Kewaunee Solutions, Inc; Kewaunee Power Station; Exemption
| Published date | 22 February 2024 |
| Record Number | 2024-03543 |
| Citation | 89 FR 13381 |
| Court | Nuclear Regulatory Commission |
| Section | Notices |
Federal Register, Volume 89 Issue 36 (Thursday, February 22, 2024)
[Federal Register Volume 89, Number 36 (Thursday, February 22, 2024)]
[Notices]
[Pages 13381-13385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03543]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-305; NRC-2024-0023]
Kewaunee Solutions, Inc; Kewaunee Power Station; Exemption
AGENCY: Nuclear Regulatory Commission.
ACTION: Notice; issuance.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) has issued an
exemption in response to a request from Kewaunee Solutions, Inc. that
would permit it to use funds from the Kewaunee Power Station nuclear
decommissioning trust for the management of site restoration activities
and allow trust disbursements for site restoration activities to be
made without prior notice to the NRC.
DATES: The exemption was issued on January 26, 2024.
ADDRESSES: Please refer to Docket ID NRC-2024-0023 when contacting the
NRC about the availability of information regarding this document. You
may obtain publicly available information related to this document
using any of the following methods:
Federal Rulemaking Website: Go to https://www.regulations.gov and search
[[Page 13382]]
for Docket ID NRC-2024-0023. Address questions about Docket IDs in
Regulations.gov to Stacy Schumann; telephone: 301-415-0624; email:
[email protected]. For technical questions, contact the individual
listed in the For Further Information Contact section of this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may obtain publicly available documents online in the
ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``Begin Web-based ADAMS
Search.'' For problems with ADAMS, please contact the NRC's Public
Document Room (PDR) reference staff at 1-800-397-4209, at 301-415-4737,
or by email to [email protected]. The ADAMS accession number for
each document referenced (if it is available in ADAMS) is provided the
first time that it is mentioned in this document.
NRC's PDR: The PDR, where you may examine and order copies
of publicly available documents, is open by appointment. To make an
appointment to visit the PDR, please send an email to
[email protected] or call 1-800-397-4209 or 301-415-4737, between 8
a.m. and 4 p.m. eastern time (ET), Monday through Friday, except
Federal holidays.
FOR FURTHER INFORMATION CONTACT: Karl Sturzebecher, Office of Nuclear
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission,
Washington, DC 20555-0001, telephone: 301-415-8534, email:
[email protected].
SUPPLEMENTARY INFORMATION: The text of the exemption is attached.
Dated: February 15, 2024.
For the Nuclear Regulatory Commission.
Marlayna V. Doell,
Project Manager, Reactor Decommissioning Branch, Division of
Decommissioning, Uranium Recovery and Waste Programs, Office of Nuclear
Material Safety and Safeguards.
Attachment--Exemption
Nuclear Regulatory Commission
Docket No. 50-305
Kewaunee Solutions, Inc.
Kewaunee Power Station
Exemption
I. Background
The Kewaunee Power Station (KPS) consists of a permanently shutdown
and defueled pressurized water reactor located in Kewaunee County,
Wisconsin. On May 7, 2013, the licensee at that time, Dominion Energy
Kewaunee (DEK), permanently ceased power operations at KPS. On May 14,
2013, DEK certified that it had permanently defueled the KPS reactor
vessel (Agencywide Documents Access and Management System (ADAMS)
Accession No. ML13135A209). On May 21, 2014 (ML13225A224), the U.S.
Nuclear Regulatory Commission (NRC) approved an exemption from the
specific requirements of paragraph (a)(8)(i)(A) of Section 50.82
``Termination of license,'' of Part 50, ``Domestic Licensing of
Production and Utilization Facilities,'' of Title 10 of the Code of
Federal Regulations (10 CFR) and paragraph (h)(1)(iv) of 10 CFR 50.75,
``Reporting and recordkeeping for decommissioning planning,'' for KPS.
This exemption authorizes the licensee to use funds from the KPS
nuclear decommissioning trust (NDT) for the management of spent nuclear
fuel, and allows trust disbursements for spent fuel management to be
made without prior NRC notice.
By letter dated March 29, 2023 (ML23093A031), Kewaunee Solutions,
Inc., and EnergySolutions, LLC (Kewaunee Solutions and EnergySolutions,
respectively, or the licensees), submitted, pursuant to 10 CFR 50.12,
``Specific Exemptions,'' a request for an exemption to 10 CFR
50.82(a)(8)(i)(A) that would allow KPS to use funds from the NDT for
site restoration activities. Pursuant to 10 CFR 50.12, the licensees
also requested an exemption from 10 CFR 50.75(h)(1)(iv), which would
allow trust disbursements for site restoration activities to be made
without prior notice to the NRC, similar to withdrawals in accordance
with 10 CFR 50.82(a)(8) for decommissioning activities.
