[Federal Register Volume 91, Number 5 (Thursday, January 8, 2026)]
[Notices]
[Pages 727-731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-00174]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-255; NRC-2026-0034]


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) has issued an 
exemption in response to a request dated December 12, 2025, as 
supplemented by letters dated December 26, 2025, December 31, 2025, and 
January 5, 2026, from Palisades Energy, LLC. The exemption authorizes

[[Page 728]]

a one-time exemption for the Palisades Nuclear Plant to allow the use 
of the less restrictive work hour limitations described in the NRC 
regulations for a 60-day period starting on January 6, 2026.

DATES: The exemption was issued on January 5, 2026.

ADDRESSES: Please refer to Docket ID NRC-2026-0034 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-2026-0034. 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 ADAMS Public 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 exemption request to authorize a one-time 
exemption for the Palisades Nuclear Plant to allow the use of the less 
restrictive work hour limitations is available in ADAMS under Accession 
No. ML25346A199. The supplements are available under Accession Nos. 
ML25360A002, ML25365A936, and ML26005A056, respectively.
     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: Marlayna V. Doell, Office of Nuclear 
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001; telephone: 301-415-3178; email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the exemption is attached.

    Dated: January 6, 2026.

    For the Nuclear Regulatory Commission.
Marlayna Doell,
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; Palisades Energy, LLC; Palisades Nuclear Plant; 
Exemption

I. Background

    Palisades Energy, LLC. (Palisades Energy, the licensee), is the 
holder of Renewed Facility Operating License No. DPR-20, which 
authorizes operation of the Palisades Nuclear Plant (Palisades). The 
license provides, among other things, that the facility is subject 
to all rules, regulations, and orders of the U.S. Nuclear Regulatory 
Commission (NRC, the Commission) now or hereafter in effect. The 
facility consists of one pressurized-water reactor located in Van 
Buren County, Michigan.

