CNL-25-099, Unit 2 - Request for Exemption from Requirements of 10 CFR 54.17, Filing of Application

Unit 2 - Request for Exemption from Requirements of 10 CFR 54.17, Filing of Application

ML25233A135
Person / Time
Site:	Watts Bar
Issue date:	08/21/2025
From:	Hulvey K Tennessee Valley Authority
To:	Office of Nuclear Reactor Regulation, Document Control Desk
References
CNL-25-099
Download: ML25233A135 (1)

Text

1101 Market Street, Chattanooga, Tennessee 37402 CNL-25-099 August 21, 2025 10 CFR 54.15 10 CFR 54.17 ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Watts Bar Nuclear Plant, Unit 2 Facility Operating License No. NPF-96 NRC Docket Nos. 50-391

Subject:

Request for Exemption from Requirements of 10 CFR 54.17, Filing of application" Reference:

TVA Letter to NRC, CNL-24-025, Notice of Intent to Pursue License Renewal for Watts Bar Nuclear Plant, Unit 1 - Submittal Schedule, dated March 25, 2024 [ML24085A212]

Pursuant to Title 10 of the Code of Federal Regulations (10 CFR), Part 54.15, Specific exemptions, Tennessee Valley Authority (TVA) requests Nuclear Regulatory Commission approval of the enclosed exemption request for the Watts Bar Nuclear Plant (WBN), Unit 2, from the specific requirements of 10 CFR 54.17, Filing of application. The requirements of 10 CFR 54.17(c) require that an application for a renewed facility operating license (RFOL) be submitted no earlier than 20 years before the expiration of the operating license currently in effect. WBN Unit 2 is licensed to operate until October 2055, and so is currently ineligible to apply for a RFOL license any earlier than October 2035. TVA believes there would be large efficiencies gained (and increased aging management program effectiveness achieved), without any adverse impacts on public health and safety, if a WBN Unit 2 license renewal application (LRA) could be combined with the planned WBN Unit 1 LRA scheduled for submittal by fourth quarter 2026. Accordingly, TVA requests an exemption to 10 CFR 54.17(c) to allow WBN Unit 2 to submit its LRA earlier than 20 years before the expiration of the current operating license.

Details and supporting analysis for the exemption request are provided in Enclosure 1. An environmental assessment supporting the exemption request is provided in Enclosure 2.

U. S. Nuclear Regulatory Commission CNL-25-099 Page 2 August 21, 2025 TVA requests approval of this exemption request by November 29, 2025.

If the NRC grants the requested exemption, this submittal serves as a revision to the referenced WBN Unit 1 Notice of Intent letter and hereby notifies the NRC of TVAs intent to submit a joint Unit 1 and 2 LRA in the 4th quarter of 2026 as requested by Regulatory Information Summary 2009-06.

There are no new regulatory commitments associated with this submittal. Please address any questions regarding this request to Peter J. Donahue, Director, License Renewal, at pjdonahue@tva.gov.

Respectfully, Kimberly D. Hulvey General Manager, Nuclear Regulatory Affairs & Emergency Preparedness

Enclosures:

1. Request for Exemption from Requirements of 10 CFR 54.17(c)

2. Environmental Assessment cc (Enclosures):

NRC Regional Administrator - Region II NRC Senior Resident Inspector - Watts Bar Nuclear Plant NRC Project Manager - Watts Bar Nuclear Plant Digitally signed by Edmondson, Carla Date: 2025.08.21 07:29:05 -04'00' CNL-25-099 E1-1 of 7 Request for Exemption from Requirements of 10 CFR 54.17(c)

I.

SUMMARY

Title 10 of the Code of Federal Regulations (10 CFR) Part 54 sets forth the requirements for the renewal of operating licenses for nuclear power plants. Part 54.17(c) states that "An application for a renewed license may not be submitted to the Commission earlier than 20 years before the expiration of the operating license currently in effect." Based on this limitation, Watts Bar Nuclear Plant (WBN), Unit 2 would not be able to submit an application for license renewal prior to October 22, 2035. The underlying purpose of this regulation is to ensure that an applicant for license renewal has accumulated sufficient operating experience such that an adequate assessment of age-related degradation of plant structures, systems, and components may be made. Exemptions are authorized by 10 CFR 54.15 for 10 CFR Part 54 in accordance with 10 CFR 50.12.

