ML20155D560
| ML20155D560 | |
| Person / Time | |
|---|---|
| Site: | Rancho Seco |
| Issue date: | 10/03/1988 |
| From: | Holahan G Office of Nuclear Reactor Regulation |
| To: | SACRAMENTO MUNICIPAL UTILITY DISTRICT |
| Shared Package | |
| ML20155D557 | List: |
| References | |
| NUDOCS 8810110303 | |
| Download: ML20155D560 (4) | |
Text
i 7590-01 UNITED STATES OF AMERICA NUCLEAR REGULATORY COW.ISSION
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I In the Matter of SACRAMENTO MUNICIPAL UTILITY DISTRICT Docket No. 50-312 Rancho Seco Nuclear Generating Station i
EXEMPTION 1.
Sacramento Municipal Utility District (the licensee) is the holder uf Facility Cperating License No. DPR-54, which authorizes operation of the Rancho Seco Nuclear Generating Station.
The license provides, among other things, that it is subject to all rules, regulations, acd orders of the Comission now or hereafter in effect.
The facility consists of a pressurized water reactor at the licersee's site located in Sacratento County, Californie.
II.
On August 5, 1987, the NRC published in the FEDERAL REGISTER a final rule amending 10 CFR 50.54(w). The rule increased the amount of on-site property i
daraage insurance required to be carried ty hRC's power reactor licensees.
The rule also reauired these licensees to obtain t,y 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 who would disburse funds for decontamination and cleanup before any other purpose.
Subsequent to publication of the rule, the NRC has been informed by insurers who
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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 in the rule.
In response to these cowonts and related petitions for rulemaking, 8810110303 891003 PDR ADOCK 05000312 J
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the Conr.11ssion has proposed a revision of 10 CFR 50.54(w)(5)(1) extending the implementation scnedule 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 issubq a temporary exemption from the requirements of 10 CFR 50.54(w)(5)(1) until ccepletion 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 stall comply with the provisions of such rule.
111.
Fursuant to 10 CFR 50.12. "The Comission tray, upon application by any interested person or upon its own initiative, grant exempticrs from the requirementsoftheregulationsof[10CFRPart50],whichare... Authorized by law, will not present an undue risk to the public health and safety, and are consisterit with tne correon defense and security." Further,Section50.12(a)(2) provides inter alia, "The Comission 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 with the regulation."
Despite a goed faith effort to corrply with the provisions of the rule, insurers providing property damage insurance for nuclear power f acilities 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, i
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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 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 cushicn to licensees to decontaminate and clean up after an accident even withou'. the prioritization and trusteeship provisions. Second, nearly 75'i of the required coverage is already prioritized under the decontariination liability and excess property insurance language of the Nuclear Electric Insurance Limited-II policies. Finally, there is only an extremely smal? orobability of a serious accident occurrirg during the exemption period.
Even if a serious accident giving rise to substantial insurance claims were to occur, flRC would be able to take appropriate enforcenent action to assure adequate cleanup to protect public health ano safety ar:d the environment.
IV.
Accordingly, the Comission has determined, pursuant to 10 CFR 50.12(a),
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 circumstances are present as described in Section III. Therefore, the Comission hereby grants the following exemption:
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Sacramento Municipal Utility District is exempt from the requirements of 10 CFR 50.54(w)(5)(1) 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.
Upon 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 FR38385).
This exemption is effective upon issuance.
Dated at Rockville, Maryland this 3rd day of October,1988.
FOR ThE NUCLEAR REGULATORY COMMISSION Y Q ?P Gary M. Hol han, Acting Director Division of Reactor Projects - III, IV, V and Special Projects Office of Nuclear Reactor Regulation
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