[Federal Register Volume 91, Number 32 (Wednesday, February 18, 2026)]
[Notices]
[Pages 7542-7545]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-03169]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-255; NRC-2026-0497]
Holtec Palisades, 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 June 26, 2025, request from Holtec
Palisades, LLC (Holtec) that allows Holtec to submit a subsequent
license renewal application for Palisades Nuclear Plant at least 3
years prior to the expiration of the existing license and, if the NRC
staff finds it acceptable for docketing, the existing license will be
in timely renewal under NRC regulations until the NRC has made a final
determination on whether to approve the subsequent license renewal
application.
DATES: The exemption was issued on February 10, 2026.
ADDRESSES: Please refer to Docket ID NRC-2026-0497 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-2026-0497. Address
questions about Docket IDs in Regulations.gov to Bridget Curran;
telephone: 301-415-1003; email: [email protected]. For technical
questions, contact the individual listed in the For Further Information
Contact section of this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may obtain publicly available documents online in the
ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/
[[Page 7543]]
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 ADAMS accession number for each document
referenced (if it is available in ADAMS) is provided the first time
that it is mentioned in this document.
NRC's PDR: The PDR, where you may examine and order copies
of publicly available documents, is open by appointment. To make an
appointment to visit the PDR, please send an email to
[email protected] or call 1-800-397-4209 or 301-415-4737, between 8
a.m. and 4 p.m. eastern time (ET), Monday through Friday, except
Federal holidays.
FOR FURTHER INFORMATION CONTACT: Mark Yoo, Office of Nuclear Reactor
Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001; telephone: 301-415-8583; email: [email protected].
SUPPLEMENTARY INFORMATION: The text of the exemption is attached.
Dated: February 13, 2026.
For the Nuclear Regulatory Commission.
Mark Yoo,
Senior Project Manager, License Renewal Projects Branch, Division of
New and Renewed Licenses, Office of Nuclear Reactor Regulation.
Attachment--Exemption
NUCLEAR REGULATORY COMMISSION
Docket No. 50-255; Holtec Palisades, LLC; Palisades Nuclear Plant;
Exemption
I. Background
Holtec Palisades, LLC (Holtec, the licensee) is the holder of
Renewed Facility Operating License No. DPR-20, which authorizes the
operation of the Palisades Nuclear Plant (PNP). The PNP consists of
one pressurized-water reactor located in Covert, Michigan. The PNP
license provides, among other things, that the licensee is subject
to all rules, regulations, and orders of the U.S. Nuclear Regulatory
Commission (NRC, the Commission) now or hereafter in effect. The PNP
license expires on March 24, 2031.
The PNP had ceased power operations on May 20, 2022. In response
to requests by Holtec, on July 24, 2025, the NRC issued six
licensing and regulatory actions that collectively reauthorized PNP
power operations (Agencywide Documents Access and Management System
Accession Nos. ML25157A127; ML25157A107; ML25150A281; ML25156A045;
ML25163A182; ML25167A245). By letter dated June 26, 2025
(ML25177A070), Holtec requested an exemption from the requirements
of Title 10 of the Code of Federal Regulations (10 CFR) 2.109(b) to
allow Holtec to submit a subsequent license renewal application for
the PNP at least 3 years prior to the expiration of the PNP license
(i.e., March 24, 2028) and, if the NRC staff finds it acceptable for
docketing, the license will be in timely renewal under NRC
regulations until the NRC has made a final determination on whether
to approve the subsequent license renewal application. The NRC has
completed its evaluation of Holtec's exemption request and has
determined that pursuant to 10 CFR 54.15, ``Specific exemptions,''
and 10 CFR 50.12, ``Specific exemptions,'' the requested 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. The NRC has also determined that special circumstances, as
defined in 10 CFR 50.12(a)(2), are present.
II. Request/Action
Holtec requested an exemption from 10 CFR 2.109(b), which
provides that if a nuclear power plant licensee files a sufficient
license renewal application ``at least 5 years before the expiration
of the existing license, the existing license will not be deemed to
have expired until the application has been finally determined.''
