[Federal Register Volume 67, Number 199 (Tuesday, October 15, 2002)]
[Notices]
[Pages 63685-63686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26168]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-312]


Sacramento Municipal Utility District; Rancho Seco Nuclear 
Generating Station; Exemption

1.0 Background

    The Sacramento Municipal Utility District (the licensee) is the 
holder of Facility Operating License No. DPR-54, which authorizes 
possession of the Rancho Seco Nuclear Generating Station (Rancho Seco). 
The license provides, among other things, that the facility is subject 
to all rules, regulations, and orders of the U.S. Nuclear Regulatory 
Commission (NRC, the Commission) now or hereafter in effect.
    The facility consists of a pressurized water reactor located in 
Sacramento County in California. The facility is permanently shut down 
and defueled and the licensee is no longer authorized to operate or 
place fuel in the reactor.

2.0 Request/Action

    Section 50.54(p) of Title 10 of the Code of Federal Regulations 
states that ``The licensee shall prepare and maintain safeguards 
contingency plan procedures in accordance with Appendix C of part 73 of 
this chapter for effecting the actions and decisions contained in the 
Responsibility Matrix of the Safeguards Contingency Plan.''
    Part 73 of Title 10 of the Code of Federal Regulations, ``Physical 
Protection of Plant and Materials,'' states that ``This part prescribes 
requirements for the establishment and maintenance of a physical 
protection system which will have capabilities for the protection of 
special nuclear material at fixed sites and in transit and of plants in 
which special nuclear material is used.'' Section 73.55 of Title 10 of 
the Code of Federal Regulations, ``Requirements for physical protection 
of licensed activities in nuclear power reactors against radiological 
sabotage,'' states that ``The licensee shall establish and maintain an 
onsite physical protection system and security organization which will 
have as its objective to provide high assurance that activities 
involving special nuclear material are not inimical to the common 
defense and security and do not constitute an unreasonable risk to the 
public health and safety.''
    On March 17, 1992, the NRC amended the Rancho Seco operating 
license to Possession-Only status. On March 20, 1995, the NRC issued 
the Rancho Seco Decommissioning Order. The Order authorized Rancho Seco 
decommissioning and accepted the Rancho Seco decommissioning funding 
plan. By letter dated February 20, 2001, the licensee requested 
exemptions from the security requirements of 10 CFR 50.54(p) and 10 CFR 
part 73. Sections 50.54(p) and 73.55 provide security requirements to 
protect the spent fuel while within the boundary of a licensed power 
reactor site. The requested exemptions from the security requirements 
for the Rancho Seco Nuclear Generating Staion would be effective after 
the spent fuel has been removed from the reactor site by the licensee 
and relocated to the new independent spent fuel storage installation 
(ISFSI), which is not physically associated with the reactor site. The 
new ISFSI has been licensed under 10 CFR part 72 for storage facilities 
not associated with a reactor site and possesses an approved physical 
security plan, as required by 10 CFR 72.180 and 10 CFR 73.51. The 
licensee completed the transfer of the spent nuclear fuel from the 
spent fuel pool to the ISFSI on August 21, 2002.
    Subpart H of 10 CFR part 72 establishes requirements for physical 
protection for the independent storage of spent nuclear fuel and high-
level radioactive waste and refers to 10 CFR 73.51 to define the 
requirements for physical protection of spent nuclear fuel stored under 
a specific license issued pursuant to 10 CFR part 72. The Rancho Seco 
ISFSI has an NRC-approved security plan to protect the spent nuclear 
fuel stored there from radiological sabotage and diversion, as required 
by 10 CFR part 72, subpart H.
    In summary, by letter dated February 20, 2001, the licensee 
requested exemptions from the security requirements of 10 CFR 50.54(p) 
and 10 CFR part 73 to eliminate the security requirements at the 10 CFR 
part 50 licensed site once all the spent nuclear fuel had been moved to 
the 10 CFR part 72 licensed ISFSI.

