[Federal Register Volume 84, Number 68 (Tuesday, April 9, 2019)]
[Notices]
[Pages 14136-14141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06987]
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NUCLEAR REGULATORY COMMISSION
[Docket Nos. 50-334 and 50-412, 50-346, 50-440; NRC-2018-0174]
FirstEnergy Corp.; FirstEnergy Solutions; FirstEnergy Nuclear
Generation, LLC; FirstEnergy Nuclear Operating Company
AGENCY: Nuclear Regulatory Commission.
ACTION: Director's Decision under 10 CFR 2.206; issuance.
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[[Page 14137]]
SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) has issued a
director's decision with regard to a petition dated March 27, 2018, as
supplemented on October 8, 2018, filed by the Environmental Law and
Policy Center (the petitioner), requesting that the NRC take
enforcement action with regard to FirstEnergy Corp. (FE), FirstEnergy
Solutions (FES), FirstEnergy Nuclear Generation, LLC (NG), and
FirstEnergy Nuclear Operating Company (FENOC) (the licensees). The
petitioner's requests and the director's decision are included in the
SUPPLEMENTARY INFORMATION section of this document.
DATES: The Director's Decision was issued on April 3, 2019.
ADDRESSES: Please refer to Docket ID NRC-2018-0174 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-2018-0174. Address
questions about NRC Docket IDs in Regulations.gov to Jennifer Borges;
telephone: 301-287-9127; email: [email protected]. For technical
questions, contact the individuals 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]. For the convenience of the reader,
instructions about obtaining materials referenced in this document are
provided in the ``Availability of Documents'' section of 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: Bhalchandra K. Vaidya, Office of
Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission,
Washington DC 20555-0001; telephone: 301-415-3308; email:
[email protected] and Perry Buckberg, Office of Nuclear
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington DC
20555-0001; telephone: 301-415-1383, email: [email protected].
Both are staff of the U.S. Nuclear Regulatory Commission, Washington,
DC 20555-0001.
SUPPLEMENTARY INFORMATION: The NRC is making the documents identified
below available to interested persons through one or more of the
following methods, as indicated. To access documents related to this
action, see ADDRESSES section of this document.
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Document ADAMS accession No.
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ENVIRONMENTAL LAW AND POLICY CENTER--10 ML18094A642, ML18094A645,
CFR 2.206 Petition and Attachments 1 ML18094A647, ML18094A649,
through 6 Citizen Complaint and Request ML18094A650, ML18094A651,
for Enforcement Action Regarding ML18094A641.
FirstEnergy Nuclear Facility Operations
in Ohio and Pennsylvania Dated March 27,
2018.
ELPC 2.206 Petition, Motion Of The ML18151A457.
Environmental Law & Policy Center, Ohio
Citizen Action, Ohio Environmental
Council and Environmental Defense Fund
For Relief From The Automatic Stay, 11
U.S.C. Sec. 362/L.R. 4001-1.
Official Transcript of Proceedings, ML18194A395.
Meeting Between Petitioners and NRC
Petition Review Board on June 19, 2018,
Regarding 10 CFR 2.206 Petition OEDO-18-
00160 Re: FENOC Operations in Ohio and
Pennsylvania.
ELPC 2.206 Petition OEDO-18-00160 ML18214A740.
Regarding FENOC operations in Ohio and
Pennsylvania--PRB's Initial
Recommendation On The Petition Dated
March 27, 2018, on FENOC Bankruptcy.
ELPC Supplement to 2.206 Petition--OEDO-18- ML18282A242.
00160, regarding Citizen Complaint and
Request for Enforcement Action Regarding
FirstEnergy Nuclear Facility Operations
in Ohio and Pennsylvania. Dated October
8, 2018.
OEDO-18-00160--ELPC Proposed Director's ML18309A157.
Decision on 10 CFR 2.206 Petition for
Citizen Complaint and Request for
Enforcement Action Regarding FirstEnergy
Nuclear Facility Operations in Ohio and
Pennsylvania. Dated January 8, 2019.