By letter dated October 5, 2023 (ML23278A100), the licensees
provided a response to an NRC request for additional information (RAI),
dated August 29, 2023 (ML23222A152), pertaining to decommissioning
trust fund (DTF) cash flows that were provided in the initial exemption
request submittal. The funds within the DTF were collected in
compliance with the 10 CFR 50.75 financial requirements while KPS was
operating. The licensees included with the exemption request a cash
flow analysis reflecting the balance of funds within the trust
throughout the decommissioning period, based upon a DECON
decommissioning method ending in 2055, which is the year of anticipated
license termination.
II. Request/Action
The request for an exemption from the requirements of 10 CFR
50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) would allow the licensees
to use funds from the KPS NDT for the management of site restoration
activities and allow trust disbursements for site restoration
activities to be made without prior notice to the NRC. The licensee's
initial basis for the exemption request relied upon financial and other
decommissioning data reflected in a May 13, 2021, letter from
EnergySolutions titled ``Notification of Amended Post Shutdown
Decommissioning Activities Report (Revision 2) for Kewaunee Power
Station'' (ML21145A083), as well as on decommissioning cost estimate
data provided with that letter. However, during the course of its
review the NRC staff concluded that the status of funding in the KPS
DTF had changed since submission of the May 13, 2021, letter.
Specifically, the NRC staff noted that there were significant
differences in the expenditure and cash flow data reported in the Post-
Shutdown Decommissioning Activities Report (PSDAR) and site-specific
decommissioning cost estimate (SSDCE) that formed the basis of the
exemption request, and a more recent DTF Status Report, dated March 30,
2023 (ML23089A304), for the KPS NDT, which reflects financial data
through December 31, 2022. Therefore, the NRC staff raised a concern
that the PSDAR and SSDCE data on which the NRC was to base its analysis
of the portion of the exemption request relating to the requirement in
10 CFR 50.82(a)(8)(i)(A), to allow use of funds from the KPS NDT for
site restoration activities, was outdated, and thus did not provide the
timely information necessary for the staff to complete its analysis.
Subsequently, the NRC staff requested additional information from
the licensees in an RAI letter dated August 29, 2023, requesting, in
part, ``. . . revised license termination, spent fuel management, and
site restoration plans, including forecasted cash flow expenditure
data, that reflect Kewaunee Solution's current assumptions about the
decommissioning method, decommissioning activities, and the schedule of
such activities for KPS,'' so that the staff could perform its analysis
of the requested exemption with more timely data. The licensees
responded by letter dated October 5, 2023, explaining that the basis
for demonstrating adequate funding for the exemption request is
provided in (1) the March 30, 2023, KPS DTF Status Report, which
includes detailed license termination, spent fuel management, and site
restoration costs; and (2) the total forecasted expenditure data
provided in
[[Page 13383]]
the RAI response, which is based on the DECON decommissioning method
and the current schedule for decommissioning and license termination
activities for KPS.
The requirement at 10 CFR 50.82(a)(8)(i)(A) restricts withdrawals
from an NDT to expenses for legitimate decommissioning activities
consistent with the definition in 10 CFR 50.2, ``Definitions.'' The
definition of ``decommission'' in 10 CFR 50.2 does not include
activities associated with site restoration. Specifically, the
definition of ``decommission'' in 10 CFR 50.2 is ``to remove a facility
or site safely from service and reduce residual radioactivity to a
level that permits (1) release of the property for unrestricted use and
termination of the license; or (2) release of the property under
restricted conditions and termination of the license.''
The requirement at 10 CFR 50.75(h)(1)(iv) also restricts the use of
DTF disbursements (other than for ordinary administrative costs and
other incidental expenses of the fund in connection with the operation
of the fund) to decommissioning expenses until final radiological
decommissioning is completed. While the NRC previously approved an
exemption for KPS to use funds from the KPS NDT for the management of
spent fuel, an additional exemption from 10 CFR 50.82(a)(8)(i)(A) and
10 CFR 50.75(h)(1)(iv) is needed to allow the licensees to use funds
from the KPS NDT for site restoration activities at KPS. The
requirement at 10 CFR 50.75(h)(1)(iv) further provides that, except for
withdrawals being made under 10 CFR 50.82(a)(8) or for payments of
ordinary administrative costs and other incidental expenses of the fund
in connection with the operation of the fund, no disbursement may be
made from the DTF without written notice to the NRC at least 30 working
days in advance. Therefore, an exemption from 10 CFR 50.75(h)(1)(iv) is
also needed to allow the licensees to use funds from the KPS NDT for
site restoration activities at KPS without prior NRC notification.
