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Case 1:98-cv-00126-JFM

Document 792-14
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Filed 04/16/2004
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Page 1 of 14

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Case 1:98-cv-00126-JFM

Filed 04/16/2004

ACR ISSUBS STA"lUS RBfORT DECEMBER :41, 1991

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Case 1:98-cv-00126-JFM

Document 792-14

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Page 3 of 14

, PaB~ 2

019 Basis foctlle Acccp~ Priority Raalcial (and for DOD.
acccpt8DCC crilCda) ,

(1)(2)

f8C1 compoDCDtI Dot io an

020 SNP. duaUicatioit' Droc:ecIaiU 021 AccePhDce 'of aaembly IweIware ICSUItiaI from
co.solldado.
022

UlClDhiv at die time of delivery ,

TiV2\
(1)(2)
(1)(3) (1)(4) (1)(2)
' P:t' 2 ~

AcccptIDCc 'or TnupoIt8bJc Storal~ Caab as a Standard

Pact cl...lficatiOD"
ca.taters
a..embly

023 Acicepwace

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of DOD.fueI cOIDpoDcata that are DOtia an

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s. DEPARTMENT OF ENERGY
OAT(
REPl V TO ATTN OF.
,SUBJECT

April 8 , 1983

memorandum

8-10
ACTION MEMORANDUM: , Final Rulemaking On Standard Contract for Nuclear Waste Disposal

TO'

'l'he Secretary
BACKGRoUND:

under Tab c.
, DISCUSSION z

A critical item in implementing the Nuclear Waste Policy Act is waste disposal contr~ct that will be signed between DoE" and the industry. ' '!'helle contracts , must be signed and in ' ~une 30, 1983. KeyassumptiQns and responsibilities are listed under Tab A. 8ection-by-section analyses of the contract are llsed under Tab B. Key dates for i~plementation are listed

~e

place by

Reghter. period. , utilities,

We followed the requirements of the Administrative Procedures Act in implementing and executing the contract. This involved publishing the contract , in the Federal Register, having a 30-day comment period, holding a public hearing" incorporating comments, and publishing a final contract Federal There were 85 sets of comments received duriJ19 the colUl\ent Comments were received, from nuclear nuclear power vendors, environmentalists, power consumer protection ' as BOCia. ti ons , State and Federal agencies. and' individual members of the public. Comments have been reviewed throughout the Department, and subsequently, we have incorporated within the contract recommendations as we deeated appropriate. Eight general policy issues arose from the comments and we appropriately resolved these issues (Tab D).

intbe

CONCLUSION.

The attached Rulemaking 1s ready for publication in the Federal

: Register,

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- 2 RECOHHE!tDATION c

'that the

Secretary approve below.

Robert L. Project Director Nuclear Waste Policy Act

Hoi9a~.4A4

Pro

ect Office

" AP~ROVED'
DISAPPROVED :'

DATE. AP:t:i~

1 1, 19 B 3

Attaclunents

Tab A - Key Assumptions ,and
Tab B - Bection-by-Section '~alys1s

Responsibilities
of

Tab C - Key , Dates

Contract

Tab D - Policy

Issues

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TAB A
Disposal rUnd Contract

Key Assumptions

and generators of spa,nt

, expected.
DOE ResponsibIlities

disposal of existing lIill/KWHR1.waste ($/KG) and Contracts will be ~ standard~ and little n~gotiation ~ Is

Contract covers: waste (1 future
Establish acceptance priority, ranking
Review and approve d' elivery

The disposal contract must be signed by 6~)O- 83, or owners fuel lose the opportunity to dispose of their nuclear waste with ' DOE~

assume title arrange for shipping cask. Handle and dIspose: per NRC approved standards and procedures. Establish fees and collection/financial procedures: 180 days from enactment to establish fee collection

Transport:
procedures.

schedules. at, facUlty.

based on age of

fuel.

payment for existing fuel either collected over 10 yeats or one lump. sum pa' yment at tlme of fuel delivery. fee revJew~dannu811y and Congr~ss notified of changes.

utili tv Responsibilities
Remit fee: revenues expected to begin between . July and September 1983. .
forecast shipments. quantity from speci fic powerpllnt.

fIscal year of delivery.

