Record of Proceedings, Including Reasons for Decision

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1 Record of Proceedings, Including Reasons for Decision In the Matter of Applicant Hydro-Québec Subject Application for the Renewal of the Operating Licence for the Gentilly-2 Waste Management Facility Date December 23, 2003

2 RECORD OF PROCEEDINGS Applicant: Address/Location: Purpose: Hydro-Québec 4900 Bécancour Blvd., Bécancour, Quebec G9H 3X3 Application for the Renewal of the Operating Licence for the Gentilly-2 Waste Management Facility Application received: June 3, 2003 Hearing Day One: September 25, 2003 Hearing Day Two: November 26, 2003 Location: Canadian Nuclear Safety Commission (CNSC) Public Hearing Room, 280 Slater Street, 14th Floor, Ottawa, Ontario Members present: L.J. Keen, Chair A.R. Graham C. Barnes J.M. McDill J.A. Dosman Y.M. Giroux Counsel: Secretary: Recording Secretary: I.V. Gendron M.A. Leblanc S. Gingras Applicant Represented By Document Number M. Désilets, Site Manager, Gentilly-2 CMD 03-H32.1 N. Lamarche, Chief, Radiation Protection CMD 03-H32.1A M. Beaudet, Chief, Nuclear Safety J. Parent, Advisor, Radiation Protection E. Dion, Advisor, Radiation Protection M. Rhéaume, Chief, Regulatory and Environmental Affairs and Public Consultations C. Barbeau, Professor, Environmental Chemistry, Laval University CNSC Staff Document Number C. Maloney CMD 03-H32 M. Ben Belfadhel CMD 03-H32.A F. Leduc P. Dubé P. Thompson S. Nguyen R. Ferch Intervenor Document Number J. Dagenais CMD 03-H32.2

3 Other Participant M. Richard, Mayor of Bécancour CMD 03-H32.2A Decision and Reasons: Licence: Renewed Date of Decision: November 26, 2003

4 1. Introduction Hydro-Québec has applied to the Canadian Nuclear Safety Commission for a six-year renewal of its operating licence for the Gentilly-2 waste management facility. Hydro-Québec initially applied for a three-year licence, but subsequently requested a six-year licence on the second day of the hearing. The Gentilly-2 waste management facility is located adjacent to the Gentilly-2 Nuclear Generating Station (NGS), east of the industrial park and port facility of Bécancour on the south shore of the St. Lawrence River, about 15 kilometres east of the City of Trois-Rivières. The radioactive waste management facility of the Gentilly-2 nuclear generating station consist of two distinct parts: the radioactive waste management area (RWMA) and the used fuel dry storage facility (UFDSF). The proposed activities include storage of radioactive waste and storage of spent fuel. Issues In considering the application, the Canadian Nuclear Safety Commission (the Commission) was required to decide, pursuant to subsection 24(4) of the Nuclear Safety and Control Act: a) if Hydro-Québec is qualified to carry on the activity that the licence would authorize; and b) if, in carrying on that activity, Hydro-Québec would make adequate provision for the protection of the environment, the health and safety of persons and the maintenance of national security and measures required to implement international obligations to which Canada has agreed. Public Hearing The Commission, in making its decision, considered information presented for a two-day public hearing held on September 25, 2003 and November 26, 2003 in Ottawa, Ontario. The public hearing was conducted in accordance with the Canadian Nuclear Safety Commission Rules of Procedure. The Commission received written submissions and heard oral presentations from Hydro-Québec (CMD 03-H32.1), from CNSC staff (CMD 03-H32 and CMD 03-H32.A) and from an intervenor, Jacques Dagenais (CMD 03-H32.2 and CMD 03-H32.2A). Maurice Richard, Mayor of Bécancour, was also given the opportunity to speak on the first day of the hearing. 2. Decision Based on its consideration of the matter, as described in more detail in the following sections of this record of proceedings, the Commission concludes that Hydro-Québec is qualified to carry on the activity that the licence will authorize. The Commission also determined that Hydro-Québec, in carrying on that activity, will make adequate provision for the protection of the environment, the health and safety of persons and the maintenance of national security and measures required to implement international obligations to which Canada has agreed.

