ML18320A037

Request for Exemption from 10 CFR 50.82(a)(8)(I)(A)

ML18320A037
Person / Time
Site:	Pilgrim
Issue date:	11/16/2018
From:	Halter M Entergy Nuclear Operations
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
2.18.069
Download: ML18320A037 (23)

Text

Entergy Nuclear Operations, Inc.

1340 Echelon Parkway Jackson, MS 39213 Tel: (601)368-5000 Mandy K. Halter Director, Nuclear Licensing 10 CFR 50.12 10 CFR 50.82 November 16, 2018 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555-0001

SUBJECT:

Request for Exemption from 10 CFR 50.82(a)(8)(i)(A)

Pilgrim Nuclear Power Station Docket No. 50-293 Renewed License No. DPR-35 LETTER NUMBER: 2.18.069

REFERENCES:

1. Letter, Entergy Nuclear Operations, Inc. to USNRC, Notification of Permanent Cessation of Power Operations, 2.15.080, dated November 10, 2015 (ML15328A053)

2. Letter, Entergy Nuclear Operations, Inc. to USNRC, Update to Spent Fuel Management Plan Pursuant to 10 CFR 50.54(bb),

2.18.071, dated November 16, 2018

3. Letter, Entergy Nuclear Operations, Inc. to USNRC, Pilgrim Nuclear Power Station Post-Shutdown Decommissioning Activities Report, 2.18.070, dated November 16, 2018

Dear Sir or Madam:

Pursuant to 10 CFR 50.12, Entergy Nuclear Operations, Inc. (ENOI), on behalf of itself and Entergy Nuclear Generation Company (ENGC), requests an exemption from 10 CFR 50.82(a)(8)(i)(A) for Pilgrim Nuclear Power Station (PNPS) to allow use of a portion of the funds from the PNPS nuclear decommissioning trust (NDT) for the management of spent fuel and site restoration activities, consistent with the PNPS Updated Spent Fuel Management Plan and the PNPS Post-Shutdown Decommissioning Activities Report (PSDAR).

On November 10, 2015, ENOI informed the NRC that PNPS will permanently cease power operations no later than June 1, 2019 (Reference 1). Subsequently, by separate letters dated November 16, 2018 (References 2 and 3), ENOI submitted an update to the PNPS Spent Fuel Management Plan (pursuant to 10 CFR 50.54(bb)) and a PSDAR (pursuant to 10 CFR 50.82(a)(4)(i)).

2.18.069 I Page 2 of 3 The PNPS Site-Specific Decommissioning Cost Estimate, provided as Attachment 1 to the PSDAR (Reference 3), identifies the estimated annual expenditures for radiological decommissioning, spent fuel management, and site restoration activities. As demonstrated in the cash flow analysis provided in Attachment 1 to this letter, the NOT contains more than sufficient amounts needed to cover all of the estimated costs of license termination, spent fuel management, and site restoration activities at PNPS. However, 10 CFR 50.82(a)(8)(i)(A) states that decommissioning trust funds may be used by licensees if the withdrawals are for expenses for legitimate decommissioning activities consistent with the definition of decommissioning in 10 CFR 50.2. The definition of "decommission" in 10 CFR 50.2 does not include activities related to spent fuel management or site restoration. Therefore, an exemption from 10 CFR 50.82(a)(8)(i)(A) is needed to allow ENGC to use NOT funds for spent fuel management and site restoration activities.

The requested exemption from 10 CFR 50.82(a)(8)(i)(A) is permissible under 10 CFR 50.12, because it will not present an undue risk to the public health and safety, and application of the regulations in this particular circumstance is not necessary to achieve the underlying purpose of the rule. In addition, application of 10 CFR 50.82(a)(8)(i)(A), which would result in restricting the use of the NOT, is not necessary to ensure adequate funding for radiological decommissioning of PNPS. Application of the rule would impose an unnecessary burden on ENOl and ENGC to provide additional, unnecessary funding for spent fuel management and site restoration activities.

ENOl requests approval of this exemption request by May 31, 2019. As discussed in the PNPS Updated Spent Fuel Management Plan and PSDAR, ENOl plans to begin spent fuel management activities shortly after the reactor is defueled. In addition, ENOl intends to conduct certain site restoration activities prior to the termination of the NRC license. The exemption is needed in order to allow ENOl to use a portion of the NOT funds for these spent fuel management and site restoration activities.

The exemption request is provided in the attachment to this letter.

This letter contains no new regulatory commitments.

Should you have any questions concerning this letter or require additional information, please contact Mr. Peter J. Miner at (508) 830-7127.

Attachment:

1. Pilgrim Nuclear Power Station Request for Exemption from 10 CFR 50.82(a)(8)(i)(A)

2.18.069 / Page 3 of 3 cc:

Mr. David C. Lew Regional Administrator, Region I U.S. Nuclear Regulatory Commission 2100 Renaissance Blvd, Suite 100 King of Prussia, PA 19406-2713 Mr. John Lamb, Senior Project Manager Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission Mail Stop O-9D12 Washington, DC 20555-0001 Mr. John Giarrusso, Jr.

Planning, Preparedness and Nuclear Section Chief Mass. Emergency Management Agency 400 Worcester Road Framingham, MA 01702 Mr. John Priest, Director Massachusetts Department of Public Health Radiation Control Program Commonwealth of Massachusetts 529 Main Street, Suite 1M2A Charlestown, MA 02129-1121 NRC Resident Inspector Pilgrim Nuclear Power Station

Attachment 1 Letter 2.18.069 Pilgrim Nuclear Power Station Request for Exemption from 10 CFR 50.82(a)(8)(i)(A)

2.18.069 I Attachment 1 I Page 1 of 19 Pilgrim Nuclear Power Station Request for Exemption from 10 CFR 50.82(a)(8)(i)(A)

I. Description Pursuant to 10 CFR 50.12, Entergy Nuclear Operations, Inc. (ENOI), on behalf of itself and Entergy Nuclear Generation Company (ENGC), requests an exemption from 10 CFR 50.82(a)(8)(i)(A) for Pilgrim Nuclear Power Station (PNPS) to allow use of a portion of the funds from the PNPS nuclear decommissioning trust (NDT) for the management of spent fuel and site restoration, consistent with the PNPS updated Spent Fuel Management Plan and Post-Shutdown Decommissioning Activities Report (PSDAR).

