ML23291A080

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Issuance of Conforming Amendments Regarding Direct Transfer of DPR-39 and DPR-48 Facility Operating Licenses from Zionsolutions, LLC to Constellation Energy Generation LLC
ML23291A080
Person / Time
Site: Zion  File:ZionSolutions icon.png
Issue date: 11/16/2023
From: Amy Snyder
Reactor Decommissioning Branch
To: Rhoades B, Sauger J
Constellation Energy Generation, Constellation Nuclear, Energy Solutions
References
Download: ML23291A080 (29)


Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 November 16, 2023 Mr. David P. Rhoades, Senior Vice President Constellation Energy Generation, LLC President and Chief Nuclear Officer Constellation Nuclear 4300 Winfield Road Warrenville, IL 60555 Mr. John Sauger, President and Chief Nuclear Officer Reactor Decontamination and Decommissioning EnergySolutions, LLC 121 West Trade Street, Suite 2700 Charlotte, NC 28202

SUBJECT:

ISSUANCE OF CONFORMING AMENDMENTS REGARDING DIRECT TRANSFER OF DPR-39 AND DPR-48 FACILITY OPERATING LICENSES FROM ZIONSOLUTIONS, LLC TO CONSTELLATION ENERGY GENERATION, LLC (EPID-L-2023-LLN-0003)

Dear Mr. Rhoades and Sauger:

By Order dated November 26, 2019 (ML19228A130), as supplemented (Agencywide Document Access and Management System (ADAMS) Accession No. ML20259A466 Pkg, ML21110A520 Pkg, ML21229A024 Pkg, and ML22308A175 Pkg), the U.S. Nuclear Regulatory Commission (NRC) approved the direct transfer of Facility Operating Licenses (FOLs), No. DPR-39 and DRP-48 and the associated generally licensed on-site Independent Spent Fuel Storage Installation (ISFSI) for the Zion Nuclear Power Station, Unit No. 1 and Unit No. 2 (ZNPS or Zion) from ZionSolutions, LLC (ZS) to Exelon Generation Company, LLC (EGC). This Order also approved the associated conforming amendments. Before the transfers can occur, the decommissioning of the Zion site outside the boundary of the on-site ISFSI must be completed, among other things. A copy of the safety evaluation (SE) (ML19228A131) related to the application was provided with the Order.

Since the November 26, 2019, Order approving the direct license transfer for the Zion Licenses, EGC underwent an indirect license transfer by Order which resulted in a new company, Constellation Energy Generation, LLC (CEG) that would be responsible for the Zion site after decommissioning outside the boundary of the on-site ISFSI was complete. Specifically, by Order dated November 16, 2021 (ML21277A192), the NRC approved the license transfer application dated February 25, 2021 (ML21057A273), as supplemented, and the associated conforming amendments that was submitted by EGC on behalf of itself and Exelon Corporation and others. The application included the indirect transfer of the Zion FOLs to include the general license for the on-site ISFSI from EGC to CEG only to the extent that the Licenses for Zion were held by the Applicant or the Licensed Subsidiaries at the time of the indirect transfer. The conforming amendments were issued except for the Zion conforming amendments. The Zion

D.P. Rhoades, et al. conforming amendments were not issued because the decommissioning of the Zion site outside the boundary of the on-site ISFSI was not completed as stipulated as a condition1.

In addition, the NRC consented to an indirect transfer of control of FOL Nos. DPR-39 and DPR-48 for Zion, and the general license for the on-site ISFSI, along with some other licensees (collectively, the Licenses), separate from the indirect license transfer noted above, to the extent that the Licenses may be held by the Applicant or the Licensed Subsidiaries at the time of the indirect transfer. Specifically, the NRC consented to support a proposed stock purchase agreement dated November 16, 2021. On page 2 of the Attachment to ML22024A490 it states:

  • Exelon Generation Company, LLC (referred to as "SpinCo" in the LTA) will be renamed "Constellation Energy Generation, LLC." It will remain the same Pennsylvania limited liability company as today, with a name change.
  • Constellation Energy Generation, LLC will be a wholly owned subsidiary of Constellation Energy Corporation (referred to as "HoldCo" in the LTA), a Pennsylvania corporation. See Table 1 below for information regarding directors and principal officers of Constellation Energy Corporation.

Table 1 provided general corporate information regarding Constellation Energy Corporation, including the state of incorporation and address for Constellation Energy Corporation; and the names, addresses, and citizenship of the directors and principal officers of Constellation Energy Corporation that would be associated with the Zion licenses.

In addition, in a letter (ML21274A085) to the NRC dated September 29, 2021, it was stated that SpinCo is a placeholder until the new name for Exelon Generation is announced, and following the Spin Transaction, Exelon Generation will be the same Pennsylvania limited liability company with only a change in name to reflect the separation from Exelon Corporation.

