ML081360326
| ML081360326 | |
| Person / Time | |
|---|---|
| Site: | Pilgrim |
| Issue date: | 06/09/2008 |
| From: | James Kim NRC/NRR/ADRO/DORL/LPLI-1 |
| To: | Entergy Nuclear Operations |
| kim J, NRR/ADRO/DORL, 415-4125 | |
| References | |
| TAC MD8205, FOIA/PA-2011-0148, FOIA/PA-2011-0137, FOIA/PA-2013-0151 | |
| Download: ML081360326 (10) | |
Text
June 9, 2008 Vice President, Operations Entergy Nuclear Operations, Inc.
Pilgrim Nuclear Power Station 600 Rocky Hill Road Plymouth, MA 02360-5508
SUBJECT:
PILGRIM NUCLEAR POWER STATION - EXEMPTION FROM THE SCHEDULE REQUIREMENTS OF 10 CFR 50.75(f)(3) (TAC NO. MD8205)
Dear Sir or Madam:
The Commission has approved the enclosed exemption from specific requirements of Title 10 of the Code of Federal Regulations (10 CFR) Part 50, Section 50.75(f)(3) for the Pilgrim Nuclear Power Station. This action is in response to your application dated February 28, 2008, Agencywide Documents Access and Management System (ADAMS) accession number ML081000176. This application requested an exemption to the schedule requirement of 10 CFR 50.75(f)(3) that requires a preliminary decommissioning cost estimate to be submitted to the Nuclear Regulatory Commission (NRC) at or about 5 years prior to the projected end of operations.
A copy of the exemption is enclosed. The exemption has been forwarded to the Office of the Federal Register for publication.
Sincerely,
/RA/
James Kim, Project Manager Plant Licensing Branch I-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. 50-293
Enclosure:
Exemption cc w/encl: See next page
ML081360326 *See memo dated May 5, 2008 OFFICE LPL1-1/PM LPL1-1/LA LPL1-2/LA PFPB/BC OGC LPL1-1/BC DORL/D(A)
NAME JKim SLittle ABaxter ACosta* JAdler MKowal TMcGinty DATE 5/21/08 5/22/08 5/21/08 5/5/08 5/29/08 6/03/08 6/06/08 Pilgrim Nuclear Power Station cc:
Regional Administrator, Region I Massachusetts Emergency U. S. Nuclear Regulatory Commission Management Agency 475 Allendale Road Attn: John Giarrusso, King of Prussia, PA 19406-1415 Nuclear Preparedness Manager 400 Worcester Road Senior Resident Inspector Framingham, MA 01702-5399 U. S. Nuclear Regulatory Commission Pilgrim Nuclear Power Station Mr. William D. Meinert Post Office Box 867 Nuclear Engineer Plymouth, MA 02360 Massachusetts Municipal Wholesale Electric Company Chairman, Board of Selectmen P.O. Box 426 11 Lincoln Street Ludlow, MA 01056-0426 Plymouth, MA 02360 Site Vice President Chairman Entergy Nuclear Operations Nuclear Matters Committee Pilgrim Nuclear Power Station Town Hall 600 Rocky Hill Road 11 Lincoln Street Plymouth, MA 02360-5508 Plymouth, MA 02360 General Manager, Plant Operations Chairman, Duxbury Board of Selectmen Entergy Nuclear Operations Town Hall Pilgrim Nuclear Power Station 878 Tremont Street 600 Rocky Hill Road Duxbury, MA 02332 Plymouth, MA 02360-5508 Office of the Commissioner Director, Nuclear Safety Assurance Massachusetts Department of Entergy Nuclear Operations Environmental Protection Pilgrim Nuclear Power Station One Winter Street 600 Rocky Hill Road Boston, MA 02108 Plymouth, MA 02360-5508 Office of the Attorney General Manager, Licensing One Ashburton Place Entergy Nuclear Operations 20th Floor Pilgrim Nuclear Power Station Boston, MA 02108 600 Rocky Hill Road Plymouth, MA 02360-550 MA Department of Public Health Radiation Control Program Schrafft Center, Suite 1M2A 529 Main Street Charlestown, MA 02129
Pilgrim Nuclear Power Station cc:
Senior Vice President Senior Manager, Nuclear Safety & Licensing Entergy Nuclear Operations, Inc. Entergy Nuclear Operations, Inc.
P.O. Box 31955 P.O. Box 31955 Jackson, MS 39286-1995 Jackson, MS 39268-1995 Vice President, Oversight Assistant General Counsel Entergy Nuclear Operations, Inc. Entergy Nuclear Operations P.O. Box 31995 440 Hamilton Avenue Jackson, MS 39286-1995 White Plains, NY 10601 Senior Vice President and COO Ms. Stacey Lousteau Entergy Nuclear Operations, Inc. Treasury Department 440 Hamilton Avenue Entergy Services, Inc.
