ML032040413
| ML032040413 | |
| Person / Time | |
|---|---|
| Issue date: | 08/06/2003 |
| From: | Thomas B E Office of Nuclear Reactor Regulation |
| To: | Fertel M S Nuclear Energy Institute |
| Richter B J, NRC/NRR/DRIP/RPRP, 415-1978 | |
| Shared Package | |
| ML032040455 | List: |
| References | |
| Y020030113 | |
| Download: ML032040413 (4) | |
Text
August 6, 2003Mr. Marvin S. FertelSenior Vice President and Chief Nuclear Officer Nuclear Energy Institute 1776 I Street, NW, Suite 400 Washington, DC 20006-3708
SUBJECT:
Administrative Changes to NRC Final Rule on Decommissioning Trusts
Dear Mr. Fertel:
This is in response to your letter of July 1, 2003, on the referenced subject, in which theNuclear Energy Institute (NEI) requested the Nuclear Regulatory Commission (NRC) to correct what NEI described as being administrative errors in the Decommissioning Trust Rule. NEI identified four proposed modifications to the rule.I. Notification Requirement for Administrative Expenses The first suggested change relates to "Notification Requirement for Administrative Expenses." NEI stated that the NRC did not intend, as is supported by the language in its Statement of Consideration, for licensees to notify the NRC when paying ordinary trust administrative expenses. NEI asserted that " . . . [T]he above-cited provisions of the final rule failed to associate administrative expenses with an exclusion from the notice requirement." In fact, the final rule states in § 50.75(h)(1)(iv) " . . . Disbursements, or payments from the trust, escrow account, Government fund, or other account used to segregate and manage the funds, otherthan for payments of ordinary administrative costs (including taxes) and other incidental expenses of the fund (including legal, accounting, actuarial, and trustee expenses) inconnection with the operation of the fund, are restricted to decommissioning expenses ortransfer to another financial assurance method acceptable under paragraph (e) of this section until final decommissioning has been completed. . ." (emphasis added.)
In order to eliminate any further confusion regarding the present rule language, the NRCintends to conduct rulemaking to revise the rule language similar to the language NEI proposed. That is, 10 CFR 50.75(h)(1)(iv) will read "Except for withdrawals being made under10 CFR 50.82(a)(8) or for payments of ordinary administrative costs (including taxes) and otherincidental expenses of the fund (including legal, accounting, actuarial, and trustee expenses) inconnection with the operation of the fund, no disbursement or payment may be made, from thetrust,. . .
" (emphasis added.)
Further, rulemaking will be conducted to revise the first sentence of 10 CFR 50.75(h)(2) to read "Licensees that are
'electric utilities
' under § 50.2 that use prepayment or an external sinkingfund to provide financial assurance, shall include a provision in the terms of the trust, escrowaccount, Government fund, or other account used to segregate and manage funds that, except for withdrawals being made under 10 CFR 50.82(a)(8) or for payments of ordinaryadministrative costs (including taxes) and other incidental expenses of the fund (including legal,accounting, actuarial, and trustee expenses) in connection with the operation of the fund, no disbursement or payment may be made, from the trust, . . ." (emphasis added.)
II. Effective Date of the New Rule The second issue NEI identified relates to the "Effective Date of the New Rule.
" NEI's positionis that certain changes made by the rule, other than those changes in 10 CFR 50.75(h)(1)-(3),
should be made immediately effective, rather than on December 24, 2003, as is now specified in the rule. The NRC believes that there is no substantive reason not to make the generic "nosignificant hazards consideration
" determination (50.75(h)(4)) effective immediately, since thesame reasoning underlying this provision would be applicable before December 24, 2003.
Therefore, the NRC will make this particular change. The NRC does not believe that the effective date of provisions other than 10 CFR 50.75(h)(1)-(3) identified by NEI (Sections 50.75(e)(1)(i) and (ii)) should be changed, because there are more substantive changes involved and there may be unintended impacts not fully accounted for and addressed in this rulemaking.III. Preserving the Options to Retain Existing License Conditions NEI stated that the rule language does not reflect the intent of the Commission that individuallicensees should have the option of retaining their existing license conditions. The NRC agrees with the comment and plans to amend the rule by adding the following as a new section 10 CFR 50.75(h)(5).
"The provisions of 10 CFR 50.75(h)(1)-(3) do not apply to any licensee that, as ofDecember 24, 2003, has existing license conditions relating to decommissioning trust agreements so long as the licensee does not elect to amend those license conditions.
" If alicensee with existing license conditions relating to decommissioning trust agreements elects to amend those conditions, the license amendment shall be in accordance with the provisions of 10 CFR 50.75(h).IV. Investment Prohibition NEI stated that the rule failed "to include a general prohibition against investments in nuclearplant owners, although such a prohibition was intended . . .," and proposed the followingchange in
§ 50.75(h)(1)(i)(A) which, as revised, would read:
" . . . Is prohibited from investingthe funds in securities or other obligations of the licensee or any other owner or operator of theany power reactor . . .
" The NRC agrees and intends to conduct rulemaking to amend the lastsentence in that paragraph so that it would read:
" . . . provided further that these restrictions nomore than 10 percent or less of their trust assets may be indirectly invested in securities of anyother entity owning one or more nuclear power plants.
" While NEI described their proposed changes as administrative, the NRC will initiate clarifyingchanges through the issuance of a direct final rule, rather than through the issuance of a correcting amendment.The NRC appreciates your interest in making this a better rule and thanks you for yourthoughtful comments.Sincerely,/RA/Brian E. Thomas, Acting Program DirectorReactor Policy and Rulemaking Program Office of Nuclear Reactor Regulationcc:Chairman DiazCommissioner McGaffigan Commissioner Merrifield Karen Cyr, Esq. While NEI described their proposed changes as administrative, the NRC will initiate clarifyingchanges through the issuance of a direct final rule, rather than through the issuance of a correcting amendment.The NRC appreciates your interest in making this a better rule and thanks you for yourthoughtful comments.Sincerely,Brian E. Thomas, Acting Program DirectorReactor Policy and Rulemaking Program Office of Nuclear Reactor Regulationcc:Chairman DiazCommissioner McGaffigan Commissioner Merrifield Karen Cyr, Esq.
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- RPRP r/fRidsNrrOdRidsNrrAdipRidsNrrAdptMCaseDMatthews JCraigRBorchardtRidsNrrWpcMailroom - Y020030113KGrimes - Y020030113Accession Number: ML032040455 (package)Incoming: ML031910371 Response: ML032040413* See Previous ConcurrenceOFFICEDRIP/RPRPDRIP/RPRP:SC/(A)BOGCNAMEBRichter:kig*BEThomas*STreby*DATE07/24/0308/06/0308/06/03Official Record Copy