[Federal Register Volume 89, Number 150 (Monday, August 5, 2024)]
[Notices]
[Pages 63424-63426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-17218]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY


Record of Decision: Issuance of a Loan Guarantee to Holtec 
Palisades, LLC for General Restoration and Maintenance Activities of 
the Palisades Nuclear Plant

AGENCY: Loan Programs Office (LPO), U.S. Department of Energy.

ACTION: Record of decision (ROD).

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Energy (DOE) announces its decision to 
issue a loan guarantee under the Energy Policy Act of 2005 (EPAct 
2005), as amended, specifically the Energy Infrastructure Reinvestment 
Program, to Holtec Palisades, LLC., (Holtec) for general restoration 
and maintenance activities (Project), consistent with the Nuclear 
Regulatory Commission (NRC) Renewed Facility Operating License Number 
DPR-20. The general restoration and maintenance activities would 
support the potential future resumption of power generation activities 
at the Palisades Nuclear Plant (Palisades or PNP), an 800-MW electric 
nuclear generation station in Covert Township, Michigan. Holtec has 
initiated an exemption request, a license transfer request, and license 
amendment requests with NRC, that, if approved, would allow the 
resumption of power generation and operation until 2031, and Holtec 
intends to submit a subsequent license extension request to the NRC to 
allow power generation from 2031 to 2051.

ADDRESSES: Copies of this ROD and the Final EIS may be obtained by 
accessing these documents and additional information about DOE's Loan 
Programs website at https://www.energy.gov/lpo/eis-0562-palisades-nuclear-restart-project-van-buren-county-michigan, or LPO's NEPA 
Program website at https://www.energy.gov/lpo/environmental-compliance-1.

FOR FURTHER INFORMATION CONTACT: Alicia Williamson, NEPA Document 
Manager, Technical and Environmental Division, Loan Programs Office 
(LP-30), U.S. Department of Energy, 1000 Independence Ave. SW, 
Washington, DC 20585, telephone (202) 586-7272; email 
[email protected].

SUPPLEMENTARY INFORMATION: The environmental impacts of general 
restoration and maintenance activities at PNP were analyzed pursuant to 
the National Environmental Policy Act (NEPA) in the DOE/EIS-0562: Final 
Environmental Impact Statement, Proposed Palisades Nuclear Restart 
Project, Van Buren County, Michigan (89 FR 53659, June 27, 2024).
    The Project would entail general restoration and maintenance 
activities at PNP, consistent with the NRC Renewed Facility Operating 
License Number DPR-20. DOE LPO's review and adoption of the NRC NEPA 
documents covers only general restoration and maintenance activities, 
and the potential use of a DOE loan guarantee for PNP refueling, power 
ascension, and power generation would not occur until the completion of 
the NRC NEPA evaluation analyzing the same.
    NEPA Review: Prior to DOE LPO consideration of a loan guarantee for 
the Project, PNP ceased operations, the nuclear fuel was removed, and 
PNP entered decommissioning mode in May 2022. The nuclear fuel was 
placed in the established onsite spent fuel pool, but no structural 
dismantling of PNP has occurred, and the equipment is still in place 
and intact. Palisades was acquired by Holtec in June 2022, who now

[[Page 63425]]

