ML23192A766

Draft Summary Rod for Kairos Hermes Test Reactor CP

ML23192A766
Person / Time
Site:	Hermes File:Kairos Power icon.png
Issue date:	08/22/2023
From:	Peyton Doub NRC/NMSS/DREFS
To:
References
Download: ML23192A766 (9)

Text

DRAFT

SUMMARY

RECORD OF DECISION U.S. NUCLEAR REGULATORY COMMISSION DOCKET NO. 50-7513 CONSTRUCTION PERMIT APPLICATION FOR THE KAIROS HERMES TEST REACTOR

BACKGROUND

By letter dated September 29, 2021 (Agencywide Documents Access & Management System (ADAMS) Accession Package No. ML21272A375), Kairos Power, LLC ( Kairos) submitted Part 1 of a two-part application to the United States Nuclear Regulato ry Commission (NRC) for a construction permit (CP) pursuant to Title 10 of the Code of Federal Regulations Part 50 (10 CFR Part 50). The CP would allow construction of a non-power t est reactor that Kairos has named Hermes on a 185-acre site in Oak Ridge, Tennessee. Sectio n 104c of the Atomic Energy Act of 1954 (42 U.S.C. 2134) authorizes the NRC to issue CPs for testing facilities. To issue a CP, the NRC is required to consider the environmental impacts of the proposed action under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq., herein referred to as NEPA). The NRCs NEPA-implementing regulations in 10 CFR Par t 51 identify several types of licensing actions that require the NRC to prepare an environ mental impact statement (EIS).

CPs and operating licenses (OLs) for test facilities are identi fied in 10 CFR 51.20 as actions that require an EIS.

Applicants for NRC licenses are required under 10 CFR 51.45 to submit an environmental report (ER) containing a description of the proposed project, a statement of its purposes, a description of the affected environment, and specific informati on needed for the staff to evaluate potential environmental impacts. After initially submitting Par t 1 of the Kairos Hermes application (consisting of its Preliminary Safety Analysis Report), Kairos submitted an ER (ML21306A131) on October 31, 2021, with information needed to assess potentia l environmental impacts from the CP licensing action, which w as later revised by letter dated March 30, 2023 (ML23089A386).

Consistent with 10 CFR Part 51, the NRC staff published a Notic e of Acceptance for Docketing in the Federal Register (FR) on December 1, 2021 (86 FR 68290). On February 18, 2022, the NRC staff prepared a FR notice of its intent to prepare an EIS and conduct a scoping process (87 FR 9394). In addition, Federal, State, and local agencies as well as Tribal governments were notified and invited to participate in the environmental r eview. The scoping notice began the 60-day scoping period. On March 23, 2022, the NRC held a v irtual joint public outreach and scoping meeting. The Environmental Impact Statement Scoping P rocess Summary Report prepared for the Kairos Hermes CP Application presents the comm ents the NRC received during the scoping process (ML22194A014).

In March 2022, the NRC staff conducted a virtual audit to verif y information in the Environmental Report. During the audit, the NRC staff reviewed specific docu mentation and discussed specific information needs with Kairos staff and their contractors. The information needs and the pertinent points from the audit are documented in the staffs a udit summary report (ML22196A387).

4 After the scoping period and environmental audit, the NRC staff compiled its findings in a draft EIS (ML22259A126). In accordance with 10 CFR 51.73, the public comment period for the draft EIS was from October 7, 2022, through December 6, 2022 (87 FR 6 1014). During this time, the NRC staff hosted a public meeting on November 16, 2022, in Oak Ridge, Tennessee and collected public comments (ML23031A160). On August 17, 2023, t he NRC issued the final EIS, Environmental Impact Statement for the Construction Permit for the Kairos Hermes Test Reactor (NUREG-2263), (ML23214A269). All comments related to the environmental review during the comment period are included in Appendix G of the fin al EIS.

Pursuant to 10 CFR 51.102 and 51.103(a)(1)-(4), the NRC staff h as prepared this Summary Record of Decision (ROD) to accompany the NRCs action on the c onstruction permit application. This Summary ROD incorporates by reference materi als contained in the final EIS.

See 10 CFR 51.103(c).

DECISION

The NRC makes the decision to grant or deny a CP application based on whether the applicant has met all applicable requirement s, including the NRCs safety and environmental regulations.

