ML20043C539

Request for Exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)

ML20043C539
Person / Time
Site:	Indian Point
Issue date:	02/12/2020
From:	Sterdis A Holtec Decommissioning International
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation
References
Download: ML20043C539 (22)

Text

Krishna P. Singh Technology Campus, 1 Holtec Blvd., Camden, NJ 08104 Telephone (856) 797-0900 Fax (856) 797-0909 February 12, 2020 10 CFR 50.12 10 CFR 50.82(a)(8)(i)(A) 10 CFR 50.75(h)(1)(iv)

U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Indian Point Nuclear Generating Units 1, 2 and 3 Docket Nos. 50-3, 50-247, and 50-286 Provisional Operating License No. DPR-5 Renewed Facility Operating License Nos. DPR-26 and DPR-64

Subject:

Request for Exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)

References:

[1] Letter from Andrea L. Sterdis, (Holtec Decommissioning International) to U.S.

Nuclear Regulatory Commission - Post-Shutdown Decommissioning Activities Report including Site-Specific Decommissioning Cost Estimate for Indian Point Nuclear Generating Units 1, 2 and 3, dated December 19, 2019, (ADAMS Accession No. ML19354A698).

[2] Letter US NRC to Con Edison, Order to Authorize Decommissioning and Amendment No. 45 to License No. DPR-5 for Indian Point Unit No. 1, dated January 31, 1996 (ADAMS Accession No. ML070310227).

[3] Letter from ENOI to US NRC, Notification of Permanent Cessation of Power Operations Indian Point Nuclear Generating Unit Nos. 2 and 3, Docket Nos. 50-247 and 50-286, License Nos. DPR-26 and DPR-64, dated February 8, 2017, (ADAMS Accession No. ML17044A004).

[4] Letter from ENOI to US NRC, Application for Order Consenting to Transfers of Control of Licenses and Approving Conforming License Amendments, Indian Point Nuclear Generating Units 1, 2 and 3, Docket Nos. 50-3, 50-247, 50-286 and 72-051, Provisional Operating License No. DPR-5, and Renewed Facility Operating License Nos. DPR-26 and DPR-64 dated November 21, 2019 (ADAMS Accession No. ML19326B953).

[5] Email US NRC to Entergy, Acceptance Review Determination Re: Indian Point Units 1, 2, and 3 License Transfer Application, dated January 3, 2020, (ADAMS Accession No. ML20003E152).

Pursuant to 10 CFR 50.12, Specific exemptions, Holtec Decommissioning International, LLC (HDI) requests exemptions from 10 CFR 50.82(a)(8)(i)(A) for Indian Point Nuclear Generating Unit Nos. 1, 2 and 3 (IP1, 2 & 3) to allow use of a portion of the IP1, 2 & 3 Nuclear Decommissioning Trust funds (NDT funds) for the management of IP1, 2 & 3 spent fuel and site restoration activities respectively, based on the HDI Indian Point Energy Center DECON Post-Shutdown Decommissioning Activities Report (PSDAR)

(hereafter referred to as DECON PSDAR) (Reference 1).

HDI also requests, pursuant to 10 CFR 50.12, exemptions from 10 CFR 50.75(h)(1)(iv) to allow disbursements from the IP1, 2 & 3 NDT funds for spent fuel management and site restoration costs to be made without prior notice, similar to withdrawals in accordance with 10 CFR 50.82(a)(8).

HDI is not requesting these exemptions for the IP1 & 2 Provisional Trust fund and the license conditions included in NRC Provisional Operating License No. DPR-5 and Renewed Operating License N. DPR-26 will continue to apply.

On January 31, 1996, the US NRC issued an order to authorize decommissioning of IP1 and Amendment No. 45 to License No. DPR-5, which revised the license to possession-only status (Reference 2). In accordance with 10 CFR 50.82(a)(1)(iii), certification of permanent cessation of operations of IP1 is deemed to have been submitted.

By letter dated February 8, 2017, Entergy Nuclear Operations, Inc. (ENOI), Entergy Nuclear Indian Point 2, LLC (ENIP2), and Entergy Nuclear Indian Point 3, LLC (ENIP3) notified the Nuclear Regulatory Commission (NRC) that it would permanently cease power operations at IP2 and IP3 by April 30, 2020 and April 30, 2021, respectively, consistent with the terms of a certain settlement agreement with the State of New York and related parties (Reference 3).

By letter dated November 21, 2019, ENOI, on behalf of itself, ENIP2, ENIP3, Holtec International (Holtec), and HDI, requested that the NRC consent to: (1) the transfer of control of Provisional Operating License No. DPR-5 and Renewed Facility Operating License Nos. DPR-26 and DPR-64 for IP1, 2 & 3, as well as the general license for the IP1, 2 & 3 Independent Spent Fuel Storage Installation (ISFSI) to Holtec subsidiaries to be known as Holtec Indian Point 2, LLC (Holtec IP2) and Holtec Indian Point 3, LLC (Holtec IP3); and (2) the transfer of ENOIs operating authority (i.e., its authority to conduct licensed activities at IP1, 2 & 3) to HDI (Reference 4).

On December 19, 2019, HDI submitted a DECON PSDAR (Reference 1) documenting the plan to initiate prompt decommissioning of IP1, 2 & 3 following permanent shutdown of IP2 and IP3, sale closure and license transfer. The DECON PSDAR includes a site-specific Decommissioning Cost Estimate (DECON DCE) that provides the estimated costs to complete radiological decommissioning of the site using the DECON method, safeguard the spent fuel until it can be transferred to the Department of Energy (DOE) and restore the impacted area of the site. The cost estimates for maintaining the spent fuel until DOE removal are included in the HDI DECON DCE (Reference 1).

HDI is submitting the enclosed exemption request to demonstrate that the exemptions are warranted to allow withdrawals for payment of IP1, 2, & 3 spent fuel management and site restoration costs as described in the DECON PSDAR. The enclosed exemption request is based on HDIs analysis of the expected IP1, 2

& 3 radiological decommissioning costs, spent fuel management costs, and site restoration costs. The HDI exemptions would apply only if the NRC approves the license transfers requested in Reference 4 to HDI for accelerated decommissioning.

Tables 1, 2 and 3 in the enclosed exemption request are reproduced from the DECON DCE included in Reference 1 and include the annual cash flows required for decommissioning IP1, 2 & 3 using the DECON method. Tables 1, 2 & 3 demonstrate that the IP1, 2 & 3 NDT funds contain the amounts needed to cover the estimated costs of IP1, 2 & 3 radiological decommissioning, spent fuel management, and site restoration activities respectively. However, 10 CFR 50.82(a)(8)(i)(A) states that NDTs may be used by licensees if... [t]he withdrawals are for expenses for legitimate decommissioning activities consistent with the definition of decommissioning in § 50.2.

10 CFR 50.75(h)(1)(iv) similarly requires that trust agreements restrict disbursements (other than for

ordinary administrative and other incidental expenses of the fund) and requires a 30-day advance notification to the NRC prior to making disbursements for expenses not covered under Section 50.82(a)(8).

