[Federal Register Volume 80, Number 22 (Tuesday, February 3, 2015)]
[Notices]
[Pages 5795-5798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-02067]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-302; NRC-2015-0010]


Duke Energy Florida, Inc.; Crystal River Unit 3 Nuclear 
Generating Plant

AGENCY: Nuclear Regulatory Commission.

ACTION: Exemption; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing 
exemptions in response to a March 28, 2014, request from Duke Energy 
Florida, Inc. (DEF or the licensee), representing itself and the other 
owners. The exemptions permit the use of the Crystal River Unit 3 
Nuclear Generating Plant (CR-3) decommissioning trust fund (the Trust) 
for irradiated fuel management and site restoration activities in 
addition to decommissioning activities and allow the licensee to use 
withdrawals from the Trust for these purposes without prior 
notification to the NRC, similar to withdrawals for decommissioning 
activities. The NRC has reviewed the Trust and determined that, at this 
time, there is reasonable assurance of sufficient financial resources 
in the Trust for both irradiated fuel management and site restoration 
activities as well as to complete decommissioning activities.

ADDRESSES: Please refer to Docket ID NRC-2015-0010 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:
    <bullet> Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2015-0010. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-287-
3422; email: <a href="/cdn-cgi/l/email-protection#95d6f4e7faf9bbd2f4f9f9f4f2fdf0e7d5fbe7f6bbf2fae3"><span class="__cf_email__" data-cfemail="347755465b581a7355585855535c5146745a46571a535b42">[email protected]</span></a>. For technical questions, contact 
the individual(s) listed in the FOR FURTHER INFORMATION CONTACT section 
of this document.
    <bullet> NRC's Agencywide Documents Access and Management System 
(ADAMS): You may access publicly available documents online in the 
ADAMS public document collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``ADAMS Public Documents'' and 
then 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 email to <a href="/cdn-cgi/l/email-protection#126276603c6077617d67607177527c60713c757d64"><span class="__cf_email__" data-cfemail="f7879385d98592849882859492b7998594d9909881">[email protected]</span></a>. The 
ADAMS Accession number for each document referenced in this document 
(if that document is available in ADAMS) is provided the first time 
that a document is referenced.
    <bullet> 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: Michael Orenak, Office of Nuclear 
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001; telephone: 301-415-3229; email: <a href="/cdn-cgi/l/email-protection#cf82a6aca7aeaaa3e180bdaaa1aea48fa1bdace1a8a0b9"><span class="__cf_email__" data-cfemail="75381c161d1410195b3a07101b141e351b07165b121a03">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

I. Background

    DEF is the holder of Facility Operating License No. DPR-72, for CR-
3. By letter dated February 20, 2013 (ADAMS Accession No. ML13056A005), 
DEF submitted to the NRC a certification in accordance with Sections 
50.82(a)(1)(i) and 50.82(a)(1)(ii) of Title 10 of the Code of Federal 
Regulations (10 CFR) indicating that it had permanently ceased power 
operations at CR-3 and that the CR-3 reactor vessel had been 
permanently defueled. CR-3 has not operated since September 2009.
    By letter dated December 2, 2013, DEF submitted its Post Shutdown 
Decommissioning Activities Report (PSDAR) and the Site Specific 
Decommissioning Cost Estimate (DCE) as required by 10 CFR 
50.82(a)(4)(i) and 10 CFR 50.82(a) (8)(iii)(ADAMS Accession No. 
ML13340A009). By a separate letter dated December 2, 2013, DEF 
submitted an update to the CR-3 Irradiated Fuel Management Plan (IFMP) 
as required by 10 CFR 50.54(bb) (ADAMS Accession No. ML13340A008).
    The facility consists of a permanently shutdown and defueled 
pressurized-water reactor located in Citrus County, Florida.

II. Request/Action

    Pursuant to 10 CFR 50.12, ``Specific exemptions,'' by letter dated 
March 28, 2014 (ADAMS Accession No. ML14098A037), DEF submitted a 
request for exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(2). The exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(2) would permit the withdrawal and use of a portion of the 
funds in the Trust for financing irradiated fuel management and site 
restoration activities. The licensee's requested exemption from 10 CFR 
50.75(h)(2) would also permit the withdrawals from the Trust for these 
activities to be made without prior notification of the NRC, in the 
same manner that withdrawals are made

[[Page 5796]]

under 10 CFR 50.82(a)(8) for decommissioning activities.
    The requirements of 10 CFR 50.82(a)(8)(i)(A) restrict the use of 
decommissioning trust fund withdrawals to expenses for legitimate 
decommissioning activities consistent with the definition of 
decommissioning in 10 CFR 50.2. 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 release of the 
property for unrestricted use and termination of the license; or 
release of the property under restricted conditions and termination of 
the license.
    This definition addresses radiological decontamination and does not 
include other activities, such as irradiated fuel management or site 
restoration. The requirements of 10 CFR 50.75(h)(2) also restrict the 
use of decommissioning trust fund disbursements (other than for 
ordinary administrative costs and incidental expenses) to 
decommissioning expenses until final radiological decommissioning has 
been completed. Therefore, exemptions from 10 CFR 50.82(a)(8)(i)(A) and 
10 CFR 50.75(h)(2) are needed to allow DEF to withdraw funds from the 
Trust for activities other than decommissioning activities prior to 
completion of all radiological decommissioning activities.
    The requirements of 10 CFR 50.75(h)(2) further provide that, except 
for decommissioning withdrawals being made under 10 CFR 50.82(a)(8) or 
for payments of ordinary administrative costs and other incidental 
expenses of the Trust, no disbursement may be made from the Trust until 
written notice of the intention to make a disbursement has been given 
to the NRC at least 30 working days in advance of the intended 
disbursement. Therefore, an exemption from 10 CFR 50.75(h)(2) is also 
needed to allow DEF to withdraw funds from the Trust for activities 
other than decommissioning activities 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 when (1) 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, the following: (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; 
or (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.

A. Authorized by Law

    The requested exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(2) would allow DEF to use a portion of the funds from the 
Trust for irradiated fuel management and site restoration activities 
without prior notice to the NRC, in the same manner that withdrawals 
are made under 10 CFR 50.82(a)(8) for decommissioning 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 licensee's proposed exemptions will not result in a violation of 
the Atomic Energy Act of 1954, as amended, or the Commission's 
regulations. Therefore, the exemptions are authorized by law.

B. No Undue Risk to the 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. Based 
on the licensee's site-specific cost estimate and the NRC staff's cash 
flow analysis, use of a portion of the Trust for irradiated fuel 
management and site restoration activities will not adversely impact 
DEF's ability to complete radiological decontamination within 60 years 
and terminate the CR-3 license. Furthermore, exemption from 10 CFR 
50.75(h)(2) to allow the licensee to make withdrawals from the Trust 
for irradiated fuel management and site restoration activities without 
prior written notification to the NRC should not affect the sufficiency 
of funds in the Trust to accomplish radiological decontamination of the 
site 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).
    Based on the above, no new accident precursors are created by using 
the Trust in the proposed manner. Thus, the probability of postulated 
accidents is not increased. Also, based on the above, the consequences 
of postulated accidents are not increased. No changes are being made in 
the types or amounts of effluents that may be released offsite. There 
is no significant increase in occupational or public radiation 
exposure. Therefore, the requested exemptions will not present an undue 
risk to the public health and safety.

C. Consistent With the Common Defense and Security

    The requested exemptions would allow DEF to use funds from the 
Trust for irradiated fuel management and site restoration activities. 
Irradiated fuel management under 10 CFR 50.54(bb) is an integral part 
of the planned DEF decommissioning and final license termination 
process and will not adversely affect DEF's ability to physically 
secure the site or protect special nuclear material. This change to 
enable the use of a portion of the funds from the Trust for activities 
other than decommissioning activities will also not alter the scope of, 
or availability of, funding for the licensee's security program. 
Therefore, the common defense and security is not impacted by the 
requested exemptions.

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 
rule.
    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. Strict 
application of these requirements would prohibit withdrawal of funds 
from the Trust for activities other than decommissioning activities, 
such as irradiated fuel management and site restoration activities, 
until final radiological decommissioning at CR-3 has been completed.
    The total CR-3 Decommissioning Trust Funds balance as of March 28, 
2014, was $824.8 million in 2013 dollars. The DEF analysis in the PSDAR 
and DCE projects the total radiological decommissioning cost of CR-3 to 
be approximately $861.9 million (2013 dollars). As required by 10 CFR 
50.54(bb), DEF estimated the costs associated with the long-term 
irradiated fuel management at CR-3 to be $265.5 million in (2013 
dollars). DEF also estimated the total expenditures for site 
restoration to be $52.7 million (2013 dollars).

[[Page 5797]]

    The NRC staff performed an independent cash flow analysis of the 
Trust over the 60 years of decommissioning activities (assuming an 
annual real rate of return of 2%, as allowed by 10 CFR 50.75(e)(1)(ii)) 
and determined the projected earnings of the Trust. The staff confirmed 
that the current funds, planned future contributions, and projected 
earnings of the Trust provide reasonable assurance of adequate funding 
to complete all NRC-required decommissioning activities and that the 
DCE demonstrates that adequate funds will also be available in the 
Trust to conduct irradiated fuel management and site restoration 
activities. The staff's review and conclusions are based on DEF's 
specific financial situation as described in the PSDAR, DCE, IFMP, and 
the March 28, 2014 letter.
    Therefore, the staff finds that DEF has provided reasonable 
assurance that adequate funds will be available for radiological 
decommissioning of CR-3, even with the disbursement of funds from the 
Trust for irradiated fuel management and site restoration activities. 
Consequently, the staff concludes that application of the requirement 
that funds from the Trust only be used for decommissioning activities 
and not for irradiated fuel management and site restoration activities 
is not necessary to achieve the underlying purpose of the rule and, 
thus, that special circumstances are present supporting the approval of 
the exemption request.
    In its submittal, DEF also requested exemption from the 
requirements of 10 CFR 50.75(h)(2) concerning prior written 
notification to the NRC of withdrawals from the Trust to fund 
activities other than decommissioning. The underlying purpose of 
notifying the NRC prior to withdrawal of funds from the Trust is to 
provide opportunity for NRC intervention, when deemed necessary, if the 
withdrawals are for expenses other than those authorized by 10 CFR 
50.75(h)(2) and 10 CFR 50.82(a)(8) that could result in there being 
insufficient funds in the Trust to accomplish radiological 
decontamination of the site.
    By granting the exemptions to 10 CFR 50.75(h)(2) and 10 CFR 
50.82(a)(8)(i)(A), the staff considers that withdrawals consistent with 
the licensee's submittal dated March 28, 2014, are authorized. As 
stated previously, the NRC staff has determined that there are 
sufficient funds in the Trust to complete legitimate radiological 
decommissioning activities as well as to conduct irradiated fuel 
management and site restoration activities consistent with the PSDAR, 
DCE, IFMP, and March 28, 2014 letter. Pursuant to the annual reporting 
requirements in 10 CFR 50.82(a)(8)(v) through (vii), licensees are 
required to monitor and report the status of the decommissioning trust 
fund and the funding status for managing irradiated fuel. These reports 
provide the NRC with awareness of, and the ability to take action on, 
any actual or potential funding deficiencies. The requested exemption 
would not allow the withdrawal of funds from the CR-3 Trust for any 
other purpose that is not currently authorized in the regulations 
without prior notification to the NRC. Therefore, the granting of this 
exemption to 10 CFR 50.75(h)(2) to allow the licensee to make 
withdrawals from the Trust to cover authorized expenses for irradiated 
fuel management and 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 licensee states that the Trust contains funds in excess of the 
estimated costs of radiological decommissioning and that these excess 
funds are needed for irradiated fuel management and site restoration 
activities. The NRC does not preclude the use of funds from the 
decommissioning trust in excess of those needed for radiological 
decommissioning for other purposes, such as irradiated fuel management 
or site restoration. The NRC has stated that funding for irradiated 
fuel management and other site restoration activities may be commingled 
in the decommissioning trust provided that the licensee is able to 
identify and account for the radiological decommissioning funds 
separately from the funds set aside for irradiated fuel management (see 
NRC Regulatory Issue Summary 2001-07, Rev 1, ``10 CFR 50.75 Reporting 
and Recordkeeping for Decommissioning Planning,'' dated January 8, 2009 
[ADAMS Accession No. ML083440158], and Regulatory Guide 1.184, Rev. 1, 
``Decommissioning of Nuclear Power Reactors,'' [ADAMS Accession No. 
ML13144A840]). An unnecessary financial burden without any 
corresponding safety benefit would be created if access to those excess 
funds in the Trust was prevented because irradiated fuel management and 
site restoration are not associated with radiological decommissioning. 
The adequacy of the Trust to cover the cost of activities associated 
with irradiated fuel management and site restoration in addition to 
radiological decommissioning is supported by the NRC staff's review of 
the licensee's site-specific decommissioning cost analysis. If DEF 
cannot use the Trust for irradiated fuel management and site 
restoration activities, it would need to obtain additional funding that 
would not be recoverable from the Trust, or DEF 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 the regulation was 
adopted.
    Therefore, since the underlying purpose of 10 CFR 50.82(a)(8)(i)(A) 
and 10 CFR 50.75(h)(2) would be achieved by allowing DEF to use a 
portion of the Trust for irradiated fuel management and site 
restoration activities without prior NRC notification, and compliance 
with the rules would result in an undue hardship or other costs that 
are significantly in excess of those contemplated when the regulation 
was adopted, 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 exemptions.

E. Environmental Considerations

    In accordance with 10 CFR 51.31(a), the Commission has determined 
that the granting of the exemptions will not have a significant effect 
on the quality of the human environment (see Environmental Assessment 
and Finding of No Significant Impact published on January 23, 2015; 80 
FR 3662).

IV. Conclusions

    Accordingly, the Commission has determined that, pursuant to 10 CFR 
50.12(a), 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. Also, special circumstances are present. 
Therefore, the Commission hereby grants DEF exemptions from the 
requirements of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) to 
allow withdrawals from the CR-3 Trust for irradiated fuel management 
and site restoration activities without prior NRC notification.
    The exemptions are effective upon issuance.


[[Page 5798]]


    Dated at Rockville, Maryland, this 26th day of January 2015.

    For the Nuclear Regulatory Commission.
Michele G. Evans,
Director, Division of Operating Reactor Licensing, Office of Nuclear 
Reactor Regulation.
[FR Doc. 2015-02067 Filed 2-2-15; 8:45 am]
BILLING CODE 7590-01-P


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