Federal Register / Vol. 83, No. 248 / Friday, December 28, 2018 / Notices 67365 

Estimated Total Annual Burden: 200 

hours. 

Total Annualized capital/startup 

costs: n/a. 

Total Annual costs: $5,546. 

OMB is particularly interested in 

comments that help the agency to: 

• Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the agency, including 

whether the information will have 

practical utility; 

• Evaluate the accuracy of the 

agency’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

• Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

• Minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology 

(e.g., permitting electronic submission 

of responses). 

Dated: December 18, 2018. 

Kim Miller, 

Grants Management Specialist, Office of 

Grants Policy and Management. 

[FR Doc. 2018–27652 Filed 12–27–18; 8:45 am] 

BILLING CODE 7036–01–P 

NATIONAL TRANSPORTATION 

SAFETY BOARD 

Sunshine Act Meeting 

TIME AND DATE: 9:30 a.m., Tuesday, 

January 15, 2019. 

PLACE: NTSB Conference Center, 429 

L’Enfant Plaza SW, Washington, DC 

20594. 

STATUS: The one item is open to the 

public. 

MATTERS TO BE CONSIDERED: 

58626 Aircraft Accident Report— 

Runway Overrun during Rejected 

Takeoff, Ameristar Air Cargo, Inc., 

dba Ameristar Charters, flight 9363, 

Boeing MD–83, N786TW, Ypsilanti, 

Michigan, March 8, 2017. 

NEWS MEDIA CONTACT: Telephone: (202) 

314–6100. 

The press and public may enter the 

NTSB Conference Center one hour prior 

to the meeting for set up and seating. 

Individuals requesting specific 

accommodations should contact 

Rochelle McCallister at (202) 314–6305 

or by email at Rochelle.McCallister@

ntsb.gov by Wednesday, January 9, 

2019. 

The public may view the meeting via 

a live or archived webcast by accessing 

a link under ‘‘News & Events’’ on the 

NTSB home page at www.ntsb.gov. 

Schedule updates, including weatherrelated cancellations, are also available 

at www.ntsb.gov. 

FOR MORE INFORMATION CONTACT: Candi 

Bing at (202) 314–6403 or by email at 

bingc@ntsb.gov. 

FOR MEDIA INFORMATION CONTACT: Peter 

Knudson at (202) 314–6100 or by email 

at peter.knudson@ntsb.gov. 

Dated: December 21, 2018. 

LaSean McCray, 

Assistant Federal Register Liaison Officer. 

[FR Doc. 2018–28406 Filed 12–26–18; 4:15 pm] 

BILLING CODE 7533–01–P 

NUCLEAR REGULATORY 

COMMISSION 

[Docket No. 50–219; NRC–2018–0288] 

Exelon Generation Company, LLC; 

Oyster Creek Nuclear Generating 

Station 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Exemption; issuance. 

SUMMARY: The U.S. Nuclear Regulatory 

Commission (NRC) is issuing an 

exemption in response to a letter dated 

March 29, 2018, as supplemented by a 

letter dated May 8, 2018, exemption 

request from Exelon Generation 

Company, LLC (Exelon or the licensee). 

The exemption permits Exelon to 

reduce the minimum coverage limit for 

onsite property damage insurance from 

$1.06 billion to $50 million for Oyster 

Creek Nuclear Generating Station. 

DATES: The exemption was issued on 

December 19, 2018. 

ADDRESSES: Please refer to Docket ID 

NRC–2018–0288 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 Web Site: Go to 

http://www.regulations.gov and search 

for Docket ID NRC–2018–0288. Address 

questions about Docket IDs in 

Regulations.gov to Krupskaya Castellon; 

telephone: 301–287–9221; e-mail: 

Krupskaya.Castellon@nrc.gov. 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 publiclyavailable documents online in the 

ADAMS Public Documents collection at 

http://www.nrc.gov/reading-rm/ 

adams.html. To begin the search, select 

‘‘Begin Web-based ADAMS Search.’’ For 

problems with ADAMS, please contact 

the NRC’s Public Document Room (PDR) 

reference staff at 1–800–397–4209, 301– 

415–4737, or by e-mail to pdr.resource@

nrc.gov. The ADAMS accession number 

for each document referenced (if it is 

available in ADAMS) is provided the 

first time that it is mentioned in this 

document. 

