[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]
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