On November 10, 2015, ENOI informed the NRC that PNPS will permanently cease power operations no later than June 1, 2019 (Reference 1). Subsequently, by separate letters dated November 16, 2018 (References 2 and 3), ENOI submitted an update to the PNPS Spent Fuel Management Plan (pursuant to 10 CFR 50.54(bb)) and a PSDAR (pursuant to 10 CFR 50.82(a)(4)(i)).

The PNPS Site-Specific Decommissioning Cost Estimate, provided as Attachment 1 to the PSDAR (Reference 3), identifies the estimated annual expenditures for radiological decommissioning, spent fuel management, and site restoration activities. As demonstrated in the cash flow analysis provided in Table 4 below, the NDT contains more than sufficient amounts needed to cover all of the estimated costs of license termination, spent fuel management, and site restoration activities at PNPS. However, 10 CFR 50.82(a)(8)(i)(A) states that decommissioning trust funds may be used by licensees if the withdrawals are for expenses for legitimate decommissioning activities consistent with the definition of decommissioning in 10 CFR 50.2. The definition of decommission in 10 CFR 50.2 does not include activities associated with spent fuel management or site restoration. Accordingly, 10 CFR 50.82(a)(8)(i)(A) would prohibit the use of PNPS NDT funds for activities related to spent fuel management and site restoration prior to termination of the 10 CFR Part 50 license.

Because the PNPS PSDAR and updated Spent Fuel Management Plan describe activities associated with spent fuel management and site restoration that must be accomplished prior to completion of radiological decommissioning, ENOI is requesting an exemption from 10 CFR 50.82(a)(8)(i)(A) to allow ENGC to withdraw and use NDT funds for spent fuel management and site restoration activities. Given that the NDT contains more than sufficient funds needed to complete all radiological decommissioning, spent fuel management, and site restoration activities, granting the exemption would not present an undue risk to the public health and safety or prevent decommissioning from being completed as planned.

II. Background As described in the PNPS PSDAR, ENGC has decided to use the SAFSTOR method of decommissioning, which defers completion of radiological decommissioning until after a storage period, thus delaying (absent an exemption) the availability of excess funds in the NDT for spent fuel management and site restoration activities. The PSDAR includes a site-specific decommissioning cost estimate (provided as Attachment 1 to the PSDAR), which estimates the cost of radiological decommissioning, spent fuel management, and site restoration. Tables 3.2a, 3.2b, and 3.2c of the DCE (Reference 3, Attachment 1) set forth the estimated annual expenditures for license termination, spent fuel management, and site restoration respectively.

For convenience, those tables are reproduced below as Tables 1, 2, and 3. Table 4 below is an

2.18.069 I Attachment 1 I Page 2 of 19 annual cash flow analysis demonstrating that, with credited earnings during the SAFSTOR period, the NDT contains more than sufficient funds needed to cover the cost of radiological decommissioning, spent fuel management, and site restoration activities.

Table 1 - License Termination Expenditures (thousands, 2018 dollars)

Equip. & Waste Year Labor Materials Energy Disposal Other Total 2018 0 0 0 0 19,142 19,142 2019 45,256 1,040 1,409 276 52,043 100,024 2020 22,178 1,040 1,572 539 36,245 61,574 2021 13,526 454 1,157 323 30,572 46,032 2022 13,526 454 1,157 323 28,339 43,799 2023 2,276 130 524 7 11,579 14,516 2024 2,282 130 525 7 3,953 6,897 2025 2,276 130 524 7 3,322 6,259 2026 2,276 130 524 7 2,947 5,884 2027 2,276 130 524 7 2,947 5,884 2028 2,282 130 525 7 2,953 5,897 2029 2,276 130 524 7 2,947 5,884 2030 2,276 130 524 7 2,947 5,884 2031 2,276 130 524 7 2,947 5,884 2032 2,282 130 525 7 2,953 5,897 2033 2,276 130 524 7 2,947 5,884 2034 2,276 130 524 7 2,947 5,884 2035 2,276 130 524 7 2,947 5,884 2036 2,282 130 525 7 2,953 5,897 2037 2,276 130 524 7 2,947 5,884 2038 2,276 130 524 7 2,947 5,884 2039 2,276 130 524 7 2,947 5,884 2040 2,282 130 525 7 2,953 5,897 2041 2,276 130 524 7 2,947 5,884 2042 2,276 130 524 7 2,947 5,884 2043 2,276 130 524 7 2,947 5,884 2044 2,282 130 525 7 2,953 5,897 2045 2,276 130 524 7 2,947 5,884 2046 2,276 130 524 7 2,947 5,884 2047 2,276 130 524 7 2,947 5,884 2048 2,282 130 525 7 2,953 5,897 2049 2,276 130 524 7 2,947 5,884 2050 2,276 130 524 7 2,947 5,884 2051 2,276 130 524 7 2,947 5,884 2052 2,282 130 525 7 2,953 5,897 2053 2,276 130 524 7 2,947 5,884

2.18.069 I Attachment 1 I Page 3 of 19 Table 1 - License Termination Expenditures (continued)

(thousands, 2018 dollars)

