ML20196J026
| ML20196J026 | |
| Person / Time | |
|---|---|
| Issue date: | 07/20/1998 |
| From: | NRC OFFICE OF THE SECRETARY (SECY) |
| To: | |
| Shared Package | |
| ML20196H655 | List: |
| References | |
| FRN-63FR50465, RULE-PR-30, RULE-PR-50 AF41-2-056, AF41-2-56, SECY-98-164, SECY-98-164-ERR, NUDOCS 9812090248 | |
| Download: ML20196J026 (4) | |
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db PD/b July 20,1998 1
i CORRECTION NOTICE 1
TO ALL HOLDERS OF SECY-98164 - FINAL RULE ON FINANCIAL ASSURANCE REQUIREMENTS FOR I
DECOMMISSIONING NUCLEAR POWER REACTORS l
1 PLEASE REPLACE THE PAGES IN ATTACHMENT 4 OF SECY-98-164 WITH THE ATTACHED REPLACEMENT PAGES. THIS PROVIDES A MODIFIED PRESS RELEASE FROM THE OFFICE OF PUBLIC AFFAIRS.
b ATTACHMENT:
AS STATED 4
THE SECRETARIAT A
9812090248 981208 PDR PR 30 63FR50465 PDR S
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4 DRAFT (PER SECY-98-164)
NRC AMENDS DECOMMISSIONING FUNDING RULE FOR NUCLEAR POWER' PLANTS 1
The Nuclear Regulatory Commission is amending its regulation j
i on decommissioning funding for nuclear power plants to reflect
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conditions expected from rate deregulation of the electric power industry.
The amended rule, which takes effect 60 days after its forthcoming publication in the Federal Register, will:
i Identify which. licensees may use what is known as the e
external-sinking fund method of financial assurance for decommissioning.
This method sets aside funds in an account segregated from the licensee's assets and i
administrative control.
It can be a trust, escrow account, government fund, certificate of deposit, I
government securities or other payment acceptable to the NRC.
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Describe additional decommissioning financial assurance mechanisms.
Define a " Federal _ licensee" as any licensee which has the full faith and credit backing of the United States government.
Only such licensees could use statements of intent to meet decommissioning financial assurance requirements for power reactors.
Require nuclear power plant licensees to report to the NRC on the status of their decommissioning funds by March 31, 1999, and at least once every two years thereafter.
They will be required to report annually, l
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starting within five years of the planned end of operation.
An annual status report also will be i
required when conditions indicate that the plant will close within five years before its license expires or 1
in instances when the plant already has closed.
NRC's present rule contains no such requirements because state and Federal rate-regulating bodies actively monitor these funds.
A deregulated utility would have i
no such monitoring.
Permit nuclear power plant licensees to take credit on earnings for prepaid decommissioning trust funds and external sinking funds from the time the funds are set aside through the end of the' decommissioning period.
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The present rule does not permit such credit because it i
is assumed that inflation and taxes would erode any investment return.
The NRC has decided, however, that f
this position is not borne out by historical performance of inflation-adjusted funds invested in U.S.' Treasury instruments.
i Further. details will be available in the Federal Register notice to be published shortly.
i In adopting this amendment, NRC considered 650 comme 1ru received in response to an advanced notice of proposed rulemaking published in April 1996 and more than 200 comments received after a.. proposed rule was published last September, e
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O 49H2 nlL IN RESPONSE, PLEASE REFER TO: M980902B
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September 2,1998 50 MEMORANDUM FOR:
L. Joseph Callan Executive Director for Operations FROM:
John C. Hoyle, Secretary /s/
SUBJECT:
STAFF REQUIREMENTS-AFFIRMATION SESSION,11:30 A.M., WEDNESDAY, SEPTEMBER 2,1998, COMMISSIONERS' CONFERENCE ROOM, ONE WHITE FLINT NORTH, ROCKVILLE, MARYLAND (OPEN TO PUBLIC ATTENDANCE)
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SECY-98-164 - Final Rule on Financial Assurance Reauirements for Decommissionina Nuclear Power Reactors The Commission approved a final rule amending 10 CFR Part 50 relating to financial assurance requirements for decommissioning of nuclear power plants. The rule is responsive to the anticipated rate deregulation of the power generating industy.
Following incorporation of the attached changes, the Federal Reaister notice should be i
reviewed by the Rules Review and Directives Branch in the Office of Administration and j
forwarded to the Office of the Secretary for aignature and publication.
(EDO)
(SECY Suspense:
9/11/98) i The staff should use the intervening period of time between the publication date of the rule and the effective date to determine whether licensees who are known to be lacking decommissioning funding assurance, under the new regulatory criteria, can demonstrate an equivalent level of financial qualifications through other mechanisms. Further, the staff should apprise itself of what actions such licensees intend either to take to bring themselves into compliance or to obtain relief through established regulatory processes by the effective date of the rule.
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Attachment:
1 As stated i
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P cc:
Chairman Jackson Commissioner Diaz Commissioner McGaffigan l
OGC CIO i
CFO i
OCA OlG Office Directors, Regions, ACRS, ACNW, ASLBP (via E-Mail)
PDR-Advance DCS - P1-17 i'
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s Changes to the Federal Reaister Notice in SECY-98-164 1.
On page 46, third line from the bottom, replace ' project' with ' projected.'
2.
On page 47, the last sentence in the last paragraph should be revised to read:
"NRC also is adopting commenter suggestions that the reporting frequency be increased for plants approaching the end of commercial operation and for plants where conditions have changed such that it will prematurely close within five years or has already prematurely closed before the end of its licensed life, or for plants involved in merger / acquisitions."
3.
On page 76, line 4, insert '(before the end of its licensed life)' after 'S years' and insert
'(before the end of its licensed life)' after 'already closed.'
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