[Federal Register Volume 90, Number 133 (Tuesday, July 15, 2025)]
[Notices]
[Pages 31706-31709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-13210]
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NUCLEAR REGULATORY COMMISSION
[Docket Nos. 50-313 and 50-368; NRC-2025-0115]
Entergy Operations, Inc.; Arkansas Nuclear One, Units 1 and 2;
Exemptions
AGENCY: Nuclear Regulatory Commission.
ACTION: Notice; issuance.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) has issued
exemptions in response to a request dated November 13, 2024, from
Entergy Operations, Inc. (the licensee) related to Arkansas Nuclear One
(ANO), Units 1 and 2, located in Pope County, Arkansas. The exemptions
allow the licensee to withdraw a small portion of the funds from the
ANO, Units 1 and 2 nuclear decommissioning trust funds (DTFs) to
facilitate the prompt disposal of certain retired major radioactive
components (MRCs).
DATES: The exemptions were issued on July 10, 2025.
ADDRESSES: Please refer to Docket ID NRC-2025-0115 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-2025-0115. Address
questions about Docket IDs in Regulations.gov to Bridget Curran;
telephone: 301-415-1003; 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]. The ADAMS accession number for
each document referenced (if it is available in ADAMS) is provided the
first time that it is mentioned in this document.
NRC's PDR: 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: Hannah McLatchie, Office of Nuclear
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001; telephone: 301-415-8507; email: [email protected].
SUPPLEMENTARY INFORMATION: The text of the exemptions is attached.
Dated: July 10, 2025.
For the Nuclear Regulatory Commission.
Hannah McLatchie,
Project Manager, Plant Licensing Branch IV, Division of Operating
Reactor Licensing, Office of Nuclear Reactor Regulation.
Attachment--Exemptions.
NUCLEAR REGULATORY COMMISSION
Docket Nos. 50-313 and 50-368; Entergy Operations, Inc.; Arkansas
Nuclear One, Units 1 and 2; Exemptions
I. Background
Entergy Operations, Inc. (Entergy, the licensee) is the holder
of Renewed Facility Operating License Nos. DPR-51 and NPF-6 for
Arkansas Nuclear One (ANO), Units 1 and 2, respectively. The
licenses provide, among other things, that the facilities are
subject to all rules, regulations, and orders of the U.S. Nuclear
Regulatory Commission (NRC, the Commission) now or hereafter in
effect. ANO, Units 1 and 2 consists of two pressurized-water
reactors located in Pope County, Arkansas, licensed under title 10
of the Code of Federal Regulations (10 CFR) part 50, ``Domestic
Licensing of Production and Utilization Facilities.''
[[Page 31707]]
II. Request/Action
By letter dated November 13, 2024 (Agencywide Documents Access
and Management System (ADAMS) Accession No. ML24318C273), and
pursuant to 10 CFR 50.12, ``Specific exemptions,'' the licensee
submitted to the NRC a request for exemptions from 10 CFR
50.82(a)(8)(i) and (ii) related to ANO, Units 1 and 2. The licensee
requested these exemptions to allow the licensee to withdraw funds
from the ANO, Units 1 and 2 nuclear decommissioning trust funds
(DTFs), not to exceed $20 million per unit, to facilitate the prompt
disposal of certain retired major radioactive components (MRCs).
Specifically, the licensee is seeking to use funds from the Unit 1
DTF to dispose of two steam generators and one reactor vessel
closure head (RVCH) that were removed from service in 2005, and to
use funds from the Unit 2 DTF to dispose of two steam generators
that were removed from service in 2000.
