ML21060B414

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U.S. Nuclear Regulatory Commission Analysis of Duke Energy Florida, Llc'S Initial Decommissioning Funding Plan for the Crystal River Independent Spent Fuel Storage Installation
ML21060B414
Person / Time
Site: Crystal River Duke energy icon.png
Issue date: 04/12/2021
From: John Mckirgan
Storage and Transportation Licensing Branch
To: Hobbs T
Duke Energy Florida
JChen - NMSS/DFM/STL - 301.415.1018
References
EPID: L-2017-FPR-0078
Download: ML21060B414 (3)


Text

April 12, 2021 Terry Hobbs General Manager, Decommissioning 15760 W. Power Line Street, SAB2 Crystal River, FL 34428

SUBJECT:

U.S. NUCLEAR REGULATORY COMMISSION ANALYSIS OF DUKE ENERGY FLORIDA, LLCS INITIAL DECOMMISSIONING FUNDING PLAN FOR THE CRYSTAL RIVER INDEPENDENT SPENT FUEL STORAGE INSTALLATION

Dear Mr. Hobbs:

By letter dated May 15, 2017, Duke Energy Florida, LLC (DEF) 1 submitted, for U.S. Nuclear Regulatory Commission (NRC) staff review and approval, an initial decommissioning funding plan (DFP) for the independent spent fuel storage installation (ISFSI) at Crystal River Unit 3 Nuclear Generating Plant (CR-3) (Agencywide Documents Access and Management System (ADAMS) Accession No. ML17135A230).

In accordance with Title 10 of the Code of Federal Regulations (10 CFR), Section 72.30(b), and using NUREG-1757, Vol. 3, Rev. 1, Consolidated Decommissioning Guidance, the NRC staff reviewed DEFs initial DFP, including the initial decommissioning cost estimate (DCE) and the method of assuring funds for decommissioning.

Pursuant to 10 CFR 72.30(b), each holder of, or applicant for, a license under Part 72 must submit for NRC review and approval a DFP containing information on how reasonable assurance will be provided that funds will be available to decommission its ISFSIs. The DFP must contain a detailed DCE, in an amount reflecting: (1) the cost of an independent contractor to perform all decommissioning activities, (2) an adequate contingency factor, and (3) the cost of meeting the 10 CFR 20.1402 unrestricted use criteria (or the cost of meeting the 10 CFR 20.1403 restricted use criteria, provided the licensee can demonstrate its ability to meet these criteria). The licensees DFP must also identify and justify using the key assumptions contained in the DCE. Further, the DFP must describe the method of assuring funds for ISFSI decommissioning, including means for adjusting cost estimates and associated funding levels periodically over the life of the ISFSI. Additionally, the DFP must specify the volume of onsite subsurface material containing residual radioactivity that will require remediation to meet the criteria for license termination, and contain a certification that financial assurance for ISFSI decommissioning has been provided in the amount of the DCE.

The NRC staff reviewed and analyzed the information submitted by DEF on how reasonable assurance will be provided that funds will be available to decommission the ISFSI at CR-3, including the amount of the DCE and the method of assuring funds for decommissioning.

1 As ordered on April 1, 2020 (ADAMS Accession No. ML20069A024) and effected in the license transfer amendment on October 1, 2020 (ADAMS Accession No. ML20253A343), the NRC authorized the transfer of CR-3 ISFSI from DEF to ADP CR3, LLC (ADP CR3). DEF retained ownership of the Decommissioning Trust Fund.

T. Hobbs In its 2017 initial DFP, DEF estimated the total costs to decommission the CR-3 ISFSI to unrestricted use is $4,995,800 in 2017 dollars. Based on its financial analysis of DEFs submittals, the NRC staff finds that the DCE submitted for 2017: (1) is based on reasonable costs of a third-party contractor, (2) includes an adequate contingency factor, (3) reflects the cost of meeting the 10 CFR 20.1402 criteria for unrestricted use, and (4) is based on reasonable and documented assumptions. Therefore, the NRC finds that the 2017 DCE adequately estimates the cost, to carry out required ISFSI decommissioning activities prior to license termination, and that the 2017 DCE is acceptable.

In the initial DFP, DEF relied on an external sinking fund in the form of excess funds from its reactor decommissioning trust fund as financial assurance for ISFSI decommissioning, a method authorized by 10 CFR 50.75(e) and 10 CFR 72.30(e)(5). DEF, a public utility, is authorized to rely solely on the external sinking fund in accordance with 10 CFR 72.30(e)(5).

This is allowed because the Crystal River ISFSI belongs to a licensee with a power reactor license under part 50. The NRC staff reviewed the DEFs 2017 Decommissioning Funding Report for CR-3, dated March 28, 2017 (ADAMS Accession No. ML17087A256), and finds that the aggregate dollar amount of the licensees financial instrument provides adequate financial assurance to cover its cost estimates, and therefore, that this financial instrument is acceptable.

Based on its financial analyses, the NRC staff finds that the initial DFP contains the information required by 10 CFR 72.30(b) and that DEF has provided reasonable assurance that funds will be available to decommission the ISFSIs at CR-3.

In addition to the NRC staffs review of DEFs initial DFP, the NRC staff completed an environmental review. The NRC staff published a summary of the results of the environmental review in the Federal Register in April 2021 for the ISFSI at CR-3. The environmental assessment and finding of no significant impact for the CR-3 ISFSI is available in https://www.regulations.gov under the Docket ID: NRC-2021-0073. The NRC staff determined there was no environmental impact from the NRC staffs review and approval of DEFs initial DFP.

If you have any questions regarding this matter, please contact me at (301) 415-5722 or John.McKirgan@nrc.gov.

Sincerely, John B. Digitally signed by John B.

McKirgan McKirgan Date: 2021.04.12 13:50:01

-04'00' John McKirgan, Chief Storage and Transportation Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards Docket No.: 72-1035 License No.: SFGL-64 EPID No: L-2017-FPR-0078 cc: Billy Reid, ADP CF3, LLC

ML21060B414

  • concurrence via email OFFICE DFM DFM OGC/NLO DFM NAME YChen* WWheatley* PJehle* JMcKirgan*

DATE 3/2/2021 3/4/2021 3/30/2021 4/12/2021