ML21349A178

Dtf Exemption Federal Register Notice

ML21349A178
Person / Time
Site:	Palisades
Issue date:	12/13/2021
From:	Brian Wittick Plant Licensing Branch III
To:
Wall S, NRR/DORL/LPL3, 415-2855
Shared Package
ML21286A581	List: ML21286A294 ML21286A506 ML21349A178
References
86 FR 71930; 12/20/2021, EPID L-2020-LLE-0240, NRC-2021-0206
Download: ML21349A178 (13)

Text

[7590-01-P]

NUCLEAR REGULATORY COMMISSION

[Docket No. 50-255; NRC-2021-0206]

Holtec Decommissioning International, LLC

Palisades Nuclear Plant

AGENCY: Nuclear Regulatory Commission.

ACTION: Exemption; issuance.

SUMMARY

The U.S. Nuclear Regulatory Commission (NRC) is issuing an ex emption

in response to a December 23, 2020, request from Holtec Decommi ssioning

International, LLC (HDI). The exemption permits HDI to make wi thdrawals from the

Palisades Nuclear Plant (PNP) Decommissioning Trust Fund (DTF) for spent fuel

management and site restoration activities at PNP without prior notification to the NRC.

This exemption is effective upon issuance, but only applies to HDI upon the

consummation of the indirect transfer of the license for PNP to Holtec International and

the transfer of the operating authority under the license to HD I.

DATES: The exemption was issued on December 13, 2021.

ADDRESSES: Please refer to Docket ID NRC-2021-0206 when contacting the NRC

about the availability of information regarding this document. You may obtain publicly

available information related to this document by any of the fo llowing methods:

• Federal Rulemaking Website: Go to https://www.regulations.gov and

search for Docket ID NRC-2021-0206. Address questions about Dockets IDs in

Regulations.gov to Stacy Schumann; telephone: 301-415-0624; em ail:

Stacy.Schumann@nrc.gov. For technical questions, contact the i ndividual listed in the

FOR FURTHER INFORMATION CONTACT section of this document.

• NRCs Agencywide Documents Access and Management System

(ADAMS): You may obtain publicly available documents online in the ADA MS Public

Documents collection at https://www.nrc.gov/reading-rm/adams.ht ml. To begin the

search, select Begin Web-based ADAMS Search. For problems wi th ADAMS, please

contact the NRCs Public Document Room (PDR) reference staff at 1-800-397-4209,

301-415-4737, or by email to PDR.Resource@nrc.gov. The ADAMS a ccession number

for each document referenced (if it is available in ADAMS) is p rovided the first time that it

is mentioned in this document.

• NRCs PDR: You may examine and purchase copies of public documents,

by appointment, at the NRCs PDR, Room P1 B35, One White Flint North, 11555

Rockville Pike, Rockville, Maryland 20852. To make an appointm ent to visit the PDR,

please send an email to PDR.Resource@nrc.gov or call 1-800-397-4209 or 301-415-

4737, between 8:00 a.m. and 4:00 p.m. (ET), Monday through Frid ay, except Federal

holidays.

FOR FURTHER INFORMATION CONTACT: Scott P. Wall, Office of Nuclear Reactor

Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001;

telephone: 301-415-2855; email: Scott.Wall@nrc.gov.

SUPPLEMENTARY INFORMATION: The text of the exemption is attached.

Dated: December 15, 2021.

For the Nuclear Regulatory Commission.

/RA/

Scott P. Wall, Senior Project Manager, Plant Licensing Branch III, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation.

2 NUCLEAR REGULATORY COMMISSION

Docket No. 50-255

Holtec Decommissioning International, LLC

Palisades Nuclear Plant

Exemption

I. Background.

The Palisades Nuclear Plant (PNP) is a pressurized-water reacto r located in Van

Buren County, Michigan. Entergy Nuclear Operations, Inc. (ENOI ) and Entergy Nuclear

Palisades, LLC (ENP) hold the U.S. Nuclear Regulatory Commissio n (NRC, the

Commission) license for PNP, Renewed Facility Operating License No. DPR-20. This

license is subject to the rules, regulations, and orders of the NRC. Operation of PNP is

scheduled to permanently cease by May 31, 2022.

