ML24278A000
| ML24278A000 | |
| Person / Time | |
|---|---|
| Site: | Palisades  |
| Issue date: | 10/04/2024 |
| From: | Blind A - No Known Affiliation |
| To: | Atomic Safety and Licensing Board Panel |
| SECY RAS | |
| References | |
| RAS 57130, ASLBP 24-986-01-LA-BD01, 50-255-LA-3 | |
| Download: ML24278A000 (0) | |
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October 4, 2024 Contention Five of 1
13 Contention Five: Holtecs Exemption Request Fails to Meet Requirements For Acceptance Review, as per 10 CFR 50.12, Specific exemptions, Prelude: Linking Contention Five to the Original Petition In the original petition submitted on September 9, 2024, petitioners outlined several contentions challenging the resumption of power operations at Palisades Nuclear Plant, focusing on the safety, regulatory, and procedural inadequacies of Holtec's proposals and actions. Those contentions primarily addressed Holtecs License Amendment Request (LAR) and supporting regulatory submissions, emphasizing the potential risks and the absence of comprehensive safety assurances in their plans for reauthorizing power operations.
Contention Five builds on the arguments set forth in the original petition by addressing Holtec's Specific Exemption Request, submitted on September 28, 2023, which is inextricably linked to the in-scope LARs and broader licensing actions discussed in the original petition. The exemption request is necessary for Holtec to reverse the certifications under 10 C.F.R. § 50.82(a)(1) and allow Palisades to exit decommissioning and reauthorize power operations.
October 4, 2024 Contention Five of 2
13 As this exemption request is integral to the success of Holtecs broader efforts, it introduces additional risks and procedural concerns that must be addressed through a public hearing. This new contention challenges the Holtec-provided basis criteria for the exemption and its failure to meet the requirements of 10 C.F.R. § 50.12, particularly in relation to public health and safety assurances and the misinterpretation of regulatory guidance and special circumstances.
By incorporating Contention Five into the original petition, petitioners provide a comprehensive argument against both the licensing and exemption requests necessary to reload fuel, which Holtec is relying upon to restart operations at Palisades, underscoring the material connection between the exemption and the previously outlined safety concerns.
Contention Summary Holtec Decommissioning International, LLCs (Holtec) Specific Exemption Request, submitted on September 28, 2023, should be denied as it fails to meet the regulatory requirements of 10 C.F.R. § 50.12. The request does not demonstrate that the exemption will not pose an undue risk to public health and safety and relies
October 4, 2024 Contention Five of 3
13 on circular logic and misapplication of proposed regulatory guidance. Holtec defers safety assurances to future NRC licensing actions and inspections without providing an independent and detailed plan for the safe restart of the Palisades Nuclear Plant. Additionally, Holtec misuses the proposed rule NRC-2015-0070 to justify its exemption request, further undermining its validity and failed to show special circumstances.
This contention is inextricably linked to the overall petition for a hearing filed on September 9, 2024, and should be added as Contention Five in that petition.
Holtecs and NRC staffs own admission that the exemption is essential to the success of its licensing efforts ties the exemption to the broader licensing actions, making it subject to public hearing rights under the Atomic Energy Act and relevant NRC precedent. Petitioners, therefore, have standing to challenge the exemption as part of the License Amendment Request (LAR) process and other licensing actions mentioned in the full petition.
October 4, 2024 Contention Five of 4
13 Hearing Eligibility Summary Petitioners have a clear legal basis for requesting a public hearing on Holtecs Specific Exemption Request. The exemption request is directly connected to Holtecs LAR EPID L-2023-LLA-0174, ML23348A148Request to Revise Operating License and Technical Specifications to Support Resumption of Power Operationsas acknowledged by Holtec and the NRC in the Acceptance Review Letter dated January 23, 2024, ML24022A117. Since the exemption request is integral to the licensing actions aimed at reauthorizing power operations at Palisades and falls within the scope of the Federal Register notice inviting public hearings, petitioners are entitled to raise contentions and seek a hearing.
The NRC Declaratory Order of September 2024 (titled NRC-Staff-Answer-to-Intervention-Petition-and-Hearing-Request-and-to-Licensee-Motion) clarifies that exemption requests tied to licensing amendments may be challenged through public hearings as part of the broader licensing process. This provides a direct pathway for petitioners to contest the exemption request.
