ML26068A226
| ML26068A226 | |
| Person / Time | |
|---|---|
| Site: | Duane Arnold  (DPR-049) |
| Issue date: | 03/30/2026 |
| From: | Ballard B Plant Licensing Branch III |
| To: | Coffey R NextEra Energy Duane Arnold |
| References | |
| EPID L-2025-LLM-0006 | |
| Download: ML26068A226 (0) | |
Text
March 30, 2026 Mr. Robert Coffey Executive Vice President, Nuclear Division and Chief Nuclear Officer NextEra Energy Duane Arnold, LLC Mail Stop: EX/JB 700 Universe Blvd.
Juno Beach, FL 33408
SUBJECT:
DUANE ARNOLD ENERGY CENTER AND THE ASSOCIATED INDEPENDENT SPENT FUEL STORAGE INSTALLATION - ORDER APPROVING DIRECT TRANSFER OF LICENSES AND CONFORMING LICENSE AMENDMENT (EPID L-2025-LLM-0006)
Dear Mr. Coffey:
The U.S. Nuclear Regulatory Commission (NRC) staff has completed its review of the application dated November 25, 2025 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML25330A015), as supplemented by letter dated February 23, 2026 (ML26055A092), by NextEra Energy Duane Arnold, LLC (NEDA), Central Iowa Power Cooperative (CIPCO), and Corn Belt Power Cooperative (Corn Belt), requesting, pursuant to Title 10 of the Code of Federal Regulations (10 CFR) Section 50.80, Transfer of licenses, approval for the direct transfer of Renewed Facility License No. DPR-49 for the Duane Arnold Energy Center (DAEC) and the associated general license for the DAEC independent spent fuel storage installation (collectively, the facility). The transfer would consolidate CIPCOs 20-percent ownership interest and Corn Belts 10-percent ownership interest in the facility in NEDA. NEDA also requested, pursuant to 10 CFR 50.90, Application for amendment of license, construction permit, or early site permit, that the NRC approve an administrative amendment to Renewed Facility License No. DPR-49 to reflect the transfer.
is the order that consents to the transfer and approves the conforming license amendment. Enclosure 2 is the draft of the conforming license amendment, which will be issued and made effective at the time the transfer occurs. Enclosure 3 is the NRC staffs safety evaluation related to the license transfer application.
The order will be forwarded to the Office of the Federal Register for publication.
If you have any questions, please contact me at 301-415-0680 or via email at Brent.Ballard@nrc.gov.
Sincerely, Brent Ballard, Project Manager Plant Licensing Branch III Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-331 and 72-32
Enclosures:
- 1. Order
- 2. Draft Conforming License Amendment
- 3. Safety Evaluation cc: GovDelivery Subscribers BRENT BALLARD Digitally signed by BRENT BALLARD Date: 2026.03.30 15:28:59 -04'00'
ENCLOSURE 1 ORDER APPROVING DIRECT TRANSFER OF LICENSES AND CONFORMING AMENDMENT DUANE ARNOLD ENERGY CENTER RENEWED FACILITY LICENSE NO. DPR-49 AND ASSOCIATED INDEPENDENT SPENT FUEL STORAGE INSTALLATION GENERAL LICENSE DOCKET NOS. 50-331 AND 72-32
ENCLOSURE 2 DRAFT CONFORMING LICENSE AMENDMENT FOR DIRECT TRANSFER OF LICENSES DUANE ARNOLD ENERGY CENTER RENEWED FACILITY LICENSE NO. DPR-49 AND ASSOCIATED INDEPENDENT SPENT FUEL STORAGE INSTALLATION GENERAL LICENSE DOCKET NOS. 50-331 AND 72-32
SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO REQUEST FOR DIRECT TRANSFER OF LICENSES AND CONFORMING AMENDMENT DUANE ARNOLD ENERGY CENTER RENEWED FACILITY LICENSE NO. DPR-49 AND ASSOCIATED INDEPENDENT SPENT FUEL STORAGE INSTALLATION GENERAL LICENSE DOCKET NOS. 50-331 AND 72-32
1.0 INTRODUCTION
By application dated November 25, 2025 (Agencywide Documents Access and Management System Accession No. ML25330A015) (license transfer application (LTA)), as supplemented by letter dated February 23, 2026 (ML26055A092), NextEra Energy Duane Arnold, LLC (NEDA),
Central Iowa Power Cooperative (CIPCO), and Corn Belt Power Cooperative (Corn Belt) requested, pursuant to Section 184, Inalienability of Licenses, of the Atomic Energy Act of 1954, as amended (AEA), and Section 50.80, Transfer of licenses, of Title 10 of the Code of Federal Regulations (10 CFR), that the U.S. Nuclear Regulatory Commission (NRC, the Commission) consent to the direct transfer of CIPCO's 20-percent ownership interest and Corn Belts 10-percent ownership interest of Renewed Facility License No. DPR-49 for the Duane Arnold Energy Center (DAEC) and of the associated general license for the DAEC independent spent fuel storage installation (ISFSI) to NEDA. NEDA also requested, pursuant to 10 CFR 50.90, Application for amendment of license, construction permit, or early site permit, that the NRC approve a conforming administrative amendment to Renewed Facility License No. DPR-49 to reflect the proposed transfer, to be issued and made effective at the time the transfer occurs.
