ML20155A154

Exemption from Requirements of 10CFR50.54(w)(5)(i) Re Onsite Property Damage Insurance Pending Completion of Rulemaking But No Later than 890401

ML20155A154
Person / Time
Site:	San Onofre
Issue date:	10/03/1988
From:	Holahan G Office of Nuclear Reactor Regulation
To:	SOUTHERN CALIFORNIA EDISON CO.
Shared Package
ML13316B117	List: ML20155A154 ML20155D001
References
NUDOCS 8810050231
Download: ML20155A154 (4)

Text

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9 7590-01 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Hatter of SOUTHERN CALIFORNIA EDISON COMPANY Docket Nos. 50-206  !

SAN DIEGO GAS AND AND ELECTRIC COMPANY (SanOnofreNuclearGenerating Station, Unit No. 1)

EXEMPTION Southern California Edison Company and San Diego Gas and Electric Company (the licensees) are the holders of Facility Operating License No. DPR-13, which i authorizes operation of San Onofre Nuclear Generating Station, Unit ho. 1.

] The license provides, among other things, that it is subject to all rulas, I regulations, and orders of the Comission now or hereafter in effect.

The facility consists of a pressurized water reactor at the licensees' site located in San Diego County, California.

II.

On August 5, 1967, the NRC published in the FEDERAL REGISTER a final rule )

arending10CFR50.54(w). The rule increased the amount of on-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 that prioritized insurance procee n for stabilization 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 oi.her purpose, f Subsequent to publication of the rule, the NRC has been informed by insurers who 1

offer nuclear property insurance that, despite a good faith effort to obtain j trustees required by the rule, the decontamination priority and trusteeship provisions will not be able to be incorporated into policies by the time required I in the rule. ID_ response _to these corrents and related petitions for rulemaking, j 7 'N

i 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 from 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 licensees i shall comply with the provisions of such rule.

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

interested person or upon its own initiative, grsnt exeiaptions from the  ;

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I requirementsoftheregulationsof[10CFRPart50],whichare... Authorized I

! by law, will not present an undue risk to the public health and safety, and are

] consistent with the comon defense and security." Further,Section50.12(a)(2) provides inter alia, "The Comission will not consider granting an exemption l unless special circumstances are present. Special circumstances are present l whenever ... (v) The exemption would provide only temporary relief from the I applicable regulation and the licensee has made good faith efforts to comply with the regulation."

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Despite a good faith effort to comply with the provisions of the rule, 1

insurers providing property damage insurance for nuclear power facilities and 1 licensees insured by such insurers have not been able to comply with the 1

l regulation and the exemption provides only temporary relief from the applicable 1

) regulation.

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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 4

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. '

i 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 in ince 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 accident giving rise to substantial insurance claims were to occur, NRC would be  :

i able to take appropriate enforcement action to assure adequate cleanup to protect i public health and safety and the environment.

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IV. )

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

! that (1) a temporary exemption as described in Section 111. is autho: . zed by

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law, will not present an undue risk to the public health and safety, and is consistent with the comon defense and security and (2) in this case, special circumstances are present as described in Section III. Therefore, the

Comission hereby grants the following exemption:

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The licensees for San Onofre Nuclear ~ Generating Station, Unit I are exem)t fromtherequirementsof10CFR50.54(w)(5)(1)untilthecompletionoft1e pending)rulemaking extending the implementation 50.54(w(5)(1),butnotlaterthanApril1,1989. Upon date specified completion ofinsuch 10 CFR rulemaking the licensees shall comply with the provisions of such rule.

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

( 53 FR 38386).

This exemption is effective upon issuance. ,

Dated at Rockville, Maryland this 3rd day of October,1988.

FOR THE NUCLEAR REGULATORY COMMISSION 8 9h ~

Gary M. Holahan, Acting Director Division of Reactor Projects - III, IV, Y and Special Projects l'

. Office of Nuclear Reattor Regulation l

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