NMP1L3351, and Nine Mile Point Nuclear Station, Unit 1 - Request for Exemptions from 10 CFR 2.109(b)
| ML20255A001 | |
| Person / Time | |
|---|---|
| Site: | Nine Mile Point, Ginna  |
| Issue date: | 09/11/2020 |
| From: | David Gudger Exelon Generation Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| NMP1L3351 | |
| Download: ML20255A001 (13) | |
Text
200 Exelon Way Kennett Square. PA 19348 www.exeloncorp.com 10 CFR 50.12 10 CFR 54.15 NMP1L3351 September 11, 2020 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 R.E. Ginna Nuclear Power Plant Renewed Facility Operating License No. DPR-18 NRC Docket No. 50-244 Nine Mile Point Nuclear Station, Unit 1 Renewed Facility Operating License Nos. DPR-63 NRC Docket No. 50-220
Subject:
Request for Exemptions from 10 CFR 2.109(b)
In accordance with 10 CFR 54.15 and 50.12, "Specific exemptions," Exelon Generation Company, LLC (EGC) requests exemptions from 10 CFR 2.109(b), "Effect of timely renewal application." Section 2.109(b) provides that if a nuclear power plant licensee files a sufficient license renewal application (LRA) with the U.S. Nuclear Regulatory Commission (NRC) "at least 5 years before the expiration of the existing license, the existing license will not be deemed to have expired until the application has been finally determined." Specifically, EGC requests that it be permitted to submit the subsequent LRAs for the Ginna Nuclear Power Plant and the Nine Mile Point Nuclear Station, Unit 1, no later than three years prior to the expiration of each units operating license. Ginnas renewed operating license expires on September 18, 2029, and Nine Mile Point Unit 1s operating license expires on August 22, 2029.
The attachment to this letter provides the rationale and justification for the exemption requests. The requested exemptions from 10 CFR 2.109(b) are permissible under 10 CFR 54.15 and 10 CFR 50.12 because they are authorized by law, will not present an undue risk to the public health and safety, and are consistent with the common defense and security. In addition, special circumstances are present such that: (1) the application of 10 CFR 2.109(b) in this instance would not serve the underlying purpose of the rule; (2) compliance with the five-year time limit specified in that regulation would result in undue hardship or other costs that are significantly in excess of those contemplated when the regulation was adopted, or that are significantly in excess of those incurred by others similarly situated; and (3) other material circumstances that were not considered when the regulation was adopted are present such that granting the exemptions are in the public interest.
U.S. Nuclear Regulatory Commission Request for Exemptions from 10 CFR 2.109(b)
Docket No. 50-244 and Docket No. 50-220 September 11, 2020 Page 2 EGC requests approval of the proposed exemptions by September 11, 2021. There are no regulatory commitments contained in this submittal.
If you have any questions or require additional information, please contact Jessie Hodge at (610) 765-5532.
Respectfully, David T. Gudger Senior Manager - Licensing Exelon Generation Company, LLC
Attachment:
Request for Exemptions from 10 CFR 2.109(b) cc: NRC Regional Administrator, Region I NRC Senior Resident Inspector, Ginna Nuclear Power Plant NRC Senior Resident Inspector, Nine Mile Point Nuclear Station NRC NRR Project Manager, Ginna Nuclear Power Plant NRC NRR Project Manager, Nine Mile Point Nuclear Station A. L. Peterson, NYSERDA
Attachment Requests for Exemptions from 10 CFR 2.109(b) 1.0 SPECIFIC EXEMPTION REQUESTS In accordance with 10 CFR 54.15 and 50.12, which allow specific exemptions to U.S. Nuclear Regulatory Commission (NRC) regulations, Exelon Generation Company, LLC (EGC) requests exemptions from the five-year deadline specified in the NRCs timely renewal regulation at 10 CFR 2.109(b). Specifically, EGC requests that it be permitted to submit the subsequent license renewal applications (SLRAs) for the Ginna Nuclear Power Plant (Ginna) and Nine Mile Point Nuclear Station, Unit 1 (NMP-1), no later than three years prior to the expiration of each stations renewed operating licenses and still receive timely renewal protection under 10 CFR 2.109(b). Thus, if the NRC approves these exemption requests, EGC will be authorized to submit the Ginna SLRA by September 18, 2026, and the NMP-1 SLRA by August 22, 2026 (i.e.,
three years before the expiration dates of September 18, 2029, and August 22, 2029, respectively) and still be granted the protections afforded by the timely renewal provision in 10 CFR 2.109(b).1
2.0 BACKGROUND
In August 2016, the New York Public Service Commission (PSC) issued its Clean Energy Standard (CES) Order as an overall scheme to reduce greenhouse-gas emissions in the State of New York by 40 percent by 2030.2 Among other things, the CES Order created the Zero Emissions Credit (ZEC) program,3 which was designed to ensure that New York's nuclear generators continue to contribute to New York's electric generation mix pending the development of new renewable energy resources between now and 2030. A ZEC is a credit for the zero-emissions attributes of one megawatt-hour of electricity production by a participating nuclear power plant. Ginna and NMP-1 were two of the plants chosen by the New York PSC for the ZEC program.4 The ZEC price is based on the "social cost of carbon" and each qualifying nuclear generator receives an additional payment for each megawatt hour of electricity it generates (subject to a possible cap) in addition to the price the facility receives for the sale of its energy and capacity in the New York Independent System Operators (NYISOs) markets.
