[Federal Register Volume 89, Number 172 (Thursday, September 5, 2024)]
[Notices]
[Pages 72433-72438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19914]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-611 and 50-612; NRC-2023-0138]


Kairos Power, LLC; Hermes 2; Environmental Assessment, Finding of 
No Significant Impact, and Exemptions

AGENCY: Nuclear Regulatory Commission.

ACTION: Notice; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
environmental assessment (EA) and finding of no significant impact 
(FONSI) regarding the NRC's consideration of issuance of a construction 
permit (CP) to Kairos Power, LLC (Kairos, the applicant) for the 
proposed Hermes 2 test reactor facility located in Oak Ridge, 
Tennessee. If approved, the CP would

[[Page 72434]]

authorize the construction of two fluoride-salt cooled, high-
temperature reactors that use solid tri-structural isotropic fuel in 
pebble form, intermediate liquid-sodium loops, and a common power 
conversion unit. In addition, the NRC is issuing exemptions from 
certain NRC requirements which state that the NRC staff shall prepare 
and issue an environmental impact statement (EIS) to support the 
issuance of a CP for a testing facility. The NRC is granting the 
exemptions and issuing the EA and FONSI concurrently to satisfy its 
obligations under the National Environmental Policy Act of 1969 (NEPA) 
and requirements under NRC regulations, related to the proposed action.

DATES: The EA and FONSI referenced in this document were available on 
August 30, 2024. The exemption was issued on August 30, 2024.

ADDRESSES: Please refer to Docket ID NRC-2023-0138 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-2023-0138. 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, at 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: The PDR, where you may examine and order copies 
of publicly available documents, is open by appointment. 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 
a.m. and 4 p.m. eastern time (ET), Monday through Friday, except 
Federal holidays.

FOR FURTHER INFORMATION CONTACT: Cayetano Santos Jr., Office of Nuclear 
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001; telephone: 301-415-7270; email: [email protected].

SUPPLEMENTARY INFORMATION:

I. Introduction

    On July 14, 2023, Kairos submitted, pursuant to part 50 of title 10 
of the Code of Federal Regulations (10 CFR), ``Domestic Licensing of 
Production and Utilization Facilities,'' a CP application for the 
Hermes 2 test reactor facility (a ``testing facility'' as defined in 10 
CFR 50.2, ``Definitions''). The application included an environmental 
report (ER), as required by 10 CFR 50.30(f). On September 11, 2023, the 
NRC staff determined that the application was acceptable for docketing 
under Docket Nos. 50-611 and 50-612 (88 FR 63632). If approved, the 
Hermes 2 test reactor facility would be located in Oak Ridge, 
Tennessee, and would contain two fluoride-salt cooled, high-temperature 
reactors that use solid tri-structural isotropic fuel in pebble form, 
intermediate liquid-sodium loops, and a common power conversion unit. 
The facility would be collocated on the same site as the Hermes 1 test 
reactor, which was approved for construction on December 14, 2023. The 
staff issued the EIS for the Kairos Hermes 1 CP application in August 
2023, which determined that the action would result in SMALL (i.e., not 
detectable or so minor that they will neither destabilize nor 
noticeably alter any important attribute of an environmental resource) 
impacts for all resource areas.
    Section 104 of the Atomic Energy Act of 1954, as amended, and its 
implementing regulations authorize the NRC to issue CPs for testing 
facilities. To issue a CP, the NRC is required to consider the 
environmental impacts of the proposed action under NEPA. The NRC's 
environmental protection regulations that implement NEPA in 10 CFR part 
51 identify actions for which the NRC prepares an EIS. CPs for test 
reactors are an action identified as requiring an EIS.
    However, based on a review of the ER submitted as part of the CP 
application for Hermes 2 and the results of the EIS issued for Hermes 
1, the NRC staff concluded that it would be prudent to first prepare a 
draft EA to determine whether preparation of an EIS would be necessary 
or whether a FONSI could be issued for the Hermes 2 CP based on factors 
unique to the Hermes 2 CP application. These factors include: (1) the 
similar design of Hermes 2 and Hermes 1, (2) the proposed siting of 
Hermes 2 within a few hundred feet of Hermes 1, (3) the industrial 
nature and heavy prior disturbance of the site, (4) the recent thorough 
NEPA review performed by the staff as published in its EIS for Hermes 
1, and (5) the staff's final EIS for Hermes 1 covering the same site as 
Hermes 2 and documenting all impacts as SMALL.
    The NRC staff prepared a draft EA for the Hermes 2 CP application 
in accordance with the requirements in 10 CFR 51.30, ``Environmental 
assessment.'' In the draft EA, the NRC staff analyzed the environmental 
impacts of the CP application and alternatives, as appropriate, and 
concluded ``that the potential impacts from Hermes 2 would be SMALL for 
each potentially affected environmental resource.'' Based on these 
results, the NRC staff prepared a draft FONSI for public review and 
comment in accordance with 10 CFR 51.33, ``Draft finding of no 
significant impact; distribution.'' The draft FONSI stated that ``the 
NRC staff has preliminarily determined that the proposed action would 
not have a significant effect on the quality of the human 
environment.'' The NRC staff issued the draft EA and draft FONSI in the 
Federal Register and offered a 30-day public comment period (89 FR 
32462).
    After appropriate consideration of the public comments, the NRC 
staff finalized the EA for the Hermes 2 CP application, which is 
summarized in Section II of this document. Based on this final EA and 
in accordance with 10 CFR 51.31(a), ``Determinations based on 
environmental assessment,'' the NRC has determined that preparation of 
an EIS is not necessary for the Hermes 2 CP application and has 
prepared a FONSI in accordance with 10 CFR 51.32, ``Finding of no 
significant impact.'' The FONSI is detailed in Section III of this 
document.
    As described in Section V of this document, the NRC staff 
determined that exemptions from the regulations in 10 CFR 51.20(b)(1), 
10 CFR 51.25, and 10 CFR 51.75(a) are necessary to issue a final EA and 
FONSI instead of an EIS to meet the staff's obligations under NEPA and 
the NRC's regulations for the environmental review of the Hermes 2 CP 
application.\1\ Pursuant to 10 CFR 51.6, the NRC staff concluded that 
the exemptions are authorized by law and otherwise in the public 
interest.

[[Page 72435]]

Accordingly, the NRC staff is granting exemptions from the requirements 
in 10 CFR 51.20(b)(1), 10 CFR 51.25, and 10 CFR 51.75(a). The 
exemptions are discussed in Section V of this document.
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    \1\ Memorandum from Daniel H. Dorman, Executive Director for 
Operations, to the Commissioners, dated September 13, 2023, 
described the NRC staff's intent to consider granting exemptions to 
implement this environmental review approach for the Kairos Hermes 2 
construction permit application.
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II. Summary of Environmental Assessment

Description of the Proposed Action and Need

    The proposed action is for the NRC to issue CPs to Kairos 
authorizing construction of the two proposed Hermes 2 reactors. The NRC 
issuance of CPs would constitute authorization for Kairos to proceed 
with the construction of the two Hermes 2 fluoride salt-cooled test 
reactors at a site within the East Tennessee Technology Park in Oak 
Ridge, Tennessee. The proposed action also includes the granting of 
exemptions from the requirements in 10 CFR 51.20(b)(1), 10 CFR 51.25, 
and 10 CFR 51.75(a).
    The issuance of a CP is a separate licensing action from the 
issuance of an operating license (OL). If the NRC issues CPs for Hermes 
2 and Kairos were to seek NRC approval to operate Hermes 2, then Kairos 
would have to submit a separate application for OLs pursuant to the 
NRC's regulations, and Kairos would have to obtain NRC approval before 
it could operate the Hermes 2 test reactors. The NRC staff would review 
any application for an OL for Hermes 2 for new and significant 
information related to the environmental impacts of operating and 
decommissioning Hermes 2 that might alter the staff's conclusions made 
in the EA for the CP application.
    The need for Hermes 2 is to demonstrate key elements of the Kairos 
Power Fluoride Salt-Cooled, High Temperature Reactor technology for 
possible future commercial deployment. The technology is an advanced 
nuclear reactor technology that leverages tri-structural isotropic 
particle fuel in pebble form combined with a low-pressure fluoride salt 
coolant. Hermes 2 would support Kairos's reactor development program, 
which relies on learning and risk reduction by narrowing the design 
space through progressive test cycles. Construction and operation of 
Hermes 2 also would provide validation and qualification data to 
support potential future commercial reactors using the Kairos Power 
Fluoride Salt-Cooled, High Temperature Reactor technology.

