[Federal Register Volume 87, Number 115 (Wednesday, June 15, 2022)]
[Notices]
[Pages 36154-36157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-12863]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-0289; NRC-2022-0115]


Constellation Energy Generation, LLC; Three Mile Island Station, 
Unit 1

AGENCY: Nuclear Regulatory Commission.

ACTION: Exemption; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing 
exemptions to Constellation Energy Generation, LLC (CEG) in response to 
a May 20, 2021, request. The exemptions permit CEG to use a portion of 
the funds from the Three Mile Island Station, Unit 1 (TMI-1) 
decommissioning trust fund (DTF) for site restoration activities at 
TMI-1 without prior notice to the NRC in the same manner that 
withdrawals are made under NRC regulations for decommissioning 
activities.

DATES: The exemptions were issued on June 8, 2022.

ADDRESSES: Please refer to Docket ID NRC-2022-0115 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-2022-0115. Address 
questions about Docket 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]. For the convenience of the reader, 
instructions about obtaining materials referenced in this document are 
provided in the ``Availability of Documents'' section.
     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. Eastern Time (ET), Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Amy Snyder, Office of Nuclear Material 
Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, 
DC 20555-0001, telephone: 301-415-6822, email: [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    TMI-1 is a single unit Babcock & Wilcox Pressurized Water Reactor. 
CEG is the holder of Renewed Facility Operating License (RFOL) No. DPR-
50 for TMI-1. On February 1, 2022, CEG notified the NRC that Exelon 
Generation Company, LLC (Exelon) officially changed its name to 
Constellation Energy Generation, LLC. By letter dated June 20, 2017, 
per Section 50.82(a)(1)(i) of title 10 of the Code of Federal 
Regulations (10 CFR), Exelon certified to the NRC that it planned to 
permanently cease power operations at TMI-1 on or about September 30, 
2019. TMI-1 subsequently permanently ceased power operations on 
September 20, 2019. By letter dated September 26, 2019, pursuant to 10 
CFR 50.82(a)(1)(ii), Exelon certified to the NRC that all fuel had been 
permanently removed from the TMI-1 reactor vessel and placed in the 
spent fuel pool as of September 26, 2019. Accordingly, pursuant to 10 
CFR 50.82(a)(2), the TMI-1 RFOL no longer authorizes operation of the 
reactor or emplacement or retention of fuel in the reactor vessel.
    By letter dated April 5, 2019, Exelon provided to the NRC a Post-
Shutdown Decommissioning Activities Report (PSDAR) for TMI-1. The PSDAR 
reflected the use of a safe storage condition (SAFSTOR), thereby 
reflecting plans to complete decommissioning within a 60-year period 
after the permanent cessation of operations. The PSDAR referenced a 
site-specific decommissioning cost estimate (DCE) and an updated Spent 
Fuel Management Plan (SFMP). The staff's review of the PSDAR and SFMP 
concluded that Exelon demonstrated reasonable assurance that funding 
will be available to decommission TMI-1 pursuant to the SAFSTOR method 
and that the activities and associated costs of the TMI-1 SFMP appear 
reasonable. Exelon previously received an exemption from 10 CFR 
50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) that allows use of the 
TMI-1 DTF for spent fuel management at TMI-1.

II. Request/Action

    By letter dated May 20, 2021, the licensee, pursuant to 10 CFR 
50.12, ``Specific exemptions,'' submitted a request for exemption from 
the specific requirements of 10 CFR 50.82(a)(8)(i)(A) and 
50.75(h)(1)(iv). The exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 
CFR 50.75(h)(1)(iv) would permit CEG to make withdrawals from the TMI-1 
DTF for site restoration activities at TMI-1. The exemption from 10 CFR 
50.75(h)(1)(iv) would also permit the licensee 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 funds within the TMI-1 DTF were collected in compliance with 
the 10 CFR 50.75, ``Reporting and recordkeeping for decommissioning 
planning,'' financial requirements while

[[Page 36155]]

TMI-1 was operating. The exemption request included a cash-flow 
analysis reflecting the balance of funds within the DTF throughout the 
decommissioning period, ending the year of license termination in 2081. 
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 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 CEG to 
use funds from the TMI-1 DTF for site restoration activities at TMI-1.
    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 CEG to use funds from the 
TMI-1 DTF for site restoration activities at TMI-1 without prior NRC 
notification.
    The licensee has concluded that 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) would prohibit use of DTFs for activities related to 
site restoration prior to completion of radiological decommissioning. 
The licensee anticipates maintaining TMI-1 in SAFSTOR for an extended 
period prior to completion of radiological decommissioning. This will 
allow radioactive decay to occur, thereby reducing the quantity of 
contamination and radioactivity that must be disposed of during the 
decontamination and dismantlement process as well as reducing the 
associated occupational exposure. Exemptions from 10 CFR 
50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) are requested to allow the 
licensee to withdraw and use funds from the DTF for site restoration 
activities. The exemptions would cover all site restoration activities 
at TMI-1.