2.0 BACKGROUND
The DAEC is a single-unit 1,912 megawatt thermal General Electric (GE) boiling-water reactor (BWR) of the GE BWR-4 design located in Linn County, Iowa, approximately two miles northeast of the town of Palo on the western bank of the Cedar River. The operating license of the DAEC was issued on June 22, 1970, and was renewed on December 16, 2010. NEDA is the licensed operator of the DAEC. The plant was permanently shut down on August 10, 2020, and subsequently all spent nuclear fuel was transferred to the associated ISFSI. In 2025, NEDA provided notice to the NRC of its intent to pursue the subsequent renewal of the DAEC operating license in accordance with 10 CFR Part 54, Requirements for Renewal of Operating Licenses for Nuclear Power Plants; however, the LTA is based on the DAECs current status as a plant in decommissioning.
Current ownership interest in the DAEC and its associated ISFSI is as follows: NEDA owns 70 percent, CIPCO owns 20 percent, and Corn Belt owns 10 percent. The proposed transfer would consolidate 100 percent corporate ownership of the DAEC and its associated ISFSI in NEDA and would have no impact on plant operations, with NEDA remaining the licensed operator. The LTA states that there would be no physical changes to the DAEC or its day-to-day operations as a result of the proposed transfer and that NEDA would remain technically and financially qualified to own and operate the unit. Post-transfer, NEDA would become the sole licensed owner of the DAEC and would hold the DAEC decommissioning trust fund and the rights and obligations under the terms of the Standard Contract for Disposal of Spent Nuclear Fuel and/or High-Level Radioactive Waste with the U.S. Department of Energy (DOE Standard Contract) as it relates to spent nuclear fuel and high-level waste generated at the DAEC, accordingly.
The transaction contemplated under the LTA is an affiliate-to-affiliate, intercompany transaction taking place within the broader NextEra Energy, Inc. corporate structure. According to the LTA, the purpose of the proposed transfer is to align the DAEC ownership and operational structure within NEDA and to better position the corporation for a request for reauthorization of power operation at the DAEC. According to the LTA, CIPCO and Corn Belt, electric generation and transmission cooperatives in the State of Iowa, have determined that their members would be better served by using their resources that would otherwise be put towards the DAEC for other uses.
The LTA provides information regarding the qualifications of NEDA to wholly own the DAEC, including the information required under 10 CFR 50.80. The information describes that: (1)
NEDA, which will remain the licensed operator of the DAEC, will possess the requisite managerial, technical, and financial qualifications to operate the DAEC; (2) NEDA will wholly possess the financial qualifications to own the DAEC and will continue to provide reasonable assurance of funding for the decommissioning of the DAEC and spent fuel management at the site; (3) the material terms of the DAEC license will not be affected; and (4) the license transfer will not result in any impermissible foreign ownership, control, or domination.
3.0 REGULATORY EVALUATION
The LTA for the direct transfer of partial ownership in the DAEC and its associated ISFSI, as discussed in this safety evaluation, is made under 10 CFR 50.80.
The regulation at 10 CFR 50.80(a) states, in part:
No license for a utilization facility or any right thereunder, shall be transferred, assigned, or in any manner disposed of, either voluntarily or involuntarily, directly or indirectly, through transfer of control of the license to any person, unless the Commission gives its consent in writing.
The regulation at 10 CFR 50.80(b) states, in part:
(1) An application for transfer of a license shall include:
(i)
For a construction permit or operating license under this part, as much of the information described in [10 CFR] 50.33 and 50.34 of this part with respect to the identity and technical and financial qualifications of the proposed transferee as would be required by those sections if the application were for an initial license.
The regulation at 10 CFR 50.80(c) states, in part:
[T]he Commission will approve an application for the transfer of a license, if the Commission determines:
(1)
That the proposed transferee is qualified to be the holder of the license; and (2)
That transfer of the license is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission pursuant thereto.
The regulation at 10 CFR 50.33(f) states, in part:
Except for an electric utility applicant for a license to operate a utilization facility of the type described in [10 CFR] 50.21(b) or [10 CFR] 50.22, [each application shall state] information sufficient to demonstrate to the Commission the financial qualification of the applicant to carry out, in accordance with regulations in this chapter, the activities for which the permit or license is sought.
In 10 CFR 50.34(b)(6), the NRC requires applicants to provide certain information on facility operation, including:
(i)
The applicants organizational structure, allocations or responsibilities and authorities, and personnel qualifications requirements.
