ML20335A023

Issuance of Amendment Nos. 306 and 196 to Remove License Conditions B and C Related to the Irradiated Fuel Management Plans

ML20335A023
Person / Time
Site:	Beaver Valley
Issue date:	12/28/2020
From:	Jennifer Tobin Plant Licensing Branch 1
To:	Grabnar J Energy Harbor Nuclear Corp
Tobin J
References
EPID L-2019-LLA-0155
Download: ML20335A023 (13)

Text

December 28, 2020 Mr. John G. Grabnar Energy Harbor Nuclear Corp.

Beaver Valley Power Station Mail Stop P-BV-SSB P.O. Box 4, Route 168 Shippingport, PA 15077-0004

SUBJECT:

BEAVER VALLEY POWER STATION, UNITS 1 AND 2 - ISSUANCE OF AMENDMENT NOS. 306 AND 196 TO REMOVE LICENSE CONDITIONS B AND C RELATED TO THE IRRADIATED FUEL MANAGEMENT PLANS (EPID L-2019-LLA-0155)

Dear Mr. Grabnar:

The U.S. Nuclear Regulatory Commission (Commission) has issued the enclosed Amendment Nos. 306 and 196 to Renewed Facility Operating License Nos. DPR-66 and NPF-73 for the Beaver Valley Power Station, Units 1 and 2. These amendments consist of the removal of License Conditions B and C related to changes in the irradiated fuel management plan funding in response to your application dated July 13, 2020.

The amendments remove License Conditions B and C to recognize the cancellation of premature shutdown plans announced in 2019.

A copy of the related safety evaluation is also enclosed. Notice of Issuance will be included in the Commissions monthly Federal Register notice.

Sincerely,

/RA/

Jennifer C. Tobin, Project Manager Plant Licensing Branch I Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-334 and 50-412

Enclosures:

1. Amendment No. 306 to DPR-66

2. Amendment No. 196 to NPF-73

3. Safety Evaluation cc: Listserv

ENERGY HARBOR NUCLEAR CORP.

ENERGY HARBOR NUCLEAR GENERATION LLC DOCKET NO. 50-334 BEAVER VALLEY POWER STATION, UNIT NO. 1 AMENDMENT TO RENEWED FACILITY OPERATING LICENSE Amendment No. 306 Renewed License No. DPR-66

1. The U.S. Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment by Energy Harbor Nuclear Corp., acting on its own behalf and as agent for Energy Harbor Nuclear Generation LLC* (the licensees), dated July 13, 2020, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commissions rules and regulations set forth in 10 CFR Chapter I.

B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C. There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commissions regulations; D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commissions regulations and all applicable requirements have been satisfied.

• Energy Harbor Nuclear Corp. is authorized to act as agent for Energy Harbor Nuclear Generation LLC and has exclusive responsibility and control over the physical construction, operation, and maintenance of the facility.

2. Accordingly, the license is amended by removal of Conditions B and C from Renewed Facility Operating License No. DPR-66.

3. This license amendment is effective as of its date of issuance and shall be implemented within 30 days.

FOR THE NUCLEAR REGULATORY COMMISSION Digitally signed by James James G. G. Danna Date: 2020.12.28 Danna 18:39:43 -05'00' James G. Danna, Chief Plant Licensing Branch I Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Attachments:

Changes to Appendix C of the Renewed Facility Operating License Date of Issuance: December 28, 2020

ATTACHMENT TO LICENSE AMENDMENT NO. 306 BEAVER VALLEY POWER STATION, UNIT NO. 1 RENEWED FACILITY OPERATING LICENSE NO. DPR-66 DOCKET NO. 50-334 Replace the following page of the Appendix C, Additional Conditions, with the attached revised page. The revised page is identified by amendment number and contains a marginal line indicating the area of change.

