united states nuclear regulatory …surety bond shall be subject to or be consistent with the...

UNITED STATES NUCLEAR REGULATORY COMMISSION

WASHINGTON, D.C. 20555-0001

Vice President, Operations Entergy Nuclear Operations, Inc. Indian Point Energy Center 450 Broadway, GSB P.O. Box 249 Buchanan, NY 10511-0249

Marc~1 21, 2019

SUBJECT: INDIAN POINT NUCLEAR GENERATING UNIT NOS. 1 AND 2 - ISSUANCE OF AMENDMENT NO. 61 AND NO. 289 RE: DELETION OF FACILITY OPERATING LICENSE CONDITIONS RELATED TO DECOMMISSIONING TRUST PROVISIONS (EPID L-2018-LLA-0180)

Dear Sir or Madam:

The U.S. Nuclear Regulatory Commission (the Commission) has issued the enclosed Amendment No. 61 to Provisional Operating License No. DPR-5 for Indian Point Nuclear Generating Unit No. 1 (Indian Point 1) and Amendment No. 289 to Renewed Facility Operating License No. DPR-26 for Indian Point Nuclear Generating Unit No. 2 (Indian Point 2), in response to your application dated June 20, 2018.

The amendments delete certain license conditions from the Indian Point 1 and Indian Point 2 Operating Licenses that impose specific requirements on the decommissioning trust fund agreement. The provisions of Title 10 of the Code of Federal Regulations Section 50. 75(h) that specify the regulatory requirements for decommissioning trust funds will apply to the licensee, Entergy Nuclear Operations, Inc., for Indian Point 1 and Indian Point 2.

A copy of the related Safety Evaluation is also enclosed. Notice of Issuance will be included in the Commission's biweekly Federal Register notice.

Docket Nos. 50-003 and 50-247

Enclosures: 1. Amendment No. 61 to DPR-5 2. Amendment No. 289 to DPR-26 3. Safety Evaluation

cc: Listserv

Sincerely, ,.-

o~ U~ -tv I

Richard V. Guzman, Senior Project Manager Plant Licensing Branch I Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation



ENTERGY NUCLEAR INDIAN POINT 2, LLC

ENTERGY NUCLEAR OPERATIONS, INC.

DOCKET NO. 50-003

INDIAN POINT NUCLEAR GENERATING UNIT NO. 1

AMENDMENT TO PROVISIONAL OPERATING LICENSE

Amendment No. 61 License No. DPR-5

1. The U.S. Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment by Entergy Nuclear Operations, Inc. (the licensee) dated June 20, 2018, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act). and the Commission's rules and regulations set forth in 10 CFR Chapter I;

B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission;

C. There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations;

D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and

E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

Enclosure 1

- 2 -

2. Accordingly, the license is hereby amended by changes to paragraphs 6 and 7 of Provisional Operating License No. DPR-5.

3. This license amendment is effective as of the date of its issuance and shall be implemented within 60 days.

Attachment: Changes to the Provisional Operating

License

Date of Issuance: March 21, 201 9

FOR THE NUCLEAR REGULATORY COMMISSION

,~ti~ I Bruce A. Watson, Chief

Reactor Decommissioning Branch Division of Decommissioning, Uranium Recovery

and Waste Program Office of Nuclear Material Safety and Safeguards

ATTACHMENT TO LICENSE AMENDMENT NO. 61


PROVISIONAL OPERA TING LICENSE NO. DPR-5

DOCKET NO. 50-003

Replace the following pages of the Provisional Operating License with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the area of change.

Remove Page 5 6 7

Insert Page 5 6 7

Enclosure 1

-5-

o) An instrument system, including detectors, transmitters, amplifiers, receivers and controllers, panel boards and necessary circuitry to control the reactor and associated systems.

p) A radiation monitoring system, including detectors and measuring devices.

q) Secondary coolant system.

r) Auxiliary steam system.

s) Condensate and make-up water storage facilities.

t) Circulating system.

u) Component drain system.

v) Sampling system.

w) Electrical system excluding transmission lines and the Buchanan substation to the extent that they are not covered in the Technical Specifications.

