ML23095A368
| ML23095A368 | |
| Person / Time | |
|---|---|
| Site: | Salem, Hope Creek  |
| Issue date: | 04/12/2023 |
| From: | Hipolito Gonzalez NRC/NRR/DORL/LPL1 |
| To: | Carr E Public Service Enterprise Group |
| References | |
| EPID L-2023-LRO-0002 | |
| Download: ML23095A368 (1) | |
Text
April 12, 2023 Mr. Eric Carr President and Chief Nuclear Officer PSEG Nuclear LLC - N09 P.O. Box 236 Hancocks Bridge, NJ 08038
SUBJECT:
HOPE CREEK GENERATING STATION AND SALEM NUCLEAR GENERATING STATION, UNIT NOS. 1 AND 2 - THRESHOLD DETERMINATION FOR PROPOSED TRANSFER OF LAND OWNERSHIP (EPID L-2023-LRO-0002)
Dear Mr. Carr:
By letter dated January 5, 2023 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML23005A129), PSEG Nuclear LLC (PSEG Nuclear, the licensee),
requested that the U.S. Nuclear Regulatory Commission (NRC) make a threshold determination that the proposed transfer of land ownership from PSEG Nuclear to NDev LLC (NDEV) would not result in a transfer of control of the NRC licenses held by the licensee that would require prior NRC approval pursuant to Title 10 of the Code of Federal Regulations (10 CFR),
Section 50.80, Transfer of licenses, and 10 CFR 72.50, Transfer of license.
The NRC staff has completed its review and concludes that the proposed transfer of land ownership from PSEG Nuclear to NDEV would not constitute a direct or indirect transfer of control of the NRC licenses held by the licensee. Therefore, the licensee does not require the NRCs prior consent under 10 CFR 50.80 and 10 CFR 72.50.
The enclosed safety evaluation documents the staffs review and findings.
If you have any questions, please contact the project manager, James Kim, at (301) 415-4125 or by email to James.Kim@nrc.gov.
Sincerely, Hipólito J. González, Chief Plant Licensing Branch III Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-354, 50-272, 50-311, and 72-48
Enclosure:
Safety Evaluation cc: Listserv Hipolito J.
Gonzalez Digitally signed by Hipolito J. Gonzalez Date: 2023.04.12 16:34:44 -04'00'
Enclosure SAFETY EVALUATION BY THE OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS THRESHOLD DETERMINATION FOR PROPOSED TRANSFER OF LAND OWNERSHIP PSEG NUCLEAR LLC HOPE CREEK GENERATING STATION AND INDEPENDENT SPENT FUEL STORAGE INSTALLATION DOCKET NOS. 50-354 AND 72-48 PSEG NUCLEAR LLC CONSTELLATION ENERGY GENERATION, LLC SALEM NUCLEAR GENERATING STATION, UNIT NOS. 1 AND 2, AND INDEPENDENT SPENT FUEL STORAGE INSTALLATION DOCKET NOS. 50-272, 50-311, AND 72-48
1.0 INTRODUCTION
By letter dated January 5, 2023 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML23005A129), PSEG Nuclear LLC (PSEG Nuclear, the licensee) requested that the U.S. Nuclear Regulatory Commission (NRC, the Commission) make a threshold determination that the proposed transfer of land ownership from PSEG Nuclear to NDev LLC (NDEV), would not result in a transfer of control of the NRC licenses held by the licensee that would require prior NRC approval pursuant to Title 10 of the Code of Federal Regulations (10 CFR) section 50.80, Transfer of licenses, and 10 CFR 72.50, Transfer of license.
2.0 BACKGROUND
As stated in the licensees threshold determination request, the State of New Jersey is actively working to develop offshore wind generation capability. The PSEG Nuclear site is uniquely suitable for the construction and operation of a marshalling port for offshore wind farms due to its proximity and access to both safe anchorage and the open ocean. As a result, PSEG Nuclear has entered into a land lease with the New Jersey Economic Development Authority (NJEDA) for certain parcels on PSEG Nuclear property to develop the New Jersey Wind Port (NJWP). As part of the proposed transaction, the NJEDA lease will be transferred from PSEG Nuclear to NDEV.
PSEG Nuclear and NDEV are wholly owned subsidiaries of PSEG Power LLC (PSEG Power).
NDEV was established as a land holding company to own property, located north of the nuclear site. NDEV has no employees, and its board and officers are all employed within the PSEG parent corporate structure. The proposed transfer of land ownership would facilitate, for business purposes, activities unrelated to nuclear power plant operations that are permitted within the exclusion area.
3.0 EVALUATION The NRC staff reviewed the licensees request for a threshold determination that the proposed transfer of land ownership from PSEG Nuclear to NDEV would not involve a direct or indirect transfer of control of the NRC licenses held by the licensee that would require prior NRC approval pursuant to 10 CFR 50.80 and 10 CFR 72.50. The regulation at 10 CFR 50.80(a) states, in part, that:
No license for a utilization facility... or any right thereunder, shall be transferred, assigned, or in any manner disposed of, either voluntarily or involuntarily, directly or indirectly, through transfer of control of the license to any person, unless the Commission gives its consent in writing.
The regulation at 10 CFR 72.50(a) states, in part, that:
No license for an [independent spent fuel storage installation (ISFSI)] shall be transferred, assigned, or in any manner disposed of, either voluntarily or involuntarily, directly or indirectly, through transfer of control of the license to any person, unless the Commission gives its consent in writing.
