ML052420236

Energy Northwest Nuclear Project No. 1 - Termination of Construction Permit CPPR-134

ML052420236
Person / Time
Site:	Washington Public Power Supply System
Issue date:	08/09/2005
From:	Parrish J Energy Northwest
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
G01-05-0030
Download: ML052420236 (26)

Text

' ENERGY m NORTHWEST People

• Vision

• Solutions P.O. Box 968

• Richland, WA

• 99352-0968 August 9, 2005 GO1-05-0030 Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001

Subject:

ENERGY NORTHWEST NUCLEAR PROJECT NO. 1 (WNP-1), DOCKET NO. 50-460; TERMINATION OF CONSTRUCTION PERMIT CPPR-134

References:

1. Letter, dated May 20, 1994, G02-94-122, WG Counsil (SS) to JM Taylor (NRC), "Termination of Washington Public Power Supply System Nuclear Projects Nos. 1 and 3"

2. Letter, dated February 3,1995, GO1-95-0004/GO3-95-0026, WG Counsil (SS) to JM Taylor (NRC), "Termination of Washington Public Power Supply System Nuclear Projects Nos. 1 and 3"

3. Letter, dated December 21, 1999, GO1-99-067, JV Parrish (EN) to NRC, "Energy Northwest Nuclear Project No. 1 (WNP-1) Termination of Construction Permit CPPR-134"

4. Motion for Withdrawal of Application, dated January 4, 2000, DA Repka (Winston & Strawn, Attorneys for Washington Public Power Supply System), before the Atomic Safety and Licensing Board

5. Memorandum and Order, LBP-00-18, dated July 26, 2000, Atomic Safety and Licensing Board, "Terminating Reactor Operating License Proceeding"

6. Letter, dated April 9, 2001, GO1-01-0035, RL Webring (EN) to NRC, "Energy Northwest Nuclear Project No. 1 (WNP-1) Construction Permit Amendment Request"

7. Letter, dated January 30, 2002, JM Sebrosky (NRC) to JV Parrish (EN),

"Energy Northwest Nuclear Project No. I (WNP-1) - Order Extending Construction Completion Date (TAC No. MB1804)"

1Thol

ENERGY NORTHWEST NUCLEAR PROJECT NO. 1 (WNP-1)

TERMINATION OF CONSTRUCTION PROJECT CPPR-134 Page 2

Dear Sir or Madam:

In 1982 the Washington Public Power Supply System (Supply System), now conducting business as Energy Northwest, deferred the construction of the partially completed WNP-1 Project. The project was held in deferred status until May 13, 1994, when it was formally terminated by the Supply System's Board of Directors (Reference 1). At the time of termination, the Supply System decided to maintain the Construction Permit and to continue the deferred status of the Operating License application in order to maximize the value of the project and equipment for an interim period prior to any site restoration (References 1 and 2).

On December 21, 1999, Energy Northwest submitted a request to terminate the Construction Permit for WNP-1 (Reference 3) along with a January 4, 2000, Motion for Withdrawal of Application of the Operating License before the Atomic Safety and Licensing Board (ASLB) (Reference 4). On July 26, 2000, the ASLB terminated the Operating License Proceeding for WNP-1 (Reference 5). On April 9, 2001, Energy Northwest retracted its request for termination of the WNP-1 Construction Permit and requested that the completion date of the Construction Permit be extended (Reference 6). An extension of the WNP-1 Construction Permit to June 1, 2011, was granted on January 30, 2002 (Reference 7).

Energy Northwest has determined that the Construction Permit is no longer required for this project. Accordingly, Energy Northwest requests the termination of Construction Permit CPPR-134. Due to the early deferral and subsequent termination of construction, there is no nuclear fuel at the site and the plant is not capable of being operated as a "utilization facility."

Restoration of the site is being conducted in accordance with Washington State Energy Facility Site Evaluation Council (EFSEC) Resolution No. 302. This Resolution contains the requirements and schedule for restoration of the WNP-1 and WNP-4 sites, as agreed to by Energy Northwest, Bonneville Power Administration, U.S. Department of Energy, and the State of Washington (see Enclosure).

A decision by the NRC to terminate the WNP-1 Construction Permit is supported by the absence of unresolved (substantial) issues, the inability of the unit to be operated as a utilization facility, stable environmental conditions, and continuing oversight by other regulatory agencies. Accordingly, Energy Northwest believes the proposed termination of the facility construction permit is a simple administrative action that is not associated with a significant environmental impact.

ENERGY NORTHWEST NUCLEAR PROJECT NO.1 (WNP-1)

TERMINATION OF CONSTRUCTION PROJECT CPPR-134 Page 3 Should you have any questionis regarding this submittal, please contact Mr. DW Coleman at (509) 377-4342.