By application dated December 23, 2020 (Agencywide Documents Ac cess and

Management System (ADAMS) Accession No. ML20358A075), ENOI, on behalf of itself,

ENP, Holtec International (Holtec), and Holtec Decommissioning International, LLC

(HDI), requested that the NRC consent to (1) the indirect trans fer of control of Renewed

Facility Operating License No. DPR-20 for PNP, the general lice nse for the PNP

Independent Spent Fuel Storage Installation (ISFSI), Facility O perating License No.

DPR-6 for Big Rock Point Plant (Big Rock Point), and the genera l license for the Big

Rock Point ISFSI (referred to collectively as the Sites and the licenses) to Holtec; and (2)

the transfer of ENOIs operating authority (i.e., its authority to conduct licensed activities

at the Sites) to HDI.

In support of the license transfer application, by letter dated December 23, 2020

(ADAMS Accession No. ML20358A232), HDI provided to the NRC a po st-shutdown decommissioning activities report (PSDAR) and site-specific dec ommissioning cost

estimate (SSCE) for PNP. These documents reflected HDIs propo sal to decommission

PNP over a period (inclusive of 2022) of 20 years if the licens e transfer application is

approved and the proposed license transfer transaction is consu mmated. Specifically,

the decommissioning of PNP would begin following the permanent cessation of power

operations in 2022 and the majority of license termination acti vities would be completed

by 2040 (i.e., releasing for unrestricted use the entirety of t he PNP site with the

exception of the ISFSI). HDI would then remove the fuel and Gr eater than Class C

waste from the site, decommission the ISFSI, terminate the NRC license, and release

the remainder of the site for unrestricted use in 2041.

II. Request/Action.

In support of the license transfer application, in addition to providing a PSDAR

and an SSCE, by letter dated December 23, 2020 (ADAMS Accession

No. ML20358A239), HDI also submitted to the NRC a request for e xemption from

specific requirements of sections 50.82(a)(8)(i)(A) and 50.75(h )(1)(iv) of title 10 of the

Code of Federal Regulations (10 CFR). The exemption from 10 CFR 50.82(a)(8)(i)(A)

and 10 CFR 50.75(h)(1)(iv) would permit HDI to make withdrawals from the PNP

Decommissioning Trust Fund (DTF) for spent fuel management and site restoration

activities at PNP, in accordance with the HDI SSCE. The exempt ion from

10 CFR 50.75(h)(1)(iv) would also permit HDI to make these with drawals without prior

notification to the NRC, similar to withdrawals for decommissio ning activities made in

accordance with 10 CFR 50.82(a)(8). The exemption would only a pply to HDI if and

when the proposed license transfer transaction is consummated.

As part of its exemption request, HDI provided Table 1, which s hows the annual

cash flows for the PNP DTF while conducting decommissioning act ivities under the

2 proposal to decommission PNP discussed in the HDI PSDAR. The t able contains the

projected withdrawals from the PNP DTF needed to cover the esti mated costs for PNP

for radiological decommissioning, spent fuel management, and si te restoration activities

in accordance with the HDI SSCE. By letter dated March 25, 202 1 (ADAMS Accession

No. ML21084A811), pursuant to 10 CFR 50.75(f)(1), ENOI reported to the NRC the

balance of the PNP DTF as of December 31, 2020. The NRC staff considered all of this

information in its review of the exemption request.

The requirements of 10 CFR 50.82(a)(8)(i)(A) restrict the use o f DTF withdrawals

to expenses related to legitimate decommissioning activities co nsistent with the

definition of decommissioning that appears in 10 CFR 50.2, Def initions. The definition

of decommission in 10 CFR 50.2 is:

to remove a facility or site safely from service and reduce res idual radioactivity to a level that permits

(1) Release of the property for unrestricted use and terminatio n of the license;

or

(2) Release of the property under restricted conditions and ter mination of the license.

This definition does not include activities associated with spe nt fuel management and

site restoration activities. The requirements of 10 CFR 50.75( h)(1)(iv) also restrict the

use of DTF disbursements (other than for ordinary administrativ e costs and other

incidental expenses of the fund in connection with the operatio n of the fund) to

decommissioning expenses until final radiological decommissioni ng is completed.