The New York ZEC program expires on March 31, 2029, and it is unknown at this time whether this or any similar program will be continued beyond then. Given the uncertainty of this program beyond 2029, EGC cannot plan for those revenues to continue into the period of subsequent license renewal for Ginna and NMP-1.
In addition, the Federal Energy Regulatory Commissions (FERCs) recent decisions with respect to the PJM Interconnection (PJM) capacity market have created further uncertainty in energy markets. Specifically, FERC issued an order on December 19, 2019, clarifying a 1
EGC is not requesting an exemption from 10 CFR 2.109(b) for Nine Mile Point Nuclear Station Unit 2 at this time because its renewed licensed does not expire until October 31, 2046, thus giving EGC sufficient time to evaluate a future SLRA.
2 Order Adopting a Clean Energy Standard, State of New York Public Service Commission (Aug. 1, 2016).
3 On September 27, 2018, the U.S. Court of Appeals for the Second Circuit upheld a federal district court decision dismissing a complaint seeking to invalidate New York States ZEC program. See Coalition for Competitive Electricity, et al. v. Zibelman, et al., 906 F.3d 41 (2d Cir. Sept. 27, 2018).
4 Fitzpatrick and Nine Mile Point 2 were also chosen for the ZEC program but are not relevant to these exemption requests given that it would be premature to request exemptions regarding SLRAs for those units.
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Attachment Requests for Exemptions from 10 CFR 2.109(b) previous order issued on June 29, 2018, on the PJM capacity markets Minimum Offer Price Rule (MOPR).5 The December 19, 2019 FERC order reaffirmed the Commissions previous order finding that the PJMs existing MOPR rules were unjust and unreasonable as they result in inefficient market outcomes due to certain generating resources receiving out-of-market support from the state, such as a ZEC program. As a result, certain generators in the PJM market would have to exclude their ZEC compensation when bidding into future PJM capacity markets, increasing their bids and the likelihood that they will not clear in the capacity auction and risking the loss of capacity market revenues.
While these FERC decisions apply only to PJM markets, New Yorks ZEC program could be undermined if the PJM MOPR precedent were applied in NYISO, requiring the exclusion of ZEC compensation when bidding into future capacity auctions. This would result in an increased risk of Ginna and NMP-1 not receiving capacity revenues in future auctions. This loss of revenue would have a materially adverse impact on these sites abilities to continue to operate, and therefore would affect EGCs decision to pursue subsequent license renewal.
3.0 BASIS FOR EXEMPTION REQUESTS Under Section 9(b) of the Administrative Procedure Act of 1946 (APA), 5 USC 558(c), [w]hen the licensee has made timely and sufficient application for a renewal or a new license in accordance with agency rules, a license with reference to an activity of a continuing nature does not expire until the application has been finally determined by the agency. This is known as the "timely renewal doctrine." The timely renewal doctrine is embodied in the NRC's regulations in 10 CFR 2.109(b), which states that "[i]f the licensee of a nuclear power plant licensed under 10 CFR 50.21(b) or 50.22 files a sufficient application for renewal of either an operating license or a combined license at least 5 years before the expiration of the existing license, the existing license will not be deemed to have expired until the application has been finally determined."
