ML20028H259
| ML20028H259 | |
| Person / Time | |
|---|---|
| Site: | Rancho Seco |
| Issue date: | 11/14/1990 |
| From: | Keuter D SACRAMENTO MUNICIPAL UTILITY DISTRICT |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| AGM-NUC-90-279, NUDOCS 9011190270 | |
| Download: ML20028H259 (5) | |
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i L ' d=SACAAMENTO MUNICIPAL UTIUTY DISTRICT D
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95852 1830,1916) 452 3211 AN ELECTRIC SYSTEM SERVING THE HEART OF CALIFORNIA AGM/NUC 90-279
-November 14, 1990 U.S. Nuclear Regulatory Commission Attn:
Document Control Desk Hashington, DC 20555 Docket No.
50-312 Rancho Seco Nuclear Generation Station License No DPR-54 REDUCTION IN PRIMARY FINANCIAL COVERAGE AND EXEMPTION REQUEST FROM PARTICIPATION IN THE INDUSTRY RETROSPECTIVE RATING PLAN REQUIRING SECONDARY LEVEL FINANCIAL COVERAGE 10 CFR 140.ll(a)(4); 10 CFR 140.21; 10 CFR 140.92, APPENDIX B; 10 CFR 140.109, APPENDIX I; AND APPLICATION PURSUANT TO 10 CFR 140.92 ARTICLE II, SECTION 7
Reference:
1.
John Larkins (NRC) to Dan Keuter (SMUD), letter dated May 16, 1990, " EXEMPTION RELATED TO 10 CFR PART 55 -
REQUIREMENTS FOR A SIMULATION FACILITY AND SIMULATOR TRAINING (TAC NO. 75520)" and attachments.
2.
Dan Keuter (SMUD) to Seymour Heiss (NRC), letter dated October 19, 1990 " EXEMPTION FROM ONSITE PROPERTY DAMAGE AND DECONTAMINATION INSURANCE 10 CFR 50.54(w)(4), (Rev. 1)"
3.
Dan Keuter (SHUD) to John Larkins (NRC), letter dated April 26,1990, " PROPOSED AMENDMENT 184" 4.
The Price-Anderson Act of 1988, [42 u.s.c. 2014]
Attention:- Seymour Heiss Pursuant to 10 CFR 140.8 " Specific Exemptions," the District hereby requests an exemption from the requirements of 10 CFR 140.ll(a)(4); appropriate sections of 10 CFR 140.92, Appendix B; and-10 CFR 140.109, Appendix 1.
These regulations require primary financial protection of $200 million and participation in the industry retrospective rating plan. Current District insurance coverage for primary financial protection and the annual certified financial statement (10 CFR 140.21) for retrospective premiums meet these requirements.
Also, the District submits this application to enter into an agreement with the Commission to maintain an equitable amount of financial protection commensurate with the current plant condition.
10 CFR 140.92, Article II, Section 7, allows for a reduc; ion in the amount of financial protection, y
9011190270 901114 PDR ADOCK 05000312 Il g 1
PDC 95638 9799;(209) 333 2935 {
RANCHO SECO NUCLEAR GENERATING STATION O 1444o Twin Cities Road, Herald, CA J
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S. Heiss AGH/NUC 90-279 o
Because Rancho Seco is permanently shut down and completely defueled, credible accidents during power operations are not possible in the defueled condition (Reference 1).
The District concludes that an exemption from the full provisions of 10 CFR 140.11(a)(4) should be granted because:
There are no credible accidents posing a threat to public health and safety with Rancho Seco in its defueled condition.
The District has pending before the Commission an amendment to the 6
existing operating license for a Possession Only License, The NRC has issued a confirmatory order, dated May 2,1990, e
prohibiting the District from placing fuel into the reactor building, thereby modifying the District's license to operate the
- facility, i
The regulatory requirements for primary coverage and secondary protection were predicated on accident conditions that could exist at an operating facility.
These requirements are intended to extend liability coverage to cover the costs of "public liability action" (Reference 4) for an extraordinary nuclear occurrence or nuclear incident at facilities licensed by the Commission and participating in the retrospective rating plan.
The District's reason for requesting a reduction in the primary financial f
coverage and elimination of the requirement to participate in the retrospective rating plan is that these requirements constitute an undue financial hardship to District ratepayers.
Therefore, the District is proposing to reduce the primary financial protection from $200 million to $50 million and to eliminate participation in the retrospective assessment program.
- provides the District's justification and analysis for the entitled reduction and requested exemption.
Members of your staff requiring additional clarification or justification may contact Jerry Delezenski (209) 333-2935, extension 4914.
Sincerely, A
</
g9-Dan R. Keuter Assistant General Manager Nuclear l
1
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ATTACHMENT 1 MIIUfAIJ0K.10fLIXDiPl10N Requkement 10 CFR 140.8 " Specific Exemptions" allows for exemption from the requirements of 10 CFR 140 upon application, and states, "the NRC may grant exemptions from Part 140 regulations as determined by law and are otherwise in the public interest."
4 BO.Ckgt0Und The requirements for 10 CFR 140.11(a)(4) were predicated on the need to ensure financial protection, sufficient to cover public liability action, as a result of an extraordinary nuclear occurrence or nuclear incident.
