[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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