[Federal Register Volume 83, Number 203 (Friday, October 19, 2018)]
[Notices]
[Pages 53116-53118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22768]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-271 and 72-59; NRC-2018-0216]


In the Matter of Entergy Nuclear Vermont Yankee, LLC; Entergy 
Nuclear Operations, Inc.; NorthStar Vermont Yankee LLC; NorthStar 
Nuclear Decommissioning Company, LLC; Vermont Yankee Nuclear Power 
Station

AGENCY: Nuclear Regulatory Commission.

ACTION: Direct and indirect transfer of license; order.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
order approving the direct transfer of Renewed Facility Operating 
License No. DPR-28 for the Vermont Yankee Nuclear Power Station (VY), 
and its general license for the VY Independent Spent Fuel Storage 
Installation (ISFSI), from the currently licensed operator, Entergy 
Nuclear Operations, Inc. (ENOI), and currently licensed owner, Entergy 
Nuclear Vermont Yankee, LLC (ENVY), to NorthStar Nuclear 
Decommissioning Company, LLC (NorthStar NDC), and to ENVY's successor 
NorthStar Vermont Yankee, LLC (NorthStar VY). This order also approves 
the indirect transfer of control of the license from ENVY's Entergy 
parent holding and investment companies to NorthStar Decommissioning 
Holdings, LLC and its parents NorthStar Group Services, Inc. 
(NorthStar), LVI Parent Corp., and NorthStar Group Holdings, LLC. The 
NRC is also issuing a conforming amendment for the facility operating 
license for administrative purposes to reflect the approved license 
transfer.
    The NRC confirmed that NorthStar NDC, and the entity to be named 
NorthStar VY, met the regulatory, legal, technical, and financial 
obligations necessary to qualify them as a transferee and determined 
that the transferee is qualified to be the holder of the license; and 
the transfer of the license is otherwise consistent with the applicable 
provisions of law, regulations, and orders issued by the Commission. 
The Order approving the direct transfer of the VY license to NorthStar 
NDC and NorthStar VY and the indirect transfer to NorthStar 
Decommissioning Holdings, LLC and its parents became effective on 
October 11, 2018.

DATES: The Order was issued on October 11, 2018, and is effective for 
one year.

ADDRESSES: Please refer to Docket ID NRC-2018-0216 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 Website: Go to https://www.regulations.gov and search for Docket ID NRC-2018-0216. Address 
questions about Docket IDs in Regulations.gov to Jennifer Borges; 
telephone: 301-287-9127; 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 https://www.nrc.gov/reading-rm/adams.html. To begin the search, 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 license transfer Order, the NRC 
safety evaluation supporting the staff's findings, and the conforming 
license amendment are available in ADAMS under Accession Nos. 
ML18248A096, ML18242A639, and ML18253A202, respectively.
     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: Jack D. Parrott, Office of Nuclear 
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001; telephone: 301-415-6634, email: 
[email protected].

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Dated at Rockville, Maryland, this 15th day of October 2018.


[[Page 53117]]


    For the Nuclear Regulatory Commission.
John R. Tappert,
Director, Division of Decommissioning, Uranium Recovery and Waste 
Programs, Office of Nuclear Material Safety and Safeguards.

Attachment--Order Approving the Transfer of License and Conforming 
Amendment

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

[Docket Nos.: 50-271 and 72-59; License No.: DPR-28]

In the Matter of Entergy Nuclear Vermont Yankee, LLC

Entergy Nuclear Operations, Inc.

Vermont Yankee Nuclear Power Station

ORDER APPROVING THE TRANSFER OF LICENSE AND CONFORMING AMENDMENT

I.

