ML18227A025
| ML18227A025 | |
| Person / Time | |
|---|---|
| Site: | Oyster Creek |
| Issue date: | 10/19/2018 |
| From: | John Lamb Special Projects and Process Branch |
| To: | Bryan Hanson Exelon Generation Co |
| Lamb J, NRR/DORL/LSPB, 415-3100 | |
| References | |
| EPID L-2018-LLE-0002 | |
| Download: ML18227A025 (15) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 Mr. Bryan C. Hanson Senior Vice President Exelon Generation Company, LLC President and Chief Nuclear Officer Exelon Nuclear 4300 Winfield Road Warrenville, IL 60555 October 19, 2018
SUBJECT:
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)
Dear Mr. Hanson:
The U.S. Nuclear Regulatory Commission has approved the enclosed exemptions from specific requirements of Title 10 of the Code of Federal Regulations Sections 50.82(a)(8)(i)(A) and 50.75(h)(1
)(iv), for Exelon Generation Company, LLC. This action is in response to your application dated March 22, 2018, which requested the exemptions to allow the use of funds from the decommissioning trust fund for irradiated fuel management and site restoration activities for Oyster Creek Nuclear Generating Station. A copy of the exemptions is enclosed.
The exemptions have been forwarded to the Office of the Federal Register for publication.
Docket No. 50-219
Enclosure:
Exemptions cc: Listserv Sincerely, ~~4YJ John~¥ Lamb, Senior Project Manager Spe; Projects and Process Branch Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation ENCLOSURE EXEMPTIONS EXELON GENERATION COMPANY, LLC OYSTER CREEK NUCLEAR GENERATING STATION DOCKET NO. 50-219 II. Request/Action.
By letter dated March 22, 2018 (ADAMS Accession No. ML 18081A201
), Exelon submitted a request for exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50. 75(h)(1 )(iv). The exemption from 1 O CFR 50.82(a)(8)(i)(A) would permit Exelon to make withdrawals from the Oyster Creek Decommissioning Trust Fund (DTF} for irradiated fuel management and site restoration activities in accordance with the Oyster Creek DCE. The exemption from 10 CFR 50.75(h)(1
)(iv) would also permit Exelon to make these withdrawals without prior notification of the NRC, similar to withdrawals for decommissioning activities made in accordance with 10 CFR 50.82(a)(8).
By separate letters dated March 30, 2016, and May 21, 2018, Exelon submitted updates to the Oyster Creek DCE. As part of its exemption request, Exelon provided Table 2, "Annual SAFSTOR Decommissioning Fund Cash Flow for Oyster Creek Nuclear Generating Station," that shows the annual DTF cash flow for Oyster Creek, while in SAFSTOR (deferred dismantling).
Table 2 contains the projected withdrawals from the DTF needed to cover the estimated costs of radiological decommissioning, irradiated fuel management, and site restoration activities as projected on the day of the application.
Subsequent to its exemption request, Exelon provided the DTF balance and cost estimates for these same activities in its letter dated May 21, 2018, for the Oyster Creek PSDAR and in Attachment 4 to its March 28, 2018, annual report on the status of decommissioning funding for Oyster Creek (ADAMS Accession No. ML 18087A150).
The NRC staff considered each of these submittals in its review of the exemption request. The requirements of 10 CFR 50.82(a)(8)(i)(A) restrict withdrawals from DTFs to expenses for legitimate decommissioning activities consistent with the definition of decommission in 10 CFR 50.2. The definition of "decommission" in 10 CFR 50.2 is:
restoration activities at Oyster Creek will not adversely impact Exelon's ability to complete radiological decommissioning within 60 years and terminate the Oyster Creek license. Furthermore, an exemption from 10 CFR 50.75(h)(1)(iv) to allow the licensee to make withdrawals from the DTF for irradiated fuel management and site restoration activities without prior written notification to the NRC will not affect 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). According to the application dated March 22, 2018, there are no new accident precursors created by using the DTF in the proposed manner. Thus, the probability of postulated accidents is not increased.
Also, based on the above, the consequences of postulated accidents are not increased.
No changes are being made in the types or amounts of effluents that may be released offsite. There is no significant increase in occupational or public radiation exposure.
Therefore, the requested exemptions will not present an undue risk to the public health and safety.
C. The Exemptions are Consistent with the Common Defense and Security The requested exemptions would allow Exelon to use funds from the Oyster Creek DTF for irradiated fuel management and site restoration activities at Oyster Creek. Irradiated fuel management under 10 CFR 50.54(bb) is an integral part of the planned Exelon decommissioning and license termination process and will not adversely affect Exelon's ability to physically secure the site or protect special nuclear material.
This change to enable the use of a portion of the funds from the DTF for irradiated fuel management and site restoration activities has no relation to security issues. Therefore, the common defense and security is not impacted by the requested exemptions. 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 circumstances 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 50.75(h)(1
)(iv), which restrict withdrawals from DTFs to expenses for radiological decommissioning activities, is to provide reasonable assurance that adequate funds will be available for radiological decommissioning of power reactors and license termination.