Environmental Impacts of the Proposed Action

    In the final EA, the NRC staff assessed the potential direct and 
indirect environmental impacts from the proposed action associated with 
the following relevant resource areas: land use and visual resources; 
air quality and noise; hydrogeology and water resources; ecological 
resources; historic and cultural resources; socioeconomics and 
environmental justice; human health; nonradiological waste management; 
uranium fuel cycle and radiological waste management; transportation of 
radioactive material; and postulated accidents. The NRC staff also 
considered the cumulative impacts from past, present, and reasonably 
foreseeable future actions when combined with the proposed action.
    In the final EA, the NRC staff determined that the environmental 
impacts of the proposed action would be SMALL for each potentially 
affected environmental resource, meaning that the environmental effects 
are not detectable or are so minor that they will neither destabilize 
nor noticeably alter any important attribute of the resource. In 
addition, the NRC staff determined that the projected effects of 
climate change would not alter any of the impact determinations 
described in the EA. Furthermore, the NRC staff found that there would 
be no significant cumulative impact to any resource area from the 
proposed action when added to other past, present, and reasonably 
foreseeable future actions. The NRC staff also determined that there 
would be no additional environmental impacts resulting from the 
issuance of the exemptions.

Environmental Impacts of the Alternatives to the Proposed Action

    The NRC staff identified a range of reasonable alternatives to the 
proposed action and the environmental impacts of the alternatives as 
appropriate. The NRC staff identified and analyzed the reasonable 
alternatives to authorizing the exemptions as well. The NRC staff 
determined that there are no alternatives that meet the purpose and 
need for the proposed action and exemptions that are environmentally 
preferrable to the proposed action and exemptions.

III. Finding of No Significant Impact

    The proposed action before the NRC is whether to issue CPs (one for 
each unit) to Kairos to authorize construction of the two proposed 
reactors making up the Hermes 2 project. The proposed action also 
includes whether to grant exemptions from the requirements in 10 CFR 
51.20(b)(1), 10 CFR 51.25, and 10 CFR 51.75(a). The NRC has conducted 
an environmental review of the Kairos application for the CPs for the 
Hermes 2 project as well as the proposed exemptions and prepared an EA. 
This FONSI incorporates by reference the EA summarized in Section II of 
this notice and referenced in Section IV of this notice. Based on the 
NRC staff's determinations in the EA that the environmental impacts 
would be SMALL for each potentially affected resource area and there 
would be no additional environmental impacts resulting from the 
issuance of the exemptions, the NRC staff has determined, after 
consideration of public comments, that the proposed action would not 
have a significant effect on the quality of the human environment. 
Accordingly, the NRC staff has made a determination that preparation of 
an EIS is not required for the proposed action and that a FONSI is 
warranted. This finding and the related environmental documents 
referenced throughout the EA are available for public inspection as 
discussed in the EA and Section IV of this notice.

IV. Availability of Documents

    The EA, FONSI, and other related documents are accessible online in 
the ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. The documents identified in the following table are 
available to interested persons through ADAMS, as indicated.