Equip. & Waste Year Labor Materials Energy Disposal Other Total 2054 2,276 130 524 7 2,947 5,884 2055 2,276 130 524 7 2,947 5,884 2056 2,282 130 525 7 2,953 5,897 2057 2,276 130 524 7 2,947 5,884 2058 2,276 130 524 7 2,947 5,884 2059 2,276 130 524 7 2,947 5,884 2060 2,282 130 525 7 2,953 5,897 2061 2,276 130 524 7 2,947 5,884 2062 2,276 130 524 7 2,947 5,884 2063 1,663 298 216 6 2,514 4,697 2064 1,668 298 217 6 2,521 4,710 2065 1,663 298 216 6 2,514 4,697 2066 1,663 298 216 6 2,514 4,697 2067 1,663 298 216 6 2,514 4,697 2068 1,668 298 217 6 2,521 4,710 2069 1,663 298 216 6 2,514 4,697 2070 1,663 298 216 6 2,514 4,697 2071 1,663 298 216 6 2,514 4,697 2072 1,668 298 217 6 2,521 4,710 2073 22,411 1,183 1,324 21 3,694 28,634 2074 38,252 8,293 2,154 5,384 7,668 61,751 2075 47,682 24,256 2,053 68,469 17,586 160,046 2076 63,341 15,092 1,775 41,144 16,992 138,344 2077 66,082 10,159 1,621 26,451 16,606 120,920 2078 56,725 7,373 1,230 17,765 13,112 96,205 2079 15,548 693 178 12 2,457 18,888 2080 137 0 0 0 0 137 Total 512,400 78,223 38,769 161,050 397,552 1,187,994

2.18.069 I Attachment 1 I Page 4 of 19 Table 2 - Spent Fuel Management Expenditures (thousands, 2018 dollars)

Equip. & Waste Year Labor Materials Energy Disposal Other Total 2018 4,033 12,100 0 0 0 16,133 2019 11,838 35,513 0 0 12,665 60,016 2020 12,611 28,315 0 0 13,768 54,694 2021 12,272 24,230 0 0 12,396 48,898 2022 12,272 24,230 0 0 12,396 48,898 2023 4,188 0 0 0 8,694 12,882 2024 4,200 0 0 0 122 4,322 2025 4,188 0 0 0 122 4,310 2026 4,188 0 0 0 122 4,310 2027 4,188 0 0 0 122 4,310 2028 4,200 0 0 0 122 4,322 2029 4,188 0 0 0 122 4,310 2030 4,188 0 0 0 122 4,310 2031 4,274 259 0 0 122 4,655 2032 4,501 906 0 0 122 5,529 2033 4,188 0 0 0 122 4,310 2034 4,231 129 0 0 122 4,482 2035 4,361 518 0 0 122 5,000 2036 4,329 388 0 0 122 4,839 2037 4,188 0 0 0 122 4,310 2038 4,317 388 0 0 122 4,827 2039 4,188 0 0 0 122 4,310 2040 4,200 0 0 0 122 4,322 2041 4,317 388 0 0 122 4,827 2042 4,274 259 0 0 122 4,655 2043 4,274 259 0 0 122 4,655 2044 4,200 0 0 0 122 4,322 2045 4,317 388 0 0 122 4,827 2046 4,188 0 0 0 122 4,310 2047 4,274 259 0 0 122 4,655 2048 4,286 259 0 0 122 4,667 2049 4,317 388 0 0 122 4,827 2050 4,188 0 0 0 122 4,310 2051 4,274 259 0 0 122 4,655 2052 4,286 259 0 0 122 4,667 2053 4,188 0 0 0 122 4,310 2054 4,274 259 0 0 122 4,655 2055 4,274 259 0 0 122 4,655 2056 4,200 0 0 0 122 4,322 2057 4,274 259 0 0 122 4,655 2058 4,188 0 0 0 122 4,310

2.18.069 I Attachment 1 I Page 5 of 19 Table 2 - Spent Fuel Management Expenditures (continued)

(thousands, 2018 dollars)

Equip. & Waste Year Labor Materials Energy Disposal Other Total 2059 4,274 259 0 0 122 4,655 2060 4,329 388 0 0 122 4,839 2061 4,188 0 0 0 122 4,310 2062 4,576 1,164 0 0 122 5,862 2063 0 0 0 0 0 0 2064 0 0 0 0 0 0 2065 0 0 0 0 0 0 2066 0 0 0 0 0 0 2067 0 0 0 0 0 0 2068 0 0 0 0 0 0 2069 0 0 0 0 0 0 2070 0 0 0 0 0 0 2071 0 0 0 0 0 0 2072 0 0 0 0 0 0 2073 0 0 0 0 0 0 2074 0 0 0 0 0 0 2075 0 0 0 0 0 0 2076 0 0 0 0 0 0 2077 0 0 0 0 0 0 2078 0 0 0 0 0 0 2079 0 0 0 0 0 0 2080 0 0 0 0 0 0 Total 223,294 132,279 0 0 64,677 420,250

2.18.069 I Attachment 1 I Page 6 of 19 Table 3 - Site Restoration Expenditures (thousands, 2018 dollars)

Equip. & Waste Year Labor Materials Energy Disposal Other Total 2018-72 0 0 0 0 0 0 2073 325 0 0 0 0 325 2074 712 2 0 0 0 713 2075 236 25 0 0 0 261 2076 328 11 0 0 0 339 2077 376 3 0 0 0 379 2078 252 2 0 0 0 254 2079 12,690 4,079 127 0 2,939 19,836 2080 19,772 6,356 198 0 4,580 30,907 Total 34,691 10,478 326 0 7,519 53,014

2.18.069 I Attachment 1 I Page 7 of 19 Table 4 - Annual Cash Flow Analysis Pilgrim Nuclear Power Station - SAFSTOR Methodology Annual Cash Flow Analysis - Total License Termination, Spent Fuel Management, and Site Restoration Costs (In Thousands, 2018 Dollars)

Date Amount Total Trust Fund Balance as of 10/31/2018 $ 1,051,722 Start of Decommissioning 06/01/2019 Decommissioning Funds value at Calculation Date 10/31/2018 $ 1,051,722 Total Estimated Costs at Calculation Date 10/31/2018 $ 1,661,258 0.000% Cost Escalation Rate Start of Decom to end of Decom - Assumes 0.0% Decom cost escalation rate 2.000% Fund Earnings Rate Start of Decom to end of Decom - Assumes 2.0% Earnings Rate Pilgrim Nuclear Power Station - SAFSTOR Methodology Annual Cash Flow Analysis - Total License Termination, Spent Fuel Management, and Site Restoration Costs (In Thousands in 2018 Dollars)