Strict application of these requirements would prohibit the withdrawal of funds from the Oyster Creek DTF for activities other than radiological decommissioning activities at Oyster Creek, such as for irradiated fuel management and site restoration activities, until final radiological decommissioning at Oyster Creek has been completed.
The March 28, 2018, annual report on the status of decommissioning funding for Oyster Creek, and the May 21, 2018, PSDAR both report a DTF balance of $982 million as of December 31, 2017. The cash flow analysis in Table 2 of the March 22, 2018, application is based on a beginning DTF balance of $979 million as of December 31, 2017. The licensee stated that the beginning DTF balance was adjusted to account for decommissioning and irradiated fuel management planning costs incurred in 2017 that would be reimbursed if the exemption were granted. In its analysis provided in the enclosed Table, "NRC Cash Flow Analysis of Oyster Creek Decommissioning Trust Funds and Associated Costs, including Irradiated Fuel Management and Site Restoration," the NRC staff used the lesser opening DTF balance of $979 million as a conservative estimate that reflects less money available to cover radiological decommissioning, irradiated fuel management, and site restoration costs. The Exelon analysis in the May 21, 2018, PSDAR projects the total radiological decommissioning deemed necessary, if the withdrawals are for expenses other than those authorized by 10 CFR 50.75(h)(1
)(iv) and 10 CFR 50.82(a)(8) that could result in there being insufficient funds in the DTF to accomplish radiological decommissioning.
By granting the exemptions to 10 CFR 50.75(h)(1
)(iv) and 10 CFR 50.82(a)(8)(i)(A), the NRC staff considers that withdrawals consistent with the licensee's submittal dated March 22, 2018, are authorized.
As stated previously, the NRC staff has determined that there are sufficient funds in the DTF to complete radiological decommissioning activities as well as to conduct irradiated fuel management and site restoration activities consistent with the PSDAR, DCE, IFMP, and the March 22, 2018, exemption request. Pursuant to the requirements in 10 CFR 50.82(a)(8)(v) and (vii)-, licensees are required to monitor and annually report to the NRC the status of the DTF and the licensee's funding for managing irradiated fuel. These reports 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 that the annual financial assurance status report must include additional financial assurance to cover the estimated cost of completion if the sum of the balance of any remaining decommissioning funds, plus earnings on such funds calculated at 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 estimated cost to complete the decommissioning.
The requested exemption would not allow the withdrawal of funds from the DTF for any other purpose that is not currently authorized in the regulations without prior notification to the NRC. Therefore, the granting of this exemption to 10 CFR 50.75{h){1)(iv) to allow the licensee to make withdrawals from the DTF to cover authorized expenses for irradiated fuel management and site restoration activities without prior written notification to the NRC will still meet the underlying purpose of the regulation.
Special circumstances, in accordance with 10 CFR 50.12(a)(2)(iii), are present whenever 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 management and site restoration activities without prior NRC notification, and since compliance with the regulations would result in an undue hardship or other costs that are significantly in excess of those contemplated when the regulations were adopted, the special circumstances required by 10 CFR 50.12(a)(2)(ii) and 10 CFR 50.12(a)(2)(iii) exist and support the approval of the requested exemptions.
E. Environmental Considerations In accordance with 1 O CFR 51.31 (a), the Commission has determined that the granting of the exemptions will not have a significant effect on the quality of the human environment (see Environmental Assessment and Finding of No Significant Impact published in the Federal Register on September 14, 2018 (83 FR 46763)). IV. Conclusions.
In consideration of the above, the NRC staff finds that the proposed exemptions confirm the adequacy of funding in the Oyster Creek DTF, considering growth, to complete radiological decommissioning of the site and to terminate the license 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 exemptions 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.
Also, special circumstances are present. Therefore, the Commission hereby grants Exelon exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) to allow use of a portion of the funds from the Oyster Creek DTF for spent fuel management and site restoration activities in accordance with the Oyster Creek PSDAR and DCE, dated May 21, 2018. Additionally, the Commission hereby grants Exelon an exemption from the requirement of 10 CFR 50.75{h)(1)(iv) to allow such withdrawals without prior NRC notification.
The exemptions are effective upon issuance.
Dated at Rockville, Maryland, this /f "day of~ 2018. For the Nuclear Regulatory Commission.
Kathryn M. Brock, Deputy Director, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation. ENCLOSURE Table
- NRC Cash Flow Analysis of Oyster Creek Decommissioning Trust Funds and Associated Costs, including Irradiated Fuel Management and Site Restoration In Thousands of 2 017 $ OYSTER CREEK NUCLEAR GENERATING STATION All eXl)enses with additional future funds collections.