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             Document description                 ADAMS accession No.
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Environmental Assessment and Finding of No     ML24240A034.
 Significant Impact for the Construction
 Permits and Environmental Review Exemptions
 for the Kairos Hermes 2 Test Reactors, Final
 Report, dated August 2024.
Environmental Assessment and Finding of No     ML24103A002.
 Significant Impact for the Construction
 Permits for the Kairos Hermes 2 Test
 Reactors, Draft Report for Comment, dated
 April 2024.
Kairos Power, LLC--Issuance of Construction    ML23338A260 (Package).
 Permit for Hermes 1 Test Reactor, dated
 December 14, 2023.
Kairos Power, LLC, Submittal of the            ML23195A121 (Package).
 Construction Permit Application for the
 Hermes 2 Kairos Power Fluoride Salt-Cooled,
 High Temperature Non-Power Reactor, dated
 July 14, 2023.

[[Page 72436]]

 
Kairos Power, LLC, Hermes 2 Non-Power Reactor  ML23195A125.
 Environmental Report, dated July 14, 2023.
SECY-23-0080, ``Environmental Review Approach  ML23214A165.
 for the Kairos Power, LLC, Hermes 2
 Construction Permit Application,'' dated
 September 13, 2023.
NUREG-2263, ``Environmental Impact Statement   ML23214A269.
 for the Construction Permit for the Kairos
 Hermes [1] Test Reactor,'' Final Report,
 dated August 2023.
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V. Exemptions

Background

    In 2021 Kairos submitted a CP application and ER for the Hermes 1 
test reactor facility in Oak Ridge, Tennessee. The NRC's regulations in 
10 CFR part 51 implement NEPA, and in accordance with 10 CFR 
51.20(b)(1), the NRC staff is required to develop an EIS for the 
issuance of the CP for a testing facility. As a result, the NRC staff 
issued an EIS for the Kairos Hermes 1 CP application in August 2023, 
which determined that the action would result in SMALL (i.e., not 
detectable or so minor that they will neither destabilize nor 
noticeably alter any important attribute of an environmental resource) 
impacts for all resource areas. On December 14, 2023, the NRC issued a 
CP to Kairos for the Hermes 1 facility.
    On July 14, 2023, Kairos filed another CP application and ER for 
the Hermes 2 test reactor facility also located in Oak Ridge, 
Tennessee. On September 11, 2023, the NRC staff determined that the 
Hermes 2 CP application was acceptable for docketing. If approved, the 
Hermes 2 test reactor facility would also be located in Oak Ridge, 
Tennessee within a few hundred feet of the site for the previously 
approved CP for the Hermes 1 test reactor facility. Hermes 1 is a 
single unit test reactor facility while Hermes 2 is a two-unit 
facility. Both Hermes 1 and Hermes 2 would employ Kairos's fluoride-
salt cooled, high-temperature reactor technology that uses solid tri-
structural isotropic fuel in pebble form. Hermes 2 would also include 
intermediate salt loops and a common power generation system. The 
Hermes 2 facility includes most of the same structures, systems, and 
components as the Hermes 1 facility and large portions of the Hermes 2 
preliminary safety analysis report are identical to that for Hermes 1.

