Notice2024-17218
Record of Decision: Issuance of a Loan Guarantee to Holtec Palisades, LLC for General Restoration and Maintenance Activities of the Palisades Nuclear Plant
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Published
August 5, 2024
Issuing agencies
Energy Department
Abstract
The U.S. Department of Energy (DOE) announces its decision to issue a loan guarantee under the Energy Policy Act of 2005 (EPAct 2005), as amended, specifically the Energy Infrastructure Reinvestment Program, to Holtec Palisades, LLC., (Holtec) for general restoration and maintenance activities (Project), consistent with the Nuclear Regulatory Commission (NRC) Renewed Facility Operating License Number DPR-20. The general restoration and maintenance activities would support the potential future resumption of power generation activities at the Palisades Nuclear Plant (Palisades or PNP), an 800-MW electric nuclear generation station in Covert Township, Michigan. Holtec has initiated an exemption request, a license transfer request, and license amendment requests with NRC, that, if approved, would allow the resumption of power generation and operation until 2031, and Holtec intends to submit a subsequent license extension request to the NRC to allow power generation from 2031 to 2051.
Full Text
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<title>Federal Register, Volume 89 Issue 150 (Monday, August 5, 2024)</title>
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[Federal Register Volume 89, Number 150 (Monday, August 5, 2024)]
[Notices]
[Pages 63424-63426]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-17218]
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DEPARTMENT OF ENERGY
Record of Decision: Issuance of a Loan Guarantee to Holtec
Palisades, LLC for General Restoration and Maintenance Activities of
the Palisades Nuclear Plant
AGENCY: Loan Programs Office (LPO), U.S. Department of Energy.
ACTION: Record of decision (ROD).
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SUMMARY: The U.S. Department of Energy (DOE) announces its decision to
issue a loan guarantee under the Energy Policy Act of 2005 (EPAct
2005), as amended, specifically the Energy Infrastructure Reinvestment
Program, to Holtec Palisades, LLC., (Holtec) for general restoration
and maintenance activities (Project), consistent with the Nuclear
Regulatory Commission (NRC) Renewed Facility Operating License Number
DPR-20. The general restoration and maintenance activities would
support the potential future resumption of power generation activities
at the Palisades Nuclear Plant (Palisades or PNP), an 800-MW electric
nuclear generation station in Covert Township, Michigan. Holtec has
initiated an exemption request, a license transfer request, and license
amendment requests with NRC, that, if approved, would allow the
resumption of power generation and operation until 2031, and Holtec
intends to submit a subsequent license extension request to the NRC to
allow power generation from 2031 to 2051.
ADDRESSES: Copies of this ROD and the Final EIS may be obtained by
accessing these documents and additional information about DOE's Loan
Programs website at <a href="https://www.energy.gov/lpo/eis-0562-palisades-nuclear-restart-project-van-buren-county-michigan">https://www.energy.gov/lpo/eis-0562-palisades-nuclear-restart-project-van-buren-county-michigan</a>, or LPO's NEPA
Program website at <a href="https://www.energy.gov/lpo/environmental-compliance-1">https://www.energy.gov/lpo/environmental-compliance-1</a>.
FOR FURTHER INFORMATION CONTACT: Alicia Williamson, NEPA Document
Manager, Technical and Environmental Division, Loan Programs Office
(LP-30), U.S. Department of Energy, 1000 Independence Ave. SW,
Washington, DC 20585, telephone (202) 586-7272; email
<a href="/cdn-cgi/l/email-protection#febf92979d979fd0a9979292979f938d9190be968fd09a919bd0999188"><span class="__cf_email__" data-cfemail="387954515b5159166f5154545159554b5756785049165c575d165f574e">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The environmental impacts of general
restoration and maintenance activities at PNP were analyzed pursuant to
the National Environmental Policy Act (NEPA) in the DOE/EIS-0562: Final
Environmental Impact Statement, Proposed Palisades Nuclear Restart
Project, Van Buren County, Michigan (89 FR 53659, June 27, 2024).
