[Federal Register Volume 84, Number 147 (Wednesday, July 31, 2019)]
[Notices]
[Pages 37353-37356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16316]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-155 and 72-043; NRC-2019-0127]


Entergy Nuclear Operations, Inc.; Entergy Nuclear Palisades, LLC; 
Big Rock Point Independent Spent Fuel Storage Installation

AGENCY: Nuclear Regulatory Commission.

ACTION: Exemption; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
exemption from the requirement to maintain a specified level of onsite 
property damage insurance in response to a request from Entergy Nuclear 
Operations, Inc. (ENO) dated August 10, 2018. This exemption would 
permit the Big Rock Point (BRP) Independent Spent Fuel Storage 
Installation (ISFSI) to reduce its onsite insurance coverage from $500 
million to $50 million.

DATES: The exemption was issued on July 31, 2019.

ADDRESSES: Please refer to Docket ID NRC-2019-0127 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-2019-0127. Address 
questions about NRC 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 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: Norma Garc[iacute]a Santos, Office of 
Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001; telephone: 301-415-6999, email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    Big Rock Point is located in Charlevoix County, Michigan, 
approximately 11 miles west of Petoskey, on the northern shore of 
Michigan's Lower Peninsula. The BRP nuclear plant was a boiling water 
reactor rated at 75 MW electric and began commercial operation in March 
1963. The plant was permanently shut down on August 29, 1997, and 
Consumer's Energy (CE) submitted a post shutdown decommissioning 
activities report on September 19, 1997 (ADAMS Accession No. 
ML19196A241). In accordance with the requirements of paragraph 
50.82(a)(9) of title 10 of the Code of Federal Regulations (10 CFR), 
the licensee submitted BRP's license termination plan (LTP) for its 
facility. The licensee constructed an onsite ISFSI under its 10 CFR 
part 50 general license (SFGL-16) and completed the transfer of all 
spent nuclear fuel to the ISFSI in May 2003 (ADAMS Accession No. 
ML031270219). After the release of land from the part 50 license in 
January 2007 (ADAMS Accession No. ML063410368), the remaining onsite 
area is a parcel of land approximately 30 acres, within which the ISFSI 
is located, and an additional parcel of approximately 75 acres adjacent 
to the ISFSI.
    By order dated April 6, 2007 (ADAMS Accession No. ML070740758), the 
NRC approved the direct transfer of Possession Only License No. DPR-06 
for BRP from CE to Entergy Nuclear Palisades, LLC (ENP), and ENO, and 
approved a conforming license amendment, pursuant to 10 CFR 50.80, 
``Transfer of licenses,'' and 10 CFR 72.50, ``Transfer of license,'' to 
reflect the change. The order was published in the Federal Register 
(FR) on April 16, 2007 (72 FR 19056). Accordingly, the project name was 
changed from Big Rock Point Restoration Project to Big Rock Point 
ISFSI.

[[Page 37354]]

II. Request/Action

    The BRP site currently maintains $500 million in onsite insurance 
coverage in accordance with a previous exemption approved by the NRC on 
November 3, 1982 (ADAMS Accession No. ML19196A229). Under 10 CFR 50.12, 
``Specific exemptions,'' BRP has requested an exemption from 10 CFR 
50.54(w)(1) by letter dated August 10, 2018 (ADAMS Accession No. 
ML18222A394). The exemption from the requirements of 10 CFR 50.54(w)(1) 
would permit BRP to reduce its onsite property damage insurance from 
$500 million to $50 million. This second exemption is being requested 
to allow reduced insurance coverage commensurate with the significantly 
reduced risks associated with a single reactor facility that has ceased 
operation, permanently defueled, and transferred all Spent Nuclear Fuel 
(SNF), Special Nuclear Material (SNM), and Greater Than Class C (GTCC) 
waste to dry fuel storage (DFS) casks stored in an ISFSI.
    The regulation in 10 CFR 50.54(w)(1) requires each licensee to have 
and maintain onsite property damage insurance to stabilize and 
decontaminate the reactor and reactor site in the event of an accident. 
The onsite insurance coverage must be either $1.06 billion or whatever 
amount of insurance is generally available from private sources 
(whichever is less).
    In its application, the licensee stated that there is a reduced 
potential for, and consequences of, a fuel handling accident or a fuel 
zirconium fire. Because reactor operation is no longer authorized at 
BRP, there are no events that would require the stabilization of 
reactor conditions after an accident. Similarly, the risk of an 
accident that would result in significant onsite contamination at BRP 
is also much lower than the risk of such an event at operating 
reactors. In addition, plant structures have been removed from the 
site, and non-ISFSI related portions of the site have been released 
from the BRP part 50 license for unrestricted use. Therefore, BRP 
requested an exemption from 10 CFR 50.54(w)(1) that would permit a 
reduction of its onsite property damage insurance from $500 million to 
$50 million, commensurate with an ISFSI only facility, which is 
consistent with the underlying purpose of the rule.

