[Federal Register Volume 83, Number 207 (Thursday, October 25, 2018)]
[Notices]
[Pages 53914-53917]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23300]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-219; NRC-2018-0175]
Exelon Generation Company, LLC; Oyster Creek Nuclear Generating
Station
AGENCY: Nuclear Regulatory Commission.
ACTION: Exemption; issuance.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) has issued
exemptions in response to a March 22, 2018, request from Exelon
Generation Company, LLC (Exelon, the licensee). One exemption permits
the use of the Oyster Creek Nuclear Generating Station (Oyster Creek)
Decommissioning Trust Fund (DTF) for irradiated fuel management and
site restoration activities based on the Oyster Creek Decommissioning
Cost Estimate (DCE). The other exemption permits the licensee to make
withdrawals from the DTF for irradiated fuel management and site
restoration activities without prior notification of the NRC.
DATES: The exemption was issued on October 19, 2018.
ADDRESSES: Please refer to Docket ID NRC-2018-0175 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 http://www.regulations.gov and search for Docket ID NRC-2018-0175. Address
questions about Dockets 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 http://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 ADAMS accession number for each
document referenced (if it is available in ADAMS) is provided the first
time that it is mentioned in this document.
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: John G. Lamb, Office of Nuclear
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001; telephone: 301-415-3100; email: [email protected].
SUPPLEMENTARY INFORMATION: The text of the exemption is attached.
Dated at Rockville, Maryland, this 22nd day of October 2018.
For the Nuclear Regulatory Commission.
John G. Lamb,
Senior Project Manager, Special Projects and Process Branch, Division
of Operating Reactor Licensing,Office of Nuclear Reactor Regulation.
Attachment--Exemption
NUCLEAR REGULATORY COMMISSION
Docket No. 50-219
Exelon Generation Company, LLC
Oyster Creek Nuclear Generating Station
Exemption
I. Background.
Exelon Generation Company, LLC (Exelon, the licensee) is the
holder of Renewed Facility Operating License No. DPR-16 for the
Oyster Creek Nuclear Generating Station (Oyster Creek). The facility
is located in the town of Forked River, Ocean County, New Jersey.
By letter dated February 14, 2018 (Agencywide Documents Access
and Management System (ADAMS) Accession No. ML18045A084), Exelon
submitted to the U.S. Nuclear Regulatory Commission (NRC) a
certification in accordance with Section 50.82(a)(1)(i) of Title 10
of the Code of Federal Regulations (10 CFR), stating its
determination to permanently cease operations at Oyster Creek no
later than October 31, 2018. By letter dated September 25, 2018
(ADAMS Accession No. ML18268A258), Exelon submitted to the NRC a
certification in accordance with 10 CFR 50.82(a)(1)(ii), stating
that Oyster Creek permanently ceased power operations on September
17, 2018, and that, as of September 25, 2018, all fuel had been
permanently removed from the Oyster Creek reactor vessel. By letter
dated December 30, 2014 (ADAMS Accession No. ML14365A067), Exelon
submitted the Oyster Creek Irradiated Fuel Management Plan (IFMP)
pursuant to 10 CFR 50.54(bb) and Preliminary Decommissioning Cost
Estimate
[[Page 53915]]
(DCE). The DCE was updated by letter dated March 30, 2016 (ADAMS
Accession No. ML16090A067). By letter dated May 21, 2018 (ADAMS
Accession No. ML18141A775), Exelon submitted a Post-Shutdown
Decommissioning Activities Report (PSDAR) and site-specific DCE for
Oyster Creek.
II. Request/Action.
By letter dated March 22, 2018 (ADAMS Accession No.
ML18081A201), Exelon 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 Exelon to make withdrawals from
the Oyster Creek Decommissioning Trust Fund (DTF) for irradiated
fuel management and site restoration activities in accordance with
the Oyster Creek DCE. The exemption from 10 CFR 50.75(h)(1)(iv)
would also permit Exelon 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 separate
letters dated March 30, 2016, and May 21, 2018, Exelon submitted
updates to the Oyster Creek DCE.
As part of its exemption request, Exelon provided Table 2,
``Annual SAFSTOR Decommissioning Fund Cash Flow for Oyster Creek
Nuclear Generating Station,'' that shows the annual DTF cash flow
for Oyster Creek, while in SAFSTOR (deferred dismantling). Table 2
contains the projected withdrawals from the DTF needed to cover the
estimated costs of radiological decommissioning, irradiated fuel
management, and site restoration activities as projected on the day
of the application. Subsequent to its exemption request, Exelon
provided the DTF balance and cost estimates for these same
activities in its letter dated May 21, 2018, for the Oyster Creek
PSDAR and in Attachment 4 to its March 28, 2018, annual report on
the status of decommissioning funding for Oyster Creek (ADAMS
Accession No. ML18087A150). The NRC staff considered each of these
submittals in its review of the exemption request.