Column 1 Column 2 Column 5 Column 8 Column 10 50.75 50.54 (bb) Column 3 Column 9 Column 4 Beginning of Column 6 Column 7 Balance for Year Ending Year License Spent Fuel Site Trust Fund Total Cost Year Trust Withdraw Contribute Earnings Trust Fund Termination Management Restoration Earnings Fund Balance Calculation Balance Cost Cost 2018 19,142 16,133 0 35,275 1,051,722 0 0 1,051,722 3,506 1,055,228 2019 100,024 60,016 0 160,040 1,055,228 195,315 0 859,913 17,198 877,112 2020 61,574 54,694 0 116,268 877,112 116,268 0 760,844 15,217 776,061 2021 46,032 48,898 0 94,930 776,061 94,930 0 681,131 13,623 694,753 2022 43,799 48,898 0 92,697 694,753 92,697 0 602,056 12,041 614,097 2023 14,516 12,882 0 27,398 614,097 27,398 0 586,699 11,734 598,433 2024 6,897 4,322 0 11,219 598,433 11,219 0 587,214 11,744 598,958 2025 6,259 4,310 0 10,569 598,958 10,569 0 588,390 11,768 600,158 2026 5,884 4,310 0 10,194 600,158 10,194 0 589,964 11,799 601,763 2027 5,884 4,310 0 10,194 601,763 10,194 0 591,570 11,831 603,401 2028 5,897 4,322 0 10,219 603,401 10,219 0 593,182 11,864 605,046 2029 5,884 4,310 0 10,194 605,046 10,194 0 594,852 11,897 606,749 2030 5,884 4,310 0 10,194 606,749 10,194 0 596,556 11,931 608,487

2.18.069 I Attachment 1 I Page 8 of 19 Column 1 Column 2 Column 5 Column 8 Column 10 50.75 50.54 (bb) Column 3 Column 9 Column 4 Beginning of Column 6 Column 7 Balance for Year Ending Year License Spent Fuel Site Trust Fund Total Cost Year Trust Withdraw Contribute Earnings Trust Fund Termination Management Restoration Earnings Fund Balance Calculation Balance Cost Cost 2031 5,884 4,655 0 10,539 608,487 10,539 0 597,948 11,959 609,907 2032 5,897 5,529 0 11,427 609,907 11,427 0 598,481 11,970 610,450 2033 5,884 4,310 0 10,194 610,450 10,194 0 600,257 12,005 612,262 2034 5,884 4,482 0 10,366 612,262 10,366 0 601,896 12,038 613,934 2035 5,884 5,000 0 10,884 613,934 10,884 0 603,050 12,061 615,111 2036 5,897 4,839 0 10,737 615,111 10,737 0 604,375 12,087 616,462 2037 5,884 4,310 0 10,194 616,462 10,194 0 606,268 12,125 618,394 2038 5,884 4,827 0 10,711 618,394 10,711 0 607,683 12,154 619,837 2039 5,884 4,310 0 10,194 619,837 10,194 0 609,643 12,193 621,836 2040 5,897 4,322 0 10,219 621,836 10,219 0 611,617 12,232 623,849 2041 5,884 4,827 0 10,711 623,849 10,711 0 613,138 12,263 625,401 2042 5,884 4,655 0 10,539 625,401 10,539 0 614,862 12,297 627,159 2043 5,884 4,655 0 10,539 627,159 10,539 0 616,621 12,332 628,953 2044 5,897 4,322 0 10,219 628,953 10,219 0 618,734 12,375 631,109 2045 5,884 4,827 0 10,711 631,109 10,711 0 620,398 12,408 632,806 2046 5,884 4,310 0 10,194 632,806 10,194 0 622,612 12,452 635,065 2047 5,884 4,655 0 10,539 635,065 10,539 0 624,526 12,491 637,017 2048 5,897 4,667 0 10,564 637,017 10,564 0 626,452 12,529 638,981 2049 5,884 4,827 0 10,711 638,981 10,711 0 628,270 12,565 640,836 2050 5,884 4,310 0 10,194 640,836 10,194 0 630,642 12,613 643,255 2051 5,884 4,655 0 10,539 643,255 10,539 0 632,717 12,654 645,371 2052 5,897 4,667 0 10,564 645,371 10,564 0 634,807 12,696 647,503 2053 5,884 4,310 0 10,194 647,503 10,194 0 637,309 12,746 650,056 2054 5,884 4,655 0 10,539 650,056 10,539 0 639,517 12,790 652,307 2055 5,884 4,655 0 10,539 652,307 10,539 0 641,769 12,835 654,604 2056 5,897 4,322 0 10,219 654,604 10,219 0 644,385 12,888 657,273 2057 5,884 4,655 0 10,539 657,273 10,539 0 646,734 12,935 659,669 2058 5,884 4,310 0 10,194 659,669 10,194 0 649,476 12,990 662,465 2059 5,884 4,655 0 10,539 662,465 10,539 0 651,927 13,039 664,965 2060 5,897 4,839 0 10,737 664,965 10,737 0 654,228 13,085 667,313 2061 5,884 4,310 0 10,194 667,313 10,194 0 657,119 13,142 670,262 2062 5,884 5,862 0 11,746 670,262 11,746 0 658,516 13,170 671,686

