Tag: LLC

NRC Approves License Transfer for Vermont Yankee

Posted on by MidwestCompact

On October 12, 2018, the U.S. Nuclear Regulatory Commission (NRC) announced that the agency has issued an Order approving the transfer of the operating license for the Vermont Yankee nuclear power plant from Entergy Nuclear Operations, Inc. (Entergy) to NorthStar Nuclear Decommissioning Company, LLC (NorthStar NDC).

Entergy requested the transfer to NorthStar NDC to decommission the plant, which ceased operations in December 2014.

Overview

Based on its review, the NRC confirmed that NorthStar NDC met the regulatory, legal, technical and financial requirements necessary to qualify them as a licensee.  The NRC also determined that the transfer is consistent with law and NRC regulations, as well as that the transfer can be conducted without endangering the health and safety of the public and will not be inimical to the common defense and security.

The NRC Order approving the transfer was issued on October 11, 2018.  The Order and other documents related to the license transfer review are available in the NRC’s ADAMS online database at ML18242A638.

Conditions

Based on the staff’s review, NRC approved the application for transfer of the licenses for the Vermont Yankee nuclear power plant subject to the following conditions:

  • prior to the closing of the license transfer, NorthStar NDC and NorthStar Vermont Yankee, LLC (NorthStar VY) shall provide the Directors of NRC’s Office of Nuclear Material Safety and Safeguards (NMSS) and Office of Nuclear Reactor Regulation (NRR) satisfactory documentary evidence that they have obtained the appropriate amount of insurance required of a licensee under 10 CFR 140.11(a)(4) and 10 CFR 50.54(w) of the Commission’s regulations, consistent with the exemptions issued to Vermont Yankee on April 15, 2016;
  • NorthStar VY and NorthStar NDC shall take no action to cause NorthStar Group Services, Inc. to void, cancel or modify the $140 million support agreement to provide funding for Vermont Yankee as represented in the application without prior written consent of the NRR Director; and,
  • NorthStar VY shall obtain a performance bond if a settlement agreement with the U.S. Department of Energy (DOE) on federal reimbursements for spent fuel management expenses is not entered into by January 1, 2022.

The performance bond will be effective January 1, 2022 initially in the amount of $4.3 million and it will be renewed annually.  This amount covers the annual amount of Independent Spent Fuel Storage Installation (ISFSI) operation and maintenance costs projected for 2022-2024.  If a settlement is not reached by January 1, 2024, this amount will be increased to $9.3 million, which covers the annual amount of ISFSI operation and maintenance costs projected for years after 2024.

Background

The plant is currently owned by Entergy Nuclear Vermont Yankee (Entergy VY) and operated by Entergy Nuclear Operations (Entergy NO), both of which are listed on the license.  Entergy and NorthStar NDC requested the license transfer by letter dated February 9, 2017.  According to the request, the new owner will be NorthStar VY and the operator in charge of dismantling the plant will be NorthStar NDC.  The transfer includes the plant’s dry cask spent nuclear fuel storage facility.

In particular, the applicants requested the NRC consent to the direct transfer of Entergy NO’s currently licensed authority (licensed operator for decommissioning) to NorthStar NDC.  In addition, the applicants requested the indirect transfer of control (ownership) of Entergy VY’s facility licenses to NorthStar Decommissioning Holdings, LLC (NorthStar DH) and its parents NorthStar Group Services, Inc. (NorthStar GS), LVI Parent Corp. (LVI) and NorthStar Group Holdings, LLC ( NorthStar GH).

The applicants also requested that the NRC consent to the transfer of the licensed possession, maintenance and decommissioning authorities to NorthStar NDC in order to implement expedited decommissioning at Vermont Yankee.  In addition, the applicants requested approval of a conforming amendment to the license pursuant to Title 10 of the Code of Federal Regulations (10 CFR), Part 50.80, “Transfer of licenses,” and 10 CFR 50.90, “Application for amendment of license, construction permit, or early site permit.”