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 when: (1) The exemptions are 
authorized by law, will not present an undue risk to public health or 
safety, and are consistent with the common defense and security; and 
(2) any of the special circumstances listed in 10 CFR 50.12(a)(2) are 
present.
    The financial protection limits of 10 CFR 50.54(w)(1) were 
established after the Three Mile Island accident out of concern that 
licensees may be unable to financially cover onsite cleanup costs in 
the event of a major nuclear accident. The specified coverage 
requirement ($1.06 billion) was developed based on an analysis of an 
accident at a nuclear reactor operating at power, resulting in a large 
fission product release and requiring significant resource expenditures 
to stabilize the reactor conditions and ultimately decontaminate and 
clean up the site.
    The NRC developed cost estimates from the spectrum of postulated 
accidents for an operating nuclear reactor and the consequences of any 
associated release of radioactive material from the reactor. Although 
the risk of an accident at an operating reactor is very low, the 
consequences can be large. In an operating plant, the high temperature 
and pressure of the reactor coolant system, as well as the inventory of 
relatively short-lived radionuclides, contribute to both the risk and 
consequences of an accident. With the permanent cessation of reactor 
operations at BRP, the permanent removal of the fuel from the reactor 
core, and the movement of all the irradiated fuel assemblies into 
storage at the onsite ISFSI, such accidents are no longer possible. As 
a result, the reactor, reactor coolant system, and supporting systems 
no longer operate, and these components have already been dismantled 
and removed from the site as part of the decommissioning process. 
Therefore, these systems and components no longer serve any function 
related to the storage of the irradiated fuel. As such, postulated 
accidents involving failure or malfunction of the reactor, reactor 
coolant system, or supporting systems are no longer applicable at BRP.
    During reactor decommissioning, the principal radiological risks 
are associated with the storage of spent fuel onsite, as well as the 
inventory of radioactive liquids, activated reactor components, and 
contaminated materials. In its August 10, 2018 (ADAMS Accession No. 
ML18222A394), exemption request, BRP noted that because all of the 
spent fuel is stored in dry fuel storage casks in an ISFSI, a fuel 
handling accident and a zirconium fire caused by drain down of the 
spent fuel pool are no longer considered credible events. In the 
current state of decommissioning at BRP, no liquid and airborne 
effluent releases resulting from decommissioning activities are 
considered credible events. In addition, decontamination activities 
have been completed and the site lands other than those associated with 
the ISFSI have been released from the BRP part 50 license. The licensee 
stated that this results in a significant reduction in the number and 
severity of potential accidents involving a significant adverse effect 
on public health and safety.
    In addition, given that all the irradiated fuel assemblies at BRP 
have already been moved into storage at the onsite ISFSI, the fuel is 
no longer thermal-hydraulically capable of sustaining a zirconium fire, 
and can be air-cooled in all credible accident scenarios and fuel 
configurations. The NRC staff has previously authorized a lesser amount 
of onsite property damage insurance coverage based on an analysis of 
the zirconium fire risk. In SECY-96-256, ``Changes to Financial 
Protection Requirements for Permanently Shutdown Nuclear Power 
Reactors, 10 CFR 50.54(w)(1) and 10 CFR 140.11,'' dated December 17, 
1996 (ADAMS Accession No. ML15062A483), the NRC staff recommended 
changes to the power reactor insurance regulations that would allow 
licensees to lower onsite insurance levels to $50 million upon 
demonstration that the fuel stored in the spent fuel pool can be air-
cooled and could account for the postulated rupture of a large liquid 
radiological waste tank at the site, should such an event occur.
    In its Staff Requirements Memorandum to SECY-96-256, dated January 
28, 1997 (ADAMS Accession No. ML15062A454), the Commission supported 
the staff's recommendation that, among other things, would allow 
permanently shutdown power reactor licensees to reduce commercial 
onsite property damage insurance coverage to $50 million when the 
licensee was able to demonstrate the technical criterion that the spent 
fuel could be air-cooled if the spent fuel pool was drained of water, 
and could account for the postulated rupture of a large liquid 
radiological waste tank at the site. In SECY-96-256, the postulated 
large liquid radiological waste storage tank rupture event was 
determined to have a bounding onsite cleanup cost of approximately $50 
million. The staff has used this technical criterion to grant similar 
exemptions to other decommissioning reactors (e.g., Fort Calhoun 
Station, published in the Federal Register on April 6, 2018 (83 FR 
14898); and La Crosse Boiling Water