The Commission's regulation in 10 CFR 50.82(a)(8)(i) restricts
withdrawals from DTFs, in part, to expenses for legitimate
decommissioning activities consistent with the definition of
decommissioning in 10 CFR 50.2, ``Definitions.'' The definition of
decommissioning in 10 CFR 50.2 addresses removing a facility or site
from service and reducing residual radioactivity and does not
include activities associated with the disposal of MRCs during plant
operations. The regulation in 10 CFR 50.82(a)(8)(ii) discusses
timing requirements associated with DTF withdrawals, allowing 3
percent of the generic amount specified in 10 CFR 50.75 to be used
for decommissioning planning and restricting further withdrawals
until licensees have submitted the certifications required under 10
CFR 50.82(a)(1) regarding permanent cessation of operations and the
post-shutdown decommissioning activities report. Therefore,
exemptions from 10 CFR 50.82(a)(8)(i) and (ii) are needed to allow
the licensee to use funds from the ANO, Units 1 and 2 DTFs for the
disposal of MRCs during plant operations. In its submittal, the
licensee stated that due to limited long-term onsite storage
facility capacity at ANO, Units 1 and 2, it is desirable to dispose
of the specified MRCs while plant operations are ongoing, rather
than waiting until the permanent cessation of operations to dispose
of them. Additionally, the licensee identified that the disposal of
these MRCs would be considered a legitimate decommissioning activity
for which DTF funds may be used once a reactor has permanently
ceased operations and the timing requirements of 10 CFR
50.82(a)(8)(ii) have been met; therefore, the exemption request is
essentially seeking an acceleration of otherwise permissible DTF
withdrawals.
III. Discussion
Pursuant to 10 CFR 50.12, the Commission may, upon application
by any interested person or upon its own initiative, grant
exemptions from the requirements of 10 CFR part 50 when (1) the
exemptions are authorized by law, will not present an undue risk to
the public health and safety, and are consistent with the common
defense and security; and (2) any of the special circumstances
listed in 10 CFR 50.12(a)(2) are present. These special
circumstances include, among other things, (1) application of the
regulation in the particular circumstances would not serve the
underlying purpose of the rule or is not necessary to achieve the
underlying purpose of the rule and (2) 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 requested that the NRC grant exemptions from the
requirements of 10 CFR 50.82(a)(8)(i) and (ii) to allow the licensee
to withdraw a small portion of the funds from the ANO, Units 1 and 2
DTFs to facilitate the prompt (i.e., during plant operations)
disposal of certain retired MRCs. Per the exemption request, the
licensee currently stores these retired MRCs onsite at ANO in two
mausoleums, which have reached their capacity. The licensee plans to
replace the existing ANO, Unit 2 RVCH during the ANO, Unit 2
refueling outage in spring 2026, which would then require the
storage of that RVCH onsite after it is removed from service. The
licensee does not consider the prompt disposal of the ANO, Unit 2
RVCH feasible due to the anticipated level of radioactivity.
However, there is insufficient space in the existing mausoleums to
store the ANO, Unit 2 RVCH. Accordingly, the licensee would need to
construct a new storage facility. Alternatively, if the licensee
were to first dispose of the specified retired MRCs currently stored
in the mausoleums (i.e., two ANO, Unit 1 steam generators, one ANO,
Unit 1 RVCH, and two ANO, Unit 2 two steam generators), it could
gain sufficient storage space for the ANO, Unit 2 RVCH, while
avoiding the costs of constructing a new storage facility, as well
as the ongoing maintenance costs and the eventual decommissioning
costs for that new storage facility. According to the licensee, this
exemption request is essentially seeking an acceleration of DTF
withdrawals that would be permissible after the permanent cessation
of operations and meeting the timing requirements of 10 CFR
50.82(a)(8)(ii).
Applicable Regulations and Background
The NRC's reactor licensing regulations in 10 CFR part 50
establish requirements for providing assurance that funding will be
available to radiologically decommission a reactor facility and
terminate its 10 CFR part 50 license. Specifically, these
requirements address the amount of decommissioning funding to be
provided, the methods to be used for assuring sufficient funding,
and provisions restricting the use of the DTF during operations.
On February 22, 2019 (ML19079A293), a petition for rulemaking
(PRM-50-119) was filed with the NRC requesting that the NRC revise
the definition of decommissioning in 10 CFR 50.2 and amend 10 CFR
50.82, ``Termination of license,'' to allow licensees to access the
DTF to pay for the cost of the disposal of MRCs before the permanent
cessation of operations at nuclear power plants. Subsequently, on
February 4, 2022 (87 FR 6434), the Commission denied the petition,
stating that the petition does not raise a significant safety or
security concern and that the subject area is adequately covered by
existing regulations.
