[Federal Register Volume 90, Number 143 (Tuesday, July 29, 2025)]
[Notices]
[Pages 35737-35740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-14334]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-255; NRC-2025-0346]
Palisades Energy, LLC; Palisades Nuclear Plant; Exemption
AGENCY: Nuclear Regulatory Commission.
ACTION: Notice; issuance.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an
exemption in response to a September 28, 2023, request from Holtec
Decommissioning International, LLC (HDI), on behalf of Holtec
Palisades, LLC. The exemption supports the reauthorization of power
operations at the Palisades Nuclear Plant (PNP), and allows for a one-
time rescission of the docketed decommissioning certifications to
remove the restriction that prohibits operation of the PNP reactor and
emplacement and retention of fuel into the PNP reactor vessel. The NRC
is also rescinding six exemptions that were previously granted based on
PNP's decommissioning status.
DATES: The exemption was issued on July 24, 2025.
ADDRESSES: Please refer to Docket ID NRC-2025-0346 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-2025-0346. Address
questions about Docket IDs in Regulations.gov to Bridget Curran;
telephone: 301-415-1003; email: [email protected]. For technical
questions, contact the individuals 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
[[Page 35738]]
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 exemption
request to remove the prohibition against operations and emplacement of
fuel in the reactor vessel is available in ADAMS under Accession No.
ML23271A140.
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: Justin C. Poole, Office of Nuclear
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001; telephone: 301-415-2048; email: [email protected].
SUPPLEMENTARY INFORMATION: The text of the exemption is attached.
Dated: July 25, 2025.
For the Nuclear Regulatory Commission.
Justin Poole,
Project Manager, Plant Licensing Branch III, Division of Operating
Reactor Licensing, Office of Nuclear Reactor Regulation.
Attachment--Exemption
NUCLEAR REGULATORY COMMISSION
[Docket No. 50-255; NRC-2025-0346]
Palisades Energy, LLC; Palisades Nuclear Plant; Exemption
I. Background
PNP consists of a single pressurized-water reactor located in
Covert Township, Michigan, along the shoreline of Lake Michigan.
Originally licensed for operation on March 24, 1971, the NRC issued
a renewed operating license for PNP on January 17, 2007, with the
renewed operating license term expiring on March 24, 2031. By letter
dated January 4, 2017 (ML17004A062), pursuant to title 10 of the
Code of Federal Regulations (10 CFR), Section 50.82(a)(1)(i),
``Termination of License,'' Entergy Nuclear Operations, Inc.
(Entergy), the previous licensee for PNP, certified to the NRC that
it decided to permanently cease power operations at the PNP by
October 1, 2018. By letters dated September 28, 2017 (ML17271A233),
and October 19, 2017 (ML17292A032), Entergy certified to the NRC
that it planned to permanently cease power operations at PNP no
later than May 31, 2022. By application dated December 23, 2020
(ML20358A075), as supplemented, Entergy on behalf of itself, Entergy
Nuclear Palisades, LLC; Holtec International; and HDI submitted a
license transfer application to transfer the PNP license from
Entergy to Holtec. By letter dated December 13, 2021 (ML21292A145),
the NRC issued an order consenting to the license transfer.
On May 20, 2022, PNP permanently ceased power operations.
Pursuant to 10 CFR 50.82(a)(1)(ii), by letter dated June 13, 2022
(ML22164A067), Entergy certified to the NRC that all fuel had been
permanently removed from the PNP reactor vessel and placed in the
spent fuel pool (SFP) on June 10, 2022. These certifications were
docketed by the NRC. Upon docketing the 10 CFR 50.82(a)(1)
certifications, 10 CFR 50.82(a)(2) no longer authorizes operation of
the PNP reactor, or emplacement or retention of fuel into the PNP
reactor vessel. Shortly after PNP transitioned to a permanently shut
down and defueled facility in accordance with 10 CFR 50.82(a)(2),
Holtec Palisades, LLC assumed ownership of PNP, and HDI became the
licensed operator for decommissioning PNP (ML22173A173) and began
the decommissioning process.
