[Federal Register Volume 84, Number 205 (Wednesday, October 23, 2019)]
[Notices]
[Pages 56846-56850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23029]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-289; NRC-2019-0199]
Exelon Generation Company LLC; Three Mile Island Nuclear Station
Unit 1
AGENCY: Nuclear Regulatory Commission.
ACTION: Exemptions; issuance.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) has issued
exemptions in response to an April 12, 2019, request from Exelon
Generation Company, LLC (Exelon, the licensee). One exemption permits
the use of the Three Mile Island Nuclear Station, Unit 1 (TMI-1)
Decommissioning Trust Fund (DTF) for spent fuel management activities
based on the TMI-1 post-shutdown decommissioning activities report
(PSDAR) and site-specific decommissioning cost estimate (DCE). The
other exemption permits the licensee to make withdrawals from the DTF
for spent fuel management activities without prior notification of the
NRC.
DATES: The exemptions were issued on October 16, 2019.
ADDRESSES: Please refer to Docket ID NRC-2019-0199 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-2019-0199. 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: Justin C. Poole, Office of Nuclear
Reactor Regulation; U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001; telephone: 301-415-2048; email: [email protected].
SUPPLEMENTARY INFORMATION: The text of the exemptions are attached.
Dated at Rockville, Maryland, this 17th day of October, 2019.
For the Nuclear Regulatory Commission.
Justin C. Poole,
Project Manager, Plant Licensing Branch I, Division of Operating
Reactor Licensing, Office of Nuclear Reactor Regulation.
Attachment--Exemptions
NUCLEAR REGULATORY COMMISSION
Docket No. 50-289
Exelon Generation Company, LLC
Three Mile Island Nuclear Station, Unit 1
Exemptions
I. Background
Exelon Generation Company, LLC (Exelon, the licensee) is the holder
of Renewed Facility Operating License No. DPR-50 for the Three Mile
Island Nuclear Station, Unit 1 (TMI-1). The facility is located in
Dauphin County, Pennsylvania.
By letter dated June 20, 2017 (Agencywide Documents Access and
Management System (ADAMS) Accession No. ML17171A151), Exelon submitted
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 TMI-1 no later than September 30,
2019. By letter dated September 26, 2019 (ADAMS Accession No.
ML19269E480), Exelon submitted to the NRC a certification in accordance
with 10 CFR 50.82(a)(1)(ii), stating that as of September 26, 2019, all
fuel had been permanently removed from the TMI-1 reactor vessel. By
separate letters dated April 5, 2019 (ADAMS Accession Nos. ML19095A009,
ML19095A010, and
[[Page 56847]]
ML19095A041), Exelon submitted the TMI-1 spent fuel management plan
(SFMP), site-specific decommissioning cost estimate (DCE), and post-
shutdown decommissioning activities report (PSDAR), respectively.
II. Request/Action
By letter dated April 12, 2019 (ADAMS Accession No. ML19102A085),
Exelon submitted a request for exemptions from 10 CFR 50.82(a)(8)(i)(A)
and 10 CFR 50.75(h)(1)(iv). The requested exemption from 10 CFR
50.82(a)(8)(i)(A) would permit Exelon to use funds from the TMI-1
Decommissioning Trust Fund (DTF) for spent fuel management activities
in accordance with the TMI-1 site-specific 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).
The 10 CFR 50.82(a)(8)(i)(A) requirement restricts the use of DTF
withdrawals to expenses for legitimate decommissioning activities
consistent with the definition of decommissioning that appears in 10
CFR 50.2. The definition of ``decommission'' in 10 CFR 50.2 reads as
follows:
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 spent
fuel management activities. Therefore, an exemption from 10 CFR
50.82(a)(8)(i)(A) is needed to allow Exelon to use funds from the DTF
for spent fuel management activities. The requirements of 10 CFR
50.75(h)(1)(iv) also restrict the use of DTF disbursements (other than
for ordinary and incidental expenses) to decommissioning expenses until
final radiological decommissioning is completed. Therefore, partial
exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) are
needed to allow Exelon to use funds from the TMI-1 DTF for spent fuel
management activities in accordance with the TMI-1 site-specific DCE.
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 TMI-1 DTF for spent fuel management activities at TMI-1 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. 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 TMI-1 DTF for spent fuel management activities at TMI-1 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 there is
reasonable assurance of adequate funding for radiological
decommissioning because the licensee's use of the DTF for activities
associated with spent fuel management will not negatively impact the
availability of funding for radiological decommissioning. Accordingly,
the exemptions are authorized by law because 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.