Respectfully, JV ParsWaarft

/

Chief Executive O cer MD 1023

Enclosure:

EFSEC Resolution No. 302 cc:

BS Mallett, NRC RIV BJ Benney, NRC NRR NRC Sr. Resident Inspector-988C RN Sherman - BPA11399 WA Horin - Winston & Strawn

STATE OF WASHINGTON ENERGY FACILITY SITE EVALUATION COUNCIL a;,

P0 8ox 43172 e Olympics Washington 98504.3172 January 5, 2005 Mr. D.W. Coleman Manager, Regulatory Programs Energy Northwest PO Box 98 (MD: PE 20)

Richland, Washington 99352-0968

Subject:

WNNNP-1/4 Revised Site Restoration Plan (RE: EFSEC Resolution No. 302)

Dear Mr. Coleman:

During its special meeting of December 29, 2004, the Council unanimously approved modifications to the NVNP-1/4 Site Restoration Plan (Plan), as proposed in Energy Northwest's December 2, 2004 submittal. As outlined in revised Attachment B, the Plan is modified to provide for the early completion of several restoration activities during the Near-Term health, safety, and environmental protection work. The revised Plan also reduces the scope of some activities planned for the longer-term Final Restoration; simplifies the original plan by eliminating duplication; and separates the WNP-I and WNP-4 activities for clarity. An additional benefit of accelerating certain Near-Term activities is a projected cost-savings of approximately $7 million from the corresponding reduction in the scope of Final Restoration wdrk.

For purposes of documenting the Council's approval of the revised Plan, the following vill be appended to EFSEC Resolution No. 302 (see enclosed), which set out the original scope of Near-Tcrm and Final restoration activities for the WVNP-I and NVNP-4 projects.

Energy Northwest December 2, 2004, D.W. Coleman (ENW) to Allen J. Fiksdal (EFSEC), "NVNP-1/4 Site Restoration Resolution No. 302"; and

-Attachment A - "Comparison of Original Plan with Proposed Changes"; and

-Attachment B - "Revised NVNP-1/4 Site Restoration Plan." [This document supersedes Attachment B and Attachment C to EFSEC Resolution No. 302 dated December 15, 2003.]

(360) 956-2121 Telefax (360) 956-2158

Page Twvo

• "Cost Informationi Related to Proposed Changes to the WNP-1/4 Site Restoration Plan." Energy Northwest, December 2004.

• Four (4) Pictures - WNP-4 Newv Proposal; WNP-4 Original Proposal; WNP-1 New Proposal; and WNP-1 Original Proposal. Energy Northwest, December 2004.

On behalf of the Council, I would like to recognize the efforts of Doug Culver, Mot Hedges and Bill Kiel in working with the Council to fully understand the modifications proposed to the original site restoration plan. The revisions to the Final Restoration Plan for WNP-1/4 meet both the near and long-term health and safety. expectations of the Council, while providing a significant cost-savings to the Bonneville Power Administration and ratepayers.

Thank you for your continued cooperation.

Sincerely, eJ Fiksdal EFSEC Manager Enclosures cc:

Doug Culver, ENW Bill Kiel, ENW Mot Hedges, ENW Jeff Ayres, Ecology

WASHINGTON STATE ENERGY FACILITY SITE EVALUATION COUNCIL RESOLUTION-NO. 302:

ENERGY NORTHWEST NUCLEAR PROJECTS NOS. 1 AND 4 SITE RESTORATION PLAN WHEREAS, The Energy Facility Site Evaluation Council (Council or EFSEC) has adopted rules

-ir-ctfig applicants and certificate holders to formulate plans for site restoration, effective March 11, 1987; and WHEREAS, Energy Northwest is the certificate holder for the Site Certification Agreement for Nuclear Projects Nos. I and 4 (WNP-1 and WNP-4, or WNP-1/4) and is si bject to the Council's rules regarding site restoration; and -

WHEREAS; Energy Northwest has terminated its plans to complete WNP-l and WNP-4; and WHEREAS, Energy Northwest on June 30, 1999, submritted to the Council for review a report that evaluated the sostsand benefits'of a range of options for retoaibon of te N-land 4

construction sites, inl.udin the identification of LeVel 3D-Deinoish'and Seal (with'the exception of

-remoingtheturbine pedestals) as the prefeedalteaive; and.

.5.,20.2;.. iiie'oh

. ii~i-fi, WHEREAS, Energy Northwest on Decnember 2002 submitted to the Counci forinal Site Restoraidon Plan (Plan for the

-1 and WNP-4 truction sites. The Plan, which by this reference is incorporated into and attached to this R ltutonis based oin a revised restoration Level 3D to be completed in 26 dyears,"and includes the implmen'tation of near-term heilth, safety and environmental protection activities to be completed in I8.-

1 24 monthis following Council approval of this Resolution; and' WHEREAS, The Council has found that the revised restoration Level 3D, that.does'not require the removal of the WNP-1 and WNP-4 turbine pedestals, containmrient stzilo

, and general services buildings is satisfactoiy forthe final end state ofthe'restorationpproject and is protective of public health, safety, and the environment; and' WHEREAS, The Council has found that the delay ofthe final restoration for 26 years is acceptable to resolve the. lackof funding for WNP4 restoration; assure'res'toration of WNP-4 without costly and time consuming litigation; leverage multiplesite restoration activities; accumulate funds necessary to complete final restorati on; and maximize facility reuse potential; provided that the immediate near-term health, safety and envmironmental protection activities proposed by Energy Northwest are completed in the next 18-24 months to assure the site remains in a safe condition for reuse or long-term storage; and*.