The NRC does not construe the 10 CFR 50.2 definition of decommission as including activities associated with spent fuel management or site restoration. Therefore, exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) are needed to allow HDI to use the IP1, 2 & 3 NDT funds for spent fuel management and site restoration activities.

The requested exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) are permissible under 10 CFR 50.12 because they 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. In addition, application of the regulations in this particular circumstance is not necessary to achieve the underlying purpose of the rule.

Tables 1, 2 and 3 of the enclosed exemption request identify the estimated annual expenditures for the IP1, 2 & 3 radiological decommissioning, spent fuel management, and site restoration activities. Tables 1, 2 and 3 demonstrate that the IP1, 2 & 3 NDT funds contain more than adequate funds to cover not only the estimated costs of radiological decommissioning, but also the estimated costs for spent fuel management and site restoration activities for each unit respectively.

Therefore, application of the restrictions in 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) is not necessary to ensure adequate funding for radiological decommissioning of IP1, 2 & 3. Additionally, the annual reporting requirements in 10 CFR 50.82(a)(8)(v) and (vii) will allow for continual NRC oversight of the status of the IP1, 2 & 3 NDT funds.

HDI requests approval of this exemption request on a schedule that supports the NRCs planned completion of its review of the LTA (Reference 5). HDI also requests that this exemption be effective upon the issuance of the conforming amendments associated with the license transfers.

Entergy has reviewed the contents of this letter and is aligned.

This letter contains no new regulatory commitments.

If you have any questions concerning this submittal, please contact me at (724) 493-1833 or a.sterdis@holtec.com.

Respectfully, Andrea L. Sterdis Vice President, Regulatory & Environmental Affairs Holtec Decommissioning International, LLC

Enclosure:

Request for Exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) cc: w/Enclosure Regional Administrator - NRC Region I NRC Senior Resident Inspector - Indian Point Entergy Center NRC Project Manager, NRR - Indian Point Nuclear Generating Units 2 & 3 New York State (NYS) Public Service Commission President and CEO, NYSERDA Digitally signed by Andrea L. Sterdis DN: cn=Andrea L. Sterdis, c=US, o=HDI, ou=Holtec Decommissioning International, email=andrea.sterdis@holtec.com Date: 2020.02.12 07:19:02 -05'00' Andrea L.

Sterdis

Enclosure Indian Point Nuclear Generating Units 1, 2 & 3 HDI Request for Exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv)

1. SPECIFIC EXEMPTION REQUESTS Pursuant to 10 CFR 50.12, "Specific exemptions," HDI requests exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) for Indian Point Nuclear Generating Unit Nos. 1, 2 and 3 (IP1, 2 & 3) to allow use of a portion of their Nuclear Decommissioning Trusts (NDT) for the spent fuel management and site restoration costs for each unit. The estimated costs for IP1, 2

& 3 are provided in the HDI revised Indian Point Energy Center Post-Shutdown Decommissioning Activities Report (PSDAR) (hereafter referred to as DECON PSDAR)

(Reference 1).

10 CFR 50.82 (a)(8)(i)(A), "Termination of license," states the following:

Decommissioning trust funds may be used by licensees if-- (A) The withdrawals are for expenses for legitimate decommissioning activities consistent with the definition of decommissioning in 10 CFR 50.2.

10 CFR 50.75(h)(1)(iv), "Reporting and recordkeeping for decommissioning planning, states, in part:

Except for withdrawals being made under § 50.82(a)(8) or for payments of ordinary administrative costs (including taxes) and other incidental expenses of the fund (including legal, accounting, actuarial, and trustee expenses) in connection with the operation of the fund, no disbursement or payment may be made from the trust, escrow account, Government fund, or other account used to segregate and manage the funds until written notice of the intention to make a disbursement or payment has been given to the Director, Office of Nuclear Reactor Regulation, or Director, Office of Nuclear Material Safety and Safeguards, as applicable, at least 30 working days before the date of the intended disbursement or payment.

10 CFR 50.75(h)(1)(iv), "Reporting and recordkeeping for decommissioning planning, also states, in part:

Disbursements or payments from the trust, escrow account, Government fund, or other account used to segregate and manage the funds, other than for payment of ordinary administrative costs (including taxes) and other incidental expenses of the fund (including legal, accounting, actuarial, and trustee expenses) in connection with the operation of the fund, are restricted to decommissioning expenses or transfer to another financial assurance method acceptable under paragraph (e) of this section until final decommissioning has been completed. After decommissioning has begun and withdrawals from the decommissioning fund are made under § 50.82(a)(8), no further notification need be made to the NRC.

10 CFR 50.2, "Definitions," contains the following definition of "decommission:"

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.

The annual cash flow analyses from the HDI Decommissioning Cost Estimate (DCE) included in the DECON PSDAR (Reference 1) are reproduced in Tables 1, 2 and 3. The annual cash flow analyses demonstrate that the IP1, 2 & 3 NDT funds contain more than adequate funds to cover the estimated radiological decommissioning costs, as well as spent fuel management and site

restoration costs for each unit respectively. However, 10 CFR 50.82(a)(8)(i)(A) states that NDTs may be used by licensees if the withdrawals are for expenses for legitimate decommissioning activities consistent with the definition of decommissioning in 10 CFR 50.2. Similarly, 10 CFR 50.75(h)(1)(iv) requires that trust agreements provide that disbursements (other than for ordinary administrative and other incidental expenses of the fund) are restricted to decommissioning expenses until final decommissioning is completed. The U.S. Nuclear Regulatory Commission (NRC) construes the definition of "decommission" in 10 CFR 50.2 as including those costs associated with radiological decommissioning activities to achieve license termination and does not include costs for those activities associated with spent fuel management or site restoration.

Based on the above, HDI has concluded that 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) would prohibit the use of the IP1, 2 & 3 NDT funds for activities related to spent fuel management and site restoration prior to the completion of radiological decommissioning.

Exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) are requested to allow HDI to withdraw and use funds from the IP1, 2 & 3 NDT funds for each units costs associated with spent fuel management and site restoration activities that, as described in the DECON PSDAR, must be accomplished prior to the completion of radiological decommissioning. The exemptions would cover all costs associated with spent fuel management and site restoration activities at IP1, 2 & 3. These exemptions would not present an undue risk to the public health and safety or prevent decommissioning from being completed as planned since the IP1, 2 & 3 NDT funds contain adequate funds to complete radiological decommissioning as well as spent fuel management activities and site restoration activities.

2. BACKGROUND Indian Point Energy Center (IPEC) is located on approximately 239 acres of land on the east bank of the Hudson River at the Village of Buchanan in upper Westchester County, New York.

There are three units on site, two operating units (IP2 & 3) and one in safe-storage (IP1). IP1 is located between IP2 to the north and IP3 to the south.

By letter dated February 8, 2017, Entergy Nuclear Operations, Inc. (ENOI), Entergy Nuclear Indian Point 2, LLC (ENIP2), and Entergy Nuclear Indian Point 3, LLC (ENIP3) notified the Nuclear Regulatory Commission (NRC) that it would permanently cease power operations at IP2 and IP3 by April 30, 2020 and April 30, 2021, respectively, consistent with the terms of a certain settlement agreement with the State of New York and related parties (Reference 2).

