ML25337A372
| ML25337A372 | |
| Person / Time | |
|---|---|
| Site: | 07201041 |
| Issue date: | 12/18/2025 |
| From: | Yoira Diaz-Sanabria Storage and Transportation Licensing Branch |
| To: | Richards A South Texas |
| References | |
| EPID L-2025-FPR-0000 | |
| Download: ML25337A372 (0) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 Andrew M. Richards, Jr.
Director, Regulatory Affairs and Emergency Preparedness South Texas Projects Electric Generating Station P.O. Box 289 Wadsworth, TX 77483
SUBJECT:
U.S. NUCLEAR REGULATORY COMMISSION ANALYSIS OF SOUTH TEXAS PROJECT NUCLEAR OPERATING COMPANY INITIAL AND UPDATED DECOMMISSIONING FUNDING PLANS FOR THE SOUTH TEXAS PROJECT UNIT 1 AND UNIT 2 INDEPENDENT SPENT FUEL STORAGE INSTALLATION
Dear Andrew M. Richards,
Jr.:
By letter dated September 26, 2018 (Agencywide Documents Access and Management System [ADAMS] Accession No. ML18269A258), South Texas Project Nuclear Operating Company (STPNOC), submitted, for U.S. Nuclear Regulatory Commission (NRC) staff review and approval, an initial decommissioning funding plan (DFP) for the independent spent fuel storage installation (ISFSI) for the individual co-owners (owners) at South Texas Project Unit 1 and Unit 2 (STP 1 and 2) for the 44 percent, 40 percent, and 16 percent ownership for NRG South Texas LP, City Public Service Board of San Antonio (CPS Energy), and City of Austin (Austin Energy) respectively.
By letter dated September 27, 2021 (ML21270A142), STPNOC submitted for NRC staff review and approval, an updated DFP for its ISFSI at STP 1 and 2 for the 44 percent, 40 percent, and 16 percent ownership for NRG South Texas LP, CPS Energy, and Austin Energy respectively.
By letter dated September 25, 2024 (ML24270A273), STPNOC submitted for NRC staff review and approval, an updated DFP for its ISFSI at STP 1 and 2 for the 42 percent, 42 percent, and 16 percent ownership for 1Constellation Energy, 2CPS Energy, and Austin Energy respectively.
In accordance with Title 10 of the Code of Federal Regulations (10 CFR) Sections 72.30(b) and (c), and using NUREG-1757, Vol. 3, Rev. 1, Consolidated Decommissioning Guidance, the NRC staff reviewed STPNOCs initial and updated DFPs, including the initial and updated decommissioning cost estimates (DCEs) and the method of assuring funds for decommissioning.
1 ML23279A038 - Indirect transfer of the possession-only nonoperating interests in the NRC licenses for the Facility from NRG South Texas to Constellation Energy Generation, LLC.
2 ML24319A034 - Direct transfer of a 2-percent ownership interest of Renewed Facility Operating License Nos. NPF-76 and NPF-80 for South Texas Project, Units 1 and 2, respectively, and the general license for the STP ISFSI from Constellation South Texas, LLC to CPS Energy.
December 18, 2025
A. Richards, Jr.
2 Pursuant to 10 CFR 72.30(b), each holder of, or applicant for, a license under 10 CFR Part 72 must submit for NRC review and approval a DFP containing information on how reasonable assurance will be provided that funds will be available to decommission its ISFSIs. The DFP must contain a detailed DCE, in an amount reflecting: (1) the cost of an independent contractor to perform all decommissioning activities, (2) an adequate contingency factor, and (3) the cost of meeting the 10 CFR 20.1402 unrestricted use criteria (or the cost of meeting the 10 CFR 20.1403 restricted use criteria provided the licensee can demonstrate its ability to meet these criteria). The licensees DFP must also identify and justify using the key assumptions contained in the DCE. Further, the DFP must describe the method of assuring funds for ISFSI decommissioning, including means for adjusting cost estimates and associated funding levels periodically over the life of the ISFSI. Additionally, the DFP must specify the volume of onsite subsurface material containing residual radioactivity that will require remediation to meet the criteria for license termination and contain a certification that financial assurance for ISFSI decommissioning has been provided in the amount of the DCE.