6. On the closing date. of the transfer of the license, Con Edison shall transfer to ENIP2 all of the accumulated decommissioning trust funds for Indian Point Nuclear Generating Unit No.1 (IP1) and such additional funds to be deposited in the decommissioning trusts for IP1 such that the total amount transferred for IP1 and Indian Point Nuclear Generating Unit No. 2 (IP2) is no less than $430,000,000. Furthermore, ENIP2 shall either (a) establish a provisional trust for decommissioning funding assurance for IP1 and IP2 in an amount no less than $25,000,000 (to be updated as required under applicable NRC regulations, unless otherwise approved by the NRC) or {b) obtain a surety bond for an amount no less than $25,000,000 (to be updated as required under applicable NRC regulations, unless otherwise approved by the NRC). The total decommissioning funding assurance provided for IP1 by the combination of the decommissioning trust and the provisional trust or surety bond at the time of transfer of the licenses shall be at a level no less than the amounts calculated pursuant to, and required under, 10 CFR 50.75. The provisional trust and surety bond shall be subject to or be consistent with the following requirements, as applicable:

(a) Deleted

(b) Provisional Trust

(i) The provisional trust agreement must be in a form acceptable to the NRC.

(ii) Investments in the securities or other obligations of Entergy Corporation or its affiliates, subsidiaries, successors, or assigns are and shall be prohibited. Except for investments tied to market indexes or other non-nuclear-sector mutual funds, investments in any entity owning one or more nuclear power plants are and shall be prohibited.

Amendment No. 61

-6-

(iii) The provisional trust agreement must provide that no disbursements or payments from the trust, other than for ordinary administrative expenses, shall be made by the trustee unless the trustee has first given the Director of the Office of Nuclear Reactor Regulation 30 days prior written notice of payment. The provisional trust agreement shall further contain a provision that no disbursements or payments from the trust shall be made if the trustee receives prior written notice of objection from the NRC.

(iv) The provisional trust agreement must provide that the agreement cannot be amended in any material respect, or terminated, without 30 days prior written notification to the Director of the Office of Nuclear Reactor Regulation.

(v) The appropriate section of the provisional trust agreement shall state that the trustee, investment advisor, or anyone else directing the investments made in the trust shall adhere to a "prudent investor" standard, as specified in 18 CFR 35.32(a)(3) of the Federal Energy Regulatory Commission's regulations.

(vi) Use of assets in the provisional trust, in the first instance, shall be limited to the expenses related to decommissioning IP1 or IP2 as defined by the NRC in its regulations and issuances, and as provided in this license and any amendments thereto.

( c) Surety Bond

(i) The surety bond agreement must be in a form acceptable to the NRC and be in accordance with all applicable NRC regulations.

(ii) The surety company providing any surety bond obtained to comply with the requirements of the Order approving the transfer shall be one of those listed by the U.S. Department of the Treasury in the most recent edition of Circular 570 and shall have a coverage limit sufficient to cover the amount of the surety bond.

(iii) ENIP2 shall establish a standby trust to receive funds from the surety bond, if a surety bond is obtained, in the event that ENIP2 defaults on its funding obligations for the decommissioning of IP1. The standby trust agreement must be in a form acceptable to the NRC, and shall conform with all conditions otherwise applicable to the decommissioning trust agreement, and with all conditions that would be applicable to the provisional trust above, if established.

(iv) The surety agreement must provide that the agreement cannot be amended in any material respect, or terminated, without 30 days prior written notification to the Director of the Office of Nuclear Reactor Regulation.

7. Deleted

Amendment No. 61

-7-

8. ENIP2 and ENO shall take no action to cause Entergy Global Investments, Inc., or Entergy International Ltd. LLC or their parent companies to void, cancel, or modify the $55 million contingency commitment to provide funding for the IP1 and IP2 plants as represented in the application without the prior written consent of the Director of the Office of Nuclear Reactor Regulation.

9. The approved Decommissioning Plan supplements the Final Safety Analysis Report (FSAR) and the licensee may (i) make changes in the facility or procedures as described in the FSAR or the Decommissioning Plan and (ii) conduct tests, or experiments not described in the FSAR or Decommissioning Plan, without prior Commission approval, provided the requirements of 10 CFR 50.59 and 10 CFR 50.82(a)(6) and (7) are satisfied.

10. The amended license is effective as of the date of issuance, shall be implemented within 30 days, and shall expire at midnight, September 28, 2013.

Date of Issuance: October 29, 1965

FOR THE ATOMIC ENERGY COMMISSION

Original signed by E.G. Case

R.L. Doan, Director Division of Reactor Licensing

Amendment No. 61



ENTERGY NUCLEAR INDIAN POINT 2, LLC

AND ENTERGY NUCLEAR OPERATIONS, INC.

