ML20034E617

and Salem Nuclear Generating Station, Unit Nos. 1 and 2 - Issuance of Amendment Nos. 222, 333, and 314 Deletion of Facility Operating License Conditions Related to Decommissioning Trust Provisions and License Transfer

ML20034E617
Person / Time
Site:	Salem, Hope Creek
Issue date:	02/27/2020
From:	James Kim NRC/NRR/DORL/LPL1
To:	Carr E Public Service Enterprise Group
Kim J
References
EPID L-2019-LLA-0161
Download: ML20034E617 (32)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, O.C. 20555-0001 February 27, 2020 Mr. Eric Carr President and Chief Nuclear Officer PSEG Nuclear LLC - N09 P.O. Box236 Hancocks Bridge, NJ 08038

SUBJECT:

HOPE CREEK GENERATING STATION AND SALEM NUCLEAR GENERATING STATION, UNIT NOS. 1 AND 2 - ISSUANCE OF AMENDMENT NOS. 222, 333, AND 314 RE: DELETION OF FACILITY OPERATING LICENSE CONDITIONS RELATED TO DECOMMISSIONING TRUST PROVISIONS AND LICENSE TRANSFER (EPID L-2019-LLA-0161)

Dear Mr. Carr:

The U.S. Nuclear Regulatory Commission (the Commission) has issued the enclosed Amendment Nos. 222, 333, and 314 to Renewed Facility Operating License Nos. NPF-57, DPR-70, and DPR-75 for the Hope Creek Generating Station, and Salem Nuclear Generating Station, Unit Nos. 1 and 2 (Salem), respectively, in response to your application dated July 29, 2019.

The amendments revise the operating licenses to delete certain license conditions that impose specific requirements on the decommissioning trust agreement on the basis that upon approval of the amendments, the provisions of Title 10 of the Code of Federal Regulations Section 50. 75(h) that specify the regulatory requirements for decommissioning trust funds would apply to PSEG Nuclear LLC. The amendments also remove legacy financial requirements associated with the license transfer from PSE&G to PSEG Nuclear LLC relative to maintaining available funding for an extended shutdown. Exelon Generation Company (Exelon) is a co-owner of Salem and, as such, certain license conditions being deleted as part this license amendment request specifically apply to Exelon.

E. Carr A copy of the related Safety Evaluation is also enclosed. Notice of Issuance will be included in the Commission's biweekly Federal Register notice.

Sincerely, James S. Kim, Project Manager Plant Licensing Branch I Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-354, 50-272, and 50-311

Enclosures:

1. Amendment No. 222 to NPF-57

2. Amendment No. 333 to DPR-70

3. Amendment No. 314 to DPR-75

4. Safety Evaluation

• cc: Listserv

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 PSEG NUCLEAR LLC DOCKET NO. 50-354 HOPE CREEK GENERATING STATION AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 222 Renewed License No. NPF-57

1. The U.S. Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment filed by PSEG Nuclear LLC, dated July 29, 2019, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act}, and the Commission's rules and regulations set forth in 10 CFR Chapter I; B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C. There is reasonable assurance: (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations set forth in 10 CFR Chapter I; D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

2. Accordingly, the license is hereby amended by deleting paragraph 2.C.(15) of Facility Operating License No. NPF-57.

3. The license amendment is effective as of its date of issuance and shall be implemented within 60 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION (l~~-

JaJs G. Danna, Chief Plant Licensing Branch I Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Attachment:

Changes to the Renewed Facility Operating License and Technical Specifications Date of Issuance: February 2 7 , 2 O2 O

ATTACHMENT TO LICENSE AMENDMENT NO. 222 HOPE CREEK GENERATING STATION RENEWED FACILITY OPERATING LICENSE NO. NPF-57 DOCKET NO. 50-354 Replace the following pages of Renewed Facility Operating License No. NPF-57 with the attached revised pages. The revised pages are identified by amendment number and contains a marginal line indicating the area of change.

Remove Insert 6 6 7 7.

8 8 9 9

DELETED (13) Safety Parameter Display System (Section 18.2, SSER No. 5)

DELETED (14) Additional Conditions The Additional Conditions contained in Appendix C, as revised through Amendment No. 135, are hereby incorporated into this renewed license.

PSEG Nuclear LLC shall operate the facility in accordance with the Additional Conditions.