The Tennessee Valley Authority (TVA) hereby requests an exemption from the requirement of 10 CFR 54.17(c) pursuant to 10 CFR 54.15 and 10 CFR 50.12. TVA requires this exemption in order to process and submit the WBN Unit 2 license renewal application concurrently with the WBN Unit 1 license renewal application. Currently, WBN Unit 1 has over 29 years and WBN Unit 2 has over nine years of operating experience. The following sections of this request demonstrate, pursuant to 10 CFR 50.12, that special circumstances exist to warrant the approval of this request; namely, that the application of 10 CFR 54.17(c) to WBN Unit 2 is not necessary to achieve the underlying purpose of the rule. Additionally, both TVA and the NRC will benefit from the efficiencies gained with the preparation and review of a single dual-unit application as opposed to preparation and review of separate WBN Unit 1 and Unit 2 applications submitted at different times. This exemption request seeks schedular relief only. TVA does not at this time seek an exemption from any of the substantive requirements of 10 CFR Part 54 in connection with the preparation of the WBN Unit 1 and WBN Unit 2 license renewal application. TVA will satisfy the pertinent requirements of 10 CFR Part 54 when preparing and submitting the WBN Unit 1 and Unit 2 license renewal application. Public health and safety will not be adversely affected by the granting of this exemption II.

BACKGROUND TVA is the exclusive owner and operator and the holder of record for the operating license for WBN Units 1 and 2. The WBN units are classified as Westinghouse Four-Loop Pressurized Water Reactors with ice condensers. The licensed thermal capacity of both units is 3459 MWt. The operating license for WBN Unit 1 was issued in February 1996.

Commercial operation of WBN Unit 1 was initiated in May 1996. The operating license for WBN Unit 2 was issued in October 2015, and commercial operation commenced in October 2016. Although Watts Bar was conceived as a dual-unit site (with Construction Permits issued in January 1973), the construction of Unit 2 was halted in 1985 and then resumed in 20071. As a result, WBN Unit 1 has an operating license expiration date of February 7, 2036, and the Unit 2 operating license expires on October 21, 2055.

1 At the time of the suspension of construction the major structures were in place and passive equipment such as reactor coolant system piping had been installed.

CNL-25-099 E1-2 of 7 III.

BASIS FOR EXEMPTION REQUEST PURSUANT TO 10 CFR 50.12 The issuance of renewed operating licenses for nuclear power plants is governed by 10 CFR Part 54. The filing of license renewal applications is addressed in 10 CFR 54.17, which states: "An application for a renewed license may not be submitted to the Commission earlier than 20 years before the expiration of the operating license currently in effect." Since TVA desires to file a license renewal application for WBN Unit 2 prior to October 21, 2035 (the date on which the 20-year requirement would be satisfied), an exemption from the requirements of 10 CFR 54.17(c) is necessary. Regulation 10 CFR 54.15 regarding license renewal states, "Exemptions from the requirements of this part may be granted by the Commission in accordance with 10 CFR 50.12."

10 CFR 50.12(a) states, in pertinent part:

The Commission may, upon application by any interested person or upon its own initiative, grant exemptions from the requirements of the regulations of this part, which are:

(1) Authorized by law, will not present an undue risk to the public health and safety, and are consistent with the common defense and security.

(2) The Commission will not consider granting an exemption unless special circumstances are present. Special circumstances are present whenever...

(ii) 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 following analysis demonstrates that the requirements of 10 CFR 50.12(a)(1) are satisfied and that the special circumstances of 10 CFR 50.12(a)(2)(ii) are applicable.

A. 10 CFR 50.12(a)(1)

This paragraph of the regulation requires an exemption request to satisfy three requirements: (1) the request must be authorized by law, (2) the request must not present an undue risk to public health and safety, and (3) the request must be consistent with the common defense and security. These three requirements are discussed below.

