ML23278A100
| ML23278A100 | |
| Person / Time | |
|---|---|
| Site: | Kewaunee  |
| Issue date: | 10/05/2023 |
| From: | Hazelhoff A Kewaunee Solutions |
| To: | Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation, Document Control Desk |
| Shared Package | |
| ML23278A098 | List: |
| References | |
| EPID L-2023-LLE-0008, KS-2023-020 | |
| Download: ML23278A100 (7) | |
Text
ATTACHMENT 3 CONTAINS PROPRIETARY INFORMATION. WITHHOLD FROM PUBLIC DISCLOSURE PURSUANT TO 10 CFR 2.390 AND 10 CFR 9.17. UPON SEPARATION OF ATTACHMENT 3, THIS LETTER IS UNCONTROLLED.
~
KEWAUNEE SOLUTIONS
10 CFR 50.12 10 CFR 50.82 10 CFR 50.75
October 5, 2023 KS-2023-020
U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001
Kewaunee Solutiorts, Inc.
Facility Operating License No. DPR-43 NRC Docket Nos. 50-305 and 72-64
Subject:
Response to Request for Additional Information (RAI) Application for Kewaunee Solutions (KS) Site Restoration Activities (EPID NO. L-2023-LLE-0008)
References:
- 1. Letter from G. P. van Noordennen (EnergySolutions, LLC) to USNRC, "Notification of Amended Post-Shutdown Decommissioning Activities Report (Revision 2) for Kewaunee Power Station," dated May 13, 2021 [ML21145A083]
- 2. Letter from Amy C. Hazelhoff (Kewaunee Solutions, Inc.) to USNRC, "Request for Exemptions from 10 CFR 50.82(a)(8)(i)(A) and 50.75(h)(l)(iv) for Site Restoration Activities," dated March 29, 2023 [ML23093A031]
- 3. Letter from USNRC to Amy C. Hazelhoff, "Kewaunee Power Station - Exemption from Title 10 of the Code of Federal Regulations Part 50.82 and 50.75 for Site Restoration Activities (EPID NO. L-2023-LLE-0008)," dated August 29, 2023 [ML23222A152]
- 4. Letter from Amy C. Hazelhoff (Kewaunee Solutions, Inc.) to USNRC, "Decommissioning Fund Status Report - Kewaunee Power Station" dated March 30, 2023 [ML23089A304]
In Reference 2, Kewaunee Solutions, Inc. (Kewaunee Solutions; KS) requested an exemption from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(l)(iv) for Kewaunee Power Station (KPS) to allow KS to use funds from the KPS decommissioning trust fund (Trust) without prior notice for site restoration activities consistent with the KPS Post-Shutdown Decommissioning Activities Report (PSDAR) (Reference I).
Kewaunee Power Station, N490 Highway 42, Kewaunee, WI 54216 ATTACHMENT 3 CONTAINS PROPRIETARY INFORMATION. WITHHOLD FROM PUBLIC DISCLOSURE PURSUANT TO 10 CFR 2.390 AND 10 CFR 9.17. UPON SEPARATION OF ATTACHMENT 3, THIS LETTER IS UNCONTROLLED.
Kewaunee Solutions, Inc. KS-2023-020 NRC Docket Nos. 50-305 and 72-64 Page 2 of2
In Reference 3, the NRC requested additional information (RAJ) necessary to perform an exemption analysis for use of excess Trust funds for site restoration activities of KPS. of this letter provides the KS response. Attachment 3 contains confidential commercial and financial information. KS requests that Attachment 3 be withheld from public disclosure pursuant to 10 CFR 2.390 and IO CFR 9.17 as described in the Affidavit in Attachment 2.
This letter contains no regulatory commitments. If you have any questions or require additional information, please contact Mr. Joseph R. Lynch at 508-728-1421.
I declare under penalty of perjury that the forgoing is true and correct.
Executed on the 5th day of October 2023.