Therefore, an exemption from 10 CFR 50.82(a)(8)(i)(A) and 10 CF R 50.75(h)(1)(iv) is

needed to allow HDI to use funds from the PNP DTF for s pent fuel management and

site restoration activities at PNP. The requirements of 10 CFR 50.75(h)(1)(iv) further

3 provide that, except for withdrawals being made under 10 CFR 50.82(a)(8) or for

payments of ordinary administrative costs and other incidental expenses of the fund in

connection with the operation of the fund, no disbursement may be made from the DTF

without written notice to the NRC at least 30 working days in a dvance. Therefore, an

exemption from 10 CFR 50.75(h)(1)(iv) is also needed to allow H DI to use funds from

the PNP DTF for spent fuel management and site restoration acti vities at PNP without

prior NRC notification.

III. Discussion.

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

10 CFR Part 50 (1) when the exemptions are authorized by law, w ill not present an

undue risk to the public health and safety, and are consistent with the common defense

and security; and (2) when any of the special circumstances lis ted in 10 CFR 50.12(a)(2)

are present. These special circumstances include, among others :

(ii) Application of the regulation in the particular circumstan ces would not serve the underlying purpose of the rule or is not necessary to achi eve the underlying purpose of the rule; and

(iii) Compliance would result in undue hardship or other costs that are significantly in excess of thos e contemplated when the regulat ion was adopted, or that are significantly in excess of those incu rred by others similarly situated.

A. Authorized by Law

The requested exemption from 10 CFR 50.82(a)(8)(i)(A) and

10 CFR 50.75(h)(1)(iv) would allow HDI to use a portion of the funds from the PNP DTF

for spent fuel management and site restoration activities at PN P without prior notice to

the NRC in the same manner that withdrawals are made under 10 C FR 50.82(a)(8) for

4 decommissioning activities. As stated above, 10 CFR 50.12 allo ws the NRC to grant

exemptions from the requirements of 10 CFR Part 50 when the exe mptions are

authorized by law. The NRC staff has determined, as explained below, that granting

HDIs proposed exemption will not result in a violation of the Atomic Energy Act of 1954,

as amended, or the Commissions regulations. Therefore, the ex emption is authorized

by law.

B. No Undue Risk to Public Health and Safety

The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)

is to provide reasonable assurance that adequate funds will be available for the

radiological decommissioning of power reactors. Based on the H DI SSCE and the cash

flow analyses, use of a portion of the PNP DTF for spent fuel m anagement and site

restoration activities at PNP will not adversely impact HDIs a bility to complete

radiological decommissioning within 60 years and terminate the PNP license.

Furthermore, an exemption from 10 CFR 50.75(h)(1)(iv) to allow HDI to make

withdrawals from the PNP DTF for spent fuel management and site restoration activities

at PNP without prior written notification to the NRC will not a ffect the sufficiency of funds

in the DTF to accomplish radiological decommissioning, because such withdrawals are

still constrained by the provisions of 10 CFR 50.82(a)(8)(i)(B) - (C) and are reviewable

under the annual reporting requirements of 10 CFR 50.82(a)(8)(v ) - (vii).

Based on the above, there are no new accident precursors creat ed by using the

PNP DTF in the proposed manner. Thus, the probability of postu lated accidents is not

increased. Also, based on the above, the consequences of postu lated accidents are not

increased. No changes are being made in the types or amounts o f effluents that may be

released offsite. There is no significant increase in occupati onal or public radiation

5 exposure. Therefore, the requested exemption will not present an undue risk to public

health and safety.

C. Consistent with the Common Defense and Security

The requested exemption would allow HDI to use funds from the P NP DTF for

spent fuel management and site restoration activities at PNP. Spent fuel management

under 10 CFR 50.54(bb) is an integral part of the planned HDI d ecommissioning and

license termination process and will not adversely affect HDIs ability to physically secure

the site or protect special nuclear material. This change to e nable the use of a portion of

the funds from the DTF for spent fuel management and site resto ration activities has no

relation to security issues. Therefore, the common defense and security is not impacted

by the requested exemption.