(ii)
Managerial and administrative controls to be used to assure safe operation.
In 10 CFR 50.34(b)(7), the NRC also requires applicants to provide:
The technical qualifications of the applicant to engage in the proposed activities in accordance with the regulations in this chapter.
The regulation at 10 CFR 72.30, Financial assurance and recordkeeping for decommissioning, states, in part:
(b) Each holder of a license under this part must submit for NRC review and approval a decommissioning funding plan that must contain:
(4) A description of the method of assuring funds for decommissioning from paragraph (e) of this section, including means for adjusting cost estimates and associated funding levels periodically over the life of the facility.
In addressing foreign ownership, control, or domination (FOCD) issues, Section 103d of the AEA provides, in part, that no license may be issued to:
[A]ny corporation or other entity if the Commission knows or has reason to believe it is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government.
Paragraph (d)(3) of 10 CFR 50.33 states that if the applicant is a corporation or an unincorporated association, the applicant shall state:
(i)
The state where it is incorporated or organized and the principal location where it does business; (ii)
The names, addresses and citizenship of its directors and of its principal officers; (iii)
Whether it is owned, controlled, or dominated by an alien, a foreign corporation, or foreign government, and if so, give details.
The NRCs regulation at 10 CFR 50.38, Ineligibility of certain applicants, is the regulatory provision that implements the FOCD provisions of the AEA. The NRC staff evaluates license transfer applications in a manner that is consistent with the guidance provided in the NRC Final Standard Review Plan [SRP] on Foreign Ownership, Control, or Domination (64 FR 52355; September 28, 1999) (the SRP on FOCD), to determine whether the proposed transferee is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government.
The NRC staff also reviews information that relates to the Price-Anderson insurance and indemnity requirements under Section 170 of the AEA and 10 CFR Part 140, Financial Protection Requirements and Indemnity Agreements, and to nuclear onsite property damage insurance requirements under 10 CFR 50.54(w).
NUREG-0800, Standard Review Plan for the Review of Safety Analysis Reports for Nuclear Power Plants: LWR [Light-Water Reactor[ Edition, Chapter 13, Conduct of Operations, Section 13.1.1, Management and Technical Support Organization, Revision 6, dated August 2016 (ML15005A449), provides guidance for the review of changes to the technical organization or personnel qualifications proposed as a result of an operating license transfer.
Specifically,Section I.4, Review of Operating License Transfers, states that the applicant for transfer of an operating license should provide a description of the organization to support plant operations, which should include (1) organizational charts of the corporate-level management and technical support organizations, emphasizing the changes to be made as a result of the transfer, (2) the relationship of the nuclear-oriented parts of the organization to the rest of the corporate organization, and (3) description of the specific provisions which have been made for uninterrupted technical support for operations.
NUREG-0800, Chapter 13, Section 13.1.2-13.1.3, Operating Organization, Revision 7, dated August 2017 (ML15007A296), provides guidance for the review of proposed changes to the operating organization because of an operating license transfer.
NUREG-1577, Standard Review Plan on Power Reactor Licensee Financial Qualifications and Decommissioning Funding Assurance, Revision 1, dated February 1999 (ML013330264),
describes the process used to evaluate the financial qualifications and methods of providing decommission funding assurance for licensees affected by proposed transfers.
4.0 FINANCIAL QUALIFICATIONS According to NRC regulations, the DAEC licensee was required by 10 CFR 50.54(bb) to provide a plan for funding spent fuel management until Department of Energy (DOE) removal. The plan describes the program by which the licensee intends to manage and provide funding for the management of all irradiated fuel at the reactor following permanent cessation of operation of the reactor until title to the irradiated fuel and possession of the fuel is transferred to the Secretary of Energy for its ultimate disposal in a repository. Additionally, according to 10 CFR 50.82(a)(8)(vii), the licensee must annually submit to the NRC a report on the status of its funding for managing irradiated fuel, including the projected cost of managing irradiated fuel until title to the fuel and possession of the fuel is transferred to the Secretary of Energy and the amount of funds accumulated to cover those costs. The NRC considers spent (irradiated) fuel management costs as the operating costs for power reactor facilities in decommissioning and ISFSI facilities. By letter dated March 17, 2025 (ML25084A051), NEDA submitted its 2025 Annual Decommissioning and Spent Fuel Management Funding Status Report. According to that report, the cost estimate for DAEC radiological decommissioning, spent fuel management, and site restoration is approximately $1,027M in 2024 dollars using the SAFSTOR decommissioning method.
