L-20-165, License Amendment Request - Proposed Change to Operating License Conditions Related to Irradiated Fuel Management Plan (Ifmp) Funding; and Withdrawal of Ifmps

License Amendment Request - Proposed Change to Operating License Conditions Related to Irradiated Fuel Management Plan (Ifmp) Funding; and Withdrawal of Ifmps

ML20195A845
Person / Time
Site:	Beaver Valley
Issue date:	07/13/2020
From:	Penfield R Energy Harbor Nuclear Corp
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
L-20-165
Download: ML20195A845 (13)

Text

energy Energy Harbor Nuclear Corp.

harbor Beaver Valley Power Station P. 0. Box 4 Shippingport, PA 15077 Rod L. Penfield 724-682-5234 Site Vice President, Beaver Valley Nuclear July 13, 2020 L-20-165 10 CFR 50.90 10 CFR 50.54(bb)

ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555-0001

SUBJECT:

Beaver Valley Power Station, Units No. 1 and 2 Docket No. 50-334, License No. DPR-66 Docket No. 50-412, License No. NPF-73 License Amendment Request - Proposed Change to Operating License Conditions Related to Irradiated Fuel Management Plan (IFMP) Funding: and Withdrawal of IFMPs In accordance with 10 CFR 50.90 , "Application for amendment of license or construction permit," Energy Harbor Nuclear Corp. requests an amendment to operating license conditions related to irradiated fuel management plan funding in Renewed Facility Operating License (RFOL) Nos. DPR-66 and NPF-73 for Beaver Valley Power Station , Unit Nos. 1 (BVPS-1) and 2 (BVPS-2) , respectively . The proposed changes would delete Conditions Band C previously added to the BVPS-1 and BVPS-2 RFOLs by License Amendments 304 and 194, respectively.

By letter dated April 25, 2018 (Accession No. ML18115A007), formal notification was provided to the Nuclear Regulatory Commission (NRC) pursuant to 10 CFR 50.82(a)(1 )(i) and 10 CFR 50.4(b)(8) of the intention to permanently cease power operations at BVPS-1 by May 31, 2021 and BVPS-2 by October 31 , 2021. As a result, and in accordance with 10 CFR 50.54(bb) , irradiated fuel management plans (IFMPs) for BVPS-1 and BVPS-2 were provided for NRC staff review and preliminary approval. By letter dated December 18, 2019 (Accession No . ML19336A028), the NRC staff issued a safety evaluation for these IFMPs.

By letter dated March 13, 2020 (Accession No. ML20073N415), the new Board of Directors for Energy Harbor Nuclear Corp. reversed the decision to permanently cease power operations at BVPS-1 and BVPS-2. As a result, the IFMPs for BVPS-1 and BVPS-2 are no longer applicable under 10 CFR 50.54(bb), and Energy Harbor Nuclear Corp. hereby withdraws the IFMPs.

Beaver Valley Power Station, Unit Nos. 1 and 2 L-20-165 Page 2 Because BVPS-1 and BVPS-2 RFOL Conditions Band C were based on information contained in these IFMPs that are no longer applicable, Energy Harbor Nuclear Corp.

requests the removal of these conditions.

The enclosure to this letter provides a detailed description and evaluation of the proposed changes to the RFOLs, including a markup of the current RFOL pages depicting the proposed change.

Energy Harbor Nuclear Corp . requests review and approval of this proposed amendment by July 17, 2021. Once approved, the amendment shall be implemented within 30 days.

Energy Harbor Nuclear Corp. has concluded that the proposed changes present no significant hazards consideration under the standards set forth in 10 CFR 50.92, "Issuance of amendment."

There are no regulatory commitments contained in this submittal. If there are any questions, or if additional information is required, please contact Mr. Phil H. Lashley, Acting Manager, Nuclear Licensing and Regulatory Affairs, at (330) 696-7208.

I declare under penalty of perjury that the foregoing is true and correct. Executed on July Jl__, 2020.