    Entergy Nuclear Operations, Inc. (ENOI), on behalf of itself and 
Entergy Nuclear Vermont Yankee, LLC (ENVY), are the holders of 
Renewed Facility Operating License No. DPR-28, which authorizes the 
operation of the Vermont Yankee Nuclear Power Station (VY), and the 
general license for the VY Independent Spent Fuel Storage 
Installation (ISFSI). VY permanently ceased operations on December 
29, 2014. Pursuant to Sections 50.82(a)(1)(i) and (a)(1)(ii) of 
Title 10 of the  Code of Federal Regulations (10 CFR), by letter 
dated January 12, 2015, ENOI certified to the NRC that it had 
permanently ceased operations at VY and that all fuel had been 
permanently removed from the reactor. Therefore, pursuant to 10 CFR 
50.82(a)(2), operations at VY are no longer authorized under the 10 
CFR part 50 license, and ENOI and ENVY are licensed to possess, but 
not use or operate, VY under Renewed Facility Operating License No. 
DPR-28, subject to the conditions specified therein. The VY site is 
located in the town of Vernon, Vermont, in Windham County on the 
west shore of the Connecticut River immediately upstream of the 
Vernon Hydroelectric Station.

II.

    By letter dated February 9, 2017 (Agencywide Documents Access 
and Management System (ADAMS) Accession No. ML17045A140), and as 
supplemented by letters dated April 6, 2017 (ADAMS Accession No. 
ML17096A394), August 22, 2017 (ADAMS Accession No. ML17234A141), 
August 28, 2017 (ADAMS Accession No. ML17248A468), December 4, 2017 
(ADAMS Accession No. ML17339A896), December 22, 2017 (ADAMS 
Accession No. ML18009A459), May 21, 2018 (ADAMS Accession No. 
ML18143B484), and June 28, 2018 (ADAMS Accession No. ML18183A220), 
ENOI, on behalf of itself and ENVY, and NorthStar Nuclear 
Decommissioning Company, LLC (NorthStar NDC) (together, the 
Applicants), requested that the U.S. Nuclear Regulatory Commission 
(NRC) consent to the proposed direct and indirect transfer of the VY 
Renewed Facility Operating License No. DPR-28 and the general 
license for the VY ISFSI (collectively referred to as the facility). 
Specifically, the Applicants requested that the NRC consent to the 
direct transfer of ENOI's currently licensed authority (licensed 
operator for decommissioning) to NorthStar NDC. In addition, the 
Applicants requested the indirect transfer of control of ENVY's 
ownership interests in the facility licenses to NorthStar 
Decommissioning Holdings, LLC, and its parents NorthStar Group 
Services, Inc. (NorthStar), LVI Parent Corp. (LVI) and NorthStar 
Group Holdings, LLC (Holdings). These direct and indirect transfer 
requests are submitted to the NRC for approval pursuant to Section 
184 of the Atomic Energy Act of 1954, as amended (AEA), 
``Inalienability of Licenses,'' and 10 CFR 50.80, ``Transfer of 
licenses,'' 10 CFR 72.50, ``Transfer of licenses,'' and 10 CFR 
50.90, ``Application for amendment of license, construction permit, 
or early site permit.'' The supplemental information letters, listed 
above, contained clarifying information, did not expand the 
application beyond the scope of the original notice, and did not 
affect the applicability of the NRC's no significant hazards 
consideration determination.
    ENOI and ENVY intend to transfer the licensed possession, 
maintenance, and decommissioning authorities to NorthStar NDC in 
order to implement expedited decommissioning at VY. Following 
approval and implementation of the proposed direct transfer of 
control of the license, NorthStar NDC would assume licensed 
responsibility for VY through the direct transfer of ENOI's 
responsibility for licensed activities at VY to NorthStar NDC. If 
the proposed indirect transfer of control is approved, ENVY would 
change its name to NorthStar VY, but the same legal entity would 
continue to exist before and after the proposed transfer. NorthStar 
VY would also enter into an operating agreement with NorthStar NDC, 
which provides for NorthStar NDC to act as NorthStar VY's agent and 
for NorthStar VY to pay NorthStar NDC's costs of operation, 
including all decommissioning costs. NorthStar VY would own the VY 
facility as well as its associated assets and real estate, including 
its nuclear decommissioning trust fund, title to spent nuclear fuel, 
and rights pursuant to the terms of its Standard Contract for 
Disposal of Spent Nuclear Fuel and/or High-Level Radioactive Waste 
with the U.S. Department of Energy. Certain off-site assets and real 
estate of ENVY are excluded, such as administrative offices and off-
