ML15289A125

La 3 - FRN Review - VY Dtf Exemption

ML15289A125
Person / Time
Site:	Vermont Yankee File:NorthStar Vermont Yankee icon.png
Issue date:	05/06/2015
From:	Office of Nuclear Reactor Regulation
To:	Division of Operating Reactor Licensing
References
15-940-03-LA-BD01
Download: ML15289A125 (15)

Text

VermontYankeeLA3PEm Resource From: FRN_ReviewRequest Sent: Wednesday, May 06, 2015 1:57 PM To: Kim, James Cc: Blechman, Paula; Khanna, Meena

Subject:

RE: FRN Review - VY DTF Exemption Attachments: FRN-VY DTF Exemption adm.docx Thanks for submitting your document to the Rules, Announcements, and Directives Branch (RADB) for early review.

Please find attached a mark-up including corrections required by the Plain Writing Act, the Office of the Federal Register (OFR), and the Office of Administration (ADM). These requirements are set forth in the NRC Editorial Style Guide (NUREG-1379, Revision 2), the US NRC Regulations Handbook (NUREG/BR-0053, Revision 2), and the OFRs Document Drafting Handbook.

Please note, your document will not be submitted for publication without the incorporation of the required changes. If you feel that the changes made inadvertently change the technical or legal intent of the document, please contact us to discuss the specific basis for the changes and the paths forward.

When forwarding the document for publication in the Federal Register, please have your staff also note the following publication requirements:

• The package must include all items listed on the General Notices checklist and must include a transmittal letter.

In addition, include this e-mail along with your package as proof of ADM/DAS/RADB concurrence.

• Ensure that the Tracked Changes function for the document have been removed in ADAMS.

• All documents transmitted must be placed in ADAMS before the package is sent to ADM. See the General Notice checklist for instructions on profiling the document in ADAMS.

• The ADAMS Inventory of Publicly Available Documents must be completed and returned with the final publication package.

• Arrange for any associated NUREGs to be posted to the appropriate NUREG-Series Publications Document Collection at http://www.nrc.gov/reading-rm/doc-collections/nuregs/.

If you have any questions, please contact me at 301-415-3463 (e-mail: Carol.Gallagher@nrc.gov) or Leslie Terry at 301-415-1167 (e-mail: Leslie.Terry@nrc.gov).

Thanks, Carol Gallagher From: Kim, James Sent: Friday, May 01, 2015 10:55 AM To: FRN_ReviewRequest Cc: Blechman, Paula; Khanna, Meena

Subject:

FRN Review - VY DTF Exemption Please review the attached draft FRN to ensure it is an acceptable format.

1

Thanks, Jim Kim NRR/DORL 301-415-4125 2

Hearing Identifier: VermontYankee_LA3_Public Email Number: 20 Mail Envelope Properties (0AA17736E4C4154CA37233EEBFC8DEB2021F62A4B3CF)

Subject:

RE: FRN Review - VY DTF Exemption Sent Date: 5/6/2015 1:56:52 PM Received Date: 5/6/2015 1:56:55 PM From: FRN_ReviewRequest Created By: FRN_ReviewRequest@nrc.gov Recipients:

"Blechman, Paula" <Paula.Blechman@nrc.gov>

Tracking Status: None "Khanna, Meena" <Meena.Khanna@nrc.gov>

Tracking Status: None "Kim, James" <James.Kim@nrc.gov>

Tracking Status: None Post Office: HQCLSTR02.nrc.gov Files Size Date & Time MESSAGE 2954 5/6/2015 1:56:55 PM FRN-VY DTF Exemption adm.docx 47253 Options Priority: Standard Return Notification: No Reply Requested: No Sensitivity: Normal Expiration Date:

Recipients Received:

[7590-01-P]

NUCLEAR REGULATORY COMMISSION

[Docket No. 50-271; NRC-20YY-XXXX]

Entergy Nuclear Operations, Inc.

Vermont Yankee Nuclear Power Station AGENCY: Nuclear Regulatory Commission.

ACTION: Exemption; issuance.

SUMMARY

The U.S. Nuclear Regulatory Commission (NRC) is issuing exemptions in response to a January 6, 2015, request from Entergy Nuclear Operations, Inc. (ENO or the licensee)., representing itself, from the requirements set forth in Title 10 of the Code of Federal Regulations (10 CFR) Part 50 Section 50.82(a)(8)(i)(A) and Section 50.75(h)(2). TheOne exemption from 10 CFR 50.82(a)(8)(i)(A) would permit the use of the Ddecommissioning Ttrust Ffunds (Trust) to effectuate the licensees plan to manage irradiated fuel in accordance with the updated Irradiated Fuel Management Plan (Agencywide Documents Access and Management System (ADAMS) Accession No. ML14358A251) and post-shutdown decommissioning Comment [C1]: Cannot use CFR citations or ADAMS accession numbers in the

SUMMARY

section.

activities report (PSDAR) (ADAMS Accession No. ML14357A110). The other exemption from 10 CFR 50.75(h)(2) would allow the licensee to use withdrawals from the Decommissioning Trust Fund Trust in accordance with the updated Irradiated Fuel Management Plan and PSDAR without prior notification to the NRC.