(15) DELETED Renewed License No. NPF-57 Amendment No. 222

(16) Mitigation Strategy The licensee shall develop and maintain strategies for addressing large fires and explosions and that include the following key areas:

(a) Fire fighting response strategy with the following elements:

1. Pre-defined coordinated fire response strategy and guidance

2. Assessment of mutual aid fire fighting assets

3. Designated staging areas for equipment and materials

4. Command and control

5. Training of response personnel (b) Operations to mitigate fuel damage considering the following:

1. Protection and use of personnel assets

2. Communications

3. Minimizing fire spread

4. Procedures for implementing integrated fire response strategy

5. Identification of readily-available pre-staged equipment

6. Training on integrated fire response strategy

7. Spent fuel pool mitigation measures (c) Actions to minimize release to include consideration of:

1. Water spray scrubbing

2. Dose to onsite responders Renewed License No. NPF-57 Amendment No. 222

(17) The licensee shall implement and maintain all Actions required by Attachment 2 to NRC Order EA-06-137, issued June 20, 2006, except the last action that requires incorporation of the strategies into the site security plan, contingency plan, emergency plan and/or guard training and qualification plan, as appropriate.

(18) Upon implementation of Amendment No. 173 adopting TSTF-448, Revision 3, the determination of control room envelope (CRE) unfiltered air inleakage as required by Surveillance Requirement 4.7.2.2.a, in accordance with TS 6.16.c.(i), the assessment of CRE habitability as required by Specification 6.16.c.(ii}, and the measurement of CRE pressure as required by Specification 6.16.d, shall be considered met.

Following implementation:

a. The first performance of Surveillance Requirement 4.7.2.2.a, in accordance with Specification 6.16.c.(i}, shall be within the specified frequency of 6 years, plus the 18 month allowance of Surveillance Requirement 4.0.2, as measured from July 29, 2001, the date of the most recent successful tracer gas test, as stated in the December 9, 2003 letter response to Generic Letter 2003-01, or within the next 18 months if the time period since the most recent successful tracer gas test is greater than 6 years.

b. The first performance of the periodic assessment of CRE habitability, Specification 6.16.c(ii}, shall be 3 years, plus the 9 month allowance of Surveillance Requirement 4.0.2, as measured from July 29, 2001, the date of the most recent successful tracer gas test, as stated in the December 9, 2003 letter response to Generic Letter 2003-01, or within the next 9 months if the time period since the most recent successful tracer gas test is greater than 3 years.

c. The first performance of the periodic measurement of CRE pressure, Specification 6.16.d, shall be within 18 months, plus the 138 days allowed by Surveillance Requirement 4.0.2, as measured from April 5, 2006, the date of the most recent successful pressure measurement test, or within 138 days if not performed previously.

Renewed License No. NPF-57 Amendment No. 222

(19) Leak rate tests required by Surveillance Requirement 4.6.1.2.a and 4.6.1.2.h to be performed in accordance with the Primary Containment Leakage Rate Testing Program are not required to be performed until their next scheduled performance, which is due at the end of the first test interval that begins on the date the test was last performed prior to implementation of Amendment No. 174.

(20) Top Guide Beams Until there is more detailed guidance regarding the inspections of the top guide beams or the issue is resolved by the BWRVIP generically, the following license condition applies to Hope Creek to preclude the loss of the component's intended function:

Enhanced visual testing (EVT-1) of the top guide grid beams will be performed in accordance with GE SIL 554 following the sample selection and inspection frequency of BWRVIP-47 for CRD guide tubes. That is, inspections will be performed on 5 percent of the population within six years, and 10 percent of the total population of cells within twelve years.

The sample locations selected for examination will be in areas that are exposed to the highest fluence. This inspection plan will be implemented beginning with the first RFO following EPU operation.

Renewed License No. NPF-57 Amendment No. 222

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 PSEG NUCLEAR LLC EXELON GENERATION COMPANY. LLC DOCKET NO. 50-272 SALEM NUCLEAR GENERATING STATION, UNIT NO. 1 AMENDMENT TO RENEWED FACILITY OPERATING LICENSE Amendment No. 333 Renewed License No. DPR-70

1. The U.S. Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment filed by PSEG Nuclear LLC, acting on behalf of itself and Exelon Generation Company, LLC (the licensees), dated July 29, 2019, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 10 CFR Chapter I; B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C. There is reasonable assurance: (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations set forth in 10 CFR Chapter I; D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

Enclosure 2

2. Accordingly, the license is hereby amended by deleting paragraphs 2.C.(11 ), 2.C.(13),

2.C.(14), and 2.C.(15) of Renewed Facility Operating License No. DPR-70.

3. This license amendment is effective as of its date of issuance and shall be implemented within 60 days of the date of issuance.

~\

FOR THE NUCLEAR REGULATORY COMMISSION 1

Ja

~/l)Ot,~-

G. Danna, Chief Plant Licensing Branch I Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Attachment:

Changes to Renewed Facility Operating License and Technical Specifications Date of Issuance: February 27, 2020

ATTACHMENT TO LICENSE AMENDMENT NO. 333 SALEM NUCLEAR GENERATING STATION, UNIT NO. 1 RENEWED FACILITY OPERATING LICENSE NO. DPR-70 DOCKET NO. 50-272 Replace the following pages of Renewed Facility Operating License No. DPR-70 with the attached revised pages as indicated. The revised pages are identified by amendment number and contains a marginal line indicating the area of change.