YEAR 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 . 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 2072 2073 2074 2075 2076 2077 2078 2079(a) 2080(a) TOTAL EXPS> 10 CRF 50.75 TRUST OPENNING BALANCE $978,794 $990,243 $899,787 $807,725 $770,161 $731,846 $692,617 $673,167 $673,414 $673,665 $673,885 $674,146 $674,411 $674,682 $674,923 $674,596 $669,388 $664,076 $669,843 $675,746 $681,767 $687,908 $694,152 $700,541 $707,058 $713,706 $720,465 $727,381 $734,434 $741,629 $748,947 $756,432 $764,067 $771,854
$779,777 $787,879 $796,142 $804,571 $813,148 $821,917 $830,862 $839,985 $849,270 $858,762 $868,443 $878,318 $888,370 $898,644 $909,123 $919,811 $930,693 $941,813 $953,155 $964,724 $976,505 $988,541 $1,000,818
$973,478 $881,620 $714,251 $573,720
$511,920 Ull4738 SUPPLEMENTAL ADDITIONAL DECOMMISSIONING FUNDS TRUST COLLECTED Total NRC SPENT LICENSE FUEL SITE TERMINATION MANAGEMENT RESTORATION
$3,268 $4,700 $0 $84,002 $24,096 $0 $73,536 $34,364 $0 $7,791 $44,874 $0 $7,791 $44,874 $0 $7,813 $44,997 $0 $7,585 $25,064 $0 $7,381 $5,577 $0 $7,381 $5,577 $0 $7,401 $5,592 $0 $7,381 $5,577 $0 $7,381 $5,577 $0 $7,381 $5,577 $0 $7,401 $5,592 $0 $7,381 $6,174 $0 $7,381 $10,952 $0 $7,381 $10,952 $0 $7,367 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,367 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,367 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,367 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,367 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,367 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,367 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,367 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,367 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $7,367 $0 $0 $7,347 $0 $0 $7,347 $0 $0 $45,937 $0 $490 $108,464 $0 $681 $179,949 $0 $498 $146,288 $0 $1,560 $70,483 $0 $385 $159 $0 $36,528 ~88 $0 $20 060 $1,103,737
$290,116 $60,202 GRAND TOTAL> (a) 2079 and 2080 Site Radiological Decommissioning Costs (license termination costs) are administrative expenses associated with submitting a final report to the NRC following license termination and do not include any physical decommissioning work. ISFSI DECOMMISSIONING
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $927 $3,932 $970 $0 :i_O $5,829 $1,459,884 2.00% REAL RATE OF RETURN $19,416.52
$17,642.89
$15,837.75
$15,101.20
$14,349.93
$13,580.73
$13,199.36
$13,204.19
$13,209.11
$13,213.43
$13,218.54
$13,223.75
$13,229.07
$13,233.79
$13,227.37
$13,125.25
$13,021.10
$13,134.18
$13,249.92
$13,367.98
$13,488.40
$13,610.83
$13,736.11
$13,863.89
$13,994.23
$14,126.77
$14,262.37
$14,400.67
$14,541.75
$14,685.24
$14,832.01
$14,981.71
$15,134.40
$15,289.75
$15,448.60
$15,610.64
$15,775.91
$15,944.09
$16,116.03
$16,291.41
$16,470.30
$16,652.36
$16,838.47
$17,028.30
$17,221.93
$17,419.02
$17,620.46
$17,825.93
$18,035.51
$18,248.88
$18,468.92
$18,689.32
$18,916.16
$19,147.15
$19,383.15
$19,623.87
$19,087.81
$17,286.67
$14,004.92
$11,249.42
$10,037.65
$9,504.66
$9 291.79 TRUST CLOSING BALANCE $990,243 $899,787 $807,725 $770,161 $731,846 $692,617 $673,167 $673,414 $673,665 $673,885 $674,146 $674,411 $674,682 $674,923 $674,596 $669,388 $664,076 $669,843 $675,746 $681,767 $687,908 $694,152 $700,541 $707,058 $713,706 $720,465 $727,381 $734,434 $741,629
$748,947 $756,432 $764,067 $771,854 $779,777 $787,879 $796,142
$804,571 $813,148 $821,917 $830,862 $839,985 $849,270 $858,762 $868,443 $878,318 $888,370 $898,644 $909,123 $919,811 $930,693 $941,813 $953,155 $964,724 $976,505 $988,541 $1,000,818
$973,478 $881,620 $714,251 $573,720 $511,920 $484,738 S473.882
SUBJECT:
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 DISTRIBUTION:
PUBLIC PM File Copy RidsACRS_MailCTR Resource RidsNrrDlpPfpb Resource RidsNrrDorllspb Resource RidsNrrLAJBurkhardt Resource RidsNrrPMOysterCreek Resource RidsRgn1 MailCenter Resource ETabakov, NRR ADAMS Accession Nos. Ltr ML 18227A025; Exemption ML 18228A498; FRN ML 18227A023
- via memo **via email OFFICE NRR/DORL/LSPB/PM NRR/DORL/LSPB/LA NRR/DLP/PFPB/BC*
OGC-NLO** NAME Jlamb JBurkhardt ABowers JWachutka DATE 8/16/18 8/16/18 10/4/18 10/11/18 OFFICE NRR/DORL/LSPB/BC NRR/DORL/DD NRR/DORL/LSPB/PM NAME DBroaddus KBrock Jlamb DATE 10/17/18 10/19/18 10/19/18 OFFICIAL RECORD COPY