LR-N10-0118, Corrections to the License Renewal Application Environmental Report

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Corrections to the License Renewal Application Environmental Report
ML100980030
Person / Time
Site: Salem  PSEG icon.png
Issue date: 04/06/2010
From: Davison P
Public Service Enterprise Group
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
LR-N10-0118, FOIA/PA-2011-0113
Download: ML100980030 (23)
v • d • e


Text

PSEG Nuclear LLC P.O. Box 236,, Hancocks Bridge, NJ 08038-0236 0 PsEG APR 6 - 2010 NuclearL.L. C.

10 CFR 50 10 CFR 51 10 CFR 54 LR-N10-0118 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Salem Nuclear Generating Station, Unit No. 1 and Unit No. 2 Facility Operating License Nos. DPR-70 and DPR-75 NRC Docket Nos. 50-272 and 50-311

Subject:

Corrections to the Salem Nuclear Generating Station License Renewal Application Environmental Report

Reference:

Appendix E (Environmental Report) of the Salem Nuclear Generating Station License Renewal Application, Submitted 08/18/2009 PSEG Nuclear, LLC (PSEG) has identified a typographical error related to groundwater allocation and other errors related to tax information that require correction in Appendix E (Environmental Report) of the Salem Nuclear Generating Station, Units 1 and 2 (Salem)

License Renewal Application, submitted 08/18/2009. Accordingly, as a supplement to the Salem License Renewal Application, PSEG is providing one enclosure containing revised Environmental Report pages 2-65 (related to groundwater allocation) and 2-51, 2-52, 2-53, 4-39, 4-40, 4-41, 6-5, and 8-10 (related to tax information). Two versions of each changed page are provided, a marked up version and a clean version. The marked up version indicates specific textual changes using strikeout font for deletions and underline font for insertions. The clean version has vertical lines in the right-hand margin beside the lines of text that have been changed, but specific textual changes are not individually marked. Both versions of each changed page contain the phrase "Revised 02/2010" in the footer beneath the page numbers.

The changes related to groundwater allocation are being made to correct a typographical error that resulted in assigning an incorrect magnitude ["164 billion liters (43.2 billion gallons)" instead of "164 million liters (43.2 million gallons)" (emphasis added)] to the allowable combined amount of monthly groundwater diversion by Salem and HCGS.

Although the error occurred on only one page and was not propagated into the analyses of impacts in the Salem License Renewal Environmental Report, correction is necessary to avoid potential inadvertent propagation of the error in the future.

AJ !U

Document Control Desk APR 6m 2010 Page 2 LR-N10-0118 The changes related to tax information are necessary to correct transcription errors in Table 2.7-2 (page 2-53) and because only tax payments made by PSEG Nuclear (majority owner) for Salem and the Energy and Environmental Resource Center in Salem, New Jersey were reported in the original Salem License Renewal Environmental Report. Tax payments made by Exelon Generation, LLC (minority owner of Salem and minority owner of the Energy and Environmental Resource Center until 2008) were inadvertently omitted from Chapter 2. Environmental analyses in Chapter 4 that could be affected by this omission have been reviewed, with no substantive changes being necessary to the original conclusions regarding tax impacts. However, conforming editorial changes have been made in Chapter 4 and on summary tables in Chapters 6 and 8.

This Environmental Report supplement has been discussed with the NRC License Renewal Environmental Project Manager for the Salem License Renewal Applications.

If there are questions, please contact Ed Keating, Senior Environmental Advisor, PSEG Nuclear at 856-339-7902.

This letter and its enclosure contain no regulatory commitments.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on If zojo Sincerely, Paul J. Davison Vice President, Operations Support PSEG Nuclear LLC

Enclosure:

Revised Salem License Renewal Environmental Report pages cc: S. Collins, Regional Administrator - NRC Region I R. Ennis, Project Manager- USNRC C. Eccleston, Project Manager- USNRC NRC Senior Resident Inspector - Salem P. Mulligan, Manager IV, NJBNE Howard Berrick - Commitment Coordinator

ENCLOSURE Revised Salem Units 1 & 2 License Renewal Environmental Report Pages (Docket Nos. 50-272 and 50-311)

Revised Groundwater Allocation Information

  • Marked up page 2-65, Section 2.12.2.1
  • Clean page 2-65, Section 2.12.2.1 Revised Tax Information
  • Marked up pages 2-51, 2-52 and 2-53, Section 2.7

" Clean pages 2-51, 2-52 and 2-53, Section 2.7

  • Marked up pages 4-39, 4-40 and 4-41, Section 4.17
  • Clean pages 4-39, 4-40 and 4.1, Section 4.17
  • Marked up page 6-5, Table 6.1-1
  • Clean page 6-5, Table 6.1-1
  • Marked up page 8-10, Table 8.0-2
  • Clean page 8-10, Table 8.0-2

Revised Groundwater Allocation Information EnvironmentalReport Section 2.12 Known or Reasonably ForeseeableProjectsin Site Vicinity 2.12 Known or Reasonably Foreseeable Projects in Site Vicinity As indicated on Figure 2.1-2, there is no urban area within the 10-km (6-mi) radius of Salem, nor is there any industrial development. The immediate vicinity consists of extensive tidal marshlands and low-lying meadowlands.

2.12.1 WATER USERS IN THE DELAWARE RIVER BASIN IN THE VICINITY OF SALEM In its "Envirofacts Data Warehouse" online database access tool, EPA provides information about environmental activities that may affect air, land, and water. A search of the Envirorfacts

water" database for facilities that hold permits to discharge to waters of the United States in the vicinity of Salem identified heavy industries, electric generation, and manufacturing, among others. These industries represent the types of industrial facilities that could be permitted near Salem in the future. Additional information concerning these facilities may be accessed through EPA's "Envirofacts Warehouse" (http://oaspub.epa.gov/enviro/).

