ML23286A327
| ML23286A327 | |
| Person / Time | |
|---|---|
| Site: | Maine Yankee |
| Issue date: | 02/29/2024 |
| From: | Storage and Transportation Licensing Branch |
| To: | Maine Yankee Atomic Power Co |
| Shared Package | |
| ML23286A325 | List: |
| References | |
| EPID L-2023-LLE-0010 | |
| Download: ML23286A327 (7) | |
Text
Enclosure UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 SAFETY EVALUATION REPORT DOCKET NOS. 50-309 AND 72-30 EXEMPTION FROM 10 CFR 50.82(a)(8)(i)(A) AND 10 CFR 50.75(h)(2)
MAINE YANKEE ATOMIC POWER COMPANY MAINE YANKEE ATOMIC POWER STATION
1.0 INTRODUCTION
By letter dated March 31, 2023 (Agencywide Documents Access and Management System
[ADAMS] Accession No. ML23113A005), Maine Yankee Atomic Power Company (MYAPC or Maine Yankee) submitted a request to the U.S. Nuclear Regulatory Commission (NRC) for an exemption from Title 10 of the Code of Federal Regulations (10 CFR) 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) for the Maine Yankee Independent Spent Fuel Storage Installation1 (ISFSI).
Maine Yankee has established a separate (segregated) account within its over-arching Nuclear Decommissioning Trust (NDT), entitled "ISFSI Radiological Decom," that identifies the funds for radiological decommissioning of the ISFSI apart from the larger balance of funds in the NDT allocated for ongoing management of spent nuclear fuel and Greater than Class C (GTCC) waste and for non-radiological site restoration activities. Although 10 CFR 50.82 applies to the segregated account, it does not apply to the overall NDT.
If granted, the exemptions from 10 CFR 50.82(a)(8)(i)(A) and 50.75(h)(2) would permit MYAPC to make withdrawals from the segregated account), on an annual basis, for spent fuel and GTCC waste management and non-radiological site restoration without prior notification to the NRC. More specifically, with this exemption, MYAPC would be able to annually transfer funds exceeding 110 percent of the inflation-adjusted Decommissioning Cost Estimate, described in 10 CFR 50.75, from the segregated account to its overarching NDT and use those funds for spent fuel and GTCC waste management and non-radiological site restoration.
Maine Yankee Atomic Power Station began commercial operation in December 1972, and shut down in December 1996. Maine Yankee began decommissioning the Maine Yankee Atomic Power Station in 1998. After ceasing reactor operations, MYAPC began transferring spent 1 As discussed below, the Maine Yankee ISFSI sits on the former site of the Maine Yankee Atomic Power Station, which MYAPC finished decommissioning in 2005. Although only the Maine Yankee ISFSI remains on the site, Maine Yankees 10 CFR Part 50 license, Facility Operating License No. DPR-36 remains in effect. Because the MYAPC requested an exemption from the requirements of 10 CFR Part 50, this would be an exemption for MYAPCs 10 CFR Part 50 license rather than for MYAPCs 10 CFR Part 72 general license. Therefore, although MYAPCs submission requested an exemption for the Maine Yankee ISFSI, the NRC staff will consider it a request for an exemption for the Maine Yankee Atomic Power Station.
2 nuclear fuel (SNF) from the spent fuel pool to the Maine Yankee ISFSI for long-term dry storage. MYPAC completed these activities in 2004 and completed final decommissioning of the reactor site except for the ISFSI, which included dismantling and removing all reactor plant related facilities, in 2005. As a result, only the ISFSI remains at the old plant site of Maine Yankee Atomic Power Station in Wiscasset, Maine. By letter dated September 30, 2005 (ML052380223), the NRC issued Amendment No. 172 to Facility Operating License No. DPR-36 to allow Maine Yankee to possess and store SNF at the permanently shut down and decommissioned facility under the provisions of 10 CFR Part 72, subpart K, General License for Storage of Spent Fuel at Power Reactor Sites.