The NRCs safety review of the application is documented in the safety evaluation (SE) issued on June 13, 2023 (ML23158A265).

The final EIS presents the staffs environmental review of the application. As documented in Chapter 5 of the final EIS, after weighing the environmental, e conomic, technical, and other benefits of the facility against environmental and other costs and considering reasonable alternatives, the NRC staff recommends, unless safety issues mandate otherwise, issuance of the CP. The NRC staff determined that this recommendation is i n accordance with NEPA and the NRCs implementing regulations in Subpart A of 10 CFR Part 51, and that all applicable environmental requirements have been satisfied. In the Commiss ions Order dated [date], the Commission [XXX; explain Commissions rationale as explained in the Order].

Accordingly, on [date], the NRC issued Construction Permit CPTR - XXX, authorizing the construction of the Hermes test reactor in the City of Oak Ridg e, Tennessee. The construction permit is effective as of [date].

AGENCY ROLES AND RESPONSIBILITIES

The final EIS includes information on a broad range of issues t hat may be regulated by other Federal, State, or local agencies or Tribes. As documented in the final EIS, Kairos must obtain and maintain permits from other Federal, State, or local agenci es or Tribes in order to construct the Hermes test reactor.

As described in the final EIS, Kairos is required to comply wit h a State-issued general permit for stormwater discharges associated with construction activity. B est management practices and other requirements imposed by the State-issued stormwater disch arge permit would ensure that runoff during construction of the proposed facility will meet a pplicable State water quality standards.

The NRC was the sole agency responsible for the environmental r eview of the Kairos Hermes CP application, including the development of a final EIS. In t he final EIS, the NRC evaluated the impacts of constructing, operating, and decommissioning the proposed test reactor at the proposed site. The NRC contacted Federal, State, Tribal, regio nal, and local agencies to solicit comments on the draft EIS. In addition to considering the envi ronmental effects of the proposed action, NRC considered reasonable alternatives to the proposed action, including the no-action alternative, and building the Hermes facilities at an alternati ve site. The NRC ensured that the NEPA process was properly conducted and completed before recomm ending approval for this project. The NRC also documented applicable requirements and n ecessary permits of other Federal, State, Tribal and local agencies as part of considerin g the environmental monitoring and mitigation that Kairos would implement.

Section 106 of the National Historic Preservation Act (NHPA) re quires Federal agencies to account for the effects of their undertakings on historic prope rties and consult with the appropriate parties. Issuance of a construction permit is a Fe deral undertaking that requires compliance with the NHPA Section 106. In accordance with 36 CF R 800.8(c), the NRC initiated the NHPA Section 106 consultation with the Tennessee Historical Commission (THC, i.e., the State Historic Preservation Officer), the Advisory Council on H istoric Preservation, the National Park Service, and 18 Federally recognized Tribes. The NHPA imp lementing regulations are located at 36 CFR Part 800, Protection of Historic Properties (36 CFR Part 800).

PURPOSE AND NEED

As identified in Section 1.2 of the final EIS, the purpose and need of the proposed Federal action is to authorize Kairos to build a non-power test reactor to demonstrate key elements of the Kairos Power Fluoride Salt-Cooled, High Temperature Reactor (KP-FHR) technology for possible future commercial deployment. The Hermes reactor woul d not generate any power for sale or distribution. The technology is an advanced nuclear re actor technology that leverages TRI-structural ISOtropic (TRISO) particle fuel in pebble form c ombined with a low-pressure fluoride salt coolant. The Hermes reactor would support the Ka iros reactor development program, which relies on learning and risk reduction by narrowi ng the design space through progressive test cycles. The Hermes reactor would also provide validation and qualification data to support potential future commercial reactors using the Kairos Power Fluoride Salt-Cooled, High Temperature Reactor technology.

PROPOSED FEDERAL ACTION

The proposed Federal action is for the NRC to decide whether to issue a construction permit under 10 CFR Part 50 that would allow construction of the Herme s test reactor. If the NRC were to issue a construction permit, Kairos could build the Her mes test reactor on a 185acre site in the Heritage Center in the East Tennessee Technology Pa rk in the City of Oak Ridge, Tennessee. This site lies within an area formerly occupied by the U.S. Department of Energy (DOE) Buildings K-31 and K-33, which were part of the Oak Ridge Gaseous Diffusion Plant that ceased operation in 1986. Buildings K-31 and K-33 have since b een razed, and DOE has remediated the site to a condition suitable for industrial deve lopment, and DOE has excessed the land for private development subject to deed restrictions r elated to environmental protection and conservation.