Sincerely, ff Digitally signed by Amy C Amy C Hazel ho ~:::.'~~~3100511*53'44-04'00*
Amy C. Hazelhoff Senior Vice President Regulatory Affairs EnergySolutions, LLC
Attachment:
- 1. Response to Request for Additional Information Application for Kewaunee Solutions Site Restoration Activities
- 2. Proprietary Information Affidavit
- 3. Table II. Decommissioning Funding Status Report for Kewaunee Solutions, Inc.: Annual Cash Flow Analysis Starting January 1, 2023, through End of Decommissioning (Expanded)
(Attachment contains CONFIDENTIAL COMMERCIAL AND FINANCIAL INFORMATION).
cc: Regional Administrator, Region III
NRC Project Manager - Kewaunee Power Station Kewaunee Solutions, Inc. KS-2023-020 NRC Docket Nos. 50-305 and 72-64 Page 1 of 5
ATTACHMENT 1 RESPONSE TO REQUEST FOR ADDITIONAL INFORMATION APPLICATION FOR KEWAUNEE SOLUTIONS SITE RESTORATION ACTIVITIES
In letter dated August 29, 2023 (Reference 3), the NRC staff requested additional information (RAI) regarding KPS Exemption Request, KS-2023-005 - "Request for Exemptions from 10 CFR 50.82(a)(8)(i)(A) and 50.75(h)(l)(iv) for Site Restoration Activities" (Reference 2).
RAl#l
In assessing the adequacy and validity of cash flow data provided in the Post Shutdown Decommissioning Activities Report (PSDAR) for purposes of evaluating the request for exemption for use of the Kewaunee Solution's decommissioning trust fund (DTF) for site restoration activities, the NRC staff observed significant differences in total, annual expenditures, or "withdrawals," between the PSDAR submittal (Table lB-1) and the DTF Status Report submittal.
The examples illustrate significant differences in expenditure and cash flow data as reported in the May 13, 2021, PSDAR, compared to the more recent March 30, 2023, DTF Status Report, and thus reflect the NRC staffs concern that the PSDAR data on which the NRC is to base its analysis on Kewaunee Solution's request for exemption from 10 CFR 50.82(a)(8)(i)(A), to allow use of funds from the KPS DTF for site restoration activities, is dated, and thus does not provide timely information necessary for its analysis.
Request:
To perform an exemption analysis for use of excess DTF funds for site restoration activities, NRC staff requests Kewaunee Solutions provide a revised license termination, SFM, and site restoration plans, including forecasted cash flow expenditure data, that reflect Kewaunee Solution's current assumptions about the decommissioning method, decommissioning activities, and the schedule of such activities for KPS. Based on information provided in Kewaunee Solution's March 30, 2023, DTF Status Report, such revisions should result in modifications to year-by-year forecasted expenditure data as presented in the current PSDARfor KPS (see Table JB-1 of the PSDAR), and will allow the NRC to perform its exemption request analysis using current forecasts of future license termination, SFM, and site restoration activities, and anticipated withdrawals from the KPS DTF.
Kewaunee Solutions, Inc. KS-2023-020 NRC Docket Nos. 50-305 and 72-64 Page 2 of 5
Kewaunee Solutions Response to RAI #1
Kewaunee Solutions, Inc. (KS) requested an exemption from IO CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(l)(iv) for Kewaunee Power Station (KPS) to allow KS to use funds from the KPS decommissioning trust fund (Trust) without prior notice for site restoration activities. The basis for demonstrating adequate funding is available for this request is provided in KS's March 30, 2023, DTF Status Report (Reference 4).
provides an expanded Table II. Decommissioning Funding Status Report for Kewaunee Solutions, Inc.: Annual Cash Flow Analysis Starting January 1, 2023 through End of Decommissioning from the DTF Status Report. Kewaunee Solutions requests that Attachment 3 be withheld from public disclosure pursuant to 10 CFR 2.390 and 10 CFR 9.17. provides a breakdown of License Termination, Spent Fuel Management, Site Restoration costs, and Total forecasted expenditure data based on the decommissioning DECON method, and the current schedule of decommissioning activities for KPS.
The following information is intended to provide clarity of the expanded information in Table II of the KS DTF Status Report (Reference 4). In addition, it is important to identify the differences noted by NRC between the Table lB-1 cash flow data in the PSDAR (Reference 1) and the DTF (Reference 4).
- Both the PSDAR and the DTF Status Report cash flow analyses include License Termination, Spent Fuel Management, as well as Site Restoration costs. Inclusion of the Site Restoration cost in the DTF Status Report is more clearly shown in the expanded Table II provided in Attachment 3. KS acknowledges that this may have been confusing because use of the DTF for site restoration expenses has not been approved by NRC and is the subject of this Exemption Request.
- While the expanded Table II provided in Attachment 3 shows Site Restoration expenses in 2023, no such costs has been spent to date for the scope of work performed at KPS.