5 WHIEREAS, The Council understands that the cost estimates for the near-term restoration activities are expected to be between $3-4 million. If these costs exceed $4 million, Energy Northwest or Bonneville Power. Administration (BPA) may request a reasonable extension of time to complete these tasks, and approval of such extension will not be unreasonably withheld by the Council; and Resolution No. 302 -December 15, 2003 I

WHEREAS, The Council has determined that it will, without prejudice, revisit the final completion date at Energy Northwest's or BPA's request, if facility reuse or sequencing of WNP-1/4 restoration activities with Columbia Generating Station (CGS) decommissioning activities warrant extending that date, and that Council approval of such extension of time will not be unreasonably withheld; and WHEREAS, The Council understands that the cost estimates for Plan restoration activities has been estimated at approximately $45 million in 2003 dollars, and in the event that the S45 million estimate (appropriately adjusted for costs incurred) escalated to 2025 dollars proves to be inaccurate'and results in insufficient funds being available to complete the restoration activities in 26 years, BPA shall make-up the shortfall, provided that Energy Northwest or BPA may request a reasonable extension of time to complete these tasks, and approval of such extension will not be unreasonably withheld by the Council; and WHEREAS, The Council has found the WNP-1/4 Site Restoration Funding Agreement (Attachment D to the Plan) to be a satisfactory guarantee of funding for the restoration and environmental mitigation activities stated therein and in the Plan, based on the establishment of an external trust fimd by BPA; and that agreement provides for review of the funding status every five years; transmittal of annual reports of the accumulated funds in the trust; and the ability to audit the trust fund at the Council's discretion; and WHEREAS, Pursuant to the WNP-1/4 Site Restoration Funding Agreement, and in consideration of the Council's approval of the agreed to level of restoration and for the delay in time allowed for the completion of final site restoration, BPA, within 30 days of a request for payment to Energy Northwest, will cause to be paid to the Council (State) the lump sum of $3.5 million for offsite environmental mitigation or other activities that improve the environment to be used at the Council's discretion, afler consultation with the Washington Department of Fish and Wildlife, with the bulk of the funds to be spent for mitigation in Benton County; and WHEREAS, Subject to receipt of the mitigation funds, the Council has determined that such payment

• will be deemed to satisfy all requirements for wildlife or. wildlife habitat 'nitigation under EFSEC Resolution No. 296, provided that if additional construction or changes in operation or operational conditions at the Columbia Generating Station result in the loss of additional wildlife or wildlife habitat then EFSEC may require Energy Northwest to undertake appropriate mitigation; and WHEREAS, Upon completion of the near-term health, safety and environmental protection activities set out in the Plan, and submittal of a request from EnergyNorthwest to amend'the WNP-1/4 Site Certification Agreement, pursuant to the WNP-1/4 Site Restoration Funding Agreement, the Council, upon a determination that the requirements of the Plan and this Resolution have been successfully satisfied, shall amend the WNP-1/4 SCA as follows. The amended SCA shall include only the requirements as EFSEC, in the reasonable exercise of its discretion, deems necessary to assure completion of Level 3D restoration actions pursuant to the Plan. Those requirements will replace any and all requirements in the existing SCA. Further, Energy Northwest may request EFSEC to further amend or terminate the SCA to release those portions of the site and/or facilities that are proposed to be: 1) sold, leased or otherwise transferred and used for long-term economic development; and/or 2) no longer intended for the development of energy facilities larger than 350 megawatts. Approval of such SCA amendment or termination shall not be unreasonably withheld by EFSEC.

Resolution No. 302 - December 15, 2003

.2

WHEREAS, The Council has recognized that the actual demolition/restoration methods have not been determined at this time and that specific details of the Plan may require'additional review, approval, and monitoring by the Council; and -

WHEREAS, The Council agrees that upon the adoption of this Resolition approving the Energy Northwest's WNP-1/4 Site Restoration Plan, the state shall provide to Energy Northwest and BPA an immediate release from all claims, damages and causes of action, existing or otherwise, related to the restoration of the WNP-i and WNP-4 sites beyond the level in the approved Plan; and WHEREAS,'The Council recognizes that the adoption of this Resolution approving Energy Northwest's current WNP-114 Site Restoration Plan will supersede all previous site restoration plans and commitments and will close EFSEC Resolution No. 280; and WHEREAS, The Council recognizes that Energy Northwest has completed certain initial restoration tasks at the I and 4 projects that have benefited the public health, safety, and the environmient; and WHEREAS, The Council finds that the WNP-1/4 Site Restoration Plan (December 2002) is consistent with the public health, safety, and welfare; the applicable laws and regulations; and the intent of the WNP-1/4 SCA.

NOW, THEREFORE, BE IT RESOLVED, That the Energy Facility Site Evaluation Council hereby re-approves* Energy Northwest's Site Restoration Plan for Nuclear Projects Nos. I and 4 (December 2002), subject to the commitments therein; provisions of this Resolution; and Council laws and rles.

• Resolution No. 302 was initially approved by the Council on December 9, 2002.

BE IT FURTHM RESOLVED, That the Council hereby closes out Resolution No. 280; and the approved Plan supersedes all previous site restorationiplans for the WNP-1/4 projects..

BE IT FURTHER RESOLVED, Thit implementation of the near-term restoration activities and ongoing requirements will be reviewed and monitored by the Council.