For reasons discussed above, at this time, the economic viability of continued operation of Ginna and NMP-1 beyond the current expiration date of its NRC license is uncertain. Under 10 CFR 2.109(b), EGC would need to file SLRAs for Ginna and NMP-1 by September 18, 2024 and August 22, 2024, respectively. To meet these deadlines, EGC estimates that it would need to begin expending significant resources preparing the SLRAs by April 2022 for NMP-1 and June 2022 for Ginna. However, due to continuing and significant changes in the economic and legislative environments that materially affect continued Ginna and NMP-1 operation, EGC will not be in a position to make a reasonable and sound business decision by April or June 2022 as to whether to pursue subsequent license renewal. Allowing EGC to make that decision at a later date, when the economic viability of extended Ginna and NMP-1 operation can be more readily assessed, will result in more efficient use of both EGC and NRC financial and other resources.
As explained below, allowing Ginna and NMP-1 to receive timely renewal protection if the SLRAs are filed three years in advance of the license expiration dates would enable EGC to 5
Calpine Corp. et. al. v PJM Interconnection, L.L.C., 169 FERC ¶ 61,239 (Dec. 19, 2019), available at https://www.pjm.com/-/media/documents/ferc/orders/2019/20191219-el16-46-000-el18-178-000.ashx, and Calpine Corp. et. al. v PJM Interconnection, L.L.C., 163 FERC ¶ 61,236 (June 29, 2018), available at https://www.ferc.gov/sites/default/files/2020-05/20180629212349-EL16-49-000_2.pdf.
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Attachment Requests for Exemptions from 10 CFR 2.109(b) make the most well-informed decision regarding the prudency of seeking subsequent license renewal, and still provide adequate time for the NRC to complete its reviews of the SLRAs in accordance with the NRCs established license renewal review schedule goal of 18 months.
4.0 JUSTIFICATION FOR EXEMPTIONS and SPECIAL CIRCUMSTANCES 10 CFR 54.17(a) states, in part, that "[t]he filing of an application for a renewed license must be in accordance with subpart A of 10 CFR part 2," which includes the timely renewal provision in 10 CFR 2.109(b). In addition, 10 CFR 54.15 provides that "[e]xemptions from the requirements of this part [Part 54] may be granted by the Commission in accordance with 10 CFR 50.12." For the reasons discussed below, EGC respectfully requests that these exemptions be granted because they meet the criteria in Section 50.12.
4.1 Exemption Justification A. The exemptions are authorized by law 10 CFR 50.12(a)(1) requires a demonstration that an exemption from NRC regulations is authorized by law. The NRC's timely renewal regulation (10 CFR 2.109) implements APA Section 9(b), which states that "[w]hen a licensee has made timely and sufficient application for a renewal or a new license in accordance with agency rules, a license with reference to an activity of a continuing nature does not expire until the application has been finally determined by the agency."6 As discussed further in Section 4.2.A of these exemption requests, the five-year deadline (i.e.,
latest permitted date) for obtaining timely renewal protection for an SLRA as specified in 10 CFR 2.109(b) is the result of a discretionary agency rulemaking under Sections 161 and 181 of the Atomic Energy Act of 1954, as amended (AEA), and not mandated by statute. No statute requires the NRC to specifically adopt a five-year timely renewal limit for license renewal applications. Rather, in implementing the APA's timely renewal provision, the NRC need only ensure that it provides itself with reasonable and sufficient time to review SLRAs while providing appropriate timely renewal protection to compliant applicants.7 In fact, before the NRC first issued Part 54 in 1991, Section 2.109 contained a 30-day renewal application-filing deadline for all licenses issued for activities "of a continuing nature." The NRC and stakeholders recognized that reactor LRA reviews would take considerably longer than 30 days. The proposed Part 54 rule would have modified Section 2.109 to require that nuclear power plant LRAs be submitted at least three years prior to license expiration to be eligible for timely renewal protection, which the Commission explained was based upon a projected 3-year period for completing staff review of a renewal application and any necessary hearing. 8 In the final rule, however, the Commission concluded that for consistency [with requirements to 6
Administrative Procedure Act of 1946 (APA), 5 USC 558(c).