The issuance of a construction permit is a separate licensing a ction from the issuance of an operating license. If the NRC issues a construction permit, th en Kairos could submit a separate application for an operating license, pursuant to the NRCs req uirements, and would need to obtain NRC approval before it could operate the Hermes test rea ctor. If the NRC were to issue an operating license, Kairos has stated that it plans to operat e the Hermes test reactor for four years. To conduct an efficient and effective environmental rev iew, the EIS covers the potential impacts from construction, operations, and decommissioning. If Kairos were to submit an application for an operating license, the NRC staff would prepa re a supplement to the final EIS in accordance with 10 CFR 51.95(b).

NRC EVALUATION OF THE PROPOSED ACTION:

Section 102(2)(C)(iii) of NEPA 1 states that EISs are to include a detailed statement analyzing alternatives to the proposed action. The NRC staff examined th e direct, indirect, and cumulative environmental impacts from constr uction, operation, and decommissioning of the Hermes test reactor for the following resource areas: land use and visual r esources; air quality and noise; hydrogeology and water resources; ecological resources; histori c and cultural resources; socioeconomics and environmental justice; human health; nonradi ological waste; uranium, fuel cycle, and radiological waste management; transportation of rad iological material; postulated accidents; and climate change. The consideration of cumulative impacts accounted for other past, present, and reasonably foreseeable actions that could af fect the same resources. The NRC staff also evaluated in the final EIS the environmental imp acts of a range of reasonable alternatives including a no-action alternative and an alternati ve involving siting the Hermes test reactor at an undeveloped Federally-owned site, termed the Eagl e Rock site, situated approximately 20 miles west of Idaho Falls, Idaho. The alterna tives evaluation helped the staff to determine the environmentally preferable alternative and to weigh the costs and benefits of the proposed action and alternatives to the proposed action.

To guide its assessment of the environmental impacts of the pro posed action and alternatives, the NRC has established a standard of significance for impacts based on Council on Environmental Quality guidance (Interim Staff Guidance to NUREG-1537 (ML12156A069 and ML12156A075 (ISG to NUREG-1537)). The NRC established three le vels of significance for potential impacts: SMALL, MODERATE, and LARGE. The definition s of these three significance levels, which are presented in the ISG to NUREG-15 37, are:

SMALLenvironmental effects are not detectable or are so minor that they would neither destabilize nor noticeably alter any important attribut e of the resource. For the purposes of assessing radiological impacts, the Commission has concluded that those impacts that do not exceed permissible levels in the Commission s regulations are considered SMALL.

MODERATEenvironmental effects are sufficient to noticeably alt er important attributes of the resource but not to destabilize them.

LARGEenvironmental effects are clearly noticeable and are suff icient to destabilize.

The final EIS presents the NRC staffs analysis, which consider s and weighs the environmental impacts of the proposed action at the Oak Ridge site. The NRC staff determined that the direct, indirect, and cumulative impacts from construction, operations, and decommissioning of the Hermes test reactor would be SMALL for all resource areas.

1 NEPA was amended in June 2023 by the Fiscal Responsibility Act of 2023 (FRA). The Kairos environmental review was complete before the FRA was enacted.

EVALUATION OF ALTERNATIVES

In Chapter 4 of the final EIS, the NRC staff considered the fol lowing alternatives to construction, operations, and decommissioning of the Hermes test reactor at t he proposed site in Oak Ridge, Tennessee:

• the no-action alternative; and

• construction, operations, and decommissioning of the Hermes te st reactor at the Eagle Rock site near Idaho Falls, Idaho.

i. No-Action Alternative

Under the no-action alternative, discussed in Section 4.1 of th e final EIS, the NRC would not issue the construction permit, and the Hermes test reactor woul d not be constructed. Kairos could not build the proposed Hermes reactor and would therefore not have an opportunity to test the KP-FHR technologies, design features, and safety funct ions at a reduced scale relative to an anticipated commercial power reactor. While forgoing the opportunities provided by Hermes might not necessarily preclude future development of rea ctors using the KP-FHR technologies, it could slow or impede safe and efficient develo pment of the technology. None of the environmental effects described in the EIS would occur unde r the no action alternative. But because the final EIS characterizes all potential environmental impacts of the proposed action as SMALL, any environmental benefits from selecting the no acti on alternative instead of the proposed action would be minimal. Additionally, under the no a ction alternative, the proposed site would remain available for other government or private ind ustrial development projects, and many of the environmental impacts resulting from land disturban ce and building new industrial facilities on the site might still occur at some time in the fu ture.

