NRC Approves Indian Point License Transfer To Holtec

CORTLANDT, NY — Over the objections of local, state and federal officials and environmentalists, the Nuclear Regulatory Commission has approved the application to transfer the licenses for Indian Point Energy Center’s nuclear power plants Unit 1, Unit 2 and Unit 3, from Entergy Corporation to Holtec International.

The federal commission acknowledged they issued the approval without holding hearings as requested repeatedly, for months, by the New York Congressional delegation and state and local officials and activists.

They could do it later, a spokesman said.

"The commission could rescind, modify, or condition the approved transfer based on the outcome of any post-effectiveness hearing on the license transfer application," said spokesman Neil Sheehan.

The transfer of Indian Point to Holtec, currently targeted for May, would occur following the satisfaction of all closing conditions, including the permanent shutdown and reactor defueling of Unit 3, which is the last operating power plant at Indian Point. Unit 3 is scheduled to shut down by April 30.

Entergy and Holtec jointly filed a License Transfer Application with the NRC in November 2019,
requesting approval for the transfer of Indian Point, along with its Nuclear Decommissioning Trusts and decommissioning liability, from current owner Entergy to Holtec.

“The NRC’s approval of the Indian Point license transfer is a critical milestone as we move closer to completing the transaction,” said Leo Denault, Entergy’s Chairman and Chief Executive Officer. “The sale of Indian Point following its permanent shutdown will benefit the community by enabling the facility to be removed and the site remediated decades sooner than otherwise thought possible. Stakeholders in the community will benefit from a dismantling and decommissioning process that can begin promptly following shutdown next year."

That's not how the locals feel.

"This approval puts the public at risk by transferring responsibility for Indian Point’s decommissioning to a company that lacks integrity, experience, and financial stability. Since the NRC has once again neglected its responsibility to properly scrutinize Holtec’s qualifications, Riverkeeper calls upon New York State to step in to fill this gap and ensure the decommissioning of Indian Point is conducted safely, prudently, and in the best interests of New Yorkers," said Cliff Weathers, communications director for the Hudson Valley environmental group. "While Riverkeeper continues to advocate for NRC to examine Holtec’s suitability as licensee, we also demand that the NRC exercise strict oversight of Holtec’s actions, to ensure that the decommissioning process is fully funded and safely completed."

Riverkeeper wrote to the NRC alleging Holtec blatantly and openly violated local law at the neighboring Oyster Creek power plant in New Jersey, and also suggested the company's finances were precarious due to the suspension of a $260 million New Jersey tax break pending investigation of its lies about prior wrongdoing.

In October, Rep. Nita Lowey (D-NY17/Rockland-Westchester), Senate Minority Leader Charles E. Schumer, U.S. Sen. Kirsten Gillibrand, and U.S. Reps. Eliot Engel and Sean Patrick Maloney sent a letter to the chairman and members of the U.S. Nuclear Regulatory Commission renewing their call for the Commission to hold a public hearing and address state and community concerns before approving Holtec.

That didn't happen. The Congressional delegation issued a statement:

Today’s announcement by the NRC is an insult to New Yorkers who have sought to have their voices heard before any action was taken by NRC staff to approve the transfer of Indian Point’s license from Entergy to Holtec International. The NRC chose to ignore our repeated requests for a public hearing before approving the industry requests that will allow Holtec to take over the plant’s licenses and use money in the nuclear decommissioning trusts for spent fuel storage and site restoration. We are deeply concerned by the NRC’s lack of transparency and unwillingness to substantively respond to requests that have been pending before the commission for nine months. Despite today’s announcement, we renew our call for a public hearing and strongly urge the NRC Commissioners to fully and transparently evaluate the pending petitions without further delay.

New York Gov. Andrew Cuomo said cleaning up Indian Point would be complicated and expensive, and for the Nuclear Regulatory Commission to act without considering New York's request for a hearing is unacceptable and denies New Yorkers the public and transparent process they deserve.

"We are considering all options at our disposal to see that the shutdown of this facility protects the public's health and the environment," Cuomo said in a statement. "Critical to that is for any new owner to have the capability and financial wherewithal to expeditiously and thoroughly decommission and restore the site. New York is unwavering in our commitment to holding any owner of Indian Point to the highest standards throughout this process and we will continue to fight to ensure it is shut down safely."

In its decision, the NRC announced that it believes Holtec possesses the required technical and financial qualifications to decommission Indian Point safely and in accordance with NRC requirements.

Previously, the NRC approved two separate transfers of retired nuclear power plants to Holtec for prompt decommissioning. In addition to Oyster Creek, Holtec currently owns and is decommissioning the shutdown Pilgrim nuclear power plant in Massachusetts.

NRC staff said that Holtec will initially provide job opportunities for about 300 of Entergy’s current employees at Indian Point. Holtec also has agreed to honor the collective bargaining agreements that apply to current employees.

Holtec’s plan for decommissioning would finish up and release most of the site for reuse by the 2030s, with the exception of the Independent Spent Fuel Storage Installation and its security perimeter – the area where spent nuclear fuel is safely stored in dry casks until the U.S. Department of Energy transfers the spent fuel offsite.

Holtec said it would move all of the Indian Point spent nuclear fuel into dry casks within about three years following facility shutdown in 2021.

Holtec has a pending application with the NRC for an interim storage facility in New Mexico, which could eventually store spent nuclear fuel from Indian Point and other U.S. nuclear power plants.