ML20154R140

Exemption from 10CFR50.54(w)(5)(i),requiring Licensees to Obtain Insurance Policies That Prioritize Insurance Proceeds for Stabilization & Decontamination After Accident

ML20154R140
Person / Time
Site:	Robinson
Issue date:	09/29/1988
From:	Varga S Office of Nuclear Reactor Regulation
To:	CAROLINA POWER & LIGHT CO.
Shared Package
ML20154R106	List: ML20154R103 ML20154R140
References
FRN-53FR38116 NUDOCS 8810040179
Download: ML20154R140 (4)

Text

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7590-01 ,

UNITED STATES OF AMERICA ,

NUCLEAR REGULATORY COMMISSION In the matter of CAROLINA POWER & LIGHT COMPANY, et al. Docket No. 50-261 (H. B. Robinson Steam Electric Plant,  !

Unit No. 2)  ;

] EXEMPTION l

1 r

1.  !

Carolina Power & Light Company (the licensee), is the holder of Facility I Operating License No. DPR-23, which authorizes operation of the H. 8. Robinson l

Steam Electric Plant, Unit No. 2. The license provides, among other things, [

that the licensee is subject to all rules, regulations, and orders of the Comission now or hereaf ter in effect.

i The facility consists of a pressurized water reactor at the liceasee's site }

located in Darlington County, South Carolina.

l 1 II.  ;

! On August 5,1987, the NRC published in the FEDERAL REGISTER a final rule  !

amending 10 CFR 50.54(w). The rule increased the amount of cn-site property j

{ damage insurance required to be carried by NRC's power reactor licensees. The rule also required these licensees to obtain by October 4, 1988 insurance policies  ;

i L 1 that prioritized insurance proceeds for stabilization and decontamination after  !

l ,

an accident and provided for payment of proceeds to an independent trustee who  ;

j would disburse funds for decontamination and cleanup before any other purpose.  ;

1 Subsequent to publication of the rule, the NRC has been informed by insurers who

! offer nuclear property insurance that, despite a good faith effort to obtain l k trustees required by the rule, the decontamination priority and trusteeship j i

l provisions will not be able to be incorporated into policies by the time required j j 0810040179 800929 i POR ADOCK 05000261 -

l 5 PNU j

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in the rule. In response to these comments and related petitions for rulemaking the Counission has proposed a revision of 10 CFR 50.54(w)(5)(i) extending the implementation schedule for 18 months (53 FR 36338, September 19, 1988). However, because it is unlikely that this rulemaking action will be completed by October 4,1988, the Connission is issuing a temporary exemption from the requiren.ents of 10 CFR 50.54(w)(5)(1) until cornpletion of the pending rulemaking extending the implementation date specified in 10 CFR 50.54(w)(5)(1), but not later than April 1, 1989. Upon completion of such rulemaking, the licensee shall comply with the provisions of such rule.

Pursuant to 10 CFR 50.12. "The Comission may, upon application by any .

interested person or upon its own initiative, grant exemptions from the requirernents of the regulations of [10 CFR Part 50], which are ... Authorized by law, will not present an undue risk to the public health and safety, anc are consistent with the common defense and security." Further,Section50.12(a)(2) providt.s inter alia, "The Connission will not consider granting an exemption unless special circumstances are present. Special circumstances are present whenever ... (v) The exemption would provide only temporary relief from the applicable regulation and the licensee has made good faith efforts to comply with the regulation."

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

\

i As noted by the Conrnission in the Supplementary Information accompanying the proposed rule, there are several reasons for concluding that delaying for f d reasonable time the implementation of the stabilization and decontamination '

t 1 priority and trusteeship provisions of Section 50.54(w) will not adversely l affect protection of public health and safety. First, during the period of f

delay, the licensee will still be required to carry $1.06 billion insurance.

-l This is c substantial amount of coverage that provides a significant financial cushion to licensees to decontaminate and clean up after an accident even without the prioritization aad trysteeshio provisions. Second, nearly 75% of

the required coverage is alreaoy prioritized under the decontanination liability I and excess property insurance langvage of the Nuclear Electric Insurance .

]

) Limited-II rolicies. Finally, there is only an extremely small probability of l a serious accident occurring during the exemption period. Even if a s'erious I accident giving rise to substantial insurance claims were to occur, NRC would be able to take appropriate enforcerent action to assure adequate cleanup to protect -

i i public health and safety and the environment, ,

i

) IV.

i Accordingly, the Comission has determined, pursuant to 10 CFR 50.12(a), r i  ;

j that (1) a temporary exemption as described in Section !!! is authorized by l r

1 law, will not present an undue risk to the public health and safety, and is i l

consistent with the comen defense and security anc (2) in this case, special l l

circunstances are present as described in Section Ill. Therefore, the l Comission hereby grants the following excmption: {

1 i

Carolina Power & Light Conpany is exempt from the requirerents of }'

l 10 CFR 50.54(w)(5)(i) until the completion of the pending rulemaking

.j cxtending the implementation date specified in 10 CFR 50.54(w)(5)(i), but 1 net later than April 1, 19S9. Upon completion of such rulemaking the licensee shall comply with the provisions of such rule, j L .-~ ___ __. __.-_- _ _ _ _-_ _ _ _ _ __ _ -___ _ _ .__. _._ _-_

Pursuant to 10 CFR 51.32, the Commission has determined that the granting of this exemption will not result in any significant environinental impact

( 53 FR 38116).

This exemption is effective upon issuance.

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

FOR THE NUCLEAR RECULATORY COP.HISSION

\b Steven A. Varga, Director Division of Reactor Projects I/II Office of Nuclear Reactor Regulation 1

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