Good news - Calvert Cliffs ineligible for Construction/Operating License

[bananas]

From www.nirs.org:

April 8, 2011: The first U.S. nuclear casualty of the post-Fukushima era: NRC staff letter states that UniStar Nuclear is ineligible to receive a Construction/Operating License to build Calvert Cliffs 3 because it violates Atomic Energy Act prohibitions against foreign ownership, control or domination of a U.S. reactor project. NIRS press release.

The NIRS press release (pdf): http://www.nirs.org/nukerelapse/calvert/nirspronnrcfolttr4811.pdf

NEWS FROM NIRS
Nuclear Information and Resource Service
6930 Carroll Avenue, Suite 340, Takoma Park, MD 20912
301-270-6477, [e-mail], www.nirs.org

FOR IMMEDIATE RELEASE Contact: Michael Mariotte, Executive Director
April 8, 2011 301-270-6477

NRC STAFF RULES THAT UNISTAR NUCLEAR IS NOT ELIGIBLE TO RECEIVE A
LICENSE TO BUILD OR OPERATE CALVERT CLIFFS-3 REACTOR

The Nuclear Regulatory Commission staff today released a letter to UniStar Nuclear that
says UniStar is not legally eligible to receive a Construction/Operating License from the
NRC to build its proposed Calvert Cliffs-3 reactor.

The letter states that while the NRC would continue to review UniStar’s license
application for Calvert Cliffs-3 “while UniStar considers its options to move forward,”
the letter adds, “However, a license will not be issued unless the requirements of 10 CFR
50.38 are met.” 10 CFR 50.38 is the implementing regulation for the Atomic Energy Act,
which prohibits nuclear projects in the U.S. that are “owned, controlled or dominated” by
foreign corporations or governments.

“Calvert Cliffs-3 will become known as the first nuclear casualty of the post-Fukushima
era,” said Michael Mariotte, Executive Director of Nuclear Information and Resource
Service. “The project already was on shaky ground with the withdrawal of Constellation
Energy; it is impossible to imagine that Electricite de France will be able to find a new
American partner to join in on a multi-billion dollar fiasco after the Fukushima nuclear
disaster.”

Mariotte also pointed out that this ruling should end UniStar’s chances of obtaining a
Department of Energy loan guarantee for the project. “We would find it difficult to
believe that the Energy Department could issue a loan guarantee for a project that is
legally ineligible to obtain a construction license,” said Mariotte. He promised that if the
DOE attempts to issue one anyway, “the matter would certainly be decided by the
courts.”

UniStar had been hoping to obtain a DOE loan guarantee to help lure in new U.S.
investors to the project.

Since former partner Constellation Energy dropped out of the Calvert Cliffs-3 project last
October, UniStar Nuclear has been 100% owned by Electricite de France, which is 85%
owned by the French government. UniStar has proposed to build a new reactor at
Constellation’s Calvert Cliffs, Maryland site, designed by another firm owned by the
French government, Areva.

Nuclear Information and Resource Service, Beyond Nuclear, Public Citizen and Southern
Maryland CARES had challenged the license application before an Atomic Safety and
Licensing Board in November 2008 on the grounds that the then-existing corporate
structure violated the Atomic Energy Act.

The ASLB admitted that contention for hearing in March 2009; but hearings have not yet
been held. The ASLB had stated when admitting the contention that 100% ownership by
a foreign entity was per se not allowed, and in November 2010 ruled that the issue would
not proceed to hearing until after the NRC staff issues a determination that the foreign
ownership issue is resolved.

In January 2011, UniStar Nuclear submitted a “negation action plan” in an attempt to
overcome the foreign ownership issue, stating that certain security and safety-related
decisions would only be made by American citizens.

It was this plan that the NRC has rejected, saying it does not overcome the fundamental
facts that “(1) UniStar is 100 percent owned by a foreign corporation (EDF), which is 85
percent owned by the French government; (2) EDF has the power to exercise foreign
ownership, control, or domination over UniStar; and (3) the Negation Action Plan
submitted by UniStar does not negate the foreign ownership, control or domination issues
discussed above.”

The letter is available at:
http://www.nirs.org/nukerelapse/calvert/NRCforeigndeterminationletter.pdf

This press release is available at:
http://www.nirs.org/nukerelapse/calvert/nirspronnrcfolttr4811.pdf

[enough]

1. Your link at the top says page no longer exits. I'd like to get some more detail

about this. It's not clear to me that this NRC decision is actually connected to any changes after Fukushima. It appears to be entirely based on the ownership issue. Is there some information that indicates the NRC decision would have been different before Fukushima?

Perhaps the "first casualty of Fukushima" idea is just that it will be more difficult to find an American partner now?

Thanks for posting this.

[bananas]

5. Which link? The one to the NRC letter from the NIRS homepage?

My post has 3 links:
The NIRS home page: http://www.nirs.org
The NRC letter: http://www.nirs.org/nukerelapse/calvert/NRCforeigndeterminationletter.pdf
The NIRS press release: http://www.nirs.org/nukerelapse/calvert/nirspronnrcfolttr4811.pdf

I just tested them, they all work for me.
If you follow the link to the NIRS home page, one of the links there is bad,
if you look at the url it is a link to the NRC letter without the proper subdirectories.
However inside the press release pdf is a correct link to the NRC letter,
and that's the one I used in my post.

[ProgressiveProfessor]

2. I think NIRS is over reaching a bit here

This issue was acknowledged to exist prior to the Fukashima issues and I am surprised that a way was not found around the ownership issue, and it is safe to assume that one will be. If you read the attachments to the letter, the rest of the application is proceeding into review. Once the ownership issue is resolved, CC#3 will still tracking for approval.

While their enthusiasm is understandable, it is a bit early to claim victory and hyperbole to claim it as the "first U.S. nuclear casualty of the post-Fukushima era"

[kristopher]

3. Maybe, maybe not...

Given the push we've seen for interpretation of regulatory statutes in favor of the nuclear fission industry, it might be more than coincidence that this was booted at this time. It was certainly not expected to be denied, we know that.

I'd say that you are being optimistic about the possibility of this ownership structure working after this ruling.

Quoting the letter, "The NRC staff has completed the review of UniStar’s response to RAI 281. NRC staff has determined that UniStar’s application does not meet the requirements of 10 CFR 50.38. The basis of the determination is: (1) UniStar is 100 percent owned by a foreign corporation (EDF), which is 85 percent owned by the French government; (2) EDF has the power to exercise foreign ownership, control, or domination over UniStar; and (3) the Negation Action Plan submitted by UniStar does not negate the foreign ownership, control or domination issues discussed above. If requested, NRC staff will support a public meeting with UniStar to discuss the results of its review."

It seems hard to imagine that EDF will provide the needed funds without having control of the enterprise and that option looks to have been rejected.

Just a thought, but maybe it's administration payback for the Republican budget shenanigans.

[jpak]

4. K&R

no renaissance for you

yup