ADDRESSES: Please refer to Docket ID <INSERT: NRC-20YY-XXXX> when contacting the NRC about the availability of information regarding this document. You may obtainaccess publicly-available information related to this document using any of the following methods:

• Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID <INSERT: NRC-20YY-XXXX>. Address questions about NRC dockets to Carol Gallagher; telephone: 301-415-3463; e-mail: Carol.Gallagher@nrc.gov. For technical questions, contact the individual(s) listed in the FOR FURTHER INFORMATION CONTACT section of this document.

• NRCs Agencywide Documents Access and Management System (ADAMS):

You may obtainaccess publicly- available documents online in the ADAMS pPublic dDocument collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ADAMS Public Documents and then select Begin Web-based ADAMS Search. For problems with ADAMS, please contact the NRCs Public Document Room (PDR) reference staff at 1-800-397-4209, 301-415-4737, or by e-mail to pdr.resource@nrc.gov. The ADAMS Aaccession number for each document referenced in this document (if that document is available in ADAMS) is provided the first time that a document is referenced.

• NRCs PDR: You may examine and purchase copies of public documents at the NRCs PDR, Room O1-F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: James Kim, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone:

301-415-4125; e-mail: James.Kim@nrc.gov.

SUPPLEMENTARY INFORMATION:

I. Background.

ENO, the licensee, is the holder of Operating License No. DPR-28. By letter dated Formatted: Indent: First line: 0.5" September 23, 2013 (ADAMS Accession No. ML13273A204), ENO, submitted a certification to the NRC (or Commission) indicating it would permanently cease power operations at Vermont Yankee Nuclear Power Station (VY) and certified that it had permanently defueled the VY reactor vessel. VY has not operated since December 29, 2014. The facility consists of a boiling water reactor located in the town of Vernon, Vermont, in Windham County on the west shore of the Connecticut River immediately upstream of the Vernon Hydroelectric Station.

II. Request/Action.

On January 6, 2015, ENO submitted a request for exemptions from Section 50.82(a)(8)(i)(A) and Section 50.75(h)(1)(iv) of Part 50 of Title 10 of the Code of Federal Comment [C2]: In the

SUMMARY

section the requested exemption is from 50.75(h)(2). I assume the correct section is 50.75(h)(1)(iv).

Regulations (10 CFR) (ADAMS Accession No. ML15013A171). The exemption from 10 CFR 50.82(a)(8)(i)(A) would permit the use of the ENO Decommissioning Trust Fund (Trust) towards financing irradiated fuel management as outlined in the updated Irradiated Fuel Management Plan (ML14358A251). The licensees requested exemption from 10 CFR 50.75(h)(1)(iv) would permit Trust disbursements for irradiated fuel management activities to be made without prior notification of the NRC, similar to withdrawals in accordance with 10 CFR 50.82(a)(8). By a separate letter dated December 19, 2014 (ADAMS Accession No. MLXXXXXXXXX), ENO submitted an update to the VY Irradiated Fuel Management Plan (as required by 10 CFR 50.54(bb) (ADAMS Accession No. ML14358A251). The PSDAR, as required by 10 CFR 50.82(a)(4)(i), was submitted on December 19, 2014 (ADAMS Accession No. ML14357A110).

The requirements of 10 CFR 50.82(a)(8)(i)(A) restrict the use of Trustdecommissioning trust fund withdrawals to expenses for legitimate decommissioning activities consistent with the definition of decommissioning which appears in 10 CFR 50.2. The definition of decommission in 10 CFR 50.2 reads as follows:

to remove a facility or site safely from service and reduce residual radioactivity to a level Formatted: Indent: Left: 0", First line: 0.5",

Right: 0" that permits-(1) Release of the property for unrestricted use and termination of the license; or Formatted: Normal, Indent: First line: 0.5",

No bullets or numbering (2) Release of the property under restricted conditions and termination of the license. Comment [C3]: You cannot quote the CFR in an FRN.

The definition does not include activities associated with irradiated fuel management or site restoration. Therefore, an exemption from 10 CFR 50.82(a)(8)(i)(A) is needed to allow ENO to use funds from the Trust for irradiated fuel management.

