ML20211M575
| ML20211M575 | |
| Person / Time | |
|---|---|
| Issue date: | 07/28/1995 |
| From: | Morrison D NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES) |
| To: | Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| Shared Package | |
| ML20008B465 | List:
|
| References | |
| FRN-62FR47588, RULE-PR-50 AF41-1-002, AF41-1-2, NUDOCS 9710150026 | |
| Download: ML20211M575 (5) | |
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July 28,1995 #w-l PDA MEMORANDUM T0: ' James M. Taylor Executive Director for Operations FROM: David L. Morrison, Director Office of Nuclear Regulatory Research
SUBJECT:
RULEMAKING PLANS FOR AMENDING NUCLEAR POWER REACTOR DECOMMISSIONING FINANCIAL ASSURANCE REQUIREMENTS Attached for your signature is a Commission paper which informs the Commission of the -taff's rulemaking plans for amending the r.uclear power reactor decommissioning financial assurance rule.
.The staff has determined that there is a need to update NRC's financial assurance requirements for the decommissioning of nuclear power plants.
Recent studies have shown that the present decommissioning cost requirements are' outdated and not based on the most recent technology. Also, the impact of deregulation of the power generating industry has created additional uncertainty with respect to the availability of decommissioning funds. As a result, the staff is planning to make two amendments to 10 CFR 50.75 to address these concerns. The first proposed amendment would modify the value of the funds required to accomplish the decommissioning and the second would modify the financial mechanism required to provide the decommissioning funds when needed, along with the monitoring of such a mechanism.
The rulemaking plans for these two proposed amendments, attached to the Commission paper, have been developed using the guidance in NRC Management l Directive 6.3, "The Rulemaking Process."
Attachment:
- 1. Commission Paper w/atts.
Distribution:
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FOR: The Commissioners-FROM:= James M. Tay1or-Executive Director for Operations
SUBJECT:
RULEMAKING PLAN FOR AMENDING NUCLEAR POWEP REACTOR OECOMMISSIONING FINANCIAL ASSURANCE REQUIREMENTS PURPOSE:
To inform the Comission of the staff'sirulemaking plans for amending the nuclear power reactor decommissioning financial assurance. rule.
BACKGROUND:
The staff has determined that there is a need to update NRC's financial assurance requirements for the decommissioning of nuclear power plants.
Recent studies have shown that _the present decomissioning cost requirenents are outdated and not based on- the most recent technology. Also, the impact of-deregulation of the power generating industry has created . additional uncertainty with respect to the availability of decommissioning funds. As a result, the staff is planning to make two amendments to 10 CFR 59.75 to address these concerns. The first proposed amendment would modify the value of the funds required to' accomplish the decommissioning and the second would modify the financial mechanism required to provide the decommissioning funds when needed, along with the monitoring of such a mechanism.
> DISCUSSION:
In.an April 17,-1995, memorandum to the Commission (Attachment 1), the Executive Director for Operations -(ED0) informed the Comission on the status of staff activities relating to the reevaluation of reactor decommissioning costs. -That memo identified five issues to-be addressed by the staff in the development of. the_ rulemaking plan on amending the nuclear power reactor-decomissioning financial assurance requirements.
Contact:
Brian J.-Richter, RES 41)-6221
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The Commissioners 2 The initial issue raised in the referenced memorandum was whether the current funding requirements in 5 50.75 should be amended. The staff recommends they should. The second and third issues were somewhat reiated. The former was whether maintenance costs associated with the storage of spent fuel should be a decommissioning cost and the latter was whether the costs associated with the return of a site to " green field" status should be a decommissioning cost.
The staf f recommends that neither of these items should be included in the decommissioning costs.
The staff also recommends that the fourth issue of reporting requirements on a licensee's accumulation of decommissioning funds should be added to the NRC's requirements. The last issue related to whether potential for changes in the financial status of licensees due to a change in ownership and its subsequent effect on decommissioning funding should be addressed in the NRC's regulations. The staff believes that these items should also be included in the NRC's requirements.
l Decommissioning financial assurance may be broken down into two general areas:
(1) the funds required to accomplish the decommissioning and (2) the instruments tc provide the funds along with reporting requirements. Because the information base required for rulemaking considerations for the former l area is further along than for the latter, it is expected that the rulemaking j relatinn to the decommissioning cost requirements can be accomplished in a much shorter time period than that needed to complete the rulemaking for decommissioning financial assurance requirements. Therefore, the staff is proposing that the rulemaking be handled as two separate actions and the attached rulemaking plans reflect this approach.
With respect to the proposed action to modify Power Reactor Decommissioning Cost Requirements, the staff plans to amend 10 CFR 50.75 by replacing the outdated funding amounts presently prescribed with recently revised values based on newer technology and assumptions, with a requirement for the cost requirements to be revised annually. Also, licensees would be allowed to use site-specific decommissioning cost estimates in addition to the constant dollar amounts specified in 5 50.75. This action is identified as item C2HP-06 in a May 10, 1995, memorandum from James M. Taylor to the Commission, "Rulemaking Activities Under Responsibility of the EDO: Rulemaking Plan and Review Process," and is regarded as a minor amendment providing licensees with greater flexibility of implementation, therefore it is recommended that the ED0 issue the rule in accordance with Management Directive 9.17.
For the proposed action on Pc- ' Reactor Decommissioning Financial Assurance Implementation Requirements, staff plans to require periodic reporting within 5 50.75 to verify the (tlability of the decommissioning funds and the continued ability of the licensee to accumulate the funds. This action will be added to the next revision of the May 10, 1995, planning document discussed above. The staff's position is that this issue will require a notation vote on the part of the Commission.
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t 2 The. Commissioners 3
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The attached rulemaking plans for the above two actions (Attachments 2 and 3) provide the staff's. decision rationale and recommendations on these and related issues.
l James M. Taylor Executive Director for Operations l
Attachments: As stated (3) f J.i y
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July 28, 1995 The Commissioners 3 The attached rulemaking plans for the above two actions (Attachments 2 and 3) provide the staff's decision rationale and recommendations on these and relateo issues, 1
James M. Taylor Executive Director for Operations Attachments- As stated (3)
Distribution:
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