PNP 2023-026, Pre-Submittal Meeting Presentation - Palisades Nuclear Plant License Transfer Application to Support Resumption of Power Operations

Pre-Submittal Meeting Presentation - Palisades Nuclear Plant License Transfer Application to Support Resumption of Power Operations

ML23271A120
Person / Time
Site:	Palisades
Issue date:	09/28/2023
From:	Noval W Holtec Decommissioning International
To:	Justin Poole Office of Nuclear Reactor Regulation, Document Control Desk
Shared Package
ML23271A119	List: PNP 2023-026, Pre-Submittal Meeting Presentation - Palisades Nuclear Plant License Transfer Application to Support Resumption of Power Operations
References
HDI PNP 2023-026
Download: ML23271A120 (30)

Text

Krishna P. Singh Technology Campus, 1 Holtec Blvd., Camden, NJ 08104 Telephone (856) 797-0900 Fax (856) 797-0909 HDI PNP 2023-026 Page 1 of 2 September 28, 2023 Attn: Justin C. Poole Project Manager NRR/DOR/LPL I U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Palisades Nuclear Plant Docket No. 50-255 Renewed Facility Operating License No. DPR-20

Subject:

Pre-Submittal Meeting Presentation - Palisades Nuclear Plant License Transfer Application to Support Resumption of Power Operations Holtec Decommissioning International (HDI) is submitting the presentation material for the October 3, 2023 public meeting between the NRC and Holtec on Palisades Nuclear Plant License Transfer Application to Support Resumption of Power Operations. contains a publicly available non-proprietary presentation. Enclosure 2 contains confidential and proprietary information for the closed session of the meeting. Enclosure 2 information will be submitted separately from this letter. HDI requests that Enclosure 2 be withheld from public disclosure in accordance with 10 CFR 2.390 and an Affidavit is also included with this letter as Enclosure 3.

If you have any questions or require any additional information, please contact Michael Schultheis, Manager of Regulatory Assurance, Palisades Nuclear Plant at (269)764-2049.

Respectfully, William Noval Director of Regulatory Affairs Holtec Decommissioning International Enclosure(s):

1. Pre-Submittal Meeting Presentation - Palisades Nuclear Plant License Transfer Application to Support Resumption of Power Operations - Non-Proprietary Information

2. Pre-Submittal Meeting Presentation (closed session) - Palisades Nuclear Plant License Transfer Application to Support Resumption of Power Operations - Proprietary Information

3. Affidavit Pursuant To 10 CFR 2.390 HOLTE C ___________

DECOMM ISSIONING INTERNATIONAL William Noval Digitally signed by William Noval Date: 2023.09.28 11:49:55

-04'00'

HDI PNP 2023-026 Page 2 of 2 cc:

USNRC Director - Nuclear Material Safety and Safeguards (NMSS)

USNRC Director - Division of Operating Reactor Licensing USNRC Deputy Director - Division of Operating Reactor Licensing USNRC Region III - Regional Administrator USNRC Project Manager, NMSS - PNP

HDI PNP 2023-026 ENCLOSURE 1 HDI PNP 2023-026 Pre-Submittal Meeting Presentation - Palisades Nuclear Plant License Transfer Application to Support Resumption of Power Operations - Non-Proprietary Information

www.holtec.com Pre-Submittal Meeting Palisades Nuclear Plant License Transfer Application to Support Resumption of Power Operations October 3, 2023 HOLTEC INTERNATIONAL

www.holtec.com l Page 2 Meeting Agenda

Introductions

Purpose & Outcome Background & Facility Status Update Description of Proposed Transfer Technical Qualifications Overview Financial Qualifications Overview Schedule Questions / Comments HOLTEC INTERNATIONAL

www.holtec.com l Page 3

Introductions

U.S Nuclear Regulatory Committee (NRC) Staff Holtec Decommissioning International, LLC (HDI)

Jean Fleming - Holtec International, Vice President of Licensing, Regulatory Affairs & PSA Michael Schultheis - HDI, Manager of Regulatory Assurance for Palisades & Big Rock Point Jim Miksa - HDI, Regulatory Assurance Engineer for Palisades &

Big Rock Point Jason Day - HDI, General Counsel Troy Geauthreaux - HDI, Chief Financial Officer HOLTEC INTERNATIONAL

www.holtec.com l Page 4 Purpose & Outcome

Purpose:

• Present overview of direct transfer of Palisades operational authority to newly-established Holtec-owned operator

