ML20137R975
| ML20137R975 | |
| Person / Time | |
|---|---|
| Site: | Peach Bottom, 05000000 |
| Issue date: | 09/07/1976 |
| From: | Conner T CONNER, HADLOCK & KNOTTS |
| To: | Rusche B Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML20136D410 | List: |
| References | |
| FOIA-85-426 NUDOCS 8509240021 | |
| Download: ML20137R975 (30) | |
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- LAW OFFICEN.
to a CONNEnSe KxoTTs 3747 PENNSYI.VANI A AVENU E, N. W.
WAS111NOTON, D. C. 20000 yssoy ,s. Cowsen.Ja .
40.e n . xuorrS. on. September 7, 1976 ...,.33 33oo J. WICllAEL McOANNY, III y
WICMOLAS S. IEEYNOLDS MA*'M J. WETTERilAltN Mr. Benard C. Rusche Director of Nuclear Reactor Regulation U. S. Nuclear Regulatory. Commission Washington, D.C. 20555 i In the Matter of Philadelphia Electric Company, et al.
(Peach Bottom Atomic Power Station, Units 2 & 3)
Docket Nos. 50-277 and 50-278
Dear Mr. Rusche:
i The owners of the Peach Bottom Atomic Power Station, Units 2 and 3, and the York County Industrial Development
. Authority propose to enter into an agreement the purpose of which is to finance certain portions of the facility designed, inter alia, for the abatement of atmospheric and water pollution.
In order to satisfy the technical requirements of Section 1.103-8 (g) (2) (i) (b) of the Internal Revenue Income Tax Regulations and the June 15, 1976 tax ruling pursuant to which the finan-cing is to be carried o'ut (a copy of which has already been
,. provided to the Office of the Executive Legal Director), the NRC is requested to certify that the portions of the Station for which ccrtification is sought, as designed, are in the
- furtherance of the purpose of abating or controlling atmos-pheric pollutants or contaminants, or water pollution.
For your convenience we have attached a suggested form
- of such a certificate which you may wish to use.
- Inasmuch as such certificate is necessary for the completion
- of the financing arrangements which will otherwise be completed this week, ne request that you give expeditious consideration to this request and issue the certificate no later than September 9, 1976.
- We gre.bly appreciate the cooperation from you and your staff. _
- Sincerely,
$f 1 Yh N Y/h ,
) /14 Troy B
&HSD x.
Conner, Jr.
(TBC/pv x f
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, 7 LEAR REGULATORY. COMMISSI' t b PEACH BOTTOM ATOMIC POWER STATION, UNITS 2 AND 3 DOCKET NOS. 50-277 and 50-278
, CERTIFICATE
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of The United States Nuclear Regulatory Commission, being duly authorized, certify as follows: ,
The cooling tower system and the components of the gaseous raduaste system described in the project description contained in Schedule A hereto, which is also contained in the proposed Pollution Control Facilities Agreement between the York County Industrial Development Authority and Atlantic City Electric Company, Delmarva Power & Light Company, Phila-delphia Electric Company, and Public Service Electric and Gas Company, are, as designed, in furtherance of the purpose of controllinc; water pollution and atmospheric pollutants, respec-tively. -
. FOR THE NUCLEAR REGdLATORY COMMISSION By:
. Dated: Sen' amber __, 1976 I,_ , hereby certify that is an efficar of the Nuclear Regulatory Commission and authorlied to execute the above certificate.
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Dated: September __, 1976
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SCIIEDULE A PEACII BOTTOM ATOMIC POWER STATION POLLUTION CONTROL PROJECT FACILITIES
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A. Gencial Operation of the Units The combined capacity of Units 2 and 3 is approximately 2200 mega- ,
watts gross. The Units employ so-called " boiling water reactors" and operate gencially as follows:
- -(1) IIcat generated by the reactor in cach Unit boils water and ,
produces steam which drives a turbine-generator. ,
- - (2) After passing through the turbines, the steam passes to con-
". denscrs where it is condensed into water (" condensate") for return to the reactors. The condensers are cooled by a flow of cooling water
. pumped from the Susquehanna River and returned to it via the cooling towers discussed hereinafter. The cooling water does not mix with the condensate.
(3). The condensate is returned to the reactors, where the process of boiling to produce steam is repeated.
B. Pollution Control Facilitics .
Descriptions of the specific pollution control facilitics (the " Project Fa-ciliti,cs") proposed to be financed are as follows: .
Three mechanical draf t towers, cach (1) Coolf :g Tower System. , ,
containing cleten cells, are installed and operating.
Two additional mechanical drait towers, containing fourteen cells cach, .
are being inst .lled. s The cooling tower system includes the five towers together with pumps, ptunp struct*: es, supply pipe, berms, dikes and culverte. The purpose ,
of the cooling tower system is to prevent thermal contamination of the Susquehanna River.
(2) Gascous Radweste System. The components of the gaseous ..
radwaste system included in the project are the off. gas filters and re-lated hold-up piping. ,
- (3) Soll.! Radweste System. The components of the solid rad.
waste system included in the project are the hoppers and conveyors -
- rccciving c. ntrate from the centrifuge. , .
- . (4) Sc r gc Plant. The sewage plant is installed as a disposal fa.
cility for plai . sewage. .
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oCIIEDULE A PEACH BOTTOM ATOMIC POWER STATION POLLUTION CONTROL PROJECT FACILITIES
. A. GeneralOperation of the linits The combined capacity of Units 2 and 3 is approximately 2200 mega- ,
watts gross. The Units employ so-called " boiling water reactors" and operate generally as follows:
(1) Heat generated by the reactor in each Unit boils water and producca steam which drives a turbine genemtor.
(2) After passing through the turbines, the steam passes to con- /
densers where it is condensed into water (" condensate") for return to the reactors. The condensers are cooled by .a flow of cooling water .
pumped from the Susquehanna River t.nd retumed to it via the cooling '
towers discussed hereinafter. The cooling water does not mix with the condensate.
(3) The condensato is returned to the reactors, where the process of boiling to produce steam is repeated.
B. Pollution Control Facilitics Descriptions of the specific pollution control facilities (the " Project Fa-
' cilitics") proposed to be financed are as follows: ;-
'_. (1) Cooling Tower System. Three mechanical draft towers, each containing eleven cells, are installed and operating.
- Two additional mechanical draft towers, containing fourteen cells each, are being installed.
The coming tower system includes the five towers together with pumps, pump structures, supply pipe, berms, dikes and culverts. The purpose of the moling tower system is to prevent thennal contamination of the Susqucuanna River.
(2) Geseous Radwoste System. The components of the gaseous radwasta system included in the project are the ofi gas filters and re-lated hold up piping. -
(3) Solid Radweste System. The components of the solid rad- ,
waste r.;/ stem included in the project are the hoppers and conveyors .
receivini concentrate from the centrifuge.
. (4 Sewage Plant. The sewage plant is installed as a disposal fa-cility b plant sewage.
