Holtec Decommissioning International, LLC; Palisades Nuclear Plant, 71930-71933 [2021-27491]

Agencies

• NUCLEAR REGULATORY COMMISSION

[Federal Register Volume 86, Number 241 (Monday, December 20, 2021)]
[Notices]
[Pages 71930-71933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27491]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-255; NRC-2021-0206]


Holtec Decommissioning International, LLC; Palisades Nuclear 
Plant

AGENCY: Nuclear Regulatory Commission.

ACTION: Exemption; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
exemption in response to a December 23, 2020, request from Holtec 
Decommissioning International, LLC (HDI). The exemption permits HDI to 
make withdrawals from the Palisades Nuclear Plant (PNP) Decommissioning 
Trust Fund (DTF) for spent fuel management and site restoration 
activities at PNP without prior notification to the NRC. This exemption 
is effective upon issuance, but only applies to HDI upon the 
consummation of the indirect transfer of the license for PNP to Holtec 
International and the transfer of the operating authority under the 
license to HDI.

DATES: The exemption was issued on December 13, 2021.

ADDRESSES: Please refer to Docket ID NRC-2021-0206 when contacting the 
NRC about the availability of information regarding this document. You 
may obtain publicly available information related to this document by 
any of the following methods:
     Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2021-0206. Address 
questions about Dockets IDs in Regulations.gov to Stacy Schumann; 
telephone: 301-415-0624; 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, by appointment, at the NRC's PDR, Room P1 B35, One White 
Flint North, 11555 Rockville Pike, Rockville, Maryland 20852. To make 
an appointment to visit the PDR, please send an email to 
[email protected] or call 1-800-397-4209 or 301-415-4737, between 
8:00 a.m. and 4:00 p.m. (ET), Monday through Friday, except Federal 
holidays.

[[Page 71931]]


FOR FURTHER INFORMATION CONTACT: Scott P. Wall, Office of Nuclear 
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001; telephone: 301-415-2855; email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the exemption is attached.

    Dated: December 15, 2021.

    For the Nuclear Regulatory Commission.
Scott P. Wall,
Senior Project Manager, Plant Licensing Branch III, Division of 
Operating Reactor Licensing, Office of Nuclear Reactor Regulation.

NUCLEAR REGULATORY COMMISSION

Docket No. 50-255

Holtec Decommissioning International, LLC

Palisades Nuclear Plant

Exemption

I. Background.

    The Palisades Nuclear Plant (PNP) is a pressurized-water reactor 
located in Van Buren County, Michigan. Entergy Nuclear Operations, Inc. 
(ENOI) and Entergy Nuclear Palisades, LLC (ENP) hold the U.S. Nuclear 
Regulatory Commission (NRC, the Commission) license for PNP, Renewed 
Facility Operating License No. DPR-20. This license is subject to the 
rules, regulations, and orders of the NRC. Operation of PNP is 
scheduled to permanently cease by May 31, 2022.
    By application dated December 23, 2020 (Agencywide Documents Access 
and Management System (ADAMS) Accession No. ML20358A075), ENOI, on 
behalf of itself, ENP, Holtec International (Holtec), and Holtec 
Decommissioning International, LLC (HDI), requested that the NRC 
consent to (1) the indirect transfer of control of Renewed Facility 
Operating License No. DPR-20 for PNP, the general license for the PNP 
Independent Spent Fuel Storage Installation (ISFSI), Facility Operating 
License No. DPR-6 for Big Rock Point Plant (Big Rock Point), and the 
general license for the Big Rock Point ISFSI (referred to collectively 
as the Sites and the licenses) to Holtec; and (2) the transfer of 
ENOI's operating authority (i.e., its authority to conduct licensed 
activities at the Sites) to HDI.
    In support of the license transfer application, by letter dated 
December 23, 2020 (ADAMS Accession No. ML20358A232), HDI provided to 
the NRC a post-shutdown decommissioning activities report (PSDAR) and 
site-specific decommissioning cost estimate (SSCE) for PNP. These 
documents reflected HDI's proposal to decommission PNP over a period 
(inclusive of 2022) of 20 years if the license transfer application is 
approved and the proposed license transfer transaction is consummated. 
Specifically, the decommissioning of PNP would begin following the 
permanent cessation of power operations in 2022 and the majority of 
license termination activities would be completed by 2040 (i.e., 
releasing for unrestricted use the entirety of the PNP site with the 
exception of the ISFSI). HDI would then remove the fuel and Greater 
than Class C waste from the site, decommission the ISFSI, terminate the 
NRC license, and release the remainder of the site for unrestricted use 
in 2041.