2.12.2 ELECTRIC CAPACITY IN THE IMMEDIATE VICINITY OF SALEM 2.12.2.1 Hope Creek Generating Station The Hope Creek Generating Station (HCGS) is co-located adjacent to Salem on Artificial Island.

HCGS is a one-unit station utilizing a boiling water reactor (BWR) designed by General Electric, and has a current licensed thermal power at 100 percent power of 3,840 MWt. Full commercial operation began December 20, 1986 (PSEG 2006c).

HCGS has a closed-cycle cooling system consisting of a natural draft cooling tower and associated withdrawal, circulation, and discharge facilities. The HCGS closed-cycle cooling system withdraws water from the Delaware Estuary for the Circulating Water System (CWS) and the Service Water System (SWS) through a single intake. Cooling tower blowdown and other station effluents discharge through an underwater conduit located 457 m (1,500 ft) upriver of the intake, into the Delaware River (PSEG 2006c). PSEG has a current NJPDES permit (No.

NJ002541 1) for HCGS surface water withdrawals and discharges.

PSEG has a contract with the Delaware River Basin Commission (DRBC) for HCGS consumptive and non-consumptive use of river water. The DRBC does not limit withdrawals by HCGS except to note that if the flow at Trenton, New Jersey is less than 3,000 cubic feet per second, withdrawals may be curtailed (DRBC 1984).

PSEG has a single ground-water allocation permit from NJDEP for the diversion by both Salem and HCGS of up to 164 b4o*Ii-milion liters (43.2 bil4ieR-million gallons) of ground water per I month (NJDEP 2004).

As a result of operations, both Salem and HCGS release liquid and gaseous radiological effluents into the environment. The releases are controlled and monitored to ensure that regulatory limits on the radioactivity discharged to the environment are not exceeded. Doses from these releases represent a fraction of the allowable doses specified in the facility operating license and NRC regulations. Results presented in the Radiological Environmental Monitoring Salem Nuclear Generating Station Page 2-65 License Renewal Application Revised 2/2010

Environmental Report Section 2.12 Known or Reasonably ForeseeableProjects in Site Vicinity 2.12 Known or Reasonably Foreseeable Projects in Site Vicinity As indicated on Figure 2.1-2, there is no urban area within the 10-km (6-mi) radius of Salem, nor is there any industrial development. The immediate vicinity consists of extensive tidal marshlands and low-lying meadowlands.

2.12.1 WATER USERS IN THE DELAWARE RIVER BASIN IN THE VICINITY OF SALEM In its "Envirofacts Data Warehouse" online database access tool, EPA provides information about environmental activities that may affect air, land, and water. A search of the Envirorfacts "water" database for facilities that hold permits to discharge to waters of the United States in the vicinity of Salem identified heavy industries, electric generation, and manufacturing, among others. These industries represent the types of industrial facilities that could be permitted near Salem in the future. Additional information concerning these facilities may be accessed through EPA's "Envirofacts Warehouse" (http://oaspub.epa.gov/enviro/).

2.12.2 ELECTRIC CAPACITY IN THE IMMEDIATE VICINITY OF SALEM 2.12.2.1 Hope Creek Generating Station The Hope Creek Generating Station (HCGS) is co-located adjacent to Salem on Artificial Island.

HCGS is a one-unit station utilizing a boiling water reactor (BWR) designed by General Electric, and has a current licensed thermal power at 100 percent power of 3,840 MWt. Full commercial operation began December 20, 1986 (PSEG 2006c).

HCGS has a closed-cycle cooling system consisting of a natural draft cooling tower and associated withdrawal, circulation, and discharge facilities. The HCGS closed-cycle cooling system withdraws water from the Delaware Estuary for the Circulating Water System (CWS) and the Service Water System (SWS) through a single intake. Cooling tower blowdown and other station effluents discharge through an underwater conduit located 457 m (1,500 ft) upriver of the intake, into the Delaware River (PSEG 2006c). PSEG has a current NJPDES permit (No.

NJ002541 1) for HCGS surface water withdrawals and discharges.

PSEG has a contract with the Delaware River Basin Commission (DRBC) for HCGS consumptive and non-consumptive use of river water. The DRBC does not limit withdrawals by HCGS except to note that if the flow at Trenton, New Jersey is less than 3,000 cubic feet per second, withdrawals may be curtailed (DRBC 1984).

PSEG has a single ground-water allocation permit from NJDEP for the diversion by both Salem and HCGS of up to 164 million liters (43.2 million gallons) of ground water per month (NJDEP 2004).

As a result of operations, both Salem and HCGS release liquid and gaseous radiological effluents into the environment. The releases are controlled and monitored to ensure that regulatory limits on the radioactivity discharged to the environment are not exceeded. Doses from these releases represent a fraction of the allowable doses specified in the facility operating license and NRC regulations. Results presented in the Radiological Environmental Monitoring Salem Nuclear Generating Station Page 2-65 License Renewal Application Revised 2/2010

Revised Tax Information EnvironmentalReport Section 2.7 Taxes 2.7 Taxes New Jersey is one of a few states that initiate the budget process at a local, rather than county, level. In addition, local governments in New Jersey use the calendar year as opposed to a July-June fiscal year. Property taxes collected in Lower Alloways Creek Township are not retained by the township but are provided to Salem County, which provides most services to residents of Lower Alloways Creek Township.

Both PSEG and Exelon, which is the minority owner, pays property taxes for the Salem Nuclear Generating Station to Lower Alloways Creek Township for the Salem Nu'clar Gonorating tat4iAi. Over the last 5 yeamrBetween 2003 and 2007, the taxes paid to Lower Alloways Creek Township for the Salem Nuclear Generating Station ranged from $429,735734,841 in 2003 to

$44351-783,644 Pn 2007 (Table 2.7-1). PSEG-During the same period, the owners also payspaid taxes to the City of Salem for the Energy and Environmental Resource Center, which is located in the City of Salem and is shared by the Salem and Hope Creek Generating Stations. Table 2.7-1 summarizes PSEG's the owners' property tax payments to Lower Alloways Creek and the City of Salem for 2003 to 2007.

