ML20207J425
| ML20207J425 | |
| Person / Time | |
|---|---|
| Issue date: | 08/26/1988 |
| From: | Chilk S NRC OFFICE OF THE SECRETARY (SECY) |
| To: | Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| Shared Package | |
| ML19321B636 | List: |
| References | |
| FRN-53FR36338, RULE-PR-50 AC94-1-02, AC94-1-2, NUDOCS 8809130357 | |
| Download: ML20207J425 (4) | |
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'o UNITED $TATES ACTION - Murley, NRR l
NUCLE AR REGULATORY COMMISSION
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I w AsHIN GT ON. D.C. 20665 l
Taylor
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August 26, 1988 Hoyle vRWood, NRR crectorTH:
85helton, ARM stcmatany JBeeson, ARM Jordan, AE00 Scroggins, ARM MEMORANDUM FOR:
Victor Stello, Jr.
Executive Director for Operations FROM:
J 1 J. Chilk, Secretary
SUBJECT:
SECY-88-230 - PROPOSED RULE, 10 CFR PART 50, "NUCLEAR PROPERTY INSURANCE"
-- EXTENSION OF TIME TO IMPLEMENT DECONTAMINATION PRIORITY AND TRUSTEESHIP PROVISIONS OF SEC. 50. 54 (w) (5) (1)
This is to advise you that the Commission has not objected to publication of the proposed rule change.
Accordingly, you may proceed with publication.
cc:
Chairman Zach Commissioner Roberts Commissioner Carr Commissioner Rogers OGC Retd Off, ED0 e,tg 6' 2 l. I' l' time /C.'3 6 t
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e 36338 Federal RegistIt / Vol. 53, No.181 / Monday. September 19, 1988 / Proposed Rules decontaminate the reactor suff ciently to stabihzation and decontamination an accident and then for permit the hecnsee either to resume prianty and trusteeship provisions ofits decontamination of the facihty bcfo e operation or to undertake measures property insurance retu!ations an> other purpose. The rule abo leadmg to decommissioning of the contamed in 10 CR 50 54f w)(5)fi) to required that any insurance ptcceeA be reactor. in a manner that is consistent change the effective date from October paid to a trustee, who would be required with the Commission's occupational 4.1938 to Apnl 4.1990. nis delay in to disburse funds accordeg to the exposure hmits in 10 CR Part 20 The iniplementation is necesury because decontaminatiot, prionly.1 he Director shall artrose or disapprose, for the insurers that offer property Commission believed that these stated reasons, the hcensee's estimate of insurance for power reactors hase prouslens would effectise!) pro'ect espenditures for such operat ons 5xh informed the Commission that they will ir.surance proceeds from claims by order me) not be effectn e for more than be unable to include the stabihrat on bondholders or their representatn es or, one > car. at whah time it may be and decontamination pnonty and m the event oflicensee default or renewed Esth subsequent renewal trusteeship prosisions in their insurance bankruptcy, by other creditors. The order,ifimposed may be effectne for policies w1 thin the time currently Commission based this belief on not more than sta months.
provided by 10 CFR 50 54(w).
comments submitted by the Association (n)Of the balance of the proceeds of Concurrently, the estension of the of the Bar of the City of New York the required insurance not already effective date of the rule will allow the (Comment number 12 in response to the espended te place the reactor in a safe NRC to consider recently submitted 1964 proposed rule (49 FR 44G451).
and stable condition pursuant to petitions for rulemaking that propose Subsequent to pubhcation of the final paragraph (w)(4)(i) of tbs subsectaon. an changes to improve the efheacy of the rule, the NRC has been informed, both amount sufhcient to coser the espenses NRC's stabihastion and orally and m writing, that the of complet2cn of those decontammation decontamination prionty and trusteeship prosisions and. to a lesser operations that are the sabject of the trusteeship prosisions.
estent, the stabibr.ation and Direciar's order shall be dedicated to catts. ne comment pened espires decontamination priority proustons of such use. presided that, upon October 19.1988 Comments received the rule are sufficiently comples and certincation to the Director of the after tha date w,11 be con:Hered if it is problemetsc that the insurers wiu be amounts expended preuously and from practical to do so, but the Commission is unable to incorporate these prousions time to time for stabbrat:on and able to assure consideration only for in their pohcies within the tune decontamination and upon further comments received on or before this mandated by the rule. See the followmg:
certihcation to the Dtrector as to the date.