October 4, 2024 Contention Five of 5
13 Requested Actions 1.
Public Hearing on Holtecs Exemption Request: Petitioners request that the NRC grant a public hearing on Holtecs exemption request as part of the broader licensing review for Palisades Nuclear Plant.
2.
Revise ML23291A440, PALISADES NUCLEAR PLANT ACCEPTANCE OF REQUESTED LICENSING ACTION RE: REQUEST FOR EXEMPTION FROM 10 CFR 50.82(a)(2) TO SUPPORT REAUTHORIZATION OF POWER OPERATIONS (EPID L-2023-LLE-0025), to reject the submission due to not meeting all the requirements of 10 CFR 50.12, Specific exemptions 3.
Denial of the Exemption Request: Petitioners request that the NRC deny Holtecs Specific Exemption Request due to its failure to provide sufficient safety assurances, reliance on circular logic, failure to submit a comprehensive restart plan, and misapplication of NRC-2015-0070.
October 4, 2024 Contention Five of 6
13 Hearing Eligibility Details Declaratory Order of September 2024 The NRCs Declaratory Order of September 2024 further supports petitioners right to a hearing. This order clarified that exemption requests, when tied to a licensing amendment request, can be challenged through contentions submitted as part of a public hearing on the licensing action. Since the exemption request is explicitly tied to the LAR in EPID L-2023-LLA-0174, petitioners can raise contentions related to the exemption in this broader context.
NRCs Acceptance of the License Amendment (EPID L-2023-LLA-0174)
The NRCs Acceptance Review Letter (January 2024), ML24022A117, acknowledges the integral role of the exemption request in Holtecs broader efforts to reauthorize power operations. As stated in the letter:
"By letter dated December 14, 2023 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML23348A148), Holtec Decommissioning International, LLC (HDI) submitted a license amendment request (LAR) regarding Palisades Nuclear Plant. Specifically, the LAR would
October 4, 2024 Contention Five of 7
13 revise the renewed facility operating license, the permanently defueled technical specifications (TSs), and the environmental protection plan to reflect the resumption of power operations at Palisades Nuclear Plant. HDI stated that the LAR, in combination with a request for exemption from Title 10 of the Code of Federal Regulations (10 CFR), section 50.82(a)(2), a request for a license transfer, and future LARs, are necessary to reauthorize power operations at Palisades Nuclear Plant."
This NRC staff acknowledgment establishes that the exemption request is not a stand-alone issue but rather a critical component of a broader licensing strategy that includes multiple LARs and a license transfer request. By linking the exemption request to these licensing actions, the NRC has established a basis for public hearing rights. Petitioners, therefore, have standing to challenge the exemption request as part of the LAR review process.
Materiality of the Exemption Request The exemption request is material to the safety and regulatory framework governing Palisades transition from decommissioning back to operational status.
October 4, 2024 Contention Five of 8
13 This exemption affects critical safety standards that were originally put in place for decommissioning and must be evaluated in the context of public health, safety, and environmental protection. A public hearing is necessary to assess the adequacy of the exemption request and its impact on the license amendment process.
Contention Details A. Misinterpretation of Special Circumstances Holtec argues that unexpected governmental support for continued operations serves as a special circumstance justifying the reversal of the 50.82(a)(1) shutdown certification restrictions. However, this argument is flawed. Holtecs own timeline in its exemption request shows that governmental support for continued operations was present during the plants last power operating cycle under Entergy ownership.
Therefore, Holtecs claim that these circumstances were unforeseen and justify the exemption request is baseless.
In fact, the decision to submit the 50.82 certifications and initiate decommissioning was a choice made by Entergy, knowing that governmental support existed.
Entergy could have sought a buyer for continued operations without submitting the shutdown certifications, and Holtec was fully aware of these facts when it acquired
October 4, 2024 Contention Five of 9
13 Palisades in its decommissioned state. As such, the special circumstances Holtec cites are self-inflicted and do not meet the regulatory requirements for granting an exemption.
Timeline, as per Holtecs Exemption Request, ML23271A140 On April 19, 2022, the U.S. Department of Energy (DOE) issued guidance for the civil nuclear credit program (CNCP) with a deadline for submission of certification application and sealed bids by May 19, 2022 (Reference 8).
