[Federal Register Volume 84, Number 159 (Friday, August 16, 2019)]
[Notices]
[Pages 42025-42027]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17599]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-275 and 50-323; NRC-2019-0131]


Pacific Gas and Electric Company; Diablo Canyon Nuclear Power 
Plant, Units 1 and 2

AGENCY: Nuclear Regulatory Commission.

ACTION: Environmental assessment and finding of no significant impact; 
issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is considering 
issuance of exemptions in response to a December 13, 2018, request from 
Pacific Gas and Electric Company (PG&E, the licensee) for Diablo Canyon 
Nuclear Power Plant (Diablo Canyon), Units 1 and 2. One exemption would 
allow the licensee to use an amount of funds from the Diablo Canyon 
Nuclear Decommissioning Trust (NDT) for decommissioning planning above 
the amount limitations specified in NRC's regulations. Another 
exemption would allow the licensee to use withdrawals from the NDT to 
fund planning activities associated with spent fuel management and site 
restoration. The NRC staff is issuing a final environmental assessment 
(EA) and final finding of no significant impact (FONSI) associated with 
the proposed exemptions.

DATES: The EA and FONSI referenced in this document are available on 
August 16, 2019.

ADDRESSES: Please refer to Docket ID NRC-2019-0131 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-2019-0131. 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: Balwant K. Singal, Office of Nuclear 
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington DC 
20555-0001; telephone: 301-415-3016, email: [email protected].

SUPPLEMENTARY INFORMATION: 

I. Introduction

    The NRC is considering issuance of exemptions from sections 
50.82(a)(8)(i)(A) and 50.82(a)(8)(ii) of title 10 of the Code of 
Federal Regulations (10 CFR) for Facility Operating License Nos. DPR-80 
and DPR-82, issued to PG&E for operation of Diablo Canyon, Units 1 and 
2, located in San Luis Obispo, California. The licensee requested the 
exemptions by letter dated December 13, 2018 (ADAMS Accession No. 
ML18347B552) pursuant to 10 CFR 50.12. In accordance with 10 CFR 51.21, 
the NRC prepared the following EA that analyzed the environmental 
impacts of the proposed licensing action. Based on the results of this 
EA that follow, and in accordance with 10 CFR 51.31(a), the NRC has 
determined not to prepare an environmental impact statement for these 
exemption requests and is issuing a FONSI.

II. Environmental Assessment

Description of the Proposed Action

    The proposed action would exempt PG&E from the requirements of 10 
CFR 50.82(a)(8)(i)(A) and 10 CFR 50.82(a)(8)(ii). One exemption would 
allow the licensee to use an amount of funds from the Diablo Canyon NDT 
for decommissioning planning above the amount limitations specified in 
NRC regulations for operating reactors. Another exemption would allow 
the licensee to use withdrawals from the NDT for planning activities 
associated with spent fuel management and site restoration. Overall, 
the proposed action would allow PG&E to withdraw $187.8 million ($2017) 
\1\ from the Diablo Canyon NDT to fund radiological decommissioning, 
spent fuel management, and site restoration planning activities 
necessary prior to permanent cessation of operations of Diablo Canyon, 
Units 1 and 2, in 2024 and 2025, respectively. The proposed action is 
in accordance with the licensee's application dated December 13, 2018.
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    \1\ In its application, PG&E submitted the decommissioning costs 
in 2017 dollars to be consistent with presentation of a year-end 
asset balance in the NDT. If the NRC grants the exemptions, funds 
would be withdrawn from the NDT in nominal (current) dollars.
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Need for the Proposed Action