By letter dated November 21, 2019, ENOI, on behalf of itself, ENIP2, ENIP3, Holtec International (Holtec), and HDI, requested that the NRC consent to: (1) the transfer of control of Provisional Operating License No. DPR-5 and Renewed Facility Operating License Nos. DPR-26 and DPR-64 for IP1, 2 & 3, as well as the general license for the IP1, 2 & 3 Independent Spent Fuel Storage Installation (ISFSI) to Holtec subsidiaries to be known as Holtec Indian Point 2, LLC (Holtec IP2) and Holtec Indian Point 3, LLC (Holtec IP3); and (2) the transfer of ENOIs operating authority (i.e., its authority to conduct licensed activities at IP1, 2 & 3) to HDI (Reference 3). The license transfer application (LTA) requested that the license transfers be approved within 12 months from the date of the LTA, or by November 21, 2020.

On December 19, 2019, HDI submitted a DECON PSDAR (Reference 1) documenting the plan to initiate prompt decommissioning of IP1, 2 &3 following permanent shutdown of IP2 and IP3, sale closure and license transfer. The DECON PSDAR includes a site-specific Decommissioning Cost Estimate (DECON DCE) that provides the estimated costs associated with License Termination in addition to the estimated costs associated with Spent Fuel

Management and Site Restoration. License Termination costs are those costs associated with the collective work required to plan, mobilize and execute the removal of the radioactive contamination from the site consistent with the definition of decommissioning in 10 CFR 50.2.

Spent Fuel Management costs are those costs to safeguard and manage spent fuel from sale closure and license transfer until it can be transferred to the Department of Energy (DOE). Site Restoration costs are those costs associated with the remediation of non-radiological contamination and restoring the impacted area of the site. The cost estimates for spent fuel management and site restoration are included in the HDI DECON DCE (Reference 1).

HDI is submitting this exemption request to demonstrate that exemptions are warranted to allow withdrawals from the IP1, 2 & 3 NDT funds for payment of spent fuel management and site restoration costs as described in the DECON PSDAR. The exemptions being requested are based on HDIs analysis of the expected IP1, 2 & 3 radiological decommissioning costs, spent fuel management costs, and site restoration costs. The HDI exemptions would apply only if the NRC approves the transfer of the IP1, 2 & 3 licenses to HDI for accelerated decommissioning, and the sale closure and license transfers are completed.

3. BASIS FOR EXEMPTION REQUESTS Following the sale closure and transfer of the IP1, 2 & 3 licenses to HDI, decommissioning activities will proceed using the DECON method. The HDI DECON PSDAR and DCE (Reference 1) provides the cost estimates for the HDI DECON radiological decommissioning, spent fuel management, and site restoration efforts.

Tables 1, 2 & 3 of this enclosure reflect the projected annual cash flows for site radiological decommissioning (license termination costs), spent fuel management, independent spent fuel storage installation (ISFSI) radiological decommissioning, and site restoration (non-radiological decommissioning). The costs in Tables 1, 2 & 3 reflect the following assumptions:

1. Following the sale closure and transfer of the IP1, 2 & 3 licenses, HDI will initiate decommissioning activities using the DECON method.

2. Spent fuel management costs begin in 2020. Spent fuel management costs will only be reimbursed from the IP1, 2 & 3 NDT funds under this exemption if the sale closure and license transfers are completed and this exemption request is approved.

The annual cash flow analyses contained in Tables 1, 2 & 3 of this enclosure conservatively assume all expenses in a year are incurred at the beginning of year (i.e., beginning-of-year convention) during the decommissioning period. A 2% annual real rate of return on the NDT funds as allowed by 10 CFR 50.75(e)(1)(i) is used in the analyses. Additionally, contributions to the IP1, 2 & 3 NDT funds and cost escalation are both assumed to be zero in these cash flow analyses.

The 2020 beginning-of-year (BOY) Trust Fund Values (analyses starting trust fund balance) in Tables 1, 2 and 3 of this enclosure are the IP1, 2 & 3 fund balances expected at sale closure consistent with the Membership Interest Purchase and Sale Agreement (MIPA) for NDT fund values post-closure of the sale.

Spent fuel management costs are included in Tables 1, 2 and 3 of this enclosure. Spent fuel storage will include the existing IP1, 2 & 3 ISFSI dry storage facility as well as the fuel stored in the IP2 spent fuel pools at sale closure and license transfers. The spent fuel pool storage costs

will continue until all IP2 and 3 spent fuel is transferred to dry storage at the onsite ISFSI where it will remain stored until such time that it can be transferred to a DOE facility. In addition, HDIs plan for spent fuel management includes the construction of additional dry fuel storage capacity. Consequently, the estimate includes costs for ISFSI capacity expansion planning, construction, operation and decommissioning, in addition to procurement of dry storage canisters, loading and movement of canisters and transfer of spent fuel to the DOE.

Tables 1, 2 and 3 of this enclosure demonstrate that the IP1, 2 & 3 NDT funds, exceed the amounts required to complete radiological decommissioning of the site using the DECON method, in addition to management of spent nuclear fuel and restoration of the site. At the end of the decommissioning project and at the time the IP1, 2, and 3 licenses are terminated, an estimated $19.6 million, $71.3 million, and $167.2 million will remain in the IP1, 2, & 3 NDT funds, respectively.

4. ADJUSTING COST ESTIMATES AND FUNDING LEVELS Pursuant to the annual reporting requirements in 10 CFR 50.82(a)(8)(v), 10 CFR 50.82(a)(8)(vi) and 10 CFR 50.82(a)(8)(vii), HDI will prepare and submit an annual report of the estimated costs to complete decommissioning and manage irradiated fuel, in addition to reporting the status of the IP1, 2 & 3 NDT funds and the funding status for managing the irradiated fuel.

The DECON DCE adjusted for inflation, in accordance with applicable regulatory requirements, will be used to demonstrate funding assurance. If the remaining funds plus earnings do not cover the estimated costs to complete the IP1, 2 & 3 decommissioning, the financial assurance status report will include additional financial assurance to cover the estimated costs of completion. If the accumulated funds for irradiated fuel management do not cover the projected costs, a plan to obtain additional funds to cover the costs will be included in the funding status report.

5. JUSTIFICATION FOR EXEMPTIONS AND SPECIAL CIRCUMSTANCES 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 the regulations of Part 50 which 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. 10 CFR 50.12 also states that the Commission will not consider granting an exemption unless special circumstances are present.

As discussed below, this exemption request satisfies the provisions of Section 50.12.

A. The exemptions are authorized by law The proposed exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) would allow use of a portion of the IP1, 2 & 3 NDT for spent fuel management and site restoration activities, consistent with the DECON PSDAR and DCE. As stated above, 10 CFR 50.12 allows the NRC to grant exemptions from the requirements of 10 CFR Part 50. The proposed exemptions would not result in a violation of the Atomic Energy Act of 1954, as amended, or the Commission's regulations. The NRC has granted exemptions to other licensees to use NDTs for spent fuel management and site restoration (see Section 6.0 of this enclosure). Therefore, the exemptions are authorized by law.