Specifically, Holtec requested timely renewal protection under 10
CFR 2.109(b) if it submits a subsequent license renewal application
for the PNP no later than 3 years prior to the expiration of the
PNP's renewed facility operating license on March 24, 2031. Holtec
stated that the following three special circumstances apply to its
exemption request:
(1) The application of 10 CFR 2.109(b) in this instance would
not serve the underlying purpose of the rule;
(2) Compliance with the 5-year time limit specified in that
regulation would result in undue hardship and other costs that are
significantly in excess of those contemplated when the regulation
was adopted, and are significantly in excess of those incurred by
others similarly situated; and
(3) Material circumstances that were not considered when the
regulation was adopted are present such that granting the exemption
is in the public interest.
III. Discussion
Under 10 CFR 54.17(a), an application for subsequent license
renewal must be filed in accordance with subpart A, ``Procedure for
Issuance, Amendment, Transfer, or Renewal of a License, and Standard
Design Approval,'' of 10 CFR part 2, ``Agency Rules of Practice and
Procedure,'' which includes 10 CFR 2.109(b). Section 2.109(b) of 10
CFR states that ``[i]f the licensee of a nuclear power plant
licensed under 10 CFR 50.21(b) or 50.22 files a sufficient
application for renewal of . . . an operating license . . . at least
5 years before the expiration of the existing license, the existing
license will not be deemed to have expired until the application has
been finally determined.''
As provided in 10 CFR 54.15, exemptions from the requirements of
10 CFR part 54, ``Requirements for Renewal of Operating Licenses for
Nuclear Power Plants,'' are governed by 10 CFR 50.12. Pursuant to 10
CFR 50.12, the Commission may, upon application by any interested
person or upon its own initiative, grant exemptions from the
requirements of 10 CFR part 50, ``Domestic Licensing of Production
and Utilization Facilities,'' when: (1) the exemptions are
authorized by law, will not present an undue risk to public health
or safety, and are consistent with the common defense and security;
and (2) special circumstances are present, as defined in 10 CFR
50.12(a)(2).
A. The Exemption Is Authorized by Law
The requested exemption would allow the licensee to submit a
sufficient subsequent license renewal application for the PNP by
March 24, 2028, and, if it does so, receive timely renewal
protection under 10 CFR 2.109(b). This means that if the licensee
submits a subsequent license renewal application by March 24, 2028,
and the NRC staff finds it acceptable for docketing, the existing
license for the PNP will not be deemed to have expired until the NRC
has made a final determination on whether to approve the subsequent
license renewal application.
The NRC has determined that even though less than 5 years would
remain in the term of the license for the PMP, granting this
limited, one-time exemption is authorized by law. The 5-year time
period specified in 10 CFR 2.109(b) is not required by the Atomic
Energy Act of 1954, as amended, or the Administrative Procedure Act.
It is the result of a discretionary agency rulemaking under sections
161 and 181 of the Atomic Energy Act of 1954, as amended (56 FR
64943; December 13, 1991) that was designed to provide the NRC with
a reasonable amount of time to review a license renewal application
and decide whether to approve it. Section 103c of the Atomic Energy
Act of 1954, as amended, permits the Commission to issue operating
licenses, including renewed licenses. Section 2.109 of 10 CFR
implements section 9(b) of the Administrative Procedure Act, 5
U.S.C. 558(c), which states, in part:
When the licensee has made timely and sufficient application for
a renewal or a new license in accordance with agency rules, a
license with reference to an activity of a continuing nature does
not expire until the application has been finally determined by the
agency.
