97-28679. Financial Protection Requirements for Permanently Shutdown Nuclear Power Reactors  

  • [Federal Register Volume 62, Number 210 (Thursday, October 30, 1997)]
    [Proposed Rules]
    [Pages 58690-58694]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-28679]
    
    
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    Proposed Rules
                                                    Federal Register
    ________________________________________________________________________
    
    This section of the FEDERAL REGISTER contains notices to the public of 
    the proposed issuance of rules and regulations. The purpose of these 
    notices is to give interested persons an opportunity to participate in 
    the rule making prior to the adoption of the final rules.
    
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    Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / 
    Proposed Rules
    
    [[Page 58690]]
    
    
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    NUCLEAR REGULATORY COMMISSION
    
    10 CFR Parts 50 and 140
    
    RIN 3150-AF79
    
    
    Financial Protection Requirements for Permanently Shutdown 
    Nuclear Power Reactors
    
    AGENCY: Nuclear Regulatory Commission.
    
    ACTION: Proposed rule.
    
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    SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend 
    its regulations to allow nuclear reactor licensees to reduce onsite and 
    offsite liability coverage during permanent shutdown of the reactors if 
    they meet specified reactor configurations. This proposed amendment 
    would reduce the level of insurance coverage commensurate with the risk 
    reduction after the appropriate spent fuel cooling period following 
    permanent shutdown of the reactor.
    
    DATES: The comment period expires January 13, 1998. Comments received 
    after this date will be considered if it is practical to do so, but the 
    Commission is able to assure consideration only for comments received 
    on or before this date.
    
    ADDRESSES: Send comments by mail or addressed to the Secretary, U.S. 
    Nuclear Regulatory Commission, Washington, DC 20555-0001. Attention: 
    Rulemakings and Adjudications Staff.
        Hand-deliver comments to: 11555 Rockville Pike, Rockville, 
    Maryland, between 7:30 am and 4:15 pm on Federal workdays.
        You may also provide comments via the NRC's interactive rulemaking 
    web site through the NRC home page (http://www.nrc.gov). This site 
    provides the availability to upload comments as files (any format), if 
    your web browser supports that function. For information about the 
    interactive rulemaking site, contact Ms. Carol Gallagher, (301) 415-
    6215; e-mail [email protected]
        Certain documents related to this rulemaking, including comments 
    received and the environmental assessment and finding of no significant 
    impact, may be examined at the NRC Public Document Room, 2120 L Street 
    NW., (Lower Level), Washington, DC. These same documents also may be 
    viewed and downloaded electronically via the interactive rulemaking 
    website established by NRC for this rulemaking.
    
    FOR FURTHER INFORMATION CONTACT: George Mencinsky, Office of Nuclear 
    Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC 
    20555-0001, telephone: (301) 415-6206, e-mail [email protected]; Stephen 
    Lewis, Office of the General Counsel, U.S. Nuclear Regulatory 
    Commission, Washington, DC 20555-0001, telephone: (301) 415-1684, e-
    mail [email protected]; Ira Dinitz, Office of Nuclear Reactor Regulation, 
    U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, 
    telephone: (301) 415-1289, e-mail IPD1@nrc.gov.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        The current regulations governing insurance coverage for nuclear 
    power reactors are contained in 10 CFR 50.54(w) and 10 CFR 140.11. 
    These regulations do not take into consideration the reduced risk 
    associated with permanently shutdown plants. The exemption process 
    allows reduced insurance coverage for these plants.
        Consideration of whether financial protection coverage should be 
    reduced for permanently shutdown plants must take into account the 
    preservation of the solvency of the organization responsible for 
    maintaining and decommissioning these facilities in the unlikely event 
    of a nuclear incident. In addition, consideration would be given to 
    timely payment for valid damage claims by members of the public and 
    minimization of the likelihood that Federal Government indemnity would 
    be exercised for satisfaction of claims for damages.
        The regulations in 10 CFR 140.11 require that the licensees of 
    facilities designed to produce substantial amounts of electricity, a 
    rated capacity of 100,000 kWe or more, must have and maintain a primary 
    insurance coverage of $200 million from private sources to protect 
    against offsite liability. In addition, licensees must maintain 
    secondary financial protection in the form of private liability 
    insurance available under an industry retrospective rating plan. The 
    current maximum obligation for secondary financial protection for a 
    licensee in this plan is $75.5 million with respect to any nuclear 
    incident. Thus, the total financial protection for offsite liability 
    for any incident would be the primary layer of $200 million, plus the 
    secondary layer of $75.5 million multiplied by the number of licensed 
    power reactors with a rated capacity of 100,000 kWe or higher.
        Under 10 CFR 50.54(w), power reactor licensees must obtain 
    insurance coverage from private sources to provide protection against 
    onsite damage in the event of an accident. These monies would allow the 
    licensee to stabilize and decontaminate the reactor and reactor station 
    site in the event of an accident. The minimum amount of insurance 
    coverage is the lesser of $1.06 billion or the maximum amount of 
    insurance generally available from private sources.
        This proposed rule is part of the NRC effort to eliminate 
    unnecessary regulatory burdens for power reactor facilities that are 
    permanently shutdown and in the process of decommissioning. This would 
    complement other amendments for decommissioning, such as the final rule 
    that was published in the Federal Register (61 FR 39278) on July 29, 
    1996, which clarified the procedures leading to permanent shutdown and, 
    eventually, to the termination of an operating license for nuclear 
    power reactors.
        This proposed rule would also address a petition for rulemaking 
    (PRM-50-57) submitted by the North Carolina Public Staff Utilities 
    Commission. The petition requested reduction or, preferably, 
    elimination of the $1.06 billion of insurance for onsite reactor 
    stabilization and accident decontamination that is required by 10 CFR 
    50.54(w) when all nuclear fuel has been removed from the site. The 
    petitioner also requested that the offsite primary and secondary 
    liability coverages required under 10 CFR 140.11(a)(4) be reduced or, 
    preferably, eliminated for shutdown reactors when no nuclear fuel is on 
    the reactor site.
        The proposed rule does not address the financial protection 
    requirements for
    
