ML20207N886
| ML20207N886 | |
| Person / Time | |
|---|---|
| Site: | 05000000, Hatch |
| Issue date: | 10/07/1988 |
| From: | Varga S Office of Nuclear Reactor Regulation |
| To: | GEORGIA POWER CO. |
| Shared Package | |
| ML20207N889 | List: |
| References | |
| NUDOCS 8810190441 | |
| Download: ML20207N886 (4) | |
Text
7590-01 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMIS3 ION In the matter of
)
Georgia Power Company
)
Oglethorpe Power Corporation
)
Docket Nos. 50-321 Municipal Electric Authority of Georgia )
50-366 City of Dalton, Georgia
)
Edwin I. Hatch Nuclear Plant
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Unit 1
)
EXEMPTION I.
Georgia Power Company, Oglethorpe Power Corporation, Municipal Electric Authority of Georgia, and City of Dalton, Georgia, (the licensee) are the holders of Facility Operating License Nos. DPR-57 and NPF-5, which authorize operation of the Edwin I. Hatch Nuclear Plant, Units 1 and 2.
The licenses provide, among other things, that they tre subject to all rules, regulations, and orders of the Conmission now or hereafter in effect.
The facility consists of two boiling water reactors at the licensee's site l
located in Appling County, Georgia.
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II.
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On August 5, 1987, the NRC published in the FEDERAL REGISTER 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. The rule also required these licensees to obtain by October 4,1988 insurance po11cfG i
that pricritized insurance proceeds for stabilization and decontamination after an accident and provided for payment of proceeds to an independent trustee who would disburse funds for decontamination and cleanup before any othar 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
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, trustees required by the rule, the decontamination priority and trusteeship provisions will not 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 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, 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)(i) until complet1un of the pending rulemaking extending the implementation date specified in 10 CFR 50.54(w)(5)(i), but not later than April 1, 1989. Upon complation 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,Section50.12(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 exemption 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 comply with the regulation and the exemption provides only temporary relief from the applicable regulation.
O
. 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 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 that provides a significant financial cushion to licensees to decontaminate and clean up after an accident even without the prioritization and trusteeship provirions.
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 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.
i Accordingly, the Commission has determined, pursuant to 10 CFR 50.12(4),
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 conmon defense and security and (2) in this case, special circumstances are present as described in Section III. Tiierefore, the Commission hereby grants the followirg exemption:
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. Georgia Power Company, Oglethorpe Power Corporation, Municipal Electric Authority of Georgia, and City)of Dalton, Georgia are exempt from therequirem 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
( 53 FR 39546).
This exemption is effective upon issuance.
Dated at Rockville, Maryland this 7th day of October.
1988.
FOR THE NUCLEAR REGULATORY COMMISSION
/s/
Steven A. Varga, Director Division of Reactor Projects -I/11 Office of Nuclear Reactor Regulation l
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