[Federal Register Volume 79, Number 178 (Monday, September 15, 2014)]
[Notices]
[Pages 55019-55022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-21932]
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NUCLEAR REGULATORY COMMISSION
[Docket Nos. 50-361 and 50-362; NRC-2014-0170]
Southern California Edison Company; San Onofre Nuclear Generating
Station, Units 2 and 3
AGENCY: Nuclear Regulatory Commission.
ACTION: Exemption; issuance.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing
exemptions in response to a February 13, 2014, request from Southern
California Edison Company (SCE, or the licensee), representing itself
and the other owners. The exemptions would permit the use of San Onofre
Nuclear Generating Station (SONGS), Units 2 and 3, decommissioning
Trust funds for purposes other than decommissioning activities and
would allow the licensee to use withdrawals from the decommissioning
Trust funds without prior notification to the NRC. The NRC has reviewed
the Trusts and determined that, at this time, there is reasonable
assurance of sufficient financial resources in the Trusts to complete
decommissioning activities.
ADDRESSES: Please refer to Docket ID NRC-2014-0170 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-2014-0170. 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: Thomas Wengert, Office of Nuclear
Reactor Regulation, 301-415-4037; [email protected]; U.S. Nuclear
Regulatory Commission, Washington, DC 20555-0001.
[[Page 55020]]
SUPPLEMENTARY INFORMATION:
I. Background
Southern California Edison Company (SCE), San Diego Gas & Electric
Company, City of Riverside Utilities Department, and the City of
Anaheim, California, (the licensees), are the holders of Facility
Operating License Nos. NPF-10 and NPF-15, for SONGS, Units 2 and 3,
respectively. SCE is authorized to act as the agent of the other
owners. By letter dated June 12, 2013 (ADAMS Accession No.
ML131640201), SCE submitted a certification to the U.S. NRC indicating
it permanently ceased power operations at the SONGS Units 2 and 3 on
June 7, 2013. By letters dated July 22, 2013 (ADAMS Accession No.
ML13204A304), and June 28, 2013 (ADAMS Accession No. ML13183A391),
respectively, SCE certified that it had permanently defueled the SONGS
Units 2 and 3 reactor vessels.
The facility consists of two permanently shutdown and defueled
pressurized-water reactors located in San Diego County, California.
II. Request/Action
By letter dated February 13, 2014 (ADAMS Accession No.
ML14051A632), SCE submitted a request for exemptions from Section
50.82(a)(8)(i)(A) and Section 50.75(h)(2) 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)(2) would permit withdrawal and
the use of a portion of the funds in the SCE Decommissioning Trust
Funds (Trusts) for financing irradiated fuel management and site
restoration activities. The licensee's requested exemption from 10 CFR
50.75(h)(2) would permit Trust withdrawals to be made without prior
notification of the NRC, in the same manner as withdrawals are made
under 10 CFR 50.82(a)(8) for decommissioning activities. The licensee
supplemented this exemption request by letter dated March 12, 2014
(ADAMS Accession No. ML14078A028).
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 with the definition of
decommissioning in 10 CFR 50.2. The definition of ``decommission'' in
10 CFR 50.2 is 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 other activities, such as
irradiated fuel management or site restoration activities. The
requirements of 10 CFR 50.75(h)(2) also restrict the use of
decommissioning Trust fund disbursements (other than for ordinary
administrative costs and incidental expenses) to decommissioning
expenses until final radiological decommissioning is completed.
Therefore, exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(2) are needed to allow SCE to withdraw funds from the Trusts
for activities other than decommissioning activities prior to
completion of all radiological decommissioning activities.
The requirements of 10 CFR 50.75(h)(2) 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)(2)
is also needed to allow SCE to withdraw funds from the Trusts for
activities other than decommissioning activities 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. Authorized by Law
These exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(2) would allow SCE to use a portion of the funds from the
Trusts for activities other than decommissioning 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
exemptions will not result in a violation of the Atomic Energy Act of
1954, as amended, or the Commission's regulations. Therefore, the
exemptions are authorized by law.
B. 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)(2) are to provide reasonable assurance that adequate funds
will be available for radiological decommissioning of power reactors.
Based on the site-specific cost estimate and the cash flow analysis,
use of the Trusts in the proposed manner will not adversely impact
SCE's ability to complete radiological decontamination within 60 years
and terminate the SONGS licenses. Furthermore, exemption from 10 CFR
50.75(h)(2) to allow the licensee to make withdrawals from the Trusts
without prior written notification to the NRC should not affect the
sufficiency of funds in the Trusts to accomplish radiological
decontamination of the site.
Based on the above, no new accident precursors are created by using
the Trusts 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.