In addition to property tax on Salem Nuclear Generating Station and the Energy and Environmental Resource Center, P-SEG-the owners payshave paid property taxes to various townships for the Estuary Enhancement Program sites (EEP; see Appendix F of this document).

Table 2.7-2 provides a summary of the tax payments for the EEP from 2003 to 2007. However, the EEP tax payments are independent of the operation of Salem and will not be analyzed further.

From 2003 through 2007, Lower Alloways Creek Township collected between $2,099,185 and

$2,325,378 (in 2005) annually in total commercial property tax revenues (Table 2.7-1). From 2003 to 2007, Salem Nuclear Generating Station's property tax payments represented .233.4 to 2-0-535.7 percent of Lower Alloways Creek Township's total property tax revenues. PSEG's The owners' property tax payment to Lower Alloways Creek Township is large enough to relieve the Lower Alloways Creek residents of the burden of paying local municipal property taxes on residences, local school taxes, and open space municipal taxes (a local option). The Lower Alloways Creek residents only pay Salem County taxes and county open space taxes. T-he PSEG-Salem's property tax payments represented 0-.51.7 to 4-.242.2 percent of Salem County's total property tax revenues during the same time period (Table 2.7-1).

From 2003 through 2007, the City of Salem collected between $5,092,527 and $7,389,319 annually in total property tax revenues (see Table 2.7-1). The City of Salem's property tax revenues are allocated to county services, schools, open space, and municipal services. From 2003 to 2007, PSEG's-the owners' property tax payments for the Energy and Environmental Resource Center represented 2-63.5 to 3-24.3 percent of the City of Salem's total property tax revenues. The City of Salem's pr*operGt.

. tx ro..us are allocated to county sc,"-ces, .choolS, open space, and mBunicipal e*rFVice,.

Salem Nuclear GeneratingStation Page 2-51 License Renewal Application Revised 2/2010

Table 2.7-1 Tax Information for Salem Nuclear Generating Station and the Energy and Environmental Resource Center, SCD 2003-2007 CD PRIEG's-Property Taxes for the Salem Nuclear Generating Station 0 0 2003 2004 2005 2006 2007 4 CD Amount PSE-G-Paid in Property Tax for SNGSb $429,7- 748 537 $438,8764 379 $44Q4783 644 $42187-2734841 $443,1772543 0

Lower Alloways Creek Total Property Tax Revenue a $2,099,185 $2,251,474 $2,325,378 $2,195,746 $2,310,262 Percent of Lower Alloways Creek Total 2"357 4-340 4.433.7 49233.5 49-33.4 Property Tax Revenues Salem County Total Property Tax Revenue a $34,697,781 $36,320,365 $40,562,971 $43,382,037 $46,667,551 Percent of Salem County Total Property 4-.242.2 41-242.1 4-4-41.9 G-97-1.7 0-951.7 Tax Revenues ....

C,, PSE-G6s-Property Taxes for the Energy and Environmental Resource Center in Salem, New Jersey" 2003 2004 2005 2006 2007 Amount PSEG-Paid in Property Tax-b $4& -177 360 $156,742ý11755 $46965220822 $93-228492 $236,0318 910 City of Salem Total Property Tax Revenuesa $5,092,527 $6,049,675 $6,294,613 $6,485,947 $7,389,319 Percent of City of Salem Total Property Tax Revenues 2-63.5 2-.3.5 2-63.5 2-&3.5 3-24.3

a. Source: State of New Jersey 2008 a-.b. Includes taxes paid by both PSEG and Exelon.Proporty taxcs for the Energy and EnV,,ro...tal RsoouFc. Centoris prOVided fer inFormation only. The RocourAA Contor wAuld not hp affoctod by aR nyeS liene rnwal doce ri ie CD~

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Table 2.7-2 Salem Nuclear Generating Station EEP Tax Information, 2003-2007-Township County 2003 2004 2005 2006 2007 Cb~ Dennis Cape May $6716 $7048 $7563 $8160 $8632 Commercial Cumberland $58,726 $61,631 $66,137 $71,354 $75,482 Z3G Fairfield Cumberland $15,674 $16,449 $17,652 $19,044 $20,146 oCD Greenwich Cumberland $90,926 $95,423 $102,400 $110,477 $116,869 Hopewell Cumberland $4038 $4238 $4547 $4906 $5190 z0/

Maurice River Cumberland $10,174 $10,677 $11,458 $12,362 $13,077 Elsinboro Salem $27,178 $28,522 $30,607 $33,021 $34,932 Lower Alloways $8259 $8910 $9426 Salem $7334 $7696 Creek Total $220,765 $231,685 $248,624 $268,234 $283,754 Total Property Tax Revenues for all of $30,4!!,95732802 $32, 02nn35 36 $35,36 7-79 n1 $3 n091qA44489

$30,411,957 the Townships 086 778 744 117 EEP Tax Percent of Total Municipal 0.71-70 0.7-069 0.6967 0.73 0.7371 Property Tax Revenues Source: State of New Jersey 2008 a EEP tax information provided for information only. The payments on these properties would continue regardless of the outcome of license renewal.

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Environmental Report Section 2.7 Taxes 2.7 Taxes New Jersey is one of a few states that initiate the budget process at a local, rather than county, level. In addition, local governments in New Jersey use the calendar year as opposed to a July-June fiscal year. Property taxes collected in Lower Alloways Creek Township are not retained by the township but are provided to Salem County, which provides most services to residents of Lower Alloways Creek Township.

Both PSEG and Exelon, which is the minority owner, pay property taxes for the Salem Nuclear Generating Station to-Lower Alloways Creek Township. Between 2003 and 2007, the taxes paid to Lower Alloways Creek Township for the Salem Nuclear Generating Station ranged from

$734,841 to $783,644 (Table 2.7-1). During the same period, the owners also paid taxes to the City of Salem for the Energy and Environmental Resource Center, which is located in the City of Salem and is shared by the Salem and Hope Creek Generating Stations. Table 2.7-1 summarizes the owners' property tax payments to Lower Alloways Creek and the City of Salem for 2003 to 2007.

