ML15132A327
| ML15132A327 | |
| Person / Time | |
|---|---|
| Site: | Pennsylvania State University, 07000113 |
| Issue date: | 05/19/2015 |
| From: | Chris Mckenney NRC/NMSS/DDUWP/PAB |
| To: | Rachel Johnson Fuel Manufacturing Branch |
| Augustus R | |
| References | |
| Download: ML15132A327 (5) | |
Text
May 19, 2015 MEMORANDUM TO: Robert Johnson, Chief Fuel Manufacturing Branch Division of Fuel Cycle Safety, Safeguards, and Environmental Review Office of Nuclear Material Safety and Safeguards FROM: Christepher McKenney, Chief /RA/
Performance Assessment Branch Division of Decommissioning, Uranium Recovery, and Waste Programs Office of Nuclear Material Safety and Safeguards
SUBJECT:
2015 SAFETY EVALUATION REPORT INPUT WITH RESPECT TO PENNSYLVANIA STATE UNIVERSITY SELF-GUARANTEE Enclosed is our Safety Evaluation Report input with respect to the self-guarantee for Pennsylvania State Universitys Breazeale Nuclear Reactor and Special Nuclear Material licenses. Please contact Reginald Augustus if you have any specific questions regarding our input.
Docket Nos.: 050-0005,70-113 License Nos.: R-2, SNM-95
Enclosure:
Pennsylvania State University Self-Guarantee Safety Evaluation Report Input CONTACT: Reginald Augustus, NMSS/DUWP (301) 415-0165
MEMORANDUM TO: Robert Johnson, Chief Fuel Manufacturing Branch Division of Fuel Cycle Safety, Safeguards, and Environmental Review Office of Nuclear Material Safety and Safeguards FROM: Christepher McKenney, Chief /RA/
Performance Assessment Branch Division of Decommissioning, Uranium Recovery, and Waste Programs Office of Nuclear Material Safety and Safeguards
SUBJECT:
2015 SAFETY EVALUATION REPORT INPUT WITH RESPECT TO PENNSYLVANIA STATE UNIVERSITY SELF-GUARANTEE Enclosed is our Safety Evaluation Report input with respect to the self-guarantee for Pennsylvania State Universitys Breazeale Nuclear Reactor and Special Nuclear Material licenses. Please contact Reginald Augustus if you have any specific questions regarding our input.
Docket Nos.: 050-0005,70-113 License Nos.: R-2, SNM-95
Enclosure:
Pennsylvania State University Self-Guarantee Safety Evaluation Report Input CONTACT: Reginald Augustus, NMSS/DUWP (301) 415-0165 Distribution: CRyder ML15132A327 OFFICE DUWP/PAB DUWP/MDB DUWP/PAB NAME RAugustus TMoon CMcKenney DATE 5/12 /15 5/18 /15 5/19 /15 OFFICAL RECORD COPY
SAFETY EVALUATION REPORT INPUT DOCKETS: 50-0005,70-113 LICENSES: R-2, SNM-95 LICENSEE: PENNSYLVANIA STATE UNIVERSITY
SUBJECT:
2014 PSU SELF-GUARANTEE ANNUAL CERTIFICATION BACKGROUND By letter dated December 23, 2014, Pennsylvania State University (PSU) submitted its annual certification of their Self-Guarantee (SG) for its Breazeale Nuclear Reactor (Docket 050-0005) and Special Nuclear Material (Docket 70-113) [ML14364A125]. Additionally, on January 15, 2015, PSU provided supplemental information for the SG submission (ML15027A455). On March 3, 2015, the Performance Assessment Branch (PAB) in the Division of Decommissioning, Uranium Recovery and Waste Programs, Office of Nuclear Material Safety and Safeguards (NMSS), sent an email to the Fuel Manufacturing Branch (FMB) in the Division of Fuel Cycle Safety and Safeguards, NMSS, stating that PSUs submittal was adequate to perform a detailed review. On April 6, 2015, PAB staff sent an email to the FMB staff informing them that it had completed its technical review and found that the SG submission included all relevant elements per 10 CFR Part 70 and Appendix E to Part 30 and was therefore acceptable.
DISCUSSION Regulatory Requirements Nuclear facilities licensed under 10 CFR Part 70 are required to establish adequate financial assurance for decommissioning, decontamination and reclamation pursuant to 10 CFR 70.25, "Financial Assurance and Recordkeeping for Decommissioning."