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interndi Rc'venut irvica Departr t of the Treasury Washington, DC 20224 Person to
Contact:
A. L. Woodman
- Ballard, Spahr, Andrews and Ingersoll Telephonc Number: 202-964-3392
- 1035 Land Title Building .
Philadelphia, Pa. 19110 nefer neply to:
T:C:E:A:3 Attn: Sheruin T. McDowell,Esq. Date: #;; 15 UTB and Frederic L. Ballard, Jr. , Esq. .
Re: York County Industrial Development Authority;
.s Peach Bottom Projec't '
Gentlemen:
This letter replies to your ruling request dated
, August 7, 1973, as modified and supplemented thereafter, filed on behalf of York County Industrial Development Authority.(Authority). The request seeks rulings in respect of the tax-exempt status for Federal income tax purposes of the interest on a proposed industrial devel-opment bond issue by the County in the amount of $43,900,000.
The bond proceeds would be used to finance the construction and equipment costs of certain facilities (Project) of the
. nuclear-electric generating plant known as the Peach Bottom Atomic Poker Station (Station). -
The Station site is' located partly in Peach Bottom Township, York County, partly in Drumore Township,Lancaster Count", and partly in Fulton Township, Lancaster County, in south.: astern Pennsylvania, on the Susquehanna River about 18 miles above its entrance into the Chesapeake Bay. It is about 38 miles northeast of Baltimore and 63 miles southwest of Philadelphia. Construction of the two identical boiling water type reactor units, Units 2 and 3 and their appurten-ances uhich are involved here, was commenced prior to Septeiber 2, 1972. Both Units have a combined generating
. capabelity of 2,200 megawatts gross and were placed in service on dates subsequent to the filing of the rulings req- t. Final Station expenditures have not yet been deter-mineu but completion costs are estimated to be about $770 mill! n.
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Four public utilities (Companies) hold undivided interests in each of the Units in the following proportions: Philadelphia Electric Company and Public Service Electric and Gas Company -
42.49%; Delmarva Power & Light Company and' Atlantic City Electric Company - 7.51%. Responsibility for the construction and opera-
, tion of the Units has been assigned by the Companies to Philadelphia Electric Company.
The basic question presented is whether interest to be paid on the bond proceeds to be used to acquire the Project facilities itemized hereafter will be excludabic from the gross incomes of the bondholders for Federal income tax purposes on the basis that
- such facilities constitute scuage or solid waste disposal facil-ities, or air or water pollution control facilities, within the i
meanings of section 103(c)(4)(E) and (F) of the Internal Revenue Code of 1954 (Code) and the applicable regulations.
The Authority uas formed under the Industrial and Commercial Development Authority Law of the Commonucalth of Pennsylvania, 73 A S. S 371, et sea. , which provides for the incorporation of authorities as public instrumentalities of the Commonwealth for the purpose of financing industrial' development projects, includ-1 ing pollution control facilities. The members of the governing board of the Authority are appointed by the County Commissioners ;
- of York C>unty. Property of the Authority is exempt by statute from taxation within the Commonucalth..
Under the proposed arrangement the Authority would enter '
into an agreement with the companies pursuant to which it would issue bonds to finance the Project. The bond proceeds would be
, placed in a construction fund, from which funds would be disbursed to pay tl.: Project costs or to reimburse the companies for such costs, in :luding an allowance for funds used during construction.
Title to the Project facilities would be acquired by the Authority.
Each Company would purchase an undivided interest in the Project corresponding to its interest in the remaining portions of the Units. The aggregate purchase price for all of the Project facil-ities would be an amount equal to the. principal amount of the bonds The sourc of bond payment would be the several obligations of the Companies in the form of .cither security or unsecured notes to pay shares n' the purchase price. The installments of principal on the obla.c .tions would correspond in date and amount to the stated maturitic. and mandatory siniing fund payments on the bonds.
Interest m the obligations would be at the rates and payable at the time :orresponding to the interest rates and times of payment on the bonds.
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The Project facilities and the estimated costs follow:
. (1) Cooling Tower System - $15,095,000 ;
(2) Liquid and Solid Radwaste Facilities -
5,414,000 ,
(3) Gaseous Radwaste System -
9,446,000
. . (4) Radwaste Building -
7,764,000 ,
(5) Sewage Plant - 313,000 Subtotal -
$38,032,000 Insubstantial portion 4,220,000 Costs of Financing 648,000 Total $43,900,000 The rulings requested are:
"(1) The Bonds will be' issued by or on behalf of the
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Commonwealth of Pennsylvania or a political sub-division thereof.
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"(2) The Bonds will be industrial development bonds '
within the meaning of section ~103(c)(2) of- the -
Code.
"(3) Substantially all of the pr~oceeds of the Bonds will be used to provide air and water pollution control facilities as defined in'section 103 (c)(4)(F) or sewage or solid waste disposal facilities as defined 'in section.103(c)(4)(E) of the Code.
"(4) The interest paid on the Bonds will be excludible from the gross income of the recipients thereof under section 103(a)(1) of the ~ Code except as -
provided by section 103 case of a bond held by p(c)(7) of theis Code erson who in the
- a. substantial user of the facilities or a 'related' person as defined in 'section 103(c)(6)(c) of the Code.
"(5) The Bonds will not be arbitrage bonds within the meaning of section 103(d) of the Code." -
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d The Authority requests that its filing be103(c)(4) considered of theun e 1.103-8 the existing regulations applicable to section Code without regard to the proposed amendment to sectio (g)(2) of the regulations (40 FR 36371).
the Authority submitted ia memo- that In support of its request, randum setting forth its justifaction for the proposits on t qualify of
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the claimed-exempt facilities contained in the section 103(c)(4)(F) of the Code.
In sum, the position of the Authorityllisdeal thatwith the in claim exempt facilities have in common the fact that a radiation and rvdioactive materials; that the ii facilities facilities d
question are radioactive waste processing facil dioactive t es, for emergency prevention of radioactive contaminant dioactive rele external radiation protection f acilities; that the ra waste processing facilities will be used to process ra h i facil-wastes produced during operation of the Station; thati t etto ities for the emergency prevention of radioactive contam nan 2
release will prevent radioactive contaminants from escap l radia- ng the environment in emergency situations; and thatf externa the Atomic
- tion protection facilities comply with regulations ol t ding ry Commiss the
. Energy Commission (now Nuclear Regu a oexposu Station.
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- Exceptions are not taken at this point to the foregoing i t nt conclusions; they must be discounted to the extent incons s - ,
with the determinations which follow.
(1) Cooling Tower System:
Th The Station once-t : rough, or open-cycle, vaste heat rejection princ pitutesteam condent. ors are ilcooled e.
claimei-exempt components of the Cooling Water System co
' only that part of the total cooling water installation wh handles the heated coolant from the condensers' disch it return to the Susquehanna River (River),
The complementary portion of from the complete which the wa first withdrawn. ld facili ty which provides for - the incomin in the ruling request.