The requirements of 10 CFR 50.75(h)(1)(iv) also restrict the use of Trustdecommissioning trust fund disbursements (other than for ordinary and incidental expenses) to decommissioning expenses until final decommissioning is completed. The requirements of 10 CFR 50.75(h)(1)(iv) further provide that, except for decommissioning withdrawals being made under 10 CFR 50.82(a)(8) or for payment of ordinary and incidental expenses, no disbursement may be made from the Trust without written notice to the NRC at least 30 working days in advance. Therefore an exemption from 10 CFR 50.75(h)(1)(iv) is needed to allow ENO to use funds from the tTrust for irradiated fuel management 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 when (1) when 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; and (2) when any of the special circumstances listed in 10 CFR 50.12(a)(2) are present. These special circumstances include, among other things, the following:

(a) Application of the regulation in the particular circumstances would not serve the underlying purpose of the rule or is not necessary to achieve the underlying purpose of the rule; or (b) 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 excess of those incurred by others similarly situated.

A. The Exemptions are Authorized by Law.

These exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)(h)(2) would allow ENO to use a portion of the funds from the Trust for activities other than decommissioning activities without prior notice to the NRC. As stated above, 10 CFR 50.12 allows the NRC to grant exemptions from the requirements of 10 CFR Part 50. The NRC staff has determined that granting of the licensees proposed exemptions will not result in a violation of the Atomic Energy Act of 1954, as amended, or the Commissions regulations. Therefore, the exemptions are authorized by law.

B. The Exemptions Present No Undue Risk to the Public Health and Safety.

The underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)(h)(2) Formatted: Indent: First line: 0.5" are to provide reasonable assurance that adequate funds will be available for radiological

decommissioning of power reactors. Based on the site-specific cost estimate and the cash flow analysis, use of the Trust in the proposed manner will not adversely impact ENOs ability to complete radiological decommissioning within 60 years and terminate the VY license.

Furthermore, exemption from 10 CFR 50.75(h)(1)(iv) to allow the licensee to make withdrawals from the Trust without prior written notification to the NRC should not affect the sufficiency of funds in the Trust to accomplish radiological decontamination of the site.

Based on the above, there are no new accident precursors created by using the Trust 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, there is no undue risk to public health and safety.

C. The Exemptions are Consistent with the Common Defense and Security.

The proposed exemption would allow ENO to use funds from the Trust for irradiated fuel management. Irradiated fuel management under 10 CFR 50.54(bb) is an integral part of the planned ENO decommissioning and final license termination process and will not adversely affect ENOs ability to physically secure the site or protect special nuclear material. This change to enable use of a portion of the funds from the Trust for activities other than decommissioning activities has no relation to security issues. Therefore, the common defense and security is not impacted by this exemption.

D. Special Circumstances.

Special circumstances, in accordance with 10 CFR 50.12(a)(2), are present whenever application of the regulation in the particular circumstances is not necessary to achieve the underlying purpose of the regulation.

The underlying purposes of 10 CFR 50.82(a)(8)(i)(A) is to provide reasonable assurance that adequate funds will be available for radiological decommissioning of power reactors. Strict application of these requirements would prohibit withdrawal of funds from the Trust for activities other than decommissioning activities until final radiological decommissioning at VY has been completed.

The VY total Decommissioning Trust FundsTrust balance as of October 31, 2014, was approximately $655.0 million in 2014 dollars. The ENO analysis of the tTrust projects the total radiological decommissioning cost of VY to be approximately $817.2 million (2014 dollars). As required by 10 CFR 50.54(bb), ENO estimated the costs associated with the long-term irradiated fuel management at $364.4 million in 2014 dollars. The total expenditures for site restoration are estimated at $57.1 million (2014 dollars). The staff performed an independent cash flow analysis of the Trust through 2075, assuming an annual real rate of return of two percent, as allowed by 10 CFR 50.75(e)(1)(ii), and determined the projected earnings of the Trust. The staff confirmed that there is reasonable assurance of adequate funding to complete all NRC required decommissioning activities based on the current funds, planned future contributions, and projected earnings of the Trust.

The staff concludes, at this time, that the ENO site-specific decommissioning cost analysis demonstrates adequate funds are available in the Trust to complete radiological decommissioning, for irradiated fuel management, and site restoration activities. The staffs review and conclusions are based on ENOs specific financial situation as described in the December 19, 2014, letters. Therefore, ENO has demonstrated reasonable assurance that

sufficient funding will be available for radiological decommissioning and irradiated fuel management (and site restoration activities), and that the exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) will still achieve the underlying purposes of the regulation.