The NRC staff reviewed and analyzed the information submitted by STPNOC in the initial DFP on how reasonable assurance will be provided that funds will be available to decommission the ISFSI, including the amount of the DCE and the method of assuring funds for decommissioning.
In the 2018 initial DFP, STPNOC estimated that the total cost to decommission the ISFSI at STP 1 and 2 for unrestricted use is $17.1 million, in 2018 dollars. Based on its analysis of STPNOCs initial DFP, the staff finds that the submitted DCE is based on reasonable costs of a third-party contractor which includes an adequate contingency factor and is based on reasonable and documented assumptions. Therefore, the NRC staff finds that the DCE adequately estimates the cost, at this time, to carry out required ISFSI decommissioning activities prior to license termination, and that the DCE is acceptable.
STPNOC relied on a trust fund, per the requirements of 10 CFR 50.75 (b), (e), and (h) to provide financial assurance for the STP 1 and 2 ISFSI. STPNOC have segregated funds in a subaccount within the master trust to fund ISFSI decommissioning, they are rate regulated by the PUCT (Public Utility Commission of Texas); these funds would be used to pay for the ISFSI decommissioning, a method authorized by 10 CFR 50.75(e) and 10 CFR 72.30(e)(5).
This is allowed because STP 1 and 2 ISFSI belongs to a licensee with a power reactor license under 10 CFR Part 50. The NRC staff finds that the aggregate dollar amount of the trust fund provided by STPNOC provides adequate financial assurance to cover the cost estimates, and therefore, are acceptable.
Based on its financial analyses, the NRC staff finds that the initial DFP contain the information required by 10 CFR 72.30(b) and that STPNOC provided reasonable assurance that funds will be available to decommission the ISFSI at STP 1 and 2.
Pursuant to 10 CFR 72.30(c), at the time of license renewal and at intervals not to exceed 3 years, the initial DFP required to be submitted by 10 CFR 72.30(b) must be resubmitted with adjustments, as necessary, to account for changes in costs and the extent of contamination in an updated DFP. The updated DFP must update the information submitted with the original or prior approved plan. In addition, the updated DFP must also specifically consider the effect of the following events on decommissioning costs, as required by 10 CFR 72.30(c)(1)-(4): (1) spills of radioactive material producing additional residual radioactivity in onsite subsurface material, (2) facility modifications, (3) changes in authorized possession limits, and (4) actual remediation costs that exceed the previous cost estimate.
A. Richards, Jr.
3 In accordance with 10 CFR 72.30(c), and using NUREG-1757, Vol. 3, Rev. 1, Consolidated Decommissioning Guidance, dated February 2012, the NRC staff reviewed the following updated DFPs submitted by STPNOC, including the updated DCEs and the method of assuring funds for decommissioning.
2021 Updated DFP In its 2021 updated DFP, STPNOC estimated that the total cost to decommission the ISFSI at STP 1 and 2, for unrestricted use, to be $18.4 million.
STPNOCs 2021 updated DCE, provided narratives on each of the requirements of 10 CFR 72.30(c)(1)-(4). Specifically, the licensee explained that there were no changes in the factors listed in 10 CFR 72.30(c)(1)-(4). Based on its review of STPNOCs 2021 submittal, the NRC staff finds that the updated DCE: was based on reasonable costs of a third-party contractor; included an adequate contingency factor; reflected the cost of meeting the 10 CFR 20.1402 criteria for unrestricted use; and was based on reasonable and documented assumptions.
Therefore, the NRC staff finds that the 2021 updated DCE adequately estimated the cost, at the time, to carry out required ISFSI decommissioning activities prior to license termination, and that the updated DCE is acceptable.
