ML14181B065

Letter to J. Sauger, Zion Nuclear Power Station Exercise of Discretion Related to Exemption from Decommissioning Trust Requirements

ML14181B065
Person / Time
Site:	Zion  File:ZionSolutions icon.png
Issue date:	08/29/2014
From:	Camper L NRC/FSME/DWMEP
To:	Sauger J ZionSolutions
Hickman J
References
EA-14-118
Download: ML14181B065 (3)

Text

August 29, 2014 EA-14-118 Mr. John Sauger, General Manager Zion Restoration Project ZionSolutions LLC 101 Shiloh Blvd.

Zion, IL 60099-2797

SUBJECT:

ZIONSOLUTIONS - EXERCISE OF ENFORCEMENT DISCRETION RELATED TO A REQUEST FOR EXEMPTION FROM CERTAIN DECOMMISSIONING TRUST FUND REQUIREMENTS OF THE DECOMMISSIONING REGULATIONS FOR ZION NUCLEAR POWER STATION, UNITS 1 AND 2

Dear Mr. Sauger:

By letter dated June 4, 2013, ZionSolutions (ZS) submitted a request for an exemption from 10 CFR 50.82(a)(8)(i)(A) to obtain authorization to use funds from the Zion Nuclear Power Station (ZNPS) nuclear reactor decommissioning trust to fund the full scope of activities currently planned in connection with the active decommissioning of ZNPS, including the management of irradiated spent fuel consistent with ZNPSs current Irradiated Fuel Management Plan and Post-Shutdown Decommissioning Activities Report. This exemption request was submitted, at the suggestion of the U.S. Nuclear Regulatory Commission (NRC) staff, to provide a clean record for the use of funds for spent fuel management. The exemption was issued July 21, 2014 (Accession Number ML14030A590).

As part of the exemption request review, the NRC staff identified that ZS was in apparent violation of 10 CFR 50.82(a)(8)(i)(A), which requires that withdrawals from the decommissioning trust funds be used by licensees for expenses for legitimate decommissioning activities consistent with the definition of decommissioning in 10 CFR 50.2. Specifically, since 2011, funds from the ZNPS nuclear reactor decommissioning trusts had been used for spent fuel management activities, which would not be considered a decommissioning expense consistent with 10 CFR 50.2. These activities included development of an Independent Spent Fuel Storage Installation (ISFSI) at Zion and the loading and transfer of multiple spent fuel casks to the ISFSI.

This apparent violation of 10 CFR 50.82(a)(8)(i)(A) was evaluated in accordance with the NRC Enforcement Policy, the current version of which is included on the NRC's Web site at http://www.nrc.gov/about-nrc/regulatory/enforcement/enforce-pol.html. Based on its review of the applicable information, the NRC has determined that a violation has occurred.

Failure to receive an exemption to 10 CFR 50.82(a)(8)(i)(A) prior to using funds for non-decommissioning activities would normally be considered as a Severity Level III violation pursuant to the Enforcement Policy. However, in consideration of the circumstances in this case, the NRC has determined that it is appropriate to exercise enforcement discretion in

J. Sauger 2 accordance with Section 3.5 of the Enforcement Policy to refrain from issuing an enforcement action for this violation. These circumstances include the fact that ZS and its predecessors had on multiple occasions informed the NRC that a portion of the funds maintained in their Nuclear Decommissioning Trust were intended for spent fuel management. The NRC was aware of this intended use which was acknowledged in the order and amendments that authorized the transfer of the license to ZS (ML090930037). Overall, these interactions appear to have obfuscated the applicability of and limitations regarding compliance with 10 CFR 50.82(a)(8)(i)(A).

The NRC has concluded that information regarding the reason for the violation, and the date when full compliance is expected to be achieved is already adequately addressed on the docket. Therefore, you are not required to respond to this letter unless the description herein does not accurately reflect your corrective actions or your position. If you contest this action or its significance, you must provide a response within 30 days of the date of this letter, with the basis for your denial and/or corrected information, to the NRC, ATTN.: Document Control Desk, Washington, D.C. 20555-0001, with a copy to the Director, Office of Enforcement, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555-0001.

In accordance with 10 CFR 2.390 of the NRCs Agency Rules of Practice and Procedure, a copy of this letter will be available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records component of NRCs Agencywide Documents Access and Management System (ADAMS). ADAMS is accessible from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html.

If you have any questions regarding this letter or the enclosure, please contact John Hickman at (301) 415-3017 or by e-mail to john.hickman@nrc.gov.

Sincerely,

/RA/

Larry W. Camper, Director Division of Waste Management and Environmental Protection Office of Federal and State Materials and Environmental Management Programs Docket Nos.: 50-295, 50-304 & 72-1037 License Nos.: DPR-39 & DPR-48 cc: Zion Nuclear Power Station Service List

J. Sauger 2 accordance with Section 3.5 of the Enforcement Policy to refrain from issuing an enforcement action for this violation. These circumstances include the fact that ZS and its predecessors had on multiple occasions informed the NRC that a portion of the funds maintained in their Nuclear Decommissioning Trust were intended for spent fuel management. The NRC was aware of this intended use which was acknowledged in the order and amendments that authorized the transfer of the license to ZS (ML090930037). Overall, these interactions appear to have obfuscated the applicability of and limitations regarding compliance with 10 CFR 50.82(a)(8)(i)(A).

The NRC has concluded that information regarding the reason for the violation, and the date when full compliance is expected to be achieved is already adequately addressed on the docket. Therefore, you are not required to respond to this letter unless the description herein does not accurately reflect your corrective actions or your position. If you contest this action or its significance, you must provide a response within 30 days of the date of this letter, with the basis for your denial and/or corrected information, to the NRC, ATTN.: Document Control Desk, Washington, D.C. 20555-0001, with a copy to the Director, Office of Enforcement, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555-0001.

In accordance with 10 CFR 2.390 of the NRCs Agency Rules of Practice and Procedure, a copy of this letter will be available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records component of NRCs Agencywide Documents Access and Management System (ADAMS). ADAMS is accessible from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html.

If you have any questions regarding this letter or the enclosure, please contact John Hickman at (301) 415-3017 or by e-mail to john.hickman@nrc.gov.

Sincerely,

/RA/

Larry W. Camper, Director Division of Waste Management and Environmental Protection Office of Federal and State Materials and Environmental Management Programs Docket Nos.: 50-295, 50-304 & 72-1037 License Nos.: DPR-39 & DPR-48 cc: Zion Nuclear Power Station Service List DISTRIBUTION:

ROrlikowski, RIII OGC OE DURLD r/f ML14181B065 OFFICE: DWMEP DWMEP DMMSA DWMEP DWMEP NAME: JHickman CHolston MBurgess BWatson APersinko DATE: 7 / 1 / 2014 7 / 1 / 2014 7 / 8 / 2014 7 / 2 / 2014 7 /23 / 2014 OFFICE: DWMEP OE OGC DWMEP NAME: LCamper JWray JMaltese LCamper DATE: 7 / 23 / 2014 7 / 30 / 2014 8 / 13 / 2014 8/29/2014 OFFICIAL RECORD COPY