OEDO-18-00160--ELPC Comments on Proposed ML19037A340.
Director's Decision on 10 CFR 2.206
Petition for Citizen Complaint and
Request for Enforcement Action Regarding
FirstEnergy Nuclear Facility Operations
in Ohio and Pennsylvania. Dated January
22, 2019.
FENOC Submission--Submittal of the ML19074A242.
Decommissioning Funding Status Reports
for Beaver Valley Power Station, Unit
Nos. 1 and 2, Davis-Besse Nuclear Power
Station, and Perry Nuclear Power Plant.
Dated March 15, 2019.
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[[Page 14138]]
The text of the director's decision is attached.
Dated at Rockville, Maryland, this 4th day of April, 2019.
For the Nuclear Regulatory Commission.
Bhalchandra K. Vaidya,
Project Manager, Plant Licensing Branch III, Division of Operating
Reactor Licensing, Office of Nuclear Reactor Regulation.
ATTACHMENT--DIRECTOR'S DECISION DD-19-01
DD-19-01
UNITED STATES OF AMERICA
NUCLEAR REGULATORY COMMISSION
OFFICE OF NUCLEAR REACTOR REGULATION
Ho K. Nieh, Director
[Docket Nos. 50-334 and 50-412, 50-346, 50-440]
[License Nos. DPR-66 and NPF-73, NPF-3, NPF-58]
In the Matter of FirstEnergy Nuclear Operating Company, Beaver Valley
Power Station, Units 1 and 2, Davis-Besse Nuclear Power Station, Unit
1, Perry Nuclear Power Plant, Unit 1
DIRECTOR'S DECISION UNDER 10 CFR 2.206
I. Introduction
By letter dated March 27, 2018, as supplemented on October 8, 2018
(Agencywide Documents Access and Management System (ADAMS) Accession
Nos. ML18094A642 and ML18282A242, respectively), the Environmental Law
and Policy Center filed a petition with U.S. Nuclear Regulatory
Commission (NRC or the Commission) pursuant to Title 10 of the Code of
Federal Regulations (10 CFR) 2.206, ``Requests for action under this
subpart.'' The petitioner requested that the NRC take the following
actions:
(A) Issue Demands for Information
(1) Promptly issue a Demand for Information to FirstEnergy Corp.
(FE), FirstEnergy Solutions (FES), FirstEnergy Nuclear Generation, LLC
(NG), and FirstEnergy Nuclear Operating Company (FENOC) requesting
site-specific decommissioning funding plans for Beaver Valley Power
Station, Units 1 and 2 (BVPS), Davis-Besse Nuclear Power Station, Unit
1 (DBNPS), and Perry Nuclear Power Plant, Unit 1 (PNPP).
(2) Promptly issue a Demand for Information to FE, FES, NG, and
FENOC with regard to their reliance on external trust funds from FE and
FES to satisfy their decommissioning financial obligations.
(3) Promptly issue a Demand for Information to FE, FES, NG, and
FENOC with regard to their continued reliance on parent company
guarantees from FE to satisfy decommissioning funding obligations,
including the ability of FE to satisfy the parent company guarantee
financial test under Appendix A, ``Criteria Relating to Use of
Financial Tests and Parent Company Guarantees for Providing Reasonable
Assurance of Funds for Decommissioning,'' to 10 CFR part 30, ``Rules of
General Applicability to the Domestic Licensing of Byproduct
Material.''
(4) Promptly issue a Demand for Information to FES, NG, and FENOC
to the extent that they are relying on parent company guarantees from
FES to satisfy decommissioning funding obligations, including the
ability of FES to satisfy the parent company guarantee financial test
under 10 CFR part 30, Appendix A.
(5) Promptly issue a Demand for Information to FE, FES, NG, and
FENOC with regard to their proposed investment and financial
contribution plans to make up the current decommissioning shortfall.