D. Special Circumstances

Special circumstances, in accordance with 10 CFR 50.12(a)(2)(ii ), are present

whenever application of the regulation in the particular circum stances is not necessary to

achieve the underlying purpose of the regulation.

The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 5 0.75(h)(1)(iv),

which restrict withdrawals from DTFs to expenses for radiologic al decommissioning

activities, is to provide reasonable assurance that adequate fu nds will be available for

radiological decommissioning of power reactors and license term ination. Strict

application of these requirements would prohibit the withdrawal of funds from the PNP

DTF for activities other than radiological decommissioning acti vities at PNP, such as for

spent fuel management and site restoration activities, until fi nal radiological

decommissioning at PNP has been completed.

The PNP DTF contained $553.84 million as of December 31, 2020. HDIs

analyses project the total radiological decommissioning costs a t PNP to be

6 approximately $443,215,000 (in 2020 dollars), including the cos ts for decommissioning

the ISFSI. As required by 10 CFR 50.54(bb), HDI estimated the costs associated with

spent fuel management at PNP to be approximately $166,122,000 ( in 2020 dollars).

The NRC staff performed independent c ash flow analyses of the PNP DTF over

the proposed 20-year decommissioning period (assuming an annual real rate of return of

2 percent, as allowed by 10 CFR 50.75(e)(1)(ii)) and determined the projected earnings

of the DTF. The NRC staff confirmed that the current funds in the DTF and projected

earnings provide reasonable assurance of adequate funding to co mplete all NRC-

required radiological decommissioning activities at PNP and als o to pay for spent fuel

management and site restoration activities. Therefore, the NRC staff finds that HDI has

provided reasonable assurance that adequate funds will be avail able for the radiological

decommissioning of PNP, even with the disbursement of funds fro m the DTF for spent

fuel management and site restoration activities. Consequently, the NRC staff concludes

that application of the requirements of 10 CFR 50.82(a)(8)(i)(A ) and

10 CFR 50.75(h)(1)(iv), that funds from the DTF only be used fo r radiological

decommissioning activities and not for spent fuel management an d site restoration

activities, is not necessary to achieve the underlying purpose of the rule. Thus, special

circumstances are present supporting approval of the exemption request.

In its submittal, HDI also requested exemption from the require ment of

10 CFR 50.75(h)(1)(iv) concerning prior written notification to the NRC of withdrawals

from DTFs for activities other than radiological decommissionin g. The underlying

purpose of notifying the NRC prior to such withdrawals of funds from DTFs is to provide

an opportunity for NRC intervention, when deemed necessary, if the withdrawals are for

expenses other than those authorized by 10 CFR 50.75(h)(1)(iv) and

7 10 CFR 50.82(a)(8) that could result in there being insufficien t funds in the DTFs to

accomplish radiological decommissioning.

By granting the exemption to 10 CFR 50.75(h)(1)(iv) and

10 CFR 50.82(a)(8)(i)(A), the NRC staff considers that withdraw als consistent with HDIs

submittal dated December 23, 2020, are authorized. As stated p reviously, the NRC staff

determined that there are sufficient funds in the DTF to comple te radiological

decommissioning activities, as well as to conduct spent fuel ma nagement and site

restoration activities, consistent with HDIs PSDAR, SSCE, and December 23, 2020,

exemption request. Pursuant to the requirements in 10 CFR 50.8 2(a)(8)(v) and (vii),

licensees are required to monitor and annually report to the NR C the status of the DTF

and the licensees funding for spent fuel management. These re ports provide the NRC

staff with awareness of, and the ability to take action on, any actual or potential funding

deficiencies. Additionally, 10 CFR 50.82(a)(8)(vi) requires th at the annual financial

assurance status report must include additional financial assur ance to cover the

estimated cost of completion if the sum of the balance of any r emaining

decommissioning funds, plus earnings on such funds calculated a t not greater than a 2-

percent real rate of return, together with the amount provided by other financial

assurance methods being relied upon, does not cover the estimat ed cost to complete

the decommissioning. The requested exemption would not allow t he withdrawal of funds

from the DTF for any other purpose that is not currently author ized in the regulations

without prior notification to the NRC. Therefore, the granting of the exemption to 10 CFR

50.75(h)(1)(iv) to allow HDI to make withdrawals from the PNP D TF to cover authorized

expenses for spent fuel management and site restoration activit ies at PNP without prior

written notification to the NRC will still meet the underlying purpose of the regulation.