Remove Insert C-6 C-6

APPENDIX C ADDITIONAL CONDITIONS OPERATING LICENSE NO. DPR-66 Energy Harbor Nuclear Corp. and Energy Harbor Nuclear Generation LLC shall comply with the following conditions on the schedules noted below:

Amendment Additional Condition Implementation Number Date 304 Based on the Commissions approval regarding the change in the The parent company issuing a $400 million Support Agreement to amendment Energy Harbor Nuclear Generation LLC, Energy Harbor Nuclear shall be Generation LLC shall comply with the conditions noted below. implemented This $400 million Support Agreement supersedes all previous within 30 parent support agreements. days from date of A. The Support Agreement in the amount of $400 million issuance described in the application dated April 26, 2019, is effective.

Energy Harbor Nuclear Generation LLC shall take no action to void, cancel, or modify the Support Agreement without the prior written consent of the NRC staff. Energy Harbor Nuclear Generation LLC shall inform the Director of the Office of Nuclear Reactor Regulation, in writing, no later than 10 working days after any funds are provided to Energy Harbor Nuclear Generation LLC by Energy Harbor Corp. under the terms of the Support Agreement.

306 B. Deleted.

C. Deleted Beaver Valley Unit 1 C-6 Amendment No. 304, 306

ENERGY HARBOR NUCLEAR CORP.

ENERGY HARBOR NUCLEAR GENERATION LLC DOCKET NO. 50-412 BEAVER VALLEY POWER STATION, UNIT 2 AMENDMENT TO RENEWED FACILITY OPERATING LICENSE Amendment No. 196 Renewed License No. NPF-73

1. The U.S. Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment by Energy Harbor Nuclear Corp., acting on its own behalf and as agent for Energy Harbor Nuclear Generation LLC* (the licensees), dated July 13, 2020, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commissions rules and regulations set forth in 10 CFR Chapter I.

B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C. There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commissions regulations; D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commissions regulations and all applicable requirements have been satisfied.

• Energy Harbor Nuclear Corp. is authorized to act as agent for Energy Harbor Nuclear Generation LLC and has exclusive responsibility and control over the physical construction, operation, and maintenance of the facility.

2. Accordingly, the license is amended by removal of Conditions B and C from Renewed Facility Operating License No. NPF-73.

3. This license amendment is effective as of its date of issuance and shall be implemented within 30 days.

FOR THE NUCLEAR REGULATORY COMMISSION Digitally signed by James James G. G. Danna Date: 2020.12.28 Danna 18:39:09 -05'00' James G. Danna, Chief Plant Licensing Branch I Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Attachments:

Changes to Appendix D of the Renewed Facility Operating License Date of Issuance: December 28, 2020

ATTACHMENT TO LICENSE AMENDMENT NO. 196 BEAVER VALLEY POWER STATION, UNIT 2 RENEWED FACILITY OPERATING LICENSE NO. NPF-73 DOCKET NO. 50-412 Replace the following page of the Appendix D, Additional Conditions, with the attached revised page. The revised page is identified by amendment number and contains a marginal line indicating the area of change.

Remove Insert D-7 D-7

APPENDIX D ADDITIONAL CONDITIONS OPERATING LICENSE NO. NPF-73 Energy Harbor Nuclear Corp. and Energy Harbor Nuclear Generation LLC shall comply with the following conditions on the schedules noted below:

Amendment Additional Condition Implementation Number Date 194 Amendment Number 187 described a $400 million Support Agreement between FirstEnergy Solutions Corp. (FES) and FirstEnergy Nuclear Generation, LLC (FENGen). However, the amendment did not clearly state that this Support Agreement superseded entirely a similar agreement between FirstEnergy Corp. and FirstEnergy Nuclear Generation Corp. (predecessor of FENGen).

Based on the Commissions approval regarding the change in the parent company issuing a $400 million Support Agreement to The amendment Energy Harbor Nuclear Generation LLC, Energy Harbor Nuclear shall be Generation LLC shall comply with the conditions noted below. implemented within 7 days from date of This $400 million Support Agreement supersedes all previous issuance parent support agreements.