3.0 Discussion

    Pursuant to 10 CFR 50.12, the Commission may, upon application by 
any interested person or upon its own initiative, grant exemptions from 
the requirements of 10 CFR part 50, when (1) the exemptions are 
authorized by law, will not present an undue risk to public health or 
safety, and are consistent with the common defense and security; and 
(2) when special circumstances are present. Special circumstances are 
present when application of the regulation in the particular 
circumstances would not serve the underlying purpose of the rule and 
when compliance would result in costs significantly in excess of those 
incurred by others similarly situated. Also, pursuant to 10 CFR 73.5, 
``Specific exemptions,'' the Commission may grant exemptions from the 
regulations in this part as it determines are authorized by law and 
will not endanger life or property, and are otherwise in the public 
interest.
    With the completion of the spent fuel movement into the ISFSI on 
August 21, 2002, there is no longer any special nuclear material 
located within the 10 CFR part 50 licensed site. At this time, the 
potential for radiological sabotage or diversion of special nuclear 
material at the 10 CFR part 50 licensed site would be eliminated. The 
security requirements of 10 CFR part 73, as applicable to a 10 CFR part 
50 licensed site, presume that the purpose of the facility is to 
possess and utilize special nuclear material. Therefore, the continued 
application of the 10 CFR part 73 requirements to the Rancho Seco 
facility would no longer be necessary to achieve the underlying purpose 
of the rule. Additionally, with the transfer of the spent nuclear fuel 
to the ISFSI, the 10 CFR part 50 licensed site would be comparable to a 
source and byproduct

[[Page 63686]]

licensee in terms of the level of security needed to protect the public 
health and safety. The continued application of 10 CFR part 73 security 
requirements would cause the licensee to expend significantly more 
funds for security requirements than other source and byproduct 
facilities. Therefore, compliance with 10 CFR part 73 would result in 
costs significantly in excess of those incurred by others similarly 
situated. Based on the above, the NRC has determined that the removal 
of all special nuclear material from the 10 CFR part 50 licensed site 
constitutes special circumstances. The security of the special nuclear 
material will be maintained following relocation of the spent nuclear 
fuel to the 10 CFR part 72 licensed ISFSI since new assurance 
objectives and general performance requirements will be in place to 
protect the spent fuel by the security requirements in 10 CFR part 72. 
Therefore, protection of the special nuclear material will continue 
following relocation of the spent nuclear fuel from the 10 CFR part 50 
licensed site.

4.0 Conclusion

    Accordingly, the Commission has determined that, pursuant to 10 CFR 
50.12(a), an exemption is authorized by law, will not endanger life or 
property or the common defense and security, and is otherwise in the 
public interest based on the continued maintenance of appropriate 
security requirements for the special nuclear material. Additionally, 
special circumstances are present based on the relocation of the spent 
nuclear fuel from the 10 CFR part 50 licensed site to the 10 CFR part 
72 site. Therefore, the Commission hereby grants Sacramento Municipal 
Utility District an exemption from the requirements of 10 CFR 50.54(p) 
at the Rancho Seco Nuclear Generating Station.
    Accordingly, the Commission has determined that, pursuant to 10 CFR 
73.5, an exemption is authorized by law, will not endanger life or 
property or the common defense and security, and is otherwise in the 
public interest based on the maintenance of appropriate security 
requirements for the special nuclear material under the 10 CFR part 72 
license. Therefore, the Commission hereby grants Sacramento Municipal 
Utility District an exemption from the physical protection requirements 
of 10 CFR part 73 at the Rancho Seco Nuclear Generating Station.
    Pursuant to 10 CFR 51.32, ``Finding of no significant impact,'' the 
Commission has previously determined that the granting of this 
exemption will not have a significant effect on the quality of the 
human environment (66 FR 36017, July 10, 2001).
    These exemptions are effective immediately.

    Dated in Rockville, Maryland, this 8th day of October, 2002.

    For the Nuclear Regulatory Commission.
John A. Zwolinski,
Director, Division of Licensing Project Management, Office of Nuclear 
Reactor Regulation.
[FR Doc. 02-26168 Filed 10-11-02; 8:45 am]
BILLING CODE 7590-01-P