• NRC’s PDR: You may examine and 

purchase copies of public documents at 

the NRC’s PDR, Room O1–F21, One 

White Flint North, 11555 Rockville 

Pike, Rockville, Maryland 20852. 

FOR FURTHER INFORMATION CONTACT: John 

G. Lamb, Office of Nuclear Reactor 

Regulation, U.S. Nuclear Regulatory 

Commission, Washington, DC 20555– 

0001; telephone: 301–415–3100; e-mail: 

John.Lamb@nrc.gov. 

SUPPLEMENTARY INFORMATION: The text of 

the exemption is attached. 

Dated at Rockville, Maryland, this 21st day 

of December 2018. 

For the Nuclear Regulatory Commission. 

John G. Lamb, 

Senior Project Manager, Special Projects and 

Process Branch, Division of Operating Reactor 

Licensing, Office of Nuclear Reactor 

Regulation. 

Attachment—Exemption 

NUCLEAR REGULATORY COMMISSION 

Docket No. 50–219 

Exelon Generation Company, LLC 

Oyster Creek Nuclear Generating Station 

Exemption 

I. Background. 

Exelon Generation Company, LLC (Exelon, 

the licensee), is the holder of Renewed 

Facility Operating License No. DPR–16 for 

Oyster Creek Nuclear Generating Station 

(Oyster Creek). By letter dated February 14, 

2018 (Agencywide Documents Access and 

Management System (ADAMS) Accession 

No. ML18045A084), Exelon submitted to the 

U.S. Nuclear Regulatory Commission (NRC) a 

certification in accordance with Section 

50.82(a)(1)(i) of Title 10 of the Code of 

Federal Regulations (10 CFR), indicating that 

it plans to cease permanent operation no later 

than October 31, 2018. Exelon permanently 

ceased operations at Oyster Creek on 

September 17, 2018. By letter dated 

September 25, 2018 (ADAMS Accession No. 

ML18268A258), Exelon certified that all fuel 

was removed from the Oyster Creek reactor 

vessel. The facility consists of a permanently 

shutdown and defuled boiling-water reactor 

located in the town of Forked River, Ocean 

County, New Jersey. 


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II. Request/Action. 

Pursuant to 10 CFR 50.12, ‘‘Specific 

exemptions,’’ Exelon requested an exemption 

from 10 CFR 50.54(w)(1), by letter dated 

March 29, 2018 (ADAMS Accession No. 

ML18088A237), as supplemented by a letter 

dated May 8, 2018 (ADAMS Accession No. 

ML18128A291). The exemption from the 

requirements of 10 CFR 50.54(w)(1) would 

permit the licensee to reduce the required 

level of onsite property damage insurance 

from $1.06 billion to $50 million for Oyster 

Creek. 

The regulation at 10 CFR 50.54(w)(1) 

requires each licensee to have and maintain 

onsite property damage insurance to stabilize 

and decontaminate the reactor and reactor 

site in the event of an accident. The onsite 

insurance coverage must be either $1.06 

billion or whatever amount of insurance is 

generally available from private sources 

(whichever is less). 

The licensee states that the risk of an 

incident at a permanently shutdown and 

defueled reactor is much less than the risk 

from an operating power reactor. In addition, 

since reactor operation is no longer 

authorized at Oyster Creek, there are no 

events that would require the stabilization of 

reactor conditions after an accident. 

Similarly, the risk of an accident that would 

result in significant onsite contamination at 

Oyster Creek is also much lower than the risk 

of such an event at operating reactors. 

Therefore, Exelon is requesting an exemption 

from 10 CFR 50.54(w)(1) to reduce its onsite 

property damage insurance from $1.06 

billion to $50 million, commensurate with 

the reduced risk of an incident at the 

permanently shutdown and defueled Oyster 

Creek site. 

