[Federal Register Volume 91, Number 159 (Wednesday, August 19, 2026)]
[Notices]
[Pages 53669-53674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-16864]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-255; NRC-2026-3796]
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 July 10, 2026, as supplemented
by letter dated July 30, 2026, from Palisades Energy, LLC. The
exemption authorizes a one-time exemption to allow Operations personnel
use of the less restrictive work hour limitations described in NRC
regulations for a period of no more than 60 days commencing upon core
reload, or until Palisades is connected to the electrical grid,
whichever occurs first.
DATES: The exemption was issued on August 12, 2026.
ADDRESSES: Please refer to Docket ID NRC-2026-3796 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-2026-3796. 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 ADAMS accession number for each document
referenced (if it is available in ADAMS) is provided the first time
that it is mentioned in this document.
NRC's PDR: The PDR, where you may examine and order copies
of publicly available documents, is open by appointment. To make an
appointment to visit the PDR, please send an email to
[email protected] or call 1-800-397-4209 or 301-415-4737, between 8
a.m. and 4 p.m. eastern time (ET), Monday through Friday, except
Federal holidays.
FOR FURTHER INFORMATION CONTACT: Brent Ballard, Office of Nuclear
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001; telephone: 301-415-0680; email: [email protected].
SUPPLEMENTARY INFORMATION: The text of the exemption is attached.
Authority: 42 U.S.C. 2011 et seq.
Dated: August 14, 2026.
[[Page 53670]]
For the Nuclear Regulatory Commission.
Brent Ballard,
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 hour requirements is presented in the third work hours
exemption issued to Palisades Energy on March 18, 2026 (91 Federal
Register [FR] 13073). However, in the fourth work hours exemption
issued to Palisades Energy on June 18, 2026, (91 FR 38035), the NRC
staff determined that a graded Fitness for Duty (FFD) approach for
fatigue management could be applied to Palisades until nine days
before initial fuel load due to a combination of factors that
include the NRC 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.
Therefore, the NRC staff issued an exemption for the Palisades
Nuclear Plant to allow the use of the less restrictive outage work
hour limitations until nine days before the start of the unit's
initial fuel load into the reactor for various covered individuals
as described in that exemption, which includes 10 CFR 26.4(a)(1)
[Operations] personnel.
II. Request/Action
By letter dated July 10, 2026 (ML26191A405), the licensee
requested a one-time exemption from the Fitness for Duty (FFD)
Program work hour requirements in 10 CFR 26.205(d), ``Work hour
controls,'' 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 a period of
no more than 60 days commencing with core reload, or until Palisades
is connected to the electrical grid, whichever occurs first, for
individuals specified in Paragraphs (a)(1) of 10 CFR 26.4, ``FFD
program applicability to categories of individuals.''
Section 26.205(d)(3) of 10 CFR requires licensees to comply with
the requirements for individuals to have a minimum number of days
off per week depending on the duration of shift schedules, averaged
over the shift cycle, and the duties being performed. Individuals
working 8-hour shift schedules shall have at least 1 day off per
week, and individuals who are working 10-hour shift schedules shall
have at least 2 days off per week. Individuals working 12-hour shift
schedules while performing the duties described in 10 CFR 26.4(a)(1)
through (a)(3) shall have at least 2.5 days off per week and
individuals working 12-hour shift schedules while performing duties
described in 10 CFR 26.4(a)(4) shall have at least 2 days off per
week. Section 26.205(d)(7) of 10 CFR, requires licensees to comply
with the requirements for maximum average work hours wherein
individuals may not work more than a weekly average of 54 hours,
calculated using an averaging period of up to 6 weeks, which
advances by 7 consecutive calendar days at the finish of every
averaging period. The licensee seeks a one-time exemption from the
requirements of 10 CFR 26.205(d)(3) and (d)(7).