Dated and effective this 15th'

'day of December,' 2003.

r WASHINGTON STATE ENERGY FACILITY SITE EVALUATION COUNCIL

~~~~~~~~~I' 'I n - '.--.-,.M By:

Jim Luce', EFSE Chair'-

Attest:

Allen Fiksdal, EFSEC Manager

Attachment:

Energy Northwest Site Restoration Plan for Nuclear Projects Nos. 1 and 4 (December 2002)

Resolution No. 302 - December 15, 2003 3

NORrHWS PO. Box 968 X Richiand, Washington 99352-0968 December 5, 2002 G01-02-0052 Mr. J.O. Luce, Chairman Energy Facility Site Evaluation Council P.O. Box 43172 Olympia, Washington 98504-3172

Subject:

NUCLEAR PROJECTS NOS..1 AND 4.

SiTE RESTORATION PLANS

Reference:

Letter GO1-99-034 dated June 30, 1999, AE Mouncer (Energy Northwest) to AJ Fiksdal (EFSEC), "Nuclear Projects Nos. 1 and 4, Revised Site Restoration Plan'

Dear Mr. Luce:

As you are aware the Departrment of Encrgy-Richland Operations Office (DOE-RL),

Bonneville Power Administration (BPA), Eniergy Northwest (EN), and the Washington State Energy Facility Site Evaluation Council have reached agreemfient on a site restoration plan-and funding for WNP-1 and WNP4. Thatagreement (Attachment D) includes a funding guarantee from Bonneville and is contingent upon EFSEC approval of the agreement and site restoration plan as proposed herein.

Energy Northwest proposes a Level 3D restoration plan (which does not require removal of the turbine pedestals), for the WNP-1 and WNP-4 projects to be implemented in two'phases (refer to Attachment A for historical information). The first phase. will consist of completing, in the next 18-24 months, essential, "Health, Safety, and Environmental Protection," restoration activities to place the sites in a safe state for potential reuse and/or long-term storage. The second phase will commence in twenty-three years and will complete the remaining activities to implement Level 3D restoration.

The information relevant for Council review of this restoration proposal is contained in the 1999 plan (Reference) and in Attachments B and C.

Deferral of major site restoration activities allows an investment real rate of. return, leverages multiple site restoration efficiencies, and maximizes reuse potential. Upon Council approval of this proposal, funds to cover both phases of restoration activities will be guaranteed pursuant to Attachment D.

Restoration Level 3D Initially, Restoration Level 3D, without the requirement to remove the turbine pedestals, was recommended (Reference) based on a combination of factors including public health and safety, environmental considerations, stakeholder and tribal perspectives, compatibility with legal agreements and land use plans, and cost. The proposed plan implements the 1999 Level

NUCLEAR PROJECTS NOS. 1 ANDM SITE RESTORATION PLANS Page 2 of 17 3D description, with the exception of pedestal removal, over a period of twenty-six years (simulated images are provided in Attachment E). Benefits of this proposal include near term

• completion of activities for health, safety, and environmental protection; additional'time to allow for funding accumulation'and reuse of existing infrastructure and facilities; and the ability to defer cost impacts on Northwest ratepayers.

A general description of Level 3D restoration follows., '

WNP-1 This restoration level provides for the installation of substantial doors to minimize access, ground area cleanup, elimination of potential hazards at ground level, and sealing of the General Services Building by removing selected walls to elevation 501' and completing selected concrete walls and roof areas. The Containment Building would remain intact, the turbine pedestal would remain in place, and the remaining power, block structures would be removed to ground level. Unused support buildings would also be removed.

WNP-4, This restoration level provides for substantial doors to minimize access, ground area cleanup, elimination of potential hazards at ground level, sealing of the General Services Building by removing selected walls to elevation 479' and pouring concrete roofs to seal the building, and seals the Containment Building by removing walls to elevation 479' and pouring' aconcrete roof at' that elevation..The 'turbine v pedestal would remain in place and the remaining power block structures would be removed to ground level. Unused support buildings would also be removed.

4 Further details are contained in Attachment C.

Proposed Plan Benefits Health; Safety, and Environmental Protection The proposed plan provides for sigdtficant,^ "health, safety, and environmental protection,": activities - to be'"

accomplished within the next 18-24 months, unless the Council agrees'to a longer. time period pursuant to Attachment D. These activities will ensure that a high level of protection is maintained at both sites until the major activities are completed or reuse negates the need for further restoration.

Funding The proposed plan provides funding assurance (Attachment D) to'complete activities at both WNP-1 and WNP-4. BPA has acknowledged its restoration funding responsibilities for WNP-1.t While no funding source for WNP-4 restoration exists, BPA has been willing to participate in funding some restoration of WNP-4 as a part of a total site restoration solution. This plan provides the long sought after solution for lack of funding for WNP-4 restoration and avoids the potential for costly and time consuming litigation.

It also allows for the leveraging of multiple site restoration efficiencies and maximizes the reuse potential of these facilities.

By deferring the major restoration activity by 26 years, the investment real rate of return from BPA's Restoration Trust Fund will work to accumulate the funds needed to complete site restoration at both sites.