III. Discussion
Pursuant to 10 CFR 50.12, the Commission may, upon application by
any interested person or upon its own initiative, grant exemptions from
the requirements of 10 CFR part 50 (1) when the exemptions are
authorized by law, will not present an undue risk to the public health
and safety, and are consistent with the common defense and security;
and (2) when any of the special circumstances listed in 10 CFR
50.12(a)(2) are present. These special circumstances include, among
other things:
(ii) 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
(iii) Compliance would result in undue hardship or other costs
that are significantly in excess of those contemplated when the
regulation was adopted, or that are significantly in excess of those
incurred by others similarly situated.
A. Authorized by Law
The requested exemption from the requirements of 10 CFR
50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) would allow the licensees
to use a portion of the funds from the KPS DTF for site restoration
activities at KPS without prior notice to the NRC, in the same manner
that withdrawals are made under 10 CFR 50.82(a)(8) for decommissioning
activities and through use of a previously authorized exemption for KPS
spent fuel management activities. As stated above, 10 CFR 50.12 allows
the NRC to grant exemptions from the requirements of 10 CFR part 50
when the exemptions are authorized by law. The NRC staff has
determined, as explained below, that granting the licensees' proposed
exemption will not result in a violation of the Atomic Energy Act of
1954, as amended, or the Commission's regulations. Therefore, the
exemption is authorized by law.
B. No Undue Risk to Public Health and Safety
The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(1)(iv) is to provide reasonable assurance that adequate funds
will be available for the radiological decommissioning of power
reactors. Based on the licensees' PSDAR, SSDCE, the most recent KPS DTF
Status Report, additional information provided by the licensees in
response to the NRC staff's RAI on this exemption request, and
conclusions reached by the NRC staff in its independent cash flow
analysis, the use of a portion of the KPS DTF for site restoration
activities at KPS will not adversely impact the licensees' ability to
complete radiological decommissioning within 60 years and terminate the
KPS license. Furthermore, an exemption from 10 CFR 50.75(h)(1)(iv) to
allow KPS to make withdrawals from the DTF for site restoration
activities without prior written notification to the NRC will not
affect the sufficiency of funds in the DTF to accomplish radiological
decommissioning. This is because such withdrawals are still constrained
by the provisions of 10 CFR 50.82(a)(8)(i)(B)-(C) and are reviewable
under the annual reporting requirements of 10 CFR 50.82(a)(8)(v)-(vii).
Therefore, KPS decommissioning trust funds, in accordance with 10 CFR
50.82(a)(8)(i)(B)-(C), may only be used by the licensee if: (1) an
expenditure would not reduce the value of the decommissioning trust
below an amount necessary to place and maintain the reactor in a safe
storage condition if unforeseen conditions or expenses arise and; (2)
the withdrawals would not inhibit the ability of the licensees to
complete funding of any shortfalls in the DTF needed to ensure the
availability of funds to ultimately release the site and terminate the
license.
Based on the NRC staff's analysis of the information provided in
support of this exemption request, as supplemented, there are no new
accident precursors created by using the DTF in the proposed manner.
Thus, the probability of postulated accidents is not increased. In
addition, based on the above, the consequences of postulated accidents
are not increased. No changes are being made in the types or amounts of
effluents that may be released offsite. There is no significant
increase in occupational or public radiation exposure. Therefore, the
requested exemption will not present an undue risk to public health and
safety.
C. Consistent With the Common Defense and Security
The requested exemption would allow the licensees to use funds from
the KPS NDT for the management of site restoration activities and allow
trust disbursements for site restoration activities to be made without
prior notice to the NRC. Spent fuel management under paragraph (bb) of
10 CFR 50.54, ``Conditions of licenses,'' is an integral part of the
planned KPS decommissioning and license termination process; the NRC
previously approved an exemption for KPS to use funds from the KPS NDT
for the management of spent fuel. The current change, to enable the use
of a portion of the funds from the DTF for site restoration activities,
and to do so without prior written NRC notification, has no relation to
security issues. Therefore, the common defense and security is not
impacted by the requested exemption.
D. Special Circumstances
Special circumstances, in accordance with 10 CFR 50.12(a)(2)(ii),
are present whenever application of the regulation in the particular
circumstances is not
[[Page 13384]]
necessary to achieve the underlying purpose of the regulation.