The requirements in 10 CFR 26.205(d)(4) provide that during the
first 60 days of a unit outage, licensees need not meet the
requirements of 10 CFR 26.205(d)(3) or (d)(7) for individuals
specified in 10 CFR 26.4(a)(1) through (a)(4), while those
individuals are working on outage activities. However, 10 CFR
26.205(d)(4) does require the licensee to ensure individuals
specified in 10 CFR 26.4(a)(1) through (a)(3) have at least 3 days
off in each successive (i.e., non-rolling) 15-day period, and that
the individuals specified in 10 CFR 26.4(a)(4) have at least 1 day
off in any 7-day period. This is collectively known as the outage
minimum days off (MDO) requirement.
In the exemption request, the licensee stated they re-evaluated
the operational support necessary to safely conduct core reload,
startup, and plant restoration activities through synchronization to
the electrical grid. Pursuant to 10 CFR 26.5, for the purposes of
Part 26, a unit outage means, for electricity-generation units, that
the reactor unit is disconnected from the electrical grid. The
licensee asserted that the outage work hour provisions of 10 CFR
26.205(d)(4) are necessary for Operations personnel during the
requested exemption period. Concurrently with this exemption
request, the licensee requested that the portion of the previous
exemption from 10 CFR 26.205(d)(3) and (d)(7) for 10 CFR 26.4(a)(1)
[Operations] personnel currently in effect until nine days before
core reload be rescinded and replaced by this exemption.
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 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) to allow the use of the
less restrictive work hour controls in 10 CFR 26.205(d)(4) for a
period not to exceed 60 days commencing with core reload, or until
Palisades is connected to the electrical grid. 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.
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 performing
duties in 10 CFR 26.4(a)(1) would be permitted to work in accordance
with the outage MDO requirements for up to a 60-day period. In the
July 10, 2026, submittal, the licensee asserted that the exemption
and the use of the outage work hour controls are ``necessary for
Operations personnel during this period to maintain continuity of
experienced operators and supervisors, minimize personnel turnovers,
preserve operational knowledge, and support effective decision-
making during safety-significant startup evolutions.'' In addition,
the licensee asserted that the requested exemption provides
``necessary flexibility to safely complete remaining restart
activities while maintaining fatigue-management protections,
enhancing human performance, and supporting safe, reliable startup
execution.'' The licensee also requested that the previously issued
exemption on June 18, 2026, (ML26156A018) be rescinded for 10 CFR
26.4(a)(1) personnel and replaced with this exemption request dated
July 10, 2026. The exemption issued on June 18, 2026, applied to
personnel performing duties specified in 10 CFR 26.4(a)(1), (a)(2),
(a)(3), (a)(4) and granted the licensee to utilize the outage work
hour controls in 10 CFR 26.205(d)(4) until nine days before initial
fuel load. The licensee seeks to rescind the portion of the fourth
exemption specifically for 10 CFR 26.4(a)(1) personnel and instead
utilize the flexibility provided by the MDO requirements under this
fifth exemption for 10 CFR 26.4(a)(1) personnel.
Palisades Energy provides several reasons for the proposed
exemption. The licensee stated that the exemption period will
encompass safety-significant activities that require heightened
operational focus, close coordination across plant organizations,
and
[[Page 53671]]
conservative decision-making by experienced licensed operators and
supervisors. The licensee described reactor startup as a highly
operationally intensive period requiring continuous oversight by
Reactor Operators and Senior Reactor Operators to direct fuel load
activities, authorize plant mode changes, ensure Technical
Specification compliance, and manage plant evolutions. In addition,
Operations personnel will perform system restorations, integrated
testing, plant configuration changes, operator training, and
emergent issue resolution, which the licensee stated significantly
increases operational workload and the need for continuity of
experienced staff.