NUCLEAR PROJECTS NOS. 1 AND 4 SITE RESTORATION PLANS Page 3 of 17 The 1999 Site Restoration Plan estimated the total cost to restore both WNP-1 and WNP4 to Level 3D at $48.3 million. Since that time, work estimated at $6 million to remove the asbestos-containing material from the cooling towers has been completed.

It is reasonable to believe that remaining work, in 2003 dollars, is about $45 million.

BPA proposes to establish a restoration trust fund and to guarantee an escalated $45 million be available to complete restoration within 26 years, unless the Council agrees to a longer period pursuant to Attachment D.

Reuse The utility infrastructure, warehouses, office buildings, and potentially some of the plant buildings still have a significant useful life for reuse. Many of these buildings and other site resources are currently being used to. support Columbia Generating Station activities. The White Bluffs Solar Demonstration Facility is also located on the WNP-1 property and is currently being considered for expansion. Energy Northwest is currently determining if there are additional economic development opportunities for these structures and land areas. Any reuse promotes local economic development and may dictate a delay in major demolition efforts or eliminate the need for restoration of certain facilities.

Ratepayer Impact The proposed Level 3D plan stretches out in time a major portion of the costs, thereby, relieving pressure on the BPA power rate structure.

Energy Northwest is currently finalizing preparations to proceed with the near-term activities.

However, work on these activities will not begin until Council approval of this proposed plan is obtained. Your earliest consideration of this proposal would be greatly appreciated. Should you have any questions or desire additional information regarding this matter, please contact JD Arbuckle at (509) 3774601.

Respectfully, Parrish Chief Executive Officer Mail Drop 1023 Attachments: as stated

NUCLEAR PROJECTS NOS. I AND 4 SITE RESTORATION PLANS Page 4 of 17 Attachment A Restoration Plan Historical Summary

References:

1) Letter GO1-95-012 dated March 8, 1995, WG Counsil (Supply System) to FS Adair (EFSEC), 'Nuclear Projects 1, 3, 4, and 5 Site Restoration Plan"

2) Letter dated June 15, 1995, JJ Zeller (EFSEC) to WG Counsil (Supply System), 'Nuclear Projects 1, 3, 4, and 5 Site Restoration Plan" (EFSEC Resolution No. 280)

3) 'Letter GO1-99-034 dated June 30, 1999, AE Mouncer (Energy Northwest) to AJ Fiksdal (EFSEC), 'Nuclear Projects Nos. I and 4, Revised Site Restoration Plan"

4) Letter dated December 17, 1999, D Ross (EFSEC) to JV Parrish (Energy Northwest), "WNP-1/4 Site Restoration" In 1995 Energy Northwest submitted an initial site restoration plan for its terminated nuclear power plant projects (Reference 1). EFSEC approved the plan and noted that there were a number of uncertainties associated with the restdration'work proposed in the plan (Reference

• 2). Accordingly, the Council conditioned its /approval on conducting' more detailed reviews as additional information became available and Energy Northwest was able to finalize its plans.

In 1999 Energy Northwest transmitted a revised'restoration plan that included economic development strategies for WNP-1 and WNP-4 (Reference-3).

The plan provided a cost benefit comparison of a range of restoration alternatives for WNP-1 and WNP-4. Benefits were assessed in terms of protection of the public's health and safety aiid the environment.

Both costs and benefits were determined by outside consultants. Based on these assessments, Energy Northwest recommended that a modified Level 3D restoration alternative would represent a balance between the priority objective of protecting the public's health and safety, while being environmentally responsible and cost effective. Approval by the Council was not requested at that time since the plan was contingent upon funding approval from BPA and concurrence by the landowner (USDOE).

Correspondence from the Council following the submittal of the 1999 plan encouraged Energy Northwest to complete its short-termn restoration activities contained in the plan, determine the economic development potential of the site, and pursue the approvals necessary to finalize the restoration plan (Reference 4).

Since that time, some short-term restoration activities have been completed, several econonmc development initiatives have been explored, and significant discussions between Energy Northwest, DOE-RL, BPA, and EFSEC management and staff have occurred.

Attachment B Revised WNP-1/4 Site Restoration Plan As described in the proposed restoration plan, certain activities will be completed within 18 - 24 months (Near Term) to maintain a level of public health, safety, and security until the sites are fully restored in approximately twenty-six years (Final Restoration). Completion of the Health, Safety, and Environmental Protection (HS&EP) activities will allow the sites to be available for selected reuse during the interim. Immediate reuse of certain facilities could result in some HS&EP activities being accomplished as part of a facility renovation.

To permit site reuse in the interim, selected site infrastructure (i.e., power lines, roads, railroad tracks, and other site utilities and structures) will remain to support economic development on, and adjacent to the site.

Exterior-General: Near Term Points of building entry will be provided with secure access doors or permanently sealed to prevent unauthorized entry.-

Relocate fencing and provide additional fencing to minimize footprint and' reduce unauthorized entry potential such that security patrols are not required. Install "No Trespassing" signs.:

Remove hazardous materials identified in the WNP-1 and WNP-4 Environmental Site Assessment.

Exterior fall hazards will be eliminated. Exterior trash will be removed.

Outside piping and electrical vaults will be sealed, protected, or demolished and backfilled, and the general outside areas will be graded.