The requirements of 10 CFR 50.82(a)(8)(i)(A) restrict
withdrawals from DTFs to expenses for legitimate decommissioning
activities consistent with the definition of decommission 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--
(1) Release of the property for unrestricted use and termination
of the license; or
(2) Release of the property under restricted conditions and
termination of the license.
This definition does not include activities associated with
irradiated fuel management and site restoration activities. The
requirements of 10 CFR 50.75(h)(1)(iv) also restrict the use of DTF
disbursements (other than for ordinary administrative costs and
other incidental expenses of the fund in connection with the
operation of the fund) to decommissioning expenses until final
radiological decommissioning is completed. Therefore, an exemption
from 10 CFR 50.82(a)(8)(i)(A) is needed to allow Exelon to use funds
from the Oyster Creek DTF for irradiated fuel management and site
restoration activities at Oyster Creek. 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 other incidental expenses of the fund in
connection with the operation of the fund, no disbursement may be
made from the DTF 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 also needed to allow Exelon to use funds from the
Oyster Creek DTF for irradiated fuel management and site restoration
activities at Oyster Creek 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:
(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; and
(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 Exelon to use a portion of the funds
from the Oyster Creek DTF for irradiated fuel management and site
restoration activities at Oyster Creek 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 the radiological decommissioning of
power reactors. Based on the site-specific DCE and the cash flow
analysis, use of a portion of the Oyster Creek DTF for irradiated
fuel management and site restoration activities at Oyster Creek will
not adversely impact Exelon's ability to complete radiological
decommissioning within 60 years and terminate the Oyster Creek
license. Furthermore, an exemption from 10 CFR 50.75(h)(1)(iv) to
allow the licensee to make withdrawals from the DTF for irradiated
fuel management and site restoration activities without prior
written notification to the NRC will not affect the sufficiency of
funds in the DTF to accomplish radiological decommissioning 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).
According to the application dated March 22, 2018, there are no
new accident precursors created by using the DTF 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 Exelon to use funds from
the Oyster Creek DTF for irradiated fuel management and site
restoration activities at Oyster Creek. Irradiated fuel management
under 10 CFR 50.54(bb) is an integral part of the planned Exelon
decommissioning and license termination process and will not
adversely affect Exelon'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 DTF for irradiated fuel management and
site restoration 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), which restrict withdrawals from DTFs to expenses
for radiological decommissioning activities, is to provide
reasonable assurance that adequate funds will be available for
radiological decommissioning of power reactors and license
termination. Strict application of these requirements would prohibit
the withdrawal of funds from the Oyster Creek DTF for activities
other than radiological decommissioning activities at Oyster Creek,
such as for irradiated fuel management and site restoration
activities, until final radiological decommissioning at Oyster Creek
has been completed.
The March 28, 2018, annual report on the status of
decommissioning funding for Oyster Creek, and the May 21, 2018,
PSDAR both report a DTF balance of $982 million as of December 31,
2017. The cash flow analysis
[[Page 53916]]
in Table 2 of the March 22, 2018, application is based on a
beginning DTF balance of $979 million as of December 31, 2017. The
licensee stated that the beginning DTF balance was adjusted to
account for decommissioning and irradiated fuel management planning
costs incurred in 2017 that would be reimbursed if the exemption
were granted. In its analysis provided in the enclosed Table, ``NRC
Cash Flow Analysis of Oyster Creek Decommissioning Trust Funds and
Associated Costs, including Irradiated Fuel Management and Site
Restoration,'' the NRC staff used the lesser opening DTF balance of
$979 million as a conservative estimate that reflects less money
available to cover radiological decommissioning, irradiated fuel
management, and site restoration costs. The Exelon analysis in the
May 21, 2018, PSDAR projects the total radiological decommissioning
cost of Oyster Creek to be approximately $1,109 million in 2017
dollars, the irradiated fuel management costs to be $290 million in
2017 dollars, and the site restoration costs to be $60.2 million in
2017 dollars. The estimated costs in the PSDAR are consistent with
the estimated costs for site radiological decommissioning ($1,103.7
million in 2017 dollars), ISFSI radiological decommissioning ($5.8
million in 2017 dollars), irradiated fuel management ($290 million
in 2017 dollars), and site restoration ($60.2 million in 2017
dollars) provided by Exelon in the March 22, 2018, exemption
request.