Notice of the application was published at 82 Federal Register 23,845 as dated on May 24, 2017.  The supplemental information letters contained clarifying information, did not expand the application beyond the scope of the original notice and did not affect the applicability of the NRC’s no significant hazards consideration determination.

For additional information, please contact David McIntyre of the U.S. Nuclear Regulatory Commission at (301) 415-8200.

Anne White Sworn in as Assistant Secretary for Environmental Management

Posted on by MidwestCompact

On March 29, 2018, Anne Marie White of Michigan was sworn in as Assistant Secretary for Environmental Management (EM) at the U.S. Department of Energy (DOE).

“As Assistant Secretary, White will provide leadership to continue the safe cleanup of the environmental legacy brought about from five decades of nuclear weapons development and government-sponsored nuclear energy research,” states the DOE press release announcing the swearing in.  “She will work closely with communities that have partnered with DOE and its predecessor agencies for many decades.”

“It is an honor to serve as Assistant Secretary of Energy for EM,” White said.  “I look forward to the challenges ahead and know that with the talented federal staff, our dedicated workers in the field, and the support of a wide array of stakeholders, we will deliver the EM mission safely and cost effectively.”

Overview

White is the founder of Bastet Technical Services, LLC — a consulting firm that has been engaged in providing strategic solutions to solve complex environmental challenges across the DOE complex.  She has more than 25 years of experience across a broad range of activities within the nuclear field, mainly focused on project and program management projects with complex technical, regulatory, and stakeholder challenges.

“She has industry-recognized credentials in technical skills that lead to sound, technically underpinned, cost effective solutions,” stated an earlier announcement.  “She has extensive hands on in the field experience at many of the Environmental Management sites for which she will have responsibility.”

White, who has supported a number of emerging nuclear power nations to develop legal and regulatory structures and national policies, received a Master’s Degree of Science in Nuclear Engineering from the University of Missouri-Columbia.

Background

On January 3, 2018, the White House announced President Donald J. Trump’s intent to nominate White to be the EM Assistant Secretary.  On March 22, 2018, White was confirmed for the position by voice vote of the U.S. Senate.

Since June 2017, James Owendoff has been serving as the Acting EM-1 Assistant Secretary.  In this role, Owendoff has focused on more timely decisions on cleanup projects.

The position was previously held by Monica Regalbuto at the end of the administration of former-President Barack Obama.

For additional information, please contact Douglas Tonkay, Director of the U.S. Department of Energy’s Office of Disposal, at (301) 903-7212 or at Douglas.Tonkay@em.doe.gov or go to www.energy.gov.

SCE&G to Cease New V.C. Summer Nuclear Project

Posted on by MidwestCompact

On July 31, 2017, South Carolina Electric & Gas Company (SCE&G) announced that it would cease construction of two new nuclear reactors at the V.C. Summer Nuclear Station in Jenkinsville, South Carolina.  SCE&G, which is a principal subsidiary of SCANA Corporation (SCANA), further announced that the company intends to promptly file a petition with the Public Service Commission of South Carolina seeking approval of its abandonment plan.

According to the company’s press release, this decision was reached by SCE&G after considering the additional costs to complete the new nuclear reactors, the uncertainty regarding the availability of production tax credits for the project and the amount of anticipated guaranty settlement payments from Toshiba Corporation (Toshiba).  SCE&G’s decision was also influenced by other matters associated with continuing construction including the decision of the co-owner of the project, the South Carolina Public Service Authority (Santee Cooper), the state owned electric utility, to suspend construction of the project.

Based on these factors, SCE&G concluded that it would not be in the best interest of its customers and other stakeholders to continue construction of the project.

Overview and Analysis  Following the bankruptcy filing of Westinghouse Electric Company, LLC (WEC), SCE&G and Santee Cooper each began a comprehensive process of evaluating the most prudent path forward for the new nuclear reactors.  The project owners worked with WEC and Fluor Corporation, as well as other technical and industry experts, to evaluate the project costs and schedules.