In addition to property tax on Salem Nuclear Generating Station and the Energy and Environmental Resource Center, the owners have paid property taxes to various townships for the Estuary Enhancement Program sites (EEP; see Appendix F of this document). Table 2.7-2 provides a summary of the tax payments for the EEP from 2003 to 2007. However, the EEP tax payments are independent of the operation of Salem and will not be analyzed further.

From 2003 through 2007, Lower Alloways Creek Township collected between $2,099,185 and

$2,325,378 (in 2005) annually in total commercial property tax revenues (Table 2.7-1). From 2003 to 2007, Salem Nuclear Generating Station's property tax payments represented 33.4 to 35.7 percent of Lower Alloways Creek Township's total property tax revenues. The owners' property tax payment to Lower Alloways Creek Township is large enough to relieve the Lower Alloways Creek residents of the burden of paying local municipal property taxes on residences, local school taxes, and open space municipal taxes (a local option). The Lower Alloways Creek residents only pay Salem County taxes and county open space taxes. Salem's property tax payments represented 1.7 to 2.2 percent of Salem County's total property tax revenues during the same time period (Table 2.7-1).

From 2003 through 2007, the City of Salem collected between $5,092,527 and $7,389,319 annually in total property tax revenues (see Table 2.7-1). The City of Salem's property tax revenues are allocated to county services, schools, open space, and municipal services. From 2003 to 2007, the owners' property tax payments for the Energy and Environmental Resource Center represented 3.5 to 4.3 percent of the City of Salem's total property tax revenues.

Salem Nuclear Generating Station Page 2-51 License Renewal Application Revised 2/2010

Table 2.7-1 Tax Information for Salem Nuclear Generating Station and the Energy and Environmental Resource Center, CO,Ir CDD

~.CD 2003-2007 CD N) 0 0 Property Taxes for the Salem Nuclear GeneratingStation 2003 2004 2005 2006 2007 Z z Amount Paid in Property Tax for SNGSb $748,537 $764,379 (CD

$783,644 $734,841 $772,543 Lower Alloways Creek Total Property Tax Revenue' $2,099,185 $2,251,474 $2,325,378 $2,195,746 $2,310,262 Percent of Lower Alloways Creek Total 35.7 34.0 33.7 33.5 33.4 Property Tax Revenues Salem County Total Property Tax Revenue a $34,697,781 $36,320,365 $40,562,971 $43,382,037 $46,667,551 Percent of Salem County Total Property 2.2 2.1 1.9 1.7 1.7 Tax Revenues C0 Property Taxes for the Energy and Environmental Resource Center in Salem, New Jersey 2003 2004 2005 2006 2007 Amount Paid in Property Taxb $177,360 $211,755 $220,822 $228,492 $318,910 City of Salem Total Property Tax Revenuesa $5,092,527 $6,049,675 $6,294,613 $6,485,947 $7,389,319 Percent of City of Salem Total Property Tax Revenues 3.5 3.5 3.5 3.5 4.3

a. Source: State of New Jersey 2008
b. Includes taxes paid by both PSEG and Exelon.

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Table 2.7-2 Salem Nuclear Generating Station EEP Tax Information, 2003-2007" CDO Township County 2003 2004 2005 2006 2007 Dennis Cape May $6716 $7048 $7563 $8160 $8632 2G) Commercial Cumberland $58,726 $61,631 $66,137 $71,354 $75,482 CD-~ Fairfield Cumberland $15,674 $16,449 $17,652 $19,044 $20,146 o z,D Greenwich Cumberland $90,926 $95,423 $102,400 $110,477 $116,869 Z3 C/ Hopewell Cumberland $4038 $4238 $4547 $4906 $5190 03 Maurice River Cumberland $10,174 $10,677 $11,458 $12,362 $13,077 Elsinboro Salem $27,178 $28,522 $30,607 $33,021 $34,932 Lower Alloways Creek Salem $7334 $7696 $8259 $8910 $9426 Total $220,765 $231,685 $248,624 $268,234 $283,754 Total Property Tax Revenues for all of the Townships $30,411,957 $32,802,086 $35,362,778 $39,091,744 $42,089,117 EEP Tax Percent of Total Municipal 0.73 0.71 0.70 0.69 0.67 Property Tax Revenues Source: State of New Jersey 2008 a EEP tax information provided for information only.

The payments on these properties would continue regardless of the outcome of license renewal.

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Environmental Report Section 4.17 Offsite Land-Use NRC has determined that the significance of tax payments as a source of local government revenue would be large if the payments are greater than 20 percent of revenue, moderate if the payments are between 10 and 20 percent of revenue, and small if the payments are less than 10 percent of revenue (NRC 1996b).

NRC defined the magnitude of land-use changes as follows (NRC 1996b):

SMALL - very little new development and minimal changes to an area's land-use pattern.

-- MODERATE - considerable new development and some changes to land-use pattern.

LARGE - large-scale new development and major changes in land-use pattern.

NRC further determined that, "...[Ilf the plant's tax payments are proeected to be a dominant source of the community's total revenue, new tax-driven land-use changes would be large. This would be especially true where the community has no preestablished pattern of development or has not provided adequate public services to support and guide development in the past" (NRC 1996b).

NRC NRC fu-thro deotormod that, "...[I]f the plant's tax payments ar projected to be mLedium to large Crelatvek To the comruity'Sm total Genu, n xtax driVn land useChange would be moderate. This is onest likely to be tue where the community has no pro established patteors Lo development (i.e., land use plans or conrol) oer has not proeided adequate public SofRloca to supprt and guide development ion the past, epencially infraxs.tute that weould allow inidustrial developmFent (NRC 1996b).