7 At the time the NRC issued its original license renewal rule, the NRC Staff noted that "[a]ny period determined as reasonable for NRC review of license renewal applications should ideally not be restrictive to licensees." NUREG-1362, "Regulatory Analysis for Final Rule on Nuclear Power Plant License Renewal" (Dec. 1991) at 5-5.
8 Nuclear Power Plant License Renewal; Proposed Rule, 55 Fed. Reg. 29,043, 29,051 (July 17, 1990).
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Attachment Requests for Exemptions from 10 CFR 2.109(b) submit decommissioning plants and related financial assurance information], the deadline for the submittal of a license renewal application should be 5 years prior to the expiration of the current operating license.9 Thus, neither the AEA nor the APA requires a five-year period for filing a renewal application to comply with the timely renewal doctrine. The NRC may shorten the period at its discretion and in accordance with agency rules through a change to, or exemption from, the existing regulation. Accordingly, these exemption requests are authorized by law.
B. The exemptions will not present an undue risk to public health and safety 10 CFR 50.12(a)(1) requires a demonstration that the granting of an exemption from the requirement in question "will not present an undue risk to the public health and safety." As shown below, these exemption requests fully satisfy that criterion.
EGC will need to satisfy applicable regulatory requirements in connection with the preparation and submittal of sufficient SLRAs for Ginna and NMP-1 if EGC decides to seek subsequent license renewal. If these exemptions are approved, EGC would submit the applications no later than three years prior to the license expirations and conduct any necessary technical reviews and evaluations to ensure continued safe plant operation for the requested period of extended operation. The NRCs targeted schedule for review of subsequent license renewal applications is 18 months.10 Three years will therefore afford the NRC a sufficient and reasonable period of time to complete its safety and environmental reviews prior to the expiration date of the Ginna and NMP-1 operating licenses on by September 18, 2029, and August 22, 2029, respectively.
Pursuant to 10 CFR 54.29,11 "Standards for issuance of a renewed license," a renewed license may be issued only upon a finding by the NRC that, for matters within the scope of license renewal, there is "reasonable assurance that the activities authorized by the renewed license will continue to be conducted in accordance with the [current licensing basis], and that any changes made to the plants [current licensing basis] are in accord with the [AEA] and the Commissions regulations." Nothing in these exemption requests would obviate the NRCs required findings under Section 54.29, or limit public participation in the subsequent license renewal process. Furthermore, pending final action on any future SLRA, the NRC would retain its authority to conduct all regulatory activities associated with licensing, inspection, and oversight, and to take whatever action(s) may be necessary to ensure adequate protection of the public health and safety.
9 Nuclear Power Plant License Renewal; Final Rule, 56 Fed. Reg. 64,943, 64,962 (Dec. 13, 1991).
10 The 18-month review target is noted, for example, in the NRCs letter to EGC accepting its application for subsequent license renewal. See Letter to Michael Gallagher, Peach Bottom Atomic Power Station, Units 2 and 3 Determination of Acceptability and Sufficiency for Docketing, Proposed Review Schedule, and Opportunity for a Hearing Regarding the Exelon Generation Company, LLC, Application for Subsequent License Renewal (Aug. 27, 2018) (ML18191B085).
11 As noted in NUREG-2192, Standard Review Plan for Review of Subsequent License Renewal Applications for Nuclear Power Plants, the NRC has not adopted special provisions that apply only to subsequent renewal, so that the requirements in 10 CFR Part 54 continue to govern SLR. NUREG-2192 at xxix.
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Attachment Requests for Exemptions from 10 CFR 2.109(b)
C. The exemptions are consistent with the common defense and security Modifying the timely renewal application-filing deadline from five years to three years before license expiration would not affect continued protection of the common defense and security at Ginna and NMP-1. Ginna and NMP-1s safeguards and security programs will remain in full effect during any interim period permitted under the timely renewal doctrine. Further, licensee security programs are outside the scope of a subsequent license renewal review.12 4.2 Special Circumstances Supporting the Issuance of Exemptions Under 10 CFR 50.12(a)(2), the NRC will not consider granting an exemption unless at least one of six "special circumstances" enumerated in the regulation is present. Three special circumstances apply to these requests. First, under 10 CFR 50.12(a)(2)(ii), the underlying purpose of the rule can be achieved if EGC files SLRAs three years before the Ginna and NMP-1 licenses expire. Thus, application of the five-year time limit in 10 CFR 2.109(b) is not necessary in these circumstances. Second, compliance with the regulation would result in undue hardship and costs to EGC that are significantly in excess of those contemplated when the regulation was adopted, or those incurred by others similarly situated (10 CFR 50.12(a)(2)(iii)). Third, other material circumstances not considered when the regulation was adopted are present, such that granting the exemptions is in the public interest (10 CFR 50.12(a)(2)(vi)).
