[Federal Register Volume 91, Number 52 (Wednesday, March 18, 2026)]
[Notices]
[Pages 13073-13078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-05284]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-255; NRC-2026-1354]
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 February 13, 2026, as
supplemented by letters dated February 27, 2026, March 4, 2026, and
March 9, 2026, from Palisades Energy, LLC. The exemption authorizes 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 March 13, March 16, March
30, and April 4, 2026, for various covered individuals as described in
the exemption.
DATES: The exemption was issued on March 13, 2026.
ADDRESSES: Please refer to Docket ID NRC-2026-1354 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-2026-1354. 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. ML26044A123. The supplements are available under Accession Nos.
ML26058A024 ML26063A922, and ML26068A292, 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: March 16, 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 February 13, 2026 (Agencywide Documents Access
and Management System (ADAMS) Accession No. ML26044A123), as
supplemented by letters dated February 27, 2026 (ML26058A024), March
4, 2026 (ML26063A922), and March 9, 2026 (ML26068A292), 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,'' Section 26.205, ``Work hour
controls,'' Paragraph (d), pursuant to 10 CFR 26.9, ``Specific
exemptions.'' Specifically, the licensee requested to use the outage
work hour controls 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
various periods of no more than 60 days, or until Palisades is
connected to the electrical grid, whichever occurs first, for
individuals specified in Paragraphs (a)(2) and (a)(4) of 10 CFR
26.4, ``FFD [Fitness for duty] program applicability to categories
of individuals.'' Within the request, as supplemented, the licensee
requested one 60-day period; however, the starting dates for the
period vary between the projects and groups of covered individuals.
Personnel supporting the Fuel Handling Equipment (FHE) and Tesco
projects will begin their 60-day period on March 13 and March 16,
2026, respectively, Health Physics personnel will begin their 60-day
period on March 30, 2026, and personnel supporting all other restart
activities will begin their 60-day period on April 4, 2026.
This exemption request follows the licensee's previously
approved two exemption periods from the same work hour requirements.
The first exemption period started on November 3, 2025, and expired
on January 1, 2026. The second exemption period started on January
6, 2026, and expired on March 6, 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
[[Page 13074]]
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 (ML25293A007), the NRC approved an initial
request by the licensee for an exemption 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 26.203(d)(3) and (d)(7) for a
period of no more than 60 days. With consideration of the additional
mitigating actions, the NRC approved the exemption to support the
extended use of the less restrictive outage work hour limits at
Palisades 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.
On January 5, 2026, the NRC approved a second request by the
licensee for an exemption 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) to support plant restart
activities (ML26002A079). The licensee submitted two supplemental
letters with additional mitigating actions dated December 26 and 31,
2025 (ML25360A002 and ML25365A936, respectively). The NRC staff
determined that the proposed mitigating actions for the second
exemption request would adequately manage acute and cumulative
fatigue for personnel supporting plant restart activities. The NRC
approved the exemption to use the less restrictive outage work hour
limits at Palisades for a 60-day period from January 6, 2026,
through March 6, 2026, following both the initial outage period and
the first exemption period's usage of the outage work hour limits
which expired on January 1, 2026.
The licensee submitted this third request for an exemption 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) on February 13, 2026. The licensee stated that the period
needed to support the restart activities was re-assessed and a third
exemption was needed. The licensee stated this third one-time
exemption will allow for more flexibility in the scheduling of
covered work tasks and individual work hours as the Palisades
restart effort continues. The licensee proposed mitigating actions
discussed in the ``Mitigating Strategy'' section of the Enclosure to
the February 13, 2026, submittal letter, and as supplemented by the
response to the NRC's request for additional information (RAI) dated
February 27, 2026, and the supplemental letters dated March 4, 2026,
and March 9, 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 March 13, March 16,
March 30, or April 4, 2026, for specific project groups to allow the
completion of plant restart activities at Palisades 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 various 60-day periods. In its February 13, 2026, submittal, the
licensee's proposed mitigating strategy consisted of reducing the
number of covered workers as compared to the second exemption
period, committing individuals associated with certain projects to a
rest and reset period \1\ prior to the proposed third exemption
period, and supervisory identification and assessment for fatigue
and mental alertness in covered workers. The licensee proposed a 21-
day rest and reset period where personnel identified in 10 CFR
26.4(a)(2) as Chemistry and 10 CFR 26.4(a)(4) as Maintenance and
Projects, except individuals supporting the FHE and Tesco projects,
would work no more than a maximum of 50 hours per week during the
21-day period. The licensee proposed a 29-day rest and reset period
for individuals identified in 10 CFR 26.4(a)(2) as Health Physics
supporting the plant restart and individuals identified in 10 CFR
26.4(a)(4) supporting the FHE project to work no more than a maximum
of 50 hours per week during the 29-day period. The licensee proposed
a 22-day rest and reset period for individuals identified in 10 CFR
26.4(a)(4) supporting the Tesco project to work no more than a
maximum of 50 hours per week during the 22-day period.