DOCKET NO. 50-247


AMENDMENT TO RENEWED FACILITY OPERATING LICENSE

Amendment No. 289 License No. DPR-26

1. The U.S. Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment by Entergy Nuclear Operations, Inc. (the licensee) dated June 20, 2018, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act). and the Commission's rules and regulations set forth in 10 CFR Chapter I;

B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission;

C. There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations;

D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and

E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

Enclosure 2

- 2 -

2. Accordingly, the license is amended by changes to the paragraphs 3 and 4 of Renewed Facility Operating License No. DPR-26.

3. This license amendment is effective as of the date of its issuance and shall be implemented within 60 days.

Attachment: Changes to the Renewed Facility

Operating License

Date of Issuance: March 21 , 2 O 1 9

FOR THE NUCLEAR REGULATORY COMMISSION ~\

(J~~--Jaml G: Danna, Chief Plant Licensing Branch I Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

ATTACHMENT TO LICENSE AMENDMENT NO. 289


RENEWED FACILITY OPERATING LICENSE NO. DPR-26

DOCKET NO. 50-247

Replace the following pages of the Renewed Facility Operating License with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the area of change.

Remove Page 7 8 9

Insert Page 7 8 9

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a. The licensee shall implement those new programs and enhancements to existing programs no later than the date specified in the License Renewal UFSAR Supplement.

b. The licensee shall complete those activities no later than the date specified in the License Renewal UFSAR Supplement.

c. The licensee shall notify the NRC in writing within 30 days after having accomplished item (2)a above and include the status of those activities that have been or remain to be completed in item (2)b above.

3. On the closing date of the transfer of the license, Con Edison shall transfer to ENIP2 all of the accumulated decommissioning trust funds for IP2 and such additional funds to be deposited in the decommissioning trust for IP2 such that the total amount transferred for Indian Point Nuclear Generating Unit No. 1 (IP1) and IP2 is no less than $430,000,000. Furthermore, ENIP2 shall either (a) establish a provisional trust for decommissioning funding assurance for IP1 and IP2 in an amount no less than $25,000,000 (to be updated as required under applicable NRC regulations, unless otherwise approved by the NRC) or (b) obtain a surety bond for an amount no less than $25,000,000 (to be updated as required under applicable NRC regulations, unless otherwise approved by the NRC). The total decommissioning funding assurance provided for IP2 by the combination of the decommissioning trust and the provisional trust or surety bond at the time of transfer of the licenses shall be at a level no less than the amounts calculated pursuant to, and required under, 10 CFR 50.75. The provisional trust and surety bond shall be subject to or be consistent with the following requirements, as applicable:

(a) Deleted

(b) Provisional Trust:

(i) The provisional trust agreement must be in a form acceptable to the NRC.

(ii) Investments in the securities or other obligations of Entergy Corporation or its affiliates, subsidiaries, successors, or assigns are and shall be prohibited. Except for investments tied to market indexes or other non-nuclear-sector mutual funds, investments in any entity owning one or more nuclear power plants are and shall be prohibited.

(iii) The provisional trust agreement must provide that no disbursements or payments from the trust, other than for ordinary administrative expenses, shall be made by the trustee unless the trustee has first given the Director of the Office of Nuclear Reactor Regulation 30 days prior written notice of payment. The provisional trust agreement shall further contain a provision that no disbursements or payments from the trust shall be made if the trustee receives prior written notice of objection from the NRC.

(iv) The provisional trust agreement must provide that the agreement cannot be amended in any material respect, or terminated, without 30 days prior written notification to the Director of the Office of Nuclear Reactor Regulation.

Amendment No. 289

- 8 -

(v} The appropriate section of the provisional trust agreement shall state that the trustee, investment advisor, or anyone else directing the investments made in the trust shall adhere to a "prudent investor" standard, as specified in 18 CFR 35.32(a)(3) of the Federal Energy Regulatory Commission's regulations.

(vi) Use of assets in the provisional trust, in the first instance, shall be limited to the expenses related to decommissioning IP2 or IP1 as defined by the NRC in its regulations and issuances, and as provided in this license and any amendments thereto.

(c) Surety Bond

(i) The surety bond agreement must be in a form acceptable to the NRC and be in accordance with all applicable NRC regulations.

(ii) The surety company providing any surety bond obtained to comply with the requirements of the Order approving the transfer shall be one of those listed by the U.S. Department of the Treasury in the most recent edition of Circular 570 and shall have a coverage limit sufficient to cover the amount of the surety bond.

