ML25115A196

NRC Staff Determination of SUNSI Access Request

ML25115A196
Person / Time
Site:	Palisades
Issue date:	04/25/2025
From:	Ken Wilson NRC/OGC
To:	Lodge T, Taylor W - No Known Affiliation
SECY RAS
References
RAS 57346, Palisades 50-255-LA-4
Download: ML25115A196 (0)

Text

April 25, 2025 Terry J. Lodge 316 N. Michigan St, Suite 520 Toledo, Ohio 43604 Wallace L. Taylor 4403 1st Ave. N.E., Suite 402 Cedar Rapids, Iowa 52402 RE:

REQUEST FOR SENSITIVE UNCLASSIFIED NON-SAFEGUARDS INFORMATION (SUNSI) REGARDING LICENSE AMENDMENT REQUEST OF HOLTEC PALISADES, INC. (HOLTEC), PALISADES NUCLEAR PLANT The U.S. Nuclear Regulatory Commission (NRC) staff is responding to your letter1 on behalf of Beyond Nuclear, Michigan Safe Energy Future, Dont Waste Michigan, Three Mile Island Alert, and Nuclear Energy Information Service (collectively referred to as Requestors) requesting access to SUNSI included in the Holtec Palisades, Inc. (Holtec) license amendment request (LAR) that would revise the Palisades technical specifications to support repairing of steam generator tubes by sleeving (a copy of the Access Request is attached herein as ).2 Specifically, your Access Request seeks the SUNSI contained within the report prepared by Framatome, Inc., Steam Generator Mechanical TSP Sleeve Qualification Report for 3/4 Tubes at Palisades Nuclear Power Plant (Framatome Report).3 Portions of the Framatome Report were withheld from public disclosure under Title 10 of the Code of Federal Regulations (C.F.R.) Section 2.390 because it contained proprietary commercial information.4 Pursuant to the Order Imposing Procedures for Access to SUNSI for Contention Preparation (SUNSI Order), included in the April 15, 2025, Federal Register notice,5 NRC staff evaluated your request to determine whether (1) there is a reasonable basis to believe that the Requestors are likely to establish standing to participate in this NRC proceeding, and (2) the requestors have established a legitimate need for access to the SUNSI requested.6 For the reasons stated below, the NRC staff has determined that your request for access to the SUNSI 1 Letter from Terry J. Lodge and Wallace L. Taylor to Office of the Secretary, Nuclear Regulatory Commission, Re: Palisades Request to Revise Selected Permanently Defueled Technical Specifications to Support Repairing of Steam Generator Tubes by Sleeving; ADAMS Accession No. ML25043A348 (Apr. 15, 2025) (Access Request).

2 See Holtec Palisades, LLC, letter to U.S. Nuclear Regulatory Commission, License Amendment Request to Revise Selected Permanently Defueled Technical Specifications to Support Repairing of Steam Generator Tubes by Sleeving, (Apr. 15, 2025) (ADAMS Accession No. ML25043A348).

3 See id., Enclosure 5.

4 See id., Enclosure 6 (Framatome Affidavit, Proprietary Information Notice); 10 C.F.R § 2.390(a)(4).

5 Holtec Palisades, LLC; Palisades Nuclear Plant; License Amendment Request, 90 Fed. Reg. 15,722-15,727 (Apr. 15, 2025) (Opportunity to comment, request a hearing, and petition for leave to intervene; order imposing procedures).

6 Id. at 15,726.

within the Framatome Report should be granted. Accordingly, as discussed below, upon execution of non-disclosure agreements and agreeing to be bound by the terms of a protective order by the Requestors and their expert witness, access to the unredacted Framatome report should be granted to Requestors counsel, Mr. Terry Lodge and Mr. Wallace Taylor, as well as to Requestors expert, Mr. Arnold Gundersen.

I.

