ML101200597

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RAI, Regarding Financial Qualifications for Rensselaer Polytechnic Institute Facility Operating License Renewal (ME1591)
ML101200597
Person / Time
Site: Rensselaer Polytechnic Institute
Issue date: 05/05/2010
From: William Kennedy
Research and Test Reactors Licensing Branch
To: Trumbull T
Rensselaer Polytechnic Institute
Kennedy, W B, NRR/DPR, 415-2784
References
TAC ME1591
Download: ML101200597 (5)


Text

May 5, 2010 Mr. Timothy Trumbull, Director Reactor Critical Facility Nuclear Engineering and Science Building Rensselaer Polytechnic Institute 110 8th Street Troy, NY 12180

SUBJECT:

RENSSELAER POLYTECHNIC INSTITUTE, REQUEST FOR ADDITIONAL INFORMATION REGARDING FINANCIAL QUALIFICATIONS FOR THE RENSSELAER POLYTECHNIC INSTITUTE REACTOR CRITICAL FACILITY LICENSE RENEWAL (TAC NO. ME1591)

Dear Mr. Trumbull:

The U.S. Nuclear Regulatory Commission (NRC) is continuing the review of your application for renewal of Facility Operating License No. CX-22 for the Rensselaer Polytechnic Institute Reactor Critical Facility dated November 19, 2002, as supplemented on July 28, and September 3, 2008. During our review, questions have arisen for which we require additional information and clarification. Please provide responses to the enclosed requests for additional information within 45 days of the date of this letter. In accordance with Title 10 of the Code of Federal Regulations Section 50.30(b), your response must be executed in a signed original under oath or affirmation.

If you have any questions regarding this review, please contact me at 301-415-2784 or by electronic mail at William.Kennedy@nrc.gov.

Sincerely,

/RA By Duane A. Hardesty for/

William B. Kennedy, Project Manager Research and Test Reactors Licensing Branch Division of Policy and Rulemaking Office of Nuclear Reactor Regulation Docket No. 50-225

Enclosure:

As stated cc w/encl: See next page

Rensselaer Polytechnic Institute Docket No. 50-225 Reactor Critical Facility cc:

Mayor of the City of Schenectady Test, Research, and Training Schenectady, NY 12305 Reactor Newsletter University of Florida Tim Rice 202 Nuclear Sciences Center Chief, Radiation Section Gainesville, FL 32611 Division of Hazardous Waste and Radiation Management NY State Dept. of Environmental Conservation 625 Broadway Albany, NY 12233-7255 Peter F. Caracappa, Ph.D, CHP Radiation Safety Officer NES Building, Room 1-10, MANE Department Rensselaer Polytechnic Institute 110 8th St.

Troy, NY 12180-3590 Mrs. Jessica Berry, RCF Supervisor NES Building, Room 1-10, MANE Department Rensselaer Polytechnic Institute 110 8th St.

Troy, NY 12180 Peter Collopy, Director EH&S Rensselaer Polytechnic Institute 21 Union Street Gurley Building 2nd Floor Troy, NY 12180 Alyse Peterson, State Liaison Officer Designee Senior Project Manager Radioactive Waste Policy and Nuclear Coordination New York State Energy Research &

Development Authority 17 Columbia Circle Albany, NY 12203-6399

May 5, 2010 Mr. Timothy Trumbull, Director Reactor Critical Facility Nuclear Engineering and Science Building Rensselaer Polytechnic Institute 110 8th Street Troy, NY 12180

SUBJECT:

RENSSELAER POLYTECHNIC INSTITUTE, REQUEST FOR ADDITIONAL INFORMATION REGARDING FINANCIAL QUALIFICATIONS FOR THE RENSSELAER POLYTECHNIC INSTITUTE REACTOR CRITICAL FACILITY LICENSE RENEWAL (TAC NO. ME1591)

Dear Mr. Trumbull:

The U.S. Nuclear Regulatory Commission (NRC) is continuing the review of your application for renewal of Facility Operating License No. CX-22 for the Rensselaer Polytechnic Institute Reactor Critical Facility dated November 19, 2002, as supplemented on July 28, and September 3, 2008. During our review, questions have arisen for which we require additional information and clarification. Please provide responses to the enclosed requests for additional information within 45 days of the date of this letter. In accordance with Title 10 of the Code of Federal Regulations Section 50.30(b), your response must be executed in a signed original under oath or affirmation.

If you have any questions regarding this review, please contact me at 301-415-2784 or by electronic mail at William.Kennedy@nrc.gov.