III. Discussion

A. The Exemption is 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 CEG to use a portion of the funds from the 
TMI-1 DTF for site restoration 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 previously stated, 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 that granting CEG'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. The Exemption Presents 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 schedules, costs, and funding contained in the 
PSDAR, DCE, SFMP, and exemption request, and the NRC staff's 
independent review of this information, use of a portion of the TMI-1 
DTF for site restoration activities at TMI-1 will not adversely impact 
the licensee's ability to complete radiological decommissioning within 
60 years and terminate the TMI-1 license.
    Furthermore, an exemption from 10 CFR 50.75(h)(1)(iv) to allow the 
licensee to make withdrawals from the TMI-1 DTF for site restoration 
activities at TMI-1 without prior written notification to the NRC will 
not affect the sufficiency of funds in the DTF to accomplish 
radiological decommissioning because such withdrawals remain 
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 TMI-1 DTF 
in the proposed manner. Thus, the probability of postulated accidents 
is not increased. Also, 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. The requested 
exemption would not diminish the effectiveness of other regulations 
that ensure the available funding for decommissioning, including 10 CFR 
50.82(a)(6), which prohibits licensees from performing any 
decommissioning activities that could foreclose unrestricted release of 
the site, result in significant environmental impacts not previously 
reviewed, or result in there no longer being reasonable assurance that 
adequate funds will be available for decommissioning. Therefore, the 
requested exemption will not present an undue risk to the public health 
and safety.

C. The Exemption Is Consistent With the Common Defense and Security

    The requested exemption would allow the licensee to use funds from 
the TMI-1 DTF for site restoration activities at TMI-1. This change to 
enable the use of a portion of the funds from the DTF for 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 TMI-1 DTF for activities other than radiological 
decommissioning activities at TMI-1, such as for site restoration 
activities, until final radiological decommissioning at TMI-1 has been 
completed.
    However, the NRC staff's review of the exemption request, including 
consideration of the information in the PSDAR, DCE, SFMP, and the 
annual DTF certification reports and the staff's independent analysis, 
found that reasonable assurance exists that adequate funds will be 
available in the TMI-1 DTF to complete decommissioning and terminate 
the TMI-1 license, with excess funding

[[Page 36156]]

available to pay for site restoration activities within the scope of 
the exemption request.
    The staff's cash-flow analysis projects that the TMI-1 DTF will 
contain approximately $253.7 million at the end of license termination 
activities in 2081 (using a 2 percent real rate of return as allowed by 
10 CFR 50.75(e)(1)(ii)), considering its use for payment of spent fuel 
management throughout the 60-year decommissioning period (as approved 
by a previous exemption) and its use for the site restoration 
activities within the scope of the current exemption request. This 
analysis aligns with the cash-flow analysis provided by the licensee in 
its exemption request.
    As presented in Table 2 of the exemption request, the beginning DTF 
balance was the December 31, 2020, DTF value ($742,497k) less the 2020 
site radiological decommissioning costs ($14,663k) and the 2018, 2019, 
and 2020 spent fuel management costs ($54,673k) that were not yet 
reimbursed as of December 31, 2020. The staff's cash-flow analysis 
estimates that the licensee projected costs for radiological 
decommissioning to be approximately $977.5 million, costs for spent 
fuel management to be approximately $160.1 million, and cost for site 
restoration activities to be approximately $92.8 million, all in 2020 
dollars. This amounts to total estimated costs of approximately $1.23 
billion for radiological decommissioning, spent fuel management, and 
site restoration activities with license termination occurring in 2081. 
In its analysis, the NRC staff assumed a 2 percent annual real rate of 
return on the DTF balance, less annual costs, resulting in a positive 
DTF balance of approximately $253.7 million at the time of license 
termination.
    Therefore, the NRC staff finds that the licensee 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 (previously approved) and 
site restoration activities (currently requested). Accordingly, 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 
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, the licensee 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 the licensee's exemption request are authorized. As stated 
previously, the NRC staff determined that there are sufficient funds in 
the TMI-1 DTF to complete radiological decommissioning activities, as 
well as to conduct spent fuel management (previously approved) and site 
restoration activities (currently requested), consistent with the TMI-1 
PSDAR, DCE, SFMP and May 20, 2021, 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 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 the 
licensee to make withdrawals from the TMI-1 DTF to cover authorized 
expenses for site restoration activities at TMI-1 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 states that the DTF 
contains funds in excess of the estimated costs of radiological 
decommissioning and that these excess funds are needed for site 
restoration activities. Preventing access to those excess funds in DTFs 
because site restoration activities are not associated with 
radiological decommissioning would create an unnecessary financial 
burden without any corresponding safety benefit. The adequacy of the 
TMI-1 DTF to cover the cost of activities associated with site 
restoration activities, in addition to radiological decommissioning and 
spent fuel management (pursuant to a previously approved exemption), is 
supported by the NRC staff's review as described herein and reflected 
in Attachment 1 of the exemption request. If the licensee cannot use 
the TMI-1 DTF for 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 the licensee to use a 
portion of the TMI-1 DTF for site restoration activities at TMI-1 
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 
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 June 6, 2022 (87 FR 34311)).

