The commonwealth of Massachusetts is objecting to an upcoming U.S Nuclear Regulatory Commission staff order allowing the license transfer for the retired Pilgrim Nuclear Power Station.
The order, expected as early as this week, would enable owner Entergy to sell the plant to Holtec International for decommissioning. The ruling could come even before the federal agency rules on petitions by Massachusetts and the advocacy group Pilgrim Watch to intervene in the licensing proceeding.
“At the outset, the Commonwealth objects to the proposed action based on the procedural irregularities and disparate treatment of the Commonwealth during the consultation process as compared to other similarly situated states,” lawyers for Massachusetts wrote in a letter sent Wednesday to the federal regulator.
The commonwealth’s complaints include that NRC staff on Aug. 13 issued a notification of the upcoming order, only 20 minutes prior to an agency meeting with Massachusetts officials to discuss the subject. The new letter also says Massachusetts was given just five business days after the notice to provide written input regarding the final license transfer action, while the federal agency gave 15 days to New Jersey to provide similar input on the transfer of the federal licenses for the Oyster Creek Nuclear Generating Station from Exelon to Holtec.
The commonwealth’s attorneys also argued that financial questions about Holtec must be addressed. These include the New Jersey Economic Development Authority recently freezing a $260 million tax break for Holtec because the company falsely stated it had never been barred from doing business with a state or federal agency. That ignored a temporary prohibition from doing business with the Tennessee Valley Authority following indications it had paid an employee of the federally owned corporation $54,000 to help secure a contract, according to the Massachusetts letter.
The commonwealth is also skeptical about Holtec’s partnership with SNC-Lavalin to carry out decommissioning at Pilgrim and other shuttered nuclear power plants, as the Montreal-based engineering firm is entangled in a bribery scandal in Canada.
“Those issues would be problematic if Holtec’s obligations were limited to Pilgrim. But, as NRC Staff is aware, they are not limited to Pilgrim,” according to the letter. “In fact, Holtec is planning to embark on an uncharted path of attempting to decommission six nuclear power reactors at four different nuclear generating stations in four different states. … Holtec’s unprecedented plan exacerbates all of the issues and concerns raised above.”
Along with Pilgrim and Oyster Creek, Holtec intends to buy Entergy’s Palisades Power Plant in Michigan and Indian Point Energy Center in New York, which are both scheduled to close by 2022. In each case, the New Jersey energy technology company would take ownership of the plant’s decommissioning trust fund, which would provide the source of profit after its cleanup commitments are met.
Massachusetts last week indicated it would seek a stay on the NRC staff order allowing the Pilgrim license transfer once it is issued. On Wednesday, the agency gave the commonwealth an additional five days, up to 10, to file its stay application.
