ML20155C595

Temporary Exemption from 10CFR50.54(w)(5)(i) Property Insurance Rule Requirements

ML20155C595
Person / Time
Site:	Maine Yankee
Issue date:	10/04/1988
From:	Varga S Office of Nuclear Reactor Regulation
To:	YANKEE ATOMIC ELECTRIC CO.
Shared Package
ML20155C586	List: ML20155C582 ML20155C595
References
NUDOCS 8810100110
Download: ML20155C595 (4)

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4 7590-01 UNITED STATES OF AMEkiCA NUCLEAR PEGULATCRY CCMMISSION In the matter of )

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i YANyrt ATOMIC ELECTRIC Ccchet No. 50 C29 COMPANY I 1

( Yankee Nucletr Power Station)

EXEMPTION

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Yankee Atcric flectric Company (the licensee) is the holder of Facility Operating License No. OPR-3 which authori:es operation of the Yankee Nuclear Power Station (the facility). The license provides, among other things, that it is sub.iect to all rules, regulations, and orders of the Commission riew or hereafter in effect.

The facility is a pressurited water reacter at the licensee's site located in Franklin, Massachusetts 11.

l Cn August 5. 1987, the NRC published in the FEDERAL REGISTEP a final rule amendtog 10 CFR 50.E4(w). The rule increased the amount of en. site property l daeage insurance required to be carried by hRC's power reactor licensees, The 1

i rule also revuired these licensees to ettain by October 4. 19P8 insurance policies i I

that prioritized insurance preceeds for stabilization and de:ontamination af ter i l g an accident and provided for payrert of proceeds to an independent trustee who e n3.

$R' would disburse sur" for decontariration and cleanup before any cther purpose.

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$a Subsecuent to poblication of the rule, the hRC has been informed by insurers who l h' offer nuclear prcperty insurance that, despite a sced faith effort to obtain 0

04 trustees recuired by the rule, the decontamination priority and trusteeship 4

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$ provisions will nat be able to be inccrporated into policitt by the time required aaah in the role. In response to these comrents and related petitions for ruleTaking,

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the Comission has proposed a revision of 10 CFR 50.54(w)(5)(i) extending the  !

i implementation s:hedule for 18 months (53 FR 36338 September 19, 19881. l However, because it is utiliksly that this rulemaking action will be completed l 1 by Octo>,er 4,1988, the Comissirn is issuino a temporary exemption from the  !

j requirements of 10 CFR 50.54(w)(5)(i) until completion of the pending rulemaking j extending the implementation date specified in 10 CFR 50.54(w)(5)(i), but not f l

j later than April 1,1989. Upon cornoletion of such rule. caking, the licensee f r

shall coroly with the provisions of such rule. l I  !

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

interested person or upon its cwn initiative, grant exemptions from the (

t equirements of the regulatiens of [10 CFR Part 50), which are ... Authorized f 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, Section 50.1?(a)(2) l 1

! provides inter alia, "The Comission will not consider grantino an exerption l I

I l unless special circumstances are present. Special circumstances are present  !

whenever ... (v) The exemption would provide only temporary relief from the l t

applicable regulation and the licensee has made good faith efforts to cceply  !

l j with the regulation." (

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i Despite a gow faith effort to comply with the provisions of the rule, j i

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) insurers providing property damage insurance for nuclear power facilities and j i'  !

licensees insured by such insurers have not been able to comply with the  !

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! regulation and the exemption provides only temporary relief from the applicable  ;

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! regulation.  !

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As noted by the Comission in the Supplementary Infonnation accomptnying l the proposed rule, there are several reasons for concluding that delaying for a reasonable time the implementation of the stabiltratier and decontemination j i  !

priority and trusteeshio provisions of Section 50.54(w) vill not adversely j affect protection of public health and safety. First, dLring the period of  ;

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

i j .this is a substantial amount of coverage that provides a significant financial l cushion to licensees to decontaminate and clean up after an accident even  !

t j without the prioritiration and trusteeship provisions. Second, nearly 75% of  !

J the required coverage is already prioritized under the d(contamination liability j and excess property insurance lanouage of the Nuclear Electric Insurance J

Limited-!! policies. Finally, there is only an extremely small probability of [

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a serious accident occurring during the exemption period. Even if a serious 3

accident giving rise to substantial insurance claims were to occur, NRC would be f eble to take appropriate enforcement action to assure adequate cleanup to protect  !

public health and safety and the environment.

!Y. i j Accordingly, the tennission has detennined, pursuant to 10 CFR 50.1?(a), f 3 that (1) a temporary exemption as described in Section !!!. is authorized by 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 I

circumstances are present as described in Section !!!. Therefore, the

Ccmis.fon hereby grants the followina exemption

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Yankee Nuclear Power Company is exempt from the requirements of 10 CFR 50.54(w)(5)(i) until the conpletion of the rending 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 51.32, the Commission has detemined that the granting of this exemption will not result in any significant environrental impact (53 FR 38999).

This exemption is effective upee issuance, p Dated at Rockville, Maryland, this day of ele b- , 1988.

FOR TFE NUCLEAR REGULATORY CCFMISSION

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Steven A. Yarga, Division Director Division of Peactor Projects, I/II Office of Nuclear Reactor Regulation P

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