The licensee asserted that applying outage work-hour controls
during the exemption period will support safer startup execution by
reducing unnecessary turnovers, preserving operational knowledge,
and ensuring critical operational decisions are made by personnel
most familiar with current plant conditions. Palisades Energy stated
that outage controls provide greater staffing stability, improve
oversight and mentoring opportunities for less experienced
operators, enhance troubleshooting and issue resolution, and support
efficient completion of startup testing and system restoration while
maintaining established fatigue-management protections.
Palisades Energy noted that it maintains sufficient licensed
operator staffing to meet the requirements of 10 CFR 50.54(m) and to
safely conduct startup activities. However, the licensee stated that
the exemption is necessary to maintain continuity of experienced
Operations personnel during the startup period.
The licensee asserted that the proposed exemption will not
endanger life or property because the requested relief is limited to
Operations personnel for up to 60 days under a highly controlled
environment with extensive procedural guidance, management
oversight, testing requirements, and operational reviews. The
licensee stated that Operations personnel routinely work under
outage work-hour controls during refueling outages, consistent with
industry practice, and that applying these controls during the
exemption period enhances nuclear safety by maintaining continuity,
reducing turnovers, preserving plant status awareness, and
supporting conservative decisions during safety-significant
evolutions. The licensee added that using outage controls minimizes
risks associated with personnel transitions, loss of operational
context, and fragmented ownership of plant conditions.
In the section of the submittal titled ``Mitigating Strategy''
the licensee proposed two commitments and several fatigue management
actions for the duration of the exemption. The first commitment
includes continued compliance with the work hour limitations in 10
CFR 26.205(d)(1), the rest breaks in 10 CFR 26.205(d)(2), and
compliance with the outage MDO requirements in 10 CFR 26.205(d)(4)
in lieu of the requirements in 10 CFR 26.205(d)(3) and (d)(7). The
second commitment is to ensure a portion of weekly supervisory
observations are dedicated to fatigue awareness, fatigue indicators,
fitness-for-duty behaviors, and worker readiness. The fatigue
management actions include items such as providing reasonable
opportunities for restorative sleep, monitoring work duration,
schedules, and shift rotations, and evaluation of fatigue-related
concerns into the corrective action program. In addition, the
licensee proposed enhancements to their behavioral observation
program including supervisory engagement in the field, individual
responsibility to identify and report fatigue, and reinforcement of
stop-work authority and conservative decision making. Further, the
licensee stated that the personnel performing the duties specified
in 10 CFR 26.4(a)(1) have not utilized previous work-hour exemptions
and have complied with the work hour requirements of 10 CFR
26.205(d)(7) since August 2025.
The NRC reviewed the exemption request, justification, and
mitigation strategy and determined that additional clarification and
information was needed to evaluate if the exemption request will not
endanger life and property. The NRC staff issued draft request for
confirmatory information (RCI) and request for additional
information (RAI) to the licensee on July 23, 2026, and held
clarification calls with the licensee on July 28, 2026, and July 30,
2026. By letter dated July 30, 2026, (ML26212A004), the NRC staff
issued a final RCI and RAI to the licensee that requested additional
details about the applicable personnel, the risk of cumulative
fatigue, and the potential benefits or impacts to the schedule,
fatigue limits, and continuity of operations. The licensee submitted
a response to the RCI and RAIs on July 30, 2026 (ML26211A374) which
is discussed below.
The NRC staff evaluated the licensee's proposed mitigating
actions and commitments to manage fatigue for individuals performing
duties specified in 10 CFR 26.4(a)(1) during the requested
exemption. Palisades Energy requested authorization to implement the
outage work-hour controls in 10 CFR 26.205(d)(4), in lieu of the
online work-hour requirements in 10 CFR 26.205(d)(3) and (d)(7), for
a 60-day period supporting fuel load and startup activities starting
with commencement of fuel load. The staff noted that Operations
personnel were included in the previous exemption. However, the
licensee has demonstrated compliance with the applicable maximum
average work hour controls in 26.205(d)(7) and confirmed in the RCIs
that Operations personnel have not worked more than 54 hours since
at least the end of the first exemption period and will not work
more than 54 hours prior to implementation of core load.
