[Federal Register Volume 87, Number 120 (Thursday, June 23, 2022)]
[Notices]
[Pages 37535-37537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13428]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-305 and 72-64; License No. DPR-43; EA-22-030; NRC-2021-
0185]


In the Matter of Dominion Energy Kewaunee, Inc.; Kewaunee Power 
Station and the Kewaunee Independent Spent Fuel Storage Installation

AGENCY: Nuclear Regulatory Commission.

ACTION: Indirect transfer of license; order.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC, the Commission) 
is issuing an order approving the indirect transfer of Renewed Facility 
Operating License No. DPR-43 for the Kewaunee Power Station (KPS) and 
the general license for the KPS independent spent fuel storage 
installation, held by Dominion Energy Kewaunee, Inc. (DEK), to Kewaunee 
Solutions, Inc. (Kewaunee Solutions). The transfer assigns control of 
the licenses from DEK's parent entity, Dominion Nuclear Projects, Inc. 
(Dominion), to EnergySolutions, LLC and reflects, concurrent with the 
transfer, the planned name change from DEK to Kewaunee Solutions. The 
NRC is also issuing a draft conforming amendment to the renewed 
facility operating license for administrative purposes to reflect the 
license transfer from DEK to Kewaunee Solutions. The NRC determined 
that Kewaunee Solutions, as a direct and wholly owned subsidiary of 
EnergySolutions, is qualified to be the holder of the licenses and that 
transfer of the licenses is otherwise consistent with applicable 
provisions of law, regulations, and orders issued by the Commission 
pursuant thereto, subject to the conditions set forth in the order. The 
order approving the indirect transfer of the licenses was effective on 
March 31, 2022.

DATES: The order was issued on March 31, 2022 and is effective for 1 
year.

ADDRESSES: Please refer to Docket ID NRC-2021-0185 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 Website: Go to https://www.regulations.gov and search for Docket ID NRC-2021-0185. Address 
questions about Docket IDs in Regulations.gov to Stacy Schumann; 
telephone: 301-415-0624; email: <a href="/cdn-cgi/l/email-protection#0c5f786d6f75225f6f6479616d62624c627e6f226b637a"><span class="__cf_email__" data-cfemail="a9faddc8cad087facac1dcc4c8c7c7e9c7dbca87cec6df">[email protected]</span></a>. For technical 
questions, contact the individual listed in the FOR FURTHER INFORMATION 
CONTACT section of this document.
    <bullet> 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, 301-415-4737, or 
by email to <a href="/cdn-cgi/l/email-protection#eebeaabcc0bc8b9d819b9c8d8bae809c8dc0898198"><span class="__cf_email__" data-cfemail="306074621e6255435f45425355705e42531e575f46">[email protected]</span></a>. The license transfer order, the NRC 
safety evaluation supporting the staff's findings, and the draft 
conforming license amendment are available in ADAMS under Package 
Accession No. ML22014A387.
    <bullet> NRC's PDR: You may examine and purchase copies of public 
documents, by appointment, at the NRC's PDR, Room P1 B35, One White 
Flint North, 11555 Rockville Pike, Rockville, Maryland 20852. To make 
an appointment to visit the PDR, please send an email to 
<a href="/cdn-cgi/l/email-protection#aafaeef884f8cfd9c5dfd8c9cfeac4d8c984cdc5dc"><span class="__cf_email__" data-cfemail="8fdfcbdda1ddeafce0fafdeceacfe1fdeca1e8e0f9">[email protected]</span></a> or call 1-800-397-4209 or 301-415-4737, between 
8:00 a.m. and 4:00 p.m. Eastern Time (ET), Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Karl J. Sturzebecher, Office of 
Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001; telephone: 301-415-8534; email: 
<a href="/cdn-cgi/l/email-protection#2d664c5f41037e59585f57484f484e45485f6d435f4e034a425b"><span class="__cf_email__" data-cfemail="642f0516084a371011161e010601070c0116240a16074a030b12">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: The text of the order is attached.

    Dated: June 17, 2022.

    For the Nuclear Regulatory Commission.
Shaun M. Anderson,
Chief, Reactor Decommissioning Branch, Division of Decommissioning, 
Uranium Recovery, and Waste Programs, Office of Nuclear Material Safety 
and Safeguards.

Attachment--Order Approving Indirect Transfer of License and Draft 
Conforming License Amendment

United States of America

Nuclear Regulatory Commission

In the Matter of: Dominion Energy Kewaunee, Inc.; Kewaunee Power 
Station and the Kewaunee Independent Spent Fuel Storage Installation; 
EA-22-030; Docket Nos. 50-305 and 72-64; License No. DPR-43.

Order Approving Indirect Transfer of License and Draft Conforming 
License Amendment

I

    Dominion Energy Kewaunee, Inc. (DEK) is the holder of Renewed 
Facility Operating License No. DPR-43 for Kewaunee Power Station (KPS) 
and the general license for the KPS independent spent fuel storage 
installation (ISFSI), and Dominion Nuclear Projects, Inc. (Dominion) is 
the parent entity of DEK. KPS permanently ceased power operations on 
May 7, 2013, and DEK certified to the U.S. Nuclear Regulatory 
Commission (NRC) by letter dated May 14, 2013 (Agencywide Documents 
Access and Management System (ADAMS) Accession No. ML13135A209) that as 
of May 14, 2013

[[Page 37536]]

all the fuel was permanently removed from the KPS reactor vessel and 
placed into the KPS spent fuel pool. Accordingly, pursuant to Title 10 
of the Code of Federal Regulations (10 CFR) Section 50.82(a)(2), the 
KPS license no longer authorizes operation of the KPS reactor or 
emplacement or retention of fuel into the KPS reactor vessel. KPS was a 
two-loop pressurized-water reactor designed by Westinghouse Electric 
Corporation and licensed by the NRC to generate an approximate maximum 
power output of 1772 megawatts-thermal in the Town of Carlton along the 
coast of Lake Michigan in Kewaunee County, Wisconsin.

II

    By letter dated May 10, 2021 (ADAMS Accession No. ML21131A141), as 
supplemented by letters dated May 13, 2021 (ADAMS Accession No. 
ML21145A118), October 28, 2021 (ADAMS Accession No. ML21301A177), 
February 16, 2022 (ADAMS Accession No. ML22047A057), and March 15, 2022 
(ADAMS Accession No. ML22076A065), DEK and EnergySolutions, LLC 
(EnergySolutions) (together, the Applicants) requested that the NRC 
consent to the indirect transfer of control of Renewed Facility 
Operating License No. DPR-43 for KPS and the general license for the 
KPS ISFSI. Pursuant to Section 184, ``Inalienability of Licenses,'' of 
the Atomic Energy Act of 1954, as amended (AEA), and 10 CFR 50.80, 
``Transfer of licenses,'' and 10 CFR 72.50, ``Transfer of license,'' 
the Applicants requested indirect transfer of control of the licenses 
from DEK's parent entity, Dominion, to EnergySolutions. In addition, 
pursuant to 10 CFR 50.90, ``Application for amendment of license, 
construction permit, or early site permit,'' the Applicants requested 
that the NRC approve a conforming administrative amendment to Renewed 
Facility Operating License No. DPR-43 to reflect, concurrent with the 
transfer, the proposed transfer and the planned name change from DEK to 
Kewaunee Solutions, Inc. (Kewaunee Solutions). By letter dated March 
15, 2022, the Applicants requested that the NRC approve the withdrawal 
of the previous commitment made by letter dated February 16, 2022 and 
replace it with a new commitment that Kewaunee Solutions will retain in 
place, and assume responsibility for, the implementation of the current 
NRC-approved quality assurance program for KPS. This commitment shall 
remain in effect until the Kewaunee Solutions Decommissioning Quality 
Assurance Program for KPS is approved by the NRC and implemented at the 
site.
    Upon an NRC approval of the license transfer application and the 
consummation of the proposed transfer transaction, the same legal 
entity would remain the KPS licensee, and its name would change from 
DEK to Kewaunee Solutions. Kewaunee Solutions would continue to hold 
title to and ownership of any real estate encompassing the KPS site, 
any improvements to the site, and title to and ownership of spent 
nuclear fuel. Kewaunee Solutions would have responsibility for all 
licensed activities at the KPS site, including responsibility under the 
license to complete decommissioning pursuant to NRC regulations. 
However, Kewaunee Solutions would operate under new management and 
would be a direct and wholly owned subsidiary of EnergySolutions.
    On October 12, 2021, the NRC published in the Federal Register (FR) 
(86 FR 56731) a notice of consideration of approval of the license 
transfer application and of a conforming amendment to the license to 
reflect the proposed transfer. This notice provided an opportunity to 
request a hearing within 20 days and an opportunity to comment within 
30 days. No hearing requests or comments were received.
    In accordance with 10 CFR 50.80, no license for a production or 
utilization facility, or any right thereunder, shall be transferred, 
either voluntarily or involuntarily, directly or indirectly, through 
transfer of control of the license to any person, unless the Commission 
gives its consent in writing. In accordance with 10 CFR 72.50, no 
license or any part included in a license for an ISFSI shall be 
transferred, either voluntarily or involuntarily, directly or 
indirectly, through transfer of control of the license to any person, 
unless the NRC gives its consent in writing. Upon review of the 
information in the license transfer application, as supplemented, and 
other information before the Commission, and relying upon the 
representations and agreements contained in the application, the NRC 
staff has determined that Kewaunee Solutions, as a direct and wholly 
owned subsidiary of EnergySolutions, is qualified to be the holder of 
Renewed Facility Operating License No. DPR-43 for KPS and the general 
license for the KPS ISFSI and that transfer of the licenses is 
otherwise consistent with applicable provisions of law, regulations, 
and orders issued by the Commission pursuant thereto, subject to the 
conditions set forth below.
    Upon review of the application, as supplemented, for a conforming 
administrative license amendment to reflect the transfer, the NRC staff 
has determined that:
    (1) The application for amendment complies with the standards and 
requirements of the AEA and the Commission's regulations set forth in 
10 CFR Chapter I.
    (2) The facility will operate in conformity with the application, 
the provisions of the AEA, and the Commission's regulations.
    (3) There is reasonable assurance that the activities authorized by 
the amendment can be conducted without endangering the health and 
safety of the public and that such activities will be conducted in 
compliance with the Commission's regulations.
    (4) The issuance of the amendment will not be inimical to the 
common defense and security or to the health and safety of the public.
    (5) The issuance of the amendment is in accordance with 10 CFR part 
51, ``Environmental Protection Regulations for Domestic Licensing and 
Related Regulatory Functions,'' of the Commission's regulations and all 
applicable requirements have been satisfied.
    The findings set forth above are supported by an NRC staff safety 
evaluation dated March 31, 2022, which is publicly available at 
ML22014A394.

III

    Accordingly, pursuant to Sections 161b, 161i, and 184 of the AEA; 
42 United States Code Sec. Sec.  2201(b), 2201(i), and 2234; and 10 CFR 
50.80, 10 CFR 72.50, and 10 CFR 50.90, it is hereby ordered that the 
license transfer application, as described herein, is approved, subject 
to the following conditions:
    (1) At least two business days before the planned closing date of 
the purchase transaction, EnergySolutions shall provide the Director of 
the NRC's Office of Nuclear Material Safety and Safeguards (NMSS) 
satisfactory documentary evidence of the establishment of, as of 
closing, a dedicated subaccount within the KPS decommissioning trust 
fund or a Back-Up Nuclear Decommissioning Trust containing $7 million 
(approximately one year's worth of estimated ISFSI operation and 
maintenance (O&M) costs). EnergySolutions shall also provide the 
Director of NMSS satisfactory documentary evidence of the establishment 
of, as of closing, a parent support agreement providing that 
EnergySolutions shall obtain a performance bond if a settlement 
agreement with the U.S. Department of Energy (DOE) on DOE 
reimbursements

[[Page 37537]]

for spent fuel management expenses is not entered into by January 1, 
2024. The performance bond will be effective January 1, 2024 in the 
amount of, at least, $8 million, and it will be renewed annually. This 
amount covers the annual amount of ISFSI O&M costs projected for 2024-
2030. The parent support agreement will provide that the performance 
bond value, combined with the aggregate trust fund values, will be 
sufficient for radiological decommissioning and ISFSI O&M costs at KPS 
at all times.
    (2) At least two business days before the planned closing date of 
the purchase transaction, EnergySolutions shall provide the Director of 
NMSS satisfactory documentary evidence that the appropriate amount of 
insurance required of a licensee under 10 CFR 140.11(a)(4) and 10 CFR 
50.54(w) has been obtained.
    It is further ordered that after receipt of all required regulatory 
approvals of the indirect license transfer, the Applicants shall inform 
the Director of NMSS in writing of such receipt and of the date of the 
closing of the transfer no later than five business days prior to the 
date of the closing of the transfer. Should the indirect license 
transfer not be completed within one year of the date of this order, 
this order shall become null and void, provided, however, that upon 
written application and for good cause shown, such date may be extended 
by order. The conditions of this order may be amended upon application 
by the Applicants and approval by the NRC.
    It is further ordered that consistent with 10 CFR 2.1315(b), the 
license amendment that makes changes, as indicated in Enclosure 2, 
``DRAFT CONFORMING LICENSE AMENDMENT TO RENEWED FACILITY OPERATING 
LICENSE NO. DPR-43 DOCKET NO. 50-305,'' to the letter transmitting this 
order, to reflect the subject license transfer, is approved. The 
amendment shall be issued and made effective at the time the proposed 
transfer actions are completed.
    This order is effective upon issuance.
    For further details with respect to this order, see the application 
dated May 10, 2021, as supplemented by letters dated May 13, 2021, 
October 28, 2021, February 16, 2022, and March 15, 2022, and the 
associated NRC staff safety evaluation dated March 31, 2022, which are 
available for public inspection electronically through ADAMS in the NRC 
Library at https://www.nrc.gov/reading-rm/adams.html. Persons who do 
not have access to ADAMS or who encounter problems accessing the 
documents located in ADAMS should contact the NRC Public Document Room 
reference staff by telephone at 1-800-397-4209 or 301-415-4737 or by 
email to <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="344450461a4651475b41465751745a46571a535b42">[email protected]</a>.

    Dated: March 31, 2022.

    For the Nuclear Regulatory Commission.

/RA/

John W. Lubinski,

Director, Office of Nuclear Material Safety and Safeguards.

[FR Doc. 2022-13428 Filed 6-22-22; 8:45 am]
BILLING CODE 7590-01-P


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