[Federal Register Volume 86, Number 239 (Thursday, December 16, 2021)]
[Notices]
[Pages 71528-71530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27274]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-155, 50-255, 72-007, and 72-043; NRC-2021-0211]


In the Matter of Entergy Nuclear Operations, Inc., Entergy 
Nuclear Palisades, LLC, Holtec International and Holtec Decommissioning 
International, LLC, Big Rock Point Plant and Palisades Nuclear Plant

AGENCY: Nuclear Regulatory Commission.

ACTION: Transfer of licenses; order.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
order approving the transfer of Renewed Facility Operating License No. 
DPR-20 for the Palisades Nuclear Plant (Palisades), the general license 
for the Palisades Independent Spent Fuel Storage Installation (ISFSI), 
Facility Operating License No. DPR-6 for Big Rock Point Plant (Big Rock 
Point), and the general license for the Big Rock Point ISFSI (referred 
to collectively as the Sites and the licenses) to a Holtec 
International (Holtec) subsidiary to be known as Holtec Palisades, LLC 
(Holtec Palisades). The order also approves the transfer of operating 
authority from the currently licensed operator, Entergy Nuclear 
Operations, Inc. (ENOI), to Holtec Decommissioning International, LLC 
(HDI). The NRC is also issuing draft conforming amendments to the 
facility operating licenses for administrative purposes to reflect the 
transfer of the licenses from ENOI to HDI and the planned name change 
for Entergy Nuclear Palisades, LLC to Holtec Palisades.

DATES: The order was issued on December 13, 2021, and is effective for 
1 year.

ADDRESSES: Please refer to Docket ID NRC-2021-0211 when contacting the 
NRC about the availability of information regarding this document. You 
may obtain publicly available information related to this document by 
using any of the following methods:
     Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2021-0211. Address 
questions about Dockets IDs in Regulations.gov to Stacy Schumann; 
telephone: 301-415-0624; 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 license transfer order, the NRC 
safety evaluation supporting the staff's findings, and the draft 
conforming license amendments are available in ADAMS under Package 
Accession No. ML21292A155.
     NRC's PDR: You may examine and purchase copies of public 
documents, by appointment, at the NRC's PDR, Room P1 B35, One White 
Flint North, 11555 Rockville Pike, Rockville, Maryland 20852. To make 
an appointment to visit the PDR, please send an email to 
[email protected] or call 1-800-397-4209 or 301-415-4737, between 
8:00 a.m. and 4:00 p.m. (ET), Monday through Friday, except Federal 
holidays.

FOR FURTHER INFORMATION CONTACT: Scott P. Wall, Office of Nuclear 
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001; telephone: 301-415-2855; email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the order is attached.

    Dated: December 13, 2021.

    For the Nuclear Regulatory Commission.
Scott P. Wall,
Senior Project Manager, Plant Licensing Branch III, Division of 
Operating Reactor Licensing, Office of Nuclear Reactor Regulation.

Attachment--Order Approving Transfer of Licenses and Draft Conforming 
Administrative License Amendments

UNITED STATES OF AMERICA

NUCLEAR REGULATORY COMMISSION

    In the Matter of: Entergy Nuclear Operations, Inc., Entergy Nuclear 
Palisades, LLC, Big Rock Point Plant and ISFSI, Palisades Nuclear Plant 
and ISFSI EA-21-158

Docket Nos. 50-155, 50-255, 72-007, and 72-043
License Nos. DPR-6 and DPR-20

ORDER APPROVING TRANSFER OF LICENSES AND DRAFT CONFORMING 
ADMINISTRATIVE LICENSE AMENDMENTS

I.

    Entergy Nuclear Operations, Inc. (ENOI) and Entergy Nuclear 
Palisades, LLC (ENP) are the holders of the U.S. Nuclear Regulatory 
Commission (NRC, the Commission) Facility Operating License No. DPR-6 
for Big Rock Point Plant (Big Rock Point), Renewed Facility Operating 
License No. DPR-20 for Palisades Nuclear Plant (Palisades), and the 
general licenses for the Big Rock Point and the Palisades independent 
spent fuel storage installations (ISFSIs) (collectively, the Sites and 
the licenses). Big Rock Point permanently ceased operations on August 
29, 1997, and ENOI has certified to the NRC its decision to permanently 
cease operations at Palisades no later than

[[Page 71529]]

May 31, 2022. Big Rock Point is located in Hayes, Michigan, in 
Charlevoix County, on the northern shore of Michigan's Lower Peninsula. 
Palisades is located in Covert, Michigan, in Van Buren County, on the 
eastern shore of Lake Michigan.

II.