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The normal Station cooling operations are conducted in the following manner:
The River provides the Station cooling water supply at a rate of about 1.5 million gpm and eventually receives back the effluent. The 1.5 mile-wide section of the River at the Station site, known ns Conouingo Fond (Pond), is formed by the
- 11oltwood and Conowingo dams located six and cight miles upstream and downstream, respectively. In both the winter and summer seasons, the turbine-condensers are cooled on a cooling tower-assisted, once-through cycle. Under the present design, there are three mechanical draft towers, each measuring 500-f t. x 71-ft. x 53-ft. with 12 cells. In total, the towers have a capacity sufficient to pass a coolant volume up to 876,000 gpm, or about 57% of the full 1.5 million gpm circulating water volume.
The Authority states-that the operating licenses for Units 2 and 3 require the use of all available cooling towers; that the Companics interpret this condition as requiring year-round operation of the towers;-and that.the condition will be complied with as thus interpreted to the extent required.
In winter operation, inlet water.at an average design temperature of 35 F. is pumped from the Pond and pressure-cir-culated through the condensers. The heated effluent at an average c'asign temperature of 55.8 F. is first discharged to a 400-ft. x 700-ft. intermediate collection basin enclosed within earthen dikes. From the basin, the coolant in volumes up to .
the maxirc.um 876,000 gpm, is passed through the forced-draf t towers ar.d discharged into associated cooling ponds, also dike-contained. The cooling ponds lead into the head of a 4,700-ft.
long dis-harge canal that empties into the Fond (River) at a point dos.nstream from the Station site.
On the basis of the 20.8 F. temperature differential between the intake and outlet volumes, and a full-power circulation rate of 1.5 million gom, the average winter waste heat load rcquired to be shed in passing through the collection basin, cooling towers, <.ooling ponds, discharge canal, and finally in the form of a the:. mal dispersion plume in the Pond, would be about 15.6 million Ptu/hr. , in order for the effluent temperature to equili' te with the ambient Fond temperature.
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- 6-In summer operation with an expected 850F. Pond temperature, the 1.5 million gpm circulating water will leave the condensers at an average design temperature of 105.80F. With the effluent flow following the same course as outlined above and with the towers in parallel operation, the temperature rise in the subsc-quently mixed water delivered to the head of the discharge canal
. (57% through the towers, 43% direct) will be 13 F. On the basis of this 13vF. inlet-outlet temperature differential, the average summer waste heat load necessary to be lost in order to reach thermal equilibrium condition in the Pond would be 9.75 billion Btu /hr.
The claimod-exempt expenditure in the total estimated direct amount $15,295,000 consists of the following items: ,
Cooling Towers - $4,059,000; Cooling Tower Pumps - $1,158,000 Cooling Tower Pump Structures - $3,026,000; Cooling Tower 4 Supply Pipe - $666,000; Herms, Dikes and Culverts - $1,664,00:
Discharge Structure - $960,000; Electrical Equipment -
$3,562,000.
In order to tion 103(c)(3)(F) qualify of the as pollution Code, sectioncontrol property under 1.103-8(g)(2)(ii) sec-of the regulations provides in part that the facility must serve in -
whole or in part to abate or control water pollution or contamina-tion by removing, altering, disposing or storing pollutants, contaminan.:s, wastes, or heat. Additionally, section 1.103-8 (g)(2)(iv) provides in part that where property serves to control pollution ind for a significant other purpose, only the incrc-mental cott of the facility can be considered to have been incurred for pollution control purposes. Accordingly, if the costs incurred for such a facility would have been incurred without pollution control censiderations, the incremental cost would be zero. And if property itself does not serve directly a pollution control purpose in whole or in part, it cannot qualify as an exempt facil-ity cr.cep under the provisions of section 1.103-8(a)(3) of the regul ations.
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Based on the representations of the Authority, and partic-ularly that which relates to the intended year-round operation of the cooling towers in conformity with the terms of the Station'.
operating licenses, the System components as itemized with the exception of those designated as " Discharge Structure 7' and .
" Electrical Equipment," are considered to come within the purview of section 103(c)(4)(F) of the Code and the existing applicabic regulations.
This consideration does not exclude the vinter-summer heat balance data supplied by the Authority which indicate that under design conditions, the operation of the cooling towers would seemingly be confined largely to the summer months, and used sparingly, if at all, during the winter acriods uhen apparently, the prevailing umbient cond.itions could be expected to provide ade; uste cooling by natural means without tower-assistance. On this point, a pollution control facility for. purposes of section 103(c)(4)(F) of the Code is one which prevents or minimizcs the direct release of pollutants or contaminants into the environment '
in the course of normal operations. llence, a facility does not !
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qualify an a pollution control facility if it operates'only on an i
infrequent or emergency basis. Therefore, if the Cooling Tower ;
System were required to be operated only sporadically, or on an
,.. intermittent basis when abnormal ambient conditions might unpre- !
dictably prevail, the System could fail the test of the definition of a pollution control facility, i r Also t'aken into consideration is the other extreme. There '
is some ladication that the present Cooling Tower System design is not so iixed and certain. chat the possibility of required modificat'on is eliminated, i.e., that the adequacy of the i present (Rsign is assured to the extent that no question exists as to the complete capability of the System to effectively dispose of the St ition's large heat-loads throughout the year. The Authority can make no representation that "*** the Units will not
.at some future date be converted to a closed-cycle method of operation in which, water cooled by the existing and possible additiona!. cooling towers is returned to the Units instead of bein; i -
discharged to the river ***." .
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In this last regard, a closed-loop cooling system does not as a pollution control facility under section 1.103-8 qualify (g)(2) (ii) of the regulations. There is no abatement or control
' of water pollution where in fact, the heat of a coolant stream is transferred harmlessly to the atmosphere, and the stream is '
returned for plant reuse. .
In sum, however, and accepting the situ'ation as it is pre-sently described, it appears reasonably certain that cooling tower assistance will be required to a greater more than lesser if not continuously at full capac-
- degree during the ity throughout themajor year.part,Therefore, the cooling towers and the cooling appurtenances including the berms, and dike-enclosed collection basin and cooling ponds, as well as the discharge l
canal,can be expected reasonably to function in combination for pollution control purposes.
A different conclusion is reached in respect of the
" Discharge Structure" and " Electrical Equipment."
' The Discharge Structure is substantially a nubsurface installi tion built into the berm forming the foot of the dischargo canal.
It is of concrete and steci construction with steel gates to allou
- the water flow in the cann1 to discharge into the Pond. C.a port,l is maintained in an open position to permit con-15 x 20-fdisc tinuous t.,harge from the canal bottom to the subsurface of the i l'
Pond. In the course of normal operation, discharge is controlled ,
- by means of three 13 x 20-f t, movabic gates mounted above the open port. By adjusting the opening of these gates, the dis- t i
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cLiarge velocity is maintait id at a rate sufficient to produce a large jet of water downstream into the Pond. In addition, therc ;
is a conc rete spilluny over the top of the berm and adjacent to the Structure proper, for use during high water flows.