This safety evaluation report documents the NRC staffs review and evaluation of Maine Yankees exemption request. The NRC staff reviewed Maine Yankees request to determine whether it meets the criteria for an exemption specified in 10 CFR 50.12, Specific exemptions.
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, which are: 1) authorized by law, will not present an undue risk to public health and safety, and are consistent with the common defense and security; and 2) whenever special circumstances listed in 10 CFR 50.12(a)(2) are present.
2.0 BACKGROUND
The Maine Yankee ISFSI is located on the old plant site in Wiscasset, Maine. Apart from the ISFSI, the licensee has decommissioned Maine Yankee. The ISFSI stores SNF under the provisions of 10 CFR Part 72, Subpart K, General License for Storage of Spent Fuel at Power Reactor Sites. The ISFSI stores 60 dry storage casks containing 1,434 SNF assemblies used during operations and four greater-than-Class-C (waste) (GTCC) casks containing segmented sections of the reactor internals. Maine Yankee uses NAC Internationals dry cask spent fuel storage design model, NAC-UMS [Universal Multipurpose Systems], which the NRC authorized by Amendment No. 6 to the Certificate of Compliance No. 1015 (ML18333A232).
By letters dated December 10, 2018 (ML18354A736), and December 10, 2021 (ML21362A159),
as supplemented by letter dated July 28, 2022 (ML22216A068), Maine Yankee submitted updated decommissioning funding plans (DFPs) for the ISFSI at the Maine Yankee site for the NRCs review and approval, in accordance with 10 CFR 72.30. The NRC staff reviewed these updated triennial DFP submittals and approved them via letter dated February 24, 2023 (ML22340A492). In support of its approvals of the updated DFPs, the NRC staff published an environmental assessment (EA) and findings of no significant impact in the Federal Register (88 FR 7469) on February 3, 2023. The NRC staff determined that there were no significant environmental impacts from the staffs review and approval of Maine Yankees updated DFPs.
3.0 REGULATORY REQUIREMENTS The 10 CFR 50.82(a)(8)(i)(A) requirement restricts the use of decommissioning trust fund withdrawals to expenses for legitimate decommissioning activities consistent with the definition of decommissioning that appears in 10 CFR 50.2. The definition of "decommission" in 10 CFR 50.2 reads as follows:
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
3 (2)
Release of the property under restricted conditions and termination of the license.
This definition does not include activities associated with SNF and GTCC waste management or non-radiological site restoration activities.
The 10 CFR 50.75(h)(2) states, in relevant 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.
Therefore, both 10 CFR 50.82(a)(8)(i)(A, and 50.75(h)(2) require that disbursements (other than for certain exceptions) from the trust fund be restricted to decommissioning expenses until final decommissioning is completed.
In addition, 10 CFR 50.75(h)(2), in relevant part:
Licensees that are "electric utilities" under § 50.2 that use prepayment or an external sinking fund to provide financial assurance shall include a provision in the terms of the trust, escrow account, Government fund, or other account used to segregate and manage funds that 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 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.
Therefore, with certain exceptions, per 10 CFR 50.75(h)(2), Maine Yankee must give NRC written notice before making disbursements or payments from the trust fund for purposes that are not legitimate decommissioning expenses.
As discussed above, Maine Yankee maintains a segregated account, entitled "ISFSI Radiological Decom," within its overarching NDT, that distinguishes the funds for radiological decommissioning of the ISFSI from the NDTs larger balance of funds for ongoing management of SNF and GTCC waste. For the reasons above, MYAPC is seeking exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) allowing it to annually transfer excess funds from the segregated account for radiological decommissioning of the ISFSI to the overarching NDT, so that those funds can be used to pay for costs associated with SNF and GTCC waste management and non-radiological site restoration activities, without prior notification to the NRC. The exemption request defines excess funds as those exceeding 110 percent of the inflation-adjusted Decommissioning Cost Estimate described in 10 CFR 50.75.