The time period in 10 CFR 2.109(b) is designed to provide a
reasonable amount of time for the NRC to review a license renewal
application and reach a decision on whether to approve it. Prior to
1992, the rules provided that a licensee would have received timely
renewal protection when it submitted its license renewal application
30 days before the expiration of the current license (56 FR 64943;
December 13, 1991). In 1990, the NRC proposed modifying 10 CFR 2.109
to provide that an application must be submitted 3 years before the
expiration of the current license to be afforded timely renewal
protection (55 FR 29043; July 17, 1990). There is nothing in the
preamble supporting the proposed rule or final rule revising 10 CFR
2.109(b) that suggests that applying the timely renewal doctrine to
license renewal applications submitted 30 days before the expiration
of the license was not authorized by law. Instead, it appears that
the Commission proposed to revise 10 CFR 2.109(b) from 30
[[Page 7544]]
days to 3 years before the expiration of the license so that the
final determination on a license renewal application would typically
be made before the current operating license expired. In the
proposed rule, the Commission explained that it did not believe 30
days would provide ``a reasonable time to review an application for
a renewed operating license'' and estimated that the technical
review of a license renewal application would take approximately 2
years (55 FR 29043; July 17, 1990). In the final rule, the
Commission stated that the technical review of the application would
take approximately 2 years due to the review of many complex
technical issues and that ``any necessary hearing could likely add
an additional year or more'' (56 FR 64943; December 13, 1991).
Ultimately, the Commission concluded in the final rule that timely
renewal protection would be provided for a license renewal
application filed 5 years before the operating license expired to
promote consistency with the requirement that licensees submit
decommissioning plans and related financial assurance information on
or about 5 years prior to the expiration of their current operating
licenses. Thus, in promulgating 10 CFR 2.109(b), the Commission
considered that the time period needed to reach a final
determination may be less than 5 years in some cases, but the rule
also provides timely renewal protection for timely filed
applications to account for situations where the resolution of
complex technical issues may take more time.
The requested exemption constitutes a change to the schedule by
which the licensee must submit its application for PNP subsequent
license renewal and is administrative in nature; it does not involve
any change to the current operating license. Under 10 CFR 54.17(a),
an application for a renewed license must be filed in accordance
with subpart A of 10 CFR part 2, which includes 10 CFR 2.109(b).
However, the NRC may grant exemptions from the requirements of 10
CFR part 54 pursuant to 10 CFR 54.15. For the reasons stated above,
the NRC has determined that granting this one-time exemption will
not result in a violation of the Atomic Energy Act of 1954, as
amended, the Administrative Procedure Act, or the NRC's regulations.
Therefore, the NRC finds that the exemption is authorized by law.
B. The Exemption Will Not Present an Undue Risk to the Public
Health and Safety
The requested exemption does not change the manner in which the
plant operates and maintains public health and safety because the
exemption from 10 CFR 2.109 does not result in a change to the
facility or the current operating license, but allows the PNP to
continue operating under its existing license in the event that the
NRC has not reached a final determination on a subsequent license
renewal application prior to the expiration of the current operating
license. Pending final action on a subsequent license renewal
application, the NRC will continue to conduct all regulatory
activities associated with licensing, inspection, and oversight, and
will continue to take whatever action may be necessary to ensure
adequate protection of the public health and safety. The existence
of this exemption would not affect the NRC's authority, applicable
to all licenses, to modify, suspend, or revoke a license for cause,
such as a serious safety concern.
If the licensee submits a subsequent license renewal application
by March 24, 2028, there would be 3 years prior to the expiration of
the current operating license for the NRC staff to conduct a
docketing acceptance review and, if the application is accepted for
docketing, provide a hearing opportunity and conduct the required
safety and environmental reviews. Three years significantly exceeds
the 12-month generic milestone schedule for the NRC staff's review
of a subsequent license renewal application; \1\ therefore, it is
sufficient time for the NRC staff to at least determine if any
immediate actions need to be taken prior to the licensee entering
the period of timely renewal. Based on the discussion in this
section, the NRC finds that the exemption will not present an undue
risk to the public health and safety.
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\1\ Nuclear Energy Innovation and Modernization Act Milestone
Schedules of Requested Activities of the Commission, https://www.nrc.gov/about-nrc/generic-schedules.html (last updated August
28, 2025).
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C. The Exemption Is Consistent With the Common Defense and Security
The requested exemption does not alter the design, function, or
operation of any structures or plant equipment that are necessary to
maintain the safe and secure status of any site security matters.
Therefore, the NRC finds that the exemption is consistent with the
common defense and security.
