[Federal Register Volume 91, Number 120 (Wednesday, June 24, 2026)]
[Notices]
[Pages 38035-38040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-12660]
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
[Docket No. 50-255; NRC-2026-3136]
Palisades Energy, LLC; Palisades Nuclear Plant; Exemption
AGENCY: Nuclear Regulatory Commission.
ACTION: Notice; issuance.
-----------------------------------------------------------------------
SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) has issued an
exemption in response to a request dated May 27, 2026, as supplemented
on June 4, 2026, and June 13, 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 until 9 days before the start of the
unit's initial fuel load into the reactor for various covered
individuals as described in the exemption.
DATES: The exemption was issued on June 18, 2026.
ADDRESSES: Please refer to Docket ID NRC-2026-3136 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-2026-3136. 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 is available in ADAMS under
Accession No. ML26147A163, and the supplements are available at
ML26155A278 and ML26167A029, respectively.
[[Page 38036]]
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.
Authority: 42 U.S.C. 2011 et seq.
Dated: June 18, 2026.
For the Nuclear Regulatory Commission.
Marlayna Doell,
Project Manager, Operating Reactor Licensing Branch 3, Division of
Licensing Projects 1, 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.
Palisades Energy became subject to 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 hours,'' after
Palisades entered an outage status on August 25, 2025. The
regulatory history of the Palisades restart effort as it relates to
the work hours requirements is presented in the exemption issued on
March 18, 2026 (91 Federal Register [FR] 13073). In summary,
pursuant to 10 CFR 26.205(d)(4), during the first 60 days of a unit
outage licenses are permitted to use the work hours controls
specified in 10 CFR 26.205(d)(4) in lieu of the normal work hour
controls in 10 CFR 26.205(d)(3) or (d)(7). Following the initial 60-
day outage period, Palisades Energy submitted three sequential
exemptions from the work hour requirements in 10 CFR 26.205(d)(3)
and (d)(7). Each exemption requested the NRC grant an exemption for
an additional 60-day period, such that the licensee could continue
to use the outage work hours controls specified in 10 CFR
26.205(d)(4) in lieu of the normal work hour controls in 10 CFR
26.205(d)(3) and (d)(7). The licensee asserted that the reason for
the previously requested exemptions was to support completion of
restart activities for the plant.
The NRC approved the previous exemptions to permit the use of
the less restrictive outage work hour limits, as supplemented, each
time. The initial less restrictive work hour limits period at
Palisades started on August 25, 2025, and lasted until October 23,
2025, followed by the first exemption period lasting from November
3, 2025, to January 1, 2026, subsequently followed by the second
exemption period lasting from January 6, 2026, to March 6, 2026, and
lastly followed by the third exemption period lasting from April 4,
2026, to June 2, 2026. However, between each successive exemption
the licensee committed to increasingly more mitigative actions to
minimize the cumulative fatigue in the workforce over the 9-month
period since August 2025. In the issuance for each exemption, the
NRC staff stressed that the Palisades restart project is a first-of-
a-kind activity, and the exemptions were granted with specific
consideration of the hours worked by each work group prior to the
issuance of each exemption. In addition, the staff noted that
fatigue is cumulative, and each request for an exemption was
evaluated on a case-by-case basis specific to the circumstances of
the facility in light of the mitigation measures proposed to manage
acute and cumulative fatigue, the timing between outage work hour
schedules, and the hours worked by individuals.
The third exemption was extended by letter dated June 5, 2026
(Agencywide Documents Access and Management System (ADAMS) Accession
No. ML26156A112), and concludes upon the NRC staff's final
determination on this exemption request.
II. Request/Action
By letter dated May 27, 2026 (ML26147A163), the licensee
requested a one-time exemption from the Fitness for Duty (FFD)
Program requirements in Paragraph (a) of 10 CFR 26.3, ``Scope,''
pursuant to 10 CFR 26.9, ``Specific exemptions.'' Specifically, the
licensee requested a schedular exemption from the requirements of 10
CFR 26.3(a) to allow Palisades Energy to defer implementation of the
work hour controls in Subpart I, ''Managing Fatigue,'' of 10 CFR
part 26 until 9 calendar days before the start of the unit's initial
fuel load into the reactor with several mitigating measures that are
proposed in the exemption request. The exemption is requested to
apply to individuals performing duties specified in 10 CFR
26.4(a)(1) Operations, (a)(2) Health Physics or Chemistry, (a)(3)