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IV. Conclusions

    In consideration of the above, the NRC staff finds that reasonable 
assurance exists that adequate funds will be available in the TMI-1 DTF 
to complete radiological decommissioning of the site and to terminate 
the TMI-1 license, with excess funding available to pay for spent fuel 
management (previously approved) and site restoration activities within 
the scope of the exemption request. There is no decrease in safety 
associated with the DTF being used to fund activities associated with 
site restoration.
    Accordingly, the Commission has determined that, pursuant to 10 CFR 
10 CFR 50.12(a), 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. Also, special circumstances are 
present. Therefore, the Commission hereby grants CEG the exemptions 
from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) to allow CEG to use of a portion of the funds from the 
TMI-1 DTF for site restoration activities, without prior NRC 
notification.
    The exemptions are effective upon issuance.

V. Availability of Documents

    The documents identified in the following table are available to 
interested persons through ADAMS.

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                                                               ADAMS
                        Document                           accession No.
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Three Mile Island Nuclear Station, Unit 1, Request for       ML21140A311
 Exemption from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
 50.75(h)(1)(iv), dated 3/20/2021.......................
Notification of Completion of License Transfer and           ML22032A333
 Request to Continue Processing Pending NRC Actions
 Previously Requested by Exelon Generation Company, LLC,
 dated 2/1/2022.........................................
Three Mile Island, Unit 1, Certification of Permanent        ML17171A151
 Cessation of Power Operations, dated 6/20/2017.........
Certification of Permanent Removal of Fuel from the          ML19269E480
 Reactor Vessel for Three Mile Island Nuclear Station,
 Unit 1, dated 9/26/2019................................
Three Mile Island Nuclear Station, Unit 1--Post-Shutdown     ML19095A041
 Decommissioning Activities Report, dated 4/5/2019......
Site-Specific Decommissioning Cost Estimate for Three        ML19095A010
 Mile Island Nuclear Station, Unit 1, dated 4/5/2019....
Three Mile Island, Unit 1, Submittal of Spent Fuel           ML19095A009
 Management Plan, dated 4/5/2019........................
Three Mile Island Nuclear Station, Unit 1--Exemptions        ML19259A175
 from the Requirements of 10 CFR 50.82(a)(8)(i)(A) and
 10 CFR 50.75(h)(1)(iv) (EPID L-2019-LLE-0009), dated 10/
 16/2019................................................
Site-Specific Decommissioning Cost Estimate for Three        ML19095A010
 Mile Island Nuclear Station, Unit 1, dated 4/5/2019....
Dresden Nuclear Power Station, Unit 1; Peach Bottom          ML22082A227
 Atomic Power Station, Unit 1; and Three Mile Island
 Nuclear Station, Unit 1--Report on Status of
 Decommissioning Funding for Shutdown Reactors, dated 3/
 23/22..................................................
Exelon Generation Co, LLC--Report on Status of               ML21055A776
 Decommissioning Funding for Reactors and Independent
 Spent Fuel Storage Installations, dated 2/24/2021......
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    Dated: June 9, 2022.

    For the Nuclear Regulatory Commission.
Ashley B. Roberts,
Deputy Director, Division of Decommissioning, Uranium Recovery, and 
Waste Programs, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 2022-12863 Filed 6-14-22; 8:45 am]
BILLING CODE 7590-01-P