(1) The letter dated lanuary 27.1988 to safhciency of the dedicated amoant ADomessts: Submit wTitten ccounents Dr Thomas E. Murley from Peter D.
remaining. pohcies ofinsurance may to the Secretary.U.S Nuclear Lederer, Baker & McKenzie. counsel to prnside for payment to the bcenser or Regulator) Commission. Washintrion.
Nuclear Mutual umited (NML) and other loss pa>ees of amounts not so DC 20555 A1TN. Docketmg and Sersice Nuclear Electnc Insurance brnited U dedicated, and the bcensee may proceed Branch (NEIL-II): (2) the letter dated lariuar) 29.
to use tn parallel tand not in preference liand deinered commente to.11555 198a to Robert S. Wood from peter D.
thereto) any insurance proceeds not so Rockville Pike Rockulle. MD between Lederer, Baker & McKenzie at p. 5. (3) dedicated for other purposes 7.30 a m. and 415 p m. (Telephor,e (301)
Petition for Rufemaking (PRM-5A51)
(5)ne stabbsation and 492-19ro) dated lune 51sne from unda S. Stem, d: contamination requiremente set forth Copies of comments recened may be Steptoe & Johnson. counsel to American in paragraph (w)(4) of tbs section must esamined at 'he NRC Pubhc Document Nuclear Insurers and MAERP cpply umformly to au insurance pobcies Room 2120 L Street NW, Wasbngton, Reins ura nce Anociation ( AN1/MAERP).
required under paragraph (w)(2) of tbs DC at p. y. (4) petit 6on for Rulemakins etction-(PRM-6451 A) dated June 21,1sne from Pon Funtwem isseonesafices coerf acTt l B. Knotts. lr thhop. Cook. Purcell a Dated at Roch11e. MD. this 1ath day of Robert S. Wood. Office of Nuclear Reynolds, connut to the Edison Electric 5'P'*I'*r tus Reactor Regulation. U S Nuclear Institute, the Nuclear Utihty For the Nudear Rogdatory Cournasesoa Regulatory Cornmission. Washmston, Management and Resoartes Council and hievel). N ib DC 205% Telephone (301) 492-12 iso.
severet power plant l6censees, at pp. to-Secrewy of LAe Cosumessaia gyp,useattTAmv esepeasAfseas:
11: and (5) Petition for Rulemaking (fil Duc ash 21:47 Wed ILitWbst a 45 sm)
(PRM-8%515) andated, from Peter D.
auses ccass rows I. Backgroushd (AderTr, Baker & McKengje, coungel to On August S.1987, the Commission NML and NEIIAl. Interested persons 10 CFR Port 50 pubbshed in the Federal Regiotee (52 FR may asamine and copy for a fee the 2a963) a feel rule which amended to above letters and petitions for E nknWon M Time for N CR 50 54(w). ne rule increased the rulemaking at the NRC Pubhc Document implementation of the amount of on site property dames, Room.1717 H Streets NW, Weshinston.
DeconumWuon Prwny and insurance that commercial power DC. Smgle copies of the letters may be Truskednap ProtMone M Prope"I react r been*ees are required to carry obtained from Rotert S Wood. Office of ance ements for their feelht es. De purpose of the Nuclear Reactor Regulation. U.S rule was to prov de en suured source of Nuclear Regulatory Ccmmboion.