site training facilities. Upon the proposed license transfer, 
NorthStar NDC would assume responsibility for compliance with the 
current licensing basis, including regulatory commitments that exist 
at the closing of the transaction between the Applicants, and would 
implement any changes under applicable regulatory requirements and 
practices. The Applicants also requested that the NRC approve a 
conforming administrative amendment to the facility license to 
reflect the proposed direct transfer of the license from ENOI to 
NorthStar NDC as well as a planned name change for ENVY from ENVY to 
NorthStar VY.
    Notice of NRC consideration of the license transfer application 
was published in the Federal Register (FR) on May 24, 2017 (82 FR 
23845) and included an opportunity to comment, request a hearing, 
and petition for leave to intervene. On June 13, 2017, the State of 
Vermont filed a Request for a Hearing and Petition for Leave to 
Intervene submitting two contentions challenging the proposed 
license transfer, and, on June 27, 2017, the New England Coalition 
(collectively, with the State of Vermont, ``Petitioners'') also 
filed a Request for a Hearing and Petition for Leave to Intervene 
with two contentions against the proposed license transfer. On March 
7, 2018, and March 12, 2018, the Petitioners filed notices of the 
anticipated withdrawal of their hearing requests pursuant to a 
settlement agreement between the Applicants and others, including 
the Petitioners. The Petitioners requested that their hearing 
requests be held in abeyance until the Vermont Public Utility 
Commission acted on the settlement agreement. On April 12, 2018, the 
Commission granted the Petitioners' motion to hold the proceeding in 
abeyance pending further notification by the Petitioners. Public 
comments were also received on this application for license 
transfer. They are summarized in the Safety Evaluation of this 
license transfer request.
    The staff notes, by letter dated May 25, 2018 (ADAMS Accession 
No. ML18150A315), in support of the license transfer request, that 
NorthStar submitted a request for an exemption to 10 CFR 
50.82(a)(8)(i)(A) to use up to $20 million of the VY trust (on a 
revolving basis) to pay for spent fuel management expenses. The 
staff approved the exemption request on October 11, 2018 (ADAMS 
Accession No. ML18274A246). The exemption is being issued 
simultaneously with this Order.
    Pursuant to 10 CFR 50.80, no license for a production or 
utilization facility, or any right thereunder, shall be transferred, 
either voluntarily or involuntarily, directly or indirectly, through 
transfer of control of the license to any person, unless the 
Commission gives its consent in writing. Upon review of the 
information in the application and other information before the 
Commission, and relying upon the representations and agreements 
contained in the application, the NRC staff has determined that 
NorthStar VY and NorthStar NDC are qualified to be the holders of 
the licenses, and that the direct and indirect transfer of the 
licenses, as described in the application, is otherwise consistent 
with applicable provisions of law, regulations, and orders issued by 
the Commission pursuant thereto, subject to the condition set forth 
below.
    Upon review of the application for a conforming amendment to the 
VY license to reflect the direct and indirect transfer of the VY 
licenses, the NRC staff determined the following:
    (1) The application for the proposed license amendment complies 
with the standards and requirements of the Atomic Energy Act of 
1954, as amended (the Act), and the Commission's rules and 
regulations set forth in 10 CFR Chapter I.
    (2) There is reasonable assurance that the activities authorized 
by the proposed license amendment can be conducted without 
endangering the health and safety of the

[[Page 53118]]

public, and that such activities will be conducted in compliance 
with the Commission's regulations.
    (3) The issuance of the proposed license amendment will not be 
inimical to the common defense and security or to the health and 
safety of the public.
    (4) The issuance of the proposed license amendment is in 
accordance with 10 CFR part 51 of the Commission's regulations, and 
all applicable requirements have been satisfied.
    The findings set forth above are supported by an NRC safety 
evaluation dated October 11, 2018, which is available at ADAMS 
Accession No. ML18242A639.