In its submittal, ENO also requested exemption from the requirements of 10 CFR 50.75(h)(1)(iv) concerning prior written notification to the NRC of withdrawals from the Trust to fund activities other than decommissioning activities. The underlying purpose of notifying the NRC prior to withdrawal of funds from the Trust is to provide 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 10 CFR 50.82(a)(8) that could result in insufficient funds in the Trust to accomplish radiological decommissioning of the site.

As stated previously, the staff has determined that there are sufficient funds in the Trust to complete legitimate radiological decommissioning activities. Pursuant to the annual reporting requirements in 10 CFR 50.82(a)(8)(v) - (vii), licensees are required to monitor and report the status of the decommissioning trust fundTrust and the funding status for managing irradiated fuel. These reports provide the NRC with awareness of, and the ability to take action on, any actual or potential funding deficiencies. The requested exemption would not allow withdrawal of funds from the VY Trust 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 Trust 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 excess of those incurred by others similarly situated.

The licensee states that the Trust contains funds in excess of the estimated costs of radiological decommissioning and that these excess funds are needed for irradiated fuel management activities. The NRC does not preclude use of funds from the decommissioning tTrust in excess of those needed for radiological decommissioning for other purposes, such as irradiated fuel management. The NRC has stated that funding for irradiated fuel management and other site restoration activities may be commingled in the decommissioning tTrust provided the licensee is able to identify and account for the radiological decommissioning funds separately from the funds set aside for irradiated fuel management (see NRC Regulatory Issue Summary 2001-07, Rev 1, 10 CFR 50.75 Reporting and Recordkeeping for Decommissioning Planning dated January 8, 2009 (ADAMS Accession No. ML083440158), and Regulatory Guide 1.184, Revision 1, Decommissioning of Nuclear Power Reactors (ADAMS Accession No. ML13144A840)). To prevent access to those excess funds in the Trust because irradiated fuel management and site restoration are not associated with radiological decommissioning, would create an unnecessary financial burden without any corresponding safety benefit. The adequacy of the Trust to cover the cost of activities associated with irradiated fuel management, in addition to radiological decommissioning, is supported by the staffs site-specific decommissioning cost analysis. If ENO cannot use its Trust for irradiated fuel management, it would need to obtain additional funding that would not be recoverable from the Trust, or ENO would have to modify its decommissioning approach and methods. The NRC staff concludes that either outcome would impose an unnecessary and undue burden significantly in excess of that contemplated when the regulation was adopted.

Therefore, since the underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)(h)(2) would be achieved by allowing ENO to use a portion of the Trust for irradiated fuel management activities without prior NRC notification, and compliance with the regulations would result in an undue hardship or other costs that are significantly in excess of

those contemplated when the regulation was adopted, the special circumstances required by 10 CFR 50.12(a)(2)(ii) and 10 CFR 50.12(a)(2)(iii) exist.

E. Environmental Considerations.

Under 10 CFR 51.22(c)(25), granting of an exemption from the requirements of any regulation of Chapter I to 10 CFR is a categorical exclusion provided that (i) there is no significant hazards consideration; (ii) there is no significant change in the types or significant increase in the amounts of any effluents that may be released offsite; (iii) there is no significant increase in individual or cumulative public or occupational radiation exposure; (iv) there is no significant construction impact; (v) there is no significant increase in the potential for or consequences from radiological accidents; and (vi)(A) the requirements from which an exemption is sought involve recordkeeping.

The Director, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation, has determined that approval of the exemption request involves no significant hazards consideration because removing the requirement to have a licensed senior operator approve the security suspension at a defueled shutdown power plant does not (1) involve a significant increase in the probability or consequences of an accident previously evaluated; or (2) create the possibility of a new or different kind of accident from any accident previously evaluated; or (3) involve a significant reduction in a margin of safety. The exempted security regulation is unrelated to any operational restriction. Accordingly, there is no significant change in the types or significant increase in the amounts of any effluents that may be released offsite; and no significant increase in individual or cumulative public or occupational radiation exposure. The exempted regulation is not associated with construction, so there is no significant construction impact. The exempted regulation does not concern the source term (i.e., potential amount of radiation in an accident), nor mitigation. Thus, there is no significant

increase in the potential for, or consequences of, a radiological accident. The requirement to have a licensed senior operator approve departure from security actions may be viewed as involving either safeguards, materials control, or managerial matters.

Therefore, pursuant to 10 CFR 51.22(b) and 51.22(c)(25), no environmental impact statement or environmental assessment need be prepared in connection with the approval of this exemption request.

IV. Conclusions.

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 DEFENO exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)(h)(2) to allow withdrawals from the CR-3VY Trust for irradiated fuel management and site restoration activities without prior NRC notification.

The exemptions are effective upon issuance.