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\1\ The NRC staff notes that the term ``rest and reset period''
in this exemption refers to a period in which individuals are still
available to work up to a maximum of 50 hours per week.
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The NRC staff reviewed the proposed mitigating actions and
determined that they were not sufficient to prevent or mitigate
cumulative fatigue for individuals covered by 10 CFR 26.4(a)(2) and
(a)(4) during the exemption period. The proposed measures did not
provide reasonable assurance of enhanced fatigue management,
especially given that this is a third exemption request and those
workers subject to 10 CFR 26.4(a) have been transitioning in and out
of outage work hour controls for nearly 6 months, with only brief
periods of normal work hours. By letter dated February 23, 2026
(ML26058A327), the NRC staff issued a RAI to the licensee requesting
an explanation of how the proposed actions would mitigate cumulative
fatigue, and what additional actions the licensee could provide to
justify a third exemption request for another 60-day period of less
restrictive work hour controls.
The licensee submitted its response to the RAI on February 27,
2026 (ML26058A024). In response to the NRC's concerns about
cumulative fatigue across all individuals covered by the exemption,
the licensee proposed an additional minimum of 4 consecutive days
off between March 7, 2026, and May 26, 2026, for the following
groups, in addition to a 21-day reset and reset period working no
more than 50 hours per week between the second and third exemptions:
Health Physics, Mechanical Maintenance, Electrical Maintenance,
Instrumentation and Controls Maintenance, and Mechanical Seconded
Millwrights. The licensee asserts that these 4 consecutive days off
would align with the intent of 10 CFR 26.23(e), ``Performance
objectives.''
Additionally, in the RAI dated February 27, 2026, the licensee
identified that individuals in 10 CFR 26.4(a)(4) assigned to the Arc
Pipefitters group began performing work on safety significant
systems, structures, and components (SSCs) during the last week of
October 2025, followed by 10-hour shifts with weekends off during
November 2025. These individuals did not transition to outage work
hour controls until December 8, 2025, and were not included in the
groups working during the initial outage period that started August
25, 2025. The licensee asserts that the 21-day rest and reset period
from March 7, 2026, to March 27, 2026, would be effective in
mitigating cumulative fatigue for the Arc Pipefitters group.
The licensee placed the individuals assigned to the Tesco and
FHE project groups on a reset and reset period that started on
February 15, 2026, through March 8, 2026. The licensee stated that
these groups had shorter periods using the extended outage
[[Page 13075]]
work hour controls than the rest of the onsite population before
transitioning into their respective rest and reset periods. The
Tesco Projects group used 40 days of the second exemption period
before transitioning to a rest and reset period on February 15,
2026, and FHE used only 33 days of the second 60-day exemption
period before transitioning to a rest and reset period on February
8, 2026. The licensee asserts that these 22-day and 29-day rest and
reset periods would be effective in mitigating cumulative fatigue
for these two groups.
In response to the NRC's concern about cumulative fatigue for
the personnel identified in 10 CFR 26.4(a)(2) as Health Physics, the
licensee increased the rest and reset period commitment associated
with the proposed exemption request. These personnel were originally
observing a 29-day rest and reset period that started on February
15, 2026, through March 15, 2026. The licensee increased the rest
and reset period commitment for the Health Physics group of no more
than 50 hours maximum per week from 29 days to 43 days starting from
February 15, 2026, through March 29, 2026. The licensee asserts that
these mitigating strategies provide assurance that the effects of
cumulative fatigue will be minimized.
Palisades has been in an outage status since August 25, 2025,
with multiple 60-day periods of outage work hour controls.