[[Page 37355]]

Reactor, published in the Federal Register on August 1, 2018 (83 FR 
37532)). These prior exemptions were based on the licensees 
demonstrating that the spent fuel could be air-cooled, consistent with 
the technical criterion discussed above. Accordingly, for BRP, 
decommissioning of the site is complete and the site lands other than 
those associated with the ISFSI have been released for unrestricted 
use. Additionally, all SNF, SNM, and GTCC waste are stored in DFS casks 
at the ISFSI. Therefore, the NRC staff determined $50 million to be an 
adequate level of onsite property damage insurance coverage for the BRP 
site, given that (1) all SNF, SNM, and GTCC waste is stored in the BRP 
ISFSI and the spent fuel is no longer susceptible to a zirconium fire; 
and (2) the inventory of radioactive liquids at the site has been 
eliminated such that liquid and airborne effluent releases are no 
longer considered credible events.

A. Authorized by Law

    The regulation in 10 CFR 50.54(w)(1) requires each licensee to have 
and maintain onsite property damage insurance of either $1.06 billion 
or whatever amount of insurance is generally available from private 
sources, whichever is less. In accordance with 10 CFR 50.12, the 
Commission may grant exemptions from the regulations in 10 CFR part 50, 
as the Commission determines are authorized by law.
    As explained above, the NRC staff has determined that the 
licensee's proposed reduction in onsite property damage insurance 
coverage to a level of $50 million is consistent with the basis 
provided in SECY-96-256 because there is no credible risk of a 
zirconium fire with all irradiated fuel stored in the onsite ISFSI, 
where it is air-cooled in all accident scenarios, all SNM and GTCC 
waste is stored in the ISFSI, and the inventory of radioactive liquids 
at the site has been eliminated such that liquid and airborne effluent 
releases are no longer considered credible events.
    The NRC staff has determined that granting of the licensee's 
proposed exemption will not result in a violation of the Atomic Energy 
Act of 1954, or other laws, as amended. Therefore, based on its review 
of BRP's exemption request, as discussed above, and consistent with 
SECY-96-256, the NRC staff concludes that the exemption is authorized 
by law.

B. No Undue Risk to Public Health and Safety

    The onsite property damage insurance requirements of 10 CFR 
50.54(w)(1) were established to provide financial assurance that 
following a significant nuclear accident, onsite reactor conditions 
could be stabilized, and the site decontaminated. The requirements of 
10 CFR 50.54(w)(1) and the existing level of onsite insurance coverage 
for BRP are predicated on the assumption that the reactor is operating. 
However, the BRP reactor has been permanently shutdown, defueled, and 
removed from the site, with all SNF, SNM, and GTCC waste stored in an 
ISFSI, and the inventory of radioactive liquids at the site has been 
eliminated such that liquid and airborne effluent releases are no 
longer considered credible events. The permanently defueled status of 
the facility has resulted in a significant reduction in the number and 
severity of potential accidents, and correspondingly, a significant 
reduction in the potential for, and severity of, onsite property 
damage. The proposed reduction in the amount of onsite insurance 
coverage does not impact the probability or consequences of any 
potential accidents. The proposed level of insurance coverage is 
commensurate with the reduced risk and reduced cost consequences of 
potential nuclear accidents at BRP. Therefore, the NRC staff concludes 
that granting the requested exemption will not present an undue risk to 
the health and safety of the public.

C. Consistent With the Common Defense and Security

    The proposed exemption would not eliminate any requirements 
associated with physical protection of the site and would not adversely 
affect BRP's ability to physically secure the site or protect special 
nuclear material. Physical security measures at BRP are not affected by 
the requested exemption. Therefore, the proposed exemption is 
consistent with the common defense and security.

