ML20155F996
| ML20155F996 | |
| Person / Time | |
|---|---|
| Site: | Fort Saint Vrain  |
| Issue date: | 09/30/1988 |
| From: | Holahan G Office of Nuclear Reactor Regulation |
| To: | PUBLIC SERVICE CO. OF COLORADO |
| Shared Package | |
| ML20155F987 | List: |
| References | |
| NUDOCS 8810140032 | |
| Download: ML20155F996 (4) | |
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e UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the matter of PUBLIC SERVICE COMPANY OF COLORADO Docket No. 50-267 (FortSt.VrainNuclearGenerating Station)
EXEMPTION I.
Public Service Company of Colorado (the licensee) is the holder of Facility Operating License No. OPR-34, which authorizes operation of the Fort St. Vrain Nuclear Generating Station. The license provides, arong other things, that it is subject to all rules, regulations, and orders of the Coninission now or hereafter in effect.
The facility consists of a high temperature gas-cooled reactor at the licensee's site located in Weld County, Colorado.
II.
On August 5, 1987, the NRC published in the FEDERAL REGISTER a final rule arrending 10 CFR 50.54(w). The rule increased the amount of on-site property 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 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 inforred by insurers who 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 i
7 J
s in the rule.
In response to these comments and related petitions for rulemaking, the Comission has proposed a revision of 10 CFR 50.54(w)(5)(1) extending the implementationschedulefor18 months (53FR36338, 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 requirementsof10CFR50.54(w)(5)(1)untilcompletionofthependingrulemaking extendingtheimplementationdatespecifiedin10CFR50.54(w)(5)(1),butnot 1ater than April 1, 19F9. Upon completion of such rulemaking, the licensee shall comply with the provisions of such rule.
III.
Pursuant to 10 CFR 50.12 "The Comission may, upon application by any interested person or upon its own initiative, grant exemptions from the requirenents 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 consistant with the com on defense and security." Further Section 50.12(a)(2) provides in,g alia, "The Comission will not consider granting an exemption unless special circumstances are present.
Special circumstances are present
]
whenever... (v) The exemption would provide cnly temporary relief from the applicable regulation and the licensee has made good faith efforts to comply with the regulation."
i Despite a good faith effort to comply with the provisions of the rule, insurers providing property darage insurance for nuclear power facilities and licensees insured by such insurers nave not been able to comply with the 1
regulation and the exemption provides only temporary relief from the applicable regulatien.
o,
As noted by the Commission 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 6dversely 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 75t 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 accident giving rise to substantial insurance claims were to occur, NRC would be able to tak; appropriate enforcement action to assure adequate cleanup to protect public health and safety and the environment.
IV.
Accordingly, the Commission has determined, pursuant to 10 CFR 50.12(a),
that (1) a temporary exemption as described in Section !!I. is authcrized by law, will not present an undue risk to the public health and safety, and is consistentwiththecommondefenseandsecurityand(2)inthiscase,special circumstances are present as described in Section III. Therefore, the Commission hereby grants the following exemption:
I
1 I
e Public Service Company of Colorado 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)(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 Cortnission has determined that the granting of this exemption will not result in any significant environmental impact (53 FR 38384).
This exemption is effective upon issuance.
Dated at Rockville Maryland this 30th day of September 1988.
FOR THE NUCLEAR REGULATORY COMMISSION Y} N Gery.".. Holahan, Acting Director Division of Reactor Projects - III, IV, V and Special Projects Office of Nuclear Reactor Regulation