ML20206K557

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

ML20206K557
Person / Time
Site:	Fermi
Issue date:	11/18/1988
From:	Holahan G Office of Nuclear Reactor Regulation
To:	DETROIT EDISON CO.
Shared Package
ML20206K549	List: ML20206K546 ML20206K557
References
NUDOCS 8811290449
Download: ML20206K557 (4)

Text

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UNITED STATES OF AMERICA i NUCLEAR REGULATORY COMMISSION  ;

I In the matter of )

DETROIT EDIS0N COMPANY Docket No. 50-16 i h)i Enrico Fermi Atomic Power Plant h Unit I h EXEMPT!0_N f  !. ,

Detroit Edison Company (the licensee) is the holGr of Facility Operating License No. DPR-9, which authorizes possession but not operation of the Enrice i Fermi At W e Power Plant, Unit No. 1. The license provides, among other things, that it is subject to all rules, regulations, and orders of the  ;

Y commission iow ar hereafter in effect.

The fa: ( ity consists of a sodiuu cooled reactor at the licensee's site j located in .tonroe County, Michigan.

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.l On August 5, 1987, the hRC published in the FEDERAL REGISTER a final rule !i l

i amending 10CFR50.54(w). The rule increased the amount of on-site property l 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 l

tt,at prioritize.d insurar.ce proceeds fer stabilization and decontamination after l an accident and provided for payment of proceeds to an indepeMent trustee who f would disburse funds for decentamination and cleanup before any other purpose, j i Subsequent to publication of the rule, the NRC has been informeri by insurers who f

< t 4 offer nuclear property insurance that, despite a good faith effort to obtain i j trustees required by the rule, the decentaminatien priority and trusteeship i

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provisions will not be able to be incorporated into policies by the time required l in the rule. In response to these cossents and related petitions for rulemaking, i theCoenissionhasproposedarevisionof10CFR50.54(w)(5)(1)extendingthe 1pplementationschedulefor18 months (53FR36338, September 19,1988).  !

I However, since this rulemaking action was not completed by October 4, 1968, j the Comission is issuing a temporary exemption from the requiremer,ts of 10 CFR 50.54(w)(5)(1) until completion of the pending rulemaking extendirg the  !

l implementation date specified in 10 CFR 50.54(w)(5)(1), but not liter than  !

April 1, 1989. Upon completion of such rulemaking, the licensee shall com> ply with the provisions of such rule. (

Pursuant to 10 CFR 50.12, "The Cosenission may, upor application by any r interested persoc or upon its own initiative, grant exemptions from the  ;

requirerentsofthuregulationsof[10CFRPart50],whichare... Authorized by law, will not present an undue risk to the public health and safety, and are s consistent with the coemon defense and security." Further,Section50.12(a)(2)  !

1 l provides inter alta, 'The Commission will not consider granting an exemption l l

unless special circumstances are present. Special circumstances are present i

) whenever ... (v) The exemption would provide only tempore.y relief from the i applicable regulation and the licensee has made good faith effo-ts to comply l I with the regulation.' l t

Despite a good faith effort to comply with the provisions of the rule, insurers providing property darage insurance for nuclear power facilities and

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licensees insured by such insurers have not been able to cornply with the q regulation and the exemption reovides only temporary relief from the appifcable replation.

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3 As noted by the Commission in the Supplementary Information accomp.enying  ;

the proposed rule, there are several reasons for concluding that delaying for l a reasonable time the implementation of the stabilization and decontamination j 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 i for the reactor station site. 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% nf the required coverage is diready prioritized  !

under the decontar,ination liability and excess property insurance language of  :

the Nuclear Electric Insurance L Nited.!! polia.ies. Fina11,v, there is only an extremely srall probability of a serious accident occurring during the exemption l period. iven if a serious accident giving rise to substantial insurance claims ,

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were to occur, hRC would be able to take appropriate enforcement action to a

l assure adequate cleanup to protect public health and safety and the environment.  !

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IV. (

l Accordingly,theCommissionhasdetermined,persuantto10CFR50.12(a), )

that(1)atemporaryexemptionasdescribedinSection!!!isauthorizedby

!i law, will not present an undue risk to the public health and safety, and is t i

consistentwiththecormondefenseandsecurityand(2)inthiscase,special circumstances are present as described in Section !!!. Therefore, the 1

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• Ccmission hereby grants the following exemption: j

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Detroit Edison Company is exempt from the requirerents of 10 CFR 50.54(w)(5)(1) until the completion of the pending rt!1eraking extendit'.g the implenentatier, date specified in 10 CFR 50.54(w)(5)(1), but not k ter than April 1, 1989, Upon completion of such rulemaking the licensee shall (j comply with the provisions of such rule.

Pursuent to 10 CFR 51.32, the Comission has detomined tLat the granting of this exception will not result in any significant environmental frpert-This exenption is effective upon issuance.

FOR THE NUCLEAR REGULATORY COVNISSION -

yay lNl "

Gary H. Holahan, Acting Director Division of Reacter Projects . !!!, !Y,  %

V and Special P.ojects Office of ?:uclear Reactor Regulation Dated at Rockville, Maryland '

this le day of r;ov., 19f.8.

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