II. Request/Action.

    In support of the license transfer application, in addition to 
providing a PSDAR and an SSCE, by letter dated December 23, 2020 (ADAMS 
Accession No. ML20358A239), HDI also submitted to the NRC a request for 
exemption from specific requirements of sections 50.82(a)(8)(i)(A) and 
50.75(h)(1)(iv) of title 10 of the Code of Federal Regulations (10 
CFR). The exemption from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) would permit HDI to make withdrawals from the PNP 
Decommissioning Trust Fund (DTF) for spent fuel management and site 
restoration activities at PNP, in accordance with the HDI SSCE. The 
exemption from 10 CFR 50.75(h)(1)(iv) would also permit HDI to make 
these withdrawals without prior notification to the NRC, similar to 
withdrawals for decommissioning activities made in accordance with 10 
CFR 50.82(a)(8). The exemption would only apply to HDI if and when the 
proposed license transfer transaction is consummated.
    As part of its exemption request, HDI provided Table 1, which shows 
the annual cash flows for the PNP DTF while conducting decommissioning 
activities under the proposal to decommission PNP discussed in the HDI 
PSDAR. The table contains the projected withdrawals from the PNP DTF 
needed to cover the estimated costs for PNP for radiological 
decommissioning, spent fuel management, and site restoration activities 
in accordance with the HDI SSCE. By letter dated March 25, 2021 (ADAMS 
Accession No. ML21084A811), pursuant to 10 CFR 50.75(f)(1), ENOI 
reported to the NRC the balance of the PNP DTF as of December 31, 2020. 
The NRC staff considered all of this information in its review of the 
exemption request.
    The requirements of 10 CFR 50.82(a)(8)(i)(A) restrict the use of 
DTF withdrawals to expenses related to legitimate decommissioning 
activities consistent with the definition of decommissioning that 
appears in 10 CFR 50.2, ``Definitions.'' The definition of 
``decommission'' in 10 CFR 50.2 is:
    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 does not include activities associated with spent 
fuel management and site restoration activities. The requirements of 10 
CFR 50.75(h)(1)(iv) also restrict the use of DTF disbursements (other 
than for ordinary administrative costs and other incidental expenses of 
the fund in connection with the operation of the fund) to 
decommissioning expenses until final radiological decommissioning is 
completed. Therefore, an exemption from 10 CFR 50.82(a)(8)(i)(A) and 10 
CFR 50.75(h)(1)(iv) is needed to allow HDI to use funds from the PNP 
DTF for spent fuel management and site restoration activities at PNP. 
The requirements of 10 CFR 50.75(h)(1)(iv) further provide that, except 
for withdrawals being made under 10 CFR 50.82(a)(8) or for payments of 
ordinary administrative costs and other incidental expenses of the fund 
in connection with the operation of the fund, no disbursement may be 
made from the DTF without written notice to the NRC at least 30 working 
days in advance. Therefore, an exemption from 10 CFR 50.75(h)(1)(iv) is 
also needed to allow HDI to use funds from the PNP DTF for spent fuel 
management and site restoration activities at PNP without prior NRC 
notification.

III. Discussion.

    Pursuant to 10 CFR 50.12, the Commission may, upon application by 
any interested person or upon its own initiative, grant exemptions from 
the requirements of 10 CFR part 50 (1) when the exemptions are 
authorized by law, will not present an undue risk to the public health 
and safety, and are consistent with the common defense and security; 
and (2) when any of the special circumstances listed in 10 CFR 
50.12(a)(2) are present. These special circumstances include, among 
others:
    (ii) Application of the regulation in the particular circumstances 
would not

[[Page 71932]]

serve the underlying purpose of the rule or is not necessary to achieve 
the underlying purpose of the rule; and
    (iii) 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. Authorized by Law

    The requested exemption from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) would allow HDI to use a portion of the funds from the 
PNP DTF for spent fuel management and site restoration activities at 
PNP without prior notice to the NRC in the same manner that withdrawals 
are made under 10 CFR 50.82(a)(8) for decommissioning activities. As 
stated above, 10 CFR 50.12 allows the NRC to grant exemptions from the 
requirements of 10 CFR part 50 when the exemptions are authorized by 
law. The NRC staff has determined, as explained below, that granting 
HDI's proposed exemption will not result in a violation of the Atomic 
Energy Act of 1954, as amended, or the Commission's regulations. 
Therefore, the exemption is authorized by law.