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    Independent Spent Fuel Storage Installations (ISFSIs). This subject 
    will be addressed after efforts dealing with technical and licensing 
    issues for ISFSIs are resolved in areas of safeguards requirements, 
    emergency planning, and potential fuel storage handling activities.
    
    Discussion
    
        Several different configurations for permanently shutdown reactors 
    are being established that encompass anticipated spent fuel 
    characteristics and storage modes during the period between permanent 
    shutdown and termination of the license. They are as follows:
        Reactor Configuration 1: the reactor is defueled, permanently 
    shutdown, and spent fuel in the spent fuel pool is susceptible to a 
    zircaloy cladding fire if the spent fuel pool is drained accidentally. 
    This configuration encompasses the period from immediately after the 
    core is offloaded to just before the decay heat of the hottest 
    assemblies is low enough that no rapid zircaloy oxidation will take 
    place, and the fuel cladding will remain intact with no gap release if 
    water in the spent fuel pool is lost.
        Reactor Configuration 2: The reactor is defueled, permanently 
    shutdown, and spent fuel is in the spent fuel pool but is not 
    susceptible to a zircaloy cladding fire or gap release caused by an 
    incipient fuel cladding failure in the event the spent fuel pool is 
    drained accidentally. In this configuration, the spent fuel can be 
    stored long-term in the spent fuel pool without the possibility of 
    initiating a zircaloy fire or significant fuel cladding failure. In 
    addition, the site may contain a radioactive inventory of liquid 
    radwaste, activated reactor components, and contaminated structural 
    materials. The radioactive inventory during this configuration may 
    change depending on the licensee's proposed shutdown activities and 
    schedule.
        Reactor Configuration 3: The reactor is permanently shutdown and no 
    spent fuel is in the reactor or the spent fuel pool. All spent fuel has 
    been removed to an offsite or onsite dry storage independent spent fuel 
    storage installation (ISFSI) or to a DOE high-level repository. The 
    remaining radioactive inventory depends on the decommissioning status 
    and may include liquid radwaste, activated reactor components, and 
    contaminated structural materials.
        Reactor Configuration 4: Same as reactor configuration 3, except 
    the reactor site has no significant mobile sources of radioactivity 
    such as contaminated liquids (less than 1000 gallons).
        There are potential onsite and offsite radiological consequences 
    that could be associated with the onsite storage of the spent fuel in 
    the spent fuel pool for some time after permanent shutdown. In Reactor 
    Configuration 1, in the event of a complete loss of spent fuel pool 
    coolant inventory such as from a beyond-design-basis earthquake 
    scenario, there is a potential for overheating the fuel by decay heat. 
    This sequence could result in a zircaloy cladding fire that may have 
    significant onsite and offsite consequences.
        To prevent fuel rod cladding failure leading to a zircaloy-cladding 
    fire if all spent fuel pool water is lost, the rod cladding temperature 
    must not exceed 565 deg.C. The rod cladding temperature is an important 
    factor that must be considered in modifying the financial protection 
    requirements for permanently shutdown reactors.
        In Reactor Configuration 2, the spent fuel has decay heat 
    sufficiently low that the cladding will remain intact even if all spent 
    fuel pool water is lost. However, if there are significant sources of 
    radioactive material stored onsite, it would be appropriate to maintain 
    an adequate level of onsite insurance coverage. Although the offsite 
    consequences are negligible in the Reactor Configuration 2 , because 
    the spent fuel pool is operational and an inventory of radioactive 
    materials exists onsite, an appropriate level of offsite financial 