Assoucv: Nuclear Regulatory funda for one-eite decontactination and Washmaton. DC 20555. Telephone (M)
Commission.
cleanup of a power reactoe facihty after 492-1280.
Actioat: Preposed rule.
en acodent. In that regard. the August De insurers and their counsel preside 1987 amendments required beeneers to two reasons why thep are unable to ousassaary: ne Nuclear Regulatory obtain insurance policies in whlch any comply with the date epecined tn the Commuasion proposee to amend the proceeds froen such pohcses are to be rmal rule for addma the stabDtzat on implementation schedule foe the used for etabnineten of a reactor after and decontamination priority and
~
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Federal R:gister / Vol. 53. No.181 / M:ndry. Sopl:mber 19. 1988 / Pror osed Rules 36339 trusteeship prosisjons. First. with under rnanasement-in other w ords. it w ould on their merits the issues raised in the respect to the truereship provnion.
N rner'I) e conduit petitions for rulemaking counsel for insurtre base aissured the A second reason insurers gise for The NRC beheves for ses eral revsons NRC staff that they hase made a good.
la ing unable to compl) with the that delaying for a reasonable time the inth effort to obtain trustees but base effectne date of the rule is essentially implementation of the stabihration and been unsuccessful. They beliese the logistical. As a contract. an insurance decontamination prionty and retson for theirlack of success to the pohcy can only be modified with the trusteeship provisions of I 50 54tw ) will pote ntal trustees' confhets of interest consent of all affected parties Because not adversely affect protection of pubhc cnd reluctance to assume, on the one the Commission's mandated health and safety. First, the hcensee sti!!
hand respons.bihty for disbursms stabilization and decontaminahon will be rtquired to carry $106 buhon potent.all) o er $1 bilhon in insurant e pnonty and trusteeship prousions insurance.'!his is a substantial amoat proceeds and the resulting espo6ure to adversely affect the current nghts under of coserage that provides a signif cant ponible htigation for wrongful the policy of the bondholders' truster. It financial cushton to bcensees to disbursement. w hile, on the other hand is unhkely that policies could be legally decontaminate and cleanup after an beira ehgible for only rnodest fees for changed until the end of the policy year.
accident es en without pnoritization and this sen ice. The petihon for rulernaking NEll pohcies renew es er) Nos ember 15.
trusteer, hip provisions Second. to obta:n submitted by hit. Knotts ind.cate: that.
NNil pohcies estry Aprill, and AN!/
this les el and more, most hce nset s can) htAERP pohcia s throughout the ) ear.
the full $?50 milhon courage cf fvred b)
An montunon that unn as bond tr si,,
NEIL-Il Thus. a significant percerit.se for tb secunbes of any Ocensee as to mh.ch
- 11. NRC Response of the required insurance already is it m.sbi te asked to sena as independent When the NRC selected the eficctive pnont: red under the decontaminatwn trustee under th rule would hase e cor.D o of miernt such a conthct mostd date of October 4,19a8. It behes ed that habihty and escess property msarance undoutiedly be unaccertable to tnsurm one near plus 80 da)s from pubhcation language of the NEIL-il pohcies Fma!!y.
becnms and trustus shke More brosiy.
of the rule would gne insurers sufficient there is only an estremely small utibon and potennel tn,stees may well time to incorporate appropnate probabihty of a senous accident conclude that such a trustee would ha$e en implementing language in their pohcies occumrg danrg the period of delay.
montunonal confLct if it on es n bond licwewr gnen the complesity of the Esen if a serious accident 'amI nse to trustee mnh rupect to the mdenture of eq changes' the unenpected (b) the substantialinsurance claims were to tutty Thus..housh it obuous'y w ould be insurers) addition of the trusteeship occur, NRC would be able to take des.rable to hase a omste form of trust and a pmusions of the rule, and the timma of appropriate enforcement action to s.nste trusto. no maior corporate trus'n ha the rule a pubhcation shortly after the assure adequate cleanup to protect bon identMed that does not also sene a, bondholders' trus'ee under at init one NEIL and NhtL armuel rneetmgs at pubhc health and safety.
nuclutunhty'sindene m which changes must be approsed.