The no-action alternative is the only alternative considered by the NRC staff that does not satisfy the purpose and need stated in the final EIS.

ii. Alternative Sites

The NRC staff independently evaluated the process used by Kairo s for screening potential alternative sites, which follo wed a systematic methodology by applying exclusionary criteria appropriate to the proposed facility. NRCs site-selection pro cess guidance calls for a systematic process to evaluate a broad range of potential sites and determine specific sites to analyze in detail. Based on its evaluation, the NRC staff conc luded that the method used by Kairos to identify regions, states, cities, and, ultimately, al ternative sites was reasonable and logical and adequately satisfied applicable NRC guidance.

Kairos followed a process based on that of the Electric Power R esearch Institute (EPRI) in the 2015 version of Advanced Nuclear Technology: Site Selection and Evaluation Criteria for New Nuclear Power Generation Facilities. This process involves defining a region of interest (ROI) and candidate areas within the ROI, identifying specific candid ate sites for evaluation and scoring, and finally selecting sites for detailed evaluation. Kairos conducted the process using reconnaissance-level data available in the public domain with l imited consultation of stakeholders.

The ROI used by Kairos consisted of the continental United Stat es, based on a preference for future deployment in geographic regions with a strong nexus to future domestic power markets and on the fact that the applicant does not have a specific ser vice territory. Key site screening criteria used by the applicant include the availability of high -quality site data to support licensing and design, proximity to a national laboratory capable of suppo rting test plans, and connectivity to the targeted commercial reactor market. The applicant ident ified 11 potential sites in five candidate areas meeting the screening criteria: Eastern Tennes see; the Pacific Northwest; Eastern Idaho; Piketon, Ohio; and southeastern United States. Key criteria used by the applicant to score the potential sites included:

• connectivity to future commercial reactor markets;

• access to construction resources;

• ability for timely acquisition;

• existing local transportation and utility infrastructure;

• strong local community support;

• water availability;

• minimizing conflict with other major projects;

• minimizing reliance on the DOE as the landowner;

• avoiding sensitive environmental resources such as wetlands; a nd

• access to existing nuclear testing and research.

This process ultimately led Kairos to identify two reasonable a lternative sites for a more detailed environmental analysis, the proposed Oak Ridge site and the alt ernative Eagle Rock site.

The NRC staff determined in the final EIS that the potential en vironmental impacts from constructing the Hermes test reactor at the proposed site in Oa k Ridge would be SMALL for each environmental resource cons idered. Potential environmental impacts from constructing the reactor at the alternative Eagle Rock site would be SMALL f or most environmental resources but would be MODERATE for land use and visual resourc es, ecological resources, and historic and cultural resources. These MODERATE conclusion s reflect the fact that building the proposed Hermes facilities at the Eagle Rock site would req uire disturbance of soils supporting natural vegetation and potentially containing subsur face archaeological resources.

Additionally, the visual appearance of the Hermes facilities co uld be noticeably intrusive in the rural setting of the Eagle Rock site. In contrast, building th e Hermes facilities at the proposed Oak Ridge site would disturb only lands previously disturbed by past industrial development of now-razed Oak Ridge Gaseous Diffusion Plant buildings and would take place within an existing industrial park (the Heritage Center in the East Tennessee Tech nology Park) that already contains industrial infrastructure and buildings.

iii. Comparison of the Costs and Benefits of the Alternatives

In Section 4.3 of the final EIS, the NRC staff described the co sts and benefits of the proposed action as well as alternatives to the proposed action. In weig hing the costs and benefits, the NRC staff determined that the overall benefits of the proposed Hermes test reactor at the Oak Ridge site outweigh the disadvantages and costs. The NRC staff concludes that the proposed Hermes test reactor (with the appropriate mitigation measures i dentified below by the NRC staff) would have accrued benefits that most likely would outweigh its economic, environmental, and social costs.