Action

    The regulations in 10 CFR part 51 implement NEPA in a manner that 
is consistent with NRC's domestic licensing and related regulatory 
authority under the Atomic Energy Act of 1954, as amended, and the 
Energy Reorganization Act of 1974, as amended. The NRC's environmental 
protection regulations that implement NEPA in 10 CFR part 51 identify 
actions for which the NRC prepares an EIS. CPs for test reactors are an 
action identified as requiring an EIS.
    However, based on a review of the ER submitted as part of the CP 
application for Hermes 2 and the results of the EIS issued for Hermes 
1, the NRC staff concluded that it would be prudent to first prepare an 
EA to determine whether preparation of an EIS would be necessary or 
whether a FONSI could be issued for the Hermes 2 CP based on factors 
unique to the Hermes 2 CP application. On April 26, 2024 (89 FR 32462), 
the NRC staff issued a draft EA and draft FONSI and offered a 30-day 
public comment period. The NRC staff finalized the EA for the Hermes 2 
CP application, which is summarized in Section II of this document. 
Based on this final EA and consideration of public comments, the NRC 
has determined that preparation of an EIS is not necessary for the 
Hermes 2 CP application and has prepared a FONSI, which is detailed in 
Section III of this document.
    The NRC staff determined that exemptions from the regulations in 10 
CFR 51.20(b)(1), 10 CFR 51.25, and 10 CFR 51.75(a) are necessary to 
issue a final EA and FONSI instead of an EIS to meet the staff's 
obligations under NEPA and the NRC's regulations for the environmental 
review of the Hermes 2 CP application. The regulation in 10 CFR 
51.20(b)(1) requires an EIS or a supplement to an EIS for the issuance 
of a permit to construct a testing facility. Based on the final EA, 
which is summarized in Section II of this document, and in accordance 
with 10 CFR 51.31(a), the NRC staff has determined that preparation of 
an EIS is not necessary for the Hermes 2 CP application and has 
prepared a FONSI, which is detailed in Section III of this document. 
Since the NRC staff is issuing a FONSI instead of an EIS for the Hermes 
2 CP environmental review, an exemption from 10 CFR 51.20(b)(1) is 
needed.
    The regulation in 10 CFR 51.25 requires that the appropriate NRC 
staff director determine on the basis of the criteria and 
classifications of types of actions in 10 CFR 51.20, ``Criteria for and 
identification of licensing and regulatory actions requiring 
environmental impact statements,'' whether an EIS or EA should be 
prepared. The NRC staff did not use the criteria in 10 CFR 51.20 to 
determine whether an EIS or EA should be prepared for the Hermes 2 CP 
environmental review. Instead, based on factors unique to the Hermes 2 
CP application, the NRC staff prepared an EA to determine whether 
preparation of an EIS would be necessary or whether a FONSI could be 
issued. Therefore, an exemption from 10 CFR 51.25 is needed.
    The regulation in 10 CFR 51.75(a) requires preparation of a draft 
EIS related to the issuance of a CP for a production or utilization 
facility. The NRC staff prepared an EA for the Hermes 2 CP 
environmental review to determine whether preparation of an EIS would 
be necessary or whether a FONSI could be issued. Since no draft EIS 
related to the Hermes 2 CP environmental review was prepared, an 
exemption from 10 CFR 51.75(a) is needed.

Discussion

    Pursuant to 10 CFR 51.6, ``Specific exemptions,'' the Commission 
may, upon application of any interested person, or upon its own 
initiative, grant exemptions from the requirements of 10 CFR part 51 
that it determines are (1) authorized by law and (2) otherwise in the 
public interest.

Exemptions Are Authorized by Law

    As discussed as follows, the exemptions allowing the NRC staff to 
issue a final EA and FONSI instead of an EIS are authorized by law 
because the NRC will satisfy its NEPA obligations by issuing a final EA 
and FONSI for the Hermes 2 testing facility, and the issuance of this 
final EA and FONSI will not violate any other applicable statute or NRC 
regulation. NEPA provides flexibility for how the NRC can satisfy its 
statutory obligations. Section 102(2)(C) of NEPA, as amended by the 
Fiscal Responsibility Act of 2023, states that agencies must provide a 
``detailed statement'' for ``major Federal actions significantly 
affecting the quality of the human environment.'' Section 106(b)(1) of 
NEPA states that any agency shall issue an EIS for an action ``that has 
a reasonably foreseeable significant effect on the quality of the