For the foregoing reasons. the loi es trnportantly. any maior corporate insurers cannot make changes within Cerr mission con'ludes that an 18 mor.th trus'n mould ment to minmse os esposare the time required htoreover, insurers dela) (from October 4.1988 to April 4.
to cla,ms Thus. wural exh terrpan'n hne hase informally told staff that the 19%) m the implementation schedule of consed. that, enn tf they mere o$ermise p.ocess of getting approvals from state N b**** M*D intmsted they would ins.st on hauna on!)
iasurance reFulators for pohcy language trusteeships prousions la }ushfied and mmistenal functions. es in the cue undet change:, for both deconta'nination and pmp ses to amend 10 CFR 50 54(w)l5)N nme state environnseniallam e that emrk, trusteeship provmons w til also cause suordingly.
pref.nded trus:e for enstronmental cleanup delaE
( nd the trustee makes payments only upon she NRC acknowledges that there Ill.Ernironmentallmpact Categorical c:rt&cabon by the state agency haur.s appear to be senous practical Eulusion pad.cuent b en m1th ury hmned d.scretion.
difficulties in implementing the The NRC has determined that this tn, sine may meu perone e miduaf'ennst decontammahon prionty and b:bihty Therefm. sah e in,etu mou!J suk trusteeship prosisions of the rule by the pr posed rule constitutes a mmor correctae amendment that does not indernmhcat on, and peot and) mould act t e date mandated in the rule The NRC also seusf.ed with 6ndemnikation by the r, cognizes that it has no regulatory substanhally modif) eushng regulahor.s Lc:nons thei had the accident in add.non.
authonty oser insurers and therefore and. therefore,is the type of schon sech a trustee would m ent to base erg htable cannot requits that insurance haung el gible for cateponcal culusion under insurance to prende defense and inde.mruty specific terms and conditions be made to CFR 51 :2(c)l:1 Accordirgly, neither los claims arisms out ofits dutas as trus'n.
asatlable if insurers choose not to offer en enumnmentalimpact statement nor as mett as directors and ofkers' habihty and an enuronmental assessment is it. APatt from the prectical problems m indemmty knsurance coseesse, mhnh may the implemenung schedule, the require 3 ru t4 unandable nnauy thm 6e bitte mcentne for en, sine Comminion also notes the under!)mg IV. Paperwork Reduction Act Statement to seek the specal trusin etae in add,non to substantive questions concerning the tv d sincentne of kn6ns to f*so em efficacy of the trusteeship proustons of This proposed rule cortains no attractne botnen tcaun of confbcts of to CFR 50 54(w) m accomphshing its informahon collection requirements and.
Snierest. we hate teen mLrmed that the stated objectneWhamely, safeguarding therefore. La not subiect to the trdibemal hnencial ancent.us for trus' insurance proceeds so that they wtil b, requirements of the Paperwork m:nasment mouM to 14chms Normally. the used to clean up and decontammate Reduction Act of 1960 (44 U S C 3501 ei trustee gesina en opportun4y to esm a fee loc after a reactor accident and thus Protect seg )
enanassna the trust nuis e fee ofter the health and safety of the pubhc. A V. Regulator) Analysis musu ed by b ulue W those nuts nere sufficient estension of time allowed for r
wowM be no sah otsuttuni y under the t
cnansement enusioned t y the rule ne tn,st implementmg these prousions not,e On August 5.198?. the NRC pub l.sh ed would be "dir, that la en unknded standby would gia Wurers adequate timr 1 the Federal Register a fmal ru!c erursement ht may nur te end amend their pohcies,if it ultimaw tra 10 m 50 54 (m) The rule htertour, own when fundwi thm m ouW te proses necessary to do so, but,
- tae amont of on site propert) only e shoe 1 ttme when b funds are actuuy also allow the Commission to n a wrence required to be carried i
7I 36340 reder:I Register / Vol. 53. No.181 / Monday. September 19, 1988 / Propost d Rules by NRC's pow er rc.ctor 1. censers. The Usl of Subjects in 10 CM Psrt 50 (i) De incorporated in onsite property rule also required these bcensces to obtain b) October 4.1938 mourance Antitrust. Cla ssified information. Fire damage insurance pohcies for nuclear pohcin that prionured insurant e presention, incorporation by reference.
