[Federal Register Volume 85, Number 229 (Friday, November 27, 2020)]
[Notices]
[Pages 76113-76116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26189]
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
[Docket Nos. 50-003, 50-247, and 50-286; NRC-2020-0251]
Holtec Decommissioning International, LLC;
Indian Point Nuclear Generating Station, Unit Nos. 1, 2, and 3
AGENCY: Nuclear Regulatory Commission.
ACTION: Exemption; issuance.
-----------------------------------------------------------------------
SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an
exemption in response to a February 12, 2020, request from Holtec
Decommissioning International, LLC (HDI). The exemption permits HDI to
make withdrawals from the Indian Point Nuclear Generating Station, Unit
Nos. 1, 2, and 3 (referred to individually as IP1, IP2, and IP3,
respectively, and collectively as the Indian Point Energy Center or
IPEC) Decommissioning Trust Funds (DTFs) for spent fuel management and
site restoration activities for IP1, IP2, and IP3 without prior
notification to the NRC. This exemption is effective upon issuance, but
only applies to HDI upon the consummation of the transfers of the
licenses for IP1, IP2, and IP3 to Holtec International (Holtec)
subsidiaries Holtec Indian Point 2, LLC and Holtec Indian Point 3, LLC
and the transfer of the operating authority under the licenses to HDI.
DATES: The exemption was issued on November 23, 2020.
ADDRESSES: Please refer to Docket ID NRC-2020-0251 when contacting the
NRC about the availability of information regarding this document. You
may obtain publicly available information related to this document by
any of the following methods:
Federal Rulemaking website: Go to https://www.regulations.gov and search for Docket ID NRC-2020-0251. Address
questions about 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)
[[Page 76114]]
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.
Attention: The PDR, where you may examine and purchase
copies of public documents, is currently closed. You may submit your
request to the PDR via email at [email protected] or call 1-800-397-
4209 between 8:00 a.m. and 4:00 p.m. (EST), Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Richard V. Guzman, Office of Nuclear
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001; telephone: 301-415-1030, email: [email protected].
SUPPLEMENTARY INFORMATION: The text of the exemption is attached.
Dated: November 23, 2020.
For the Nuclear Regulatory Commission.
Richard V. Guzman,
Senior Project Manager, Plant Licensing Branch I, Division of Operator
Reactor Licensing, Office of Nuclear Reactor Regulation.
Attachment--Exemption.
Nuclear Regulatory Commission
Docket Nos. 50-003, 50-247, and 50-286; Holtec Decommissioning
International, LLC Indian Point Nuclear Generating Station, Unit Nos.
1, 2, and 3; Exemption
I. Background.
The Indian Point Energy Center (IPEC) consists of three, four-loop
pressurized-water reactors, Indian Point Nuclear Generating Station,
Unit Nos. 1, 2, and 3 (IP1, IP2, and IP3, respectively), and an
independent spent fuel storage installation (ISFSI), located in
Buchanan, New York, in Westchester County, on the east bank of the
Hudson River. Operation of IP1 permanently ceased on October 31, 1974
and all fuel was permanently removed from the IP1 reactor vessel by
January 1976; operation of IP2 permanently ceased on April 30, 2020 and
all fuel was permanently removed from the lP2 reactor vessel on May 12,
2020; and operation of IP3 is scheduled to permanently cease by April
30, 2021.
The U.S. Nuclear Regulatory Commission (NRC, the Commission)
licenses for the IPEC are Provisional Operating License No. DPR-5 for
IP1, Renewed Facility Operating License Nos. DPR-26 and DPR-64 for IP2
and IP3, respectively, and the general license for the ISFSI. The
current licensed owners under these licenses are Entergy Nuclear Indian
Point 2, LLC and Entergy Nuclear Indian Point 3, LLC and the current
licensed operator under these licenses is Entergy Nuclear Operations,
Inc. (ENOI). The IPEC licenses are subject to the rules, regulations,
and orders of the NRC.
By application dated November 21, 2019 (Agencywide Documents Access
and Management System (ADAMS) Accession No. ML19326B953), the current
licensed owners and operator and Holtec International (Holtec) and
Holtec Decommissioning International, LLC (HDI) requested that the NRC
consent to the transfer of the ownership of the IPEC licenses to Holtec
subsidiaries Holtec Indian Point 2, LLC and Holtec Indian Point 3, LLC
and the operating authority under these licenses to Holtec subsidiary
HDI.
In support of the license transfer application, by letter dated
December 19, 2019 (ADAMS Accession No. ML19354A698), HDI provided to
the NRC a post-shutdown decommissioning activities report (PSDAR) and
site-specific decommissioning cost estimate (SSCE) for IPEC. These
documents reflected HDI's proposed use of the DECON decommissioning
method to complete decommissioning over a period (inclusive of 2021) of
43 years if the license transfer application is approved and the
proposed license transfer transaction is consummated. The
decommissioning of IPEC would begin following the permanent cessation
of operations of IP3 in 2021 and the majority of license termination
activities would be completed by 2033 (i.e., releasing for unrestricted
use the entirety of the site with the exception of the ISFSI). HDI
would then remove the fuel and Greater than Class C waste from the
site, decommission the ISFSI, terminate the NRC licenses, and release
the remainder of the site for unrestricted use by 2063.