STPNOC relied on a trust fund, per the requirements of 10 CFR 50.75 (b), (e), and (h) to provide financial assurance for the STP 1 and 2 ISFSI. STPNOC have segregated funds in a subaccount within the master trust to fund ISFSI decommissioning, and they are rate regulated by the PUCT; these funds would be used to pay for the ISFSI decommissioning, a method authorized by 10 CFR 50.75(e) and 10 CFR 72.30(e)(5). This is allowed because STP 1 and 2 ISFSI belongs to a licensee with a power reactor license under 10 CFR Part 50. The NRC staff has reviewed the licensees 2021 updated DFP and found that the aggregate dollar amount of the licensees financial instruments provides adequate financial assurance to cover its cost estimates. Therefore, the NRC staff finds that the surety method is acceptable.
2024 Updated DFP In its 2024 updated DFP, STPNOC estimated that the total cost to decommission the ISFSI at STP 1 and 2, for unrestricted use, to be $20.2 million.
STPNOCs 2024 updated DCE, provided narratives on each of the requirements of 10 CFR 72.30(c)(1)-(4). Specifically, the licensee explained that there were no changes in the factors listed in 10 CFR 72.30(c)(1)-(4). Based on its review of STPNOCs 2024 submittal, the NRC staff finds that the updated DCE: was based on reasonable costs of a third-party contractor; included an adequate contingency factor; reflected the cost of meeting the 10 CFR 20.1402 criteria for unrestricted use; and was based on reasonable and documented assumptions.
Therefore, the NRC staff finds that the 2024 updated DCE adequately estimated the cost, at the time, to carry out required ISFSI decommissioning activities prior to license termination, and that the updated DCE is acceptable.
STPNOC relied on a trust fund, per the requirements of 10 CFR 50.75 (b), (e), and (h) to provide financial assurance for the STP 1 and 2 ISFSI. STPNOC have segregated funds in a subaccount within the master trust to fund ISFSI decommissioning, and they are rate regulated by the PUCT; these funds would be used to pay for the ISFSI decommissioning, a method authorized by 10 CFR 50.75(e) and 10 CFR 72.30(e)(5). This is allowed because STP 1 and 2 ISFSI belongs to a licensee with a power reactor license under 10 CFR Part 50. The NRC staff
A. Richards, Jr.
4 has reviewed the licensees 2024 updated DFP and found that the aggregate dollar amount of the licensees financial instruments provides adequate financial assurance to cover its cost estimates. Therefore, the NRC staff finds that the surety method is acceptable.
Conclusion The NRC staff reviewed the initial and updated DFPs submitted by STPNOC, including the updated decommissioning cost estimates and the method of assuring funds for decommissioning, in accordance with 10 CFR 72.30(b) and (c) and NUREG-1757, Vol. 3, Rev.
1, Consolidated Decommissioning Guidance. Based on its review, the NRC staff finds that the initial and updated DFPs contain the information required by 10 CFR 72.30(b) and (c), and that STPNOC have provided reasonable assurance that funds will be available to decommission the ISFSI at STP 1 and 2.
In addition to the NRC staffs review of the initial and updated DFPs, the NRC staff completed an environmental review of the DFPs submitted for the ISFSI at STP 1 and 2. A Federal Register notice summarizing the results of the environmental review was published on December 17, 2025. The environmental assessment (EA) and finding of no significant impact and related documents for the ISFSI are available in https://www.regulations.gov under the Docket ID: NRC-2025-1535. The EA for STP 1 and 2 is located at ML25258A170.
If you have any questions regarding this matter, please contact me at (301) 415-8064 or via email at yoira.diaz-sanabria@nrc.gov.
Sincerely, Yoira Diaz-Sanabria, Chief Storage and Transportation Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards Docket No.: 72-1041 EPID No.: L-2025-FPR-0000 Signed by Diaz-Sanabria, Yoira on 12/18/25
ML25337A372 OFFICE NMSS/DFM NMSS/DFM NMSS/DFM NAME DMelendez-Colon SFigueroa YDiaz-Sanabria DATE 12/05/2025 12/11/2025 12/18/2025