[[Page 72437]]

human environment.'' Section 106(b)(2) states that an agency shall 
prepare an EA for an action ``that does not have a reasonably 
foreseeable significant effect on the quality of the human environment, 
or if the significance of such effect is unknown,'' unless the agency 
finds that the proposed action is excluded pursuant to, among other 
things, another provision of law. Further, Section 106(b)(2) provides 
that the EA shall be a concise public document prepared by a Federal 
agency to set forth the basis of such agency's finding of no 
significant impact or determination that an environmental impact 
statement is necessary.
    The draft EA for Hermes 2 evaluated the potential impacts to 11 
environmental resources relevant to the construction, operation, and 
decommissioning of the Hermes 2 test reactor facility. In the draft EA, 
the NRC staff incorporated by reference significant portions of the 
final EIS for Hermes 1 based on the following considerations: (1) the 
staff's final EIS for Hermes 1, which covered the same site as Hermes 
2; (2) the recent publication of the Hermes 1 final EIS in 2023; and 
(3) the significant design similarities between Hermes 2 and Hermes 1. 
The draft EA concluded that the environmental impacts would be SMALL 
for each of the 11 potentially affected resource areas, and that the 
proposed action would not have a significant effect on the quality of 
the human environment.
    The draft EA and draft FONSI were issued for public comment over a 
30-day period beginning on April 26, 2024 (89 FR 32462). The NRC 
received comments from multiple Federal, state, and local agencies, 
other stakeholders, and the public. The NRC staff prepared responses to 
each comment and presented the comments and responses in an appendix to 
the EA. After consideration of these public comments, the NRC staff 
finalized the EA for the Hermes 2 CP application. Based on this final 
EA and in accordance with 10 CFR 51.31(a), the NRC has determined that 
preparation of an EIS is not necessary for the Hermes 2 CP application 
and has prepared a FONSI in accordance with 10 CFR 51.32. The final EA 
and FONSI are detailed in Section II and III of this document, 
respectively. As such, the NRC staff concludes that its statutory 
obligations under NEPA will be satisfied by issuance of the final EA 
and FONSI.
    As previously noted, 10 CFR 51.6 allows the NRC to grant exemptions 
from the requirements of 10 CFR part 51. The NRC has determined that 
granting the proposed exemptions will not result in a violation of the 
Atomic Energy Act of 1954, as amended, NEPA, other applicable statutes, 
or the NRC's regulations. Accordingly, the NRC finds that the 
exemptions are authorized by law.

