohibit withdrawal of funds
from the Trust for activities associated with irradiated fuel
management until final decommissioning at KPS has been completed.
DEK's total Trust balance as of December 31, 2013, was $649.3
million. According to the PSDAR, DEK intends to use SAFSTOR as its
initial decommissioning approach. The DEK analysis in the PSDAR
projects that the total cost of decommissioning KPS to be approximately
$532.8 million (2012 dollars). As required by 10 CFR 50.54(bb), DEK
estimated the costs associated with the long-term irradiated fuel
management at $278.4 million (2012 dollars). DEK estimated expenditures
for site restoration at $34.8 million (2012 dollars).
The staff performed an independent cash flow analysis of the Trust
over the projected 60 years of decommissioning activities (assuming an
annual real rate of return of 2%, as allowed by 10 CFR 50.75(e)(1)(ii))
and determined a projected earnings of the Trust of $393.3 million. The
staff confirms that there is presently adequate funding to complete all
decommissioning activities based on the current funds and projected
earnings of the Trust. In addition, DEK committed to executing a Parent
Company Guarantee in the amount of up to $60 million if supplemental
decommissioning funds are needed in the future pursuant to 10 CFR
50.82(a)(8)(iv). This Parent Company Guarantee provides additional
financial assurance that sufficient funding is available for
decommissioning and irradiated fuel management beyond those funds
already available in the Trust.
The staff concludes, at this time, that the site-specific
decommissioning cost analysis demonstrates adequate funds are available
in the Trust for irradiated fuel management and completion of
decommissioning within 60 years. The staff's review and conclusions are
based on DEK's specific financial situation and decommissioning
approach as described in the KPS PSDAR and the updated Irradiated Fuel
Management Plan. Therefore, DEK has demonstrated reasonable assurance
that sufficient funding will be available for both decommissioning and
for irradiated fuel management and that the exemptions from the
requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv),
with respect to use of the trust funds for irradiated fuel management,
will still achieve the underlying purposes of the rules.
In its submittal, DEK also requested exemption from the
requirements of 10 CFR 50.75(h)(1)(iv) concerning prior written
notification to the NRC for withdrawals from the Trust for irradiated
fuel management activities. The underlying purpose of notifying the NRC
prior to withdrawal of funds from the Trust is to provide opportunity
for NRC intervention, when deemed necessary, if the withdrawals are for
expenses other than those authorized by 10 CFR 50.75(h)(1)(iv) and 10
CFR 50.82(a)(8) that could result in insufficient funds in the Trust to
accomplish radiological decontamination of the site.
By granting the exemptions to 10 CFR 50.75(h)(1)(iv) and 10 CFR
50.82(a)(8) to allow withdrawals from the Trust for irradiated fuel
management, the staff considers that the withdrawals consistent with
the KPS updated Irradiated Fuel Management Plan are authorized. As
stated previously, the staff has determined that there are sufficient
funds in the Trust to complete legitimate decommissioning activities,
as well as management of irradiated fuel consistent with the KPS PSDAR
and updated Irradiated Fuel Management Plan. Pursuant to the annual
reporting requirements in 10 CFR 50.82(a)(8)(v)-(vii), licensees are
required to monitor and report the status of the decommissioning trust
fund and the funding status for managing irradiated fuel. These reports
provide NRC awareness of and the ability to take action on any actual
or potential funding deficiencies. The requested exemption would not
allow withdrawal of funds from the KPS Trust for any other purpose that
is not currently authorized in the regulations without prior
notification to the NRC. Therefore, the granting of this exemption to
10 CFR 50.75(h)(1)(iv) to allow the licensee to make withdrawals from
the Trust to cover authorized expenses for irradiated fuel management
without prior written notification to the NRC will still meet the
underlying purpose of the regulation.
Special circumstances, in accordance with 10 CFR 50.12(a)(2)(iii)
are present whenever compliance would result in
[[Page 30902]]
undue hardship or other costs that are significantly in excess of those
contemplated when the regulation was adopted, or that are significantly
in excess of those incurred by others similarly situated.
The licensee states that the Trust contains funds in excess of the
estimated costs of radiological decommissioning and that these excess
funds are needed for irradiated fuel management. The NRC does not
preclude use of funds from the decommissioning trust in excess of those
needed for radiological decommissioning for other purposes, such as
irradiated fuel management or site restoration. The NRC has stated that
funding for irradiated fuel management may be commingled in the
decommissioning trust provided the licensee is able to identify and
account the radiological decommissioning funds separately from the
funds set aside for irradiated fuel management (see NRC Regulatory
Issue Summary 2001-07, Rev 1, ``10 CFR 50.75 Reporting and
Recordkeeping for Decommissioning Planning'' dated January 8, 2009
[ADAMS Accession No. ML083440158], and Regulatory Guide 1.184, Rev 1,
``Decommissioning of Nuclear Power Reactors,'' [ADAMS Accession No.
