Notification of Spent Fuel Management and Funding Plans by Licensees of Prematurely Shut Down Power Reactors

NUCLEAR REGULATORY COMMISSION

10 CFR Part 50

RIN 3150-AE46

Notification of Spent Fuel Management and Funding Plans by

Licensees of Prematurely Shut Down Power Reactors

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is amending its

regulations to clarify the timing of notification to the NRC of spent

fuel management and funding plans by licensees of those nuclear power

reactors that have been shut down before the expected end of their

operating lives. The final rule requires that a licensee submit such

notification either within 2 years after permanently ceasing operation

of its licensed power reactor or no later than 5 years before the

reactor operating license expires, whichever event occurs first.

Licensees of nuclear power reactors that have already permanently

ceased operation by the effective date of this rule are required to

submit such notification within 2 years after the effective date of

this rule.

EFFECTIVE DATE: April 4, 1994.

FOR FURTHER INFORMATION CONTACT: Robert Wood, Office of Nuclear Reactor

Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555,

telephone (301) 504-1255.

SUPPLEMENTARY INFORMATION:

Background

On June 30, 1993, the NRC published in the Federal Register a

notice of proposed rulemaking to clarify the timing of notification to

the NRC of spent fuel management and funding plans by licensees of

those nuclear power reactors that have been shut down prematurely (58

FR 34947).

1. Comments Received

The NRC received four comments on the proposed rule. Three of the

four comments came from licensees or their representatives and

supported the rule as proposed. These commenters agreed with the NRC

assessment that the proposed rule is administrative in nature and would

produce consistency with the decommissioning rule. However, each of the

three recommended that the rule amendments should apply only

prospectively; that is, the rule should not apply to licensees whose

power reactors have already permanently ceased operating. The

commenters requested that the NRC allow licensees of these plants to

submit spent fuel management funding plans on a case-by-case schedule.

One commenter recommended that the NRC add a statement to this effect

to the final rule.

A fourth commenter supported the concept of requiring the submittal

of spent fuel management and funding plans soon after permanent

shutdown, but recommended that licensees be required to submit these

plans within 60 days after permanent shutdown.

The three commenters representing licensees also supported the NRC

intent to initiate rulemaking on including spent fuel costs as part of

decommissioning costs only after careful consideration of the database

that the NRC is developing in this area. In a related area, one of

these commenters noted that the NRC currently has regulations in place

in 10 CFR part 72 to ensure a licensee's financial qualifications for

the safe construction, operation, and decommissioning of an independent

spent fuel storage installation (ISFSI). The fourth commenter supported

rulemaking on funding assurance for spent fuel storage costs that would

be similar to, but separate from, decommissioning costs.

2. NRC Response to Comments

The NRC responds as follows to the issues raised by the commenters:

(1) The rule should only apply prospectively.

NRC response: The NRC disagrees that this rule should not apply to

licensees of plants that have already permanently ceased operating.

This rule should be consistent with the provisions of 10 CFR 50.82(a),

which requires all power plant licensees to submit decommissioning

plans no later than 2 years after permanently ceasing operations

regardless of how long the plant operated. The NRC recently amended 10

CFR 50.82(a) to allow the collection period of any shortfall of

decommissioning funds to be determined on a case-by-case basis for

plants that had been shut down prematurely (57 FR 30383, July 9, 1992).

However, even licensees of these plants must submit their

decommissioning plans within the 2-year time frame, notwithstanding the

collection period ultimately adopted.

To maintain consistency, the NRC believes that the 2-year limit

should be applied to plants already shut down. However, to assure that

the NRC does not impose unnecessary burdens on these licensees, the

final rule has been modified to allow these licensees 2 years from the

effective date of the rule to submit their spent fuel management and

funding plans.1

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\1\In practice, licensees of most of the nuclear power plants

that have already permanently shut down have developed plans for the

management and funding of the disposition of spent fuel at their

sites. For example, Fort St. Vrain has either shipped spent fuel

offsite to DOE or moved it to an ISFSI onsite. Shoreham is shipping

its fuel to Limerick. Yankee-Rowe and Rancho Seco have developed

plans for onsite storage facilities. Humboldt Bay and LaCrosse are

maintaining fuel in their spent fuel pools. Dresden 1, San Onofre 1,

and Indian Point 1 are maintaining fuel in their spent fuel pools or

in pools of other units still operating at the site. Peach Bottom 1

has no fuel onsite.

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(2) Submittal of spent fuel management and funding plans should be

required within 60 days of permanent shutdown of the facility, rather

than within 2 years.

NRC Response: The NRC disagrees with this comment. Sixty days is

too short a period in which to develop a meaningful spent fuel

management and funding plan. Because licensees will normally develop

these plans in conjunction with their decommissioning plans, the NRC

should maintain consistency by requiring the same 2-year limit for both

spent fuel management and funding plans and the overall decommissioning

plan, which includes decommissioning funding.

(3) Costs associated with the construction, operation, and

decommissioning of ISFSIs are already assured by provisions in 10 CFR

Part 72.

NRC Response: The NRC agrees that part 72 contains provisions to

ensure that licensees have adequate funds to construct, operate, and

decommission ISFSIs. Spent fuel management and funding plans submitted

in compliance with the amended Sec. 50.54(bb) need not cover spent fuel

while it is being stored in an ISFSI in compliance with part 72. The

NRC will consider whether these provisions are adequate when it

evaluates whether it is necessary to include spent fuel management and

funding as part of decommissioning costs.

Finding of No Significant Environmental Impact: Availability

This final rule clarifies the timing of the submittal of plans for

managing and providing funding for managing all irradiated fuel for

those licensees whose power reactors are shut down prematurely. This

action is required to coordinate the submittal of spent fuel management

and funding plans with the submittal of decommissioning plans for

prematurely shut down reactors. Because management and funding of spent

fuel can have a significant impact on the method and timing of

decommissioning, licensees should submit their plans for spent fuel

management and funding to be consistent with the timing provisions for

decommissioning plans in Sec. 50.82(a) (i.e., no later than 2 years

after permanent shutdown).

Neither this action nor the alternative of maintaining the existing

rule would significantly affect the environment. Changes in the timing

of the submittal of spent fuel management and funding for prematurely

shut down power reactors would not alter the effect on the environment

of the licensed activities considered in either the final spent fuel

disposition rule (49 FR 34689; August 31, 1984) or the final

decommissioning rule (53 FR 24018; June 27, 1988) as analyzed in the

Final Generic Environmental Impact Statement on Decommissioning of

Nuclear Facilities (NUREG-0586, August 1988). The alternative to this

action would not significantly affect the environment. Therefore, the

Commission has determined, under the National Environmental Policy Act

of 1969, as amended, and the Commission's regulations in subpart A of

10 CFR part 51, that this rule will not be a major Federal action

significantly affecting the quality of the human environment and,

therefore, an environmental impact statement is not required. No other

agencies or persons were contacted for this action, and no other

documents related to the environmental impact of this action exist. The

foregoing constitutes the environmental assessment and finding of no

significant impact for this final rule.

Paperwork Reduction Act Statement

This final rule does not contain a new or amended information

collection requirement subject to the Paperwork Reduction Act of 1980

(44 U.S.C. 3501 et seq.). Existing requirements were approved by the

Office of Management and Budget, approval number [3150-0011].

Regulatory Analysis

On August 31, 1984, the NRC published a final rule, ``Requirements

for Licensee Actions Regarding the Disposition of Spent Fuel Upon

Expiration of Reactor Operating Licensees.'' (49 FR 34689). As part of

this rule, the NRC required power reactor licensees to submit for NRC

review and approval, no later than 5 years before expiration of the

reactor operating license, their plans for managing spent fuel at their

site until title to the spent fuel is transferred to the Department of

Energy (DOE). These plans are to include plans for funding of spent

fuel management before transfer to DOE.

On June 27, 1988, the Commission promulgated its final

decommissioning rule (53 FR 24019). Section 50.82 of this rule provides

that licensees of all power reactors that permanently cease operation

after July 27, 1988, including those that shut down prematurely, must

apply to the NRC to decommission their facilities within 2 years

following permanent cessation of operations. Section 50.82(b)(1)(iii)

further provides that the proposed decommissioning plan submitted by

the licensee should consider such factors as the ``unavailability of

waste disposal capacity and other site-specific factors affecting the

licensee's capability to carry out decommissioning safely * * *.'' The

Commission requires licensees to submit decommissioning plans in a

timely manner after they permanently cease operations at their

facilities. The NRC's regulations recognize that a licensee's ability

to plan properly and safely for decommissioning depends on a licensee's

ability to manage and dispose of its spent fuel. Thus, the timing of

requirements for submittal of plans for spent fuel management and

storage should be consistent with the timing for submittal of

decommissioning plans, including those for power reactors that have

been shut down prematurely. Therefore, the NRC is amending 10 CFR

50.54(bb) to require each power reactor licensee to notify the NRC of

its program to manage and provide funding for management of the

irradiated fuel at its reactor either within 2 years after the licensee

permanently ceases operation of its reactor or no later than 5 years

before its reactor operating license expires, whichever occurs first.

Licensees of nuclear power reactors that have already permanently

ceased operations by the effective date of this rule are required to

submit such notification within 2 years after the effective date of

this rule.

Although the timing of preparation and submittal of plans for

management and funding of spent fuel would be formally advanced for

licensees that shut down their power reactors prematurely, these

licensees typically would have already evaluated spent fuel management

and funding issues before submitting decommissioning plans required

under 10 CFR 50.82. This rule merely makes 10 CFR 50.54(bb) submittal

schedular requirements consistent with 10 CFR 50.82. Thus, there should

be no substantive impact on power reactor licensees.