Dated at Rockville, Maryland, this day of May 2015. Formatted: Indent: Left: 1.5" For the Nuclear Regulatory Commission.

A. Louise Lund, Acting Director, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation.

VermontYankeeLA3PEm Resource From: FRN_ReviewRequest Sent: Wednesday, May 06, 2015 1:57 PM To: Kim, James Cc: Blechman, Paula; Khanna, Meena

Subject:

RE: FRN Review - VY DTF Exemption Attachments: FRN-VY DTF Exemption adm.docx Thanks for submitting your document to the Rules, Announcements, and Directives Branch (RADB) for early review.

Please find attached a mark-up including corrections required by the Plain Writing Act, the Office of the Federal Register (OFR), and the Office of Administration (ADM). These requirements are set forth in the NRC Editorial Style Guide (NUREG-1379, Revision 2), the US NRC Regulations Handbook (NUREG/BR-0053, Revision 2), and the OFRs Document Drafting Handbook.

Please note, your document will not be submitted for publication without the incorporation of the required changes. If you feel that the changes made inadvertently change the technical or legal intent of the document, please contact us to discuss the specific basis for the changes and the paths forward.

When forwarding the document for publication in the Federal Register, please have your staff also note the following publication requirements:

• The package must include all items listed on the General Notices checklist and must include a transmittal letter.

In addition, include this e-mail along with your package as proof of ADM/DAS/RADB concurrence.

• Ensure that the Tracked Changes function for the document have been removed in ADAMS.

• All documents transmitted must be placed in ADAMS before the package is sent to ADM. See the General Notice checklist for instructions on profiling the document in ADAMS.

• The ADAMS Inventory of Publicly Available Documents must be completed and returned with the final publication package.

• Arrange for any associated NUREGs to be posted to the appropriate NUREG-Series Publications Document Collection at http://www.nrc.gov/reading-rm/doc-collections/nuregs/.

If you have any questions, please contact me at 301-415-3463 (e-mail: Carol.Gallagher@nrc.gov) or Leslie Terry at 301-415-1167 (e-mail: Leslie.Terry@nrc.gov).

Thanks, Carol Gallagher From: Kim, James Sent: Friday, May 01, 2015 10:55 AM To: FRN_ReviewRequest Cc: Blechman, Paula; Khanna, Meena

Subject:

FRN Review - VY DTF Exemption Please review the attached draft FRN to ensure it is an acceptable format.

1

Thanks, Jim Kim NRR/DORL 301-415-4125 2

Hearing Identifier: VermontYankee_LA3_Public Email Number: 20 Mail Envelope Properties (0AA17736E4C4154CA37233EEBFC8DEB2021F62A4B3CF)

Subject:

RE: FRN Review - VY DTF Exemption Sent Date: 5/6/2015 1:56:52 PM Received Date: 5/6/2015 1:56:55 PM From: FRN_ReviewRequest Created By: FRN_ReviewRequest@nrc.gov Recipients:

"Blechman, Paula" <Paula.Blechman@nrc.gov>

Tracking Status: None "Khanna, Meena" <Meena.Khanna@nrc.gov>

Tracking Status: None "Kim, James" <James.Kim@nrc.gov>

Tracking Status: None Post Office: HQCLSTR02.nrc.gov Files Size Date & Time MESSAGE 2954 5/6/2015 1:56:55 PM FRN-VY DTF Exemption adm.docx 47253 Options Priority: Standard Return Notification: No Reply Requested: No Sensitivity: Normal Expiration Date:

Recipients Received:

[7590-01-P]

NUCLEAR REGULATORY COMMISSION

[Docket No. 50-271; NRC-20YY-XXXX]

Entergy Nuclear Operations, Inc.

Vermont Yankee Nuclear Power Station AGENCY: Nuclear Regulatory Commission.

ACTION: Exemption; issuance.

SUMMARY

The U.S. Nuclear Regulatory Commission (NRC) is issuing exemptions in response to a January 6, 2015, request from Entergy Nuclear Operations, Inc. (ENO or the licensee)., representing itself, from the requirements set forth in Title 10 of the Code of Federal Regulations (10 CFR) Part 50 Section 50.82(a)(8)(i)(A) and Section 50.75(h)(2). TheOne exemption from 10 CFR 50.82(a)(8)(i)(A) would permit the use of the Ddecommissioning Ttrust Ffunds (Trust) to effectuate the licensees plan to manage irradiated fuel in accordance with the updated Irradiated Fuel Management Plan (Agencywide Documents Access and Management System (ADAMS) Accession No. ML14358A251) and post-shutdown decommissioning Comment [C1]: Cannot use CFR citations or ADAMS accession numbers in the

SUMMARY

section.

activities report (PSDAR) (ADAMS Accession No. ML14357A110). The other exemption from 10 CFR 50.75(h)(2) would allow the licensee to use withdrawals from the Decommissioning Trust Fund Trust in accordance with the updated Irradiated Fuel Management Plan and PSDAR without prior notification to the NRC.