B. No Undue Risk to 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. As explained in further detail in Section D below, based on
the NRC staff's review of Exelon's site-specific DCE and the staff's
independent cash flow analysis provided in the enclosed Table 1, ``NRC
Cash Flow Analysis of TMI-1 Decommissioning Trust Funds and Associated
Costs, including Spent Fuel Management,'' the NRC staff finds that the
use of the TMI-1 DTF for spent fuel management activities at TMI-1 will
not adversely impact Exelon's ability to terminate the TMI-1 license
(i.e., complete radiological decommissioning) as planned, consistent
with the schedule and costs contained in the PSDAR.
Furthermore, an exemption from 10 CFR 50.75(h)(1)(iv) to allow the
licensee to make withdrawals from the DTF for spent fuel management
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).
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. Consistent With the Common Defense and Security
The requested exemptions would allow Exelon to use funds from the
TMI-1 DTF for spent fuel management activities at TMI-1. Spent fuel
management under 10 CFR 50.54(bb) is an integral part of the planned
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
[[Page 56848]]
from the DTF for spent fuel management 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 restricts 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 TMI-1 DTF for spent fuel management activities, until
final radiological decommissioning at TMI-1 has been completed.
The April 1, 2019, annual report on the status of decommissioning
funding for TMI-1 (ADAMS Accession No. ML19091A140), and the PSDAR both
report a DTF balance of $669.6 million as of December 31, 2018. The
cash flow analysis in Table 2 of the April 12, 2019, application is
based on a beginning DTF balance of $662.9 million as of December 31,
2018. The licensee stated that the beginning DTF balance was adjusted
to account for 2017 and 2018 site radiological decommissioning planning
and 2018 spent fuel management planning costs that would be reimbursed
if the exemptions were granted. The Exelon analysis in the TMI-1 site-
specific DCE, PSDAR, and exemption requests project the total
radiological decommissioning cost of TMI-1 to be approximately $1
billion in 2018 dollars and the spent fuel management costs to be
$158.6 million in 2018 dollars. This amounts to total estimated costs
of approximately $1.16 billion for decommissioning and spent fuel
management, with license termination occurring in 2081.
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 two 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 1. In its
analysis, the NRC staff used the lesser opening DTF balance of $662.9
million as a conservative estimate that reflects less money available
to cover radiological decommissioning and spent fuel management costs.
As shown in the enclosed Table 1, the NRC staff confirmed that the
current funds in the DTF and projected earnings are expected to be
available and sufficient to complete all NRC required radiological
decommissioning activities at TMI-1, and also to pay for spent fuel
management activities. Therefore, the NRC staff finds that Exelon has
provided reasonable assurance that adequate funds will be available for
the radiological decommissioning of TMI-1, even with the disbursement
of funds from the DTF for spent fuel management 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 spent fuel management activities, is not
necessary to achieve the underlying purpose of the rule; thus, special
circumstances are present supporting approval of the exemption
requests.
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 April 12, 2019, 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 spent fuel management activities
consistent with the PSDAR, site-specific DCE, and the April 12, 2019,
exemption requests. 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 spent 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
two-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 spent fuel
management 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 stated that the DTF
contains funds in excess of the estimated costs of radiological
decommissioning and that these excess funds are needed for spent fuel
management activities. Preventing access to those excess funds in the
DTF because spent fuel management 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 radiological
decommissioning and pay for costs associated with spent fuel management
is supported by the staff's independent cash flow analysis in the
enclosed Table 1. If the licensee cannot use its DTF for spent fuel
management, 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
[[Page 56849]]
TMI-1 DTF for spent fuel management 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 October 16, 2019 (84 FR 55342).
IV. Conclusions
In consideration of the above, the NRC staff finds that the
proposed exemptions confirm the adequacy of funding in the TMI-1 DTF to
complete radiological decommissioning of the site and to terminate the
license and also to cover estimated spent fuel management activities.
Accordingly, 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 Exelon exemptions from the
requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) to
allow them to use of a portion of the funds from the TMI-1 DTF for
spent fuel management activities, without prior NRC notification,
consistent with the PSDAR and site-specific DCE dated April 5, 2019.
The exemptions are effective upon issuance.
Dated at Rockville, Maryland, this 16th day of October, 2019.
For the Nuclear Regulatory Commission.