Additionally, the licensee committed that Operations personnel will
not exceed 54 hours per week averaged over a 6-week cycle prior to
core-load activities, and will receive at least a 34-hour break in
the nine days preceding implementation of outage controls. In
support of its request, the licensee requested recession of the
previous exemption portion that is applicable individuals performing
duties in 10 CFR 26.4(a)(1) [Operations]. These factors provided
assurance that cumulative fatigue has been and will be adequately
managed prior to the exemption.
The licensee stated that Operations personnel normally work
under outage work-hour provisions during refueling outages while
performing shutdown, maintenance, testing, restoration, and startup
preparations. The staff notes that during the proposed exemption
period, Palisades will continue to be in outage period as defined by
10 CFR 26.5 until connected to the electrical grid. While the staff
acknowledges that using outage controls is standard industry
practice during refueling outages, the overall scope and complexity
of Palisades Energy's activities differ from a typical outage
because the plant is concurrently restoring a number of safety-
significant systems, structures, and components (SSC) to operability
in addition to startup activities. These additional activities could
increase the amount and intensity of operator tasks or the number
and complexity of operational decisions which can contribute to an
increased risk of human error and cumulative fatigue.
In response to RAI 1a, the licensee clarified that most safety-
related systems required for startup will be restored and have
completed Technical Specification surveillance requirements and
procedural testing before entering the applicable modes for power
ascension. As Operations personnel transition from overseeing large-
scale equipment restoration to directing integrated startup
evolutions, the licensee expects operator workload to shift toward
plant operations, situational awareness, and decision-making.
Contracted Operations personnel will supplement licensed operators
by performing functions traditionally performed by licensed staff,
thereby reducing administrative burden and operator cognitive load.
The licensee made the following assertions regarding staffing
and its implications for Operations personnel considering compliance
with either the outage or online work hour controls. First, using
outage work-hour controls minimizes fatigue risk by continuing to
limit maximum hours and continuing to provide minimum break
requirements while maintaining stable crew schedules to maintain
continuity among experienced operators thereby reducing cognitive
burden. Second, compliance with online work-hour provisions would
require a five-on/three-off rotation, increasing personnel
transitions and reducing continuity. Third, operators returning from
their scheduled time off must regain familiarity with evolving plant
conditions, ongoing activities, increasing reliance on personnel
transitions, shift turnovers, and the transfer of detailed
operational knowledge. As a result, Operators may not complete the
full transfer of information and context during turnover during a
period of rapidly changing plant conditions and decision-making.
Finally, the licensee asserts that reducing the frequency of
personnel transitions while continuing to manage fatigue through the
utilization of outage work hour controls will allow Operators to
maintain continuity of plant knowledge, oversight, and decision-
making.
Startup activities are highly operationally intensive, requiring
licensed operators to direct fuel load, authorize mode changes,
[[Page 53672]]
determine operability, maintain Technical Specification compliance,
and manage plant evolutions. During this exemption period,
Operations personnel will conduct startup activities in parallel
with system restoration and operability determinations. The staff
previously described that outages ``increase the risk of human error
as a result of higher workload, the performance of more complex and
infrequent tasks, and the pressure to meet schedular goals.'' (73 FR
16966). However, the licensee asserted that online work hour
controls would require more days off to maintain compliance,
resulting in additional crew rotations and decreasing staffing
flexibility, independent oversight opportunities, and team cohesion.
If granted, the licensee states that the outage work hour
controls provide scheduling flexibility, so that it could increase
shift staffing from four senior reactor operators (SROs) and three
reactor operators (ROs) to six SROs and five ROs. The staff
determined that this additional qualified staffing will enhance
supervision, oversight, peer checking, and independent verification
of startup work activities, thereby reducing the potential for human
error during a complex restart evolution. Contracted Operations
personnel further support licensed operators by alleviating some
traditionally performed licensed operator duties.
