Exelon Generation Company, LLC; Oyster Creek Nuclear Generating Station, 28591-28595 [2019-12997]

Agencies

• NUCLEAR REGULATORY COMMISSION

[Federal Register Volume 84, Number 118 (Wednesday, June 19, 2019)]
[Notices]
[Pages 28591-28595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12997]


=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket No. 50-219; NRC-2018-0288]


Exelon Generation Company, LLC; Oyster Creek Nuclear Generating 
Station

AGENCY: Nuclear Regulatory Commission.

ACTION: Exemption; reissuance.

-----------------------------------------------------------------------

SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is reissuing an 
exemption, originally approved on December 19, 2018, that exempted 
Exelon Generation Company, LLC (Exelon or the licensee) for Oyster 
Creek Nuclear Generating Station (Oyster Creek) to reduce the minimum 
insurance coverage limit from $1.06 billion to $50 million. The 
December 19, 2018, exemption originally had an effective date of 12 
months (365 days) from the certification of permanent cessation of 
power operations. The reissued exemption has a new effective date of 
9.38 months (285 days) after from the certification of permanent 
cessation of power operations.

DATES: The exemption was reissued on June 12, 2019.

ADDRESSES: Please refer to Docket ID NRC-2018-0288 when contacting the 
NRC about the availability of information regarding this document. You 
may obtain publicly-available information related to this document 
using any of the following methods:
     Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2018-0288. Address 
questions about NRC docket IDs in Regulations.gov to Jennifer Borges; 
telephone: 301-287-9127; email: [email protected]. For technical 
questions, contact the individual listed in the FOR FURTHER INFORMATION 
CONTACT section of this document.
     NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly-available documents online in the 
ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``Begin Web-based ADAMS 
Search.'' For problems with ADAMS, please contact the NRC's Public 
Document Room (PDR) reference staff at 1-800-397-4209, 301-415-4737, or 
by email to [email protected]. The ADAMS accession number for each 
document referenced (if it is available in ADAMS) is provided the first 
time that it is mentioned in this document.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Amy M. Snyder, Office of Nuclear 
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001; telephone: 301-415-6822; email: 
[email protected].

SUPPLEMENTARY INFORMATION: The text of the exemption is attached.

    Dated at Rockville, Maryland, on June 14, 2019.

    For the Nuclear Regulatory Commission.
Bruce A. Watson,
Chief, Reactor Decommissioning Branch, Division of Decommissioning, 
Uranium Recovery and Waste Programs, Office of Nuclear Material Safety 
and Safeguards.

Attachment--Exemption

NUCLEAR REGULATORY COMMISSION

Docket No. 50-219

Exelon Generation Company, LLC

Oyster Creek Nuclear Generating Station

Exemption

Onsite Property Damage Insurance

I. Background

    Exelon Generation Company, LLC (Exelon, the licensee), is the 
holder of Renewed Facility Operating License No. DPR-16 for Oyster 
Creek Nuclear Generating Station Oyster Creek Nuclear Generating 
Station (Oyster Creek). By letter dated February 14, 2018 (Agencywide 
Documents Access and Management System (ADAMS) Accession No. 
ML18045A084), Exelon submitted to the U.S. Nuclear Regulatory 
Commission (NRC) a certification in accordance with Section 
50.82(a)(1)(i) of Title 10 of the Code of Federal Regulations (10 CFR), 
indicating that it plans to cease permanent operation no later than 
October 31, 2018. By letter dated September 25, 2018 (ADAMS Accession 
No. ML18268A258), Exelon submitted to the NRC a certification in 
accordance with 10 CFR 50.82(a)(1)(ii), stating that Oyster Creek 
permanently ceased power operations on September 17, 2018, and that, as 
of September 25, 2018, all fuel had been permanently removed from the 
Oyster Creek reactor vessel. The facility consists of a permanently 
shutdown and defueled boiling-water reactor located in the town of 
Forked River, Ocean County, New Jersey.

[[Page 28592]]

II. Request/Action

    On December 19, 2018, the NRC exempted Exelon from 10 CFR 
50.54(w)(1) to allow Exelon to reduce the minimum insurance coverage 
limit for Oyster Creek from $1.06 billion to $50 million (ADAMS 
Accession Nos. ML18228A852 [Cover Letter]; ML18228A851 [Exemption]). 
The December 19, 2018, exemption originally had an effective date of 12 
months (365 days) from the certification of permanent cessation of 
power operations under 10 CFR 50.82(a)(1).
    By letter dated April 4, 2019 (ADAMS Accession No. ML19094B776), 
Exelon requested to change the effective date of the December 19, 2018, 
exemption from 12 months (365 days) to 9.38 months (285 days) from the 
certification of permanent cessation of power operations under 10 CFR 
50.82(a)(1). Exelon certified that Oyster Creek permanently ceased 
power operations on September 17, 2018. Therefore, the revised 
effective date of the exemption would be June 29, 2019.
    To provide a complete record of the NRC staff's review, the NRC is 
reissuing the December 19, 2018, exemption from 10 CFR 50.54(w)(1) with 
a revised effective date of 9.38 months (285 days) from the 
certification of permanent cessation of power operations under 10 CFR 
50.82(a)(1). This reissued exemption supersedes the exemption issued on 
December 19, 2018.
    The reissued exemption from the requirements of 10 CFR 50.54(w)(1) 
permits the licensee to reduce the required level of onsite property 
damage insurance from $1.06 billion to $50 million for Oyster Creek 
effective at 9.38 months (285 days) after certification of permanent 
cessation of operations at Oyster Creek, commensurate with the reduced 
risk of an incident at the permanently shutdown facility.
    The regulation at 10 CFR 50.54(w)(1) requires each licensee to have 
and maintain onsite property damage insurance to stabilize and 
decontaminate the reactor and reactor site in the event of an accident. 
The onsite insurance coverage must be either $1.06 billion or whatever 
amount of insurance is generally available from private sources 
(whichever is less).
    The licensee states that the risk of an incident at a permanently 
shutdown and defueled reactor is much less than the risk from an 
operating power reactor. In addition, since reactor operation is no 
longer authorized at Oyster Creek, there are no events that would 
require the stabilization of reactor conditions after an accident. 
Similarly, the risk of an accident that would result in significant 
onsite contamination at Oyster Creek is also much lower than the risk 
of such an event at operating reactors. Therefore, Exelon requested an 
exemption from 10 CFR 50.54(w)(1) to reduce its onsite property damage 
insurance from $1.06 billion to $50 million, commensurate with the 
reduced risk of an incident at the permanently shutdown and defueled 
Oyster Creek site.

III. Discussion

    Under 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) the exemptions are authorized 
by law, will not present an undue risk to public health or safety, and 
are consistent with the common defense and security; and (2) any of the 
special circumstances listed in 10 CFR 50.12(a)(2) are present.
    The financial protection limits of 10 CFR 50.54(w)(1) were 
established after the Three Mile Island accident out of concern that 
licensees may be unable to financially cover onsite cleanup costs in 
the event of a major nuclear accident. The specified $1.06 billion 
coverage amount requirement was developed based on an analysis of an 
accident at a nuclear reactor operating at power, resulting in a large 
fission product release and requiring significant resource expenditures 
to stabilize the reactor and ultimately decontaminate and cleanup the 
site.
    These cost estimates were developed based on the spectrum of 
postulated accidents for an operating nuclear reactor. Those costs were 
derived from the consequences of a release of radioactive material from 
the reactor. Although the risk of an accident at an operating reactor 
is very low, the consequences onsite and offsite can be significant. In 
an operating plant, the high temperature and pressure of the reactor 
coolant system (RCS), as well as the inventory of relatively short-
lived radionuclides, contribute to both the risk and consequences of an 
accident. With the permanent cessation of reactor operations at Oyster 
Creek and the permanent removal of the fuel from the reactor vessel, 
such accidents are no longer possible. As a result, the reactor vessel, 
RCS, and supporting systems no longer operate and have no function 
related to the storage of the irradiated fuel. Therefore, postulated 
accidents involving failure or malfunction of the reactor, RCS, or 
supporting systems are no longer be applicable.
    During reactor decommissioning, the largest radiological risks are 
associated with the storage of spent fuel onsite. By letter dated April 
4, 2019, Exelon discusses both design-basis and beyond design-basis 
events involving irradiated fuel stored in the spent fuel pool (SFP). 
The licensee determined that there are no possible design-basis events 
at Oyster Creek that could result in an offsite radiological release 
exceeding the limits established by the U.S. Environmental Protection 
Agency's (EPA) early-phase Protective Action Guidelines (PAGs) of 1 rem 
(roentgen equivalent man) at the exclusion area boundary, as a way to 
demonstrate that any possible radiological releases would be minimal 
and not require precautionary protective actions (e.g., sheltering in 
place or evacuation). The NRC staff evaluated the radiological 
consequences associated with various decommissioning activities, and 
design-basis accidents at Oyster Creek, in consideration of a 
permanently shutdown and defueled condition. The possible design-basis 
accident scenarios at Oyster Creek have greatly reduced radiological 
consequences. Based on its review, the NRC staff concluded that no 
reasonably conceivable design-basis accident exists that could cause an 
offsite release greater than the EPA PAGs.
    The only incident that might lead to a significant radiological 
release at a decommissioning reactor is a zirconium fire. The zirconium 
fire scenario is a postulated, but highly unlikely, beyond design-basis 
accident scenario that involves loss of water inventory from the SFP, 
resulting in a significant heatup of the spent fuel, and culminating in 
substantial zirconium cladding oxidation and fuel damage. The 
probability of a zirconium fire scenario is related to the decay heat 
of the irradiated fuel stored in the SFP. Therefore, the risks from a 
zirconium fire scenario continue to decrease as a function of the time 
since Oyster Creek has been permanently shut down.
    The Commission has previously authorized a lesser amount of onsite 
financial protection, based on this analysis of the zirconium fire 
risk. In SECY-96-256, ``Changes to Financial Protection Requirements 
for Permanently Shutdown Nuclear Power Reactors, 10 CFR 50.54(w)(1) and 
10 CFR 140.11,'' dated December 17, 1996 (ADAMS Accession No. 
ML15062A483), the NRC staff recommended changes to the power reactor 
financial protection regulations that would allow licensees to lower 
onsite insurance levels to $50 million upon demonstration that the fuel 
stored in the SFP can be air-cooled. In its Staff Requirements 
Memorandum to SECY-96-256, dated January 28, 1997 (ADAMS Accession No.

[[Page 28593]]

ML15062A454), the Commission supported the NRC staff's recommendation 
that, among other things, would allow permanently shutdown power 
reactor licensees to reduce commercial onsite property damage insurance 
coverage to $50 million when the licensee was able to demonstrate the 
technical criterion that the spent fuel could be air-cooled if the SFP 
was drained of water. The NRC staff has used this technical criterion 
to grant similar exemptions to other decommissioning reactors (e.g., 
Maine Yankee Atomic Power Station, published in the Federal Register on 
January 19, 1999 [64 FR 2920]; and Zion Nuclear Power Station, 
published in the Federal Register on December 28, 1999 [64 FR 72700]). 
These prior exemptions were based on these licensees demonstrating that 
the SFP could be air-cooled, consistent with the technical criterion 
discussed above.
    In SECY-00-0145, ``Integrated Rulemaking Plan for Nuclear Power 
Plant Decommissioning,'' dated June 28, 2000, and SECY-01-0100, 
``Policy Issues Related to Safeguards, Insurance, and Emergency 
Preparedness Regulations at Decommissioning Nuclear Power Plants 
Storing Fuel in the Spent Fuel Pool,'' dated June 4, 2001 (ADAMS 
Accession Nos. ML003721626 and ML011450420, respectively), the NRC 
staff discussed additional information concerning SFP zirconium fire 
risks at decommissioning reactors and associated implications for 
onsite property damage insurance. Providing an analysis of when the 
spent fuel stored in the SFP is capable of air-cooling is one measure 
that can be used to demonstrate that the probability of a zirconium 
fire is exceedingly low. However, the NRC staff has more recently used 
an additional analysis that bounds an incomplete drain down of the SFP 
water, or some other catastrophic event (such as a complete drainage of 
the SFP with rearrangement of spent fuel rack geometry and/or the 
addition of rubble to the SFP). The analysis postulates that decay heat 
transfer from the spent fuel via conduction, convection, or radiation 
would be impeded. This analysis is often referred to as an adiabatic 
heatup.
    The licensee's analyses referenced in its exemption request 
demonstrates that under conditions where the SFP water inventory has 
drained completely and only air-cooling of the stored irradiated fuel 
is available, there is reasonable assurance that after 9.38 months (285 
days) from the permanent shutdown of the facility on September 17, 
2018, the Oyster Creek spent fuel will remain at temperatures far below 
those associated with a significant radiological release.
    As discussed in the staff response to a question in SECY-00-0145, 
``the staff believes that full insurance coverage must be maintained 
for 5 years or until a licensee can show by analysis that its SFP is no 
longer vulnerable to such [a zirconium] fire.''
    The licensee's adiabatic heatup analyses demonstrate that there 
would be at least 10 hours after the loss of all means of cooling (both 
air and/or water) before the spent fuel cladding would reach a 
temperature where the potential for a significant offsite radiological 
release could occur. The licensee states that for this loss of all 
cooling scenario, 10 hours is sufficient time for personnel to respond 
with additional resources, equipment, and capability to restore cooling 
to the SFPs, even after a non-credible, catastrophic event.
    In the analysis provided in the Attachment to its submittal dated 
November 6, 2018, as supplemented by letter dated February 13, 2019, 
with Attachment 1, Response to NRC's Request for Additional Information 
and Attachment 2, Zirconium Fire Analysis for Drained Spent Fuel Pool, 
C-1302-226-E310-457, Revision 2, (ADAMS Accession Nos. ML18310A306, and 
ML19044A643, respectively), the licensee compared the conditions for 
the hottest fuel assembly stored in the SFP to a criterion proposed in 
SECY-99-168, ``Improving Decommissioning Regulations for Nuclear Power 
Plants'' (ADAMS Accession No. ML12265A598), applicable to offsite 
emergency response for the unit in the decommissioning process. This 
criterion considers the time for the hottest assembly to heat up from 
30 degrees Celsius ([deg]C) to 900 [deg]C adiabatically. If the heatup 
time is greater than 10 hours, then offsite emergency preplanning 
involving the plant is not necessary. Based on the limiting fuel 
assembly for decay heat and adiabatic heatup analysis presented in the 
licensee's submittals, at 9.38 months (285 days) after permanent 
cessation of power operations (i.e., 9.38 months decay time), the time 
for the hottest fuel assembly to reach 900 [deg]C is 10 hours after the 
assemblies have been uncovered. As stated in NUREG-1738, ``Technical 
Study of Spent Fuel Pool Accident Risk at Decommissioning Nuclear Power 
Plants'' (ADAMS Accession No. ML010430066), 900 [deg]C is an acceptable 
temperature to use for assessing onset of fission product release under 
transient conditions (to establish the critical decay time for 
determining availability of 10 hours for deployment of mitigation 
equipment and, if necessary, for offsite agencies to take appropriate 
action to protect the health and safety of the public, if fuel and 
cladding oxidation occurs in air). The NRC staff reviewed the 
calculation to verify that important physical properties of materials 
were within acceptable ranges and the results were accurate. The NRC 
staff determined that physical properties were appropriate. Therefore, 
the NRC staff found that after 9.38 months (285 days) from the 
permanent shutdown of the facility on September 17, 2018, more than 10 
hours would be available before a significant offsite release could 
begin. The NRC staff concluded that the adiabatic heatup calculation 
provided an acceptable method for determining the minimum time 
available for deployment of mitigation equipment and, if necessary, 
implementing measures under a comprehensive general emergency plan.
    The NRC staff performed an evaluation of the design-basis accidents 
for Oyster Creek being permanently defueled as part of SECY-18-0062, 
``Request By The Exelon Generation Company, LLC For Exemptions From 
Certain Emergency Planning Requirements For The Oyster Creek Nuclear 
Generating Station,'' dated May 31, 2018 (ADAMS Accession No. 
ML18030B340). The staff also evaluated the licensee's updated adiabatic 
heatup calculation in its submittal dated November 6, 2018, as 
supplemented by letter dated February 13, 2019 with Attachment 1, 
Response to NRC's Request for Additional Information and Attachment 2, 
Zirconium Fire Analysis for Drained Spent Fuel Pool, C-1302-226-E310-
457, Revision 2, (ADAMS Accession Nos. ML18310A306, and ML19044A643, 
respectively).
    Based on the NRC staff's evaluation of the licensee's adiabatic 
heatup calculation as well as the evaluation in SECY-18-0062 and SECY-
96-256, the NRC staff determined $50 million to be an adequate level of 
onsite property damage insurance for a decommissioning reactor, once 
the spent fuel in the SFP is no longer susceptible to a zirconium fire. 
The NRC staff has postulated that there is still a potential for other 
radiological incidents at a decommissioning reactor that could result 
in significant onsite contamination besides a zirconium fire. In SECY-
96-256, the NRC staff cited the rupture of a large contaminated liquid 
storage tank (~450,000 gallon), causing soil contamination and 
potential groundwater contamination, as the most costly postulated 
event to decontaminate and remediate (other than a SFP zirconium fire). 
The postulated large liquid radiological

[[Page 28594]]

waste storage tank rupture event was determined to have a bounding 
onsite cleanup cost of approximately $50 million. Therefore, the NRC 
staff determined that the licensee's proposal to reduce onsite 
insurance to a level of $50 million would be consistent with the 
bounding cleanup and decontamination cost, as discussed in SECY-96-256, 
to account for the postulated rupture of a large liquid radiological 
waste tank at the Oyster Creek site, should such an event occur.
    The NRC staff has determined that the licensee's proposed reduction 
in onsite property damage insurance coverage to a level of $50 million 
is consistent with SECY-96-256 and subsequent insurance considerations, 
resulting from additional zirconium fire risks, as discussed in SECY-
00-0145 and SECY-01-0100. In addition, the NRC staff notes that similar 
exemptions have been granted to other permanently shutdown and defueled 
power reactors, upon demonstration that the criterion of the zirconium 
fire risks from the irradiated fuel stored in the SFP is of negligible 
concern. As previously stated, the NRC staff concluded that 9.38 months 
(285 days) after the permanent shutdown of the facility on September 
17, 2018, sufficient irradiated fuel decay time has elapsed at Oyster 
Creek to decrease the probability of an onsite radiological release 
from a postulated zirconium fire accident to negligible levels. In 
addition, the licensee's proposal to reduce onsite insurance to a level 
of $50 million is consistent with the maximum estimated cleanup costs 
for the recovery from the rupture of a large liquid radwaste storage 
tank.
    The NRC staff also notes that in accordance with the Oyster Creek 
Post Shutdown Decommissioning Activities Report (PSDAR) dated May 21, 
2018 (ADAMS Accession No. ML18141A775), all spent fuel will be removed 
from the SFPs and moved into dry storage at an onsite independent spent 
fuel storage installation (ISFSI) by the end of March 2024, and the 
probability of an initiating event that would threaten pool integrity 
occurring before that time is extremely low, which further supports the 
conclusion that the zirconium fire risk is negligible.

A. The Exemption Is Authorized by Law

    The reissued exemption from 10 CFR 50.54(w)(1) allows Exelon to 
reduce the minimum coverage limit for onsite property damage insurance 
no earlier than 9.38 months (285 days) after the permanent cessation of 
power operations. As stated above, 10 CFR 50.12 allows the NRC to grant 
exemptions from the requirements of 10 CFR part 50 when the exemptions 
are authorized by law.
    As explained above, the NRC staff has determined that the 
licensee's proposed reduction in onsite property damage insurance 
coverage to a level of $50 million is consistent with SECY-96-256. 
Moreover, the NRC staff concluded that 9.38 months (285 days) after the 
permanent shutdown of the facility, sufficient irradiated fuel decay 
time will have elapsed at Oyster Creek to decrease the probability of 
an onsite and offsite radiological release from a postulated zirconium 
fire accident to negligible levels. In addition, the licensee's 
proposal to reduce onsite insurance to a level of $50 million is 
consistent with the maximum estimated cleanup costs for the recovery 
from the rupture of a large liquid radiological waste storage tank.
    The NRC staff has determined that reissuing the licensee's proposed 
exemption will not result in a violation of the Atomic Energy Act of 
1954, as amended, or the Commission's regulations. Therefore, based on 
its review of Exelon's exemption request as discussed above, and 
consistent with SECY-96-256, the NRC staff concludes that the exemption 
is authorized by law.

B. The Exemption Presents No Undue Risk to the Public Health and Safety

    The onsite property damage insurance requirements of 10 CFR 
50.54(w)(1) were established to provide financial assurance that 
following a significant nuclear incident, onsite conditions could be 
stabilized and the site decontaminated. The requirements of 10 CFR 
50.54(w)(1) and the existing level of onsite insurance coverage for 
Oyster Creek are predicated on the assumption that the reactor is 
operating. However, Oyster Creek permanently shutdown on September 17, 
2018, and defueled on September 25, 2018. The permanently defueled 
status of the facility results in a significant reduction in the number 
and severity of potential accidents, and correspondingly, a significant 
reduction in the potential for and severity of onsite property damage. 
The proposed reduction in the amount of onsite insurance coverage does 
not impact the probability or consequences of potential accidents. The 
proposed level of insurance coverage is commensurate with the reduced 
consequences of potential nuclear accidents at Oyster Creek. Therefore, 
the NRC staff concludes that granting the requested exemption will not 
present an undue risk to the health and safety of the public.

C. The Exemption Is Consistent With the Common Defense and Security

    The reissued exemption would not eliminate any requirements 
associated with physical protection of the site and would not adversely 
affect Exelon's ability to physically secure the site or protect 
special nuclear material. Physical security measures at Oyster Creek 
are not affected by the requested exemption. Therefore, the reissued 
exemption is consistent with the common defense and security.

D. Special Circumstances

    Special circumstances, in accordance with 10 CFR 50.12(a)(2)(ii), 
are present whenever application of the regulation in the particular 
circumstances is not necessary to achieve the underlying purpose of the 
regulation.
    The underlying purpose of 10 CFR 50.54(w)(1) is to provide 
reasonable assurance that adequate funds will be available to stabilize 
reactor conditions and cover onsite cleanup costs associated with site 
decontamination, following an accident that results in the release of a 
significant amount of radiological material. Oyster Creek permanently 
shut down on September 17, 2018, and permanently defueled on September 
25, 2018, it is no longer possible for the radiological consequences of 
design-basis accidents or other credible events at Oyster Creek to 
exceed the limits of the EPA PAGs at the exclusion area boundary. The 
licensee has evaluated the consequences of highly unlikely, beyond-
design-basis conditions involving a loss of coolant from the SFP. The 
analyses show that after 9.38 months (285 days) from permanent 
cessation of power operations on September 17, 2018, the likelihood of 
such an event leading to a large radiological release is negligible. 
The NRC staff's evaluation of the licensee's analyses confirms this 
conclusion.
    The NRC staff also finds that the licensee's proposed $50 million 
level of onsite insurance is consistent with the bounding cleanup and 
decontamination cost, as discussed in SECY-96-256, to account for the 
hypothetical rupture of a large liquid radiological waste tank at the 
Oyster Creek site, should such an event occur. Therefore, the NRC staff 
concludes that the application of the current requirements in 10 CFR 
50.54(w)(1) to maintain $1.06 billion in onsite insurance coverage is 
not necessary to achieve the underlying purpose of the rule for the 
permanently shutdown and defueled Oyster Creek reactor.