White Plains, NY 10601 639 Loyola Avenue New Orleans, LA 70113 Vice President, Operations Entergy Nuclear Operations, Inc. Mr. James Sniezek Pilgrim Nuclear Power Station 5486 Nithsdale Drive 600 Rocky Hill Road Salisbury, MD 21801-2490 Plymouth, MA 02360-5508 Mr. Michael D. Lyster Mr. Michael Kansler 5931 Barclay Lane President & CEO/CNO Naples, FL 34110-7306 Entergy Nuclear Operations, Inc.
P.O. Box 31955 Mr. Garrett D. Edwards Jackson, MS 39268-1995 814 Waverly Road Kennett Square, PA 19348 Mr. John F. McCann Director, Nuclear Safety & Licensing Mr. John Doering Entergy Nuclear Operations, Inc. P.O. Box 189 440 Hamilton Avenue Parker Ford, PA 19457 White Plains, NY 10601
7590-01-P UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION ENTERGY NUCLEAR OPERATIONS, INC.
PILGRIM NUCLEAR POWER STATION DOCKET NO. 50-293 EXEMPTION
1.0 BACKGROUND
Entergy Nuclear Operations, Inc. (Entergy or the licensee) is the holder of Facility Operating License No. DPR-35, which authorizes operation of the Pilgrim Nuclear Power Station (Pilgrim). The license provides, among other things, that the facility is subject to all rules, regulations, and orders of the Nuclear Regulatory Commission (NRC or the Commission) now or hereafter in effect.
The facility consists of a boiling-water reactor located in Plymouth County, Massachusetts.
2.0 REQUEST/ACTION Title 10 of the Code of Federal Regulations (10 CFR), Part 50, Section 50.75(f)(3),
requires that Each power reactor licensee shall at or about 5 years prior to the projected end of operations submit a preliminary decommissioning cost estimate which includes an up-to-date assessment of the major factors that could affect the cost to decommission. Section 50.75(f)(5) requires a licensee at the same time to include, if necessary, plans to adjust funding levels to demonstrate a reasonable level of financial assurance, that funds will be available when needed for decommissioning. The current operating licensee expires on June 8, 2012.
In summary, by letter dated February 28, 2008, Agencywide Documents Access and Management System (ADAMS) accession number ML081000176, Entergy requested an exemption to the schedule requirement of 10 CFR 50.75(f)(3) to allow Entergy to submit the Pilgrim site-specific preliminary cost estimate by August 1, 2008, which is less than 4 years from the date of the expiration of the operating license. The exemption request applies to the timing of the submission of the preliminary cost estimate and did not request an exemption from any of the information requirements of the regulation.
3.0 DISCUSSION Pursuant to 10 CFR 50.12, the Commission may, upon application by any interested person or upon its own initiative, grant exemptions from the requirements of 10 CFR Part 50 when (1) the exemptions are authorized by law, will not present an undue risk to public health or safety, and are consistent with the common defense and security; and (2) when special circumstances are present. One of these special circumstances, described in 10 CFR 50.12(a)(2)(ii), is that the application of the regulation is not necessary to achieve the underlying purpose of the rule.
As documented in the Decommissioning Considerations for 1991 Rules and Regulations, the underlying purpose of 10 CFR 50.75(f)(3) is to provide a preliminary decommissioning plan, a cost estimate for implementing the plan, and any changes in funding necessary to ensure that there will be sufficient funds for decommissioning.
The NRC staff reviewed the licensee=s evaluation in support of the subject exemption request. Entergy submitted the decommissioning funding status report for Pilgrim on March 26, 2008. The NRC staff calculated Pilgrims required minimum funding assurance based on the formula under 10 CFR 50.75. The trust fund balances to the midpoint of decommissioning (December 2015), as effectively allowed under NRC regulations, was also calculated by applying a 2 percent real rate of return. Based on the formula amount, the Pilgrim
decommissioning trust fund has an excess of $125 million as of December 31, 2007, and will have an excess of more than $200 million by the time of expiration of the license.
Entergy submitted a license renewal application (LRA) for Pilgrim on January 25, 2006, which was approximately 6.5 years prior to the expiration date of the operating license for Pilgrim Station. In connection with the LRA, the final supplemental environmental impact statement was issued on July 27, 2007, and the safety evaluation report for the LRA was issued on June 28, 2007. Subsequently, the safety evaluation report was issued as NUREG-1891 on November 30, 2007. Although the licensee stated that the review of the LRA and milestones achieved constitute a clear indication that the LRA will be granted, the NRC does not agree.
