[Federal Register Volume 80, Number 22 (Tuesday, February 3, 2015)]
[Notices]
[Pages 5795-5798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-02067]
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
[Docket No. 50-302; NRC-2015-0010]
Duke Energy Florida, Inc.; Crystal River Unit 3 Nuclear
Generating Plant
AGENCY: Nuclear Regulatory Commission.
ACTION: Exemption; issuance.
-----------------------------------------------------------------------
SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing
exemptions in response to a March 28, 2014, request from Duke Energy
Florida, Inc. (DEF or the licensee), representing itself and the other
owners. The exemptions permit the use of the Crystal River Unit 3
Nuclear Generating Plant (CR-3) decommissioning trust fund (the Trust)
for irradiated fuel management and site restoration activities in
addition to decommissioning activities and allow the licensee to use
withdrawals from the Trust for these purposes without prior
notification to the NRC, similar to withdrawals for decommissioning
activities. The NRC has reviewed the Trust and determined that, at this
time, there is reasonable assurance of sufficient financial resources
in the Trust for both irradiated fuel management and site restoration
activities as well as to complete decommissioning activities.
ADDRESSES: Please refer to Docket ID NRC-2015-0010 when contacting the
NRC about the availability of information regarding this document. You
may obtain 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-2015-0010. 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 document 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: Michael Orenak, Office of Nuclear
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001; telephone: 301-415-3229; email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
DEF is the holder of Facility Operating License No. DPR-72, for CR-
3. By letter dated February 20, 2013 (ADAMS Accession No. ML13056A005),
DEF submitted to the NRC a certification in accordance with Sections
50.82(a)(1)(i) and 50.82(a)(1)(ii) of Title 10 of the Code of Federal
Regulations (10 CFR) indicating that it had permanently ceased power
operations at CR-3 and that the CR-3 reactor vessel had been
permanently defueled. CR-3 has not operated since September 2009.
By letter dated December 2, 2013, DEF submitted its Post Shutdown
Decommissioning Activities Report (PSDAR) and the Site Specific
Decommissioning Cost Estimate (DCE) as required by 10 CFR
50.82(a)(4)(i) and 10 CFR 50.82(a) (8)(iii)(ADAMS Accession No.
ML13340A009). By a separate letter dated December 2, 2013, DEF
submitted an update to the CR-3 Irradiated Fuel Management Plan (IFMP)
as required by 10 CFR 50.54(bb) (ADAMS Accession No. ML13340A008).
The facility consists of a permanently shutdown and defueled
pressurized-water reactor located in Citrus County, Florida.
II. Request/Action
Pursuant to 10 CFR 50.12, ``Specific exemptions,'' by letter dated
March 28, 2014 (ADAMS Accession No. ML14098A037), DEF submitted a
request for exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(2). The exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(2) would permit the withdrawal and use of a portion of the
funds in the Trust for financing irradiated fuel management and site
restoration activities. The licensee's requested exemption from 10 CFR
50.75(h)(2) would also permit the withdrawals from the Trust for these
activities to be made without prior notification of the NRC, in the
same manner that withdrawals are made
[[Page 5796]]
under 10 CFR 50.82(a)(8) for decommissioning activities.
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 to remove a facility or site safely from service and
reduce residual radioactivity to a level that permits release of the
property for unrestricted use and termination of the license; or
release of the property under restricted conditions and termination of
the license.
This definition addresses radiological decontamination and does not
include other activities, such as irradiated fuel management or site
restoration. 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 has
been completed. Therefore, exemptions from 10 CFR 50.82(a)(8)(i)(A) and
10 CFR 50.75(h)(2) are needed to allow DEF to withdraw funds from the
Trust 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 payments of ordinary administrative costs and other incidental
expenses of the Trust, no disbursement may be made from the Trust until
written notice of the intention to make a disbursement has been given
to the NRC at least 30 working days in advance of the intended
disbursement. Therefore, an exemption from 10 CFR 50.75(h)(2) is also
needed to allow DEF to withdraw funds from the Trust 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 the public health
and safety, and are consistent with the common defense and security;
and (2) when 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
The requested exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(2) would allow DEF to use a portion of the funds from the
Trust for irradiated fuel management and site restoration activities
without prior notice to the NRC, in the same manner that withdrawals
are made under 10 CFR 50.82(a)(8) for decommissioning activities. As
stated above, 10 CFR 50.12 allows the NRC to grant exemptions from the
requirements of 10 CFR part 50 when the exemptions are authorized by
law. The NRC staff has determined, as explained below, that granting
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 the Public Health and Safety
The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(2) is to provide reasonable assurance that adequate funds will
be available for radiological decommissioning of power reactors. Based
on the licensee's site-specific cost estimate and the NRC staff's cash
flow analysis, use of a portion of the Trust for irradiated fuel
management and site restoration activities will not adversely impact
DEF's ability to complete radiological decontamination within 60 years
and terminate the CR-3 license. Furthermore, exemption from 10 CFR
50.75(h)(2) to allow the licensee to make withdrawals from the Trust
for irradiated fuel management and site restoration activities without
prior written notification to the NRC should not affect the sufficiency
of funds in the Trust to accomplish radiological decontamination of the
site because such withdrawals are still constrained by the provisions
of 10 CFR 50.82(a)(8)(i)(B)-(C) and are reviewable under the annual
reporting requirements of 10 CFR 50.82(a)(8)(v)-(vii).