Rod L. Penfield V

Enclosure:

Evaluation of the Proposed Change cc: NRC Region I Administrator NRC Resident Inspector NRR Project Manager Director BRP/DEP Site BRP/DEP Representative

Evaluation of the Proposed Change Page 1 of 7

Subject:

Proposed Change to Operating License Conditions Related to Irradiated Fuel Management Plan Funding for Beaver Valley Power Station, Unit Nos. 1 and 2 1.0

SUMMARY

DESCRIPTION 2.0 DETAILED DESCRIPTION 2.1 Reason for the Proposed Change 2.2 Description of the Proposed Change

4.0 REGULATORY EVALUATION

4.1 Applicable Regulatory Requirements/Criteria 4.2 No Significant Hazards Consideration Analysis 4.3 Conclusions

6.0 REFERENCES

7.0 ATTACHMENTS

1. BVPS-1 Renewed Facility Operating License Page Markup

2. BVPS-2 Renewed Facility Operating License Page Markup

Evaluation of the Proposed Change Page 2 of 7 1.0

SUMMARY

DESCRIPTION Pursuant to 10 CFR 50.90, Application for amendment of license or construction permit, Energy Harbor Nuclear Corp. proposes changes to operating license conditions related to irradiated fuel management plan (IFMP) funding in Renewed Facility Operating License (RFOL) Nos. DPR-66 and NPF-73 for Beaver Valley Power Station, Unit Nos. 1 (BVPS-1) and 2 (BVPS-2), respectively. The proposed changes would delete Conditions B and C previously added to the RFOLs for BVPS-1 and BVPS-2 by License Amendments 304 and 194, respectively.

These conditions were added based on estimated funding needed for the BVPS-1 and BVPS-2 IFMPs that were submitted when a plan for permanent cessation of power operations at both units was in effect. Subsequent to the issuance of License Amendments 304 and 194, the new Board of Directors for Energy Harbor Nuclear Corp.

reversed the decision to permanently cease power operations at BVPS-1 and BVPS-2 in 2021. As a result, the IFMPs are no longer applicable. Therefore, Conditions B and C are no longer appropriate.

This LAR provides a discussion and description of the proposed RFOL changes, a technical evaluation of the proposed RFOL changes, and information supporting a finding of no significant hazards consideration (NSHC).

2.0 DETAILED DESCRIPTION Markups of the current RFOL pages affected by the proposed changes are attached. contains the BVPS-1 RFOL page markup. Attachment 2 contains the BVPS-2 RFOL page markup.

2.1 Reason for the Proposed Change By letter dated April 25, 2018 (Reference 1), formal notification was provided to the Nuclear Regulatory Commission (NRC) pursuant to 10 CFR 50.82(a)(1)(i) and 10 CFR 50.4(b)(8) of the intention to permanently cease power operations at BVPS-1 by May 31, 2021 and BVPS-2 by October 31, 2021. As a result, and in accordance with 10 CFR 50.54(bb), IFMPs for BVPS-1 and BVPS-2 were provided for NRC staff review and preliminary approval. By letter dated December 18, 2019 (Reference 2), the NRC staff issued a safety evaluation for these IFMPs, which included discussion of two license conditions. The license conditions were issued by NRC letter dated February 27, 2020 (Reference 3) as Conditions B and C to the RFOLs for BVPS-1 and BVPS-2 by License Amendments 304 and 194, respectively.

By letter dated March 13, 2020 (Reference 4), Energy Harbor Nuclear Corp.

withdrew the certification of permanent cessation of power operations for BVPS-1 and BVPS-2. Therefore, the current expiration dates of the RFOLs are January 29, 2036 for BVPS-1, and May 27, 2047 for BVPS-2.

Evaluation of the Proposed Change Page 3 of 7 With the changed circumstances, the IFMPs are no longer applicable and the associated Conditions B and C to the BVPS-1 and BVPS-2 RFOLs are no longer appropriate.

2.2 Description of the Proposed Change For BVPS-1, RFOL Conditions B and C are identified in Appendix C, Additional Conditions Operating License No. DPR-66. The proposed change is to replace each condition wording with Deleted.

For BVPS-2, RFOL Conditions B and C are identified in Appendix D, Additional Conditions Operating License No. NPF-73. The proposed change is to replace each condition wording with Deleted.

3.0 TECHNICAL EVALUATION

Renewed Facility Operating License (RFOL) Nos. DPR-66 and NPF-73 for Beaver Valley Power Station, Unit Nos. 1 (BVPS-1) and 2 (BVPS-2), respectively, include license conditions (Conditions B and C in each RFOL) that were added based on estimated funding needed for the BVPS-1 and BVPS-2 irradiated fuel management plans (IFMPs), which assumed permanent cessation of power operations at both units would occur in 2021.

With the withdrawal of the certification of permanent cessation of power operations for BVPS-1 and BVPS-2 (Reference 4), the financial conditions associated with the nuclear decommissioning trust funds for BVPS-1 and BVPS-2 have changed. The current expiration dates of the RFOLs are January 29, 2036 for BVPS-1, and May 27, 2047 for BVPS-2. In accordance with 10 CFR 50.54(bb), IFMPs are required within two years following permanent cessation of operation of the reactor or five years before expiration of the reactor operating license, whichever occurs first. Therefore, the IFMPs for BVPS-1 and BVPS-2 are no longer applicable.

