ML23298A055
| ML23298A055 | |
| Person / Time | |
|---|---|
| Site: | Yankee Rowe |
| Issue date: | 04/11/2024 |
| From: | Storage and Transportation Licensing Branch |
| To: | Yankee Atomic Electric Co |
| liu, tilda 404-997-4730 | |
| Shared Package | |
| ML23298A052 | List: |
| References | |
| EPID L-2023-LLE-0074 | |
| Download: ML23298A055 (8) | |
Text
Enclosure UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 SAFETY EVALUATION REPORT DOCKET NOS. 50-29 AND 72-31 EXEMPTION FROM 10 CFR 50.82(a)(8)(i)(A) AND 10 CFR 50.75(h)(2)
YANKEE ATOMIC ELECTRIC COMPANY YANKEE NUCLEAR POWER STATION INDEPENDENT SPENT FUEL STORAGE INSTALLATION
1.0 INTRODUCTION
By letter dated May 4, 2023 (Agencywide Documents Access and Management System
[ADAMS] Accession No. ML23157A101), Yankee Atomic Electric Company (YAEC or the licensee) submitted a request to the U.S. Nuclear Regulatory Commission (NRC) for an exemption from Title 10 of the Code of Federal Regulations (10 CFR) 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) for the Yankee Nuclear Power Station (YNPS or Yankee Rowe) Independent Spent Fuel Storage Installation1 (ISFSI).
YAEC has established a separate (segregated) account within its over-arching Nuclear Decommissioning Trust (NDT), entitled "ISFSI Radiological Decom," that identifies the funds for radiological decommissioning of the ISFSI apart from the larger balance of funds in the NDT allocated for ongoing management of spent nuclear fuel (SNF) and greater than Class C (GTCC) waste and for non-radiological site restoration activities. Although 10 CFR 50.82 applies to the segregated account, it does not apply to the overall NDT.
If granted, the exemption from 10 CFR 50.82(a)(8)(i)(A) and 50.75(h)(2) would permit YAEC to make withdrawals from the segregated account, on an annual basis, for SNF and GTCC waste management and non-radiological site restoration without prior notification to the NRC. More specifically, with this exemption, YAEC would be able to annually transfer funds exceeding 110 percent of the inflation-adjusted Decommissioning Cost Estimate, described in 10 CFR 50.75, from the segregated account to its overarching NDT and use those funds for SNF and GTCC waste management and non-radiological site restoration.
This safety evaluation report documents the NRC staffs review and evaluation of YAECs exemption request for the YNPS ISFSI. The NRC staff reviewed YAECs request to determine 1 As discussed below, the Yankee Rowe ISFSI sits on the former site of Yankee Rowe, which YAEC finished decommissioning in 2007. Although only the Yankee Rowe ISFSI remains on the site, YAECs 10 CFR Part 50 license, Facility Operating License No. DPR-3, remains in effect. Because YAEC requested an exemption from the requirements of 10 CFR Part 50, this would be an exemption for YAECs 10 CFR Part 50 license rather than for YAECs 10 CFR Part 72 general license. Therefore, although YAECs submission requested an exemption for the Yankee Rowe ISFSI, the NRC staff will consider it a request for an exemption for YNPS.
2 whether it meets the criteria for an exemption specified in 10 CFR 50.12, Specific exemptions.
Pursuant to 10 CFR 50.12, the Commission may, upon application by any interested person or upon its own initiative, grant exemptions from the requirements of 10 CFR Part 50, which are:
- 1) authorized by law, will not present an undue risk to public health or safety, and are consistent with the common defense and security; and 2) whenever special circumstances listed in 10 CFR 50.12(a)(2) are present.
2.0 BACKGROUND
YAEC received an operating license from the NRC in December 1963, and Yankee Rowe was permanently shut down in October 1991. In 1993, YAEC commenced decommissioning the power plant. The licensee constructed an onsite ISFSI under a general license and transferred the last canister containing GTCC material to the ISFSI in June 2003. In 2007, the plant completed its final decommissioning of the reactor site, except for the ISFSI, which included dismantling and removing all reactor plant related facilities. As a result, only the ISFSI remains at the old plant site of YNPS in Rowe, Massachusetts. By letter dated August 10, 2007 (ML071830515), NRC approved the release of the majority of the YNPS site from the 10 CFR Part 50 license (DPR-3) for unrestricted release, except for the ISFSI and immediately surrounding areas. Under its 10 CFR Part 72 general license, Yanke Rowe is authorized to possess, and store SNF at the permanently shut down and decommissioned facility under the provision of 10 CFR Part 72, Subpart K, General License for Storage of Spent Fuel at Power Reactor Sites.