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, the requested exemptions will not present an undue
risk to the public health and safety.
C. Consistent With the Common Defense and Security
The requested exemptions would allow DEF to use funds from the
Trust for irradiated fuel management and site restoration activities.
Irradiated fuel management under 10 CFR 50.54(bb) is an integral part
of the planned DEF decommissioning and final license termination
process and will not adversely affect DEF's ability to physically
secure the site or protect special nuclear material. This change to
enable the use of a portion of the funds from the Trust for activities
other than decommissioning activities will also 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 the
requested exemptions.
D. 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 purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(2) is 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 Trust for activities other than decommissioning activities,
such as irradiated fuel management and site restoration activities,
until final radiological decommissioning at CR-3 has been completed.
The total CR-3 Decommissioning Trust Funds balance as of March 28,
2014, was $824.8 million in 2013 dollars. The DEF analysis in the PSDAR
and DCE projects the total radiological decommissioning cost of CR-3 to
be approximately $861.9 million (2013 dollars). As required by 10 CFR
50.54(bb), DEF estimated the costs associated with the long-term
irradiated fuel management at CR-3 to be $265.5 million in (2013
dollars). DEF also estimated the total expenditures for site
restoration to be $52.7 million (2013 dollars).
[[Page 5797]]
The NRC staff performed an independent cash flow analysis of the
Trust over the 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 the projected earnings of the Trust. The staff confirmed
that the current funds, planned future contributions, and projected
earnings of the Trust provide reasonable assurance of adequate funding
to complete all NRC-required decommissioning activities and that the
DCE demonstrates that adequate funds will also be available in the
Trust to conduct irradiated fuel management and site restoration
activities. The staff's review and conclusions are based on DEF's
specific financial situation as described in the PSDAR, DCE, IFMP, and
the March 28, 2014 letter.
Therefore, the staff finds that DEF has provided reasonable
assurance that adequate funds will be available for radiological
decommissioning of CR-3, even with the disbursement of funds from the
Trust for irradiated fuel management and site restoration activities.
Consequently, the staff concludes that application of the requirement
that funds from the Trust only be used for decommissioning activities
and not for irradiated fuel management and site restoration activities
is not necessary to achieve the underlying purpose of the rule and,
thus, that special circumstances are present supporting the approval of
the exemption request.
In its submittal, DEF also requested exemption from the
requirements of 10 CFR 50.75(h)(2) concerning prior written
notification to the NRC of withdrawals from the Trust to fund
activities other than decommissioning. 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)(2) and 10 CFR 50.82(a)(8) that could result in there being
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)(i)(A), the staff considers that withdrawals consistent with
the licensee's submittal dated March 28, 2014, are authorized. As
stated previously, the NRC staff has determined that there are
sufficient funds in the Trust to complete legitimate radiological
decommissioning activities as well as to conduct irradiated fuel
management and site restoration activities consistent with the PSDAR,
DCE, IFMP, and March 28, 2014 letter. Pursuant to the annual reporting
requirements in 10 CFR 50.82(a)(8)(v) through (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 the withdrawal of funds from the CR-3 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)(2) to allow the licensee to make
withdrawals from the Trust to cover authorized expenses for irradiated
fuel management and site restoration activities 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 Trust contains 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 the 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 that 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]). An unnecessary financial burden without any
corresponding safety benefit would be created if access to those excess
funds in the Trust was prevented because irradiated fuel management and
site restoration are not associated with radiological decommissioning.
The adequacy of the Trust 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 review of
the licensee's site-specific decommissioning cost analysis. If DEF
cannot use the Trust for irradiated fuel management and site
restoration activities, it would need to obtain additional funding that
would not be recoverable from the Trust, or DEF 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 purpose of 10 CFR 50.82(a)(8)(i)(A)
and 10 CFR 50.75(h)(2) would be achieved by allowing DEF to use a
portion of the Trust 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 and support the
approval of the requested exemptions.
E. Environmental Considerations
In accordance with 10 CFR 51.31(a), the Commission has determined
that the granting of the exemptions will not have a significant effect
on the quality of the human environment (see Environmental Assessment
and Finding of No Significant Impact published on January 23, 2015; 80
FR 3662).
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 DEF 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 CR-3 Trust for irradiated fuel management
and site restoration activities without prior NRC notification.
The exemptions are effective upon issuance.
[[Page 5798]]
Dated at Rockville, Maryland, this 26th day of January 2015.
For the Nuclear Regulatory Commission.
Michele G. Evans,
Director, Division of Operating Reactor Licensing, Office of Nuclear
Reactor Regulation.
[FR Doc. 2015-02067 Filed 2-2-15; 8:45 am]
BILLING CODE 7590-01-P