III. Discussion. 

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 

when (1) the exemptions are authorized by 

law, will not present an undue risk to public 

health or safety, and are consistent with the 

common defense and security; and (2) any of 

the special circumstances listed in 10 CFR 

50.12(a)(2) are present. 

The financial protection limits of 10 CFR 

50.54(w)(1) were established after the Three 

Mile Island accident out of concern that 

licensees may be unable to financially cover 

onsite cleanup costs in the event of a major 

nuclear accident. The specified $1.06 billion 

coverage amount requirement was developed 

based on an analysis of an accident at a 

nuclear reactor operating at power, resulting 

in a large fission product release and 

requiring significant resource expenditures to 

stabilize the reactor and ultimately 

decontaminate and cleanup the site. 

These cost estimates were developed based 

on the spectrum of postulated accidents for 

an operating nuclear reactor. Those costs 

were derived from the consequences of a 

release of radioactive material from the 

reactor. Although the risk of an accident at 

an operating reactor is very low, the 

consequences onsite and offsite can be 

significant. In an operating plant, the high 

temperature and pressure of the reactor 

coolant system (RCS), as well as the 

inventory of relatively short-lived 

radionuclides, contribute to both the risk and 

consequences of an accident. With the 

permanent cessation of reactor operations at 

Oyster Creek and the permanent removal of 

the fuel from the reactor vessel, such 

accidents are no longer possible. As a result, 

the reactor vessel, RCS, and supporting 

systems no longer operate and have no 

function related to the storage of the 

irradiated fuel. Therefore, postulated 

accidents involving failure or malfunction of 

the reactor, RCS, or supporting systems are 

no longer be applicable. 

During reactor decommissioning, the 

largest radiological risks are associated with 

the storage of spent fuel onsite. By letter 

dated March 29, 2018, as supplemented by 

letter dated May 8, 2018, exemption request, 

Exelon discusses both design-basis and 

beyond design-basis events involving 

irradiated fuel stored in the spent fuel pool 

(SFP). The licensee determined that there are 

no possible design-basis events at Oyster 

Creek that could result in an offsite 

radiological release exceeding the limits 

established by the U.S. Environmental 

Protection Agency’s (EPA) early-phase 

Protective Action Guidelines (PAGs) of 1 rem 

(roentgen equivalent man) at the exclusion 

area boundary, as a way to demonstrate that 

any possible radiological releases would be 

minimal and not require precautionary 

protective actions (e.g., sheltering in place or 

evacuation). The NRC staff evaluated the 

radiological consequences associated with 

various decommissioning activities, and 

design-basis accidents at Oyster Creek, in 

consideration of a permanently shutdown 

and defueled condition. The possible designbasis accident scenarios at Oyster Creek have 

greatly reduced radiological consequences. 

Based on its review, the NRC staff concluded 

that no reasonably conceivable design-basis 

accident exists that could cause an offsite 

release greater than the EPA PAGs. 

The only incident that might lead to a 

significant radiological release at a 

decommissioning reactor is a zirconium fire. 

The zirconium fire scenario is a postulated, 

but highly unlikely, beyond design-basis 

accident scenario that involves loss of water 

inventory from the SFP, resulting in a 

significant heatup of the spent fuel, and 

culminating in substantial zirconium 

cladding oxidation and fuel damage. The 

probability of a zirconium fire scenario is 

related to the decay heat of the irradiated fuel 

stored in the SFP. Therefore, the risks from 

a zirconium fire scenario continue to 

decrease as a function of the time since 

Oyster Creek has been permanently shut 

down. 

The Commission has previously authorized 

a lesser amount of onsite financial protection, 

based on this analysis of the zirconium fire 

risk. In SECY–96–256, ‘‘Changes to Financial 

Protection Requirements for Permanently 

Shutdown Nuclear Power Reactors, 10 CFR 

50.54(w)(1) and 10 CFR 140.11,’’ dated 

December 17, 1996 (ADAMS Accession No. 

