ML13218A048

University of Florida - Request for Additional Information Updated Financial Information for License Renewal

ML13218A048
Person / Time
Site:	05000083
Issue date:	06/09/2014
From:	Duane Hardesty Research and Test Reactors Licensing Branch
To:	Jordan K Univ of Florida
Hardesty D
References
TAC ME1586
Download: ML13218A048 (7)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 June 9, 2014 Kelly A. Jordan, Ph.D.

Director, University of Florida Training Reactor 106 UFTR Building University of Florida Gainesville FL 32611-6400

SUBJECT:

UNIVERSITY OF FLORIDA - REQUEST FOR ADDITIONAL INFORMATION RE:

UPDATED FINANCAL INFORMATION FOR LICENSE RENEWAL (TAC NO. ME1586)

Dear Dr. Jordan:

The U.S. Nuclear Regulatory Commission (NRC) is continuing its review of the University of Florida (UF) application for the renewal of Amended Facility Operating License No. R-56, submitted by letter dated July 18, 2002 (Agencywide Documents Access and Management System (ADAMS) Accession Number ML022130145), as supplemented, in part, by letter dated May 3, 2010 (ADAMS Accession No. ML101250177), for the University of Florida Training Reactor (UFTR). During the course of our review, some of the information provided in your previous letters has become outdated and needs to reflect the current financial status of your facility. Please provide responses to the enclosed request for additional information within 90 days of the date of this letter.

In accordance with Title 10 of the Code of Federal Regulations (10 CFR), Section 50.30(b), you must execute your response in a signed original document under oath or affirmation. Your response must be submitted in accordance with 10 CFR 50.4, Written communications.

Information included in your response that is considered sensitive or proprietary, that you seek to have withheld from the public, must be marked in accordance with 10 CFR 2.390, Public inspections, exemptions, requests for withholding. Information related to security should be submitted in accordance with 10 CFR 73.21, Protection of Safeguards Information: Performance requirements. Following receipt of the additional information, we will continue our evaluation of your renewal request.

K. Jordan If you have any questions regarding this review, please contact me at (301) 415-3724 or via e-mail at Duane.Hardesty@nrc.gov.

Sincerely,

/RA/

Duane A. Hardesty, Project Manager Research and Test Reactors Licensing Branch Division of Policy and Rulemaking Office of Nuclear Reactor Regulation Docket No.50-083

Enclosure:

Request for Additional Information cc: See next page

University of Florida Docket No. 50-83 cc:

Dean Cammy Abernathy University of Florida College of Engineering PO Box 116550 Gainesville, FL 32611 Administrator Department of Environmental Regulation Power Plant of Siting Section State of Florida 2600 Blair Stone Road Tallahassee, FL 32301 State Planning and Development Clearinghouse Office of Planning and Budgeting Executive Office of the Governor The Capitol Building Tallahassee, FL 32301 Chief, Bureau of Radiation Control Department of Health 4052 Bald Cypress Way Tallahassee, FL 32399-1741 Brian Shea, Reactor Manager University of Florida Nuclear & Radiological Engineering Department P.O. Box 118300 Gainesville, FL 32611-8300 Test, Research and Training Reactor Newsletter University of Florida P.O. Box 118300 Gainesville, FL 32611-8300

ML13218A048 NRR-088 OFFICE NRR/DPR/PRLB/PM NRR/DPR/PRLB/LA NRR/DIRS/IFIB NRR/DPR/PRLB/BC NRR/DPR/PRLB/PM NAME DHardesty PBlechman MPurdie AAdams DHardesty DATE 06/05/2014 06/05/2014 06/06/2014 06/09/2014 06/09/2014