On April 20, 2022, a letter from the Governor of the State of Michigan to the Secretary of the DOE expressed support for use of the CNCP to support continued power operations at PNP. The Governor stated in the letter, Keeping Palisades open is a top priority. Doing so will allow us to make Michigan more competitive for economic development projects bringing billions in investment, protect hundreds of good paying jobs for Michigan workers, and shore up Michigans clean energy supply and provide reliable lower energy costs for working families and small businesses (Reference 2).
On June 13, 2022, Entergy submitted to the NRC the 10 CFR 50.82(a)(1) certifications of the permanent cessation of power operations at PNP and the permanent removal of fuel from the PNP reactor vessel (Reference 1). On this same date, the NRC informed Entergy that the reactor oversight process at PNP had been terminated and that the NRC decommissioning inspection program was now applicable to PNP (Reference 9). This is the date when PNP transitioned from a power operations plant to a facility in decommissioning.
On June 28, 2022, Holtec acquired PNP from Entergy, and the NRC issued.
PNP RFOL amendments to reflect this change in ownership and name change, and the transfer of Entergy Nuclear Operations, Inc. operating authority, to Holtec Decommissioning International, LLC (Reference 10).
Note, at the time of license transfer PNP was a facility in decommissioning
October 4, 2024 Contention Five
of 10 13 and HDI was given operating authority by the NRC for the purpose of decommissioning the PNP site.
B. Lack of a Detailed Restart Plan Undermines Safety Assurances Holtec presented a high-level plan for restarting the Palisades Nuclear Plant but failed to provide substantive details on system return-to-service plans, which it uses as a strong basis to ensure no harm to the public, or other critical safety assessments. Under 10 C.F.R. § 50.12(a)(2), exemptions must be authorized only in special circumstances, which include the applicant providing sufficient assurance that safety will be maintained. The NRC should require Holtec to submit a comprehensive and integrated restart plan for review to demonstrate how it will ensure public health and safety.
C. Misinterpretation and Misuse of NRC-2015-0070 In its Specific Exemption Request (ML23271A140), Holtec argues that 10 C.F.R.
§ 50.82(a)(1) does not serve its underlying purpose and supports this by citing NRC-2015-0070, "Regulatory Improvements for Power Reactors Transitioning to Decommissioning." Holtec claims the rule's purpose was "for communication and
October 4, 2024 Contention Five
of 11 13 formal entering into the decommissioning process, and not to prohibit rescission, by a licensee, of the docketed 10 CFR 50.82(a)(1) certifications to allow exiting the decommissioning process through licensing actions to reauthorize power operations."
However, this interpretation is flawed for several reasons:
1.
NRC-2015-0070 was never finalized, as best as petitioner can determine:
Petitioners could not find evidence that NRC-2015-0070 was adopted as a final rule, making it inapplicable as regulatory justification for Holtecs interpretation.
2.
Selective Interpretation: Even if NRC-2015-0070 had been adopted, Holtecs selective use of the document misrepresents the comprehensive nature of the draft rule, which emphasizes the certification of permanent cessation as a critical regulatory safeguard, and not merely an administrative communication tool.
3.
Misapplication of Rule
Purpose:
Holtec has failed to provide any specific language from NRC-2015-0070 supporting its argument that 10 C.F.R. § 50.82(a)(1) was for communication of rescission of decommissioning
October 4, 2024 Contention Five
of 12 13 certifications. The rule, in fact, emphasizes the importance of the certification process as a permanent step, ensuring a safe transition to decommissioning.
Conclusion Holtecs Specific Exemption Request fails to meet the requirements outlined in 10 C.F.R. § 50.12, as it does not adequately demonstrate that public health and safety will be maintained without undue risk, nor does it provide sufficient special circumstances to justify an exemption. Additionally, Holtec misapplies NRC-2015-0070 to misrepresent the purpose of the rule and relies on a flawed safety rationale that defers responsibility to future inspections of system restart plans by the NRC to be the sole means of public health and safety.
Petitioners respectfully request that the NRC grant a public hearing on Holtecs Specific Exemption Request and deny the exemption based on these deficiencies.
October 4, 2024 Contention Five
of 13 13 Declaration of Alan Blind