I. Request/Action

    By letter dated December 12, 2025 (Agencywide Documents Access 
and Management System (ADAMS) Accession No. ML25346A199), as 
supplemented by letters dated December 26, 2025 (ML25360A002), 
December 31, 2025 (ML25365A936), and January 5, 2026 
(ML2626005A056), and pursuant to 10 CFR 26.9, ``Specific 
exemptions,'' the licensee requested a one-time exemption from the 
work hour requirements in Title 10 of the Code of Federal 
Regulations (10 CFR) Part 26, ``Fitness for Duty Programs,'' 
Paragraph 26.205(d), ``Work hour controls.'' Specifically, the 
licensee requested to use the work hour requirements in 10 CFR 
26.205(d)(4) in lieu of the non-outage work hour controls described 
in 10 CFR 26.205(d)(3) and (d)(7) for a period of no more than 60 
days, or until Palisades is connected to the electrical grid, 
whichever occurs first, for individuals specified in 10 CFR 
26.4(a)(2) and 10 CFR 26.4(a)(4) starting on January 6, 2026. This 
request follows the licensee's previously approved exemption period 
from the same work hour requirements that started on November 3, 
2025, and expired on January 1, 2026.
    Section 26.205(d)(3) of 10 CFR, requires licensees to comply 
with the requirements for individuals to have a minimum number of 
days off per week depending on the duration of shift schedules, 
averaged over the shift cycle, and the duties being performed. 
Individuals working 8-hour shift schedules shall have at least 1 day 
off per week, and individuals who are working 10-hour shift 
schedules shall have at least 2 days off per week. Individuals 
working 12-hour shift schedules while performing the duties 
described in 10 CFR 26.4(a)(1) through (a)(3) shall have at least 
2.5 days off per week and individuals working 12-hour shift 
schedules while performing duties described in 10 CFR 26.4(a)(4) 
shall have at least 2 days off per week. Section 26.205(d)(7) of 10 
CFR, requires licensees to comply with the requirements for maximum 
average work hours wherein individuals may not work more than a 
weekly average of 54 hours, calculated using an averaging period of 
up to 6 weeks, which advances by 7 consecutive calendar days at the 
finish of every averaging period. The licensee seeks a one-time 
exemption from the requirements of 10 CFR 26.205(d)(3) and (d)(7).
    The requirements in 10 CFR 26.205(d)(4) provide that during the 
first 60 days of a unit outage, licensees need not meet the 
requirements of 10 CFR 26.205(d)(3) or (d)(7) for individuals 
specified in 10 CFR 26.4(a)(1) through (a)(4), while those 
individuals are working on outage activities. However, 10 CFR 
26.205(d)(4) does require the licensee to ensure individuals 
specified in 10 CFR 26.4(a)(1) through (a)(3) have at least 3 days 
off in each successive (i.e. non-rolling) 15-day period, and that 
the individuals specified in 10 CFR 26.4(a)(4) have at least 1 day 
off in any 7-day period. This is collectively known as the outage 
minimum days off (MDO) requirement.
    On July 24, 2025, the NRC issued a series of licensing and 
regulatory actions approving the licensee's request to reauthorize 
power operations at Palisades and return the plant to an operational 
status, including the Power Operations Technical Specifications 
(ML25157A127). The licensee implemented the power operations 
license, the final safety analysis report (FSAR), and the Power 
Operations Technical Specifications on August 25, 2025. Further, on 
August 25, 2025, Palisades transitioned directly into an outage 
under the Power Operations Technical Specifications to restore the 
plant for restart.
    On October 24, 2025, the NRC approved a previous request by 
Palisades Energy, LLC, for an exemption from the same work hours 
requirements in 10 CFR 26.205 for Palisades (ML25293A007) to support 
plant restart activities. With consideration of the additional 
mitigating actions proposed by the licensee, the NRC approved 
Palisades for an exemption to support the extended use of the less 
restrictive outage work hour limits for a 60-day period from 
November 3, 2025, through January 1, 2026, following the initial 
usage of the outage work hour limits starting from entry of the 
outage period on August 25, 2025, through the 60-day period 
permitted by 10 CFR 26.205(d)(4), which ended on October 23, 2025.
    The licensee stated this subsequent one-time exemption will 
allow for more flexibility for the scheduling of covered work tasks 
and individual work hours to better manage cumulative fatigue as the 
Palisades restart effort continues. The licensee proposed mitigating 
actions discussed in the ``Mitigating Strategy'' section of the 
Enclosure to the December 12, 2025, submittal letter.
    In the letters dated December 26 and 31, 2025, the licensee 
submitted supplements to the proposed request for exemption. In the 
supplements, the licensee proposed additional mitigating actions to 
address cumulative fatigue for members of the affected groups and 
establish dates for when personnel working on specific projects 
would return to non-outage, maximum averaging work controls. In 
addition, in the letter dated January 5, 2026, the licensee stated 
that the

[[Page 729]]

start date of the proposed exemption period of 60 days is being 
changed from January 2, 2026, to January 6, 2026.

II. Discussion

    Pursuant to 10 CFR 26.9, the Commission may, upon application by 
any interested person or upon its own initiative, grant exemptions 
from the requirements of 10 CFR part 26 when the exemptions are 
authorized by law and will not endanger life or property or the 
common defense and security; and are otherwise in the public 
interest.

A. The Exemption Is Authorized by Law

    The proposed exemption would authorize a one-time exemption from 
the requirements of 10 CFR 26.205(d)(3) and (d)(7) to allow the use 
of the less restrictive work hour controls in 10 CFR 26.205(d)(4) 
for up to an additional 60 days, starting on January 6, 2026, to 
allow the completion of plant restart activities without violating 
NRC regulations. As stated, 10 CFR 26.9 allows the NRC to grant 
exemptions from the requirements of 10 CFR part 26. The NRC staff 
has determined that granting the proposed 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 Will Not Endanger Life or Property