The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(1)(iv), which restrict withdrawals from the DTF to expenses
for radiological decommissioning activities, is to provide reasonable
assurance that adequate funds will be available to complete
radiological decommissioning of power reactors and achieve license
termination. Strict application of these requirements would prohibit
the withdrawal of funds from the KPS DTF for activities other than
radiological decommissioning activities at KPS, such as for spent fuel
management and site restoration activities, until final radiological
decommissioning at KPS has been completed. As noted above, the NRC
previously approved an exemption for the licensees to use funds from
the KPS NDT for the management of spent fuel on May 21, 2014.
According to the March 30, 2023, KPS DTF Status Report, the DTF for
KPS contained $745.6 million as of December 31, 2022. The licensees'
analysis projects that the total remaining radiological decommissioning
costs at KPS will be approximately $654 million (2023 dollars),
including the costs for decommissioning the onsite independent spent
fuel storage installation (ISFSI). As required by 10 CFR 50.54(bb), the
licensees estimated the costs associated with spent fuel management at
KPS to be $36.1 million (2023 dollars). Site restoration costs are
estimated at $38.1 million (2023 dollars). This reflects a total
remaining estimated cost of approximately $728.2 million for
radiological decommissioning, spent fuel management, and site
restoration activities, with license termination anticipated in 2055.
In its analysis, the NRC staff assumed a 2 percent annual real rate of
return on the DTF balance as allowed by 10 CFR 50.75(e)(1)(ii), and
determined the projected earnings of the DTF.
The NRC staff's independent cash flow analysis projects that the
KPS DTF will contain approximately $84.3 million following completion
of radiological decommissioning activities at the site (year 2031), and
$122.9 million at the end of all license termination, spent fuel
management, and site restoration activities (year 2055), when
considering use of the KPS DTF for payment of spent fuel management and
site restoration expenses. The NRC staff's analysis aligns with the
cash flow analysis provided by the licensees in their submittals. Tax
liabilities related to DTF investments are not reflected in the NRC
staff's analysis.
The NRC staff confirmed that the current funds and projected
earnings of the KPS DTF provide reasonable assurance of adequate
funding to complete all NRC-required radiological; decommissioning
activities at KPS, as well as to pay for spent fuel management and site
restoration activities. Therefore, the NRC staff finds that the
licensees have provided reasonable assurance that adequate funds will
be available for the radiological decommissioning of KPS, even with the
disbursement of funds from the DTF for spent fuel management and site
restoration activities. Consequently, the NRC staff concludes that
application of the requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(1)(iv), in addition to application of a previously authorized
exemption for spent fuel management activities at KPS, which provide
that funds from the DTF only be used for radiological decommissioning
activities and not for site restoration activities, is not necessary to
achieve the underlying purpose of the rule. Thus, special circumstances
are present supporting approval of the exemption request.
In its submittal, the licensees also requested exemption from the
requirement of 10 CFR 50.75(h)(1)(iv) concerning prior written
notification to the NRC of withdrawals from the DTF to fund activities
other than radiological decommissioning. The underlying purpose of
notifying the NRC prior to withdrawal of funds from the DTF is to
provide the 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), 10 CFR 50.82(a)(8), and by the previously approved
exemption for spent fuel management expenditures from the DTF, which
could result in there being insufficient funds in the DTF to accomplish
radiological decommissioning.
By granting the exemption to 10 CFR 50.75(h)(1)(iv) and 10 CFR
50.82(a)(8)(i)(A), the NRC staff considers that withdrawals consistent
with the licensees' submittal dated March 29, 2023, are authorized. As
stated previously, the NRC staff determined that there are sufficient
funds in the KPS DTF to complete radiological decommissioning
activities, as well as to conduct spent fuel management and site
restoration activities, consistent with the licensees' PSDAR and SSDCE,
dated May 13, 2021, as well as the information provided in support of
its exemption request, as supplemented.
Pursuant to the requirements in 10 CFR 50.82(a)(8)(v) and (vii),
licensees are required to monitor and annually report to the NRC the
status of the DTF and the licensee's funding for spent fuel management.
These reports provide the NRC staff with awareness of, and the ability
to take action on, any actual or potential funding deficiencies.
Additionally, 10 CFR 50.82(a)(8)(vi) requires that the annual DTF
Status Report must include additional financial assurance to cover the
estimated cost of completion of radiological decommissioning if the sum
of the balance of any remaining decommissioning funds, plus earnings on
such funds calculated at not greater than a 2-percent real rate of
return, together with the amount provided by other financial assurance
methods being relied upon, does not cover the estimated cost to
complete decommissioning.