5 - 2 - Therefore, the Commission, pursuant to section 24 of the Nuclear Safety and Control Act, renews the Waste Facility Operating Licence held by Hydro-Québec, Bécancour, Quebec. The licence PEID-W /2009 is valid from January 1, 2004 to December 31, 2009, unless suspended, amended, revoked or replaced. The Commission includes in the licence the conditions recommended by CNSC staff as set out in the draft licence attached to CMD 03-H32.A, with one change. The Commission makes the following modification to the licence, as suggested by the CNSC staff during the hearing: Under the heading Licence length, the following sentence: From January 1, 2003 to December 31, 2009 ( ) is replaced with: From January 1, 2004 to December 31, 2009 (.) With this decision, the Commission requests that CNSC staff present to the Commission an interim status report on the performance of the licensee and facility at approximately the midpoint of the licence term (i.e., in approximately November 2006). The report will be presented at a public proceeding of the Commission. It should include, but not necessarily be limited to, information regarding tritium in groundwater sampling around the waste management facility. 3. Issues and Commission Findings In making its licensing decision under section 24 of the Nuclear Safety and Control Act, the Commission considered a number of issues relating to Hydro-Québec s qualifications to carry out the proposed activities, and the adequacy of the proposed measures for protecting the environment, the health and safety of persons, national security and international obligations to which Canada has agreed. The Commission s findings on these issues are summarized in this section. The Commission notes that a number of the issues examined are interdependent. For example, determining the adequacy of performance in a specific safety area often requires an examination of the licensee s past and current performance in that area, together with the relevant aspects of performance assurance and design adequacy that could affect future performance. As such, the findings of the Commission presented below are based on the Commission s consideration of all of the information and submissions available for reference on the record for the hearing. 3.1 The Public Hearing Process An intervenor, Mr. J. Dagenais, questioned the value of the hearing process because, in his opinion, the Commission is not independent of the interests of the federal government. Mr.

6 - 3 - Dagenais added that he was not aware of any intervention made to the Commission that has resulted in a licence not being renewed by the Commission. In response to these statements, the Commission points out that it is an independent regulatory tribunal with a mandate under the Nuclear Safety and Control Act to protect health, safety, security and environment. In making its decisions, the Commission also welcomes and carefully considers all representations made to it. 3.2 Radiation Protection As part of its evaluation of the adequacy of provisions for protecting the health and safety of persons, the Commission considered the past performance and future plans of Hydro-Québec in the area of radiation protection. In this regard, CNSC staff reported that Hydro-Québec s radiation protection program exceeds CNSC expectations, and that the implementation of the program for the radioactive waste management facility meets CNSC expectations. Recorded doses to the nuclear energy workers are well below the legal limit. Doses to members of the public are also less than 1% of the maximum permissible dose. Hydro-Québec stated that no incidences of significant contamination have been observed in the past two years. Hydro-Québec also said that the gamma radiation level at the boundary of the UFDSF and the RWMA zone has remained below the values authorized for the current licence period. CNSC staff noted that Hydro-Québec reported five violations of Hydro-Québec s health directives and radiation protection standards at the radioactive waste management facility during the current licence period. CNSC staff added that the violations were not likely to result in the exposure of individuals to radiation exceeding the applicable dose limits set out in the Radiation Protection Regulations and, therefore, were non-reportable under the General Nuclear Safety and Control Regulations. As a result, CNSC staff concluded that the incidents did not pose a significant risk to workers or the public. Hydro-Québec expressed its concurrence with that assessment of the incidents and stated that it has implemented a number of recommendations to prevent recurrence of these incidents in the future. Three of the above-noted violations concerned the presence of workers at the RWMA without the required personal radiation dosimeters. The Commission asked why some employees were not wearing dosimeters. Hydro-Québec replied that the requirements were apparently unclear to some employees and that those employees have since been reminded of the requirement to wear proper dosimeters at work at all times. CNSC staff noted that it considers Hydro-Québec s radiation protection program and action levels to be acceptable. CNSC staff recommended that the Commission add a standard condition to the licence that will require Hydro-Québec to notify the CNSC and submit a written report whenever an action level is reached.

