[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
                                 -------------------------------------------------------------------------------
    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