(6) Promptly issue a Demand for Information to FE and FES with
regard to each of their commitments to guarantee coverage of NG's and
FENOC's decommissioning trust fund shortfalls in the event of
bankruptcy.
(B) Notice of Violation and Penalties
(1) Promptly issue a Notice of Violation against FE, FES, NG, and
FENOC for operating nuclear facilities without sufficient
decommissioning funds in violation of 42 U.S.C.A. Section 2201(x)(1),
and 10 CFR 50.75, ``Reporting and Recordkeeping for Decommissioning
Planning.''
(2) Promptly issue civil penalties against FE, FES, NG, and FENOC
for operating nuclear facilities without sufficient decommissioning
funds in violation of 42 U.S.C.A., Section 2201(x)(1), and 10 CFR
50.75.
(3) Promptly issue an order to suspend NG's and FENOC's licenses
for BVPS, DBNPS, and PNPP.
(C) Other Requests
The petitioner also urges the NRC to prohibit NG and FENOC from
placing their nuclear facilities into a safe storage (SAFSTOR) status
for purely financial reasons. Under SAFSTOR, often considered
``deferred dismantling,'' a nuclear facility is maintained and
monitored in a condition that allows the radioactivity to decay;
afterwards, the plant is dismantled and the property decontaminated.
The petitioner requests that the NRC give immediate emergency
consideration to this petition in light of FE's and FES's rapidly
deteriorating financial conditions.
(D) Basis for Petitioner's Request
The following points summarize the basis for the petitioner's
request, as stated in the petition and the supplement:
(1) NG's and FENOC's decommissioning trust amounts are insufficient
on their own to provide reasonable assurance of funding.
(2) FE cannot rely on rate increases forced on retail ratepayers to
pay for the decommissioning trust fund shortfalls.
(3) The costs, including SAFSTOR, may be much higher than expected
because of significantly higher trust fund shortfalls, as reported by
the Callan Institute and flaws in the NRC's cost estimating formula.
(4) On March 28, 2018, FES and FENOC announced and informed the NRC
by letter dated April 25, 2018 (ADAMS Accession No. ML18115A007), that
they would permanently retire all four of their reactors within the
next 3 years. If the plants close in 2020 and 2021, the funds cannot
grow to levels that will pay for the required decommissioning.
(5) The parent companies FE and FES filed for bankruptcy on March
31, 2018.
(6) According to the petitioner, the transcript from a recent
Federal court proceeding provides additional information about funding
for FE's nuclear plant decommissioning in the FES bankruptcy case (see
Case No. 18-50757, ``Motion of Debtors to Approve Settlement (dated
August. 26, 2018)), which was heard on September 25, 2018, by the
Honorable Judge Alan M. Koschik, for the U.S. Bankruptcy Court for the
Northern District of Ohio.
Although the petition does not request specific immediate
action(s), it does request ``immediate emergency consideration.'' Based
on the information provided in the petition, the Petition Review Board
(PRB) determined that the financial concerns do not raise an imminent
safety issue or indicate that the licensee, FENOC, is unable to safely
operate the facilities listed in the petition. The PRB concluded that
there is no current public health and safety concern requiring
immediate NRC action because financial concerns do not raise an
imminent safety issue or indicate that FENOC is unable to safely
operate the facilities listed in the petition. The petition manager
informed the petitioner of this conclusion by e[dash]mail dated May 2,
2018 (ADAMS Accession
[[Page 14139]]
No. ML18123A299). The supplement, which the petitioner submitted on
October 8, 2018 (ADAMS Accession No. ML18282A242), did not expand the
scope of the petition or request additional actions that should be
considered as a new petition.