ML15062A483), the NRC staff recommended 

changes to the power reactor financial 

protection regulations that would allow 

licensees to lower onsite insurance levels to 

$50 million upon demonstration that the fuel 

stored in the SFP can be air-cooled. In its 

Staff Requirements Memorandum to SECY– 

96–256, dated January 28, 1997 (ADAMS 

Accession No. ML15062A454), the 

Commission supported the NRC staff’s 

recommendation that, among other things, 

would allow permanently shutdown power 

reactor licensees to reduce commercial onsite 

property damage insurance coverage to $50 

million when the licensee was able to 

demonstrate the technical criterion that the 

spent fuel could be air-cooled if the SFP was 

drained of water. The NRC staff has used this 

technical criterion to grant similar 

exemptions to other decommissioning 

reactors (e.g., Maine Yankee Atomic Power 

Station, published in the Federal Register on 

January 19, 1999 (64 FR 2920); and Zion 

Nuclear Power Station, published in the 

Federal Register on December 28, 1999 (64 

FR 72700)). These prior exemptions were 

based on these licensees demonstrating that 

the SFP could be air-cooled, consistent with 

the technical criterion discussed above. 

In SECY–00–0145, ‘‘Integrated Rulemaking 

Plan for Nuclear Power Plant 

Decommissioning,’’ dated June 28, 2000, and 

SECY–01–0100, ‘‘Policy Issues Related to 

Safeguards, Insurance, and Emergency 

Preparedness Regulations at 

Decommissioning Nuclear Power Plants 

Storing Fuel in the Spent Fuel Pool,’’ dated 

June 4, 2001 (ADAMS Accession Nos. 

ML003721626 and ML011450420, 

respectively), the NRC staff discussed 

additional information concerning SFP 

zirconium fire risks at decommissioning 

reactors and associated implications for 

onsite property damage insurance. Providing 

an analysis of when the spent fuel stored in 

the SFP is capable of air-cooling is one 

measure that can be used to demonstrate that 

the probability of a zirconium fire is 

exceedingly low. However, the NRC staff has 

more recently used an additional analysis 

that bounds an incomplete drain down of the 

SFP water, or some other catastrophic event 

(such as a complete drainage of the SFP with 

rearrangement of spent fuel rack geometry 

and/or the addition of rubble to the SFP). The 

analysis postulates that decay heat transfer 

from the spent fuel via conduction, 

convection, or radiation would be impeded. 

This analysis is often referred to as an 

adiabatic heatup. 

The licensee’s analyses referenced in its 

exemption request demonstrates that under 

conditions where the SFP water inventory 

has drained completely and only air-cooling 

of the stored irradiated fuel is available, there 

is reasonable assurance that after 12 months 

(365 days) from the permanent shutdown of 

the facility on September 17, 2018, the Oyster 

Creek spent fuel will remain at temperatures 

far below those associated with a significant 

radiological release. 

As discussed in the staff response to a 

question in SECY–00–0145, ‘‘the staff 

believes that full insurance coverage must be 

maintained for 5 years or until a licensee can 

show by analysis that its SFP is no longer 

vulnerable to such [a zirconium] fire.’’ 

The licensee’s adiabatic heatup analyses 

demonstrates that there would be at least 10 

hours after the loss of all means of cooling 


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(both air and/or water), before the spent fuel 

cladding would reach a temperature where 

the potential for a significant offsite 

radiological release could occur. The licensee 

states that for this loss of all cooling scenario, 

10 hours is sufficient time for personnel to 

respond with additional resources, 

equipment, and capability to restore cooling 

to the SFPs, even after a non-credible, 

catastrophic event. 

In the analysis provided in Attachment 2, 

‘‘Oyster Creek Nuclear Generating Station 

Zirconium Fire Analysis for Drained Spent 

Fuel Pool (Calculation C–1302–226–E310– 

457),’’ to the letter dated August 22, 2017 

(ADAMS Accession No. ML17234A082), as 

supplemented by letters dated March 8, 2018, 

and March 19, 2018 (ADAMS Accession Nos. 