Remove Insert 5 5 6 6 7 7

(8) Iodine Monitoring The licensee shall implement a program which will ensure the capability to accurately determine the airborne iodine concentration in vital areas under accident conditions. This program shall include the following:

1. Training of personnel;

2. Procedures for monitoring, and

3. Provisions for maintenance of sampling and analysis equipment.

(9) Backup Method for Determining Subcooling Margin The licensee shall implement a program which will ensure the capability to accurately monitor the Reactor Coolant System subcooling margin. This program shall include the following:

1. Training of personnel, and

2. Procedures for monitoring.

(10) Additional Conditions The Additional Conditions contained in Appendix C, as revised through Amendment No. 246, are hereby incorporated into this renewed license. PSEG Nuclear LLC shall operate the facility in accordance with the Additional Conditions.

(11) DELETED

( 12) Exelon Generation Company shall provide to the Director of the Office of Nuclear Reactor Regulation a copy of any application, at the time it is filed, to transfer (excluding grants of security interests or liens) from Exelon Generation Company to its direct or indirect parent, or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding ten percent (10%) of Exelon Generation Company's consolidated net utility plant, as recorded on Exelon Generation Company's books of account.

(13) DELETED (14) DELETED (15) DELETED Renewed License No. DPR-70 Amendment No. 333

PAGE 6 INTENTIONALLY BLANK Renewed License No. DPR-70 Amendment No. 333

(16) Mitigation Strategy The licensee shall develop and maintain strategies for addressing large fires and explosions and that include the following key areas:

(a) Fire fighting response strategy with the following elements:

1. Pre-defined coordinated fire response strategy and guidance

2. Assessment of mutual aid fire fighting assets

3. Designated staging areas for equipment and materials

4. Command and control

5. Training of response personnel (b) Operations to mitigate fuel damage considering the following:

1. Protection and use of personnel assets

2. Communications

3. Minimizing fire spread

4. Procedures for implementing integrated fire response strategy

5. Identification of readily-available pre-staged equipment

6. Training on integrated fire response strategy

7. Spent fuel pool mitigation measures Renewed License No. DPR-70 Amendment No. 333

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, DC. 20555-0001 PSEG NUCLEAR LLC EXELON GENERATION COMPANY, LLC DOCKET NO. 50-311 SALEM NUCLEAR GENERATING STATION, UNIT NO. 2 AMENDMENT TO RENEWED FACILITY OPERATING LICENSE Amendment No. 314 Renewed License No. DPR-75

1. The U.S. Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment filed by PSEG Nuclear LLC, acting on behalf of itself and Exelon Generation Company, LLC (the licensees). dated July 29, 2019, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 10 CFR Chapter I; B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C. There is reasonable assurance: (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations set forth in 10 CFR Chapter I; D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

2. Accordingly, the license is hereby amended by deleting paragraph 2.C.(27), 2.C.(29),

2.C.(30), and 2.C.(31) of Renewed Facility Operating License No. DPR-75.

Enclosure 3

3. This license amendment is effective as of its date of issuance and shall be implemented within 60 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION q~

James G. Danna, Chief Plant Licensing Branch I Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

Attachment:

Changes to Renewed Facility Operating License and Technical Specifications Date of Issuance: February 2 7, 2 O2 O Enclosure 3

ATTACHMENT TO LICENSE AMENDMENT NO. 314 SALEM NUCLEAR GENERATING STATION, UNIT NO. 2 RENEWED FACILITY OPERATING LICENSE NO: DPR-75 DOCKET NO. 50-311 Replace the following pages of Renewed Facility Operating License No. DPR-75 with the attached revised pages as indicated. The revised pages are identified by amendment number and contains a marginal line indicating the area of change.

Remove Insert 7 7 8 8 9 9

(26) Additional Conditions The Additional Conditions contained in Appendix C, as revised through Amendment No. 227 are hereby incorporated into this renewed license. PSEG Nuclear LLC shall operate the facility in accordance with the Additional Conditions.

(27) DELETED (28) Exelon Generation Company shall provide to the Director of the Office of Nuclear Reactor Regulation a copy of any application, at the time it is filed, to transfer (excluding grants of security interests or liens) from Exelon Generation Company to its direct or indirect parent, or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding ten percent (10%) of Exelon Generation Company's consolidated net utility plant, as recorded on Exelon Generation Company's books of account.