• Introduce expected details of the license transfer application, implementation schedule, and coordination with other restart submittals Outcome:

• Solicit NRC Staff questions and comments ahead of submittal

• Provide information to support NRC resource allocation HOLTEC INTERNATIONAL

www.holtec.com l Page 5

Background

Prior owner (Entergy) shut down and defueled Palisades May 20, 2022 Entergy submitted 50.82(a)(1) certifications June 13, 2022 Entergy implemented Permanently Defueled Technical Specifications June 15, 2022 Holtec acquired Palisades June 28, 2022 pursuant to NRC approval of HDIs qualifications to carry out decommissioning under the shutdown licensing basis HDI is seeking NRC approval to reinstated the Power Operations License Basis ("POLB") and to resume full-power operations HOLTEC INTERNATIONAL

www.holtec.com l Page 6 Facility Status Update Restart is a separate project from decommissioning and has not impacted decommissioning work to date HDI has completed activities to place the facility in safe layup condition HDI has not performed any major dismantlement or component removal to date Spent fuel is still located in the spent fuel pool HDI maintains safety and Quality Assurance (QA) records HOLTEC INTERNATIONAL

www.holtec.com l Page 7 Proposed Transfer of Operational Authority HDI Palisadess operational authority is limited to decommissioning activities per the license transfer order In parallel to reinstatement of the POLB, Holtec intends to transfer operating authority from HDI to a new Holtec-owned operator, tentatively referred to as "OPCO" NRC approval of the transfer under 10 CFR 50.80 will provide an opportunity to review technical and financial qualifications for full-power operations HOLTEC INTERNATIONAL

www.holtec.com l Page 8 Current Org Structure Holtec International Holtec Power, Inc.

Nuclear Asset Management Company, LLC

• Holtec Decommissioning International, LLC Holtec Palisades, LLC Licensed Operator Licensed Owner

• Authorized to carry out decommissioning activities All ownership 100%

HOLTEC INTERNATIONAL

www.holtec.com l Page 9 Proposed Org Structure Holtec International Holtec Power, Inc.

Nuclear Asset Management Company, LLC OPCO Holtec Palisades, LLC Licensed Operator Licensed Owner Authorized operator under reinstated POLB All ownership 100%

HOLTEC INTERNATIONAL

www.holtec.com l Page 10 What is not changing Holtec Palisades remains licensed owner Financially responsible party Holds Decommissioning Trust Fund Party to power purchase agreements Holds NEIL/ANI policies for Palisades (have not been stepped down yet for decommissioning)

No changes expected for Big Rock Point All companies ultimately owned by Holtec International No Foreign Ownership, Control, or Domination HOLTEC INTERNATIONAL

www.holtec.com l Page 11 What is changing Site personnel expected to be transferred to OPCO Palisades staffing to return to operational levels/qualifications Site organization to report to senior management with extensive operational experience Holtec Palisades will reimburse OPCO for its costs under operator agreement Holtec International will provide additional support consistent with operational needs (financial and corporate/home office)

HOLTEC INTERNATIONAL

www.holtec.com l Page 12 OPCO Senior Leadership President: Kelly Trice

Decades of executive experience in nuclear industry CNO: Richard Burroni

Former Site VP of Indian Point; 40+ years in nuclear operations Licensing and Regulatory VP: Jean Fleming

Former Licensed SRO and naval officer; Holtec regulatory VP over NRC compliance for decommissioning, cask certificates, SMR design Site VP: Mike Mlynarek

Incumbent Entergy Site VP; at Palisades since 1988, former Licensed SRO and SM, Oversight Mgr, INPO Loanee -

Operations HOLTEC INTERNATIONAL

www.holtec.com l Page 13 Site Organization Key site directors and managers remain from operational period Return to full operational staffing levels ~500 FTEs Qualifications and training pursuant to reinstated POLB RO/SRO training - long lead action, already underway, not expected to need exemptions from Part 55 Following the transfer, OPCO will implement operational programs in place prior to shutdown HOLTEC INTERNATIONAL

www.holtec.com l Page 14 Corporate Support Holtec International Executive Committee will exercise typical oversight and will provide strategic direction Holtec International will provide shared financial, IT, and HR services for Palisades (service company support)

Some limited staff augmentation and contractor support OPCO will ultimately be responsible for all licensed activities and day-to-day nuclear safety HOLTEC INTERNATIONAL

www.holtec.com l Page 15 Technical Qualifications Current site organization consists of ~220 personnel, primarily incumbent operational staff Application will describe training and qualification program and position requirements consistent with reinstated POLB Full staffing, training, and requalification will take place in parallel to NRCs review of the transfer application HOLTEC INTERNATIONAL

www.holtec.com l Page 16 Financial Qualifications

Holtec Palisades has already entered into power purchase agreements for the full facility output

Tax credits under Inflation Reduction Act bolster operational revenues

Significant positive net income during 5-year look-ahead period HOLTEC INTERNATIONAL

www.holtec.com l Page 17 Financial Qualifications (cont.)

