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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
Tbc Stm4anl Di8pouI 00atiIct (lGaU61). wbk:b dcf"mea 'Peat fuel (SNP) ud Idp"evdndlo8c:dve watc 8CCep8aDCc' ptOCCII. W8I
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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)
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AcccptIDCc 'or TnupoIt8bJc Storal~ Caab as a Standard
Pact cl...lficatiOD"
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Case 1:98-cv-00126-JFM
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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