    By letter dated November 27, 2018 (ADAMS Accession No. 
ML18331A553), PG&E informed the NRC of its intention to permanently 
cease operation of Diablo Canyon, Units 1 and 2, on November 2, 2024, 
and August 26, 2025, respectively.
    The requirements of 10 CFR 50.82(a)(8)(ii) restrict the use of NDT 
for decommissioning planning for operating reactors to three percent of 
the generic minimum decommissioning amount calculated, consistent with 
a formula set forth by the regulations at 10 CFR 50.75. Furthermore, as 
required by 10 CFR 50.82(a)(8)(i)(A), decommissioning trust funds may 
be used by the licensee if the withdrawals are for legitimate 
decommissioning planning activities, consistent with the definition of 
decommissioning in 10 CFR 50.2. This definition addresses radiological 
decontamination and does not include activities associated with 
irradiated fuel management or site restoration activities. Therefore, 
these regulations would limit withdrawal from the Diablo Canyon NDT to 
$37.2 million ($18.6 million per unit) and would allow spending only on 
planning activities for radiological decommissioning.
    PG&E has estimated that a total of $187.8 million ($2017) would be 
required to be spent on pre-shutdown planning activities; $148.4 
million would be for radiological decommissioning, and $39.4 million 
would be for spent fuel management and site restoration planning 
activities.

[[Page 42026]]

The estimated $148.4 million amount is more than three percent of the 
generic minimum decommissioning amount calculated, consistent with a 
formula set forth by regulations at 10 CFR 50.75. Furthermore, 
withdrawals from the decommissioning trust fund cannot be used to fund 
the PG&E estimated $39.4 million for spent fuel management and site 
restoration planning activities absent (1) a clear indication that 
monies in the fund were collected for those purposes and are clearly 
and consistently accounted for separately,\2\ or (2) an exemption from 
the requirements of 10 CFR 50.82(a)(8)(i)(A) for use of funds for those 
purposes.
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    \2\ In 1999, some licensees reporting under 10 CFR 50.75(f) did 
not distinguish between estimates of costs to complete 
decommissioning required by the NRC (radiological decommissioning) 
and other costs associated with cleaning up the site. The NRC staff 
issued Regulatory Issue Summary 2001-07, Revision 1, ``10 CFR 50.75 
Reporting and Recordkeeping for Decommissioning Planning,'' to 
clarify for licensees the need to preserve the distinction between 
radiological decommissioning cost estimates and all other 
decommissioning cost estimates in the reports licensees must submit 
in accordance with 10 CFR 50.75.
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    Therefore, pursuant to 10 CFR 50.12, PG&E requests exemptions from 
10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.82(a)(8)(ii) to allow withdrawal 
of a total of $187.8 million ($2017) from the Diablo Canyon NDT to fund 
radiological decommissioning, spent fuel management, and site 
restoration planning activities prior to permanent cessation of 
operations of Diablo Canyon, Units 1 and 2, in 2024 and 2025, 
respectively, to support direct transition to decommissioning upon 
permanent cessation of operations.

Environmental Impacts of the Proposed Action

    The proposed action involves exemptions from the requirements 
related to use of the NDT that are of a financial nature and allow PG&E 
to pay for decommissioning planning activities necessary to support 
direct transition to physical decommissioning upon permanent shutdown 
of Diablo Canyon, Units 1 and 2. The proposed action also allows PG&E 
to use these funds to support planning for spent fuel management and 
site restoration activities.
    The NRC has completed its evaluation and concludes that there is 
reasonable assurance that adequate funds are available in the NDT to 
complete all activities associated with radiological decommissioning. 
There is no decrease in safety associated with the NDT being used to 
fund planning activities associated with radiological decommissioning, 
spent fuel management, and site restoration. As required by 10 CFR 
50.75, PG&E has submitted a Decommissioning Funding Report for Diablo 
Canyon by letter dated March 26, 2019 (ADAMS Accession No. 
ML19094B780), which includes a site-specific decommissioning cost 
estimate for Diablo Canyon, Units 1 and 2.
    The regulations at 10 CFR 50.75 require, in part, that the report 
include the amount of decommissioning funds accumulated, modifications 
occurring to a licensee's current method of providing financial 
assurance since the last submitted report, and plans to adjust levels 
of funds assured for decommissioning to demonstrate that a reasonable 
level of assurance will be provided that funds will be available when 
needed to cover the cost of decommissioning. A licensee for a plant 
that is within five years of its projected end of operation is required 
to submit this report annually.
    The proposed action will not significantly increase the probability 
or consequences of radiological accidents. Additionally, the NRC staff 
has concluded that the proposed changes would have no direct 
radiological environmental impacts. There are no changes in the types 
or amounts of effluents that are, or may be, released offsite resulting 
from these exemptions. PG&E must continue to comply with all 
appropriate NRC regulations related to occupational and public 
radiation exposure, and thus, the exemptions will not result in an 
increase to occupational or public doses.
    With regard to the potential nonradiological environmental impacts, 
the proposed action would have no direct impacts on land use or water 
resources, including terrestrial and aquatic biota, as it involves no 
new land disturbing activities, new construction or modification of 
plant operational systems. There would be no changes to the quality or 
quantity of nonradiological effluents, and no changes to the plant's 
National Pollutant Discharge Elimination System permits would be 
needed. In addition, there would be no noticeable effect on 
socioeconomic conditions in the region, no environmental justice 
impacts, no air quality impacts, and no impacts to historic and 
cultural resources from the proposed changes. Therefore, there are no 
significant nonradiological environmental impacts associated with the 
proposed action.
    Accordingly, the NRC concludes that there will be no significant 
environmental impacts associated with the proposed action.