B. No Undue Risk to Public Health and Safety

    The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) is to provide reasonable assurance that adequate funds 
will be available for the radiological decommissioning of power 
reactors. Based on the HDI SSCE and the cash flow analyses, use of a 
portion of the PNP DTF for spent fuel management and site restoration 
activities at PNP will not adversely impact HDI's ability to complete 
radiological decommissioning within 60 years and terminate the PNP 
license. Furthermore, an exemption from 10 CFR 50.75(h)(1)(iv) to allow 
HDI to make withdrawals from the PNP DTF for spent fuel management and 
site restoration activities at PNP without prior written notification 
to the NRC will not affect the sufficiency of funds in the DTF to 
accomplish radiological decommissioning, because such withdrawals are 
still constrained by the provisions of 10 CFR 50.82(a)(8)(i)(B)--(C) 
and are reviewable under the annual reporting requirements of 10 CFR 
50.82(a)(8)(v)--(vii).
    Based on the above, there are no new accident precursors created by 
using the PNP DTF in the proposed manner. Thus, the probability of 
postulated accidents is not increased. Also, based on the above, the 
consequences of postulated accidents are not increased. No changes are 
being made in the types or amounts of effluents that may be released 
offsite. There is no significant increase in occupational or public 
radiation exposure. Therefore, the requested exemption will not present 
an undue risk to public health and safety.

C. Consistent With the Common Defense and Security

    The requested exemption would allow HDI to use funds from the PNP 
DTF for spent fuel management and site restoration activities at PNP. 
Spent fuel management under 10 CFR 50.54(bb) is an integral part of the 
planned HDI decommissioning and license termination process and will 
not adversely affect HDI's ability to physically secure the site or 
protect special nuclear material. This change to enable the use of a 
portion of the funds from the DTF for spent fuel management and site 
restoration activities has no relation to security issues. Therefore, 
the common defense and security is not impacted by the requested 
exemption.

D. Special Circumstances

    Special circumstances, in accordance with 10 CFR 50.12(a)(2)(ii), 
are present whenever application of the regulation in the particular 
circumstances is not necessary to achieve the underlying purpose of the 
regulation.
    The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv), which restrict withdrawals from DTFs to expenses for 
radiological decommissioning activities, is to provide reasonable 
assurance that adequate funds will be available for radiological 
decommissioning of power reactors and license termination. Strict 
application of these requirements would prohibit the withdrawal of 
funds from the PNP DTF for activities other than radiological 
decommissioning activities at PNP, such as for spent fuel management 
and site restoration activities, until final radiological 
decommissioning at PNP has been completed.
    The PNP DTF contained $553.84 million as of December 31, 2020. 
HDI's analyses project the total radiological decommissioning costs at 
PNP to be approximately $443,215,000 (in 2020 dollars), including the 
costs for decommissioning the ISFSI. As required by 10 CFR 50.54(bb), 
HDI estimated the costs associated with spent fuel management at PNP to 
be approximately $166,122,000 (in 2020 dollars).
    The NRC staff performed independent cash flow analyses of the PNP 
DTF over the proposed 20-year decommissioning period (assuming an 
annual real rate of return of 2 percent, as allowed by 10 CFR 
50.75(e)(1)(ii)) and determined the projected earnings of the DTF. The 
NRC staff confirmed that the current funds in the DTF and projected 
earnings provide reasonable assurance of adequate funding to complete 
all NRC-required radiological decommissioning activities at PNP and 
also to pay for spent fuel management and site restoration activities. 
Therefore, the NRC staff finds that HDI has provided reasonable 
assurance that adequate funds will be available for the radiological 
decommissioning of PNP, even with the disbursement of funds from the 
DTF for spent fuel management and site restoration activities. 
Consequently, the NRC staff concludes that application of the 
requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv), 
that funds from the DTF only be used for radiological decommissioning 
activities and not for spent fuel management and site restoration 
activities, is not necessary to achieve the underlying purpose of the 
rule. Thus, special circumstances are present supporting approval of 
the exemption request.
    In its submittal, HDI also requested exemption from the requirement 
of 10 CFR 50.75(h)(1)(iv) concerning prior written notification to the 
NRC of withdrawals from DTFs for activities other than radiological 
decommissioning. The underlying purpose of notifying the NRC prior to 
such withdrawals of funds from DTFs is to provide an opportunity for 
NRC intervention, when deemed necessary, if the withdrawals are for 
expenses other than those authorized by 10 CFR 50.75(h)(1)(iv) and 10 
CFR 50.82(a)(8) that could result in there being insufficient funds in 
the DTFs to accomplish radiological decommissioning.
    By granting the exemption to 10 CFR 50.75(h)(1)(iv) and 10 CFR 
50.82(a)(8)(i)(A), the NRC staff considers that withdrawals consistent 
with HDI's submittal dated December 23, 2020, are authorized. As stated 
previously, the NRC staff determined that there are sufficient funds in 
the DTF to complete radiological decommissioning activities, as well as 
to conduct spent fuel management and site restoration activities, 
consistent with HDI's PSDAR, SSCE, and December 23, 2020, exemption 
request. Pursuant to the requirements in 10 CFR 50.82(a)(8)(v) and 
(vii), licensees are required to monitor and annually report to the NRC 
the status of the DTF and the licensee's funding for spent fuel 
management. These reports provide the NRC staff

