ML20206K513

Temporary Exemption from 10CFR50.54(w)(5)(i) Re Increase in Amount of Onsite Property Damage Insurance Required by Power Reactor Licensees & Insurance That Prioritize Insurance Proceeds for Stabilization & Decontamination After Accident

ML20206K513
Person / Time
Site:	La Crosse File:Dairyland Power Cooperative icon.png
Issue date:	11/18/1988
From:	Holahan G Office of Nuclear Reactor Regulation
To:	DAIRYLAND POWER COOPERATIVE
Shared Package
ML20206K500	List: ML20206K496 ML20206K513
References
NUDOCS 8811290433
Download: ML20206K513 (4)

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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the matter of DAIRYLAND POWER COOPERATIVE Docket No. 50-409 LaReactor Crosse Boiling) Water (LACBWR EXEMPTION 1.

Dairyland Power Cooperative (the licensee) is the holder of Provisional License No. DPR-45, which authcrizes possession but not operation of the La Crosse Boiling Water Reactor (LACBWR). The license provides, among other things, that it is subject to all rules, regulations, and orders of the Commission now or hereafter in effect.

The facility consists of a boiling water reactor at the licensee's site located in Vernon County, Wisconsin.

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 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 informed by insurers who 4 offer nuclear property insurance that, despite a good faith effort to obtain trustees required by the rule, the decontamination priority and trusteeship BG11290433 001110 PDP ADOCK 05000409 J PNV

provisions will not be able to be incorporated into policies by the time required in the rule, in response to these consnents and related petitions for rulemaking, the Comission has pt 3 posed a revision of 10 CFR 50.54(w)(5)(1) extending the implementation schedule for 18 months (53 FR 36338, September 19,1988).

However, since this rulmaking action was not completed by October 4,1988, the Comission is issuing a temporary exenption from the requirements of 10 CFR 4.54(w)(5)(1) until 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.

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 requirerents of the regulations of [10 CFR Part 50], which are ... Authorized by law, will nct present an undue risk to the public health and safety, and are consistent dth the comen 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 reitef from the applicable regulation and the licensee has made good faith efforts to comply with the regulation."

Despite a good faith effort to comply with the provisions of the rule. I t

i insurers providing property damage insurance for nuclear power facilities and j j 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. l

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I As noted by the Connission in the Suppleinentary Information accompanying the proposed rule, there are several reast.is for concluding that del'aying 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 $180 million 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 75% 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 accidet:t giving rise to substantial insurance claims were to occur, NRC would be able to tske appropriate enforcement action to assure adequate cleanup to protect public heali,h and safety and the environment.

I IV.

Accordingly, the Commission has determined, pursuant to 10 CFR 50.12(a),

that (1) a temporary exemption as described in Section Ill is authorized by law, will not present an undue risk to the public health and safety, and is consistent with the connon defense and security and (2) in this case, special circumstances are present as described in Section !!!. Therefore, the

Commission hereby grants the following exemption

4-Dairy (land Power Cooperative is exempt from the requirerents of 10 CFR50.54 w)(

theimplementationdatespecifiedin10CFR50.54(w)(5)(1),butnotlater 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 Comission has determined that the granting of this exemption will not result in any significant environmental impact.

This exemption is effective upon issuance.

FOR THE NUCLEAR REGULt. TORY C0!94!SS10N

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Gary M. Holahan, Acting Director Division of Reactor Projects - !!!, !Y, Y and Special Projects Office of Nuclear Reactor Regulation Dated st Rockviile, Maryland fhis 18 day of Nov., 1988.

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?" 'i NUCLE AR REGULATORY COMMISSION 5 WASHING TON, D. C. 20646 kDocket e... No./ 50-409 Nove.-ber 18, 1988 Mr. James W. Taylor General Manager Dairyland power Cooperative 2615 East Avenue South La Crosse, Wisconsin 54602-0817

SUBJECT:

LA CROSSE BOILING WATER REACTOR (LACBWR) - TEMPORARY EXEMPTION FROM THE SCHEDULAR REQUIREMENTS OF THE PROPEP.'(Y INSURANCE RULE EFFECTIVE 0TOBER4,1988(10CFR50.54(w)(5)(1))

T' a Comission has issued the enclosed temporary exemption from the schedular requirements of the property insurance rule effective October 4 1988(10CFR 50.54(w)(5)(1)) for the La Crosse Boiling Water Reactor (LACBWRl. This part of the rule requires licensees to obtain insurance policies that prioritize insurance proceeds for stabilization and decontamination after an accident and provide for payment of proceeds to an independent trustee who would disburse funds for decontamination and cleanup before any other purpose.

The Comission has proposed a revision of 10 CFR 50.54(w)(5)(1) extendino the implementation schedule for 18 months (53 FR 36338, September 19,1988).

However, since this rulemaking action was not completed by '-tober 4,1988, the Consnission is issuing a temporary exemption from the requi ents of 10 CFR 50.54(w)(5)(1) until completion of the pending rulemaking e 4 tending 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.

The Comission, pursuant to 10 CFR 50.12(a), hereby grants a temporary exemption from the schedular requireinents of 10 CFR 50.54(w)(5)(1). This temporary exemption is valid untti April 1,1989 or until such time as action on this ruleraking is completed.

In pranting t'le exemption, the staff has determined that this action is authorized by aw ard will not endanger life or property or the corren defense and security and is otherwise in the public interest.