    protection is required to account for the potential for significant 
    judgments or settlements from litigation that might be instituted and 
    to protect the Federal government from indemnity claims.
        In Reactor Configuration 3, when spent fuel is no longer stored in 
    the spent fuel pool, the potential for a radiological incident is 
    primarily in mobile sources of radioactivity onsite at permanently 
    shutdown nuclear reactors. The offsite cleanup costs were found to be 
    negligible for Reactor Configuration 3, but as was noted in Reactor 
    Configuration 2, an appropriate level of offsite financial protection 
    is still required to account for the potential for significant 
    judgments or settlements from litigation that might be instituted and 
    also to protect the Federal government from indemnity claims. Because 
    the level of risk has decreased vis-a-vis the Reactor Configuration 2 
    by having no spent fuel in the spent fuel pool, the level of offsite 
    financial protection required is being reduced by taking into account 
    only the mobile radioactive inventory onsite.
        In the Reactor Configuration 4, with no significant amount of 
    mobile sources of radioactivity such as contaminated liquids onsite, 
    there is no need to maintain the same level of insurance coverage for 
    onsite or offsite financial protection as in Reactor Configuration 3. 
    The basis for the transition from Reactor Configuration 3 to Reactor 
    Configuration 4 is the point at which there is less than 1000 gallons 
    of liquid radwaste stored onsite. A limiting value of 1000 gallons has 
    been considered because it constitutes approximately a factor of 500 
    reduction in volume from the large volume tank used as the basis for 
    the Reactor Configuration 3 limiting event.
        In Reactor Configuration 4, if the licensee has cleaned the site to 
    unrestricted release levels and is awaiting a confirmatory survey for 
    terminating the license, the necessary level of onsite insurance 
    coverage at this stage would be less than when 1000 gallons of liquid 
    radwaste were stored onsite. Under these circumstances, the onsite 
    coverage could be further reduced or eliminated to account for 
    negligible onsite consequences. However, for offsite financial 
    protection requirements, although the offsite consequences are 
    negligible, some level of public liability financial protection must be 
    maintained as long as there remains in effect a nuclear reactor license 
    issued pursuant to 10 CFR part 50 under the authority of Section 103 or 
    104 of the Atomic Energy Act (42 U.S.C. 2133, 2134). See Section 170a 
    of that Act (42 U.S.C. 2210a). Section 170 is commonly referred to as 
    the ``Price-Anderson Act.''
    
    Proposed Regulatory Action
    
        The proposed amendments would adjust the onsite insurance coverage 
    requirements and the offsite financial protection requirements for 
    permanently shutdown reactors based on limiting the spent fuel cladding 
    temperatures for accidents involving loss of spent fuel pool water and 
    the amount of onsite radioactive inventory such as liquid radwaste in 
    post shutdown modes. The insurance amounts are based on the estimated 
    cost of recovery from limiting hypothetical events for specific reactor 
    configurations.
        The proposed amendments would also address ``rated capacity'' in 10 
    CFR 140.11 as used in Section 170a of the Atomic Energy Act to indicate 
    that a permanently shutdown nuclear reactor has a ``rated capacity'' of 
    zero.
        The proposed financial protection requirements are as follows.
        Reactor Configuration 1--Fuel in spent fuel pool not sufficiently 
    cool.
    
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    --The requirements for onsite insurance coverage and offsite financial 
    protection remain as presently specified in 10 CFR 50.54(w) and 10 CFR 
    140.11, respectively.
    
        Reactor Configuration 2--Fuel could tolerate a complete loss of 
    water in the spent fuel pool.
    