A. The Support Agreement in the amount of $400 million described in the application dated April 26, 2019 is effective.

Energy Harbor Nuclear Generation LLC shall take no action to void, cancel, or modify the Support Agreement without the prior written consent of the NRC staff. Energy Harbor Nuclear Generation LLC shall inform the Director of the Office of Nuclear Reactor Regulation, in writing, no later than 10 working days after any funds are provided to Energy Harbor Nuclear Generation LLC by Energy Harbor Corp. under the terms of the Support Agreement.

196 B. Deleted.

C. Deleted Beaver Valley Unit 2 D-7 Amendment No. 194, 196

SAFETY EVALUATION BY THE OFFICE OF NUCLEAR MATERIALS SAFETY AND SAFEGUARDS RELATED TO AMENDMENT NOS. 306 AND 196 BEAVER VALLEY POWER STATION, UNITS 1 AND 2 DOCKET NOS. 50-334 AND 50-412

1.0 INTRODUCTION

By application dated July 13, 2020 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML20195A845), Energy Harbor Nuclear Corp. (Energy Harbor, the licensee) requested changes to operating license conditions related to irradiated fuel management plan (IFMP) funding in the Beaver Valley Power Station, Units 1 and 2 (Beaver Valley 1 and 2), Renewed Facility Operating Licenses (RFOLs).

The proposed changes would delete Conditions B and C previously added to the Beaver Valley 1 and 2 RFOLs by License Amendment Nos. 304 and 194, respectively, dated February 27, 2019 (ADAMS Accession No. ML20030A440), respectively. These conditions were added based on estimated funding needed for the Beaver Valley 1 and 2 IFMPs that were submitted when a plan for permanent cessation of power operations at both units was in effect.

Subsequent to the issuance of License Amendment Nos. 304 and 194, the new Board of Directors for Energy Harbor Nuclear Corp. reversed the decision to permanently cease power operations at Beaver Valley 1 and 2 in 2021.

2.0 BACKGROUND

By letter dated April 25, 2018 (ADAMS Accession No. ML18115A007), formal notification was provided to the U.S. Nuclear Regulatory Commission (NRC, the Commission) pursuant to Title 10 of the Code of Federal Regulations (10 CFR) 50.82(a)(1)(i) and 10 CFR 50.4(b)(8) of the intention to permanently cease power operations at Beaver Valley 1 by May 31, 2021, and Beaver Valley 2 by October 31, 2021. As a result, and in accordance with 10 CFR 50.54(bb),

IFMPs for Beaver Valley 1 and 2 were provided for NRC staff review and preliminary approval.

By letter dated December 18, 2019 (ADAMS Accession No. ML19336A028), the NRC staff issued a safety evaluation for these IFMPs, which included discussion of two license conditions.

The license conditions were issued by NRC letter dated February 27, 2020 (ADAMS No. ML20030A440) as Conditions B and C to the RFOLs for Beaver Valley 1 and 2 by License Amendment Nos. 304 and 194, respectively.

By letter dated March 13, 2020 (ADAMS No. ML20073N415), Energy Harbor withdrew the certification of permanent cessation of power operations for Beaver Valley 1 and 2. Therefore, the current expiration dates of the RFOLs are January 29, 2036, for Beaver Valley 1, and May 27, 2047, for Beaver Valley 2.

Enclosure 3

3.0 REGULATORY EVALUATION

The regulation under 10 CFR 50.54(bb) states, in part:

For nuclear power reactors licensed by the NRC, the licensee shall, within 2 years following permanent cessation of operation of the reactor or 5 years before expiration of the reactor operating license, whichever occurs first, submit written notification to the Commission for its review and preliminary approval of the program by which the licensee intends to manage and provide funding for the management of all irradiated fuel at the reactor following permanent cessation of operation of the reactor until title to the irradiated fuel and possession of the fuel is transferred to the Secretary of Energy for its ultimate disposal in a repository.

With the withdrawal of the certification of permanent cessation of power operations for Beaver Valley 1 and 2, the current expiration dates of the RFOLs are January 29, 2036, for Beaver Valley 1, and May 27, 2047, for Beaver Valley 2. As such, the applicable portion of 10 CFR 50.54(bb) would be five years before expiration of the reactor operating license.