III.

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of 
the AEA, 42 U.S.C. Sections 2201(b), 2201(i), 2201(o), and 2234; and 
10 CFR 50.80, 10 CFR 72.50, and 10 CFR 50.90, IT IS HEREBY ORDERED 
that the application for the direct and indirect transfer of the 
licenses, as described herein is approved for Vermont Yankee Nuclear 
Power Station and the ISFSI, subject to the following conditions:
    (1) Prior to the closing of the license transfer, NorthStar NDC 
and NorthStar VY shall provide the Directors of NRC's Office of 
Nuclear Material Safety and Safeguards (NMSS) and Office of Nuclear 
Reactor Regulation (NRR) satisfactory documentary evidence that they 
have obtained the appropriate amount of insurance required of a 
licensee under 10 CFR 140.11(a)(4) and 10 CFR 50.54(w) of the 
Commission's regulations, consistent with the exemptions issued to 
VY on April 15, 2016.
    (2) NorthStar Vermont Yankee, LLC and NorthStar Nuclear 
Decommissioning Company, LLC shall take no action to cause NorthStar 
Group Services, Inc., to void, cancel, or modify the $140 million 
Support agreement to provide funding for Vermont Yankee as 
represented in the application without prior written consent of the 
Director of the Office of Nuclear Reactor Regulation.
    (3) NorthStar Vermont Yankee, LLC shall obtain a performance 
bond if a Settlement Agreement with the U.S. Department of Energy 
(DOE), on DOE reimbursements for spent fuel management expenses, is 
not entered into by January 1, 2022. The performance bond will be 
effective January 1, 2022, initially in the amount of $4.3 million, 
and it will be renewed annually. This amount covers the annual 
amount of Independent Spent Fuel Storage Installation (ISFSI) 
operation and maintenance (O&M) costs projected for 2022-2024. If a 
settlement is not reached by January 1, 2024, this amount will be 
increased to $9.3 million, which covers the annual amount of ISFSI 
O&M costs projected for years after 2024.
    IT IS FURTHER ORDERED that, consistent with 10 CFR 2.1315(b), 
the license amendment that makes changes, as indicated in Enclosure 
2 to the cover letter forwarding this Order, to conform the license 
to reflect the subject direct and indirect license transfer, is 
approved. The amendment shall be issued and made effective within 30 
days of the date of when the proposed direct and indirect license 
transfer action is completed.
    IT IS FURTHER ORDERED that NorthStar NDC and NorthStar VY shall, 
at least 2 business days prior to closing, inform the Directors of 
NMSS and NRR in writing of the date of closing of the license 
transfer for VY and the ISFSI. Should the transfer of the license 
not be completed within 1 year of this Order's date of issuance, 
this Order shall become null and void; provided, however, that upon 
written application and for good cause shown, such date may be 
extended by order.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the initial 
application dated February 9, 2017, as supplemented by letters dated 
April 6, 2017, August 22, 2017, August 28, 2017, December 4, 2017, 
December 22, 2017, May 21, 2018, and June 28, 2018, and the 
associated NRC safety evaluation dated October 11, 2018, which are 
available for public inspection at the Commission's Public Document 
Room (PDR), located at One White Flint North, 11555 Rockville Pike 
(first floor), Rockville, Maryland. Publicly available documents are 
accessible electronically through ADAMS in the NRC Library at http://www.nrc.gov/reading-rm/adams.html. Persons who encounter problems 
with ADAMS should contact the NRC's PDR reference staff by telephone 
at 1-800-397-4209 or 301-415[dash]4737 or by e[dash]mail to 
[email protected].

    Dated at Rockville, Maryland this 11th day of October 2018.

    For the Nuclear Regulatory Commission.
/RA/

Marc L. Dapas,

Director, Office of Nuclear Material Safety and Safeguards.

[FR Doc. 2018-22768 Filed 10-18-18; 8:45 am]
 BILLING CODE 7590-01-P