[[Page 28595]]

    Under 10 CFR 50.12(a)(2)(iii), special circumstances 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 NRC staff concludes that if the licensee was required to 
continue to maintain an onsite insurance level of $1.06 billion, the 
associated insurance premiums would be in excess of those necessary and 
commensurate with the radiological contamination risks posed by the 
site. In addition, such insurance levels would be significantly in 
excess of other decommissioning reactor facilities that have been 
granted similar exemptions by the NRC.
    The NRC staff finds that compliance with the existing rule would 
result in an undue hardship or other costs that are significantly in 
excess of those contemplated when the regulation was adopted and are 
significantly in excess of those incurred by others similarly situated.
    Therefore, the special circumstances required by 10 CFR 
50.12(a)(2)(ii) and 10 CFR 50.12(a)(2)(iii) exist.

E. Environmental Considerations

    The NRC approval of the exemption to insurance or indemnity 
requirements belongs to a category of actions that the Commission, by 
rule or regulation, has declared to be a categorical exclusion, after 
first finding that the category of actions does not individually or 
cumulatively have a significant effect on the human environment. 
Specifically, the exemption is categorically excluded from further 
analysis under Sec.  51.22(c)(25).
    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) the requirements from which an exemption is sought 
involve: Surety, insurance, or indemnity requirements.
    As the Director, Division of Decommissioning, Uranium Recovery, and 
Waste Programs, Office of Nuclear Material Safety and Safeguards, I 
have determined that reissuing the exemption involves no significant 
hazards consideration because reducing the licensee's onsite property 
damage insurance for Oyster Creek 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 financial 
protection regulation is unrelated to the operation of Oyster Creek. 
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.
    In addition, 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. Therefore, there 
is no significant increase in the potential for, or consequences of, a 
radiological accident. In addition, there would be no significant 
impacts to biota, water resources, historic properties, cultural 
resources, or socioeconomic conditions in the region. Moreover, the 
requirement for onsite property damage insurance involves surety, 
insurance, and indemnity matters. Accordingly, the exemption request 
meets the eligibility criteria for categorical exclusion set forth in 
10 CFR 51.22(c)(25). 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 reissue of this 
exemption.

IV. Conclusions

    Accordingly, the Commission has determined that, pursuant to 10 CFR 
50.12(a), reissuing the exemption originally granted on December 19, 
2018, is authorized by law, will not present an undue risk to the 
public health and safety, and is consistent with the common defense and 
security. Also, special circumstances are present as set forth in 10 
CFR 50.12.
    Therefore, the Commission hereby reissues Exelon an exemption from 
the requirements of 10 CFR 50.54(w)(1) for Oyster Creek. Exelon 
certified that it permanently ceased power operations at Oyster Creek 
on September 17, 2018. The reissued exemption will permit Oyster Creek 
to lower the minimum required onsite insurance to $50 million no 
earlier than 9.38 months (285 days) after the permanent cessation of 
power operations.
    The exemption is effective on June 29, 2019 (9.38 months (285 days) 
after Oyster Creek permanently ceased power operations on September 17, 
2019).

    Dated at Rockville, Maryland, this 12 day of June 2019.

    For the Nuclear Regulatory Commission.

/RA/
John R. Tappert,
Director, Division of Decommissioning, Uranium Recovery and Waste 
Programs, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 2019-12997 Filed 6-18-19; 8:45 am]
BILLING CODE 7590-01-P