ADDRESSES: Please refer to Docket ID <INSERT: NRC-20YY-XXXX> when contacting the NRC about the availability of information regarding this document. You may obtainaccess publicly-available information related to this document using any of the following methods:

• Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID <INSERT: NRC-20YY-XXXX>. Address questions about NRC dockets to Carol Gallagher; telephone: 301-415-3463; e-mail: Carol.Gallagher@nrc.gov. For technical questions, contact the individual(s) listed in the FOR FURTHER INFORMATION CONTACT section of this document.

• NRCs Agencywide Documents Access and Management System (ADAMS):

You may obtainaccess publicly- available documents online in the ADAMS pPublic dDocument collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ADAMS Public Documents and then select Begin Web-based ADAMS Search. For problems with ADAMS, please contact the NRCs Public Document Room (PDR) reference staff at 1-800-397-4209, 301-415-4737, or by e-mail to pdr.resource@nrc.gov. The ADAMS Aaccession number for each document referenced in this document (if that document is available in ADAMS) is provided the first time that a document is referenced.

• NRCs PDR: You may examine and purchase copies of public documents at the NRCs PDR, Room O1-F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: James Kim, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone:

301-415-4125; e-mail: James.Kim@nrc.gov.

SUPPLEMENTARY INFORMATION:

I. Background.

ENO, the licensee, is the holder of Operating License No. DPR-28. By letter dated Formatted: Indent: First line: 0.5" September 23, 2013 (ADAMS Accession No. ML13273A204), ENO, submitted a certification to the NRC (or Commission) indicating it would permanently cease power operations at Vermont Yankee Nuclear Power Station (VY) and certified that it had permanently defueled the VY reactor vessel. VY has not operated since December 29, 2014. The facility consists of a boiling water reactor located in the town of Vernon, Vermont, in Windham County on the west shore of the Connecticut River immediately upstream of the Vernon Hydroelectric Station.

II. Request/Action.

On January 6, 2015, ENO submitted a request for exemptions from Section 50.82(a)(8)(i)(A) and Section 50.75(h)(1)(iv) of Part 50 of Title 10 of the Code of Federal Comment [C2]: In the

SUMMARY

section the requested exemption is from 50.75(h)(2). I assume the correct section is 50.75(h)(1)(iv).

Regulations (10 CFR) (ADAMS Accession No. ML15013A171). The exemption from 10 CFR 50.82(a)(8)(i)(A) would permit the use of the ENO Decommissioning Trust Fund (Trust) towards financing irradiated fuel management as outlined in the updated Irradiated Fuel Management Plan (ML14358A251). The licensees requested exemption from 10 CFR 50.75(h)(1)(iv) would permit Trust disbursements for irradiated fuel management activities to be made without prior notification of the NRC, similar to withdrawals in accordance with 10 CFR 50.82(a)(8). By a separate letter dated December 19, 2014 (ADAMS Accession No. MLXXXXXXXXX), ENO submitted an update to the VY Irradiated Fuel Management Plan (as required by 10 CFR 50.54(bb) (ADAMS Accession No. ML14358A251). The PSDAR, as required by 10 CFR 50.82(a)(4)(i), was submitted on December 19, 2014 (ADAMS Accession No. ML14357A110).

The requirements of 10 CFR 50.82(a)(8)(i)(A) restrict the use of Trustdecommissioning trust fund withdrawals to expenses for legitimate decommissioning activities consistent with the definition of decommissioning which appears in 10 CFR 50.2. The definition of decommission in 10 CFR 50.2 reads as follows:

to remove a facility or site safely from service and reduce residual radioactivity to a level Formatted: Indent: Left: 0", First line: 0.5",

Right: 0" that permits-(1) Release of the property for unrestricted use and termination of the license; or Formatted: Normal, Indent: First line: 0.5",

No bullets or numbering (2) Release of the property under restricted conditions and termination of the license. Comment [C3]: You cannot quote the CFR in an FRN.

The definition does not include activities associated with irradiated fuel management or site restoration. Therefore, an exemption from 10 CFR 50.82(a)(8)(i)(A) is needed to allow ENO to use funds from the Trust for irradiated fuel management.

