[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]
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