The associated Conditions B and C to the BVPS-1 and BVPS-2 RFOLs are no longer appropriate because the conditions are based on the IFMP cost estimates and fund disbursement dates that are no longer applicable. The funds are no longer needed in the timeframe described in the IFMPs. Therefore, funding a provisional trust by December 31, 2021 (as described in Condition B) and obtaining performance bonds by January 1, 2027 (as described in Condition C) are no longer appropriate for BVPS-1 and BVPS-2.

Compliance with the requirements of 10 CFR 50.75, Reporting and recordkeeping for decommissioning planning ensures financial assurance for decommissioning is provided for BVPS-1 and BVPS-2.

The proposed changes are administrative in nature. There are no physical modifications to the plant or plant equipment involved with the proposed changes.

Evaluation of the Proposed Change Page 4 of 7

4.0 REGULATORY EVALUATION

4.1 Applicable Regulatory Requirements/Criteria The proposed changes have been evaluated to determine whether applicable regulations and requirements continue to be met. Energy Harbor Nuclear Corp.

has determined that the proposed changes do not require any exemptions or relief from regulatory requirements.

The regulation under 10 CFR 50.54(bb) states, in part:

For nuclear power reactors licensed by the NRC, the licensee shall, within 2 years following permanent cessation of operation of the reactor or 5 years before expiration of the reactor operating license, whichever occurs first, submit written notification to the Commission for its review and preliminary approval of the program by which the licensee intends to manage and provide funding for the management of all irradiated fuel at the reactor following permanent cessation of operation of the reactor until title to the irradiated fuel and possession of the fuel is transferred to the Secretary of Energy for its ultimate disposal in a repository.

With the withdrawal of the certification of permanent cessation of power operations for BVPS-1 and BVPS-2 (Reference 4), the current expiration dates of the RFOLs are January 29, 2036 for BVPS-1, and May 27, 2047 for BVPS-2. As such, the applicable portion of 10 CFR 50.54(bb) would be five years before expiration of the reactor operating license. Therefore, the IFMPs for BVPS-1 and BVPS-2 are not required until 2031 and 2042, respectively.

The regulation under 10 CFR 50.75 requires the holder of an operating license to submit a decommissioning report. The regulation states, in part:

(b)(1) For an applicant for or holder of an operating license under part 50, the report must contain a certification that financial assurance for decommissioning will be (for a license applicant), or has been (for a license holder), provided in an amount which may be more, but not less, than the amount stated in the table in paragraph (c)(1) of this section adjusted using a rate at least equal to that stated in paragraph (c)(2) of this section.

(b)(2) The amount to be provided must be adjusted annually using a rate at least equal to that stated in paragraph (c)(2) of this section.

Evaluation of the Proposed Change Page 5 of 7 (b)(3) The amount must be covered by one or more of the methods described in paragraph (e) of this section as acceptable to the NRC.

While BVPS-1 and BVPS-2 continue power operations, decommissioning reports required by 10 CFR 50.75 will provide reasonable assurance that funds will be available for the decommissioning process.

The proposed changes do not affect compliance with these regulations.

4.2 No Significant Hazards Consideration Analysis The proposed changes would delete Conditions B and C of Renewed Facility Operating License (RFOL) No. DPR-66 for Beaver Valley Power Station, Unit No. 1 (BVPS-1) and Conditions B and C of RFOL No. NPF-73 for Beaver Valley Power Station, Unit No. 2 (BVPS-2). These conditions pertain to funding of the BVPS-1 and BVPS-2 irradiated fuel management plans (IFMPs), which assumed the permanent cessation of power operations at both units would occur in 2021.

The proposed changes are administrative in nature. There are no physical modifications to the plant or plant equipment involved with the proposed changes.

Energy Harbor Nuclear Corp. has evaluated whether or not a significant hazards consideration is involved with the proposed amendments by focusing on the three standards set forth in 10 CFR 50.92, Issuance of amendment, as discussed below:

1. Does the proposed amendment involve a significant increase in the probability or consequences of an accident previously evaluated?

Response: No.

The proposed amendment would delete the requirement to fund a provisional trust by December 31, 2021 (as described in Condition B) and to obtain performance bonds by January 1, 2027 (as described in Condition C) for BVPS-1 and BVPS-2. There are no physical modifications to the plant or plant equipment involved.