D. Special Circumstances are Present
Paragraph 50.12(a)(2) of 10 CFR states that the Commission will
not consider granting an exemption unless special circumstances are
present. Such special circumstances include that: (1) application of
the regulation in the particular circumstances would not serve the
underlying purpose of the rule or is not necessary to achieve the
underlying purpose of the rule (10 CFR 50.12(a)(2)(ii)); (2)
compliance would result in undue hardship or other costs that are
significantly in excess of those contemplated when the regulation
was adopted, or that are significantly in excess of those incurred
by others similarly situated (10 CFR 50.12(a)(2)(iii)); and (3)
there is present any other material circumstance not considered when
the regulation was adopted for which it would be in the public
interest to grant an exemption (10 CFR 50.12(a)(2)(vi)). The NRC
finds that Holtec has provided several factors in support of its
exemption request that demonstrate that the special circumstances of
10 CFR 50.12(a)(2)(ii), (iii), and (vi) are present.
Holtec stated that its submittal of a subsequent license renewal
application for the PNP at least 3 years prior to the expiration of
the PNP's renewed facility operating license would provide the NRC
the time that it needs to complete its review and any hearing, if
necessary, and, therefore, the application of 10 CFR 2.109(b) in the
particular circumstances would not serve the underlying purpose of
the rule and the special circumstance of 10 CFR 50.12(a)(2)(ii) is
present. The PNP ceased power operations and was defueled in 2022.
In early 2023, Holtec announced plans to restart power operations at
the plant, making it the first United States nuclear power plant to
reopen after beginning decommissioning. Restarting requires
restoring components for safe operation, performing upgrades and
repairs, and obtaining the NRC's approval. Holtec stated that
meeting the subsequent license renewal application submission
deadline would divert significant resources from these efforts, and
even with reprioritization, the application may not be ready due to
incomplete aging analyses and calculations. Therefore, compliance
with the five-year time limit specified in 10 CFR 2.109(b) would
result in undue hardship and other costs that are significantly in
excess of those contemplated when the regulation was adopted, and
are significantly in excess of those incurred by others similarly
situated and the special circumstance of 10 CFR 50.12(a)(2)(iii) is
present. Finally, Holtec stated that the timely renewal rule did not
contemplate the situation in which a restart of power operations
would have to occur in parallel with the preparation of a subsequent
license renewal application and that the timely restart of the PNP
is essential to meet Michigan's clean energy commitment. Holtec
stated that allowing it to focus on preparations for a safe and
efficient restart rather than draining resources from those
preparations to meet the 5-year requirement for a timely subsequent
license renewal submittal is a material circumstance not considered
when 10 CFR 2.109(b) was adopted for which it would be in the public
interest to grant an exemption. Therefore, the special circumstance
of 10 CFR 50.12(a)(2)(vi) is present.
The NRC finds that the factors that Holtec provided in support
of its exemption request are compelling and demonstrate that the
special circumstances of 10 CFR 50.12(a)(2)(ii), (iii), and (vi) are
present.
E. Environmental Considerations
The NRC has determined that the issuance of the requested
exemption meets the provisions of the categorical exclusion in 10
CFR 51.22(c)(25). Under 10 CFR 51.22(c)(25), the granting of an
exemption from the requirements of an NRC regulation qualifies as a
categorical exclusion if: (i) there is no significant hazards
consideration; (ii) there is no significant change in the types or
significant increase in the amounts of any effluents that may be
released offsite; (iii) there is no significant increase in
individual or cumulative public or occupational radiation exposure;
(iv) there is no significant construction impact; (v) there is no
significant increase in the potential for or consequences from
radiological accidents; and (vi) the requirements from which the
exemption is sought involve one of several matters, including
scheduling requirements (10 CFR 51.22(c)(25)(vi)(G)). The basis for
the NRC's determination is provided in the following evaluation of
the requirements in 10 CFR 51.22(c)(25)(i)-(vi).