B. The exemptions will not present an 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 decommissioning of power reactors within 60 years of cessation of operations. Based on the cash flow analyses provided in Tables 1, 2 and 3, use of a portion of the funds in the IP1, 2 & 3 NDT funds for spent fuel management and site restoration activities will not adversely impact the ability to terminate the IP1, 2 & 3 licenses (i.e., complete radiological decommissioning) within 60 years. Furthermore, an exemption from 10 CFR 50.75(h)(1)(iv) to allow withdrawals from the IP1, 2 & 3 NDT funds to cover expenses for spent fuel management and site restoration efforts without prior written notification to the NRC will not affect the sufficiency of funds in the IP1, 2 & 3 NDTs to accomplish radiological decommissioning of the site. Additionally, the annual reporting requirements in 10 CFR 50.82(a)(8)(v) and (vii) will allow for continual NRC oversight of the status of the IP1, 2 & 3 NDT funds.

Based on the above, no new accident precursors are created by using the trust funds 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 exemptions will not present an undue risk to the public health and safety.

C. The exemptions are consistent with the common defense and security The proposed exemptions would allow use of a portion of the IP1, 2 & 3 NDT funds for spent fuel management and site restoration efforts, consistent with the DECON DCE.

Spent fuel management and site restoration activities are an integral part of the planned IP1, 2 & 3 decommissioning process and will not adversely affect the ability to physically secure the site or protect special nuclear material. This change to enable the use of a portion of the funds in the IP1, 2 & 3 NDT funds for spent fuel management and site restoration activities will not alter the scope or availability of sufficient funding for the IPEC site security program. Therefore, the proposed exemptions are consistent with the common defense and security.

D. Special Circumstances Pursuant to 10 CFR 50.12(a)(2), the NRC will not consider granting an exemption to its regulations unless special circumstances are present. HDI has determined that special circumstances are present as discussed below.

1. 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 (10 CFR 50.12(a)(2)(ii)). 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 to complete decommissioning within 60 years of a power reactors cessation of operations. Strict application of the rule would prohibit withdrawal of funds from the NDT funds for activities associated with spent fuel management and site restoration until the IP1, 2 & 3 operating licenses have been terminated. However, the cash flow analyses in Tables 1, 2 &

3 demonstrate that more than adequate funds are available in the IP1, 2 & 3 NDT funds to complete license termination, spent fuel management, and site restoration activities for each unit respectively; the analyses project that if the exemptions are granted, the IP1, 2 & 3 NDT funds will still contain approximately $19.6 million, $71.3 million, and $167.2 million after the licenses are terminated in 2062 (using a 0.0% escalation rate and a 2.0% annual real rate of return as allowed by the NRC regulations).

The 30-day notification provision in 10 CFR 50.75(h)(1)(iv) was not intended to duplicate other reporting requirements that would exist after a plant commences decommissioning. The underlying purpose of notifying the NRC prior to withdrawal of funds from the trust fund is to provide 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 insufficient funds in the trust fund to accomplish radiological decontamination of the site.

A comment received during the rulemaking for the Decommissioning Trust Fund Provisions in 10 CFR 50.75(h)(1)(iv), noted that licensees that have complied with the requirements of 10 CFR 50.82(a)(4) regarding submittal of a PSDAR and control disbursements in accordance with the provisions of 10 CFR 50.82(a)(6), (a)(7) and (a)(8) should be exempt from further restrictions on disbursements (67 Fed. Reg. 78332 (Dec. 24,2002)) (Reference 4). The NRC agreed with the comment, because requiring notification in such circumstances would not provide any additional assurance that funding is available and would duplicate notification requirements in 10 CFR 50.82. If the NRC grants the requested exemptions allowing the use of a portion of the IP1, 2, & 3 NDT funds for spent fuel management and site restoration activities, the same consideration would justify dispensing with the 30-day notification requirement as well. Tables 1, 2 & 3 identify the estimated annual expenditure, and the annual reporting requirements in 10 CFR 50.82(a)(8)(v) and (vii) will allow continual NRC oversight of the status of the IP1, 2 & 3 NDT funds. Applying the 30-day advance notification requirement in 10 CFR 50.75(h)(1)(iv) to disbursements for spent fuel management and site restoration activities would duplicate these other reporting requirements and is not necessary to achieve the underlying purposes of the rule.

Therefore, since the underlying purposes of the rules would be achieved by allowing HDI to use the IP1, 2 & 3 NDT funds to fund the activities as discussed in the DECON PSDAR, the special circumstances of 10 CFR 50.12(a)(2)(ii) are present.

2. 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 (10 CFR 50.12(a)(2)(iii)). The NRC did not intend to prevent the use of NDT funds solely because they are commingled, and to do so would create an unnecessary financial burden on licensees without any corresponding safety benefit. The NRC does not preclude the use of funds from the NDT in excess of those needed for radiological decommissioning for other purposes, such as spent fuel management or site

restoration. Rather, the NRC has stated that funding for non-decommissioning activities may be commingled with funding for decommissioning activities in the NDT, 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 (see NRC Regulatory Issue Summary 2001-07, Rev. 1, 10 CFR 50.75 Reporting and Recordkeeping for Decommissioning Planning, dated January 8, 2009 (Reference 5), and Regulatory Guide 1.184, Rev. 1, Decommissioning of Nuclear Power Reactors, (Reference 6)). The adequacy of the IP1, 2 & 3 NDT funds to cover the cost of activities associated with decommissioning, spent fuel management, and site restoration activities is supported by the cash flow analyses in Tables 1, 2, & 3.

If HDI cannot use the IP1, 2 & 3 NDT funds for spent fuel management and site restoration activities, it would be forced to provide additional funding that would not be recoverable from the trust fund until the IP1, 2 & 3 operating licenses are terminated. To prevent access to the excess funds in the IP1, 2 & 3 trusts would impose an unnecessary and undue burden in excess of that contemplated when the regulation was adopted without any corresponding safety benefit.

Therefore, compliance with the rule would result in an 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 and the special circumstances of 10 CFR 50.12(a)(2)(iii) are present.

6. PRECEDENT The request for exemptions to 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) for IP1, 2

& 3 is consistent with exemptions that recently have been issued by the NRC for other nuclear power reactor facilities beginning decommissioning. Specifically, the NRC granted similar exemptions to Entergy Nuclear Operations, Inc. (ENOI), for Vermont Yankee (Reference 7); to Duke Energy Florida, Inc. for Crystal River Unit 3 (Reference 8); and to Dominion Energy Kewaunee, Inc. for KPS (Reference 9), to Exelon Generation for Oyster Creek Nuclear Generating Station (Reference 10), and to ENOI for Pilgrim Nuclear Power Station (Reference 11).

7. ENVIRONMENTAL ASSESSMENT A. Environmental Considerations Pursuant to 10 CFR 51.21, the following environmental considerations are provided.