    The purpose of Subpart I, ``Managing Fatigue,'' of 10 CFR part 
26 is to ensure that worker fatigue does not compromise the 
abilities of individuals to perform their duties safely and 
competently. The purpose of 10 CFR 26.205(d)(4) is to provide 
licensees flexibility for a limited period in scheduling required 
days off while accommodating more intense work schedules associated 
with a unit outage.
    During the proposed exemption period, personnel as described in 
10 CFR 26.4(a)(2) and (a)(4) would be permitted to work in 
accordance with the outage MDO requirements in 10 CFR 26.205(d)(4) 
for a 60-day period. In its December 12, 2025, submittal, the 
licensee's mitigating strategy consisted of three actions for the 
individuals affected by this proposed exemption. The first proposed 
mitigating action is maintaining work hours compliant with the 
requirements in 10 CFR 26.205(d)(1), (d)(2), and (d)(4). The second 
proposed mitigating action is assessment for fatigue; the licensee 
states that the cognizant supervisors will assess each assigned 
supervised employee for fatigue and mental alertness during the 
proposed exemption period. The third proposed mitigating action was 
a commitment to limit the number of hours worked by individuals in 
10 CFR 26.4(a)(2) and (a)(4) averaged over a two-week period to 50 
hours per week from December 19, 2025, through January 1, 2026.
    The NRC staff evaluated the proposed mitigating actions and 
concluded that they were not sufficient to prevent or mitigate 
cumulative fatigue for those individuals specified in 10 CFR 
26.4(a)(2) and (a)(4) during the exemption period for extended use 
of outage work hour controls. By letter dated December 22, 2025 
(ML25357A221), the NRC staff issued a request for additional 
information (RAI) to request the licensee provide an explanation of 
how the current actions will mitigate cumulative fatigue and what 
other actions will be taken to address and mitigate fatigue during 
the subsequent 60-day exemption period of less restrictive work hour 
limitations.
    The licensee submitted responses to the RAIs on December 26, 
2025 (ML25360A002). In the proposed exemption, the licensee re-
assessed restart activities resulting in the need for a subsequent 
exemption. In the RAI responses, the licensee further states that, 
during the plant restart project, the licensee identified additional 
scope which required expansion of the required maintenance 
activities. The proposed subsequent exemption would provide the 
licensee additional flexibility to schedule personnel, which allows 
more opportunity to identify and address issues during the plant 
restart-related activities.
    The licensee completed an audit of the work hours for the 
affected groups from November 3, 2025, through December 18, 2025, 
during which the initial exemption was in place. The licensee found 
that chemistry personnel completing duties under 10 CFR 26.4(a)(2) 
maintained a schedule pursuant to 10 CFR 26.205(d)(1), (d)(2), and 
(d)(7), and averaged significantly less than the maximum average of 
54 hours per week. Health physics personnel completing duties under 
10 CFR 26.4(a)(2) maintained a schedule pursuant to 10 CFR 
26.205(d)(1), (d)(2), and (d)(4), and averaged slightly below the 
maximum allowable 72 hours per week. Maintenance personnel 
completing duties under 10 CFR 26.4(a)(4) maintained a schedule 
pursuant to 10 CFR 26.205(d)(1), (d)(2), and (d)(4). However, some 
individuals in several maintenance positions worked near the maximum 
allowable 72 hours per week.
    In the proposed exemption, the licensee provided a commitment 
that stated the affected groups would work no more than 50 hours per 
week, averaged over the two-week period from December 19, 2025, to 
January 1, 2026. The licensee modified the commitment in the 
response to the RAIs to ensure that the affected groups would work 
no more than 48 hours per week, averaged over the two-week period 
above. In addition, the licensee added another commitment to 
``enhance the Human Performance Program error prevention tools to 
include self-awareness of fatigue as a potential proficiency 
obstacle that will be assessed during pre-job briefings.'' This 
commitment would be added to their Human Performance Program prior 
the proposed subsequent exemption period starting on January 6, 
2026. For the affected groups, prior to starting work, the licensee 
would provide pre-job briefings to address proficiency concerns.
    During the initial 60-day outage from August 24, 2025, to 
October 23, 2025, and the exemption period from November 3, 2025, to 
January 1, 2026, the licensee stated that no waivers were required 
for individuals performing duties in 10 CFR 26.4(a). The licensee 
noted that three fitness for duty fatigue assessments were performed 
for cause during the period above. However, none of the assessments 
concluded that individual fatigue was a factor.
    The NRC staff evaluated the subsequent exemption, work 
schedules, mitigating strategy, and the information provided in the 
RAI response. Personnel performing duties in 10 CFR 26.4(a)(2) and 
(a)(4) have complied with, at a minimum, the outage work controls 
specified in 10 CFR 26.205(d)(4). Of the thirteen different 
positions specified in the proposed subsequent exemption, eight 
positions will have worked normal or near-normal schedules and 
averaged below or slightly above the maximum average non-outage 
work-hour requirement specified in 10 CFR 26.205(d)(7). The 
remaining five positions include Health Physics, Framatome Projects, 
Alloy 600 Mitigation Project, Fuel Handling Equipment Upgrade 
Project, and Tesco Projects, which have worked near the maximum 
allowable 72 hours per week. Individuals in these positions are at 
the highest risk of cumulative fatigue during this subsequent 
exemption period as they have continued to work near the maximum 
average outage work hour controls during the previous exemption 
period.
    Due to the nature of the Palisades restart project and the usage 
of outage work controls during the initial outage, first exemption, 
and the proposed subsequent exemption in close succession, the NRC 
staff determined that compliance with only the outage MDO 
requirements and rest breaks would not be sufficient to manage 
cumulative fatigue. However, the NRC staff considered the mitigating 
strategy above in conjunction with the addition of one modified 
licensee commitment and the addition of a second licensee 
commitment. The modified licensee commitment provided a rest period 
for all affected personnel to work no more than 48 hours per week, 
averaged over a two-week period from December 19, 2025, to January 
1, 2026. A work schedule of no more than 48 hours per week provides 
at least 3 days off each week, or 10 equivalent days off including 
rest breaks, to ensure an adequate rest and reset period before 
transitioning into the subsequent exemption period. In addition, the 
licensee has committed to enhance their Human Performance Program 
error prevention tools by adding fatigue as a potential proficiency 
obstacle that will be assessed during pre-jobs briefings.
    The NRC staff considered additional mitigating factors that 
ensure the effects of cumulative fatigue are properly managed. The 
NRC staff noted that the licensee's first exemption would have 
continued through January 1, 2025. However, the licensee stopped 
using the flexibility provided by the exemption to implement the 
less restrictive outage work hour controls on December 18, 2025, and 
therefore did not utilize the flexibility provided by the exemption 
for the full 60-day period approved on October 23, 2025. The less 
restrictive outage work hour controls under the previous exemption 
were implemented for approximately 46 days, after which the two-week 
rest period commitment started. The NRC staff also notes that a 
significant portion of the work being performed involves maintenance 
activities that are subject to verification through nondestructive 
examination or post-maintenance testing, which provides additional 
assurance that the work will be