ML18067A087 and ML18078A146, 

respectively), the licensee compared the 

conditions for the hottest fuel assembly 

stored in the SFP to a criterion proposed in 

SECY–99–168, ‘‘Improving Decommissioning 

Regulations for Nuclear Power Plants’’ 

(ADAMS Accession No. ML12265A598), 

applicable to offsite emergency response for 

the unit in the decommissioning process. 

This criterion considers the time for the 

hottest assembly to heat up from 30 degrees 

Celsius (°C) to 900 °C adiabatically. If the 

heatup time is greater than 10 hours, then 

offsite emergency preplanning involving the 

plant is not necessary. Based on the limiting 

fuel assembly for decay heat and adiabatic 

heatup analysis presented in Attachment 2 to 

the application, at 12 months (365 days) after 

permanent cessation of power operations 

(i.e., 12 months decay time), the time for the 

hottest fuel assembly to reach 900 °C is 10 

hours after the assemblies have been 

uncovered. As stated in NUREG–1738, 

‘‘Technical Study of Spent Fuel Pool 

Accident Risk at Decommissioning Nuclear 

Power Plants’’ (ADAMS Accession No. 

ML010430066), 900 °C is an acceptable 

temperature to use for assessing onset of 

fission product release under transient 

conditions (to establish the critical decay 

time for determining availability of 10 hours 

for deployment of mitigation equipment and, 

if necessary, for offsite agencies to take 

appropriate action to protect the health and 

safety of the public, if fuel and cladding 

oxidation occurs in air). The NRC staff 

reviewed the calculation to verify that 

important physical properties of materials 

were within acceptable ranges and the results 

were accurate. The NRC staff determined that 

physical properties were appropriate. 

Therefore, the NRC staff found that after 12 

months (365 days) from the permanent 

shutdown of the facility on September 17, 

2018, more than 10 hours would be available 

before a significant offsite release could 

begin. The NRC staff concluded that the 

adiabatic heatup calculation provided an 

acceptable method for determining the 

minimum time available for deployment of 

mitigation equipment and, if necessary, 

implementing measures under a 

comprehensive general emergency plan. 

The NRC staff performed an evaluation of 

the design-basis accidents for Oyster Creek 

being permanently defueled as part of SECY– 

18–0062, ‘‘Request By The Exelon Generation 

Company, LLC For Exemptions From Certain 

Emergency Planning Requirements For The 

Oyster Creek Nuclear Generating Station,’’ 

dated May 31, 2018 (ADAMS Accession No. 

ML18030B340). 

Based on the evaluation in SECY–18–0062 

and SECY–96–256, ‘‘Changes to Financial 

Protection Requirements for Permanently 

Shutdown Nuclear Power Reactors, 10 CFR 

50.54(w)(1) and 10 CFR 140.11,’’ dated 

December 17, 1996 (ADAMS Accession No. 

ML15062A483), the NRC staff determined 

$50 million to be an adequate level of onsite 

property damage insurance for a 

decommissioning reactor, once the spent fuel 

in the SFP is no longer susceptible to a 

zirconium fire. The NRC staff has postulated 

that there is still a potential for other 

radiological incidents at a decommissioning 

reactor that could result in significant onsite 

contamination besides a zirconium fire. In 

SECY–96–256, the NRC staff cited the 

rupture of a large contaminated liquid storage 

tank (∼450,000 gallon), causing soil 

contamination and potential groundwater 

contamination, as the most costly postulated 

event to decontaminate and remediate (other 

than a SFP zirconium fire). The postulated 

large liquid radiological waste storage tank 

rupture event was determined to have a 

bounding onsite cleanup cost of 

approximately $50 million. Therefore, the 

NRC staff determined that the licensee’s 

proposal to reduce onsite insurance to a level 

of $50 million would be consistent with the 

bounding cleanup and decontamination cost, 

as discussed in SECY–96–256, to account for 

the postulated rupture of a large liquid 

radiological waste tank at the Oyster Creek 

site, should such an event occur. 