1. Description of the Action HDI requests exemptions from the requirements set forth in 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) restricting the use of the IP1, 2 & 3 NDT funds. Specifically, the exemptions would allow HDI to use funds from the IP1, 2 & 3 NDT funds for spent fuel management and site restoration activities that are not associated with radiological decommissioning.

2. Need for the Action The requested exemptions are needed to allow HDI to access IP1, 2 & 3 NDT funds, in excess of those funds needed for radiological decommissioning, to fund spent fuel management and site restoration activities, in order to avoid an unnecessary financial burden.

As required by 10 CFR 50.82(a)(8)(i)(A), NDT funds may be used by a licensee if the withdrawals are for expenses for legitimate decommissioning activities consistent with the definition of decommissioning in 10 CFR 50.2. This definition addresses radiological decommissioning and does not include activities associated with spent fuel management or site restoration. Therefore, HDI needs the requested exemptions from 10 CFR 50.82(a)(8)(i)(A) to allow the use of IP1, 2 & 3 NDT funds for spent fuel management and site restoration activities.

3. Environmental Impacts of the Action The proposed action involves exemptions from requirements that are of a financial or administrative nature and that do not have an impact on the environment. There is no decrease in safety associated with the use of the IP1, 2 & 3 NDT funds to cover costs of the activities associated with spent fuel management and site restoration. Following transfer of the IP1, 2 & 3 licenses and sale closure completion, HDI is required to maintain a comprehensive, regulation-based decommissioning funding oversight program to provide reasonable assurance that sufficient funding will be available for the radiological decommissioning of IP1, 2 & 3.

After the DECON DCE as required by 10 CFR 50.82(a)(8)(iii) is submitted, and until completing its final radiation survey and demonstrating that residual radioactivity has been reduced to a level that permits termination of the IP1, 2 & 3 licenses as required by 10 CFR 50.82(a)(11), financial assurance status reports must be submitted to the NRC annually as required by 10 CFR 50.82(a)(8)(v). The report must include, among other things, amounts spent on decommissioning, the remaining trust fund balance, and estimated costs to complete radiological decommissioning. If the remaining IP1, 2 & 3 NDT fund balances, plus earnings on such funds calculated at not greater than a 2 percent real rate of return, plus any other financial assurance methods being relied upon, does not cover the estimated costs to complete radiological decommissioning, 10 CFR 50.82(a)(8)(vi) requires that additional financial assurance to cover the estimated costs to complete radiological decommissioning must be provided. These annual reports provide a means for the NRC to monitor the adequacy of the funding available for the radiological decommissioning of IP1, 2 & 3 notwithstanding the exemptions allowing HDI to use funds for IP1, 2 & 3 spent fuel management and site restoration activities from the trust funds.

The proposed action will not significantly increase the probability or consequences of radiological accidents; nor will it have any direct radiological impacts. There will be no change to the types or amounts of radiological effluents that may be released, and therefore, no change in occupational or public radiation exposure from the proposed action. The exemptions also will not introduce any materials or chemicals into the plant that could affect the characteristics or types of effluents released offsite. In addition, the method of operation of waste processing systems will not be affected by the exemptions. The proposed exemptions will not result in changes to the design basis requirements of structures, systems, and components (SSCs) that function to limit or monitor the release of effluents. All the SSCs associated with limiting the release of effluents will continue to be able to perform their functions. Moreover, no changes would be made to plant buildings or the site property from the proposed changes. Accordingly, there are not significant radiological environmental impacts associated with the proposed action.

With regard to potential non-radiological impacts, the proposed action would have no direct impacts on land use or water resources, including terrestrial and aquatic biota, as it involves no new construction or modification of plant operational systems. There would be no changes to the quality or quantity of non-radiological effluents and no changes to the sites State Pollutant Discharge Elimination System (SPDES) Discharge Permit would be needed. In addition, there would be no noticeable effect on socioeconomic conditions in the region, no environment justice impacts, no air quality impacts, and no impacts to historic and cultural resources from the proposed change. Therefore, there are no significant non-radiological environment impacts associated with the proposed action.

Accordingly, HDI concludes that there are no significant environmental impacts associated with the proposed action to grant the requested exemptions.

4. Environmental Impacts of the Alternatives to the Action As an alternative to the action, the NRC staff could deny HDIs exemption request.

Denial of the exemption request would result in Holtec IP1, 2 & 3 using funds from the IP1, 2 & 3 NDT funds only for radiological decommissioning and not also for spent fuel management or site restoration activities as described in the exemption request. The environmental impacts of this alternative would be substantively the same as the environmental impacts for granting the exemption request, because there are no potential incremental environmental impacts as a result of granting the exemption request. Therefore, the environmental impacts of the alternative to the action would be the same as those already considered by the previous environmental analyses.

5. Alternative Use of Resources The requested action only involves a change in the source of funds allowed for managing spent fuel and restoring the site, and therefore, does not involve the use of any different resources than those previously considered.

B. Analysis The request for exemptions from 10 CFR 50.82(a)(8)(i)(A) to allow use of IP1, 2 & 3 NDT funds for spent fuel management and site restoration activities and 10 CFR 50.75(h)(1)(iv) to remove duplicative notification requirements has no adverse impact to the environment. Approval of the exemption request would allow Holtec IP1, 2 & 3 and HDI access to excess funds in the IP1, 2 &

3 NDT funds, based on projected trust fund growth and estimated expenditures, while continuing to demonstrate reasonable assurance of available trust funds to complete radiological decommissioning. The proposed action would not result in an adverse impact to the environment, unexpected expenditures, or other uncertainties or risks. Because the proposed exemptions relate solely to the source of funding for spent fuel management and site restoration activities, it does not result in there no longer being reasonable assurance of sufficient trust funds to complete radiological decommissioning of the IPEC site and does not significantly affect any of the decommissioning activities or processes previously reviewed. On this basis, the proposed exemptions will not have a significant effect on the quality of the human environment.

As a result of the environmental considerations discussed above, HDI concludes that the proposed exemptions are in the public interest in that it allows HDI and Holtec IP1, 2 &

3 to avoid unnecessary and undue costs to cover these expenses from other sources, with no potential incremental environmental impacts.

The proposed exemptions do not require any additional Federal permits, licenses, approvals or other entitlements.

8. NO SIGNIFICANT HAZARDS CONSIDERATION DETERMINATION HDI has evaluated the proposed exemptions to determine whether or not a significant hazards consideration is involved by focusing on the three standards set forth in 10 CFR 50.92(c) as discussed below. For the reasons discussed below, HDI concludes that the proposed exemptions present no significant hazards consideration, and, accordingly, a finding of no significant hazards consideration is justified.

A. Do the proposed exemptions involve a significant increase in the probability or consequences of an accident previously evaluated?

