[Federal Register Volume 91, Number 117 (Thursday, June 18, 2026)]
[Notices]
[Pages 36887-36888]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-12287]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-498, 50-499, and 72-1041; NRC-2024-0169]


In the Matter of STP Nuclear Operating Company; South Texas 
Project, Units 1 and 2 and the Associated Independent Spent Fuel 
Storage Installation; Second Extension of Direct Transfer of License

AGENCY: Nuclear Regulatory Commission.

ACTION: Order; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
order to extend, until December 11, 2026, the effectiveness of a 
December 11, 2024, order, which approved the direct transfer of a two 
percent ownership interest in Renewed Facility Operating License Nos. 
NPF-76 and NPF-80 for South Texas Project, Units 1 and 2, respectively, 
and the generally licensed independent spent fuel storage installation 
from Constellation South Texas, LLC to the City Public Service Board of 
San Antonio (CPS Energy).

DATES: The extension order was issued on June 9, 2026, and was 
effective upon issuance.

ADDRESSES: Please refer to Docket ID NRC 2024-0169 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-2024-0169. Address 
questions about Docket IDs in Regulations.gov to Bridget Curran; 
telephone: 301-415-1003; email: [email protected]. For technical 
questions, contact the individual(s) 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 application for extending the direct 
transfer order is available in ADAMS under Accession No. ML26134A361. 
The order extending the approval of the direct transfer of licenses is 
available in ADAMS under Accession No. ML26149A496.
     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: Thomas Byrd, Office of Nuclear Reactor 
Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001; telephone: 301-415-3719; email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Authority: 42 U.S.C. 2011 et seq.

    Dated: June 16, 2026.

    For the Nuclear Regulatory Commission.
Thomas Byrd,
Project Manager, Operating Reactor Licensing Branch 2, Division of 
Licensing Project I, Office of Nuclear Reactor Regulation.

Attachment--Order Approving the Direct Transfer of License

United States of America

Nuclear Regulatory Commission

In the Matter of STP Nuclear Operating Company, South Texas Project, 
Units 1 and 2 and) Docket Nos. 50-498. 50-499, and 72-1041 the 
Associated Independent Spent Fuel Storage Installation) Renewed 
License Nos. NPF-76 and NPF-80

Second Extension of Order Approving Direct Transfer of License

I.

    STP Nuclear Operating Company (STPNOC) is the licensed operator, 
and the City of San Antonio, Texas, acting by and through the City 
Public Service Board of San Antonio (CPS Energy), Constellation South 
Texas, LLC (Constellation South Texas), and the City of Austin, Texas, 
are the licensed owners for Renewed Facility Operating License Nos. 
NPF-76 and NPF-80 and the general license for the independent spent 
fuel storage installation (ISFSI) (collectively, the licenses), which 
authorize the possession, use, and operation of South Texas Project 
(STP), Units 1 and 2 and the STP ISFSI, respectively (the facilities). 
The facilities are located in Matagorda County, Texas.

II.

    By Order dated December 11, 2024 (Agencywide Documents Access and 
Management System (ADAMS) Accession No. ML24319A043) (Transfer Order), 
the U.S. Nuclear Regulatory Commission (NRC, Commission) consented to 
the transfer of a 2 percent ownership interest of STP, Units 1 and 2 
and its generally licensed ISFSI from Constellation South Texas to CPS 
Energy in accordance with Title 10 of the Code of Federal Regulations 
(10 CFR) Section 50.80, ``Transfer of licenses,'' and 10 CFR 72.50, 
``Transfer of license.'' Currently, Constellation South Texas holds a 
44 percent ownership interest in the facilities, while CPS Energy holds 
a 40 percent ownership interest in the facilities. Upon completion of 
the proposed direct transfer, Constellation South Texas and CPS Energy 
would each hold a 42 percent ownership in the facilities. The proposed 
direct transfer does not involve the City of Austin's 16 percent 
ownership interest in the facilities. By its terms, the Transfer Order 
becomes null and void if the transfer is not completed within one year 
(i.e., by December 11, 2025); provided, however, that upon written 
application and for good cause shown, such date may be extended by 
order. By Order dated November 26, 2025 (ML25328A155), the NRC granted 
a six-month extension until June 11, 2026, to allow additional time to 
complete the remaining conditions to closing.

III.

    By letter dated May 14, 2026 (ML26134A361), STPNOC, acting on 
behalf of CPS Energy and Constellation South Texas (collectively, the 
Applicants), requested that the NRC extend by an additional 6 months, 
until December 11, 2026, its prior approval of the direct transfer of a 
2 percent ownership interest of Renewed Facility Operating License Nos. 
NPF-76 and NFP-80 for South Texas Project, Units 1 and 2 and the 
general license for the STP Independent Spent Fuel Storage Installation 
between two of its existing owner-from Constellation South Texas, LLC 
to CPS Energy. As stated in the application, the requested second 
extension is due to STPNOC continuing to work to obtain a private 
letter ruling (PLR) or other binding guidance from the Internal Revenue 
Service (IRS) addressing the tax treatment of the nuclear 
decommissioning trust funds--which are qualified funds under Section

[[Page 36888]]

468A of the Internal Revenue Code--following the transfer of funds from 
Constellation South Texas to CPS Energy described in the Application. 
The Applicants stated that they are diligently working with the IRS to 
obtain a closing agreement that will clarify the tax treatment and 
allow the transaction to close. Additionally, the Applicants stated 
that the extension request does not change the scope of the initial 
Application, and there have been no material changes in the conditions 
upon which the NRC relied in issuing the Transfer Order and 
accompanying safety evaluation.
    Based on the above, the NRC staff has determined that the 
Applicants have shown good cause for extending the effectiveness of the 
Transfer Order from June 11, 2026 to December 11, 2026.

IV.

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended, 42 U.S.C. 2201(b), 2201(i), 
2201(o), and 2234; and 10 CFR 50.80 and 10 CFR 72.50, it is hereby 
ordered that that the effectiveness of the Transfer Order dated 
December 11, 2025, is extended until December 11, 2026.
    It is ordered that after receipt of all required regulatory 
approvals of the proposed transaction, the Applicants shall inform the 
Director of the Office of Nuclear Reactor Regulation in writing of such 
receipt no later than 5 business days prior to the planned closing of 
the proposed transaction. Should the proposed transaction not be 
completed by December 11, 2026, this order shall become null and void, 
provided, however, that upon written application to the Director of the 
Office of Nuclear Reactor Regulation and for good cause shown, such 
date may be extended by order. The condition of this order may be 
amended upon application by the Applicants and approval by the NRC.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the application 
dated July 31, 2024, and the associated NRC safety evaluation dated 
December 11, 2024 (ML24319A034). Publicly available documents created 
or received at the NRC are accessible electronically through ADAMS in 
the NRC Library at http://www.nrc.gov/reading-rm/adams.html. Persons 
who do not have access to ADAMS or who encounter problems in accessing 
the documents located in ADAMS, should contact the NRC Public Document 
Room reference staff by telephone at 1-800-397-4209, or 301-415-4737, 
or by email to [email protected].

    Dated: June 9, 2026

    For the Nuclear Regulatory Commission.

/RA/

Aida Rivera-Varona, Director Division of Operating Reactor Licensing 
Office of Nuclear Reactor Regulation

[FR Doc. 2026-12287 Filed 6-17-26; 8:45 am]
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