- The estimated Site Restoration costs in the PSDAR were $54.8M (in 2021 Dollars). The current estimated Site Restoration costs in the DTF Status Report (in 2023 Dollars) is
$38.2M which is a $16.6M reduction. This primarily is due to updated information resulting in the following Site Restoration cost reductions:
- During detailed planning it became apparent that the demolition of the Turbine Building, Administration Buildings, Intake & Discharge Structures and Other Clean Buildings, and the demolition of Underground Pipe & Utilities and Misc Yard Strnctures and Foundations would be less than the PSDAR estimate.
- The site generally is in better condition than originally assumed making the estimated costs associated with Backfill and Grading and Site Restoration less than the PSDAR estimate.
Kewaunee Solutions, Inc. KS-2023-020 NRC Docket Nos. 50-305 and 72-64 Page 3 of5
- Phase 1 structures were characterized as low-level radioactive waste as a conservative approach to ensure that no radioactive waste would be disposed of in local landfills or recycle facilities. After evaluating the radiological risk, cost of free release surveys and schedule benefits of shipping Phase 1 demolition debris as radioactive waste, the project determined it was more prudent to dispose of the Phase 1 demolition debris as radioactive waste.
- The result of the items above will also reduce Project Management and undistributed costs.
- The DTF Status Report cash flow analysis (with Site Restoration costs included) shows a
$22.6M DTF balance in 2055. While this is a reduction from the $66M shown in the PSDAR, it also represents current project cost/schedule information and demonstrates the DTF fully supports site restoration expenses.
- The PSDAR Table IB-1 was developed in 2021 Dollars while the DTF Status Report numbers are in 2023 Dollars.
- The expanded Table II in Attachment 3, Column 4, Remaining Spent Fuel Management Expenditures (Net of DOE Reimbursements) projects a DOE reimbursement in the 2026 timeframe which is an update from the PSDAR cash flow analysis and is based on updated forecasts.
- The expanded Table II in Attachment 3 provides a Column 6, Taxes on Unrealized Gains, which explains the difference between the $727.6M, Remaining Decommissioning Estimated Costs in Table I to the DTF Status Report and the total Withdrawals of
$794.5M in the Table II provided in Reference 4.
Kewaunee Solutions, Inc. KS-2023-020 NRC Docket Nos. 50-305 and 72-64 Page4 of5 ATTACHMENT 2 PROPRIETARY INFORMATION AFFIDAVIT
Affidavit of Amy C. Hazelhoff, Senior Vice President Regulatory Affairs, EnergySolutions, LLC.
Kewaunee Solutions, Inc., (KS) is providing information in support of the Kewaunee Power Station Post-Shutdown Decommissioning Activities Report (Revision 2) dated May 13, 2021 (Reference 1) [ML2 l 145A083] and the Request for Additional Information letter dated August 29, 2023 (Reference 3) [ML23222A152]. Attachment 3 of this letter contains financial information, including proprietary aspects to the decommissioning of KPS, which constitute proprietary commercial and financial information, belonging to KS, that should be held in confidence by the NRC pursuant to the policy reflected in 10 CFR 2.390 and 10 CFR 9.17.
Release of this information would cause irreparable harm to the competitive position of KS. The basis for this declaration is:
I. This information is owned and maintained as proprietary by KS, II. This information is routinely held in confidence by KS, and not disclosed to the public, III. This information is being requested to be held in confidence by the NRC by this petition, IV. This information is not available in public sources, V. This information would cause substantial harm to KS if it were released publicly, and VI. The information to be withheld was transmitted to the NRC in confidence.
I declare under penalty of perjury that the foregoing is true and correct.
Executed On October 5, 2023
Amy C. Hazelhoff Senior Vice President, Regulatory Affairs Energy Solutions Kewaunee Solutions, Inc. KS-2023-020 NRC Docket Nos. 50-305 and 72-64 Page 5 of5
ATTACHMENT 3 CONTAINS PROPRIETARY INFORMATION. WITHHOLD FROM PUBLIC DISCLOSURE PURSUANT TO 10 CFR 2.390 AND 10 CFR 9.17. UPON SEPARATION OF ATTACHMENT 3, THIS LETTER 15 UNCONTROLLED.
ATTACHMENT3 Table II. Decommissioning Funding Status Report for Kewaunee Solutions, Inc.: Annual Cash Flow Analysis Starting January 1, 2023, through End of Decommissioning (Expanded)
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