(29) DELETED (30) DELETED (31) DELETED Renewed License No. DPR-75 Amendment No. 314

PAGE 8 INTENTIONALLY BLANK Renewed License No. DPR-75 Amendment No. 314

(32) Mitigation Strategy The licensee shall develop and maintain strategies for addressing large fires and explosions and that include the following key areas:

a. Fire fighting response strategy with the following elements:

1. Pre-defined coordinated fire response strategy and guidance

2. Assessment of mutual aid fire fighting assets

3. Designated staging areas for equipment and materials

4. Command and control

5. Training of response personnel

b. Operations to mitigate fuel damage considering the following:

1. Protection and use of personnel assets

2. Communications

3. Minimizing fire spread

4. Procedures for implementing integrated fire response strategy

5. Identification of readily-available pre-staged equipment

6. Training on integrated fire response strategy

7. Spent fuel pool mitigation measures

b. Actions to minimize release to include consideration of:

1. Water spray scrubbing

2. Dose to onsite responders (33) Upon implementation of Amendment No. 269 adopting TSTF-448, Revision 3, the determination of control room envelope (CRE) unfiltered air inleakage as required by SR 4.7.6.2, in accordance with TS 6.17.c.(i}, the assessment of CRE habitability as required by Specification 6.17.c. (ii}, and the measurement of CRE pressure as required by Specification 6.17.d, shall be considered met. Following implementation: *

a. The first performance of SR 4.7.6.2, in accordance with Specification 6.17.c.(i), shall be within the specified frequency of 6 years, plus the 18 month allowance of SR 4.0.2, as measured from June 4,2003, the date of the most recent successful tracer gas test, as stated in the December 9, 2003 letter response to Generic Letter 2003-01, or within the next 18 months if the time period since the most recent successful tracer gas test is greater than 6 years.

Renewed License No. DPR-75 Amendment No. 314

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555*0001 SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO AMENDMENT NOS. 222,333. AND 314 TO RENEWED FACILITY OPERATING LICENSE NOS. NPF-57. DPR-70. AND DPR-75 PSEG NUCLEAR LLC HOPE CREEK GENERATING STATION AND PSEG NUCLEAR LLC EXELON GENERATION COMPANY. LLC SALEM NUCLEAR GENERATING STATION. UNIT NOS. 1 AND 2 DOCKET NOS. 50-354, 50-272. AND 50-311

1.0 INTRODUCTION

By application dated July 29, 2019 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML19210C880), PSEG Nuclear LLC (PSEG, the licensee) requested changes to Renewed Facility Operating License (FOL)Nos. NPF-57, DPR-70, and DPR-75 for the Hope Creek Generating Station (Hope Creek), and Salem Nuclear Generating Station (Salem), Unit Nos. 1 and 2, respectively. The licensee requested to delete certain license conditions that impose specific requirements on the decommissioning trust agreement on the basis that upon approval of the amendments, the provisions of Title 10 of the Code of Federal Regulations (10 CFR) Section 50.75(h) that specify the regulatory requirements for decommissioning trust funds would apply to PSEG. The licensee also requested to remove legacy financial requirements associated with the license transfer from PSE&G to PSEG relative to maintaining available funding for an extended shutdown. In addition, Exelon Generation Company (Exelon) is a co-owner of Salem and, as such, certain license conditions being deleted as part this license amendment request specifically apply to Exelon.

2.0 REGULATORY EVALUATION

On December 24, 2002, the U.S. Nuclear Regulatory Commission (NRC or the Commission) issued a final rule promulgating new regulatory provisions at 10 CFR 50.75(h)(1)-(4). The provisions in 10 CFR 50.75(h) include substantially similar decommissioning trust requirements as those found in the Salem and Hope Creek license conditions. The NRC established these requirements stating that, "The NRC has always believed that it is preferable and more efficient to adopt standard rules, as opposed to applying specific license conditions on a case by case Enclosure 4

basis" (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78332, 78334; December 24, 2002). In its 2002 rulemaking, the NRC addressed several comments regarding potential conflicts or inconsistencies between the provisions of 10 CFR 50.75(h) and a licensee's existing decommissioning trust-related license conditions. The NRC explained that "licensees will have the option of maintaining their existing license conditions or submitting to the new requirements" and "will be able to decide for themselves whether they prefer to keep or eliminate their specific license conditions" (67 FR 78332, 78335, and 78339; December 24, 2002). To support the option to amend and eliminate these license conditions, the Commission made a generic determination in 10 CFR 50.75(h)(4) that a license amendment that does no more than delete specific license conditions relating to the terms and conditions of decommissioning trust agreements involves "no significant hazards consideration."

