[Federal Register Volume 63, Number 228 (Friday, November 27, 1998)]
[Notices]
[Pages 65616-65617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31643]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-213]
In the Matter of Connecticut Yankee Atomic Power Company (Haddam
Neck Plant); Exemption
I
Connecticut Yankee Atomic Power Company is the holder of Facility
Operating License No. DPR-61, which authorizes the licensee to possess
the Haddam Neck Plant (HNP). The license states, among other things,
that the facility is subject to all the rules, regulations, and orders
of the U.S. Nuclear Regulatory Commission (the Commission or NRC) now
or hereafter in effect. The facility consists of a pressurized-water
reactor located at the licensee's site in Middlesex County,
Connecticut. The facility is permanently shut down and defueled, and
the licensee is no longer authorized to operate or place fuel in the
reactor.
II
Section 50.54(w) of 10 CFR Part 50 requires power reactor licensees
to maintain onsite property damage insurance coverage in the amount of
$1.06 billion. Section 140.11(a)(4) of 10 CFR Part 140 requires a
reactor with a rated capacity of 100,000 electrical kilowatts or more
to maintain liability insurance of $200 million and to participate in a
secondary insurance pool.
NRC may grant exemptions from the requirements of 10 CFR Part 50 of
the regulations which, pursuant to 10 CFR 50.12(a), (1) are authorized
by law, will not present an undue risk to public health and safety, and
are consistent with the common defense and security and (2) present
special circumstances. Special circumstances exist when 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 (10 CFR 50.12(a)(2)(ii)). The underlying
purpose of Section 50.54(w) is to provide sufficient property damage
insurance coverage to ensure funding for onsite post-accident recovery
stabilization and decontamination costs in the unlikely event of an
accident at a nuclear power plant.
NRC may grant exemptions from the requirements of 10 CFR Part 140
of the regulations which, pursuant to 10 CFR 140.8, are authorized by
law and are otherwise in the public interest. The underlying purpose of
Section 140.11 is to provide sufficient liability insurance to ensure
funding for claims resulting from a nuclear incident or precautionary
evacuation.
III
On October 7, 1997, the licensee requested exemption from the
financial protection requirement limits of 10 CFR 50.54(w) and 10 CFR
140.11. The licensee requested that the amount of insurance coverage it
must maintain be reduced to $50 million for onsite property damage and
$100 million for offsite financial protection. The licensee stated that
special circumstances exist because of the permanently shutdown and
defueled condition of HNP.
The financial protection limits of 10 CFR 50.54(w) and 10 CFR
140.11 were established to require a licensee to maintain sufficient
insurance to cover the costs of a nuclear accident at an operating
reactor. Those costs were derived from the consequences of a release of
radioactive material from the reactor. Although the risk of an accident
at an operating reactor is very low, the consequences can be large. In
an operating plant, the high temperature and pressure of the reactor
coolant system, as well as the inventory of relatively short-lived
radionuclides, contribute to both the risk and consequences of an
accident. In a permanently shutdown and defueled reactor facility, the
reactor coolant system will never be operated and contains no short-
lived radionuclides, which eliminates the possibility of reactor
accidents. A further reduction in risk occurs because decay heat from
the spent fuel decreases over time, which reduces the amount of cooling
required to prevent the spent fuel from heatingup to a temperature that
could compromise the ability of the fuel cladding to retain fission
products.
Along with the reduction in risk, the consequences of a release
decline after a reactor permanently shuts down and defuels. The short-
lived radionuclides contained in the spent fuel, particularly volatile
components such as iodine and most of the noble gases, decay away,
thereby reducing the inventory of radioactive materials that are
readily dispersible and transportable in air.
Although the risk and consequences of a radiological release
decline substantially after a plant permanently defuels its reactor,
they are not completely eliminated. 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 (SFP). In
addition, a site may contain a radioactive inventory of liquid
radwaste, activated reactor components, and contaminated structural
materials. For purposes of modifying the amount of insurance coverage
maintained by a power reactor licensee, the potential consequences,
despite very low risk, are an appropriate consideration.