Therefore, the NRC staff asked the licensee to develop a fatigue
recovery and monitoring plan to address the ongoing extended outage
period, the extended use of outage work hour controls, and the
associated cumulative fatigue through the end of the outage and
prior to the startup of the plant. To address the continued accrual
of fatigue accumulation, Palisades Energy will direct leadership to
evaluate schedules and provide additional time off during the
exemption period, implement a bi-weekly site-wide communication
emphasizing fatigue management and self-declaration, and ensure any
individual determined to be fatigued will be removed from work until
a break of 10 hours has been provided or a fatigue assessment
determines the individual is fit to return to their covered duties.
To monitor ongoing fatigue risk using performance indicators,
the licensee stated that supervisors are required, during outages,
to complete 10 safety observations per month using the Behavioral
Safety Observation form, which addresses human performance. The
licensee added that field supervision of these observations would
continue to be performed with an emphasis on human performance. The
licensee noted that the site is committed to using the CARE-5
performance tool. Specifically, the CARE-5 ``Take a Minute'' topic
is included in the Behavioral Safety Observation Form and addresses
fitness for duty and fatigue. The licensee stated that it will
direct field supervisors to dedicate a portion of their weekly
observations to fatigue management. In addition, the licensee will
monitor the observation program and corrective action program for
predictive indicators such as human performance errors, near-misses,
or other trends which could indicate an increased risk of accidents,
injuries, or errors of omission or commission.
In the previous exemption approved by the NRC on January 5,
2026, the licensee provided a commitment in the supplement and RAI
response which stated that Palisades Energy would enhance their
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. For the current exemption
request, the NRC staff asked the licensee to confirm if this change
was a temporary enhancement or permanent enhancement to their Human
Performance Program. The licensee confirmed that this was a
permanent change to the Human Performance Program.
The NRC staff evaluated the third proposed exemption, work
schedules, mitigating actions, and the information provided in the
RAI response. Based on the information provided in the submittal, as
supplemented, all individuals in 10 CFR 26.4(a)(2) and (a)(4) that
this exemption applies to have, at a minimum, adhered to the outage
work hour requirements in 10 CFR 26.205(d)(4). The licensee provided
information that demonstrated that during the second exemption
period, from January 3, 2026, through February 28, 2026, of the 17
positions, 6 (Chemistry, Champion Electricians, Champion Projects
Day and Night, Champion Boilermakers, and Champion Pipefitters) have
maintained a schedule at or near 54 hours per week with some
individuals in those positions exceeding 54 hours per week. During
the same period, the remaining 11 positions exceeded 54 hours per
week or worked at the maximum of 72 hours per week. The NRC staff
determined that these 11 positions would be at the highest risk for
cumulative fatigue if the proposed exemption was granted.
Palisades has been in an outage status since August 2025
implementing outage work hour controls for 60 days during the
initial outage, 46 out of the 60 days permitted during the first
exemption, and 60 days during the subsequent exemption, not
including the rest and reset periods between those 3 periods. There
are approximately 195 days over the time period from August 25,
2025, through March 6, 2026. Not including the rest and reset
periods, the individuals assigned to projects during this proposed
exemption period will have had the ability to work up to 72 hours
per week for 166 of the 195 days, which is over 85 percent of the
time since Palisades activated its Power Operations License. The NRC
staff note that Palisades Energy has utilized the outage work hour
controls for a greater period of time than non-outage work hour
controls and consider the duration and successive nature of the
exemption requests to result in the continued increase in cumulative
fatigue which can degrade an individual's ability to safely and
competently perform their duties. Some groups in the exemption did
receive additional rest and reset time outside the remaining 29
days; however, most groups identified in the exemption request also
worked more than 54 hours per week in the period immediately prior
to this proposed exemption. In this context, 54 hours refers to the
requirement specified in 10 CFR 26.205(d)(7), which would constitute
normal work hours per week.
The licensee has been using the outage work hour controls
permitted by 10 CFR 26.205(d)(4) in lieu of the non-outage work
controls of 10 CFR 26.205(d)(7). The objective of the MDO
requirements in 10 CFR 26.205(d)(4) is to ensure individuals
performing the duties described in 10 CFR 26.4(a)(1) through (a)(4)
have sufficient long-duration breaks to prevent cumulative fatigue
from degrading their ability to safely and competently perform their
duties. The individuals in this exemption have continued to extend
the use of the work hour controls in 10 CFR 26.205(d)(4) which is
set at a 60-day duration for the express purpose of preventing the
accumulation of cumulative fatigue. The two previous exemptions
granting extensions of the outage period beyond the initial 60-day
outage has increased the potential for cumulative fatigue and
fatigue-related personnel errors. The licensee addressed this in
their RAI response.