The Structure. does not meet the requirements of section I.103-8(g)(2)(ii) of the regulations. The spillway is simply a facility incidental to the production, function of the Station i during pariods of abnormal water levels. The Structure itself 4 ~
is .nothing more than a means of adjusting the release of the coolant "olumes in order that the terminal temperature may be a
mora cor.., atibic with. that of the Pond, and to diffuse the dis-i charge v,1umes over a larger dispersion area to minimico the effects af thermal shock. Facilitics which only serve to diluto diffuse pollutants or contaminants do not constitute property that abates or controls them by removal, alteration, C.B. 40. diso posal, c storage. See Rev. Rul.75-167, 1975-1 -
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The Elcetrical Equipment associated with the Cooling Tower System, which is taken to consist of such items as switch gear, motor control conters and conduit, cannot be considered to bc
- qualified Code.
property for aurposes of section 103(c)(4)(F or control water pollution Marcover, as required theby section 1.103-8(g)(2) equipment cannot be con-(ii) of the regulations.
sidered to be property that is functionally related and sub-ordinate to an exempt facility within the provisions of section 1.103-8(a)(3) of the regulations.
In order to qualify under section 1.103-8(a)(3), it is basic that the exempt facility to which the functionally related ;
l and subordinate property relates must be identifiabic; and in -
such property must be of a charactor and size commen-4 i
addition, surate wit h the corresponding attributos of the exempt facility.
In thic instance, the claimnd-exempt expenditure is a gross figure for Electrical that Equipment in the amount of $3,562,000 cannot rocsonably be associated with the Cooling Tower Syst expenditures in total.with the costs of the , articular exempt most facilitygeneralized components way,f o which the Electrical 3quipment costs i
would necessarily be required to be shown to be a functionally , ;
- related and subordinato part.
Eleccrical hardware, for instance, cannot be realistically related to such System components as Borms, Dikos and Culverts, Cooling Tower i
Cooling Towers, or Cooling Tower Supply . Pipe.
Pumps and perhaps Cooling Towcr Pump Structures are the only likely i. . ems of equipment Yet which using normallycosts comparative wouldasrequire a c1ccerical measure, the , .
l hardware support. are a dispro- !
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Electric-1 Equipment expenditures of $3,562,000 portionni.e 85 percent of the combined estimates of $4,104,000 fo In those circumstances, the Cooling Tower Pumps and Structurcs.
I no commensurability can be found in terms of subo ,
tions, l it is concluded in respect l' On ':he basis of the foregoing,he that t total direct cost in the of the Cooling Tower System,$10,573,000 re?rcsontating the claime i
maximum exempt astimated amount ofsoling Tower System components those nt .ributabic to the Discharge Structura and Electrical J
Equipmc., :, would be expenditures made to prov l 103(c)(4)(F) of the Code and the applicable regulations.
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(2) Liquid and Solid Radwaste Systems:
The liquid and solid radioactive waste' processing systems are integrated facilitics to which all station liquid and solid l wastes are routed. The two systems for purposes here are dis cussed separately. ,
Based on the engineering drawings and other material pro-vided by theAnalysis Authority, articular reference to the Station with p(FSAR) the Li. quid Raduasta Sytem Final Safety Report may be doccribed in the following manner:
The power generation objective of the System is to collect treat, and praecss for re-use or disposal all potentially radioactive liquid wastos in a controlled manner in compliance with the established regulatory requirements. The design basis is for a capability to wrocess the liquid unste such that the majority of liquid can le re-used for production purposes. The wastes are first collected in sumps and drain tanks and then transferred to tanks in the Radunste Building (Item (4) belou) for treatment, storage, monitoring and disposal.
Liquid wastes are processed on a batch basis, and after processing may be returned to the condensato system for plant
- e. re-use or discharged to the Dischargo Canal (Item (1) before) after analysis and dilution with condensor circulating cooling water. In unusual circumstances packaging of liquid wastes for off-site disposal is also pos,sible.
' Those batches in which the conductivity is low (high purity water) a. c routed to the condensate storage tank for plant re-use after processing. Batches in which radioactivity cancentratic are suff'ciently low as to allow disposal to the environs and which ha. c a higher conductivity than suitable for re-use in the plant are released into the Dischargo Canal. A distribution lino
.is used to provide thorough mixing with condenser effluent circuit ting water from Units 2 and 3 in order to achieve a low concentra-tion returned are before thetocombined the Pond.volumes (wastes and condenser coolant)
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More particularly, high purity (low conductivity) liquid wastes originate in the reactor cleanup systems, the residual heat removal systems, equipment drains in the reactor, rad-waste and turbine building decantates from resin phase separator tanks and centrifuge effluents. These wastes are automatically pumped to a waste collector tank (25,000 gal.)
. on a batch basis. In addition, liquid wastes are occasionally transferred to the waste colicetor tank from the fuel pool systems, the reactor cicanup system, the residual heat removal systems and the floor drain system (to reclaim high purity water). ,
A waste curge tank (75,000 gal.) is located in the rad-waste buildin., and provides surge capacity for infrequently occurring large liquid waste volumes, such as those produced during startup of a Unit. Such water can be transferred to either the waste collector tank or the vaste surge tank from the residual heat removal system, the fuci pool, or the reactor cleanup system of cither Unit. These low conductivity, high purity wastes collected in the tanks are processed on a batch basis through the waste precoat filter and mixed-bed dcmineralizer, and then collected in two waste sampic tanks (25,000 gal.). Following sampling and analysis, the filtered and de-ionized liquid is normally returned to the condensate storage tank for reuse in the reactor-steam circuit.
Although wastes in the sampic tank can be discharged to the environment, or shipped off-site instead of being reused, this appears not to be the normal procedure, and will occur only c.n an infre>;uent basis.
Low purity wastes (moderate to high conductivity and general:
low rad:: > activity concentration) are collected in floor drain cumps lo,ated in the reactor drpeell, in the reactor, raduante, and turbine buildings, and in the pipe tunnel. These vastes ave.) are pumped automatically to a floor drain (15,400 collec gal./
to.: tankday (21,000 gal.), in which there is also collected neutralized wastes from the chemical waste tank (500 gal normal, 4,500 na t. maximum), and relatively small quantitics of liquid wastes issuing at infrequent intervals from condensate and refueling storage tank dike cumps. Also located in the.raduaste buildie is a floor drain surge tank (75,000 gal.) which holds compare.. .vely large liquid waste volumes that occur infrequently in the c iurse of special plant operations, such as equipment decontar ' nation. ,
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After collection, thc. low purity wastes are processed through a pressure-precoat filter and sont to a floor drain sampic tank (21,000 gal.). Following sampling and analysis, j the liquid is normally discharged through a single line l cxtending irom the radwasta building to the circulating
! water discharge canal (Item (1) above). The wastes, however, are not discharged in a perfunctory manner; the release is on -
a batch basis and subject to close control and regulation as e l
outlined holow. '
i I Prior to discharge, the batch in a particular holding tank l (waste sample or floor drain sample) is isolated by valving off
! the interconnected collection system to prevent the inflou of i . additional liquids in the sampling and release sequences. After l passing through a mixing eductor to provide a uniform composition, and following determination of such factors as the total radio-activity concentration (tritium excluded), the relative purity of the liquid, and the batch volume, a rate of release is calculated which 'will result in an effluent concentration in the Discharge Canal (af ter dilution with a known flow of circulating condenser coolant water) equal to the maximum permissibic concentration which the Canal can tolerate. The actual flow rate is set at loss than the computed batch maximum figure.