Sincerely,

/RA By Duane A. Hardesty for/

William B. Kennedy, Project Manager Research and Test Reactors Licensing Branch Division of Policy and Rulemaking Office of Nuclear Reactor Regulation Docket No. 50-225

Enclosure:

As stated cc w/encl: See next page DISTRIBUTION:

PUBLIC DPR/PRT r/f RidsNrrDpr RidsNrrDprPrlb RidsNrrDprProb WKennedy, NRR GLappert, NRR JSimpson, NRR ACCESSION NO.:ML101200597 Office PRLB:PM PRPB:LA PFAB:FA PRLB:BC PRLB:PM Name WKennedy GLappert JSimpson KBrock WKennedy (DHardesty for)

Date 4/30/2010 5/3/2010 5/5/2010 5/3/2010 5/5/2010

OFFICE OF NUCLEAR REACTOR REGULATION REQUEST FOR ADDITIONAL INFORMATION REGARDING FINANCIAL QUALIFICATIONS FOR RENSSELAER POLYTECHNIC INSTITUTE FACILITY OPERATING LICENSE RENEWAL LICENSE NO. CX-22 DOCKET NO. 50-225 As required by Title 10 of the Code of Federal Regulations (10 CFR) Section 50.33(f)(2),

[a]pplicants to renew or extend the term of an operating license for a nonpower reactor shall include the financial information that is required in an application for an initial license. To comply with this requirement, please provide the following updated and supplemental information to the November 19, 2002, Rensselaer Polytechnic Institute (RPI, the applicant) application (the application) and your request for additional information (RAI) responses dated July 21, 2008, and September 3, 2008, for a renewed facility operating license for the RPI Reactor Critical Facility (RCF).

1. Pursuant to 10 CFR 50.33(d), Contents of applications; general information, certain information is required by the applicant, Rensselaer Polytechnic Institute (RPI). To comply with the regulation, please update the application to include the names, addresses and citizenship of RPIs directors (Board of Trustees) and principal officers.

Also, please state whether RPI is owned, controlled, or dominated by an alien, foreign corporation, or foreign government, and if so give details.

2. The U. S. Nuclear Regulatory Commission (NRC) staff will analyze the financial statements for the current year, which are required by 10 CFR 50.71(b), to determine if the applicant is financially qualified to operate the RPI RCF. Since RPIs financial statements are out of date, please provide a copy of the latest annual financial statements for the NRC staffs review.
3. Pursuant to 10 CFR 50.33(f)(2), [t]he applicant shall submit estimates for total annual operating costs for each of the first five years of operations of the facility. Since the information included in the 2002 application, and RPIs RAI response dated July 21, 2008, is now out of date, please update the application by providing the following additional information:

(a) Projected operating costs of the RPI RCF for each of the years FY2011 through FY2015 (the first five year period after the projected license renewal).

(b) RPIs source(s) of funding to cover the operating costs for the above-mentioned fiscal year.

ENCLOSURE

4. RPI indicates in its July 21, 2008, RAI response that the cost for decommissioning the RPI RCF was $390,692.19 in 2008 dollars. NRC RAI 4(c) to RPI dated May 28, 2008, requested that RPI provide a description and bases of the means of adjusting the cost estimate and associated funding level periodically over the life of the facility to comply with 10 CFR 50.75(d). The NRC staff also requested that RPI provide a numerical example showing how the cost estimate will be updated periodically. In order to complete the financial qualifications review, the NRC staff needs the following information based upon estimated license renewal in fiscal year 2010:

(a) A current decommissioning cost estimate in 2010 dollars for the RPI RCF (to meet the NRCs radiological release criteria for decommissioning the facility for unrestricted use). Provide the basis for how the cost estimate was developed, showing costs, in current dollar amounts, specifically broken down into the categories of labor, waste disposal, other items (i.e., equipment and supplies),

and a contingency factor (normally 25 percent) pursuant to 10 CFR 50.75(d)(2).

(b) A description of the means of adjusting the cost estimate and associated funding level periodically over the life of the facility, to comply with 10 CFR 50.75(d)(2)(iii). Also, please provide a detailed numerical example showing how the 2010 decommissioning cost estimate will be updated periodically in the future.

5. On July 21, 2008, RPI submitted a response to NRC RAI 5 that RPI would like to achieve self-liquidity (i.e., use a self-guarantee as the method to provide funds for decommissioning). If the applicant intends to use the self-guarantee method for decommissioning funding assurance, please comply with 10 CFR Part 30, Appendix E regarding the self-guarantee test and submit all of the applicable documentation as described in Section A.14 of Appendix A of NUREG-1757, Vol. 3, Consolidated NMSS Decommissioning Guidance.