Because the DAEC is currently jointly owned among NEDA, CIPCO, and Corn Belt, each joint owner maintains nuclear decommissioning trust(s) respective to their undivided interest ownership share. These decommissioning trusts serve as a revolving fund to pay the decommissioning operating costs. According to Section III of Enclosure 3 of the LTA, upon the execution of the direct license transfer, NEDA would provide for the decommissioning funding requirements on its own, without the use of any funds from CIPCO and Corn Belt. Furthermore, the LTA states that the CIPCO and Corn Belt fund balances would not be transferred to NEDA as part of the direct license transfer. The LTA requests that the NRC find it reasonable that funds will be available to decommission the DAEC with no decommissioning trust funds transfer from CIPCO and Corn Belt to NEDA. This request will be reviewed in the following section of this safety evaluation.
Additionally, the NRC staff notes that, as part of the proposed transfer, the portion of the title to the spent nuclear fuel at the DAEC held by CIPCO and Corn Belt would be transferred to NEDA. Upon the DOEs consent, NEDA plans to request agreement that the ISFSI ownership is transferred from CIPCO and Corn Belt to NEDA exclusively and to assign all rights and obligations for the DAEC ISFSI to NEDA. Following this assignment, NEDA would maintain all rights and obligations under the DOE Standard Contract related to the DAEC ISFSI and assumes that the removal of the spent fuel would occur around 2080, including reimbursement for annual spent fuel management costs.
Based on its independent review of the LTA, as supplemented, as described above and below, the NRC staff determined that the proposed transferee is financially qualified to be the 100-percent holder of the licenses for the DAEC and its associated ISFSI as a facility in decommissioning.
5.0 DECOMMISSIONING FUNDING
Pursuant to 10 CFR 50.75, Reporting and recordkeeping for decommissioning planning, a power reactor licensee must provide reasonable assurance that funds will be available for decommissioning, including reporting at least once every 2 years on the status of its decommissioning funding. For a facility in decommissioning, the licensee is required to execute financial plans for spent fuel management under 10 CFR 50.54(bb) and to report annually on the status of funding dedicated towards radiological decommissioning and spent fuel management under 10 CFR 50.82(a)(8)(v) - (vii). In Section III of Enclosure 3 of the LTA, NEDA provided two scenarios for decommissioning funding assurance: (1) the DAEC in a no-restart decommissioning scenario and (2) the DAEC in a restart scenario. For the purposes of its review of the LTA, the NRC staff evaluated the availability of decommissioning funding for the DAEC in its current state (i.e., as a reactor in decommissioning).
As part of its evaluation, the NRC staff reviewed the latest decommissioning funding status report for the DAEC submitted on March 17, 2025, in accordance with 10 CFR 50.75(f)(1), 10 CFR 50.82(a)(8)(v), and 10 CFR 50.82(a)(8)(vii) (ML25084A051). Enclosure 1 of that report identifies a need of approximately $1,027M in 2024 dollars for the period 2025 - 2080 for radiological decommissioning, spent fuel management, and site restoration, with NEDA holding a decommissioning trust fund balance of approximately $559.6M as of December 31, 2024, and a total spending for license termination activities (radiological remediation) of approximately
$57M since 2020. The report also provides an estimated remaining decommissioning cost of approximately $744M. The report acknowledges that, pursuant to 10 CFR 72.30(b)(4), the DAEC licensees must maintain a method for funding ISFSI decommissioning.
In Enclosure 3 of the LTA, NEDA states that it would continue to maintain the nuclear decommissioning trust (NDT) that it currently holds as a 70-percent owner of the DAEC. NEDA also states that CIPCO and Corn Belt would have the funds in their NDTs released to them and not transferred to NEDA as part of the proposed license transfer. Accordingly, the NRC staffs evaluation considered the decommissioning funding available for the DAEC based only on the NEDA NDT and considered the anticipated decommissioning expenses previously provided in the DAEC 2025 annual decommissioning funding status report, which information is reflected in Attachment A to this safety evaluation. As of December 31, 2024, assets in the NEDA NDT for the DAEC were valued at approximately $559.6M net any material current income tax liability on realized gains, interest, dividends, and other income of the trust. The NRC staff reviewed the status of the decommissioning funding for the DAEC and found that, assuming the 2-percent real growth rate allowed by 10 CFR 50.82(a)(8)(vi), the trust fund balance of NEDA is projected to be sufficient to meet the decommissioning costs projected to be incurred.