Standing Pursuant to 10 C.F.R. § 2.309(d)(1), the Commission established general standing criteria that requires a petitioner to provide the (i) name, address, and telephone number of the petitioner, (ii) nature of the [petitioners] right under the [Atomic Energy Act] to be made a party to the proceeding, (iii) nature and extent of the [petitioners] property, financial or other interest in the proceeding, and (iv) possible effects of any decision or order that may be issued in the proceeding on the [petitioners] interest.7 For Requestors, standing would be established through a showing that at least one of its members has standing and has authorized the organization to request a hearing on the members behalf.8 In making a standing determination the Commission will also apply a three part inquiry into whether the requestor has demonstrated (i) an injury in fact that is (2) fairy traceable to the challenged action, and (3) is likely to be redressed by a favorable decision.9 In this matter, the proposed LAR would revise the technical specifications to allow for the use of Framatome Alloy 690 sleeves to repair the defective steam generator tubes as an alternative to removing the tubes from service by plugging. 10 The LAR states [t]his will support the return to service of the steam generators as part of the potential resumption of power operations at the Palisades facility.11 In your Access Request you listed the Requestors who expect to intervene... and their interests that could be harmed by the license amendment requests... Moreover, you identified that on March 31, 2025, the Atomic Safety and Licensing Board (Board) in the Palisades ancillary docket 50-255-LA-3 issued a Memorandum and Order, determining that the same five Requestors had standing to challenge the proposed Palisades restart.12 The Boards order holds, inter alia, that all five Petitioning Organizations seek to represent members who have standing in their own right based on their proximity to Palisades and their concerns from potential restart... [and have] demonstrated that the interests they seek to protect in challenging the potential restart of Palisades are germane to their purposes.13 Therefore, in light of the Boards determination, the NRC staff finds that there is a reasonable basis to believe that Requestors are likely to establish organizational standing should Requestors decide to submit a petition to intervene..

7 See 10 C.F.R § 2.309(d)(1)(i) - (iv); see also 42 U.S.C. § 2239(a)(1)(A).

8 Private Fuel Storage, L.L.C. (Independent Spent Fuel Storage Installation), CLI-99-10, 49 NRC 318, 323 (1999).

9 Calvert Cliffs 3 Nuclear Project, LLC (Calvert Cliffs Nuclear Power Plant, Unit 3), CLI-09-20, 70 NRC 911, 915 (2009).

10 Holtec Palisades, LLC; Palisades Nuclear Plant; License Amendment Request, 90 Fed. Reg. 15,722 (Apr. 15, 2025).

11 Id.

12 Holtec Decommissioning International, LLC, (Palisades Nuclear Plant), Memorandum and Order (Ruling on Intervention Petitioners) LBP-25-04, 101 NRC __, __ (March 31, 2025) (slip op. at 20-23).

13 Id. at 22-23.

II.

Need for access to SUNSI The Commissions policy regarding access to SUNSI balances, the applicants interest in protecting proprietary information with the petitioners legitimate interest in obtaining information that is necessary to allow for meaningful participation in the adjudicatory proceeding.14 Additionally, to meet the need criterion, the Requestors are required to provide, (1) an explanation of the importance of the requested information to the proceeding, i.e., how the information relates to the license application or to NRC requirements or guidance, and how it will assist the requester in seeking intervention; and (2) an explanation of why existing publicly available versions of the application would not be sufficient.15 In your Access Request, you identified several factors as to why you required access to the SUNSI.16 First, you stated that the [t]he license amendment request proposing to address the deficient condition of the Palisades steam generators is allegedly supported by an analysis and report from Framatome.17 Second, you stated that the public version of the [Framatome Report] has many portions that have been redacted that you assert makes it difficult, and in some instances impossible, to know the nature of the redacted information.18 Third, you stated that the redacted information appears to be technical information claiming to justify the proposed sleeves on the steam generators will be adequate to allow Palisades to safely return to power operation status.19 Fourth, you stated that the redacted information appears to include the results of calculations and other technical specifications that were important to the conclusions in the report that installing sleeves on the steam generators would be the preferred option.20 Fifth, you stated that Requestors have retained an expert to evaluate the issues inherent in trying to return Palisades to operational status... [and] [w]ithout having access to the technical information redacted from the Framatome Report, [the expert] will not be able to properly evaluate the report and its conclusions and render an expert opinion in support of a contention challenging the license amendment.21 Finally, you stated that with access to the SUNSI, you will be able to know how to properly use the information, with [the experts] input, to craft contentions to support a petition to intervene in the licensing proceeding.22 Pursuant to 10 C.F.R. § 2.309(f)(1)(vi), contentions must be based on the application and must provide sufficient information to show that a genuine dispute exists with the application on a material issue of law or fact. Based on your statements included in your Access Request, the NRC staff has determined that you have adequately explained why the unredacted Framatome Report is necessary for the Requestors to meaningfully participate in this 14 See Susquehanna Nuclear, LLC (Susquehanna Steam Electric Station, Units 1 and 2), CLI-17-4, 85 NRC 59, 67 (2017) (citing 10 C.F.R. § 2.390(b)(2)); see also South Texas Project Nuclear Operating Co.

