[Federal Register Volume 81, Number 147 (Monday, August 1, 2016)]
[Notices]
[Pages 50566-50568]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18144]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-005; NRC-2016-0153]


Pennsylvania State University Breazeale Nuclear Reactor

AGENCY: Nuclear Regulatory Commission.

ACTION: Exemption; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
exemption in response to a letter dated November 6, 2014, from the 
Pennsylvania State University (Penn State). In this letter, Penn State 
requested an exemption from certain regulatory requirements, which, if 
granted, would allow Penn State to submit its annual financial results 
within 180 days after the close of each succeeding fiscal year. The NRC 
staff

[[Page 50567]]

has reviewed this request and determined that it is appropriate to 
grant the exemption, as requested.

ADDRESSES: Please refer to Docket ID NRC-2016-0153 when contacting the 
NRC about the availability of information about 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-2016-0153. 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 obtain publicly available documents online in the 
ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``Begin Web-based ADAMS 
Search.'' For assistance 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.
     The NRC's PDR: 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: Xiaosong Yin, Office of Nuclear 
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001; telephone: 301-415-1404; email: [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    Penn State is holder of Facility Operating License No. R-2, which 
authorizes operation of the TRIGA Mark III Breazeale Reactor, located 
at University Park, Pennsylvania. Penn State seeks an extension from 90 
to 180 days by exemption from compliance with section 50.75 of title 10 
of the Code of Federal Regulations (10 CFR), ``Reporting and 
recordkeeping for decommissioning planning,'' and appendix E, 
``Criteria Relating to Use of Financial Tests and Self-Guarantee for 
Providing Reasonable Assurance of Funds for Decommissioning by 
Nonprofit Colleges, Universities, and Hospitals,'' to 10 CFR part 30, 
``Rules of general applicability to domestic licensing of byproduct 
material.'' The regulations in 10 CFR part 30, appendix E, require that 
a nonprofit college, university, or hospital using a self-guarantee for 
decommissioning funding assurance shall, after the initial financial 
test, repeat passage of the test and provide financial documentation to 
the NRC of its continued eligibility to use the self-guarantee 90 days 
after the close of each succeeding fiscal year.

II. Request/Action

    By letter dated November 6, 2014 (ADAMS Accession No. ML14321A408), 
Penn State requested that the NRC grant a 90-day extension to the 
reporting requirements of 10 CFR 50.75 and 10 CFR part 30, appendix E. 
Penn State made this request under 10 CFR 50.12, ``Specific 
exemptions.''
    Penn State is currently using a self-guarantee to provide financial 
assurance for decommissioning, as allowed by 10 CFR 50.75(e)(1)(iii)(C) 
for nonprofit entities such as universities. The regulation states that 
``. . . a guarantee of funds by the applicant or licensee may be used 
if the guarantee and test are as contained in appendix E to 10 CFR part 
30.''
    The regulations in 10 CFR part 30, appendix E, require all entities 
using a self-guarantee to provide financial assurance for 
decommissioning to submit annual financial tests within 90 days after 
the close of each succeeding fiscal year to demonstrate their continued 
eligibility.
    The regulations in 10 CFR 50.12 allow the NRC to grant exemptions 
to the requirements in 10 CFR part 50, ``Domestic licensing of 
production and utilization facilities,'' if it deems that the 
exemptions are authorized by law, will not present an undue risk to 
public health and safety, and are consistent with the common defense 
and security. The regulations in 10 CFR 50.12 also specify that the NRC 
will not consider granting an exemption unless special circumstances 
are present; for example, 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 compliance would result in undue hardship.
    Penn State requests an exemption from the requirement to submit its 
annual financial results information within 90 days after the close of 
each succeeding fiscal year. Instead, Penn State's exemption request 
asks to submit this information within 180 days after the close of each 
succeeding fiscal year.
    According to Penn State, the requested exemption is permissible 
under 10 CFR 50.12 because it will not present a risk to public health 
and safety, it is consistent with the common defense and security, and 
the 90-day requirement is not necessary to achieve the underlying 
purpose of the decommissioning funding rule. Penn State states that it 
presented the basis for a longer financial recertification time period 
during the license renewal process (see ADAMS Accession No. 
ML092650603) and claims that the 90-day rule presents an undue hardship 
for Penn State. Specifically, Penn State's final financial statements 
are not available within 90 days of the close of its fiscal year. In 
part, this is a result of the time necessary for auditing the 
university finances as a whole, not just the finances for the Breazeale 
Reactor, which makes the process complex and longer to complete. In 
addition, Penn State asserts that the requested exemption in no way 
reduces the effectiveness of the approved decommissioning plan.
    Based on the staff's review of Penn State's request for exemption, 
the NRC believes that Penn State's comprehensive financial reviewing 
process, which involves Penn State's book balancing, external audits, 
and the internal approval processes for recertification, does present a 
special circumstance whereby the 90-day rule will result in an undue 
hardship to Penn State. In addition, the NRC believes that allowing 
Penn State to submit its annual financial results within 180 days 
instead of 90 days after the close of the succeeding fiscal year will 
not reduce the effectiveness of its currently approved decommissioning 
funding plan. Furthermore, the NRC finds that granting this exemption 
will not present an undue risk to public health and safety, is 
consistent with the common defense and security, and does not undermine 
the intent of the stated regulations. Therefore, the NRC has elected to 
grant Penn State an exemption to the requirement of 10 CFR part 50 and 
appendix E to 10 CFR part 30, allowing Penn State to submit its annual 
financial results within 180 days of the close of the succeeding fiscal 
year.
    The NRC notes that Penn State has made good faith efforts to comply 
with these annual financial reporting requirements. The NRC also notes 
that the Pennsylvania Department of Environmental Protection, Bureau of 
Radiation Protection, issued a similar exemption to Penn State's Type A 
Broad Scope license (Commonwealth of Pennsylvania PA-0100).

