ML18072A341
| ML18072A341 | |
| Person / Time | |
|---|---|
| Site: | Zion File:ZionSolutions icon.png |
| Issue date: | 11/06/2017 |
| From: | Rielly T Vista 360 |
| To: | Brian Holian Office of Nuclear Reactor Regulation |
| Lois K, NRR/DLP, 415-8341 | |
| Shared Package | |
| ML18073A274 | List: |
| References | |
| Y020180052 | |
| Download: ML18072A341 (13) | |
Text
. 0 649 INNSBRUCK
- L!ERTYVILLE, ILLINOIS 60048 Vista 360 I TEL: 847-680-0670. FAX: 847-680-1940. E-MAIL: TR649@sBcGLOBAL.NET Monday, November 6, 2017 Mr. Brian Holian, Acting Director Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington D.C. 20555-0001 Subject : Zion Decommissioning & Site Rehabilitation Project Zion Nuclear Power Station, Units #1 & #2 Facility Operating License Numbers DPR-39 & DPR-48 NRC Docket Numbers 50-295 & 50-304
Dear Mr. Holian,
Vista 360 is a Public Interest Leadership group, we are seeking transparency, full
. disclosure and U.S. Nuclear Regulatory action in regard to the Zion Station Decommissioning.
Vista 360 is calling on you as the responsible party at the U.S. Nuclear Regulatory Commission to immediately assert an objection to any Zion Decommissioning Trust Fund requested draw downs or reimbursements accorded the present licensee, Zion Solutions LLC, regarding cited work on the above referenced Decommissioning &
Site Rehabilitation Project.
Vista 360 alleges Trust Fund improprieties, mismaoagement, misallocations and claims made for trust fund reimb*ursements that do not qualify as applicable Trust Fund Decommissioning expenses. Additionally, many large expenses do not meet the reasonableness-standard as called out by the Trust Documents which were approved by the U.S. Nuclear Regulatory Commission and other peer regulators of record. As beneficiaries of the Trusts, we urge you to take immediate action as legally to us the local funding public (beneficiaries) you have a fiduciary responsibility. Vista 360 requests that you also immediately conduct an independent professionally driven forensic audit of all financial accounting of the iicensee reiated to the above referenced Zion Decommissioning & Site Rehabilitation project for the years 2010-2017 and preceding years if appropriate.
As an initial assertion in recent years by our outside calculations through September 30, 2017, the U.S. Nuclear Regulatory Commission has permitted without objection the constant draw downs and re-imbursements from Trust Funds of approximately $ 300,000,000 dollars knowing that the licensee, Zion Solutions, had admitted previously that there was a deficit in Trust Fund Assets and the required tasks of completely Decommissioning the Zion facility as was promised to the public who funded the Trusts at nearly $1.0 Billion Dollars inclusive of accruals.
No withdrawals after this point should have taken place but the NRC ignored the situation and did little or nothing in regard to the financial management of Trusts.
Social Purpose Driven Leadership
Page #2 Monday, November 6, 2017 Brain Holian - USNRC/ONRR Contrary to regulatory dictates, Zion Solutions LLC, the licensee, by way of its Vice President & General Manger admitted the deficit Trust Fund status and that the company would be writing a check for any deficiencies in project costs. Needless to say, it isn't our assertion to be proven up with a he said - he said as this is clearly covered in the minutes of the proceeding Monday, December 8, 2014. Additionally, as you will note the U.S. Nuclear Regulatory Commission was present at the same meeting where the exchange with the public took place. We submit the minutes don't fully describe the licensee's tirade upon being questioned about the Trust Funds by the public. We attach for your review Exhibit A which covers Vista 360's assertion.
As you may know the U.S. Nuclear Regulatory Commission had its own investigation of Trust Funds related to incomplete or inaccurate information regarding various facility Decommissioning Status reports which included the Zion Nuclear Station. The NRC should have taken pause to consider this monumental internal NRC concern and proceeded accordingly with any new model. The record shows little or no engagement regarding caution and oversight of Trust Funds.