In order to determine the insurance coverage sufficient for a
permanently defueled facility, the cost of recovery from potential
accident scenarios must be evaluated. At the HNP, spent fuel is the
largest source term on the site. The spent fuel is stored in the SFP,
which uses water to cool the fuel. By letter dated September 26, 1997,
the licensee
[[Page 65617]]
submitted an analysis of the heatup characteristics of the spent fuel
in the absence of SFP water inventory. The analysis was based on
storing the fuel in a configuration consistent with the analysis. By
letter dated December 18, 1997, the licensee stated that, as of October
23, 1997, the spent fuel assemblies had been rearranged within the SFP
to comply with the configuration used for the heat-up analysis. The
licensee concluded that air cooling of the fuel would be sufficient to
maintain the integrity of the fuel cladding and that rapid zircaloy
oxidation is no longer possible. The staff independently evaluated the
licensee's conclusion and found it acceptable. The staff concluded that
the cost of recovering from a loss of SFP water would be bounded by
other accidents that may occur at a permanently defueled site.
In SECY 96-256, ``Changes to the Financial Protection Requirements
for Permanently Shutdown Nuclear Power Reactors, 10 CFR 50.54(w) and 10
CFR 140.11,'' dated December 17, 1996, the staff estimated the onsite
cleanup costs of accidents considered to be the most costly at a
permanently defueled site with spent fuel stored in the SFP. The staff
found that the onsite recovery costs for a fuel handling accident could
range up to $24 million. The estimated onsite cleanup costs to recover
from the rupture of a large liquid radwaste storage tank could range up
to $50 million. The licensee's proposed level of $50 million for onsite
property insurance is sufficient to cover these estimated cleanup
costs.
The offsite cleanup costs of the accident scenarios discussed above
are estimated to be negligible in SECY 96-256. However, a licensee's
liability for offsite costs may be significant due to lawsuits alleging
damages from offsite releases. Experience at Three Mile Island Unit 2
showed that significant judgments against a licensee can result despite
negligible dose consequences from an offsite release. An appropriate
level of financial liability coverage is needed to account for
potential judgments and settlements and to protect the Federal
Government from indemnity claims. The licensee's proposed level of $100
million in primary offsite liability coverage is sufficient for this
purpose.
The staff has determined that participation in the secondary
insurance pool for offsite financial protection is not required for a
permanently shut down and defueled plant after the time that air
cooling of the spent fuel is sufficient to maintain the integrity of
the fuel cladding. As noted above, the staff finds that sufficient time
has elapsed to ensure the integrity of the HNP spent fuel cladding.
IV
The NRC staff has completed its review of the licensee's request to
reduce financial protection limits to $50 million for onsite property
insurance and $100 million for offsite liability insurance. On the
basis of its review, the NRC staff finds that the spent fuel stored in
HNP's SFP is no longer susceptible to rapid Zircaloy oxidation. The
requested reductions are consistent with SECY-96-256, ``Changes to the
Financial Protection Requirements for Permanently Shutdown Nuclear
Power Reactors, 10 CFR 50.54(w) and 10 CFR 140.11,'' dated December 17,
1996. The Commission informed the staff by a staff requirements memo
dated January 28, 1997, that it did not object to the insurance
reductions recommended in SECY 96-256. The licensee's proposed
financial protection limits will provide sufficient insurance to
recover from limiting hypothetical events, if they occur. Thus, the
underlying purposes of the regulations will not be adversely affected
by the reductions in insurance coverage.
Accordingly, the Commission has determined that, pursuant to 10 CFR
50.12(a), an exemption to reduce onsite property insurance to $50
million is authorized by law, will not present an undue risk to the
public health and safety, and is consistent with the common defense and
security. Further, special circumstances are present, as set forth in
10 CFR 50.12(a)(2)(ii). Therefore the Commission hereby grants an
exemption from the requirement of 10 CFR 50.54(w).
In addition, the Commission has determined that, pursuant to 10 CFR
140.8, an exemption to reduce primary offsite liability insurance to
$100 million, accompanied by withdrawal from the secondary insurance
pool for offsite liability insurance, is authorized by law and is in
the public interest. Therefore, the Commission hereby grants an
exemption from the requirements of 10 CFR 140.11(a)(4).
Pursuant to 10 CFR 51.32, the Commission has determined that the
granting of these exemptions will not have a significant effect on the
quality of the human environment (63 FR 50929).
These exemptions are effective upon issuance.
Dated at Rockville, Maryland, this 19th day of November 1998.
For the Nuclear Regulatory Commission.
Roy P. Zimmerman,
Acting Director, Office of Nuclear Reactor Regulation.
[FR Doc. 98-31643 Filed 11-25-98; 8:45 am]
BILLING CODE 7590-01-P