In the RAI response, the licensee increased the duration of the
rest and reset period for individuals specified in 10 CFR 26.4(a)(2)
as Health Physics. The duration of the period increased from 29 to
43 days of working no more than 50 hours per week. Health Physics
personnel utilized the outage work hour controls during the initial
outage, first exemption, and subsequent exemption period.
In response to the RAI, the licensee also provided a fatigue
recovery and monitoring plan to address the NRC staff's concerns
about the indefinite plant restart activities and uncertain duration
of the outage period. The licensee stated that they would take the
following actions outside the rest breaks in 10 CFR 26.205(d)(2) and
the minimum days off in 10 CFR 26.205(d)(4) to mitigate the
continued accumulation of fatigue: direct leadership to evaluate
their schedules, and where feasible, provide additional time off;
implement a bi-weekly, site-wide communication emphasizing fatigue
management and encouraging self-declaration; and ensure individuals
determined to be fatigued will be removed from covered work until a
break of at least 10 hours has been provided or a fatigue assessment
finds the individual fit for duty. The licensee provided three
actions to address how fatigue risk will be actively monitoring
using performance indicators including: (1) supervisors completing
10 safety observations per month using the Behavioral Observation
form, with an emphasis on human performance, (2) directing field
supervisors to dedicate a portion of their weekly observations to
fatigue management using the CARE-5 performance tool, and (3)
monitor the observation program and corrective action program for
predictive indicators of fatigue. The licensee also stated that in
addition to transitioning the remaining covered workforce to the
requirements in 10 CFR 26.205(d)(7), Palisades Energy will encourage
leadership to provide additional time off in support of fatigue
recovery and continue to approve time-off requests when feasible.
The NRC staff evaluated the provided fatigue monitoring and
recovery program and
[[Page 13076]]
determined that these actions do not provide additional reasonable
assurance that individuals will be free from the effects of fatigue
as described in 10 CFR 26.23(e). The actions specified in the plan
are appropriate fatigue management measures which should be part of
daily operations. In general, these actions should be incorporated
into the licensee's fatigue management program to ensure they have a
robust and effective fitness-for-duty program that addresses fatigue
management. Palisades Energy leadership providing additional time
off would provide additional rest for individuals during the
exemption period and at the end of the outage. However, this is
contingent on the feasibility of leadership providing the time off
and providing a definitive period of recovery prior to the start of
the plant. Under the current conditions of extended outage work hour
controls across multiple exemption periods and considering the
associated continued cumulative fatigue accumulation, the licensee's
provided fatigue monitoring and recovery program does not provide
sufficient additional reassurance during a third exemption period.
Therefore, the staff did not rely on the provisions of the
licensee's proposed fatigue monitoring and recovery program, to make
the findings necessary for this proposed exemption, even though
these provisions are considered appropriate for a fatigue management
program, in general.
For this third proposed exemption, the licensee provided a new
commitment to implement a bi-weekly site-wide communication
emphasizing fatigue management and self-declaration during the
period of the exemption. The NRC staff deems this commitment
important considering the duration of the outage period since August
25, 2025, and the extended use of outage work hour controls during
this time. As indicated in the Statement of Considerations for the
10 CFR part 26 Rule, the NRC staff notes that self-declaration and
training in fatigue management may not be implemented consistently
during outage periods, and therefore are not substitutes for work
hour controls that effectively prevent cumulative fatigue.
The NRC staff held two technical calls with the licensee on
March 3, 2026, and March 4, 2026, to address the licensee's response
to Question 1.a of the RAI. The licensee submitted a supplement to
the RAI response on March 4, 2026 (ML26063A922), providing
additional information in response to the technical calls with the
NRC. The licensee stated that the restart project involves a broader
work scope, the potential for schedule extensions, and the need to
manage cumulative worker fatigue. Unlike a normal outage, the
licensee noted that the restart project includes additional layers
of protection of public health and safety including return-to-
service plans for SSCs, the NRC's restart inspection program,
additional quality assurance and quality control requirements during
system testing and repowering, incremental mode ascension, and
surveillances required by the Power Operations Technical
Specifications. The licensee stated that these programs provide
additional protections to public health and safety by ensuring
fatigue or other factors do not result in latent errors during the
restart project in a manner that jeopardizes public health and
safety.