Therefore, the IFMPs for Beaver Valley 1 and 2 are not required until 2031 and 2042, respectively.

The regulations under 10 CFR 50.75(b) require the holder of an operating license to submit a decommissioning report. The regulations state, in part:

(1) For an applicant for or holder of an operating license under part 50, the report must contain a certification that financial assurance for decommissioning will be (for a license applicant), or has been (for a license holder), provided in an amount which may be more, but not less, than the amount stated in the table in paragraph (c)(1) of this section adjusted using a rate at least equal to that stated in paragraph (c)(2) of this section.

(2) The amount to be provided must be adjusted annually using a rate at least equal to that stated in paragraph (c)(2) of this section.

(3) The amount must be covered by one or more of the methods described in paragraph (e) of this section as acceptable to the NRC.

While Beaver Valley 1 and 2 continue power operations, decommissioning reports required by 10 CFR 50.75 should continue to provide reasonable assurance that funds will be available for the decommissioning process.

4.0 TECHNICAL EVALUATION

The Beaver Valley 1 and 2 RFOLs include License Conditions B and C that were added based on estimated funding needed for the Beaver Valley 1 and 2 IFMPs, which assumed permanent cessation of power operations at both units would occur in 2021.

With the withdrawal of the certification of permanent cessation of power operations for Beaver Valley 1 and 2, the financial conditions associated with the nuclear decommissioning trust funds have changed. The current expiration dates of the RFOLs are January 29, 2036, for Beaver Valley 1, and May 27, 2047, for Beaver Valley 2. In accordance with 10 CFR 50.54(bb), IFMPs are required within 2 years following permanent cessation of operation of the reactor, or 5 years

before expiration of the reactor operating license, whichever occurs first. Therefore, the IFMPs for Beaver Valley 1 and 2 are no longer applicable.

The associated Conditions B and C to the Beaver Valley 1 and 2 RFOLs are no longer appropriate because the conditions are based on the IFMP cost estimates and fund disbursement dates that are no longer applicable. The funds are no longer needed in the timeframe described in the IFMPs. Therefore, funding a provisional trust by December 31, 2021 (as described in Condition B) and obtaining performance bonds by January 1, 2027 (as described in Condition C) are no longer appropriate for Beaver Valley 1 and 2.

5.0 STATE CONSULTATION

In accordance with the Commissions regulations, the Pennsylvania State official was notified of the proposed issuance of the amendment on December 15, 2020. The State official had no comments.

6.0 ENVIRONMENTAL CONSIDERATION

The amendments change surety, insurance and/or indemnity requirements. The NRC staff has determined that the amendments involve no significant increase in the amounts, and no significant change in the types, of any effluents that may be released offsite, and that there is no significant increase in individual or cumulative occupational radiation exposure. The Commission has previously issued a proposed finding that the amendments involve no significant hazards consideration, and there has been no public comment on such finding (85 FR 52374; August 25, 2020). Accordingly, the amendments meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(10)(i). Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the issuance of the amendments.

7.0 CONCLUSION

Based on the considerations discussed above, the NRC staff concludes that License Conditions B and C should be deleted from the RFOLs for Beaver Valley 1 and 2, and that:

(1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) such activities will be conducted in compliance with the Commissions regulations, and (3) the issuance of the amendments will not be inimical to the common defense and security or to the health and safety of the public.

The proposed changes are administrative in nature. There are no physical modifications to the plant or plant equipment involved with the proposed changes.

Principal Contributor: Trent Wertz, NMSS Date: December 28, 2020

ML20335A023 *by memorandum OFFICE NRR/DORL/LPL1/PM NRR/DORL/LPL1/LA NMSS/REFS/FAB/BC NAME JTobin LRonewicz FMiller DATE 12/07/2020 12/07/2020 11/19/2020 OFFICE OGC - NLO NRR/DORL/LPL1/BC NRR/DORL/LPL1/PM NAME KGamin JDanna JTobin DATE 12/21/2020 12/28/2020 12/28/2020