The staff also considered the benefits of reduced call-ins and
fewer on-the-go scheduling changes. Stable outage schedules minimize
circadian disruptions and allow personnel to plan rest periods,
although night-shift personnel may still experience circadian
challenges. Overall, maintaining consistent startup crews reduces
information transfers and reacquisitions that could contribute to
communication errors and increased cognitive workload.
The NRC evaluated the responses to the RAIs. The Palisades
restart project is a first-of-a-kind unique activity where a nuclear
power plant in decommissioning status is being returned to
operational status. Furthermore, Palisades Energy, LLC is the first
NRC licensee to engage in a complex startup evolution of a
previously decommissioning nuclear power reactor, which required
major restoration of safety-significant systems. In addition, this
may be the first time the licensed operators have worked together in
operating crews, compromised of a mix of experienced and less
experienced operators, who will need to perform many startup
activities such as core load, testing, inspections, surveillances,
plant configuration changes, operator training, procedural
execution, operational readiness verification, and grid
synchronization. The staff acknowledge the particular importance of
maintaining continuity of operation and crew cohesion throughout
these complex and intense activities and the impact of continuity
and cohesion on crew dynamics. Continuity and cohesion can lead to
crew dynamics demonstrating positive effects such as resilience,
adaptability, robust decision-making, shared mental models,
questioning attitudes, and coordination. In addition, by reducing
information transfers and reacquisitions between licensed operators,
the licensee can reduce the potential risk for human error which
could occur due to information gaps, communication errors, and
increased cognitive workload during the complex startup evolutions.
The NRC staff considered the overall risk profile of the plant
during the proposed exemption period. In the fourth exemption, the
NRC staff found that the risk profile of Palisades prior to fuel
load was substantially different than that of an operating reactor.
However, given that Palisades Energy plans to load fuel during this
proposed exemption period, the risk profile will now increase to
that of an operating reactor. The nuclear safety risk to the public
health and safety also increases to that of an operating reactor at
the point that fuel is placed in a configuration and environment
that enables reactor operation coinciding with licensed operators
initiating power ascension activities. The increased risk profile
within this exemption is compounded by the restoration of a number
of safety-significant systems for safe operations and the first-of-
a-kind restart evolution. Specifically in relation to this
exemption, this increases the potential number of tasks and
decisions, in addition to the need to meet schedule pressure, which
increases the potential risk of human error and fatigue.
The NRC staff determined that the mitigating strategy and
commitments provided by the licensee during the 60-day exemption
period for individuals performing duties specified in 10 CFR
26.4(a)(1) provide assurance that licensee will adequately manage
acute and cumulative fatigue. Acute fatigue will be mitigated
through ensuring Operations personnel work no more than the maximum
work hour limitations specified in 10 CFR 26.205(d)(1) and receive
rest breaks between successive work periods specified in 10 CFR
26.205(d)(2)(i). Cumulative fatigue will be mitigated through the
34-hour break in any 9-day period specified in 10 CFR
26.205(d)(2)(ii) and the three days off in each successive (i.e.,
non-rolling) 15-day period specified in 10 CFR 26.205(d)(4). The
staff determined that there is reasonable assurance that fatigue
will be adequately managed for Operations personnel because the
individuals will not have worked more than 54 hours per week in the
6-week period prior to commencement of core load and will receive a
34-hour break before the utilization of outage work hour controls.
Further, the NRC staff has additional assurance that cumulative
fatigue will have been managed prior to core load because Operations
personnel have not worked more than 54 hours since the first
exemption and the licensee has requested recession of the portion of
the previous applicable exemption that covers individuals performing
duties in 10 CFR 26.4(a)(1). Therefore, the NRC determined that the
requested one-time exemption will not endanger life and property.