Exemptions Are Otherwise in the Public Interest

    The NRC staff has determined that the exemptions are in the public 
interest because they allow the Commission to regulate with efficiency 
and openness in accordance with the NRC's ``Principles of Good 
Regulation'' \2\ while still allowing adequate opportunity for public 
involvement. Specifically, the exemptions are in the public interest 
because they enhance public confidence in the NRC by demonstrating the 
NRC's commitment to efficiency and openness as principles of good 
regulation. The NRC's mission is to regulate the nation's civilian use 
of radioactive materials to provide reasonable assurance of adequate 
protection of public health and safety and to promote common defense 
and security and to protect the environment. The NRC adheres to its 
Principles of Good Regulation in carrying out this mission. These 
principles focus on ensuring safety and security while appropriately 
balancing the interests of NRC's stakeholders, including the public 
interest.
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    \2\ https://www.nrc.gov/about-nrc/values.html.
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    The NRC describes the ``Efficiency'' principle, in part, as 
follows: ``Regulatory activities should be consistent with the degree 
of risk reduction they achieve. Where several effective alternatives 
are available, the option, which minimizes the use of resources should 
be adopted. Regulatory decisions should be made without undue delay.'' 
Consistent with the NRC's ``Efficiency'' principle, granting these 
exemptions, allows the NRC staff to ``minimize the use of resources'' 
and make its regulatory decision as efficiently as possible while still 
fulfilling its NEPA obligations through the issuance of an EA and 
FONSI. The NRC staff estimates that the duration of the Hermes 2 CP 
environmental review was reduced by 3 to 6 months compared to doing an 
EIS. The time and resource savings on the environmental review for the 
Hermes 2 CP allows the NRC staff to allocate those resources to 
environmental reviews of other proposed projects, thereby helping the 
agency to better fulfill its mission of protecting people and the 
environment in a timely manner.
    The exemptions are also in the public interest because preparation 
of a draft EA and draft FONSI for the Hermes 2 CP in accordance with 10 
CFR 51.33 and consideration of public comments provided adequate 
opportunity for public involvement consistent with the NRC's 
``Openness'' principle of good regulation. This principle is described, 
in part, as follows: ``Nuclear regulation is the public's business, and 
it must be transacted publicly and candidly. The public must be 
informed about and have the opportunity to participate in the 
regulatory processes as required by law.'' The staff determined that a 
30-day public comment period on the draft EA offered stakeholders an 
adequate opportunity to comment on a project on a site and reactor 
technology with which they have recently become familiarized through 
the NRC's environmental review for Hermes 1.
    In accordance with the NRC regulations in 10 CFR part 51 that 
implement NEPA, the NRC staff considered the environmental impacts of 
the construction of the Hermes 1 test reactor facility by preparing an 
EIS. The NRC staff conducted a thorough environmental review which 
included scoping, consultation with Federal agencies and Tribal 
officials, an environmental audit, public meetings, and a public 
comment period. These public involvement opportunities were used by the 
staff to support development of an EIS. In August 2023 the NRC staff 
issued the EIS for the Hermes 1 CP application which determined that 
the action would result in SMALL impacts for all resource areas.
    Since the Hermes 1 and Hermes 2 test reactor facilities are of 
similar design and will be located at the same site, the NRC staff's 
decision to prepare an EA and FONSI for Hermes 2 was informed by the 
EIS for Hermes 1, including public and other stakeholder comments used 
to scope the EIS and to finalize the draft EIS. Substantial portions of 
the Hermes 1 EIS, reflecting scoping comments and comments received on 
the draft EIS, were incorporated by reference into the EA for Hermes 2. 
Since the final EIS for Hermes 1 was issued recently (in August 2023) 
and significant portions of it were incorporated by reference into the 
EA for Hermes 2, public involvement in the Hermes 1 EIS is pertinent to 
and reflected in the Hermes 2 EA. The NRC staff also published the 
draft EA and draft FONSI for the Hermes 2 CP application in the Federal 
Register in accordance with 10 CFR 51.33 and offered a 30-day period 
for the public to comment (89 FR 32462, April 26, 2024). By doing this, 
the NRC staff preserved ample opportunity for the public to remain 
informed and raise any

[[Page 72438]]

additional environmental concerns specific to Hermes 2.
    Accordingly, for the previously stated reasons, the NRC finds that 
the exemptions are otherwise in the public interest.

Environmental Considerations for Exemptions

    In accordance with 10 CFR 51.31(a), the Commission has determined 
that the granting of these exemptions will not have a significant 
effect on the quality of the human environment, as discussed in the NRC 
staff's final EA and FONSI. A summary of the EA and the detailed FONSI 
are located in Sections II and III of this document, respectively.

Exemption Conclusion

    Accordingly, the NRC has determined that pursuant to 10 CFR 51.6, 
that the exemptions are authorized by law and otherwise in the public 
interest. Therefore, the NRC hereby grants one-time exemptions from the 
requirements in 10 CFR 51.20(b)(1), 10 CFR 51.25, and 10 CFR 51.75(a) 
to allow the NRC to issue a final EA and FONSI instead of an EIS to 
meet its obligations under NEPA and the NRC's regulations for the 
environmental review of the Hermes 2 CP application.
    The exemptions are effective on August 30, 2024.

    Dated: August 30, 2024.

    For the Nuclear Regulatory Commission.
Jeremy Bowen,
Director, Division of Advanced Reactors and Non-power Production and 
Utilization Facilities, Office of Nuclear Reactor Regulation.
[FR Doc. 2024-19914 Filed 9-4-24; 8:45 am]
BILLING CODE 7590-01-P