(South Texas Project, Units 3 and 4), CLI-10-24, 72 NRC 451, 453-455 (2010).

15 See Nuclear Fuel Services, Inc. (License Amendment Application), LBP-22-2, 96 NRC 129, 142 (2022);

see also South Texas Project, CLI-10-24, 72 NRC at 465.

16 Access Request at 3.

17 Id.

18 Id.

19 Id.

20 Id.

21 Access Request at 3.

22 Id.

proceeding and why the SUNSI is necessary to provide the basis and specificity needed for crafting the Requestors contentions.

In conclusion, the NRC staff has determined that there is an adequate basis in belief to determine that the Requestors are likely to establish standing in this proceeding. Further, the NRC staff also determined that you have adequately explained why access to the unredacted Framatome Report would be necessary for the Requestors to meaningfully participate in this proceeding. Therefore, pursuant to the SUNSI Order:

Any party, other than the Requestors, may challenge the NRC staffs determination to grant access to the SUNSI within 5 days of this filing.

NRC staff will file a motion for Protective Order and draft a Non-Disclosure Agreement Affidavit within 20 days of this filing.

Access to the SUNSI will be granted to Requestors counsel Mr. Terry Lodge and Mr. Wallace Taylor, and Requestors expert, Mr. Arnold Gundersen once all parties have executed non-disclosure affidavits and have agreed to be bound by the terms of a protective order setting forth the terms and conditions to prevent the unauthorized or inadvertent disclosure of SUNSI.

Sincerely.

/Signed (electronically) by/

Kristopher P. Wilson Counsel for NRC Staff U.S. Nuclear Regulatory Commission Mail Stop: O15 B04 Washington, DC 20555-0001 Phone: (301) 415-0672 Email: kris.wilson@nrc.gov Docket No. 50-255-LA-4

Enclosures:

Petitioning Organizations Access Request Framatome Notice Letter CC w/ enclosures:

Distribution via Electronic Filing Philip A. Opsal (via email)

Manager, Product Licensing Framatome, Inc.

Email: Philip.Opsal@framatome.com

ENCLOSURE 1 SUNSI ACCESS REQUEST

April 15, 2025 Office of the Secretary Nuclear Regulatory Commission VIA EMAIL Washington, D.C. 20555-0001 Attention: Rulemakings and Adjudication Staff Re: Palisades Request to to Revise Selected Permanently Defueled Technical Specifications to Support Repairing of Steam Generator Tubes by Sleeving; ADAMS Accession No. ML25043A348 SUNSI request Greetings:

This letter is to request access to Sensitive Unclassified Non-Safeguards Information (SUNSI) in the above docket, in which Holtec International requests a license amendment to Revise Selected Permanently Defueled Technical Specifications to Support Repairing of Steam Generator Tubes by Sleeving. This license amendment request appears in ADAMS as Accession No. ML25043A348. It was placed into ADAMS on February 21, 2025, and has been noticed in the Federal Register on April 15, 2025, at 90 Federal Register 15722.

This license amendment, if granted, would be one aspect of a multi-faceted plan to return the Palisades Nuclear Plant to power operation status from its current decommissioning status.

The steam generators at Palisades are severely compromised and instead of replacing them Holtec proposes to simply put sleeves on the generator tubes.