The NRC staff evaluated the licensee's statement addressing
public health and safety, specifically the nexus between the restart
project activities and safety. While the programs noted in the
licensee's statement provide layers of protection for public health
and safety, these programs are required to be completed to ensure
safety during the plant restart effort. However, the personnel
supporting the plant restart project have continued to work
scheduled hours which exceed the 60-day limitation for outage work
hour controls and are inconsistent with the intent of the 10 CFR
part 26 fatigue management rule. Extended outage work hour controls
and successive exemption periods reduce the protection of public
health and safety afforded by the layers of protection described
above. This reduction of the protection for public health and safety
substantially increases the potential for cumulative fatigue,
fatigue-related errors, latent errors, and human performance issues
related to fatigue, as well degrading an individual's ability to
safely and competently perform their duties.
The licensee understood the NRC's concern regarding cumulative
fatigue in the context of three successive exemption periods. By
supplemental letter dated March 4, 2026, the licensee amended two
commitments in the RAI response. The first amended commitment
increased the duration of the rest and reset period for all
individuals described in 10 CFR 26.4(a)(2) and (a)(4) from 21 days
to at least 4 weeks of working no more than 50 hours work per week.
The affected groups include Chemistry, Mechanical Maintenance,
Champion Electricians, Electrical Maintenance, Instrumentation and
Controls, Champion Project Days, Champion Projects Nights, Champion
Boilermakers, Champion Pipefitters, Champion Material Handling,
Champion Operating Engineers, Champion Painters, Arc Pipefitters,
and Mechanical Seconded Millwrights. The second amended commitment
increased the rest and reset period for individuals assigned to the
Tesco Projects group from 22 days to 29 days. The remaining
commitments in the RAI response remain unchanged.
The NRC staff evaluated the amended commitments along with the
commitments provided in original RAI response. All applicable
individuals in the third proposed exemption would receive at least 4
weeks of work hours that are less than or equal to the work hour
controls in 10 CFR 26.205(d)(7). In addition to these periods of
work hours, these individuals would continue to receive breaks
between shifts in accordance with 10 CFR 26.205(d)(2)(i) and rest
breaks per 10 CFR 26.205(d)(2)(ii). While the breaks between shifts
provide adequate opportunity for sleep, full days off provide more
opportunity for recovery sleep and time for individuals to meet
daily living obligations which if not met could result in forgoing
activities or sacrificing sleep, thus increasing their sleep debt
and resulting in impairment on the job. The increase to the rest and
reset period duration for personnel in 10 CFR 26.4(a)(2) and (a)(4)
ensures individuals working 8-hour shifts receive at least 1 day off
per week, individuals working 10-hour shifts receive at least 2 days
off per week, and individuals working 12-hour shifts receive at
least 3 days off per week for the duration of the rest and reset
period. The increased duration of the rest and reset period and
working fewer than 50 hours per week provides assurance that prior
to the proposed third exemption individuals will receive a
sufficient period of long-duration breaks to minimize cumulative
fatigue from degrading their ability to safely and competently
perform their duties.
The licensee submitted an additional supplement on March 9,
2026, that addresses information that was discussed with the NRC
during a conference call on March 6, 2026. During the conference
call, the licensee identified a need to utilize additional
supplemental worker groups on a case-by-case basis to support the
Palisades restart project activities. These additional supplemental
workers were not included in the initial third exemption request
because they are not currently performing work at Palisades. The
licensee requested that these workers, when they arrive to perform
work, be exempt from the current rest and reset period being
observed by the individuals in 10 CFR 26.4(a)(2) and (a)(4) covered
by the third exemption request. It was also requested that these
individuals be allowed to utilize the outage work hour controls in
10 CFR 26.205(d)(4) upon the start of performing duties as specified
in 10 CFR 26.4(a). The request to utilize outage work hour controls
for these additional supplemental workers is not to exceed 60 days
or June 2, 2026, whichever occurs first for each additional
supplemental worker.