[[Page 730]]

completed in accordance with the performance objectives of 10 CFR 
26.23(e).
    On December 30, 2025, the NRC staff and representatives of 
Palisades Energy held a clarification call to discuss the RAI 
response. Palisades submitted a supplement to the RAI response on 
December 31, 2025 (ML25365A936), which provided additional 
descriptions and provisions for managing and bounding cumulative 
fatigue for the affected groups. The supplement contains three new 
commitments for Palisades work hour controls during the subsequent 
exemption period. From the start of the previous exemption period on 
November 3, 2025, through December 30, 2025, which includes the rest 
period, personnel performing chemistry duties have worked hours 
significantly below the outage work hour controls, while personnel 
performing health physics duties have worked slightly above the 54 
maximum average work hours over a shift cycle. For personnel 
performing maintenance duties in 10 CFR 26.4(a)(4), the licensee has 
provided additional commitments for specific positions to transition 
back to normal work hour controls at a specified point during the 
exemption. Personnel performing Framatome Projects duties have 
completed their scope of work and are no longer considered in the 
proposed subsequent exemption. The licensee has committed to 
transitioning to the maximum average weekly work-hour requirement in 
10 CFR 26.205(d)(7) on January 25, 2026, for personnel performing 
Alloy 600 Mitigation project duties, February 8, 2026, for personnel 
performing Fuel Handling Equipment Upgrade Project duties, and 
February 15, 2026, for personnel performing Tesco Projects duties.
    The NRC staff have re-evaluated the proposed subsequent 
exemption with the addition of the supplemental information 
including work schedules, work hours, and the new commitments. The 
NRC staff noted earlier that the five positions above were working 
near the maximum allowable 72-hours in 7-day requirement. However, 
based on information provided in the supplement to the RAI response, 
these individuals have either completed their work or will only work 
pursuant to the less restrictive outage work hour controls for a 
limited duration during this subsequent exemption. In addition, 
because these individuals have been in a rest period which started 
on December 19, 2025, they have received an adequate rest and reset 
period to return to a work schedule pursuant to the less restrictive 
outage work hour controls for a short period with a predetermined 
length. The limited duration that the licensee has committed to for 
these five positions lowers the risk of cumulative fatigue for these 
five positions that have been working near the maximum allowable 72-
hours in a 7-day period prior to the rest and reset period. The NRC 
staff have determined that the new administrative controls in the 
supplement to the RAI response described above, in conjunction with 
the licensee's mitigating strategy in the initial submittal and RAI 
response, will provide reasonable assurance that cumulative fatigue 
will be effectively managed and bounded for the duration of the 
subsequent exemption period.
    The NRC staff determined that the proposed mitigating strategy, 
in combination with a two-week rest period for all affected 
personnel and the revised commitments in the supplement to the RAI 
response, will allow the licensee to adequately manage cumulative 
fatigue during the proposed 60-day subsequent exemption period. 
Acute fatigue will be managed through the rest breaks in 10 CFR 
26.205(d)(2). Cumulative fatigue will be managed through the outage 
MDO requirements in 10 CFR 26.205(d)(4). In addition, the licensee 
committed to provide the affected individuals a two-week rest 
period, which took place from December 19, 2025, through January 1, 
2026. Further, given the timing of the approval and issuance of this 
exemption, the affected individuals have been subject to non-outage 
work hour controls since January 1, 2026, which provides additional 
fatigue management. Finally, the licensee will incorporate fatigue 
as an enhancement to their Human Performance Program error 
prevention tools in pre-job briefings, and will transition certain 
personnel back to normal work hour controls at a pre-defined date as 
described above. The NRC staff determined that the proposed 
mitigating strategy will adequately manage acute and cumulative 
fatigue. Therefore, the exemption will not endanger life or 
property.