Prepare for transportation. per applicable regulatory requirements.

d~scribe lIaterial.
NRC Reouirements

NRC shall not issue or renew a license for a nuclear power reactor unless: the utility has signed a contract with DOE for

disposal services ,

DOE affirms that a utility is Bctiv~ly and in good faith negotiating with DOE for a contract.

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TAB B (1..)
Section by Section Contract Analysis

Inboduction and RecltBls
c parame
ers or

e contract.

- Sets forth the authoriti es

lind , the
,i

Oe'inltlon5

prov es the meanIngs for them. Wherever possible the terms defIned and used In the cont' ract are those contaIne6'
SectIon 2 of the Nuclear Waste Policy Act (P. l.
sposal

- Sets forth the terms used throughout the Qontract

97-42S).

Scope of Contt!tl

rBdioactlve weste of domestic oria!" from clvl11an power reactors. The contract services shall colhmen~e not
and/or HLW accepted' by DOE hereund,

nuclear: ' later th~n January 31 ~ 199P, and continue untIl dIsposal of all SN~
ures

y DOE o, f spent nuclear fuel andlor

, - for the

transportation and subsequent

OeHv rv /Ac

proce

.'1 discharge rates and proposed deliveries of SNF and/or HLW under thIs contract, and sets forth the procedures by which DOE will accept the SNF/HLW Appendices A, B, and C set forth' the ror~ and content of the notIfIcatIon.
:ResponslblUties of Parties - Sets forth the required actions and areas of r.sponslbl11ty of th~ Purchaser and DOE.

epta.,ce of SNF and/or HLW - Sets forth the or advance, no o DOE ' by the Purchaser

et.

hlgh";'level

tl rrcarron-r

of,

to DOE by the, , Purchaser, and establishes DOE' s method and procedures for' 8cceptlng SNF /HLW. Appendices 0 and E provide the necessary technical Information and guidance. DOE shall verify the ' Purchaser' s informatIon prior to acceptance. Coverage is given to the circumstances where It is , determined by DOE, both prior

and detailed technical information to be provid'

Cr! tertI for Disposal - Sets forth the requirement for accurate

t~, .nd subsequent to , ~cceptance, of Improperly described fuel:
and waste.

- Title to all SNF and/or HlW shall pass to DOE as soon ~ 8S possible after commencement of operatIon of 8 dIsposal reposItory developed under the Act Bnd, upon acceptance by, DOE at the Purchaser' s site (SectIon '02(a)(1) and 302(a)(S)(A)).
fees and Terms of Pay",ent - Sets forth the procedures for payment of fees; di fferent1ates between fuel generating electrIcIty prior to 90 days, after enactment Bnd that of after 90 deys from the ~8te of enactment; states that annually fees wIll be reassessed and changes published In Federal Realster and sent to Congress as the Act require~. Also discusses the . late oayment pr6cedures and that interest will be charged on Also sets forth DOE rIght to audit whether the Purchpser Is paying the correct amount of

1i tIe

,i

late fees.

fee.

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0-

TAB 81

-2- In the event or unavoidable delays ' by DOE or the deliveries as necessary;, to, 8ccQllmodate, In the event of 8voida~le delays. charges and schedules wll1 be equitably adjusted

ure aser. the , parties will reschedule,

e18

,the delay.

addi tio"a1

delay.

costs incurred by the Party, not

to' cover , any responsible for the

,i

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TAB C

Contract Development and Execution
, I

Key Actions and Dates

F~bruary 4

Draft was'

publ ished in

Federal Register/APA

process began

March 3
March 7 - April 6 April 13

Held Public Hearing
Incorporated comments
Pub li sh

contract in Federal Reg1 ster and

lIIa11 to

utHit1es -

contract effective

UpOfl publ ication

April 13 - Jun e 6

Execution interactions

~th utilities

June 3
June 7 - 11

Brief Secretary on contract execution progress

Contract signature period for ut1t hies
DOE signature period

June 20 ..; 30

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.I"-

TAB D

POLICY ISSUES ADDRESSED DURING NUCLEAR WASTE CONTRACT COMMENT PERIOD

I'

.1.