The NRC staff reviewed the second supplemental letter containing
a new request for additional supplemental workers. These workers
have either not arrived at the site to perform duties specified in
10 CFR 26.4(a) or have not performed work at Palisades since January
1, 2026. For the additional supplemental workers, the licensee
stated they plan to comply with Regulatory Position C.10 from NRC
Regulatory Guide 5.73, ``Fatigue Management for Nuclear Power Plant
Personnel,'' which states, in part, that when personnel transition
between outages and the interval between successive outages is less
than 9 days, the licensee should determine if the individual has had
a 34-hour break period within the 9 days that precede the day the
individual performs work for the licensee. In addition, the licensee
should ensure the individual does not exceed 16 work hours in any
24-hour period, 26 work hours in any 48-hour period, and 72 work
hours in any 7-day period.
In addition, the licensee referenced Section 7.3,
``Transitioning Onto a Shift or Between Covered Groups or Into a
Covered Group,'' in Nuclear Energy Institute (NEI) 06-11, ``Managing
Personnel Fatigue at Nuclear Power Sites,'' Revision 1, for use by
the additional supplemental workers, which states that if an
individual begins or resumes covered work during the calculation
period, the licensee should include in the calculation
[[Page 13077]]
of the individual's work hours all work hours worked, including
hours worked performing duties that are not covered work.
The NRC staff considered that the additional supplemental
workers have not performed work at Palisades yet or since January 1,
2026. Furthermore, prior to the start of their duties, they would
receive at least a 34-hour break between successive outages and
during the period of work they would receive minimum days off as
specified in 10 CFR 26.205(d)(4). In addition, the combination of
mitigating actions and the commitments in the RAI response and
supplements, except for rest and reset period, provided by the
licensee would apply to the additional supplemental workers. This
provides additional assurance that fatigue will be minimized prior
to the additional supplemental workers' duties and managed
throughout the period of the exemption.
The NRC staff determined that the mitigating strategy to provide
a rest and recovery period prior to the proposed third exemption, in
combination with the RAI response commitments and supplemental
commitments, for individuals in 10 CFR 26.4(a)(2) and (a)(4) will
allow the licensee to adequately manage cumulative fatigue during
the third 60-day exemption period. Acute fatigue will be
sufficiently managed through the breaks between shifts in 10 CFR
26.205(d)(2)(i). Cumulative fatigue will be sufficiently managed
through the rest breaks in 10 CFR 26.205(d)(2)(ii), the minimum day
off requirements in 10 CFR 26.205(d)(4), and the licensee's
commitments to provide all individuals a minimum rest and reset
period of at least 4 weeks starting March 7, 2026, through April 3,
2026. Individuals assigned to the FHE, Tesco, and Health Physics
groups will receive a rest and rest period equal to or longer than 4
weeks that started between February 8, 2026, and February 15, 2026.
In addition, individuals at the highest risk for fatigue due to the
number of hours worked per week that are assigned to the Health
Physics, Mechanical Maintenance, Electrical Maintenance,
Instrumentation and Controls Maintenance, and Mechanical Seconded
Millwrights groups will receive a minimum of 4 consecutive days off
between March 7, 2026, and May 26, 2026, which will also reduce the
accumulation of cumulative fatigue. Because the licensee proposed
adequate alternative controls, mitigating actions, and commitments
for managing cumulative fatigue among personnel in the exemption
request for the duration of the one-time exemption, the NRC staff
determined that fatigue will be adequately managed for all specified
personnel in this exemption request and the requested one-time
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 exemption 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 an RAI to obtain additional information on the status of the
Palisades restart effort and to identify why a third exemption would
be necessary and in the public interest. Following the second
exemption approved by the NRC, the licensee stated that additional
restart-related work scope was identified which required the need
for a third exemption from the work hour requirements in 10 CFR
26.205(d)(3) and (d)(7). The proposed third exemption would provide
additional time under the less restrictive work hour limitations to
allow more flexibility for scheduling of personnel subject to 10 CFR
26.4(a). The licensee noted that this would support the purpose of
the fatigue management rule to ensure cumulative fatigue does not
compromise the ability of individuals to perform their duties safely
and competently. However, the NRC staff disagrees with the licensee
that less restrictive work hour controls would support the purpose
of the fatigue management rule. Additional time under less
restrictive work hour controls, especially over approximately 6
months of utilization, which would stretch to almost 9 months under
the proposed third exemption, could compromise an individual's
ability to perform their duties safely and competently.
