ML25098A103
| ML25098A103 | |
| Person / Time | |
|---|---|
| Site: | Big Rock Point, Palisades File:Consumers Energy icon.png |
| Issue date: | 04/08/2025 |
| From: | Carrie Safford NRC/SECY |
| To: | Entergy Nuclear Operations, Entergy Nuclear Palisades, Holtec Decommissioning International, Holtec, NRC/OGC, State of MI, Office of Attorney General |
| SECY RAS | |
| References | |
| License Transfer, RAS 57336, 50-255-LT-2, 50-155-LT-2, 72-007-LT, 72-043-LT-2, CLI-25-02 | |
| Download: ML25098A103 (0) | |
Text
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION COMMISSIONERS:
David A. Wright, Chairman Annie Caputo Christopher T. Hanson Bradley R. Crowell Matthew J. Marzano In the Matter of ENTERGY NUCLEAR OPERATIONS, INC.,
ENTERGY NUCLEAR PALISADES, LLC, HOL TEC INTERNATIONAL, AND HOL TEC DECOMMISSIONING INTERNATIONAL, LLC (Palisades Nuclear Plant and Big Rock Point Site)
CLl-25-02 ORDER Docket Nos. 50-255-L T-2 50-155-LT-2 72-007-L T 72-043-L T-2 Our decision in CLl-22-8 granted the Attorney General of Michigan's petition for intervention and request for a hearing. The parties presented their evidence and arguments to the Presiding Officer on four discrete issues from one contention challenging the financial qualifications demonstration for Holtec Palisades, LLC, and Holtec Decommissioning International, LLC (HDI). The record has been certified to us.1 The financial qualifications demonstration in the license transfer application was wholly based on the expectation of a permanently defueled and shut down reactor at Palisades Nuclear Plant2. The challenges involve cost estimates and related schedules and financial assurances that are based on a site-1 LBP-23-5, 97 NRC 116 (2023).
2 See 10 C.F.R. § 50.82(a)(1).
specific decommissioning cost estimate included with a Post-Shutdown Decommissioning Activities Report (PSDAR), and an exemption allowing use of the decommissioning trust fund for spent fuel management and site restoration. HDI has since filed a new license transfer application and several associated requests with the aim of restarting operations at Palisades.3 The new license transfer application involves a significantly different financial qualification demonstration that is based on an operating plant.4 Consequently, should restart of the plant be approved, and should restart occur, essentially all arguments presented in support of or challenging the financial qualification demonstration in this particular proceeding may no longer apply. The proposed transferees for the new license transfer would be relying on a different financial qualifications demonstration than the one litigated in this proceeding. A decision in this proceeding on the financial qualifications for a permanently defueled and shut down plant accordingly would not apply in the proposed restart scenario.
HDI also has indicated that it has and will take actions to "pursue restart in earnest,"
which will include departing from "the current PSDAR schedule to focus on restart efforts until such time as [Palisades] either successfully resumes operations (and thus exits 3 See, e.g., Holtec Decommissioning International, LLC, Holtec Palisades, LLC, and Palisades Energy, LLC; Palisades Nuclear Plant and the Palisades Independent Spent Fuel Storage Installation; Consideration of Approval of Transfer of Licenses and Conforming Amendment, 89 Fed. Reg. 64,493 (Aug. 7, 2024); Holtec Decommissioning International, LLC, and Holtec Palisades, LLC; Palisades Nuclear Plant; Applications for Amendments to Renewed Facility Operating License Involving Proposed No Significant Hazards Considerations and Order Imposing Procedures for Access to Sensitive Unclassified Non-Safeguards Information and Safeguards Information, 89 Fed. Reg. 64,486 (Aug. 7, 2024); Request for Exemption from 10 CFR 50.82(a)(2), attached to (Encl. 1) Letter from Jean A. Fleming, Holtec International, to NRC Document Control Desk (Sept. 28, 2023) (ML23271A140).
4 For example, the funding assurance amount for decommissioning in this proceeding is based on a site-specific decommissioning cost estimate. But the decommissioning funding assurance amount in the new license transfer application is based on a different amount calculated for Palisades under the NRC's formula for decommissioning financial assurance in 10 C.F.R.
§ 50. 75( c ). Financial assurance for the funding of spent fuel management in this proceeding is based on an exemption allowing use of the decommissioning trust fund for spent fuel management. But in the new application, financial assurance for spent fuel management costs is based on projected plant operational revenues.
decommissioning) or abandons the restart project."5 HDI states that "[p]rior to or in parallel with reinstatement of' an operating licensing basis, it will file a notice "formally rescinding the PSDAR."6 And it states that "alongside [a] reinstatement of' the operating licensing basis, it will docket correspondence acknowledging that the current exemption allowing use of the decommissioning trust fund for non-decommissioning expenses "has been rescinded and is no longer applicable upon withdrawal of the PSDAR."7 In April of 2024, HDI indicated that it has begun "the process of reinstating" the Palisades operating licensing basis, and it provided notice of a change in the PSDAR's schedule for some spent fuel management activities that HDI is postponing "to allow HDI to undertake restart work and exit decommissioning."8 Along with the restart-related requests and activities, there is a shifting landscape, including what increasingly may be different schedules, expenditures, and funding than that assumed or litigated in this proceeding.