1. Authorized By Law The schedular requirement of 10 CFR 54.17(c) was adopted solely at the discretion of the NRC in the exercise of its rulemaking authority under section 161 of the Atomic Energy Act, 42 U.S.C., paragraph 2201. No statute required the NRC to adopt this provision. No other regulation of either the NRC or another agency required the NRC to adopt this provision. The NRC has authority under 10 CFR 50.12 to grant exemptions from the requirements of NRC regulations. Therefore, no statutory or regulatory provision precludes the Commission from granting the requested exemption upon a proper showing.

Specifically, 10 CFR Part 54 states that the NRC may grant exemptions from the requirements of 10 CFR Part 54 in accordance with 10 CFR 50.12.

Accordingly, this requested exemption is "authorized by law," as required by 10 CFR 50.12(a)(1).

CNL-25-099 E1-3 of 7 Further, when the current license renewal rule was promulgated in 10 CFR Part 54, the NRC indicated that it would consider an exemption from 10 CFR 54.17(c) if sufficient information is available on a plant specific basis to justify submission of an application to renew a license before completion of 20 years of operation.2 The NRC has granted similar exemptions to Florida Power and Light3 and Southern Company4.

2. No Undue Risk to Public Health and Safety The granting of this exemption poses no risk to public health and safety. This exemption is for schedular relief only. Granting an exemption from the requirements of 10 CFR 54.17(c) only relieves TVA of the requirement to wait until at least October 21, 2035, before submitting an application for renewal of the WBN Unit 2 operating license. The substantive requirements of the license renewal process as provided for in 10 CFR Part 54 still apply to any license renewal application to be submitted for WBN Unit 2. The intent of 10 CFR 54.17(c) is to ensure that sufficient plant operating experience is accrued prior to any application for license renewal. The 10 CFR 50.12(a)(2)(ii) discussion below provides the details and basis for why sufficient operating experience is available to support a license renewal application for WBN Unit 2.

3. Common Defense and Security The granting of this exemption request is consistent with the common defense and security. As noted above, this exemption request is for schedular relief only; all other NRC requirements pertaining to the renewal of the WBN Unit 2 operating license will be fully satisfied in the license renewal application.

Further, there are no security or safeguards issues raised by the proposed exemption.

B. 10 CFR 50.12(a)(2)(ii) 10 CFR 50.12(a)(2) lists six "special circumstances" for which an exemption may be granted. Pursuant to the regulation, it is necessary for one of these special circumstances to be present in order for the NRC to consider granting an exemption request. One special circumstance that is applicable to this exemption request is found in 10 CFR 50.12(a)(2)(ii), which states:

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 20-year requirement of 10 CFR 54.17(c) was a part of the original Part 54 rule as published in 1991. When this rule was first issued, the NRC stated that the purpose of 2 60 Federal Register at 22488, May 8, 1995 3 NRC letter to Florida Power & Light, St. Lucie Plant, Unit No. 2 - Exemption from Schedular Requirements of 10 CFR Part 54.17, Filing of Application (EPID L-2021-LLE-0020), July 20, 2021

[MLML2165A027]

4 NRC letter to Southern Company, Vogtle Electric Generating Plant, Unit 2, Exemption From the Requirements of 10 CFR Part 54, section 54.17(c) Regarding Schedule for License Renewal Application (TAC No. MD2116), dated January 9, 2007 [ML062770492]

CNL-25-099 E1-4 of 7 the requirement was "to ensure that substantial operating experience is accumulated by a licensee before it submits a renewal application." This purpose was reiterated in the Safety Evaluation accompanying the 10 CFR 54.17(c) exemption granted to Florida Power & Light for St. Lucie Plant, Unit 2, wherein the NRC stated:

The Commission's basis for establishing the 20-year limit contained in 10 CFR 54.17(c) is discussed in the 1991 Statements of Consideration for Part 54 (56 FR 64963). The limit was established to ensure that substantial operating experience was accumulated by a licensee before a renewal application is submitted such that any plant-specific concerns regarding aging would be disclosed.

