ML20154R585
| ML20154R585 | |
| Person / Time | |
|---|---|
| Site: | Farley  |
| Issue date: | 09/29/1988 |
| From: | Varga S Office of Nuclear Reactor Regulation |
| To: | ALABAMA POWER CO. |
| Shared Package | |
| ML20154R579 | List: |
| References | |
| NUDOCS 8810040299 | |
| Download: ML20154R585 (4) | |
Text
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7590-01 UNITED STATES OF AMERICA NUCLEAR REGULATORY C0 fill!SSION In the matter of ALABAMA POWER COMPANY Oocket Nos. 50-364 and 50-348 (Joseph M. Farley Nuclear Plant, Units 1 and 2 EXEMPTION I.
Alabama Power Company (the licensee), is the holder of Facility Operating License Nos. NPF-2 and NPF-8, which authorize operation of the Joseph M. Farley Nuclear Plant, Units 1 and 2.
The licenses provide, among other things, that.
the licensee is subject to all rules, regulations, and orders of the Conniss. ion now or hereafter in effect.
The facility consists of two pressurized water reactors at the licensee's site located in Houston County near Dothan, Alabama.
II.
On August 5,1987, the NRC published in the FEDERAL REGISTER a final rule amendirg10CFR50.54(w).
The rule increased the amount of on-site property 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 that prioritized insurance proceeds for stabilization and decontamination after an accident and provided for payment of proceeds to an independent trustee wno would disburse funds for decontanination and cleanup before any other purpose.
Subsequent to publication of the rule, the hRC has been informed by insurers who offer nuclear property insurance that, despite a good faith effort to obtain trustees required by the rule, the decontamination priority and trusteeship provisions will not be able to be incorporated into policies by the time required 0010040299 000929 PDR ADOCK 00000348 E
PNV
-2 in the rule.
In response to these coments and related petitions far rulemaking, the Comission has proposed a revision of 10 CFR 50.54(w)(5)(1) 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 Comission is issuing a temporary exemption fromtherequirementsof10CFR50.54(w)(5)(1)untilcompletionofthepending rulemaking extending the implementation date specified in 10 CFR 50.54(w)(5)(i),
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 Commission may, upon application by any 1
interested person or upon its own initiative, grant exemptions from the requiretrents 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, and are consistent with the common defense and security." Further,Section50.12(a)(2) provides inter alia, "The Commission will not consider granting an exemption unless special circumstances are present. Special circumstar.ces are prestnt whendver... (v) The emmption 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 comply with the provisions of the rule, insurers providing property darage insurance for nuclear power facilities and licensees insured by such insurers have not been able to comply with the regulation and the exemption provides only temporary relief from the applicable regulation.
. As noted by the Comission in the Supplementary Information accompanying the proposed rule, there are several reasons for concluding that delaying for a reasonable time the implementation of the stabilization and decontamination priority and trusteeship provisions of Section 50.54(w) will not adversely af fect protection of public health and safety. First, during the period of delay, the licensee will still be required to carry $1.06 billion insurance.
This is a substantial amount of coverage that provides a significant financial cushion to licensees to decontaninate and clean up after an accident even without the prioritization and trusteeship provisions. Second, nearly 75% of the required coverage is already prioritized under the decontamination liability and excess property insurance language of the Nuclear Electric Insurance
"[
Limited-II policies.
Finally, there is only an extrenely small probability of a serious accident occurring during the exemption period.
Even if a serious t
l accident giving rise to substantial insurance claims were to occur, NRC would be able to take appropriate enforcement action to assure adequate cleanup to protect public health and safety and the environment, i
IV.
Accordingly,theCommissionhasdetermined,pursuantto10CFR50.12(a),
that (1) a temporary exemption as described it. Section !!! is authorized by l
law, will not present an undue risk to the public health and safety, and is i
consistent with the common defense and security and (2) in this case, special
{
circumstances are present as described in Section !!!. Theleiore, the I
Comission hereby grants the following exemption:
)
Alabama Power Company is exempt from the requirements of 10 CFR j
50.54(w)(5)(1) until the completion of the pending rulenaking extending the ir.plementation date specified in 10 CFR 50.54(w)(5)(1), but not later l
than April 1, 1989. Upon cocpletion of such rulemaking the licensee shall comply with the provisions of such rule.
4 Pursuant to 10 CFR 51.32, the Conmission has determined that the granting of this exemption will not result in any significant environmental impact
( 53 FR 38114).
This exemption is effective upcn issuance.
Dated at Rockville, Maryland this 29th day of September
, 1988.
FOR THE NUCLEAR REGULATORY COMMISSION Steven A. Varga, Director Division of Reactor Projects 1/I!
Office of Nuclear Reactor Regulation i
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