OFFICE OF NUCLEAR REACTOR REGULATION REQUEST FOR ADDITIONAL INFORMATION UPDATED FINANCIAL QUALIFICATIONS FOR THE RENEWED LICENSE FOR THE UNIVERSITY OF FLORIDA TRAINING REACTOR LICENSE NO. R-56 DOCKET NO.50-083 The U.S. Nuclear Regulatory Commission (NRC) is continuing its review of the University of Florida (UF) application for the renewal of Amended Facility Operating License No. R-56, submitted by letter dated July 18, 2002 (Agencywide Documents Access and Management System (ADAMS) Accession Number ML022130145), as supplemented, in part, by letter dated May 3, 2010 (ADAMS Accession No. ML101250177), for the University of Florida Training Reactor (UFTR). During the course of our review, some of the information provided in your previous letters has become outdated and needs to reflect the current financial status of your facility. Please provide responses to the enclosed request for additional information within 90 days of the date of this letter.

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 an update to the supplemental information provided by your letters dated February 26, 2010 (ADAMS Accession No. ML100610445), and May 3, 2010. In some cases, the responses provided in the letters may not have changed. In that case, please indicate in your response no change, no additional information is necessary, and the NRC staff will consider your response provided in the February 26, 2010, and May 3, 2010, submittals to remain current.

1. The NRC staff will analyze the financial statements for the current year, which are required by 10 CFR 50.71(b), to determine if the UF is financially qualified to operate the UFTR. Since UFs financial statements included with the application are out of date, provide a copy of the latest financial statements for the NRC staffs review.

2. 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 application is now out of date, provide the following additional information:

(a) Projected operating costs of the UFTR for each of the fiscal years (FYs) 2015-2019 (the first five year period after the projected license renewal).

(b) UFs source(s) of funding to cover the operating costs for the above fiscal years.

Enclosure

3. The application references a decommissioning cost estimate for the UFTR that states that the decommissioning cost estimate was $3.28 million in 2009 dollars, and includes a 25 percent contingency factor. The NRC staff needs the following additional information to complete its review of the UFTR decommissioning cost estimate:

(a) A current decommissioning cost estimate in 2015 dollars for the UFTR to meet the NRCs radiological release criteria for decommissioning the facility for unrestricted use, pursuant to 10 CFR 50.75(d)(2). Accordingly, describe the basis for how the cost estimate was developed (i.e., state the references for the decommissioning cost estimate).

(b) A summary of total decommissioning costs by labor, waste disposal, other items (such as energy, equipment, and supplies) in current dollars, and a 25 percent contingency factor.

(c) Provide a numerical example showing how the 2015 cost estimate will be updated periodically in the future.

4. The application indicates that UF plans to use a statement of intent (SOI) as the method to provide decommissioning funding assurance, as provided for by 10 CFR 50.75(e)(1)(iv). Where the applicant intends to use a SOI, the NRC staff must find that the applicant is a Federal, State, or local government licensee. To make this finding, the applicant must state that it is a State government organization and that the decommissioning funding obligations of the applicant are backed by the State government, and also provide corroborating documentation. Further, the applicant must provide documentation verifying that the signatory of the SOI is authorized to execute said document that binds the university. This document may be a governing body resolution, management directive, or other form that provides an equivalent level of assurance. As the application does not include all of the above information, submit the following:

(a) An updated SOI which includes the current (2015 dollars) cost estimate for decommissioning, a statement that funds for decommissioning will be obtained when necessary, and the signatorys oath or affirmation attesting to the information.

(b) Documentation that corroborates the statement in the application that UF is a State agency and a State of Florida government licensee under 10 CFR 50.75(e)(2)(iv).

(c) A statement as to whether the decommissioning funding obligations for the UFTR are backed by the State of Florida government. The application must also present documentation that corroborates this statement. For example, the documentation may be a copy of or complete citation to a state statute that expressly provides that the obligations, or at least the decommissioning funding obligations, of the applicant are backed or supported by the full faith and credit of the State of Florida, or an opinion of the applicants General Counsel with citations to statutes, regulations, and/or case law that the obligations, or at least those with respect to the decommissioning funding of the applicant are obligations backed or supported by the full faith and credit of the State of Florida.