[[Page 50568]]

III. Discussion

The Exemption Is Authorized by Law

    The staff concluded that 10 CFR 50.12 allows for an exemption to 
the requirements of the regulations in 10 CFR 50.75 and appendix E to 
10 CFR part 30.

The Exemption Presents No Undue Risk to Public Health and Safety

    The staff determined that the exemption is related to the Penn 
State financial surety self-guarantee annual reporting, which does not 
involve Penn State's reactor operation and safety aspects. Therefore, 
the exemption presents no undue risk to public health and safety.

The Exemption Is Consistent With the Common Defense and Security

    The staff determined that the exemption is related to the Penn 
State financial surety self-guarantee annual reporting, which does not 
involve Penn State's reactor operation and safety aspects. Therefore, 
granting the exemption will have no effect on the common defense and 
security.

Environmental Considerations

    The staff determined that granting an exemption from the 
requirements of 10 CFR part 50 and appendix E to 10 CFR part 30 belongs 
to a category of regulatory actions eligible for categorical exclusion. 
Since this exemption involves only Penn State's self-guarantee 
financial surety reporting and does not involve the operations of the 
Penn State Breazeale Reactor, there is no significant hazards 
consideration, there is no significant change in the types or 
significant increase in the amounts of any effluents that may be 
released off site, there is no significant increase in individual or 
cumulative public or occupational radiation exposure, there is no 
significant construction impact; and there is no significant increase 
in the potential for or consequences from radiological accidents as a 
result of the NRC granting this exemption. The requirements from which 
the exemption is sought involve surety, insurance, or indemnity 
requirements. The exemption meets all categorical exclusion 
requirements of 10 CFR 51.22(c)(25)(i) through (vi). Therefore, in 
accordance with 10 CFR 51.22(c)(25)(vi)(H), the staff determines that 
an environmental review is not required.

IV. Conclusion

    The NRC has determined that, pursuant to 10 CFR 50.12, the 
exemption is authorized by law, will not present an undue risk to 
public health and safety, and is consistent with the common defense and 
security. Therefore, the NRC hereby grants Penn State an exemption to 
the requirements in 10 CFR part 50 and appendix E to 10 CFR part 30. As 
a result of this exemption, Penn State shall submit its annual 
financial results within 180 days after the close of each succeeding 
fiscal year.

    Dated at Rockville, Maryland, this 25th day of July, 2016.

    For the Nuclear Regulatory Commission.
Mirela Gavrilas,
Deputy Director, Division of Policy and Rulemaking, Office of Nuclear 
Reactor Regulation.
[FR Doc. 2016-18144 Filed 7-29-16; 8:45 am]
 BILLING CODE 7590-01-P