The potential parties who expect to intervene in the above docket to challenge the license amendment request described above and their interests that could be harmed by the license amendment request are described as follows:

Beyond Nuclear Beyond Nuclear is a not-for-profit public policy, research, education organization based in Takoma Park, Maryland that advocates the immediate expansion of renewable energy sources to replace commercial nuclear power generation. Beyond Nuclear has over 12,000 members of whom a number reside, work and recreate near the Palisades Nuclear Plant, and who would intervene to protect their interests in physical health and safety, the health and safety of their family members, their real property, and the health and stability of the physical environment proximate to Palisades. Beyond Nuclears address is 7304 Carroll Ave., #182, Takoma Park, MD 20912, phone (301) 270-2209, www.beyondnuclear.org.

Michigan Safe Energy Future Michigan Safe Energy Future (MSEF) is a grassroots association of people in western and southwestern Michigan which since 2013 has advocated for the permanent shutdown of Palisades Nuclear Plant and replacement of nuclear and natural gas power generation with safe and renewable nonnuclear energy technologies. MSEF has a dozen members and does not have a fixed office address. At least two of its members live within 1.5 miles of the Palisades plant. They would intervene to protect their interests in physical health and safety, the health and safety of their family members, their real property, and the health and stability of the physical environment proximate to Palisades.

Dont Waste Michigan Dont Waste Michigan (DWM) is a 40-year-old grassroots association with over 50 members in southern, western and central Michigan. DWM is located at 811 Harrison St.,

Monroe, MI 48161. DWM works to shut down aging, dangerous nuclear power plants in the Great Lakes Basin; to halt or block the construction of new nuclear power plants; to educate the public about the dangers of nuclear power and nuclear waste, its deadly by-product; and to block the practice of landfilling nuclear waste. DWM has members who live near the Palisades plant. They would intervene to protect their interests in physical health and safety, the health and safety of their family members, their real property, and the health and stability of the physical environment proximate to Palisades.

Three Mile Island Alert Three Mile Island Alert (TMIA) is a nonprofit grassroots organization with approximately 500 members and supporters. TMIA was founded in central Pennsylvania in 1977 as a grassroots advocacy organization opposed to commercial nuclear power for safety and economic reasons, two years before the accident at Three Mile Island, Unit 2. Three Mile Island, Unit 1, which is presently closed and undergoing decommissioning, is more recently being considered for reopening and restoration of power operations, similarly to Palisades.

TMIA opposes a restart for multiple reasons, many relating to the expectations of safe operation of a reactor with some 45 years of operations. TMIA opposes as a matter of policy the proposed restart of Palisades Nuclear Plant. TMIA opposes the grant of the proposed exemption and four operating license amendments for Palisades. TMIA also recognizes that the decisions the Commission makes regarding Palisades will be a precedent for any decisions regarding the attempted restart at Three Mile Island. TMIA has one member who lives near the Palisades plant and would intervene to protect their interests in physical health and safety, the health and safety of their family members, their real property, and the health and stability of the physical environment proximate to Palisades.

Nuclear Energy Information Service Nuclear Energy Information Service (NEIS) is located at 3411 W Diversey Avenue,

1. 13, Chicago, IL 60647. NEIS opposes the grant of the proposed exemption and four amendments to Renewed Facility Operating License (RFOL) No. DPR-20 for the Palisades Nuclear Plant (PNP) sought by Holtec Decommissioning International LLC (HDI) Holtec Palisades, LLC, and Palisades Energy, LLC to cause the potential reauthorization of power

operations at Palisades. NEIS is a nonprofit organization committed to ending nuclear power and advocating for sustainable ecologically sound and socially just energy solutions. NEIS educates, activates and organizes the public on energy issues, builds and mobilizes grass roots power and nonviolent opposition to nuclear power, as it advocates for sustainable and ecologically sound energy alternatives. NEIS has over 200 members, one or more of whom lives within 50 miles of Palisades Nuclear Plant. NEIS is concerned that if the NRC authorizes the proposed exemption from NRC regulations, the reopening and restart of Palisades could adversely affect the public health and safety of its members and the integrity of the physical environment in which its members live.