Fire Brigade, and (a)(4) Maintenance starting on the day the
exemption is issued and terminating 9 calendar days prior to initial
fuel load. Based on the mitigating measures proposed, the NRC staff
determined that the licensee was requesting a limited exemption from
the work hour requirements specified in 10 CFR 26.205(d)(3) and
(d)(7). The licensee clarified and confirmed in an email to the NRC
on June 13, 2026 (ML26167A029), that the proposed exemption would be
a tailored exemption from the work hour requirements specified in 10
CFR 26.205(d)(3) and (d)(7). Palisades Energy stated that they will
continue to comply with the remaining provisions and requirements of
10 CFR part 26 for the duration of the exemption period.
The licensee is subject to the work hour requirements in 10 CFR
part 26, subpart I. Previously, the licensee submitted a series of
licensing and regulatory actions to restore the plant's licensing
basis to the one in effect just prior to permanent shutdown,
including an exemption (ML23271A140) to rescind the certifications
of permanent cessation of operations and permanent removal of fuel
from the reactor vessel. The NRC approved these actions concurrently
on July 24, 2025, including the exemption (ML25196A089) to
reauthorize power operations at Palisades. The licensee implemented
the exemption (ML25237A317) on August 25, 2025, to obtain the
authority to operate. The authority to operate, combined with the
presence of fuel assemblies on site, subjects a 10 CFR part 50
licensee to more rigorous FFD requirements. Palisades Energy is
currently in possession of both new fuel assemblies and spent fuel
located in the spent fuel pool (SFP), which increases the
radiological risk associated with the plant when compared to a plant
with only new fuel assemblies on site or a site under construction.
Furthermore, there is activated material containing residual
radioactivity in the controlled area from prior nuclear operations
at Palisades. Palisades Energy has submitted the current exemption
to support the remaining outage and restart activities, which the
licensee states need to be completed before initial fuel load.
III. 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 exemption, as tailored, would authorize a one-time exemption
from the requirements of 10 CFR 26.205(d)(3) and (d)(7) for
personnel performing duties under 10 CFR 26.4(a)(1), (a)(2), (a)(3),
and (a)(4) for the duration of the exemption period until 9 days
before the start of the unit's initial fuel load into the reactor to
allow completion of restart activities at Palisades without
violating NRC regulations. The exemption is applicable to
individuals performing duties specified in 10 CFR 26.4(a)(1),
(a)(2), (a)(3), and (a)(4). As stated, 10 CFR 26.9 allows the NRC to
grant exemptions from the requirements of 10 CFR part 26. After
reviewing the exemption, 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.
[[Page 38037]]
B. The Exemption Will Not Endanger Life or Property
The exemption would authorize a tailored one-time exemption from
the requirements of 10 CFR 26.205(d)(3) and (d)(7) for personnel
performing duties under 10 CFR 26.4(a)(1), (a)(2), (a)(3), and
(a)(4) for the duration of the exemption period until 9 days before
the start of the unit's initial fuel load into the reactor to
support final restart activities. The proposed exemption from the
requirement in 10 CFR 26.3(a) would allow Palisades Energy to defer
implementation of their FFD program until 9 calendar days before the
start of the unit's initial fuel load into the reactor. In the
submittal, the licensee re-evaluated the duration necessary to
support the remaining restart and outage activities, determining
that a fourth exemption would be required. Palisades Energy asserted
that ``the requested exemption period will provide necessary
flexibility in scheduling covered work activities and personnel
resources during the final stages of pre-fuel-load restart work.''
The licensee stated that the flexibility provided during the
exemption would support effective management of cumulative fatigue
while allowing critical restoration, testing, and configuration
activities to be completed safely and efficiently. Furthermore, the
licensee asserted that the ``proposed exemption supports maintaining
the ability of covered individuals to perform their duties safely,
competently, and with appropriate attention to human performance
considerations.''
Based on the initial submittal, the NRC staff understood
Palisades Energy's proposed deferral of its implementation of the
FFD program at Palisades, as described in the proposed exemption
request, to refer specifically to the implementation of the work
hour control requirements in Subpart I of 10 CFR part 26. However,
the staff issued a request for confirmatory information (RCI) on
June 4, 2026, to be sure that no other 10 CFR part 26 requirements
were requested to be deferred in this exemption (ML26159A267). The
licensee confirmed the staff's understanding in a response to the
RCI on June 4, 2026, stating that ``the one-time exemption would
allow Palisades Energy to defer implementation of the work hour
controls contained in 10 CFR part 26, subpart I, until 9 calendar
days before the start of initial fuel load into the reactor, in lieu
of implementing those requirements before receipt of special nuclear
material in the form of fuel assemblies as specified in 10 CFR
26.3(a)'' (ML26155A278). Additionally, Palisades Energy confirmed
that the schedular exemption does not request a relaxation in the
other FFD program requirements specified in 10 CFR part 26 Subparts
A through H, N, and O. Palisades personnel in this exemption who
receive unescorted access per 10 CFR 26.4, ``FFD program
applicability to categories of individuals,'' will continue to
comply with the applicable regulations in 10 CFR part 26, except for
Subpart I, which will ensure that individuals remain fit for duty
and free of any substance or cause that adversely affects or
degrades alertness for individuals' abilities to safely and
competently perform their duties.