After the promulgation of 10 CFR 50.75(h)(1)-(4), the NRC received a comment that the rule language did not sufficiently reflect the NRC's intent that individual licensees should have the option of retaining their existing license conditions. In November 2003, the NRC revised its regulations at 10 CFR 50.75(h)(5), which provided, explicitly, that licensees could either maintain their existing license conditions or eliminate them in favor of complying with the new regulatory requirements (November 20, 2003; 68 FR 65386 and 65387). Specifically, Section 50. 75(h)(5) of 10 CFR states:

The provisions of paragraphs (h)(1) through (h)(3) of this section do not apply to any licensee that as of December 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 a licensee 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 paragraph (h) of this section.

Consistent with 10 CFR 50.75(h)(5), PSEG has elected to submit to the requirements of 10 CFR 50.75(h) by requesting deletion of those license conditions that are currently incorporated in the FOLs but addressed in 10 CFR 50.75(h). Section 50.75(h) of 10 CFR applies to the Salem, Unit Nos. 1 and 2, and Hope Creek trust funds, as PSEG has license conditions relating to decommissioning trust agreements that were previously established.

3.0 TECHNICAL EVALUATION

The NRC staff reviewed PSEG's application dated July 29, 2019, and compared the proposed license deletions to the current regulations at 10 CFR 50.75(h). The NRC staff also used applicable parts of the Office of Nuclear Reactor Regulation Office Instruction LIC-107, Revision 1, "Procedures for Handling License Transfers" (ADAMS Accession No. ML17031A006), and NUREG-1577, Revision 1, "Standard Review Plan on Power Reactor Licensee Financial Qualifications and Decommissioning Funding Assurance" (ADAMS Accession No. ML013330264) for this review. The deletions of license conditions and how they are being addressed are described below.

3.1 Proposed Changes to the FOLs The requested amendments would delete:

• Salem, Unit No. 1, License Conditions 2.C.(11 ).a, 2.C.(11 ).b, 2.C.(13), 2.C.(14), and 2.C.(15);

• Salem, Unit No. 2, License Conditions 2.C.(27).a, 2.C.(27).b, , 2.C.(29), 2.C.(30) and 2.C.(31 ); and

• Hope Creek License Conditions 2.C.(15).a and 2.C.(15).b from their respective FOLs, since they are addressed in the regulations. These license conditions were established during the time of license transfer from PSE&G to PSEG during deregulation of the electric power industry in the late 1990s. Rulemaking to codify the decommissioning funding requirements covered by the subject license conditions was in its early stages during this timeframe. Exelon is a co-owner of Salem and, as such, certain license conditions being deleted as part this license amendment request specifically apply to Exelon.

PSEG states that it has obtained formal concurrence from Exelon for deletion of these license conditions.

The requested amendments would also delete:

• Salem, Unit No. 1 License Condition 2.C.(11 ).c;

• Salem, Unit No. 2 License Condition 2.C.(27).c; and

• Hope Creek License Condition 2.C.(15).c from their respective FOLs because they are no longer required to ensure PSEG financial qualifications to cover estimated operating costs for the period of the licenses.

3.2 NRC Staff Technical Evaluation License Condition: Salem. Unit No. 1 - 2.C.(11 ).a: Salem. Unit No. 2 - 2.C.(27).a: and Hope Creek - 2.C.(15).a

a. PSEG Nuclear LLC shall take all necessary steps to ensure that the decommissioning trust is maintained in accordance with the application, the requirements of the Order Approving Transfer of License and Conforming Amendment, dated February 16, 2000, and related Safety Evaluation dated February 16, 2000.

The license condition is no longer needed based on the provisions of 10 CFR 50.75(h) and PSEG's decision to comply with that section's decommissioning trust agreement requirements.

In addition, as noted in the NRC's December 24, 2002 rulemaking, "The NRC has always believed that it is preferable and more efficient to adopt standard rules, as opposed to applying specific license conditions on a case-by-case basis" (67 FR 78334 ). This license condition is effectively addressed by the standard requirements codified in the regulations. Therefore, the

NRC staff finds the licensee's request to delete License Conditions 2.C.(11 ).a, 2.C.(27).a, and 2.C.(15).a acceptable.

License Condition: Salem, Unit No. 1 - 2.C.(11 ).b.1: Salem, Unit No. 2 - 2.C.(27).b.1: and Hope Creek- 2.C.(15).b.1

b. The decommissioning trust agreement shall provide that:

1. The use of assets in both the qualified and non-qualified funds shall be limited to expenses related to decommissioning of the unit as defined by the NRC in its regulations and issuances, and as provided in the unit's renewed license and any amendments thereto. However, upon completion of decommissioning, as defined above, the assets may be used for any purpose authorized by law.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1)(iv).

Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50.75(h)(5).

Therefore, the staff finds the licensee's request to delete License Conditions 2.C.(11 ).b.1, 2.C.(27).b.1, and 2.C.(15).b.1 acceptable.