A. 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 As previously noted, the "timely renewal" doctrine embodied in the Commission's regulations at 10 CFR 2.10913 is not a doctrine unique to the NRC. Rather, Section 2.109 is reflective of a statutory requirement found in Section 9(b) of the APA, which states:
When the licensee has made timely and sufficient application for a renewal or a new license in accordance with agency rules, a license with reference to an activity of a continuing nature does not expire until the application has been finally determined by the agency.14 The underlying purpose of the APAs timely renewal provision is to "prevent[] the unfairness that would result if agency delay caused a licensee to lose a license despite having filed a timely renewal application."15 The NRCs regulation in Section 2.109 is therefore intended to protect a licensee who is engaged in an ongoing licensed activity and who has complied with agency 12 See 10 CFR § 54.4, Scope.
13 Nuclear Power Plant License Renewal; Final Rule, 56 Fed. Reg. at 64,962.
14 APA at Section 558(c).
15 Kay v. FCC, 525 F. 3d 1277, 1279 (D.C. Cir. 2008) (citing Miami MDS Co. v. FCC, 14 F.3d 658, 659-60 (D.C. Cir.
1994)). See also United States Attorney Generals Manual on the Administrative Procedure Act (1973) at 91 (In such a case the licensee has done everything that is within its power to do and he should not suffer if the agency has failed, for one reason or another, to consider his application prior to the lapse of his license.).
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Attachment Requests for Exemptions from 10 CFR 2.109(b) rules in applying for a renewed or new license from facing license expiration due to delays in the administrative process.
As noted above, on December 13, 1991, the NRC published the license renewal rule, 10 CFR Part 54. The Statement of Considerations (SOC) for that rule discussed the timely renewal doctrine and the basis for establishing the deadline for filing LRAs as five years prior to expiration of the existing license. The Commission made clear in the 1991 Final Rule that the purpose of the filing deadline is to provide the NRC a reasonable time to review an application for a renewed operating license for a nuclear power plant.16 Specifically, the SOC stated that:
Because the review of a renewal application will involve a review of many complex technical issues, the NRC estimates that the technical review would take approximately 2 years. Any necessary hearing could likely add an additional year or more. Therefore, in the proposed rule, the Commission modified § 2.109 to require that nuclear power plant operating license renewal applications be submitted at least 3 years prior to their expiration in order to take advantage of the timely renewal doctrine.
No specific comment was received concerning the proposal to add a 3-year provision for the timely renewal provision for license renewal. The current regulations require licensees to submit decommissioning plans and related financial assurance information on or about 5 years prior to the expiration of their operating licenses. The Commission has concluded that, for consistency, the deadline for submittal of a license renewal application should be 5 years prior to the expiration of the current operating license. The timely renewal provisions of § 2.109 now reflect the decision that a 5-year time limit is more appropriate.17 The foregoing excerpts demonstrate that although the NRC viewed three years as providing a reasonable time to review an application, the five-year deadline was ultimately codified based on what was thought of as merely an efficiency. Should EGC seek subsequent license renewal for Ginna and NMP-1, it would submit the SLRAs no later than three years prior to expiration of these licenses. Based on the NRCs extensive history in reviewing LRAs and more recent history in reviewing SLRAs, the proposed three-year period will provide the NRC ample time to perform a full and adequate review of the applications. Therefore, application of the five-year period in 10 CFR 2.109(b) for the filing of an SLRA is not necessary in this situation to achieve the purpose of the regulation.
Submittal of the Ginna and NMP-1 SLRAs at least 36 months prior to expiration of the operating license would provide the three-year review period that the NRC originally estimated would be adequate to review an LRA and complete any associated adjudicatory hearing. Again, the NRCs current targeted schedule for reviewing LRAs is to complete its review and make a decision on issuing the renewed license within 18 months (or less) of receipt if there is no hearing. Furthermore, in the two completed SLRAs to date - Turkey Point 3 & 4 and Peach 16 Nuclear Power Plant License Renewal; Final Rule, 56 Fed. Reg. at 64,962. The Attorney Generals Manual on the Administrative Procedure Act (noted above) also points out that, under the APA, Agencies, of course, may make reasonable rules requiring sufficient advance application.