The YNPS ISFSI is located on the old plant site in Rowe, Massachusetts, on approximately 2 acres of the land associated with the ISFSI under the general license. The ISFSI contains 15 canisters of SNF and one canister of GTCC material. YNPS uses NAC Internationals dry cask spent fuel storage design model, NAC Multi-Purpose Canister (MPC) system, which the NRC authorized by Amendment No. 8 (ML19039A088), to Certificate of Compliance No. 1025.
By letters dated December 10, 2018 (ML18354A738) and December 10, 2021 (ML22010A012),
as supplemented by letter dated August 3, 2022 (ML22237A063), YAEC submitted updated decommissioning funding plans (DFPs) for the YNPS ISFSI for NRC staff review and approval.
The NRC staff reviewed these updated triennial DFP submittals and documented its findings in a letter dated February 24, 2023 (ML22340A475). In support of its approvals of the updated DFPs, the NRC staff published an environmental assessment and findings of no significant impact in the Federal Register (88 FR 7469) on February 3, 2023. The NRC staff determined that there were no significant environmental impacts from the staffs review and approval of YAECs updated DFPs.
3.0 REGULATORY REQUIREMENTS 10 CFR 50.82(a)(8)(i)(A) states, in relevant part:
Decommissioning trust funds may be used by licensees if -
The withdrawals are for expenses for legitimate decommissioning activities consistent with the definition of decommissioning in § 50.2.
The 10 CFR 50.82(a)(8)(i)(A) requirement restricts the use of DTF withdrawals to expenses for legitimate decommissioning activities consistent with the definition of decommissioning that appears in 10 CFR 50.2. The definition of "decommission" in 10 CFR 50.2 reads as follows:
3 to remove a facility or site safely from service and reduce residual radioactivity to a level that permits-(1)
Release of the property for unrestricted use and termination of the license; or (2)
Release of the property under restricted conditions and termination of the license.
This definition does not include activities associated with SNF and GTCC waste management or non-radiological site restoration activities.
10 CFR 50.75(h)(2) states, in relevant part:
Disbursements or payments from the trust, escrow account, Government fund, or other account used to segregate and manage the funds, other than for payment of ordinary administrative costs (including taxes) and other incidental expenses of the fund (including legal, accounting, actuarial, and trustee expenses) in connection with the operation of the fund, are restricted to decommissioning expenses or transfer to another financial assurance method acceptable under paragraph (e) of this section until final decommissioning has been completed.
Therefore, both 10 CFR 50.82(a)(8)(i)(A) and10 CFR 50.75(h)(2) require that trust agreement disbursements (other than those for ordinary administrative and other incidental expenses of the fund) be restricted to decommissioning expenses until final decommissioning is completed.
In addition, 10 CFR 50.75(h)(2) states, in relevant part:
Licensees that are "electric utilities" under § 50.2 that use prepayment or an external sinking fund to provide financial assurance shall include a provision in the terms of the trust, escrow account, Government fund, or other account used to segregate and manage funds that except for withdrawals being made under § 50.82(a)(8) or for payments of ordinary administrative costs (including taxes) and other incidental expenses of the fund (including legal, accounting, actuarial, and trustee expenses) in connection with the operation of the fund, no disbursement or payment may be made from the trust, escrow account, Government fund, or other account used to segregate and manage the funds until written notice of the intention to make a disbursement or payment has been given the Director, Office of Nuclear Reactor Regulation, or Director, Office of Nuclear Material Safety and Safeguards, as applicable, at least 30 working days before the date of the intended disbursement or payment.
Therefore, with certain exceptions, per 10 CFR 50.75(h)(2), YAEC must give NRC written notice before making disbursements or payments from the trust fund for purposes that are not legitimate decommissioning expenses.
As discussed above, YAEC maintains a segregated account, entitled ISFSI Radiological Decom, within its overarching NDT, that distinguishes the funds for radiological decommissioning of the ISFSI from the NDTs larger balance of funds for ongoing management of SNF and GTCC waste. For the reasons above, YAEC is seeking exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) allowing it to annually transfer excess funds from the segregated account for radiological decommissioning of the ISFSI to the overarching NDT, so
4 that those funds can be used to pay for costs associated with SNF and GTCC waste management and non-radiological site restoration activities, without prior notification to the NRC. The exemption request defines excess funds as those exceeding 110 percent of the inflation-adjusted Decommissioning Cost Estimate (DCE) in 10 CFR 50.75.
4.0 PROPOSED EXEMPTION By letter dated May 4, 2023, YAEC submitted a request to the NRC for an exemption from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2). The proposed exemption would permit YAEC to make withdrawals from the segregated account, on an annual basis, for SNF and GTCC waste management and non-radiological site restoration without prior notification to the NRC.