In early 2023, HDI engaged with the NRC staff regarding the
potential restart of reactor operation at PNP. By letter dated March
13, 2023 (ML23072A404), HDI submitted its proposed regulatory path
to resume power operations at PNP through a series of licensing and
regulatory actions to restore the plant's licensing basis to the one
in effect just prior to permanent shut down. Specifically, from
September 2023 to May 2024, the NRC received the following licensing
and regulatory requests related to the potential restart of
Palisades:
A September 28, 2023, request for an exemption ``from
the 10 CFR 50.82(a)(2) restriction that prohibits reactor power
operations and retention of fuel in the reactor vessel . . . by
allowing for a one-time rescission of the docketed 10 CFR
50.82(a)(1) certifications.'' (ML23271A140).
A December 6, 2023, license transfer application,
seeking NRC consent to, and a conforming amendment for, a transfer
of operating authority from HDI to Palisades Energy, LLC under
Renewed Facility Operating License No. DPR-20 for Palisades and the
general license for the Palisades Independent Spent Fuel Storage
Installation (ISFSI) (ML23340A161) (License Transfer Application).
A December 14, 2023, license amendment request in
support of resuming power operations that largely seeks to undo the
changes made by the previously issued permanently defueled technical
specifications amendment with some proposed differences from the
previous operating reactor technical specifications (ML23348A148)
(Power Operations TS Amendment).
A February 9, 2024, license amendment request in
support of resuming power operations that largely seeks to undo the
changes made by the previously issued defueled administrative
controls amendment with some proposed differences from the previous
operating reactor technical specifications (ML24040A089)
(Administrative Controls Amendment).
A May 1, 2024, license amendment request to revise the
Palisades site emergency plan to support resuming power operations
(ML24122C666) (Emergency Plan Amendment).
A May 24, 2024, license amendment request to revise the
Palisades main steam line break analysis to ``support the Palisades
restart project.'' (ML24145A145) (MSLB Amendment).
While this exemption is a necessary part of Holtec's regulatory
approach to support restoration of the PNP power operations
licensing basis, the NRC's approval of this exemption is not
sufficient to authorize operation of the reactor, or emplacement or
retention of fuel into the reactor vessel. NRC approval of all the
licensing and regulatory requests listed above is necessary to
restore the PNP power operations licensing basis and reauthorize
power operations at PNP.
Accordingly, separate from this exemption, the NRC staff has
reviewed and approved the License Transfer Application
(ML25167A245), the Power Operations TS Amendment (ML25157A127), the
Administrative Controls TS Amendment (ML25157A107), the Emergency
Plan Amendment (ML25150A281), and the MSLB Amendment (ML25156A045).
The staff is issuing its approval of these actions concurrently with
its approval of this exemption to reauthorize power operations at
PNP.
II. Request/Action
By letter dated September 28, 2023 (ML23271A140), Holtec
Decommissioning International LLC, on behalf of Holtec Palisades LLC
\1\ (collectively, Holtec), requested exemption from portions of 10
CFR 50.82(a)(2) to allow for a one-time rescission of the docketed
10 CFR 50.82(a)(1) certifications to remove the restriction that
prohibits operation of the PNP reactor and emplacement and retention
of fuel into the PNP reactor vessel. The regulation in 10 CFR
50.82(a)(2) states, Upon docketing of the certifications for
permanent cessation of operations and permanent removal of fuel from
the reactor vessel, or when a final legally effective order to
permanently cease operations has come into effect, the 10 CFR part
50 license no longer authorizes operation of the reactor or
emplacement or retention of fuel into the reactor vessel. Therefore,
Holtec states that a one-time exemption to this requirement is
needed for PNP to transition from a facility in decommissioning back
to a power operations plant. Holtec also states that the exemption
would allow resumption of power operations at PNP after NRC approval
of the License Transfer Application and license amendment requests
necessary to reinstate the PNP power operations licensing basis. By
letter dated July 1, 2025 (ML25182A066), Holtec submitted a
notification reporting the licensing and regulatory activities
needed to support the resumption of power operations at PNP and its
readiness to transition to the power operations licensing basis on
August 25, 2025. Holtec stated in the exemption request that four
exemptions granted to PNP based on a facility in a decommissioning
status are to be rescinded coincident with implementation of this
exemption. Those
[[Page 35739]]
exemptions are related to Certified Fuel Handlers Severe Weather
Authority (ML17216A802), Record Keeping (ML21195A368, package), Use
of Decommissioning Funds for Spent Fuel Management (ML21286A581,
package), and the Permanently Defueled Emergency Plan (ML23263A977).