intends to restore PNP and resume power generation activities. Holtec 
has initiated an exemption request, a license transfer request, and 
license amendment requests processes with the NRC, that if approved, 
would allow the reactor to be re-fueled and the resumption of power 
generation and operation until 2031. In addition, Holtec intends to 
submit a Subsequent License Renewal (SLR) application to NRC, that if 
granted, would allow power generation until at least 2051.
    Holtec is pursuing a reauthorization of power operations at PNP 
within the existing NRC regulatory framework, which would allow the 
reactor to be refueled and resume power generation operations through 
March 2031. In 2007, the NRC granted Palisades a 20-year Renewed 
Facility Operating License (No. DPR-20), which extended the period of 
PNP operations until March 2031. The NRC completed a safety analysis 
review and in compliance with NEPA, issued NUREG-1437, Supplement 27, 
Generic Environmental Impact Statement for License Renewal of Nuclear 
Plants, Regarding Palisades Nuclear Plant, Draft Report (SEIS) in 
February 2006 (71 FR 9541), followed by the Final SEIS in October 2006 
(71 FR 61967). The SEIS analyzed the environmental impacts of PNP 
operations from March 2011 through March 2031. The NRC's Record of 
Decision (ROD) (72 FR 3168) and reactor facility operating license 
approval for the 20- year extended operations period was issued in 
January 2007.
    DOE was not a cooperating agency in the development of the NRC 
SEIS. DOE LPO conducted a review of the NRC environmental documents 
related to the licensing of PNP, in accordance with 10 CFR 1021.200(d). 
DOE's proposed action of issuing a loan guarantee to support the 
general restoration and maintenance activities was analyzed in the NRC 
SEIS. Based on its independent evaluation of the NRC's 2006 SEIS, DOE 
has determined that the documentation satisfies DOE NEPA procedures for 
the general restoration and maintenance activities of PNP. Accordingly, 
DOE adopted and recirculated the 2006 NRC Final SEIS as a DOE Final EIS 
(DOE/EIS-0562). Activities associated with PNP refueling and repowering 
are not yet ripe and are the subject of an NRC environmental review, 
with DOE as a cooperating agency. Consequently, the potential use of a 
DOE loan guarantee for PNP refueling, repowering, and power generation 
would not occur until the completion of the NRC NEPA evaluation 
analyzing the potential environmental impacts of refueling and 
repowering, and the associated NRC approvals of Holtec's exemption 
request from 10 CFR 50.82(a)(2), license transfer request, and license 
amendment requests.
    DOE is a NEPA cooperating agency with the NRC on its environmental 
review for the exemption request, a license transfer request, and 
license amendment requests and will cooperate with the NRC on the 
subsequent license renewal process, thereby tiering its environmental 
review process to focus on the issues that are ripe for decision and 
inform future decisions regarding additional Federal financial 
assistance. At the conclusion of each NRC environmental review and 
approval processes, DOE would publish a Record of Decision in support 
of any future Federal financial assistance associated with resumption 
of power generation and operation extending beyond 2031.
    Alternatives Considered: DOE's decision in this ROD is whether or 
not to issue a loan guarantee to Holtec for general restoration and 
maintenance activities in support of repowering PNP. Accordingly, DOE's 
alternatives are: (1) to issue a loan guarantee to Holtec for the 
Proposed Action, or (2) not issue a loan guarantee to Holtec (No-Action 
Alternative).
    Environmental Preferable Alternative: DOE reviewed both 
alternatives to identify the environmentally preferable alternative and 
considers the issuance of a loan guarantee to Holtec for the Proposed 
Action as the environmentally preferable alternative. This alternative 
offers environmental benefits consistent with the statutory objectives 
of Section 1706 of EPAct 2005, as amended, specifically the Energy 
Infrastructure Reinvestment Program, which includes repowering of 
energy infrastructure that has ceased operations and reduces greenhouse 
gas emissions. Compared to fossil-fuel power sources producing the same 
amount of power, carbon dioxide emission rates from the Project would 
be considerably less (see Section 8.2.1 of DOE/EIS-0562). This chosen 
alternative does not limit consideration of alternatives for future 
NEPA reviews related to the Proposed Action.
    Environmental Justice: Updated guidance regarding environmental 
justice (e.g., Executive Order 14096, Revitalizing Our Nations 
Commitment to Environmental Justice) was not in place when NRC issued 
the Final SEIS. For the Palisades review, DOE/EIS-0562 examined the 
geographic distribution of minority and low-income populations within 
50 miles of the site, using data from the 2000 U.S. Census Bureau. The 
analysis was supplemented by discussions with the local authorities 
from the Van Buren County planning department and social service 
agencies. The analysis concluded PNP does not disproportionately result 
in high and adverse human health or environmental impacts on minority 
or low-income populations. As a result, DOE concluded the analysis 
encompasses the scope of the DOE proposed action, as the current NRC 
license for PNP remains in effect through 2031. Nevertheless, future 
environmental analyses evaluating the refueling and repowering 
activities for the Palisades restart project will include an 
environmental justice review using the most up-to-date Federal 
guidelines.
    Floodplain Statement of Findings: The DOE/EIS-0562 considered the 
relevant information for a floodplains and wetlands assessment pursuant 
to 10 CFR part 1022. The Proposed Action is not within a 100-year 
floodplain and because no major construction will take place, there 
would be no redirection or alteration in patterns of surrounding water, 
sediment transport or wetlands onsite. DOE/EIS-0562 Sections 2.2.6, 
4.2, and 4.28 contain the relevant analyses on floodplains and 
wetlands. Furthermore, in 2019, the NRC conducted a Flooding Focused 
Evaluation at the Palisades plant which required the facility to 
reevaluate flood hazards for the site using more current methods and 
new regulatory guidance used by the NRC staff. This process concluded 
that Palisades had demonstrated that effective flood protection exists 
in the event of a beyond-design-basis external flooding event 
(Palisades Nuclear Plant-Staff Assessment of Flooding Focused 
Evaluation (EPID No. L-2018-JLD-0015, January 19, 2019).
    The NRC's current licensing basis is designed to address the risks 
associated with natural hazards such as climate change. Additionally, 
as noted in the Environmental Preferable Alternative section of this 
document, the greenhouse gases emitted from the Project would be less 
than a reasonable alternative.
    Consultation Requirements: DOE was not a cooperating agency with 
NRC during its development of the NRC SEIS; therefore, DOE completed 
its own environmental compliance reviews and consultations. 
Specifically, DOE consulted with the Michigan State Historical 
Preservation Office (SHPO) and the U.S. Fish and Wildlife Service 
(USFWS). Additionally, the DOE reviewed the NRC's Final SEIS and 
supporting documentation and related surveys, studies, and 
consultations.
    By letter dated May 20, 2024, the Michigan SHPO concurred with 
DOE's