There was no reasonable assurance of Funds Availability in December 2014 and the US Nuclear Regulatory Commission was aware of it and did nothing to protect the beneficiaries of the Trusts. History dictates it has continued to do nothing in the way of reviewing any detail on Decommissioning expenditures since that date nor by asking any substantive questions or reviewing material related to the reasonableness standard covered by Trust Fund Documents. Additionally, as you may know by regulation the USNRC is the sole reporting agency for certain financial Decommissioning reporting by the licensee, Zion Solutions LLC so it is reasonable for the public to assume you are the ONLY regulator of record engaged with Decommissioning subject matter and finances at the Zion Decommissioning & Site Rehabilitation Project. This letter is not about your leadership role in Nuclear Safety and Security. It's about finances in a project and Decommissioning model you approved and have engaged solely as the regulator since the get go in 2008 which has been cited numerous times by the licensee, Zion Solutions, during public updates over the last 6 years. The Decommissioning model and landscape and events have shaped public opinion and the present facts.
° Vista 360
Page #3 Monday, November 6, 2017 Brian Holian- USNRC/ONRR By NRC published profile, it appears you have a background in licensing so you probably very well know that Facility Operating License Nos. DPR-39 & DPR-48 NRC Docket Nos. 50-295 & 50-304 were transferred twice (unprecedented) in this new STEWARDSHIP MODEL of Decommissioning. Zion as you know is the largest Decommissioning in U.S. Nuclear History with 2 reactors and almost a billion dollars in Trust Funds turned over to a company with little or no assets on the books and an undeclared to the public record of ownership and management as an LLC. With little doubt based on the prudent man rule the U.S. Nuclear Regulatory Commission should have from the beginning engaged the public more, listened more and been more responsive to pubiic questioning of the operating financial issues related to the Zion Decommissioning. The public numbering some 3,000,000 funded 100% of the projected Decommissioning costs of the project. It appears we are entitled to the return of any surplus.
Not sure how to succinctly address the spirit of public discontent with the U.S.
Nuclear Regulatory Commission in regard to the financial dimension of the Zion Decommissioning but the following points come to mind:
The NRC and it's front line regulators in Decommissioning promised at an initial NRC (transcribed) Public Meeting to answer post meeting all financial questions related to the Decommissioning model as proposed as it was BEING STUDIED and also agreed to show the public how the model would work BEFORE passing it to the Commissioners for review, consideration and approval. This asserted promise was never fulfilled, no one in Illinois was ever contacted and then the NRC Commissioners based on staff license transfer and trust fund recommendations for approval and pursuant to the Federal Register publication approved the transaction but the Licensee, Zion Solutions, then needed additional time to cobble together the financial dimension of the Order which took more than a year. The public feels the i\JRC should have taken pause to consider the future as a steward also. The record shows the NRC did little or nothing in regard to the public.
We want to remind you that the Stewardship Licensee's Parent company Energy Solutions (a former SEC public company) was sued by investors for making false projections and also misleading investors on full disclosure issues and as defendant's had to make a financial settlements with those investors for cheating them. This was clearly an emerging company (start up, a number of operating pieces, new format and organization) and the NRC should have taken pause to consider the evolving financial situation and engaged the public. The record shows the NRC did little or nothing in regard to the public.
° Vista 360
Page #4 Monday, November 6, 2017 Brian Holian - USNRC/ONRR Also, in the early Decommissioning two (2) Presidents & CEOs' departed along with at least 2 CFOs' immediately after the 1st license transfer. All of this under the Prudent Man Rule should have given the NRC pause to question the stewardship model and most importantly the integrity and culture of the licensee and its parent in regard to Trust Funds. The record shows the NRC did little or nothing in regard to the public.
The NRC thwarted Vista 360's FOIA request for a copy of the Zion Solutions Letter of Credit pursuant to the Commission's approval Order. It's worthy by current statement that the cost of issuing this specific letter of credit in Vista 360's opinion is not a legitimate Decommissioning expense. It is not the obligation of the public or Decommissioning Trust Funds to provide guarantees or start up financial footings or guarantees for new enterprises desiring to be Decommissioning providers.
The NRC is totally in another world on this fundamental use of Decommissioning Trusts and has ignored the prudent man rule related to what appear to be outsized line item expenses related to this facet of the Zion Decommissioning. The public has advanced it's perspective on this issue repeatedly to front line regulators over the last 6 years in various transcribed meetings. The record shows that the NRC has done nothing to heed or address the public concern on this matter.