(iii) ENIP2 shall establish a standby trust to receive funds from the surety bond, if a surety bond is obtained, in the event that ENIP2 defaults on its funding obligations for the decommissioning of IP2. The standby trust agreement must be in a form accept~ble to the NRC, and shall conform with all conditions otherwise applicable to the decommissioning trust agreement, and with all conditions that would be applicable to the provisional trust above, if established.

(iv) The surety agreement must provide that the agreement cannot be amended in any material respect, or terminated, without 30 days prior written notification to the Director of the Office of Nuclear Reactor Regulation.

4. Deleted

5. ENIP2 and ENO shall take no action to cause Entergy Global Investments, Inc., or Entergy International Ltd. LLC or their parent companies to void, cancel, or modify the $55 million contingency commitment to provide funding for the IP1 and IP2 plants as represented in the application without the prior written consent of the Director of the Office of Nuclear Reactor Regulation.

Amendment No. 289

- 9 -

6. This renewed license is effective as of the date of issuance, and shall expire at midnight April 30, 2024.

FOR THE NUCLEAR REGULATORY COMMISSION

IRA/

Ho K. Nieh, Director Office of Nuclear Reactor Regulation

Attachments: Appendix A - Technical Specifications Appendix B - Environmental Technical Specification Requirements Appendix C - Inter-Unit Fuel Transfer Technical Specifications

Date of Issuance: September 17, 2018

Amendment No. 289


WASHINGTON, O.C. 20555-0001

SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION

RELATED TO AMENDMENT NO. 61 TO PROVISIONAL OPERATING LICENSE NO. DPR-5

AND AMENDMENT NO. 289 TO RENEWED FACILITY OPERATING LICENSE NO. DPR-26

ENTERGY NUCLEAR INDIAN POINT 21 LLC

AND ENTERGY NUCLEAR OPERATIONS. INC.

DOCKET NOS. 50-003 AND 50-247

1.0 INTRODUCTION

By letter dated June 20, 2018 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML 18179A173), Entergy Nuclear Operations, Inc. (Entergy, the licensee), requested changes to Provisional Operating License (OL) No. DPR-5 for Indian Point Nuclear Generating Unit No. 1 (Indian Point 1) and to Renewed Facility OL No. DPR-26 for Indian Point Nuclear Generating Unit No. 2 (Indian Point 2). The licensee requested to delete certain license conditions from the Indian Point 1 and Indian Point 2 OLs that impose specific requirements on the decommissioning trust fund agreement. Upon approval of these amendments, the provisions of Title 10 of the Code of Federal Regulations ( 10 CFR) Section 50.75(h) that specify the regulatory requirements for decommissioning trust funds will apply to Entergy for Indian Point 1 and Indian Point 2.

2.0 REGULATORY EVALUATION

On August 27, 2001, the U.S. Nuclear Regulatory Commission (NRC, the Commission)) issued an Order and safety evaluation that approved the transfer of the Indian Point 1 and Indian Point 2 OLs from Consolidated Edison Company of New York, Inc. to Entergy and Entergy Nuclear Indian Point 2, LLC (ENIP2) (ADAMS Accession No. ML012250459). Additionally, on September 6, 2001, the NRC issued conforming amendments to the Indian Point 1 and Indian Point 2 OLs regarding the subject license transfers (ADAMS Accession No. ML012490190).

On December 24, 2002, the NRC issued a final rule promulgating new regulatory provisions at 10 CFR 50.75(h)(1 )-(4) that govern financial assurance mechanisms for licensees that are not "electric utilities."1 The provisions in 10 CFR 50. 75(h)(1 )-(3) include similar decommissioning

1 The term "electric utility" is defined in 10 CFR 50.2, "Definitions," as "any entity that generates or distributes electricity and which recovers the cost of this electricity, either directly or indirectly, through rates established by the entity itself or by a separate regulatory authority. Investor-owned utilities, including generation or distribution subsidiaries, public utility districts, municipalities, rural electric cooperatives, and State and Federal agencies, including associations of any of the foregoing, are included within the meaning of 'electric utility."'