17 Nuclear Power Plant License Renewal, Final Rule, 56 Fed. Reg. at 64,962 (emphasis added).
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Attachment Requests for Exemptions from 10 CFR 2.109(b)
Bottom 2 & 3 - the NRCs reviews were completed in 19 months and 18 months respectively,18 and both applications were contested.19 Therefore, a period of 36 months would provide ample time for the NRC to perform full and adequate safety and environmental reviews of the Ginna and NMP-1 SLRAs.
Based on the above, application of the five-year timeframe in 10 CFR 2.109(b) is not necessary to achieve the underlying purpose of the rule satisfying 10 CFR 50.12(a)(2)(ii). Accordingly, this special circumstance is present to justify the requested exemptions.
B. Compliance would result in undue hardship or other costs that are significantly in excess of those contemplated when the regulation was adopted, or that are significantly in excess of those incurred by others similarly situated As explained above, EGCs ability to make a sound business decision as to whether to pursue Ginna and NMP-1 subsequent license renewals depends on certain economic, regulatory, and legislative factors that continue to evolve rapidly and in a manner that does not lend itself to precise forecasting by EGC. For example, material changes in the power generation market that improve plant economics, or new legislation incentivizing continued operation of Ginna and NMP-1, could occur and be significant factors informing EGCs decision on whether to pursue subsequent license renewal, as well as the length of the requested renewal term. Obtaining a sufficiently clear picture of these economic, regulatory, and legislative landscapes may not be possible by the five-year timely renewal deadline provided by Section 2.109(b). Therefore, allowing the decision to pursue subsequent license renewal to be made at a later date, when economic, regulatory, and other factors affecting the viability of extended Ginna and NMP-1 operations are clearer, will allow for more efficient use of EGC and NRC resources.
Without these exemptions, EGC would face undue hardship and costs significantly in excess of those contemplated when the regulation was adopted. If the exemptions are not granted and EGC must submit the SLRAs no later than five years from expiration the licenses to preserve timely renewal protection, it may unnecessarily expend resources on developing and filing applications that EGC ultimately decides to withdraw for reasons that it cannot discern at this time. The cost to prepare an SLRA is substantial, estimated to be approximately $30 million.
Included in this cost are the fees associated with the NRCs review, which may prove unnecessary if the application is ultimately abandoned based on unforeseen economic or other conditions that adversely impact continued Ginna and NMP-1 operations.
Alternatively, if the exemptions are not granted and EGC submits the SLRAs in less than five years from license expiration (so that it may have a better understanding of market conditions and relevant energy policies), then it faces a different risk: being forced to shut down Ginna and NMP-1 if the applications are not approved before the current licenses expires. This scenario would cause EGC to lose operating revenue and incur expenses associated with preparing the 18 The Turkey Point, 3 & 4 SLRA was accepted by the NRC on April 26, 2018, and the renewed license was issued on December 4, 2019. (ML19305C879) The Peach Bottom 2 & 3 SLRA was accepted by the NRC on August 27, 2018, and the NRCs review was completed on March 5, 2020. (ML20010F285) 19 See In the Matter of Florida Power & Light Co. (Turkey Point Nuclear Generating Units 3 and 4), LBP-19-08 (Oct.
24, 2019) (Order terminating Licensing Board proceedings) (ML19297F366), and In the Matter of Exelon Generation Company, LLC (Peach Bottom Atomic Power Station Units 2 and 3), LBP-19-05 (June 20, 2019) (Order terminating Licensing Board proceedings) (ML19171A159).
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Attachment Requests for Exemptions from 10 CFR 2.109(b)
SLRAs. It would also cause significant uncertainty for Ginna and NMP-1 employees due to the indeterminate length of time that the station would be shut down and the possibility of a permanent shutdown. Such uncertainty might prompt some Ginna and NMP-1 employees to seek alternative employment opportunities thereby creating potential staffing concerns in the event of plant restart.
