Nuclear Decommissioning: What You Need to Know .2014-02-12 · Nuclear Decommissioning: What You

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  • Nuclear Decommissioning: What You Need to Know

    Brought to you by the Nuclear Energy Practice of Winston & Strawn LLP

    February 12, 2014

  • 2014 Winston & Strawn LLP 2

    Todays eLunch Presenters

    Bill Horin Energy

    Washington, DC

    whorin@winston.com

    David Repka Energy

    Washington, DC

    drepka@winston.com

    Tyson Smith Energy

    San Francisco

    trsmith@winston.com

    mailto:whorin@winston.commailto:drepka@winston.commailto:trsmith@winston.com

  • 2014 Winston & Strawn LLP 3

    Update on Recent/Upcoming Plant Closures Overview of Decommissioning Process Current Topics in Decommissioning

    Agenda

  • Overview of Recent and Planned Plant Closures

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    Decommissioning must be completed within 60 years of permanent cessation of operations

    Licensees may choose from three alternative decommissioning strategies: DECON (immediate dismantling) SAFSTOR (deferred dismantling)

    Facility maintained and monitored in a condition that allows the radioactivity to decay Dismantled and decontaminated at a later date

    ENTOMB Radioactive contaminants permanently encased on site in structurally sound material Maintained and monitored until the radioactivity decays to a level permitting restricted

    release of the property To date, no NRC-licensed facilities have requested this option

    A licensee may combine DECON and SAFSTOR based on a range of factors, such as economics, rate of radioactive decay, and availability of disposal sites

    Decommissioning Basics

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    Reactor Location Shutdown Status Fuel Onsite? Big Rock Point Charlevoix, MI 08/29/97 ISFSI Only Yes Fort St. Vrain Platteville, CO 08/18/89 ISFSI Only Yes Haddam Neck Haddam Neck, CT 12/09/96 ISFSI Only Yes Maine Yankee Bath, ME 12/06/96 ISFSI Only Yes Pathfinder Sioux Falls, SD 09/16/67 License Terminated No Rancho Seco Sacramento, CA 06/07/89 ISFSI Only Yes Saxton Saxton, PA 05/01/72 License Terminated No Shoreham Suffolk Co., NY 06/28/89 License Terminated No Trojan Portland, OR 11/09/92 ISFSI Only Yes Yankee Rowe Franklin Co., MA 10/01/91 ISFSI Only Yes

    Decommissioned Reactors

    An independent spent fuel storage installation (ISFSI) is a stand-alone facility within the plant boundary constructed for the interim dry storage of spent nuclear fuel

    ISFSI Only means the plant license has been reduced to include only the spent fuel storage facility

  • 2014 Winston & Strawn LLP 7

    Completed Decommissioning

    Maine Yankee (www.courant.com)

    Yankee Rowe Before and After (www.yankeerowe.com)

    Trojan (www.tdn.com)

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    Name Location Crystal River Unit 3 Crystal River, FL

    Dresden Unit 1 Dresden, IL

    Fermi Unit 1 Newport, MI

    General Electric Co. Alameda, CA

    Humboldt Bay Eureka, CA

    Indian Point Unit 1 Buchanan, NY

    Kewaunee Kewaunee, WI

    LaCrosse Boiling Water Reactor Genoa, WI

    Millstone Unit 1 Waterford, CT

    Nuclear Ship Savannah Baltimore, MD

    Peach Bottom Unit 1 Delta, PA

    San Onofre Unit 1 San Clemente, CA

    San Onofre Unit 2 San Clemente, CA

    San Onofre Unit 3 San Clemente, CA

    Three Mile Island Unit 2 Middletown, PA

    Vallecitos Boiling Water Reactor Sunol, CA

    Zion Units 1 & 2 Zion, IL

    Reactors Undergoing Decommissioning

    Source: www.nrc.gov

    http://www.nrc.gov/

  • 2014 Winston & Strawn LLP 9

    Crystal River Kewaunee San Onofre 2 and 3 Vermont Yankee (2014) Oyster Creek (2019)

    Current and Future Decommissionings

    Reasons for Closure Vary Economics of Single-Unit Plants Market Factors Regulatory Uncertainty Environmental Issues

    More Announcements Possible

  • Overview of Decommissioning Process

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    Licensees must provide assurance that funds will be available to decommission a reactor and site at end of licensed operations