D. Special Circumstances

    Under 10 CFR 50.12(a)(2)(ii), special circumstances are present if 
the 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. The underlying purpose of 
10 CFR 50.54(w)(1) is to provide reasonable assurance that adequate 
funds will be available to stabilize reactor conditions and cover 
onsite cleanup costs associated with site decontamination, following a 
reactor accident that results in the release of a significant amount of 
radiological material.
    The BRP site is permanently shutdown and defueled, and source terms 
have been removed by placing all SNF, SNM, and GTCC waste in DFS casks 
in an ISFSI. Decontamination activities associated with the operating 
reactor have been completed and site lands have been released from the 
BRP part 50 license for unrestricted use with only the area supporting 
the ISFSI remaining. Therefore, any radiological consequences of 
accidents that will remain possible at BRP in the decommissioned ISFSI-
only condition are substantially lower than those at an operating 
plant. Accordingly, the staff concludes that the application of the 
current requirements in 10 CFR 50.54(w)(1), as exempted, for BRP to 
maintain $500 million in onsite insurance coverage is not necessary to 
achieve the underlying purpose of the rule for the permanently shutdown 
and defueled BRP facility.
    Under 10 CFR 50.12(a)(2)(iii), special circumstances 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 NRC staff concludes that if the licensee was required to 
continue to maintain an onsite insurance level of $500 million, the 
associated insurance premiums would be in excess of those necessary and 
commensurate with the radiological contamination risks posed by the 
site in its current configuration. In addition, such insurance levels 
would be significantly in excess of other decommissioning reactor 
facilities that have been granted similar exemptions by the NRC.
    As such, the NRC staff finds that compliance with the existing rule 
would result in an undue hardship or other costs that are significantly 
in excess of those contemplated when the regulation was adopted and are 
significantly in excess of those incurred by others similarly situated. 
Therefore, the special circumstances required by 10 CFR 50.12(a)(2)(ii) 
and 10 CFR 50.12(a)(2)(iii) exist for the BRP facility.

E. Environmental Considerations

    The NRC approval of an exemption to insurance or indemnity 
requirements belongs to a category of actions that the Commission, by 
rule or regulation, has declared to be a categorical exclusion, after 
first finding that the category of actions does not individually or 
cumulatively have a significant effect on the human environment. 
Specifically, the exemption is categorically excluded from further 
analysis under 10 CFR 51.22(c)(25).

[[Page 37356]]

    Under 10 CFR 51.22(c)(25), granting of an exemption from the 
requirements of any regulation of chapter I to 10 CFR is a categorical 
exclusion provided that (i) there is no significant hazards 
consideration; (ii) there is no significant change in the types or 
significant increase in the amounts of any effluents that may be 
released offsite; (iii) there is no significant increase in individual 
or cumulative public or occupational radiation exposure; (iv) there is 
no significant construction impact; (v) there is no significant 
increase in the potential for or consequences from radiological 
accidents; and (vi) the requirements from which an exemption is sought 
involve: Surety, insurance, or indemnity requirements.
    The NRC staff determined that approval of the exemption request 
involves no significant hazards consideration because reducing the 
licensee's onsite property damage insurance for BRP does not (1) 
involve a significant increase in the probability or consequences of an 
accident previously evaluated; or (2) create the possibility of a new 
or different kind of accident from any accident previously evaluated; 
or (3) involve a significant reduction in a margin of safety. The 
exempted financial protection regulation is unrelated to the operation 
of BRP. Accordingly, there is no significant change in the types or 
significant increase in the amounts of any effluents that may be 
released offsite; and no significant increase in individual or 
cumulative public or occupational radiation exposure.
    The exempted regulation is not associated with construction, so 
there is no significant construction impact. The exempted regulation 
does not concern the source term (i.e., potential amount of radiation 
in an accident), nor mitigation. Therefore, there is no significant 
increase in the potential for, or consequences of, a radiological 
accident. In addition, there would be no significant impacts to biota, 
water resources, historic properties, cultural resources, or 
socioeconomic conditions in the region. The requirement for onsite 
property damage insurance involves surety, insurance, and indemnity 
matters. Therefore, pursuant to 10 CFR 51.22(b) and 10 CFR 
51.22(c)(25), no environmental impact statement or environmental 
assessment need be prepared in connection with the approval of this 
exemption request.

IV. Conclusions

    The Commission has determined that, pursuant to 10 CFR 50.12(a), 
the exemption is authorized by law, will not present an undue risk to 
the public health and safety, and is consistent with the common defense 
and security. Also, special circumstances are present. Therefore, the 
Commission hereby grants BRP an exemption from the requirements of 10 
CFR 50.54(w)(1), to permit the licensee to reduce its onsite property 
damage insurance coverage to a level of $50 million.

    Dated at Rockville, Maryland, this 26th day of July, 2019.

    For the Nuclear Regulatory Commission.
John B. McKirgan,
Chief, Spent Fuel Licensing Branch, Division of Spent Fuel Management, 
Office of Nuclear Material Safety and Safeguards.
[FR Doc. 2019-16316 Filed 7-30-19; 8:45 am]
BILLING CODE 7590-01-P