The Project would entail general restoration and maintenance
activities at PNP, consistent with the NRC Renewed Facility Operating
License Number DPR-20. DOE LPO's review and adoption of the NRC NEPA
documents covers only general restoration and maintenance activities,
and the potential use of a DOE loan guarantee for PNP refueling, power
ascension, and power generation would not occur until the completion of
the NRC NEPA evaluation analyzing the same.
NEPA Review: Prior to DOE LPO consideration of a loan guarantee for
the Project, PNP ceased operations, the nuclear fuel was removed, and
PNP entered decommissioning mode in May 2022. The nuclear fuel was
placed in the established onsite spent fuel pool, but no structural
dismantling of PNP has occurred, and the equipment is still in place
and intact. Palisades was acquired by Holtec in June 2022, who now
[[Page 63425]]
intends to restore PNP and resume power generation activities. Holtec
has initiated an exemption request, a license transfer request, and
license amendment requests processes with the NRC, that if approved,
would allow the reactor to be re-fueled and the resumption of power
generation and operation until 2031. In addition, Holtec intends to
submit a Subsequent License Renewal (SLR) application to NRC, that if
granted, would allow power generation until at least 2051.
Holtec is pursuing a reauthorization of power operations at PNP
within the existing NRC regulatory framework, which would allow the
reactor to be refueled and resume power generation operations through
March 2031. In 2007, the NRC granted Palisades a 20-year Renewed
Facility Operating License (No. DPR-20), which extended the period of
PNP operations until March 2031. The NRC completed a safety analysis
review and in compliance with NEPA, issued NUREG-1437, Supplement 27,
Generic Environmental Impact Statement for License Renewal of Nuclear
Plants, Regarding Palisades Nuclear Plant, Draft Report (SEIS) in
February 2006 (71 FR 9541), followed by the Final SEIS in October 2006
(71 FR 61967). The SEIS analyzed the environmental impacts of PNP
operations from March 2011 through March 2031. The NRC's Record of
Decision (ROD) (72 FR 3168) and reactor facility operating license
approval for the 20- year extended operations period was issued in
January 2007.
DOE was not a cooperating agency in the development of the NRC
SEIS. DOE LPO conducted a review of the NRC environmental documents
related to the licensing of PNP, in accordance with 10 CFR 1021.200(d).
DOE's proposed action of issuing a loan guarantee to support the
general restoration and maintenance activities was analyzed in the NRC
SEIS. Based on its independent evaluation of the NRC's 2006 SEIS, DOE
has determined that the documentation satisfies DOE NEPA procedures for
the general restoration and maintenance activities of PNP. Accordingly,
DOE adopted and recirculated the 2006 NRC Final SEIS as a DOE Final EIS
(DOE/EIS-0562). Activities associated with PNP refueling and repowering
are not yet ripe and are the subject of an NRC environmental review,
with DOE as a cooperating agency. Consequently, the potential use of a
DOE loan guarantee for PNP refueling, repowering, and power generation
would not occur until the completion of the NRC NEPA evaluation
analyzing the potential environmental impacts of refueling and
repowering, and the associated NRC approvals of Holtec's exemption
request from 10 CFR 50.82(a)(2), license transfer request, and license
amendment requests.
DOE is a NEPA cooperating agency with the NRC on its environmental
review for the exemption request, a license transfer request, and
license amendment requests and will cooperate with the NRC on the
subsequent license renewal process, thereby tiering its environmental
review process to focus on the issues that are ripe for decision and
inform future decisions regarding additional Federal financial
assistance. At the conclusion of each NRC environmental review and
approval processes, DOE would publish a Record of Decision in support
of any future Federal financial assistance associated with resumption
of power generation and operation extending beyond 2031.
Alternatives Considered: DOE's decision in this ROD is whether or
not to issue a loan guarantee to Holtec for general restoration and
maintenance activities in support of repowering PNP. Accordingly, DOE's
alternatives are: (1) to issue a loan guarantee to Holtec for the
Proposed Action, or (2) not issue a loan guarantee to Holtec (No-Action
Alternative).