C. The Exemption Will Not Endanger the Common Defense and Security
The 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 specified in 10 CFR
26.205(d)(4) for personnel performing duties in 26.4(a)(1) for up to
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) for personnel
performing duties under 10 CFR 26.4(a)(1) to utilize the less
restrictive work hour controls specified in 10 CFR 26.205(d)(4) for
up to 60-days. 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, core reload, and plant startup 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 nature of the Palisades
Energy restart project, which was in a decommissioning status before
transitioning to a power operations licensing basis and is currently
working towards restoration of safety-significant SSCs, core load,
and initial startup activities to ensure the plant will be safe
prior to restart. The licensee asserted that ``granting the proposed
exemption is in the public interest because it supports the safe and
orderly completion of core reload, startup, and restoration
activities leading to synchronization of the unit to the electrical
grid while maintaining the fatigue-management protections
established under the outage work-hour controls of 10 CFR
26.205(d)(4).''
In addition, Palisades asserted that the ``scheduling
flexibility'' enables the continuity of Operations personnel,
reduces unnecessary turnovers, preserves operational knowledge, and
supports effective coordination across plant organizations. The
licensee further asserted that the proposed exemption enhances human
performance, strengthens conservative decision-making and
configuration control, and promotes the safe, reliable, and
efficient return to service by allowing operators and supervisors
that have firsthand knowledge of the plant to remain engaged
throughout startup activities. The NRC reviewed the licensee's
justification and reasoning to support the proposed exemption.
However, the staff could not determine how the exemption would be in
the public interest. In the July 30, 2026, RAI letter, the NRC staff
requested additional details, the benefits to the public, adverse
impacts to the public, and the benefits to the Operations personnel,
plant operation, and continuity of Operations.
In the licensee's July 30, 2026, letter, Palisades Energy, LLC
asserted in response to RAI 2a that the exemption is in the public
interest because it provides a net operational safety benefit during
the period of core load,
[[Page 53673]]
startup, and restoration activities while managing fatigue under 10
CFR 26.205(d)(4). The licensee asserted that Operations personnel
are not presently fatigued because they have not worked more than 54
hours since entering the initial outage and Operations personnel
will receive a 34-hour break immediately prior to startup
activities. Palisades Energy added that increased operational safety
is gained through improved continuity of licensed operating crews
during complex and infrequently performed startup evolutions. The
licensee asserted that by allowing startup crews to remain together
for longer portions of the restart process, if the exemption is
granted, will reduce ``turnover-related human performance
challenges, preserves shared situational awareness, and supports
continuity of oversight and operational decision-making during
safety-significant evolutions.'' Palisades Energy asserted that by
returning critical equipment to service efficiently will result in a
reduction of overall plant risk and supports restoration of defense-
in-depth which provide a public benefit of enhanced nuclear safety.
In response to RAI 2b, Palisades Energy asserted that, if the
exemption is not granted, operations personnel will remain in
compliance with the online work hour controls working a schedule
consisting of five consecutive days followed by three days off
resulting in additional crew rotations and personnel transitions
during fuel loading, system restoration, testing, plant heat up, and
power ascension. During these activities, crews may not remain
intact due to the scheduled time off required under the online work
hour controls. As stated in Section B, the licensee asserted that
operators who have a three-day break from shift must return and
regain familiarity with the plant conditions and ongoing activities
before assuming the shift. Palisades Energy asserted that without
the exemption, the licensee would rely on personnel turnovers and
the transfer of operational knowledge, however, the frequency would
create additional opportunities for incomplete information transfer,
loss of operational context, and other turnover-related human
performance challenges. The licensee asserted that the impact to the
public is the loss of operational and human-performance benefits
associated with maintaining dedicated startup crews and result in
the reduction of continuity, situational awareness, and crew
coordination during startup activities. Lastly, the licensee stated
that startup activities could be prolonged, resulting in a delayed
return to commercial operation and generation of energy.