Upon license transfer, decommissioning funding will return to normal operational compliance paradigm (10 CFR 50.75)

No replenishment of trust fund expected given deferral of reimbursement for most decommissioning expenses No impact to current Big Rock Point decommissioning or spent fuel management funding HOLTEC INTERNATIONAL

www.holtec.com l Page 18 Tentative Schedule Submittal October 2023 Approval Requested November 2024 Anticipated Transfer Date (reinstatement of operational tech specs)

August 2025 HOLTEC INTERNATIONAL

www.holtec.com l Page 19 Questions / Comments NRC Staff Questions or Comments?

HOLTEC INTERNATIONAL

www.holtec.com l Page 20 Thank You Krishna P. Singh Technology Campus 1 Holtec Boulevard Camden, NJ 08104 Tel: (856) 797-0900 www.holtec.com HOLTEC INTERNATIONAL

HDI PNP 2023-026 ENCLOSURE 2 HDI PNP 2023-026 Pre-Submittal Meeting Presentation - Palisades Nuclear Plant License Transfer Application to Support Resumption of Power Operations (CLOSED SESSION)

Proprietary Information WITHHOLD FROM PUBLIC DISCLOSURE UNDER 10 CFR 2.390

HDI PNP 2023-026 ENCLOSURE 3 HDI PNP 2023-026 Withhold Information Per 10 CFR 2.390 Affidavit

U.S. Nuclear Regulatory Commission ATTN: Document Control Clerk Non-Proprietary Attachment to HDI PNP 2023-026 AFFIDAVIT PURSUANT TO 10 CFR 2.390 I, William Noval, being duly sworn, depose and state as follows:

1) I have reviewed the information provided in letter HDI PNP 2023-026, Pre-Submittal Meeting Presentation - Palisades Nuclear Plant License Transfer Application to Support Resumption of Power Operations, in which certain information is sought to be withheld, and I am authorized to apply for its withholding.

2) The information sought to be withheld is Enclosure 2 in its entirety. This confidential business information documents Holtec International' s (Holtec) privileged information, proprietary information and has specific information related to Holtec's business. This information included in the document is proprietary to Holtec International.

3) In making this application for withholding of proprietary information of which it is the owner, Holtec relies upon the exemption from disclosure set forth in the Freedom of Information Act ("FOIA"), 5 USC Sec. 552(b)(4) and the Trade Secrets Act, 18 USC Sec. 1905, and NRC regulations 10 CFR Part 9.17(a)( 4),

2.390(a)(4), and 2.390(b)(l) for "trade secrets and commercial or financial information obtained from a person and privileged or confidential" (Exemption 4 ). The material for which exemption from disclosure is here sought is all "confidential commercial information", and some portions also qualify under the narrower definition of "trade secret", within the meanings assigned to those terms for purposes ofFOIA Exemption 4 in, respectively, Critical Mass Energy Project v. Nuclear Regulatory Commission, 975F2d871 (DC Cir. 1992),_and Public Citizen Health Research Group v. FDA, 704F2dl280 (DC Cir. 1983).

4) Some examples of categories of information which fit into the definition of proprietary information are:

a. Information that discloses a process, method, or apparatus, including supporting data and analyses, where prevention of its use by Holtec competitors without license from Holtec constitutes a competitive economic advantage over other companies; Page 1 of 5

U.S. Nuclear Regulatory Comm ission ATTN: Document Control Clerk Non-Proprietary Attachment to HD! PNP 2023-026 AFFIDAVIT PURSUANT TO 10 CFR 2.390

b. Information which, if used by a competitor, would reduce its expenditure of resources or improve its competitive position in the design, manufacture, shipment, installation, assurance of quality, or licensing of a similar product.

c. Information which reveals cost or price information, production, capacities, budget levels, or commercial strategies of Holtec, its affiliates, customers, or its suppliers;

d. Information which reveals aspects of past, present, or future Holtec customer-funded development plans and programs of potential commercial value to Holtec;

e. Information which discloses patentable subject matter for which it may be desirable to obtain patent protection.