When developing the Part 54 rule change issued in 1995, the NRC considered revising the 20-year requirement and solicited public comments on the subject. Two commenters, the Nuclear Energy Institute and the U.S. Department of Energy, concluded that some plants might have sufficient operating history and plant experience to provide reasonable assurance that aging concerns can be identified with less than 20 years of operation.5 In response to the public comments, the NRC noted that it would not revise the 20-year requirement, but the Commission recognized that some license renewal applicants might have sufficient basis for an exemption:

The Commission is willing to consider, however, plant-specific exemption requests by those applicants who believe that they may have sufficient information available to justify applying for a renewal license prior to 20 years from the expiration date of the current license."

Although the 20-year requirement of 10 CFR 54.17(c) is specifically applicable to the plant applying for a renewed operating license, the operating experience available to a license renewal applicant is not limited solely to the operating experience accumulated by that plant. In the Supplementary Information accompanying the 1991 publication of the rule, the NRC clearly endorsed the use of operating experience available from industry sources when it made the following comment with respect to the 20-year rule:

... both renewal applicants and the NRC will have the benefit of the operational experience from the nuclear industry and are not limited to information developed solely by the utility seeking a renewed license.6 Based on this background, an exemption is appropriate for WBN Unit 2 if sufficient operational experience is available for use in the license renewal process. As indicated above, this operational experience is not limited to that accumulated by WBN Unit 2; it may also include operational experience gained from WBN Unit 1 and from the nuclear industry as well. The discussion that follows outlines how sufficient operating experience and history is available to support a 10 CFR 54.17(c) exemption for WBN Unit 2.

5 Although the 20-year requirement of 10 CFR 54.17(c) is written with respect to years remaining until expiration of a plant's operating license, the focus of this provision is on actual years of operation under the current operating license. Since an operating license is typically issued for a 40-year period (the maximum period allowed by 10 CFR 50.51), the rule effectively requires applicants to have accumulated at least 20-years of operating experience prior to the submittal of a license renewal application.

6 56 Federal Register at 64963, December 13, 1991.

CNL-25-099 E1-5 of 7

1. Plant Design In considering the technical development of a concurrent license renewal application for both WBN units, common attributes between the two units contribute to determining suitable license renewal analyses and assessments. Use of these WBN common attributes in the license renewal process allows crediting the total site operational experience base in satisfaction of the underlying purpose of 10 CFR 54.17(c).

Both units are four-loop pressurized water reactors (PWRs) using ice condensers with nuclear steam supply systems provided by Westinghouse Electric Corporation (WEC). The units are similar to those of the TVA Sequoyah Nuclear Plant (SQN) and other similar WEC plants licensed by the NRC (McGuire, Catawba, and DC Cook). This similarity makes much of the experience with plant aging at WBN Unit 1 and SQN Units 1 and 2 applicable to WBN Unit 2, and vice versa.

Further, the existence of aging effects is primarily a function of the materials used and the environment to which those materials are subjected. WBN Units 1 and 2 not only share some common facilities that are within the scope of the license renewal review, but also have many similar components and materials. There is also considerable similarity in environment. For example, the civil structures are subject to the same soil chemistry, atmospheric and meteorological conditions, and climate.

2. Plant Operations Licensed operators at WBN receive training on both units. Although some of the training is considered unit specific, most aspects of the training are not. For example, license candidates can meet certain training requirements by performing watchstanding or plant manipulations on either unit. Because of the units' similarities, the NRC issues reactor operator (RO) and senior reactor operator (SRO) licenses that are common to WBN Units 1 and 2. If the two units were significantly different, the NRC would grant individual unit licenses in lieu of the dual-unit licenses currently issued.

3. Plant Maintenance and Use of Operating Experience Because of the similarities between WBN Units 1 and 2, personnel of the various plant organizations (e.g., Maintenance and Engineering) are typically assigned work activities on both units. These plant organizations are not divided into separate Unit 1 and Unit 2 groups. Additionally, many of the procedures that govern site activities are not unit specific and require the consideration of operating experience information obtained from several sources, including the WBN site, the TVA nuclear fleet, and the nuclear industry. Some of these procedures are discussed below.

The TVA nuclear fleet Condition Reporting procedure governs the documentation, analysis, and corrective action associated with plant nonconformances and other conditions of concern. This procedure is not site nor unit specific and requires the subject condition of one unit to be reviewed for generic implications that may be applicable to the other unit at WBN and to the other TVA nuclear plants. In addition, CNL-25-099 E1-6 of 7 the conditions that occur at another TVA nuclear plant may be reviewed for applicability to WBN.