Tax Impacts Table 2.7-1 provides a comparison of the 2003 to 2007 tax payments made bylPSEG to Lower Alloways Creek Township for Salem Nuclear Generating Station and to the City of Salem for the Energy and Environmental Resource Center. Because property tax payments to Lower oweEG's Alloways Creek Township is so substantial (alesiately greater than 2030 percent of the total property taxes collected), the residents of Lower Alloways; Creek Township are relieved of local municipal, school, and optional open space municipal taxes. Therefore, the significance of PRE~G'sproperty tax payments& to Lower Alloways Creek Township is AMOADE=RA' TE to LARGE.

However, while Salem's P2.6sS property taxes are a large portion of Lower Alloways Creek Township taxes revenues, the town forwards all of its tax revenues to Salem County in return for services Salem County provides to the township. smaGrs The owners' property tax payments are of SMALL significance for Salem County (less than 10 percent) and the City of Salem (less than 10 percent).

Land Use Impacts As described in Section 2.6, Salem County has experienced an annual population growth rate of less than 1 percent for the last 30 years. Salem County has a recently updated comprehensive plan which recognizes the value of open space, and continues to identify the goals of directing infrastructure development and planning to support smart growth, providing housing for all residents, and developing economic engines to ensure continued growth (Runkenstein and Associates 2004). Because no new construction activities would occur as a result of license renewal, there would be no change in Salem's tax basis and, consequen*tly, no chang8e to laRd Salem Nuclear GeneratingStation Page 4-39 License Renewal Application Revised 2/2010

Environmental Report Section 4.17 Offsite Land-Use ue-based resulting from renewal of the two Salem licenses. Hence, new tax-driven land use changes in Salem County would be SMALL because the significance of property tax payments to the county would continue to be small.

From 1990 to 2000, the population in Lower Alloways Creek Township remained almost constant. As described in Section 2.8, there has been little change in the township's land-use patterns since the last Master Plan review in 1999. With no new construction activities planned as a result of license renewal, there would be no change in Lower Alloways Creek's tax basisT and con.sequently, no changes to land uso based on resulting from renewal of the Salem

-licenses.-- Hence, the-significance-of tax payments- to Lower Alloways Creek for Salem would continue to be LARGE because residents would continue to be relieved of many local taxes.

However, because the Township would continue to forward all tax revenues to Salem County in return for services, new tax-driven land use changes would mirror those for Salem County, which would be SMALL.

The City of Salem has experienced a significant decline in population over the past several decades (Salem Main Street 2003). There is room for growth, however, PSEG's property tax paymont is oliy a small po-io, of the City of Salem's total popoty tax rov.nues. W.Alith with no new construction activities planned as a result of license renewal, there would be no change in Salem's tax basis aRd, *conequently, no changes to land use based on resulting from renewal of the Salem licenses. Hence, new tax-driven land use changes in the City of Salem would be SMALL because the significance of property tax payments to the City would continue to be small.

Conclusion As described in Section 3.2, PSEG has no plans for refurbishment activities at Salem.

Therefore, PSEG anticipates neither an increase in the assessed value of Salem Nuclear Generating Station due to refurbishment-related improvements, or any related tax-increase-driven changes to offsite land-use and development patterns. T-he-Also, as explained above, the Salem Nuclear Generating Station property tax payments are of LARGE significance to Lower Alloways Creek Township residents because they eliminate the need for most other taxes, but the magnitude of the tax revenues from Salem Nuclear Generating Station has not affected land-use patterns. The Salem Nuclear Generating Station's property tax payments are of SMALL significance to Salem County, which provides services to Lower Alloways Creek Township, and land-use changes in the county have been minimal. PSEG'6 The owners' property tax payments to the City of Salem for the Energy and Environmental Resource Center are of SMALL significance and land-use changes in the city have been minimal. Hence, PSEG concludes that the impacts of license renewal for the Salem units on both tax revenue and land use in Salem County would be SMALL.

Property Values The City of Salem has experienced significant decline in population over the past several decades (Salem Main Street 2003). There is room for growth; however, PSEG's property tax is only a small portion of the City of Salem and Salem County's total property tax revenues. With no new construction activities as a result of license renewal, there would be no change in the tax basis, and consequently, no changes to land use based on renewal of the license.

PSEG considered whether the presence of Salem has a depressing effect on property values that would be continued during the license renewal term. NRC considered this question for Page 4-40 Salem Nuclear Generating Station Revised 2/2010 License Renewal Application

Environmental Report Section 4.17 Offsite Land-Use seven nuclear plants in its GElS and found no depressed property values resulting from construction and operation or license renewal of these plants (NRC 1996b). Published literature on the subject comes to varying conclusions. Of the studies claiming to show a depressing effect, the geographic extent of the claimed effect ranges from less than 3.2 km (2 mi) to as many as 96.5 km (60 mi; Blomquist 1974, Clark and Nieves 1994, Folland and Hough 2000, Sheppard 2007). Some studies demonstrate no effects (Gamble and Downing 1982, Nelson 1981, Rephann undated). The Nuclear Energy Institute (NEI) has studied economic benefits of several nuclear plants, including Salem (NEI 2006a), and found that property (housing) values are enhanced by the presence of nuclear plants, a conclusion that aligns with NRC 1996b and other studies (Bezdek and-Wendling 2006; Clark et al. 1997; Farrell and Hall 2004; Metz et al.

1997; NEI 2003, NEI 2004a NEI 2004b, NEI 2004c, NEI 2004d, NEI 2005a, NEI 2005b, and NEI 2006b).

Sheppard (2007), which concludes that property values are depressed within 3.2 km (2 mi) of a nuclear plant, is based on the Blomquist (1974) study of a single fossil-fueled plant located in a residential area. Blomquist (1974) noted that "[T]he findings of this study are based on a rather special instance.. .where the community is composed of primarily single-family residences...."