Large underground piping will be capped.

Temporary buildings neither safe nor feasible for reuse will be removed.

The turbine oil tank will be removed.

The access ramp to the WNP-4 Containment Building will be removed.

Fence or remove exterior substations and distribution load centers to minimize entry potential.

Remove unnecessary fire protection loop valves and dead ends.

1

Building floor and roof drains will be plumbed to gravity drain to the building exterior or to a sump to minimize the buildup of water in basement areas.

Exterior - General: Final Restoration Slabs and remaining structures would be removed.

Close and cap landfill at completion of restoration.

Yard areas would be cleaned, contoured, graded, and seeded.

The large underground circulating water lines would be backfilled.

Roads and rail lines would be removed and graded clear.

The WNP-1 condensate tank will be removed.

WNP-1 Containment: Near Term The interior will be cleaned to remove trash, debris, and overhead hazards. As assets are removed, the scaffolding and any formwork that remains will be removed. A safe access path will be provided through the building.

The fire protection lines-will be drained.

WNP-1 Containment: Final Restoration The WNP-1 containment would remain as constructed. No additional actions would be required.

WNP-1 General Services Building: Near Term Concrete roofs would be poured at elevations 518' and 543'.

The fire protection lines will be drained.

WNP-1 General Services Building: Final Restoration No additional activity would be required.

2

WNP-1 Turbine

• Generator Building: Near Term The interiorwill be cleaned to remove trash, debris, and overhead hazards. As assets are removed,'the scaffolding and any formwork that remains will be removed. A safe access path will be provided through the building.

Seal transformer drains after trarisform& removal.

The fire protection lines will be drained.

WNP-1 Turbine - Generator Building: 'Final Restoration The structure would be removed.-

The turbine pedestal will remain.

The transformer footings and firewalls would be removed.

WNP-1 Cooling Towers: Near Term A chain link fence with locked gates will be provided to secure access to the cooling tower stairwells. Screening will be added to mninimize bird access.

~ ~

I Provide permanent seal to exit weir by sealing pipe providing drain holes in weir floor and backfilling to ground level.

WNP-1 Cooling Towers: Final Restoration The structures would be demolished to grade and the basin' slab renioved.

WNP-1 Circulating Water Pump House: Near Term' The interior will be cleaned to remove trash, debris, scaffolding, and formwork.

WNP-1 Circulating Water Pump House: Final Restoration The surface slab and the building would be removed and the pit would be backfilled.

3

WNP-1 Spray Pond and Pump House: Near-Term-A separate fence will be installed around the spray pond.

The interior will be cleaned to remove trash, debris, scaffolding, and formwork.

WNP-1 Spray Pond and Pump House: Final Restoration The building would be removed and the pond backfilled.

WNP-1 Remote Air Intakes/Chemical Waste Treatment Building: Near Term The interior will be cleaned to remove trash, debris, and formwork.

WNP-1 Remote Air Intakes/Chemical Waste Treatment Building: Final Restoration The remote air intakes would be removed to grade and backfilled.

The Chemical Waste Treatment Building and slab would be removed.

Holes would be placed in the bottom of the treatment pond and backfilled with 3 feet of dirt cover.

WNP-4 Containment: Near Term The interior will be cleaned to remove trash, debris, scaffolding, overhead hazards, and formwork.

The containment will be filled with earth to approximately the 479' elevation and a concrete floor would be poured at the 479' elevation.

Openings in the containment building will be sealed or anti-bird roosting screen will be installed.

Provide drain holes or passive system for water drainage.

Minimize protrusions or install anti-bird roosting devices.

WNP-4 Containment: Final Restoration No additional activity would be required.

41

I WNP-4 General Services Building:;NearTerm -'

The interior will be cleaned to remove trash,'debris, scaffolding, overhead hazards, and formwork in areas of work. The lower areas, where no access is required, will not be cleaned.'

A limited safe access path will be'provided for required maintenance activities and potential building reuse.

The walls would be demolished the 501' elevation. Metal roofing with a coating would be installed at elevations 501' and 479' to seal the building.

WNP-4 General Services Building: Final Restoration No additional activity would be required.

WNP-4 Turbine - Generator Building: Near Term Remove overhead fall hazards from the turbine pedestal.

The pedestal will be dressed up to eliminate protrusions or anti-bird roosting devices will be installed.

The transformer footings and firewalls would be removed.

WNP-4 Turbine - Generator Building: Final Restoration The turbine pedestal will remain.

WNP-4 Cooling Towers: Near Term A chain link fence with locked gates will be provided to secure access to the cooling tower stairwells..Screenihg will be added to minimize bird' access.

Provide permanent seal to exit weir by sealing pipe providing drain holes in weir floor and backfilling to ground level.

WNP-4 Cooling Towers: Final Restoration The structures would be demolished to'grade'and the basin slab removed.

WNP-4 Circulating Water Pump House: Near Term The surface slab would be removed and the pit would be backfilled.'

5

WNP-4 Circulating Water Pump House: Final Restoration No additional activity would be required.

WNP4 Spray Pond and Pump House: Near Term A separate fence will be installed around the spray pond.

The interior will be cleaned to remove trash, debris, scaffolding, and formwork.