II. Request/Action
In support of the license transfer application, in addition to
providing a PSDAR and an SSCE, by letter dated February 12, 2020 (ADAMS
Accession No. ML20043C539), HDI also submitted to the NRC a request for
exemption from specific requirements of 10 CFR 50.82(a)(8)(i)(A) and 10
CFR 50.75(h)(1)(iv). The exemption from 10 CFR 50.82(a)(8)(i)(A) and 10
CFR 50.75(h)(1)(iv) would permit HDI to make withdrawals from the IP1,
IP2, and IP3 Decommissioning Trust Funds (DTFs) for spent fuel
management and site restoration activities for IP1, IP2, and IP3,
respectively, in accordance with HDI's SSCE. The exemption from 10 CFR
50.75(h)(1)(iv) would also permit HDI to make these withdrawals without
prior notification to the NRC, similar to withdrawals for
decommissioning activities made in accordance with 10 CFR 50.82(a)(8).
The exemption would only apply to HDI if and when the proposed license
transfer transaction is consummated.
As part of its exemption request, HDI provided Tables 1, 2, and 3
for IP1, IP2, and IP3, respectively, showing the annual cash flows for
each unit's DTF while conducting decommissioning activities under the
decommissioning method discussed in HDI's PSDAR. Each table contains
the projected withdrawals from the unit's DTF needed to cover the
estimated costs at that unit for radiological decommissioning, spent
fuel management, and site restoration activities in accordance with
HDI's SSCE. By letter dated March 26, 2020 (ADAMS Accession No.
ML20086Q904), pursuant to 10 CFR 50.75(f)(2), ENOI reported the
balances of the IP1, IP2, and IP3 DTFs as of December 31, 2019. The NRC
staff considered all of this information in its review of the exemption
request.
The requirements of 10 CFR 50.82(a)(8)(i)(A) restrict the use of
DTF withdrawals to expenses related to legitimate decommissioning
activities consistent with the definition of decommissioning that
appears in 10 CFR 50.2, ``Definitions.'' The definition of
``decommission'' in 10 CFR 50.2 is:
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 and site restoration activities. The requirements of 10
CFR 50.75(h)(1)(iv) also restrict the use of DTF disbursements (other
than for ordinary administrative costs and other incidental expenses of
the fund in connection with the operation of the fund) to
decommissioning expenses until final radiological decommissioning is
completed. Therefore, an exemption from 10 CFR 50.82(a)(8)(i)(A) and 10
CFR 50.75(h)(1)(iv) is needed to allow HDI to use funds from the IPEC
DTFs for spent fuel management and site restoration activities at IPEC.
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
[[Page 76115]]
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 HDI to use funds from the IPEC
DTFs for spent fuel management and site restoration activities at IPEC
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:
(ii) 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
(iii) 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 exemption from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(1)(iv) would allow HDI to use a portion of the funds from the
IPEC DTFs for spent fuel management and site restoration activities at
IPEC 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 granting HDI's proposed exemption will not result in a
violation of the Atomic Energy Act of 1954, as amended, or the
Commission's regulations. Therefore, the exemption is authorized by
law.
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. Based on HDI's SSCE and the cash flow analyses, use of a
portion of the IPEC DTFs for spent fuel management and site restoration
activities at IPEC will not adversely impact HDI's ability to complete
radiological decommissioning within 60 years and terminate the IPEC
licenses. Furthermore, an exemption from 10 CFR 50.75(h)(1)(iv) to
allow HDI to make withdrawals from the DTFs for spent fuel management
and site restoration activities without prior written notification to
the NRC will not affect the sufficiency of funds in the DTFs 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).
Based on the above, there are no new accident precursors created by
using the DTFs 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 exemption will not present
an undue risk to public health and safety.
C. Consistent With the Common Defense and Security
The requested exemption would allow HDI to use funds from the IPEC
DTFs for spent fuel management and site restoration activities at IPEC.
Spent fuel management under 10 CFR 50.54(bb) is an integral part of the
planned HDI decommissioning and license termination process and will
not adversely affect HDI's ability to physically secure the site or
protect special nuclear material. This change to enable the use of a
portion of the funds from the DTFs for spent fuel management and site
restoration activities has no relation to security issues. Therefore,
the common defense and security is not impacted by the requested
exemption.
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 restrict 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 IPEC DTFs for activities other than radiological
decommissioning activities at IPEC, such as for spent fuel management
and site restoration activities, until final radiological
decommissioning at IPEC has been completed.
The DTFs for IP1, IP2, and IP3 contained $555.74 million, $701.30
million, and $929.97 million, respectively, as of December 31, 2019.