On May 2, 2022, the NRC issued an Order (ML22076A008 Pkg) approving the proposed indirect license transfers and conforming amendments that included the Zion Licenses that were subject to condition no. 22 in the Order to address the pending Zion direct license transfer condition as described in the November 26, 2019, Direct License Transfer Order.

By letter dated November 8, 2023 (ML23286A304 Pkg), the NRC terminated the Zion Licenses outside the boundary of the on-site ISFSI. This action is referred to as the Zion Partial Site Release (PSR). Accordingly, the NRC considers the reactor facility decommissioning and associated license termination activities for the Zion site outside the boundary of the on-site ISFSI, to be complete, which fulfills the decommissioning conditions of the Direct License Transfer Order and the two Indirect License Transfer Orders discussed above.

By letter dated November 8, 2023 (ML23312A175), CEG informed the NRC Director of the Office of Nuclear Material Safety and Safeguards that all required regulatory approvals necessary to close the transfers had been received and that the transfer is scheduled to close on November 16, 2023. CEG stated that in support of this closure, the NRC is requested to 1 If EGC does not hold Facility Operating License Nos. DPR-39 and DPR-48 for Zion, Units 1 and 2, respectively, and the general license for the Zion ISFSI at the time of the closing of the spin transaction, then these licenses shall not be transferred to SpinCo as part of the spin transaction.

2 If EnergySolutions does not indirectly hold Facility Operating License Nos. DPR-39 and DPR-48 for ZNPS, Units 1 and 2, respectively, and the general license for the ZNPS ISFSI, at the time of the closing of the proposed indirect license transfer, then the ZNPS licenses shall not be transferred as part of the indirect license transfer.

D.P. Rhoades, et al. issue the conforming license amendments with an effective date of November 16, 2023. Also, as a condition of the Direct License Transfer Order, proof of the insurance required by 10 CFR 140.12, Amount of financial protection required for other reactors, and Paragraph (w) of 10 CFR 50.54, Conditions of Licenses was received by letter dated October 31, 2023 (ML23304A271). The American Nuclear Insurers letter of October 13, 2023 (Enclosure 1 to the October 31, 2023, letter), the Nuclear Electric Insurance Limited letter of October 23, 2023 (Enclosure 2 to the October 31, 2023, letter), and the CEG letter of November 8, 2023, satisfy the conditions required by the Direct License Transfer Order relative to insurance and indemnity coverage of the on-site ISFSI.

Accordingly, the NRC has issued the enclosed Amendment No 192 to Facility Operating License DPR-39 (Enclosure 1) and Amendment No. 179 to DRP-48 (Enclosure 2) for Zion ISFSI. These conforming amendments reflects the two indirect transfers of the Zion Licenses, noted above, from EGC to CEG as well as the direct transfer of the Zion Licenses, noted above, from ZS to CEG. The approved conforming amendments were changed by replacing EGC with CEG, as the licensee, now that ZS has completed its decommissioning of the Zion site outside the boundaries of the on-site ISFSI and the actions described in the associated License Termination Plan (LTP) have been completed. The completion of the Zion decommissioning outside the boundary of the on-site ISFSI (ML23286A306) and the name change of the licensee from ECG to CEG was evaluated in the NRC safety evaluations (ML19228A131, ML21277A248, ML22076A012, and, and ML23286A306) supporting termination of the Zion Licenses outside the boundary of the on-site ISFSI. contains a digitally signed copy of Amendment No. 15 to Indemnity Agreement No. B-59 for Zion pressurized water reactors, which is required in connection with the direct transfer of the Zion FOLs. Enclosure 2 of this letter provides digitally signed copies of the amendments to the indemnity agreements for the facilities. The NRC staff requests that applicable parties sign these amendments. Within 15 days, return a signed copy of each amendment to the NRCs Document Control Desk as proof of acceptance. Each party should keep a signed original copy of each applicable amendment for their records.

The NRC staff also notes that the licensing basis for the Zion site outside the boundary of the ISFSI includes the maintenance of certain programs to fulfill regulatory requirements and maintain functional responsibilities. Throughout decommissioning and license termination activities, the licensee has modified these programs as necessary, including terminating certain programs when the applicable concern is no longer relevant. These changes are implemented using the change processes specified for each type of program. The current status of many of these programs, including the Technical Specifications, final safety analysis report, quality assurance program, financial assurance requirements, emergency plan, security plan, and environmental monitoring programs, are included in the November 8, 2023, Safety Evaluation (ML23286A306) for the Zion PSR decision.