The NRCs timely renewal regulation did not contemplate the substantial impact that fluctuating economic, regulatory, and legislative conditions could have on licensees decisions to pursue license renewal, as comparable conditions did not exist at the time. The fairly recent decisions of numerous licensees to prematurely close nuclear power plants and related state legislative actions intended to prevent further shutdowns are testament to this fact. Therefore, the potential financial and employment hardships Ginna and NMP-1 would bear if the requested exemptions are not granted significantly exceed those contemplated by the NRC when the current timely renewal regulation was promulgated. These are additional special circumstances justifying issuance of the exemptions.
C. It is in the public interest to grant the exemptions based on new and material circumstances that did not exist when the NRC adopted Section 2.109(b)
As described above, Ginna and NMP-1 must operate within economic, regulatory, and legislative environments that continue to evolve rapidly and that will factor heavily into any future decision by EGC to pursue subsequent license renewal for Ginna and NMP-1. These dynamic market and political conditions constitute material circumstances that were not specifically considered when the NRC revised 10 CFR 2.109(b) in 1991. In deciding upon a five-year advance filing period for the timely renewal rule, the NRC did not consider these factors.
Rather, it adopted the five-year timeframe purely for administrative reasons; i.e., to provide consistency with other regulations requiring the filing of decommissioning plans and financial assurance information five years prior to license expiration. It is in the public interest to grant the exemptions based on these new and material circumstances because it would allow for more prudent use of EGC and NRC resources while having no impact on maintaining public health and safety.
5.0 PRECEDENT The NRC has approved two requests for an exemption from the timely renewal provision of 10 CFR 2.109, one for the Oyster Creek Nuclear Generating Station in December 2004, and a second for the Clinton Power Station in July 2019. The Oyster Creek exemption allowed AmerGen Energy Company, LLC to submit an LRA for the facility less than five years prior to the expiration of the operating license, while maintaining the timely renewal protection provided in 10 CFR 2.109(b).20 Similarly, the Clinton Power Station exemption will allow it to submit its application for license renewal with at least 3 years remaining prior to expiration of its license on April 17, 2027, while maintaining the protection of the timely renewal provision in 10 CFR 2.109(b).21 20 Oyster Creek Nuclear Generating Station, Exemption from the Requirements of Section 109(b) of 10 CFR Part 2, Regarding the Effect of Timely License Renewal Application (TAC No. MC3967) (Dec. 22, 2004) (ML042960164) 21 Clinton Power Station, Unit 1 - Exemption from the Requirements of 10 CFR 54.17(A) (EPID L-2018-LLE-0018)
(July 11, 2019) (ML19193A015).
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Attachment Requests for Exemptions from 10 CFR 2.109(b) 6.0 ENVIRONMENTAL ASSESSMENT EGC has determined that the proposed exemption requests meet the categorical exclusion provision in 10 CFR 51.22(c)(25), Granting of an exemption from the requirements of any regulation of this chapter. Specifically, the requested licensing actions are exemptions from the requirements of the Commissions regulations and (1) there is no significant hazards considerations; (2) there is no significant change in the types or significant increases in the amounts of any effluents that may be released offsite; (3) there is no significant increase in individual or cumulative public or occupational radiation exposure; (4) there is no significant construction impact; (5) there is no significant increase in the potential for or consequences from radiological accidents; and (6) the requirements from which the exemptions are sought involve scheduling requirements and other requirements of an administrative nature.
Therefore, in accordance with 10 CFR 51.22(b), no environmental assessment or environmental impact statement needs to be prepared in connection with the proposed exemption requests.
6.1 No Significant Hazards Consideration EGC has evaluated whether a significant hazards consideration is involved with the proposed exemptions in accordance with the three standards set forth in 10 CFR 50.92, "Issuance of amendment," as discussed below.
- 1. Do the proposed exemptions involve a significant increase in the probability or consequences of an accident previously evaluated?
Response: No The proposed exemptions would allow EGC to submit SLRAs for Ginna and NMP-1 less than five years before expiration of the renewed operating license, while still maintaining timely renewal protection under 10 CFR 2.109(b). The proposed exemptions do 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 facilities. The proposed exemptions do not affect the source term, containment isolation, or radiological release assumptions used in evaluating the radiological consequences of an accident previously analyzed in the Ginna and NMP-1 Updated Final Safety Analysis Reports (UFSAR).
