ML17139B051

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Informs Commission of Recent Developments in Connection W/Issuance of OLs w/40-yr Duration.Several Applicants Requested Info.Susquehanna License Restricted to 5% Power for 40-yr Term
ML17139B051
Person / Time
Site: Susquehanna, LaSalle, 05000000
Issue date: 08/16/1982
From: Dircks W
NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To: Ahearne J, Gilinisky V, Palladino N
NRC COMMISSION (OCM)
Shared Package
ML17139B052 List:
References
TAC-60427, TAC-60428, NUDOCS 8209280148
Download: ML17139B051 (6)


Text

(

UNITED STATES EAR REGULATORY COMMISSIO WASH)MGTON, D. C. 20555 PUG 1 6 1982 hEHORAQOUM FOR:

Chairman Palladino Commissioner Gi 1 ins ky Commissioner Ahearne Commissioner Roberts Commissioner Asselstine FROM:

SUBJECT:

William J. Dircks Executive Director for Operations ISSUANCE OF OPERATING LICENSES WITH A 40-YEAR DURATION

'he purpose of this memorandum is to inform the Commission of recent developments in connection with,the issuance of operating licenses with

.a 40-year duration:

The governing language regarding duration of operating licenses is stated in Section

103, paragraph c., of the Atomic Energy Act as:

"Each such license shall be issued for a specified period, as determined by the Commissior depending on the type of activity to be. licensed, but not exceeding forty years, and may be renewed upon the expiration of such period."

This is reflected in 10 CFR 50.51:

"Each license will. be issued for a fixed period of time to be specified in the license but in no case to exceed 40 years from the date. of issuance; Where the operation of a facili. y is involved the Commission will issue the license for the term requested by the applicant or for the estimated useful life of the facility if the Commission determines that the estimated useful life is less than the term requested."

From the earliest issuance of construction permits and operating licenses, P~

f V,i>"

the Commission has tied the expiration date of licenses to the issuance date of construction permits.

This longstanding method of fixing the expiration date of operating licenses is routine practice originating at. ~ i" the time when the Commission issued Class 104 licenses for the construction and operation of nuclear power reactors and the licenses contained provisions relating to allocation of the supply and buy-back of government-owned special nuclear material for the lifetime of the license.

Contact:

Janis

Kerrigan,

&.'ERR X29788 8209280148 8208ih PDR ADQCK 05000387 p

PDR

The Commission (y

The practice of tying the expiration date of licenses to the issuance date of construction permits has recently been re-evaluated in connection with a petition for rulemaking (PRH 50-30), from Hr. Daniel Kane, President, Council.on Energy Independence dated September ll, 1981.

Hr. Kane requested that:;.

~ ".... the Commission propose a change to Section 50.51 which would restore the originally intended operating life of the plant:

Two alternatives are obvious:

(1) tie the expiration date of the OL to the date of issuance of the operating license, e.g.,

the license will expire 40 years from date of OL issuance; (2) lengthen the duration, e.g., the license will expi.re 5Q years from date of issuance of the CP."

At about the same time that PRH 50-30 was received, Comnnwealth Edison Company requested the'staff by letter dated September 23, 1981, to issue

.'the operating licenses for La Salle, Units 1

8 2, each for a full term of 40 years running from the date of the issuance of the licenses.

In response to an ERR request, OELD examined the issue in question and concluded, in Attachment 1, that:

. While the issue is not without doubt~ the better legal view is that the Commission must measure the 40-year period from the date of OL issuance if. requested to do so by the applicant, unless it finds that the estimated useful life of the facility is less than 40 years from the date of OL issuance."

On the basis of OLLD's position, the duration of the 5% power operation license issued for La Salle, Unit 1, on April 17, 1982, was set at 4Q years from the date of OL issuance.

In addition, the staff took the posi'tion on.hr.

Kane's petition that PRH 50-30 should be denied on the grounds that there was no need to amend 10 CFR 50.51 because its text perrnts the Commission to issue an. operating license for a fixed period of tfme requested by the licensee but not to exceed 40 years from the date of issuance of the operating license for the facili.ty.

