ML20012G482

Advises That Util 921130 Exemption Request from Funding Requirements of 10CFR50.75(e)(1)(ii) for Decommissioning to Have All Decommissioning Funds Collected Before Operation of Unit Terminated Not Necessary

ML20012G482
Person / Time
Site:	San Onofre
Issue date:	02/24/1993
From:	Brown S Office of Nuclear Reactor Regulation
To:	Ray H SOUTHERN CALIFORNIA EDISON CO.
References
TAC-M85128, NUDOCS 9303030195
Download: ML20012G482 (4)

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UNITED STATES NUCLEAR REGULATORY COMMISSION o

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February 24, 1993 Docket No. 50-206 Mr. Harold B. Ray Senior Vice President Southern California Edison Co.

Irvine Operations Center 23 Parker Street Irvine, California 92718

SUBJECT:

REQUEST FOR EXEMPTION FROM FULL FUNDING REQUIREMENTS OF 10 CFR 50.75(e)(1)(ii) (TAC NO. M85128)

In a letter dated November 3'l,1992, Southern California Edison (SCE) requested an exemption from the funding requirements of 10 CFR 50.75(e)(1)(ii) for decommissioning San Onofre Nuclear Generating Station, Unit 1 (SONGS-1) to have all decommissioning funds collected before operation of SONGS-1 was terminated.

i The NRC staff has reviewed your request and has determined that the exemption request is not necessary for SONGS-1. The Code of Federal Regulations, Section 50.75(e)(1)(ii) states that the total amount of funds sufficient to pay decommissioning costs must be accumulated at the time termination of operations is expected.

However, on July 9, 1992, the Commission adopted a Final Rule on Decommissionina Fundino for Prematurely Shut Down Power Reactors. See 57 Federal Peaister 30383.

In the Statement of Consideration premising that Rule, the Commission recognized that there would be situations where plants that prematurely shut down would not have accumulated funds sufficient to pay decommissioning costs. On this basis, the Commission amended its regulations in 10 CFR Part 50.82(a), effective August 10, 1992, to state that "For a facility which has permanently ceased operation before expiration of its operating license, the collection period for any shortfall of funds will be determined, upon application by the licensee, on a case-by-case basis taking into account the specific financial situation of each licen:,ee." Therefore, undcr 10 CFR 50.82(a), where a facility is shut down prior to the expiration of its operating license, the collection period to fund decommissioning is subject to a case-by-case review and need not be established by an exemption request.

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s February 24, 1993 Mr. Harold B. Ray It is important to note, however, that in the Supplementary Information on the Final Rule, the Commission stated that all funds are still required to be available or guaranteed by the time final dismantlement (deferred DECON) activities begin. Therefore, your application for a " case-by-case" review of a proposed funding plan under 10 CFR 50.82 must address how this requirement will be fulfilled.

Sincerely, Original signed by:

Stewart W. Brown, Project Manager Non-Power Reactors and Decommissioning Project Directorate Division of Operating Reactor Support Office of Nuclear Reactor Regulation cc:

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Mr. Harold B. Ray It is important to note, however, that in the Supplementary Information on the Final Rule, the Commission stated that all funds are still required to be available or guaranteed by the time final dismantlement (deferred DECON) activities begin. Therefore, your application for a " case-by-case" review of

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a proposed funding plan under 10 CFR 50.82 must address how this requirement will be fulfilled.

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W Stewart W. Brown, Project Manager Non-Power Reactors and Decommissioning Project Directorate Division of Operating Reactor Support Office of Nuclear Reactor Regulation cc: See next page d

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a Mr. Harold B. Ray San Onofre Nuclear Generating Southern California Edison Company Station, Unit No. I cc:

Mr. Howard J. Wong Mr. Richard J. Kosiba, Project Manager U.S. Nuclear Regulatory Commission Bechtel Power Corporation Region V 12440 E. Imperial Highway 1450 Maria Lane, Suite 210 Norwalk, California 90650 Walnut Creek, California 94596 Mr. Robert G. Lacy Manager, Nuclear Department San Diego Gas & Electric Company P. O. Box 1831 San Diego, California 92112 Resident Inspector / San Onofre NPS c/o U.S. Nuclear Regulatory Commission P. O. Box 4329 San Clemente, California 92674 Mayor City of San Clemente 100 Avenida Presidio San Clemente, California 92672 Chairman, Board of Supervisors County of San Diego 1600 Pacific Highway, Room 335 San Diego, California 92101 Regional Administrator, Region V U.S. Nuclear Regulatcry Commission 1450 Maria Lane, Suite 210 Walnut Creek, Califcrnia 94596 Mr. Hank Kocol Radiologic Health ? ranch State Department of Health Services Post Office Box 942732 Sacramento, California 94234 Mr. Don J. Womeldorf Chief Environmental Management Branch California Department of Health Services 714 P Street, Room 616 Sacramento, California 95814 i

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