To provide for vaste release rate control, the discharge line '
'r is equipped with two flow meters (high flow and low flow), a rad-intion monitor and a downstream automatic shut-off valve that activates in the event preset flow or radiation limits are exceadoc or if the circulating water dilution volume is interrupted. The wastes are introduced into the canal at a point downstream of the -
cooling tower discharge with the objective being a good mixture
- with the ecndenser coolant water diluent flou through the. Canal to the Pond.
The lescription of the Solid Radwaste System follows.
l l The integrated Solid Radwaste System handles both wet and I dry ' solid materials which require different handling and pack-I aging metrods because of the differences in radioactivity and contamination levels. .
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The wet solid wastes in slurry form result from the pro-cessing of spent demineralizar resins and spent filter. materials used in the equipment drain (high purity) and the floor drain (low purity) liquid subsystems noted above. Additionally, wet wastes originato in the three water cicanup systems (reactor, condensato and fuel pool). The slurry is collected in four back-
- wash receiving tanks or in the waste sludge tapk fro n which it is pumped on a batch basis to one of a corresponding number of phase separators.
From the separators and the waste sludge tank, the slurry is piped to centrifuges, from which the supernatant flous by gravity to the liquid waste collector tank, and the de-watered solid material is discharged to a hopper. Drums are positioned under each hopper by remote operation of a conveyor, with the drums gravity-loaded via remote visual observation end operation of the hopper valves. When full and after being vibrated, cach drum is moved to the remote capping station for lid placement.
Thercaf ter, the sealed drums arc decontaminated and moved by the conveyer system to the shicided temporary retention area to await shipment t.o an off-site location.
Dry vastes result from_ operations and maintenance throughout
, the Station. Typically, cuch wastes consist of air filters, clecn-ing rags, paper and plastic coverings, tools, discarded clothing and solid laboratory items. Most of these vastes are of relatively low radio etivity, and collected locally in fiber drums, cartons or boxes, except that where possible, sof t compreseible wastes are compacted in steel drums for shipment. .
All olids are packaged and shipped to a licensed burial site in accordance with applicable governmental requirements.
Annual quantitics of solid waste attributable to cach of the two Unitt are expected to be on the order of 700 drums of resin an,d filte:: materials and 450 drums of dry and compacted waste.
The estimated. direct costs of the claimed-exempt components
. of the Liquid and Solid Raduaste Systems in the total estimated amount of $5,414,000 are shown as follous:
Pumpa - $185,000; Tanks - $95,000; Filters and Dominera11zers - $30,000; Centrifuges - $18,000; Cc- tycrs and Hoppers - $123,000; instrumentation -
$1 .10,000; Electrical - $720,000; Miscellaneous 3
Equ!iment and Piping - $2,653,000.
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1 In consideration of the facts presented in relation to the requirements of section 1.103-8(g)(2) of the regulations, it must be concluded- that none of the itemized equipment compon f
l of the Liquid Radunste System qualifies as a .
the Code.
This is for the following reasons:
- of section 1.103-8(g)(2)(ii), a facility mustby se in part to abate or control water pollution or c
'Jhis means in applicable part here, that the wastes, or heat.
facility must be one which prevents or minimizes in the norma course of operations, the d1rcet and immediate release of pollu tants' or contaminants or contaminated production to the streammarine environment.
which is upgraded for re-use in ment, the plant production activity poses no threat t to the purpose of pollution control.
Recycling is the normal modo of operation This iswith respect demonstrate high purity (low conductivity) waste streams.by 9.2-5, 9.2-6 the Analysis Report (FSAR) provided by the Authority (pp. .
"*** Low conductivity wastes collected in the Wasta Collector Tank- (and . Waste Surge Tank) are processed on a batch basis through the waste precoat filter and mixed bed domineralizer and then collected in one of the twoFro Warte Sampic Tanks ***. returned to the condensate storage tank ror are normally m* . " (Emphasis adaed.)
@.ntre-use id Radwasto System also falls the test of section 103(c)(4)(F)qu the Code, i.e.,
The remainder of the Li of those facility components which handic and process ac,ucous wastes of m to high activity and generally low ra6ioactive concent
> . (lou purity water).
activit ' of these wastes, even after final in-p T order for the Pond to ultimately tolerate thosefl low 7urit, 31cndii4 inste volumas, it is necessary to strike a enre u the Dit charge Canal to attain a final dilutedpage p(roduct 9.2-9): accep j As described in the FSAR
,to the environment. .
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"***The rate of release of the liquid waste to the discharge canal which will produce a concentration in the canal (after dilu-tion with a known flou of circulatinn water) equal to the allouable concentracion limit in then calculated. A rate of release belou
! the calculated maximum rate is then selected arsd used for the particular batch of liquid waste to be discharged to the environ- '
ment ***." (Emphasis added.) ,
It being evident that none of the Systcm components serve to upgrade the quality of the low purity wasce unter to a level at which it could be directly discharged without adversely affecting i the environment, it must necessarily follow that no System component can be considered to come within the provisions of section 1.103-8 (g)(2)(ii) of the regulations. " Dilution" of a pollutant stream does not constitute the removal, alteration, disposal or storage l of the pollutant.
Section 1.103-8(f)(2)(ii)(a) provides in part that whether a collection or storage facility qualifics as a solid waste disposal facility depends on all the facts and circumstances, and further, with an execption not applicable here, the section provides that l
the term does not include facilitics for collection, storage, or disposal of liquid waste.
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9 With respect to the wet solid wastes, it is evident from the facts and circumstances of this case that all of the System compon-ents upstr .am of the inlet to the centrifuge hoppers are involved with the handling of higher-activity unste streams in a slurry i form, or in a state of fluid suspension, rather than in a solid state. It is only at the point at which the hoppers receive the centrifuge concentrate that the dewatered wastes take on a solid form. Thorofore, it is only downstream from this point that the components, i.e., hoppers and conveyors, which process the solidi-ficd wastc2 for final disposal off-site take on the character of solid wasta disposal facilitics.
l .Similarly, from the facts and circumstances available in this l case, it la also evident that none of the itemized System componente operates in the collection, storage, treatment, utilization, pro-cessing or final disposal of the lou-activity dry wastes uhich are discarded locally in varions production areas throughout the Station As - ted in the FSAR (page 9.3-2):
"***r irtain (dry) solids will be decontaminated by cleaning methods a: required to reduce contamination and exposure levels arior to If cleaning is not practicablu or fcanible, high1cychackaging.wantos will be packaged and temaorarily stored to perna.t. .m 2y.
activity, handl,Most wastes, ed normally however, and collectedutillocally he of reinttua in tiberlow drums, radio-cartonn or boxesnn*." finsort and emphasis added)
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Aside from the evident fact that none of the claimed-exempt components are involved in the collection or final disposal of the dry wastes, the procedure appears to be no more than a routine in-plant housekeeping or maintenance operation. It is recognized that certain precautions must be observed in the handling of these materials because of the potential or actual low-activity levels, but a certain degree of care is required to be exercised in waste handling in any production plant in which tonfc materials are involved. This fact and circumstance falls outside the provisions of section 1.103-8(f)(2)(ii)(a) of the regulations.