By letter dated Hay 4, 1982, Ihe Council withdrew its petition for rulemakin."

on the following basis:

"l.

On April 17, 1982, the Nuclear Regulatory Commission issued Facility Operating License No. NPF-ll to. Commonwealth.

Edison Company which authorizes operation of the La Salle County Station, Unit 1.

NPF-ll expires on April 17, 2022 (40 years after issuance of the OL).

~ 2.

This action clearly demonstrates that the text of 10 CFR 50.51 permits the Commission to issue an operating license for a fixed period of time not to exceed 40 years from the date of issuanc= of the operating license for the facility.

The Comnission (~

Since the Commission's present actions now fully address the intent of our proposed rule and since we believe that the Coamission will continue to issue OL's for a length of time requested by the applicant (not to exceed 40 yea>w) and dated from the date of issuance of the OL, we accordingly withdraw, without prejudice, ouripetition for rulemal ing requesting an am ndment of 10 CFR 50.51 and request that the Comoission cease all work on PMi~50-30."

A Federa1

~Re ister notice was prepared announcing that the Commission is discontinuing further work on PRlh 50-30 since the Cormission agrees that 10 CFR 50.51 can be read to accomplish the result sought by the Council

without, am ndment.

Therefore, in the future, the staff will issue an operating license for the term requested by the applicant, but in no case to exceed 40 years from the date of issuance of the operating license, or for the estimated useful life of the facility if the staff determines that the estimated useful life is less than the term requested.

In developing the above-stated position, the staff established that the

'following procedures should be followed in processing requests for facility operation for a term of 40 years running from the date of the issuance. of the operating license!

1.

The utility must demonstrate that 40-yea

. facility operation" poses no safety problems; 2.

The utility must ensure that its Environmental R port unambiguously evaluat'es the environm ntal effects of 40-year facility operation; 3.

The staff must review and approve the utility submittals supporting 40-year facility operation; this tiill not only necessitate a staff finding on.the'cceptability of the proposed action from a safety st ndpoint, but could also necessitate a revision to the'staff's Environmental Statement; and 4.

The staff will notify.the appropriate hearing board when a

request having the effect of extending the duration of the operating license is received.

Thereafter, the s.aff v'i11 keep the board informed of all staff action on the request.

Currently, several applicants have requ sted information on the above procedures.

In addition, the staff, on July 17, 1982, issu d.a license restricted to 5% power. to the Pennsylvania Power IC Lignt Company.

The license allowed for operation of Susquehanna Steam Electric Station,"

Unit 1, for a full term of 40 years running from the date of issuance of'.the 'license.

ts;@g) Iiggm ]. 9lftlRC William J.

D.ircks.

Executive Director for Operations cc:

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In developing the above-stated position. the staff established that the following procedures should be followed in processing requests for facility operation for a term of 40 years running. from the date of the issuance of the operating license:

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The util)ty must demonstrate that 40-year facility operation poses no safety problems; 2.

The utility must ensure that its Environmental Report unambiguously evaluates the environmental effects of 40-year facility operati on; 3.

The staff must review and approve the utility submittals supporting 40-year facility operation; this will not only necessitate a staff finding on the acceptability of the proposed action from a safety 'standpoint, but could also necessitate a revision to the staff's Environmental Statement; and 4.

The staff will notify the appropriate hearing board when a request having the effect of extending the duration of the operating license is received.

Thereafter, the staff will keep the board informed of all staff action on the request.

Currently, several applicants have requested information on the above procedures.

In addition, the staff, on July 17, 1982, issued a license restricted to 5% power to the Pennsylvania Power 81 Light Company.

The license allowed for operation of Susquehanna Steam Electric Station, Unit 1, for a full term of 40 years running from the date of issuance of the license.

William J. Dircks Executive Director for Operations.

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Since the staff's action on LaSalle Unit 1 clearly expressed the intent of the staff with respect to extended term licenses, PRH 50-30 was withdrawn by the petitioner on flay 4, 1982.

A Federal Register notice is heing prepared announcing that the Comnission is discontinuing further work on PRH 50-30 since the Corrmission agrees that 10 CFR 50.51 can be read to accomplish the result sought by the Council without amendment, and will be so read in the future.

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