The NRC staff has determined that the 

licensee’s proposed reduction in onsite 

property damage insurance coverage to a 

level of $50 million is consistent with SECY– 

96–256 and subsequent insurance 

considerations, resulting from additional 

zirconium fire risks, as discussed in SECY– 

00–0145 and SECY–01–0100. In addition, the 

NRC staff notes that similar exemptions have 

been granted to other permanently shutdown 

and defueled power reactors, upon 

demonstration that the criterion of the 

zirconium fire risks from the irradiated fuel 

stored in the SFP is of negligible concern. As 

previously stated, the NRC staff concluded 

that after 12 months (365 days) from 

permanent shutdown of the facility on 

September 17, 2018, sufficient irradiated fuel 

decay time has elapsed at Oyster Creek to 

decrease the probability of an onsite 

radiological release from a postulated 

zirconium fire accident to negligible levels. 

In addition, the licensee’s proposal to reduce 

onsite insurance to a level of $50 million is 

consistent with the maximum estimated 

cleanup costs for the recovery from the 

rupture of a large liquid radwaste storage 

tank. Finally, the NRC staff notes that in 

accordance with the Oyster Creek Post 

Shutdown Decommissioning Activities 

Report (PSDAR) dated May 21, 2018 

(ADAMS Accession No. ML18141A775), all 

spent fuel will be removed from the SFPs and 

moved into dry storage at an onsite 

independent spent fuel storage installation 

by the end of March 2024, and the 

probability of an initiating event that would 

threaten pool integrity occurring before that 

time is extremely low, which further 

supports the conclusion that the zirconium 

fire risk is negligible. 

A. The Exemption is Authorized by Law 

The requested exemption from 10 CFR 

50.54(w)(1) would allow Exelon to reduce the 

minimum coverage limit for onsite property 

damage insurance. 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. 

As explained above, the NRC staff has 

determined that the licensee’s proposed 

reduction in onsite property damage 

insurance coverage to a level of $50 million 

is consistent with SECY–96– 256. Moreover, 

the NRC staff concluded that 12 months (365 

days) after the permanent shutdown of the 

facility, sufficient irradiated fuel decay time 

will have elapsed at Oyster Creek to decrease 

the probability of an onsite and offsite 

radiological release from a postulated 

zirconium fire accident to negligible levels. 

In addition, the licensee’s proposal to reduce 

onsite insurance to a level of $50 million is 

consistent with the maximum estimated 

cleanup costs for the recovery from the 

rupture of a large liquid radiological waste 

storage tank. 

The NRC staff has determined that granting 

the licensee’s proposed exemption will not 

result in a violation of the Atomic Energy Act 

of 1954, as amended, or the Commission’s 

regulations. Therefore, based on its review of 

Exelon’s exemption request as discussed 

above, and consistent with SECY–96–256, 

the NRC staff concludes that the exemption 

is authorized by law. 

B. The Exemption Presents No Undue Risk to 

the Public Health and Safety 

The onsite property damage insurance 

requirements of 10 CFR 50.54(w)(1) were 

established to provide financial assurance 

that following a significant nuclear incident, 

onsite conditions could be stabilized and the 

site decontaminated. The requirements of 10 

CFR 50.54(w)(1) and the existing level of 

onsite insurance coverage for Oyster Creek 

are predicated on the assumption that the 

reactor is operating. However, Oyster Creek 

permanently shutdown on September 17, 

2018, and defueled on September 24, 2018. 

The permanently defueled status of the 

facility results in a significant reduction in 

the number and severity of potential 

accidents, and correspondingly, a significant 

reduction in the potential for and severity of 

onsite property damage. The proposed 

reduction in the amount of onsite insurance 

coverage does not impact the probability or 

consequences of potential accidents. The 

proposed level of insurance coverage is 

commensurate with the reduced 

consequences of potential nuclear accidents 

at Oyster Creek. Therefore, the NRC staff 

concludes that granting the requested 

exemption will not present an undue risk to 

the health and safety of the public. 