2.18.069 I Attachment 1 I Page 9 of 19 Column 1 Column 2 Column 5 Column 8 Column 10 50.75 50.54 (bb) Column 3 Column 9 Column 4 Beginning of Column 6 Column 7 Balance for Year Ending Year License Spent Fuel Site Trust Fund Total Cost Year Trust Withdraw Contribute Earnings Trust Fund Termination Management Restoration Earnings Fund Balance Calculation Balance Cost Cost 2063 4,697 0 0 4,697 671,686 4,697 0 666,989 13,340 680,329 2064 4,710 0 0 4,710 680,329 4,710 0 675,619 13,512 689,131 2065 4,697 0 0 4,697 689,131 4,697 0 684,434 13,689 698,122 2066 4,697 0 0 4,697 698,122 4,697 0 693,425 13,869 707,294 2067 4,697 0 0 4,697 707,294 4,697 0 702,596 14,052 716,648 2068 4,710 0 0 4,710 716,648 4,710 0 711,938 14,239 726,177 2069 4,697 0 0 4,697 726,177 4,697 0 721,480 14,430 735,909 2070 4,697 0 0 4,697 735,909 4,697 0 731,212 14,624 745,836 2071 4,697 0 0 4,697 745,836 4,697 0 741,139 14,823 755,962 2072 4,710 0 0 4,710 755,962 4,710 0 751,252 15,025 766,277 2073 28,634 0 325 28,959 766,277 28,959 0 737,318 14,746 752,065 2074 61,751 0 713 62,464 752,065 62,464 0 689,601 13,792 703,393 2075 160,046 0 261 160,307 703,393 160,307 0 543,086 10,862 553,947 2076 138,344 0 339 138,683 553,947 138,683 0 415,264 8,305 423,570 2077 120,920 0 379 121,298 423,570 121,298 0 302,271 6,045 308,317 2078 96,205 0 254 96,460 308,317 96,460 0 211,857 4,237 216,094 2079 18,888 0 19,836 38,724 216,094 38,724 0 177,371 3,547 180,918 2080 137 0 30,907 31,044 180,918 31,044 0 149,874 2,997 152,872 Total 1,187,994 420,250 53,014 1,661,258 1,661,258 0 38,996,799 762,407 152,872

2.18.069 I Attachment 1 I Page 10 of 19 Table 4 Definitions:

Column 1: 50.75 License Termination Cost Reflects the total annual License Termination costs in 2018 dollars at a 0.0% escalation rate Column 2: 50.54 (bb) Spent Fuel Management Cost Reflects the total annual Spent Fuel Management costs in 2018 dollars at a 0.0% escalation rat Column 3: Site Restoration Cost Reflects the total annual Site Restoration costs in 2018 dollars at a 0.0% escalation rate Column 4: Total Cost Reflects the total annual License Termination costs plus total annual Spent Fuel Management costs plus total annual Site Restoration costs, all in 2018 dollars at a 0.0% escalation rate (Column 1 + Column 2 + Column 3)

Column 5: Beginning of Year Trust Fund Balance Reflects the beginning of year Trust Fund balance in 2018 dollars at a 0.0% escalation rate and 2.0% Fund Earnings Column 6: Withdraw Reflects the annual expenditures from the Trust Fund in 2018 dollars at a 0.0% escalation rate (equals Column 4)

Column 7: Contribute Reflects the annual contributions to the Trust Fund in 2018 dollars at a 0.0% escalation rate Column 8: Balance for Earnings Calculation Reflects the Trust Fund balance in 2018 dollars used to calculate the Trust Fund Earnings (Column 5 - Column 6)

Column 9: Trust Fund Earnings Reflects earnings on funds remaining in the Trust Fund. A 2.0% earnings rate is used over a 0.0% cost escalation rate. The annual 2.0% earnings are calculated on the balance after the annual expenditures are removed (Column 8

• 2.0%).

Column 10: Year Ending Trust Fund Balance Reflects the end of year Trust Fund balance after all projected earnings are added and all projected expenditures are deducted for year-end, specified at a 0.0% escalation rate and 2.0%

fund earnings in 2018 dollars (Column 5 - Column 6 + Column 9)

2.18.069 I Attachment 1 I Page 11 of 19 Although this cash flow analysis demonstrates that with projected earnings, the NDT is sufficient to cover the estimated costs not only of radiological decommissioning but also spent fuel management and site restoration, 10 CFR 50.82(a)(8)(i)(A) prohibits the use of NDT funds for such activities. 10 CFR 50.82(a)(8)(i) states (in part) that decommissioning trust funds may be used by licensees if the withdrawals are for expenses for legitimate decommissioning activities consistent with the definition of decommissioning in Section 50.2. 10 CFR 50.2 defines decommission as:

Decommission means to remove a facility or site safely from service and reduce residual radioactivity to a level that permits -

1) Release of the property for unrestricted use and termination of the license; or

2) Release of the property under restricted conditions and termination of the license.

NRC staff guidance regarding the regulations discussed above indicates that decommissioning activities do not include spent fuel management or site restoration. (See, e.g., NUREG-1713, Standard Review Plan for Decommissioning Cost Estimates for Nuclear Power Reactors, at 2 (Other activities related to facility deactivation and site closure, including operation of the spent fuel storage pool, construction and operation of an independent spent fuel storage installation (ISFSI)... are not included in the NRC definition of decommissioning. (Reference 4)).

III. Adjusting Cost Estimates and Funding Levels 10 CFR 50.82(a)(8)(iv) states:

For decommissioning activities that delay completion of decommissioning by including a period of storage or surveillance, the licensee shall provide a means of adjusting cost estimates and associated funding levels over the storage or surveillance period.

As discussed in the PNPS PSDAR, ENOI plans to maintain PNPS in a safe storage condition for an extended period prior to completion of radiological decommissioning. This will allow radioactive decay to occur, thereby reducing the quantity of contamination and radioactivity that must be disposed of during the decontamination and dismantlement process as well as reducing the associated occupational exposure.

ENOI intends to address the requirements of 10 CFR 50.82(a)(8)(iv) with respect to the decommissioning cost estimates and funding levels for PNPS as discussed below.

A. Means of Adjusting Cost Estimates A site-specific decommissioning cost estimate for PNPS was submitted as Attachment 1 to the PNPS PSDAR (Reference 3). 10 CFR 50.82(a)(8)(iv) states that, For decommissioning activities that delay completion of decommissioning by including a period of storage or surveillance, the licensee shall provide a means of adjusting cost estimates and associated funding levels over the storage or surveillance period. The discussion on the means of adjusting cost estimates is provided in Section 4.1 of the PSDAR and is reproduced below for convenience:

2.18.069 I Attachment 1 I Page 12 of 19 The PNPS SAFSTOR schedule and the associated site-specific cost estimate summarized in Tables 2.1 and 2.2 and detailed in the DCE (Attachment 1) is reported in 2018 dollars using up-to-date 2018 pricing.

ENOI will update the PNPS DCE as required by procedure and regulation. In calculating projected earnings, ENGC will apply a compounded 2% real rate of return on the trust fund per 10 CFR 50.75(e).

In accordance with 10 CFR 50.82(a)(8)(v)-(vii), ENOI will provide annual reports projecting the cost to complete decommissioning and spent fuel management costs.

