ML081700564

Review of the Spent Fuel Management Plan (Tac No. MD8035)

ML081700564
Person / Time
Site:	Vermont Yankee File:NorthStar Vermont Yankee icon.png
Issue date:	07/16/2008
From:	James Kim NRC/NRR/ADRO/DORL/LPLI-1
To:	Entergy Nuclear Operations
kim J, NRR/ADRO/DORL, 415-4125
References
TAC MD8035
Download: ML081700564 (7)

Text

July 16, 2008 Vice President, Operations Entergy Nuclear Operations, Inc.

Vermont Yankee Nuclear Power Station P.O. Box 250 Governor Hunt Road Vernon, VT 05354

SUBJECT:

VERMONT YANKEE NUCLEAR POWER STATION - REVIEW OF THE SPENT FUEL MANAGEMENT PLAN (TAC NO. MD8035)

Dear Sir or Madam:

By letter dated March 21, 2007 (Agencywide Documents and Management System (ADAMS)

Accession No. ML070860696), Entergy Nuclear Operations, Inc. (the licensee) submitted the report pursuant to Title 10 of the Code of Federal Regulations (10 CFR) 50.54(bb) titled Vermont Yankee Nuclear Power Station - Program for Maintenance of Irradiated Fuel and supplemental submittal (ML081200753) dated April 24, 2008, titled Response to Request for Additional Information. These submittals address how Vermont Yankee Nuclear Power Station (VY) will meet the requirements set forth in 10 CFR 50.54(bb).

The Nuclear Regulatory Commission (NRC) staff completed its review and determined that we are unable to provide preliminary approval of Entergy VYs spent fuel management program under 10 CFR 50.54(bb). The NRC staffs basis for not providing preliminary approval of Entergy VYs spent fuel management plan is documented in the enclosed safety evaluation. It is requested that the licensee provide a revised spent fuel management plan within 90 days.

Sincerely,

/RA/

James Kim, Project Manager Plant Licensing Branch I-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. 50-271

Enclosure:

Safety Evaluation cc w/encl: See next page

Vermont Yankee Nuclear Power Station cc:

Regional Administrator, Region I Ms. Carla A. White, RRPT, CHP U. S. Nuclear Regulatory Commission Radiological Health 475 Allendale Road Vermont Department of Health King of Prussia, PA 19406-1415 P.O. Box 70, Drawer #43 108 Cherry Street Mr. David R. Lewis Burlington, VT 05402-0070 Pillsbury, Winthrop, Shaw, Pittman, LLP 2300 N Street, N.W. Ms. Charlene D. Faison Washington, DC 20037-1128 Manager, Licensing Entery Nuclear Operations Mr. David O=Brien, Commissioner 440 Hamilton Avenue Vermont Department of Public Service White Plains, NY 10601 112 State Street Montpelier, VT 05620-2601 Resident Inspector Vermont Yankee Nuclear Power Station Mr. James Volz, Chairman U. S. Nuclear Regulatory Commission Public Service Board P.O. Box 176 State of Vermont Vernon, VT 05354 112 State Street Montpelier, VT 05620-2701 Massachusetts Emergency Management Agency Chairman, Board of Selectmen ATTN: John Giarrusso, Town of Vernon Nuclear Preparedness Manager P.O. Box 116 400 Worcester Rd.

Vernon, VT 05354-0116 Framingham, MA 01702-5399 Operating Experience Coordinator Jonathan M. Block, Esq.

Vermont Yankee Nuclear Power Station Main Street P.O. Box 250 P.O. Box 566 Governor Hunt Road Putney, VT 05346-0566 Vernon, VT 05354 G. Dana Bisbee, Esq.

Deputy Attorney General 33 Capitol Street Concord, NH 03301-6937 Chief, Safety Unit Office of the Attorney General One Ashburton Place, 19th Floor Boston, MA 02108

Vermont Yankee Nuclear Power Station cc:

Senior Vice President Vice President Oversight Entergy Nuclear Operations, Inc. Entergy Nuclear Operations, Inc.

P.O. Box 31955 P.O. Box 31955 Jackson, MS 39286-1995 Jackson, MS 39268-1995 Mr. Oscar Limpias Senior Manager, Nuclear Safety & Licensing Vice President, Engineering Entergy Nuclear Operations, Inc.

Entergy Nuclear Operations P.O. Box 31953 P.O. Box 31955 Jackson, MS 39286-1995 Jackson, MS 39286-1995 Senior Vice President and COO Mr. John A. Ventosa Entergy Nuclear Operations, Inc.