10 CFR Part 70.25 requires that non-profit College and University licensees that utilize an SG to provide reasonable assurance of available funds for decommissioning costs through an SG, are required to annually provide an SG agreement and pass a financial test pursuant to Appendix E to 10 CFR Part 30, Criteria Relating to Use of Financial Tests and Self-Guarantees For Providing Reasonable Assurance of Funds For Decommissioning by Nonprofit Colleges, Universities, and Hospitals." PSU is a holder of a reactor license and a special nuclear material license and uses an SG for meeting the financial assurance requirements. This review pertains to SG for both of PSUs licenses.
Staff Review Upon review of PSUs December 23, 2014 submittal and January 15, 2015 supplemental information, the PAB staff (staff) finds that PSUs SG is acceptable.
Enclosure
Staff Review of Self- Guarantee and Supporting Documentation In its review, the staff relied on the regulations set forth in Appendix E to 10 CFR Part 30 and 10 CFR 70.25, as well as the U.S. Nuclear Regulatory Commission (NRC) guidance contained in NUREG-1757, Vol. 3, Rev. 1, Appendix A.9. PSUs December 23, 2014, submittal included:
- a SG;
- a letter from PSUs Associate Vice President for Finance and Corporate Controller and financial test;
- PSUs Audited Financial Statements; and
- a Standby Trust Agreement.
In order for PSU to qualify for use of a SG, it must satisfy the criteria found in 10 CFR Part 30, Appendix E, Section II.A.1 or A.2. PSUs December 23, 2014, and January 15, 2015 supplemental information submittal intends to demonstrate compliance with 10 CFR Part 30, Appendix E, Section II.A.1 (the Financial Test). The Financial Test, in pertinent part, requires that PSU have a current rating for its most recent bond issuance of AAA, AA, A as issued by Standard & Poors or Aaa, Aa, or A as issued by Moodys.
As part of the December 23, 2014, submittal, the letter from PSUs Associate Vice President for Finance and Corporate Controller included the identification of the Financial Test used as part of NUREG 1757, Volume 3, Appendix A, Checklist 9-B to demonstrate passage of the Financial Test.
The submittal states that the current bond rating of the most recent unsecured bond issuance is AA, as rated by Standard & Poors. Therefore, PSU meets the requirement of 10 CFR Part 30, Appendix E, Section II.A.1. Thus, PSU meets the requirements of the Financial Test.
10 CFR Part 30, Appendix E, Section III.A through F, describes the terms that are required in a SG:
- The guarantee will remain in force unless the licensee sends notice of cancellation by certified mail, and/or return receipt requested to the NRC. Cancellation may not occur unless an alternative financial assurance mechanism is in place;
- The license shall provide alternate financial assurance as specified in the NRCs regulations within 90 days following receipt by the NRC of a notice of cancellation of the guarantee;
- The guarantee and financial test provisions must remain in effect until the NRC has terminated the license or until another financial assurance method acceptable to the NRC has been put in effect by the licensee;
- The applicant or licensee must provide to the NRC a written guarantee which states that the licensee will fund and carry out the required decommissioning activities or, upon issuance of an order by the NRC, the licensee will set up and fund a trust in the amount of the current cost estimates for decommissioning;
- If, at any time, the licensees most recent bond issuance ceases to be rated in any category of A or above by either Standard and Poors or Moodys, the licensee shall provide notice in writing of such fact to the NRC within 20 days after publication of the change by the rating service; and
- A standby trust to protect public health and safety and the environment must be established for decommissioning costs before the self-guarantee agreement is submitted.
The staff finds the language of the SG to comply with the terms and conditions needed in NUREG-1757, Vol. 3, Rev. 1, Appendix A.9. Because the SG is consistent with the recommended language contained in NUREG -1757, Vol. 3, Rev. 1, Appendix A.9, Checklist B, which the NRC staff has previously determined would comply with the NRCs regulatory requirements, the staff therefore finds that the proposed SG meets the requirements of 10 CFR Part 30, Appendix E, Section III.A, B, C, D, E, and F.
Relying upon the SG dated December 23, 2014, and supplemental information provided on January 15, 2015, the staff finds that PSU meets the requirements of the Financial Test set forth in 10 CFR Part 30, Appendix E, Section II.A.1, the SG, Controller Letter, Audited Financial Statements, and Standby Trust Agreement are consistent with NRC guidance, and that the SG meets the requirements of 10 CFR Part 30, Appendix E, Section III.A through F.
CONCLUSION On the basis of the staffs review, as discussed above, PSU has demonstrated that (1) its financial condition meets the requirements of 10 CFR Part 30, Appendix E and (2) the language of the SG, Controller Letter, Audited Financial Statements submitted by cover letter dated December 23, 2014, supplemental information on January 15, 2015, and Standby Trust Agreement on file are consistent with NRC guidance. Therefore, the staff finds that PSUs December 23, 2014, SG, January 15, 2015 supplemental information, and supporting documentation are acceptable and are, therefore, approved.