D.P. Rhoades, et al. In accordance with 10 CFR 2.390, Public inspections, exemptions, requests for withholding, a copy of this letter will be available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records component of NRCs ADAMS. ADAMS is accessible from the NRC website at https://www.nrc.gov/reading-rm/adams.html.

The Notice of Issuance of the conforming amendment will be included in the NRCs monthly Federal Register notice. Should you have any questions concerning this action, please contact me at (301) 415-6822 or via email at Amy.Snyder@NRC.gov.

Sincerely, Signed by Snyder, Amy on 11/16/23 Amy M. Snyder, Senior Project Manager Reactor Decommissioning Branch Division of Decommissioning, Uranium Recovery, and Waste Programs Office of Nuclear Material Safety and Safeguards Docket Nos.: 50-295, 50-304, & 72-1037 License Nos.: DPR-39 & 48

Enclosures:

1. Amendment Nos. 192 &179 to FOLs Nos. DPR-39 & 48
2. Amendment No. 15 to Indemnity Agreement No. B-59 cc: Zion Units 1 and 2 List Serv A. C. Hazelhoff, Energy Solutions J. T. Wheat, Energy Solutions D. R. Kenny, Constellation K. M. Nicely, Constellation B. A. Seawright, Constellation

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 ZIONSOLUTIONS, LLC DOCKET NO. 50-295 ZION NUCLEAR POWER STATION, UNIT 1 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 192 License No. DPR-39

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

A. The application for amendment by ZionSolutions, LLC (the licensee), dated July 24, 2018, as supplemented January 21, 2019, and February 8, 2019, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commissions regulations set forth in 10 CFR Chapter I; B. The facility will be maintained in conformity with the application, as amended, the provisions of the Act, and the regulations of the Commission; C. There is reasonable assurance: (1) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public; and (2) that such activities will be conducted in compliance with the Commission's 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 Commission's regulations and all applicable requirements have been satisfied.

2. Accordingly, the license is amended as follows:

The heading of the license is amended to change ZionSolutions, LLC to Constellation Energy Generation, LLC.

The footnote to Section 1.A. is hereby amended to read as follows: The Nuclear Regulatory Commission approved the transfer of the license from ZionSolutions, LLC to Constellation Energy Generation, LLC on November 26, 2019.

ENCLOSURE 1 i

Section 1.E. is hereby amended to read as follows: Constellation Energy Generation, LLC is technically and financially qualified to engage in the activities authorized by this operating license in accordance with the rules and regulations of the Commission; Section 1.F. is hereby amended to read as follows: Constellation Energy Generation, LLC has satisfied the applicable provisions of 10 CFR Part 140, Financial Protection Requirements and Indemnity Agreements, of the Commissions regulations; Section 2. is hereby amended to read as follows: Facility Operating License No.

DPR-39 issued to Constellation Energy Generation, LLC (CEG or the licensee) is hereby amended in its entirety to read as follows:

Section 2.A. is hereby amended to read as follows: This license applies to the Zion Nuclear Power Station, Unit 1, a pressurized, light water moderated and cooled reactor and associated electric generating equipment (the facility). The facility, comprised of the Independent Spent Fuel Storage Installation (ISFSI), is located on the west shore of Lake Michigan in Zion, Lake County, Illinois, approximately midway between Milwaukee, Wisconsin and Chicago, Illinois, as described in the Defueled Safety Analysis Report, as supplemented and amended.

Section 2.B. is hereby amended to read as follows: Subject to the conditions and requirements incorporated herein, the Commission hereby licenses CEG:

Section 2.C.(2) is hereby amended to read as follows: The Technical Specifications contained in Appendix A, as revised through Amendment No. 192, are hereby incorporated in the license. The licensee shall operate the facility in accordance with the Technical Specifications.

Section 2.C.(12) is hereby amended to read as follows: CEG shall provide the Director of the Office of Nuclear Reactor Regulation a copy of any application, at the time it is filed, to transfer (excluding grants of security interests or liens) from CEG to its direct or indirect parent, or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding ten percent (10%) of CEGs consolidated net utility plant, as recorded on CEG's books of account.

Section 2.C.(14) is hereby amended to read as follows: The decommissioning trust agreement for Zion, Unit 1, at the time the transfer of the unit to CEG is effected and thereafter, is subject to the following:

Section 2.C.(14)(b) is hereby amended to read as follows: With respect to the decommissioning trust fund, investments in the securities or other obligations of Constellation Energy Corporation or affiliates thereof, or their successors or assigns are prohibited. Except for investments tied to market indexes or other non-nuclear sector mutual funds, investment in any entity owning one or more nuclear power plants are prohibited.