B. Means of Adjusting Associated Funding Levels The means of adjusting funding levels over the storage period is provided in Section 4.2 of the PSDAR and is reproduced below for convenience:

During the SAFSTOR period, the site-specific DCE will be periodically updated in compliance with ENOI procedures and applicable regulatory requirements. In accordance with 10 CFR 50.82(a)(8)(v),

decommissioning funding assurance will be reviewed and reported to the NRC annually during the SAFSTOR period. The latest site specific DCE adjusted for inflation, in accordance with applicable regulatory requirements, will be used to demonstrate funding assurance. In addition, actual radiological and spent fuel management expenses will be included in the annual report in accordance with the applicable regulatory requirements.

If the funding assurance demonstration shows the [NDT] is not sufficient, then an alternate funding mechanism allowed by 10 CFR 50.75(e) and the guidance provided in Regulatory Guide 1.159 (Reference 5) will be put in place.

It should be noted that the current cash flow analysis projects an excess of approximately $152.87 million upon completion of decommissioning, spent fuel management and site restoration, and is conservative in that it provides no credit for the recovery from the Department of Energy (DOE) of spent fuel management costs for which DOE is liable.

IV. Precedent The requested exemption is consistent with those approved for Kewaunee Power Station (Reference 5), Zion Nuclear Power Station, Units 1 and 2 (Reference 6), San Onofre Nuclear Generating Station, Units 2 and 3 (Reference 7), Vermont Yankee Nuclear Power Station (Reference 8), and Oyster Creek Nuclear Generating Station (Reference 9).

V. Justification for Exemption and Special Circumstances Pursuant to 10 CFR 50.12, the Commission may, upon application by any interested person or upon its own initiative, grant exemptions from the requirements of the regulations of Part 50 which 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. 10 CFR 50.12 also states that the Commission will not consider granting an exemption unless special circumstances are present.

2.18.069 I Attachment 1 I Page 13 of 19 As discussed below, this exemption request satisfies the provisions of 10 CFR 50.12.

A. The exemption is authorized by law The proposed exemption from 10 CFR 50.82(a)(8)(i)(A) would allow ENGC to use a portion of the funds from the NDT for spent fuel management and site restoration activities, consistent with the PNPS updated Spent Fuel Management Plan and PSDAR.

As stated above, 10 CFR 50.12 allows the NRC to grant exemptions from the requirements of 10 CFR Part 50. The proposed exemptions would not result in a violation of the Atomic Energy Act of 1954, as amended, or the Commission's regulations. Therefore, the exemption is authorized by law.

B. The exemption will not present an undue risk to public health and safety The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) is to provide reasonable assurance that adequate funds will be available to complete decommissioning within 60 years of a power reactors cessation of operations. Based on the DCE and the cash flow analysis provided in Table 4 above, the use of a portion of the NDT for spent fuel management and site restoration activities will not adversely impact ENOIs ability to terminate the PNPS license (i.e., complete radiological decommissioning) within 60 years, consistent with the schedule and costs contained in the PNPS updated Spent Fuel Management Plan and PSDAR.

No new accident precursors are created by using the NDT for spent fuel management and site restoration activities. Thus, the probability of postulated accidents is not increased. Nor will the use of NDT funds for spent fuel management and site restoration activities result in an increase in the consequences of postulated accidents, any changes in the types or amounts of effluents that may be released offsite, or any increase in occupational or public radiation exposure. Therefore, the exemption will not present an undue risk to the public health and safety.

C. The exemption is consistent with the common defense and security As noted above, the proposed exemption would allow ENGC to use a portion of NDT funds for spent fuel management and site restoration, consistent with the PNPS updated Spent Fuel Management Plan and PSDAR. Spent fuel management and site restoration are integral parts of the planned PNPS decommissioning process as discussed in the PNPS PSDAR, and use of NDT funds for these activities will not adversely affect ENOIs ability to physically secure the site or protect special nuclear material. Nor would the exemption alter the scope of, or availability of sufficient funding for, the PNPS Security Plan. Therefore, the proposed exemption is consistent with the common defense and security.

D. Special Circumstances Pursuant to 10 CFR 50.12(a)(2), the NRC will not consider granting an exemption to its regulations unless special circumstances are present. Special circumstances are present as discussed below.

1. 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

2.18.069 I Attachment 1 I Page 14 of 19 purpose of the rule. (10 CFR 50.12(a)(2)(ii))

The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) is to provide reasonable assurance that adequate funds will be available to complete decommissioning within 60 years of a power reactors cessation of operations. Strict application of the rule would prohibit withdrawal of funds from the NDT for activities associated with spent fuel management and site restoration until the PNPS operating license has been terminated. However, the cash flow analysis in Table 4 demonstrates that more than adequate funds are available in the PNPS NDT to complete license termination, spent fuel management, and site restoration activities; it projects that the NDT will contain approximately $152.87 million after the license is terminated in 2080 (using a 0.0% escalation rate and a 2.0% annual fund growth rate on remaining funds). Given this projected surplus of funds (even assuming use of the NDT for spent fuel management and site restoration activities), the application of 10 CFR 50.82(a)(8)(i)(A) in these circumstances is not necessary to achieve the underlying purpose of the rule. Accordingly, the special circumstances of 10 CFR 50.12(a)(2)(ii) are present.

2. 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. (10 CFR 50.12(a)(2)(iii))

The NRC did not intend to prevent the use of NDT funds solely because they are commingled, and to do so would create an unnecessary financial burden on licensees without any corresponding safety benefit. The NRC does not preclude the use of funds from the NDT in excess of those needed for radiological decommissioning for other purposes, such as spent fuel management or site restoration. Rather, the NRC has stated that funding for non-decommissioning activities may be commingled with funding for decommissioning activities in the NDT, provided that the licensee is able to identify and account for the radiological decommissioning funds separately from the funds set aside for spent fuel management (see NRC Regulatory Issue Summary 2001-07, Rev. 1, 10 CFR 50.75 Reporting and Recordkeeping for Decommissioning Planning, dated January 8, 2009 (Reference 10), and Regulatory Guide 1.184, Rev. 1, Decommissioning of Nuclear Power Reactors, (Reference 11)). The adequacy of the NDT to cover the cost of activities associated with decommissioning, spent fuel management, and site restoration activities is supported by the cash flow analysis in Table 4.