    --The onsite insurance coverage requirements is $50 million. The amount 
    of $50 million is to recover from a postulated accident in the spent 
    fuel pool.
    --The offsite financial protection requirement is $100 million, based 
    on the potential for significant judgments or settlements resulting 
    from litigation despite negligible offsite consequences.
    
        Reactor Configuration 3--No fuel in spent fuel pool, risk dependent 
    on radioactive inventory at plant site in decommissioning status.
    
    --The onsite insurance coverage requirement is $50 million. The amount 
    of $50 million is the estimated amount needed to recover from a 
    postulated onsite event of a rupture of a large slightly contaminated 
    liquid storage tank.
    --The offsite financial protection requirement is $50 million, based on 
    the potential for significant judgments or settlements resulting from 
    litigation that might still be instituted despite negligible offsite 
    consequences; however the liability risk is considered less than in 
    Reactor Configuration 2.
    
        Reactor Configuration 4--No fuel in the spent fuel pool and no 
    significant source of mobile radioactive material.
    
    --The onsite insurance coverage requirements is either $25 million or 
    is eliminated. The amount of $25 million is based on the possibility of 
    having to clean up onsite contamination from an accidental rupture of a 
    less-than-1000-gallon contaminated liquid storage tank during shutdown 
    activities. Elimination of onsite insurance coverage would be warranted 
    when a licensee is awaiting a confirmatory survey for license 
    termination.
    --The offsite financial protection requirement is $25 million, based on 
    the potential for claims arising from asserted offsite consequences. 
    This would minimize the possibility that Federal Government 
    indemnification would be required. As noted above, the Atomic Energy 
    Act does not allow a 10 CFR part 50 licensee to drop this coverage 
    entirely, only to reduce it.
    
    Discussion
    
        This proposed rule would allow power reactor licensees to reduce 
    their onsite insurance coverage and offsite financial protection 
    requirements during permanent shutdown without resorting to the 
    exemption process. The level of financial protection would be 
    determined for permanently shutdown reactors at a level that coincides 
    with their actual configuration stage.
        During Reactor Configuration 1, licensees would be required to 
    maintain onsite insurance coverage and offsite financial protection at 
    the levels currently required by 10 CFR 50.54(w) and 10 CFR 140.11, 
    respectively. This is because the radiological consequences during this 
    stage of permanent shutdown approximate the magnitude of a severe core 
    damage accident.
        After allowing the spent fuel to cool down to the point that the 
    maximum spent fuel cladding temperature will not exceed 565 deg.C in 
    the event of a loss of water in the spent fuel pool (Reactor 
    Configuration 2), power reactor licensees would be allowed under 10 CFR 
    50.54(w) to reduce their onsite insurance coverage from $1.06 billion 
    to $50 million. The reason for this reduction in insurance coverage is 
    that the rapid clad oxidation event of Reactor Configuration 1 is not 
    possible. Insurance coverage requirements for Reactor Configuration 2 
    are based on the fact that there is a possibility for a fuel handling 
    accident in the spent fuel pool, and significant amounts of mobile 
    radioactive sources remain onsite that have a potential for release 
    during this period. The $50 million coverage would be adequate to clean 
    up the site in the event of a fuel handling accident, an accidental 
    release of cooling water from the spent fuel pool, or a rupture of a 
    large slightly contaminated liquid storage tank.
        The proposed insurance coverage requirement for Reactor 
    Configuration 2 does not take into account the reduction in radioactive 
    decay of the spent fuel assemblies with the passage of time during that 
    period. The insurance coverage requirements are based on the 
    conservative assumption of a fuel handling accident shortly after the 
    transition to Reactor Configuration 2. Adjusting insurance requirements 
    during Reactor Configuration 2 based on the decay level of the spent 
    fuel would be burdensome from a regulatory standpoint, as opposed to 
    selecting a bounding figure to encompass any unexpected events 
    concerning the spent fuel pool.
        In Reactor Configuration 2, the offsite financial protection 
    requirements set forth in 10 CFR 140.11 would be reduced from $200 
    million to $100 million for the primary liability coverage, and the 
    licensee would be allowed to withdraw from the secondary liability 
    coverage under Price-Anderson.
        In Reactor Configuration 3, when all the spent fuel has been 
    removed to an onsite or offsite dry storage ISFSI or to a DOE high-
    level repository and the onsite radioactive inventory is greater than 
    1000 gallons, the onsite insurance coverage requirements would be $50 
    million under the proposed 10 CFR 50.54(w). This amount is based on the 
    fact that there are still mobile radioactive sources onsite that have 
    the potential to contaminate the site. The maximum cleanup costs 
    associated with Reactor Configuration 3 are estimated at approximately 
    $50 million. The conservative limiting event is the rupture of a large 
    contaminated liquid storage tank that causes soil contamination and the 
    potential to contaminate groundwater. The offsite financial protection 
    requirements under the proposed Section 140.11 would be reduced from 
    $100 million to $50 million, and the licensee would not be required to 
    maintain secondary liability coverage under the Price-Anderson Act for 
    Reactor Configuration 3. With no spent fuel in the spent fuel pool, the 
    risks of offsite contamination have been reduced considerably for this 
    configuration.
        In Reactor Configuration 4, there are no significant mobile sources 
    of radioactivity, such as liquid contaminants, onsite. Thus, the 
    potential for onsite and offsite radiological impacts is limited. In 
    this situation, onsite insurance coverage requirements either would be 
    $25 million or would be completely eliminated under the proposed 10 CFR 
    50.54(w). The amount in each case would be based on information 
    provided by the licensee and evaluated by the staff for the particular 
    circumstances of the shutdown reactor. The $25 million onsite insurance 
    coverage would be required if liquid radwaste remained stored onsite, 
    usually 1,000 gallons or less of radwaste, that may be susceptible to 
    an accidental spill and the consequent need for cleanup of the 
    contaminated site. Elimination of required onsite insurance coverage 
    would be based on the licensee's submittal of its terminal radiation 
    survey to the NRC stating that the site has been cleaned to 
    unrestricted release levels and is awaiting a confirmatory survey for 
    termination of the license. In either case, the onsite and offsite 
    consequences would be negligible.
    