Section 2.C.(15) is hereby amended to read as follows: CEG shall take all necessary steps to ensure that the decommissioning trust is maintained in accordance with the application for approval of the transfer of the Zion, Unit 1, license and the requirements ii

of the Order approving the transfer, and consistent with the safety evaluation supporting the Order.

Section 2.C.(17) is hereby amended to change every reference to ZionSolutions to CEG.

3. This license amendment is effective at the time the proposed direct license transfer is consummated and shall be implemented within 30 days from that date.

FOR THE U.S. NUCLEAR REGULATORY COMMISSION Signed by Anderson, Shaun on 11/16/23 Shaun M. Anderson, Chief Reactor Decommissioning Branch Division of Decommissioning, Uranium Recovery, and Waste Programs Office of Nuclear Material Safety and Safeguards

Attachment:

Changes to License DPR-39 and Technical Specifications Date of Issuance: November 16, 2023 iii

ATTACHMENT TO LICENSE AMENDMENT NO. 192 TO FACILITY OPERATING LICENSE NO. DPR-39 DOCKET NO. 50-295 Replace the following pages of the Facility Operating License with the attached revised pages.

The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

REMOVE INSERT 1 1 2 2 4 4 5 5 6 6 Replace the following pages of the Technical Specifications with the attached revised pages.

The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

REMOVE INSERT 4-1 4-1 4-2 4-2 Remove all pages of the Environmental Technical Specifications as that document has been deleted in its entirety.

iv

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 CONSTELLATION ENERGY GENERATION, LLC (Zion Nuclear Power Station, Unit 1)

DOCKET NO. 50-295 FACILITY OPERATING LICENSE License No. DPR-39

1. The Atomic Energy Commission (the Commission) having found that:

A. The application for license filed by the applicant* 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 and all required notifications to other agencies or bodies have been duly made; B. Construction of the Zion Nuclear Power Station, Unit 1 (the facility) has been substantially completed in conformity with Provisional Construction Permit No.

CPPR-58 and the application, as amended, the provisions of the Act and the rules and regulation of the Commission; C. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission; D. There is reasonable assurance (i) that the activities authorized by this operating license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the rules and regulations of the Commission; E. Constellation Energy Generation, LLC is technically and financially qualified to engage in the activities authorized by this operating license in accordance with the rules and regulations of the Commission; F. Constellation Energy Generation, LLC has satisfied the applicable provisions of 10 CFR Part 140, Financial Protection Requirements and Indemnity Agreements, of the Commissions regulations;

  • The Nuclear Regulatory Commission approved the transfer of the license from ZionSolutions, LLC to Constellation Energy Generation, LLC on November 26, 2019.

Amendment No. 192

G. The issuance of this license will not be inimical to the common defense and security or to the health and safety of the public; H. Operation of the facility during the period of this license in accordance with its terms and conditions will provide adequate protection of the environment during the period of this license; I. After weighing the environmental, economic, technical and other benefits of the facility against environmental costs and considering available alternatives, the issuance of Amendment No. 3 to Facility Operating License No. DPR-39 (subject to the conditions for protection of the environment set forth herein) is in accordance with 10 CFR Part 50, Appendix D, of the Commission's regulations and all applicable requirements of said Appendix D have been satisfied; J. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accordance with the Commission's regulations in 10 CFR Parts 30, 40 and 70, including 10 CFR Sections 30.33, 40.32, 70.23 and 70.31.

2. Facility Operating License No. DPR-39 issued to Constellation Energy Generation, LLC (CEG or the licensee) is hereby amended in its entirety to read as follows:

A. This license applies to the Zion Nuclear Power Station, Unit 1, a pressurized, light water moderated and cooled reactor and associated electric generating equipment (the facility). The facility, comprised of the Independent Spent Fuel Storage Installation (ISFSI), is located on the west shore of Lake Michigan in Zion, Lake County, Illinois, approximately midway between Milwaukee, Wisconsin and Chicago, Illinois, as described in the Defueled Safety Analysis Report, as supplemented and amended.

B. Subject to the conditions and requirements incorporated herein, the Commission hereby licenses CEG:

(1) Pursuant to Section 104b of the Atomic Energy Act of 1954, as amended, and 10 CFR Part 50, Licensing of Production and Utilization Facilities, to possess, use, and operate the facility as a utilization facility at the designated location; (2) Pursuant to the Act and 10 CFR Part 70, "Special Nuclear Material," to receive, possess, and use at any time in connection with the operation of the facility, that amount of uranium enriched in the isotope U-235 in accordance with the limitations for storage and amounts required for reactor operation as described in the Zion Station Defueled Safety Analysis Report as supplemented and amended, or as described in any amendment to this license; Amendment No. 181, 192

C. This amended license shall be deemed to contain and is subject to the conditions specified in the following Commission regulations: 10 CFR Part 20, Section 30.34 of 10 CFR Part 30, Section 40.41 of 10 CFR Part 40, Sections 50.54 and 50.59 of 10 CFR Part 50 and Section 70.32 of 10 CFR Part 70; and is subject to all applicable provisions of the Act and to the rules, regulations and orders of the Commission now or hereafter in effect; and is subject to the additional conditions specified below.