C. Consistent With the Common Defense and Security
The proposed exemptions would allow SCE to use funds from the
Trusts for irradiated fuel management and site restoration. Irradiated
fuel management under 10 CFR 50.54(bb) is an integral part of the
planned SCE decommissioning and final license termination process and
will not adversely affect SCE'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 Trusts for activities other than
decommissioning activities 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.
[[Page 55021]]
D. Special Circumstances
Special circumstances, in accordance with 10 CFR 50.12(a)(2), 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)(2) are to provide reasonable assurance that adequate funds
will be available for radiological decommissioning of power reactors.
Strict application of these requirements would prohibit withdrawal of
funds from the Trusts for activities other than decommissioning
activities until final radiological decommissioning at SONGS, Units 2
and 3 has been completed.
The SONGS, Units 2 and 3 total Decommissioning Trust Funds balance
as of December 31, 2013, was $3,926 million in 2013 dollars. The SCE
analysis projects that the total radiological decommissioning cost of
SONGS to be approximately $1,769 million (2013 dollars). As required by
10 CFR 50.54(bb), SCE estimated the costs associated with the long-term
irradiated fuel management at $1,487 million in (2013 dollars). The
total expenditures for site restoration are estimated at $1,098 million
(2013 dollars). The NRC staff performed an independent cash flow
analysis of the Trusts through 2051 (assuming an annual real rate of
return of 2%, as allowed by 10 CFR 50.75(e)(1)(ii)) and determined the
projected earnings of the Trust. The staff confirmed that the current
funds, planned future contributions and projected earnings of the
Trusts provide reasonable assurance of adequate funding to complete all
NRC required decommissioning activities, and that SCE's site-specific
decommissioning cost analysis demonstrates adequate funds are available
in the Trusts to also conduct irradiated fuel management and site
restoration activities. The staff's review and conclusions are based on
SCE's specific financial situation as described in the February 13,
2014, and March 12, 2014, letters. Therefore, SCE has demonstrated
reasonable assurance that sufficient funding will be available for
radiological decommissioning, irradiated fuel management, and site
restoration activities and that the exemptions from the requirements of
10 CFR 50.82(a)(8)(i)(A) and 50.75(h)(2), with respect to the use of
funds from the Trusts for irradiated fuel management and site
restoration activities, will still achieve the underlying purposes of
the rule.
In its submittal, SCE also requested exemption from the
requirements of 10 CFR 50.75(h)(2) concerning prior written
notification to the NRC of withdrawals from the Trusts to fund
activities other than decommissioning activities. The underlying
purpose of notifying the NRC prior to withdrawal of funds from the
Trusts 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)(2) 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)(2) and 10 CFR
50.82(a)(8), the staff considers that withdrawals consistent with the
licensee's submittal dated February 13, 2014, as supplemented on March
12, 2014, are authorized. As stated previously, the NRC staff has
determined that there are sufficient funds in the Trusts to complete
legitimate radiological decommissioning activities and to conduct
irradiated fuel management and site restoration activities. 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 the NRC with 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 SONGS Trusts 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)(2) to
allow the licensee to make withdrawals from the Trusts 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 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 Trusts contain funds in excess of the
estimated costs of radiological decommissioning and that these excess
funds are needed for irradiated fuel management and site restoration
activities. 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 and other site restoration activities may be commingled
in the decommissioning Trust provided the licensee is able to identify
and account for 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 Trusts
because irradiated fuel management and site restoration are not
associated with radiological decommissioning would create an
unnecessary financial burden without any corresponding safety benefit.
The adequacy of the Trusts to cover the cost of activities associated
with irradiated fuel management and site restoration in addition to
radiological decommissioning is supported by the NRC staff's site-
specific decommissioning cost analysis. If SCE cannot use its Trusts
for irradiated fuel management and site restoration activities, it
would need to obtain additional funding that would not be recoverable
from the Trusts, or SCE 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)(2) would be achieved by allowing
SCE to use a portion of the Trusts for irradiated fuel management and
site restoration activities 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.
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
[[Page 55022]]
of No Significant Impact published on July 23, 2014, 79 FR 42837).
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 SCE exemptions from the
requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) to
allow withdrawals from the SONGS, Units 2 and 3 Trusts, for irradiated
fuel management and site restoration activities without prior NRC
notification.
The exemptions are effective upon issuance.
Dated at Rockville, Maryland, this 5th day of September 2014.
For the Nuclear Regulatory Commission.
A. Louise Lund, Acting Director,
Division of Operating Reactor Licensing, Office of Nuclear Reactor
Regulation.
[FR Doc. 2014-21932 Filed 9-12-14; 8:45 am]
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