4 4.0 PROPOSED EXEMPTION By letter dated March 31, 2023, Maine Yankee submitted a request to the NRC for an exemption from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2). The proposed exemptions from 10 CFR 50.82(a)(8)(i)(A) and 50.75(h)(2) would permit MYAPC to make withdrawals from the segregated account, on an annual basis, for SNF and GTCC waste management and non-radiological site restoration without prior notification to the NRC. More specifically, with this exemption, MYAPC would be able to annually transfer funds exceeding 110 percent of the inflation-adjusted Decommissioning Cost Estimate, described in 10 CFR 50.75, from the segregated account to its overarching NDT and use those funds for SNF and GTCC waste management and non-radiological site restoration activities.
5.0 SAFETY EVALUATION Under 10 CFR 50.12, the Commission may, upon application by any interested person or upon its own initiative, grant exemptions from the requirements of 10 CFR Part 50 (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:
(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.
Authorized by Law The requested exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) would allow Maine Yankee to use excess funds from its segregated account for costs associated with SNF and GTCC waste management and non-radiological site restoration activities without prior notification to the NRC.
As stated above, the NRC has the legal authority to issue exemptions from the requirements of 10 CFR Part 50 as provided in 10 CFR 50.12. The NRC staff has determined that, as explained below, there would still be reasonable assurance of adequate funding for radiological decommissioning because Maine Yankees use of the decommissioning trust funds for activities associated with spent fuel and GTCC management and non-radiological site-restoration would not negatively impact the availability of funding for radiological decommissioning. Accordingly, granting Maine Yankees proposed exemptions would not result in a violation of the Atomic Energy Act of 1954, as amended, or the Commissions regulations. Therefore, issuance of the exemption is authorized by law.
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)(2) is to provide reasonable assurance that adequate funds will be available for radiological decommissioning of power reactors, including the general licensed ISFSIs licensed under 10 CFR Part 72,
5 Licensing Requirements for the Independent Storage of Spent Nuclear Fuel, High-Level Radioactive Waste, and Reactor-Related Greater Than Class C Waste.
Maine Yankee stated that it has established a segregated account, entitled "ISFSI Radiological Decom," within its over-arching NDT, that identifies the funds for radiological decommissioning of the ISFSI. This segregated account is apart from the larger balance of funds in the NDT allocated for ongoing management of SNF and GTCC waste and for other non-radiological site restoration activities. In its Decommissioning Funding Assurance Status Report dated March 6, 2023 (ML23068A011), Maine Yankee stated that, as of December 31, 2022, its inflation-adjusted DCE for the radiological decommissioning of the ISFSI, is approximately $7.4 million in 2022 dollars, which, it asserted provides reasonable assurance of adequate funding to complete the NRC required decommissioning activities. In the same report, Maine Yankee reported that the segregated ISFSI Radiological Decom account had $56.4 million. More specifically, in its exemption request, Maine Yankee provided a table showing $7,436,375 in 2022 dollars as the inflation-adjusted DCE. Maine Yankees exemption request further stated that the segregated account has a balance of $56,449,354 as of December 31, 2022, meaning that the segregated account had a balance of $49,012,979, or 659 percent beyond the inflation-adjusted DCE.
Maine Yankee stated that, if the exemption is granted, funds in its segregated account which exceed 110 percent of the inflation-adjusted DCE for the radiological decommissioning of the ISFSI would be transferred to the overarching NDT on an annual basis without prior NRC notification. Maine Yankee would then use those funds for SNF and GTCC waste management and non-radiological site restoration, which in turn, would allow Maine Yankee to return its additional excess funds in the overarching NDT to its customers as part of future rate cases with the Federal Energy Regulatory Commission (FERC).
The requested exemption from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) would allow transfers on an annual basis. Maine Yankee stated that it will continue to provide its annual decommissioning funding assurance status report in accordance with 10 CFR 50.75(f)(1) and (2) and 10 CFR 50.82(a)(8)(v) and (vi) requirements. These reports provide the NRC staff with awareness of, and the ability to act on, any actual or potential funding deficiencies. As the proposed exemption would not affect these requirements, the NRC staff would have tools available for any potential funding deficiencies. Therefore, the proposed exemption request would not affect reasonable assurance that adequate funds will be available for radiological decommissioning of the site.
