ML20155D001
| ML20155D001 | |
| 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: |
| References | |
| NUDOCS 8810110006 | |
| Download: ML20155D001 (4) | |
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i 7590-01 UNITED STATES OF AMERICA
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NUCLEAR REGULATORY COMMISSION In the Matter of SOUTHERNCALIFORNIAED150NCOMPANY, Docket Nos. 50-361 ET. AL.
and 50-302 (SanOnofreNuclearGenerating Station, Units 2and3)
EXEMPTION 1.
Southern California Edison Company, San Diego Gas and Electric Company, i
the City of Anaheim, California and the City of Riverside, California (the licensees) are the holders of Facility Operating Licenses No. NPF-10 and NPF-15, l
which authorize operation of San Onofre Nuclear Generating Station, Units 2 and 3, respectively. The licenses provide, among other things, that they are subject to all rules, regulations, and orders of the Comission now or hereaf ter in effect.
I The facilities consist of two pressurized water reactors at the licensees' site located in San Diego County, California.
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On August 5, 1987, the NRC published in the FEDERAL REGISTER a final rule 3
amending 10CFR50.54(w). The rule increased the amount of on-site property i
l damage insurance required to be carried by NRC's power reactor licensees. The
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rule also required these licensees to obtain by October 4,1988 insurance policies i
that prioritized insurance proceeds for stabilization and decontamination after l
an accident and provided for payment of proceeds to an independent trustee who would disburse funds for decontamination and cleanup before any other purpose, j
Subse vent to publication of the rule, the NRC has been informed by insurers who l
offer nuclear property insurance that, despite a good faith effort to obtain trustees required by the rule, thc decontamination priority and trusteeship N
Q yIoIIvuol )g
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I provisions will not be able to be incorporated into policies by the time required i
in the rule.
In response to these comments and related petitions for rulemaking, the Coriaission has proposed a revision of 10 CFR 50.54(w)(5)(1) extending the implementation schedule for 18 months (53 FR 36330, September 19,1988).
Hewever, because it is unlikely that this rulemaking action will be completed by October 4,1988, the Comission is issuing a temporary exerption from the requirements of 10 CFR 50.54(v)(5)(i) until completion of the pending rulemaking extendingtheimplementationdatespecifiedin10CFR50.54(w)(5)(1),butnot later than April 1,1989. Upon completion of such rulemaking, the licensees shall comply with the provisions of such rule.
i pursuant to 10 CFR 50.12 "The Comission may, upon application by any interested person or upon its own initiative, grant exemptions from the l
requirerents 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, Section 50.12(a)(2)
I provides inter alia, "The Comission will not consider granting an exemption l
unless special circumstances are present. Special circumstances are present I
whenever... (v) The exemption would provide only temporary relief from the 1
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applicable regulation and the licensee has made good faith efforts to comply i
j with the regulation."
J Despite a good faith effort to comply with the provisions of the ruic, j
insurers providir.g property damage insurtnce for nuclear power facilities and j
licensees insured by such insurers have not been able to cceply with the regulation and the exeeption provides only temporary relief from the applicable
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regulation.
4 As noted L,y the Comission in the Supplementary Irformation accompanying
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the proposed rule, there are several reasons for concluding that delaying for a reasonable time the implementation of the stabilization and decontamination I
priority and trusteeship provisions of Section 50.54(w) will not adversely i
affect protection of public health and safety.
First, during the period of delay, the icensees will still be required to carry $1.06 billion insurance.
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This is a substantial amount of coverage that provides a significant financial j
cushion to licensees to decontaminate and clean up after an accident even I
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 !! policies.
Finally, there is only an extremely sna11 probability of l
o serious accident occurring during the exemption period.
Even if a serious j
accident giving rise to substantial insurance claims were to occur, NRC would be l
eble to take appropriate enforcement action to assure adequate cleanup to protect public health and safety and the environment, i
I IV.
Accordingly, the Comission has determined, pursuant to 10 CFR 50.12(a),
that(1)atemporaryexemptionasdescribedinSecticn!!!.isauthorizedby law, will not present an undue risk to the public health and safety, and is consistent with the comen defense and security and (2) in this case, special i
circumstances are present as described in Section !!!.
Therefore, the I
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Comission hereby grants the following exemption
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1 The licensees for San Onofre Nuclear Generating (Station, Units 2 and 3 are exerat from the requirements of i) CFR 50.54(w) 5)(i) until the completion oftiepending)rulemakingextendingtheimplementationdatespecifiedin 10CFR50.54(w(5)(1),butnotlaterthanApril1,1989. Upon completion 3
of such rulemaking the licensees shall comply with the provisions of such rule.
Pursuant to 10 CFR 51.32, the Cosnission has determined that the granting of this exemption will not result in any significant environeer.tal impact
( 53 FR 38386).
l This exemption is effective upon issuance.
Dated at Rockville, Maryland this 3rd day of October,1988, f
FOR THE NUCLEAR REGULATORY COMMISSION i
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pk Gary M. Ho ahan, Acting Director Division of Reactor Projects - Ill, IV, Y and Special Projects Office of Nuclear Reactor Regulation l
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