An Atomic Safety and Licensing Board, in a companion docket regarding Palisades, 50-255-LA-3, determined that all of the potential parties have standing to challenge the proposed restart of Palisades. The ASLB decision is found in ADAMS at ML25090A164.

The license amendment request proposing to address the deficient condition of the Palisades steam generators is allegedly supported by an analysis and report from Framatome, Inc., a nuclear energy consulting company. The Framatome report is an attachment to the license amendment request, but the public version of the report has many portions that have been redacted. Although it is difficult, and in some instances impossible, to know the nature of the redacted information, it appears to be technical information claiming to justify the proposed sleeves on the steam generators will be adequate to allow Palisades to safely return to power operation status. It appears to include the results of calculations and other technical specifications that were important to the conclusions in the report that installing sleeves on the steam generators would be the preferred option.

The requesters have retained the expert evaluation of Arnold Gundersen, an experienced nuclear engineer, to evaluate the issues inherent in trying to return Palisades to operational status. Mr. Gundersen has expressed the opinion that the steam generators cannot be repaired, with sleeves or otherwise, and must be replaced. He will be asked to evaluate the Framatome report to assess its analysis and conclusions. Without having access to the technical information redacted from the Framatome report, Mr. Gundersen will not be able to properly evaluate the report and its conclusions and render an expert opinion in support of a contention challenging the license amendment.

In addition, the requesters attorneys, Wallace Taylor and Terry Lodge, have many years of experience in litigating issues regarding nuclear power and nuclear waste, before the NRC and in the courts. They will be able to know how to properly use the information, with Mr.

Gundersens, expert input, to craft contentions to support a petition to intervene in the licensing proceeding.

Based on the foregoing, the Petitioners request that they be provided with an unredacted version of the Framatome report.

/ s/ Terry J. Lodge

/ s/ Wallace L. Taylor Terry J. Lodge Wallace L. Taylor 316 N. Michigan St, Suite 520 4403 1st Ave. N.E., Suite 402 Toledo, Ohio 43604 Cedar Rapids, Iowa 52402 419-205-7084 319-366-2428 (Fax) 419-932-6625 (Fax) 319-366-3886 e-mail: tjlodge50@yahoo.com e-mail: wtaylorlaw@aol.com CO-COUNSEL FOR PETITIONING ORGANIZATIONS

ENCLOSURE 2 FRAMATOME NOTICE LETTER

April 25, 2025 Philip A. Opsal Manager, Product Licensing Framatome, Inc.

3315 Old Forest Road, Lynchburg, VA 24501 Philip.Opsal@framatome.com RE:

NOTICE OF NRC STAFF GRANTING REQUEST FOR SENSITIVE UNCLASSFIED NON-SAFEGUARDS INFORMATION (SUNSI) OF HOLTEC PALISADES, INC. (HOLTEC), PALISADES NUCLEAR PLANT DOCKET NO. 50-255-LA-4.

Dear Mr. Opsal,

On April 15, 2025, the U.S. Nuclear Regulatory Commission (NRC) received a request on behalf Beyond Nuclear, Michigan Safe Energy Future, Dont Waste Michigan, Three Mile Island Alert, and Nuclear Energy Information Service (Requestors) for access to Sensitive Unclassified Non-Safeguards Information (SUNSI) associated with the Holtec license amendment request (LAR) that would revise the Palisades technical specifications to support repairing of steam generator tubes by sleeving.1 Specifically, the request seeks access to the SUNSI information contained in the report completed by Framatome, Inc., Steam Generator Mechanical TSP Sleeve Qualification Report for 3/4 Tubes at Palisades Nuclear Power Plant (Framatome Report). Accordingly, this letter shall serve to provide notice that the NRC staff has determined that the request for SUNSI access should be GRANTED (a copy of NRC staffs determination is attached herein as Enclosure 1).