The requirements of 10 CFR 50.75(h)(1)(iv) also restrict the use of Trustdecommissioning trust fund disbursements (other than for ordinary and incidental expenses) to decommissioning expenses until final decommissioning is completed. The requirements of 10 CFR 50.75(h)(1)(iv) further provide that, except for decommissioning withdrawals being made under 10 CFR 50.82(a)(8) or for payment of ordinary and incidental expenses, no disbursement may be made from the Trust without written notice to the NRC at least 30 working days in advance. Therefore an exemption from 10 CFR 50.75(h)(1)(iv) is needed to allow ENO to use funds from the tTrust for irradiated fuel management 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 when (1) when 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; and (2) when any of the special circumstances listed in 10 CFR 50.12(a)(2) are present. These special circumstances include, among other things, the following:

(a) Application of the regulation in the particular circumstances would not serve the underlying purpose of the rule or is not necessary to achieve the underlying purpose of the rule; or (b) 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 excess of those incurred by others similarly situated.

A. The Exemptions are Authorized by Law.

These exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)(h)(2) would allow ENO to use a portion of the funds from the Trust for activities other than decommissioning activities without prior notice to the NRC. As stated above, 10 CFR 50.12 allows the NRC to grant exemptions from the requirements of 10 CFR Part 50. The NRC staff has determined that granting of the licensees proposed exemptions will not result in a violation of the Atomic Energy Act of 1954, as amended, or the Commissions regulations. Therefore, the exemptions are authorized by law.

B. The Exemptions Present No Undue Risk to the Public Health and Safety.

The underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)(h)(2) Formatted: Indent: First line: 0.5" are to provide reasonable assurance that adequate funds will be available for radiological

decommissioning of power reactors. Based on the site-specific cost estimate and the cash flow analysis, use of the Trust in the proposed manner will not adversely impact ENOs ability to complete radiological decommissioning within 60 years and terminate the VY license.

Furthermore, exemption from 10 CFR 50.75(h)(1)(iv) to allow the licensee to make withdrawals from the Trust without prior written notification to the NRC should not affect the sufficiency of funds in the Trust to accomplish radiological decontamination of the site.

Based on the above, there are no new accident precursors created by using the Trust 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, there is no undue risk to public health and safety.

C. The Exemptions are Consistent with the Common Defense and Security.

The proposed exemption would allow ENO to use funds from the Trust for irradiated fuel management. Irradiated fuel management under 10 CFR 50.54(bb) is an integral part of the planned ENO decommissioning and final license termination process and will not adversely affect ENOs ability to physically secure the site or protect special nuclear material. This change to enable use of a portion of the funds from the Trust for activities other than decommissioning activities has no relation to security issues. Therefore, the common defense and security is not impacted by this exemption.

D. Special Circumstances.

Special circumstances, in accordance with 10 CFR 50.12(a)(2), are present whenever application of the regulation in the particular circumstances is not necessary to achieve the underlying purpose of the regulation.

The underlying purposes of 10 CFR 50.82(a)(8)(i)(A) is to provide reasonable assurance that adequate funds will be available for radiological decommissioning of power reactors. Strict application of these requirements would prohibit withdrawal of funds from the Trust for activities other than decommissioning activities until final radiological decommissioning at VY has been completed.

The VY total Decommissioning Trust FundsTrust balance as of October 31, 2014, was approximately $655.0 million in 2014 dollars. The ENO analysis of the tTrust projects the total radiological decommissioning cost of VY to be approximately $817.2 million (2014 dollars). As required by 10 CFR 50.54(bb), ENO estimated the costs associated with the long-term irradiated fuel management at $364.4 million in 2014 dollars. The total expenditures for site restoration are estimated at $57.1 million (2014 dollars). The staff performed an independent cash flow analysis of the Trust through 2075, assuming an annual real rate of return of two percent, as allowed by 10 CFR 50.75(e)(1)(ii), and determined the projected earnings of the Trust. The staff confirmed that there is reasonable assurance of adequate funding to complete all NRC required decommissioning activities based on the current funds, planned future contributions, and projected earnings of the Trust.

The staff concludes, at this time, that the ENO site-specific decommissioning cost analysis demonstrates adequate funds are available in the Trust to complete radiological decommissioning, for irradiated fuel management, and site restoration activities. The staffs review and conclusions are based on ENOs specific financial situation as described in the December 19, 2014, letters. Therefore, ENO has demonstrated reasonable assurance that

sufficient funding will be available for radiological decommissioning and irradiated fuel management (and site restoration activities), and that the exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) will still achieve the underlying purposes of the regulation.

In its submittal, ENO also requested exemption from the requirements of 10 CFR 50.75(h)(1)(iv) concerning prior written notification to the NRC of withdrawals from the Trust to fund activities other than decommissioning activities. The underlying purpose of notifying the NRC prior to withdrawal of funds from the Trust is to provide 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 10 CFR 50.82(a)(8) that could result in insufficient funds in the Trust to accomplish radiological decommissioning of the site.