If ENGC cannot use the NDT for spent fuel management and site restoration activities, it would be forced to provide additional funding that would not be reimbursable from the NDT until the PNPS operating license is terminated. To prevent access to the surplus funds in the NDT and require ENGC to provide additional funds for spent fuel management and site restoration would impose an unnecessary and undue burden in excess of that contemplated when the regulation was adopted without any corresponding safety benefit.

Compliance with the rule would result in an undue hardship or other costs that are significantly in excess of those contemplated when the regulation was

2.18.069 I Attachment 1 I Page 15 of 19 adopted, or that are significantly in excess of those incurred by others similarly situated. Therefore, the special circumstances of 10 CFR 50.12(a)(2)(iii) are present.

VI. Environmental Assessment A. Environmental Considerations Pursuant to 10 CFR 51.21, the following environmental considerations are provided.

1. Description of the Action ENOI requests an exemption on behalf of itself and ENGC from the requirements set forth in 10 CFR 50.82(a)(8)(i)(A) restricting the use of NDT funds. Specifically, the exemption would allow ENGC to use funds from the PNPS NDT for spent fuel management and site restoration activities that are not associated with radiological decommissioning.

2. Need for the Action An exemption is needed to allow ENGC to access NDT funds, in excess of those funds needed for radiological decommissioning, to fund spent fuel management and site restoration activities, in order to avoid an unnecessary financial burden. As required by 10 CFR 50.82(a)(8)(i)(A), NDT funds may be used by a licensee if the withdrawals are for expenses for legitimate decommissioning activities consistent with the definition of decommissioning in 10 CFR 50.2. This definition addresses radiological decommissioning and does not include activities associated with spent fuel management or site restoration. Therefore, ENGC needs an exemption from 10 CFR 50.82(a)(8)(i)(A) to allow the use of NDT funds for spent fuel management and site restoration activities.

3. Environmental Impacts of the Proposed Action The proposed action involves an exemption from requirements that are of a financial or administrative nature and that do not have an impact on the environment. There is no decrease in safety associated with the use of the NDT to fund activities associated with spent fuel management and site restoration. After the site-specific Decommissioning Cost Estimate as required by 10 CFR 50.82(a)(8)(iii) is submitted, and until completing its final radiation survey and demonstrating that residual radioactivity has been reduced to a level that permits termination of the PNPS license as required by 10 CFR 50.82(a)(11), ENOI must submit financial assurance status reports to the NRC annually as required by 10 CFR 50.82(a)(8)(v). The report must include, among other things, amounts spent on decommissioning, the remaining trust fund balance, and estimated costs to complete radiological decommissioning. If the remaining NDT balance, plus earnings on such funds calculated at not greater than a 2 percent real rate of return, plus any other financial assurance methods being relied upon, does not cover the estimated costs to complete radiological decommissioning, 10 CFR 50.82(a)(8)(vi) requires that additional financial assurance to cover the estimated costs to complete radiological decommissioning must be provided. These annual reports provide a means for the NRC to monitor the adequacy of the funding available for the radiological decommissioning of PNPS notwithstanding the exemption allowing ENGC to use funds for spent fuel management and site restoration activities from the trust fund.

2.18.069 I Attachment 1 I Page 16 of 19 The proposed action will not significantly increase the probability or consequences of radiological accidents; nor will it have any direct radiological impacts. There will be no change to the types or amounts of radiological effluents that may be released, and therefore, there will be no change in occupational or public radiation exposure from the proposed action. The exemption also will not introduce any materials or chemicals 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 exemption. The proposed exemption will not result in changes to the design basis requirements of structures, systems, and components (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. Moreover, no changes would be made to plant buildings or the site property from the proposed changes. Accordingly, there are no significant radiological environmental impacts associated with the proposed action.

With regard to potential nonradiological impacts, the proposed change would have no direct impacts on land use or water resources, including terrestrial and aquatic biota, as it involves no new construction or modification of plant operational systems. There would be no changes to the quality or quantity of nonradiological effluents and no changes to the plants National Pollutant Discharge Elimination System permit would be needed. In addition, there would be no noticeable effect on socioeconomic conditions in the region, no environment justice impacts, no air quality impacts, and no impacts to historic and cultural resources from the proposed change. Therefore, there are no significant nonradiological environment impacts associated with the proposed action.

Accordingly, ENOI concludes that there are no significant environmental impacts associated with the proposed action.

4. Environmental Impacts of the Alternatives to the Action As an alternative to the action, the NRC staff could deny the exemption request. Denial of the exemption request would result in ENGC using funds from the NDT only for radiological decommissioning and not for spent fuel management or site restoration activities as described in the exemption request. The environmental impacts of this alternative would be substantively the same as the environmental impacts for granting the exemption request, because there are no potential incremental environmental impacts as a result of granting the exemption request. Therefore, the environmental impacts of the alternative to the action would be the same as those already considered by the above environmental analysis.

5. Alternative Use of Resources The requested action only involves a change in the source of funds allowed for managing spent fuel and restoring the site, and therefore, does not involve the use of any different resources than those previously considered.

B. Analysis The request for exemption from 10 CFR 50.82(a)(8)(i)(A) to allow use of NDT funds for spent fuel management and site restoration activities has no adverse impact to the environment. Approval of the exemption request would allow ENGC access to excess

2.18.069 I Attachment 1 I Page 17 of 19 funds in the NDT, based on projected trust fund growth and estimated expenditures, while continuing to demonstrate reasonable assurance of available trust funds to complete radiological decommissioning. The proposed action would not result in an adverse impact to the environment, unexpected expenditures, or other uncertainties or risks. Because the proposed exemption relates solely to the source of funding for spent fuel management and site restoration activities, it does not result in a reduction of reasonable assurance of sufficient funding to complete radiological decommissioning of the PNPS site, and does not significantly affect any of the decommissioning activities or processes previously reviewed. On this basis, the proposed exemption will not have a significant effect on the quality of the human environment.