The Blomquist proposition does not apply to Salem because there are no residential properties within 3.2 km (2 mi) of Salem. The area within 3.2 km (2 mi) of the Salem site is water (Delaware River), dredged spoil disposal sites (owned by the U. S. government), and open space (marsh; owned by the U.S. government and State of New Jersey). Hence, given the ownership and New Jersey wetlands protection requirements, further development of these offsite areas for residential use is unlikely.

PSEG also notes that the plant that Blomquist (1974) studied was small, about 27 megawatts, burned oil and coal, and began commercial operation in 1949 (EIA 1996). The workforce at such a facility would likely be much smaller than one at a large nuclear plant such as Salem.

Accordingly, the multiplier effect of the Salem workforce would be larger for tax contributions than the comparable multiplier effect for a 27-MW fossil-fueled facility. This could demonstrably increase, rather than decrease, property values. For this reason, PSEG believes the Blomquist (1974) methodology should not be applied to evaluate impacts of nuclear plants such as Salem, on property values as was done in Sheppard (2007).

Conclusion Because the Sheppard (2007) assumptions do not apply to Salem, PSEG concludes, consistent with the GElS (NRC 1996b), NEI (2006a), and the other studies cited above, that impacts on property values from Salem, if any, are positive, and that license renewal would not alter this status.

Salem Nuclear Generating Station Page 4-41 License Renewal Application Revised 2/2010

EnvironmentalReport Section 4.17 Offsite Land-Use NRC has determined that the significance of tax payments as a source of local government revenue would be large if the payments are greater than 20 percent of revenue, moderate if the payments are between 10 and 20 percent of revenue, and small if the payments are less than 10 percent of revenue (NRC 1996b).

NRC defined the magnitude of land-use changes as follows (NRC 1996b):

SMALL - very little new development and minimal changes to an area's land-use pattern.

.. MODERATE - considerable new-development-and some changes-to land-use pattern.

LARGE - large-scale new development and major changes in land-use pattern.

NRC further determined that, "...[I]f the plant's tax payments are projected to be a dominant source of the community's total revenue, new tax-driven land-use changes would be large. This would be especially true where the community has no preestablished pattern of development or has not provided adequate public services to support and guide development in the past" (NRC 1996b).

Tax Impacts Table 2.7-1 provides a comparison of the 2003 to 2007 tax payments made to Lower Alloways Creek Township for Salem Nuclear Generating Station and to the City of Salem for the Energy and Environmental Resource Center. Because property tax payments to Lower Alloways Creek Township is so substantial (greater than 30 percent of the total property taxes collected), the residents of Lower Alloways Creek Township are relieved of local municipal, school, and optional open space municipal taxes. Therefore, the significance of property tax payments to Lower Alloways Creek Township is LARGE. However, while Salem's property taxes are a large portion of Lower Alloways Creek Township tax revenues, the town forwards all of its tax revenues to Salem County in return forservices Salem County provides to the township. The owners' property tax payments are of SMALL significance for Salem County (less than 10 percent) and the City of Salem (less than 10 percent).

Land Use Impacts As described in Section 2.6, Salem County has experienced an annual population growth rate of less than 1 percent for the last 30 years. Salem County has a recently updated comprehensive plan which recognizes the value of open space, and continues to identify the goals of directing infrastructure development and planning to support smart growth, providing housing for all residents, and developing economic engines to ensure continued growth (Runkenstein and Associates 2004). Because no new construction activities would occur as a result of license renewal, there would be no change in Salem's tax basis resulting from renewal of the two Salem licenses. Hence, new tax-driven land use changes in Salem County would be SMALL because the significance of property tax payments to the county would continue to be small.

From 1990 to 2000, the population in Lower Alloways Creek Township remained almost constant. As described in Section 2.8, there has been little change in the township's land-use patterns since the last Master Plan review in 1999. With no new construction activities planned as a result of license renewal, there would be no change in Lower Alloways Creek's tax basis resulting from renewal of the Salem licenses. Hence, the significance of tax payments to Lower Alloways Creek for Salem would continue to be LARGE because residents would continue to be Salem Nuclear GeneratingStation Page 4-39 License Renewal Application Revised 2/2010

Environmental Report Section 4.17 Offsite Land-Use relieved of many local taxes. However, because the Township would continue to forward all tax revenues to Salem County in return for services, new tax-driven land use changes would mirror those for Salem County, which would be SMALL.

The City of Salem has experienced a significant decline in population over the past several decades (Salem Main Street 2003). There is room for growth, however, with no new construction activities planned as a result of license renewal, there would be no change in Salem's tax basis resulting from renewal of the Salem licenses. Hence, new tax-driven land use changes in the City of Salem would be SMALL because the significance of property tax

.paymentsto the Citywould-continUe to be small--.---

Conclusion As described in Section 3.2, PSEG has no plans for refurbishment activities at Salem.

Therefore, PSEG anticipates neither an increase in the assessed value of Salem Nuclear Generating Station due to refurbishment-related improvements, or any related tax-increase-driven changes to offsite land-use and development patterns. Also, as explained above, the Salem Nuclear Generating Station property tax payments are of LARGE significance to Lower Alloways Creek Township residents because they eliminate the need for most other taxes, but the magnitude of the tax revenues from Salem Nuclear Generating Station has not affected land-use patterns. The Salem Nuclear Generating Station's property tax payments are of SMALL significance to Salem County, which provides services to Lower Alloways Creek Township, and land-use changes in the county have been minimal. The owners' property tax payments to the City of Salem for the Energy and Environmental Resource Center are of SMALL significance and land-use changes in the city have been minimal. Hence, PSEG concludes that the impacts of license renewal for the Salem units on both tax revenue and land use in Salem County would be SMALL.

Property Values The City of Salem has experienced significant decline in population over the past several decades (Salem Main Street 2003). There is room for growth; however, PSEG's property tax is only a small portion of the City of Salem and Salem County's total property tax revenues. With no new construction activities as a result of license renewal, there would be no change in the tax basis, and consequently, no changes to land use based on renewal of the license.