/RA/
Craig G. Erlanger,
Director, Division of Operating Reactor Licensing, Office of Nuclear
Reactor Regulation.
Table 1--NRC Cash Flow Analysis of TMI-1 Decommissioning Trust Funds and Associated Costs, Including Spent Fuel
Management
[thousands of constant 2018 dollars]
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License Spent fuel
Year Opening DTF termination management Interest 2% EOY trust fund
balance costs costs value
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2019............................ $662,953 $20,490 $27,477 $12,300 $627,286
2020............................ 627,286 66,516 30,973 10,596 540,393
2021............................ 540,393 45,645 25,395 9,387 478,740
2022............................ 478,740 38,025 14,963 8,515 434,267
2023............................ 434,267 10,088 123 8,481 432,537
2024............................ 432,537 9,099 1,139 8,446 430,745
2025............................ 430,745 6,057 4,152 8,411 428,947
2026............................ 428,947 6,057 4,152 8,375 427,112
2027............................ 427,112 6,057 4,152 8,338 425,241
2028............................ 425,241 6,073 4,163 8,300 423,305
2029............................ 423,305 6,057 4,152 8,262 421,358
2030............................ 421,358 6,057 4,152 8,223 419,372
2031............................ 419,372 6,057 4,152 8,183 417,347
2032............................ 417,347 6,073 4,163 8,142 415,253
2033............................ 415,253 6,057 4,152 8,101 413,145
2034............................ 413,145 6,052 7,385 7,994 407,702
2035............................ 407,702 6,040 13,784 7,758 395,635
2036............................ 395,635 5,702 0 7,799 397,732
2037............................ 397,732 5,686 0 7,841 399,887
2038............................ 399,887 5,686 0 7,884 402,085
2039............................ 402,085 5,686 0 7,928 404,327
2040............................ 404,327 5,702 0 7,973 406,598
2041............................ 406,598 5,686 0 8,018 408,930
2042............................ 408,930 5,686 0 8,065 411,309
2043............................ 411,309 5,686 0 8,112 413,735
2044............................ 413,735 5,702 0 8,161 416,194
2045............................ 416,194 5,686 0 8,210 418,718
2046............................ 418,718 5,686 0 8,261 421,293
2047............................ 421,293 5,686 0 8,312 423,919
2048............................ 423,919 5,702 0 8,364 426,581
2049............................ 426,581 5,686 0 8,418 429,313
2050............................ 429,313 5,686 0 8,473 432,099
2051............................ 432,099 5,686 0 8,528 434,942
2052............................ 434,942 5,702 0 8,585 437,825
2053............................ 437,825 5,686 0 8,643 440,781
2054............................ 440,781 5,686 0 8,702 443,797
2055............................ 443,797 5,686 0 8,762 446,873
2056............................ 446,873 5,702 0 8,823 449,995
2057............................ 449,995 5,686 0 8,886 453,195
2058............................ 453,195 5,686 0 8,950 456,459
2059............................ 456,459 5,686 0 9,015 459,789
2060............................ 459,789 5,702 0 9,082 463,168
2061............................ 463,168 5,686 0 9,150 466,632
2062............................ 466,632 5,686 0 9,219 470,165
[[Page 56850]]
2063............................ 470,165 5,886 0 9,286 473,565
2064............................ 473,565 5,702 0 9,357 477,220
2065............................ 477,220 5,686 0 9,431 480,965
2066............................ 480,965 5,686 0 9,506 484,784
2067............................ 484,784 5,686 0 9,582 488,680
2068............................ 488,680 5,702 0 9,660 492,638
2069............................ 492,638 5,686 0 9,739 496,691
2070............................ 496,691 5,886 0 9,816 500,621
2071............................ 500,621 5,686 0 9,899 504,833
2072............................ 504,833 5,702 0 9,983 509,114
2073............................ 509,114 24,709 0 9,688 494,093
2074............................ 494,093 61,226 0 8,657 441,524
2075............................ 441,524 150,301 0 5,824 297,048
2076............................ 297,048 113,681 0 3,667 187,034
2077............................ 187,034 75,862 0 2,223 113,396
2078............................ 113,396 75,687 0 754 38,463
2079............................ 38,463 32,813 0 113 5,763
2080............................ 5,763 133 0 113 5,743
2081............................ 5,743 95 0 113 5,760
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Total....................... .............. 1,001,949 158,629 .............. ..............
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[FR Doc. 2019-23029 Filed 10-22-19; 8:45 am]
BILLING CODE 7590-01-P