Therefore, the proposed exemptions do not involve a significant increase in the probability or consequences of an accident previously evaluated.
- 2. Do the proposed exemptions create the possibility of a new or different kind of accident from any accident previously analyzed?
Response: No The proposed exemptions would allow EGC to submit SLRAs for Ginna and NMP-1 less than five years before expiration of the renewed operating licenses, while still maintaining timely renewal protection under 10 CFR 2.109(b). The proposed exemptions do not involve Page 9 of 11
Attachment Requests for Exemptions from 10 CFR 2.109(b) physical alteration of plant systems, structures, or components (SSCs), or changes in parameters governing the manner in which the plants are operated and maintained.
Therefore, the proposed exemptions do not create the possibility of a new or different kind of accident from any accident previously analyzed.
- 3. Do the proposed exemptions involve a significant reduction in a margin of safety?
Response: No The proposed exemptions would allow EGC to submit SLRAs for Ginna and NMP-1 less than five years before expiration of the renewed operating licenses, while still maintaining timely renewal protection under 10 CFR 2.109(b). No physical changes are being made to the design features or operation of the facilities.
Margin of safety is associated with confidence in the ability of the fission product barriers (i.e., 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 exemptions have no impact on the margin of safety and robustness provided in the design and construction of these facilities. In addition, the proposed exemptions will not relax any of the criteria used to establish safety limits, nor will the proposed exemptions relax safety system settings or limiting conditions of operation as defined in the Technical Specifications.
Therefore, the proposed exemptions do not involve a significant reduction in a margin of safety.
Based on the above evaluation, EGC concludes that the proposed exemptions present no significant hazards considerations under the standards set forth in 10 CFR 50.92 and, accordingly, a finding that the exemptions involve "no significant hazards consideration" is justified.
6.2 There is no significant change in the types or significant increases in the amounts of any effluents that may be released offsite There are no expected changes in the types, characteristics, or quantities of effluents discharged to the environment associated with the proposed exemptions. The exemptions will not cause any materials or chemicals to be introduced into the plant that could affect the characteristics or types of effluents released offsite. In addition, the method of operation of waste processing systems will not be affected by the exemptions. The proposed exemptions will not result in changes to the design basis requirements of SSCs that function to limit or monitor the release of effluents. All the SSCs associated with limiting the release of effluents will continue to be able to perform their functions. Therefore, the proposed exemptions will result in no significant change to the types or significant increase in the amounts of any effluents that may be released offsite.
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Attachment Requests for Exemptions from 10 CFR 2.109(b) 6.3 There is no significant increase in individual or cumulative public or occupational radiation exposure The proposed exemptions do not involve any physical alterations to the plants configurations or any changes to the operation of the facilities that could lead to a significant increase in individual or cumulative occupational radiation exposure.
6.4 There is no significant construction impact No construction activities are associated with the proposed exemptions.
6.5 There is no significant increase in the potential for or consequences from radiological accidents See the no significant hazards considerations discussion in Section 6.1 above.
6.6 The requirements from which the exemptions are sought involve
§ 51.22(c)(25)(vi)(G) (Scheduling requirements), and § 51.22(c)(25)(vi)(I) (Other requirements of an administrative, managerial, or organizational nature)
The underlying purpose of the timely renewal requirement in 10 CFR 2.109(b) from which these exemptions are sought is to protect a licensee who is engaged in an ongoing licensed activity and who has complied with agency rules in applying for a renewed or new license from facing license expiration as the result of delays in the administrative process. The requested exemptions, if granted, would allow EGC to submit SLRAs for Ginna and NMP-1 with less than five years remaining before expiration of the operating licenses while maintaining the protections of the timely renewal provision in 10 CFR 2.109(b), and allowing sufficient time for NRC review of the SLRAs.
7.0 CONCLUSION
As demonstrated above, these requests for exemptions from the requirements of 10 CFR 2.109(b) meet the criteria of 10 CFR 54.15 and 10 CFR 50.12 for specific exemptions.
Specifically, the requested exemptions are authorized by law, will not present an undue risk to the public health and safety, and are consistent with the common defense and security. In addition, the special circumstances described in 10 CFR 50.12(a)(2)(ii), (iii), and (vi) are present and warrant issuance of the exemptions.
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