GM, Engineering 440 Hamilton Avenue Entergy Nuclear Operations White Plains, NY 10601 440 Hamilton Avenue White Plains, NY 10601 Assistant General Counsel Entergy Nuclear Operations, Inc.

Mr. Joseph P. DeRoy 440 Hamilton Avenue VP, Operations Support White Plains, NY 10601 Entergy Nuclear Operations, Inc.

P.O. Box 31955 Vice President, Operations Jackson, MS 39286-1995 Entergy Nuclear Operations, Inc.

Vermont Yankee Nuclear Power Station Mr. John R. Dreyfuss P.O. Box 250 Director, NSA Governor Hunt Road Entergy Nuclear Operations Vernon, VT 05354 Vermont Yankee Nuclear Power Station P.O. Box 250 Mr. James H. Sniezek Governor Hunt Road 5486 Nithsdale Drive Vernon, VT 05354 Salisbury, MD 21801 Manager, Licensing Mr. Garrett D. Edwards Entergy Nuclear Operations, Inc. 814 Waverly Road Vermont Yankee Nuclear Power Station Kennett Square, PA 19348 P.O. Box 250 Governor Hunt Road Vernon, VT 05354

Vermont Yankee Nuclear Power Station cc:

Ms. Stacey M. Lousteau Treasury Department Entergy Services, Inc.

639 Loyola Avenue New Orleans, LA 70113 Mr. Norman L. Rademacher Director, NSA Vermont Yankee Nuclear Power Station P.O. Box 250 Governor Hunt Road Vernont, VT 05354 Mr. Raymond Shadis New England Coalition Post Office Box 98 Edgecomb, ME 04556 Mr. James P. Matteau Executive Director Windham Regional Commission 139 Main Street, Suite 505 Brattleboro, VT 05301 Uldis Vanags State Nuclear Engineer Vermont Department of Public Service 112 State Street Montpelier, VT 05620-2601 Mr. Michael D. Lyster 5931 Barclay Lane Naples, FL 34110-7306

July 16, 2008 Vice President, Operations Entergy Nuclear Operations, Inc.

Vermont Yankee Nuclear Power Station P.O. Box 250 Governor Hunt Road Vernon, VT 05354

SUBJECT:

VERMONT YANKEE NUCLEAR POWER STATION - REVIEW OF THE SPENT FUEL MANAGEMENT PLAN (TAC NO. MD8035)

Dear Sir or Madam:

By letter dated March 21, 2007 (Agencywide Documents and Management System (ADAMS)

Accession No. ML070860696), Entergy Nuclear Operations, Inc. (the licensee) submitted the report pursuant to Title 10 of the Code of Federal Regulations (10 CFR) 50.54(bb) titled Vermont Yankee Nuclear Power Station - Program for Maintenance of Irradiated Fuel and supplemental submittal (ML081200753) dated April 24, 2008, titled Response to Request for Additional Information. These submittals address how Vermont Yankee Nuclear Power Station (VY) will meet the requirements set forth in 10 CFR 50.54(bb).

The Nuclear Regulatory Commission (NRC) staff completed its review and determined that we are unable to provide preliminary approval of Entergy VYs spent fuel management program under 10 CFR 50.54(bb). The NRC staffs basis for not providing preliminary approval of Entergy VYs spent fuel management plan is documented in the enclosed safety evaluation. It is requested that the licensee provide a revised spent fuel management plan within 90 days.

Sincerely,

/RA/

James Kim, Project Manager Plant Licensing Branch I-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. 50-271

Enclosure:

Safety Evaluation cc w/encl: See next page DISTRIBUTION:

PUBLIC RidsNrrDorlLpl1-1 RidsNrrPMJKim RidsOgcMailCenter LPL1-1 RF RidsNrrDprPfpb RidsNrrLASLittle RidsAcrsAcnw&mMailCenter RidsNrrDorlDpr RPowell, RI CPittiglio RidsRgn1MailCenter RidsNrrOd RidsNrrAdes SWilliams, EDO RI Accession No.: ML081700564 OFFICE LPLI-1/PM LPLI-1/LA PFFB/BC (A) OGC LPLI-1/BC NAME JKim SLittle MDusaniwskyj SUttal MKowal DATE 6/19/08 6/24/08 6/25/08 7/14/08 7/16/08 OFFICIAL RECORD COPY

SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO SPENT FUEL MANAGEMENT PROGRAM ENTERGY NUCLEAR OPERATIONS, INC.