HDI's analyses project the total radiological decommissioning costs at
IP1, IP2, and IP3 to be approximately $485,015,000, $469,456,000, and
$583,168,000, respectively (in 2019 dollars), including the costs for
decommissioning the ISFSI. As required by 10 CFR 50.54(bb), HDI
estimated the costs associated with spent fuel management at IP1, IP2,
and IP3 to be $72,381,000, $188,278,000, and $371,370,000, respectively
(in 2019 dollars).
The NRC staff performed independent cash flow analyses of the IPEC
DTFs over the proposed 43-year DECON period (assuming an annual real
rate of return of 2 percent, as allowed by 10 CFR 50.75(e)(1)(ii)) and
determined the projected earnings of the DTFs. The NRC staff confirmed
that the current funds in the DTFs and projected earnings provide
reasonable assurance of adequate funding to complete all NRC-required
radiological decommissioning activities at IPEC and also to pay for
spent fuel management and site restoration activities. Therefore, the
NRC staff finds that HDI has provided reasonable assurance that
adequate funds will be available for the radiological decommissioning
of IPEC, even with the disbursement of funds from the DTFs for spent
fuel management and site restoration 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 DTFs
only be used for radiological decommissioning activities and not for
spent fuel management and site restoration activities, is not necessary
to achieve the underlying purpose of the rule. Thus, special
circumstances are present supporting approval of the exemption request.
In its submittal, HDI 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 DTFs to fund activities other than
radiological decommissioning. The underlying
[[Page 76116]]
purpose of notifying the NRC prior to withdrawal of funds from the DTFs
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 DTFs to accomplish radiological
decommissioning.
By granting the exemption 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 HDI's submittal dated February 12, 2020, are authorized. As stated
previously, the NRC staff determined that there are sufficient funds in
the DTFs to complete radiological decommissioning activities, as well
as to conduct spent fuel management and site restoration activities,
consistent with HDI's PSDAR, SSCE, and February 12, 2020, exemption
request. 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 DTFs and the licensee's funding for spent fuel
management. 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 2-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 DTFs for any other purpose that
is not currently authorized in the regulations without prior
notification to the NRC. Therefore, the granting of the exemption to 10
CFR 50.75(h)(1)(iv) to allow HDI to make withdrawals from the DTFs to
cover authorized expenses for spent fuel management and site
restoration 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. HDI states that the DTFs contain
funds in excess of the estimated costs of radiological decommissioning
and that these excess funds are needed for spent fuel management and
site restoration activities. The NRC does not preclude the use of funds
from DTFs in excess of those needed for radiological decommissioning
for other purposes, such as spent fuel management or site restoration
activities.
The NRC has stated that funding for spent fuel management and site
restoration activities may be commingled in DTFs, provided that the
licensee is able to identify and account for the radiological
decommissioning funds separately from the funds set aside for spent
fuel management and site restoration activities (see NRC Regulatory
Issue Summary 2001-07, Rev. 1, ``10 CFR 50.75 Reporting and
Recordkeeping for Decommissioning Planning,'' dated January 8, 2009
(ADAMS Accession No. ML083440158), and Regulatory Guide 1.184, Revision
1, ``Decommissioning of Nuclear Power Reactors,'' dated October 2013
(ADAMS Accession No. ML13144A840)). Preventing access to those excess
funds in DTFs because spent fuel management and site restoration
activities are not associated with radiological decommissioning would
create an unnecessary financial burden without any corresponding safety
benefit. The adequacy of the IPEC DTFs to cover the cost of activities
associated with spent fuel management and site restoration, in addition
to radiological decommissioning, is supported by HDI's SSCE. If HDI
cannot use its DTFs for spent fuel management and site restoration
activities, it would need to obtain additional funding that would not
be recoverable from the DTFs, or it 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.
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 HDI to use a portion of
the IPEC DTFs for spent fuel management and site restoration activities
without prior NRC notification, and 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.
Thus, 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
exemption.
E. Environmental Considerations
In accordance with 10 CFR 51.31(a), the Commission has determined
that granting the exemption 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
November 10, 2020 (85 FR 71664)).
IV. Conclusions.
In consideration of the above, the NRC staff finds that the
proposed exemption confirms the adequacy of funding in the IPEC DTFs,
considering growth, to complete radiological decommissioning of the
site and to terminate the licenses and also to cover estimated spent
fuel management and site restoration 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 public health and safety, and is consistent with the common
defense and security. Also, special circumstances are present.
Therefore, the Commission hereby grants HDI an exemption from the
requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) to
allow the use of a portion of the funds from the IPEC DTFs for spent
fuel management and site restoration activities in accordance with
HDI's PSDAR and SSCE, dated December 19, 2019. Additionally, the
Commission hereby grants HDI an exemption from the requirement of 10
CFR 50.75(h)(1)(iv) to allow such withdrawals without prior NRC
notification.
This exemption is effective upon issuance.
Dated: November 23, 2020.
For the Nuclear Regulatory Commission.
Craig G. Erlanger,
Director, Division of Operating Reactor Licensing, Office of Nuclear
Reactor Regulation.
[FR Doc. 2020-26189 Filed 11-25-20; 8:45 am]
BILLING CODE 7590-01-P