In addition, by letter dated October 9, 2024 (ML24283A094), Holtec
requested rescission of two additional exemptions related to Offsite
Primary and Secondary Liability Insurance (ML23192A077) and Onsite
Property Damage Insurance (ML23191A522) coincident with
implementation of this exemption.
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\1\ On July 24, 2025, the NRC issued an order approving and
conforming amendment reflecting the transfer of operating authority
from HDI to Palisades Energy, LLC (Package ML25167A245). Holtec
Palisades, LLC, remains the licensed owner of PNP.
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III. Discussion
Pursuant to 10 CFR 50.12, ``Specific exemptions,'' the
Commission may, upon application by any interested person or upon
its own initiative, grant exemptions from the requirements of 10 CFR
part 50: (1) when 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) when any of
the special circumstances listed in 10 CFR 50.12(a)(2) are present.
These special circumstances include, among others:
(ii) 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;
A. The Exemption Is Authorized by Law
The requested exemption from 10 CFR 50.82(a)(2) would allow for
a one-time rescission of the docketed 10 CFR 50.82(a)(1)
certifications to remove the restriction that prohibits operation of
the PNP reactor and emplacement and retention of fuel into the PNP
reactor vessel. As stated above, 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 the proposed one-time exemption will not result in a
violation of the Atomic Energy Act of 1954, as amended; other laws;
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 requested exemption, by itself, does not authorize plant
operation or change the conditions of the plant in any manner. The
one-time exemption from 10 CFR 50.82(a)(2) would allow Holtec the
ability to rescind the 10 CFR 50.82(a)(1) certifications, such that
the current restrictions that prohibit operation of the PNP reactor
and emplacement and retention of fuel into the PNP reactor vessel
would no longer be in place. These regulatory restrictions in 10 CFR
50.82(a)(2) in would no longer be in place once the certifications
are rescinded; however, as discussed in Section I, the NRC has
concurrently reviewed and approved the transfer of operating
authority and the license amendment requests associated with
restoring the power operations licensing basis (i.e., restored
operating license conditions, technical specifications, etc.) to
allow for and ensure the safe loading of fuel into the reactor and
operation of the plant. Each of these actions were subject to
individual review and approval by the NRC to ensure that there is
reasonable assurance of public health and safety to support the
resumption of power operations at PNP. Therefore, this exemption
will not present an undue risk to public health and safety.
C. The Exemption Is Consistent With the Common Defense and Security
The requested exemption would allow for a one-time rescission of
the decommissioning certifications in 10 CFR 50.82(a)(1), and would
not, by itself, alter the design, function, or operation of any
structures or plant equipment that is necessary to maintain the safe
and secure status of the plant, and will not adversely affect
Holtec's ability to physically secure the site or protect special
nuclear material. As discussed in Section I, the NRC has reviewed
and approved the transfer of operating authority and the license
amendment requests associated with restoring the power operations
licensing basis to allow for and ensure the safe loading of fuel
into the reactor and operation of the plant. As part of this review,
the NRC determined that PNP's safeguards and security programs, as
found in the Physical Security Plan, will meet the regulatory
requirements necessary to support the resumption of power operations
at PNP (ML25157A127). Therefore, the proposed exemption is
consistent with the common defense and security.
D. Special Circumstances
Special circumstances, in accordance with 10 CFR
50.12(a)(2)(ii), are present whenever, ``[a]pplication 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 regulation at 10 CFR
50.82(a)(2) prohibits operation of the reactor and emplacement and
retention of fuel in the reactor vessel upon docketing the
decommissioning certifications described in 10 CFR 50.82(a)(1). The
underlying purpose of this regulation is to provide the licensee
with a key means of communicating to the NRC and the public the
licensee's plans for decommissioning the reactor, as discussed in
NRC-2015-0070, Regulatory Improvements for Power Reactors
Transitioning to Decommissioning, Regulatory Basis Document, dated
November 20, 2017 (ML17215A010).