[[Page 7545]]
Requirements in 10 CFR 51.22(c)(25)(i)
To qualify for a categorical exclusion under 10 CFR
51.22(c)(25)(i), the exemption must involve a no significant hazards
consideration. The criteria for making a no significant hazards
consideration determination are found in 10 CFR 50.92(c). The NRC
has determined that the granting of the exemption request involves
no significant hazards consideration because allowing the submittal
of the subsequent license renewal application less than 5 years
before the expiration of the existing license and deeming the
license in timely renewal under 10 CFR 2.109(b) 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 or different kind of accident from any accident previously
evaluated; or (3) involve a significant reduction in a margin of
safety. Therefore, the requirements of 10 CFR 51.22(c)(25)(i) are
met.
Requirements in 10 CFR 51.22(c)(25)(ii) and (iii)
The requested exemption constitutes a change to the schedule by
which the licensee must submit its application for subsequent
license renewal and still place the license in timely renewal, which
is administrative in nature, and does not involve any change in the
types or significant increase in the amounts of effluents that may
be released offsite and does not contribute to any significant
increase in occupational or public radiation exposure. Accordingly,
there is no significant change in the types or significant increase
in the amounts of any effluents that may be released offsite, and no
significant increase in individual or cumulative public or
occupational radiation exposure. Therefore, the requirements of 10
CFR 51.22(c)(25)(ii) and (iii) are met.
Requirements in 10 CFR 51.22(c)(25)(iv)
The regulation that is requested to be exempted is not
associated with construction, and the exemption request does not
propose any changes to the site and would not alter the site or
change the operation of the site. Therefore, the requirements of 10
CFR 51.22(c)(25)(iv) are met because there is no significant
construction impact.
Requirements in 10 CFR 51.22(c)(25)(v)
The requested exemption constitutes a change to the schedule by
which the licensee must submit its subsequent license renewal
application and still place the license in timely renewal, which is
administrative in nature, and does not impact the probability or
consequences of accidents. Thus, there is no significant increase in
the potential for, or consequences of, a radiological accident.
Therefore, the requirements of 10 CFR 51.22(c)(25)(v) are met.
Requirements in 10 CFR 51.22(c)(25)(vi)
To qualify for a categorical exclusion under 10 CFR
51.22(c)(25)(vi)(G), an exemption must involve scheduling
requirements. The requested exemption involves scheduling
requirements because it would allow the licensee to submit an
application for subsequent license renewal for the PNP less than 5
years prior to the expiration of the existing license, rather than
the 5 years specified in 10 CFR 2.109(b), and still place the
license in timely renewal under 10 CFR 2.109(b). Therefore, the
requirements of 10 CFR 51.22(c)(25)(vi) are met.
Based on the above, the NRC concludes that the requested
exemption meets the eligibility criteria for a categorical exclusion
set forth in 10 CFR 51.22(c)(25). Therefore, pursuant to 10 CFR
51.22(b), no environmental impact statement or environmental
assessment need to be prepared in connection with the granting of
this exemption request.
IV. Conclusion
Accordingly, the NRC has determined that, pursuant to 10 CFR
54.15 and 10 CFR 50.12, the requested 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, as defined in 10 CFR 50.12(a)(2), are
present. Therefore, the NRC hereby grants the licensee a one-time
exemption from 10 CFR 2.109(b) to allow Holtec to submit a
subsequent license renewal application for the PNP less than 5 years
prior to the expiration of the PNP's renewed facility operating
license, but no later than March 24, 2028.
The decision to issue Holtec an exemption from 10 CFR 2.109(b)
does not constitute approval of the subsequent license renewal
application that Holtec intends to submit by March 24, 2028. Rather,
this exemption provides that if Holtec submits an application by
March 24, 2028, and the application is sufficient for docketing, the
licensee will receive timely renewal protection under 10 CFR
2.109(b) while the NRC evaluates that application. Should the
application be docketed, the NRC will provide an opportunity for the
public to seek a hearing and will review the application using its
normal license renewal review processes and standards to determine
whether the application meets all applicable regulatory
requirements.
This exemption is effective upon issuance.
Dated: February 10, 2026.
For the Nuclear Regulatory Commission.
/RA/
Michele Sampson,
Director, Division of New and Renewed Licenses, Office of Nuclear
Reactor Regulation.
[FR Doc. 2026-03169 Filed 2-17-26; 8:45 am]
BILLING CODE 7590-01-P