Outages are a key period when supplemental workers provide
additional staffing to support the outage activities, and for many
supplemental workers the availability of overtime is a key factor in
deciding where to work. The staff considered that overtime plays a
key role for plant personnel and supplemental workers to continue
supporting the Palisades restart activities. In addition, the
decrease in work hours for applicable personnel without the
exemption could decrease the number of supplemental workers at the
plant to support restart activities. A potential loss of
supplemental workers could impact the ability of the licensee to
perform the work necessary to restore safety significant SSCs in a
timely manner.
The NRC staff considered the balance of public interest
considerations, including the potential impacts of not granting the
third proposed 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 the
continued accrual of cumulative fatigue in personnel and determined,
in Section III.B. of this exemption, that the proposed mitigating
measures ensure that the granting of the proposed exemption will not
endanger life or property.
In the supplement, the licensee stated that the requested
exemption has a nexus to improved flexibility in the scheduling,
planning, and implementation of restart activities which support the
plant's return to service before peak summer electric demand.
Palisades Energy noted that the various Michigan state entities have
urged the plant to return to service to support regional grid
reliability and resource adequacy. In addition, the licensee stated
that the U.S. Department of Energy delayed retirement of a baseload
facility in Michigan over the summer peak period to retain baseload
generation to ``help prevent the potential loss of power to homes
and local businesses in the areas that might have been affected by
curtailments or outages that would otherwise pose a risk to public
health and safety.''
The NRC staff determined that the exemption is in the public
interest because flexibility in the scheduling, planning, and
implementation of restart activities will allow the licensee to
retain and utilize the skilled personnel necessary to continue
working on the safety significant SSCs necessary to restart
Palisades in a manner that will support the timely restart of the
plant without endangering life or property. Timely restart of the
plant in a manner that does not endanger life or property is in the
public interest because the availability of this resource supports
better overall grid reliability. Therefore, the NRC staff finds that
approval of the requested exemption is otherwise in the public
interest.
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
[[Page 13078]]
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 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 March 13, March 16, March
30, or April 6, 2026, for individuals assigned to the FHE and Tesco
projects, individuals in 10 CFR 26.4(a)(2) Health Physics, or
individuals in 10 CFR 26.4(a)(2) Chemistry and (a)(4) Maintenance
not assigned to FHE or Tesco projects, respectively. 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, the rest break requirements, the mitigating actions
described in the February 13, 2026, enclosure, the commitments
described in the RAI response dated February 27, 2026, and the
amended commitments in the supplements dated March 4, 2026, and
March 9, 2026. The proposed mitigating actions, supplemental
mitigating actions, licensee commitments to limit work hours for
individuals in 10 CFR 26.4(a)(2) and (a)(4), provisions to provide
additional consecutive days off for Health Physics, Mechanical
Maintenance, Electrical Maintenance, Instrumentation and Controls
Maintenance, and Mechanical Seconded Millwrights, and commitment to
a bi-weekly site-wide communication emphasizing fatigue management
and self-declaration will adequately manage acute and cumulative
fatigue for personnel performing duties in 10 CFR 26.4(a)(2) and
(a)(4) during the third exemption period.
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 at the last date permitted for personnel
approved to use the approved 60-day outage work hour controls, which
is June 2, 2026. However, the following groups of individuals shall
return to a normal work schedule as follows: FHE personnel on May
11, 2026, Tesco personnel on May 14, 2026, and Health Physics
personnel on May 28, 2026. Furthermore, if the Palisades Nuclear
Plant is connected to the electrical grid prior to the dates
specified in this exemption for covered personnel to work outage
work hour controls, the exemption will be deemed to have expired.
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 FSAR 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 current exemption request and two prior
exemptions 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 safely return the plant to an
operational status. Regardless, the staff notes that fatigue is
cumulative, and each request for an exemption from the work hour
requirements specified in 10 CFR 26.205 are evaluated on a case-by-
case basis specific to the circumstances of the facility in light of
mitigation measures proposed to manage acute and cumulative fatigue,
the timing between outage work hour schedules, and the hours worked
by individuals.
Dated: March 13, 2026.
For the Nuclear Regulatory Commission.
/RA/
Aida Rivera-Varona,
Acting Director, Division of Operating Reactor Licensing, Office of
Nuclear Reactor Regulation.
[FR Doc. 2026-05284 Filed 3-17-26; 8:45 am]
BILLING CODE 7590-01-P