Additionally, the certifications identify the point in time when
a reactor formally enters the decommissioning process. Specifically,
the docketing of the 10 CFR 50.82(a)(1) certifications serves as a
discrete date to transition the inspection program for the plant
from an operating to a decommissioning status, to restructure the
NRC fees associated with operating a facility, and to allow the
licensee to begin the process of implementing reductions to various
site programs (i.e., emergency preparedness and physical security)
based on the reduced risk profile of a reactor in decommissioning.
As stated above, the underlying purpose of the rule is for
communication regarding a licensee's formal entrance into the
decommissioning process and to provide a discrete point in time to
mark the transition from operations to decommissioning. Application
of the rule as written would not permit a licensee in
decommissioning for which the Sec. 50.82(a) certifications have
been docketed, in this particular circumstance, Holtec, to seek to
restart the reactor and exit the decommissioning process. Moreover,
it would prohibit Holtec from exiting the decommissioning process
regardless of the outcome of the NRC's review of Holtec's licensing
requests seeking the restoration of the PNP's power operations
licensing basis. As noted in Section I, the NRC staff has
concurrently reviewed and approved the transfer of operating
authority and the license amendment requests associated with
restoring the power operations licensing basis to support the
reauthorization of power operations at PNP. There is nothing in the
rulemaking basis for 10 CFR 50.82(a)(2) to indicate that the
prohibitions prescribed by the regulation were intended to be
irreversible. Additionally, in denying a petition for rulemaking,
the Commission stated that ``the NRC may consider requests from
licensees to resume operations under the existing regulatory
framework'' Criteria To Return Retired Nuclear Power Reactors to
Operations, (86 FR 24362; May 6, 2021). Finally, even if PNP resumes
power operations, the facility would still need to be
decommissioned, following submission and docketing of the 10 CFR
50.82(a)(1) certifications after any subsequent period of operation.
Therefore, the NRC staff concludes that application of the
regulation, in the particular circumstances of Holtec seeking to
resume power operations at PNP, does not serve the underlying
purpose of the rule. Accordingly, the special circumstances in 10
CFR 50.12(a)(2)(ii) exist and support approval of the requested
exemption.
E. Environmental Considerations
In accordance with 10 CFR 51.30, 51.31, and 51.32, the
Commission has determined that the granting of this exemption will
not have a significant effect on the quality of the human
environment as discussed in the NRC staff's Environmental Assessment
and Finding of No Significant Impact issued on May 30, 2025 (90 FR
23071).
IV. Conclusions
Accordingly, the Commission has determined that, pursuant to 10
CFR 50.12, the exemption is authorized by law, will not present an
undue risk to the public health and safety, and is consistent with
the common defense and security. Also, special circumstances are
present. Therefore, the Commission hereby grants Holtec a one-time
exemption from 10 CFR 50.82(a)(2) to allow for a one-time rescission
of the PNP docketed 10 CFR 50.82(a)(1) certifications to remove the
restriction that prohibits operation of the PNP reactor and
emplacement and retention of fuel into the PNP reactor vessel.
The Commission also considered Holtec's request that the NRC
rescind the six exemptions discussed in Section II coincident with
the implementation of this exemption. The Commission concludes that
these six exemptions should be rescinded upon the effectiveness of
this exemption
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because the six exemptions were granted based on PNP's status as a
facility in decommissioning, and therefore the supporting bases for
these exemptions are no longer met. Accordingly, the Commission
hereby grants Holtec's request to rescind the six exemptions
discussed in Section II.
By letter dated July 1, 2025 (ML25182A066), Holtec submitted a
notification reporting its readiness to implement the power
operations licensing basis. In this letter Holtec stated that they
planned to transition to the power operations licensing basis on
August 25, 2025. Therefore, this exemption is effective on August
25, 2025.
Dated: July 24, 2025.
For the Nuclear Regulatory Commission.
/RA/
Jamie Pelton,
Acting Director, Division of Operating Reactor Licensing, Office of
Nuclear Reactor Regulation.
[FR Doc. 2025-14334 Filed 7-28-25; 8:45 am]
BILLING CODE 7590-01-P