NG-20-0073, Notice Regarding Proposed Amendment to Decommissioning Trust Agreements

Notice Regarding Proposed Amendment to Decommissioning Trust Agreements

ML20245E414
Person / Time
Site:	Duane Arnold
Issue date:	09/01/2020
From:	Dean Curtland NextEra Energy Duane Arnold
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NG-20-0073
Download: ML20245E414 (8)

Text

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OU MIE ARNOlO September 1, 2020 NG-20-0073 10 CFR 50 .75 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Duane Arnold Energy Center Docket No. 50-331 Renewed Op. License No. DPR-49

Subject:

Notice Regarding Proposed Amendment to Decommissioning Trust Agreements

Reference:

1) Letter from G. Van Middlesworth (NMC) to NRC, "Supplemental Information in Support of Application for Order

\

and Conforming Amendments for License Transfer, dated October 11, 2005 (ML052990050)

2) Letter from Scott P. Wall, Senior Project Manager, NRC to Don Moul, Executive Vice President, Nuclear Division and Chief Nuclear Officer, "Duane Arnold Energy Center - Request for Exemption from 10 CFR 50.82(a)(8)(i)(A)

And 10 CFR 50.75(h)(1 )(iv) (EPID L-2020-LLE-0011 ),"dated August 12, 2020 (ML20171A626)

NextEra Energy Duane Arnold, LLC (NEDA) is providing this thirty (30) working day notice, pursuant to 10 CFR 50.75(h)(1)(iii) and Section 2.07 of the NEDA Nuclear Decommissioning Trusts, originally submitted with Reference 1, which require notice of 30 working days, regarding proposed amendments to the Referenced NEDA Nuclear Decommissioning Trusts (Amendment No. 3 to its Qualified Decommissioning Trust Agreement for the Duane Arnold Energy Center (DAEC) and Amendment No. 3 to its Non-Qualified Decommissioning Trust Agreement for DAEC). A copy of each proposed amendment is provided in the Attachments to this letter.

These proposed amendments effectuate the exemptions granted by the Nuclear Regulatory Commission (NRC) in Reference 2 to allow the NEDA Nuclear Decommissioning Trust funds to be used for spent fuel management and non-radiological site restoration costs without prior notice to the NRC .

A copy of this letter will be provided to the Trustee (BNY Mellon Trust of Delaware). These Amendments will not be implemented , and the Decommissioning Trusts will not be amended, if the Trustee receives written notice of objection from the Director, Office of Nuclear Reactor Regulation, within the thirty (30) working day notice period. Such written notice of objection should be provided to NEDA and the Trustee, BNY Mellon Trust of Delaware, ATTN: Glen Metzger, Client Service Director, BNY Mellon Center, Room 151-4040, Pittsburgh, PA 15258-0001 . If written notice of objection is not received within the thirty (30) working day objection NextEra Energy Duane Arnold, LLC 3277 DAEC Road , Palo, IA 52324

NG-20-0073 Page 2 of 2 period, the Decommissioning Trusts will be amended consistent with the proposed Amendments.

This letter contains no new commitments and no revisions to existing commitments.

If there are any questions or if additional information is required, please contact Mike Davis, Licensing Manager at (319) 851-7032.

Sincerely, Dean Curtland Site Director, Duane Arnold Energy Center NextEra Energy Duane Arnold, LLC Attachments: Amendments to Nuclear Decommissioning Trusts cc: Regional Administrator, USNRC, Region Ill Resident Inspector, USNRC, Duane Arnold Energy Center Project Manager, USNRC, Duane Arnold Energy Center BNY Mellon Trust of Delaware

ATTACHMENT 1 to NG-20-0073 Third Amendment to the NextEra Energy Duane Arnold, LLC, Qualified Decommissioning Trust Agreement for the Duane Arnold Energy Center Nuclear Plant 2 pages follow

Third Amendment To The NextEra Energy Duane Arnold, LLC Qualified Decommissioning Trust Agreement For the Duane Arnold Energy Center Nuclear Plant This Amendment is entered into effective on the day of , 2020, by and between NextEra Energy Duane Arnold, LLC, a limited liability company duly organized and existing under the laws of the State of Delaware (the "Company") and BNY Mellon Trust of Delaware, a wholly-owned subsidiary of The Bank ofNew York Mellon Corporation, as Trustee (the "Trustee").

WHEREAS, the Company and the Trustee entered into the NextEra Energy Duane Arnold, LLC Qualified Decommissioning Trust Agreement for the Duane Arnold Energy Center Nuclear Plant dated January 19, 2006 (the "Trust"); and WHEREAS, the purpose of the Trust is to hold funds for the contemplated decommissioning of the Duane Arnold Energy Center Nuclear Plant (the "Plant"); and WHEREAS, the Company had determined that the Plant would be shut down and decommissioned from service on October 30, 2020; and WHEREAS, the Plant suffered damage in a severe storm on August 10, 2020 and the Company subsequently dete1mined to permanently cease operations at the Plant following the storm; and WHEREAS, as a result of the permanent cessation of operations at the Plant, the Company will commence ce1iain decommissioning activities, following applicable safety and regulato1y requirements; and WHEREAS, pursuant to Section 4.01 of the Trust, upon receipt of a Certificate (as defined in the Trust), the Trustee shall make payments of Decommissioning Costs to any person (including the Company) for goods provided or labor or other services rendered in connection with the decommissioning of the Plant; and WHEREAS, Section 4.06 provides that except for administrative costs and incidental expenses in connection with the operation of the Trust, no disbursements or payments shall be made without requisite prior written notice and provided the Trustee does not receive written notice of objection from the NRC; and WHEREAS; the Company and the Trustee wish to amend Section 4.06 to clarify that costs approved by the Nuclear Regulatmy Commission ("NRC") for spent fuel management, site restoration and other costs constitute valid and appropriate expenses payable from the Trust.