C. The Exemption Is Consistent With the 

Common Defense and Security 

The proposed exemption would not 

eliminate any requirements associated with 

physical protection of the site and would not 


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adversely affect Exelon’s ability to physically 

secure the site or protect special nuclear 

material. Physical security measures at 

Oyster Creek are not affected by the 

requested exemption. Therefore, the 

proposed exemption is consistent with the 

common defense and security. 

D. Special Circumstances 

Special circumstances, in accordance with 

10 CFR 50.12(a)(2)(ii), are present whenever 

application of the regulation in the particular 

circumstances is not necessary to achieve the 

underlying purpose of the regulation. 

The underlying purpose of 10 CFR 

50.54(w)(1) is to provide reasonable 

assurance that adequate funds will be 

available to stabilize reactor conditions and 

cover onsite cleanup costs associated with 

site decontamination, following an accident 

that results in the release of a significant 

amount of radiological material. Oyster Creek 

permanently shut down on September 17, 

2018, and permanently defueled on 

September 25, 2018, it is no longer possible 

for the radiological consequences of 

design-basis accidents or other credible 

events at Oyster Creek to exceed the limits 

of the EPA PAGs at the exclusion area 

boundary. The licensee has evaluated the 

consequences of highly unlikely, beyonddesign-basis conditions involving a loss of 

coolant from the SFP. The analyses show that 

after 12 months (365 days) from cessation of 

power operations on September 17, 2018, the 

likelihood of such an event leading to a large 

radiological release is negligible. The NRC 

staff’s evaluation of the licensee’s analyses 

confirm this conclusion. 

The NRC staff also finds that the licensee’s 

proposed $50 million level of onsite 

insurance is consistent with the bounding 

cleanup and decontamination cost, as 

discussed in SECY–96–256, to account for 

the hypothetical rupture of a large liquid 

radiological waste tank at the Oyster Creek 

site, should such an event occur. Therefore, 

the NRC staff concludes that the application 

of the current requirements in 10 CFR 

50.54(w)(1) to maintain $1.06 billion in 

onsite insurance coverage is not necessary to 

achieve the underlying purpose of the rule 

for the permanently shutdown and defueled 

Oyster Creek reactor. 

Under 10 CFR 50.12(a)(2)(iii), special 

circumstances 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 NRC staff concludes that if the 

licensee was required to continue to maintain 

an onsite insurance level of $1.06 billion, the 

associated insurance premiums would be in 

excess of those necessary and commensurate 

with the radiological contamination risks 

posed by the site. In addition, such insurance 

levels would be significantly in excess of 

other decommissioning reactor facilities that 

have been granted similar exemptions by the 

NRC. 

The NRC staff finds that compliance with 

the existing rule would result in an undue 

hardship or other costs that are significantly 

in excess of those contemplated when the 

regulation was adopted and are significantly 

in excess of those incurred by others 

similarly situated. 

Therefore, the special circumstances 

required by 10 CFR 50.12(a)(2)(ii) and 10 CFR 

50.12(a)(2)(iii) exist. 

E. Environmental Considerations 

The NRC approval of the exemption to 

insurance or indemnity requirements belongs 

to a category of actions that the Commission, 

by rule or regulation, has declared to be a 

categorical exclusion, after first finding that 

the category of actions does not individually 

or cumulatively have a significant effect on 

the human environment. Specifically, the 

exemption is categorically excluded from 

further analysis under § 51.22(c)(25). 

Under 10 CFR 51.22(c)(25), granting of an 

exemption from the requirements of any 

regulation of Chapter I to 10 CFR is a 

categorical exclusion provided that (i) there 

is no significant hazards consideration; (ii) 

there is no significant change in the types or 

significant increase in the amounts of any 

effluents that may be released offsite; (iii) 

there is no significant increase in individual 

or cumulative public or occupational 

radiation exposure; (iv) there is no significant 

construction impact; (v) there is no 

significant increase in the potential for or 

consequences from radiological accidents; 

and (vi) the requirements from which an 

exemption is sought involve: surety, 

insurance, or indemnity requirements. 