The deletion of these license conditions does not directly affect the design of structures, systems, and components (SSCs) necessary for safe storage of irradiated fuel or the methods used for handling and storage of such fuel. The changes are administrative in nature and do not affect any accidents applicable to the safe management of irradiated fuel or the operation of plant.

Therefore, the proposed change does not involve a significant increase in the probability or consequences of an accident previously evaluated.

Evaluation of the Proposed Change Page 6 of 7

2. Does the proposed amendment create the possibility of a new or different kind of accident from any accident previously evaluated?

Response: No.

The proposed amendment has no impact on facility SSCs affecting the safe storage of irradiated fuel, or on the methods of operation of such SSCs, or on the handling and storage of irradiated fuel itself. The deletion of the license conditions is administrative and cannot result in different or more adverse failure modes or accidents than previously evaluated because no change to the plant or plant equipment is involved.

Therefore, the proposed change does not create the possibility of a new or different kind of accident from any previously evaluated.

3. Does the proposed amendment involve a significant reduction in a margin of safety?

Response: No.

The proposed amendment is administrative and involves no change to the plant or plant equipment. There is no change to the SSCs that are important to the safe storage of irradiated nuclear fuel or to the operation of the plant. The license conditions are not credited in the existing accident analysis for postulated accidents; and, therefore, do not contribute to the margin of safety associated with the accident analysis.

Therefore, the proposed change does not involve a significant reduction in the margin of safety.

Based on the above, Energy Harbor Nuclear Corp. concludes that the proposed amendment does not involve a significant hazards consideration under the standards set forth in 10 CFR 50.92(c), and, accordingly, a finding of no significant hazards consideration is justified.

4.3 Conclusions In conclusion, based on the considerations discussed above: (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) such activities will be conducted in compliance with the Commissions regulations, and (3) the issuance of the amendment will not be inimical to the common defense and security or to the health and safety of the public.

Evaluation of the Proposed Change Page 7 of 7

5.0 ENVIRONMENTAL CONSIDERATION

The proposed amendment is confined to (i) changes to surety, insurance, and/or indemnity requirements, or (ii) changes to recordkeeping, reporting, or administrative procedures or requirements. Accordingly, the proposed amendment meets the eligibility criterion for categorical exclusion set forth in 10 CFR 51.22(c)(10). Therefore, pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the proposed amendment.

6.0 REFERENCES

1. FirstEnergy Solutions Letter to NRC, Certification of Permanent Cessation of Power Operations for Beaver Valley Power Station, Unit Nos. 1 and 2, Davis-Besse Nuclear Power Station, Unit No. 1, and Perry Nuclear Power Plant, Unit No. 1, dated April 25, 2018 (Accession No. ML18115A007)

2. NRC Letter to FirstEnergy Nuclear Operating Company, Beaver Valley Power Station, Units 1 and 2 - Safety Evaluation RE: Irradiated Fuel Management Plants (EPID L-2019-LLL-0028), dated December 18, 2019 (Accession No. ML19336A028)

3. NRC Letter to Energy Harbor Nuclear Corp., Beaver Valley Power Station, Unit Nos. 1 and 2; Davis-Besse Nuclear Power Station, Unit No. 1; and Perry Nuclear Power Plant, Unit No. 1 - Issuance of Amendment Nos. 304, 194, 299, and 187, Respectively, RE: Order Approving Transfer of Licenses and Conforming License Amendments (EPID L-2020-LLM-0000), dated February 27, 2020 (Accession No. ML20030A440)

4. Energy Harbor Nuclear Corp. Letter to NRC, Withdrawal of Certification of Permanent Cessation of Power Operations for Beaver Valley Power Station, Unit Nos. 1 and 2, dated March 13, 2020 (Accession No. ML20073N415) 7.0 ATTACHMENTS

1. BVPS-1 Renewed Facility Operating License Page Markup

2. BVPS-2 Renewed Facility Operating License Page Markup

Attachment 1 BVPS-1 Renewed Facility Operating License Page Markup (1 page follows)

APPENDIX C ADDITIONAL CONDITIONS OPERATING LICENSE NO. DPR-66 Energy Harbor Nuclear Corp. and Energy Harbor Nuclear Generation LLC shall comply with the following conditions on the schedules noted below:

Amendment Additional Condition Implementation Number Date 304 Based on the Commissions approval regarding the change in the The parent company issuing a $400 million Support Agreement to amendment Energy Harbor Nuclear Generation LLC, Energy Harbor Nuclear shall be Generation LLC shall comply with the conditions noted below. implemented This $400 million Support Agreement supersedes all previous within 7 days parent support agreements. from date of issuance A. The Support Agreement in the amount of $400 million described in the application dated April 26, 2019, is effective.