Additionally, the petitioner met with the PRB on June 19, 2018, to
discuss the petition. The transcript of this meeting is treated as a
supplement to the petition and is publicly available online at ADAMS
Accession No. ML18194A395. The transcript is also available for
purchase and examination at the NRC's Public Document Room (PDR),
located at O1F21, 11555 Rockville Pike (first floor), Rockville, MD
20852. Publicly available documents created or received at the NRC are
accessible electronically through ADAMS at http://www.nrc.gov/reading-rm/adams.html. Persons who do not have access to ADAMS or who encounter
problems in accessing the documents in ADAMS should contact the NRC's
Public Document Room (PDR) reference staff by telephone at 1-800-397-
4209, or 301[dash]415-4737, or by e-mail to [email protected].
On August 2, 2018, the petition manager informed the petitioner by
letter that the PRB had determined that the petition meets the
acceptance criteria for review and that the PRB has made an initial
recommendation to accept the petition for review (ADAMS Accession No.
ML18220B314). The petition manager also asked whether the petitioner
desired an opportunity to comment on this recommendation, in person or
through a teleconference, consistent with Management Directive 8.11,
``Review Process for 10 CFR 2.206 Petitions,'' dated October 25, 2000.
The petitioner declined this offer for a second meeting with the PRB.
On January 8, 2019, the NRC sent the proposed director's decision
to the petitioner and to the licensee for comments (ADAMS Accession
Nos. ML18309A228 and ML18309A189, respectively). The petitioner
responded with comments on the proposed director's decision on January
22, 2019 (ADAMS Accession No. ML19037A340). The licensee did not submit
comments on the proposed director's decision. The petitioner's comments
and the staff's responses to the comments are included as an attachment
to this director's decision.
Based on the staff's evaluation of the petitioner's January 22,
2019, comments, the final director's decision has not changed from the
proposed director's decision.
II. Discussion
FENOC Is Currently in Compliance with NRC Regulations
The NRC has a comprehensive, regulation-based, framework that
provides oversight of a licensee's decommissioning funding during
operations and decommissioning. During operations, licensees must
biennially submit decommissioning funding status reports by March 31.
At 5 years before the projected permanent shutdown of their reactors
until license termination, licensees must submit annual decommissioning
funding status reports by March 31 of each year. Additionally, at
intervals not to exceed 3 years, a licensee must update and submit its
decommissioning funding plans for its independent spent fuel storage
installations (ISFSIs) to account for any changes in costs.
FE is the parent company of FES and FENOC, which are wholly owned
subsidiaries. The NG owns the nuclear plants, which is a wholly owned
subsidiary of FES. FENOC operates the nuclear plants. FENOC and NG are
the licensees for BVPS, DBNPS, and PNPP. FENOC submitted its most
recent decommissioning funding status reports for BVPS, DBNPS, and PNPP
in a letter to the NRC dated March 24, 2017 (ADAMS Accession No.
ML17083B221). Based on its review of these reports, the NRC staff
concluded that FENOC met the minimum funding requirements for future
radiological decommissioning of its NRC-licensed facilities for the
2017 reporting cycle, and that there were no shortfalls in
decommissioning funding.
In accordance with 10 CFR 50.75(f)(1), FENOC is required to submit
its next decommissioning funding status reports for BVPS, DBNPS, and
PNPP to the NRC by March 31, 2019. The reports were submitted to the
NRC on March 15, 2019 (ADAMS Accession No. ML19074A242). The NRC staff
will conduct a similar review of these decommissioning funding status
reports for the units, and will consider the new expected shutdown
dates, funding levels as of December 31, 2018, and any updated
financial information necessary to demonstrate reasonable assurance
that sufficient funds will be available for the radiological
decommissioning of the sites. If the staff identifies a funding
shortfall, the NRC will evaluate any such scenario on a case-by-case
basis. For an operating power reactor, the NRC reserves the right to
take additional steps, in accordance with 10 CFR 50.75(e)(2), including
reviewing the rate of accumulation of decommissioning funds, and to
take additional actions, either independently or in cooperation with
the Federal Energy Regulatory Commission and the licensee's State
public utility commission, as appropriate. Additional actions may
include modifying the licensee's schedule for accumulating
decommissioning funds. In accordance with 10 CFR 50.82(c), if a
licensee permanently ceases operation before the expiration of its
license, the NRC will determine the collection period for any shortfall
of funds on a case-by-case basis upon application by the licensee, and
will consider the specific financial situation of each licensee. The
NRR continues to monitor FENOC's decommissioning financial assurance
for its reactors and ISFSIs to ensure adequate funding and compliance
with requirements for decommissioning funding.