Enclosure 3

- 2 -

trust requirements as those found in Indian Point 1 Provisional OL License Conditions 6 and 7, and Indian Point 2 Renewed Facility OL License Conditions 3 and 4. The NRC established these requirements stating that, "The NRC has always believed that it is preferable and more efficient to adopt standard rules, as opposed to applying specific license conditions on a case-by-case basis" (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78332, 78334 (December 24, 2002)). In the rulemaking, the NRC also addressed several comments regarding potential conflicts or inconsistencies between the provisions of 10 CFR 50.75(h)(1)-(3) and a licensee's existing decommissioning trust agreement-related license conditions. The NRC explained that "licensees will have the option of maintaining their existing license conditions or submitting to the new requirements" and "will be able to decide for themselves whether they prefer to keep or eliminate their specific license conditions" (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78335, 78339 (December 24, 2002)).

After the promulgation of 10 CFR 50.75(h)(1 )-(4), the NRC received a comment that the rule language did not sufficiently reflect the NRC's intent that individual licensees should have the option of retaining their existing license conditions. In response, on November 20, 2003, the NRC promulgated 10 CFR 50.75(h)(5), which provided, explicitly, that licensees could either retain their existing facility-specific decommissioning trust agreement license conditions or eliminate them, in favor of complying with the generic decommissioning trust agreement regulatory requirements (Minor Changes to Decommissioning Trust Fund Provisions, Direct Final Rule, 68 FR 65386 (November 20, 2003)). Specifically, 10 CFR 50.75(h)(5) states:

The provisions of paragraphs (h)(1) through (h)(3) of this section do not apply to any licensee that as of December 24, 2003, has existing license conditions relating to decommissioning trust agreements, so long as the licensee does not elect to amend those license conditions. If a licensee with existing license conditions relating to decommissioning trust agreements elects to amend those conditions, the license amendment shall be in accordance with the provisions of paragraph (h) of this section.

Consistent with 1 O CFR 50. 75(h)(5), Entergy has elected to submit to the requirements of 1 O CFR 50. 75(h) by requesting deletion of those license conditions that are currently incorporated in the Indian Point 1 and Indian Point 2 OLs, but addressed in 10 CFR 50.75(h). As indicated in the licensee's application, 10 CFR 50.75(h) applies to Indian Point 1 and Indian Point 2 since Entergy is not an "electric utility" as defined in 10 CFR 50.2, and the Indian Point 1 and Indian Point 2 OLs have license conditions relating to decommissioning trust agreements that were established in 2002.

3.0 TECHNICAL EVALUATION

The NRC staff reviewed Entergy's application dated June, 20, 2018, and compared the proposed license condition deletions to the current regulations at 10 CFR 50.75(h). The NRC staff also used guidance, specifically, applicable parts of the Office of Nuclear Reactor Regulation Office Instruction LIC-107, Revision 2, "Procedures for Handling License Transfers," and NUREG-1577, Revision 1, "Standard Review Plan on Power Reactor Licensee Financial Qualifications and Decommissioning Funding Assurance," for this review. The proposed changes to License Conditions 6 and 7 for Indian Point 1, and License Conditions 3 and 4 for Indian Point 2 and their applicability to 10 CFR 50. 75 are described below.

- 3 -

3.1 Existing OL License Conditions Related to Decommissioning Trust Provisions

License Conditions 6.(a) and 7 of the Indian Point 1 Provisional OL and License Conditions 3.(a) and 4 of the Indian Point 2 Renewed Facility OL currently include the following requirements for the decommissioning trust funds:

Indian Point 1 OL License Condition 6 and Indian Point 2 OL License Condition 3

The decommissioning trust, provisional trust, and surety bond shall be subject to or be consistent with the following requirements, as applicable:

a. Decommissioning Trust

(i) The decommissioning trust agreement must be in a form acceptable to the NRC.

(ii) With respect to the decommissioning trust funds, investments in the securities or other obligations of Entergy Corporation, or its affiliates, successors, or assigns are and shall be prohibited. Except for investments tied to market indexes or other nonnuclear-sector mutual funds, investments in any entity owning one or more nuclear power plants are and shall be prohibited.

(iii) No contribution to the funds that consists of property other than liquid assets shall be permitted.

(iv) The decommissioning trust agreement must provide that no disbursements or payments from the trusts, other than for ordinary administrative expenses, shall be made by the trustee unless the trustee has first given the Director of the Office of Nuclear Reactor Regulation 30 days prior written notice of payment. The decommissioning trust agreement shall further contain a provision that no disbursements or payments from the trusts shall be made if the trustee receives prior written notice of objection from the NRC.