Pursuant to the Order Imposing Procedures for Access to SUNSI for Contention Preparation (SUNSI Order) included in the April 15, 2025, Federal Register notice (90 Fed. Reg. 15722), the NRC staff evaluated the SUNSI request and reviewed whether (1) there is a reasonable basis to believe that the Requestors are likely to establish standing to participate in this NRC proceeding, and (2) the requestor has established a legitimate need for access to the SUNSI requested. The NRC staff has determined that the Requestors are likely to establish standing to participate in this proceeding and they have demonstrated a legitimate need for access to the information to formulate contentions. Therefore, the Requestors request for access to the unredacted Framatome Report should be granted. Accordingly, upon their execution of non-disclosure agreements and agreement to be bound by the terms of a 1 See Holtec Palisades, LLC, License amendment application to Revise Selected Permanently Defueled Technical Specifications to Support Repairing of Steam Generator Tubes by Sleeving, 90 FR 15722 (April 15, 2025).

protective order,2 access to the unredacted Framatome report should be granted to Requestors counsel, Mr. Terry Lodge and Mr. Wallace Taylor, as well as to Requestors expert, Mr. Arnold Gundersen.

The SUNSI Order provides that [a] party other than the [Requestors] may challenge an NRC staff determination granting access to SUNSI whose release would harm that partys interest independent of the proceeding. Such a challenge must be filed within 5 days of the notification by the NRC staff of its grant of access. Any challenge must be filed with the presiding officer appointed to the matter or, if no presiding officer has been appointed, the Chief Administrative Law Judge. As Manager of Product Licensing for Framatome, Inc., and preparer of the Framatome Report, you are hereby provided with notice that the SUNSI request is granted. Within the next 20 days, NRC staff will provide copies of the motion for Protective Order and draft Non-Disclosure Affidavit for your review and records.

Should you have any questions concerning this matter, please do not hesitate to contact the Office of the General Counsel, at the information provided below.

Sincerely,

/Signed (electronically) by/

Kristopher P. Wilson Counsel for NRC Staff U.S. Nuclear Regulatory Commission Mail Stop: O15 B04 Washington, DC 20555-0001 Phone: (301) 415-0672 Email: kris.wilson@nrc.gov CC w/ enclosures:

Distribution via Electronic Filing

Enclosures:

NRC Staff Determination Letter Terry J. Lodge, Esq.

Co-Counsel for Petitioning Organizations Email: Tjlodge50@yahoo.com Wallace L. Taylor, Esq.

Co-counsel for Petitioning Organizations Email: wtaylorlaw@aol.com 2 The NRC staff will file a motion for Protective Order and draft a Non-Disclosure Agreement Affidavit within 20 days of this filing. Access to the SUNSI will be granted to Requestors counsel Mr. Terry Lodge and Mr. Wallace Taylor, and Requestors expert, Mr. Arnold Gundersen, once all parties have executed non-disclosure affidavits and have agreed to be bound by the terms of a protective order setting forth the terms and conditions to prevent the unauthorized or inadvertent disclosure of SUNSI.

Counsel for Holtec Palisades, LLC Balch and Bingham LLP 1710 Sixth Avenue North Birmingham, AL 35203 M. Stanford Blanton, Esq.

Grant Eskelsen, Esq.

Alan D. Lovett, Esq.

Jason B. Tompkins, Esq.

Email: sblanton@balch.com geskelsen@balch.com alovett@balch.com jtompkins@balch.com

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD PANEL In the Matter of HOLTEC PALISADES, LLC (Palisades Nuclear Plant)

Docket Nos. 50-255-LA-4 Certificate of Service Pursuant to 10 C.F.R. § 2.305, I hereby certify that copies of the foregoing letters, dated April 25, 2025, have been served upon the Electronic Information Exchange (the NRCs E-Filing System) and to Philip A. Opsal, Project Licensing Manager, Framatome, Inc., via email, in the captioned proceeding, this 25th day of April 2025.

/Signed (electronically) by/

Kristopher P. Wilson Counsel for NRC Staff Mail Stop: O-14-A44 Washington, DC 20555-0001 Telephone: (301) 415-0672 Email: kris.wilson@nrc.gov Dated in Rockville, Maryland this 25th day in April 2025