p WMplants not latn 6an Apnl 4.1WO prc4ceds for stabifiration and intergm eenmental rela tions. Nuclea r
""d decontamir.abon after an accident and powerplants and reactors. Penalty, D*4d 8' RD presided for pannent of proceeds to an Radiation protection. Reactor sitmg
'I 5'ptembo m'hd!' M)I*"d th 8 ?'h d*Y tr,drpendent trustee who would disburse cntena. Reporung and recordkeepmg a
requirements.
For the Nuclear Kerulatory Cemension funda for decortaintnation and cleanup for the reasons set out in the Victor 5tello. Ir.,
before any other purpose Subsequent to pubhcation of the rule. the NRC has preamble and under the authority of the Eierere Dvectorfor Operate rieen infortned by insurers mho offer Atemic Enemy Act of1954 eS amended. [FR Doc. 8A212A8 Tiled e-M ea 6 45.*n) the Energy Reorganirahor Act of19'4.
sumo cool tsoo4*-w l
nuclear property insurante that th' as amended, and 5 U.S C. '553. the NRC decontammation prictity and l
trusteeship provisions will not be able to is proposing to adopt the following
- nd*'"' ' I0 CR Part 50' be incorporated into the policies by the DEPARTMENT OF TRANSPORTATION tirae requ. red in the rule In petitions for PART So-DOMESTIC UCENSING OF rulem.imt insurers representatives PRODUCT 60N AND UTILt2AT60N Federal Aviation Administration farther stve that the trusteesh'P FACILITIES provisions may actaally hne an effect 14 CFR Part 39 counter to their intended purpose by
- 1. The authonry c.itauen for Part 50 delaying the claims pay ment and thus contmues to read as follows:
pcssibly the cleanup procest. By Autbontr Sers 102. to) In4.106.101.162.
Airworthiness Directhree; 50elog i
4 defernnsimplementation of these su tu tot as sut en e17, s3a, e4a. 953.
Models 747 100,747 200,747-300, provtsions of the rule by erghteen su ens, em as amended. sec. 2R 43 Stat.
months the Commission is allow,ng m4. u amended (42 US C 21312133. 21x and 7475P Series Airplanes sufhcient time either to secure the 2135,2R m2 W3. D6. 29 2NI. 6eca A0nCv: Federal Adebon required coserage or to reconsider the 201 u amended. 202. 2A 84 Stat.1242. as Admittistration (FAA). DOT, mechanism by which accident cleanup yeyded.12n 1246 (42 U S C 5e41. SH2.
e i
funds may be assured to be used for theirintended purpose Even without Secton 50 t also luued ander PA L es-(NPRM).
formal stabilitation and m en m 92 5 tat test (42 U S C 5a51).
t l
l decontamination p*ionty and Section 5010 also inwd under secs 1m.1&S.
spesssaam This notice proposes a new ee Stat 91 eSS. n amended H2 05 C 2131.
trusteeship provisions. NRC has 2235 L acc.102. Pub L 91 190. 63 Stat. 853 (42 altworthiness directive ( AD). appheable auttonly to take appropriate U S C u321 Sections WJ3,50.35. En and to certain Boeing Model 747 senes enforcernent act4on to order cleanup in 256 also saeued under sec. tak se Stat ess airr.'tnes* which would require I
the unlikely esent of an accident. Thus.