Despite Public Written Requests for a Public Meeting on Decommissioning Finances front line regulators thwarted the public's request indicating a lack of budget for such a meeting and have since ignored all formal requests as made at open public meetings such as at the most recent and final License Termination Plan Public Meeting.
As the public sees it, the U.S. Nuclear Regulatory Commission should not be an enabler to the licensee where Decommissioning Trust Funds are concerned and we are demanding you take the appropriate action as outlined in this communication.
Thank you for your service Si IJ/}//
Thomas P. Riel(a Executive Principal Vista 360 ENCL
° Vista 360
By U.S. Certified Mail #7016 07050 0000 9709 9848
° Vista 360
- f: It ---
Zion Station Community Advisory Panel (ZCAP)
Monday, December 8, 2014 6:00 PM New Tech High / Zion-Benton High School 1634 23 rd Street Zion, IL Agenda Call to Order Approval of September 29, 2014 Meeting Minutes Chairperson's Remarks Zion Solutions.
Decommissioning Project Update Nuclear Regulatory Commission Presentation Public Comment and Questions Old Business New Business Set 2015 meeting dates Adjournment
ZCAP ZION STATION COMMUNITY ADVISORY PANEL MINUTES OF THE MEETING HELD ON DECEMBER 8, 2014 AT THE NEW TECH HIGH/ZION-BENTON HIGH SCHOOL Present: Brent Paxton, Chairman John Lewis, Secretary Craig Dyke Sheri Jesiel Cynthia Johnson Audrey Liddle Dcug Ower Linda Sittig Larry Booth Absent: Joel Brumlik Craig Mason Kent McKenzie Item 1: Call to Order The Chairman called the meeting to order at 6:00 pm.
Item 2: Approval of Minutes Motion to approve September 29.2014 meeting minutes was accepted, seconded and approved by all.
Item 3: Chairman's Remarks The Chairman gave a friendly reminder to silence all cell phones during the meeting.
Item 4: ZbnSolutions Presentations Decommissioning Status Update by John Sauger, General Manager Mr. Sauger gave a slide presentation on the Zion Status.
1
Disbursements and Balances ZionSolutions Nuclear Decommission Trust Balance Roll Forward - Cash Basis As of September 30, 2014
($ millions)
Beginning Balance 801.4 Earnings - Net of taxes and fees 109.3 Disbursements (565.8) .//
Ending Balance 344.9 t/'
Majority of Expenses incuned as follows:
- Project Management
- Procurement of casks and canisters for dry fuel storage
- Spent fuel transfer operations
- Class B&C packaging and disposal
- Class A waste disposal
- Unit 1 and 2 RV internals segmentation
- Unit 1 and 2 containment preparation and support
- Plant maintenance and secmity
- Asbestos remediation
- Site infrastructure Item 5: Comments, Questions and Answers Panel Comment and Questions Q: Are you cunently projecting 2018 as the finish date?
A: 2018 is the date that we will finish all physical work on site at which time we will submit the final paperwork to the N RC. We expect to get everything turned over back to Exelon in 2019.
Are there enough funds in the trust fund to cover the rest of the costs?
No, EnergySolutions would write a check to cover any balance.
Q: Could you explain the shorwgc in the trust fund?
A: When we did the estimate and the new schedule, we also looked at the trust fund performance. The fund has done very well so far. However, going forward we cannot take credit for great perform,mce, we have to take credit for the minimum performance.
t this time, with minimum performance, the end of the project shows a gap.
Q: Please explain what a rigging event is.
A: Any time you lose control of' a load with a crane and it is swinging, any time you bump into anything, or if you d rn I' a I oad.
Q: Do the reactor internal lower castings go to Clive by train or truck?
A: These will go out in special! ) built boxes on trucks.
2
Q: Is the Class B/C waste transport backlog gone?
A: Yes, we are caught up.
Q: Have all of the spent fuel liners arrived?
A: All but one, which will be here next Wednesday.
NRC Update Bob Orlikowski. Wayne Slawinski ;111d Matt Learn of the NRC gave an update on their role at Zion now and in the future.