(v) The decommissioning trust agreement must provide that the agreement cannot be amended in any material respect without 30 days prior written notification to the Director of the Office of Nuclear Reactor Regulation.

(vi) The appropriate section of the decommissioning trust agreement shall state that the trustee, investment advisor, or anyone else directing the investments made in the trust shall adhere to a "prudent investor" $tandard, as specified in 18 CFR 35.32(a)(3) of the Federal Energy Regulatory Commission's regulations.

Indian Point 1 OL License Condition 7 and Indian Point 2 OL License Condition 4

ENIP2 shall take all necessary steps to ensure that the decommissioning trust[s] is [are] maintained in accordance with the application for approval of the transfer of the IP1 and IP2 licenses to ENIP2 and ENO and the requirements of the Order

3.2

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approving the transfer, and consistent with the safety evaluation supporting that Order.

Proposed Changes to the OLs

The licensee proposed to change the current Indian Point 1 Provisional OL License Conditions 6 and 7 and Indian Point 2 Renewed Facility OL License Conditions 3 and 4, as follows:

• Delete the word "decommissioning trust" from the last sentence of the Indian Point 1 and Indian Point 2 OL License Conditions 6 and 3, respectively (changes shown in bold):

The daeemmi&&iening trw&t, provisional trust, and surety bond shall be subject to or be consistent with the following requirements, as applicable:

• Replace the current Indian Point 1 Provisional OL License Condition 6.(a)(i)-(vi) and Indian Point 2 Renewed Facility OL License Condition 3.(a)(i)-(vi) with "Deleted" (changes shown in bold):

(a)(i)-(vi) Daeemmi&&iening lrwst Deleted

• Replace the current Indian Point 1 Provisional OL License Condition 7 and Indian Point 2 Renewed Facility OL License Condition 4 with "Deleted" (changes in bold):

iNIP2 shall tal<a all naea&&ary &tap& te answra that the daeemmi&siening trwst[s] i& [are] maintained in aeeerdanea with the applieatien fer appreval of the transfer ef the IP1 and IP2 lieansas te ENIP2 and iNO and the r&Cilwiramants of the Order appreving the transfer, and eensistant with the safety a•,alwatien swpperting that Order. Deleted

3.3 NRC Staff Technical Evaluation

License Conditions 6.(a)(i) and 3.(a)(i)

(i) The decommissioning trust agreement must be in a form acceptable to the NRC.

While the above wording is not explicitly stated in the revised regulations of 10 CFR 50. 75, this license condition is the basic focus of the subject Final Rule. (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78332 (December 24, 2002)). The NRC staff finds that this license condition is related to decommissioning trust agreements and is implicit in the regulations in 10 CFR 50.75(e) and (h); thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 1 O CFR 50. 75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 6.(a)(i) and 3.(a)(i) acceptable.

License Conditions 6.(a)(ii) and 3.(a)(ii)

(ii) With respect to the decommissioning trust funds, investments in the securities or other obligations of Entergy Corporation, or its affiliates,

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subsidiaries, successors, or assigns are and shall be prohibited. Except for investments tied to market indexes or other non-nuclear-sector mutual funds, investments in any entity owning one or more nuclear power plants are and shall be prohibited.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1)(i)(A). In addition, except for investments tied to market indexes or other non-nu.clear-sector mutual funds, investments in any entity owning one or more nuclear power plants are prohibited. The Final Rule contains additional NRC response and clarification for this regulation under "Comments on the Proposed Rule - 4.8. Restrictions on Funds, Investment in Nuclear Power Reactor Licensees." (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78336 (December 24, 2002)). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50. 75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 6.(a)(ii) and 3.(a)(ii) acceptable.

License Conditions 6.(a)(iii) and 3.(a)(iii)

(iii) No contribution to the funds that consists of property other than liquid assets shall be permitted.

The acceptable financial assurance methods and forms of payment are provided in the regulation at 10 CFR 50. 75( e ). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50. 75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 6.(a)(iii) and 3.(a)(iii) acceptable.

License Conditions 6.(a)(iv) and 3.(a){iv)

(iv) The decommissioning trust agreement must provide that no disbursements or payments from the trusts, other than for ordinary administrative expenses, shall be made by the trustee unless the trustee has first given the Director of the Office of Nuclear Reactor Regulation 30 days prior written notice of payment. The decommissioning trust agreement shall further contain a provision that no disbursements or payments from the trusts shall be made if the trustee receives prior written notice of objection from the NRC.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1 )(iv). The Final Rule contains additional NRC response and clarification for this regulation under "Comments on the Proposed Rule - 3. Notifications and Disbursements." (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78335-78336 (December 24, 2002)). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50.75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 6.(a)(iv) and 3.(a)(iv) acceptable.