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        In Reactor Configuration 4, the required offsite financial 
    protection would be reduced to $25 million to account for the 
    continuing potential for claims based on asserted offsite consequences. 
    A minimum of $25 million in coverage would minimize the possibility 
    that Federal Government indemnification would be required and would be 
    consistent with the requirements of Section 170 of the Atomic Energy 
    Act that power reactor licensees maintain some level of public 
    liability financial protection. The licensee would not be required to 
    maintain secondary liability coverage under Price-Anderson for Reactor 
    Configuration 4.
        In addition, ``rated capacity'' would be addressed in 10 CFR part 
    140 to indicate that permanently shutdown nuclear power plants have 
    ``zero'' rated capacity. The effect of this amendment would be to allow 
    the NRC to permit reduction of the primary liability coverage and 
    elimination of the requirement for participation in the secondary 
    liability coverage for nuclear power plants that had made the 
    certifications under 10 CFR 50.82(a)(1)(i) and (ii). However, for 
    reasons stated above, the NRC does not propose to permit this reduction 
    and withdrawal until a reactor has entered the Reactor Configuration 2. 
    At that point the NRC proposes that the reactor no longer be subject to 
    the requirements to maintain primary financial protection in the 
    ``maximum amount available at reasonable cost and on reasonable terms 
    from private sources'' or to participate in the secondary financial 
    protection public liability system under Section 170 of the Atomic 
    Energy Act. The Commission has already approved, in response to site-
    specific requests, these adjustments in the primary and secondary 
    public liability insurance regime, and this clarification in part 140, 
    as requested by the Commission, places into the Commission's 
    regulations a statement that a permanently shutdown nuclear power plant 
    is no longer considered to have any ``rated capacity.''
        The petition for rulemaking submitted by the North Carolina Public 
    Staff Utilities Commission would be substantially granted in that the 
    insurance requirements would be significantly reduced, as requested. 
    However, the petition could not be fully granted because of the Price-
    Anderson statutory provisions that do not allow licensees who continue 
    to hold 10 CFR part 50 licenses to drop the offsite public liability 
    coverage entirely.
    