5 Application for Order Consenting to Transfer of Control of License and Approving License Amendments, at 16, attached (Encl. 1) to Letter from Jean A. Fleming, Holtec International, to NRC Document Control Desk (Dec. 6, 2023) {ML23340A161) (Restart-Based License Transfer Application).
6 Id.
7 Id. at 17 n.14.
8 See Letter from Jean A. Fleming, HDI, to NRC Document Control Desk, Notification of Changes in Accordance with 10 CFR 50.82(a)(7) (Apr. 9, 2024), at 1, 3 (ML24100A689); see also Palisades Nuclear Plant Annual Decommissioning Funding and Spent Fuel Management Status and Financial Assurance Report, attached to (Encl. 4) Letter from Jean A. Fleming, HDI, to NRC Document Control Desk, (Mar. 29, 2024) (ML24089A117). The deferred spent fuel management activities alter the original projected spent fuel management expenses. Further, in planning financially for restart, HDI states that it is managing withdrawals from the trust fund in a manner that will maintain decommissioning funding at least to the level of the NRC's minimum formula amount in 10 C.F.R. § 50.75(c), the requirement for operating plants. See Restart-Based License Transfer Application at 17-18. Relatedly, funding outside of the trust fund has contributed to covering project costs and HDI states that "Holtec Palisades is still carrying an accrual of decommissioning costs that have been incurred but not reimbursed" from the trust fund. See Restart-Based License Transfer Application at 17.
In light of HDl's pending requests and its activities associated with the planned restart of Palisades, we hereby hold this proceeding in abeyance pending further direction.9 We direct the parties in six months (October 8, 2025) to provide us their views on and interests in further proceedings in this case.
Dated at Rockville, Maryland, this 8th day of April 2025.
For the Commission
~
fut Carrie M. Safford Safjy1)
Secretary of the Commission 9 While we have the unusual situation of two requested license transfers, one based on a permanently shutdown reactor in a decommissioning status and the other based on an operating plant, this order only pertains to the former and does not impact proceedings associated with the latter.
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of
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Entergy Nuclear Operations, Inc., Entergy
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Docket Nos. 50-255-LT-2 Nuclear Palisades, LLC, Holtec
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50-155-LT-2 International, and Holtec Decommissioning
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72-007-LT International, LLC
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72-043-LT-2 (Palisades Nuclear Plant & Big Rock Point)
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CERTIFICATE OF SERVICE I hereby certify that copies of the COMMISSION MEMORANDUM AND ORDER (CLI-25-02) have been served upon the following persons by Electronic Information Exchange.
U.S. Nuclear Regulatory Commission Office of Commission Appellate Adjudication Mail Stop: O-16B33 Washington, DC 20555-0001 ocaamail@nrc.gov U.S. Nuclear Regulatory Commission Office of the Secretary of the Commission Mail Stop: O-16B33 Washington, DC 20555-0001 hearingdocket@nrc.gov Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Michael M. Gibson, Presiding Officer Whitlee Dean, Law Clerk Georgia Rock, Law Clerk Michael.Gibson@nrc.gov Whitlee.Dean@nrc.gov georgia.rock@nrc.gov U.S. Nuclear Regulatory Commission Office of the General Counsel Mail Stop: O-14A44 Washington, DC 20555-0001 David E. Roth, Esq.
Anita G. Naber, Esq.
Susan Vrahoretis, Esq.
Jeremy L. Wachutka, Esq.
Mary F. Woods, Esq.
Laura Shrum, Esq.
david.roth@nrc.gov anita.ghoshnaber@nrc.gov susan.vrahoretis@nrc.gov jeremy.watchutka@nrc.gov mary.woods@nrc.gov laura.shrum@nrc.gov Michigan Department of Attorney General 525 W. Ottawa St.
Lansing, MI 48906 Michael Moody, Esq.
Amanda Churchill, Esq.
Joel King, Esq.
moodym2@michigan.gov churchilla1@michigan.gov kingj38@michigan.gov Counsel for Entergy Nuclear Operations, Inc.
and Entergy Nuclear Palisades, LLC Pillsbury Winthrop Shaw Pittman LLP 1200 Seventeenth Street, NW Washington, DC 20036 Anne R. Leidich, Esq.
anne.leidich@pillsburylaw.com Susan H. Raimo, Esq.
Entergy Services, LLC 101 Constitution Avenue, N.W.
Washington, D.C. 20001 sraimo@entergy.com
Entergy Nuclear Operations, Inc, Holtec International (Palisades Nuclear Plant and Big Point Rock)
Docket No. 50-255-LT-2, 50-155-LT-2, 72-007-LT, 72-043-LT-2 COMMISSION MEMORANDUM AND ORDER (CLI-25-02) 2 Counsel for Holtec International, and Holtec Decommissioning International, LLC Balch & Bingham LLP 1710 Sixth Avenue North Birmingham, AL 35203-2015 Alan D. Lovett, Esq.
Adam Israel, Esq.
alovett@balch.com aisreal@balch.com Dated at Rockville, Maryland this 8th of April 2025 Environmental Law & Policy Center 35 E. Wacker Drive, Ste. 1600 Chicago, IL 60601 Michael J. Zoeller mzoeller@elpc.org Office of the Secretary of the Commission CLARA SOLA Digitally signed by CLARA SOLA Date: 2025.04.08 10:00:22 -04'00'