More specifically, with this exemption, YAEC would be able to annually transfer funds exceeding 110 percent of the inflation adjusted DCE from the segregated account to its overarching NDT and use those funds for SNF and GTCC waste management and non-radiological site restoration activities.
5.0 SAFETY EVALUATION Under 10 CFR 50.12, the Commission may, upon application by any interested person or upon its own initiative, grant exemptions from the requirements of 10 CFR Part 50 (1) when the exemptions are authorized by law, will not present an undue risk to the public health and safety, and are consistent with the common defense and security; and (2) when any of the special circumstances listed in 10 CFR 50.12(a)(2) are present. These special circumstances include, among others:
(a)
Application of the regulation in the particular circumstances would not serve the underlying purpose of the rule or is not necessary to achieve the underlying purpose of the rule; and (b)
Compliance would result in undue hardship or other costs that are significantly in excess of those contemplated when the regulation was adopted, or that are significantly in excess of those incurred by others similarly situated.
Authorized by Law The requested exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) would allow YAEC to use excess funds from its segregated account for costs associated with SNF and GTCC waste management and non-radiological site restoration activities without prior notification to the NRC.
As stated above, the NRC has the legal authority to issue exemptions from the requirements of 10 CFR Part 50 as provided in 10 CFR 50.12. The NRC staff has determined that, as explained below, there would still be reasonable assurance of adequate funding for radiological decommissioning because Yankee Rowes use of the decommissioning trust funds for activities associated with SNF and GTCC management and non-radiological site-restoration would not negatively impact the availability of funding for radiological decommissioning. Accordingly, granting YAECs proposed exemption would not result in a violation of the Atomic Energy Act of 1954, as amended, or the Commissions regulations. Therefore, issuance of the exemption is authorized by law.
No Undue Risk to Public Health and Safety
5 The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) is to provide reasonable assurance that adequate funds will be available for radiological decommissioning of power reactors, including the general licensed ISFSIs licensed under 10 CFR Part 72, Licensing Requirements for the Independent Storage of Spent Nuclear Fuel, High Level Radioactive Waste, and Reactor-Related Greater Than Class C Waste.
YAEC stated that it has established a segregated account, entitled "ISFSI Radiological Decom,"
within its over-arching NDT, that identifies the funds for radiological decommissioning of the ISFSI. This segregated account is apart from the larger balance of funds in the NDT allocated for ongoing management of SNF and GTCC waste and for other non-radiological site restoration activities. In its Decommissioning Funding Assurance Status Report dated March 6, 2023 (ML23080A107), YNPS stated that its inflation-adjusted DCE for the radiological decommissioning of the ISFSI is $6.1 million in 2022 dollars, which provides reasonable assurance of adequate funding to complete NRC required decommissioning activities, with
$22.5 million as funds in the segregated account for radiological decommissioning the ISFSI, as of December 31, 2022. More specifically, in its exemption request, YAEC provided a table showing $6,087,475 in 2022 dollars as inflation-adjusted DCE. YAECs exemption request further stated that the segregated account has a balance of $22,496,631 as of December 31, 2022, meaning that the segregated account had a balance of $16,409,156, or 270 percent beyond the inflation-adjusted DCE.
YAEC stated that, if the exemption is granted, funds in its segregated account which exceed 110 percent of the inflation-adjusted DCE for the radiological decommissioning of the ISFSI would be transferred to the overarching NDT on an annual basis without prior NRC notification.
YAEC would then use those funds for SNF and GTCC waste management and non-radiological site restoration, which in turn, would allow YAEC to return its additional excess funds in the overarching NDT to its customers as part of future rate cases with the Federal Energy Regulatory Commission (FERC).
The requested exemption from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) would allow transfers on an annual basis. YAEC stated that it will continue to provide its annual decommissioning funding assurance status report in accordance with 10 CFR 50.75(f)(1) and (2) and 10 CFR 50.82(a)(8)(v) and (vi) requirements. These reports provide the NRC staff with awareness of, and the ability to act on, any actual or potential funding deficiencies. As the proposed exemption would not affect these requirements, the NRC staff would have tools available for any potential funding deficiencies. Therefore, the proposed exemption request would not affect reasonable assurance that adequate funds will be available for radiological decommissioning of the site.
Further, there are no new accident precursors created by using the excess funds from the segregated account for SNF and GTCC management and non-radiological site-restoration.
YAEC will transfer funds that exceeds 110 percent of the inflation-adjusted DCE. Thus, the probability of postulated accidents is not increased. Also, the consequences of postulated accidents are not increased. No changes are being made in the types or amounts of effluents that may be released offsite. There is no significant increase in occupational or public radiation exposure. Therefore, the requested exemption will not present an undue risk to the public health and safety.