Environmental Impacts of the Alternatives to the Proposed Action

    As an alternative to the proposed action, the NRC staff considered 
denial of the proposed action (i.e., the ``no-action'' alternative). 
Denial of these exemption requests would result in no change in current 
environmental impacts. Therefore, the environmental impacts of the 
proposed action and alternative action are similar.

Alternative Use of Resources

    There are no unresolved conflicts concerning alternative uses of 
available resources under the proposed action.

Agencies and Persons Consulted

    On June 6, 2019, the NRC notified the State of California of this 
EA and FONSI. No additional agencies or persons were consulted 
regarding the environmental impact of the proposed action.

III. Finding of No Significant Impact

    The proposed action would exempt PG&E from the requirements of 10 
CFR 50.82(a)(8)(i)(A) and 10 CFR 50.82(a)(8)(ii) to allow PG&E to 
withdraw $187.8 million ($2017) from the Diablo Canyon NDT to fund 
radiological decommissioning, spent fuel management, and site 
restoration planning activities. The proposed action would not 
significantly affect plant safety, would not have a significant adverse 
effect on the probability of an accident occurring, and would not have 
any significant radiological or non-radiological impacts. The reason 
the human environment would not be significantly affected is that the 
proposed action involves an exemption from requirements that are of a 
financial nature that do not have an impact on the human environment.
    The related environmental document is the Diablo Canyon Final 
Environmental Statement dated May 1973 (ADAMS Accession No. 
ML15043A481),\3\ which provides the latest environmental review of 
operations of Diablo Canyon, Units 1 and 2.
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    \3\ Final Environmental Statement Related to the Nuclear 
Generating Station Diablo Canyon, Units 1 and 2, Pacific Gas and 
Electric Company, Docket Nos. 50-275 and 50-323, May 1973.
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    Consistent with 10 CFR 51.21, the NRC conducted the EA for the 
proposed action, which concluded that there will be no significant 
environmental impacts associated with the proposed action. This FONSI 
incorporates by reference the EA included in Section II of this 
document. Accordingly, the NRC has decided not to prepare an

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environmental impact statement for the proposed action.
    The finding and other related environmental documents may be 
examined, and/or copied for a fee, at the NRC's Public Document Room 
(PDR), located at One White Flint North, 11555 Rockville Pike, 
Rockville, Maryland 20852. Publicly available records are accessible 
electronically from ADAMS Public Electronic Reading Room on the 
internet at the NRC's website: https://www.nrc.gov/reading-rm/adams.html. Persons who do not have access to ADAMS or who encounter 
problems in accessing the documents located in ADAMS should contact the 
NRC's PDR Reference staff by telephone at 1-800-397-4209 or 301-415-
4737, or by email to [email protected].

    Dated at Rockville, Maryland, this 12th day of August 2019.

    For the Nuclear Regulatory Commission.
Balwant K. Singal,
Senior Project Manager, Plant Licensing Branch IV, Division of 
Operating Reactor Licensing, Office of Nuclear Reactor Regulation.
[FR Doc. 2019-17599 Filed 8-15-19; 8:45 am]
 BILLING CODE 7590-01-P