The cost items identified as " Instrumentation," " Electrical" and " Miscellaneous Equipment and Piping" likewise cannot be found to have been incurred for the purpose of acquiring pollution con-trol facilitics within the meaning of section 103(c)(4)(F) of the Code; or for the acquisition of property functionally related and suboruinate to such facilitics in the context of section 1.103-8(a)(3) of the regulations.
As noted earlier, property which, in itself, serves no pollu-tion control function cannot be considered to qualify as an exempt facility under the " functionally related and subordinatic" provisior of section 1.103-8(a)(3) . licre there are no exempt facilitics to which the combined costs of $4,963,000 for these three items can
- c. relate in commensurata degree.
Accordingly, with respect to the Solid Raduaste System, and based on the facts outlined in the foregoing parts, it is con-cluded that $123,000 of the claimed-exempt facility components qualify as " solid waste disposal facilitics" uithin the meaning of' the tonn ender section 1.103-8(f)(2)(ii)(a) of the regulations.
(3) Caseous Radwaste System:
During power operation of the facilitics, radioactivo materials released to the atmosphere in gascous effluents include low concentrations of fission-product nobic gases (krypton and xenon), h:tiogens (mostly iodines), tritium contained in vater vapor, and particulate matter, including both fission products and activated corrosion products.
The primary source nf gascous radwaste is the non-condensibic
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. . 17 gases removed from the main condenser by the air ejector. These r gases consist of air which has leaked into the condenser, hydro-
- gen and oxygen produced by the radiolytic decomposition of water,
- and negligible volumes of the radioactive gases referred to above.
l Other sources include the non-condcusibic radioactive gases re-moved from the turbine gland seal condenser and the reactor, the 3
' - turbine, and the radwaste building ventilation systems. Compo-nonts of these last-named ventilation systems, houever, are not included in the rulings request and accordingly, are not the j subject of consideration.
During normal operation, the gaseous effluents from the main condenser nre handled by the air ejector off-gas subsystem, and i
those from the turbine gland seal condenser pass through the gland seal off-gns subsystem. In addition, there are.two standby gas treatment systems which are used to filter and discharge gas from cither primary containment, if desired, or from either reactor
-! building, and to mairtain a negative pressure in the reactor build-ing whenever the normal,ventil ation system is isolated.
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The air ejector off-gas subsystem consists of a catalytic recombiner-compressor train, hold-up line, high efficiency partic-isolation valves, dilution fans and a 500-ulate (HEPA) ft. main filters,k.
off-gas stac In the normal operational mode, air '
ejector off-gases are flowed through a jet compressor, preheater,
- and thq hydrogon-oxygen recombiner to the condenser. The off-gases l 4 are diluted with steam in the jet compressors for assurance that the mixture is below the flammability Jimit. The recombiner unit by means of an all-metal platinum / palladium coated catalytic strip reassociatna the hydrogen and oxygen into water, which is then removed fr.sm the off-gas stream by the condenser, and recycled back into the primary coolant system for reuse.
The LLr ejector off-gas subsystem is designed to be explosion-:
proof. The portions of the subsystem from the discharge of the air ejectors to the recombiner outlet, and from the first isolation valven upntroam from the holdup pipe inlet lines to the isolation
. valves dounstream from the off-gas filters, are constructed to withstand the static presourcs and shock wave forces of explosive ,
proportior 1. Three dilution fans located at the base of the 500-ft, stack are also nafety-oriented. These fans, cach with a ;
capacity ricquate to provide sufficient dilution air volumes for '
two-Unit concentrat ieration,he
.ons in t stack. serve to reduce, The by maintain fans also dilution, any thehydrogen required ;
- exit velot6ty of the exhausting gases. .
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Because the turbine gland seal condenser off-gas subsystem, in serving the turbine stcam packing exhauster condenser uses primary system steam, the gases which it handles may be radio-active.
Accordingly, these gases are held up for a short period in delay piping before being exhausted into the 500-ft, stack without further treatment. Delay (1 3/4 minutes) is provided by means of a 24-inch diameter pipe located between the turbine packing exhauster and the stack. Normally, this short period of radioactive decay is sufficient to ensure against c.secssive radioactive discharges.
Each of the two standby' gas treatment systems consists of a profilter and two llEPA filters, one preceding, and ene following an activated charcoal adsorbor. In addition to functioning when one or both of the ventilation systems are isolated, as noted before, the standby system operato during Station shutdowns and startups to purge the drywall and su valved off during reactor operation.ppression These chambers whichthe systems, unlike are separate waste gas treatment and ventilation systems for cach of the Units 2 and 3, are interconnected so that inputs can be accepted from cither or both Units. Standby facilitics however cannot qualify as pollution control facilitics, no more,than can,
- facilitics designed for use only in the event of an cmcrgency This is because by function and purpose, such facilitics are n,ot used in the abatement or control of pollution or contamination on a regrlar basis in 'the normal course of production operations.
The Authority's claim of exempt expenditures in the total direct a.m.ount of $9,446,000 consists of the following items:
Off-Gas Stack -
Jet Compressor $1,366,000; Off-Gas Filters - $314,000;
$33,000; Mechanical Compressor - $101,000; Ree.mbiners - $380,000; Recombiner Enclosure - $3,271,000; Instrumentation - G295 000; Misec11ancous Equipment and Piping - $3,550,000; an,d Electrical - $136,000 Based on the' facts as outlined, it is concluded that with the exceptions of the item "Off-Gas Filters" and proportioned amount oF the item " Piping," none of the claimed-exempt facility componct.:n qualify for air pollution control purposen within the meaning of section 103(c)(4)(F) of the Code and the applicabic reguine')ns.
The reasons are these:
The Off-Gas Stack morcly dispersos air-diluted off-gases at an elev4 :cd altitude, and is not property that abates or controls any pol ing itants from disoosing the off-gas or storing them. exhaust stream by rmnoving, niter-
"f a,- I' . As stated in the FSAR (page 9.4-7) tall off-gas stack allous nemospheric disparsion of the effluent to reduce direct radiation exposure rates ***." Such a r -
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facility does not qualify as an air pollution control facility within the meaning of section 1.103-8(g) of the regulations. See Rev. Rul.75-167, , supra, page 8 .