The proposed exemptions would allow the withdrawal of funds from the IP1, 2, & 3 NDT funds to conduct activities associated with spent fuel management and site restoration activities in accordance with the HDI DECON PSDAR and DCE. The proposed exemptions have no effect on plant structures, systems, and components (SSCs) and no effect on the capability of any plant SSC to perform its design function. The proposed exemptions would not increase the likelihood of the malfunction of any plant SSC. The proposed exemptions would have no effect on any of the previously evaluated accidents in the IP1, 2 & 3 Updated Final Safety Analysis Reports. Use of funds in the IP1, 2 & 3 NDT funds as allowed under the requested exemptions will not affect the probability of occurrence of any previously analyzed accident.

The proposed exemptions do not change the requirements pertaining to spent fuel management.

Therefore, the proposed exemptions do not involve a significant increase in the probability or consequences of an accident previously evaluated.

B. Do the proposed exemptions create the possibility of a new or different kind of accident from any accident previously evaluated?

The proposed exemptions do not involve a physical alteration of the plant. No new or different type of equipment will be installed and there are no physical modifications to existing equipment associated with the proposed exemptions. Similarly, the proposed exemptions will not physically change any SSCs involved in the mitigation of any accidents. Thus, no new initiators or precursors of a new or different kind of accident are created.

Furthermore, the proposed exemptions do not create the possibility of a new accident as a result of new failure modes associated with any equipment or personnel failures. No changes are being made to parameters within which the plant is normally operated, or in the setpoints which initiate protective or mitigative actions, and no new failure modes are being introduced.

Therefore, the proposed exemptions do not create the possibility of a new or different kind of accident from any accident previously evaluated.

C. Do the proposed exemptions involve a significant reduction in a margin of safety?

The proposed exemptions do not alter the design basis or any safety limits for the plants. The proposed exemptions do not impact station operation or any plant SSC that

is relied upon for accident mitigation.

Therefore, the proposed exemptions do not involve a significant reduction in a margin of safety.

Based on the above, the proposed exemptions present no significant hazards consideration, and, accordingly, a finding of "no significant hazards consideration" is justified.

9. CONCLUSION The proposed exemptions would allow HDI, upon transfer of the IP1, 2 & 3 licenses and execution of the sale closure, to use the IP1, 2 & 3 NDT funds for the full scope of activities described in the decommissioning cost estimates for IP1, 2 & 3, including the management of spent fuel and site restoration and to make such disbursements in the same manner as withdrawals for radiological decommissioning.

Pursuant to the provisions of 10 CFR 50.12, HDI is requesting permanent exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) for IP1, 2 & 3. The proposed exemptions would allow the use of the IP1, 2 & 3 NDT funds for the full scope of activities described in the DECON PSDAR and DCE, including the management of spent fuel and site restoration, and to make such disbursements in the same manner as withdrawals for radiological decommissioning.

Granting these exemptions will be consistent with the purposes underlying NRC decommissioning regulations as the exemptions: (1) would not foreclose release of the site for possible unrestricted use; (2) would not result in significant environmental impacts not previously reviewed by the NRC; and (3) would not undermine the existing and continuing reasonable assurance that adequate funds will be available for decommissioning.

Based on the considerations discussed above, the requested 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. In addition, special circumstances are present as set forth in 10 CFR 50.12(a)(2)(ii) and (iii).

Table 1 Annual DECON Decommissioning Cash Flow for Indian Point Unit No. 1 (Holtec IP1)

IPEC Unit 1 - DECON Method Annual Cash Flow in Thousands of 2019 Dollars No DOE Reimbursement of Spent Fuel Management Costs Year 50.75 License Termination Cost 2 50.54 (bb)

Spent Fuel Management Cost 2 Site Restoration Cost 2 Total Cost 2 Beginning of Year Trust Fund Balance1 Withdraw Trust Fund Earnings 3 Year Ending Trust Fund Balance 2021 29,941 2,676 32,617 533,532

-32,617 5,844 506,759 2022 27,637 4,546 32,183 506,759

-32,183 9,492 484,068 2023 52,768 2,516 2,113 57,397 484,068

-57,397 8,533 435,204 2024 65,344 1,654 4,550 71,547 435,204

-71,547 7,273 370,930 2025 22,059 1,708 5,224 28,992 370,930

-28,992 6,839 348,777 2026 25,850 1,660 5,076 32,586 348,777

-32,586 6,324 322,515 2027 34,183 1,582 4,850 40,615 322,515

-40,615 5,638 287,538 2028 30,731 1,613 4,943 37,287 287,538

-37,287 5,005 255,256 2029 22,503 1,702 5,204 29,410 255,256

-29,410 4,517 230,363 2030 50,400 1,523 1,804 53,727 230,363

-53,727 3,533 180,169 2031 75,149 1,465 1,498 78,112 180,169

-78,112 2,041 104,097 2032 37,915 1,569 5,460 44,944 104,097

-44,944 1,183 60,336 2033 2,422 4,209 6,631 60,336

-6,631 1,074 54,779 2034 2,870 2,870 54,779

-2,870 1,038 52,948 2035 2,870 2,870 52,948

-2,870 1,002 51,079 2036 2,875 2,875 51,079

-2,875 964 49,169 2037 2,870 2,870 49,169

-2,870 926 47,225 2038 2,870 2,870 47,225

-2,870 887 45,242 2039 2,870 2,870 45,242

-2,870 847 43,220 2040 2,875 2,875 43,220

-2,875 807 41,152 2041 2,870 2,870 41,152

-2,870 766 39,048 2042 2,870 2,870 39,048

-2,870 724 36,902 2043 2,870 2,870 36,902

-2,870 681 34,713 2044 2,875 2,875 34,713

-2,875 637 32,474 2045 2,870 2,870 32,474

-2,870 592 30,197 2046 5,162 5,162 30,197

-5,162 501 25,536 2047 145 4,343 4,488 25,536

-4,488 421 21,468 2048 386 386 21,468

-386 422 21,503 2049 386 386 21,503

-386 422 21,539 2050 386 386 21,539

-386 423 21,576 1 The 2021 Beginning of Year NDT balance reflects the fund value post-closure of the sale transition. The value used is based on the October 31, 2019 Unit 1 NDT fund balance and includes deductions for estimated ENOI and HDI pre-closure costs of approximately $59.3M.

2 The 2021 costs include HDI estimated 2021 post-closure costs.

3 NDT earnings reflect an assumed 2% Real Rate of Return (RRR).

4 Columns may not add due to rounding.

IPEC Unit 1 - DECON Method Annual Cash Flow in Thousands of 2019 Dollars No DOE Reimbursement of Spent Fuel Management Costs Year 50.75 License Termination Cost 2 50.54 (bb)

Spent Fuel Management Cost 2 Site Restoration Cost 2 Total Cost 2 Beginning of Year Trust Fund Balance1 Withdraw Trust Fund Earnings 3 Year Ending Trust Fund Balance 2051 386 386 21,576

-386 424 21,613 2052 386 386 21,613

-386 425 21,651 2053 386 386 21,651

-386 425 21,690 2054 386 386 21,690

-386 426 21,730 2055 714 714 21,730

-714 420 21,436 2056 715 715 21,436

-715 414 21,136 2057 715 715 21,136

-715 408 20,829 2058 715 715 20,829

-715 402 20,516 2059 715 715 20,516

-715 396 20,197 2060 715 715 20,197

-715 390 19,871 2061 715 715 19,871

-715 383 19,539 2062 257 66 323 19,539

-323 384 19,601 2063 19,601 392 19,993 Total 4 485,015 72,381 40,788 598,184

-598,184 84,645 1 The 2021 Beginning of Year NDT balance reflects the fund value post-closure of the sale transition. The value used is based on the October 31, 2019 Unit 1 NDT fund balance and includes deductions for estimated ENOI and HDI pre-closure costs of approximately $59.3M.