PSEG considered whether the presence of Salem has a depressing effect on property values that would be continued during the license renewal term. NRC considered this question for seven nuclear plants in its GElS and found no depressed property values resulting from construction and operation or license renewal of these plants (NRC 1996b). Published literature on the subject comes to varying conclusions. Of the studies claiming to show a depressing effect, the geographic extent of the claimed effect ranges from less than 3.2 km (2 mi) to as many as 96.5 km (60 mi; Blomquist 1974, Clark and Nieves 1994, Folland and Hough 2000, Sheppard 2007). Some studies demonstrate no effects (Gamble and Downing 1982, Nelson 1981, Rephann undated). The Nuclear Energy Institute (NEI) has studied economic benefits of several nuclear plants, including Salem (NEI 2006a), and found that property (housing) values are enhanced by the presence of nuclear plants, a conclusion that aligns with NRC 1996b and other studies (Bezdek and Wendling 2006; Clark et al. 1997; Farrell and Hall 2004; Metz et al.

1997; NEI 2003, NEI 2004a NEI 2004b, NEI'2004c, NEI 2004d, NEI 2005a, NEI 2005b, and NEI 2006b).

Page 4-40 Salem Nuclear Generating Station Revised 2/2010 License Renewal Application

EnvironmentalReport Section 4.17 Offsite Land-Use Sheppard (2007), which concludes that property values are depressed within 3.2 km (2 mi) of a nuclear plant, is based on the Blomquist (1974) study of a single fossil-fueled plant located in a residential area. Blomquist (1974) noted that "[T]he findings of this study are based on a rather special instance.. .where the community is composed of primarily single-family residences...."

The Blomquist proposition does not apply to Salem because there are no residential properties within 3.2 km (2 mi) of Salem. The area within 3.2 km (2 mi) of the Salem site is water (Delaware River), dredged spoil disposal sites (owned by the U. S. government), and open space (marsh; owned by the U.S. government and State of New Jersey). Hence, given the ownership and New Jersey wetlands protection requirements, further development of these

.offsite areas for residential use is unlikely.

PSEG also notes that the plant that Blomquist (1974) studied was small, about 27 megawatts, burned oil and coal, and began commercial operation in 1949 (EIA 1996). The workforce at such a facility would likely be much smaller than one at a large nuclear plant such as Salem.

Accordingly, the multiplier effect of the Salem workforce would be larger for tax contributions than the comparable multiplier effect for a 27-MW fossil-fueled facility. This could demonstrably increase, rather than decrease, property values. For this reason, PSEG believes the Blomquist (1974) methodology should not be applied to evaluate impacts of nuclear plants such as Salem, on property values as was done in Sheppard (2007).

Conclusion Because the Sheppard (2007) assumptions do. not apply to Salem, PSEG concludes, consistent with the GElS (NRC 1996b), NEI (2006a), and the other studies cited above, that impacts on property values from Salem, if any, are positive, and that license renewal would not alter this status.

Salem Nuclear Generating Station Page 4-41 License Renewal Application Revised 212010

EnvironmentalReport Section 6.1 Tables Table 6.1-1 Environmental Impacts Related to License Renewal at Salem (continued)

No. Category 2 Issue Environmental Impact Human Health 57 Microbiological organisms NONE. This issue does not apply because Salem does not use (public health) (plants using a lake or canals, and does not use cooling towers or cooling lakes or canals, or cooling ponds that discharge to a small river.

towers or cooling ponds that discharge to a small river) 59 Electromagnetic fields, acute SMALL. For the three transmission lines constructed to

-effects (electric shock)--- - connect Salem to the electric grid, modeling predicts-induced--

currents of 4.2 millamperes or less, which are all less than the maximum induced current recommended by the National Electrical Safety Code (i.e., 5 milliamperes) for preventing electric shock from induced current.

Socioeconomics 63 Housing impacts SMALL. The addition of 60 jobs would not noticeably affect a potential housing market of more than 2 million housing units.

65 Public water supply: public SMALL. Water suppliers in Salem, Gloucester and utilities Cumberland counties, New Jersey and New Castle County, Delaware, have excess capacity. The addition of 60 jobs would not adversely affect the available water supply.

66 Public services: education NONE. This issue does not apply because refurbishment is not (refurbishment) planned for Salem.

68 Off-site land use NONE. This issue does not apply because refurbishment isnot (refurbishment) planned for Salem.

69 Off-site land use (license SMALL. No station-induced changes to off-site land use are renewal term) expected from license renewal because although Salem taxes represent approximately 20 more than 30 percent of the taxes paid to Lower Alloways Creek Township, the Township's property tax payments are forwarded to Salem County in return for services. Salem Nuclear Generating Station taxes comprise less than .210 percent of Salem County property tax revenues.

Taxes on the Energy and Environmental Resource Center are less than 310 percent of Salem city property tax revenues.

70 Public services: transportation SMALL. The addition of 60 employees would not noticeably increase traffic or adversely affect level of service in the vicinity of Salem.

71 Historic and archaeological SMALL. Salem is located on Artificial Island, which is a manmade resources land area created during the early 1900s. As such, the site never contained historical or archaeological resources. In addition, no archaeological or historical resources are known to exist on the transmission line corridors associated with Salem, and construction is not planned on-site or in the transmission corridors during the license renewal terms. Hence, no impacts to historic or archaeological resources are expected.

Postulated Accidents 76 Severe accidents SMALL. PSEG identified 17 potentially cost-beneficial SAMAs that could be examined further, but none is related to managing the effects of plant aging during the period of extended operation. The potentially cost beneficial SAMAs will be considered for implementation through the established Salem Plant Health Committee process.

