[Federal Register Volume 86, Number 241 (Monday, December 20, 2021)]
[Notices]
[Pages 71930-71933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27491]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-255; NRC-2021-0206]
Holtec Decommissioning International, LLC; Palisades Nuclear
Plant
AGENCY: Nuclear Regulatory Commission.
ACTION: Exemption; issuance.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an
exemption in response to a December 23, 2020, request from Holtec
Decommissioning International, LLC (HDI). The exemption permits HDI to
make withdrawals from the Palisades Nuclear Plant (PNP) Decommissioning
Trust Fund (DTF) for spent fuel management and site restoration
activities at PNP without prior notification to the NRC. This exemption
is effective upon issuance, but only applies to HDI upon the
consummation of the indirect transfer of the license for PNP to Holtec
International and the transfer of the operating authority under the
license to HDI.
DATES: The exemption was issued on December 13, 2021.
ADDRESSES: Please refer to Docket ID NRC-2021-0206 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-2021-0206. 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 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, 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.
[[Page 71931]]
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 exemption is attached.
Dated: December 15, 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.
NUCLEAR REGULATORY COMMISSION
Docket No. 50-255
Holtec Decommissioning International, LLC
Palisades Nuclear Plant
Exemption
I. Background.
The Palisades Nuclear Plant (PNP) is a pressurized-water reactor
located in Van Buren County, Michigan. Entergy Nuclear Operations, Inc.
(ENOI) and Entergy Nuclear Palisades, LLC (ENP) hold the U.S. Nuclear
Regulatory Commission (NRC, the Commission) license for PNP, Renewed
Facility Operating License No. DPR-20. This license is subject to the
rules, regulations, and orders of the NRC. Operation of PNP is
scheduled to permanently cease by May 31, 2022.
By application dated December 23, 2020 (Agencywide Documents Access
and Management System (ADAMS) Accession No. ML20358A075), ENOI, on
behalf of itself, ENP, Holtec International (Holtec), and Holtec
Decommissioning International, LLC (HDI), requested that the NRC
consent to (1) the indirect transfer of control of Renewed Facility
Operating License No. DPR-20 for PNP, the general license for the PNP
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 Holtec; and (2) the transfer of
ENOI's operating authority (i.e., its authority to conduct licensed
activities at the Sites) to HDI.
In support of the license transfer application, by letter dated
December 23, 2020 (ADAMS Accession No. ML20358A232), HDI provided to
the NRC a post-shutdown decommissioning activities report (PSDAR) and
site-specific decommissioning cost estimate (SSCE) for PNP. These
documents reflected HDI's proposal to decommission PNP over a period
(inclusive of 2022) of 20 years if the license transfer application is
approved and the proposed license transfer transaction is consummated.
Specifically, the decommissioning of PNP would begin following the
permanent cessation of power operations in 2022 and the majority of
license termination activities would be completed by 2040 (i.e.,
releasing for unrestricted use the entirety of the PNP 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 license, and release the remainder of the site for unrestricted use
in 2041.
II. Request/Action.
In support of the license transfer application, in addition to
providing a PSDAR and an SSCE, by letter dated December 23, 2020 (ADAMS
Accession No. ML20358A239), HDI also submitted to the NRC a request for
exemption from specific requirements of sections 50.82(a)(8)(i)(A) and
50.75(h)(1)(iv) of title 10 of the Code of Federal Regulations (10
CFR). 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 PNP
Decommissioning Trust Fund (DTF) for spent fuel management and site
restoration activities at PNP, in accordance with the HDI 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 Table 1, which shows
the annual cash flows for the PNP DTF while conducting decommissioning
activities under the proposal to decommission PNP discussed in the HDI
PSDAR. The table contains the projected withdrawals from the PNP DTF
needed to cover the estimated costs for PNP for radiological
decommissioning, spent fuel management, and site restoration activities
in accordance with the HDI SSCE. By letter dated March 25, 2021 (ADAMS
Accession No. ML21084A811), pursuant to 10 CFR 50.75(f)(1), ENOI
reported to the NRC the balance of the PNP DTF as of December 31, 2020.
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 PNP
DTF for spent fuel management and site restoration activities at PNP.
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 HDI to use funds from the PNP DTF for spent fuel
management and site restoration activities at PNP 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
others:
(ii) Application of the regulation in the particular circumstances
would not
[[Page 71932]]
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
PNP DTF for spent fuel management and site restoration activities at
PNP 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 the HDI SSCE and the cash flow analyses, use of a
portion of the PNP DTF for spent fuel management and site restoration
activities at PNP will not adversely impact HDI's ability to complete
radiological decommissioning within 60 years and terminate the PNP
license. Furthermore, an exemption from 10 CFR 50.75(h)(1)(iv) to allow
HDI to make withdrawals from the PNP DTF for spent fuel management and
site restoration activities at PNP 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).
Based on the above, there are no new accident precursors created by
using the PNP 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 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 PNP
DTF for spent fuel management and site restoration activities at PNP.
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 DTF 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 PNP DTF for activities other than radiological
decommissioning activities at PNP, such as for spent fuel management
and site restoration activities, until final radiological
decommissioning at PNP has been completed.
The PNP DTF contained $553.84 million as of December 31, 2020.
HDI's analyses project the total radiological decommissioning costs at
PNP to be approximately $443,215,000 (in 2020 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 PNP to
be approximately $166,122,000 (in 2020 dollars).
The NRC staff performed independent cash flow analyses of the PNP
DTF over the proposed 20-year decommissioning 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 DTF. The
NRC staff confirmed that the current funds in the DTF and projected
earnings provide reasonable assurance of adequate funding to complete
all NRC-required radiological decommissioning activities at PNP 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 PNP, even with the disbursement of funds from the
DTF 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 DTF 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 DTFs for activities other than radiological
decommissioning. The underlying purpose of notifying the NRC prior to
such withdrawals of funds from DTFs is to provide an 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 December 23, 2020, are authorized. As stated
previously, the NRC staff determined that there are sufficient funds in
the DTF to complete radiological decommissioning activities, as well as
to conduct spent fuel management and site restoration activities,
consistent with HDI's PSDAR, SSCE, and December 23, 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 DTF and the licensee's funding for spent fuel
management. These reports provide the NRC staff
[[Page 71933]]
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 DTF 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 PNP
DTF to cover authorized expenses for spent fuel management and site
restoration activities at PNP 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 DTF contains
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 the DTF in excess of those needed for radiological decommissioning
for other purposes, such as for 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 PNP DTF to cover the cost of activities
associated with spent fuel management and site restoration, in addition
to radiological decommissioning, is supported by the HDI SSCE. If HDI
cannot use the PNP DTF for spent fuel management and site restoration
activities, it would need to obtain additional funding that would not
be recoverable from the DTF, 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 PNP DTF for spent fuel management and site restoration activities
at PNP 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 in 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 26, 2021 (86 FR 67503)).
IV. Conclusions.
In consideration of the above, the NRC staff finds that the
proposed exemption confirms the adequacy of funding in the PNP DTF,
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 PNP DTF for spent fuel
management and site restoration activities at PNP in accordance with
HDI's PSDAR and SSCE, dated December 23, 2020. 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: December 13, 2021.
For the Nuclear Regulatory Commission.
/RA/
Brian D. Wittick,
Deputy Director, Division of Operating Reactor Licensing, Office of
Nuclear Reactor Regulation.
[FR Doc. 2021-27491 Filed 12-17-21; 8:45 am]
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