Energy Harbor Nuclear Generation LLC shall take no action to void, cancel, or modify the Support Agreement without the prior written consent of the NRC staff. Energy Harbor Nuclear Generation LLC shall inform the Director of the Office of Nuclear Reactor Regulation, in writing, no later than 10 working days after any funds are provided to Energy Harbor Nuclear Generation LLC by Energy Harbor Corp. under the terms of the Support Agreement.

B. Energy Harbor Nuclear Generation LLC shall create a provisional trust in the amount of $267 million for spent fuel management activities for Beaver Valley Power Station, Unit Deleted. Nos. 1 and 2. The trust shall be fully funded by December 31, 2021. Upon completion of the specified spent fuel management activities in the Irradiated Fuel Management Plan, dated August 22, 2019, the provisional trust may be terminated.

The provisional trust may also be modified or terminated upon NRC approval of a revised Irradiated Fuel Management Plan that supersedes the plan dated August 22, 2019.

C. Energy Harbor Nuclear Generation LLC shall obtain performance bonds if a settlement agreement with the U.S. Department of Energy (DOE) on DOE reimbursements for Deleted. spent fuel management expenses is not entered into by January 1, 2027. The performance bonds will be effective December 31, 2026, initially in the amount of $9.3 million and

$4.7 million for BVPS, Units 1 and 2, respectively, and they will be renewed annually. This amount covers 1.3 times the highest annual amount of ISFSI operation and maintenance (O&M) costs projected.

Beaver Valley Unit 1 C-6 Amendment No. 304

Attachment 2 BVPS-2 Renewed Facility Operating License Page Markup (1 page follows)

APPENDIX D ADDITIONAL CONDITIONS OPERATING LICENSE NO. NPF-73 Energy Harbor Nuclear Corp. and Energy Harbor Nuclear Generation LLC shall comply with the following conditions on the schedules noted below:

Amendment Additional Condition Implementation Number Date 194 Amendment Number 187 described a $400 million Support Agreement between FirstEnergy Solutions Corp. (FES) and FirstEnergy Nuclear Generation, LLC (FENGen). However, the amendment did not clearly state that this Support Agreement superseded entirely a similar agreement between FirstEnergy Corp. and FirstEnergy Nuclear Generation Corp. (predecessor of FENGen).

Based on the Commissions approval regarding the change in The amendment the parent company issuing a $400 million Support Agreement to shall be Energy Harbor Nuclear Generation LLC, Energy Harbor Nuclear implemented within Generation LLC shall comply with the conditions noted below. 7 days from date of This $400 million Support Agreement supersedes all previous issuance parent support agreements.

A. The Support Agreement in the amount of $400 million described in the application dated April 26, 2019 is effective.

Energy Harbor Nuclear Generation LLC shall take no action to void, cancel, or modify the Support Agreement without the prior written consent of the NRC staff. Energy Harbor Nuclear Generation LLC shall inform the Director of the Office of Nuclear Reactor Regulation, in writing, no later than 10 working days after any funds are provided to Energy Harbor Nuclear Generation LLC by Energy Harbor Corp. under the terms of the Support Agreement.

B. Energy Harbor Nuclear Generation LLC shall create a provisional trust in the amount of $267 million for spent fuel management activities for Beaver Valley Power Station, Unit Deleted. Nos. 1 and 2. The trust shall be fully funded by December 31, 2021. Upon completion of the specified spent fuel management activities in the Irradiated Fuel Management Plan, dated August 22, 2019, the provisional trust may be terminated. The provisional trust may also be modified or terminated upon NRC approval of a revised Irradiated Fuel Management Plan that supersedes the plan dated August 22, 2019.

C. Energy Harbor Nuclear Generation LLC shall obtain performance bonds if a settlement agreement with the U.S. Department of Energy (DOE) on DOE reimbursements for Deleted. spent fuel management expenses is not entered into by January 1, 2027. The performance bonds will be effective December 31, 2026, initially in the amount of $9.3 million and

$4.7 million for BVPS, Units 1 and 2, respectively, and they will be renewed annually. This amount covers 1.3 times the highest annual amount of ISFSI operation and maintenance (O&M) costs projected.

Beaver Valley Unit 2 D-7 Amendment No. 194