This requires licensees having a rated electrical capacity of 100,000 electrical kilowatts or more to acquire the maximum amount of primary financial protection available at reasonable costs on reasonable terms from private sources.
In addition to primary financial protection, licensees are required to participate in an industry retrospective rating plan. On an annual basis, licensees must provide evidence that they meet the secondary liability requirement should the maximum primary financial coverage be deficient.
The regulation requires each licensee to have the capability to pay up to $63 million per accident in annual installments of no more than $10 million per reactor.
balls _for the_ExcInp1*pD Because of a public vote on June 6, 1989, the District shut down Rancho Seco Nuclear Generating Station and completed defueling operations on December 8 I
1989.
As discussed in Reference 1, the NRC has concurred that, with Rancho l
Seco in its current defueled condition, there are no longer any credible l
design basis accidents except loss of offsite power and a fuel handling i
accident.
The permanently defueled condition combined with administrative controls results in the minimum movement of fuel and thereby further reduces the possibility of:
an accident, an extraordinary nuclear occurrence, or e
i a nuclear incident.
Reference 2 presents the District's maximum foreseeable onsite losses and, as discussed in Chapter 11 of the Rancho Seco Updated Safety Analysis Report,
)
there are no credible accidents involving offsite radiological events resulting from non-power operations. Moreover, the NRC issued a confirmatory i
order modifying the Rancho Seco operating license to prohibit the movement of fuel from the Spent fuel Pool into the Reactor Building without prior Commission approval.
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Because this confirmatory order prohibits the District from resuming power operation without explicit approval by the NRC, the District falls outside the J
ambit of 10 CFR 140.11(a)(4). Other factors that support the non-operating status of Rancho Seco include:
i Stated intent to not operate Rancho Seco, The District's Proposed Amendment for " possession only status."
e The District's a*<alysis that the consequences of any postulated J
accident cannot exceed the primary financial protection requirements in its current defueled condition.
The District notes that the ConvTiission allowed withdrawal from the retrospective rating plan with the issuance of Amendment No. 23, dated December 19, 1989, to Indian Point Unit No. 1, including a reduction from the r
$?00 million primary financial coverage.
The Commission's action to grant specific reductions in primary and secondary coverage was based and contingent upon the licensee's (Consolidated Edison) initiation of an application for a modification of the operating license to a " possession-only" status, and the Commission's concurrence with that status.
The District notes that-on September 5, 1990, (55 FR 36349), subsequently amended as of October 10, 1990, the Commission published "E0 HCL 0E CONSIDERATION Of ISSUMCLOLMENDMBLIO_fACILIlL0EERATING LLCMSflRQ ERREOSIDJO_SIGElllCANT HAZARDS CONSIDERATION DETERMINATION AND OPPORTWIII
[QR HEARING" for the District's proposed amendment to a possess-but-not-operate status.
By this notice, the Commission agrees with the licensee's analysis and proposes to determine that the proposed amendment involves no significant hazards consideration.
The District believes tnat this action fulfills the contingent requirements and precedent during
. Consolidated Edison's request for exemption.
Because Rancho Seco is permanently defueled with a mofified operating license restricting fuel movement from the spent fuel pool to the reactor butiding, the District believes that reduced financial protect'on coverage is warranted.
Coverage of $50 million provides adequate coverage for legal liability stemming from any alleged radiological ex90sure. Also, pursuant to 10 CFR 50.90, the District submitted an applicatior., Proposed Amendment No.
184 (Reference 3), removing any reference to the use of special nuclear material for nuclear power operation of the facility (i.e., possession-only and zero-power).
Furthermore, the District and NRC concluded (Reference 1), that in the current defueled condition, there are no credible design basis accidents associated with Rancho Seco that are comparable, in consequence or severity, to the design basis accidents of an operating facility.
The District further concludes that there are no postulated accidents that could result in an extraordinary nuclear occurrence or a nuclear incident that could exceed the requested $50 million primary financial protection insurance coverage.
Because the District permanently ceased power operations and no longer receives revenues from operations, literal compliance with the regulatory requirements for full financial coverage and mandatory participation in the retrospective rating plan would result in undue financial hardship to the licensee and its ratepayers.
The District believes that the following conditions would constitute " extreme and undue financial hardship:"
payment of retrospective assessments under the secondary plan, and e
payment of insurance premiums under the primary plan.
The District has determined that the requirement to maintain primary financial coverage of $200 million is excessive, and is requesting a reduction from the full amount of $200 million to an amount of $50 million.
The District also requests a total exemption from the requirement for secondary liability coverage as required by the industry retrospective rating plan, and exemption from the 10 CFR 140.21 requirements to provide an annual certified financial statement.
This exemption and financial coverage is commensurate with:
the reactor defueled and all fuel safely stored in the Spent fuel
- Pool, 1
plant closure and layup activities.
an NRC issued license condition which prevents the movement of fuel into the reactor building without prior NRC approval.
a pending Possession Only License.
minimal potential consequences for accidents considered credible in the defueled condition, and the District's intent to never operate Rancho Seco as a nuclear generating facility.
The District further requests expedient NRC action be taken and the requested exemption granted to preclude financial hardships on the licensee and its ratepayers.
The District's evaluation has determined that exemption from the regulations of 10 CFR 140, as requested, does not compromise public health and safety.
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