ML20206K608
| ML20206K608 | |
| Person / Time | |
|---|---|
| Site: | Humboldt Bay |
| Issue date: | 11/18/1988 |
| From: | Holahan G Office of Nuclear Reactor Regulation |
| To: | PACIFIC GAS & ELECTRIC CO. |
| Shared Package | |
| ML20206K604 | List: |
| References | |
| NUDOCS 8811290464 | |
| Download: ML20206K608 (4) | |
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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In thk t1atter of PACIFIC CAS AND ELECTRIC COMPANY Docket No. 50-133 Humboldt Bay Power Plant Unit No. 3 EXEMPTION 1.
Facific Gas and Electric Comte.1y (the licensee) is the holder of Facility License No. DPR 7, which authorizer, possession but not ope ation of the Humboldt Bay Power Plant, Unit No. 3. The license provides, ainong other things, that it is subject to all rules, regulations, and orders of the Comission now or hereafter in effect.
The facility consists of a boiling water reacter at the licensee's site located in Hurboldt County, California.
On August 5, 1987, the hRC published in the FEDERAL RECISTER a final rule avending 10 CFR 50.54(w). The rule increased the arount of on-site property dar, age insurance required to be carried by hRC'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 payrent of proceeds to an independent trustee who would disburse funds for decontanination and cleanup before any other purpose.
Subsepent to publication of the rule, the NRC has been inforined by insurers who offer nuclear property insurance that, despite a 9000 faith effort to obtain trustees required t) the rule, the decor.tanination priority and trusteeship j 6911290464 0C1110 PDR ADOCK 0D000133 il-
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provisions will not be able to be incorporated into policies by the time required in the rule. In response to these coscients and related petitions for rulemaking, ,
the Cormission has proposed a revision of 10 CFR 50.54(w)(5)(1) extending the implementation schedule for 18 months (53 FR 36338, Septesber 19,1988).
However, since this rulenaking action was not completed by October 4,1988, the Comission is issuing a temporary exemption froa the requirements of 10 CFR !
50.54(w)(5)(1) until completion of the pending rulemaking extending the !
implementationdatespecifiedin10CFR50.541w)(5)(1),butnotlaterthan April 1, 1989. Upon completion of such ruleraking, the Itcensee shall comply
- with the provisiens of such rule.
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111. I Pursuant to 10 CFR 50.12. "The Comission my, upon application by any ,
interested person or upon its own initiative, grant exemptions from the e requirements of the regulations of [10 CFR Part 50), which are ... Authorized k 1
by law, will not present an undue risk to the public health and safety, and are j consistent with the cossnon defense and security." Further,Section50.12(a)(2) L j provides inter alia, "The Comission will not consider granting an exemption i unless special circumstances are present. Special circumstances ate present j j whenaver ... (v) The exemption would provide only terporary relief from the I applicable regulation and the licensee has rade good faith efforts to comply j with the regulation." (
D1 spite a good faith effort to comply with the provisions of the rule, insurers providing property damage insurance for nuclear power facilities and l l licensees insured by such insurers have not been sble to corply with the <
i j regulation end tre exerption provides only terporary relief frem the applicable regulat4n.
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i As noted by the Commission in the Supplementary Information accompanying l
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the proposed rule, there are several reasons for concluding that delaying for !
I j a reasonable time the implementation of the stabilization and decontamination
- priority and trusteeship provisions of Section 50.54(w) will not adversely j affect protection of pubile health (nd safety. First, during the period of
) delay, the licensee will still be requirad to carry $100 million insurance.
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t j This is a substantial amount of coverage that provides a significant financial l
cushion to Itcensees to decontaminate and clean up after an accident even !
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I without the prioritiration and trusteeship provisions. Secoad, nearly 751 of 7 i L j the required coverage is already pric,ritized under the decontamination liability I i
j and excess prcperty insurance language of the Nuclear Electric Insurance e
j Limited-!! policies. Finally, there is only an extremely small prooability of l a serious accident occurring during the exemption period. Even if a serious l accident giving rise tu substantial insurance claims were to occur, NRC would be
[ able to take appropriate enforcerent action to assure adequate cleanup to protect j public health and safety and the environmet.t. l I f
) !Y.