The 10 CFR 50.65 maintenance rule implementing procedure requires the consideration of operating experience from industry sources such as the NRC, nuclear vendors, and INPO. This operating experience is factored into condition monitoring programs, root cause evaluations, and the establishment of system/component goals.

The TVA nuclear fleet also has an administrative procedure for the review and dissemination of operating experience obtained from both external and internal sources. This procedure requires screening of information for potential WBN applicability; this information is received from such sources as the NRC (e.g., NRC Information Notices), industry resources, vendor reports/notices, and in-house operating experience. If an item is potentially applicable to WBN, then the information item is addressed in the plant's Corrective Action Program.

4. Plant Environments WBN Unit 2 is physically located adjacent to WBN Unit 1 on the west shore of Chickamauga Lake approximately 50 miles northeast of Chattanooga, TN, and 31 miles northeast of the SQN site. Because of its shared location and similar plant design, the internal and external environments of WBN Unit 2 are similar to those of WBN Unit 1. As such, plant aging effects experienced on WBN Unit 1 are also likely to be experienced on WBN Unit 2. This is one of the primary reasons why, when dispositioning nonconforming or degraded equipment on either WBN unit, plant procedures require consideration of the condition on the other WBN unit.

As demonstrated above, the WBN Unit 1 operating experience is directly applicable to WBN Unit 2. Furthermore, WBN Unit 2, as evidenced by the similarities in design, operation, maintenance and use of operating experience, and environments noted above, continually incorporates operational experience (OE) gained from WBN Unit 1, as well as that gained from industry sources. Of particular note, the NRC-endorsed standard, NEI 95-10, Revision 6, Industry Guideline For Implementing the Requirements of 10 CFR Part 54 - The License Renewal Rule, states the following regarding an Operating Experience Review:

A plant-specific operating experience review should assess the operating and maintenance history. A review of the prior five to ten years of operating and maintenance history should be sufficient [emphasis added]. The results of the review should confirm consistency with documented industry operating experience.

Differences with previously documented industry experience such as new aging effects or lack of aging effects allow consideration of plant-specific aging management requirements.

With the planned joint license renewal application submittal in the 4th quarter of 2026, WBN Unit 2 will have reviewed OE from its initial 10 years of operating life, while the OE review for WBN Unit 1 will have been for its last 10 of 21 years of plant operation.

This accumulated operating experience is more than sufficient to satisfy the underlying purpose of 10 CFR 54.17(c).

CNL-25-099 E1-7 of 7 IV. Conclusion This exemption request provides sufficient basis to support the issuance of an exemption from the schedular requirement of 10 CFR 54.17(c). As required by 10 CFR 50.12, the requested exemption is authorized by law, presents no undue risk to public health and safety, is consistent with the common defense and security, and is supported by "special circumstances." Between the two WBN units, over 38 reactor-years of experience are currently available to support the preparation and review of an application for license renewal. This accumulated operating experience is more than enough to satisfy the underlying purpose of the license renewal schedular requirement. In addition, operating experience gained from industry sources is used to the extent it is available and applicable.

TVA hereby requests NRC authorization to permit the submittal of a license renewal application for WBN Unit 2, concurrently with that for WBN Unit 1, prior to meeting the 10 CFR 54.17(c) schedular requirement. It is expected that any operational experience that might otherwise be gained by waiting until October 21, 2035 to submit the WBN Unit 2 application would be minimal and would not significantly impact the outcome of the license renewal process.

This request is similar to, and consistent with, the exemption requests made by Duke Energy Corporation and Florida Power and Light, which were granted by the NRC.

CNL-25-099 E2-1 of 2 Environmental Assessment In accordance with 10 CFR 51.41 and 10 CFR 51.22(b), TVA has assessed whether the proposed exemption request would require an environmental assessment or environmental impact statement, or whether the request meets the eligibility criteria for categorical exclusion in 10 CFR 51.22(c)(25), as: (i) there is no significant hazards consideration; (ii) there is no significant change in the types or significant increase in the amounts of any effluents that may be released offsite; (iii) there is no significant increase in individual or cumulative public or occupational radiation exposure; (iv) there is no significant construction impact; (v) there is no significant increase in the potential for or consequences from radiological accidents; and (vi) the requirements from which the exemption is sought involves scheduling requirements and other requirements of an administrative nature.