    NRC decommissioning refers only to radiological decommissioning: reduce residual radioactivity to permit site release

    Licensees must demonstrate financial assurance for decommissioning by: Prepayment: a deposit by the licensee at the start of operation in a separate

    account such as a trust fund Surety, insurance, or parent company guarantee method: assurance that the

    cost of decommissioning will be paid by another party should the licensee default External sinking fund: separate account outside the licensees control to

    accumulate funds over time: if the licensee can recover the cost of decommissioning through ratemaking or non-bypassable charges

    Nuclear Decommissioning Trust (NDT) Combination of above methods

    Prior to Decommissioning (During Operations)

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    NRC decommissioning trust funds may be used only if the expenditure is for: Legitimate radiological decommissioning activities as defined in 10 C.F.R. 50.2

    Funds may be maintained in qualified decommissioning trusts for non-NRC decommissioning activities if collected for those purposes and separately accounted for:

    Greenfield site restoration, ISFSI decommissioning, and spent fuel management Greenfield expenditures are subject only to requirements of the trusts and/or

    State regulators (not NRC)

    Scope of NRC Decommissioning

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    Within 30 days of a decision to permanently cease operations, a licensee must submit a certification to the NRC stating the date on which operations have ceased or will cease

    Once fuel is permanently removed, a licensee must file with the NRC a certification of permanent fuel removal

    Specifies the date on which the fuel was removed License for the plant deemed to no longer authorize operation

    After certifications: Licensee may submit, and NRC must approve, amendments or exemptions to change or reduce requirements that are no longer necessary:

    Security Emergency planning Offsite liability insurance Recordkeeping requirements

    Early Phases of Decommissioning

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    Within 2 years of permanent cessation of operations, a licensee must: Submit a Post-Shutdown Decommissioning Activities Report (PSDAR),

    describing planned decommissioning activities and schedule Submit a Site-Specific Decommissioning Cost Estimate (which may be

    together with or separate from the PSDAR) Submit a Spent Fuel Management Plan, including funding until the fuel is

    removed from the site by the Department of Energy NRC will notice receipt of the PSDAR in the Federal Register and make the

    PSDAR available for public comment NRC will hold a public meeting near the licensees facility to discuss the PSDAR NRC does not approve the PSDAR

    Initially, NDT may be accessed for up to 3% of the generic decommissioning formula funding amount

    Used only for decommissioning planning

    Intermediate Phase

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    90 days after the PSDAR has been received by the NRC, a licensee may (but is not required to) perform major decommissioning activities

    A major decommissioning activity is any activity that results in permanent removal of major radioactive components, permanently modifies the structure of the containment, or results in dismantling components for shipment containing greater than class C waste

    A licensee may take actions permitted by 10 C.F.R. 50.59, but must notify the NRC before performing any decommissioning activity inconsistent with the actions and schedule described in the PSDAR

    A licensee may not perform decommissioning activities that: Foreclose release of the site for 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

    Conduct of Decommissioning Activities

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    Licensee must submit annual report on the status of its trust fund during decommissioning

    90 days after submitting the PSDAR, up to an additional 20% of the generic decommissioning funding amount may be used for decommissioning

    Once a site-specific decommissioning cost estimate has been submitted to the NRC, licensee may begin using balance of decommissioning funds for authorized radiological decommissioning activities

    May be before or with PSDAR (bypassing the 23% limit) Written notice of intent to make disbursement or payment for non-radiological

    decommissioning must be given to NRC 30 working days before planned disbursement

    Nuclear Decommissioning Trust Expenditures

  • 2014 Winston & Strawn LLP 17

    NRC Decommissioning Regulatory Timeline (example)

    Shutdown Decision 3% formula

    amount available for Decom planning

    SD + 30 days

    Notice to NRC

    ?

    Defueling Complete Certification to NRC of Defueling: License no

    longer authorizes operation Begin

    applications to reduce programs/

    requirements

    T=0

    Cessation of Operations

    T + 2 years

    PSDAR : Prelim

    Plans + site-specific cost info, including SNF management

    Site Specific

    Decom Cost Estimate: 100% Decom funding available 50.54(bb) Plan

    for SNF: management and costs (if early shutdown)

    P=0

    P + 90 days