On June 12, 2026, the NRC staff requested further clarification
from the licensee to understand the intent of the exemption request.
Specifically, the staff asked the licensee if 10 CFR 26.3(a) would
be the appropriate requirement from which to grant an exemption.
Based on the mitigation measures proposed in the initial exemption,
it is the staff's understanding that it was the licensee's intention
to obtain a similar exemption to the previous exemptions that
provided exemption from the requirements of 10 CFR 26.205(d)(3) and
(d)(7). In contrast to the previous exemptions, the licensee
requested to extend the duration of the current exemption until 9
calendar days before initial fuel load in the unit's reactor. The
licensee provided a response electronically to the NRC on June 13,
2026, stating that they understand that the exemption would be
reviewed as a tailored exemption from work hour requirements
specified in 10 CFR 26.205(d)(3) and (d)(7) rather than the entirety
of 10 CFR 26, Subpart I. Palisades Energy stated that they will
continue to comply with the remaining provisions and requirements of
10 CFR part 26 for the duration of the exemption period.
The exemption allows the licensee to continue to use the outage
work hour controls in Subpart I of 10 CFR part 26 until 9 calendar
days before the start of the unit's initial fuel load into the
reactor for specific personnel. The exemption request will apply to
personnel performing duties described in 10 CFR 26.4(a)(1)
Operations, (a)(2) Health Physics or Chemistry, (a)(3) Fire Brigade,
and (a)(4) Maintenance. Palisades Energy stated that these personnel
would support remaining work activities to support safe restart
including equipment restoration, integrated testing, configuration
management, emergent corrective activities, inspections,
troubleshooting, post-maintenance testing, and system turnover
activities. In addition, the licensee noted that these activities
are inherently difficult to schedule with precision and that the
exact duration necessary to complete the remaining pre-fuel-load
activities cannot be accurately predicted due to the potential for
discovery of emergent conditions.
Palisades Energy stated that the major remaining work prior to
fuel load includes instrument air compressor replacement, main feed
pump turbine rotor replacement, fuel handling system upgrades,
switchyard restoration activities, and valve maintenance and
restoration work. Palisades Energy stated that these activities
often require discovery and resolution of previously unidentified
conditions. In addition, the licensee noted that completion of one
activity can establish prerequisites for subsequent testing or
restoration activities; this may lead to schedule uncertainty that
cannot be fully resolved in advance.
The licensee stated that the requested exemption period is
limited to pre-fuel-load restart activities while the reactor
remains defueled and the plant is not operating in a licensed
operating mode. During the requested exemption, the licensee noted
that there will be no fuel loaded into the reactor vessel. Palisades
Energy asserted that, as a result of there being no fuel in the
reactor vessel, there was no risk associated with reactor
criticality, power operation, or fuel damage resulting from reactor
operations. As described earlier, the remaining activities to be
completed are primarily focused on maintenance, restoration,
modification, testing, and equipment turnover activities. The
licensee noted that these activities continue to require appropriate
human performance and supervisory controls. However, Palisades
Energy asserted that the plant condition during the requested
exemption period presents ``substantially lower nuclear safety risk
than fueled or operating conditions.''
The NRC staff note that repetitive successive exemptions from
the 10 CFR part 26 work hour requirements is not common practice.
The staff previously assessed the safety basis of work hour
exemptions requested for Palisades as having the same risk of an
operating plant in an outage. The NRC staff evaluated each
successive exemption based on the escalating mitigative measures to
address the risk profile of workers at an operating plant
accumulating significant cumulative fatigue. However, after the
third exemption, the staff reconsidered the nuclear safety risk of
these exemptions. Therefore, the NRC staff conducted a risk
assessment for the current exemption using supporting data from the
U.S. NRC Level 3 Probabilistic Risk Assessment (L3PRA) Project
(ML26078A044), currently in draft, to evaluate the risk profile of
the current fuel configuration and plant status at Palisades. While
the L3PRA project is in draft, its underlying data is sufficient to
support the staff's analysis of this exemption.