    ENOI, on behalf of itself, ENP, Holtec International (Holtec), and 
Holtec Decommissioning International, LLC (HDI) (collectively, the 
Applicants), requested that the NRC consent to the transfer of control 
of the licenses to a Holtec subsidiary to be known as Holtec Palisades, 
LLC (Holtec Palisades). The application, dated December 23, 2020 
(Agencywide Documents Access and Management System (ADAMS) Accession 
No. ML20358A075), as supplemented by information in letters from HDI 
dated December 23, 2020, December 23, 2020, and October 29, 2021 (ADAMS 
Accession Nos. ML20358A232, ML20358A239, and ML21302A064, 
respectively), made the request under Section 184, ``Inalienability of 
Licenses,'' of the Atomic Energy Act of 1954, as amended (AEA), and 
Title 10 of the Code of Federal Regulations (10 CFR) Section 50.80, 
``Transfer of licenses,'' and 10 CFR 72.50, ``Transfer of license.'' 
The Applicants also requested that the NRC consent to the transfer of 
ENOI's operating authority (i.e., its authority to conduct licensed 
activities at Big Rock Point and Palisades) to HDI. Finally, the 
Applicants requested that the NRC approve conforming administrative 
amendments to the licenses to reflect the proposed license transfer and 
the planned name change from ENP to Holtec Palisades in accordance with 
10 CFR 50.90, ``Application for amendment of license, construction 
permit, or early site permit.''
    Upon an NRC approval of the license transfer application and the 
consummation of the proposed transfer transaction, Holtec Palisades 
would be the licensed owner for Big Rock Point and Palisades. Holtec 
Palisades would also own each site's associated assets and real estate, 
including the Palisades decommissioning trust fund (DTF), title to 
spent nuclear fuel, and rights under the terms of the Standard Contract 
for Disposal of Spent Nuclear Fuel and/or High-Level Radioactive Waste 
with the U.S. Department of Energy. A wholly-owned subsidiary of 
Holtec, Nuclear Asset Management Company, LLC, would acquire all equity 
interests in the parent companies owning the Sites and would emerge as 
the direct parent company owner of Holtec Palisades.
    Holtec Palisades would enter into an operating agreement for 
decommissioning services with HDI, which would act as its agent, and 
Holtec Palisades would pay for HDI's decommissioning, spent fuel 
management, and site restoration costs incurred at Big Rock Point and 
Palisades; HDI would be the licensed operator for Big Rock Point and 
Palisades. HDI would assume responsibility for compliance with NRC 
regulations and the current licensing bases, including regulatory 
commitments that exist at the consummation of the proposed transfer 
transaction, and would implement any changes under applicable 
regulatory requirements and practices. Comprehensive Decommissioning 
International, LLC, a general contractor to HDI, would perform day-to-
day activities at Big Rock Point and Palisades, including 
decommissioning activities, under a general contractor agreement 
between it and HDI, subject to HDI's direct oversight and control as 
the licensed operator.
    Nuclear Asset Management Company, LLC and HDI would be direct, 
wholly-owned subsidiaries of Holtec Power, Inc., which is a direct, 
wholly-owned subsidiary of Holtec.
    On February 4, 2021, the NRC published in the Federal Register (86 
FR 8225) the notice of consideration of approval of the license 
transfer application and of conforming amendments to the licenses to 
reflect the proposed transfer. This notice provided an opportunity to 
request a hearing within 20 days and an opportunity to comment within 
30 days.
    In response, separate hearing requests were filed by: (1) The State 
of Michigan (ADAMS Accession No. ML21055A888); (2) the Environmental 
Law and Policy Center (ADAMS Accession No. ML21055A914); (3) Beyond 
Nuclear, Michigan Safe Energy Future, and Don't Waste Michigan (ADAMS 
Accession No. ML21055A953); and (4) Mark Muhich (ADAMS Accession No. 
ML21083A134). These hearing requests are pending before the Commission. 
The NRC also received public comments on the license transfer 
application, the general topics of which are provided in the NRC 
staff's safety evaluation of the application. The NRC staff reviewed 
the hearing requests and comment submissions and considered them as 
part of its evaluation of the application.
    The letter from HDI, dated December 23, 2020, requested, in support 
of the license transfer application, an exemption from 10 CFR 
50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) to allow the use of funds 
from the Palisades DTF for spent fuel management and site restoration 
activities at Palisades and to allow disbursements from the Palisades 
DTF for these activities to be made without prior notice, similar to 
withdrawals in accordance with 10 CFR 50.82(a)(8). Separate from this 
order, the NRC staff reviewed and approved the exemption request (ADAMS 
Accession No. ML21286A581). The staff is issuing its approval of the 
exemption request concurrent with its approval of the license transfer 
application; the exemption is effective immediately but will only apply 
to Holtec Palisades and HDI if and when the proposed transfer 
transaction is consummated.
    In accordance with 10 CFR 50.80, no license for a production or 
utilization facility, or any right thereunder, shall be transferred, 
either voluntarily or involuntarily, directly or indirectly, through 
transfer of control of the license to any person, unless the Commission 
gives its consent in writing. In accordance with 10 CFR 72.50, no 
license or any part included in a license for an ISFSI shall be 
transferred, either voluntarily or involuntarily, directly or 
indirectly, through transfer of control of the license to any person, 
unless the Commission gives its consent in writing. Upon review of the 
information in the license transfer application, as supplemented, and 
other information before the Commission, and relying upon the 
representations and agreements contained in the application, the NRC 
staff has determined that Holtec Palisades and HDI are qualified to be 
the holders of the licenses and that the transfer of the licenses, as 
described in the application, is otherwise consistent with applicable 
provisions of law, regulations, and orders issued by the Commission 
pursuant thereto, subject to the conditions set forth below.
    Upon review of the application, as supplemented, for conforming 
administrative amendments to the licenses to reflect the transfer, the 
NRC staff has determined the following:
    (1) The application for amendments complies with the standards and 
requirements of the AEA and the Commission's rules and regulations set 
forth in 10 CFR Chapter I.
    (2) The facility will operate in conformity with the application, 
the provisions of the AEA, and the rules and regulations of the 
Commission.
    (3) There is reasonable assurance that the activities authorized by 
the amendments can be conducted without endangering the public health 
and safety and that such activities will be conducted in compliance 
with the Commission's regulations.