The Jet Compressor, Mechanical Compressor and Recombiners are similarly disqualified for purposes of section 103(c)(4)(F) of the Code. These components serve in a production capacity, rather than for purposes of pollution control. They are simply in-line production elements of the air ejector off-gas subsystem by means of which the circulating primary coolant is cicansed by the purging of production-generated off-gases in the main condenser, and plant safety is more adequately assured by the recombination of radiolytic hydrogen and oxygen for reuse as primary coolant mahc-up.
Morcover, the air ejector subsystem, even uith the off-gas bypassing the recombiner-compressor train and being routed directly to the holdup pipe for a short delay is adequate to provide for the radioactivo decay of the short-lives activation and fission gases. As stated in the FSAR (page 9.4-5):
"***The air ejector subsystem, even with the off-gas bypassing the recombiner-compressor train and being routed directly to the holdup pipe for a 30 minuto holdup time, is adequate to provide for s the radioactive decay of the short-lived activation and fission gases ***,"
The Reconibiner Enclosure, located north of the Unit 3 Reactor Building is used to house the recombiner-compressor system. It does not contain the off-gas holdup pipe sections referred to .in
. a later part, which are located in the Turbine Building basement.
In respect vf the Enclosure, it is to be noted that a building or other simil ar property that does not, of itself perform a pollution control se: ice, fails to qualify for purposes of scetion 103(c)
(4)(F) of the Code, except as provided by section 1.103-8(a)(3) of the regulations. But in order to qualify under the provisions of section 1.103-8(a)(3), the property must first be functionally related and subordinate to an exempt facility. Because the recombincr-compressor train of the air ejector off-gas subsystem cannot b e f und to be an exempt facility, the Recombiner Enclosure, perfoi:ce, ii not a functionally related and subordinate part of such an exespt facility. .
The (., regate costs of $3,981,000 corresponding to the items designate.1 Instrumentation," " Electrical," and "Miscellancoun Equipment t .d Piping" (exclusive of holdup piping discusued belou) cannot bc I.. cognized as ex penditures made for pollution control purposes for essentially t to same reasonu and on the same bases as ot.d .. . before (Lir uid and St .M cCuaste Systems) in respect of similarly designatcc cost items.
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The expenditures related to the item designated as "Off-Gas
? ye .*
- Filter" in the estimated direct amount of $314,000, and a pro-
' A , .' portionate amount of " Piping" attributed to the Off-Gas holdup pipe sections in the amount of $118,000 (rounded) are considered to have been used to provide for pollution control facilitics.
In the absence of a more precise figure, the- sum of $118,000 con-sidered attributabic to off-gas holdup piping is approximated by applying to the cost of " Miscellaneous Equipmen't and Piping"
($3,550,000), a factor uith numerator and denominator consisting respectively of the "Off-Gas Filter" cost ($314,000) and the total cost of the claimed-exempt components of the Gascous Radunste System ($9,446,000). ,
The reasons that the Off-Gas Filters and IIoldup PJ ping are considered to be in an exempt facility category are these:
The HEPA filters and the holdup piping in the air ejector off-gas subr.ystem are essential for the control of pollution to the environr ant, whether or not the subsystem is in use in its entirety. Even with the bypassing of the recombincr-compressor train of the subsystem, the air ejector off-gas stream must be routed to tr.c subsystem's holdup piping and through the filters before being, exhausted to the stack. As noted in the FSAR (page 9.4-5):
"***The short-lived fission gases decay to solid daughter products and are removed by the high-efficiency particulate fil-ters which have a design capability to remove 99.97 percent of particulates 0.3 microns in size ***." ,
In similar manner, the holdup piping of the gland seal off-gas subsyst. m is required for pollution control purposes. The FSAR contains the follouing statement in point (also page 9.4-5):
"***The gland seal line is a separate line from the air ejector holdup line. A design minimum of 1.75 minute holdup time is provided by a long 24" diamator packing exhnuster and the stack ***. pipeThe between actual' the turbine steam configuration of the piping produces a 4 minute holdup for Unit 2 and a 5 min-ute holdup for Unit S***."
For thu reasons set out in the foregoing, it is determined in respect of the Gascous Raduaste System that the total direct cost in t.... maximum estimated amount of $d32,000 representing the estimated c st of the Off-Gas Filter and a proportionato amount of Piping woul be expendituren made to provide for air trol facilf ics within the macning of section 103(c)(pollution 4)(F) of the con-Code and the applicabic regulations. ,
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. .. . (4) Raduaste Building:
The Authority describes the Building as housing various components of the liquid and solid waste processing systems and the standby gas treatment system (Items (2) and (3) before) .
From the engineering drawings provided (FSAR Figures 9.2.4a,4b, 4c,4d and 4c),it appears that the Building located between, and constituting an integral. part of the two react,or buildings, is a multi-level structure of heavy concrete construction (3-ft, wall thickness) measuring approximately 102-ft. x 123-ft. It appears further, that in addition to housing the claimed-exempt components of the Systems as the Authority states, the Building also houses numerous other facilitics and items of equipment
, directly concerned with the production operations of the Station.
Based on the facts as outlined, it is concluded that the costs of the Radwaste Building shown in the total direct amount of $7,764,000 cannot be considered to have been incurred for purposes of pollution control. Because the Building does not
, itself serve to control pollution, the claim for exempt expendi-tures presumably relies upon the "functionall subordinate" provisions of section 1.103-8(a)y related and(3) of the regula-tions. If this be the fact; the reliance is misplaced for the following several reasons.
First, it is incorrect to presuppose that all of the claimed-
- ' cxempt liquid and colid facility components, qualify as pollution
. control and . solid waste disposal facilitics. The fact that for purpnser of this ruling this expectation cannot be fulfilled in substantial degree is evident from the conclusions re reached in t ne foregoing parts in res pect of Item (2) quired ,
to be
" Liquid and Solid P Jwaste Facilitics. To the extent that the claimed-cxempt liquid and solid radwaste facilitics cannot be recognir.cd as gnalified facilitics for purpocos of scetions 103(c)(4)(E) and (F) of the ado, there is a corresponding diminution in the exempt associatedfacility in abase with whichrelated
" functionally the Radwaste Building"could be and subordinate manner.
Second, section 1.103-8(a)(3) of the regulations provides in portinent. part that "***An exempt facility includes any land, buildly. o other to such fac.iity*** property functionally (Emphasis added.) related and subordinate This provision does not speak in terms of portions of a building; tbc reference in to a 'aui1P' ; that is devoted in its entirety to the service of an exempt n :llity. That is not the case here.
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on the basis of the foregoing, it is determined that none of the claimed-exempt exp'enditure in the direct amount of
$7,764,000 for the item Radwaste Building" can be considered to come within the provisions of sections 103(c)(4)(E) or (F) of the Code and section 1.103-8(a)(3) of the regulations.