License Condition: Salem, Unit No. 1 - 2.C.(11 ).b.2: Salem, Unit No. 2 - 2.C.(27).b.2: and Hope Creek - 2.C.(15).b.2

2. Investments in the securities or other obligations of PSE&G or affiliates thereof, or their successors or assigns, shall be prohibited. In addition, except for investments tied to market indexes or other non-nuclear sector mutual funds, investments in any entity owning one or more nuclear power plants shall be prohibited.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1)(i)(A).

The Final Rule contains additional NRC response and clarification for this regulation under "Comments on the Proposed Rule - 4.B. Restrictions on Funds, Investment in Nuclear Power Reactor Licensees." (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78336-78337; December 24, 2002). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h),

consistent with 10 CFR 50. 75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 2.C.(11 ).b.2, 2.C.(27).b.2, and 2.C.(15).b.2 acceptable.

License Condition: Salem, Unit No. 1 - 2.C.(11 ).b.3: Salem, Unit No. 2 - 2.C.(27).b.3: and Hope Creek - 2.C.(15).b.3

3. No disbursements or payments from the trust shall be made by the trustee until the trustee has first given the NRC 30 days notice of the payment. In addition, no disbursements or payments from the trust shall be made if the trustee receives prior written notice of objection from the Director, Office of Nuclear Reactor Regulation.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1)(iv).

The Final Rule contains additional NRC response and clarification for this regulation under "Comments on the Proposed Rule - 3. Notifications and Disbursements." (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78335-78336; December 24, 2002). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50.75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 2.C.(11 ).b.3, 2.C.(27).b.3, and 2.C.(15).b.3 acceptable.

License Condition: Salem. Unit No. 1 - 2.C.(11 ).b.4; Salem. Unit No. 2 - 2.C.(27).b.4; and Hope Creek - 2.C.(15).b.4

4. The trust agreement shall not be modified in any material respect without prior written notification to the Director, Office of Nuclear Reactor Regulation.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1)(iii).

The Final Rule contains additional NRC response and clarification for this regulation under "Comments on the Proposed Rule - 4.E. Modifications to Trusts." (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78338-78339; December 24, 2002). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50.75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 2.C.(11 ).b.4, 2.C.(27).b.4, and 2.C.(15).b.4 acceptable.

License Condition: Salem. Unit No. 1 - 2.C.{11 ).b.5; Salem, Unit No. 2 - 2.C.(27).b.5; and Hope Creek - 2.C.(15).b.5

5. The trustee, investment advisor, or anyone else directing the investments made in the trust shall adhere to a "prudent investor" standard, as specified in 18 CFR 35.32(3) of the Federal Energy Regulatory Commission's regulations.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1)(i)(B).

Per 50.75(h)(1 )(i)(B), the trustee, manager, investment advisor, or other person directing investment of the funds is obligated at all times to adhere to a standard of care set forth in the trust, which either shall be the standard of care, whether in investing or otherwise, required by State or Federal law or one or more State or Federal regulatory agencies with jurisdiction over the trust funds, or, in the absence of any such standard of care, whether in investing or otherwise, that a prudent investor would use in the same circumstances. The term "prudent investor" shall have the same meaning as set forth in the Federal Energy Regulatory Commission's "Regulations Governing Nuclear Plant Decommissioning Trust Funds" at 18 CFR 35.32(a)(3), or any successor regulation. The Final Rule contains additional NRC response and clarification for this regulation under "Comments on the Proposed Rule - 4.A.

Investment Grade." (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78336; December 24, 2002). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with

10 CFR 50. 75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 2.C.(11 ).b.5, 2.C.(27).b.5, and 2.C.(15).b.5 acceptable.

License Condition: Salem, Unit No. 1 - 2.C.(11 ).c: Salem. Unit No. 2 - 2.C.(27).c: and Hope Creek - 2.C.(15).c

c. PSEG Nuclear LLC shall not take any action that would cause PSEG Power LLC or its parent companies to void, cancel, or diminish the commitment to fund an extended plant shutdown as represented in the application for approval of the transfer of this license from PSE&G to PSEG Nuclear LLC.

This license condition was established based on the uncertainty surrounding the projected finances of PSEG Power, the parent of PSEG, as it entered into the merchant generation business model as a part of deregulation of New Jersey's electric power market in the late 1990s. As such, the license conditions are a legacy issue from the time of the license transfers.

The license conditions are no longer necessary because PSEG has an established and proven record of more than 5 years of managing and owning nuclear power plants. PSEG Power also has an established record of more than 5 years of raising and managing capital required to fund nuclear power plants' capital additions and operating expenses. In addition, in accordance with 10 CFR 50.71(b), the financial reporting relative to PSEG occurs through PSEG Power and the statements of cash flow for PSEG Power are supplied to the Securities and Exchange Commission. Therefore, the NRC staff finds the licensee's request to delete License Conditions 2.C.(11 ).c, 2.C.(27).c, and 2.C.(15).c acceptable.

