ML20206L608

Exemption from Schedular Requirements of 10CFR50.54(w) Re Property Insurance Required to Be Carried by Reactor Licensees

ML20206L608
Person / Time
Site:	Peach Bottom
Issue date:	11/18/1988
From:	Holahan G Office of Nuclear Reactor Regulation
To:	PECO ENERGY CO., (FORMERLY PHILADELPHIA ELECTRIC
Shared Package
ML20206L606	List: ML20206L600 ML20206L608
References
NUDOCS 8811300114
Download: ML20206L608 (4)

Text

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t UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the matter of PHILADELPHIA ELECTRIC COMPNAY Docket No. 50-171 Peach Bottom Atonic Power Station Unit 1 EXEMPTig 1.

Philadelphia Electric Company (the licensee) is the holder cf Provisional Operating License No. DPR-12, which authorizes possession but not operation of the Peach Ecttom Atomic Power Station, Unit 1. The license provides, among ot'her things, that it is subjert to all rules, regulations, and orders of the  !

Coenission now or herehfter in effect.  :

i The facility consists of a high-temperature, gas. cooled demonstration power reactor at the licensee's site located in Yor t County, Pennsylvania. ,

II. j On August 5, 1987, the NRC published in the FEDERAL RET.' STER 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. T.5e rule also required these licensees to obtain by October 4,1988 insurance policies  :

i that prioritized insurance proceeds for stabilization and decontaninstion a'ter  ;

an accident and provided for payment of proceeds to an independent trustee who j would disburse funds for decontamination and cleanup before ato other pur;ose. l Subsequent to publication of the rule, the NRC has been informed by insurers who offer rcclear prcperty insurar.ce that, despite a good faith effort to obtain a i

trustees required by the rule, the decontatination priority and trusteeship l

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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 comments and related petit' ' /k -ulemaking, the Comission has proposed a revision of 10 CFR 50.54(w)(5)(1) et V 3 the implementation schedule for 18 mor:ths (53 FR 36338, September 19, " ,J .

However, since this rulemaking action was not completed by October 4,1988, the Commission is issuing a temporary exemption from the requirementr of 10 CFR 50.54(w)(5)(1) until completion of the pending ruleraking extending the implementation date specified in 10 CFR 50.54(w)(5)h), but not later than April 1, 1989. Upon completion of such rulemaking, the licensee shall corply 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, and are consistent with the comon defense and security." Further, Section 50.12(a)(2) provides inter a_11_a, "The Commission will not consider granting an exemption unless special circumstances are present. Special circumstances are present whenever ... (v) The exemption would provide only temporary relief from the applicable regulation and the licensee has made good faith efforts to comply with the regulation."

l Despite a good faith effort to comply with the provisions of the rule, I

o insurers pr.ciding property damage insurance for nuclear power facilities and licensees insured by such insurers have not been able to comply with the reguluion and the exemption provides only temporary relief from the applicable regulation.

o t 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 adversely affect protection of public he'.lth and safety. First, during the period of delay, the licensee will still be required to carry $1.06 billion insurance for the reactor station site. This is a abstantial 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 l 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 sarious accident giving rise to substantial insurance claims were to occur, NRC would be able to take appropriate enforcement action to assure adequate cleanup to protect public health and safety and the envircnment.

!Y.

Accordingly, the Comission has determined, 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 consistent with the comon defense and security and (2) in this case, special I

circumstances are present as described in Section III. Therefore, the Cornission hereby grants the following exemption:

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o Philadelphia Electric Company is exempt from the requirements of 10 CFR 50.54(w)(5)(1) until the completion of the pending rulemaking extending 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 significar. environmental impact.

This exemption is effective upea issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

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Gary M. Holahan, Acting Director Division of Reactor Projects - III, IV, V and Special Projects Office of Nuclear Reactor Regulation Dated at Rockville, Maryland this 18 day of Nov., 1988.

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