ML20245D699

Temporary Exemption from Schedular Requirements of Property Insurance Rule Effective 881004 (10CFR50.54)

ML20245D699
Person / Time
Site:	Fermi
Issue date:	09/30/1988
From:	Holahan G Office of Nuclear Reactor Regulation
To:	DETROIT EDISON CO.
Shared Package
ML20245D698	List: ML20245D696 ML20245D699
References
NUDOCS 8810050187
Download: ML20245D699 (4)

Text

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7590-01 4

j UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the matter of l DETROIT-EDISON COMPANY Docket No. 50-341 WOLVERINE POWER SUPPLY COOPERATIVE INCORPORATED (Fermi-2)

EXEMPTION I.

Detroit Edison Company and the Wolverine Power Supply Cooperative, Incorporated (the licensees) are the holders of facility Operating License No.

NPF-43, which authorizes operation of Fermi-2. The license provides, among other things, that Fermi-2 is subject to all rules, regulations, and orders of the Nuclear Regulatory Comission (the Comission) now or hereafter in effect.

The facility consists of a boiling water reactor at the licensee's site located in Monroe County, Michigan.

II.

On August 5,1987, the Comission published 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 the Comission's power reactor licensees. The rule also required these licensees to obtain by October 4, 1988, insurance policies that prioritized 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 other purpose. Subsequent to publication of the rule, the Comission has b'een 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 able 8810050187 PDR 880930 ADOCK 05000341 PDC a

to be incorporated into policies by the time required in the rule. In response to these coments and related petitions for rulemaking, the Commission 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 completed by October 4,1988, the Commission is issuing a temporary exemption from 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)(i), but not later:than April 1, 1989. Upon completion of such rulemaking, the licensees 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, and are consistuit with the common defense and security." Further, Section 50.12(a)(2) provides inter alia, "The Commission 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." i 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 provices only temporary relief from the applicable regulation.

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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 licensees 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 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-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, the Commission would be able to take appropriate enforcement action to assure adequate cleanup to protect public health and safety and the environment.

IV.

Accordingly, the Commission has determined, pursuant to 10 CFR 50.12(a),

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 common defense and security and (2) in this case, special circumstances are present as described in Section III. Therefore, the Commission hereby grants the following exemption:

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, j Detroit Edison Company and Wolverine Power Supply Cooperative, Incorporated, are exempt from.the requirements of 10 CFR 50.54(w)(5)(1) until the

._ completion of the pending rulemaking extending the implementation date 1

specified in 10 CFR 50.54(w)(5)(i), but not later than April-1, 1989. Upon completion of such rulemaking, the licensees shall comply with the provisions of such rule.

Pursuant to 10 CFR 51.32, the Commission has determined that the granting j of this exemption will not result in any significant environmental impact

( 53 FR 38119 This exemption is effective upon issuance.

Dated at Rockville, Maryland this 30th day of september , 1988.

FOR THE NUCLEAR REGULATORY COMMISSION 28Q W Gary M. Holahan, Acting Director Division of Reactor Projects - III, IV, V and Special Projects Office of Nuclear Reactor Regulation

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