As stated previously, the staff has determined that there are sufficient funds in the Trust to complete legitimate radiological decommissioning activities. Pursuant to the annual reporting requirements in 10 CFR 50.82(a)(8)(v) - (vii), licensees are required to monitor and report the status of the decommissioning trust fundTrust and the funding status for managing irradiated fuel. These reports provide the NRC with awareness of, and the ability to take action on, any actual or potential funding deficiencies. The requested exemption would not allow withdrawal of funds from the VY Trust 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 Trust 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 excess of those incurred by others similarly situated.

The licensee states that the Trust contains funds in excess of the estimated costs of radiological decommissioning and that these excess funds are needed for irradiated fuel management activities. The NRC does not preclude use of funds from the decommissioning tTrust in excess of those needed for radiological decommissioning for other purposes, such as irradiated fuel management. The NRC has stated that funding for irradiated fuel management and other site restoration activities may be commingled in the decommissioning tTrust provided the licensee is able to identify and account for the radiological decommissioning funds separately from the funds set aside for irradiated fuel management (see NRC Regulatory Issue Summary 2001-07, Rev 1, 10 CFR 50.75 Reporting and Recordkeeping for Decommissioning Planning dated January 8, 2009 (ADAMS Accession No. ML083440158), and Regulatory Guide 1.184, Revision 1, Decommissioning of Nuclear Power Reactors (ADAMS Accession No. ML13144A840)). To prevent access to those excess funds in the Trust because irradiated fuel management and site restoration are not associated with radiological decommissioning, would create an unnecessary financial burden without any corresponding safety benefit. The adequacy of the Trust to cover the cost of activities associated with irradiated fuel management, in addition to radiological decommissioning, is supported by the staffs site-specific decommissioning cost analysis. If ENO cannot use its Trust for irradiated fuel management, it would need to obtain additional funding that would not be recoverable from the Trust, or ENO would have to modify its decommissioning approach and methods. The NRC staff concludes that either outcome would impose an unnecessary and undue burden significantly in excess of that contemplated when the regulation was adopted.

Therefore, since the underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)(h)(2) would be achieved by allowing ENO to use a portion of the Trust for irradiated fuel management activities without prior NRC notification, and compliance with the regulations would result in an undue hardship or other costs that are significantly in excess of

those contemplated when the regulation was adopted, the special circumstances required by 10 CFR 50.12(a)(2)(ii) and 10 CFR 50.12(a)(2)(iii) exist.

E. Environmental Considerations.

Under 10 CFR 51.22(c)(25), granting of an exemption from the requirements of any regulation of Chapter I to 10 CFR is a categorical exclusion provided that (i) there is no significant hazards consideration; (ii) there is no significant change in the types or significant increase in the amounts of any effluents that may be released offsite; (iii) there is no significant increase in individual or cumulative public or occupational radiation exposure; (iv) there is no significant construction impact; (v) there is no significant increase in the potential for or consequences from radiological accidents; and (vi)(A) the requirements from which an exemption is sought involve recordkeeping.

The Director, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation, has determined that approval of the exemption request involves no significant hazards consideration because removing the requirement to have a licensed senior operator approve the security suspension at a defueled shutdown power plant does not (1) involve a significant increase in the probability or consequences of an accident previously evaluated; or (2) create the possibility of a new or different kind of accident from any accident previously evaluated; or (3) involve a significant reduction in a margin of safety. The exempted security regulation is unrelated to any operational restriction. Accordingly, there is no significant change in the types or significant increase in the amounts of any effluents that may be released offsite; and no significant increase in individual or cumulative public or occupational radiation exposure. The exempted regulation is not associated with construction, so there is no significant construction impact. The exempted regulation does not concern the source term (i.e., potential amount of radiation in an accident), nor mitigation. Thus, there is no significant

increase in the potential for, or consequences of, a radiological accident. The requirement to have a licensed senior operator approve departure from security actions may be viewed as involving either safeguards, materials control, or managerial matters.

Therefore, pursuant to 10 CFR 51.22(b) and 51.22(c)(25), no environmental impact statement or environmental assessment need be prepared in connection with the approval of this exemption request.

IV. Conclusions.

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 DEFENO exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)(h)(2) to allow withdrawals from the CR-3VY Trust for irradiated fuel management and site restoration activities without prior NRC notification.

The exemptions are effective upon issuance.

Dated at Rockville, Maryland, this day of May 2015. Formatted: Indent: Left: 1.5" For the Nuclear Regulatory Commission.

A. Louise Lund, Acting Director, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation.