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[Federal Register Volume 89, Number 250 (Tuesday, December 31, 2024)]
[Notices]
[Pages 107171-107177]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-31369]

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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-354, 50-272, 50-311, 50-277, 50-278, 72-48, and 72-29; 
NRC-2024-0206]

PSEG Nuclear, LLC; Hope Creek Generating Station, Salem 
Generating Station, Units 1 and 2, and Peach Bottom Atomic Power 
Station, Units 2 and 3; Exemption

AGENCY: Nuclear Regulatory Commission.

ACTION: Notice; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing 
exemptions in response to a May 28, 2024, request from PSEG Nuclear, 
LLC, for Hope Creek Generating Station, Salem Generating Station, Units 
1 and 2, and Peach Bottom Atomic Power Station, Units 2 and 3. The 
exemptions allow the licensee to periodically transfer earnings from 
funds dedicated for radiological decommissioning activities in its 
nuclear decommissioning trust (NDT) into separately maintained 
subaccounts within the NDT for certain activities that do not fall 
within the definition of ``decommission'' in NRC regulations without 
prior NRC notification.

DATES: The exemption was issued on December 23, 2024.

ADDRESSES: Please refer to Docket ID NRC-2024-0206 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 for Docket ID NRC-2024-0206. 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

[[Page 107172]]

time (ET), Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Audrey Klett, Office of Nuclear 
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001; telephone: 301-415-0489; email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the exemption is attached.

    Dated: December 23, 2024.

    For the Nuclear Regulatory Commission.
Audrey L. Klett,
Senior Project Manager, Licensing Projects Branch 1, Division of 
Operating Reactor Licensing, Office of Nuclear Reactor Regulation.

Attached--Exemption

NUCLEAR REGULATORY COMMISSION

Docket Nos. 50-354, 50-272, 50-311, 50-277, 50-278, 72-48, 72-29

Hope Creek Generating Station, Salem Generating Station, Units 1 and 2, 
and Peach Bottom Atomic Power Station, Units 2 and 3 Exemptions

I. Background

    PSEG Nuclear, LLC (PSEG, the licensee) is the holder of renewed 
facility operating license NPF-57 for Hope Creek Generating Station 
(Hope Creek). Hope Creek is a single unit boiling-water reactor 
licensed under Title 10 of the Code of Federal Regulations (10 CFR) 
Part 50. PSEG in conjunction with Constellation Energy Generation, LLC 
(Constellation) hold renewed facility operating licenses DPR-70 and 
DPR-75 for Salem Generating Station, Units 1 and 2 (Salem), 
respectively. PSEG holds a 57.41 percent ownership share in Salem and 
is the licensed operator. The exemption request, therefore, is only 
appliable to PSEG's portion of Salem's decommissioning trust fund. 
Salem is a dual unit pressurized-water reactor licensed under 10 CFR 
part 50. Hope Creek and Salem are co-located and share the onsite 
independent spent fuel storage installation (ISFSI), which has a 
general license under 10 CFR part 72. PSEG in conjunction with 
Constellation hold subsequent renewed facility operating licenses DPR-
44 and DPR-56 for Peach Bottom Atomic Power Station, Units 2 and 3 
(Peach Bottom). PSEG holds a 50 percent ownership share in Peach 
Bottom, and Constellation is the licensed operator. The exemption 
request, therefore, is only applicable to PSEG's portion of Peach 
Bottom's decommissioning trust fund. Peach Bottom is a dual unit 
boiling-water reactor licensed under 10 CFR part 50. There is an ISFSI 
onsite at Peach Bottom, which has a general license under 10 CFR part 
72.

II. Request/Action

    By letter dated May 28, 2024 (Agencywide Documents Access and 
Management System (ADAMS) Accession No. ML24150A002), and pursuant to 
10 CFR 50.12, ``Specific exemptions,'' the licensee submitted to the 
NRC a request for exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) for Hope Creek, Salem, and Peach Bottom (collectively, 
the PSEG facilities). The licensee has requested these exemptions to 
allow the licensee to periodically transfer earnings from funds 
dedicated for radiological decommissioning activities consistent with 
the definition of ``decommission'' in 10 CFR 50.2 in its nuclear 
decommissioning trust (NDT) into separately maintained ``non-50.75'' 
subaccounts within the NDT without prior NRC notification. The ``non-
50.75'' subaccounts would be used to separately account for funds to 
pay for ``decommissioning costs,'' as defined by the U.S. Treasury 
Department,\1\ for each facility. These costs include costs for 
radiological and non-radiological activities that do not fall within 
the NRC's definition of ``decommission'' in 10 CFR 50.2, including 
major radioactive component (MRC) disposal during operations, site 
restoration activities, and certain spent fuel management activities. 
The licensee states that these periodic transfers of earnings may only 
occur if certain conditions, as discussed below in section III, have 
been met. The licensee also indicated that because the request relies 
on earnings during operations, the exemptions would terminate for a 
facility once the certifications of permanents cessation of operations 
and permanent removal of fuel from the applicable reactor vessel have 
been submitted to the NRC.
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    \1\ See Title 26 of the CFR (26 CFR), Section 1.468A-1(b)(6), of 
the Treasury Department regulations implementing Section 468A of the 
Internal Revenue Code.
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    The licensee previously notified the NRC in 2023 of a proposed 
amendment to the PSEG Master Decommissioning Trust Agreement that would 
exclude funds in a ``non-50.75'' subaccount from being subject to NRC 
requirements and clarify that the funds in these subaccounts will not 
be relied upon for providing decommissioning financial assurance 
required by 10 CFR 50.75 (ML23252A001). The licensee indicated that the 
funds in the ``non-50.75'' subaccounts were intended to pay for 
decommissioning costs as defined by the U.S. Treasury Department in 26 
CFR 1.468A-1(b)(6). The NRC objected to this notification from PSEG 
indicating that while the subaccounts may be established and 
withdrawals made, the earnings from funds originally dedicated to 
radiological decommissioning as defined in 10 CFR 50.2 are restricted 
by 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) to being 
withdrawn only for radiological decommissioning expenses as defined in 
10 CFR 50.2 (ML23270C007). Further, the NRC staff noted that PSEG would 
need to request and have approved an exemption from 10 CFR 
50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) in order for PSEG to 
periodically transfer future earnings from the NDT to specific 
subaccounts within the NDT for decommissioning costs that do not fall 
under the definition in 10 CFR 50.2 and amend the Master 
Decommissioning Trust Agreement.
    The Commission's regulation 10 CFR 50.82(a)(8)(i)(A) restricts 
withdrawals from the decommissioning trust fund (DTF) 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 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 regulation 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. These 
regulations would prohibit a licensee from transferring earnings from 
funds dedicated to radiological decommissioning as defined in 10 CFR 
50.2 to any ``non-50.75'' subaccounts within the DTF for activities 
that do not fall within the definition of ``decommission'' in 10 CFR 
50.2. Therefore, exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) are needed to allow PSEG to transfer earnings from the 
NDT to ``non-50.75'' subaccounts within the NDT for activities such as 
MRC disposal during operations, spent fuel management, and site 
restoration.
    The requirements in 10 CFR 50.75(h)(1)(iv) further provide that, 
except for withdrawals being made

[[Page 107173]]

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 licensee to make withdrawals from the ``non-50.75'' 
subaccounts within the NDT without prior notification to the NRC.
    PSEG also notes that its exemption request is informed by draft NRC 
Interim Staff Guidance (ISG) on the use of decommissioning trust funds 
during operations, ``Draft Interim Staff Guidance on the Use of the 
Decommissioning Trust Fund During Operations for Major Radioactive 
Component Disposal,'' dated June 21, 2023 (ML23150A051). After 
consideration of public comments, the NRC staff issued REFS-ISG-2024-
01, ``Interim Staff Guidance on the Use of the Decommissioning Trust 
Fund During Operations for Major Radioactive Component Disposal,'' 
dated August 5, 2024 (ML24114A263), which provides clarifying guidance 
on the NRC's position on the use of decommissioning trust funds during 
operations for MRC disposal. The ISG states, in part, as follows:

    A licensee may request an exemption in accordance with 10 CFR 
50.12, to permit withdrawal of funds from the DTF for the removal 
and disposal of MRCs, prior to the cessation of operations and 
initiation of decommissioning. The withdrawal of funds from the DTF 
may only be used to pay for the offsite disposal of MRCs when the 
NRC has determined the total DTF contains funds in excess of cost 
estimates to complete all required radiological decommissioning. In 
addition, licensees may use economic projections for future years in 
calculating the amount of excess funds in the DTF. However, 
significant changes in the economic conditions of a licensee, 
combined with withdrawals from the trust fund, have the potential to 
result in future shortfalls in the DTF. The Commission has stated 
trust fund withdrawals for the disposal of MRCs would be granted 
only ``in extraordinary circumstances'' (73 FR 62221, 62222, and 
62224; October 20, 2008). For these reasons, the staff evaluates 
each exemption request for a DTF withdrawal based on a totality of 
facts in determining whether to grant or deny a request. REFS-ISG-
2024-01 at 3-4 (internal citations omitted).

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) any of the special circumstances listed in 10 CFR 50.12(a)(2) 
are present. These special circumstances include, among other things, 
(1) 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 (2) 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. The Exemptions Are Authorized by Law

    The requested exemptions from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) would allow the licensee to periodically transfer 
earnings from funds in the NDT dedicated for radiological 
decommissioning, as defined in 50.2, to ``non-50.75'' subaccounts 
within the NDT dedicated for decommissioning activities not restricted 
to radiological decommissioning without prior notice to the NRC for the 
PSEG facilities. The ``non-50.75'' subaccounts would be used to 
separately account for funds to pay for ``decommissioning costs,'' as 
defined by the U.S. Treasury Department in 26 CFR 1.468A-1(b)(6), for 
each facility. These costs include costs for radiological and non-
radiological activities that do not fall within the definition of 
``decommission'' in 10 CFR 50.2, including MRC disposal during 
operations, site restoration activities, and certain spent fuel 
management activities. These periodic transfers of earnings may only 
occur if certain conditions, as discussed below, have been met.
    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 that, as explained in 
section D below, there would be reasonable assurance of adequate 
funding for radiological decommissioning of the PSEG facilities because 
the licensee's periodic transfer of the decommissioning trust fund 
earnings from the NDT into ``non-50.75'' subaccounts within the NDT for 
future non-radiological decommissioning activities including MRC 
disposal during operations, site restoration, and spent fuel management 
activities, would not negatively impact the licensee's ability to 
complete radiological decommissioning within 60 years of permanent 
cessation of operations or the licensee's ability to terminate licenses 
for the PSEG facilities. Accordingly, 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, issuance 
of the exemptions is authorized by law.

B. The Exemptions Present no Undue Risk to Public Health and Safety

    As explained in further detail in section D below, based on the NRC 
staff's review of PSEG's exemption request and the site-specific 
decommissioning cost estimates (SSDCEs) for Hope Creek, Salem, and 
Peach Bottom, and the associated cash flow analyses, as confirmed by 
NRC staff, there would be reasonable assurance of adequate funding for 
radiological decommissioning of the PSEG facilities because the 
periodic transfer of some of the excess earnings from NDT funds 
dedicated to radiological decommissioning into ``non-50.75'' 
subaccounts, as well as the subsequent use of the funds within the 
subaccounts, will not adversely affect the licensee's ability to 
complete radiological decommissioning within 60 years of permanent 
cessation of operations or the licensee's ability to terminate licenses 
at Hope Creek, Salem, and Peach Bottom. Furthermore, an exemption from 
10 CFR 50.75(h)(1)(iv) to allow the licensee to transfer earnings to 
the subaccounts dedicated to non-radiological decommissioning 
activities without prior written notification to the NRC will not 
affect the sufficiency of funds in the NDT to accomplish radiological 
decommissioning because such transfers are constrained by conditions 
set forth in the exemption request and further discussed below in 
section D and are reviewable under the biennial reporting requirements 
of 10 CFR 50.75(f)(1). Therefore, the requested exemptions will not 
present an undue risk to public health and safety if granted.
    In addition, granting the requested exemptions will not alter the 
operation of any plant equipment or systems and, therefore, does not 
present an undue risk to public health and safety. The proposed 
exemptions do not introduce any new industrial, radiological, or 
chemical hazards that would present a health and safety risk nor would 
granting the exemptions result in modifying or removing design or 
operational controls or safeguards that are intended to mitigate onsite 
hazards. This exemption does not diminish the effectiveness of other 
regulations that

[[Page 107174]]

ensure available funding for decommissioning, including 10 CFR 
50.82(a)(6), which prohibits licensees from performing any 
decommissioning activities that could foreclose release of the site for 
possible unrestricted use, result in significant environmental impacts 
not previously reviewed, or result in there no longer being reasonable 
assurance that adequate funds will be available for decommissioning; 
therefore, the requested exemptions will not present an undue risk to 
the public health and safety.

C. The Exemptions Are Consistent With the Common Defense and Security

    The requested exemptions would allow the licensee to transfer 
earnings from funds dedicated to radiological decommissioning of the 
PSEG facilities to subaccounts dedicated to non-radiological 
decommissioning activities. The proposed exemptions, including the use 
of these funds without prior NRC notification, would not alter the 
design, function, or operation of any structures or plant equipment 
that is necessary to maintain the safe and secure status of the plant 
and would not adversely affect the licensee's ability to physically 
secure its sites or protect special nuclear material. Furthermore, this 
change to enable the use of a portion of the NDT funds for non-
radiological decommissioning activities has no relation to physical 
security issues. Therefore, the common defense and security is not 
impacted by the requested exemptions.

D. Special Circumstances

    The regulation under 10 CFR 50.12(a)(2) states, in part, that 
``[t]he Commission will not consider granting an exemption unless 
special circumstances are present,'' and identifies, in 10 CFR 
50.12(a)(2)(i)-(iv), when special circumstances are present. In 
accordance with 10 CFR 50.12(a)(2)(ii), special circumstances are 
present whenever application of the regulation in the particular 
circumstances would not serve the underlying purpose of the rule or is 
not necessary to achieve the underlying purpose of the rule.
    The underlying purpose of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) is to ensure that there is reasonable assurance that 
adequate funds will be available for radiological decommissioning of 
power reactors within 60 years of permanent cessation of operations. 
Strict application of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) would prohibit the transfer and subsequent use of 
earnings from the funds dedicated to radiological decommissioning as 
defined by the NRC in 10 CFR 50.2 in the NDT into ``non-50.75'' 
subaccounts within the NDT dedicated to ``decommissioning'' activities, 
as defined by the U.S. Department of Treasury (including the disposal 
of MRCs during operations, spent fuel management activities, and site 
restoration), and would require prior NRC notification of any 
withdrawals or transfer of such funds.
    The NRC staff performed an independent analysis of the financial 
information provided in Enclosure 1, as supported by the site-specific 
decommissioning cost estimates for Salem, Hope Creek, and Peach Bottom 
in Attachments 1-3, respectively, of PSEG's exemption request. PSEG 
conservatively chose to use a starting NDT balance for each unit that 
excludes any funds accounted for in the ``non-50.75'' subaccounts, as 
of December 31, 2023. Accordingly, the NRC staff used the more 
conservative projected NDT starting balances provided by PSEG in its 
exemption request. The balances in the NDT for each unit as of December 
31, 2023, were $495.17 million (M) for Salem, Unit 1, $413.6M for 
Salem, Unit 2, $662.95M for Hope Creek, $408.97M for Peach Bottom, Unit 
2, and $403.48M for Peach Bottom, Unit 3. NRC staff then escalated 
these amounts using a 2 percent real rate of return, as allowed by NRC 
regulations, to each unit's respective expected date of permanent 
cessation of operations. The resulting NDT balances for each unit were 
$603.61M for Salem, Unit 1, $565.79M for Salem, Unit 2, $985.10M for 
Hope Creek, $469.78M for Peach Bottom, Unit 2, and $472.73M for Peach 
Bottom, Unit 3. Finally, the most recent SSDCEs for each unit used by 
NRC staff in its analysis were $518.81M for Salem, Unit 1, $511.62M for 
Salem, Unit 2, $1.22B for Hope Creek, $474.28M for Peach Bottom, Unit 
2, and $501.61M for Peach Bottom, Unit 3.
    Using the projected NDT balance at the time of permanent cessation 
of operation (as described above), the estimated annual radiological 
costs over SAFSTOR and active decommissioning periods, and a 2 percent 
real rate of return on the NDT over the decommissioning period, the NRC 
staff performed a beginning-of-year cashflow analysis for each unit to 
confirm the information provided in the exemption request. PSEG used a 
beginning-of-year analysis in its request, which is a more conservative 
approach than what the NRC staff typically uses in its standard review 
process (middle-of-year analysis). In its analysis, the NRC staff found 
that excess amounts were projected after completion of radiological 
decommissioning. The resulting excess funding amounts for each unit 
were $1.23B for Salem, Unit 1, $961.86M for Salem, Unit 2, $1.5B for 
Hope Creek, $831.7M for Peach Bottom, Unit 2, and $775.78M for Peach 
Bottom, Unit 3.
    Additionally, PSEG performed sensitivity analyses using the same 
SSDCE cashflow analyses described above with the exception of taking 
credit for earnings on NDT funds during operations. NRC staff confirmed 
that, when considering a 0% real rate of return during operations 
(effectively, conservatively assuming that all excess earnings on the 
funds are transferred to ``non-50.75'' subaccounts during operations) 
and a 2% real rate of return during the decommissioning period for each 
unit, significant surplus of funds remain at completion of 
decommissioning. Specifically, the resulting excess funding for each 
unit were $786.9M for Salem 1, $485.2M for Salem 2, $284.3M for Hope 
Creek, $565.9M for Peach Bottom, Unit 2, and $486.1M for Peach Bottom, 
Unit 3.
    In addition, PSEG has proposed three conditions to the exemption 
that would allow periodic transfers to the ``non-50.75'' subaccounts 
without prior NRC notification over the operating life of each unit 
such that:
     Transfers are limited to earnings from funds dedicated for 
radiological decommissioning determined by an increase in the amount of 
funds accumulated in the NDT since the last decommissioning funding 
status (DFS) report submitted under 10 CFR 50.75(f)(1).
     At the time of the transfer, the amount of decommissioning 
funding assurance (DFA) provided by NDT funds, excluding funds held in 
the subaccounts, using the prepayment method in 10 CFR 50.75(e)(1)(i) 
must exceed the amount of DFA required by 10 CFR 50.75(b) and (c) for 
the associated station by at least $100 million (nominal dollars).
     DFS reports submitted under 10 CFR 50.75(f)(1) will 
include the amount of funds transferred into the subaccounts since the 
last submitted report.
    Based on its review, the NRC staff finds that these conditions, 
proposed by PSEG: (1) ensure periodic transfers are restricted to 
actual earnings from funds dedicated to radiological decommissioning in 
the NDT (RD funds) and that no transfers can be made if the value of 
the RD funds has decreased since the last submitted DFS report; (2) 
ensure that post-transfer NDT funding for each unit is in the amount

[[Page 107175]]

required to ensure at least $100M above NRC DFA requirements in 10 CFR 
50.75(b) and (c); and (3) allow the periodic transfers to the ``non-
50.75'' subaccounts to be monitored by the NRC. In addition, the NRC 
staff notes that PSEG also requested that the exemptions cease to be 
effective on an individual reactor basis once the certifications of 
permanent cessation of operations and permanent removal of fuel from 
the reactor vessel required under 10 CFR 50.82(a)(1)(i) and (ii) have 
been submitted. The NRC staff finds that expiration of the exemption at 
this stage would ensure that RD funds and future earnings are 
designated for their intended purpose during decommissioning.
    Furthermore, in its request, PSEG describes various methods to 
augment the NDT in the event of a projected shortfall in funding 
dedicated to the radiological decommissioning of the PSEG units. In 
accordance with 10 CFR 50.75, if the NDT is not sufficiently funded, as 
identified in a DFS report submitted under 10 CFR 50.75(f)(1), then the 
shortfall in funding must be rectified by the next DFS report 
submission. PSEG identified various additional funding methods, as 
described in 10 CFR 50.75(e)(1) and NRC Regulatory Guide 1.159 Revision 
2, ``Assuring the Availability of Funds for Decommissioning Nuclear 
Reactors'' (ML112160012), that could be used including:
     Funds held in ``non-50.75'' subaccounts would be readily 
available to be transferred to their associated RD funds account 
without prior approval (or subject to disapproval) by a State 
regulatory authority, thereby dedicated for radiological 
decommissioning as prepaid funds under 10 CFR 50.75(e)(1)(i).
     Generation of electric energy from PSEG's operating 
nuclear plants provides a source of revenue for cash injections to the 
NDT as prepaid funds under 10 CFR 50.75(e)(1)(i).
     PSEG's parent company meets Financial Test A.2 in Appendix 
A in 10 CFR part 30 for providing a guarantee in an amount that would 
be a significant part of the required amount of funding, pursuant to 10 
CFR 50.75(e)(1)(iii).
    Based on its review, the NRC staff finds that the additional 
funding mechanisms identified by PSEG provide assurance that there are 
means available to address any shortfalls in radiological 
decommissioning funding identified in a DFS report analysis.
    In summary, the NRC staff finds that reasonable assurance exists 
that adequate funds will be available in PSEG's NDT to complete 
radiological decommissioning and terminate the Part 50 licenses for 
Salem, Hope Creek, and Peach Bottom because the proposed periodic 
transfer of funds to ``non-50.75'' subaccounts will not adversely 
impact PSEG's ability to complete radiological decommissioning within 
60 years of permanent cessation of operations and terminate the PSEG 
licenses based on the following considerations: (1) the NRC staff's 
independent review of the licensee's request confirmed large projected 
excess amounts remaining in each fund after completion of 
decommissioning for each facility; (2) the exemptions would be subject 
to three conditions proposed by PSEG described above that place certain 
restrictions on the periodic transfer of excess earnings from NDT funds 
dedicated to radiological decommissioning to ``non-50.75'' subaccounts 
such that the transfers will not adversely affect PSEG's ability to 
meet the minimum decommissioning funding assurance requirements 
described in 10 CFR 50.75, and the conditions provide a means for the 
NRC staff to track the periodic transfers; (3) the exemptions will 
cease to be effective on an individual reactor basis once the 
certifications for permanent cessation of operations and permanent 
removal of fuel from the reactor vessel required under 10 CFR 
50.82(a)(1) have been submitted; and (4) the additional funding 
mechanisms identified by PSEG ensure there are means available to 
address any shortfalls in radiological decommissioning funding 
identified in a DFS report analysis. Further, based on a totality of 
the circumstances discussed above, the NRC staff finds that PSEG has 
demonstrated extraordinary circumstances in support of the proposed 
exemptions allowing PSEG to periodically transfer earnings from the NDT 
to ``non-50.75'' subaccounts within the NDT for MRC disposal during 
operations. Accordingly, the NRC staff finds that the underlying 
purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) to 
ensure that there is reasonable assurance that adequate funds will be 
available for radiological decommissioning of power reactors within 60 
years of permanent cessation of operations would still be achieved by 
allowing the exemptions for PSEG to transfer excess earnings to ``non-
50.75'' subaccounts and use the funding for MRC disposal during 
operations, spent fuel management, and site restoration activities at 
Salem, Hope Creek, and Peach Bottom.
    In its submittal, the PSEG also requested exemption from the 
requirement of 10 CFR 50.75(h)(1)(iv) concerning prior written 
notification to the NRC for periodic transfers made in accordance with 
the exemption request. The underlying purpose of notifying the NRC 
prior to the use of funds from the NDT 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) and 10 
CFR 50.82(a)(8) that could result in there being insufficient funds in 
the DTF to accomplish radiological decommissioning of the facilities.
    Pursuant to the requirements in 10 CFR 50.75(f)(1), licensees are 
required to monitor and report to the NRC every two years, the status 
of the NDT funds for Salem, Hope Creek, and Peach Bottom. These reports 
provide the NRC staff with awareness of, and the ability to take action 
on, any actual or potential funding deficiencies. As previously 
discussed, PSEG proposed that the exemption be subject to certain 
conditions, including that the DFS reports submitted under 10 CFR 
50.75(f)(1) will include the amount of funds transferred into the 
``non-50.75'' subaccounts since the last submitted report. By granting 
the exemption to 10 CFR 50.75(h)(1)(iv) and 10 CFR 50.82(a)(8)(i)(A), 
subject to this condition, the NRC staff considers that withdrawals 
consistent with the licensee's submittal dated May 28, 2024, are 
authorized. The NRC staff finds that the additional reporting provided 
by PSEG's proposed condition would provide similar information to the 
NRC as the prior notification requirement in 10 CFR 50.75(h)(1)(iv) and 
is, therefore, not necessary to achieve the underlying purpose of the 
regulation.
    The requested exemption would not allow the use of funds from the 
PSEG NDTs for any purpose that is not currently authorized in the 
regulations without prior notification to the NRC. In addition, the 
existing reporting requirement in 10 CFR 50.75(f)(1) allows the NRC 
staff to continually monitor the status of funding for radiological 
decommissioning and provides the opportunity for the NRC to take 
appropriate actions, if needed. Additionally, the exemption does not 
change the requirement that any shortfall in funding assurance 
identified in a DFS report be corrected by the time the next report is 
due. Therefore, the granting of the exemption to 10 CFR 50.75(h)(1)(iv) 
to allow the PSEG to make periodic transfers, as described in the 
exemption request, to subaccounts within the PSEG NDTs to cover 
authorized expenses for decommissioning activities other than 
radiological decommissioning of Salem,

[[Page 107176]]

Hope Creek, and Peach Bottom without prior written notification to the 
NRC will still meet the underlying purpose of the regulation.
    For the reasons discussed above, the NRC staff concludes that the 
underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) would be achieved by allowing PSEG to transfer excess 
earnings to ``non-50.75'' subaccounts and use the funding for MRC 
disposal during operations, spent fuel management, and site restoration 
activities at Salem, Hope Creek, and Peach Bottom without prior NRC 
notification. Accordingly, the NRC staff finds that the special 
circumstance of 10 CFR 50.12(a)(2)(ii) is present in the particular 
circumstances of Hope Creek, Salem, and Peach Bottom.
    Special circumstances, in accordance with 10 CFR 50.12(a)(2)(iii), 
are present whenever compliance would result in undue hardship or other 
costs that are significantly in excess of those contemplated when the 
regulation was adopted, or that are significantly in excess of those 
incurred by others similarly situated.
    As discussed above, the licensee states, and the NRC staff 
confirmed, that the overarching NDT accounts for Hope Creek, Salem, and 
Peach Bottom contain funds in excess of the estimated costs of 
radiological decommissioning of the facilities, as described in the 
individual SSDCEs. PSEG states that if funds accumulated in ``non-
50.75'' subaccounts (i.e., subaccounts dedicated to non-radiological 
decommissioning activities) cannot be used for their intended purpose, 
then the licensee would need to obtain additional funds to pay for 
activities that would not be recoverable from the NDT or modify 
operations at the facilities to avoid or delay such costs until final 
radiological decommissioning has been completed. In its exemption 
request, PSEG describes the history of each facility's dedicated DTF 
and states that more funds in the NDT have been dedicated for 
radiological decommissioning than originally intended through the rate-
setting process. PSEG states that up until 2003, non-bypassable 
charges, authorized by the cognizant regulatory authority, were used as 
the funding mechanism for NDTs. These non-bypassable charges, as 
described in the request, were collected and intended for use to fund 
all aspects of decommissioning a facility, including radiological 
decommissioning, spent fuel management, and site restoration. 
Commencing in 2004, these units were no longer rate-regulated and, 
therefore, were no longer eligible to use the sinking fund method. 
Accordingly, the funding mechanism transitioned to the prepaid method. 
The NDT fund balances for each unit in 2004 that included funds for the 
entire decommissioning process were $212.16M for Salem, Unit 1, 
$195.35M for Salem, Unit 2, $324.44M for Hope Creek, $178.11M for Peach 
Bottom, Unit 2, and $180.64M for Peach Bottom, Unit 3.
    The resulting NDT funds became ``dedicated'' to radiological 
decommissioning, as the total amounts were reported to the NRC as such 
in DFS reports. Based on its review of the application, the NRC staff 
finds that, though precise accounting that could be used to delineate 
the funding across the total decommissioning project was not maintained 
by the licensee, it appears that some excess funding in the NDT was 
initially dedicated to activities other than radiological 
decommissioning as defined in 10 CFR 50.2 through the rate-setting 
process.
    In addition, in its exemption request, PSEG states, in relevant 
part, that, ``The current environment in which a permanent federal 
repository for spent fuel does not exist requires PSEG to provide long-
term storage for spent fuel in the onsite independent spent fuel 
storage installations. Not granting the requested exemptions to PSEG 
would impose costs in excess of those incurred by other 10 CFR part 50 
licensees that have requested and been granted exemptions from these 
regulations for similar purposes.''
    PSEG further states that, ``[P]reventing the use of these funds in 
the NDT would impose an unnecessary and undue burden in excess of that 
contemplated when the regulation was adopted without any corresponding 
safety benefit. Therefore, strict compliance with the rule would result 
in an undue hardship or other costs that are significantly in excess of 
those contemplated when the regulations were adopted, or that are 
significantly in excess of those incurred by others similarly situated, 
and the special circumstances of 10 CFR 50.12(a)(2)(iii) are present.''
    The NRC has 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 management (and site restoration activities) (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, Revision 
1, ``Decommissioning of Nuclear Power Reactors,'' dated October 2013 
(ADAMS Accession No. ML13144A840)). Preventing access to those excess 
funds in the NDT 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 PSEG NDTs to cover the cost of activities 
associated with spent fuel management (and site restoration) for each 
of its units, in addition to radiological decommissioning, is supported 
by PSEG's SSDCEs and associated analyses. If PSEG cannot use its NDTs 
for spent fuel management (and site restoration) activities, it would 
need to obtain additional funding that would not be recoverable from 
the DTF, or it would have to modify its decommissioning approach and 
methods. Based on the considerations described above, 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. Accordingly, 
the NRC staff finds that the special circumstance of 10 CFR 
50.12(a)(2)(iii) is present.
    For the reasons discussed above, the NRC staff concludes that the 
underlying purposes of 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) would be achieved by allowing PSEG to transfer excess 
earnings to ``non-50.75'' subaccounts and use the funding for MRC 
disposal during operations, spent fuel management, and site restoration 
activities at Salem, Hope Creek, and Peach Bottom 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 10 CFR 
50.12(a)(2)(iii) exist and support the approval of the requested 
exemption.

E. Environmental Considerations

    The NRC staff considered whether there would be any significant 
environmental impacts associated with the proposed exemptions. For the 
proposed action, the NRC staff performed an environmental assessment 
(EA) pursuant to 10 CFR 51.30. The NRC determined that a finding of no 
significant impact (FONSI) is appropriate, and an environmental

[[Page 107177]]

impact statement is not warranted. The EA and the FONSI were published 
on December 20,2024 in the Federal Register (89 FR 104236).

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 PSEG exemptions from 10 CFR 
50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(1)(iv) to allow the periodic 
transfer of earnings from funds dedicated to radiological 
decommissioning, consistent with the definition of ``decommission'' in 
10 CFR 50.2, of Salem, Hope Creek, and Peach Bottom, to ``non-50.75'' 
subaccounts dedicated to other ``decommissioning'' activities, as 
defined in U.S. Department of Treasury regulations in 26 CFR 1.468A-
1(b)(6), without prior notice to the NRC subject to the following 
conditions:
     Transfers are limited to earnings from funds dedicated for 
radiological decommissioning determined by an increase in the amount of 
funds accumulated in the NDT since the last decommissioning funding 
status (DFS) report submitted under 10 CFR 50.75(f)(1).
     At the time of the transfer, the amount of decommissioning 
funding assurance (DFA) provided by NDT funds, excluding funds held in 
the subaccounts, using the prepayment method in 10 CFR 50.75(e)(1)(i) 
must exceed the amount of DFA required by 10 CFR 50.75(b) and (c) for 
the associated station by at least $100 million (nominal dollars).
     DFS reports submitted under 10 CFR 50.75(f)(1) will 
include the amount of funds transferred into the subaccounts since the 
last submitted report.
    The exemptions are effective upon issuance. The exemptions will 
expire on an individual reactor basis once the NRC has docketed the 
licensee's certifications of permanent cessation of operations and 
permanent removal of fuel from the reactor vessel required under 10 CFR 
50.82(a)(1)(i) and (ii) for the respective reactor unit, consistent 
with 10 CFR 50.82(a)(2).

    Dated: December 23, 2024.

    For the Nuclear Regulatory Commission.
Jamie Pelton,
Acting Director, Division of Operating Reactor Licensing, Office of 
Nuclear Reactor Regulation.
[FR Doc. 2024-31369 Filed 12-30-24; 8:45 am]
BILLING CODE 7590-01-P
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