On August 5, 2024 (ML24114A263), the NRC issued interim staff
guidance (ISG) to provide clarifying guidance to facilitate
stakeholder understanding of the NRC's position on the use of the
DTF during operations for MRC disposal, including what information
would assist the NRC staff in assessing a licensee's request for
exemption from the regulations related to the activity. Per the
regulation in 10 CFR 50.2, MRC means, ``for a nuclear power reactor
facility, the reactor vessel and internals, steam generators,
pressurizers, large bore reactor coolant system piping, and other
large components that are radioactive to a comparable degree.''
Compliance with NRC decommissioning funding regulations in 10
CFR part 50 provides reasonable assurance that sufficient funding
will be available for the radiological decommissioning of a reactor
facility upon its permanent cessation of operations. The withdrawal
of funds from the DTF during operations, for purposes other than
those allowed by NRC regulations, could undermine the primary
objective of the decommissioning funding regulations. Therefore,
only under extraordinary circumstances would a withdrawal from the
DTF prior to permanent cessation of operations be permissible.
As stated in the August 5, 2024, ISG:
The NRC staff determined that the removal and replacement of
MRCs during the operational phase of a reactor facility to ensure
ongoing safe operation of a reactor is a cost of doing business.
Once the MRC is removed from service during reactor operations, a
licensee has the option to (1) either immediately dispose of the MRC
at a designated off-site facility or (2) store the MRC onsite until
disposal is performed. Neither of these options constitute
legitimate decommissioning activities as contemplated by the NRC's
regulations. The removal and disposal of the MRC or removal of and
storage of the [MRC] until decommissioning when performed during the
operational phase of the reactor facility is a business decision and
should be funded by a licensee as a business activity. The NRC
recognizes that after a reactor facility permanently ceases
operations and is in the decommissioning phase, the off-site
disposal of MRCs is a legitimate decommissioning expense and
therefore, the use of funds from the DTF is permissible, either
directly or as a reimbursement for a prior expense. Accordingly, a
licensee has two options on when to undertake MRC disposal: (1)
during operations when the funds for MRC disposal come from
operational funds or (2) once decommissioning is initiated and the
costs of disposal may be taken from the DTF.
The NRC has recognized an exemption from its regulations as a
mechanism for using funds in the DTF for the disposal of MRCs during
operations at a reactor facility. A licensee may request an
exemption in accordance with 10 CFR 50.12 to permit the withdrawal
of funds from the DTF for the removal and disposal of MRCs prior to
the cessation of operations and initiation of
[[Page 31708]]
decommissioning. The withdrawal of funds from the DTF may only be
used to pay for the offsite disposal of MRCs during operations when
the NRC has determined that the total DTF contains funds in excess
of cost estimates to complete all required radiological
decommissioning. In addition, licensees may use economic projections
for future years in calculating the amount of excess funds in the
DTF. However, significant changes in the economic conditions of a
licensee, combined with withdrawals from the DTF, have the potential
to result in future shortfalls in the DTF. The Commission has stated
that DTF withdrawals for the disposal of MRCs during operations
would be granted only in ``extraordinary circumstances'' (73 FR
62221, 62222, and 62224; October 20, 2008). For these reasons, the
NRC evaluates each exemption request for such a withdrawal based on
the totality of the facts in determining whether to grant or deny
the request. The NRC's regulations at 10 CFR 50.12(a)(2) state, in
part: ``The Commission will not consider granting an exemption
unless special circumstances are present.'' Special circumstances
are present wherever at least one of the criteria in 10 CFR
50.12(a)(2)(i)-(vi) is met. The NRC staff review of the licensee's
exemption request was informed by the ISG.
A. The Exemptions Are Authorized by Law
The requested exemptions from 10 CFR 50.82(a)(8)(i) and (ii)
would allow the licensee to withdraw funds from the ANO, Units 1 and
2 DTFs, not to exceed $20 million per unit, to facilitate the prompt
disposal (i.e., during operations) of certain retired MRCs.
As stated previously, 10 CFR 50.12 allows the NRC to grant
exemptions from the requirements of 10 CFR part 50 when the
exemptions are authorized by law. The NRC staff has determined, as
explained below, that there would continue to be reasonable
assurance of adequate funding for radiological decommissioning of
ANO, Units 1 and 2 because the licensee's use of the DTFs for the
disposal of certain retired MRCs would not negatively impact the
availability of funding for radiological decommissioning.