The information sought to be withheld is considered to be proprietary for the reasons set forth in paragraphs 4.a, 4.b and 4.c. above.

5) The information sought to be withheld is being submitted to the NRC in confidence. The information (including that compiled from many sources) is of a sort customarily held in confidence by Holtec, and is in fact so held. The information sought to be withheld has, to the best of my knowledge and belief, consistently been held in confidence by Holtec. No public disclosure has been made, and it is not available in public sources. All disclosures to third parties, including any required transmittals to the NRC, have been made, or must be made, pursuant to regulatory provisions or proprietary agreements which provide for maintenance of the information in confidence. Its initial designation as proprietary information, and the subsequent steps taken to prevent its unauthorized disclosure, are as set forth in paragraphs ( 6) and (7) following.

6) Initial approval of proprietary treatment of a document is made by the manager of the originating component, the person most likely to be acquainted with the value and sensitivity of the information in relation to industry knowledge.

Access to such documents within Holtec is limited on a "need to know" basis.

Page 2 of 5

U.S. Nuclear Regulatory Commission A TIN: Document Control Clerk Non-Proprietary Attachment to HD! PNP 2023-026 AFFIDAVIT PURSUANT TO 10 CFR 2.390

7) The procedure for approval of external release of such a document typically requires review by the staff manager, project manager, principal scientist or other equivalent authority, by the manager of the cognizant marketing function

( or his designee ), and by the Legal Operation, for technical content, competitive effect, and determination of the accuracy of the proprietary designation.

Disclosures outside Holtec are limited to regulatory bodies, customers, and potential customers, and their agents, suppliers, and licensees, and others with a legitimate need for the information, and then only in accordance with appropriate regulatory provisions or proprietary agreements.

8) The information classified as proprietary was developed and compiled by Holtec at a significant cost to Holtec. This information is classified as proprietary because it contains detailed descriptions of analytical approaches and methodologies not available elsewhere. This information would provide other parties, including competitors, with information from Holtec's technical database and the results of evaluations performed by Holtec. A substantial effort has been expended by Holtec to develop this information. Release of this information would improve a competitor's position because it would enable Holtec's competitor to copy our technology and offer it for sale in competition with our company, causing us financial injury.

9) Public disclosure of the information sought to be withheld is likely to cause substantial harm to Holtec's competitive position and foreclose or reduce the availability of profit-making opportunities. The information and its commercial value extends beyond the original development cost. The value of the technology base goes beyond the extensive physical database and analytical methodology, and includes development of the expertise to determine and apply the appropriate evaluation process.

The research and development comprise a substantial investment of time and money by Holtec.

Page3of5

U.S. Nuclear Regulatory Commission A TIN: Document Control Clerk Non-Proprietary Attachment to HDI PNP 2023-026 AFFIDAVIT PURSUANT TO 10 CFR 2.390 The precise value of the expertise to devise an evaluation process and apply the correct analytical methodology is difficult to quantify, but it clearly is substantial.

Holtec's competitive advantage will be lost if its competitors are able to use the results of the Holtec experience to normalize or verify their own process or if they are able to claim an equivalent understanding by demonstrating that they can arrive at the same or similar conclusions.

The value of this information to Holtec would be lost if the information were disclosed to the public. Making such information available to competitors without their having been required to undertake similar expenditure of resources would unfairly provide competitors with a windfall, and deprive Holtec of the opportunity to exercise its competitive advantage to seek an adequate return on its large investment in developing these very valuable tools.

Page 4 of 5

U.S. Nuclear Regulatory Commission ATTN: Document Control Clerk Non-Proprietary Attachment to HD! PNP 2023-026 AFFIDAVIT PURSUANT TO 10 CFR 2.390 STATE OF NEW JERSEY )

)

ss:

COUNTY OF CAMDEN

)

William Noval, being duly sworn, deposes and says:

That he has read the foregoing affidavit and the matters stated therein are true and correct to the best of her knowledge, information, and belief.

Executed at Camden, New Jersey, this 28th day of September 2023.

//

Holtec Decommissioning International Director of Regulatory Affairs Subscribed and sworn before me this~~ day of _s; e.pte.rD bes-2023

~~

CL f o_~

LAUREN A. PAGAN Notary Public, State of New Jersey My Commission Expires 9/13/'2026 Page5of5