C. The Exemption Will Not Endanger the Common Defense and Security

    The proposed exemption would authorize a one-time exemption from 
the requirements of 10 CFR 26.205(d)(3) and (d)(7) to allow use of 
the less restrictive work hour controls described in 10 CFR 
26.205(d)(4) for up to an additional 60-days. The proposed exemption 
is not applicable to security personnel, nor does it have any 
relation to or impact on security issues. Therefore, the exemption 
will not endanger the common defense and security.

D. The Exemption Is Otherwise in the Public Interest

    The proposed exemption would authorize a one-time exemption from 
the requirements of 10 CFR 26.205(d)(3) and (d)(7) to allow use of 
the less restrictive work hour controls described in 10 CFR 
26.205(d)(4) for up to an additional 60 days. In considering whether 
the requested exemptions would be in the public interest, the NRC 
staff considered several factors, including:
     the nature of the licensee's unique situation 
transitioning from decommissioning back to a power operations 
licensing basis, which requires restoration of safety-related 
equipment, among other plant restart activities; and
     the public health and safety interests of the 
communities that are impacted by the safe restart of the plant.
    The NRC staff considered the unique situation of Palisades, 
which was previously in a decommissioning status; however, Palisades 
Energy has transitioned to a power operations licensing basis and is 
currently restoring safety-related equipment in addition to other 
restart-related inspections and repair activities during the ongoing 
outage to ensure the plant will be safe prior to restarting. The NRC 
issued RAIs to obtain additional information on the status of the 
Palisades restart and to identify why a subsequent exemption would 
be necessary. The licensee stated that during the plant restart 
project additional scope was identified which required expansion of 
the required maintenance activities. The approval of the proposed 
subsequent exemption would provide more flexibility for scheduling 
of personnel, which will provide ample opportunity to identify and 
address issues during plant restart that will ensure safety and 
reliability.
    The NRC staff considered the balance of public interest 
considerations, including the potential impacts of not granting the 
subsequent exemption, which could result in the delay of restarting 
the Palisades Nuclear Plant and could potentially delay the amount 
of energy available to the surrounding area. The NRC staff also 
considered the potential impacts resulting from an increase in 
overall cumulative fatigue due to personnel working longer work 
hours for a subsequent 60-day period almost directly following the 
expiration of the initial 60-day outage, which ended on October 23, 
2025, and the 60-day previous exemption period, which ended on 
January 1, 2026. However, the licensee committed to and provided the 
affected individuals with a two-week rest period working no more 
than 48 hours maximum per week averaged over the two weeks between 
December 19, 2025 and January 1, 2026. In addition, there have been 
several days worked by all personnel under non-outage work hour 
requirements in accordance with 10 CFR 26.205 between the expiration 
of the previous exemption on January 1, 2026, and the issuance of 
the current exemption. Furthermore, the licensee has provided 
additional administrative controls in a supplement to the RAI 
response which states that personnel have either completed their 
work or will transition to normal work hour controls at pre-defined 
dates, thereby reducing the potential for cumulative fatigue.
    The NRC staff evaluated the proposed exemption, mitigating 
strategy, RAI response, and supplement against the balance of public 
interest considerations. The licensee's mitigating strategy includes 
adhering to the rest break requirements, MDO requirements, 
supervisory fatigue assessments, a two-week rest period, the 
additional days worked by all personnel under the non-outage work 
hour requirements, an enhancement to their Human Performance 
Program, and a commitment to transition to normal work hour controls 
for certain personnel. Through these mitigating actions, the 
licensee will adequately manage fatigue for personnel identified in 
10 CFR 26.4(a)(2) and (a)(4) during the proposed subsequent 
exemption period. Based on these considerations, the NRC staff 
concluded that there are no expectations for a significant impact on 
public health and safety as a result of the increase in cumulative 
fatigue for the 60-day subsequent exemption period. Therefore, the 
NRC staff finds that approval of the requested exemption is 
otherwise in the public interest.