1 Accordingly,theCommissionhasdetermined,pursuantto10CFR50.12(a),
j that (1) a teeporary exempt'on as described in Section !!! is authorized by s
) law, will not present an undue risk to the public health and safety, and is 1
consistentwiththecosmondefenseandsecurityand(2) int ~ntscase,special circumstances are present as described in Section !!!. Therefore, the Cosmission hereby grants the following exemption: l l
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Pacific Gas and Electric Company is exempt from the tr'pirements of 10 CFR l 50.54(w)(5)(1) until the completion of tie pending rulemaking extending I theimplementationdatespecifiedin10CFR50.54(w);5)(1),but.13tlater i than April 1, 1989. Upon completion of such ruleesttr.g the 11ccr.see shall comply with the provisions of such rule.
Pursuant to 10 CFR 51.32, the Comission has determined that the granting of this exenption will not result in any significant env!ron ental impact.
This exception is effective upon issuance.
FOR THE NUCLEAR REGULATORY COMMISSION
& yh--
Gary M ola n Acting Director Division of Reactor Projects - !!!, IV, !
V and Special Prbjects Office of Nuclear Reactor Regulation ;
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Dated at Anckville, Maryland :
this 18thday of Nov., 1988. }
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u..\ UNITE 0 8TATEs NUCLEAR REGULATORY COMMIS$10N usniNotoN. o. c.aossa b
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k.....,/ Move.-ber 16, 1988 Docket No. 50-133 Mr. Jares D. Shiffer Vice President Nuclear Pot er Generation Pacific Gas and Electric (ompany 77 Beate Street San Francisco, California 94106
Dear Mr. Shiffer:
i SUEJECT: HU"20 LOT EAY POWER PLANT, UNIT NO. 3 TEMPORARY EXEMPTION FROM THE i SCHEDULAR REQUIREMENTS 0F THE PROPERTY INSURANCE RULF. EFFECT!VE i OCTOBER 4,1988(10CFR50.54(w)(5)(1))
The Comission has issued the enclosed temporary exemption from thf schedular requirements of the property insurance rule effective October 4, ICS8 (10 CFR 50.54(w)(5)(1)) for the Humboldt Bay Power Plant, Unit. No. 3. 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.
TheCommissionhasproposedarevisionof10CFR50.54(w)(5)(1) the implementation schedule for 18 months (53 F4 36338, September 19,extending). 1988 However, since this rulemaking action was not et plated by October 4,1988, the Comission is issuing a temporary exeeption fror' the requirements of 10 CFR 50.54(w)(5)(1) until completion of the pending rulemaking exiending the impiementation date specified in 10 CFR 50.54,w)(5)(1), but not later than April 1,1989. Upon completion of such rt;,ler.aking, the licensee shall comply with the provisions of suen rule.
hereby grants a teeporary Therommission,pursuantto10CFR50.12(a)f10CFR50.F4(w)(5)(1).
exemption from the schedular requirenents o This temporary exemption is valid until April 1,1989 or until such time as action on this ruler.aking is corpleted.
In granting the exer.ption, the staff has detere:ined that this action is authorized by law and will not endanger life or property or the cosenon defense and security ar.d is otherwise in the public interest.
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. Mr. James'D. Shiffer >2- November 18, 1988 A copy of this exemption is being filed with the Office of the Federal P,egister for publication.