CONSULTATIONS UNDER NHPA SECTION 106

NHPA Section 106 consultation for the Kairos Hermes environment al review is documented in Section 3.5 of the Final EIS. At the time of publishing the fi nal EIS, NHPA Section 106 consultation with the applicant and a Tribal party was ongoing and the consulting parties had agreed upon a path forward to support NHPA Section 106 consulta tion closure. Kairos agreed to work with a geoarchaeologist, qualified under Secretary of I nterior standards to develop a methodology for a reconnaissance field investigation and make a ppropriate updates to the Archaeological Resources Monitoring and Unanticipated Discovery Plan. [PLACEHOLDER for including the outcome of the NHPA Section 106 consultation.]

MITIGATION MEASURES

The NRC has taken all practicable measures within its jurisdict ion to avoid or minimize environmental harm from the proposed action. Construction, ope rations, and decommissioning of the Hermes test reactor at the proposed site in Oak Ridge wo uld have SMALL environmental impacts in all resource areas. An Environmental Protection Pla n is included as Appendix A in the CP to ensure compliance with the Endangered Species Act of 1973, as amended (ESA),

and to ensure that the Commission is kept informed of other env ironmental matters. The Environmental Protection Plan describes reporting requirements regarding potential impacts to protected environmental resources during construction activitie s. The Environmental Protection Plan is intended to be consistent with Federal, State, and loca l requirements for environmental protection. The NRC is not other wise imposing any license conditions regarding mitigation measures or requiring any new environmental monitoring programs.

Below are mitigation measures and best management practices des cribed in Table 5-2 of the final EIS with respect to individual resource areas.

Land Use and Visual Resources

Kairos plans to restore lands temporarily disturbed for parking or staging with native plants or landscaping. Kairos plans to establish fencing, retain trees n ear the site perimeter, and install landscaping. Best management practices (BMPs) proposed by Kair os would control erosion and runoff. Kairos would have to comply with City of Oak Ridge zoning ordinances.

Air Quality and Noise

BMPs proposed by Kairos would control dust. Construction equip ment and vehicles would be properly maintained. Posted speed limits, traffic controls, an d administrative measures such as staggered shift hours to reduce traffic noise would be implemen ted.

Geologic and Water Resources

Kairos would use BMPs to manage stormwater and control erosion and runoff. Kairos would develop and implement a stormwater pollution prevention plan. Water from dewatering processes would be disposed of in accordance with DOE requireme nts established in the deed to the site.

Ecological resources

No mitigation is proposed with respect to wildlife. BMPs propo sed by Kairos would control runoff and sedimentation of aquatic habitats adjoining the site. The Environmental Protection Plan outlines NRC responsibilities under the Endangered Species Act of 1973.

Historic and Cultural Properties

Kairos enlisted the expertise of a geoarchaeologist, qualified under Secretary of Interiors standards, to review all information related to the proposed pr oject, to develop a methodology for, and implement actions, to conduct a reconnaissance field i nvestigation, and to update the Archaeological Resources Monitoring and Unanticipated Discovery Plan. [PLACEHOLDER for any developments resulting from consultation closure]

Socioeconomics

No mitigation is proposed.

Human Health

Kairos would implement BMPs to control human exposure to dust. Site-specific training of workers would minimize potential for injuries. The NRC staff e xpects that Kairos would implement normal safety practices contained in Occupational Saf ety and Health Administration regulations in 29 CFR Part 1910.

Nonradiological Waste Management

Kairos would implement recycling and reuse programs.

Transportation

No mitigation measures are proposed.

Accidents

No mitigation measures are proposed.

CULTURAL RESOURCES

[This subsection is a PLACEHOLDER where the NRC staff will desc ribe the outcome from closing of the consultations under Section 106 of the National Historic Preservation Act.]

DETERMINATION

Based on an independent review, analysis, and evaluation contai ned in the final EIS; careful consideration of all the identified social, economic, and envir onmental factors and input received from other Federal, State, and local agencies, Tribes, organiza tions, and the public; consideration of the mitigation measures outlined above; and th e input received during the mandatory hearing; it is determined that the standards for issu ance of a CP, as described in 10 CFR Part 50, have been met and that the requirements of Section 102 of NEPA have been satisfied.

PREPARED BY

Peyton Doub, Project Manager Environmental New Reactors Branch Division of Rulemaking, Environmental, and Financial Support Office of Nuclear Material Safety and Safeguards

REVIEWEDBY: APPROVED BY:

Kenneth Erwin, Branch Chief Christ opher M. Regan