Consistent with the Common Defense and Security
6 The proposed exemption would not affect any requirements associated with physical protection of the Yankee Rowe ISFSI with SNF and GTCC waste stored on site. Physical security measures at the Yankee Rowe ISFSI are not affected by the requested exemption. Therefore, the proposed exemption is consistent with the common defense and security.
Special Circumstances The regulation under 10 CFR 50.12(a)(2) states, in part, that "[t]he Commission will not consider granting an exemption unless special circumstances are present," and identifies, in 10 CFR 50.12(a)(2)(i)-(vi), when special circumstances are present.
Special circumstances, in accordance with 10 CFR 50.12(a)(2)(ii), are present whenever application of the regulation in the particular circumstances would not serve the underlying purpose of the rule or is not necessary to achieve the underlying purpose of the rule.
The underlying purposes of these regulations, however, are to provide reasonable assurance that adequate funds will be available for the radiological decommissioning of power reactors and license termination. Strict application of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) would prohibit the withdrawal of funds from the segregated account ISFSI Radiological Decom for activities other than radiological decommissioning until final radiological decommissioning is completed. As discussed above, the NRC staff has determined that, in this circumstance, consistent with the purposes of the regulations, the requested transfer of funds from the segregated account to the overarching NDT would continue to provide reasonable assurance that adequate funds will be available for the radiological decommissioning of the facility.
Therefore, the application of these regulations to prevent the requested transfer of funds would not serve the underlying purposes of the regulations.
In addition, since YAEC is an electric utility under 10 CFR 50.2, the requested transfer of funds will not inhibit YAECs ability to complete funding of any potential future shortfalls in the NDTs.
This is because YAEC is regulated by the FERC and recovers current operating costs through FERC-approved power supply contracts. This exemption will not foreclose the option for future ratepayer contributions. Hence, there is additional margin as provided by the FERC-accepted power contracts which provide an ongoing mechanism to obtain additional funds. Therefore, application of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) in these circumstances would not serve the underlying purposes of the regulations. Consequently, special circumstances are present.
Special circumstances, in accordance with 10 CFR 50.12(a)(2)(iii), are present whenever compliance would result in undue hardship or other costs that are significantly in excess of those contemplated when the regulation was adopted, or that are significantly in excess of those incurred by others similarly situated.
As discussed above, YAEC states that the segregated account contains funds in excess of the estimated costs of radiological decommissioning of the ISFSI. It further states that these excess funds should be available for SNF and GTCC waste management and non-radiological site restoration activities to minimize the potential to require additional funding from ratepayers in accordance with the FERC process.
Preventing access to funds that exceed 110 percent of the inflation-adjusted DCE for radiological decommissioning of the ISFSI to fund SNF and GTCC waste management and non-radiological site restoration would create an unnecessary financial burden without any
7 corresponding safety benefit. The adequacy of the segregated account to cover the cost of activities associated with SNF and GTCC waste management and non-radiological site restoration activities, in addition to radiological decommissioning, is supported by the site-specific decommissioning cost analysis. If the licensee cannot use its segregated account for SNF and GTCC waste management and non-radiological site restoration activities, it would need to obtain additional funding that would not be recoverable from the NDT, or the licensee would have to modify its decommissioning approach and methods. The NRC staff concludes that either outcome would impose an unnecessary and undue burden significantly in excess of that contemplated when 10 CFR 50.82(a)(8)(i)(A) was adopted.
The underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) would be achieved by allowing YAEC to use a portion of the YAECs segregated account for SNF and GTCC management and non-radiological site restoration activities without prior NRC notification on an annual basis, and compliance with the regulations would result in an undue hardship or other costs that are significantly in excess of those contemplated when the regulations were adopted. Thus, the special circumstances required by 10 CFR 50.12(a)(2)(ii) and 10 CFR 50.12(a)(2)(iii) exist and support the approval of the requested exemption.
6.0 ENVIRONMENTAL CONSIDERATION
The NRC staff considered whether there would be any significant environmental impacts associated with the proposed exemption. For the proposed action, the NRC staff performed an environmental assessment (EA) pursuant to 10 CFR 51.30. The NRC determined that a finding of no significant impact (FONSI) is appropriate, and an environmental impact statement is not warranted. The EA and the FONSI was published on April 9, 2024, in the Federal Register (89 FR 24877).
7.0 CONCLUSION
Based on the above, the NRC has determined that, pursuant to 10 CFR 50.12(a), the exemption is authorized by law, will not present an undue risk to the public health and safety, and is consistent with the common defense and security. Also, special circumstances are present.
Therefore, the NRC hereby grants the requested exemption from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) to permit YAEC to make withdrawals from the segregated account, on an annual basis, for SNF and GTCC waste management and non-radiological site restoration without prior notification to the NRC. All other relevant requirements shall be met.