ML17345A442

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Temporary Exemption from 10CFR50.54(w)(5)(i) Requirements Re Property Insurance Rule
ML17345A442
Person / Time
Site: 05000000, Turkey Point
Issue date: 09/29/1988
From: Varga S
Office of Nuclear Reactor Regulation
To:
FLORIDA POWER & LIGHT CO.
Shared Package
ML17345A440 List:
References
NUDOCS 8810100264
Download: ML17345A442 (5)


Text

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION 7590-01 In the matter of FLORIDA POWER AND LIGHT COMPANY (Turkey Point Plant, Units 3 and 4)

Docket Nos.

50-250 and 50-251 EXEMPTION Florida Power and Light Company (the licensee) is the holder of Facility Operating License Nos.

DPR-31 and DPR-41 which authorize operation of the Turkey Point Plant, Units 3 and 4.

The licenses

provide, among other things, that it is subject to all rules, regulations, and orders of the Commission now or hereafter in effect.

The facility consists of pressurized water reactors at the licensee's site located in Dade County, Florida.

On August 5, 1987, the NRC published in the FEDERAL REGISTER a final rule am~nding 10 CFR 50.54(w).

The rule increased the amount of an-site property

'damage insurance required to be carried by NRC's power reactor licensees.

The rule also required these licensees to obtain by October 4, 1988 insuranc~ policies that prioritized insurance proceeds for stabi lization and decontamination after an accident and provided for payment of proceeds to an independent trustee who would disburse funds for decontamination and cleanup before any other purpose.

Subsequent to publication of the rule, the NRC has been informed by insurers who offer nuclear property insurance that, despite a good faith effort to obtain trustees required by the rule, the decontamination priority and trusteeship provisions will not be able to be incorporated into policies by the time required in the rule.

In response to these comments and related petitions for rulemaking, 88iOi00264 880929 PDR ADOCK 05000250 J

PNU the Commission has proposed a revision of 10 CFR 50.54(w)(5)(i) extending the implementation schedule for 18 months (53 FR 36338, September 19, 1988).

However, because it is unlikely that this rulemaking action will be completed by October 4, 1988, the Commission is issuing a temporary exemption from the requirements of 10 CFR 50.54(w)(5)(i) until completion of the pending rulemaking extending the implementation date specified in 10 CFR 50.54(w)(5)(i), but not later than April 1, 1989.

Upon completion of such rulemaking, the licensee shall comply with the provisions of such rule.

Pursuant to 10 CFR 50.12, "The Commission

may, upon application by any interested person or upon its own initiative, grant exemptions from the requirements of the regulations of [10 CFR Part 50], which are... Author ized by law, will not present an undue risk to the public health and safety, and are consistent with the common defense and security."
Further, Section 50.12(a)(2) provides inter alia, "The Comnission will not consider granting an exemption unless special circumstances are present.

Special circumstances are present whenever... (v) The exemption would provide only temporary relief from the applicable regulation and the licensee has made good faith efforts to comply with the regulation.."

Despite a good faith effort to comply with the provisions of,the rule, insurers providing property damage insurance for nuclear power facilities and licensees insured by such insurers have not been able to comply with the regulation and the exemption provides only temporary relief from the app1 icab le regulati on.

As noted by the Commission in the Supplementary Information accompanying the proposed rule, there are several reasons for concluding that delaying for a reasonable time the implementation of the stabilization and decontamin'ation priority and trusteeship provisions of Section 50.54(w) will not adversely affect protection of public health and safety.

First, during the period of

delay, the licensee will still be required to carry

$1.06 billion insurance.

This is a substantial amount of coverage that provides a significant financial cushion to licensees to decontaminate and clean up after an accident even without the prioritization and trusteeship provisions.

Second, nearly 75% of the required coverage is already prioritized under the decontamination liability and excess property insurance language of the Nuclear Electric Insurance Limited-II policies.

Finally, there is only an extremely small probability of a serious accident occurring during the exemption period; Even if a serious accident giving rise to substantial insurance claims were to occur, NRC would be able to take appropriate enforcement action to assure adequate cleanup to protect public health and safety and the environment.

IV.

Accordingly, the Commission has determined, pursuant to 10 CFR 50.12(a),

that (1) a temporary exemption as described in Section III. is authorized by law, will not present an undue risk to the public health and safety, and is consistent with the common defense and security and (2) in this case, special circumstances are present as described in Section III. Therefore, the Commission hereby grants the following exemption:

The Florida Power and Light Company is exempt from the requirements of 10 CFR 50.54(w)(5)(i) until the completion of the pending rulemaking extending the implementation date specified in 10 CFR 50.54(w)(5)(i),

but not later than April 1, 1989.

Upon completion of such rulemaking the licensee shall comply with the provisions of such rule.

- 4 Pursuant to 10 CFR 51.3", the Commission has determined that the granting of this exemption will not result in any significant environmental impact

( 53 FR 38122),

This exemption is effective upon issuance.

Dated at Rockville, Maryland this 29th day of September, 1988.

FOR THE NUCLEAR REGULATORY COYiHISSION a

Dire Dsvision of Reactor Pr cts I/II Office of Nuclear Reactor Regulation

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