The licensee asserted in response to RAI 2c that the exemption
would provide benefits to plant operation, operations personnel, and
continuity of operations by increasing operational continuity,
maintaining startup crews, and reducing turnover-related human
performance challenges during startup evolutions. For Operations,
the licensee asserted that the exemption would provide greater
schedule stability and reduces the need for changes in crew
composition and short notice call-ins. For plant operation, the
licensee asserted that the exemption would support safe and
efficient startup allowing licensed operators to maintain continuity
of involvement in system restoration and startup activities. For
continuity of operations, the licensee asserted that the exemption
would allow startup crews to remain together through larger portions
of the startup process which reduces the number of personnel
transitions and reliance on repeated transfers of operational
knowledge. As a result, Palisades Energy asserted that continuity
preserves shared situational awareness, crew coordination, and
reduces turnover-related human performance challenges with repeated
transfers and reacquisition of plant conditions, equipment status,
and ongoing activities. The licensee also asserted that the
exemption provides management with greater flexibility to address
fatigue concerns when identified in addition to additional staffing
flexibility.
The NRC evaluated the RAI responses for their public interest
considerations. The staff considered that the exemption, if granted,
may provide an increased safety benefit to the public because
licensed operators will remain together during complex periods of
the startup evolutions resulting in increased continuity of
operational knowledge, crew cohesion, and crew coordination which
could enhance independent oversight, peer verification, and
situational awareness. Further, the staff noted that through the
usage of outage work hour controls, during the first startup
evolution of a reactor from decommissioning status, will provide
increased staffing resources, with experienced operators, additional
oversight through increased shift staffing, and allow for mentoring
opportunities for less experienced operators. The NRC also
considered that because crews would remain together longer and have
less crew turnover, that it may reduce the frequency and quantity of
information transfers and reacquisitions between individual
operators and crews changing shifts. It is possible that without
complete turnovers, operators may not receive the entire depth of
information and context necessary to identify potential events and
intervene during the rapidly changing startup evolutions that the
licensee is completing for the first time since decommissioning.
As discussed in Section B, the staff noted that the licensee and
this complement of both experienced and less experienced licensed
operators will be performing a novel and complex startup evolution
for the first time together. This restart project is a unique first-
of-a-kind activity for the nuclear industry with unique regulatory
considerations. The staff's consideration of the public interest
takes into account the novel conditions presented by a restart and
the increases in safety provided by increased staffing during the
exemption period, with consideration of the mitigating factors to
address the increased risk of fatigue.
The NRC also considered the potential adverse impacts to the
public if the exemption was not granted. For the public, the primary
adverse impact would be the delayed return of Palisades to operation
and the reliable generation of energy to support Michigan's
electrical grid. The staff considered the potential adverse impact
on operations and operations personnel if the exemption was not
granted. Specifically, without the exemption, Operations personnel
will have an increased frequency of crew turnovers because
Operations personnel would continue to comply with the online work
hour controls resulting in five consecutive days of work followed by
three days off. This increase in turnover could increase
opportunities for incomplete information transfers and loss of
operational context. It may also reduce continuity, crew cohesion,
crew coordination, and shared mental models due to the number of
personnel and crew transitions over the duration of the complex
startup evolutions. These potential impacts could reduce the overall
safe and efficient return to service and startup of the plant to
benefit the public interest.
The NRC staff considered the potential benefits of the exemption
to operations personnel, plant operation, and continuity of
operations. For Operations personnel, the exemption would provide
the benefit of an outage schedule where individuals receive more
predictable and stable schedules ahead of time which provide
certainty in planning daily living obligations outside work and
reduces or eliminates the number of day-night transitions which
could increase the fatigue risk over the proposed exemption period.
In addition, an outage schedule could reduce the potential for
sudden changes in crew composition and call-ins. For plant
operation, the exemption provides the benefit of retaining startup
crews together for longer periods of the startup evolutions where
crews could maintain operational knowledge, oversight, situational
awareness, and shared mental models without extensive.