Environmental Preferable Alternative: DOE reviewed both
alternatives to identify the environmentally preferable alternative and
considers the issuance of a loan guarantee to Holtec for the Proposed
Action as the environmentally preferable alternative. This alternative
offers environmental benefits consistent with the statutory objectives
of Section 1706 of EPAct 2005, as amended, specifically the Energy
Infrastructure Reinvestment Program, which includes repowering of
energy infrastructure that has ceased operations and reduces greenhouse
gas emissions. Compared to fossil-fuel power sources producing the same
amount of power, carbon dioxide emission rates from the Project would
be considerably less (see Section 8.2.1 of DOE/EIS-0562). This chosen
alternative does not limit consideration of alternatives for future
NEPA reviews related to the Proposed Action.
Environmental Justice: Updated guidance regarding environmental
justice (e.g., Executive Order 14096, Revitalizing Our Nations
Commitment to Environmental Justice) was not in place when NRC issued
the Final SEIS. For the Palisades review, DOE/EIS-0562 examined the
geographic distribution of minority and low-income populations within
50 miles of the site, using data from the 2000 U.S. Census Bureau. The
analysis was supplemented by discussions with the local authorities
from the Van Buren County planning department and social service
agencies. The analysis concluded PNP does not disproportionately result
in high and adverse human health or environmental impacts on minority
or low-income populations. As a result, DOE concluded the analysis
encompasses the scope of the DOE proposed action, as the current NRC
license for PNP remains in effect through 2031. Nevertheless, future
environmental analyses evaluating the refueling and repowering
activities for the Palisades restart project will include an
environmental justice review using the most up-to-date Federal
guidelines.
Floodplain Statement of Findings: The DOE/EIS-0562 considered the
relevant information for a floodplains and wetlands assessment pursuant
to 10 CFR part 1022. The Proposed Action is not within a 100-year
floodplain and because no major construction will take place, there
would be no redirection or alteration in patterns of surrounding water,
sediment transport or wetlands onsite. DOE/EIS-0562 Sections 2.2.6,
4.2, and 4.28 contain the relevant analyses on floodplains and
wetlands. Furthermore, in 2019, the NRC conducted a Flooding Focused
Evaluation at the Palisades plant which required the facility to
reevaluate flood hazards for the site using more current methods and
new regulatory guidance used by the NRC staff. This process concluded
that Palisades had demonstrated that effective flood protection exists
in the event of a beyond-design-basis external flooding event
(Palisades Nuclear Plant-Staff Assessment of Flooding Focused
Evaluation (EPID No. L-2018-JLD-0015, January 19, 2019).
The NRC's current licensing basis is designed to address the risks
associated with natural hazards such as climate change. Additionally,
as noted in the Environmental Preferable Alternative section of this
document, the greenhouse gases emitted from the Project would be less
than a reasonable alternative.
Consultation Requirements: DOE was not a cooperating agency with
NRC during its development of the NRC SEIS; therefore, DOE completed
its own environmental compliance reviews and consultations.
Specifically, DOE consulted with the Michigan State Historical
Preservation Office (SHPO) and the U.S. Fish and Wildlife Service
(USFWS). Additionally, the DOE reviewed the NRC's Final SEIS and
supporting documentation and related surveys, studies, and
consultations.
By letter dated May 20, 2024, the Michigan SHPO concurred with
DOE's
[[Page 63426]]
finding of no historic properties effected within the area of potential
effect associated with this undertaking pursuant to Section 106 of the
National Historic Preservation Act. DOE also sent a NEPA notice
regarding the proposed Federal financial assistance for the general
restoration and maintenance activities at PNP to Federally recognized
Native American Tribes in the area or with indigenous ties to the area
to identify Tribal interest and provide an opportunity to make comments
or express concerns. Additionally, each Tribe was contacted by
telephone to ensure receipt and respond to any immediate questions or
concerns. No immediate questions or concerns were relayed by the
Tribes.