Entergy's exemption request essentially relies on the fact that its LRA is pending before the NRC, certain milestones have been met, and that Entergy anticipates the NRC will render a final decision on the LRA on or about August 1, 2008. Entergy cites selected language from the statement of considerations for the proposed rule for license renewal, as well as language from the statement of considerations for the final license renewal rule, to support its exemption request. Entergy argues that the level of review, thus far, on the LRA and the achievement of certain milestones "represent a clear indication that the Pilgrim LRA would be ultimately approved." Therefore, the Commission should waive the requirement for a preliminary cost estimate, according to Entergy. Entergy further argues that "approximately four years prior to the expiration date of the current operating license . . . is within interpretation of the regulation" requiring a preliminary cost estimate at or about 5 years prior to the projected end of operations.
The NRC does not agree that the review, thus far, of the LRA and milestones achieved constitute "a clear indication that the LRA will be granted. Moreover, the NRC does not agree that submitting a preliminary cost estimate less than 4 years prior to license expiration is within
interpretation of the requirements of 10 CFR 50.75(f)(3).1 Therefore, based on the arguments presented by Entergy, an exemption is not warranted.
However, the NRC has considered the current funding levels of Pilgrim's decommissioning trust and the underlying purpose of 10 CFR 50.75(f)(3). Moreover, the NRC staff is not aware of any information indicating that the preliminary decommissioning cost estimate for Pilgrim is likely to be higher than the current minimum formula amount to such a degree that a problematic underfunding situation will exist that would require a full 5-year period to rectify.
Authorized by Law This exemption would allow Entergy to submit the Pilgrim site-specific preliminary cost estimate by August 1, 2008, which is less than 4 years from the date of the expiration of the operating license. As stated in Section 3.0 above, 10 CFR 50.12 allows the NRC to grant exemptions from the requirements of 10 CFR Part 50. The NRC staff has determined that granting of the licensee=s proposed exemption will not result in a violation of the Atomic Energy Act of 1954, as amended, or the Commission=s regulations. Therefore, the exemption is authorized by law.
No Undue Risk to Public Health and Safety The underlying purpose of 10 CFR 50.75(f)(3), is to ensure that all power reactor licensees maintain minimum decommissioning funding assurance that a facility will be able to decontaminate to NRC standards before a license is terminated. The exemption request applies to the timing of the submission of the preliminary cost estimate and did not request an exemption from any of the information requirements of the regulation.
1 If Entergy believes that submitting a preliminary cost estimate less than 4 years prior to the date of license expiration is within interpretation of the regulation, then it is not clear why Entergy has filed this exemption request.
The NRC staff notes that Entergy has not claimed that the projected end of operations unexpectedly moved to an earlier date as a result in change of circumstance (for example, early permanent shutdown), thus resulting in a period of time spent to submit a preliminary cost estimate well short of the 5 years.
Based on the above, no new accident precursors are created by allowing Entergy to submit the Pilgrim site-specific preliminary cost estimate by August 1, 2008, which is less than 4 years from the date of the expiration of the operating license. Similarly, the probability of postulated accidents is not increased. Therefore, there is no undue risk (since risk is probability multiplied by consequences) to public health and safety.
Consistent with Common Defense and Security The proposed exemption would allow Entergy to submit the Pilgrim site-specific preliminary cost estimate by August 1, 2008, which is less than 4 years from the date of the expiration of the operating license. This change to the plant requirements for the preliminary decommissioning cost estimate submittal has no relation to security issues. Therefore, the common defense and security is not impacted by this exemption.
Special Circumstances One of the special circumstances, described in 10 CFR 50.12(a)(2)(ii), is that the application of the regulation is not necessary to achieve the underlying purpose of the rule. The underlying purpose of 10 CFR 50.75(f)(3), is to ensure that all power reactor licensees maintain minimum decommissioning funding assurance that a facility will be able to decontaminate to NRC standards before a license is terminated. The NRC staff finds that the preliminary decommissioning cost estimate for Pilgrim is not likely to be higher than the current minimum formula amount to such a degree that a problematic underfunding situation will exist that would require a full 5-year period to rectify.
Based upon consideration of the information in the licensee=s submittal, the NRC staff concludes that this exemption meets the underlying purpose of the rule.
4.0 CONCLUSION
Accordingly, the Commission has determined that, pursuant to 10 CFR 50.12(a), the exemption is authorized by law, will not present an undue risk to the public health and safety, and is consistent with the common defense and security. In addition, a special circumstance is
present such that the application of the regulation in these particular circumstances is not necessary to achieve the underlying purpose of the rule. Therefore, the Commission hereby grants Entergy a schedule exemption from the requirement of 10 CFR 50.75(f)(3) to submit the Pilgrim site-specific preliminary cost estimate by August 1, 2008.
Pursuant to 10 CFR 51.32, the Commission has determined that the granting of this exemption will not have a significant effect on the quality of the human environment (73 FR 32607).
This exemption is effective upon issuance.
Dated at Rockville, Maryland, this 9th day of June 2008.
FOR THE NUCLEAR REGULATORY COMMISSION
/RA/
Timothy McGinty, Acting Director Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation