Pacific Gas and Electric Company; Diablo Canyon Nuclear Power Plant Units 1 and 2, 48955-48959 [2019-20091]

Download as PDF jbell on DSK3GLQ082PROD with NOTICES Federal Register / Vol. 84, No. 180 / Tuesday, September 17, 2019 / Notices staff are not matters that constitute backfitting as that term is defined in 10 CFR 50.109(a)(1) or involve the issue finality provisions of 10 CFR part 52. 2. Backfitting and issue finality—with certain exceptions discussed below—do not apply to current or future applicants. Applicants and potential applicants are not, with certain exceptions, the subject of either the Backfit Rule or any issue finality provisions under 10 CFR part 52. This is because neither the Backfit Rule nor the issue finality provisions of 10 CFR part 52 were intended to apply to every NRC action that substantially changes the expectations of current and future applicants. The exceptions to the general principle are applicable whenever a 10 CFR part 50 operating license applicant references a construction permit or a 10 CFR part 52 combined license applicant references a license (e.g., an early site permit) and/or an NRC regulatory approval (e.g., a design certification rule) for which specified issue finality provisions apply. The NRC staff does not currently intend to impose the positions represented in this final SRP section in a manner that constitutes backfitting or is inconsistent with any issue finality provision of 10 CFR part 52. If in the future the NRC staff seeks to impose positions stated in this SRP section in a manner that would constitute backfitting or be inconsistent with these issue finality provisions, the NRC staff must make the showing as set forth in the Backfit Rule or address the regulatory criteria set forth in the applicable issue finality provision, as applicable, that would allow the staff to impose the position. 3. The NRC staff has no intention to impose the SRP positions on existing nuclear power plant licensees either now or in the future (absent a voluntary request for a change from the licensee, holder of a regulatory approval or a design certification applicant). The staff does not intend to impose or apply the positions described in this final SRP section to existing (already issued) licenses (e.g., operating licenses and combined licenses) and regulatory approvals. Hence, the issuance of this SRP guidance—even if considered guidance subject to the Backfit Rule or the issue finality provisions in 10 CFR part 52—would not need to be evaluated as if it were a backfit or as being inconsistent with issue finality provisions. If, in the future, the NRC staff seeks to impose a position in the SRP on holders of already issued licenses in a manner that would VerDate Sep<11>2014 17:05 Sep 16, 2019 Jkt 247001 constitute backfitting or does not provide issue finality as described in the applicable issue finality provision, then the staff must make a showing as set forth in the Backfit Rule or address the criteria set forth in the applicable issue finality provision, as applicable, that would allow the staff to impose the position. III. Congressional Review Act The Office of Management and Budget makes the determination that the NRC action titled ‘NUREG–0800, ‘‘Standard Review Plan for the Review of Safety Analysis Reports for Nuclear Power Plants: LWR Edition,’’ Revision 1 of Standard Review Plan Section 14.3.3, ‘‘Piping Systems and Components— Inspections, Tests, Analyses, and Acceptance Criteria,’’’ is non-major under the Congressional Review Act. The Office of Management and Budget’s decision regarding SRP 14.3.3 is contained in ADAMS under Accession No. ML19239A003. Dated at Rockville, Maryland, this 11th day of September, 2019. For the Nuclear Regulatory Commission. Jason C. Paige, Acting Chief, Licensing Branch 3, Division of Licensing, Siting, and Environmental Analysis, Office of New Reactors. [FR Doc. 2019–20007 Filed 9–16–19; 8:45 am] BILLING CODE 7590–01–P NUCLEAR REGULATORY COMMISSION [Docket Nos. 50–275 and 50–323; NRC– 2019–0131] Pacific Gas and Electric Company; Diablo Canyon Nuclear Power Plant Units 1 and 2 Nuclear Regulatory Commission. ACTION: Exemption; issuance. AGENCY: PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 for Docket ID NRC–2019–0131. 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 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: Balwant K. Singal, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington DC 20555–0001; telephone: 301–415–3016; email: Balwant.Singal@nrc.gov. SUPPLEMENTARY INFORMATION: The text of the exemption is attached. Dated at Rockville, Maryland, this 12th day of September 2019. For the Nuclear Regulatory Commission. Balwant K. Singal, Senior Project Manager, Plant Licensing Branch IV, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation. ATTACHMENT—Exemptions The U.S. Nuclear Regulatory Commission (NRC) has issued exemptions in response to a December 13, 2018, request from Pacific Gas and Electric Company (PG&E or the licensee) from certain regulatory requirements for the Diablo Canyon Nuclear Power Plant, Units 1 and 2 (Diablo Canyon). DATES: The exemptions were issued on September 10, 2019. ADDRESSES: Please refer to Docket ID NRC–2019–0131 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 SUMMARY: 48955 NUCLEAR REGULATORY COMMISSION Docket Nos. 50–275 and 50–323 Pacific Gas and Electric Company, Diablo Canyon Nuclear Power Plant, Units 1 and 2 Exemption I. Background Pacific Gas and Electric Company (PG&E or the licensee) is the holder of Facility Operating License Nos. DPR–80 and DPR–82, which authorizes operation of Diablo Canyon Nuclear Power Plant (Diablo Canyon), Units 1 and 2, respectively. The licenses provide, among other things, that Diablo Canyon, Units 1 and 2 are subject to all rules, regulations, and orders of the U.S. Nuclear Regulatory Commission (NRC or the Commission) now or hereafter in E:\FR\FM\17SEN1.SGM 17SEN1 48956 Federal Register / Vol. 84, No. 180 / Tuesday, September 17, 2019 / Notices jbell on DSK3GLQ082PROD with NOTICES effect. Diablo Canyon is located in San Luis Obispo, California. By letter dated November 27, 2018 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML18331A553), the licensee informed the NRC of its intent to permanently cease operations for Diablo Canyon, Units 1 and 2, on November 2, 2024, for Unit 1, and August 26, 2025, for Unit 2. By letter dated January 29, 2019 (ADAMS Accession No. ML19029A020), PG&E notified the NRC that a voluntary petition for relief under Chapter 11 of Title 11 of the United States Code was filed on January 29, 2019, in the United States Bankruptcy Court for the Northern District of California. The NRC acknowledged PG&E’s bankruptcy notification on February 5, 2019 (ADAMS Accession No. ML19031C816). By letter dated March 14, 2019, the NRC staff stated that it does not anticipate that the PG&E bankruptcy filing, including that of its parent company, will have any adverse safety impacts at Diablo Canyon, Units 1 and 2 (ADAMS Accession No. ML19074A109). Additionally, the NRC staff stated that the bankruptcy filing does not relieve PG&E of its obligations to comply with NRC requirements and that PG&E must continue to comply with all of its obligations under the Atomic Energy Act of 1954 (AEA) as amended, and the NRC’s regulations, including the obligations relating to decommissioning financial assurance. The NRC continues to monitor PG&E’s decommissioning financial assurance for Diablo Canyon and continued compliance with NRC’s decommissioning funding requirements. II. Request/Action By letter dated December 13, 2018 (ADAMS Accession No. ML18347B552), PG&E submitted a request for exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.82(a)(8)(ii) for Diablo Canyon, Units 1 and 2. The exemptions would allow the licensee to use an amount of funds from the Diablo Canyon Nuclear Decommissioning Trust (NDT) 1 for decommissioning planning above the amount limitations specified in NRC regulations for operating reactors and use withdrawals from the NDT for planning activities associated with spent fuel management and site restoration. Overall, the proposed action would allow PG&E to withdraw $187.8 million ($2017) from the Diablo Canyon 1 The NRC notes that decommissioning trust funds in the NDT are not property of PG&E’s estate and are held in trust for the exclusive purpose of providing funds for the decommissioning of the nuclear plants. See 10 CFR 50.75. VerDate Sep<11>2014 17:05 Sep 16, 2019 Jkt 247001 NDT to fund radiological decommissioning, spent fuel management, and site restoration planning activities necessary prior to permanent cessation of operations of Diablo Canyon, Units 1 and 2, in 2024 and 2025, respectively. According to the application, planning activities necessary to support direct transition to physical decommissioning upon permanent shut down of Diablo Canyon, Units 1 and 2, include: Obtaining revisions to NRC licenses and requirements; obtaining state and local permits required for decommissioning activities and supporting required stakeholder processes related to future land use and disposition of facilities; completing engineering design, work plans, technical evaluations, and procurement to support several major, critical decommissioning projects scheduled at the front end of the decommissioning effort; developing and supporting decommissioning cost estimates and supporting nuclear decommissioning proceedings at the California Public Utilities Commission (CPUC); and developing detailed executable work plans for decommissioning work, revising plant processes and procedures as necessary. PG&E has estimated that a total of $187.8 million ($2017) would be required to be spent on pre-shutdown planning activities; $148.4 million would be for radiological decommissioning planning activities, and $39.4 million would be for spent fuel management and site restoration planning activities. The estimated $148.4 million amount is more than 3 percent of the generic minimum decommissioning amount calculated for an operating reactor using the formula set forth by NRC regulations at 10 CFR 50.75. Furthermore, withdrawals from the decommissioning trust fund cannot be used to fund the PG&E estimated $39.4 million for spent fuel management and site restoration planning activities absent (1) a clear indication that monies in the fund were collected for those purposes and are clearly and consistently accounted for separately,2 2 The NRC does not preclude the commingling of funds accumulated to comply with NRC radiological decommissioning requirements and funds accumulated to address site restoration costs and spent fuel management costs, as long as the licensee is able to identify and account for the NRC radiological decommissioning funds that are contained within its single account. See NRC Regulatory Issue Summary 2001–07, Revision 1, ‘‘10 CFR 50.75 Reporting and Recordkeeping for Decommissioning Planning,’’ dated January 8, 2009 (ADAMS Accession No. ML083440158); Regulatory Guide 1.184, Revision 1, ‘‘Decommissioning of Nuclear Power Reactors,’’ dated October 2013 (ADAMS Accession No. ML13144A840). PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 or (2) an exemption from the requirements of 10 CFR 50.82(a)(8)(i)(A) for use of funds for those purposes. The requirements of 10 CFR 50.82(a)(8)(ii) restrict the use of the NDT for decommissioning planning to 3 percent of the generic minimum decommissioning amount calculated using the formula set forth by the regulations at 10 CFR 50.75. For licensees that have submitted the certifications required under 10 CFR 50.82(a)(1) and commencing 90 days after the NRC has received the PostShutdown Decommissioning Activities Report, an additional 20 percent may be used. A site-specific decommissioning cost estimate must be submitted to the NRC prior to the licensee using any funding in excess of these amounts. Furthermore, as required by 10 CFR 50.82(a)(8)(i)(A), decommissioning trust funds may be used by the licensee if the withdrawals are for legitimate decommissioning activities, consistent with the definition of decommissioning in 10 CFR 50.2. The definition in 10 CFR 50.2 states, that ‘‘Decommission means to remove a facility or site safely from service and reduce residual radioactivity to a level that permits (1) Release of the property for unrestricted use and termination of the license; or (2) Release of the property under restricted conditions and termination of the license.’’ This definition addresses radiological decommissioning and does not include activities associated with irradiated fuel management or site restoration activities. Therefore, these regulations would limit withdrawals from the Diablo Canyon NDT to $37.2 million ($18.6 million per unit) and would allow spending only on planning activities for radiological decommissioning. In addition, as noted above, the licensee does not plan to permanently cease operations for Diablo Canyon, Units 1 and 2, until November 2, 2024 for Unit 1, and August 26, 2025, for Unit 2. Therefore, exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.82(a)(8)(ii) are needed to allow the licensee to use an amount of funds from the Diablo Canyon NDT for decommissioning planning above the 3 percent limitation specified in NRC regulations and to use withdrawals from the NDT for planning activities associated with spent fuel management and site restoration. 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) E:\FR\FM\17SEN1.SGM 17SEN1 Federal Register / Vol. 84, No. 180 / Tuesday, September 17, 2019 / Notices 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. These special circumstances, as stated in 10 CFR 50.12(a)(2) include, among other things: (a) ‘‘Application of the regulation in the particular circumstances would not serve the underlying purpose of the rule or is not necessary to achieve the underlying purpose of the rule’’; and (b) ‘‘Compliance would result in undue hardship or other costs that are significantly in excess of those contemplated when the regulation was adopted, or that are significantly in excess of those incurred by others similarly situated.’’ jbell on DSK3GLQ082PROD with NOTICES A. The Exemptions Are Authorized by Law The exemptions would allow PG&E to withdraw $187.8 million ($2017) from the Diablo Canyon NDT to fund planning activities for radiological decommissioning, spent fuel management, and site restoration prior to permanent cessation of operations. As stated above, 10 CFR 50.12 allows the NRC to grant exemptions from the requirements of 10 CFR part 50. The NRC staff has determined, as explained in Section D below, that there is reasonable assurance of adequate funding for radiological decommissioning because PG&E’s withdrawal of $187.8 million ($2017) from the Diablo Canyon NDT for planning activities for radiological decommissioning, spent fuel management, and site restoration will not adversely impact PG&E’s ability to complete radiological decommissioning within 60 years of permanent cessation of operations and terminate the Diablo Canyon licenses. Accordingly, the exemption is authorized by law because granting the licensee’s proposed exemptions will not result in a violation of the Atomic Energy Act of 1954, as amended, or the Commission’s regulations. B. The Exemptions Present No Undue Risk to Public Health and Safety The proposed exemptions would allow PG&E to withdraw $187.8 million ($2017) from the Diablo Canyon NDT to fund planning activities for radiological decommissioning, spent fuel management, and site restoration between now and permanent cessation of operations, to support a safe and efficient transition from operational to decommissioning status. PG&E has estimated that a total of $187.8 million VerDate Sep<11>2014 17:05 Sep 16, 2019 Jkt 247001 ($2017) would be needed for preshutdown planning activities; $148.4 million would be for radiological decommissioning planning activities, and $39.4 million would be for spent fuel management and site restoration planning activities. According to the licensee, spending the $187.8 million now will save approximately $166.1 million ($2017) in overall decommissioning cost mainly due to savings on security, fire protection, and overall staffing costs mainly due to savings on security, fire protection, and overall staffing costs. As explained in further detail in Section D below, based on the NRC staff’s review of PG&E’s exemption request and site-specific cost estimate and the staff’s independent cash flow analysis, the NRC staff finds that PG&E’s withdrawal of $187.8 million ($2017) from the Diablo Canyon NDT for planning activities for radiological decommissioning, spent fuel management, and site restoration, will not adversely impact PG&E’s ability to complete radiological decommissioning within 60 years of permanent cessation of operations and terminate the Diablo Canyon licenses. Therefore, the requested exemptions will not present an undue risk to public health and safety if granted. In addition, granting the requested exemptions will not alter the operation of any plant equipment or systems and, therefore, does not present an undue risk to safety. The proposed exemptions do not introduce any new industrial, radiological, chemical, or radiological hazards that would present a health and safety risk nor would granting the exemptions result in modifying or removing design or operational controls or safeguards that are intended to mitigate onsite hazards. This exemption does not diminish the effectiveness of other regulations that ensure available funding for decommissioning, including 10 CFR 50.82(a)(6), which prohibits licensees from performing any decommissioning activities that could foreclose release of the site for possible unrestricted use, result in significant environmental impacts not previously reviewed, or result in there no longer being reasonable assurance that adequate funds will be available for decommissioning. Therefore, the requested exemptions will not present an undue risk to public health and safety if these exemptions are granted. C. The Exemptions Are Consistent With the Common Defense and Security The exemptions, allowing withdrawal of $187.8 million ($2017) of the Diablo Canyon NDT for planning activities for PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 48957 radiological decommissioning, spent fuel management, and site restoration do not alter the design, function, or operation of any structures or plant equipment that is necessary to maintain the safe and secure status of the plant and will not adversely affect PG&E’s ability to physically secure the site or protect special nuclear material. Therefore, the common defense and security is not impacted by the exemptions. D. Special Circumstances The regulation under 10 CFR 50.12(a)(2) states, in part, that ‘‘[t]he Commission will not consider granting an exemption unless special circumstances are present,’’ and identifies, in 10 CFR 50.12(a)(2)(i)–(vi), when special circumstances are present. Special circumstances, in accordance with 10 CFR 50.12(a)(2)(ii), are present whenever 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 50.82(a)(8)(i)(A) and 10 CFR 50.82(a)(8)(ii) is to provide reasonable assurance that adequate funds will be available for radiological decommissioning of power reactors within 60 years of permanent cessation of operations. Strict application of these requirements would limit withdrawal from the Diablo Canyon NDT to $37.2 million ($18.6 million per unit) and would allow spending only on planning activities for radiological decommissioning. The NRC staff performed an independent cash flow analysis using information provided in PG&E’s cash flow statement in Enclosure 2 of the exemption request, dated December 13, 2018, and information provided in PG&E’s site-specific cost estimate submitted by letter dated March 26, 2019 (ADAMS Accession No. ML19094B780). The balance in the NDT as of December 31, 2018, was $1.31 billion for Unit 1 and $1.71 billion for Unit 2. The site-specific cost estimate states that PG&E plans to deposit $226.7 million per year into the Unit 1 NDT in 2020–2024, and $151.1 million per year into the Unit 2 NDT in 2020–2025. The site-specific cost estimate also states that the estimated costs for radiological decommissioning are $1.581 billion for Unit 1 and $1.578 billion for Unit 2. Using the costs for radiological decommissioning for both units provided in the site-specific cost estimate, a 2% rate of return on the NDT (as allowed by 10 CFR 50.75(e)(1)(ii)), and considering withdrawal of $187.8 E:\FR\FM\17SEN1.SGM 17SEN1 jbell on DSK3GLQ082PROD with NOTICES 48958 Federal Register / Vol. 84, No. 180 / Tuesday, September 17, 2019 / Notices million ($2017) from the Diablo Canyon NDT for the specified planning activities, the NRC staff determined that the balance in the NDTs at the completion of radiological decommissioning in 2038 is expected to be approximately $1.046 billion for Unit 1 and $1.117 billion for Unit 2 indicating that the licensee will have sufficient funds to complete radiological decommissioning. In addition, the staff’s independent cash flow analysis projects that the Diablo Canyon NDT would contain approximately $3.68 billion in 2076 (for both units) when PG&E projects the site will be fully decommissioned, and all spent fuel will be removed from the site. Therefore, the NRC staff finds that there is reasonable assurance of adequate funding for radiological decommissioning because PG&E’s withdrawal of $187.8 million ($2017) from the Diablo Canyon NDT for radiological decommissioning, spent fuel management, and site restoration planning activities will not adversely impact PG&E’s ability to complete radiological decommissioning within 60 years of permanent cessation of operations and terminate the Diablo Canyon licenses. In addition, under 10 CFR 50.75(f), the licensee will be required to submit an annual report regarding the status of decommissioning funding for Unit 1, beginning in 2020, and for Unit 2, beginning in 2021 because the units will be within five years of permanently shutting down. Also, under 10 CFR 50.75(h)(2), the licensee is required to provide the NRC with written notice at least 30 business days prior to any disbursement from the NDT for spent fuel management and site restoration planning activities. Lastly, the NRC notes that PG&E is an electric utility as defined by 10 CFR 50.2, and therefore, has the ability to address any future shortfall in the NDT with the CPUC (who sets the electric rates for PG&E), should that be necessary in the future. In transitioning to and planning for decommissioning activities, several power reactor licensees have requested exemptions from the decommissioning funding assurance requirements in 10 CFR 50.75 and 10 CFR 50.82 to allow for the withdrawal of funds from their NDTs for expenses unrelated to radiological decommissioning as defined in 10 CFR 50.2, such as for spent fuel management and site restoration. Generally, the NRC has granted these exemption requests, on a case-by-case basis, finding reasonable assurance that even after the proposed withdrawals of funds for the requested use (e.g., spent fuel and site restoration), sufficient funding remains in the NDT VerDate Sep<11>2014 17:05 Sep 16, 2019 Jkt 247001 to complete radiological decommissioning and terminate the license. The Commission addresses a similar issue in Staff Requirements Memorandum (SRM) SECY–02–0085, ‘‘Recent Issues With Respect to Decommissioning Funding Assurance That Have Arisen as Part of License Transfer Applications and Other Licensing Requests,’’ dated January 3, 2003 (ADAMS Accession No. ML030030539). In that SRM, the Commission stated that, ‘‘[t]he staff should continue to review requests for withdrawal or non-transfer of funds from decommissioning trusts on a caseby-case basis,’’ and ‘‘. . . while a trust is accumulating, our regulations should be interpreted as strictly as possible to preclude withdrawals . . . (both radiological and non-radiological).’’ The staff recognizes that PG&E’s exemption request has been submitted by the licensee during the operational life and decommissioning funding-accumulating phase of the license. However, given the unique circumstances of PG&E’s request, including the known date of shutdown of the units in advance, the time period until the units are permanently shut down, PG&E’s projected cost savings of $166.1 million ($2017), the current balance of the NDT, the projected balance of the NDT at license termination based on the staff’s independent cash flow analysis, and PG&E’s ability to address any future shortfalls in the NDT with the CPUC, the NRC staff determined that the request is justified under the SRM. In summary, the NRC staff found that reasonable assurance exists that adequate funds will be available in the Diablo Canyon NDT to complete radiological decommissioning and terminate the Part 50 license, with sufficient funding available beyond that required under 10 CFR 50.75 to pay for PG&E’s proposed planning activities for radiological decommissioning, spent fuel management, and site restoration. Accordingly, the NRC staff concludes that application of the 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.82(a)(8)(ii) requirements that limit the withdrawal of funds from the Diablo Canyon NDT for decommissioning planning to 3 percent for operating reactors and preclude withdrawals from the NDT for planning activities associated with spent fuel management and site restoration are not necessary to achieve the underlying purpose of the rule; thus, special circumstances are present supporting approval of the exemption request. Special circumstances, in accordance with 10 CFR 50.12(a)(2)(iii), are present PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 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 who are similarly situated. The NRC staff analyzed PG&E’s cash flow statements in Enclosure 3 of the application dated December 13, 2018, that compared conducting planning activities while the units are in operation and spending the proposed $187.8 million ($2017) over the next few years against waiting until permanent cessation of operations and then conducting the planning activities. PG&E’s analysis shows that by waiting to conduct the planning activities, the licensee would need to spend significant resources ($166.1 million) on various activities (security, operations, chemical and radiation protection, and fire brigade) that can be avoided by conducting the planning activities while the units are in operation. The licensee also stated that executing on planning and permitting activities between now and permanent shut down would allow physical decommissioning to begin shortly after permanent shut down. The licensee estimates this would reduce the duration of the decommissioning activities by 2 years. Based on the above, the staff finds that this increased cost would result in undue hardship or other costs to the licensee that are significantly in excess of those contemplated when the regulation was adopted as these increased costs can be avoided by granting the exemption request. E. Environmental Considerations In accordance with 10 CFR 51.31(a), the Commission has determined that granting of these exemptions will not have a significant effect on the quality of the human environment (see Environmental Assessment and Finding of No Significant Impact published on August 16, 2019 (84 FR 42025)). IV. Conclusions In consideration of the above, the NRC staff finds that PG&E has provided reasonable assurance that adequate funds will be available for the radiological decommissioning of Diablo Canyon, even with the withdrawal of $187.8 million ($2017) from the Diablo Canyon NDT for planning activities for radiological decommissioning, spent fuel management, and site restoration. Accordingly, the Commission has determined that, pursuant to 10 CFR 50.12(a), the exemptions are authorized by law, will not present an undue risk to the public health and safety, and are E:\FR\FM\17SEN1.SGM 17SEN1 Federal Register / Vol. 84, No. 180 / Tuesday, September 17, 2019 / Notices Craig G. Erlanger, Director, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation. You may inspect and photocopy all written comments, by appointment only, at USPS® Headquarters Library, 475 L’Enfant Plaza SW, 11th Floor North, Washington, DC, 20260. These records are available for review on Monday through Friday, 9 a.m.—4 p.m., by calling 202–268–2906. FOR FURTHER INFORMATION CONTACT: Karen F. Key at (202) 268–7492 or Garry Rodriguez at (202) 268–7281. SUPPLEMENTARY INFORMATION: The Postal Service is proposing to amend Publication 52 in various sections to: 1. Require the use of Label 139, Cremated Remains, on all domestic or international mailpieces containing cremated remains. 2. Eliminate the use of Labels 11–B, 11–F, and 11–HFPU, for domestic shipments containing cremated remains. 3. Limit the additional mailing services for mailpieces containing cremated remains to insurance and return receipt. [FR Doc. 2019–20091 Filed 9–16–19; 8:45 am] Background consistent with the common defense and security. Also, special circumstances are present. Therefore, the Commission hereby grants PG&E exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.82(a)(8)(ii) to allow the licensee to use $187.8 million ($2017) from the Diablo Canyon NDT for decommissioning planning above the 3 percent limitation specified in NRC regulations and for withdrawals from the NDT for planning activities associated with spent fuel management and site restoration. The exemptions are effective upon issuance. Dated at Rockville, Maryland, this 10th day of September 2019. For the Nuclear Regulatory Commission. /RA/ BILLING CODE 7590–01–P POSTAL SERVICE Mailing Cremated Remains Postal Service TM. Notice of prospective revision of standards; invitation to comment. AGENCY: ACTION: The Postal Service is proposing to amend Hazardous, Restricted, and Perishable Mail, Publication 52, in various sections to require markings on mailpieces containing cremated remains, to eliminate the use of USPS-produced Priority Mail Express® labels for domestic shipments, and to limit the use of additional mailing services. DATES: Submit comments on or before October 17, 2019. ADDRESSES: Mail or deliver written comments to the manager, Product Classification, U.S. Postal Service, 475 L’Enfant Plaza SW, Room 4446, Washington, DC 20260–5015. If sending comments by email, include the name and address of the commenter and send to ProductClassification@usps.gov, with a subject line of ‘‘Mailing Cremated Remains.’’ Faxed comments are not accepted. jbell on DSK3GLQ082PROD with NOTICES SUMMARY: Confidentiality All submitted comments and attachments are part of the public record and subject to disclosure. Do not enclose any material in your comments that you consider to be confidential or inappropriate for public disclosure. VerDate Sep<11>2014 17:05 Sep 16, 2019 Jkt 247001 Publication 52 subsection 451.22 provides that a mailpiece containing cremated remains (human or animal) must be shipped by Priority Mail Express or Priority Mail Express International® Service. Publication 52 subsection 451.22b provides that the contents, cremated remains, must be indicated on the applicable customs declaration when addressed to an international destination. However, as provided in subsections 451.22a and 451.22b, markings including the use of Label 139 are optional on both domestic and international mailpieces. Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) section 115.2.0, provides that domestic Priority Mail Express customers have the option to use a USPS-provided Priority Mail Express label (11–B, 11–F, 11–HFPU) or single-ply Priority Mail Express label generated through Click-N-Ship® or other USPS-approved method. DMM subsection 503.1.4.1, provides that mailpieces sent at Priority Mail Express prices are eligible to have Adult Signature Services, Collect on Delivery, additional insurance, and return receipt services added. Domestic Mail Manual section 507.3.0 provides that mailpieces sent at Priority Mail Express prices are eligible for Hold For Pickup service. Proposal To increase the visibility of mailpieces containing cremated remains to postal employees and to ensure those PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 48959 mailpieces are more secure for processing and timely delivery, the Postal Service is proposing to require the use of Label 139 to be affixed to each side (including top and bottom) of a Priority Mail Express or Priority Mail Express International mailpiece containing cremated remains (USPSproduced or customer supplied). As an alternative, the Postal Service is introducing a special Priority Mail Express cremated remains branded box (BOX–CRE) that may be used for domestic or international shipments of cremated remains. The new Priority Mail Express cremated remains branded box will be available as part of a kit that will be offered in two versions. One kit will contain the box and a roll of tape. The other kit will include the box, a self-sealing plastic bag, bubble wrap, tape, and Publication 139, How to Package and Ship Cremated Remains. Both kits can be ordered online at the Postal Store on USPS.com®. To improve service, the Postal Service is proposing to provide an option for retail customers to present a mailpiece containing cremated remains at a Post OfficeTM location and have a shipping label printed and affixed. Customers will continue to have the option to use a single-ply Priority Mail Express label generated through Click-N-Ship or other USPS-approved method. If customers generate a single-ply label, the Postal Service is proposing to require an Intelligent Mail® package barcode (IMpb®) shipping label with the appropriate service type code and banner text above the barcode (see Publication 199) used for cremated remains domestic shipments. The shipping services file must include the appropriate cremated remains threedigit Extra Service Code for domestic and international shipments (see Publication 199). The use of a Priority Mail Express Label 11–B, 11–F, and 11– HFPU, will no longer be accepted for cremated remains domestic shipments. As a result of improving service with the new shipping label requirements, the Postal Service is proposing to limit the extra services available when mailing cremated remains to additional insurance and return receipt, and proposes to eliminate the option to use Hold For Pickup service. Customers will continue to have the option to request a signature. In addition, the Postal Service will update Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) and International Mail Manual (IMM®), and Publication 139, How to Package and Ship Cremated Remains, under separate cover. E:\FR\FM\17SEN1.SGM 17SEN1

Agencies

[Federal Register Volume 84, Number 180 (Tuesday, September 17, 2019)]
[Notices]
[Pages 48955-48959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20091]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-275 and 50-323; NRC-2019-0131]


Pacific Gas and Electric Company; Diablo Canyon Nuclear Power 
Plant Units 1 and 2

AGENCY: Nuclear Regulatory Commission.

ACTION: Exemption; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) has issued 
exemptions in response to a December 13, 2018, request from Pacific Gas 
and Electric Company (PG&E or the licensee) from certain regulatory 
requirements for the Diablo Canyon Nuclear Power Plant, Units 1 and 2 
(Diablo Canyon).

DATES: The exemptions were issued on September 10, 2019.

ADDRESSES: Please refer to Docket ID NRC-2019-0131 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-2019-0131. 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: Balwant K. Singal, Office of Nuclear 
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington DC 
20555-0001; telephone: 301-415-3016; email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the exemption is attached.

    Dated at Rockville, Maryland, this 12th day of September 2019.

    For the Nuclear Regulatory Commission.
Balwant K. Singal,
Senior Project Manager, Plant Licensing Branch IV, Division of 
Operating Reactor Licensing, Office of Nuclear Reactor Regulation.

ATTACHMENT--Exemptions

NUCLEAR REGULATORY COMMISSION

Docket Nos. 50-275 and 50-323

Pacific Gas and Electric Company, Diablo Canyon Nuclear Power Plant, 
Units 1 and 2 Exemption

I. Background

    Pacific Gas and Electric Company (PG&E or the licensee) is the 
holder of Facility Operating License Nos. DPR-80 and DPR-82, which 
authorizes operation of Diablo Canyon Nuclear Power Plant (Diablo 
Canyon), Units 1 and 2, respectively. The licenses provide, among other 
things, that Diablo Canyon, Units 1 and 2 are subject to all rules, 
regulations, and orders of the U.S. Nuclear Regulatory Commission (NRC 
or the Commission) now or hereafter in

[[Page 48956]]

effect. Diablo Canyon is located in San Luis Obispo, California.
    By letter dated November 27, 2018 (Agencywide Documents Access and 
Management System (ADAMS) Accession No. ML18331A553), the licensee 
informed the NRC of its intent to permanently cease operations for 
Diablo Canyon, Units 1 and 2, on November 2, 2024, for Unit 1, and 
August 26, 2025, for Unit 2.
    By letter dated January 29, 2019 (ADAMS Accession No. ML19029A020), 
PG&E notified the NRC that a voluntary petition for relief under 
Chapter 11 of Title 11 of the United States Code was filed on January 
29, 2019, in the United States Bankruptcy Court for the Northern 
District of California. The NRC acknowledged PG&E's bankruptcy 
notification on February 5, 2019 (ADAMS Accession No. ML19031C816). By 
letter dated March 14, 2019, the NRC staff stated that it does not 
anticipate that the PG&E bankruptcy filing, including that of its 
parent company, will have any adverse safety impacts at Diablo Canyon, 
Units 1 and 2 (ADAMS Accession No. ML19074A109). Additionally, the NRC 
staff stated that the bankruptcy filing does not relieve PG&E of its 
obligations to comply with NRC requirements and that PG&E must continue 
to comply with all of its obligations under the Atomic Energy Act of 
1954 (AEA) as amended, and the NRC's regulations, including the 
obligations relating to decommissioning financial assurance. The NRC 
continues to monitor PG&E's decommissioning financial assurance for 
Diablo Canyon and continued compliance with NRC's decommissioning 
funding requirements.

II. Request/Action

    By letter dated December 13, 2018 (ADAMS Accession No. 
ML18347B552), PG&E submitted a request for exemptions from the 
requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.82(a)(8)(ii) for 
Diablo Canyon, Units 1 and 2. The exemptions would allow the licensee 
to use an amount of funds from the Diablo Canyon Nuclear 
Decommissioning Trust (NDT) \1\ for decommissioning planning above the 
amount limitations specified in NRC regulations for operating reactors 
and use withdrawals from the NDT for planning activities associated 
with spent fuel management and site restoration. Overall, the proposed 
action would allow PG&E to withdraw $187.8 million ($2017) from the 
Diablo Canyon NDT to fund radiological decommissioning, spent fuel 
management, and site restoration planning activities necessary prior to 
permanent cessation of operations of Diablo Canyon, Units 1 and 2, in 
2024 and 2025, respectively.
---------------------------------------------------------------------------

    \1\ The NRC notes that decommissioning trust funds in the NDT 
are not property of PG&E's estate and are held in trust for the 
exclusive purpose of providing funds for the decommissioning of the 
nuclear plants. See 10 CFR 50.75.
---------------------------------------------------------------------------

    According to the application, planning activities necessary to 
support direct transition to physical decommissioning upon permanent 
shut down of Diablo Canyon, Units 1 and 2, include: Obtaining revisions 
to NRC licenses and requirements; obtaining state and local permits 
required for decommissioning activities and supporting required 
stakeholder processes related to future land use and disposition of 
facilities; completing engineering design, work plans, technical 
evaluations, and procurement to support several major, critical 
decommissioning projects scheduled at the front end of the 
decommissioning effort; developing and supporting decommissioning cost 
estimates and supporting nuclear decommissioning proceedings at the 
California Public Utilities Commission (CPUC); and developing detailed 
executable work plans for decommissioning work, revising plant 
processes and procedures as necessary.
    PG&E has estimated that a total of $187.8 million ($2017) would be 
required to be spent on pre-shutdown planning activities; $148.4 
million would be for radiological decommissioning planning activities, 
and $39.4 million would be for spent fuel management and site 
restoration planning activities. The estimated $148.4 million amount is 
more than 3 percent of the generic minimum decommissioning amount 
calculated for an operating reactor using the formula set forth by NRC 
regulations at 10 CFR 50.75. Furthermore, withdrawals from the 
decommissioning trust fund cannot be used to fund the PG&E estimated 
$39.4 million for spent fuel management and site restoration planning 
activities absent (1) a clear indication that monies in the fund were 
collected for those purposes and are clearly and consistently accounted 
for separately,\2\ or (2) an exemption from the requirements of 10 CFR 
50.82(a)(8)(i)(A) for use of funds for those purposes.
---------------------------------------------------------------------------

    \2\ The NRC does not preclude the commingling of funds 
accumulated to comply with NRC radiological decommissioning 
requirements and funds accumulated to address site restoration costs 
and spent fuel management costs, as long as the licensee is able to 
identify and account for the NRC radiological decommissioning funds 
that are contained within its single account. See NRC Regulatory 
Issue Summary 2001-07, Revision 1, ``10 CFR 50.75 Reporting and 
Recordkeeping for Decommissioning Planning,'' dated January 8, 2009 
(ADAMS Accession No. ML083440158); Regulatory Guide 1.184, Revision 
1, ``Decommissioning of Nuclear Power Reactors,'' dated October 2013 
(ADAMS Accession No. ML13144A840).
---------------------------------------------------------------------------

    The requirements of 10 CFR 50.82(a)(8)(ii) restrict the use of the 
NDT for decommissioning planning to 3 percent of the generic minimum 
decommissioning amount calculated using the formula set forth by the 
regulations at 10 CFR 50.75. For licensees that have submitted the 
certifications required under 10 CFR 50.82(a)(1) and commencing 90 days 
after the NRC has received the Post-Shutdown Decommissioning Activities 
Report, an additional 20 percent may be used. A site-specific 
decommissioning cost estimate must be submitted to the NRC prior to the 
licensee using any funding in excess of these amounts. Furthermore, as 
required by 10 CFR 50.82(a)(8)(i)(A), decommissioning trust funds may 
be used by the licensee if the withdrawals are for legitimate 
decommissioning activities, consistent with the definition of 
decommissioning in 10 CFR 50.2. The definition in 10 CFR 50.2 states, 
that ``Decommission means to remove a facility or site safely from 
service and reduce residual radioactivity to a level that permits (1) 
Release of the property for unrestricted use and termination of the 
license; or (2) Release of the property under restricted conditions and 
termination of the license.''
    This definition addresses radiological decommissioning and does not 
include activities associated with irradiated fuel management or site 
restoration activities. Therefore, these regulations would limit 
withdrawals from the Diablo Canyon NDT to $37.2 million ($18.6 million 
per unit) and would allow spending only on planning activities for 
radiological decommissioning. In addition, as noted above, the licensee 
does not plan to permanently cease operations for Diablo Canyon, Units 
1 and 2, until November 2, 2024 for Unit 1, and August 26, 2025, for 
Unit 2. Therefore, exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.82(a)(8)(ii) are needed to allow the licensee to use an amount of 
funds from the Diablo Canyon NDT for decommissioning planning above the 
3 percent limitation specified in NRC regulations and to use 
withdrawals from the NDT for planning activities associated with spent 
fuel management and site restoration.

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)

[[Page 48957]]

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. These special circumstances, as stated in 10 
CFR 50.12(a)(2) include, among other things: (a) ``Application of the 
regulation in the particular circumstances would not serve the 
underlying purpose of the rule or is not necessary to achieve the 
underlying purpose of the rule''; and (b) ``Compliance would result in 
undue hardship or other costs that are significantly in excess of those 
contemplated when the regulation was adopted, or that are significantly 
in excess of those incurred by others similarly situated.''

A. The Exemptions Are Authorized by Law

    The exemptions would allow PG&E to withdraw $187.8 million ($2017) 
from the Diablo Canyon NDT to fund planning activities for radiological 
decommissioning, spent fuel management, and site restoration prior to 
permanent cessation of operations. As stated above, 10 CFR 50.12 allows 
the NRC to grant exemptions from the requirements of 10 CFR part 50. 
The NRC staff has determined, as explained in Section D below, that 
there is reasonable assurance of adequate funding for radiological 
decommissioning because PG&E's withdrawal of $187.8 million ($2017) 
from the Diablo Canyon NDT for planning activities for radiological 
decommissioning, spent fuel management, and site restoration will not 
adversely impact PG&E's ability to complete radiological 
decommissioning within 60 years of permanent cessation of operations 
and terminate the Diablo Canyon licenses. Accordingly, the exemption is 
authorized by law because granting the licensee's proposed exemptions 
will not result in a violation of the Atomic Energy Act of 1954, as 
amended, or the Commission's regulations.

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

    The proposed exemptions would allow PG&E to withdraw $187.8 million 
($2017) from the Diablo Canyon NDT to fund planning activities for 
radiological decommissioning, spent fuel management, and site 
restoration between now and permanent cessation of operations, to 
support a safe and efficient transition from operational to 
decommissioning status. PG&E has estimated that a total of $187.8 
million ($2017) would be needed for pre-shutdown planning activities; 
$148.4 million would be for radiological decommissioning planning 
activities, and $39.4 million would be for spent fuel management and 
site restoration planning activities. According to the licensee, 
spending the $187.8 million now will save approximately $166.1 million 
($2017) in overall decommissioning cost mainly due to savings on 
security, fire protection, and overall staffing costs mainly due to 
savings on security, fire protection, and overall staffing costs.
    As explained in further detail in Section D below, based on the NRC 
staff's review of PG&E's exemption request and site-specific cost 
estimate and the staff's independent cash flow analysis, the NRC staff 
finds that PG&E's withdrawal of $187.8 million ($2017) from the Diablo 
Canyon NDT for planning activities for radiological decommissioning, 
spent fuel management, and site restoration, will not adversely impact 
PG&E's ability to complete radiological decommissioning within 60 years 
of permanent cessation of operations and terminate the Diablo Canyon 
licenses. Therefore, the requested exemptions will not present an undue 
risk to public health and safety if granted.
    In addition, granting the requested exemptions will not alter the 
operation of any plant equipment or systems and, therefore, does not 
present an undue risk to safety. The proposed exemptions do not 
introduce any new industrial, radiological, chemical, or radiological 
hazards that would present a health and safety risk nor would granting 
the exemptions result in modifying or removing design or operational 
controls or safeguards that are intended to mitigate onsite hazards. 
This exemption does not diminish the effectiveness of other regulations 
that ensure available funding for decommissioning, including 10 CFR 
50.82(a)(6), which prohibits licensees from performing any 
decommissioning activities that could foreclose release of the site for 
possible unrestricted use, result in significant environmental impacts 
not previously reviewed, or result in there no longer being reasonable 
assurance that adequate funds will be available for decommissioning. 
Therefore, the requested exemptions will not present an undue risk to 
public health and safety if these exemptions are granted.

C. The Exemptions Are Consistent With the Common Defense and Security

    The exemptions, allowing withdrawal of $187.8 million ($2017) of 
the Diablo Canyon NDT for planning activities for radiological 
decommissioning, spent fuel management, and site restoration do not 
alter the design, function, or operation of any structures or plant 
equipment that is necessary to maintain the safe and secure status of 
the plant and will not adversely affect PG&E's ability to physically 
secure the site or protect special nuclear material. Therefore, the 
common defense and security is not impacted by the exemptions.

D. Special Circumstances

    The regulation under 10 CFR 50.12(a)(2) states, in part, that 
``[t]he Commission will not consider granting an exemption unless 
special circumstances are present,'' and identifies, in 10 CFR 
50.12(a)(2)(i)-(vi), when special circumstances are present. Special 
circumstances, in accordance with 10 CFR 50.12(a)(2)(ii), are present 
whenever 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 50.82(a)(8)(i)(A) and 10 CFR 
50.82(a)(8)(ii) is to provide reasonable assurance that adequate funds 
will be available for radiological decommissioning of power reactors 
within 60 years of permanent cessation of operations. Strict 
application of these requirements would limit withdrawal from the 
Diablo Canyon NDT to $37.2 million ($18.6 million per unit) and would 
allow spending only on planning activities for radiological 
decommissioning.
    The NRC staff performed an independent cash flow analysis using 
information provided in PG&E's cash flow statement in Enclosure 2 of 
the exemption request, dated December 13, 2018, and information 
provided in PG&E's site-specific cost estimate submitted by letter 
dated March 26, 2019 (ADAMS Accession No. ML19094B780). The balance in 
the NDT as of December 31, 2018, was $1.31 billion for Unit 1 and $1.71 
billion for Unit 2. The site-specific cost estimate states that PG&E 
plans to deposit $226.7 million per year into the Unit 1 NDT in 2020-
2024, and $151.1 million per year into the Unit 2 NDT in 2020-2025. The 
site-specific cost estimate also states that the estimated costs for 
radiological decommissioning are $1.581 billion for Unit 1 and $1.578 
billion for Unit 2.
    Using the costs for radiological decommissioning for both units 
provided in the site-specific cost estimate, a 2% rate of return on the 
NDT (as allowed by 10 CFR 50.75(e)(1)(ii)), and considering withdrawal 
of $187.8

[[Page 48958]]

million ($2017) from the Diablo Canyon NDT for the specified planning 
activities, the NRC staff determined that the balance in the NDTs at 
the completion of radiological decommissioning in 2038 is expected to 
be approximately $1.046 billion for Unit 1 and $1.117 billion for Unit 
2 indicating that the licensee will have sufficient funds to complete 
radiological decommissioning. In addition, the staff's independent cash 
flow analysis projects that the Diablo Canyon NDT would contain 
approximately $3.68 billion in 2076 (for both units) when PG&E projects 
the site will be fully decommissioned, and all spent fuel will be 
removed from the site. Therefore, the NRC staff finds that there is 
reasonable assurance of adequate funding for radiological 
decommissioning because PG&E's withdrawal of $187.8 million ($2017) 
from the Diablo Canyon NDT for radiological decommissioning, spent fuel 
management, and site restoration planning activities will not adversely 
impact PG&E's ability to complete radiological decommissioning within 
60 years of permanent cessation of operations and terminate the Diablo 
Canyon licenses.
    In addition, under 10 CFR 50.75(f), the licensee will be required 
to submit an annual report regarding the status of decommissioning 
funding for Unit 1, beginning in 2020, and for Unit 2, beginning in 
2021 because the units will be within five years of permanently 
shutting down. Also, under 10 CFR 50.75(h)(2), the licensee is required 
to provide the NRC with written notice at least 30 business days prior 
to any disbursement from the NDT for spent fuel management and site 
restoration planning activities. Lastly, the NRC notes that PG&E is an 
electric utility as defined by 10 CFR 50.2, and therefore, has the 
ability to address any future shortfall in the NDT with the CPUC (who 
sets the electric rates for PG&E), should that be necessary in the 
future.
    In transitioning to and planning for decommissioning activities, 
several power reactor licensees have requested exemptions from the 
decommissioning funding assurance requirements in 10 CFR 50.75 and 10 
CFR 50.82 to allow for the withdrawal of funds from their NDTs for 
expenses unrelated to radiological decommissioning as defined in 10 CFR 
50.2, such as for spent fuel management and site restoration. 
Generally, the NRC has granted these exemption requests, on a case-by-
case basis, finding reasonable assurance that even after the proposed 
withdrawals of funds for the requested use (e.g., spent fuel and site 
restoration), sufficient funding remains in the NDT to complete 
radiological decommissioning and terminate the license.
    The Commission addresses a similar issue in Staff Requirements 
Memorandum (SRM) SECY-02-0085, ``Recent Issues With Respect to 
Decommissioning Funding Assurance That Have Arisen as Part of License 
Transfer Applications and Other Licensing Requests,'' dated January 3, 
2003 (ADAMS Accession No. ML030030539). In that SRM, the Commission 
stated that, ``[t]he staff should continue to review requests for 
withdrawal or non-transfer of funds from decommissioning trusts on a 
case-by-case basis,'' and ``. . . while a trust is accumulating, our 
regulations should be interpreted as strictly as possible to preclude 
withdrawals . . . (both radiological and non-radiological).'' The staff 
recognizes that PG&E's exemption request has been submitted by the 
licensee during the operational life and decommissioning funding-
accumulating phase of the license. However, given the unique 
circumstances of PG&E's request, including the known date of shutdown 
of the units in advance, the time period until the units are 
permanently shut down, PG&E's projected cost savings of $166.1 million 
($2017), the current balance of the NDT, the projected balance of the 
NDT at license termination based on the staff's independent cash flow 
analysis, and PG&E's ability to address any future shortfalls in the 
NDT with the CPUC, the NRC staff determined that the request is 
justified under the SRM.
    In summary, the NRC staff found that reasonable assurance exists 
that adequate funds will be available in the Diablo Canyon NDT to 
complete radiological decommissioning and terminate the Part 50 
license, with sufficient funding available beyond that required under 
10 CFR 50.75 to pay for PG&E's proposed planning activities for 
radiological decommissioning, spent fuel management, and site 
restoration. Accordingly, the NRC staff concludes that application of 
the 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.82(a)(8)(ii) requirements 
that limit the withdrawal of funds from the Diablo Canyon NDT for 
decommissioning planning to 3 percent for operating reactors and 
preclude withdrawals from the NDT for planning activities associated 
with spent fuel management and site restoration are not necessary to 
achieve the underlying purpose of the rule; thus, special circumstances 
are present supporting approval of the exemption request.
    Special circumstances, in accordance with 10 CFR 50.12(a)(2)(iii), 
are present whenever compliance would result in undue hardship or other 
costs that are significantly in excess of those contemplated when the 
regulation was adopted, or that are significantly in excess of those 
incurred by others who are similarly situated.
    The NRC staff analyzed PG&E's cash flow statements in Enclosure 3 
of the application dated December 13, 2018, that compared conducting 
planning activities while the units are in operation and spending the 
proposed $187.8 million ($2017) over the next few years against waiting 
until permanent cessation of operations and then conducting the 
planning activities. PG&E's analysis shows that by waiting to conduct 
the planning activities, the licensee would need to spend significant 
resources ($166.1 million) on various activities (security, operations, 
chemical and radiation protection, and fire brigade) that can be 
avoided by conducting the planning activities while the units are in 
operation. The licensee also stated that executing on planning and 
permitting activities between now and permanent shut down would allow 
physical decommissioning to begin shortly after permanent shut down. 
The licensee estimates this would reduce the duration of the 
decommissioning activities by 2 years. Based on the above, the staff 
finds that this increased cost would result in undue hardship or other 
costs to the licensee that are significantly in excess of those 
contemplated when the regulation was adopted as these increased costs 
can be avoided by granting the exemption request.

E. Environmental Considerations

    In accordance with 10 CFR 51.31(a), the Commission has determined 
that granting of these exemptions will not have a significant effect on 
the quality of the human environment (see Environmental Assessment and 
Finding of No Significant Impact published on August 16, 2019 (84 FR 
42025)).

IV. Conclusions

    In consideration of the above, the NRC staff finds that PG&E has 
provided reasonable assurance that adequate funds will be available for 
the radiological decommissioning of Diablo Canyon, even with the 
withdrawal of $187.8 million ($2017) from the Diablo Canyon NDT for 
planning activities for radiological decommissioning, spent fuel 
management, and site restoration.
    Accordingly, the Commission has determined that, pursuant to 10 CFR 
50.12(a), the exemptions are authorized by law, will not present an 
undue risk to the public health and safety, and are

[[Page 48959]]

consistent with the common defense and security. Also, special 
circumstances are present. Therefore, the Commission hereby grants PG&E 
exemptions from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.82(a)(8)(ii) to allow the licensee to use $187.8 million ($2017) 
from the Diablo Canyon NDT for decommissioning planning above the 3 
percent limitation specified in NRC regulations and for withdrawals 
from the NDT for planning activities associated with spent fuel 
management and site restoration.
    The exemptions are effective upon issuance.

    Dated at Rockville, Maryland, this 10th day of September 2019.

    For the Nuclear Regulatory Commission.

    /RA/

Craig G. Erlanger,
Director, Division of Operating Reactor Licensing, Office of Nuclear 
Reactor Regulation.
[FR Doc. 2019-20091 Filed 9-16-19; 8:45 am]
 BILLING CODE 7590-01-P
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