NOW, THEREFORE, the Company and the Trustee hereby amend the Agreement as follows:

Effective as of [date], Section 4.06 is deleted in its entirety and replaced by the following new Section 4.06:

4.06 NRC Notice. Notwithstanding anything herein to the contrmy, except for withdrawals being made under 10 C.F.R.§50.82(a)(8) or for payments of ordinmy administrative costs (including taxes) and other incidental expenses of the Trusts (including legal, accounting, actuarial, and Trustee expenses) in connection with the operation of the Trust or costs approved by the NRC through an exemption request or otherwise for spent fuel management, site restoration, and other costs, no disbursements or payments from the Trust shall be made: (1) unless 30 working days' prior written notice of such disbursement or payment has been made to the NRC by the Company or its designee; or (2) if the Trustee or the Company receives written notice of objection from the NRC's Director of the Office of Nuclear Reactor Regulation or the Director of the Office of Nuclear Material Safety and Safeguards, as applicable.

Each pmiy represents and wmrnnts to the other patiy that it has full authority to enter into this Amendment upon the terms and conditions hereof and that the individual executing this Amendment on its behalf has the requisite authority to bind such patiy to this Amendment.

IN WITNESS WHEREOF, the parties hereto, each intending to be legally bound hereby, have executed this Amendment effective as of the date and year first written above.

NextEra Energy Duane Arnold, LLC By:

Name: ~~~~~~~~-

Title:

BNY Mellon Trust of Delaware Name:

Title:

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ATTACHMENT 2 to NG-20-0073 Third Amendment to the NextEra Energy Duane Arnold, LLC, Non-Qualified Decommissioning Trust Agreement for the Duane Arnold Energy Center Nuclear Plant 2 pages follow

Third Amendment To The NextEra Energy Duane Arnold, LLC Non-Qualified Decommissioning Trust Agreement For the Duane Arnold Energy Center Nuclear Plant This Amendment is entered into effective on the _ _ day 2020, by and between NextEra Energy Duane Arnold, LLC, a limited liability company duly organized and existing under the laws of the State of Delaware (the "Company") and BNY Mellon Trust of Delaware, a wholly-owned subsidiary of The Bank ofNew York Mellon Corporation, as Trustee (the "Trustee").

WHEREAS, the Company and the Trustee entered into the NextEra Energy Duane Arnold, LLC Non-Qualified Decommissioning Trust Agreement for the Duane Arnold Energy Center Nuclear Plant dated January 19, 2006 (the "Trust"); and WHEREAS, the purpose of the Trust is to hold funds for the contemplated decommissioning of the Duane Arnold Energy Center Nuclear Plant (the "Plant"); and WHEREAS, the Company had dete1mined that the Plant would be shut down and decommissioned from service on October 30, 2020; and WHEREAS, the Plant suffered damage in a severe storm on August 10, 2020 and the Company subsequently determined to permanently cease operations at the Plant following the storm; and WHEREAS, as a result of the permanent cessation of operations at the Plant, the Company will commence certain decommissioning activities, following applicable safety and regulatmy requirements; and WHEREAS, pursuant to Section 4.01 of the Trust, upon receipt of a Certificate (as defined in the Trust), the Trustee shall make payments of Decommissioning Costs to any person (including the Company) for goods provided or labor or other services rendered in connection with the decommissioning of the Plant; and WHEREAS, Section 4.07 provides that except for administrative costs and incidental expenses in connection with the operation of the Trust, no disbursements or payments shall be made without requisite prior written notice and provided the Trustee does not receive written notice of objection from the NRC; and WHEREAS; the Company and the Trustee wish to amend Section 4.07 to clarify that costs approved by the Nuclear Regulatory Commission ("NRC") for spent fuel management, site restoration and other costs constitute valid and appropriate expenses payable from the Trust.

NOW, THEREFORE, the Company and the Trustee hereby amend the Agreement as follows:

Effective as of [date], Section 4.07 is deleted in its entirety and replaced by the following new Section 4.07:

4.07 NRC Notice. Notwithstanding anything herein to the contrary, except for withdrawals being made under 10 C.F.R.§50.82(a)(8) or for payments of ordinary administrative costs (including taxes) and other incidental expenses of the Trusts (including legal, accounting, actuarial, and Trustee expenses) in connection with the operation of the Trust or costs approved by the NRC through an exemption request or otherwise for spent fuel management, site restoration, and other costs, no disbursements or payments from the Trust shall be made: (1) unless 30 working days' prior written notice of such disbursement or payment has been made to the NRC by the Company or its designee; or (2) if the Trustee or the Company receives written notice of objection from the NRC's Director of the Office of Nuclear Reactor Regulation or the Director of the Office of Nuclear Material Safety and Safeguards, as applicable.

Each pmiy represents and wanants to the other pmiy that it has full authority to enter into this Amendment upon the terms and conditions hereof and that the individual executing this Amendment on its behalf has the requisite authority to bind such party to this Amendment.

IN WITNESS WHEREOF, the paiiies hereto, each intending to be legally bound hereby, have executed this Amendment effective as of the date and year first written above.

NextEra Energy Duane Arnold, LLC By:

BNY Mellon Trust of Delaware Name:

Title:

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