The NRC staff considered that restart activities at a previously
decommissioning power reactor have an increased radiological risk
compared to a site under construction because there may be spent
fuel in the SFP or residual radioactivity in various structures,
systems, and components (SSCs) that were in use during the plant's
operation. The staff note that there are unique radiological risks
associated with restart operations at previously decommissioning
nuclear power reactors; however, the nuclear safety risk to the
public health and safety as it relates to offsite consequences is
considerably lower when compared to operating reactors because the
core is not loaded, the spent fuel at Palisades has not been
recently irradiated, and the spent fuel has had considerable time to
cool. The staff note that the NRC considers spent fuel to be
typically cooled for at least five years before transfer to dry
storage (ML050110277). At the time of this exemption request, the
Palisades spent fuel has been cooling for at least 4 years since the
NRC docketed the licensee's 10 CFR 50.82(a) decommissioning
certifications. The NRC staff determined that because the spent fuel
has been cooling for at least 4 years, it represents alower risk to
public health and safety than recently irradiated fuel.
Paragraph 26.3(a) of 10 CFR, states, in part, that licensees who
are authorized to operate a nuclear power reactor shall comply with
the requirements of this part and implement the FFD program before
the receipt of fuel assemblies. In the section-by-section analysis
[[Page 38038]]
for the 2008 final rule establishing the requirements in 10 CFR
26.3(a), the NRC stated that ``once fuel assemblies have arrived on
site, the full range of potential risks to public health and safety
and the common defense and security that Part 26 is designed to
avert are possible. Therefore, the NRC believes that a more rigorous
FFD program must be in place at this time'' (73 FR 16966; March 31,
2008). Because Palisades has a combination of irradiated nuclear
fuel on site, residual radioactivity from prior operations, and the
present authority to operate, the risk to public health and safety
is higher compared to a licensee engaging in construction or
decommissioning individually.
Under the current regulatory framework for 10 CFR part 26,
certain licensees or entities may not have to comply with Subpart I
or Subpart K, ``FFD Program for Construction.'' Licensees or
entities who do not have to comply with Subpart I include combined
license (COL) applicants with a limited work authorization, COL
holders before the Commission has made a finding under Paragraph (g)
of 10 CFR 52.103, ``Operation under a combined license,''
construction permit (CP) applicants, CP holders, and early site
permit holders as described in 10 CFR 26.3(c). Additionally,
individuals with unescorted access specified in 10 CFR 26.4(a) do
not comply with Subpart I until the licensee receives the authority
to operate and has receipt of fuel assemblies, except for security
personnel in 10 CFR 26.4(a)(5) who comply with Subpart I upon
receipt of fuel assemblies. In addition, licensees who fall under 10
CFR part 70, ``Domestic Licensing of Special Nuclear Material,'' do
not have to comply with either Subpart I or K as described in 10 CFR
26.3(b). Licensees or entities who do not have to comply with
Subpart K include those who receive authority to operate or have a
COL where the Commission has made a finding under 10 CFR 52.103(g).
Palisades was a decommissioning nuclear power plant that did not
have the authority to operate after the licensee certified permanent
cessation of operations and permanent removal of fuel from the
reactor vessel in 2022 (ML22164A067), which meant the plant no
longer fell under the scope requirements of 10 CFR 26.3(a).
Decommissioning reactors do not have the authority to operate,
meaning they also do not have to comply with the work hour controls
in 10 CFR part 26, subpart I. However, upon reactivation of the
Palisades power operations license on August 25, 2025, the licensee
had both fuel assemblies and the authority to operate. Therefore,
the regulations in Subpart I of 10 CFR part 26 immediately applied.
Based on the plant configuration of Palisades, the most
significant immediate nuclear safety risk to the public health and
safety is associated with the SFP. The plant currently has both
spent fuel and new fuel assemblies in the spent fuel pool. The
introduction of irradiated nuclear fuel that is placed in a
configuration and environment that enables reactor operation, such
as placing the fuel into the reactor vessel, introduces further
nuclear safety risks from the current plant configuration. In the
supporting data used by the staff for the exemption, the U.S. NRC
L3PRA project determined that the Spent Fuel Uncovery Frequency is
6.1E-7 for a two-unit pressurized-water reactor reference plant,
which is a much larger reactor footprint than the single unit
Palisades facility. This frequency represents a very low probability
that the spent fuel will uncover within a year for an operating
reactor. Furthermore, because the spent fuel at Palisades has had
significant time to cool, the time needed for a potential release
from an initiating event would be much longer and the potential
release would be significantly lower than what was considered in the
L3PRA data. Compared to a plant under construction, this is an
increase in radiological risk, but the risk level is significantly
lower than a reactor at power or in a refueling outage.