Accordingly, granting the requested exemptions will not result in a
violation of the Atomic Energy Act of 1954, as amended, or the
Commission's regulations. Therefore, the exemptions are authorized
by law.
B. The Exemptions Will Not Present an Undue Risk to the Public
Health and Safety
The requested exemptions from 10 CFR 50.82(a)(8)(i) and (ii)
would allow the licensee to withdraw funds from the ANO, Units 1 and
2 DTFs, not to exceed $20 million per unit, to facilitate the prompt
disposal (i.e., during operations) of certain retired MRCs.
As explained further in section D of this document, based on the
NRC staff's review of the exemption request, there would continue to
be reasonable assurance of adequate funding for radiological
decommissioning of ANO, Units 1 and 2 because the licensee's use of
the DTFs for the disposal of certain retired MRCs, not to exceed $20
million per unit, would not negatively impact the availability of
funding for radiological decommissioning. Therefore, the exemptions
would not present an undue risk to the public health and safety.
Granting the requested exemptions would also not present an undue
risk to the public health and safety because it would not alter the
operation of any plant equipment or systems. The exemptions do not
introduce any new industrial, radiological, or chemical hazards that
would present a health and safety risk, nor would granting the
exemptions result in modifying or removing design or operation
controls or safeguards that are intended to mitigate onsite hazards.
The exemptions do not diminish the effectiveness of other
regulations that ensure the availability of funding for
decommissioning, including 10 CFR 50.82(a)(6), which prohibits
licensees from performing any decommissioning activities that could
foreclose release of the site for possible unrestricted use, 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
exemptions will not present an undue risk to the public health and
safety.
C. The Exemptions Are Consistent With the Common Defense and
Security
The requested exemptions from 10 CFR 50.82(a)(8)(i) and (ii)
would allow the licensee to withdraw funds from the ANO, Units 1 and
2 DTFs, not to exceed $20 million per unit, to facilitate the prompt
disposal (i.e., during operations) of certain retired MRCs. The
exemptions would not alter the design, function, or operation of any
structure or plant equipment that is necessary to maintain the safe
and secure status of the plant and would not adversely affect the
licensee's ability to physically secure its site or protect special
nuclear material. Furthermore, the exemptions have no relation to
physical security issues. Therefore, the exemptions are consistent
with the common defense and security.
D. Special Circumstances
The requested exemptions from 10 CFR 50.82(a)(8)(i) and (ii)
would allow the licensee to withdraw funds from the ANO, Units 1 and
2 DTFs, not to exceed $20 million per unit, to facilitate the prompt
disposal (i.e., during operations) of certain retired MRCs.
In accordance with 10 CFR 50.12(a)(2)(ii), special circumstances
are present whenever application of the regulation in the particular
circumstances would not serve the underlying purpose of the rule or
is not necessary to achieve the underlying purpose of the rule. The
underlying purpose of 10 CFR 50.82(a)(8)(i) and (ii) is to ensure
that there is reasonable assurance that adequate funds will be
available for the radiological decommissioning of power reactors
within 60 years of their permanent cessation of operations. The
strict application of 10 CFR 50.82(a)(8)(i) and (ii) would prohibit
the use of funds from DTFs for the disposal of MRCs during
operations.
In addition to the exemption request dated November 13, 2024,
the NRC staff reviewed the licensee's decommissioning funding status
report for ANO, Units 1 and 2, dated March 26, 2025 (ML25085A211),
submitted in accordance with 10 CFR 50.75(f)(1). The estimated
minimum DTF values reported therein were determined using the NRC's
methodology in NUREG-1307, Revision 20, ``Report on Waste Burial
Charges, Changes in Decommissioning Waste Disposal Costs at Low-
Level Wate Burial Facilities,'' dated February 2025 (ML25037A226).