[[Page 63426]]

finding of no historic properties effected within the area of potential 
effect associated with this undertaking pursuant to Section 106 of the 
National Historic Preservation Act. DOE also sent a NEPA notice 
regarding the proposed Federal financial assistance for the general 
restoration and maintenance activities at PNP to Federally recognized 
Native American Tribes in the area or with indigenous ties to the area 
to identify Tribal interest and provide an opportunity to make comments 
or express concerns. Additionally, each Tribe was contacted by 
telephone to ensure receipt and respond to any immediate questions or 
concerns. No immediate questions or concerns were relayed by the 
Tribes.
    By letter dated, May 23, 2024, the US FWS confirmed consultation 
was not needed for the project based on the ``no effect'' and ``not 
likely to adversely affect'' (NLAA) determinations of the following 
threatened and endangered species located in the vicinity of PNP: 
Eastern Massasauga rattlesnake (Sistrurus catenatus)-NLAA; Indiana Bat 
(Myotis soldalis)-no effect; Mitchell's Satyr Butterfly (Neonympha 
mitchellii mitchellii)-no effect; Monarch Butterfly (Danaus plexippus)-
no effect; Piping Plover (Charadruis melodus)-NLAA; Pitcher's Thistle 
(Cirsium pitcher)-NLAA; Rufa Red Know (Calidris canutus rufa)-NLAA; 
Tricolored Bat (Perimyotis subflavus)-no effect; and Whooping Crane 
(Grus americana)-no effect. Finally, through its review, DOE determined 
that NRC completed the Coastal Zone Management Act Federal Consistency 
Certification, which is documented in Appendix E of Final DOE/EIS-0562. 
Hence, DOE has fulfilled its consultation responsibilities under NHPA 
and ESA for restoration and maintenance activities related to the 
general restoration and maintenance activities of PNP.
    Final DOE/EIS-0562 Review Period: The Notice of Availability of the 
Final DOE/EIS-0562 and the Adoption Notice were published in the 
Federal Register on March 1, 2024 (89 FR 15199). The review period of 
the EIS was from March 1 to April 1, 2024. DOE received one submittal 
from the public during the review period. The inquiry requested 
information regarding the LPO's NEPA process, a copy of project 
documentation, and a DOE point of contact for the project. DOE provided 
the requested information, and has concluded that no new information or 
circumstances has been submitted that would warrant preparation of a 
supplemental EIS, or show that the Project would affect the quality of 
the human environment not already encompassed by the analysis 
considered in the Final DOE/EIS-0562, or considered in the preparation 
of this ROD.
    Decision: DOE has decided to issue a loan guarantee to Holtec 
Palisades, LLC for the general restoration and maintenance activities 
in support of repowering PNP, an 800-MW electric nuclear generation 
station in Covert Township, Michigan. The Project would entail the 
general restoration and maintenance activities in support of repowering 
PNP in accordance with the existing NRC Renewed Facility Operating 
License Number DPR-20. Approval of the loan guarantee responds to the 
DOE purpose and need pursuant to Section 1706 of EPAct 2005, as 
amended, specifically the Energy Infrastructure Reinvestment Program. 
DOE's Proposed Action evaluated in this ROD supports the general 
restoration and maintenance activities at PNP analyzed within the Final 
DOE/EIS-0562. Activities associated with PNP refueling, repowering and 
operations to 2031, and operation from 2031-2051 (via SLR) are not yet 
ripe for environmental analysis or decisions, are not the subject of 
this ROD, and will be the subject of current and future NRC and DOE 
environmental reviews.
    Mitigation: All DOE loan guarantee agreements require that the 
borrower comply with all applicable environmental laws and related 
requirements. For the Project, this would include conditions and 
requirements related to authorizations and approvals within the NRC's 
2006 ROD, all permits and consultations identified in Appendix E of the 
Final DOE EIS-0562. A borrower's failure to comply with applicable 
laws, authorizations, and approvals may constitute a default, upon 
which DOE would have the right under the loan guarantee agreement to 
exercise usual and customary remedies. To ensure that the borrower 
complies with the requirements of the loan guarantee agreement, the 
Loan Programs Office proactively monitors and administers all operative 
loan guarantee transactions for the lifetime of the loan.

Signing Authority

    This document of the Department of Energy was signed on July 26, 
2024, by Jigar Shah, Director, Loan Programs Office, pursuant to 
delegated authority from the Secretary of Energy. That document with 
the original signature and date is maintained by DOE. For 
administrative purposes only, and in compliance with requirements of 
the Office of the Federal Register, the undersigned DOE Federal 
Register Liaison Officer has been authorized to sign and submit the 
document in electronic format for publication, as an official document 
of the Department of Energy. This administrative process in no way 
alters the legal effect of this document upon publication in the 
Federal Register.

    Signed in Washington, DC, on July 31, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-17218 Filed 8-2-24; 8:45 am]
BILLING CODE 6450-01-P