License Condition: Salem, Unit No. 1 - 2.C.(13) and Salem. Unit No. 2 -2.C.(29)

(13) Exelon Generation Company shall have decommissioning trust funds for Salem, Unit 1, in the following minimum amount on the closing date of the license transfer:

Salem, Unit 1 $53,780,652 (29) Exelon Generation Company shall have decommissioning trust funds for Salem, Unit 2, in the following minimum amount on the closing date of the license transfer to it:

Salem, Unit 2 $45,059,302 This license condition is no longer needed since the minimum decommissioning trust fund amount specified in this license condition was a one-time requirement that was satisfied upon license transfer from PSE&G to PSEG. The decommissioning trust fund continues to be maintained by both PSEG Power and Exelon Generation Company, LLC (Exelon) per the decommissioning funding requirements in 10 CFR 50.75(a)-(f), including the table of minimum amounts in 10 CFR 50.75(c), as reported by PSEG and Exelon (ADAMS Accession Nos.

ML19084A192 and ML19091A140). Therefore, the NRC staff finds the licensee's requestto delete License Conditions 2.C.(13) and 2.C.(29) acceptable.

License Condition: Salem, Unit No. 1 - 2.C.(14).(a) and Salem Unit No. 2 - 2.C.(30).a (a) The decommissioning trust agreement must be in a form acceptable to the NRC.

While the above wording is not explicitly stated in the revised regulations of 10 CFR 50. 75, this license condition is the basic focus of the subject Final Rule (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78332; December 24, 2002). The NRC staff finds that this license condition is related to decommissioning trust agreements and is implicit in the regulations at 10 CFR 50.75(e) and (h); thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50.75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 2.C.(14).(a) and 2.C.(30).a acceptable.

License Condition: Salem, Unit No. 1 - 2.C.(14).(b) and Salem, Unit No. 2 - 2.C.(30).b (b) With respect to the decommissioning trust fund, investments in the securities or other obligations of Exelon Corporation or affiliates thereof, or their successors or assigns are prohibited. Except for investments tied to market indexes or other non-nuclear sector mutual funds, investments in any entity owning one or more nuclear power plants are prohibited.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1)(i)(A).

The Final Rule contains additional NRC response and clarification for this regulation under "Comments on the Proposed Rule - 4.8. Restrictions on Funds, Investment in Nuclear Power Reactor Licensees." (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78336-78337; December 24, 2002). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h),

consistent with 10 CFR 50. 75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 2.C.(14).(b) and 2.C.(30).b acceptable.

License Condition: Salem, Unit No. 1 - 2.C.(14).(c) and Salem, Unit No. 2 - 2.C.(30).c (c) The decommissioning trust agreement for Salem, Unit 1, must provide that no disbursements or payments from the trust shall be made by the trustee unless the trustee has first given the Director of the Office of Nuclear Reactor Regulation 30 days prior written notice of payment. The decommissioning trust agreement shall further contain a provision that no disbursements or payments from the trust shall be made if the trustee receives prior written notice of objection from the NRC.

c. The decommissioning trust agreement for Salem, Unit 2, must provide that no disbursements or payments from the trust shall be made by the trustee unless the trustee has first given the Director of the Office of Nuclear Reactor Regulation 30 days prior written notice of payment. The decommissioning trust agreement shall further contain a provision that no disbursements or payments from the trust shall be made if the trustee receives prior written notice of objection from the NRC.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1)(iv).

The Final Rule contains additional NRC response and clarification for this regulation under "Comments on the Proposed Rule - 3. Notifications and Disbursements." (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78335-78336; December 24, 2002). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust

agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50.75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 2.C.(14).(c) and 2.C.(30).c acceptable.

License Condition: Salem, Unit No. 1 - 2.C.(14).(d) and Salem, Unit No. 2 - 2.C.(30).d (d) The decommissioning trust agreement must provide that the agreement cannot be amended in any material respect without 30 days prior written notification to the Director of the Office of Nuclear Reactor Regulation.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1)(iii).

The Final Rule contains additional NRC response and clarification for this regulation under "Comments on the Proposed Rule - 4.E. Modifications to Trusts." (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78338-78339; December 24, 2002)). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50.75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 2.C.(14).(d) and 2.C.(30).d acceptable.

License Condition: Salem, Unit No. 1 - 2.C.(14).(e) and Salem. Unit No. 2 - 2.C.(30).e (e) The appropriate section of the decommissioning trust agreement shall state that the trustee, investment advisor, or anyone else directing the investments made in the trust shall adhere to a "prudent investor standard, as specified in 18 CFR 35.32{a)(3) of the Federal Energy Regulatory Commission's regulations.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1 )(i)(B).

