ML20211M710

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Comments on SECY-95-233,discussing RES Rulemaking Plans for Amending Nuclear Power Reactor Decommissioning Financial Assurance Rule
ML20211M710
Person / Time
Issue date: 12/28/1995
From: Federline M
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To: Morris B
NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES)
Shared Package
ML20008B465 List:
References
FRN-62FR47588, RULE-PR-50 AF41-1-009, AF41-1-9, SECY-95-233-C, NUDOCS 9710150114
Download: ML20211M710 (2)


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  • December 28,'1995 1

i MEMORANDUM TO:L Bill M. Morris, Director j

Division of Regulatory Applications Office of Nuclear Regulatory Re:; ear,:n F_ ROM:.

Margaret V. Federline, Acting Director Division-of Waste Management t

Office of Nuclear Material Safety

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.and Safeguards 1

3 SUBJECl::

COMENTS ON THE PROPOSED NUCLEAR REACTOR DEC0mISSIONING

-FINANCIAL ASSURANCE REQUIREMENTS (SECY-93-233)-

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~We have completed our review of.SECY-95-223 dated September 1, 1995.

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.SECY-95-233 discusses your rulemaking plans for amending the nuclear power reactor decommissioning financial assurance rule.

SECY-95-233 also identified five issues and supporting' recommendations to.be addressed while developing the rulemaking for amending the nuclear power reactor decommissioning -

- financial-assurance requirements. Our response to these-five issues is discussed'below.

'We. agree'with the recommendation that the current financial assurance

. requirements for the decommissioning of nuclear power plants are outdated and

.need.toLbe revised (Issue 1). -In addition, we' agree that maintenance costs associated with the storage of spent fuel need not be included.as a decommissioning expense (Issue 2), and that the cost, toireturn the site to

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its original nature beyond the removal of radioactive material should not be included as part of the decommissioning cost (Issue 3)'.. We also support the p

-recommendation that the_ regulation have a prov sion for. periodic' reporting' i

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- requirements on the licensees'; accumulation of funds (Issue 4). Option C(2) requiring periodic reporting adequately addresses Issue.4.

We support the

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recommendation that in. situations where an electric utility's access to L

- collect funds-from a ratepayer is limited because of deregulation, power reactor licensees provide a formal guarantee mechanism ~(Issue 5),

Option A-2,: requiring a formal guarantee mechanism, provides reasonable i-asstrance that. adequate funding will be available for decommissioning.

E In response to_the recommendation to revise the decommissioning cost I-estimates,- we support the recomme.%iation that allows the-licensee to submit case-specific decommissioning' cost estimates.. We believe that-the review of t

case-specific decommissioning cost.: may require additional NRC staff resources

to' support this effort, and this Lshould b2 factored into the recommendation.

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Contact:

~L. Pittiglio,-NMSS

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.415-6702 i

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b 9710150114 971003 PDR-PGt 1

,.,.,50 f2FR47588 PDR

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B. Morris.

LWe'also support the-recommendation to place the inflation formula in a regulatory guide, to allow future changes to these coefficients in updating cost estimates,'while not requiring a rule change.

I We continue to question the use of the Battelle-Pacific Northwest Laboratory (PNL) reevaluation to replace the PWR and BWR funding requirements in the s

c-current rule.

Recent decommissioning experiences with the Shoreham Nuclear o

Pomer Station (SNPS)-and the fort St. Vrain (FSV) Generating Station indicate i

L that the PNL estimated cost ranges may be low.

Financial assurance based on the PNLL estimates may:not _ necessarily ensure the bulk of. the funds necessary to support decommissioning.

We agree that an adjustment in disposal volume is warranted; recent experiences at both FSV and SNPS-confirm that volume reduction has significantly reduced the volume' of low-level waste. However,-the cost of other decommissioning activities has increased significantly.

The PNL study

-(NUREG/CR-5884) estimated ~the cott of the final survey at $1.2 million and the.

4 Oak Ridge Institute for Science and Education (NUREG/CR-6714) estimated the L

final survey cost at $1.05 million. -The SNPS survey cost exceeded E

$12 million, and the FSV survey cost estimate ranges from $15 to $20 million.

We recommend that an additional study be conducted that compares actual costs, site-specific cost estimates (TLG Corporation has developed several-site-specific cost estimates), and the PNL generic study to develop a

decommissioning cost estimate based on the comparison of these numbers. This would ensure that the bulk of the funds will be available for decommissioning.

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