    Finding of No Significant Environmental Impact: Availability
    
        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, if adopted, would not be a 
    major Federal action significantly affecting the quality of the human 
    environment, and therefore, an environmental impact statement is not 
    required. The proposed rule change would allow licensees to seek 
    reductions in onsite and offsite insurance coverage following permanent 
    shutdown if they meet specified reactor configurations because of the 
    reduced risk associated with permanently shutdown reactors. The 
    proposed rule change would require no changes in hardware, procedures, 
    organization, or operation of nuclear power reactors. It would not 
    affect the safety requirements for nuclear power reactors because of 
    the significantly reduced risks to the public health and safety in 
    Reactor Configurations 2, 3, and 4 and it would not affect the 
    likelihood, magnitude, or consequences of accidents at the permanently 
    shutdown nuclear power reactors. Although the proposed rule change 
    would reduce the level of financial protection available to pay for 
    environmental or other consequences that may result from accidents at 
    permanently shutdown nuclear power reactors, the Commission considers 
    the reduced required insurance and financial protection coverage to be 
    fully adequate and commensurate with the reduced consequences of 
    potential accidents at permanently shutdown nuclear reactors and that 
    the environment will not be negatively affected. Accordingly, the 
    Commission has determined that the proposed rulemaking would have no 
    significant impacts on the quality of the environment.
        The environmental assessment and finding of no significant impact 
    on which this determination is based are available for inspection at 
    the NRC Public Document Room, 2120 L Street NW. (Lower Level), 
    Washington, DC. Single copies of the environmental assessment and the 
    finding of no significant impact are available from George Mencinsky, 
    Office of Nuclear Regulatory Research, U.S. Nuclear Regulatory 
    Commission, Washington, DC 20555-0001, telephone (301) 415-6206.
    
    Paperwork Reduction Act Statement
    
        This proposed rule does not contain a new or amended information 
    collection requirement subject to the Paperwork Reduction Act of 1995 
    (44 U.S.C. 3501 et seq.). Existing requirements were approved by the 
    Office of Management and Budget, approval numbers 3150-0011 and 3150-
    0039.
    
    Public Protection Notification
    
        The NRC may not conduct or sponsor, and a person is not required to 
    respond to, an information collection unless it displays a currently 
    valid OMB control number.
    
    Regulatory Analysis
    
        The Commission has prepared a draft regulatory analysis on this 
    proposed regulation. The analysis examines the costs and benefits of 
    the alternatives considered by the Commission. The draft analysis is 
    available for inspection in the NRC Public Document Room, 2120 L Street 
    NW. (Lower Level), Washington, DC. Single copies of the draft analysis 
    may be obtained from George Mencinsky, Office of Nuclear Regulatory 
    Research, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
    0001, telephone (301) 415-6206. The Commission requests public comment 
    on the draft regulatory analysis. Comments on the draft analysis may be 
    submitted to the NRC as indicated under the ADDRESSES heading.
    
    Regulatory Flexibility Certification
    
        As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 
    605(b)), the Commission certifies that this rule, if adopted, will not 
    have a significant economic impact upon a substantial number of small 
    entities. The proposed rule only affects NRC power reactor licensees, 
    which are not ``small entities.''
    
    Backfit Analysis
    
        The NRC has determined that the backfit rule, 10 CFR 50.109, does 
    not apply to this proposed rule because the backfit rule is limited in 
    scope to construction and operation of nuclear reactors. This rule 
    would only apply to reactors that have permanently ceased operations. 
    Therefore, a backfit analysis is not required because these amendments 
    do not involve any provisions that would impose backfits as defined in 
    10 CFR 50.109(a)(1).
    
    List of Subjects
    
    10 CFR Part 50
    
        Antitrust, Classified information, Criminal penalties, Fire 
    protection, Incorporation by reference, Intergovernmental relations, 
    Nuclear power plants and reactors, Radiation protection, Reactor siting 
    criteria,
    
    [[Page 58694]]
    
    Reporting and recordkeeping requirements.
    
    10 CFR Part 140
    
        Criminal penalties, Extraordinary nuclear occurrence, Insurance, 
    Intergovernmental relations, Nuclear materials, Nuclear power plants 
    and reactors, Reporting and recordkeeping requirements.
    
        For the reasons set out 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. 553, the NRC is proposing to 
    adopt the following amendments to 10 CFR parts 50 and 140.
    
    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. 444, 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). Sections 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. In Sec. 50.54(w), paragraph (5) is added to read as follows:
    
    
    Sec. 50.54  Conditions of licenses.
    
    * * * * *
        (w) * * *
        (5) For the specified reactor configurations during permanent 
    shutdown, licensees shall maintain the following insurance requirements 
    notwithstanding paragraph (w)(1):
        (i) For Reactor Configuration 1: when the reactor is defueled, 
    permanently shutdown, and the spent fuel cladding temperature in the 
    spent fuel pool is 565 deg.C or greater for a postulated loss of spent 
    fuel pool cooling event, the insurance coverage must be as specified in 
    paragraph (w)(1).
        (ii) For Reactor Configuration 2: when the reactor is defueled and 
    permanently shutdown, no operating reactors are on the site, and the 
    spent fuel cladding temperature in the spent fuel pool does not exceed 
    565 deg.C for a postulated loss-of-spent-fuel-pool-cooling event, the 
    minimum insurance coverage limit for each reactor must be $50 million.
        (iii) For Reactor Configuration 3: when the reactor is defueled and 
    permanently shutdown, no operating reactors are on the site, no fuel is 
    in the spent fuel pool, and the radioactive liquid inventory onsite is 
    1,000 gallons or greater, the minimum insurance coverage for each 
    reactor must be $50 million.
        (iv) For Reactor Configuration 4: when the reactor is defueled and 
    permanently shutdown, no operating reactors are on the site, no fuel is 
    in the spent fuel pool, and the radioactive liquid inventory onsite is 
    less than 1,000 gallons, the minimum insurance coverage for each 
    reactor must be $25 million. For sites awaiting license termination, no 
    insurance coverage is required if the licensee has completed its 
    terminal radiation survey and the site is ready for the confirmatory 
    survey for license termination.
    * * * * *
    
    PART 140--FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY 
    AGREEMENTS
    
        1. The authority citation for Part 140 continues to read as 
    follows:
    
        Authority: Secs. 161, 170, 68 Stat. 948, 71 Stat. 576, as 
    amended (42 U.S.C. 2201, 2210); secs. 201, as amended, 202, 88 Stat. 
    1242, as amended, 1244 (42 U.S.C. 5841, 5842).
    
        2. In Sec. 140.11(a), remove ``and'' at the end of paragraph (3), 
    change ``.'' at end of paragraph (4) to ``; and'' and add paragraph (5) 
    to read as follows:
    
    
    Sec. 140.11  Amounts of financial protection for certain reactors.
    
        (a) * * *
        (5) For the specified reactor configurations during permanent 
    shutdown of nuclear power reactors (such reactors being classified as 
    having zero electric power level rated capacity) that were covered 
    during their operation by paragraph (a)(4):
        (i) For Reactor Configuration 1: when the reactor is defueled, 
    permanently shutdown, and the spent fuel cladding temperature in the 
    spent fuel pool is 565 deg.C or greater for a postulated loss of spent 
    fuel pool cooling event, in the amount as specified in paragraph 
    (a)(4).
        (ii) For Reactor Configuration 2: when the reactor is defueled and 
    permanently shutdown, no operating reactors are on the site, and the 
    spent fuel cladding temperature in the spent fuel pool does not exceed 
    565 deg.C for a postulated loss-of-spent-fuel-pool-cooling event, in 
    the amount of $100 million for each reactor.
        (iii) For Reactor Configuration 3: when the reactor is defueled and 
    permanently shutdown, no operating reactors are on the site, no fuel is 
    in the spent fuel pool, and the radioactive liquid inventory onsite is 
    1,000 gallons or greater, in the amount of $50 million for each 
    reactor.
        (iv) For Reactor Configuration 4: when the reactor is defueled and 
    permanently shutdown, no operating reactors are on the site, no fuel is 
    in the spent fuel pool, and the radioactive liquid inventory onsite is 
    less than 1,000 gallons, in the amount of $25 million for each reactor.
    
        Dated at Rockville, Maryland, this 23rd day of October, 1997.
    
        For the Nuclear Regulatory Commission.
    John C. Hoyle,
    Secretary of the Commission.
    [FR Doc. 97-28679 Filed 10-29-97; 8:45 am]
    BILLING CODE 7590-01-P
    
    
    

Document Information

Published:
10/30/1997
Department:
Nuclear Regulatory Commission
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
97-28679
Dates:
The comment period expires January 13, 1998. Comments received after this date will be considered if it is practical to do so, but the Commission is able to assure consideration only for comments received on or before this date.
Pages:
58690-58694 (5 pages)
RINs:
3150-AF79: Financial Protection Requirements for Permanently Shutdown Nuclear Power Reactors
RIN Links:
https://www.federalregister.gov/regulations/3150-AF79/financial-protection-requirements-for-permanently-shutdown-nuclear-power-reactors
PDF File:
97-28679.pdf
CFR: (2)
10 CFR 50.54
10 CFR 140.11