(1) Deleted.

(2) Technical Specifications The Technical Specifications contained in Appendix A, as revised through Amendment No. 192, are hereby incorporated in the license. The licensee shall operate the facility in accordance with the Technical Specifications.

(3) Deleted.

(4) Deleted.

(5) Deleted.

(6) The licensee shall fully implement and maintain in effect all provisions of the Commission approved Zion Nuclear Power Station ISFSI Physical Security Plan. This plan contains Safeguards Information protected under 10 CFR 73.21 (revised 1-15-81; Am. 61; revised 10-11-88; Am. 113:

revised 12-13-13; Am. 187; revised 01-14-2015, Am. 188).

(7) Deleted.

Amendment No. 21, 61, 77, 82, 139, 142, 148, 180, 187, 188, 192

(8) Deleted.

(9) Deleted.

(10) Deleted.

(11) Deleted.

(12) CEG shall provide the Director of the Office of Nuclear Reactor Regulation a copy of any application, at the time it is filed, to transfer (excluding grants of security interests or liens) from CEG to its direct or indirect parent, or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding ten percent (10%) of CEG's consolidated net utility plant, as recorded on CEG's books of account.

(13) Deleted.

(14) The decommissioning trust agreement for Zion, Unit 1, at the time the transfer of the unit to CEG is effected and thereafter, is subject to the following:

(a) The decommissioning trust agreement must be in a form acceptable to the NRC.

(b) With respect to the decommissioning trust fund, investments in the securities or other obligations of Constellation Energy Corporation or affiliates thereof, or their successors or assigns are prohibited.

Except for investments tied to market indexes or other non-nuclear sector mutual funds, investments in any entity owning one or more nuclear power plants are prohibited.

(c) The decommissioning trust agreement for Zion, Unit 1, must provide that no disbursements or payments from the trust shall be made by the trustee unless the trustee has first given the Director of the Office of Nuclear Reactor Regulation 30 days prior written notice of payment. The decommissioning trust agreement shall further contain a provision that no disbursements or payments from the trust shall be made if the trustee receives prior written notice of objection from the NRC.

(d) The decommissioning trust agreement must provide that the agreement cannot be amended in any material respect without 30 days prior written notification to the Director of the Office of Nuclear Reactor Regulation.

Amendment No. 181,186, 192

(e) The appropriate section of the decommissioning trust agreement shall state that the trustee, investment advisor, or anyone else directing the investments made in the trust shall adhere to a prudent investor standard, as specified in 18 CFR 35.32(a)(3) of the Federal Energy Commissions regulations.

(15) CEG shall take all necessary steps to ensure that the decommissioning trust is maintained in accordance with the application for approval of the transfer of the Zion, Unit 1 license and the requirements of the Order approving the transfer, and consistent with the safety evaluation supporting the Order.

(16) Deleted.

(17) License Termination Plan (LTP)

CEG shall implement and maintain in effect all provisions of the approved License Termination Plan as approved in License Amendment No. 191 subject to and as amended by the following stipulations:

CEG may make changes to the LTP without prior approval provided the proposed changes do not meet any of the following criteria:

(A) Require Commission approval pursuant to 10 CFR 50.59.

(B) Result in significant environmental impacts not previously reviewed.

(C) Detract or negate the reasonable assurance that adequate funds will be available for decommissioning.

(D) Decrease a survey unit area classification (i.e., impacted to not impacted; Class 1 to Class 2; Class 2 to Class 3; or Class 1 to Class 3) without providing the NRC a minimum 14 day notification prior to implementing the change in classification.

(E) Increase the derived concentration guideline levels (DCGLs) and related minimum detectable concentrations (for both scan and fixed measurement methods).

(F) Increase the radioactivity level, relative to the applicable DCGL, at which an investigation occurs.

(G) Change the statistical test applied other than the Sign test.

(H) Increase the approved Type I decision error above the level stated in the LTP.

Amendment No. 181, 186, 188,191,192

Design Features 4.0 4.0 DESIGN FEATURES_______________________________________________

4.1 Site 4.1.1 Site Location The Zion Independent Spent Fuel Storage Installation (ISFSI) is located in the extreme eastern portion of the city of Zion, Lake County, Illinois, on the west shore of Lake Michigan approximately 6 miles NNE of the center of the city of Waukegan, Illinois, and 8 miles south of the center of the city of Kenosha, Wisconsin. It is located at longitude 87° 48.1' W and latitude 42° 26.8' N.