(42 US C 22Js t. sestions masa. naasa and replacement of certain underwins fuel I'
the proposed rule will not have a Appendis Q also usued under sec.1o2. PA tank accesa doors with stronger, fire-stmficant impact on ubhc health and L m-tm 83 Stat as3 (42 U SC em) resistant doors. The action la prompted 1,
safety. Furthermore. [e proposed ruIe sections so M and 50 M also iseaed under by severalinc> dents of dooe penetration i
w 11 not has e sigmficant impacts on see M se Stat 1245 (42 U S C 5444).
by debns. This condiuon. if not st ate and lor.at gosernments and Seons 50 m So 91. and so e2 also issued corrected, could result in a fire.
geographical regions.on the under Pub L 97-411. Sa 5 tat ar1 (42 U 8 C
[
2:391 Section to te etao seewd under see SAtt: Comments must be received no l
srmronment, or, create substantial costs 122. ea Stat 930 (42 US C 21121 Sect 2one later than November 1(L 1968.
to hcensees. the NRC or other Federal to m>-50 n eleo iseved under wc. las as Sul Aeonesses: Send comments on the f
agencies The foregoins dascussion osa. se amended 142 US C 22341 Secten constitutee the regulatory anslysis foe So 103 a:*o 6uwd under sec. los. es stat taa.
proposalin duplicate to Federal l
this propond rule' u amended (42 U S C 21381 Append.a F aleo Aviation Administretien. Northwot I
tuued m$er sec.1s?. es sist osa (42 U.S C Mountain Region. Office of the Regional V1. Regulatory Tiesibility Certiration 22371 Counsel (Attn-Ah%tc3). Attenuorv As t,equired by the Regulato F*' the peswe of we. 223 es sist en u Altworthinus Rules Docket No. 66-NM-Fletibihty Act of 19ao. S U S C toNbl.
amended 142 U S c 227n il no te tot (bk St-AD.1Mo Pacific thshw ay South. C-the Commission certifies that this rule, if and Ick son to et to n to M and 30 met esem Seattle, Washmaton est68 The t
cdopted will not base a sigmf. cant are used under sec.1 stb. as Stat est u impact upon a substat.tiel number of senended 142 U S C !aottbit il so.to N and a(phcable persice informabon may be (cg and nu n,e 6 eued under sec. sett as c tained from Boeing Commercsal small entities The proposed rste affects stat e4e. u amended (42 US C 2ang15 and Airplanes
- P.O nos 3'0?* Seattle'on 112 wer reactoe beertnes. None of the il ao s 50 M4 el unstb). 270. so rt, m?&
Washington 98124. This informati hol rs of these bcenses could be to ?t and Mrs are 6ssued undes e.c. ste, es may be eummed at the FAA.
l considered small ent.taes stat eso. u se ended (42 U 5 C 2201[ojy Northwest Mountam Region.1*900 Vit BacLfit Analysis
- 2. In i 254. paragraph (w)(1)(i) is Pactfic thshway South S.eattJe.
WashmgtorL or Sottle Aircraft l
The NRC has determmed that the Cart 6 fica ten Office. FAA. Northw es t 4eckfit rule.10 CTR 53109. doea not i De 54 conemene et sceness Mountein Region. 9010 East Marstaal l
apply to this proposed rule because the Way South. Sea ttle. Washmatort l
preposed rule. af adopled. would not (w) * * '
Poa evenssa insecessAtioss Coastact:
impose a backfit as defined an (5) The decontamination pnonty and Mr. Kanji K. Pa tel Propulsion Branch, l MICtD(.f(1) Theesfare. a bac101 trust requirements set forth in ANM-t en telephone (sy) 431-1373.
i cnol)sie b not required for thaa persyephe (m)(3) and (w)(4) of thia Matlms addresa: FAA. Northwest l
proposed rule, sectaon must:
Mou.ataan Region.1P3@ Poet $c }bghwsy t
i
/