The NRC staff also note that because Palisades was an operating
nuclear power reactor prior to decommissioning, the radiological
risk to personnel engaging in restart activities is not zero because
irradiated material may remain in existing SSCs. The irradiated
material in existing SSCs at Palisades is equivalent to the level of
irradiated material during decommissioning, in which there are no
work hour control requirements. However, the activities and the
scope of work associated with the restart effort is different from
decommissioning. At Palisades, the personnel engaging in restart
activities are actively working to return these existing and
irradiated SSCs to service, which may cause the plant personnel to
be exposed to radiation while performing restoration of SSCs in a
different manner than during decommissioning activities. While
performing the restoration of SSCs, plant personnel may be required
to enter into high radiation environments that they would not enter
during either operations, refueling, or decommissioning activities.
Furthermore, these restoration activities have the potential to
introduce latent defects that could become operational issues.
The combination of the risks associated with refurbishment
activities in support of restart while working among SSCs that may
have residual radioactivity causes the radiological risks to be
cumulatively higher than both decommissioning and construction
activities individually. The NRC staff notes that the continued
applicability of the 10 CFR part 26, subpart I work hours controls
requirements with a tailored exemption to the requirements in 10 CFR
26.206(d)(3) and (d)(7) is more restrictive than would be present
during either decommissioning or construction.
Through the staff's risk assessment, the NRC determined that
there is no risk from reactor criticality, power operations, or fuel
damage as a result of power operations. However, within the SFP, the
risk of fuel damage is not zero. Spent fuel continues to have some
level of radiation, which is a risk for the personnel on site but
represents a lower risk to the public health and safety due to the
duration of cooling. Similarly, spent fuel or new fuel can be
damaged as a result of being moved or dropped if manipulated
inappropriately within the SFP. However, the risk to the public
health and safety is considerably lower given the duration of time
the spent fuel has cooled. Based on these considerations, the NRC
staff determined that due to the plant configuration and risk
considerations for Palisades, the exemption presents substantially
less nuclear safety risk to the public health and safety than an
operating reactor because the spent fuel at Palisades has had
considerable time to cool and is not recently irradiated.
Palisades Energy provided a mitigation strategy containing
several mitigating actions and three commitments in the exemption
request. The licensee asserted that Palisades Energy will
``reasonably manage acute and cumulative fatigue during the restart
period through administrative controls, supervisory oversight, work
management processes, and fitness for duty program implementation.''
For managing acute and cumulative fatigue during restart activities,
the licensee proposed three commitments for the duration of the
exemption: (1) individuals performing duties in 10 CFR 26.4(a)(1),
(a)(2), (a)(3), and (4) will remain subject to the requirements
specified in 10 CFR 26.205(d)(1), (d)(2), and (d)(4), (2)
individuals in 10 CFR 26.4(a)(1), (a)(2), (a)(3), and (a)(4) will
transition to compliance with 10 CFR part 26, subpart I 9 calendar
days prior to initial fuel loading, and (3) Palisades Energy will
dedicate a portion of weekly supervisory observations to fatigue
awareness, fatigue indicators, fitness-for-duty behaviors, and
worker readiness. The other mitigating actions in the licensee's
submittal include: scheduling practices intended to provide
reasonable opportunities for restorative sleep; monitoring of
extended work durations, consecutive workdays, and shift rotations;
periodic management assessment of organizational workload and
staffing adequacy; use of additional qualified personnel and
supplemental resources as necessary; evaluation of fatigue-related
concerns entered into the corrective action program; and continued
use of established procedures and programs.
The licensee has also provided behavioral observation program
enhancements during the period of the exemption to ``compensate for
the temporary absence of work hour controls'' under certain portions
of 10 CFR part 26, subpart I. These enhancements include: a
commitment to dedicate a portion of weekly supervisory observations
to fatigue awareness, fatigue indicators, FFD behaviors, and worker
readiness; increased supervisory and management engagement in the
field; reinforcement of individual responsibility to identify and
report signs of fatigue; and reinforcement of stop-work authority
and conservative decision making. Palisades Energy stated that when
fatigue concerns are identified, supervisors will take actions
commensurate with the observed condition. Actions may include
additional monitoring, temporary work restrictions, removal from
safety-significant activities, schedule modification, or time off to
obtain restorative sleep prior to returning to duty. Lastly,
regarding scheduling, the licensee asserted that it will continue to
maintain work hours for covered individuals as low as reasonably
achievable.