Spent Nuclear fuel -Exchange"

I!!!l!!!!.

The .ajori ty of utilities commented that they should have,

exchange" or . swapping" rights to ship their SNf and/or

HLW to our %epository. After consideration, aside from some complex r~cord keeping, this p~ses no great proble~ to
us. an~ consequently, we have accepted this suggestion.

' It

will req~lre our approval, and ~e intend to be reason~ble.
.Credits" to the Waste fund/or Utilities The vast majority of utilities suggested that . credits" be glve~ to ~he Fund for ~he value of reprocessed mater!al a~d for cost savIngs measures that they have personally

taken-- potential1y

resulting In cost savings to the wast~

program. Such measures may include rod consolidation, or
~tl1ities providing their own shipping casks.

.e ~ave considered this issue. and reached a decision to
-defer" esta~llshing a position at this time until

reprocessing be~omes a reality and the types of efficiency
credits and their values are better calculable vis-a-vis

, our program

and its costs. for example, recognizing that there is not a private sector reprocessing enterprise at

this time. calculating such reprocessing cost savings and

potential . credits.

is not realistic. Also, savings from

tl8e.

rod consolidation would be dl f'lcu!

t to

predict now at this

Fee Structure for Existing SNF (Fuel Value $1.

0 Billion)

Our .ethod for calculating the fee for existing SNf (that
is retroactive ru~l in basins) 15 essenti~lly based on fu~l

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burn-up levels that equal an industry wide average charge of

) .ill

per KWH, as required by the Act. It is equitable to the IMjorfty of
the affected owners and generators of

SHFor HlW. The vast majority
However, there are a

of the utf1fties endorse our approach.

fewgroup$

who did take exception and may challenge our approach.

They are:

General Ele~tric, TVA, and possibly Conmonwealth Edison.

These groups,

, oV~rall, ha ve low ,bum~up fuel,
, higher rate.'-than

and wf1l be charge~ . ~isproportionately

other groups

on their overall fuel inventory.

We .,

have gone to a four tier approach

to' partially alleviate the problem. :

4. '

ee Structure Fo

In-Core Fuel as of M~dnight April 6.

)ZOO-300 "i111001.:

1983. (Fuel

Val~e

There ' are several pos~ibf1iUes for calculating this fee.

The initial'

option in ou r February 4, 1983 rule had a method based on a ' three tier

cost - approach. This approach was unacceptable to the majority of the
utilities.: We have recognized the substance of theirconments
have altered the fee calculation methodology to .
, and

fon1l.lla based approach

: which ts more' acceptable to most utilities/vendors.

Fee Adjustment, for Retrospective . Fuel Jin' Basins) Not Retroactive
The law. as many conmenters have pointed out. stipulates that only

the 1 mill fee forprospectfvely generated

electricity should be adjusted.

Our February 4 rule stipulated that the one time fee for existing spent
fuel or HlW would also be adjusted according to

' the kilogram equivalency

, rate in effect at the ~ime

a utl1 fty would malee a. 1U111' sum payment to

DOE for disposing of thefr fuel. For exa",,1e, if the 1983

dollarsl
be

kilogram equivalent to the 1 , mill
$350 in 1993, as adjusted.

is $176,

itcou1d conceivably

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- Recognizing the comments

and in reading the Act closAly. we "ill not dJ~st the tee for existing spent tvef but will charge utUities/vendors interest

, outstanding , belance from April 7,

on the

.ade.

198), until p ayment is This type of adjustMent will be agreeable tc the

,.-.ajori ty of

the utilities, however, one vendor (Westinghouse) may challenge the ~oncept.
Hours Generated
"Net Vs Gross"

6. ' Kilowatt

The majority of util~ties favor kilowatt hours generated

~to 'be , ilieesur.ed " net at the ' b~sber.

This would .110w utilities to essentially discount stat10n uses tor pow~r

ilthQugh such cost would' ultimatelY ~nto t~e customers anyway through PUt

generation ,

that kilowatt hours gen~rated be measured at the plant. s turbine output meter, In effec~

others , have s~ggested

rulings. Convers~ly.
would
.-I

paS~,

~rovld!ng a gross generation measurement. This

levy tees upon a util!