This final rule would not create substantial costs for other

licensees. This final rule also will not significantly affect State and

local governments and geographical regions, or the environment, or

create substantial costs to the NRC or other Federal agencies. The

foregoing discussion constitutes the regulatory analysis for this final

rule.

Regulatory Flexibility Certification

As required by the Regulatory Flexibility Act of 1980, 5 U.S.C.

605(b), the Commission certifies that this final rule will not have a

significant impact upon a substantial number of small entities. The

rule will potentially affect approximately 115 nuclear power reactor

operating licenses. Nuclear power plant licensees do not fall within

the definition of small businesses as defined in section 3 of the Small

Business Act, 15 U.S.C. 632, the Small Business Size Standards of the

Small Business Administrator (13 CFR part 121), or the Commission's

Size Standards (56 FR 56671, November 6, 1991).

Backfit Analysis

The NRC has determined that this final rule does not impose a

backfit as defined in 10 CFR 50.109(a)(1). Therefore, a backfit

analysis is not required for this final rule.

List of Subjects in 10 CFR Part 50

Antitrust, Classified information, Criminal penalty, Fire

protection, Incorporation by reference, Intergovernmental relations,

Nuclear power plants and reactors, Radiation protection, Reactor siting

criteria, Reporting and recordkeeping requirements.

For the reasons given in the preamble and under the authority of

the Atomic Energy Act of 1954, as amended, the Energy Reorganization

Act of 1974, as amended, and 5 U.S.C. 552 and 553, the NRC is adopting

the following amendment to 10 CFR part 50.

PART 50--DOMESTIC LICENSING OF PRODUCTION AND UTILIZATION

FACILITIES

1. The authority citation for part 50 continues to read as follows:

Authority: Secs. 102, 103, 104, 105, 161, 182, 183, 186, 189, 68

Stat. 936, 937, 938, 948, 953, 954, 955, 956, as amended, sec. 234,

83 Stat. 1244, as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2201,

2232, 2233, 2236, 2239, 2282); secs. 201 as amended, 202, 206, 88

Stat. 1242 as amended 1244, 1246 (42 U.S.C. 5841, 5842, 5846).

Section 50.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat.

2951 (42 U.S.C. 5851). Section 50.10 also issued under secs. 101,

185, 68 Stat. 955, as amended (42 U.S.C. 2131, 2235); sec. 102, Pub.

L. 91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.13, 50.54

(dd), and 50.103 also issued under sec. 108, 68 Stat. 939 as amended

(42 U.S.C. 2138). Sections 50.23, 50.35, 50.55, and 50.56 also

issued under sec. 185, 68 Stat. 955 (42 U.S.C. 2235). Sections

50.33a, 50.55a and Appendix Q also issued under sec. 102, Pub. L.

91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.34 and 50.54 also

issued under sec. 204, 88 Stat. 1245 (42 U.S.C. 5844). Sections

50.58, 50.91, and 50.92 also issued under Pub. L. 97-415, 96 Stat.

2073 (42 U.S.C. 2239). Section 50.78 also issued under sec. 122, 68

Stat. 939 (42 U.S.C. 2152). Sections 50.80-50.81 also issued under

sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Appendix F also

issued under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).

2. Section 50.54 is amended by revising paragraph (bb) to read as

follows:

Sec. 50.54 Conditions of licenses.

* * * * *

(bb) For nuclear power reactors licensed by the NRC, the licensee

shall, within 2 years following permanent cessation of operation of the

reactor or 5 years before expiration of the reactor operating license,

whichever occurs first, submit written notification to the Commission

for its review and preliminary approval of the program by which the

licensee intends to manage and provide funding for the management of

all irradiated fuel at the reactor following permanent cessation of

operation of the reactor until title to the irradiated fuel and

possession of the fuel is transferred to the Secretary of Energy for

its ultimate disposal in a repository. Licensees of nuclear power

reactors that have permanently ceased operation by April 4, 1994 are

required to submit such written notification by April 4, 1996. Final

Commission review will be undertaken as part of any proceeding for

continued licensing under part 50 or part 72 of this chapter. The

licensee must demonstrate to NRC that the elected actions will be

consistent with NRC requirements for licensed possession of irradiated

nuclear fuel and that the actions will be implemented on a timely

basis. Where implementation of such actions requires NRC

authorizations, the licensee shall verify in the notification that

submittals for such actions have been or will be made to NRC and shall

identify them. A copy of the notification shall be retained by the

licensee as a record until expiration of the reactor operating license.

The licensee shall notify the NRC of any significant changes in the

proposed waste management program as described in the initial

notification.

* * * * *

Dated at Rockville, Maryland this 18th day of February, 1994.

For the Nuclear Regulatory Commission.

James M. Taylor,

Executive Director for Operations.

[FR Doc. 94-4956 Filed 3-3-94; 8:45 am]

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