2 The 2021 costs include HDI estimated 2021 post-closure costs.

3 NDT earnings reflect an assumed 2% Real Rate of Return (RRR).

4 Columns may not add due to rounding.

Table 2 Annual DECON Decommissioning Cash Flow for Indian Point Unit No. 2 (Holtec IP2)

IPEC Unit 2 - DECON Method Annual Cash Flow in Thousands of 2019 Dollars No DOE Reimbursement of Spent Fuel Management Costs Year 50.75 License Termination Cost 2 50.54 (bb)

Spent Fuel Management Cost 2 Site Restoration Cost 2 Total Cost 2 Beginning of Year Trust Fund Balance1 Withdraw Trust Fund Earnings 3 Year Ending Trust Fund Balance 2021 42,737 27,287 70,024 654,078

-70,024 6,814 590,868 2022 69,990 34,019 1,825 105,834 590,868

-105,834 9,701 494,735 2023 67,919 11,439 6,137 85,496 494,735

-85,496 8,185 417,424 2024 33,157 4,337 6,618 44,113 417,424

-44,113 7,466 380,777 2025 36,136 1,608 6,250 43,993 380,777

-43,993 6,736 343,520 2026 32,379 1,636 6,358 40,373 343,520

-40,373 6,063 309,210 2027 32,796 1,635 5,266 39,697 309,210

-39,697 5,390 274,903 2028 51,731 1,548 1,884 55,164 274,903

-55,164 4,395 224,134 2029 50,554 1,553 1,853 53,960 224,134

-53,960 3,403 173,577 2030 8,592 6,857 15,449 173,577

-15,449 3,163 161,291 2031 8,592 6,857 15,449 161,291

-15,449 2,917 148,758 2032 5,994 5,905 6,747 18,646 148,758

-18,646 2,602 132,714 2033 1,922 7,701 9,623 132,714

-9,623 2,462 125,553 2034 5,990 5,990 125,553

-5,990 2,391 121,954 2035 6,000 6,000 121,954

-6,000 2,319 118,274 2036 6,014 6,014 118,274

-6,014 2,245 114,505 2037 6,000 6,000 114,505

-6,000 2,170 110,675 2038 5,990 5,990 110,675

-5,990 2,094 106,779 2039 6,000 6,000 106,779

-6,000 2,016 102,795 2040 6,005 6,005 102,795

-6,005 1,936 98,725 2041 6,000 6,000 98,725

-6,000 1,855 94,580 2042 6,000 6,000 94,580

-6,000 1,772 90,352 2043 6,000 6,000 90,352

-6,000 1,687 86,040 2044 6,005 6,005 86,040

-6,005 1,601 81,636 2045 5,990 5,990 81,636

-5,990 1,513 77,158 2046 3,152 3,152 77,158

-3,152 1,480 75,486 2047 145 749 894 75,486

-894 1,492 76,084 2048 386 386 76,084

-386 1,514 77,212 2049 386 386 77,212

-386 1,537 78,362 1 The 2021 Beginning of Year NDT balance reflects the fund value post-closure of the sale transition. The value used is based on the October 31, 2019 Unit 2 NDT fund balance and includes deductions for estimated ENOI and HDI pre-closure costs of approximately $15.15M.

2 The 2021 costs include HDI estimated 2021 post-closure costs.

3 NDT earnings reflect an assumed 2% Real Rate of Return (RRR).

4 Columns may not add due to rounding

IPEC Unit 2 - DECON Method Annual Cash Flow in Thousands of 2019 Dollars No DOE Reimbursement of Spent Fuel Management Costs Year 50.75 License Termination Cost 2 50.54 (bb)

Spent Fuel Management Cost 2 Site Restoration Cost 2 Total Cost 2 Beginning of Year Trust Fund Balance1 Withdraw Trust Fund Earnings 3 Year Ending Trust Fund Balance 2050 386 386 78,362

-386 1,560 79,535 2051 386 386 79,535

-386 1,583 80,731 2052 386 386 80,731

-386 1,607 81,952 2053 386 386 81,952

-386 1,631 83,196 2054 386 386 83,196

-386 1,656 84,466 2055 3,274 3,274 84,466

-3,274 1,624 82,816 2056 3,285 3,285 82,816

-3,285 1,591 81,121 2057 3,285 3,285 81,121

-3,285 1,557 79,393 2058 3,285 3,285 79,393

-3,285 1,522 77,629 2059 3,285 3,285 77,629

-3,285 1,487 75,831 2060 3,285 3,285 75,831

-3,285 1,451 73,996 2061 3,285 3,285 73,996

-3,285 1,414 72,125 2062 1,121 1,149 2,270 72,125

-2,270 1,397 71,252 2063 71,252 1,425 72,677 Total 4 469,456 188,278 44,088 701,822

-701,822 120,420 1 The 2021 Beginning of Year NDT balance reflects the fund value post-closure of the sale transition. The value used is based on the October 31, 2019 Unit 2 NDT fund balance and includes deductions for estimated ENOI and HDI pre-closure costs of approximately $15.15M.

2 The 2021 costs include HDI estimated 2021 post-closure costs.

3 NDT earnings reflect an assumed 2% Real Rate of Return (RRR).

4 Columns may not add due to rounding.

Table 3 Annual DECON Decommissioning Cash Flow for Indian Point Unit No. 3 (Holtec IP3)

IPEC Unit 3 - DECON Method Annual Cash Flow in Thousands of 2019 Dollars No DOE Reimbursement of Spent Fuel Management Costs Year 50.75 License Termination Cost 2 50.54 (bb)

Spent Fuel Management Cost 2 Site Restoration Cost 2 Total Cost 2 Beginning of Year Trust Fund Balance1 Withdraw Trust Fund Earnings3 Year Ending Trust Fund Balance 2021 63,590 46,741 442 110,773 916,100