~illmed1ately captU1'e all stat1on uses, and in effect would
ty tor 100 percent ot

generation versus an average of 96. 5 percent of generation .s would be' measured undet the net method. Recognizing these factors, and the intent of the Act

nuclear power

nuclear waste resul ting from commercial generating capabilities. we have decided to
disposal services tor ill

rovide

that DOE

use the gross lIeasur~ment for the kilowatt hours
tha t wf ll be '

generated

,subject

to the 1

..111 fee.

7.

~tl1ttles " Riohts"
rights" tor

to "Audit" the Waste Disposal fund

The ut111t1es expressed a firm desire to have "

audit

them written into the contract. In essence

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like Manage.ent, economy/efficiency, . objectives, and financial audit rights over the
..nagement fund.

, they would ,

program
waste

out of sheer history, there 15 clearly no precedenT- for
the private sector t~ audit the federal Government. will be able to get Addi

Uonally, the utili ties
DOE Ie,

1)rogrammaUc access from several other

sourc~s:
,I

~AO,

OHS,

l~gislatlvely m8 ndated waste fund report on an annual

basis ~o the Congress, ~nd
suggesUon was denied.

a private sector -big 6" accounting
There fote, th.1s

firm.

: " 8.

late Pa ment ' Penalt
Percent

uarterl Treasur

Rate Plus 6

the utilities commented that this rate was too excesslv~ 8 pen,lty. We cannot accept these ~omments because we w~nt to encourage utili ties to make timely

The majo~lty , of

~ayments, .n~,

therefore, the ~enBlty should

be stiff.

We, therefore, have decided to remain with this rate.

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, .Jb$\13
Department of Energy
Washington. DC 20585 September 28, J995
~I

8UL ..J PI.

Or. Andrew C. Kadak President and Chief ExecutiVe: Officer

Yankee Atomi c E1 ectri

c Company

580 Main Street Bolton. Massachusetts 01740- 1398
Dear ,Or. Kadak:

'O1qolc you for your letter of September 7, 1995,

1ngYOUr position on the, Departnlent' s obligation to afford priority waste acceptance to the spent, fue1 from Yankee Atomic Electric Company s Rowe

restat ~er station.

the viability of the exchange ,.pr~s for Del

expressing your though~s

on

very Convn1tment' Schedules and

, exchange of delivery cO/lJllitment schedules, we continue to believe that, once
the ,federa 1, waste management $ystern, i s ope,rati
ona 1. the exchange provi

, While your letter

describes circumstances that you believe will impede the

si on ,

will be exercised by Purcha~er$as originally anticipated. Artlc1~ V E of the Standard Contract for , the Qlsposa1 of Spent Nuclear uel and/or HHlh Level

Radioactive Waste (Standard Contract) grants Purchasers the right to exchange, with DOE concurrence, approvefl delivery conmitrnent schedules. This provision included 1n the Stand~rd GontractJn response to conments receiVed during tHe Standard Contract rulernakii1g, in order to allow Purchasers greater flexibility in managing their Jnv~tories of spent fuel. We believe the

~s

eXchange provision will allow. industry tooptimize the allocation of waste acceptance capacity to, meet in~ividual utility needs, without the overt involvement of the Department.

With respect to the Department' s ability to grant priority acceptance of the spent fuel from your Rowe !)(Mer station, as I noted inrny letter of July 13, amount 1995, to State Representative Herren, there are statutory canacce prior to the opening of a of spent fuel that the Department Consequently. the epartrnent does not have the permanent reposito to grant priority acceptance to shutdown reactors without adversely affecting other u~1Jities. The Congress" is c!ebatlng the issue of centralized interim .storag~ of sper.t IlUalear fuel. l1:t~ Mclrlte of this debate may invo1ve , new .

liniits on the

ry.

ability

policy direction for this program, and may include policy guidance on the priority acceptance : of spent 'fuel from shutda,.m reactors.

Prinled_tPflnkanoecydedp3per

02013

YDK-OO6- 1064