As stated in the licensees threshold determination request, the proposed transfer of land would result in NDEV obtaining status as a landowner within the exclusion area for and Hope Creek Generating Station (Hope Creek) and Salem Nuclear Generating Station, Units 1 and 2 (Salem).
Deed restrictions for the proposed land transaction between PSEG Nuclear and NDEV are intended to ensure that no transfer of control of the license or loss of control over the exclusion area occurs. Moreover, the deed restrictions will be deemed appurtenant to and to run with the land, therefore binding on NDEV, its successors and assigns, until the licenses for Hope Creek, Salem, and the ISFSIs are terminated. The deed restrictions also will ensure that PSEG Nuclear maintains the ability to implement the site emergency plan and security plans, and to monitor radiological conditions and protect personnel from radiation. Furthermore, the deed restrictions will be extended over any future lease arrangements made by NDEV for use of property within the exclusion area. The regulation in 10 CFR 100.3 states, in part, that activities unrelated to operation of the reactor may be permitted... provided that no significant hazards to the public health and safety will result. As the licensed operator, PSEG Nuclear has been and will continue to be responsible for compliance with 10 CFR Part 100 and for performing evaluations of such activities consistent with the criteria in NUREG-0800, Standard Review Plan 2.1.2, which are subject to NRC inspection.
Regulatory Issue Summary (RIS) 2001-06, Criteria for Triggering a Review Under 10 CFR 50.80 for Non-Owner Operator Service Companies, provides criteria for determining when the use of contract service operating companies in connection with the operation or maintenance of nuclear power reactors requires NRC review and approval under 10 CFR 50.80.
The criteria are to be used in conjunction with the concept of final decision-making authority.
Although the RIS developed these criteria for judging whether the use of a different or new nuclear power plant operating entity involves a transfer and requires NRC review and approval, the NRC staff finds that the proposed land transfer from PSEG to NDEV raises similar considerations as those outlined in the RIS, and therefore, the RIS criteria are applicable to the proposed transaction. As stated in the licensees threshold determination request, deed restrictions for the land ownership transfer will ensure that PSEG Nuclear maintains final decision-making authority over activities unrelated to operation of the reactors permitted on the portions of land owned by NDEV. Therefore, consistent with the criteria discussed in RIS 2001-06, the proposed land transfer to NDEV would not require NRC approval under 10 CFR 50.80 and 10 CFR 72.50.
As part of its threshold determination request, PSEG Nuclear provided information responsive to NRC inspectors of potential issues associated with a planned land transaction with NDEV. The licensee stated that the transfer of land would not constitute a partial site release for unrestricted use as described in 10 CFR 50.83 because there is no change to the site boundary and no release of land from the licensed site area. The licensee also stated that the transfer of land would not change the size or alter any boundary of the exclusion area, or result in physical changes to the nuclear facilities. Deed restrictions will ensure PSEG Nuclear retains sufficient control of the exclusion area at all times, including the authority to exclude or remove personnel and property from the area. Therefore, the proposed land ownership transfer would not affect the Hope Creek and Salem design basis accidents dose calculations. The licensee further stated that the proposed land transaction does not require a change to License Condition 2.a related to ownership, because no changes to ownership of the facilities is involved. However, PSEG Nuclear does anticipate the need for revisions to their updated final safety analysis report upon completion of the land transfer. Subsequent to an inspection report, the NRC issued license amendments to remove detailed figures of the site and surrounding area from the Hope Creek and Salem technical specifications.1 The licensee has determined that no additional changes are needed.
As stated in the licensees threshold determination request, the use of land, and activities permitted, are subject to licensee safety evaluations and reviews for potential impacts or changes to the site security plans and emergency preparedness plan. The transfer of land ownership does not change the applicability and scope of these licensee reviews. PSEG Nuclear will remain responsible for these reviews and all other matters related to nuclear safety and the health and safety of the public, such as financial protection and decommissioning funding requirements for the site. While NDEV will be responsible for business, financial, and administrative matters involving activities unrelated to reactor operations, NDEV will have no responsibility for NRC licensed activities, either directly or indirectly. Under the proposed deed restrictions, NDEV will not have ownership rights to grant or deny access or to make any decisions involving activities within the exclusion area that will not be subject to approval by PSEG Nuclear.
1 NRC inspectors identified a non-cited violation of 10 CFR 50.59 related to the evaluation of NJWP construction activities and the facility technical specifications definition of unrestricted area, which included any area within the site boundary used for industrial activities, and which did not depend on a land transaction with NDEV. This was addressed in Amendments Nos. 230, 342, and 323 to the Hope Creek and Salem licenses (dated February 24, 2022, ML22012A435) by deleting certain technical specification definitions where appropriate definitions are provided in the Offsite Dose Calculation Models or regulations and removing detailed figures of the site and surrounding area.
4.0 CONCLUSION
Based on the representations made in the licensees threshold determination request as described above, the NRC staff concludes that the proposed transfer of land ownership from PSEG Nuclear to NDEV would not constitute a direct or indirect transfer of control of the NRC licenses held by the licensee. Therefore, the licensee does not require the NRCs prior consent under 10 CFR 50.80 and 10 CFR 72.50.
Contributor: Mable A. Henderson Date: April 12, 2023
ML23095A368 OFFICE NRR/DORL/LPL1/PM NRR/DORL/LPL1/LA NMSS/REFS/FAB/BC NAME JKim KEntz FMiller DATE 4/6/2023 4/6/2023 3/23/2023 OFFICE OGC NRR/DORL/LPL1/BC NAME AGhoshNaber HGonzález DATE 4/10/2023 4/12/2023