Zion Station 4-1 Amendment Nos. 192 & 179

Design Features 4.0 4.0 DESIGN FEATURES_______________________________________________

4.2 Fuel Storage 4.2.1 Deleted 4.2.2 Deleted 4.2.3 Deleted 4.2.4 Deleted Zion Station 4-2 Amendment Nos. 192 & 179

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 ZIONSOLUTIONS, LLC DOCKET NO. 50-304 ZION NUCLEAR POWER STATION, UNIT 2 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 179 License No. DPR-48

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

A. The application for amendment by ZionSolutions, LLC (the licensee), dated July 24, 2018, as supplemented January 21, 2019, and February 8, 2019, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commissions regulations set forth in 10 CFR Chapter I; B. The facility will be maintained in conformity with the application, as amended, the provisions of the Act, and the regulations of the Commission; C. There is reasonable assurance: (1) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public; and (2) that such activities will be conducted in compliance with the Commission's 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 Commission's regulations and all applicable requirements have been satisfied.

2. Accordingly, the license is amended as follows:

The heading of the license is amended to change ZionSolutions, LLC to Constellation Energy Generation, LLC.

The footnote to Section 1.A. is hereby amended to read as follows: The Nuclear Regulatory Commission approved the transfer of the license from ZionSolutions, LLC to Constellation Energy Generation, LLC on November 26, 2019.

i

Section 1.E. is hereby amended to read as follows: Constellation Energy Generation, LLC is technically and financially qualified to engage in the activities authorized by this operating license in accordance with the rules and regulations of the Commission; Section 1.F. is hereby amended to read as follows: Constellation Energy Generation, LLC has satisfied the applicable provisions of 10 CFR Part 140, Financial Protection Requirements and Indemnity Agreements, of the Commissions regulations; Section 2. is hereby amended to read as follows: Facility Operating License No.

DPR-48 is hereby issued to Constellation Energy Generation, LLC (CEG or the licensee) to read as follows:

Section 2.A. is hereby amended to read as follows: This license applies to the Zion Nuclear Power Station, Unit 2, a pressurized, light water moderated and cooled reactor and associated electric generating equipment (the facility). The facility, comprised of the Independent Spent Fuel Storage Installation (ISFSI), is located on the west shore of Lake Michigan in Zion, Lake County, Illinois, approximately midway between Milwaukee, Wisconsin and Chicago, Illinois, as described in the Defueled Safety Analysis Report, as supplemented and amended.

Section 2.B. is hereby amended to read as follows: Subject to the conditions and requirements incorporated herein, the Commission hereby licenses CEG:

Section 2.C.(2) is hereby amended to read as follows: The Technical Specifications contained in Appendix A, as revised through Amendment 179, are hereby incorporated in the license. The licensee shall operate the facility in accordance with the Technical Specifications.

Section 2.C.(12) is hereby amended to read as follows: CEG shall provide the Director of the Office of Nuclear Reactor Regulation a copy of any application, at the time it is filed, to transfer (excluding grants of security interests or liens) from CEG to its direct or indirect parent, or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding ten percent (10%) of CEG's consolidated net utility plant, as recorded on CEG's books of account.

Section 2.C.(14) is hereby amended to read as follows: The decommissioning trust agreement for Zion, Unit 2, at the time the transfer of the unit to CEG is effected and thereafter, is subject to the following:

Section 2.C.(14)(b) is hereby amended to read as follows: With respect to the decommissioning trust fund, investments in the securities or other obligations of Constellation Energy Corporation or affiliates thereof, or their successors or assigns are prohibited. Except for investments tied to market indexes or other non-nuclear sector mutual funds, investment in any entity owning one or more nuclear power plants are prohibited.

Section 2.C.(15) is hereby amended to read as follows: CEG shall take all necessary steps to ensure that the decommissioning trust is maintained in accordance with the ii

application for approval of the transfer of the Zion, Unit 2, License and the requirements of the Order approving the transfer, and consistent with the safety evaluation supporting the Order.

Section 2.C.(17) is hereby amended to change every reference to ZionSolutions to CEG.

3. This license amendment is effective at the time the proposed direct license transfer is consummated and shall be implemented within 30 days from that date.

FOR THE U.S. NUCLEAR REGULATORY COMMISSION Signed by Anderson, Shaun on 11/16/23 Shaun M. Anderson, Chief Reactor Decommissioning Branch Division of Decommissioning, Uranium Recovery, and Waste Programs Office of Nuclear Material Safety and Safeguards

Attachment:

Changes to License DPR-48 and Technical Specifications Date of Issuance: November 16, 2023 iii

ATTACHMENT TO LICENSE AMENDMENT NO. 179 TO FACILITY OPERATING LICENSE NO. DPR-48 DOCKET NO. 50-304 Replace the following pages of the Facility Operating License with the attached revised pages.