Salem Nuclear Generating Station Page 6-5 License Renewal Application Revised 2/2010

EnvironmentalReport Section 6.1 Tables Table 6.1-1 Environmental Impacts Related to License Renewal at Salem (continued)

No. Category 2 Issue Environmental Impact Human Health 57 Microbiological organisms NONE. This issue does not apply because Salem does not use (public health) (plants using a lake or canals, and does not use cooling towers or cooling lakes or canals, or cooling ponds that discharge to a small river.

towers or cooling ponds that discharge to a small river) 59 Electromagnetic fields, acute SMALL. For the three transmission lines constructed to effects (electric shock) connect Salem to the electric grid, modeling predicts induced currents of 4.2 millamperes or less, which are all less than the maximum induced current recommended by the National Electrical Safety Code (i.e., 5 milliamperes) for preventing electric shock from induced current.

Socioeconomics 63 Housing impacts SMALL. The addition of 60 jobs would not noticeably affect a potential housing market of more than 2 million housing units.

65 Public water supply: public SMALL. Water suppliers in Salem, Gloucester and utilities Cumberland counties, New Jersey and New Castle County, Delaware, have excess capacity. The addition of 60 jobs would not adversely affect the available water supply.

66 Public services: education NONE. This issue does not apply because refurbishment is not (refurbishment) planned for Salem.

68 Off-site land use NONE. This issue does not apply because refurbishment is not (refurbishment) planned for Salem.

69 Off-site land use (license SMALL. No station-induced changes to off-site land use are renewal term) expected from license renewal because although Salem taxes represent more than 30 percent of the taxes paid to Lower Alloways Creek Township, the Township's property tax payments are forwarded to Salem County in return for services.

Salem Nuclear Generating Station taxes comprise less than 10 percent of Salem County property tax revenues. Taxes on the Energy and Environmental Resource Center are less than 10 percent of Salem city property tax revenues.

70 Public services: transportation SMALL. The addition of 60 employees would not noticeably increase traffic or adversely affect level of service in the vicinity of Salem.

71 Historic and archaeological SMALL. Salem is located on Artificial Island, which is a manmade resources land area created during the early 1900s. As such, the site never contained historical or archaeological resources. Inaddition, no archaeological or historical resources are known to exist on the transmission line corridors associated with Salem, and construction is not planned on-site or in the transmission corridors during the license renewal terms. Hence, no impacts to historic or archaeological resources are expected.

Postulated Accidents 76 Severe accidents SMALL. PSEG identified 17 potentially cost-beneficial SAMAs that could be examined further, but none is related to managing the effects of plant aging during the period of extended operation. The potentially cost beneficial SAMAs will be considered for implementation through the established Salem Plant Health Committee process.

Salem Nuclear Generating Station Page 6-5 License Renewal Application Revised 2/2010

Table 8.0-2 Impacts Comparison Detail (Continued) co rr No-Action Alternatives Proposed Action Base With Coal-Fired With Gas-Fired With Purchased (License Renewal) (Decommissioning) Generation Generation Power Socioeconomic Impacts SMALL - Adopting by reference SMALL - Adopting by MODERATE - MODERATE - Reduction in MODERATE - Adopting by Category 1 issue findings (Table reference Category 1 Reduction in permanent permanent work force at reference GElS description A-i, Issues 64, 67). Two issue finding work force at Salem Salem could adversely of socioeconomic impacts Category 2 issues findings are not (Table A-1, Issue 91) could adversely affect affect surrounding counties. from alternate technologies applicable (Section 4.16, Issue 66 surrounding counties. (Section 7.2.2.1) (NRC 1996b) and Section 4.17.1, Issue 68). (Section 7.2.2.2)

Location in high population area with no growth controls minimizes SCD potential for housing impacts.

Section 4.14, Issue 63).

CD Z Station property tax payments

30 represents t more than 30 percent of the taxes paid to Lower Alloways Creek Township and less than 10 percent each of the city of Salem and Salem County's total tax revenues (Section 4.17.2, Issue 69). Because the tax revenues collected from Salem are provided to Salem County by Lower Alloways Creek Township in exchange for government services, and impacts to the county are small, the impacts of license renewal are considered SMALL.

CD Z Capacity of public water supply and transportation infrastructure

~C5 minimizes potential for related impacts (Section 4.15, Issue 65; CDQ and Section 4.18, Issue 70).

Two Category 2 issues do not apply (Section 4.16, Issue 66 and Section 4.17.1, Issue 68).

Table 8.0-2 Impacts Comparison Detail (Continued)

.CD CD3Co No-Action Alternatives cor,

~

CD Proposed Action Base With Coal-Fired With Gas-Fired With Purchased 00 (License Renewal) (Decommissioning) Generation Generation Power Socioeconomic Impacts SMALL - Adopting by reference SMALL - Adopting by MODERATE - MODERATE - Reduction in MODERATE - Adopting by Category 1 issue findings (Table reference Category 1 Reduction in permanent permanent work force at reference GElS description A-i, Issues 64, 67). Two issue finding work force at Salem Salem could adversely of socioeconomic impacts Category 2 issues findings are not (Table A-i, Issue 91) could adversely affect affect surrounding counties. from alternate technologies applicable (Section 4.16, Issue 66 surrounding counties. (Section 7.2.2.1) (NRC 1996b) and Section 4.17.1, Issue 68). (Section 7.2.2.2)

Location in high population area with no growth controls minimizes CDc potential for housing impacts.

Section 4.14, Issue 63).

r_3 Station property tax payments represent more than 30 percent of the taxes paid to Lower Alloways Creek Township and less than 10 percent each of the city of Salem and Salem County's total tax revenues (Section 4.17.2, Issue 69).

Because the tax revenues collected from Salem are provided to Salem County by Lower Alloways Creek Township in exchange for government services, and impacts CDZ to the county are small, the impacts of license renewal are considered CD~ SMALL.

Capacity of public water supply and transportation infrastructure CD G minimizes potential for related

~CD impacts (Section 4.15, Issue 65; and Section 4.18, Issue 70).

Two Category 2 issues do not apply (Section 4.16, Issue 66 and Section 4.17.1, Issue 68).

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