[[Page 38039]]
The NRC staff evaluated the content of the exemption request,
the unique conditions of the activities to restart a reactor
previously in decommissioning status, and mitigating actions. The
staff notes that the mitigating actions, as stated, indicated that
the licensee intends to continue to comply with 10 CFR part 26,
subpart I. Based on this, the licensee confirmed it was only seeking
an exemption from 10 CFR 26.205(d)(3) and (d)(7) and that it was not
seeking an exemption from the remainder of 10 CFR part 26, subpart
I. Based on the information provided in the submittal and the
continued applicability of 10 CFR part 26, subpart I, individuals
identified in 10 CFR 26.4(a)(1), (a)(2), (a)(3), and (a)(4) will, at
a minimum, continue to perform restart activities until 9 days
before initial fuel load using the outage work hour controls in 10
CFR 26.205(d)(4), the maximum work hour limitations in 10 CFR
26.205(d)(1), and the rest breaks in 10 CFR 26.205(d)(2).
The licensee indicated that initial fuel loading is scheduled
for September 2026. However, as Palisades Energy has indicated,
scheduling with precision is difficult, thus it is possible that the
scheduled date may be modified based on the progress of restart
activities, which could lead to a shorter or longer exemption
period.
The NRC staff reviewed the mitigating actions and evaluated them
against the risk profile of Palisades. The commitments which
Palisades Energy intends to address fatigue management concerns
during the exemption period are: (1) a commitment to comply with 10
CFR 26.205(d)(1), (d)(2), and (d)(4); (2) a commitment to dedicate a
portion of weekly supervisory observations to fatigue; and (3) the
commitment to return to compliance with normal work hour controls 9
calendar days prior to initial fuel load. The first two mitigating
actions are a requirement for all licensees subject to Subpart I of
10 CFR part 26, which Palisades Energy will continue to be subject
to during this exemption period. The third mitigating action is a
requirement that provides a limited exception from 10 CFR
26.205(d)(3) or (d)(7) for 60-days, usually for unit outages. The
NRC staff notes that, because these commitments are existing
requirements in 10 CF Part 26 for operating reactors, compliance
with the NRC regulations provides reasonable assurance in normal
operating conditions.
However, while Palisades is not in normal operating conditions,
the licensee recognized the need for the ongoing restart activities
to have an appropriate level of human performance and supervisory
controls provided by the Subpart I requirements in 10 CFR part 26.
Palisades Energy therefore requested a new exemption to extend the
duration of the 10 CFR 26.205(d)(4) outage work hours controls until
9 days before initial fuel loading. During the 9 days before initial
fuel loading, the licensee has committed to a mitigating action that
aligns with the 9-day lookback period in 10 CFR 26.205(d)(2)(ii),
which requires individuals to receive a minimum 34-hour break in any
9-day period. By complying with the 10 CFR part 26, subpart I work
hour controls in full at least 9 days before initial fuel load, the
licensee ensures that individuals performing safety-significant work
have adequate rest immediately prior to fuel load, whereupon plant
risk increases.
In considering the question of risk level and the commensurate
level of mitigating actions appropriate to the unique plant
circumstances at Palisades, the NRC staff considered a CP holder, a
CP holder after fuel has been received, a decommissioning power
reactor, a power reactor in a refueling outage, and an operating
reactor. The Subpart I work hour controls do not apply to licensees
with a CP, who fall under Subpart K of 10 CFR part 26. CP holders
who receive fuel assemblies begin to comply with work hour controls,
but only for security personnel. When Palisades entered
decommissioning, it no longer fell under the requirements of 10 CFR
part 26; however, upon reactivating the power operations licensing
basis, 10 CFR part 26, subpart I immediately applied. The staff
determined that the potential nuclear safety risk to public health
and safety was lower when compared to an operating reactor but
higher than during decommissioning and construction. The risk level
is significantly low enough to reasonably consider that the risk
posed to public health and safety can be adequately managed by the
licensee through its compliance with the requirements applicable for
outage work hour controls in 10 CFR part 26, subpart I for the
duration of the exemption for the covered individuals. The continued
applicability of the 10 CFR part 26, subpart I work hour
requirements, with this tailored exemption, is more restrictive than
a licensee with a CP after receiving fuel would have to comply with,
or a nuclear power reactor in decommissioning. However, because
Palisades is a licensed 10 CFR part 50 operating reactor, 10 CFR
part 26, subpart I still applies in full to all personnel outside
the scope of the proposed exemption.