-110,773 9,395 814,722 2022 103,657 16,745 3,833 124,235 814,722

-124,235 13,810 704,297 2023 68,921 35,203 3,616 107,740 704,297

-107,740 11,931 608,488 2024 51,552 30,858 3,514 85,924 608,488

-85,924 10,451 533,016 2025 49,120 1,421 3,630 54,171 533,016

-54,171 9,577 488,421 2026 52,082 1,407 3,594 57,084 488,421

-57,084 8,627 439,964 2027 42,955 1,451 3,714 48,119 439,964

-48,119 7,837 399,682 2028 26,334 1,638 4,192 32,164 399,682

-32,164 7,350 374,868 2029 26,318 1,638 4,185 32,142 374,868

-32,142 6,855 349,581 2030 26,314 1,638 4,186 32,138 349,581

-32,138 6,349 323,792 2031 26,314 1,638 4,186 32,138 323,792

-32,138 5,833 297,487 2032 22,366 1,561 7,751 31,679 297,487

-31,679 5,316 271,124 2033 2,581 4,763 7,343 271,124

-7,343 5,276 269,057 2034 3,607 3,607 269,057

-3,607 5,309 270,759 2035 3,607 3,607 270,759

-3,607 5,343 272,494 2036 3,612 3,612 272,494

-3,612 5,378 274,260 2037 3,607 3,607 274,260

-3,607 5,413 276,066 2038 3,607 3,607 276,066

-3,607 5,449 277,907 2039 3,607 3,607 277,907

-3,607 5,486 279,786 2040 3,612 3,612 279,786

-3,612 5,523 281,697 2041 3,607 3,607 281,697

-3,607 5,562 283,652 2042 3,607 3,607 283,652

-3,607 5,601 285,646 2043 3,607 3,607 285,646

-3,607 5,641 287,679 2044 3,612 3,612 287,679

-3,612 5,681 289,748 2045 3,607 3,607 289,748

-3,607 5,723 291,864 2046 4,433 4,433 291,864

-4,433 5,749 293,179 2047 7,453 7,453 293,179

-7,453 5,715 291,441 2048 11,953 11,953 291,441

-11,953 5,590 285,078 2049 11,917 11,917 285,078

-11,917 5,463 278,624 1 The 2021 Beginning of Year NDT balance reflects the fund value post-closure of the sale transition. The value used is based on the October 31, 2019 Unit 3 NDT fund balance and includes deductions for estimated ENOI and HDI pre-closure costs of approximately $15.15M.

2 The 2021 costs include HDI estimated 2021 post-closure costs.

3 NDT earnings reflect an assumed 2% Real Rate of Return (RRR).

4 Columns may not add due to rounding.

IPEC Unit 3 - DECON Method Annual Cash Flow in Thousands of 2019 Dollars No DOE Reimbursement of Spent Fuel Management Costs Year 50.75 License Termination Cost 2 50.54 (bb)

Spent Fuel Management Cost 2 Site Restoration Cost 2 Total Cost 2 Beginning of Year Trust Fund Balance1 Withdraw Trust Fund Earnings3 Year Ending Trust Fund Balance 2050 11,927 11,927 278,624

-11,927 5,334 272,030 2051 11,917 11,917 272,030

-11,917 5,202 265,315 2052 11,953 11,953 265,315

-11,953 5,067 258,429 2053 11,927 11,927 258,429

-11,927 4,930 251,432 2054 11,927 11,927 251,432

-11,927 4,790 244,294 2055 2,888 11,917 14,805 244,294

-14,805 4,590 234,079 2056 2,899 11,943 14,842 234,079

-14,842 4,385 223,622 2057 2,899 11,927 14,826 223,622

-14,826 4,176 212,972 2058 2,899 11,927 14,826 212,972

-14,826 3,963 202,108 2059 2,899 11,927 14,826 202,108

-14,826 3,746 191,028 2060 2,899 11,943 14,842 191,028

-14,842 3,524 179,709 2061 2,899 11,912 14,811 179,709

-14,811 3,298 168,196 2062 782 2,459 996 4,238 168,196

-4,238 3,279 167,237 2063 167,237 3,345 170,582 Total 4 583,168 371,370 47,840 1,002,378

-1,002,378 256,860 1 The 2021 Beginning of Year NDT balance reflects the fund value post-closure of the sale transition. The value used is based on the October 31, 2019 Unit 3 NDT fund balance and includes deductions for estimated ENOI and HDI pre-closure costs of approximately $15.15M.

2 The 2021 costs include HDI estimated 2021 post-closure costs.

3 NDT earnings reflect an assumed 2% Real Rate of Return (RRR).

4 Columns may not add due to rounding

REFERENCES:

1. Letter from Andrea L. Sterdis, (Holtec Decommissioning International) to U.S. Nuclear Regulatory Commission - Post-Shutdown Decommissioning Activities Report including Site-Specific Decommissioning Cost Estimate for Indian Point Nuclear Generating Units 1, 2 and 3, dated December 19, 2019, (ADAMS Accession No. ML19354A698).

2. Letter from ENOI to US NC, Notification of Permanent Cessation of Power Operations Indian Point Nuclear Generating Unit Nos. 2 and 3, Docket Nos. 50-247 and 50-286, License Nos. DPR-26 and DPR-64, dated February 8, 2017, (ADAMS Accession No. ML17044A004).

3. Letter from ENOI to US NRC, Application for Order Consenting to Transfers of Control of Licenses and Approving Conforming License Amendments, Indian Point Nuclear Generating Units 1, 2 and 3, Docket Nos. 50-3, 50-247, 50-286 and 72-051, Provisional Operating License No. DPR-5, and Renewed Facility Operating License Nos. DPR-26 and DPR-64 dated November 21, 2019 (ADAMS Accession No. ML19326B953).

4. Federal Register Notice, 67 FR 78332, Decommissioning Trust Provisions, dated December 24, 2002.

5. 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).

6. Regulatory Guide 1.184, Revision 1, "Decommissioning of Nuclear Power Reactors," dated October 2013, (ADAMS Accession No. ML13144A840).

7. Letter from U.S. Nuclear Regulatory Commission to Entergy Nuclear Operations, Inc; Vermont Yankee Nuclear Power Station, Exemptions from the Requirements of 10 CFR Part 50, Sections 50.82(a)(8)(i)(A) and 50.75(h)(1)(iv), (TAC NO. MF5575), dated June 17, 2015, (ADAMS Accession No. ML15128A219).

8. Letter from U.S. Nuclear Regulatory Commission to Duke Entergy Florida, Inc; Crystal River Unit 3 Nuclear Generating Plant; Exemptions from the Requirements of 10 CFR Part 50, Sections 50.82(a)(8)(i)(A) and 50.75(h)(2), (TAC NO. MF3875), dated January 26, 2015, (ADAMS Accession No. ML14247A545).

9. Letter from U.S. Nuclear Regulatory Commission to Dominion Entergy Kewaunee, Inc; Kewaunee Power Station, Exemptions from the Requirements of 10 CFR Part 50, Sections 50.82(a)(8)(i)(A) and 50.75(h)(1)(iv), (TAC NO. MF1438), dated May 21, 2014, (ADAMS Accession No. ML13337A287).

10. Letter U.S. Nuclear Regulatory Commission to Exelon Generation Company, LLC, Oyster Creek Nuclear Generating Station - Exemptions from the Requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv), dated September 19, 2018, (ADAMS Accession No. ML18227A025).

11. Letter from U.S. Nuclear Regulatory Commission to Entergy; Pilgrim Nuclear Power Station Plant; Request for Exemption from 10 CFR 50.82(a)(8)(i)(A), dated July 22, 2019, (ADAMS Accession No. ML19162A334).