WNP4 Spray Pond and Pump House: Final Restoration The building would be removed and the pond backfilled.

WNP-4 Remote Air Intakes/Chemical Waste Treatment Building: Near Term The remote air intakes would be removed to grade and backfilled.

Holes would be placed in the bottom of the treatment pond and backfilled with 3 feet of dirt cover.

WNP-4 Remote Air Intakes/Chemical Waste Treatment Building: Final Restoration No additional activity would be required.

Structures Common to WNP-1 & 4 River Intake Structure: Near Term The interior would be cleaned to remove trash and debris.

River Intake Structure: Final Restoration No additional activity would be required.

Security Access Building: Near Term The interior will be cleaned to remove trash and debris.

Security Access Building: Final Restoration Remove building.

6

Pipeline Corridor: Near Term The openings to the vent stations will be sealed.

Pipeline Corridor: Final Restoration No additional activity would be required.

I

. L..

' 4. -.

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WNP-1/4 SITE RESTORATION PLAN ATTACHMENT D WNP-1/4 SITE RESTORATION FUNDING AGREEMENT JANUARY 29, 2003

Department of Energy TRUE COPY Bonneville Power Administraton P.O. Box 3621 Portand, Oregon 97208-3621 POWER BUSINESS January 29, 2003 In reply refer to: P-6

• Letter offAgreement Contract No. 03PI)l 1279 Mr. Keith Klein, Manager Mr. J. V. Parrish, ChiefExecutive Officer U.S. Department of Energy A7-50

-Energy Northwest-MD 1023 Richland Operations Office

-P. O. Box 968 P.O. Box 550 Richland, WA 99352..

Richland, WA 99352 Mr. James 0. Luca, Chairman Washington Energy Facility Site Evaluation Council P. O. Box 43172 Olympia, WA 98504-3172 Gentlemen:

In September2002, Energy Northwest, the Departnt of Energy - Riceland Oplrafions Office

('RL') and the Bonneville Power Administration ('Bonneville") reached agreemnent on a proposed WNP-1/4 site ristoration and funding plan. Since that time, Energy Northwest and Bonneville management and staff-have held numerous discussions with the State of Washington's Energy Facility Site Evaluation Council 'ESEC") Chair and staff in-order to reach agreement on that proposal Ihe four entities (hereafter "Parties') have now concluded all discussions and have agreed on a new 9-point WNP-1/4 site restoration and funding proposal

('Proposal"). Ihe purpose of this letter of agreement is to describe the Proposal and document our agreement with it.

Independent, outside consultants assessed the costs and benefits of a' range of restoration ilternatives forWNP-I and WNP-4. Benefits were assessed in terms of protection of the public's health and safety and the environment. Baied on those assessments, Energy Northwest recommended to EFSEC that a Level 3D (with the exception of leaving in place the turbine pedestals) restoration alteinative would represent a proper balance between the priority objective of protecting the public's health and safety while being both environmentally responsible and cost effective. Thai level of restoration has been adopted in this Proposal.,

Additionally, considerable effort has been focused on investigating reuse opportunities for the WNP-1 ad aWNP4 facilities and clarifying site emergency preparedness procedures related to operations at the adjacent Columbia Generating Station. Based on interest expressed, there is some potential for economic development and reuse of a portion of the facilities at both sites.

2 Also, there are immediate health and safety concerns to address, mainly at WNP-4. However, starting major Level 3D restoration tasks beyond addressing these immediate concerns at this time would preclude the future use of these facilities. Thus, the immldiate initiation of major site restoration activities at either site is neither appropriate nor necessary. Delaying major site restoration expenditures also provides a solution to the lack of funding for WNP-4 restoration, by allowing WNP-1 restoration funds to grow to the point that they can cover both projects.

Accordingly, the Proposal to assure funding for WNP-1 and WNP4 restoration is as follows:

1. Within 18-24 months of EFJSEC approval of a revised Level 3D site restoration plan (Plan)' enclosed herein, "health, safety and environmental protection" activities needed to assure that WNP-1 and WNP-4 remain in a "safe state" compatible with reuse shall be completed by Energy NorthwestlBonneville or their designated contractor. The cost for these near-term restoration activities is expected to be between S3-4 million, with most activities occurring at WNP-4. These tasks are currently being prioritized and their costs.

estimated. If these costs exceed $4 million, Energy Northwest/Bonneville may request a reasonable extension of time to complete these tasks. Approval of such extension shall not be unreasonably withheld by EFSEC

2. Energy Northwest/Bonneville or their designated contractor shall: 1) commence by no later than 23 years; and 2) complete no later than 26 years from the date of EFSEC's approval of the Plan, all final Level 3D activities; provided, however, that at the request of Energy Northwest/Bonneville or RL if Energy Northwest elects not to maintain site control, EFSEC shall revisit either dlie withoutt prejudice if facility reuse or sequencing of WNP-1/4 restorbiton activities with Columbia Generating Station decom oning activities warrant extending either dater Approval of such extension of time shall not be.

unreasonably withheld by EFSEC.

3. Bonneville guarantees finding of restoration activities and environmental mitigation pursuant to the approved Plan and paragraph 6 below. The cost/funding tequirement is estimated at S45 miJon in 2003 dollars. In the event tha the S4 iion s