, (5) .Seunge Plant: ,
The Authority places the capacity of the Plant at 15,000 gal./ day with 36.4 pounds per day of 5-day biological oxygen demand. All digested sewage uludge requiring disposal will be requiring disposal will be removed off-site by an outside con-tractor and placed in a landfill meeting state standards.
Section 103(c)(4)(E) of the Code provides in part that section 10?(c)(1) shall not apply to obligations issued by a State or local governmental unit which are a part of an issue substantially all of the proceeds of uhich are to be used to provide scuage dis posal facilitics. Section 1.103-8(a)(2) requires in part that in order to qualify under section 103(c)(4) of the Code as an exempt facility, a facility must servo or be available on a regular bar.is for general public use, uith the exception, however, that newage disposal facilitics will bc
' treated in all events as serving a general public use although they may be part of a nonpublic facility used in the trade or business of a nonexempt user.
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This plant meets the foregoing requirements and accordingly qualifics as an exempt activity within the meaning of section 103(c)(4)(E) of the Code to the extent of the estimated direct' cost of $333,000.
Regtypite Certification:
Sectica 1.103-8(g)(2) in order to qualify as a po(1)(b)llutionof control the regulations facility,provides that either the governmental agency having jurisdiction in the circumstances has certified caat the facility as designed is in the furtherance of the purpose of abating or controlling atmospheric pollutants or contaminant 1, or unter pollution; or the facility is designed to meet or a:w :cd applicablo Federal, Stato, and local requirements for the cou.:rol of such air pollutants or contaminants, or unter pollution n effect at the time the obligations, the proceeds of which ,
to bn used to provide such facilitics, are issued.
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c .. . e The Authority in a supp"lemental submission in support of its ruling request stated: ***No certificates have yet been secured or applied for. It was, however, represented in the rulidg request that the units will be designed to meet tbc environmental requirements of applicable regulatory authorities ***."
Rulings: ,
Based on the information provided and the representations contained in the rulings request as supplemented, submitted on the behalf of Yorls County Industrial Development Authority (Authority), it is further concluded that:
(1) The Bonds which may be issued in the total amount up to $12,774,000 by Authority vould be issued by or on behalf of the Commonwealth of Pennsylvania, or a political subdivision thereof, within the meaning of section 103(c)(2) of the Code; (2) Substantially all of the proceeds of the Bonds would be used to provide newage or solid waste disposal facilitics, or air or water pollution control facilities within the meaning of sections 103(c)(4)(E) or (F) of the Code, and sections 1.103-8(f)(2) or 1.103-8(g)(2) of the regulations;
^
(3) The interest on the Bonds issued by the Authority in the maximum estimated amount of $12,774,000 consisting of the respective estimated direct costs and an insub-stantial -
proceeds) of portion thereof (not the following to exceed Project 107.components facility of the heretofore identified, namely: (a) Cooling Tower System-
$10,573,000 and $1,057,300; (b) solid Radwaste Facilitics-
$123,000 and $12,300; (c) Gaseous Raduaste System-
$432,000 and $43,200; and (d) Sewage Plant - $313,000 and $31,300; plus an allowance for Costs of Financing in the amount of $188,900 would be excludable from the gross of the recipients thereof for Federal income tax purposes, except with respect to any Bond for any period during which such Bond is held by a substantial user of the facilities financed with Bond proceeds, or a ilated ' person, within the meaning of section 103(c)(7) c .: the Code and section 1.103-11 of the regulations;
'(4) Tased on representations made, the Bonds would not bn arbitrage bonds within the meaning of section 103(d) of the Code; e
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(5) An. item that is treated as an expense under any section of the Code for income tax purposes, is not of a character subject to the allowance for depre-cintion as provided in section 167 of the Code; (6) As a condition to 'the effectiveness of the foregoing -
rulings, there shall be filed a copy of this letter together with satisfactory evidence of certification as required by section 1.103-8(g)(2)(i)(b) of the regulations with the income tax return for the taxabic year in which the transaction covered by these rulings is consunenated.
Very truly yours,
. i,' h./htu John A. Brois Chief, Engineering and Valuation Branch Enclosure Copy letter ,
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. " i UNITED STATES OF AMERICA NUCLEAR REGULATORY C0fiMISSION BEFORE THE ATOMIC SAFETY AND LICENSIfl0 APPEAL BOARD In the liatter of PHILADELPHIA ELECTRIC COMPANY Docket flos. 50-277 50-278 (PeachBottomAtomicPowerStation, Units 2 and 3) )
CERTIFICATE OF SERVICE 11ichael C. Farrar, Esq. Troy B. Conner, Jr., Esq.
Atomic Safety and Licensing Conner & Knotts Appeal Board 1747 Pennsylvania Avenue, it.W.
U. S. fluclear Regulatory Commission Washington, D.C.' 20006 Washington, D.C. 20555 Edward Luton, Esq., Chairman Honorable Frank R. Clokey Atomic Safety and Licensing Board Special Assistant Attorney General U. S. Nuclear Regulatory Commission Corrmonwealth of Pennsylvania Washington, D.C. 20555 P. O. Box 2063
' Harrisburg, Pennsylvania 17105
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Dr. Kenneth A. ficcollom Assistant Dean - Raymond L. Hovis, Esq.
College of Engineering 35 South Duke Street Oklahoma State University York, Pennsylvania 17401 Stillwater, Oklahama 74074 Honorable W. W. Anderson Dr. Ernest 0. Salo, Professor Deputy Attorney General i Fisheries Research Institute WH-10 Department of Justice College of Fisheries Capitol Annex University of Washington Harrisburg, Pennsylvania 17120 Seattle, Washington 98195 Honorable Theodore A. Adler Edward G. Bauer, Jr., Esq. Deputy Attorney General Vice President and General Counsel Department of Justice Philadelphia Electric Conpany Capitol Annex 1000 Chestnut Street Harrisburg, Pennsylvania 17120 Philadelphia, Pennsylvania 19105 Eugene J. Cradley, Esq. H n [a e Wanen L M Special Assistant Attorney General Philadelphia Electric Company Department of flatural Resources 2301 flarket Street State ng Philadelphia, Pennsylvania 19101 An 9 1c(B y 21404 1
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Atomic Safety and Licensing Appeal
. .Mr. Herbert M. Sachs, Director Board Department of Natural Resources U. S. Nuclear Regulatory Commission Water Resources Administration Washington, D.C. 20555 Tawes State Office Building Annapolis, Maryland 21401 Atomic Safety and Licensing Board Richard S. Watt. Esq. Panel U. S. Nuclear Regulatory Commission U. S. Environmental Protection Washington, D. C. 20555 Agency
. Region III, Curtis Building Docketing and Service Section 6th and Walnut Streets Office of the Secretary Philadelphia, Pennsylvania 19106 U. S. Nuclear Regulatory Commission Washington, D.C. 20555 Honorable John B. Griffith Special. Assistant Attorney General TawesStateOfficeBuilding(C-4) w Annapolis, Maryland 21401 i
VM M 4M n Myron Jarman Coun el for NRC Staff 5
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