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Mr. James W. Taylor November 18, 1988 l A copy of this exemption is being filed with the Office of the Federal Register for putlication. ,

Sincerely, l

h Peter B. Erickson, Project Manager i Standardization and Non-Power Reactor Project Directorate i Division of Reactor Projects - !!!, IV, Y and Special Projects i Office of Nuclear Peactor Regulation i

Enclosure:

As stated l l

4 cc w/ enclosure:

See next page 1

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Mr. Jaras W. Taylor Docket No. 50 409 Dairyland Power Cooperative La Cresse Boiling Water Reactor cc:

Fritz Schubert, Esquire Staff Attorney Dairyland Power Cooperative 2615 East Avenue South La Crosse, Wisconsin 54602 Mr. Kevin P. Gallen Newman & Holtringer, P. C.

1615 L Street, NW Washington, D.C. 20036 Mr. John Parkyn, Plant Manager La Crosse Boiling Water Reactor Dairyland Power Cooperative P. O. Box 275 Genoa, Wisconsin 54632 U.S. Nuclear Regulatory Commission Resident Inspectors Office  :

Rural Route #1, Box 276 Genoa, Wisconsin 54632 l Town Chairman Town of Genoa Route 1 Genoa, Wisconsin 54632 Chairman, Public Service Commission <

of Wisconsin Hill Farns State Office Building P. O. Box 7854 i* Madison, Wisconsin 53707 jg f

Regional Administrator, Region !!!  ;

U.S. Nuclear Regulatory Commission <

799 Roosevelt Road Glen Ellyn, Illinois 60137 l

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UNITED STATES OF MERICA NUCLEAR REGULATORY COMMISSION in the matter of DAIRYLAND POWER COOPERATIVE Docket No. 50-409 LaReactor Crosse Boiling) Water (LACBWR EXEMPTION 1.

Dairyland Power Cooperative (the licensee) is the holder of Provisional License No. DPR-45, which authorizes possession but not operation of the La Cresse Boiling Water Reactor (LACBWR). The license provides, among other things, that it is subject to all rules, regulations, and orders of the Commission now or hereafter in effect.

The facility consists of a boiling water reactor at the licensee's site located in Vernon County, Wisconsin.

II.

On August 5, 1987, the NRC published in the FEDERAL REGISTER a final rule amending 10CFR50.54(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 poltetes that prioritized insurance proceeds for stabilization and decontamination after an accident and provided for payment of proceeds t., 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 whJ offer nuclear property ir.surance that, despite a good faith effort to obtain trustees required by the rule, the decontamination priority and trusteeship h S].lA f A S y y.

- I provisions will not be able to be incorporated into policies by the time required in the rule. In response to these connents and related petitions for rulemaking, i the Comission has proposed a revision of 10 CFR 50.54(w)(5)(1) extending the j implementationschedulefor18 months (53FR36338. September 19,1988). ,

However, since this rulemaking action was not completed by October 4,1988, the Comission is isseing a temporary exemption from the requirements of 10 CFR 50.54(w)(5)(1) until completion of the pending rulemaking extending the implementation date specified in 10 CFR 50.54(w)(5)(1), but not later than April 1, 1969. Upon completion of such rulemaking, the licensee shall cwply "

with the provisions of such rule.

Pursuant to 10'CFR 50.12. "The weission u.ay, upon application by any int 1 rested person or upon its own initiative, grant exemptions from the requirerents of the regulations of [10 CFR Part 50], which are ... Authorized by law, will not preseht an undue risk to the public health and safety, and are ,

P consistent with the connon defense and security." Further,Section50.12(a)(2) provides inter alta. "The Connission will not consider granting an exemption unless special circumstances are present. Special circumstances are present whenever ... (v) The exemption would provide only temporary relief frue the applicable regulation and the licensee has made good faith efforts to comply with the regulation." l Despite a goed faith effort to comply with the provisions of the rule, insurers providing property damage insurance for nuclear power facilities and licensees insured by such insurers have not been able to comply with the ,

regulation anti the exemption provides only temporary relief from the applicable regulation.

. s. .

. 1 i As noted by the Coesnission in the Supplementary Information accompanying the proposed rule, there are several reasons for concluding that del'aying for j a reasonable time the implementation of the stabilization and decontamination priority and trusteeship provisions of Section 50.54(w) will not adversely l affect protection of public health and aafety. First, during the period of

delay, the licensee will still be required to carry $180 million insurance, i 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 75% of the required c, overage is already prioritized under the decontamination liability and excess property insurance language of the Nuclear Electric Insurance i Limited-II policies. Finally, there is only an extremely small probability of I 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

{ al,le to take appropriate enforcement action to assure adequate clear.up to protect pubite health and safety and the environment.

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Accordingly, the Comission has determined, pursuant to 10 CFR 50.12(a),

that (1) a temporary exemption as described in Section !!! is authortred by law, will not present an undue risk to the public health and safety, and is consistent with the common defense and security and (2) in this case, special circumstances are present as described in Section !!!. Therefore, the Comission hereby grants the tellowing exemption:

. 4 Dairyland Power Cooperative is exempt from the requirerents of 10 CFR 50.54(w)(5)(1) until the completion of tN pendino rulemaking extending theimplementationdatespecifiedin10CFR50.54(w)(5)(1),butnotlater than April 1, 1989. Upon completion of such rulemking the licensee shall comply with the provisions of such rule.

Pursuant to 10 CFR 51.32, the Cterriission has deterritned that the granting of this exemption will not result in any significant environmental impact.

This exemption is effective upon issuance.

FOR THE N"~'. EAR REGULATORY COMMISSION W

N Gary H.' Holahan, Acting Director Division of Reactor Projects . Ill, IV, Y and Special Projects Office of Nuclear Reactor Regulation Dated at Rockville, Maryland this la day of t;ov., 1988.

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