[Federal Register Volume 80, Number 120 (Tuesday, June 23, 2015)]
[Notices]
[Pages 35992-35995]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15473]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-271; NRC-2015-0157]


Entergy Nuclear Operations, Inc.; Vermont Yankee Nuclear Power 
Station

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 January 6, 2015, request from Entergy 
Nuclear Operations, Inc. (ENO or the licensee). One exemption permits 
the use of the Vermont Yankee Nuclear Power Station (VY) 
Decommissioning Trust Fund (Trust) to implement the licensee's plan to 
manage irradiated fuel in accordance with the updated Irradiated Fuel 
Management Plan and post-shutdown decommissioning activities report 
(PSDAR). The other exemption permits the licensee to make withdrawals 
from the Trust in accordance with the updated Irradiated Fuel 
Management Plan and PSDAR without prior notification to the NRC.

DATES: June 23, 2015.

ADDRESSES: Please refer to Docket ID NRC-2015-0157 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-2015-0157. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For technical questions, contact 
the individual 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 (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: James Kim, Office of Nuclear Reactor 
Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001; telephone: 301-415-4125; email: [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    Entergy Nuclear Operations, Inc. (ENO), is the holder of Renewed 
Facility Operating License No. DPR-28 for VY. By letter dated January 
12, 2015 (ADAMS Accession No. ML15013A426), ENO 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 VY 
and had permanently defueled the VY reactor vessel. VY has not operated 
since December 29, 2014. The facility consists of a boiling water 
reactor located in the town of Vernon, Windham County, Vermont on the 
west bank of the Connecticut River, immediately upstream of the Vernon 
Hydroelectric Station.

II. Request/Action

    By letter dated January 6, 2015 (ADAMS Accession No. ML15013A171), 
ENO submitted a request for exemptions from 10 CFR 50.82(a)(8)(i)(A) 
and 10 CFR 50.75(h)(1)(iv). The exemption from 10 CFR 50.82(a)(8)(i)(A) 
would permit ENO to make withdrawals from the VY Trust to implement its 
plan to manage irradiated fuel in accordance with the updated 
Irradiated Fuel Management Plan and PSDAR. The exemption from 10 CFR 
50.75(h)(1)(iv) would permit ENO to make these withdrawals without 
prior notification of the NRC, similar to withdrawals for 
decommissioning activities made in accordance with 10 CFR 50.82(a)(8). 
By a separate letter dated December 19, 2014 (ADAMS Accession No. 
ML14358A251), ENO submitted an

[[Page 35993]]

update to the VY Irradiated Fuel Management Plan (as required by 10 CFR 
50.54(bb)). The PSDAR, as required by 10 CFR 50.82(a)(4)(i), was also 
submitted on December 19, 2014 (ADAMS Accession No. ML14357A110).
    The requirements of 10 CFR 50.82(a)(8)(i)(A) restrict the use of 
Trust withdrawals to expenses for legitimate decommissioning activities 
consistent with the definition of decommissioning which appears in 10 
CFR 50.2. This definition does not include activities associated with 
irradiated fuel management. Therefore, an exemption from 10 CFR 
50.82(a)(8)(i)(A) is needed to allow ENO to use funds from the Trust 
for irradiated fuel management.
    The requirements of 10 CFR 50.75(h)(1)(iv) also restrict the use of 
Trust disbursements (other than for ordinary and incidental expenses) 
to decommissioning expenses until final decommissioning has been 
completed. The requirements of 10 CFR 50.75(h)(1)(iv) further provide 
that, except for withdrawals being made under 10 CFR 50.82(a)(8) or for 
payments of ordinary administrative costs 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 needed to allow ENO to use 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 (1) when 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. The Exemptions are Authorized by Law

    The requested exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) would allow ENO to use a portion of the funds from the 
Trust for irradiated fuel management 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. The Exemptions Present 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)(1)(iv) is 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 a portion of the Trust for irradiated fuel management will not 
adversely impact ENO's ability to complete radiological decommissioning 
within 60 years and terminate the VY license. Furthermore, exemption 
from 10 CFR 50.75(h)(1)(iv) to allow the licensee to make withdrawals 
from the Trust 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 
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, there are no new accident precursors 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. The Exemptions are Consistent With the Common Defense and Security