Per 50.75(h)(1)(i)(B), the trustee, manager, investment advisor, or other person directing investment of the funds is obligated at all times to adhere to a standard of care set forth in the trust, which either shall be the standard of care, whether in investing or otherwise, required by State or Federal law or one or more State or Federal regulatory agencies with jurisdiction over the trust funds, or, in the absence of any such standard of care, whether in investing or otherwise, that a prudent investor would use in the same circumstances. The term "prudent investor" shall have the same meaning as set forth in the Federal Energy Regulatory Commission's "Regulations Governing Nuclear Plant Decommissioning Trust Funds" at 18 CFR 35.32(a)(3), or any successor regulation. The Final Rule contains additional NRC response and clarification for this regulation under "Comments on the Proposed Rule - 4.A.

Investment Grade." (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78336; December 24, 2002). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50. 75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 2.C.(14).(e) and 2.C.{30).e acceptable.

License Condition: Salem, Unit No. 1 - 2.C.(15) and Salem. Unit No. 2 - 2.C.(31)

(15) Exelon Generation Company shall take all necessary steps to ensure that the decommissioning trust is maintained in accordance with the

application for approval of the transfer of the Salem, Unit 1, license to it and the requirements of the Order approving the transfer, and consistent with the safety evaluation supporting the Order.

(31) Exelon Generation Company shall take all necessary steps to ensure that the decommissioning trust is maintained in accordance with the application for approval of the transfer of its ownership interest in Salem, Unit 2, license and the requirements of the Order approving the transfer, and consistent with the safety evaluation supporting the Order.

The license condition is no longer needed based on the provisions of 10 CFR 50.75(h) and PSEG's decision to comply with that section's decommissioning trust agreement requirements.

In addition, as noted in the NRC's December 24, 2002, rulemaking, "The NRC has always believed that it is preferable and more efficient to adopt standard rules, as opposed to applying specific license conditions on a case-by-case basis" (67 FR 78334). This license condition is effectively addressed by the standard requirements codified in the regulations. Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50.75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 2.C.(15) and 2.C.(31) acceptable.

3.3 NRC Staff Technical Conclusion The NRC staff reviewed PSEG's proposed option to delete the license conditions for Hope Creek and Salem, Unit Nos. 1 and 2 listed above relating to the term~ and conditions of decommissioning trust agreements and instead conform to the regulations adopted in 2002 (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78332; December 24, 2002).

PSEG has elected to delete the license conditions, and therefore, it will be governed by the applicable provisions of 10 CFR 50.75(h). By allowing the deletion of these license conditions, PSEG will still be in compliance with the decommissioning trust fund requirements in 10 CFR 50.75(h). Based on the above, the NRC staff concludes that the license amendments request is in accordance with the provisions of 10 CFR 50.75(h), and therefore, the proposed changes are acceptable.

4.0 STATE CONSULTATION

In accordance with the Commission's regulations, the New Jersey State official was notified of the proposed issuance of the amendments on January 31, 2020. The State official had no comments.

5.0 ENVIRONMENTAL CONSIDERATION

The amendments change a requirement with respect to installation or use of a facility component located within the restricted area as defined in 10 CFR Part 20. The NRC staff has determined that the amendments involve no significant increase in the amounts, and no significant change in the types, of any effluents that may be released offsite, and that there is no significant increase in individual or cumulative occupational radiation exposure. The Commission has previously issued a proposed finding that the amendments involve no significant hazards consideration, and there has been no public comment on such finding published in the Federal Register on September 10, 2019; 84 FR 47551). In addition, the regulation at 10 CFR 50.75(h)(4) states that in the absence of a determination by the

Commission otherwise, an amendment "that does no more than delete specific license conditions relating to the terms and conditions of decommissioning trust fund agreement involves no significant hazards consideration." The Commission made no determination that these amendments involved significant hazards. Accordingly, the amendments meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(9). Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the issuance of the amendments.

6.0 CONCLUSION

The Commission has concluded, based on the considerations discussed above, that: (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) there is reasonable assurance that such activities will be conducted in compliance with the Commission's regulations, and (3) the issuance of the amendments will not be inimical to the common defense and security or to the health and safety of the public.

Principal Contributors: K. Lois J. Kim Pate: February 2 7, 2 0 2 0

ML20034E617 *b memorandum **b e-mail OFFICE NRR/DORL/LPL 1/PM NRR/DORL/LPL1/LA NMSS/REFS/FAB/BC* OGC - NLO**

NAME JKim LRonewicz FMiller AGhoshNaber DATE 02/10/2020 02/10/2020 01/08/2020 02/20/2020 OFFICE NRR/DORL/LPL 1/BC NRR/DORULPL 1/P NAME JDanna JKim DATE 02/26/2020 02/27/2020