NY sues NRC over lack of hearings, financial oversight in dismantling of Indian Point

New York state has filed a lawsuit challenging the Nuclear Regulatory Commission’s denial of a public hearing on decommissioning concerns of the Indian Point reactors in Buchanan and the approval of using $630 million for spent fuel management.

“The NRC is attempting to bypass critical transparency and accountability steps and also is seeking to make New Yorkers pay for the job,” state Attorney General Letitia James said in a statement.

indian point nuclear union Entergy
Photo by Bob Rozycki

“The NRC”™s unwillingness to hear New York”™s valid concerns is a slap in the face to all New Yorkers. I am committed to fighting back against the NRC”™s misguided and illegal actions and ensuring that Indian Point is decommissioned in a responsible way.”

The action by James”™ office challenges the NRC”™s Nov. 23, 2020, order that provisionally approved transfer of NRC licenses for the Indian Point Nuclear Generating Station from Entergy to Holtec Decommissioning International.

Holtec would handle the decommissioning and dismantling of the reactors and manage disposition of the still-radioactive spent fuel. The NRC also granted Holtec exemptions from certain NRC regulations so it can use decommissioning trust fund money for what James describes as “non-decommissioning purposes.”

The NRC balked at holding a public hearing before acting on the license transfer and decommissioning plans despite calls for it to do so from politicians, public interest groups and New York state.

U.S. Sen. Chuck Schumer, now the Senate”™s majority leader, said, “Allowing Indian Point to change hands without a proper public hearing is a slap in the face to all who live and work in the communities surrounding Indian Point, and I urge the NRC to immediately reverse this decision.”

The Unit 3 reactor at Indian Point is scheduled to be shut down in April, bringing the process of generating electricity through the use of nuclear power to an end at the site. Unit 1 stopped producing electricity in 1974. Unit 2 went through the shutdown process last year.

Approximately $2.1 billion to be used for decommissioning has been collected in three trust funds. The money was collected as part of consumers”™ electric bills.

According to James, Holtec intends to spend more than $630 million of the trust fund money for spent fuel management, raising concerns regarding the sufficiency of the remaining funds to conduct safe and comprehensive decommissioning.

According to James, the federal government has a legal obligation to reimburse spent fuel management costs, but the NRC”™s approval allows Holtec to pocket those reimbursements rather than returning them to the decommissioning trust funds.

“Westchester residents deserve to have their voices heard on whether or not Holtec is right for our community,” said Westchester County Executive George Latimer.

“Indian Point is in our backyard and the decommissioning process is one that will impact our region for generations. We need answers on Holtec”™s plans for protecting local jobs and restoring the site environment while also seeing adequate proof of sufficient financial responsibility. I applaud and support the attorney general”™s suit and look forward to results that will benefit Westchester residents now and for years to come.”

State Assemblywoman Sandra Galef, whose district includes Indian Point, said, “It is intolerable that the NRC would allow Holtec to divert money from the trust fund for spent fuel management. New Yorkers will not be Holtec”™s piggy bank. Our concerns are not trivial and need to be addressed thoroughly through a public hearing. What is the NRC afraid of? Why are they shirking responsibility?”