8 Special circumstances, in accordance with 10 CFR 50.12(a)(2)(ii i), are present

whenever compliance would result in undue hardship or other cos ts 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 s ituated. HDI states that the

DTF contains funds in excess of the estimated costs of radiolog ical decommissioning

and that these excess funds are needed for spent fuel managemen t and site restoration

activities. The NRC does not preclude the use of funds from th e DTF in excess of those

needed for radiological decommissioning for other purposes, suc h as for spent fuel

management or site restoration activities.

The NRC has stated that funding for spent fuel management and s ite restoration

activities may be commingled in DTFs, provided that the license e is able to identify and

account for the radiological decommissioning funds separately f rom the funds set aside

for spent fuel management and site restoration activities (see NRC Regulatory Issue

Summary 2001-07, Rev. 1, 10 CFR 50.75 Reporting and Recordkeep ing for

Decommissioning Planning, dated January 8, 2009 (ADAMS Accessi on

No. ML083440158), and Regulatory Guide 1.184, Revision 1, Deco mmissioning of

Nuclear Power Reactors, dated October 2013 (ADAMS Accession No. ML13144A840)).

Preventing access to those excess funds in DTFs because spent f uel management and

site restoration activities are not associated with radiologica l decommissioning would

create an unnecessary financial burden without any correspondin g safety benefit. The

adequacy of the PNP DTF to cover the cost of activities associa ted with spent fuel

management and site restoration, in addition to radiological de commissioning, is

supported by the HDI SSCE. If HDI cannot use the PNP DTF for s pent fuel

management and site restoration activities, it would need to ob tain additional funding

that would not be recoverable from the DTF, or it would have to modify its

9 decommissioning approach and methods. The NRC staff concludes that either outcome

would impose an unnecessary and undue burden significantly in e xcess of that

contemplated when 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)( 1)(iv) were adopted.

The underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)

would be achieved by allowing HDI to use a portion of the PNP D TF for spent fuel

management and site restoration activities at PNP without prior NRC notification, and

compliance with the regulations would result in an undue hardsh ip or other costs that are

significantly in excess of those contemplated when the regulati ons were adopted. Thus,

the special circumstances in 10 CFR 50.12(a)(2)(ii) and 10 CFR 50.12(a)(2)(iii) exist and

support the approval of the requested exemption.

E. Environmental Considerations

In accordance with 10 CFR 51.31(a), the Commission has determin ed that

granting the exemption will not have a significant effect on th e quality of the human

environment (see Environmental Assessment and Finding of No Sig nificant Impact

published in the Federal Register on November 26, 2021 (86 FR 67503)).

IV. Conclusions.

In consideration of the above, the NRC staff finds that the pro posed exemption

confirms the adequacy of funding in the PNP DTF, considering gr owth, to complete

radiological decommissioning of the site and to terminate the l icenses and also to cover

estimated spent fuel management and site restoration activities.

Accordingly, the Commission has determined that, pursuant to 10 CFR 50.12(a),

the exemption is authorized by law, will not present an undue r isk to public health and

safety, and is consistent with the common defense and security. Also, special

circumstances are present. Therefore, the Commission hereby gr ants HDI an

exemption from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)

10 to allow the use of a portion of the funds from the PNP DTF for spent fuel management

and site restoration activities at PNP in accordance with HDIs PSDAR and SSCE, dated

December 23, 2020. Additionally, the Commission hereby grants HDI an exemption

from the requirement of 10 CFR 50.75(h)(1)(iv) to allow such wi thdrawals without prior

NRC notification.

This exemption is effective upon issuance.

Dated: December 13, 2021.

For the Nuclear Regulatory Commission.

/RA/

Brian D. Wittick, Deputy Director, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation.

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