ite (appropriately adjusted for costs inkurred) escalated to 2025 dollars proves to be inaccurate and results in insufficient fimds being available to complete the restoration activities in 26 years, Bonneville shall make up the shortfall. Bonneville may make up the shortfall by requesting a reasonable extension of time to complete Plan tasks.

Approval of such extension shall not be unreasonably withheld by EFSEC.

4. Bonneville shall establish an external trust fund, agree to review funding status every five years, and provide EFSEC with annual reports regarding the accumulated funds in the tust. At EFSEC's discretion, it may audit the trust t The revised Lcvel 3D site restoration pla will not rcquire rmoval of the ttabine pedeals for WNp-l and WNP-4.

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5. The provisions of paragraphs 1-4 above are included in the Plan that EnergyNorthwest submitted by. letter dated December 5, 2002 for EFSEC approval. Implementation of the near-term "health, safety and environmental protections activities will be reviewed anid monitored by EFSEC.

• 6. Bonneville shall cause to be paidto EFSEC/the State $3.5 million for offseit environmental mitigation and other EFSEC activities that improve the environment This payment is made in recognition of the level of site restoration described in the Plan and the delay.allowed for the completion of final site restoration. These finds shall be used in EFSEC's discretion after consultation with the Washington Department of Fish and Wildlife, with the bulk of the funds to be spent for mitigation in Bentoi County.

Payment will be made in a lump sumaftr EFSEC approval of the'Plan and within 30 :

days of a request for payment by EFSEC. This payment will be deemed to iatis all

• requirements for wildlife or Wildifie habitat mitigation under EFSEC Resolution No. 296, provided that if additional construction or change in operation or opeiational conditions at the Columbia Generating Station result in the loss of additio'al wildlife or wildlife.

habitat then EFSEC may require Energy Northwest to undertake appropriate mitigation and Bonneville will guarantee payment pursuant to existing net-billing obligations.

7. EFSEC shall amend the Site Certification Agreement (SCA) upon completion of the near term health, safety and environmntalproection activities set out in the Plan; The aniended SCA shall include only those requirements as EFSEC in the reasonable exercise of its discretion deems necessary to assure completion of Level 3D restoration actions.

pursuant to paragraph 2. Those reqwrements.will replace anyannd requirements in the xisting SCA. Further, Bonneille may request EnergyNorthwest and/or Energy

'Northwest may request EFSEC to further amend or terminate the SCA'to release those.

portions of the site and/or facilities that are proposed to be: 1) sold, leased or otherwise transferred and used for long-term economic development; and/or 2) no longer intended

-por Xcdevelopment of energy facilities larger thai 350 MWs. Approval of such SCAk amendment orteminafion shall not be unreasonably withheld by EFSKEC

8. Effective uponi execution of this agreement and until final Levil 3D restoration activities are completed, EnergyNorthwest will maintain general liability insurance on the leased property in the minimum amount of $1,000,000 per incident and $10,000,000 aggregate limit and will include RL is an additional named insured. -Insurance coverage may include a deductible consistentivth industry standards. Thepolicy will be funded pursuant to generally accepted accounting principles. Bonneville will guarantee funding for the policy. These obligations shall not apply to any portion of the leased property that RL transfers ownership of, leases or otherwise permits the use of for other than WNP-1/4 purposes.

9. Upon approval of the Plan, the State shall provide to Energy Northwest, Bonneville, and the United States Government (including Rb and all other components of th U.S.

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Department of Energy) an immediate release from all claims, damages, and causes of action, existing or otherwise, related to the restoration of the WNP-I and WVNP4 sites beyond the level in the approved Plan.

It is important to note that each particular point in this Proposal is significant and rejection or revision of any particular point negates the Proposal in its. entirety, unless the oarties mutually agree otherwise. Additionally, until this Proposal has been agreed to and is effective, Bbnneville does not and is not acknowledging any liability or responsibility for any WVNP-4 costs.

However, once the Proposal has been agreed to and is effective, the parties will be bound by its terms. Once effective, Bonneville's guarantee for the payment of WNP4 restoration costs shall be strictly. limited to the obligations in the Proposal and is not intended to extend to any other WINP4 cost.

Please acknowledge your concurrence to the Proposal by signing all four originals. We will forward you one original after all have signed.

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DOId/V ?%.T%VI"-A A 4%

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AI 'JWA5 Senior Vice President Power Business Line Enclosure I concur with the above Proposal and agree to be bound by its trms:

Keit

.e J. V. ^fi~

Manager, Richland Operations Office Chiexecutive Officer U.S. De elpent of Energy EnerNo w t Date Date 1

James 0. Luce Chair Washington Energy Facility Site Evaluation Council DEC 0 3 2003 Date

V Steph.i n

adz~

Administ ato and Chief Executive Officer Bonneville ower Administration DEC 0 32 003 Date

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Gary Locke.

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7 Govemror State of Washington DEC 0 3 2003 Date i

. ; et I NUCLEAR PROJECTS NOS. 1 AND 4 SITE RESTORATION PLANS Page 16 of 17 (I

Attachment E Figures l

WNP-I Pre Restoration I

4 4-l WNP-1 Level 3D Restoration Completed I