By letter dated, May 23, 2024, the US FWS confirmed consultation
was not needed for the project based on the ``no effect'' and ``not
likely to adversely affect'' (NLAA) determinations of the following
threatened and endangered species located in the vicinity of PNP:
Eastern Massasauga rattlesnake (Sistrurus catenatus)-NLAA; Indiana Bat
(Myotis soldalis)-no effect; Mitchell's Satyr Butterfly (Neonympha
mitchellii mitchellii)-no effect; Monarch Butterfly (Danaus plexippus)-
no effect; Piping Plover (Charadruis melodus)-NLAA; Pitcher's Thistle
(Cirsium pitcher)-NLAA; Rufa Red Know (Calidris canutus rufa)-NLAA;
Tricolored Bat (Perimyotis subflavus)-no effect; and Whooping Crane
(Grus americana)-no effect. Finally, through its review, DOE determined
that NRC completed the Coastal Zone Management Act Federal Consistency
Certification, which is documented in Appendix E of Final DOE/EIS-0562.
Hence, DOE has fulfilled its consultation responsibilities under NHPA
and ESA for restoration and maintenance activities related to the
general restoration and maintenance activities of PNP.
Final DOE/EIS-0562 Review Period: The Notice of Availability of the
Final DOE/EIS-0562 and the Adoption Notice were published in the
Federal Register on March 1, 2024 (89 FR 15199). The review period of
the EIS was from March 1 to April 1, 2024. DOE received one submittal
from the public during the review period. The inquiry requested
information regarding the LPO's NEPA process, a copy of project
documentation, and a DOE point of contact for the project. DOE provided
the requested information, and has concluded that no new information or
circumstances has been submitted that would warrant preparation of a
supplemental EIS, or show that the Project would affect the quality of
the human environment not already encompassed by the analysis
considered in the Final DOE/EIS-0562, or considered in the preparation
of this ROD.
Decision: DOE has decided to issue a loan guarantee to Holtec
Palisades, LLC for the general restoration and maintenance activities
in support of repowering PNP, an 800-MW electric nuclear generation
station in Covert Township, Michigan. The Project would entail the
general restoration and maintenance activities in support of repowering
PNP in accordance with the existing NRC Renewed Facility Operating
License Number DPR-20. Approval of the loan guarantee responds to the
DOE purpose and need pursuant to Section 1706 of EPAct 2005, as
amended, specifically the Energy Infrastructure Reinvestment Program.
DOE's Proposed Action evaluated in this ROD supports the general
restoration and maintenance activities at PNP analyzed within the Final
DOE/EIS-0562. Activities associated with PNP refueling, repowering and
operations to 2031, and operation from 2031-2051 (via SLR) are not yet
ripe for environmental analysis or decisions, are not the subject of
this ROD, and will be the subject of current and future NRC and DOE
environmental reviews.
Mitigation: All DOE loan guarantee agreements require that the
borrower comply with all applicable environmental laws and related
requirements. For the Project, this would include conditions and
requirements related to authorizations and approvals within the NRC's
2006 ROD, all permits and consultations identified in Appendix E of the
Final DOE EIS-0562. A borrower's failure to comply with applicable
laws, authorizations, and approvals may constitute a default, upon
which DOE would have the right under the loan guarantee agreement to
exercise usual and customary remedies. To ensure that the borrower
complies with the requirements of the loan guarantee agreement, the
Loan Programs Office proactively monitors and administers all operative
loan guarantee transactions for the lifetime of the loan.
Signing Authority
This document of the Department of Energy was signed on July 26,
2024, by Jigar Shah, Director, Loan Programs Office, pursuant to
delegated authority from the Secretary of Energy. That document with
the original signature and date is maintained by DOE. For
administrative purposes only, and in compliance with requirements of
the Office of the Federal Register, the undersigned DOE Federal
Register Liaison Officer has been authorized to sign and submit the
document in electronic format for publication, as an official document
of the Department of Energy. This administrative process in no way
alters the legal effect of this document upon publication in the
Federal Register.
Signed in Washington, DC, on July 31, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-17218 Filed 8-2-24; 8:45 am]
BILLING CODE 6450-01-P
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