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License Conditions 6.(a)(v) and 3.(a)(v)

(v) The decommissioning trust agreement must provide that the agreement cannot be amended in any material respect without 30 days prior written notification to the Director of the Office of Nuclear Reactor Regulation.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1 )(iii). The Final Rule contains additional NRC response and clarification for this regulation under "Comments on the Proposed Rule - 4.E. Modifications to Trusts." (NRC Final Rule for Decommissioning Trust Provisions, 67 FR 78338-78339 (December 24, 2002)). Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 10 CFR 50.75(h), consistent with 10 CFR 50.75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 6.(a)(v) and 3.(a)(v) acceptable.

License Conditions 6.(a)(vi) and 3.(a)(vi)

(vi) The appropriate section of the decommissioning trust agreement shall state that the trustee, investment advisor, or anyone else directing the investments made in the trust shall adhere to a "prudent investor" standard, as specified in 18 CFR 35.32(a)(3) of the Federal Energy Regulatory Commission's regulations.

This license condition is addressed in the Commission's regulations at 10 CFR 50.75(h)(1 )(i)(B). Per 50. 75(h)(1 )(i)(B), the trustee, manager, investment advisor, or other person directing investment of the funds is obligated at all times to adhere to a standard of care set forth in the trust, which either shall be the standard of care, whether in investing or otherwise, required by State or Federal law or one or more State or Federal regulatory agencies with jurisdiction over the trust funds, or, in the absence of any such standard of care, whether in investing or otherwise, that a prudent investor would use in the same circumstances. The term "prudent investor" shall have the same meaning as set forth in the Federal Energy Regulatory Commission's "Regulations Governing Nuclear Plant Decommissioning Trust Funds" at 18 CFR 35.32(a)(3), or any successor regulation. Based on this information, the NRC staff finds that this license condition is related to decommissioning trust agreements; thus, its deletion would result in the licensee instead being governed by the applicable provisions of 1 O CFR 50. 75(h), consistent with 1 O CFR 50. 75(h)(5). Therefore, the staff finds the licensee's request to delete License Conditions 6.(a)(vi) and 3.(a)(vi) acceptable.

License Conditions 6 and 3

Entergy proposed to delete the term "decommissioning trust" from the last sentence in paragraphs 6 and 3 of the Indian Point 1 and Indian Point 2 license conditions, respectively. The NRC staff considers this a conforming revision supporting the proposed deletion of the decommissioning trust requirements as discussed above. Therefore, the staff finds the licensee's proposed revision to paragraphs 6 and 3 of these license conditions acceptable.

License Conditions 7 and 4

Entergy also proposed to delete paragraphs 7 and 4 of the Indian Point 1 and Indian Point 2 license conditions, respectively. Specifically, the license conditions state:

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ENIP2 shall take all necessary steps to ensure that the decommissioning trust[s] is [are] maintained in accordance with the application for approval of the transfer of the IP1 and IP2 licenses to ENIP2 and ENO and the requirements of the Order approving the transfer, and consistent with the safety evaluation supporting that · Order.

Consistent with 10 CFR 50.75(h)(5), Entergy has requested deletion of the license conditions related to decommissioning trust agreements that were incorporated in the Indian Point 1 and Indian Point 2 OLs based on the NRC's approval of the license transfer to ENIP2 and ENO in the Order and safety evaluation dated August 27, 2001 (ADAMS Accession No. ML012250459). Upon deletion of these license conditions, the provisions of 10 CFR Section 50.75(h) that specify the regulatory requirements for decommissioning trust funds will apply to Entergy for Indian Point 1 and Indian Point 2. As noted above, the NRC promulgated 10 CFR 50.75(h)(5), which explicitly provided that licensees could either retain their existing facility-specific decommissioning trust agreement license conditions or eliminate them, in favor of complying with the generic decommissioning trust agreement regulatory requirements (Minor Changes to Decommissioning Trust Fund Provisions, Direct Final Rule, 68 FR 65386 (November 20, 2003)). Therefore, the staff finds the licensee's request to delete License Conditions 7 and 4 acceptable.