NEDA, CIPCO, and Corn Belt currently provide the required ISFSI decommissioning financial assurance through the prepayment method, consistent with 10 CFR 72.30(e)(1), via an NDT with sufficient funds to cover the projected costs of decommissioning the DAEC ISFSI. In the LTA, NEDA states its intent to transfer all CIPCO and Corn Belt rights and responsibilities related to the DAEC to NEDA, which will maintain the existing means through which the DAEC meets the NRCs funding obligations for spent fuel management and eventual ISFSI decommissioning. According to Enclosure 3 of the LTA, as part of the proposed transfer, NEDA would not become the beneficiary of the decommissioning trust funds held by CIPCO and Corn Belt. Accordingly, the NRC staff reviewed the DAEC 2025 annual decommissioning funding status report to ensure that NEDA would maintain sufficient prepaid funding in its decommissioning trust fund for future ISFSI decommissioning. The NRC staff notes that ISFSI decommissioning cannot occur until the DOE removes the spent nuclear fuel that is stored in the ISFSI, which is expected to occur in 2079/2080. Based on the analysis shown in Attachment A to this safety evaluation, the NRC staff finds that NEDA has sufficient funds in its decommissioning trust fund to decommission the DAEC ISFSI.1 Based on the above, the NRC staff finds that after the proposed transfer, there would be reasonable assurance that funding will be available for the decontamination and decommissioning of the DAEC reactor and its associated ISFSI at the end of its useful life, thus providing adequate protection of the health and safety of the public.
1 DAEC received an exemption to use the decommissioning trust fund for spent fuel management and site restoration on August 12, 2020 (ML20171A627).
6.0 TECHNICAL QUALIFICATIONS The NRC staff reviewed the LTA to determine the acceptability of changes to the organizations and personnel qualifications proposed as a result of the proposed transfer under 10 CFR 50.80.
The NRC staff reviewed information in the LTA about the proposed corporate management, technical support, and the operating organization.
Section I of Enclosure 3 of the LTA states that, following the proposed transfer, NEDA would retain licensed operational authority under Renewed Facility License No. DPR-49 and would become the 100% owner of the DAEC. The LTA explains that the proposed transfer is a consolidation of all outstanding ownership interests in the [DAEC] and its generally licensed
[ISFSI] in NEDA, the current operator licensee and 70% owner of the DAEC and that the transfer do[es] not otherwise alter the DAEC operations, the DAECs management, or the technical qualifications of NEDA to continue serving as the operator licensee.
Section II of Enclosure 3 of the LTA states that, following the proposed transfer, the DAEC would continue to be managed by NEDA and there would be no physical changes to the DAEC or changes to the daily operations of the facility because of the transfer.
Section III of Enclosure 3 of the LTA states that the proposed transfer will not alter the organization structure or senior leadership of the existing majority owner and operator licensee NEDA. The current and proposed NextEra Energy, Inc. corporate organizational structures are provided in Attachment B of Enclosure 3 of the LTA. The NRC staff reviewed the structures which show NEDA as the 100-percent owner of the DAEC following the proposed transfer with no changes to the corporate structure above NEDA.
Section III of Enclosure 3 of the LTA states that:
NEDA is and will continue to be the operator licensee that possesses the requisite technical qualifications. No changes in the management of or operational organization for the DAEC are expected to be made as part of the proposed Transaction. The proposed Transfer will not result in any changes to the senior management of NEDA, the staffing or qualifications of the DAEC site personnel, day-to-day operations, or the physical plant configuration. To the extent these matters are affected by proposed restart activities, they will be addressed with the NRC in that forum.
The NRC staff used the guidance in NUREG-0800, Section 13.1.2-13.1.3 to review any proposed changes to the structure, functions and responsibilities of the onsite organization and ensure that the operating organization is involved with, informed of, and dedicated to the safe operation and maintenance of the DAEC, and that sufficient technical resources are provided and will continue to be provided to adequately accomplish these objectives.
The NRC staff reviewed the LTA and determined that the proposed direct transfer of control of the licenses is not expected to have any impact on the operating organization at the DAEC.
NEDA will remain as the established operating organization for the DAEC and, in accordance with the renewed facility license, NEDA will maintain its role as the organization technically qualified to engage in the activities authorized by the renewed facility license in accordance with the NRCs regulations. Because there will be no impact on facility operations or the operating organization at the DAEC, the NRC staff finds the applicants consideration of this review area to be acceptable.
In accordance with NUREG-0800, Section 13.1.1, the NRC staff review of management and technical support organization for a proposed license transfer will examine the acceptability of any changes to the technical organization or personnel qualifications proposed because of the license transfer. The objective of this review is to ensure that the corporate management is involved with, informed of, and dedicated to the safe design, construction, testing, and operation of the nuclear plant. The review will ensure that sufficient technical resources have been, are being, and will continue to be provided to adequately accomplish these objectives.
The NRC staff reviewed the LTA and determined that the proposed direct transfer of control of the licenses is not expected to have any impact on the management organization at the DAEC.
The NRC staff also determined that the proposed transfer will not impact personnel qualifications. Because NEDA was the licensed operator of the DAEC while the unit was operating and remains the operator licensee while the unit is in a decommissioning status, the NRC staff finds that NEDA remains technically qualified to be the licensed operator holder of the DAEC renewed facility license and the associated ISFSI general license. And, because there will be no impact on the facility management organization responsible for oversight at the DAEC, the NRC staff finds the LTAs consideration of this review area to be acceptable.