Based on this evaluation and analysis, SCE&G concluded that completion of both new nuclear reactors would be prohibitively expensive.  According to SCE&G’s analysis, the additional cost to complete both reactors beyond the amounts payable in connection with the engineering, procurement, and construction contract would materially exceed prior WEC estimates, as well as the anticipated guaranty settlement payments from Toshiba.  Moreover, in order to qualify for production tax credits under current tax rules, the new reactors would need to be online before January 1, 2021.  SCE&G’s analysis concluded that the new reactors could not be brought online until after this date.

SCE&G also considered the feasibility of completing the construction of Unit 2 and abandoning Unit 3 under the existing ownership structure and using natural gas generation to fulfill any remaining generation needs.  This option provided a potentially achievable path forward that may have delivered SCE&G a similar megawatt capacity as its 55% interest in the two reactors and provided a long-term hedge against carbon legislation/regulation and against gas price volatility.  SCE&G had not reached a final decision regarding this alternative when Santee Cooper determined that it would be unwilling to proceed with continued construction.  Consequently, SCE&G determined that it is not in the best interest of customers and other stakeholders for it to continue construction of one reactor.

Based on the evaluation and analysis, and Santee Cooper’s decision, SCE&G has concluded that the only remaining prudent course of action will be to abandon the construction of both Unit 2 and Unit 3 under the terms of the Base Load Review Act (BLRA).  Accordingly, normal construction activities at the site will cease immediately and efforts will be shifted toward an orderly transition of winding down and securing the project property.  SCE&G plans to use the anticipated payments resulting from the settlement of Toshiba’s guaranty to mitigate cost impacts to SCE&G electric customers.

Abandonment Proceeding  On August 1, 2017, SCE&G will fully brief the Public Service Commission of South Carolina and thereafter initiate the abandonment proceeding.  In accordance with the BLRA, SCE&G intends to seek an amortization of the project costs and a return at the weighted average cost of capital on the unamortized balance until fully recovered. SCE&G plans to use the anticipated proceeds from the Toshiba settlement and benefits derived from tax deductions to mitigate rate increases and lessen the impact on its customers for several years.

Background  SCANA Corporation—which is headquartered in Cayce, South Carolina—is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. The Company serves approximately 718,000 electric customers in South Carolina and approximately 1.3 million natural gas customers in South Carolina, North Carolina and Georgia.

SCE&G is a regulated public utility engaged in the generation, transmission, distribution and sale of electricity to approximately 718,000 customers in South Carolina.  The company also provides natural gas service to approximately 362,000 customers throughout the state.

Additional information about SCANA and its businesses is available on the Company’s website at www.scana.com.  Additional information about SCE&G is available at www.sceg.com.

Final EIS Issued for Proposed Northwest Medical Isotopes Facility

Posted on by MidwestCompact

On May 16, 2017, the U.S. Nuclear Regulatory Commission (NRC) published its final environmental impact statement on a medical radioisotope production facility proposed for Columbia, Missouri.  The study recommends that, barring the identification of any safety issues during the agency’s ongoing safety review, a construction permit be issued to Northwest Medical Isotopes, LLC.

Northwest submitted the application in February 2015 proposing to construct a facility to produce molybdenum-99 from low-enriched uranium.  Molybdenum-99 decays to technetium-99m, the most commonly used radioisotope in medicine.  Technetium-99m is used in 20 to 25 million diagnostic procedures around the world each year, such as bone and organ scans to detect cancer and cardiovascular imaging.  There are currently no molybdenum-99 production facilities in the United States, though the NRC has issued a construction permit to SHINE Medical Technologies to build one in Janesville, Wisconsin.

The environmental impact statement (NUREG-2209) documents the NRC staff’s environmental review of Northwest’s construction permit application.  The review examined the environmental impacts of constructing, operating and decommissioning the proposed facility, as well as the transportation of uranium targets to research reactors and their irradiation in those reactors.  It concludes that the environmental impacts would be small, with cumulative impacts on air quality and noise being small to moderate, and cumulative impacts on ecological resources being moderate.  None of the projected impacts would be significant enough to deny the construction permit.

The NRC published a draft environmental impact statement for public comment in November 2015.  Comments received were addressed in the final version.

For additional information, please contact Maureen Conley at (301) 415-8200.