The factors discussed above benefit the public interest because
they improve safety through maintaining continuity of operations and
crew cohesion while reducing the potential number of and volume of
information transfers and reacquisitions which could negatively
impact the safe and efficient restoration of systems and startup
activities. These factors can help support operations personnel
remain engaged and situationally aware throughout the startup
evolutions. In addition, these factors are known to enhance human
performance and decision-making which are important for safe and
efficient completion of complex and infrequently performed
evolutions like startup and power ascension. Lastly, these factors
are important at Palisades because Palisades Energy is performing
this first-of-a-kind startup evolution with a complement of licensed
operators with a range of experience levels and who may be working
together for the first time especially in a unique restart project
which is returning a decommissioning nuclear power reactor to
operational status.
The NRC staff considered reasons why the proposed exemption may
not be in the public interest. For example, compared to the previous
exemption before fuel load, the risk level during the proposed
exemption will increase as the licensee begins to load fuel into a
configuration that will allow manipulation of controls for
reactivity.
[[Page 53674]]
However, as all operating reactors experience this evolution, this
risk is balanced by ensuring that Operations personnel are fit for
duty and have reliable human performance to perform the intensive
and complex work necessary for startup activities and to mitigate
the potential for an accident during startup. In order to ensure
Operations personnel are fit for duty and have reliable human
performance prior to the startup activities, the licensee confirmed
in their RCI response that Operations personnel have not and will
not work more than 54 hours per week and will receive a 34-hour
break in the nine-day period before commencing core load activities.
The NRC staff evaluated the unique nature of the Palisades
restart project, the previous work hours and breaks for Operations
personnel, the mitigating strategy and commitments, and RAI
responses against the balance of public interest considerations. The
NRC determined that providing an exemption to permit individuals
performing duties in 26.4(a)(1) to use the outage work hour controls
in 10 CFR 26.205(d)(4) for up to a 60 day period commencing with
core load would be in the public interest. 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 one-time exemption from 10 CFR 26.205(d)(3)
and (d)(7) for individuals performing duties in 10 CFR 26.4(a)(1) to
allow the use of the outage MDO requirements described in 10 CFR
26.205(d)(4) starting on upon commencement of core load activities
and terminating after 60 days or when Palisades is connected to the
electrical grid, whichever occurs first. While the exemption is in
effect, Palisades Energy will ensure that individuals performing
duties in 10 CFR 26.4(a)(1) have at least 3 days off in each
successive (i.e., non-rolling) 15-day period. During the exemption
period, Palisades Energy will also ensure that individuals' work
hours do not exceed the limits specified in 10 CFR 26.205(d)(1),
individuals receive a 10-hour break between successive work periods
specified in 10 CFR 26.205(d)(2)(i), and individuals receive a 34-
hour break in any 9-day period specified in 10 CFR 26.205(d)(2)(ii).
Additionally, Palisades Energy will use the outage MDO
requirements, rest break requirements, maximum work hour
limitations, and the mitigating strategy and commitments described
in the July 10, 2026, enclosure. These actions and commitments
provide reasonable assurance that acute and cumulative fatigue are
adequately managed for personnel performing duties in 10 CFR
26.4(a)(1) for a 60-day period commencing on core load, or until
connected to the electrical grid, whichever occurs first.
Furthermore, the Commission hereby grants the licensee's request and
rescinds the fourth exemption granted on June 18, 2026, for
Operations personnel described in 26.4(a)(1) and as discussed in
Section II of this exemption.
Dated: August 12, 2026.
For the Nuclear Regulatory Commission.
Mahmoud Jardaneh,
Acting Director, Division of Licensing Projects 1, Office of Nuclear
Reactor Regulation.
[FR Doc. 2026-16864 Filed 8-18-26; 8:45 am]
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