Based on the unique circumstances associated with restarting a
decommissioning power reactor and the NRC's risk assessment given
the fuel configuration, the staff conclude that the resulting
fatigue during the exemption period and the potential for human
error as a result of fatigue has a minimal likelihood of resulting
in immediate radiological consequences that could impact offsite
public health and safety.
The Palisades exemption request is a tailored and limited
exemption to specific requirements in 10 CFR part 26, subpart I to
use the outage work hour controls. The continued applicability of
the remainder of 10 CFR part 26, subpart I provides assurance that
Palisades Energy will reasonably manage acute and cumulative fatigue
to ensure individuals are able to safely and competently perform
their duties commensurate with the risk specific to the Palisades
restart and their importance to public health and safety. Therefore,
based on the staff's risk assessment, continued applicability of the
remainder of Subpart I to 10 CFR part 26, and the unique
circumstances of restarting a decommissioning power reactor, the NRC
determined that fatigue will be adequately managed for all specified
personnel in the exemption request based on the risk profile of the
plant during restart activities prior to fuel load and the requested
one-time exemption will not endanger life or property.
C. The Exemption Will Not Endanger the Common Defense and Security
The exemption would authorize a tailored one-time exemption from
the requirements of 10 CFR 26.205(d)(3) and (d)(7) for the duration
of the exemption period until 9 days before the start of the unit's
initial fuel load into the reactor. The licensee noted that
individuals performing duties in 10 CFR 26.4(a)(5) are not within
the scope of the exemption request. In response to the NRC staff's
RCI, Palisades Energy confirmed there will be no change to
compliance with 10 CFR part 26, subparts A through H, N and O.
Furthermore, the licensee will remain subject to all other
requirements in 10 CFR part 26, subpart I not included in this
exemption. Nor does the request 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, and appropriately tailored, exemption would
authorize a one-time exemption from the requirements of 10 CFR
26.205(d)(3) and (d)(7) for personnel performing duties under 10 CFR
26.4(a)(1), (a)(2), (a)(3), and (a)(4) for the duration of the
exemption period until 9 days before the start of the unit's initial
fuel load into the reactor to support final restart activities. In
considering whether the requested exemption would be in the public
interest, the NRC 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 nature of the licensee's unique
situation as a first-of-a-kind project involving the transition of a
nuclear power reactor from decommissioning status to power
operations. Palisades Energy indicated that the remaining work
activities prior to fuel load include equipment restoration,
integrated testing, configuration management, and emergent
corrective maintenance activities. The licensee asserted that the
approval of the exemption would be in the public interest ``because
it supports the safe and orderly completion of remaining pre-fuel-
load restart activities while maintaining appropriate fatigue
management controls and experienced work teams.'' In addition,
Palisades Energy stated the scheduling flexibility would support
continuity of work activities and allow plant management to more
effectively manage cumulative fatigue during the final stages of
restart preparation.
Additionally, Palisades Energy asserted that maintaining limited
flexibility under the less restrictive outage work hour controls
described in 10 CFR 26.205(d)(4) is necessary to safely complete the
remaining restart work and respond appropriately to emergent
conditions without introducing unnecessary schedule-driven risk. The
licensee stated that imposing online work hour controls during
[[Page 38040]]
this period could ``require additional personnel turnover, reduced
schedule continuity, or reassignment of experienced workers during
critical restoration and testing activities.'' Palisades Energy also
asserted that the imposition of online work hour controls could
adversely affect human performance, configuration control, work
coordination, and troubleshooting effectiveness during final plant
restoration activities.
Under the proposed exemption, personnel would be able to
continue to utilize the outage work hour controls in 10 CFR
26.205(d)(4) until 9 days before initial fuel load. The licensee
considers that the ``scheduling flexibility'' provided by the outage
work controls supports more effective management of cumulative
fatigue. The NRC staff disagrees that further use of the outage work
hour controls support the intent and purpose of 10 CFR part 26,
subpart I. However, the nature and associated risk of returning a
decommissioning plant to power operations was not considered during
the development of the 2008 final rule for 10 CFR part 26. Palisades
is in the unique position of being a licensed nuclear power reactor
but falling into a risk profile somewhere between a construction
site, a decommissioning site, a refueling outage, and an operating
reactor. While Palisades is not a construction site, the NRC staff's
risk assessment found that the risk of offsite consequences to
public health and safety from a decommissioning plant being actively
returned to power operations is considerably lower than an operating
reactor. For personnel on site, the possibility of radiological
exposure is higher than compared to a site under construction or in
decommissioning because there are irradiated materials on site from
prior operations, but for the public health and safety around the
plant the radiological risk is substantially lower when compared to
an operating plant.