[[Page 71530]]

    (4) The issuance of the amendments will not be inimical to the 
common defense and security or to the public health and safety.
    (5) The issuance of the amendments is in accordance with 10 CFR 
part 51, ``Environmental Protection Regulations for Domestic Licensing 
and Related Regulatory Functions,'' of the Commission's regulations and 
all applicable requirements have been satisfied.
    The findings set forth above are supported by an NRC staff safety 
evaluation dated December 13, 2021, which is available at ADAMS 
Accession No. ML21292A148.

III.

    Accordingly, pursuant to Sections 161b, 161i, and 184 of the AEA; 
42 U.S.C. Sections 2201(b), 2201(i), and 2234; and 10 CFR 50.80, 10 CFR 
72.50, and 10 CFR 50.90, it is hereby ordered that the license transfer 
application, as described herein, be approved, subject to the following 
conditions:
    (1) At least 2 business days before the planned closing date of the 
purchase and sale transaction, HDI shall provide the Directors of the 
NRC's Office of Nuclear Material Safety and Safeguards (NMSS) and 
Office of Nuclear Reactor Regulation (NRR) satisfactory documentary 
evidence that Holtec Palisades and HDI will enter into a 
decommissioning operator services agreement that provides for HDI to 
act as the agent for Holtec Palisades and for Holtec Palisades to pay 
HDI's costs of post-shutdown operations, including decommissioning and 
spent fuel management costs.
    (2) At least 2 business days before the planned closing date of the 
purchase and sale transaction, HDI shall provide the Directors of NMSS 
and NRR satisfactory documentary evidence that the appropriate amount 
of insurance required of a licensee under 10 CFR 140.11(a)(4) and 10 
CFR 50.54(w) has been obtained.
    (3) At least 2 business days before the planned closing date of the 
purchase and sale transaction, HDI shall provide the Directors of NMSS 
and NRR satisfactory documentary evidence that, for the Big Rock Point 
ISFSI, a fund satisfying the prepayment method of 10 CFR 72.30(e)(1) 
for decommissioning has been established.
    (4) At least 2 business days before the planned closing date of the 
purchase and sale transaction, HDI shall provide the Directors of NMSS 
and NRR satisfactory documentary evidence that, for the Big Rock Point 
ISFSI, a fund containing one year's worth of estimated operating costs, 
along with a parent support agreement to continually maintain that fund 
with one year's worth of estimated operating costs, has been 
established.
    (5) The NRC staff's approval of this license transfer is subject to 
the Commission's authority to rescind, modify, or condition the 
approved transfer based on the outcome of any post-effectiveness 
hearing on the license transfer application.
    It is further ordered that, consistent with 10 CFR 2.1315(b), the 
license amendments that make changes, as indicated in Enclosure 2 to 
the letter transmitting this order, to reflect the subject license 
transfer are approved. The amendments shall be issued and made 
effective at the time the proposed transfer actions are completed.
    It is further ordered that at least 2 business days before the 
planned closing date of the purchase and sale transaction, ENOI shall 
provide the Directors of NMSS and NRR with notice of the planned 
closing date of the purchase and sale transaction. Should the proposed 
transfer not be completed within 1 year of the date of this order, this 
order shall become null and void; provided, however, that upon written 
application and for good cause shown, such date may be extended by 
order. The conditions of this order may be amended upon application by 
the Applicants and approval by the NRC.
    This order is effective upon issuance.
    For further details with respect to this order, see the application 
dated December 23, 2020, as supplemented by information in letters from 
HDI dated December 23, 2020, December 23, 2020, and October 29, 2021, 
and the associated NRC staff safety evaluation dated December 13, 2021, 
which are available for public inspection electronically through ADAMS 
in the NRC Library at https://www.nrc.gov/reading-rm/adams.html. 
Persons who do not have access to ADAMS or who encounter problems 
accessing the documents located in ADAMS should contact the NRC Public 
Document Room reference staff by telephone at 1-800-397-4209 or 301-
415-4737 or by email to [email protected].
    Dated: December 13, 2021.
    For the nuclear regulatory commission.

Shana R. Helton, Director,
Division of Fuel Management,
Office of Nuclear Material Safety and Safeguards.

Michael F. King, Deputy Director, Office of Nuclear Reactor Regulation.
[FR Doc. 2021-27274 Filed 12-15-21; 8:45 am]
BILLING CODE 7590-01-P