ML20155A078

Exemption from 10CFR50.54(w) Requirements Re Increase in Amount of Onsite Property Damage Insurance Required to Be Carried by Licensees

ML20155A078
Person / Time
Site:	Big Rock Point, 05000000
Issue date:	09/30/1988
From:	Holahan G Office of Nuclear Reactor Regulation
To:	CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
Shared Package
ML20155A076	List: ML20155A072 ML20155A078 ML20155A085
References
NUDOCS 8810050200
Download: ML20155A078 (4)

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7590-01 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMISSION In the mat',er of )

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CONSU G S POWER COMPANY ) Docket No. 50-155

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(Big Rock Point Plant) )

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EX EP."" ?N I. l 5

Consumers Power Company (the licensee) is the holder of Facility Operating License No. OPR-6, which authorizes operation of the Big Rock Point Plant. The license provides, among other things, that the Big Rock Point Plant is subject to all rules, regulations, and orders of the Nuclear Regulatory Commission (the Commission) now or hereafter in effect. ,

The facility consists of a boiling water reactor at the licensee's site

. located in Charlevoix County, Michigan. .

II. I On August 5, 1987, the Commission published in the FEDERAL REGISTER a final rule amending 10 CFR 50.54(w). The rule increased the amount of on-site l property damage insurance required to be carried by the Commission's power l reactor licensees. The rule also required these licensees to obtain by  ;

October 4,1988, insurance policies that prioritized insurance proceeds for stabilitation and decontamination after an accident and provided for payment of proceeds to an independent trustee who would disburse funds for decontamination and cleanup before any other purpose. Subsequent to publication of the rule,  !

the Commission has been informed by insurers who offer nuclear property  ;

insurance that, despite a good faith effort to obtain trustees required by the l rule, the deconta'mination priority and trusteeship provisions will not be able to be incorporated into policies by the time required in the rule. In response 0010050200 GG0930 fDR ADOCK0500g"5 g

4 to these comments and related petitions for rulemaking, the Commission 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 thn this rulemaking action will be completed by October 4, 1988, the Commission is issuing a temporary exemption Trom the requirements of 10 CFR 50.54(w)(5)(i) until completion 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.

III.

Pursuant to 10 CFR 50.12, "The Commission may, upon application by any interested person or upon its own initiative, grant exemptions from the ,

requirements of the regulations of (10 CFR Part 50), which are ... Authorized

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by law, will not present an undue risk to the public health and safety, and are consistent with the common defense and security." Further, Section 50.12(a)(2) provides inter alia, "The Commission 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 t

with the regulation." ,

Despite a good faith effort to comply with the provisions of the rule, i insurers providing property damage insurance for nuclear power facilities and ,

i licensees insured by such insurers have not been able to comply with the 7 regulation and the exemption provides only temporary rr. lief from the applicable regulation, j

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As noted by the Commission in the Supplementary Information accompanying the proposed rule, there are several reasons for concluding that delaying for i a reasonable time the implementation of the stabilization and decontamination l prinrity and trusteeship provisions of Section 50.54(w) will not adversely [

affect 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 decontaminate 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 extremely small probability of a serious accident occurring during the exemption period. Even if a serious l accident giving rise to substantial insurance claims were to occur, the Commission would be able to take appropriate enforcement action to assure ,

adequate cleanup to protect public health and safety and the environment.

Iv. i, Accordingly, the Commission has determined, pursuant to 10 CFR 50.12(a),  ;

that (1) a temporary exemption as described in Section III is authorized by  !

law, will not present an undue risk to the public health and safety, and is consistent with the common defense and security and (2) in this case, special [

t circumstances are present as described in Section III. Therefore, the r Coenission hereby grants the following exemption:

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s Consumers Power Company is exempt from the requirements of 10 CFR 50.54 (w)(5)(i) until the completion of the pending rulemaking extending the implementation date specified in 10 CFR 50.54(w)(5)(1), but not later than

April 1, 1989. 3;Jn completion of such rulemaking the licensee shall comply with the provisions of such rule.

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

( 53 FR 38118 ),

This exemption is effective upon issuance.

Dated at Rockville, Maryland this 30th day of September , 1988.

l FOR THE NUCLEAR REGULATORY COMMISSION yay W Gary M. Holahan, Acting Director Division of Reactor Projects - III, IV, and Special Projects

Office of Nuclear Reactor Regulation

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