Sincerely, b
Peter 3. Erickson, Project Manager Standardization and Non-Power Reactor Project Directorate Division of Reactor Projects - III, IV, Y and Special Projects Office of Nuclear Reactor Regulation
Enclosure:
As stated cc w/ enclosure:
. See next page l
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Mr. J.' D. Shiffer Humboldt Bay Nuclear Power Plant Pacific Gas and Electric Company Docket No. 50-133 cc:
Richard.F. Locke Mr. Joseph 0. Ward, Chief Pacific Gas and Electric Company Radiological Health Branch Law Department State Department of Health Services Post Office Box 7442 714 P Street, Office Bldg. #13 San Francisco, California 94120 Sacramento, California 958I4 Chairman Director Humboldt County Board of Supervisors Energy Facilities Siting Division County Courthouse Energy Resources Conservation &
825 Fifth Street Development Commission Eureka, California 95501 1516 9th Street Sacramento, California 95814 Linda J. Brown, Esquire Gretchen Dumas, Esquire Donohew, Jones, Brown & Clifford Public Utilities Commission 100 Van Ness Avenue, 19 Floor of the State of California San Francisco, California 94102 5066 State Building San Francisco, California 94102 U.S. Environmental Protection Agency Public Affairs Officer Region IX Office Region Y ATTN: Regional Radiation Representative U.S. Nuclear Regulatory Commission 215 Freemont Street 1450 Maria Lane San Francisco, California 94105 Walnut Creek, California 94596 Regional Administrator Office of Intergovernmental Nuclear Regulatory Commission, Region V Management 1450 tiaria Lane, Suite 210 State of California Walnut Creek, California 94596 1400 10th Street, Room 108 Sacramento, California 95814 Michael R. She-wood, Esquire Sierra Club Legal Defense Fund, Inc.
2044 Fillmore Street San Francisco, California 9411C Dr. Perry Aminoto Department of Conservation Division of Mines & Geology 1416 9th Street, Room 1341 Sacramento, California 95814
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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the matter of PACIFIC GAS AND ELECTRIC COMPANY Docket No. 50-133 Humtoldt Bay Power Plant Unit No. 3 .
EXEMPTION I.
Pacific Gas and Electric Company (the licensee) is the holder of Facility License No. DPR-7, which authorues possession but not operation of the Humboldt Bay Power Plant, Unit No. 3. 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 Humboldt County, California.
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 payrent of proceeds to an independent trustee who would disbuise funds for decontamination and cleanup before any other purpose.
Subsequent to publication of the rule, the NRC has been informed 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 ShUkhYY Nf'
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provisions will .ot be able to be incorporated into policies by the time required in the rule. In response to these coments and related petitions for rulemaking, the Conctssion has proposed 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 rulemaking action was not completed by October 4,1988, the Comission is issuing a temporary exemption from the requirements of 10 CFR 50.54(w)(5)(1) until completion of the pending rulemaking extending the implementationdatespecifiedin10CFR50.54(w)(5)(1),butnotlaterthan 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 requirements 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, ano are consistent with the comon defense and security." Further, Section 50.12(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 exempt'.1 would provide only temporary relief 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, insurers providing property damage insurance for nuclear power facilities and licensees insured by such insurers have not been able to corply with the regulation and the exemption provides only temporary relief from the applicable regulatior,.
As noted by the Commission in the Supplementary Inforntion accompanying the proposed rule, there are several reasons for concluding t'iat delaying for a reasonable time the in lementation of the stabilization and decoatsmination priority and trusteer ~ frovisions 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 $100 million insurance,.
This is a substantial amount of coverage that provides a significant financial cushion to licensets 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 a:cident occurring during the exemption period. Even if a serious ;
accident giving rise to substantial insurance claims were to occur, NRC would be able to take appropriate enforcement actien to assure adequate cleanup to protect :
public health and safety and the environmeit.
f l-IV.
Accordingly, the Comission has deternined, pursuant to 10 CFR 50.12(a),
that (1) a temporary exemption as described in Section III is authorized 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 Comission hereby grants the following exemption:
. Pacific Gas and Electric Company is exemat from the requirements of 10 CFR 50.54(w)(5)(i) until the completion of t te 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 Comission has determined that the granting of this exemption will not result in any significant environmental impact.
'fhis exemption is effective upon issuance.
FOR THE NUCLEAR REGULATORY COMMISSION
.>8} N Gary H. Holaffan, Acting Director Division of Reactor Projects - !!!, IV, Y and Special Projects Office of Nuclear Reactor Regulation Dated at Rockville, Maryland this isthday of Nov., 1988.