[[Page 731]]

E. Environmental Considerations

    The Commission has determined that granting the proposed one-
time exemption from the requirements of 10 CFR 26.205(d)(3) and 
(d)(7) involves (1) no significant hazards consideration, (2) no 
significant change in the types or significant increase in the 
amounts of any effluents that may be released offsite, (3) no 
significant increase in individual or cumulative public or 
occupational radiation exposure, (4) no significant construction 
impact, and (5) no significant increase in the potential for or 
consequences from radiological accidents.
    (1) Under 10 CFR 50.92(c), there is no significant hazards 
consideration if the action does not (1) involve a significant 
increase in the probability or consequences of an accident 
previously evaluated; or (2) create the possibility of a new of 
different kind of accident from any accident previously evaluated; 
or (3) involve a significant reduction in a margin of safety.
    The proposed exemption is administrative in nature because it 
provides an additional period when less restrictive hours can be 
worked for personnel identified in 10 CFR 26.4(a)(2) and (a)(4). The 
proposed exemption has no effect on systems, structures, and 
components (SSCs) and no effect on the capability of the SSCs to 
perform their design function. The proposed exemption does not make 
any changes to the facility or operating procedures and does not 
alter the design, function, or operation of any plant equipment. 
Therefore, the exemption does not increase the probability or 
consequences of an accident previously evaluated.
    The proposed exemption does not make any changes to the facility 
or operating procedures and does not alter the design, function, or 
operation of any plant equipment. Similarly, the proposed exemption 
does not authorize any physical changes to any SSCs involved in the 
mitigation of any accidents. Therefore, the exemption does not 
create the possibility of a new or different kind of accident from 
any accident previously evaluated.
    The proposed exemption does not authorize alteration of the 
design basis or any safety limits for the plant. The exemption would 
not impact station operation or any SSC that is relied upon for 
accident mitigation. Therefore, the exemption does not involve a 
significant reduction in a margin of safety.
    For these reasons, the NRC has determined that approval of the 
exemption requested involves no significant hazards consideration.
    (2) The proposed exemption does not authorize any changes to the 
design basis requirements for the SSCs at Palisades that function to 
limit the release of non-radiological effluents, radiological liquid 
effluents, or radiological gaseous effluents during and following 
postulated accidents. Additionally, the exemption does not change 
any requirements with respect to the conduct of radiation surveys 
and monitoring. Therefore, there is no significant change in the 
types or significant increase in the amounts of any effluents that 
may be released offsite.
    (3) The proposed exemption does not affect the limits on the 
release of any radioactive material or the limits provided in 10 CFR 
part 20, ``Standards for Protection Against Radiation,'' for 
radiation exposure to workers or members of the public. 
Additionally, the exemption will not increase or decrease the amount 
of work activities that must be completed in order to connect the 
reactor unit to the electrical grid. Therefore, there is no 
significant increase in individual or cumulative public or 
occupational radiation exposure.
    (4) The proposed exemption does not involve any changes to a 
construction permit; Therefore, there is no significant construction 
impact.
    (5) The proposed exemption does not alter any of the assumptions 
or limits in the licensee's accident analyses. Therefore, there is 
no significant increase in the potential for or consequences from 
radiological accidents.
    In addition, the requirements from which the exemption are 
sought involve other requirements of an administrative, managerial, 
or organizational nature. Accordingly, the exemption meets the 
eligibility criteria for categorical exclusion set forth in 10 CFR 
51.22(c)(25)(vi)(I). Therefore, in accordance with 10 CFR 51.22(b), 
no environmental impact statement or environmental assessment need 
be prepared in connection with the NRC's consideration of the 
exemption request.