The DTF amounts reported therein for each facility represent the
market value of the DTFs as of December 31, 2024, net of any
material current income tax liability on realized gains, interest,
dividends and other income of the DTFs. Per the licensee's submittal
for ANO, Unit 1 (for the year ending December 31, 2024), the minimum
required financial assurance estimated per 10 CFR 50.75(b) and (c)
in 2024 dollars was $510.8 million. In comparison, the total amount
of the ANO, Unit 1 DTF was $878.5 million. Per the licensee's
submittal for ANO, Unit 2 (for the year ending December 31, 2024),
the minimum required financial assurance estimated per 10 CFR
50.75(b) and (c) in 2024 dollars was $531.9 million. In comparison,
the total amount of the ANO, Unit 2 DTF was $726 million.
The NRC staff reviewed the site-specific decommissioning cost
estimate and the cash flow analyses provided in the November 13,
2024, exemption request as well as the March 26, 2025,
decommissioning funding status report. Based on its independent
analysis, the staff determined that using a small portion of the
ANO, Units 1 and 2 DTFs, not to exceed $20 million per unit, to
facilitate the prompt disposal of certain retired MRCs will not
adversely impact the licensee's ability to terminate the ANO, Units
1 or 2 licenses within the required decommissioning timeframe.
Therefore, application of the regulations in 10 CFR 50.82(a)(8)(i)
and (ii) to prevent this withdrawal is not necessary to achieve
their underlying purpose.
In accordance with 10 CFR 50.12(a)(2)(iii), special
circumstances are also 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 NRC staff determined that the strict application of 10
CFR 50.82(a)(8)(i) and (ii) to prohibit the use of funds from the
ANO, Units 1 and 2 DTFs for the disposal of certain retired MRCs
during operations would result in undue hardship to the licensee in
light of the imminent need to store the ANO, Unit 2 RVCH onsite.
Specifically, if the licensee is unable to remove the retired MRCs
from the two existing mausoleums and dispose of them promptly, then
the licensee would need to construct an additional storage facility
to house the ANO, Unit 2 RVCH, which will be removed from service in
2026. Compliance with 10 CFR 50.82(a)(8)(i) and (ii) would result in
an undue hardship in that it would cause the licensee to use
operating revenues to build and maintain an additional storage
facility, monitor any releases, and eventually decommission the
facility, rather than allowing the licensee to use
[[Page 31709]]
decommissioning funds that were collected, in part, to cover the
costs of disposing of these MRCs. The licensee estimated the
construction costs alone for the facility to be $2.2 million, plus
additional maintenance costs over the lifetime of the facility and
eventual decommissioning costs. Additionally, requiring the licensee
to use operating revenues to fund the prompt disposal of the retired
MRCs would result in a similar undue hardship, in that the ANO,
Units 1 and 2 DTFs already include funds that were collected to
cover the disposal costs for the very same MRCs at issue.
The underlying purpose of 10 CFR 50.82(a)(8)(i) and (ii) would
continue to be achieved despite allowing the licensee to use a small
portion of the DTFs to dispose of certain retired MRCs during
operations. Furthermore, requiring compliance with the regulations
would otherwise result in undue hardship or other costs that are
significantly in excess of those contemplated when the regulations
were adopted. Therefore, the special circumstances of 10 CFR
50.12(a)(2)(ii) and 10 CFR 50.12(a)(2)(iii) are present.
E. Environmental Considerations
The NRC considered whether there would be any significant
environmental impacts associated with the proposed exemptions. For
the proposed action, the NRC prepared an environmental assessment
(EA) in accordance with 10 CFR 51.30. The NRC determined that a
finding of no significant impact (FONSI) is appropriate, and an
environmental impact statement is not warranted. The EA and the
FONSI were published in the Federal Register on July 10, 2025 (90 FR
30708).
IV. Conclusions
The Commission has determined that, pursuant to 10 CFR part
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 Entergy exemptions
from 10 CFR 50.82(a)(8)(i) and (ii) related to ANO, Units 1 and 2 to
allow the licensee to withdraw funds from the ANO, Units 1 and 2
DTFs, not to exceed $20 million per unit, to facilitate the prompt
disposal of the specified retired MRCs. The exemptions are effective
upon issuance.
Dated: July 10, 2025.
For the Nuclear Regulatory Commission.
Jamie Pelton,
Acting Director, Division of Operating Reactor Licensing, Office of
Nuclear Reactor Regulation.
[FR Doc. 2025-13210 Filed 7-14-25; 8:45 am]
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