Public Comment and Questions Q: What does the NRC require ror dry transfer?
A: There are no credible instances of a cask breaking. NRC requires the license holder to have the ability to repackagL* ;i cask.
Q: What will be public process he for the License Termination Plan?
A: There will be a public meeting 4-6 months after the LTP has been accepted by the NRC.
At that time the plan will be :1vailable to the public.
Q: What will the NRC and ZC /\ P do to help have meaningful public participation?
f A: NRC will provide staf at the meeting that can explain all the details in a way the public will understand.
Q: Why are the casks only inspected once per year?
A: NRC is on site often and wi11 continue to inspect the site until decommissioning is completed. Thereafter. the site is inspected at least once a year.
Q: Do you (NRC) ever do surprise inspections?
A: We don't do surprise inspect ions but we do inspections at odd hours.
Q: On the 40-year licensing of the casks- is it 20 +20 or 20 + 40?
A: It is 20 + up to 40.
Q: Are the stainless steel canis!l'rs designed to Ir.st that long?
A: Yes. The NRC is not aware or any discrepancies.
Q: Is there any history of an actual dry cask transfer back to a pool.
A: There have been several unhiding activities back to spent fuel pools.
What happened in the last 60 days to cause the shortage in the trust fund?
We did a rebaseline of the schedule since replacing risk with certainty.
What are the NRC funding requirements?
The law states that you are rL*quired to have sufficient funds to radiologicaly decommission the site. We liave the funds for that.
3
Q: Who is going to hold the license to this property when the project is complete?
A: The possession license for the fuel storage facility will be transferred to Exelon. Exelon will continue to own the property.
Q: What is the oldest existing dry cask storage system?
A: Approximately 25 years.
Q: What is a reasonable period 1d' time for on-site transfer of a compromised canister?
A: It would depend on the severity of the issue but at this time there is no credible evidence there would be such a sccnmio.
Q: Have you looked at the S<1n( lnofre safety study?
A: The NRC research show th:n fuel can be safely stored in one canister for at least 100 years.
Who has the overall financi:11 oversight responsibility for the trust fund?
There is an annual audit b:' 111 outside auditing firm. Exelon and the NRC also have access to all financial records Q: Is there continuous monitoring on the casks?
A: There is no present requircrncnt at this time for this specific type of cask. We are developing an aging n,anagcrnent program consistent with NRC and industry guidance.
Item 6: Old Business None Item 7: New Business 2015 Meeting Dates were discussed. ft was decided to have three scheduled meetings (February 23, June 8, and October 26) with the option to add a fourth if needed.
Item 8: Adjournment The next sclieduleC: meeting will be l*ebruary 23, 2015. The Chairman entertained z. mofon to adjourn the meeting. Motion was G1rried unanimously by the Panel. The meeting was adjourned at 7:30 pm.
4
'U.S.NRC United States Nuclear Regulat<H)* Commission Protecting People £tnd the Enuironnzent I ation
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December 8, 2014 1
Funding the Zion Station Decon1missioning and Site Restoration Proiect .;
The Zion Station decommissioning ZionSolutions additionally provided Deconrn:ssionir.g activities is a commercial project and not a a $200 Million Letter of Credit and government funded or public works an easement for disposal of radio would create significant
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The Nuclear Regulatory Commis lutions' Ciive, Utah disposal facility 1 r sion (NRC) is the principal Federal as additional financial assurances -L- C,( I I .J ;...t .. . ....,. VI I governmental regulatory organiza for decommissioning. i! nrrtheaster:, liiinois. Ovei tion that ZionSo/utions is account i: The NRC regulates Nuclear De the ten years that the project able to for employee and public commissioning Trusts. In accord health and safety. ZionSolutions ance with NRC requirements, the is estimated to take. direct holds two 10 CFR 50 reactor li Zion Trusts are held by a third party economic activities would censes for Zion issued by the NRC trustee and managed by inde for the purpose of the Zion Station pendent fund managers in compli generate approximately $39C decommissioning. ance with established investment miliion in new economic
- Nuclear Decommissioning Trusts guidelines.
