Entergy Nuclear Operations, Inc.; Entergy Nuclear Palisades, LLC; Big Rock Point Independent Spent Fuel Storage Installation, 37353-37356 [2019-16316]
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Federal Register / Vol. 84, No. 147 / Wednesday, July 31, 2019 / Notices
copies of the information collection
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Clearance Officer, NASA Headquarters,
300 E Street SW, JF0000, Washington,
DC 20546–0001 or Gatrie.Johnson@
nasa.gov.
information collection. They will also
become a matter of public record.
Gatrie Johnson,
NASA PRA Clearance Officer.
[FR Doc. 2019–16249 Filed 7–30–19; 8:45 am]
BILLING CODE 7510–13–P
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[Docket No. 50–155 and 72–043; NRC–2019–
0127]
Entergy Nuclear Operations, Inc.;
Entergy Nuclear Palisades, LLC; Big
Rock Point Independent Spent Fuel
Storage Installation
Nuclear Regulatory
Commission.
ACTION: Exemption; issuance.
AGENCY:
The U.S. Nuclear Regulatory
Commission (NRC) is issuing an
exemption from the requirement to
maintain a specified level of onsite
property damage insurance in response
to a request from Entergy Nuclear
Operations, Inc. (ENO) dated August 10,
2018. This exemption would permit the
Big Rock Point (BRP) Independent
Spent Fuel Storage Installation (ISFSI)
to reduce its onsite insurance coverage
from $500 million to $50 million.
DATES: The exemption was issued on
July 31, 2019.
ADDRESSES: Please refer to Docket ID
NRC–2019–0127 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–2019–0127. Address
questions about NRC docket IDs in
Regulations.gov to Jennifer Borges;
telephone: 301–287–9127; email:
Jennifer.Borges@nrc.gov. 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 publiclyavailable 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 pdr.resource@
nrc.gov. The ADAMS accession number
for each document referenced (if it is
SUMMARY:
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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:
NUCLEAR REGULATORY
COMMISSION
I. Abstract
37353
Norma Garcı´a Santos, Office of Nuclear
Material Safety and Safeguards, U.S.
Nuclear Regulatory Commission,
Washington, DC 20555–0001; telephone:
301–415–6999, email:
Norma.GarciaSantos@nrc.gov.
SUPPLEMENTARY INFORMATION:
I. Background
Big Rock Point is located in
Charlevoix County, Michigan,
approximately 11 miles west of
Petoskey, on the northern shore of
Michigan’s Lower Peninsula. The BRP
nuclear plant was a boiling water
reactor rated at 75 MW electric and
began commercial operation in March
1963. The plant was permanently shut
down on August 29, 1997, and
Consumer’s Energy (CE) submitted a
post shutdown decommissioning
activities report on September 19, 1997
(ADAMS Accession No. ML19196A241).
In accordance with the requirements of
paragraph 50.82(a)(9) of title 10 of the
Code of Federal Regulations (10 CFR),
the licensee submitted BRP’s license
termination plan (LTP) for its facility.
The licensee constructed an onsite ISFSI
under its 10 CFR part 50 general license
(SFGL–16) and completed the transfer of
all spent nuclear fuel to the ISFSI in
May 2003 (ADAMS Accession No.
ML031270219). After the release of land
from the part 50 license in January 2007
(ADAMS Accession No. ML063410368),
the remaining onsite area is a parcel of
land approximately 30 acres, within
which the ISFSI is located, and an
additional parcel of approximately 75
acres adjacent to the ISFSI.
By order dated April 6, 2007 (ADAMS
Accession No. ML070740758), the NRC
approved the direct transfer of
Possession Only License No. DPR–06 for
BRP from CE to Entergy Nuclear
Palisades, LLC (ENP), and ENO, and
approved a conforming license
amendment, pursuant to 10 CFR 50.80,
‘‘Transfer of licenses,’’ and 10 CFR
72.50, ‘‘Transfer of license,’’ to reflect
the change. The order was published in
the Federal Register (FR) on April 16,
2007 (72 FR 19056). Accordingly, the
project name was changed from Big
Rock Point Restoration Project to Big
Rock Point ISFSI.
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Federal Register / Vol. 84, No. 147 / Wednesday, July 31, 2019 / Notices
II. Request/Action
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The BRP site currently maintains
$500 million in onsite insurance
coverage in accordance with a previous
exemption approved by the NRC on
November 3, 1982 (ADAMS Accession
No. ML19196A229). Under 10 CFR
50.12, ‘‘Specific exemptions,’’ BRP has
requested an exemption from 10 CFR
50.54(w)(1) by letter dated August 10,
2018 (ADAMS Accession No.
ML18222A394). The exemption from
the requirements of 10 CFR 50.54(w)(1)
would permit BRP to reduce its onsite
property damage insurance from $500
million to $50 million. This second
exemption is being requested to allow
reduced insurance coverage
commensurate with the significantly
reduced risks associated with a single
reactor facility that has ceased
operation, permanently defueled, and
transferred all Spent Nuclear Fuel
(SNF), Special Nuclear Material (SNM),
and Greater Than Class C (GTCC) waste
to dry fuel storage (DFS) casks stored in
an ISFSI.
The regulation in 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).
In its application, the licensee stated
that there is a reduced potential for, and
consequences of, a fuel handling
accident or a fuel zirconium fire.
Because reactor operation is no longer
authorized at BRP, 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 BRP is also much
lower than the risk of such an event at
operating reactors. In addition, plant
structures have been removed from the
site, and non-ISFSI related portions of
the site have been released from the BRP
part 50 license for unrestricted use.
Therefore, BRP requested an exemption
from 10 CFR 50.54(w)(1) that would
permit a reduction of its onsite property
damage insurance from $500 million to
$50 million, commensurate with an
ISFSI only facility, which is consistent
with the underlying purpose of the rule.
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:
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(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 coverage requirement
($1.06 billion) 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
conditions and ultimately
decontaminate and clean up the site.
The NRC developed cost estimates
from the spectrum of postulated
accidents for an operating nuclear
reactor and the consequences of any
associated release of radioactive
material from the reactor. Although the
risk of an accident at an operating
reactor is very low, the consequences
can be large. In an operating plant, the
high temperature and pressure of the
reactor coolant system, 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 BRP, the permanent
removal of the fuel from the reactor
core, and the movement of all the
irradiated fuel assemblies into storage at
the onsite ISFSI, such accidents are no
longer possible. As a result, the reactor,
reactor coolant system, and supporting
systems no longer operate, and these
components have already been
dismantled and removed from the site
as part of the decommissioning process.
Therefore, these systems and
components no longer serve any
function related to the storage of the
irradiated fuel. As such, postulated
accidents involving failure or
malfunction of the reactor, reactor
coolant system, or supporting systems
are no longer applicable at BRP.
During reactor decommissioning, the
principal radiological risks are
associated with the storage of spent fuel
onsite, as well as the inventory of
radioactive liquids, activated reactor
components, and contaminated
materials. In its August 10, 2018
(ADAMS Accession No. ML18222A394),
exemption request, BRP noted that
because all of the spent fuel is stored in
dry fuel storage casks in an ISFSI, a fuel
handling accident and a zirconium fire
caused by drain down of the spent fuel
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pool are no longer considered credible
events. In the current state of
decommissioning at BRP, no liquid and
airborne effluent releases resulting from
decommissioning activities are
considered credible events. In addition,
decontamination activities have been
completed and the site lands other than
those associated with the ISFSI have
been released from the BRP part 50
license. The licensee stated that this
results in a significant reduction in the
number and severity of potential
accidents involving a significant adverse
effect on public health and safety.
In addition, given that all the
irradiated fuel assemblies at BRP have
already been moved into storage at the
onsite ISFSI, the fuel is no longer
thermal-hydraulically capable of
sustaining a zirconium fire, and can be
air-cooled in all credible accident
scenarios and fuel configurations. The
NRC staff has previously authorized a
lesser amount of onsite property damage
insurance coverage based on an 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 insurance regulations that
would allow licensees to lower onsite
insurance levels to $50 million upon
demonstration that the fuel stored in the
spent fuel pool can be air-cooled and
could account for the postulated rupture
of a large liquid radiological waste tank
at the site, should such an event occur.
In its Staff Requirements
Memorandum to SECY–96–256, dated
January 28, 1997 (ADAMS Accession
No. ML15062A454), the Commission
supported the 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 spent fuel pool was drained of
water, and could account for the
postulated rupture of a large liquid
radiological waste tank at the site. In
SECY–96–256, the postulated large
liquid radiological waste storage tank
rupture event was determined to have a
bounding onsite cleanup cost of
approximately $50 million. The staff has
used this technical criterion to grant
similar exemptions to other
decommissioning reactors (e.g., Fort
Calhoun Station, published in the
Federal Register on April 6, 2018 (83 FR
14898); and La Crosse Boiling Water
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Reactor, published in the Federal
Register on August 1, 2018 (83 FR
37532)). These prior exemptions were
based on the licensees demonstrating
that the spent fuel could be air-cooled,
consistent with the technical criterion
discussed above. Accordingly, for BRP,
decommissioning of the site is complete
and the site lands other than those
associated with the ISFSI have been
released for unrestricted use.
Additionally, all SNF, SNM, and GTCC
waste are stored in DFS casks at the
ISFSI. Therefore, the NRC staff
determined $50 million to be an
adequate level of onsite property
damage insurance coverage for the BRP
site, given that (1) all SNF, SNM, and
GTCC waste is stored in the BRP ISFSI
and the spent fuel is no longer
susceptible to a zirconium fire; and (2)
the inventory of radioactive liquids at
the site has been eliminated such that
liquid and airborne effluent releases are
no longer considered credible events.
A. Authorized by Law
The regulation in 10 CFR 50.54(w)(1)
requires each licensee to have and
maintain onsite property damage
insurance of either $1.06 billion or
whatever amount of insurance is
generally available from private sources,
whichever is less. In accordance with 10
CFR 50.12, the Commission may grant
exemptions from the regulations in 10
CFR part 50, as the Commission
determines 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 the basis
provided in SECY–96–256 because there
is no credible risk of a zirconium fire
with all irradiated fuel stored in the
onsite ISFSI, where it is air-cooled in all
accident scenarios, all SNM and GTCC
waste is stored in the ISFSI, and the
inventory of radioactive liquids at the
site has been eliminated such that liquid
and airborne effluent releases are no
longer considered credible events.
The NRC staff has determined that
granting of the licensee’s proposed
exemption will not result in a violation
of the Atomic Energy Act of 1954, or
other laws, as amended. Therefore,
based on its review of BRP’s exemption
request, as discussed above, and
consistent with SECY–96–256, the NRC
staff concludes that the exemption is
authorized by law.
B. No Undue Risk to Public Health and
Safety
The onsite property damage insurance
requirements of 10 CFR 50.54(w)(1)
were established to provide financial
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assurance that following a significant
nuclear accident, onsite reactor
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
BRP are predicated on the assumption
that the reactor is operating. However,
the BRP reactor has been permanently
shutdown, defueled, and removed from
the site, with all SNF, SNM, and GTCC
waste stored in an ISFSI, and the
inventory of radioactive liquids at the
site has been eliminated such that liquid
and airborne effluent releases are no
longer considered credible events. The
permanently defueled status of the
facility has resulted 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 any
potential accidents. The proposed level
of insurance coverage is commensurate
with the reduced risk and reduced cost
consequences of potential nuclear
accidents at BRP. 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. Consistent With the Common Defense
and Security
The proposed exemption would not
eliminate any requirements associated
with physical protection of the site and
would not adversely affect BRP’s ability
to physically secure the site or protect
special nuclear material. Physical
security measures at BRP are not
affected by the requested exemption.
Therefore, the proposed exemption is
consistent with the common defense
and security.
D. Special Circumstances
Under 10 CFR 50.12(a)(2)(ii), special
circumstances are present if the
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. 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 a reactor accident that results
in the release of a significant amount of
radiological material.
The BRP site is permanently
shutdown and defueled, and source
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37355
terms have been removed by placing all
SNF, SNM, and GTCC waste in DFS
casks in an ISFSI. Decontamination
activities associated with the operating
reactor have been completed and site
lands have been released from the BRP
part 50 license for unrestricted use with
only the area supporting the ISFSI
remaining. Therefore, any radiological
consequences of accidents that will
remain possible at BRP in the
decommissioned ISFSI-only condition
are substantially lower than those at an
operating plant. Accordingly, the staff
concludes that the application of the
current requirements in 10 CFR
50.54(w)(1), as exempted, for BRP to
maintain $500 million in onsite
insurance coverage is not necessary to
achieve the underlying purpose of the
rule for the permanently shutdown and
defueled BRP facility.
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
$500 million, the associated insurance
premiums would be in excess of those
necessary and commensurate with the
radiological contamination risks posed
by the site in its current configuration.
In addition, such insurance levels
would be significantly in excess of other
decommissioning reactor facilities that
have been granted similar exemptions
by the NRC.
As such, 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 for the BRP facility.
E. Environmental Considerations
The NRC approval of an 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 10 CFR
51.22(c)(25).
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37356
Federal Register / Vol. 84, No. 147 / Wednesday, July 31, 2019 / Notices
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.
The NRC staff determined that
approval of the exemption request
involves no significant hazards
consideration because reducing the
licensee’s onsite property damage
insurance for BRP 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 BRP. 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. 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. The requirement for onsite
property damage insurance involves
surety, insurance, and indemnity
matters. Therefore, pursuant to 10 CFR
51.22(b) and 10 CFR 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
The Commission has determined that,
pursuant to 10 CFR 50.12(a), the
exemption is authorized by law, will not
present an undue risk to the public
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health and safety, and is consistent with
the common defense and security. Also,
special circumstances are present.
Therefore, the Commission hereby
grants BRP an exemption from the
requirements of 10 CFR 50.54(w)(1), to
permit the licensee to reduce its onsite
property damage insurance coverage to
a level of $50 million.
Dated at Rockville, Maryland, this 26th day
of July, 2019.
For the Nuclear Regulatory Commission.
John B. McKirgan,
Chief, Spent Fuel Licensing Branch, Division
of Spent Fuel Management, Office of Nuclear
Material Safety and Safeguards.
[FR Doc. 2019–16316 Filed 7–30–19; 8:45 am]
BILLING CODE 7590–01–P
POSTAL REGULATORY COMMISSION
[Docket Nos. MC2019–174 and CP2019–196]
New Postal Products
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing for the
Commission’s consideration concerning
negotiated service agreements. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: August 2,
2019.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Table of Contents
I. Introduction
II. Docketed Proceeding(s)
I. Introduction
The Commission gives notice that the
Postal Service filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the market dominant or
the competitive product list, or the
modification of an existing product
currently appearing on the market
dominant or the competitive product
list.
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Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3007.301.1
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern market dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3010, and 39
CFR part 3020, subpart B. For request(s)
that the Postal Service states concern
competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3015, and
39 CFR part 3020, subpart B. Comment
deadline(s) for each request appear in
section II.
II. Docketed Proceeding(s)
1. Docket No(s).: MC2019–174 and
CP2019–196; Filing Title: USPS Request
to Add First-Class Package Service
Contract 101 to Competitive Product
List and Notice of Filing Materials
Under Seal; Filing Acceptance Date:
July 25, 2019; Filing Authority: 39
U.S.C. 3642, 39 CFR 3020.30 et seq., and
39 CFR 3015.5; Public Representative:
Christopher C. Mohr; Comments Due:
August 2, 2019.
This Notice will be published in the
Federal Register.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2019–16267 Filed 7–30–19; 8:45 am]
BILLING CODE 7710–FW–P
1 See Docket No. RM2018–3, Order Adopting
Final Rules Relating to Non-Public Information,
June 27, 2018, Attachment A at 19–22 (Order No.
4679).
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[Federal Register Volume 84, Number 147 (Wednesday, July 31, 2019)]
[Notices]
[Pages 37353-37356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16316]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-155 and 72-043; NRC-2019-0127]
Entergy Nuclear Operations, Inc.; Entergy Nuclear Palisades, LLC;
Big Rock Point Independent Spent Fuel Storage Installation
AGENCY: Nuclear Regulatory Commission.
ACTION: Exemption; issuance.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an
exemption from the requirement to maintain a specified level of onsite
property damage insurance in response to a request from Entergy Nuclear
Operations, Inc. (ENO) dated August 10, 2018. This exemption would
permit the Big Rock Point (BRP) Independent Spent Fuel Storage
Installation (ISFSI) to reduce its onsite insurance coverage from $500
million to $50 million.
DATES: The exemption was issued on July 31, 2019.
ADDRESSES: Please refer to Docket ID NRC-2019-0127 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-2019-0127. 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: Norma Garc[iacute]a Santos, Office of
Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory
Commission, Washington, DC 20555-0001; telephone: 301-415-6999, email:
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
Big Rock Point is located in Charlevoix County, Michigan,
approximately 11 miles west of Petoskey, on the northern shore of
Michigan's Lower Peninsula. The BRP nuclear plant was a boiling water
reactor rated at 75 MW electric and began commercial operation in March
1963. The plant was permanently shut down on August 29, 1997, and
Consumer's Energy (CE) submitted a post shutdown decommissioning
activities report on September 19, 1997 (ADAMS Accession No.
ML19196A241). In accordance with the requirements of paragraph
50.82(a)(9) of title 10 of the Code of Federal Regulations (10 CFR),
the licensee submitted BRP's license termination plan (LTP) for its
facility. The licensee constructed an onsite ISFSI under its 10 CFR
part 50 general license (SFGL-16) and completed the transfer of all
spent nuclear fuel to the ISFSI in May 2003 (ADAMS Accession No.
ML031270219). After the release of land from the part 50 license in
January 2007 (ADAMS Accession No. ML063410368), the remaining onsite
area is a parcel of land approximately 30 acres, within which the ISFSI
is located, and an additional parcel of approximately 75 acres adjacent
to the ISFSI.
By order dated April 6, 2007 (ADAMS Accession No. ML070740758), the
NRC approved the direct transfer of Possession Only License No. DPR-06
for BRP from CE to Entergy Nuclear Palisades, LLC (ENP), and ENO, and
approved a conforming license amendment, pursuant to 10 CFR 50.80,
``Transfer of licenses,'' and 10 CFR 72.50, ``Transfer of license,'' to
reflect the change. The order was published in the Federal Register
(FR) on April 16, 2007 (72 FR 19056). Accordingly, the project name was
changed from Big Rock Point Restoration Project to Big Rock Point
ISFSI.
[[Page 37354]]
II. Request/Action
The BRP site currently maintains $500 million in onsite insurance
coverage in accordance with a previous exemption approved by the NRC on
November 3, 1982 (ADAMS Accession No. ML19196A229). Under 10 CFR 50.12,
``Specific exemptions,'' BRP has requested an exemption from 10 CFR
50.54(w)(1) by letter dated August 10, 2018 (ADAMS Accession No.
ML18222A394). The exemption from the requirements of 10 CFR 50.54(w)(1)
would permit BRP to reduce its onsite property damage insurance from
$500 million to $50 million. This second exemption is being requested
to allow reduced insurance coverage commensurate with the significantly
reduced risks associated with a single reactor facility that has ceased
operation, permanently defueled, and transferred all Spent Nuclear Fuel
(SNF), Special Nuclear Material (SNM), and Greater Than Class C (GTCC)
waste to dry fuel storage (DFS) casks stored in an ISFSI.
The regulation in 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).
In its application, the licensee stated that there is a reduced
potential for, and consequences of, a fuel handling accident or a fuel
zirconium fire. Because reactor operation is no longer authorized at
BRP, 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 BRP
is also much lower than the risk of such an event at operating
reactors. In addition, plant structures have been removed from the
site, and non-ISFSI related portions of the site have been released
from the BRP part 50 license for unrestricted use. Therefore, BRP
requested an exemption from 10 CFR 50.54(w)(1) that would permit a
reduction of its onsite property damage insurance from $500 million to
$50 million, commensurate with an ISFSI only facility, which is
consistent with the underlying purpose of the rule.
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) 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 coverage
requirement ($1.06 billion) 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 conditions and ultimately decontaminate and
clean up the site.
The NRC developed cost estimates from the spectrum of postulated
accidents for an operating nuclear reactor and the consequences of any
associated release of radioactive material from the reactor. Although
the risk of an accident at an operating reactor is very low, the
consequences can be large. In an operating plant, the high temperature
and pressure of the reactor coolant system, 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 BRP, the permanent removal of the fuel from the reactor
core, and the movement of all the irradiated fuel assemblies into
storage at the onsite ISFSI, such accidents are no longer possible. As
a result, the reactor, reactor coolant system, and supporting systems
no longer operate, and these components have already been dismantled
and removed from the site as part of the decommissioning process.
Therefore, these systems and components no longer serve any function
related to the storage of the irradiated fuel. As such, postulated
accidents involving failure or malfunction of the reactor, reactor
coolant system, or supporting systems are no longer applicable at BRP.
During reactor decommissioning, the principal radiological risks
are associated with the storage of spent fuel onsite, as well as the
inventory of radioactive liquids, activated reactor components, and
contaminated materials. In its August 10, 2018 (ADAMS Accession No.
ML18222A394), exemption request, BRP noted that because all of the
spent fuel is stored in dry fuel storage casks in an ISFSI, a fuel
handling accident and a zirconium fire caused by drain down of the
spent fuel pool are no longer considered credible events. In the
current state of decommissioning at BRP, no liquid and airborne
effluent releases resulting from decommissioning activities are
considered credible events. In addition, decontamination activities
have been completed and the site lands other than those associated with
the ISFSI have been released from the BRP part 50 license. The licensee
stated that this results in a significant reduction in the number and
severity of potential accidents involving a significant adverse effect
on public health and safety.
In addition, given that all the irradiated fuel assemblies at BRP
have already been moved into storage at the onsite ISFSI, the fuel is
no longer thermal-hydraulically capable of sustaining a zirconium fire,
and can be air-cooled in all credible accident scenarios and fuel
configurations. The NRC staff has previously authorized a lesser amount
of onsite property damage insurance coverage based on an 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 insurance regulations that would allow
licensees to lower onsite insurance levels to $50 million upon
demonstration that the fuel stored in the spent fuel pool can be air-
cooled and could account for the postulated rupture of a large liquid
radiological waste tank at the site, should such an event occur.
In its Staff Requirements Memorandum to SECY-96-256, dated January
28, 1997 (ADAMS Accession No. ML15062A454), the Commission supported
the 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 spent fuel pool was drained of water,
and could account for the postulated rupture of a large liquid
radiological waste tank at the site. In SECY-96-256, the postulated
large liquid radiological waste storage tank rupture event was
determined to have a bounding onsite cleanup cost of approximately $50
million. The staff has used this technical criterion to grant similar
exemptions to other decommissioning reactors (e.g., Fort Calhoun
Station, published in the Federal Register on April 6, 2018 (83 FR
14898); and La Crosse Boiling Water
[[Page 37355]]
Reactor, published in the Federal Register on August 1, 2018 (83 FR
37532)). These prior exemptions were based on the licensees
demonstrating that the spent fuel could be air-cooled, consistent with
the technical criterion discussed above. Accordingly, for BRP,
decommissioning of the site is complete and the site lands other than
those associated with the ISFSI have been released for unrestricted
use. Additionally, all SNF, SNM, and GTCC waste are stored in DFS casks
at the ISFSI. Therefore, the NRC staff determined $50 million to be an
adequate level of onsite property damage insurance coverage for the BRP
site, given that (1) all SNF, SNM, and GTCC waste is stored in the BRP
ISFSI and the spent fuel is no longer susceptible to a zirconium fire;
and (2) the inventory of radioactive liquids at the site has been
eliminated such that liquid and airborne effluent releases are no
longer considered credible events.
A. Authorized by Law
The regulation in 10 CFR 50.54(w)(1) requires each licensee to have
and maintain onsite property damage insurance of either $1.06 billion
or whatever amount of insurance is generally available from private
sources, whichever is less. In accordance with 10 CFR 50.12, the
Commission may grant exemptions from the regulations in 10 CFR part 50,
as the Commission determines 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 the basis
provided in SECY-96-256 because there is no credible risk of a
zirconium fire with all irradiated fuel stored in the onsite ISFSI,
where it is air-cooled in all accident scenarios, all SNM and GTCC
waste is stored in the ISFSI, and the inventory of radioactive liquids
at the site has been eliminated such that liquid and airborne effluent
releases are no longer considered credible events.
The NRC staff has determined that granting of the licensee's
proposed exemption will not result in a violation of the Atomic Energy
Act of 1954, or other laws, as amended. Therefore, based on its review
of BRP's exemption request, as discussed above, and consistent with
SECY-96-256, the NRC staff concludes that the exemption is authorized
by law.
B. No Undue Risk to 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 accident, onsite reactor 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 BRP are predicated on the assumption that the reactor is operating.
However, the BRP reactor has been permanently shutdown, defueled, and
removed from the site, with all SNF, SNM, and GTCC waste stored in an
ISFSI, and the inventory of radioactive liquids at the site has been
eliminated such that liquid and airborne effluent releases are no
longer considered credible events. The permanently defueled status of
the facility has resulted 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 any
potential accidents. The proposed level of insurance coverage is
commensurate with the reduced risk and reduced cost consequences of
potential nuclear accidents at BRP. 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. Consistent With the Common Defense and Security
The proposed exemption would not eliminate any requirements
associated with physical protection of the site and would not adversely
affect BRP's ability to physically secure the site or protect special
nuclear material. Physical security measures at BRP are not affected by
the requested exemption. Therefore, the proposed exemption is
consistent with the common defense and security.
D. Special Circumstances
Under 10 CFR 50.12(a)(2)(ii), special circumstances are present if
the 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. 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 a
reactor accident that results in the release of a significant amount of
radiological material.
The BRP site is permanently shutdown and defueled, and source terms
have been removed by placing all SNF, SNM, and GTCC waste in DFS casks
in an ISFSI. Decontamination activities associated with the operating
reactor have been completed and site lands have been released from the
BRP part 50 license for unrestricted use with only the area supporting
the ISFSI remaining. Therefore, any radiological consequences of
accidents that will remain possible at BRP in the decommissioned ISFSI-
only condition are substantially lower than those at an operating
plant. Accordingly, the staff concludes that the application of the
current requirements in 10 CFR 50.54(w)(1), as exempted, for BRP to
maintain $500 million in onsite insurance coverage is not necessary to
achieve the underlying purpose of the rule for the permanently shutdown
and defueled BRP facility.
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 $500 million, the
associated insurance premiums would be in excess of those necessary and
commensurate with the radiological contamination risks posed by the
site in its current configuration. In addition, such insurance levels
would be significantly in excess of other decommissioning reactor
facilities that have been granted similar exemptions by the NRC.
As such, 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 for the BRP facility.
E. Environmental Considerations
The NRC approval of an 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 10 CFR 51.22(c)(25).
[[Page 37356]]
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.
The NRC staff determined that approval of the exemption request
involves no significant hazards consideration because reducing the
licensee's onsite property damage insurance for BRP 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 BRP. 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. 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. The requirement for onsite
property damage insurance involves surety, insurance, and indemnity
matters. Therefore, pursuant to 10 CFR 51.22(b) and 10 CFR
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
The Commission has determined that, pursuant to 10 CFR 50.12(a),
the exemption 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. Therefore, the
Commission hereby grants BRP an exemption from the requirements of 10
CFR 50.54(w)(1), to permit the licensee to reduce its onsite property
damage insurance coverage to a level of $50 million.
Dated at Rockville, Maryland, this 26th day of July, 2019.
For the Nuclear Regulatory Commission.
John B. McKirgan,
Chief, Spent Fuel Licensing Branch, Division of Spent Fuel Management,
Office of Nuclear Material Safety and Safeguards.
[FR Doc. 2019-16316 Filed 7-30-19; 8:45 am]
BILLING CODE 7590-01-P