    The requested exemptions would allow ENO to use funds from the 
Trust for irradiated fuel management. Irradiated fuel management under 
10 CFR 50.54(bb) is an integral part of the planned ENO decommissioning 
and final license termination process and will not adversely affect 
ENO'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 has no 
relation to security issues. 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 
regulation.
    The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) 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, until final 
radiological decommissioning at VY has been completed.
    The total VY Trust balance as of October 31, 2014, was 
approximately $655.0 million in 2014 dollars. The ENO analysis projects 
the total radiological decommissioning cost of VY to be approximately 
$817.2 million (2014 dollars). As required by 10 CFR 50.54(bb), ENO 
estimated the costs associated with the long-term irradiated fuel 
management at VY to be $364.4 million in 2014 dollars.
    The staff performed an independent cash flow analysis of the Trust 
through 2075, assuming an annual real rate of return of two percent, 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 to conduct irradiated fuel 
management in accordance with the updated Irradiated Fuel Management 
Plan and PSDAR. The staff's review and conclusions are based on ENO's 
specific financial situation, as described in its December 19, 2014,

[[Page 35994]]

letter. 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 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, ENO also requested exemption from the 
requirements of 10 CFR 50.75(h)(1)(iv) concerning prior written 
notification to the NRC of withdrawals from the Trust to fund 
activities other than decommissioning activities. The underlying 
purpose of notifying the NRC prior to withdrawal of funds from the 
Trust is to provide an 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 there being insufficient funds in the Trust to accomplish 
radiological decommissioning of the site.
    As stated previously, the 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. 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 Trust 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 exemptions would not allow withdrawal of funds from the VY 
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 for 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 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 activities. The NRC does not preclude use of funds from 
the Trust in excess of those needed for radiological decommissioning 
for other purposes, such as irradiated fuel management. The NRC has 
stated that funding for irradiated fuel management may be commingled in 
the 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, Revision 1, ``10 CFR 50.75 Reporting and Recordkeeping for 
Decommissioning Planning'' dated January 8, 2009 (ADAMS Accession No. 
ML083440158), and Regulatory Guide 1.184, Revision 1, ``10 CFR 50.75 
Reporting and Recordkeeping for Decommissioning Planning'' (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 site-specific decommissioning cost analysis. If ENO cannot use 
its Trust for irradiated fuel management, it would need to obtain 
additional funding that would not be recoverable from the Trust, or ENO 
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.
    Since the underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) would be achieved by allowing ENO to use a portion of 
the Trust for irradiated fuel management without prior NRC 
notification, and compliance with the regulations 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

    Under 10 CFR 51.22(c)(25), granting of an exemption from the 
requirements of any regulation of Chapter I is a categorical exclusion 
provided that (i) there is no significant hazards consideration; (ii) 
there is no significant change in the types or significant increase in 
the amounts of any effluents that may be released offsite; (iii) there 
is no significant increase in individual or cumulative public or 
occupational radiation exposure; (iv) there is no significant 
construction impact; (v) there is no significant increase in the 
potential for or consequences from radiological accidents; and (vi) the 
requirements from which an exemption is sought are among those 
identified in 10 CFR 51.22(c)(25)(vi).
    The Director, Division of Operating Reactor Licensing, Office of 
Nuclear Reactor Regulation, has determined that approval of the 
exemption request involves no significant hazards consideration because 
allowing the licensee to use withdrawals from the Trust, in accordance 
with the updated Irradiated Fuel Management Plan and PSDAR, without 
prior notification to the NRC at the permanently shutdown and defueled 
VY power reactor, does not (1) involve a significant increase in the 
probability or consequences of an accident previously evaluated; or (2) 
create the possibility of a new or different kind of accident from any 
accident previously evaluated; or (3) involve a significant reduction 
in a margin of safety. The exempted decommissioning trust fund 
regulations are unrelated to any operational restriction. Accordingly, 
there is no significant change in the types or significant increase in 
the amounts of any effluents that may be released offsite; and no 
significant increase in individual or cumulative public or occupational 
radiation exposure. The exempted regulation is not associated with 
construction, so there is no significant construction impact. The 
exempted regulation does not concern the source term (i.e., potential 
amount of radiation in an accident), nor mitigation. Thus, there is no 
significant increase in the potential for or consequences from 
radiological accidents. The requirements for using decommissioning 
trust funds for decommissioning activities and for providing prior 
written notice for other withdrawals from which the exemption is sought 
involve recordkeeping requirements, reporting requirements, or other 
requirements of an administrative, managerial, or organizational 
nature.
    Therefore, pursuant to 10 CFR 51.22(b) and 51.22(c)(25), no 
environmental impact statement or environmental assessment need be 
prepared in connection with the approval of this exemption request.

IV. Conclusions

    Accordingly, the Commission has determined that, pursuant to 10 CFR

[[Page 35995]]

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 ENO 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 VY Trust for irradiated fuel management 
without prior NRC notification.
    The exemptions are effective upon issuance.

    Dated at Rockville, Maryland, this 17th day of June 2015.

    For the Nuclear Regulatory Commission.
A. Louise Lund,
Acting Director, Division of Operating Reactor Licensing, Office of 
Nuclear Reactor Regulation.
[FR Doc. 2015-15473 Filed 6-22-15; 8:45 am]
 BILLING CODE 7590-01-P