As a result of the environmental considerations discussed above, ENOI concludes that the proposed exemption is in the public interest in that it allows ENGC to avoid unnecessary and undue costs to cover these expenses from other sources, with no potential incremental environmental impacts.

The proposed change does not require any additional Federal permits, licenses, approvals, or other entitlements.

VII. No Significant Hazards Consideration Determination ENOI has evaluated the proposed exemption to determine whether or not a significant hazards consideration is involved by focusing on the three standards set forth in 10 CFR 50.92(c) as discussed below. For the reasons discussed below, ENOI concludes that the proposed exemptions present no significant hazards consideration, and accordingly, a finding of no significant hazards consideration is justified.

A. The proposed exemption does not involve a significant increase in the probability or consequences of an accident previously evaluated The proposed exemption would allow ENGC to withdraw funds from the PNPS NDT to conduct activities associated with spent fuel management and site restoration in accordance with the PNPS PSDAR and updated Spent Fuel Management Plan. The proposed exemption has no effect on plant SSCs and no effect on the capability of any plant SSC to perform its design function. The proposed exemption would not increase the likelihood of the malfunction of any plant SSC. The proposed exemption would have no effect on any of the previously evaluated accidents in the PNPS Updated Safety Analysis Report. Use of funds in the NDT as allowed under the exemption will not affect the probability of occurrence of any previously analyzed accident. The proposed exemption does not change the requirements pertaining to spent fuel management. Therefore, the proposed exemption does not involve a significant increase in the probability or consequences of an accident previously evaluated.

B. The proposed exemption does not create the possibility of a new or different kind of accident from any accident previously evaluated The proposed exemption does not involve a physical alteration of the plant. No new or different type of equipment will be installed, and there are no physical modifications to existing equipment associated with the proposed exemption. Similarly, the proposed exemption will not physically change any SSCs involved in the mitigation of any accidents. Thus, no new initiators or precursors of a new or different kind of accident are created. Furthermore, the proposed exemption does not create the possibility of a new

2.18.069 I Attachment 1 I Page 18 of 19 accident as a result of new failure modes associated with any equipment or personnel failures. No changes are being made to parameters within which the plant is normally operated, or in the setpoints which initiate protective or mitigative actions, and no new failure modes are being introduced. Therefore, the proposed exemption does not create the possibility of a new or different kind of accident from any accident previously evaluated.

C. The proposed exemption does not involve a significant reduction in a margin of safety The proposed exemption does not alter the design basis or any safety limits for the plant. Nor does the proposed exemption impact station operation or any plant SSC that is relied upon for accident mitigation. Therefore, the proposed exemption does not involve a significant reduction in a margin of safety.

VIII. Conclusion The proposed exemption would allow ENGC to use the PNPS NDT for spent fuel management and site restoration activities, as described in the PNPS PSDAR and updated Spent Fuel Management Plan, in addition to license termination activities.

Granting the exemption would be consistent with the purposes underlying NRC decommissioning regulations in that it: (1) would not foreclose release of the site for possible unrestricted use; (2) would not result in significant environmental impacts; and (3) would not undermine the existing and continuing reasonable assurance that adequate funds will be available for decommissioning.

Further, the requested exemption is authorized by law, will not present an undue risk to the public health and safety, is consistent with the common defense and security, and special circumstances are present as set forth in 10 CFR 50.12(a)(2)(ii) and (iii).

IX. References

1. Letter, Entergy Nuclear Operations, Inc. to USNRC, Notification of Permanent Cessation of Power Operations, 2.15.080, dated November 10, 2015 (ML15328A053)

2. Letter, Entergy Nuclear Operations, Inc. to USNRC, Update to Spent Fuel Management Plan Pursuant to 10 CFR 50.54(bb), 2.18.071, dated November 16, 2018

3. Letter, Entergy Nuclear Operations, Inc. to USNRC, Pilgrim Nuclear Power Station Post-Shutdown Decommissioning Activities Report, 2.18.070, dated November 16, 2018

4. NUREG-1713, Standard Review Plan for Decommissioning Cost Estimates for Nuclear Power Reactors, dated December 2004

5. Letter, NRC to Dominion Energy Kewaunee, Inc., Kewaunee Power Station - Exemptions from the Requirements of 10 CFR 50, Section 50.82(a)(8)(i)(A) and Section 50.75(h)(1)(iv)

(TAC No. MF1438), dated May 21, 2014 (ML13337A287)

6. Letter, NRC to ZionSolutions LLC, Zion Nuclear Power Station, Units 1 and 2 - Request for Exemption from Certain Decommissioning Trust Fund Requirements of the

2.18.069 I Attachment 1 I Page 19 of 19 Decommissioning Regulations (TAC Nos. J52941 and J52942), dated July 21, 2014 (ML14030A590)

7. Letter, NRC to Southern California Edison Co., San Onofre Nuclear Generating Power Station, Units 2 and 3 - Exemptions from the Requirements of 10 CFR Part 50, Sections 50.82(a)(8)(i)(A) and Section 50.75(h)(2) (TAC Nos. MF3544 and MF3545), dated September 4, 2014 (ML14101A132)

8. Letter, NRC to Entergy Nuclear Operations, Inc., Vermont Yankee Nuclear Power Station -

Exemptions from the Requirements of 10 CFR Part 50, Sections 50.82(a)(8)(i)(A) and Section 50.75(h)(1)(iv) (TAC Nos. MF5575), dated June 17, 2015 (ML15128A219)

9. Letter, NRC to Exelon Generation Company, LLC, Oyster Creek Nuclear Generating Station - Exemptions from the Requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) (EPID L-2018-LLE-0002), dated October 19, 2018 (ML182277A025)

10. NRC Regulatory Issue Summary 2001-07, Rev. 1, 10 CFR 50.75 Reporting and Recordkeeping for Decommissioning Planning, dated January 8, 2009 (ML083440158)

11. NRC Regulatory Guide 1.184, Rev 1, Decommissioning of Nuclear Power Reactors, dated October 2013 (ML13144A840)