3.5 NRC Staff Technical Conclusion

License Conditions 6.(a) (i-vi) and 7 for Indian Point 1 and 3.(a) (i-vi) and 4 for Indian Point 2 relating to decommissioning trust agreements existed prior to December 24, 2003; therefore, the provisions of paragraphs 1 O CFR 50.75(h)(1) through (h)(3) did not apply to Entergy for Indian Point 1 and Indian Point 2. Entergy has elected to delete the license conditions, and therefore, it will be governed by the applicable provisions of 10 CFR 50.75(h). By allowing the deletion of these license conditions, Entergy will still be in compliance with the decommissioning trust fund requirements in 10 CFR 50.75(h). Based on the above, the NRC staff concludes that the license amendments are in accordance with the provisions of paragraph (h) of 10 CFR 50.75 and, therefore, the proposed changes are acceptable.

4.0 STATE CONSULTATION

In accordance with the Commission's regulations, the New York State official was notified of the proposed issuance of the amendments on February 22, 2019. The State official requested information related to the licensee's provisional trust fund that was referenced in the licensee's license amendment request dated June 20, 2018. In response, the NRC staff provided the State official with a copy of several publicly available documents2 related to the transfer of licenses of Indian Point 1 and Indian Point 2 from Consolidated Edison Company to Entergy Nuclear Indian Point 2, LLC, as approved by NRC Order dated August 27, 2001 (ADAMS Accession No. ML012250459). The NRC staff's e-mail communication dated March 5, 2019, with the State official can be viewed at ADAMS Accession No. ML 19065A099).

2 Entergy letter dated January 11, 2006, Attachment 1, copy of Provisional Decommissioning Trust Agreement (ADAMS Accession No. ML060240228); NRC License Amendment No. 220 dated September 6, 2001 (ADAMS Accession No. ML012490190); NRC Request for Additional Information letter dated March 1, 2001 (ADAMS Accession No. ML010160298); Entergy Supplemental Request for Additional Information Response dated June 8, 2001 (ADAMS Accession No. ML011630057).

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5.0 ENVIRONMENTAL CONSIDERATION

The amendments change a requirement with respect to installation or use of a facility component located within the restricted area as defined in 10 CFR Part 20. The NRC staff has determined that the amendments involve no significant increase in the amounts, and no significant change in the types, of any effluents that may be released offsite, and that there is no significant increase in individual or cumulative occupational radiation exposure. The Commission has previously issued a proposed finding that the amendments involve no significant hazards consideration, and there has been no public comment on such finding (September 11, 2018; 83 FR 45984). In addition, the regulation in 10 CFR 50.75(h)(4) states that in the absence of a determination by the Commission otherwise, an amendment "that does no more than delete specific license conditions relating to the terms and conditions of decommissioning trust fund agreement involves no significant hazards consideration." The Commission made no determination that these amendments involved significant hazards. Accordingly, the amendments meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(9). Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the issuance of the amendments.

6.0 CONCLUSION

The Commission has concluded, based on the considerations discussed above, that: (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) there is reasonable assurance that such activities will be conducted in compliance with the Commission's regulations, and (3) the issuance of the amendments will not be inimical to the common defense and security or to the health and safety of the public.

Principal Contributors: E. Tabakov R. Guzman

Date: March 21, 201 9

SUBJECT: INDIAN POINT NUCLEAR GENERATING UNIT NOS. 1 AND 2 - ISSUANCE OF AMENDMENT NO. 61 AND NO. 289 RE: DELETION OF FACILITY OPERATING LICENSE CONDITIONS RELATED TO DECOMMISSIONING TRUST PROVISIONS (EPID L-2018-LLA-0180) DATED MARCH 21, 2019

DISTRIBUTION: PUBLIC PM File Copy RidsACRS_MailCTR RidsNrrDorlLpl1 RidsNrrLALRonewicz RidsNrrPMlndian Point RidsRgn1 MailCenter RidsNmssDuwpRDB RidsNrrDlpPfpb ETabakov, NRR

ADAMS A ccess1on N ML19065A101 o.:

OFFICE NRR/DORL/LPL 1/PM NRR/DORL/LPL 1 /LA

NAME RGuzman LRonewicz

DATE 03/07/2019 03/07/2019

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NAME AGhosh Naber BWatson

DATE 03/19/2019 03/13/2019

OFFICE NRR/DORL/LPL 1/PM :·~< · ... ·,

NAME RGuzman (JDanna for) '\".'::,

DATE 03/21/2019

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02/13/2019

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03/21/2019