The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

REMOVE INSERT 1 1 2 2 3 3 4 4 5 5 6 6 Replace the following pages of the Technical Specifications with the attached revised pages.

The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

REMOVE INSERT 4-1 4-1 4-2 4-2 Remove all pages of the Environmental Technical Specifications as that document has been deleted in its entirety.

iv

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 CONSTELLATION ENERGY GENERATION, LLC (Zion Nuclear Power Station, Unit 2)

DOCKET NO. 50-304 FACILITY OPERATING LICENSE License No. DPR-48

1. The Atomic Energy Commission (the Commission) having found that:

A. The application for license filed by the applicant* 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 and all required notifications to other agencies or bodies have been duly made; B. Construction of the Zion Nuclear Power Station, Unit 2 (the facility) has been substantially completed in conformity with Provisional Construction Permit No. CPPR-59 and the application, as amended, the provisions of the Act and the rules and regulation of the Commission; C. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission; D. There is reasonable assurance (i) that the activities authorized by this operating license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the rules and regulations of the Commission; E. Constellation Energy Generation, LLC is technically and financially qualified to engage in the activities authorized by this operating license in accordance with the rules and regulations of the Commission;

  • The Nuclear Regulatory Commission approved the transfer of the license from ZionSolutions, LLC to Constellation Energy Generation, LLC on November 26, 2019.

Amendment No. 168, 179

F. Constellation Energy Generation, LLC has satisfied the applicable provisions of 10 CFR Part 140, Financial Protection Requirements and Indemnity Agreements, of the Commissions regulations; G. The issuance of this license will not be inimical to the common defense and security or to the health and safety of the public; H. Operation of the facility during the period of this license in accordance with its terms and conditions will provide adequate protection of the environment during the period of this license; I. After weighing the environmental, economic, technical and other benefits of the facility against environmental costs and considering available alternatives, the issuance of Amendment No. 3 to Facility Operating License No. DPR-48 (subject to the conditions for protection of the environment set forth herein) is in accordance with 10 CFR Part 50, Appendix D, of the Commission's regulations and all applicable requirements of said Appendix D have been satisfied; J. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accordance with the Commission's regulations in 10 CFR Parts 30, 40 and 70, including 10 CFR Sections 30.33, 40.32, 70.23 and 70.31.

2. Facility Operating License No. DPR-48 is hereby issued to Constellation Energy Generation, LLC (CEG or the licensee) to read as follows:

A. This license applies to the Zion Nuclear Power Station, Unit 2, a pressurized, light water moderated and cooled reactor and associated electric generating equipment (the facility). The facility, comprised of the Independent Spent Fuel Storage Installation (ISFSI), is located on the west shore of Lake Michigan in Zion, Lake County, Illinois, approximately midway between Milwaukee, Wisconsin and Chicago, Illinois, as described in the Defueled Safety Analysis Report, as supplemented and amended.

Amendment No. 168, 179

B. Subject to the conditions and requirements incorporated herein, the Commission hereby licenses CEG:

(1) Pursuant to Section 104b of the Atomic Energy Act of 1954, as amended, and 10 CFR Part 50, Licensing of Production and Utilization Facilities, to possess, use, and operate the facility as a utilization facility at the designated location; (2) Pursuant to the Act and 10 CFR Part 70, "Special Nuclear Material," to receive, possess, and use at any time in connection with the operation of the facility, that amount of uranium enriched in the isotope U-235 in accordance with the limitations for storage and amounts required for reactor operation as described in the Zion Station Defueled Safety Analysis Report as supplemented and amended, or as described in any amendment to this license; (3) Pursuant to the Act and 10 CFR Parts 30, 40, and 70 to receive, possess, and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation, and radiation monitoring equipment calibration, and as fission detectors in amounts as required; (4) Pursuant to the Act and 10 CFR Parts 30, 40, and 70 to receive, possess and use in amounts as required any byproduct, source, or special nuclear material without restriction to chemical or physical form for sample analysis or instrument calibration or associated with radioactive apparatus or components; (5) Pursuant to the Act and 10 CFR Parts 30 and 70, to possess, but not separate, such byproduct and special nuclear material as may be produced by the operation of the facility.

Amendment No. 168,179

C. This license shall be deemed to contain and is subject to the conditions specified in the following Commission regulations: 10 CFR Part 20, Section 30.34 of 10 CFR Part 30, Section 40.41 of 10 CFR Part 40, Sections 50.54 and 50.59 of 10 CFR Part 50, and Section 70.32 of 10 CFR Part 70; and is subject to all applicable provisions of the Act and to the rules, regulations and orders of the Commission now or hereafter in effect; and is subject to the additional conditions specified below:

(1) Deleted.