The requested exemption would not allow the withdrawal of funds
from the KPS DTF for any purpose that is not currently authorized in
the regulations, or that has previously been authorized by exemption
from the NRC, without prior notification to the NRC. Therefore, the
granting of the exemption to 10 CFR 50.75(h)(1)(iv) to allow the
licensees to make withdrawals from the KPS DTF to cover authorized
expenses for site restoration activities without prior written
notification to the NRC will still meet the underlying purpose of the
regulation.
Special circumstances, in accordance with 10 CFR 50.12(a)(2)(iii),
are present whenever compliance would result in undue hardship or other
costs that are significantly in excess of those contemplated when the
regulation was adopted, or that are significantly in excess of those
incurred by others similarly situated. The licensees state, and the NRC
staff has confirmed, that the KPS DTF contains funds in excess of the
estimated costs of radiological decommissioning. The licensees further
state that these excess funds are needed for spent fuel management and
site restoration activities. The NRC does not preclude the use of funds
from the NDT in excess of those needed for radiological decommissioning
for other purposes, such as spent fuel management or site restoration
activities.
The NRC has previously stated that funding for spent fuel
management and site restoration activities may be commingled in the
DTF, provided that the licensee is able to identify and account for the
radiological decommissioning funds separately from the funds set aside
for spent fuel
[[Page 13385]]
management and site restoration activities (see NRC Regulatory Issue
Summary 2001-07, ``10 CFR 50.75 Reporting and Recordkeeping for
Decommissioning Planning,'' Revision 1, dated January 8, 2009
(ML083440158), and Regulatory Guide 1.184, ``Decommissioning of Nuclear
Power Reactors,'' Revision 1, dated October 2013 (ML13144A840)).
Preventing access to those excess funds in DTFs because spent fuel
management and site restoration activities are not associated with
radiological decommissioning would create an unnecessary financial
burden without any corresponding safety benefit. The adequacy of the
KPS DTF to cover the cost of activities associated with site
restoration, in addition to radiological decommissioning and spent fuel
management, is supported by the licensees' SSDCE for KPS. If the KPS
DTF cannot be used for site restoration activities, the licensees would
need to obtain additional funding that would not be recoverable from
the DTF, or would have to modify the decommissioning approach and
methods planned at KPS. The NRC staff concludes that either outcome
would impose an unnecessary and undue burden significantly in excess of
that contemplated when 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(1)(iv) were adopted.
The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR
50.75(h)(1)(iv) would continue to be achieved by allowing the licensees
to use a portion of the KPS DTF for site restoration activities without
prior NRC notification, and compliance with the regulations would
result in an undue hardship or other costs that are significantly in
excess of those contemplated when the regulations were adopted. Thus,
the special circumstances required by 10 CFR 50.12(a)(2)(ii) and (iii)
exist and support the approval of the requested exemption.
E. Environmental Considerations
In accordance with paragraph (a) of 10 CFR 51.31, ``Determinations
based on environmental assessment,'' the Commission has determined that
the granting of this exemption will not have a significant effect on
the quality of the human environment, as discussed in the NRC staff's
Environmental Assessment and Finding of No Significant Impact published
on January 25, 2024 (89 FR 4999).
IV. Conclusion
In consideration of the above, the NRC staff finds that the
proposed exemption confirms the adequacy of funding in the KPS DTF,
considering growth, to complete radiological decommissioning of the
site and to terminate the license, as well as to cover the estimated
costs of spent fuel management and site restoration activities.
Accordingly, the Commission has determined that, pursuant to 10 CFR
50.12(a), the exemption is authorized by law, will not present an undue
risk to public health and safety, and is consistent with the common
defense and security. Also, special circumstances are present.
Therefore, the Commission hereby grants Kewaunee Solutions, Inc., and
EnergySolutions, LLC an exemption from the requirements of 10 CFR
50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) to allow the use of a
portion of the funds from the KPS DTF for site restoration activities
in accordance with (1) the licensees' PSDAR and SSCE, (2) forecasted
cost and scheduling information from the most recent KPS DTF Status
Report, and (3) as provided in response to the NRC's RAI on this
exemption request. Additionally, the Commission hereby grants the
licensees an exemption from the requirement of 10 CFR 50.75(h)(1)(iv)
to allow such withdrawals from the KPS DTF for site restoration
activities without prior NRC notification.
This exemption is effective upon issuance.
Dated: January 26, 2024.
For the Nuclear Regulatory Commission.
/RA/
Jane Marshall,
Director, Division of Decommissioning, Uranium Recovery, and Waste
Programs, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 2024-03543 Filed 2-21-24; 8:45 am]
BILLING CODE 7590-01-P