Based on the information provided in the LTA, the NRC staff determined that there will be no change to the operations and management organizations affecting the technical qualifications of NEDA and the operating organization of the DAEC. The NRC staff concludes that NEDA continues to be an acceptable licensed operator organization and has adequate resources to provide technical support for the DAEC. Therefore, the NRC staff concludes that NEDA will continue to be technically qualified to perform the activities authorized by the renewed facility license and the NRCs regulations, and that NEDA has provided reasonable assurance that the proposed transfer will meet the relevant technical requirements of 10 CFR 50.80 and 10 CFR 50.34.
7.0 ANTITRUST REVIEW
The AEA does not require or authorize antitrust reviews of post-operating license transfer applications.2 The LTA postdates the issuance of the operating license under consideration in this safety evaluation and, therefore, no antitrust review is required or authorized.
8.0 FOREIGN OWNERSHIP, CONTROL, OR DOMINATION Section 103d of the AEA states, in relevant part, that no license may be issued to:
[A]n alien or any corporation or other entity if the Commission knows or has reason to believe it owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government.
The NRCs regulation at 10 CFR 50.38 implements this statutory prohibition.
The NRC staff evaluated the LTA, as supplemented, pursuant to the guidance provided in the SRP on FOCD to determine whether, after the proposed direct license transfer, the licensee would be owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government. According to the supplement to the LTA, after the proposed transfer transaction, NEDA would retain its own board of directors and principal officers, all of whom are U.S.
2 Kansas Gas and Electric Co, et al. (Wolf Creek Generating Station, Unit 1), CLI-99-19, 49 NRC 441 (1999).
citizens. In addition, all the DAECs upstream owners are U.S. entities controlled by U.S.
citizens that are ultimately controlled by NEDAs owners, all of whom are U.S. citizens. Lastly, there are no passive upstream investors or any other entities that are taking part in the management or control of the DAEC business and have no power or authority to act for or on behalf of, or to bind, the DAEC or its subsidiaries, including NextEra Energy Duane Arnold, LLC, ESI Energy, LLC, NextEra Energy Resources, LLC, NextEra Energy Capital Holdings, Inc., and NextEra Energy, Inc. Based on its review and the above, the NRC staff finds that the proposed transferee will not be foreign owned, controlled, or dominated.
9.0 NUCLEAR INSURANCE
AND INDEMNITY Pursuant to the requirements of the Price-Anderson Act (Section 170 of the AEA) and the NRCs implementing regulations in 10 CFR Part 140, the NRC staff notes that the existing licensees currently have an indemnity agreement with the Commission that will not expire until the license is terminated. Therefore, after the proposed transfer, the current indemnity agreement must be modified to reflect that NEDA is the sole owner and operator licensee of the facility.
Consistent with NRC practice, the NRC staff will continue to require NEDA to maintain onsite property damage insurance as specified in 10 CFR 50.54(w). NEDA is also required to maintain the appropriate amount of insurance in accordance with 10 CFR 140.11(a)(4), which will be effective concurrent with the date of the license transfer and amended indemnity agreement.
Based on the above, the NRC staff concludes that the proposed direct license transfer satisfies the nuclear insurance and indemnity requirements of 10 CFR Part 140 and 10 CFR Part 50.
10.0 CONFORMING LICENSE AMENDMENT 10.1 Conforming Amendment The LTA requests a conforming amendment to Renewed Facility License No. DPR-49 for the DAEC. The proposed conforming amendment reflects the proposed license transfer action. The proposed conforming amendment does not involve any change in the design or licensing basis, plant configuration, the status of the site, or the requirements of the license.
The NRC staff reviewed the proposed changes to the license and determined that they involve no safety questions, are administrative in nature, and are necessary to reflect the approved license transfer. Accordingly, the NRC staff concludes that the proposed conforming amendment is acceptable. The amendment shall be issued and made effective at the time of the completion of the proposed transfer transaction.
10.2 No Significant Hazards Consideration As provided in 10 CFR 2.1315, unless otherwise determined by the Commission with regard to a specific application, the Commission has determined that any amendment to the license of a utilization facility or the license of an ISFSI which does no more than conform the license to reflect the transfer action, involves respectively, no significant hazards consideration, or no genuine issue as to whether the health and safety of the public will be significantly affected. No contrary determination has been made by the Commission with regard to this specific application.
10.3 Conforming License Amendment Conclusion The Commission has concluded, based on the considerations discussed above, that (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) there is reasonable assurance that such activities will be conducted in compliance with the Commissions regulations, and (3) the issuance of the amendment will not be inimical to the common defense and security or to the health and safety of the public.
11.0 HEARING REQUESTS AND PUBLIC COMMENTS The NRC staffs notice of consideration of approval of the LTA and of a conforming amendment to reflect the proposed transfer was published in the Federal Register on January 29, 2026 (91 FR 3930). This notice provided an opportunity to request a hearing within 20 days and an opportunity to comment within 30 days. No hearing requests were received in response to this notice.
