Skip to main content

What Does the NRC’s Order on Waste Confidence Mean for New Plant Licensing?

DryCaskStorage1-300x2252
Dry cask storage
It is not every day that the Nuclear Regulatory Commission advises everyone to “take a deep breath,” but when it comes to people misconstruing the facts about new plant licensing activities following a recent order, that is exactly what happened.

In a nutshell—last week, the NRC issued an order saying that it would not issue final reactor licenses or license renewals until the agency addresses a recent federal court ruling on waste confidence. Many people and some news articles mistakenly reported that this means all current licensing reviews and proceedings will come to a screeching halt, which is simply not the case. The order basically means that licensing reviews will move forward, but that final licensing will be put on hold.

The NRC clarified its position in a blog post late last week:
Let’s be clear: Tuesday’s Order was not a “Full Stop” to NRC’s licensing process. The Commission stated that licensing reviews should move forward—only final licensing was put on hold.
NEI’s Vice President and General Counsel Ellen Ginsberg weighed in:
The commission’s order is helpful in that license applicants can continue to pursue their licenses. Although there may be some delay in issuing some renewed licenses, NRC regulations provide that plant operation can continue beyond the original license term and until there is a decision on the renewal application, so long as it has been filed in a timely manner.
A level-headed article in Forbes’ over the weekend provides further background on the NRC’s order and how it relates to new plant licensing activities (bolded text added by me for emphasis):
There has been some fist-bumping this week in the anti-nuclear sector over the recent vacating of two NRC rules by the U.S. Court of Appeals for the District of Columbia Circuit in June; the waste-confidence decision and the storage rule. The judges felt that the agency had failed to conduct an environmental impact statement, or a finding of no significant environmental impact, before ruling that it is safe to store nuclear waste in wet pools and dry casks without a permanent solution in sight. But it was just that the initial NRC rule was too vague, not that this type of storage is unsafe (platts NRC Ruling).
In response, the NRC this week voted unanimously to delay final approval of licenses for new nuclear plants, or renewing the licenses of existing facilities, until the agency responds with a more complete ruling and addresses the dilemma of long-term nuclear waste storage across the country.
The 24 environmental groups that petitioned NRC to respond to the court are acting like they actually stopped all action on nuclear licensing (Marketwatch NRC Ruling). While no final decisions will be made in issuing licenses, the process for licensing new and existing plants will continue as before, the NRC said, which means the impact to the industry will be minimal.
Also, reactors can operate even after their present license expires as long as it is the NRC that is dragging it out. And most reactors have already been relicensed in the last ten years.  Only 18 out of 104 reactors are not and primarily because they have to operate beyond 20 years before they can apply. The four new GenIII plants being built at Vogtle (Georgia) and V.C. Summer (South Carolina) are also not affected at all since their licenses have already been issued.
The NRC’s blog post continues:
Essentially, the Order represents a regulatory agency taking a deep breath while trying to decide the best way to satisfy the Court.
So, let’s all follow the NRC’s advice: inhale, exhale.

Comments

Popular posts from this blog

Fluor Invests in NuScale

You know, it’s kind of sad that no one is willing to invest in nuclear energy anymore. Wait, what? NuScale Power celebrated the news of its company-saving $30 million investment from Fluor Corp. Thursday morning with a press conference in Washington, D.C. Fluor is a design, engineering and construction company involved with some 20 plants in the 70s and 80s, but it has not held interest in a nuclear energy company until now. Fluor, which has deep roots in the nuclear industry, is betting big on small-scale nuclear energy with its NuScale investment. "It's become a serious contender in the last decade or so," John Hopkins, [Fluor’s group president in charge of new ventures], said. And that brings us to NuScale, which had run into some dark days – maybe not as dark as, say, Solyndra, but dire enough : Earlier this year, the Securities Exchange Commission filed an action against NuScale's lead investor, The Michael Kenwood Group. The firm "misap...

Wednesday Update

From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin...

Nuclear Utility Moves Up in Credit Ratings, Bank is "Comfortable with Nuclear Strategy"

Some positive signs that nuclear utilities can continue to receive positive ratings even while they finance new nuclear plants for the first time in decades: Wells Fargo upgrades SCANA to Outperform from Market Perform Wells analyst says, "YTD, SCG shares have underperformed the Regulated Electrics (total return +2% vs. +9%). Shares trade at 11.3X our 10E EPS, a modest discount to the peer group median of 11.8X. We view the valuation as attractive given a comparatively constructive regulatory environment and potential for above-average long-term EPS growth prospects ... Comfortable with Nuclear Strategy. SCG plans to participate in the development of two regulated nuclear units at a cost of $6.3B, raising legitimate concerns regarding financing and construction. We have carefully considered the risks and are comfortable with SCG’s strategy based on a highly constructive political & regulatory environment, manageable financing needs stretched out over 10 years, strong partners...