The NRC staff also considered the balance of public interest
considerations, including the potential impacts of not granting the
fourth 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 FFD requirements in 10 CFR part 26 take a graded approach by
imposing requirements that are commensurate with maintaining public
health and safety and the common defense and security. The
underlying purpose of the work hour requirements in 10 CFR part 26,
subpart I, as they apply to an operating reactor, such as Palisades,
is to ensure that individuals performing duties that could affect
public health and safety or the common defense and security obtain
adequate rest, and that their fatigue is adequately managed to
reduce the incidence of human errors. For these operating power
plants, reliable human performance is necessary to mitigate the
potential for an accident across a range of plant conditions
including recently and highly irradiated fuel either in the reactor
core or in the SFP. However, even though Palisades is an operating
reactor, the NRC staff has analyzed the risk profile of the current
configuration of the plant and determined that the granting of this
exemption would not endanger life or property in Section III.B of
this exemption.
Unlike an operating reactor, the reactor vessel at Palisades is
still defueled and the irradiated spent fuel held in the SFP has
cooled since the docketed certifications for permanent cessation of
operations and permanent removal of fuel from the reactor vessel on
May 20, 2022, and June 10, 2022, respectively. As the spent fuel has
not been recently irradiated, the spent fuel on site has a
significantly lower nuclear safety risk to public health and safety.
Specifically, the NRC staff notes that the risk posed to the public
health and safety is greater than a CP holder upon receipt of fuel
assemblies and a nuclear power reactor in decommissioning, but lower
than an operating reactor because the spent fuel has had significant
time to cool and the reactor is not fueled. Additionally, because
there is activated material at Palisades from previous operations,
there are unique risks associated with returning SSCs to an operable
status while working in areas with various levels of radioactivity.
The staff evaluated the unique nature of the Palisades restart
project, the continued applicability of the remaining requirements
of 10 CFR 26, Subpart I, and the remaining work activities against
the risk profile of the plant and the balance of public interest
considerations. The NRC determined that applying a graded approach
to FFD requirements that accounts for the nuclear safety risk of the
plant configuration would be in the public interest until 9 days
before fuel load. Therefore, the NRC staff finds that approval of
the requested exemption is otherwise in the public interest.
E. Environmental Considerations
This action relates to changes to scheduling requirements. The
NRC staff has determined that any ground disturbance is limited to
previously disturbed areas. Additionally, the NRC staff has
determined that the action involves no significant change in the
types or significant increase in the amounts of any effluents that
may be released offsite, no significant increase in individual or
cumulative public or occupational radiation exposure, and no
significant increase in the potential for or consequences from
radiological accidents. Finally, the NRC staff has determined that a
categorical exclusion applies and that special circumstances under
10 CFR 51.22, ``Categorical exclusions,'' are not present that would
preclude reliance on the categorical exclusion. Accordingly, this
action meets the eligibility criteria for categorical exclusion set
forth in 10 CFR 51.22(d)(5). Pursuant to 10 CFR 51.22, no
environmental impact statement or environmental assessment need be
prepared in connection with the action.
IV. 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 tailored one-time exemption from 10 CFR
26.205(d)(3) and (d)(7) for personnel performing duties under 10 CFR
26.4(a)(1), (a)(2), (a)(3), and (a)(4) for the duration of the
exemption period until 9 days before the start of the unit's initial
fuel load into the reactor. For the personnel specified, Palisades
Energy will ensure that individuals comply with the work hour
control requirements specified in 10 CFR 26.205(d)(1), (d)(2), and
(d)(4) for the duration of the exemption. In addition, Palisades
Energy will comply with the three commitments in Attachment 2 of the
Enclosure to the May 27, 2026, submittal and all mitigating actions
listed under the section titled ``Mitigating Strategy'' for the
duration of the exemption period.
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. The current exemption from the
requirements of 10 CFR 26.205(d)(3) and (d)(7) directly supports
activities unique to the Palisades restart project for specific
groups of personnel, with particular consideration for the potential
risk level of the plant to the public health and safety. Each
request for an exemption from the requirements specified in 10 CFR
26.205(d)(3) or (d)(7) are evaluated on a case-by-case basis
specific to the circumstances of the facility, the risk level to
public health and safety, and the mitigation measures.
Dated: June 18, 2026.
For the Nuclear Regulatory Commission.
/RA/
Hipolito Gonzalez, Acting Director, Division of Licensing Projects
1, Office of Nuclear Reactor Regulation.
[FR Doc. 2026-12660 Filed 6-23-26; 8:45 am]
BILLING CODE 7590-01-P