ML13144A840]). To prevent access to those excess funds in the Trust
because irradiated fuel management is not associated with radiological
decommissioning would create an unnecessary financial burden without
any corresponding safety benefit. The adequacy of the Trust to cover
the cost of activities associated with irradiated fuel management in
addition to radiological decommissioning is supported by the staff's
site-specific decommissioning cost analysis. If DEK cannot use its
Trust for irradiated fuel management activities, it would need to
obtain additional funding that would not be recoverable from the Trust,
or DEK would have to modify its decommissioning approach and methods.
The NRC staff concludes that either outcome would impose an unnecessary
and undue burden significantly in excess of that contemplated when the
regulation was adopted.
Therefore, since the underlying purposes of 10 CFR
50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1(iv) would be achieved by
allowing DEK to use a portion of the Trust for irradiated fuel
management without prior NRC notification, and compliance with the
rules would result in an undue hardship or other costs that are
significantly in excess of those contemplated when the regulation was
adopted, the special circumstances required by 10 CFR 50.12(a)(2)(ii)
and 10 CFR 50.12(a)(2)(iii) exist.
B. Authorized by Law
The exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(1(iv) would allow DEK to use a portion of the funds from the
Trust for irradiated fuel management, consistent with the KPS updated
Irradiated Fuel Management Plan and PSDAR, and would allow DEK to
withdraw funds from the trust for irradiated fuel management activities
without prior notice to the NRC. As stated 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.
C. No Undue Risk to Public Health and Safety
The underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(1)(iv) are to provide reasonable assurance that adequate funds
will be available for decommissioning of power reactors. Based on the
site-specific cost estimate and the cash flow analysis, use of a
portion of the Trust for irradiated fuel management will not adversely
impact the DEK's ability to terminate the KPS license (i.e., complete
radiological decontamination) within 60 years, consistent with the
schedule and costs contained in the KPS updated Irradiated Fuel
Management Plan and PSDAR. Furthermore, exemption from 10 CFR
50.75(h)(1)(iv) to allow the licensee to make authorized withdrawals
from the Trust to cover expenses for irradiated fuel management without
prior written notification to the NRC should not affect the sufficiency
of funds in the Trust to accomplish radiological decontamination of the
site.
Based on the above, no new accident precursors are created by using
the Trust in the proposed manner. Thus, the probability of postulated
accidents is not increased. Also, based on the above, the consequences
of postulated accidents are not increased. No changes are being made in
the types or amounts of effluents that may be released offsite. There
is no significant increase in occupational or public radiation
exposure. Therefore, there is no undue risk to public health and
safety.
D. Consistent With the Common Defense and Security
The proposed exemption would allow DEK to use a portion of the
funds from the Trust for irradiated fuel management, consistent with
the KPS updated Irradiated Fuel Management Plan and PSDAR. Irradiated
fuel management is an integral part of the planned KPS decommissioning
process as discussed in the KPS PSDAR and should not adversely affect
DEK's ability to physically secure the site or protect special nuclear
material. This change to enable use of a portion of the funds from the
Trust for irradiated fuel management will not alter the scope of, or
availability of funding for the licensee's security program. Therefore,
the common defense and security is not impacted by this exemption.
E. Environmental Considerations
In accordance with 10 CFR 51.31(a), the Commission has determined
that the granting of this exemption will not have a significant effect
on the quality of the human environment (see Environmental Assessment
and Finding of No Significant Impact published on May 2, 2014; 79 FR
25156).
IV. Conclusions
Accordingly, the Commission has determined that, pursuant to 10 CFR
50.12(a), the exemptions are authorized by law, will not present an
undue risk to the public health and safety, and are consistent with the
common defense and security. Also, special circumstances are present.
Therefore, the Commission hereby grants DEK exemptions from the
requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) to
allow withdrawals from the KPS Trust for irradiated fuel management in
accordance with the KPS updated Irradiated Fuel Management Plan and
PSDAR, without prior notice to the NRC. The granting of this exemption
does not allow withdrawal of funds from the KPS Trust for any other
purpose that is not currently authorized in the regulations without
prior notification to the NRC.
The exemptions are effective upon issuance.
Dated at Rockville, Maryland, this 21st day of May, 2014.
For the Nuclear Regulatory Commission.
Michele G. Evans,
Director, Division of Operating Reactor Licensing, Office of Nuclear
Reactor Regulation.
[FR Doc. 2014-12486 Filed 5-28-14; 8:45 am]
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