output, 1,570 man-years of were established and maintained
- ZionSo/utions must request dis by Exelon in accordance with Fed bursements from the Trusts only employment. and almost eral Energy Regulatory Commis after work has been accomplished. $150 million in employment sion and NRC regulations. No funds can be withdrawn in ad-vance of performing work.
compensation throughout the
- The Trusts were funded by rate payer contributions over the life of The NRC monitors and regulates Illinois economy.
the plant. withdrawals from the Trusts. Zion The value of the Trusts has grown Solutions may not withdraw funds as the result of investment returns. for any purpose other than prudent decommissioning costs and may
- Ratepayer contributions into the not withdraw funds if such with Trusts ceased in 2006. drawal results in an insufficient
- ZionSolutions acquired the plant amount remaining in the Trusts to from Exelon on September 1, 2010 reasonably complete any remaining (excluding the spent fuel, switch work. Reports and certifications are yard, and land). provided to the NRC periodically per their guidelines.
- ZionSolutions assumed the risk and liability to complete the Zion 111 ZionSolutions must maintain ade Station decommissioning for the quate financial assurances to cover value of the Trusts that were trans the cost of decommissioning and ferred from Exelon to ZionSolutions must report the adequacy of Trusts on September 1, 2010. Ratepayer to the NRC on an annual basis.
responsibility for future decommis
- If there are excess trust funds at the sioning costs was eliminated. completion of the project, the ex cess funds are transferred back to For more information:
Exelon (for distribution to ratepay Larry Booth ers) along with the NRC licenses, Community Outreach Manager lwbooth@energysolutions.com land, and the spent fuel.
phone 224-789-4015 www.zionsolutionscompany.com 7JC*: 'jn.1d!r:,;i, !. ;,,, i 1 SL:;.:.idiary o, EJ:*qv.S. *1utrons fo1Tnr.:d SiJ'::!Cifi::ally tc C'):iuu:.:.t th:* _;tJ: www.energysolutions.com
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Community Purpose Driven Leadership Vista 360 is a nonprofit volunteer Public Interest Leadership group involved with problem solving issues that have a public dimension. We are a 2004 incubated new model of citizen engagement composed of scientists, engineers, business executives and academics who unilaterally and independently engage issues that have a potential impact on the public. We are a substance driven high impact low profile organization.
All volunteer participants are welcome but in essence, we are skills based critical thinkers who bring decades of work history, knowledge capital and life experiences to problem identification, definition, resolution and solution. History demonstrates as credentialed and experienced citizen experts that Vista 360 has made a constructive positive contribution to problem solving complex issues in the public domain where developing or actionable plans come into play.
Since 2007, Vista 360 has been engaged in the License Transfer, Trust Funds Transfer and the Zion Decommissioning & Site Rehabilitation of the Zion Nuclear Power Station (USNRC DPR-39 & DPR a two unit reactor facility) which is an Exelon Corporation asset located on Lake Michigan 48 miles north of Chicago. The new and novel Decommissioning model between Exelon Corporation and Zion Solutions LLC (parent organization, Energy Solution Partners/ Energy Solutions) and as reviewed and approved by the U.S. Nuclear Regulatory Commission (May 2009) involves the unprecedented License Transfer to an unregulated entity and previously unlicensed operator and then the multi-year Decommissioning of the Zion Facility using dedicated Decommissioning Trust Funds that have been advanced by the rate paying public in the Northern Illinois utility service area. The Zion Nuclear Power Station Decommissioning Trust Funds had an accrued capital value of$ 890,000,000 as of July 30th, 2010 which has been drawn down to meet the Decommissioning capital needs of the project.
Transparency, full disclosure and independent project oversight have been ongoing challenges since the conceptuath onset of the innovative Decommissioning model which is as of June 2014 in its 46 month. Vista 360 is NOT anti-nuclear, anti-utility, anti-contractor or anti-plan as we understand it. We ar'= pro-public and feel that this segment of the stakeholder universe has been marginalized by the existing system and the operating business model for the project so we have been engaged in all facets of the Zion Decommissioning Project's critical path and regulatory foot print since the onset of project activities. At present, we have accrued 5,015 professional project related public service hours as a purpose driven community service organization and contributor.
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