The NRC staff performed an independent cash flow analysis of the
DTF over the 60 year SAFSTOR period (assuming an annual real rate of
return of 2 percent, as allowed by 10 CFR 50.75(e)(1)(ii)) and
determined the projected earnings of the DTF. The results of the
staff's analysis are presented in the enclosed Table. As shown in
the enclosed Table, the NRC staff confirmed that the current funds
in the DTF and projected earnings provide reasonable assurance of
adequate funding to complete all NRC required radiological
decommissioning activities, and also to pay for irradiated fuel
management and site restoration activities. Therefore, the NRC staff
finds that Exelon has provided reasonable assurance that adequate
funds will be available for the radiological decommissioning of
Oyster Creek, even with the disbursement of funds from the DTF for
irradiated fuel management and site restoration activities.
Consequently, the NRC staff concludes that application of the
requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)
that funds from the DTF only be used for radiological
decommissioning activities and not for irradiated fuel management
and site restoration activities is not necessary to achieve the
underlying purpose of the rule; thus, special circumstances are
present supporting approval of the exemption request.
In its submittal, Exelon also requested exemption from the
requirement of 10 CFR 50.75(h)(1)(iv) concerning prior written
notification to the NRC of withdrawals from the DTF to fund
activities other than radiological decommissioning. The underlying
purpose of notifying the NRC prior to withdrawal of funds from the
DTF 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)(1)(iv) and 10 CFR 50.82(a)(8) that
could result in there being insufficient funds in the DTF to
accomplish radiological decommissioning.
By granting the exemptions to 10 CFR 50.75(h)(1)(iv) and 10 CFR
50.82(a)(8)(i)(A), the NRC staff considers that withdrawals
consistent with the licensee's submittal dated March 22, 2018, are
authorized. As stated previously, the NRC staff has determined that
there are sufficient funds in the DTF to complete radiological
decommissioning activities as well as to conduct irradiated fuel
management and site restoration activities consistent with the
PSDAR, DCE, IFMP, and the March 22, 2018, exemption request.
Pursuant to the requirements in 10 CFR 50.82(a)(8)(v) and (vii),
licensees are required to monitor and annually report to the NRC the
status of the DTF and the licensee's funding for managing irradiated
fuel. These reports provide the NRC staff with awareness of, and the
ability to take action on, any actual or potential funding
deficiencies. Additionally, 10 CFR 50.82(a)(8)(vi) requires that the
annual financial assurance status report must include additional
financial assurance to cover the estimated cost of completion if the
sum of the balance of any remaining decommissioning funds, plus
earnings on such funds calculated at not greater than a
2[dash]percent real rate of return, together with the amount
provided by other financial assurance methods being relied upon,
does not cover the estimated cost to complete the decommissioning.
The requested exemption would not allow the withdrawal of funds from
the DTF 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 DTF 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 DTF 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 site restoration activities may be commingled in the DTF,
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 and site restoration activities
(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,''
dated October 2013 (ADAMS Accession No. ML13144A840). To prevent
access to those excess funds in the DTF because irradiated fuel
management and site restoration activities are not associated with
radiological decommissioning would create an unnecessary financial
burden without any corresponding safety benefit. The adequacy of the
DTF to cover the cost of activities associated with irradiated fuel
management and site restoration, in addition to radiological
decommissioning, is supported by the site-specific decommissioning
cost analysis. If the licensee cannot use its DTF for irradiated
fuel management and site restoration activities, it would need to
obtain additional funding that would not be recoverable from the
DTF, or the licensee 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 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(1)(iv) were adopted.
Since the underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10
CFR 50.75(h)(1)(iv) would be achieved by allowing Exelon to use a
portion of the Oyster Creek DTF for irradiated fuel management and
site restoration activities without prior NRC notification, and
since compliance with the regulations would result in an undue
hardship or other costs that are significantly in excess of those
contemplated when the regulations were 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 in the Federal Register on September 14, 2018 (83 FR
46763)).
IV. Conclusions.
In consideration of the above, the NRC staff finds that the
proposed exemptions confirm the adequacy of funding in the Oyster
Creek DTF, considering growth, to complete radiological
decommissioning of the site and to terminate the license and also to
cover estimated spent fuel management and site restoration
activities.
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 Exelon
[[Page 53917]]
exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10
CFR 50.75(h)(1)(iv) to allow use of a portion of the funds from the
Oyster Creek DTF for spent fuel management and site restoration
activities in accordance with the Oyster Creek PSDAR and DCE, dated
May 21, 2018. Additionally, the Commission hereby grants Exelon an
exemption from the requirement of 10 CFR 50.75(h)(1)(iv) to allow
such withdrawals without prior NRC notification.
The exemptions are effective upon issuance.
Dated at Rockville, Maryland, this 19th day of October 2018.
For the Nuclear Regulatory Commission.
/RA/
Kathryn M. Brock,
Deputy Director, Division of Operating Reactor Licensing, Office of
Nuclear Reactor Regulation.
[FR Doc. 2018-23300 Filed 10-24-18; 8:45 am]
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