Further, there are no new accident precursors created by using the excess funds from the segregated account for SNF and GTCC management and non-radiological site-restoration.
Maine Yankee will transfer funds that exceeds 110 percent of the inflation-adjusted Decommissioning Cost Estimate. Thus, the probability of postulated accidents is not increased.
Also, 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 the public health and safety.
Consistent with the Common Defense and Security The proposed exemption would not affect any requirements associated with physical protection of the Maine Yankee ISFSI with SNF and GTCC waste stored on site. Physical security
6 measures at the Maine Yankee ISFSI are not affected by the requested exemption. Therefore, the proposed exemption is consistent with the common defense and security.
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 purposes of these regulations, however, are to provide reasonable assurance that adequate funds will be available for the radiological decommissioning of power reactors and license termination. Strict application of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) would prohibit the withdrawal of funds from the segregated account ISFSI Radiological Decom for activities other than radiological decommissioning until final radiological decommissioning is completed. As discussed above, the NRC staff has determined that, in this circumstance, consistent with the purposes of the regulations, the requested transfer of funds from the segregated account to the overarching NDT would continue to provide reasonable assurance that adequate funds will be available for the radiological decommissioning of the facility.
Therefore, the application of these regulations to prevent the requested transfer of funds would not serve the underlying purposes of the regulations.
In addition, since Maine Yankee is an electric utility under 10 CFR 50.2, the requested transfer of funds will not inhibit Maine Yankees ability to complete funding of any potential future shortfalls in the NDTs. This is because Maine Yankee is regulated by the FERC and recovers current operating costs through FERC-approved power supply contracts. This exemption will not foreclose the option for future ratepayer contributions. Hence, there is additional margin as provided by the FERC-accepted power contracts which provide an ongoing mechanism to obtain additional funds. Therefore, application of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) in these circumstances would not serve the underlying purposes of the regulations.
Consequently, special circumstances are present.
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.
As discussed above, Maine Yankee states that the segregated account contains funds in excess of the estimated costs of radiological decommissioning of the ISFSI. It further states that these excess funds should be available for SNF and GTCC waste management and non-radiological site restoration activities to minimize the potential to require additional funding from ratepayers in accordance with the FERC process.
Preventing access to funds that exceed 110 percent of the inflation-adjusted DCE for radiological decommissioning of the ISFSI to fund SNF and GTCC waste management and non-radiological site restoration would create an unnecessary financial burden without any corresponding safety benefit. The adequacy of the segregated account to cover the cost of activities associated with SNF and GTCC waste management and non-radiological site
7 restoration activities, in addition to radiological decommissioning, is supported by the site-specific decommissioning cost analysis. If the licensee cannot use its segregated account for SNF and GTCC waste management and non-radiological site restoration activities, it would need to obtain additional funding that would not be recoverable from the NDT, or the licensee 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) was adopted.
The underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) would be achieved by allowing Maine Yankee to use a portion of the Maine Yankee segregated account for SNF and GTCC management and non-radiological site restoration activities without prior NRC notification on an annual basis, 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 required by 10 CFR 50.12(a)(2)(ii) and 10 CFR 50.12(a)(2)(iii) exist and support the approval of the requested exemption.
6.0 ENVIRONMENTAL CONSIDERATION
The NRC staff considered whether there would be any significant environmental impacts associated with the proposed exemption. For the proposed action, the NRC staff performed an environmental assessment (EA) pursuant to 10 CFR 51.30. The NRC determined that a finding of no significant impact (FONSI) is appropriate, and an environmental impact statement is not warranted. The EA and the FONSI was published on February 28, 2024, in the Federal Register (89 FR 14723).
7.0 CONCLUSION
Based on the above, the NRC has determined that, pursuant to 10 CFR 50.12(a), the exemption is authorized by law, will not present an undue risk to the public health and safety, and is consistent with the common defense and security. Also, special circumstances are present.
Therefore, the NRC hereby grants the requested exemption from the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) to permit MYAPC to make withdrawals from the segregated account, on an annual basis, for SNF and GTCC waste management and non-radiological site restoration without prior notification to the NRC. All other relevant requirements shall be met.