Bankruptcy Proceedings
On March 31, 2018, FES, FENOC, and NG, filed a petition for
reorganization under Chapter 11 of the U.S. Bankruptcy Code. FE has not
filed for bankruptcy. The U.S. Department of Justice, and the NRC's
Office of the General Counsel, are working closely together to
represent the NRC's interests in the bankruptcy proceeding, including
protection and preservation of the decommissioning trust funds and
continued compliance with the requirements for decommissioning funding.
The proceeding in the U.S. bankruptcy court may result in changes to
FENOC's debt structure, including reorganization and the transfer of
control of the reactor operating licenses. Any such license transfers
would be subject to NRC review and approval. NRC license transfer
reviews include, among other things, a review of the applicant's
financial qualifications, technical qualifications, and decommissioning
funding, and would provide for public participation and an opportunity
to request a hearing and petition to intervene. While the bankruptcy
proceeding is in progress, and until license termination, licensees are
required to continue to comply with NRC regulations.
Additionally, on October 8, 2018, the petitioner submitted the
transcript from the recent Federal court proceeding in the FES
bankruptcy case to the NRC as a supplement to the petition (ADAMS
Accession No. ML18282A242). The NRC staff reviewed this transcript and
did not find any information in the supplement of which it was not
previously aware or that warranted immediate action. The NRC will
continue to monitor the bankruptcy proceedings and take action, as
necessary, to ensure that the licensee
[[Page 14140]]
remains in compliance with the agency's regulations.
SAFSTOR
The petition ``urges the NRC to prohibit NG and FENOC from placing
their nuclear facilities into SAFSTOR for purely financial reasons.''
Section 3.2.2, ``SAFSTOR'' of NUREG[dash]0586, ``Final Generic
Environmental Impact Statement on Decommissioning of Nuclear
Facilities,'' Supplement 1, ``Regarding the Decommissioning of Nuclear
Power Plants,'' Volume 1, issued November 2002 (ADAMS Accession No.
ML023470304), lists SAFSTOR as one of three options that the NRC finds
acceptable for a licensee to use in decommissioning its facility. As
such, SAFSTOR is an option currently available to FENOC.
The NRC is currently considering changes to its decommissioning
requirements through rulemaking. The NRC expects to publish the
proposed rule later this year in the Federal Register. After the agency
publishes the proposed rule, members of the public will be able to
access the rule through a link on the NRC's public Web site at https://www.nrc.gov/reading-rm/doc-collections/rulemaking-ruleforum/active/RuleDetails.html?id=49. During the comment period, members of the
public may submit their comments through a link on the NRC's Web site
at: https://www.regulations.gov/docket?D=NRC-2015-0070.
III. Conclusion
In summary, the NRC has a comprehensive, regulation-based,
framework that provides for oversight of a licensee's decommissioning
funding during operation and decommissioning. The licensees' current
decommissioning funding status report, dated March 24, 2017, indicates
that the licensees met the minimum funding requirements for future
radiological decommissioning of the NRC-licensed facilities for the
2017 reporting cycle, and that there were no shortfalls in
decommissioning funding. If the NRC staff identifies a funding
shortfall in its evaluation of the status reports, which were submitted
to the NRC on March 15, 2019, the NRC will take appropriate action,
including enforcement action, if necessary. Further, the NRC staff will
continue to work with the U.S. Department of Justice to protect and
preserve its interests in FENOC's compliance with decommissioning
requirements in the bankruptcy proceeding. Based on the current
information available, the NRC staff concludes that there is an
insufficient basis to find that the licensees are out of compliance
with the NRC's decommissioning financial assurance requirements.