(2) Technical Specifications The Technical Specifications contained in Appendix A, as revised through Amendment No. 179, are hereby incorporated in the license. The licensee shall operate the facility in accordance with the Technical Specifications.

(3) Deleted 3-11-83; Am. 72.

(4) Deleted.

(5) Deleted.

(6) The licensee shall fully implement and maintain in effect all provisions of the Commission approved Zion Nuclear Power Station Independent Spent Fuel Storage Installation Physical Security Plan. This plan contains Safeguards Information protected under 10 CFR 73.21 (revised 10-11-88, Am. 102; revised 12-13-13, Am. 174; revised 01-14-15, Am. 175).

(7) Deleted.

(a) Deleted.

(b) Deleted.

(c) Deleted 1-15-81; Am. 58.

(d) Deleted 1-15-81; Am. 58.

(e) Deleted 1-15-81; Am. 58.

Amendment No. 51, 58, 72, 102, 128, 136, 167, 174, 175, 179

(8) Deleted.

(9) Deleted.

(10) Deleted.

(11) Deleted.

(12) CEG shall provide the Director of the Office of Nuclear Reactor Regulation a copy of any application, at the time it is filed, to transfer (excluding grants of security interests or liens) from CEG to its direct or indirect parent, or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding ten percent (10%) of CEG's consolidated net utility plant, as recorded on CEG's books of account.

(13) Deleted.

(14) The decommissioning trust agreement for Zion, Unit 2, at the time the transfer of the unit to CEG is affected and thereafter, is subject to the following:

(a) The decommissioning trust agreement must be in a form acceptable to the NRC.

(b) With respect to the decommissioning trust fund, investments in the securities or other obligations of Constellation Energy Corporation or affiliates thereof, or their successors or assigns are prohibited.

Except for investments tied to market indexes or other non-nuclear sector mutual funds, investments in any entity owning one or more nuclear power plants are prohibited.

Amendment No. 168,179

(c) The decommissioning trust agreement for Zion, Unit 2, must provide that no disbursements or payments from the trust shall be made by the trustee unless the trustee has first given the Director of the Office of Nuclear Reactor Regulation 30 days prior written notice of payment. The decommissioning trust agreement shall further contain a provision that no disbursements or payments from the trust shall be made if the trustee receives prior written notice of objection from the NRC.

(d) The decommissioning trust agreement must provide that the agreement cannot be amended in any material respect without 30 days prior written notification to the Director of the Office of Nuclear Reactor Regulation.

(e) The appropriate section of the decommissioning trust agreement shall state that the trustee, investment advisor, or anyone else directing the investments made in the trust shall adhere to a prudent investor standard, as specified in 18 CFR 35.32(a)(3) of the Federal Energy Regulatory Commissions regulations.

(15) CEG shall take all necessary steps to ensure that the decommissioning trust is maintained in accordance with the application for approval of the transfer of the Zion, Unit 2, license and the requirements of the Order approving the transfer, and consistent with the safety evaluation supporting the Order.

(16) Deleted.

(17) License Termination Plan (LTP)

CEG shall implement and maintain in effect all provisions of the approved License Termination Plan as approved in License Amendment No. 178 subject to and as amended by the following stipulations:

CEG may make changes to the LTP without prior approval provided the proposed changes do not meet any of the following criteria:

(A) Require Commission approval pursuant to 10 CFR 50.59.

(B) Result in significant environmental impacts not previously reviewed.

(C) Detract or negate the reasonable assurance that adequate funds will be available for decommissioning.

Amendment No. 168, 173, 175, 178, 179

Design Features 4.0 4.0 DESIGN FEATURES_______________________________________________

4.1 Site 4.1.1 Site Location The Zion Independent Spent Fuel Storage Installation (ISFSI) is located in the extreme eastern portion of the city of Zion, Lake County, Illinois, on the west shore of Lake Michigan approximately 6 miles NNE of the center of the city of Waukegan, Illinois, and 8 miles south of the center of the city of Kenosha, Wisconsin. It is located at longitude 87° 48.1' W and latitude 42° 26.8' N.

Zion Station 4-1 Amendment Nos. 192 & 179

Design Features 4.0 4.0 DESIGN FEATURES_______________________________________________

4.2 Fuel Storage 4.2.1 Deleted 4.2.2 Deleted 4.2.3 Deleted 4.2.4 Deleted Zion Station 4-2 Amendment Nos. 192 & 179

Enclosure 2 Amendment No. 15 to Indemnity Agreement No. B-59

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