No Significant Hazards Consideration Analysis The proposed exemption would allow Tennessee Valley Authority (TVA) to submit a license renewal application for Watts Bar Nuclear Plant (WBN), Unit 2 more than 20 years before the expiration of the current operating license. No physical changes are being made to the design features or operation of the facility as a result of, or in connection with, the proposed exemption from the procedural requirements in Title 10 of the Code of Federal Regulations (10 CFR) 54.17(c) related to the timing of a license renewal application submittal.

TVA has evaluated whether a significant hazards consideration is involved with the proposed exemption in accordance with the three standards set forth in 10 CFR 50.92, "Issuance of amendment," as discussed below.

1.

Does the proposed exemption involve a significant increase in the probability or consequences of an accident previously evaluated?

Response: No The proposed exemption does not involve a significant increase in the probability or consequences of an accident previously evaluated because it does not involve a change to the design configuration or operation of the facility. The proposed exemption does not affect the source term, containment isolation, or radiological release assumptions used in evaluating the radiological consequences of an accident previously analyzed in the WBN Unit 2 Updated Final Safety Analysis Report. Therefore, the proposed exemption does not involve a significant increase in the probability or consequences of an accident previously evaluated.

2. Does the proposed exemption create the possibility of a new or different kind of accident from any accident previously analyzed?

Response: No The proposed exemption does not involve physical alteration of plant systems, structures, or components, or changes in parameters governing the way the plant is operated and maintained. Therefore, the proposed exemption does not create the possibility of a new or different kind of accident from any accident previously analyzed.

CNL-25-099 E2-2 of 2

3. Does the proposed exemption involve a significant reduction in a margin of safety?

Response: No Margin of safety is associated with confidence in the ability of the fission product barriers (that is, fuel cladding, reactor coolant system pressure boundary, and containment structure) to limit the radiological dose to the public and control room operators in the event of an accident. The proposed exemption has no impact on the margin of safety and robustness provided in the design and construction of the facility. In addition, the proposed exemption will not relax any of the criteria used to establish safety limits, safety system settings, or limiting conditions of operation as defined in the Technical Specifications. Therefore, the proposed exemption does not involve a significant reduction in a margin of safety.

Based on the above evaluation, TVA concludes that the proposed exemption from 10 CFR 54.17 (c) presents no significant hazards consideration under the standards set forth in 10 CFR 50.92 and, accordingly, a finding that the exemption request involves "no significant hazards consideration" is justified.

Additional Considerations for Categorical Exclusion The requirements from which the exemption is sought involves scheduling requirements and other requirements of an administrative nature.

There are no expected changes in the types, characteristics, or quantities of effluents discharged to the environment associated with the proposed exemption. Therefore, the proposed exemption will result in no significant change to the types or significant increase in the amounts of any effluents that may be released offsite.

The proposed exemption does not involve any physical alterations to the plant configuration or any changes to the operation of the facility that could lead to a significant increase in individual or cumulative occupational radiation exposure. Thus, there is no significant increase in individual or cumulative public or occupational radiation exposure.

There is no significant construction impact as no construction activities are associated with the proposed exemption.

There is no significant increase in the potential for or consequences from radiological accidents.

As stated in the no significant hazards considerations discussion, there is no increase in the potential for or consequences from radiological accidents.

==

Conclusion:==

The proposed exemption would change a requirement with respect to installation or use of a facility component located within the restricted area, as defined in 10 CFR 20, or would change an inspection or surveillance requirement. However, the proposed change does not involve (i) a significant hazards consideration, (ii) a significant change in the types or significant increase in the amounts of any effluents that may be released offsite, or (iii) a significant increase in individual or cumulative occupational radiation exposure. Accordingly, the proposed change meets the eligibility criterion for categorical exclusion set forth in 10 CFR 51.22(c)(9).

Therefore, pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the proposed exemption.