[[Page 71933]]

with awareness of, and the ability to take action on, any actual or 
potential funding deficiencies. Additionally, 10 CFR 50.82(a)(8)(vi) 
requires that the annual financial assurance status report must include 
additional financial assurance to cover the estimated cost of 
completion if the sum of the balance of any remaining decommissioning 
funds, plus earnings on such funds calculated at not greater than a 2-
percent real rate of return, together with the amount provided by other 
financial assurance methods being relied upon, does not cover the 
estimated cost to complete the decommissioning. The requested exemption 
would not allow the withdrawal of funds from the DTF for any other 
purpose that is not currently authorized in the regulations without 
prior notification to the NRC. Therefore, the granting of the exemption 
to 10 CFR 50.75(h)(1)(iv) to allow HDI to make withdrawals from the PNP 
DTF to cover authorized expenses for spent fuel management and site 
restoration activities at PNP without prior written notification to the 
NRC will still meet the underlying purpose of the regulation.
    Special circumstances, in accordance with 10 CFR 50.12(a)(2)(iii), 
are present whenever compliance would result in undue hardship or other 
costs that are significantly in excess of those contemplated when the 
regulation was adopted, or that are significantly in excess of those 
incurred by others similarly situated. HDI states that the DTF contains 
funds in excess of the estimated costs of radiological decommissioning 
and that these excess funds are needed for spent fuel management and 
site restoration activities. The NRC does not preclude the use of funds 
from the DTF in excess of those needed for radiological decommissioning 
for other purposes, such as for spent fuel management or site 
restoration activities.
    The NRC has stated that funding for spent fuel management and site 
restoration activities may be commingled in DTFs, provided that the 
licensee is able to identify and account for the radiological 
decommissioning funds separately from the funds set aside for spent 
fuel management and site restoration activities (see NRC Regulatory 
Issue Summary 2001-07, Rev. 1, ``10 CFR 50.75 Reporting and 
Recordkeeping for Decommissioning Planning,'' dated January 8, 2009 
(ADAMS Accession No. ML083440158), and Regulatory Guide 1.184, Revision 
1, ``Decommissioning of Nuclear Power Reactors,'' dated October 2013 
(ADAMS Accession No. ML13144A840)). Preventing access to those excess 
funds in DTFs because spent fuel management and site restoration 
activities are not associated with radiological decommissioning would 
create an unnecessary financial burden without any corresponding safety 
benefit. The adequacy of the PNP DTF to cover the cost of activities 
associated with spent fuel management and site restoration, in addition 
to radiological decommissioning, is supported by the HDI SSCE. If HDI 
cannot use the PNP DTF for spent fuel management and site restoration 
activities, it would need to obtain additional funding that would not 
be recoverable from the DTF, or it would have to modify its 
decommissioning approach and methods. The NRC staff concludes that 
either outcome would impose an unnecessary and undue burden 
significantly in excess of that contemplated when 10 CFR 
50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) were adopted.
    The underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) would be achieved by allowing HDI to use a portion of 
the PNP DTF for spent fuel management and site restoration activities 
at PNP without prior NRC notification, and compliance with the 
regulations would result in an undue hardship or other costs that are 
significantly in excess of those contemplated when the regulations were 
adopted. Thus, the special circumstances in 10 CFR 50.12(a)(2)(ii) and 
10 CFR 50.12(a)(2)(iii) exist and support the approval of the requested 
exemption.

E. Environmental Considerations

    In accordance with 10 CFR 51.31(a), the Commission has determined 
that granting the exemption will not have a significant effect on the 
quality of the human environment (see Environmental Assessment and 
Finding of No Significant Impact published in the Federal Register on 
November 26, 2021 (86 FR 67503)).

IV. Conclusions.

    In consideration of the above, the NRC staff finds that the 
proposed exemption confirms the adequacy of funding in the PNP DTF, 
considering growth, to complete radiological decommissioning of the 
site and to terminate the licenses and also to cover estimated spent 
fuel management and site restoration activities.
    Accordingly, 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 public health and safety, and is consistent with the common 
defense and security. Also, special circumstances are present. 
Therefore, the Commission hereby grants HDI an exemption from the 
requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) to 
allow the use of a portion of the funds from the PNP DTF for spent fuel 
management and site restoration activities at PNP in accordance with 
HDI's PSDAR and SSCE, dated December 23, 2020. Additionally, the 
Commission hereby grants HDI an exemption from the requirement of 10 
CFR 50.75(h)(1)(iv) to allow such withdrawals without prior NRC 
notification.
    This exemption is effective upon issuance.

    Dated: December 13, 2021.

    For the Nuclear Regulatory Commission.

/RA/
Brian D. Wittick,
Deputy Director, Division of Operating Reactor Licensing, Office of 
Nuclear Reactor Regulation.

[FR Doc. 2021-27491 Filed 12-17-21; 8:45 am]
BILLING CODE 7590-01-P