The NRC received one submission with comments from the public in response to the Federal Register notice (ML26064A032). The comments were generally supportive of the proposed transfer and the comments pertinent to the LTA discussed the financial and technical requirements of 10 CFR 50.80(c), and the qualifications of the licensee following the proposed transfer to meet those requirements. The NRC staffs review of those qualifications compared to the regulatory requirements is the subject of this safety evaluation and, therefore, the NRC staff considers the comments addressed.
The submission also provides several comments that are outside of the scope of this action, including comments on the license amendment requests submitted by NEDA to the NRC seeking to restore the DAEC operating licensing basis, the climate and consumer benefits of a potential restart of the DAEC, safety conditions if the DAEC were to restart, and spent fuel considerations if more spent fuel is generated at the DAEC. As noted in the submission, these comments are applicable to license amendment requests that are distinct from the LTA. An opportunity to comment and/or request a hearing on those license amendment requests will be provided separately.
12.0 STATE CONSULTATION
In accordance with the Commission's regulations, the Iowa State official was notified of the proposed license transfer and issuance of draft conforming amendment on March 2, 2026. The State official had no comments.
13.0 ENVIRONMENTAL CONSIDERATION
The subject application is for approval of a transfer of licenses issued by the NRC and for approval of an associated amendment of a license required to reflect the approval of the transfer. Accordingly, the actions involved meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(21). Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the approval of the transfer application and conforming license amendment.
14.0 CONCLUSION
The Commission has concluded, based on the considerations discussed above, that (1) the proposed transferee is qualified to be the holder of the licenses and (2) transfer of the licenses is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission pursuant thereto.
The Commission has concluded, based on the considerations discussed above, that (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) there is reasonable assurance that such activities will be conducted in compliance with the Commissions regulations, and (3) the issuance of the amendment will not be inimical to the common defense and security or to the health and safety of the public.
Date: March 30, 2026
Attachment A SAFETY EVALUATION ATTACHMENT Duane Arnold Energy Center Decommissioning Funding Assurance Calculation 2025
$616,618,483 As of Oct 2025 as presented in the transfer application 0.00%
2080 0.00%
2.00%
2025 0
$0
$0
$0
$0
$0
$0 2.00%
$0
$0 2026 1
$616,618,483
$4,044,000
$0
$0
$6,288,000
$0 2.00%
$12,125,730
$618,412,213 2027 2
$618,412,213
$4,044,000
$0
$0
$6,288,000
$0 2.00%
$12,161,604
$620,241,817 2028 3
$620,241,817
$3,660,000
$0
$0
$6,632,000
$0 2.00%
$12,198,996
$622,148,813 2029 4
$622,148,813
$3,415,000
$0
$0
$6,345,000
$0 2.00%
$12,247,776
$624,636,590 2030 5
$624,636,590
$3,415,000
$0
$0
$6,345,000
$0 2.00%
$12,297,532
$627,174,121 2031 6
$627,174,121
$3,415,000
$0
$0
$6,345,000
$0 2.00%
$12,348,282
$629,762,404 2032 7
$629,762,404
$3,415,000
$0
$0
$6,345,000
$0 2.00%
$12,400,048
$632,402,452 2033 8
$632,402,452
$3,415,000
$0
$0
$6,345,000
$0 2.00%
$12,452,849
$635,095,301 2034 9
$635,095,301
$3,415,000
$0
$0
$6,345,000
$0 2.00%
$12,506,706
$637,842,007 2035 10
$637,842,007
$3,415,000
$0
$0
$6,345,000
$0 2.00%
$12,561,640
$640,643,647 2036 11
$640,643,647
$3,415,000
$0
$0
$6,345,000
$0 2.00%
$12,617,673
$643,501,320 2037 12
$643,501,320
$3,412,000
$0
$0
$6,342,000
$0 2.00%
$12,674,946
$646,422,266 2038 13
$646,422,266
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$12,735,065
$649,488,332 2039 14
$649,488,332
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$12,796,387
$652,615,718 2040 15
$652,615,718
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$12,858,934
$655,805,653 2041 16
$655,805,653
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$12,922,733
$659,059,386 2042 17
$659,059,386
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$12,987,808
$662,378,193 2043 18
$662,378,193
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,054,184
$665,763,377 2044 19