As the Deputy Director, Division of 

Operating Reactor Licensing, Office of 

Nuclear Reactor Regulation, I have 

determined that approval of the exemption 

request involves no significant hazards 

consideration because reducing the licensee’s 

onsite property damage insurance for Oyster 

Creek does not (1) involve a significant 

increase in the probability or consequences 

of an accident previously evaluated; or (2) 

create the possibility of a new or different 

kind of accident from any accident 

previously evaluated; or (3) involve a 

significant reduction in a margin of safety. 

The exempted financial protection regulation 

is unrelated to the operation of Oyster Creek. 

Accordingly, there is no significant change in 

the types or significant increase in the 

amounts of any effluents that may be released 

offsite; and no significant increase in 

individual or cumulative public or 

occupational radiation exposure. 

In addition, the exempted regulation is not 

associated with construction, so there is no 

significant construction impact. The 

exempted regulation does not concern the 

source term (i.e., potential amount of 

radiation in an accident), nor mitigation. 

Therefore, there is no significant increase in 

the potential for, or consequences of, a 

radiological accident. In addition, there 

would be no significant impacts to biota, 

water resources, historic properties, cultural 

resources, or socioeconomic conditions in 

the region. Moreover, the requirement for 

onsite property damage insurance involves 

surety, insurance, and indemnity matters. 

Accordingly, the exemption request meets 

the eligibility criteria for categorical 

exclusion set forth in 10 CFR 51.22(c)(25). 

Therefore, pursuant to 10 CFR 51.22(b) and 

51.22(c)(25), no environmental impact 

statement or environmental assessment need 

be prepared in connection with the approval 

of this exemption request. 

IV. Conclusions. 

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 the public health 

and safety, and is consistent with the 

common defense and security. Also, special 

circumstances are present as set forth in 10 

CFR 50.12. 

Therefore, the Commission hereby grants 

Exelon an exemption from the requirements 

of 10 CFR 50.54(w)(1) for Oyster Creek. The 

licensee permanently ceased power operation 

at Oyster Creek on September 17, 2018. The 

exemption will permit Oyster Creek to lower 

the minimum required onsite insurance to 

$50 million no earlier than 12 months (365 

days) after the licensee’s certification of 

permanent cessation of operation under 

§ 50.82(a)(1). 

The exemption is effective 12 months (365 

days) from the certification of permanent 

cessation of operation under § 50.82(a)(1). 

Dated at Rockville, Maryland, this 19th day 

of December 2018. 

For the Nuclear Regulatory Commission. 

/RA/ 

Kathryn M. Brock, 

Deputy Director, Division of Operating 

Reactor Licensing, Office of Nuclear Reactor 

Regulation. 

[FR Doc. 2018–28202 Filed 12–27–18; 8:45 am] 

BILLING CODE 7590–01–P 

NUCLEAR REGULATORY 

COMMISSION 

[Docket No. 50–219; NRC–2018–0288] 

Exelon Generation Company, LLC; 

Oyster Creek Nuclear Generating 

Station 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Exemption; issuance. 

SUMMARY: The U.S. Nuclear Regulatory 

Commission (NRC) is issuing 

exemptions in response to a letter dated 

March 29, 2018, as supplemented by a 

letter dated May 8, 2018, exemption 

request from Exelon Generation 

Company, LLC (Exelon or the licensee). 

The exemption permits Exelon to 

reduce the required level of primary 

offsite liability insurance from $450 

million to $100 million and to eliminate 

the requirement to carry secondary 

financial protection for Oyster Creek 

Nuclear Generating Station. 

DATES: The exemption was issued on 

December 19, 2018. 

ADDRESSES: Please refer to Docket ID 

NRC–2018–0288 when contacting the 


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