III. Conclusions

    Accordingly, the Commission has determined that, pursuant to 10 
CFR 26.9, the exemption is authorized by law, will not endanger life 
or property or the common defense and security, and is otherwise in 
the public interest. Therefore, the Commission hereby grants 
Palisades Energy, LLC a one-time exemption from 10 CFR 26.205(d)(3) 
and (d)(7) for personnel identified in 10 CFR 26.4(a)(2) and (a)(4) 
to allow the use of the outage MDO requirements described in 10 CFR 
26.205(d)(4) for a 60-day period starting January 6, 2026. While the 
exemption is in effect, Palisades Energy, LLC will ensure that 
individuals specified in 10 CFR 26.4(a)(2) have at least 3 days off 
in each successive (i.e., non-rolling) 15-day period; and that 
individuals specified in 10 CFR 26.4(a)(4) have at least 1 day off 
in any 7-day period. Additionally, Palisades Energy, LLC will use 
the outage MDO requirements, rest break requirements, the two-week 
rest period which started on December 19, 2025, enhancements to 
their Human Performance Program, and commitments to transition 
personnel back to normal non-outage work hour controls at the 
defined dates in the supplement to the RAI response to adequately 
manage acute and cumulative fatigue for personnel performing duties 
in 10 CFR 26.4(a)(2) and (a)(4) during the subsequent exemption 
period. Accordingly, the exemption shall not cover those personnel 
that Palisades Energy has committed to transitioning back to non-
outage work hour controls at the dates specified in the supplement 
to the RAI response as the supporting bases for this exemption for 
those personnel will no longer be met.
    If the Palisades Nuclear Plant is connected to the electrical 
grid prior to the end of the approved 60-day exemption period, the 
supporting bases for this exemption are no longer met. Accordingly, 
the exemption shall end either at the end of the approved 60-day 
period, which is March 6, 2026, or at the time when the Palisades 
Nuclear Plant is connected to the electrical grid, whichever occurs 
first.
    The Palisades restart project is a first-of-a-kind activity 
where a nuclear power plant in decommissioning status is being 
returned to operational status. Palisades, as a plant in 
decommissioning was not subject to the fatigue management 
requirements in 10 CFR part 26 Subpart I. However, on August 25, 
2025, Palisades implemented the Power Operations licensing basis, 
including the Final Safety Analysis Report and the Power Operations 
Technical Specifications, and transitioned into an outage under the 
Power Operations Technical Specifications to restore the plant for 
restart and as a result became subject to the work hour control 
requirements in 10 CFR 26.205. This subsequent exemption and the 
prior exemption from the work hour controls directly support restart 
activities unique to the Palisades restart project for specific 
groups of personnel, with specific consideration of the hours worked 
by each group prior to the issuance of this exemption, to support 
the numerous activities necessary to return the plant to an 
operational status. Further, any subsequent exemption request will 
be evaluated on a case-by-case basis and is specific to the 
circumstances of the facility, the mitigating strategy put in place 
to manage cumulative fatigue, the timing between a subsequent 
request and the previous exemption, and the hours worked by 
individuals.

    Dated: January 5, 2026.

    For the Nuclear Regulatory Commission.

    /RA/
Hipolito Gonzalez,
Deputy Director, Division of Operating Reactor Licensing, Office of 
Nuclear Reactor Regulation.
[FR Doc. 2026-00174 Filed 1-7-26; 8:45 am]
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