VERMONT YANKEE NUCLEAR POWER STATION DOCKET NO. 50-271 On March 21, 2007, Entergy Nuclear Operations, Inc. (Entergy) submitted a report pursuant to Title 10 of the Code of Federal Regulations (10 CFR) 50.54(bb) titled Vermont Yankee Nuclear Power Station - Program for Maintenance of Irradiated Fuel. On March 12, 2008, the Nuclear Regulatory Commission (NRC) staff issued a request for additional information (RAI) to Entergy.

On April 24, 2008, Entergy submitted a report in response to the NRC staffs RAI dated March 12, 2008 (ML080710307). The NRC staff has reviewed Entergys submittals and, has concluded that it cannot give preliminary approval of Entergys spent fuel management program at this time.

Entergys response to the NRC staffs RAIs stated, Entergy VY plans to use funds from the decommissioning trust fund to cover spent fuel management costs. Title 10 of the Code of Federal Regulations (10 CFR) 50.75, requires that licensees provide decommissioning funding assurance for decommissioning costs. Such costs do not include spent fuel management costs under 10 CFR 50.54(bb). Funds placed in the decommissioning trust fund may only be used for decommissioning, unless the funds are in addition to decommissioning funds and if they have been earmarked for spent fuel management. Entergy has not earmarked such funds and does not have a separate subaccount to address spent fuel management costs. Furthermore, 10 CFR 50.75 allows a licensee who has submitted a site-specific cost estimate to take credit for projected earnings on the decommissioning trust fund using up to 2 percent annual real rate of return through the decommissioning period. A licensee may use a credit of greater than 2 percent and only up to the time of license expiration, if the licensees rate-setting authority has specifically authorized a higher rate. This is not the case for Entergy VY. Entergy VYs plan uses a real rate of return of greater than 2 percent through the specified SAFSTOR period, based on Entergys position that it is reasonable to consider historical performance of the fund, and Entergys pending request for license renewal, in order to show sufficient funds would be available to complete decommissioning.1 VYs use of greater than 2 percent is not authorized by a rate-setting authority, and as noted, no licensee may use a greater than 2 percent real rate of return after their license expiration. Therefore, it is unacceptable for VY to use greater than 2 percent real rate of return.

1 Although Entergy VY states that part of the basis for using greater than a 2 percent real rate of return is based on historical performance, Entergys trust fund balance as of December 31, 2006, was $416.5 million and as of December 31, 2007, was $439.6 million. Assuming an inflation rate of 3.3 percent based on recent historical figures, the trust fund only achieved a real rate of return of approximately 2 percent for the period from December 31, 2006 to December 31, 2007.

Enclosure

The NRC staff performed independent calculations regarding the Entergy plan. A 2 percent real rate of return on the trust fund balance of $439.6 million as of December 31, 2007, was applied.

The expenses identified in Table 3.5 of Entergy VYs submittal (ML080430658) dated February 6, 2008, titled Decommissioning Cost Analysis for the Vermont Yankee Nuclear Power Station were deducted from the decommissioning fund balance. The staff also added the $60.0 million (Entergys parent company commitment) in 2026. The NRC staffs result for the scenario analyzed, did not demonstrate that sufficient funds would be available to address decommissioning costs after the spent fuel expenditures projected to be spent prior to the completion of decommissioning were deducted. The review was based on the scenario that used a current license expiration date of 2012 with SAFSTOR and decontamination starting in 2043 (Table 3.5 of Entergy VYs submittal (ML080430658) dated February 6, 2008).

Withdrawals of the trust fund under 10 CFR 50.82(a)(8)(i)(A) are limited to legitimate decommissioning activities consistent with the definition of decommissioning. In addition, withdrawals under 10 CFR 50.82(a)(8)(i)(C) are not permitted if they would inhibit the ability of the licensee to complete funding of any shortfalls in the decommissioning trust needed to ensure the availability of funds to ultimately release the site and terminate the license. For the scenario that was indentified in Entergy VYs submittal and supplement, Entergy VY did not identify or acknowledge in their proposed spent fuel management plan the necessity for an exemption in accordance with 10 CFR 50.12, from the requirements of 10 CFR 50.82(a)(8)(i)(A) in order to use the decommissioning trust funds for spent fuel management expenses. In addition, Entergy did not propose to include a financial mechanism in the amount of the initial spent fuel management expenditures of approximately $160.0 million or other sufficient amount to provide reasonable assurance the spent fuel management withdrawals would not inhibit the ability of the licensee to complete radiological decommissioning.

Based on the foregoing discussion, the NRC staff is unable to provide preliminary approval of Entergy VYs spent fuel management program under 10 CFR 50.54(bb).

Principal Contributor: Larry Pittglio Date: July 16, 2008 Enclosure