Therefore, based on the continuing oversight and actions described
above, no further action is necessary at this time.
As a result of the NRC staff's evaluation, NRR has denied the
petitioner's requests. The request to issue Demands for Information is
denied because the licensees are required to provide the information
requested, as applicable, in the decommissioning funding status
reports. These decommissioning funding status reports were submitted to
the NRC on March 15, 2019, and will undergo NRC review. The requests to
issue a Notice of Violation and Notice of Civil Penalties to FE, FES,
NG, and FENOC, and the request to issue an Order suspending NG's and
FENOC's licenses, are denied as current information available to the
NRC does not demonstrate that the entities are out of compliance with
NRC regulations. Therefore, there is an insufficient basis on which to
take enforcement action, issue civil penalties, or suspend a license.
In accordance with 10 CFR 2.206(c), a copy of this director's
decision will be filed with the Secretary of the Commission for
Commission review. As provided for by this regulation, the decision
will constitute the final action of the Commission 25 days after the
date of the decision unless the Commission, on its own motion,
institutes a review of the decision within that time.
Dated at Rockville, Maryland, this 3rd day of April, 2019.
For the Nuclear Regulatory Commission.
/RA/
Ho K. Nieh,
Director, Office of Nuclear Reactor Regulation.
Attachment: Petitioner's Comments on Proposed Director's Decision and
NRC Response
ATTACHMENT
PETITIONER'S COMMENTS ON PROPOSED DIRECTOR'S DECISION AND NUCLEAR
REGULATORY COMMISSION RESPONSE
The petitioner provided comments to the U.S. Nuclear Regulatory
Commission (NRC) on the proposed director's decision (Agencywide
Documents Access and Management System (ADAMS) Accession No.
ML18309A157) by letter dated January 22, 2019 (ADAMS Accession No.
ML19037A340).
The petitioner's comments do not alter the staff's conclusions in
the proposed director's decision and, therefore, do not require
modification to the final director's decision. This attachment provides
the petitioner's comments on the proposed director's decision and the
NRC responses to the comments.
The petitioner's comments are summarized as follows:
Comment 1 (from the petitioner's letter dated January 22, 2019, pages 1
and 2):
The NRC staff should issue Demands for Information to immediately
request the updated decommissioning funding status report from
FirstEnergy Corp. (FE), FirstEnergy Solutions (FES), FirstEnergy
Nuclear Generation, LLC (NG), and FirstEnergy Nuclear Operating Company
(FENOC). Specifically, the NRC should order FE, FES, FENOC and NG to
provide the most up-to-date information on decommissioning funds with
respect to: site-specific funding plans (Request No. 1), reliance on
any external funds or parent company guarantees (Request Nos. 2-4),
proposed investment and financial contribution plans (Request No. 5),
and commitments to guarantee coverage of shortfalls in light of
bankruptcy (Request No. 6).
Response 1:
This comment restates the petitioner's original requests. As stated
in the proposed director's decision, the next decommissioning funding
status reports for Beaver Valley Power Station, Units 1 and 2, Davis-
Besse Nuclear Power Station, Unit 1, and Perry Nuclear Power Plant,
Unit 1 are due to the NRC by March 31, 2019, and were submitted on
March 15, 2019 (ADAMS Accession No. ML19074A242). If the staff
identifies a funding shortfall in those reports, the NRC will evaluate
any such scenario on a case-by-case basis. For an operating power
reactor, the NRC reserves the right to take additional steps, in
accordance with paragraph 50.75(e)(2) of Title 10 of the Code of
Federal Regulations (10 CFR), including reviewing the rate of
accumulation of decommissioning funds, and to take additional actions,
either independently or in cooperation with the Federal Energy
Regulatory Commission and the licensee's State public utility
commission, as appropriate. Additional actions may include modifying
the licensee's schedule for accumulating decommissioning funds. In
accordance with 10 CFR 50.82(c), if a licensee permanently ceases
operation before the expiration of its license, the NRC will determine
the collection period for any shortfall of funds on a case-by-case
basis upon application by the licensee, and will consider the specific
financial situation of each licensee. The NRC Office of Nuclear Reactor
Regulation
[[Page 14141]]
continues to monitor FENOC's decommissioning financial assurance for
its reactors and ISFSIs to ensure adequate funding and compliance with
requirements for decommissioning funding.
