ML20207K759
| ML20207K759 | |
| Person / Time | |
|---|---|
| Site: | Duane Arnold  |
| Issue date: | 10/03/1988 |
| From: | Holahan G Office of Nuclear Reactor Regulation |
| To: | IES UTILITIES INC., (FORMERLY IOWA ELECTRIC LIGHT |
| Shared Package | |
| ML20207K762 | List: |
| References | |
| NUDOCS 8810170013 | |
| Download: ML20207K759 (4) | |
Text
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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMISSICri In the Matter of IOWA ELECTRIC LIGHT AND Docket No. 50-331 POWER COMPANY (Duane Arnold Energy Center)
EXEMPTION I.
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The Iowa Electric Light and Power Company (the licensee) is the holder of Facility Operating License No. DPR-49, which authorizes operation of the Duane Arnold Energy Center. The license provides, among 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 reactor at the licensee's site located in Linn County, Ion.
II.
On August 5, 1987, the NRC publis!ed in the FEDERAL REGISTER a final ruleamending10CFR50.54(w). The rule increased the amount of on-site property damage insurance required to be carried by NRC's power reactor licensees. The tvle also requimd these licensees to obtain by October 4, 1988 insurance policies that prioritized insurance proceeds for stabilization and decontamination after an accident a:1 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, G810170013 881003 PDR ADOCK 0500 31
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 provisions will not be alle to be incorporated into policies by the time required in the rule.
In response to these coments and related petitions for rulemaking, the Comission 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, because it is unlikely that this rulemaking action will be compitted by October 4, 1988, the Comission is issuing a temporary exemption frem 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, 1989. Upon completion of such rulemaking, the lit:ensee shall comply with the provisions of such rule.
III.
Pursuant to 10 CFR 50.12. "The Comission may, epon aprflication by any interested person or upon its own initiativa, 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 @, "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 relief from the applicable regulation and the licensee has made good faith efforts to comply with the regulation."
. O Despite a good faith effort to comply with the provisions of the rule, insurers providing property damage insurance for nuclear power facilities ano,1censees insured by such insurers have not been able to comply with the mgulation and the exemption provides only temporary relief from the applicable regulation.
As noted by the Comission in the Supplementary Infonnation accompanying the proposed rule, there are several masons 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 health and safety.
First, during the period of delay, the licensee will still be required to carry $1.06 billion insurance.
This is a substantial amount of coverage tn=t 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-!! policies. Finally, there is only an extremely small probability of 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 able to take appropriate enforcement action to assure adequate cleanup to protect public health and safety and the environment.
IV.
Accordingly, the Comission has detennined, pursuant to 10 CFR 50.12(a),
that (1) a temporary exemption as described in Section !!! 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 circumstances are present as described in Section III. Therefore, the Comission hereby grants the following exemption:
Iowa Electric Light and Power Company is exempt from the requirements of 10 CFR 50.54(w)(5)(1) until the 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.
Pursuant to 10 CFR 51.32, the Comission has determined that the granting of this exemption will not result in any significant environmental impact (53FR 38378).
This exemption is effective upon issuance.
FOR THE NUCLEAR REGULATORY COMMISSION Ny k.
Gary M. Holahan, Acting Dimetor Division of Reactor Projects III, IV, V, and Special Projects Office of Nucitar Reactor Regulation Dated at Rockville, Maryland this 3rd day of October 1988.
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