$665,763,377
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,121,888
$669,216,265 2045 20
$669,216,265
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,190,945
$672,738,210 2046 21
$672,738,210
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,261,384
$676,330,594 2047 22
$676,330,594
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,333,232
$679,994,826 2048 23
$679,994,826
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,406,517
$683,732,343 2049 24
$683,732,343
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,481,267
$687,544,610 2050 25
$687,544,610
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,557,512
$691,433,122 2051 26
$691,433,122
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,635,282
$695,399,404 2052 27
$695,399,404
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,714,608
$699,445,012 2053 28
$699,445,012
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,795,520
$703,571,533 2054 29
$703,571,533
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,878,051
$707,780,583 2055 30
$707,780,583
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$13,962,232
$712,073,815 2056 31
$712,073,815
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$14,048,096
$716,452,911 2057 32
$716,452,911
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$14,135,678
$720,919,589 2058 33
$720,919,589
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$14,225,012
$725,475,601 2059 34
$725,475,601
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$14,316,132
$730,122,733 2060 35
$730,122,733
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$14,409,075
$734,862,808 2061 36
$734,862,808
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$14,503,876
$739,697,684 2062 37
$739,697,684
$3,327,000
$0
$0
$6,342,000
$0 2.00%
$14,600,574
$744,629,258 2063 38
$744,629,258
$3,327,000
$0
$0
$529,000
$0 2.00%
$14,815,465
$755,588,723 2064 39
$755,588,723
$3,327,000
$0
$0
$0
$0 2.00%
$15,045,234
$767,306,957 2065 40
$767,306,957
$3,831,000
$0
$0 2.00%
$15,269,519
$778,745,476 2066 41
$778,745,476
$3,554,000
$0
$0 2.00%
$15,503,830
$790,695,306 2067 42
$790,695,306
$3,554,000
$0
$0 2.00%
$15,742,826
$802,884,132 2068 43
$802,884,132
$3,554,000
$0
$0 2.00%
$15,986,603
$815,316,735 2069 44
$815,316,735
$3,554,000
$0
$0 2.00%
$16,235,255
$827,997,989 2070 45
$827,997,989
$3,554,000
$0
$0 2.00%
$16,488,880
$840,932,869 2071 46
$840,932,869
$3,554,000
$0
$0 2.00%
$16,747,577
$854,126,447 2072 47
$854,126,447
$3,554,000
$0
$0 2.00%
$17,011,449
$867,583,896 2073 48
$867,583,896
$3,554,000
$0
$0 2.00%
$17,280,598
$881,310,493 2074 49
$881,310,493
$63,428,000
$0
$0 2.00%
$16,357,650
$834,240,143 2075 50
$834,240,143
$89,094,000
$0
$0
$8,000 2.00%
$14,902,763
$760,040,906 2076 51
$760,040,906
$83,052,000
$0
$0
$752,000 2.00%
$13,524,738
$689,761,644 2077 52
$689,761,644
$229,667,000
$0
$0
$529,000 2.00%
$9,191,313
$468,756,957 2078 53
$468,756,957
$122,310,000
$0
$0
$6,355,000
$28,561,000 2.00%
$6,230,619
$317,761,576 2079 54
$317,761,576
$5,217,000
$0
$0
$13,343,000 2.00%
$5,984,032
$305,185,608 2080 55
$305,185,608
$1,857,000
$0
$0
$0
$0 2.00%
$6,066,572
$309,395,180 2081 56
$309,395,180
$0
$0
$0 2.00%
$6,187,904
$315,583,084
$759,197,000
$0
$0
$241,744,000
$43,185,000 Year /
Payment Year Beginning Balance (2025$):
NextEra Rad Payment Amount (2025$):
CIPCO Rad Payment Amount (2025$):
Corn Belt Rad Payment Amount (2025$):
SFM Expenditures (2025$)*
Site Restoration and ISFSI Expenses (2024$)
Contribut ions:
Rate of Return on Earnings Projected Earnings:
End Balance (2024$):
Projected End-Date of Decom Activities:
Escalation Rate (if applicable):
Real Rate of Return:
Reporting Year:
Current Amount Reported in DTF:
Rate of Return During SAFSTOR/Decom:
Duane Arnold Decommissioing/SAFSTOR Cost Analysis (Beginning Balance - Cost) * (1 + ERR) = End Balance
SUBJECT:
DUANE ARNOLD ENERGY CENTER AND THE ASSOCIATED INDEPENDENT SPENT FUEL STORAGE INSTALLATION - ORDER APPROVING DIRECT TRANSFER OF LICENSES AND CONFORMING LICENSE AMENDMENT (EPID L-2025-LLM-0006) DATED MARCH 30, 2026 DISTRIBUTION:
PUBLIC RidsACRS_MailCTR Resource RidsNrrDroIolb Resource RidsNmssRefsFab Resource RidsNrrDorlLpl3 Resource RidsNrrLASLent Resource RidsNrrPMDuaneArnold Resource RidsRgn3MailCenter Resource ADAMS Accession Nos.:
Package: ML26068A232 ML26068A226 (Letter & SE)
ML26068A229 (License Transfer Order)
ML26068A228 (Draft Amendment)
ML26070A228 (FRN) e-Concurrence case: 20260309-20010