The Petition Review Board (PRB) determined that no further actions
were needed, and the NRC made no changes to the final director's
decision as a result of this comment.
Comment 2 (from the petitioner's letter dated January 22, 2019, page
2):
The Environmental Law and Policy Center (ELPC) requested that the
NRC postpone acting upon the proposed director's decision and hold open
ELPC's petition until the NRC can review the December 31, 2018,
decommissioning funding status information.
Response 2:
In the proposed director's decision, the NRC described the existing
requirements and processes in place to monitor the decommissioning
funding status of the licensees. If the report demonstrates that FENOC
has sufficient funding in its trust, then no further action is
necessary. For licensees that are no longer rate-regulated or do not
have access to a non-bypassable charge, as is the case for FENOC and
NG, any shortfalls identified in the report must be corrected by the
time the next decommissioning funding status reports are due (March 31,
2020).
The PRB determined that no further actions were needed, and the NRC
made no changes to the final director's decision as a result of this
comment.
Comment 3 (from the petitioner's letter dated January 22, 2019, pages 2
and 3):
If the NRC does not act now to ensure that FES, FENOC, and NG
reserve adequate funds for decommissioning, parent company FE could
seek to fully extricate itself from any decommissioning obligations
before the NRC can identify the extent of the funding shortfalls.
Response 3:
As stated in the proposed director's decision, the U.S. Department
of Justice, and the NRC's Office of the General Counsel, are working
closely together to represent the NRC's interests in the bankruptcy
proceeding, including protection and preservation of the
decommissioning trust funds and continued compliance with
decommissioning requirements. The proceeding in the U.S. Bankruptcy
Court may result in changes to FENOC's debt structure, including
reorganization and the transfer of control of the reactor operating
licenses. Any such license transfers would be subject to NRC review and
approval. As such, NRC approval of a license transfer would be required
before FE could be removed from the current corporate structure for
purposes relating to NRC licensing. NRC license transfer reviews
include, among other things, a review of the applicant's financial
qualifications, technical qualifications, and decommissioning funding.
To approve the license transfer, the NRC must find that the applicant
has demonstrated that there is reasonable assurance that sufficient
funds will be available for the decommissioning process. Ultimately,
the licensee is responsible for compliance with NRC decommissioning
financial assurance regulations, and the NRC will continue to monitor
the remaining licensee's continued compliance. While the bankruptcy
proceeding is in progress, and until license termination, licensees are
required to continue to comply with NRC regulations.
The PRB determined that no further actions were needed, and the NRC
made no changes to the final director's decision as a result of this
comment.
Comment 4 (from the petitioner's letter dated January 22, 2019, page
3):
There is no suggestion in the proposed Director's Decision that the
NRC has reviewed Chapter 11 monthly statements of financial affairs,
nor that it has assessed the status of the Chapter 11 proceedings.
Response 4:
As stated in the proposed director's decision, the U.S. Department
of Justice and the NRC's Office of the General Counsel are working
closely together to represent the NRC's interests in the bankruptcy
proceeding, including protection and preservation of the
decommissioning trust funds and continued compliance with
decommissioning requirements. The U.S. Department of Justice has
reviewed Chapter 11 monthly statements of financial affairs, and is
actively involved in the status of the Chapter 11 proceedings.
The PRB determined that no further actions were needed, and the NRC
made no changes to the final director's decision as a result of this
comment.
[FR Doc. 2019-06987 Filed 4-8-19; 8:45 am]
BILLING CODE 7590-01-P