7 - 4 - On the basis of the information presented, the Commission concludes that Hydro-Québec has made, and will continue to make, adequate provisions for the protection of persons from radiation from its waste management facility. The Commission also accepts CNSC staff s recommendation to add the proposed licence condition concerning action levels. 3.3 Conventional Health and Safety Also in regard to the protection of persons at the Gentilly-2 radioactive waste management facility, CNSC staff reported that no deficiencies were observed in the implementation of conventional health and safety programs at the site. No accidents occurred during the operating period of the current licence. The Commission asked if there was a health and safety committee at the Gentilly-2 site and to whom this committee reported. Hydro-Québec replied that the steering committee on health and safety reports directly to the managers at the site and that the subject of health and safety is discussed as a matter of course every two weeks by the management committee. On the basis of this information, the Commission concludes that Hydro-Québec has made, and will continue to make, adequate provision for the protection of persons from conventional (nonradiological) hazards at the Gentilly-2 radioactive waste management facility. 3.4 Environmental Protection To determine whether Hydro-Québec will make adequate provisions to protect the environment while carrying out the proposed activities at the Gentilly-2 radioactive waste management facility, the Commission considered the potential for the facility operations to adversely affect the environment and the programs in place to protect the environment. CNSC staff noted that, while Hydro-Québec s environmental protection program documentation for the Gentilly-2 site overall does not fully meet the CNSC s requirements, the implementation of the environmental protection program at the radioactive waste management facility exceeds CNSC s requirements. CNSC staff reported that radioactive emissions constitute a very small fraction of the generating station s derived release levels. CNSC staff also noted that no spills of chemicals or radioactive materials have been reported at the radioactive waste management facility. CNSC staff reported that it has issued a number of action notices as a result of its assessments of the environmental radiological monitoring program and on-site inspections of the overall Gentilly-2 site. CNSC staff noted, however, that Hydro-Québec has submitted an environmental monitoring plan covering the action notices and that this plan is currently being evaluated by CNSC staff. CNSC staff also reported that Hydro-Québec submitted a report containing an Environmental Risk Assessment and proposed Action Levels for the entire Gentilly-2 site, including the waste

8 - 5 - management facility. CNSC staff stated that it is currently reviewing a revision of the report which Hydro-Québec prepared in response to the comments made by CNSC staff on an earlier version. Hydro-Québec further stated that its Environmental Management System was certified under the ISO standard in 2001 and that it maintained this certification throughout the current licence period. Hydro-Québec added that it has reviewed its practices and procedures to improve confinement of radioactive materials in the RWMA. Radioactive Emissions - Tritium CNSC staff noted that the analysis of samples from surface water bodies and seepage showed a reduction in tritium content relative to the previous licensing period, whereas the analysis of groundwater samples showed an increase in tritium concentrations. Hydro-Québec noted that a stationary body of tritiated groundwater has remained in the site vicinity despite the cleanup activities in Hydro-Québec also stated that, according to modelling and sampling studies, the tritium in the groundwater will have decayed before the groundwater leaves Hydro-Québec s property. In response to a question from the Commission regarding the source of the tritiated groundwater, Hydro-Quebec indicated that the highest readings were recorded at the site where waste incineration activities had been carried out by AECL in the 1970s. Hydro-Québec is of the view that the source of the tritium is those past incineration activities. In response to another question from the Commission on the possible migration of the groundwater over time, Hydro-Québec responded that the measurements taken over a 36-month period indicate that there has been no recent movement of the affected body of groundwater. However, the placement of fill on the site between 1974 and 1980 appears to have put pressure on the water and displaced the contaminated body of groundwater a short distance southward. The Commission asked Hydro-Québec for the results of the measures taken to further reduce the release of tritium to the environment. Hydro-Québec replied that the levels of tritium in the water infiltrating the soil, which were increasing between 1997 and 1999, are now stable. Hydro-Québec added, however, that it is too soon to draw any conclusions about what may be contributing to this reduction. The Commission also asked if there had been any increase in tritium values outside the boundaries of the Gentilly-2 site. Hydro-Québec replied that the levels of tritium in the drainage channels on the site are stable and low, and that as a result, no significant off-site contamination has occurred, or is expected. CNSC staff added that all of the information provided indicates that the situation is stable and that there is no evidence of contamination off-site. CNSC staff also noted that Hydro-Québec has implemented the measures requested by CNSC and that appropriate monitoring is currently being carried out. In response to a question from the Commission on whether the stabilization of the tritium levels was due primarily to the repair of cracks in the asphalt around the RWMA, Hydro-Québec indicated that a number of measures had been taken to reduce the level of tritium and that the repairs to the cracks in the asphalt was not the only reason. These measures also included

9 - 6 - sealing the tubes containing radioactive wastes, verifying the bags of waste before transferring them to the RWMA, and drying the used filters from the reactor prior to transfer. The Commission asked for a description of the tritium concentrations in the surrounding populated areas and in the St. Lawrence River. Hydro-Québec responded that measured tritium levels in precipitation south of the waste management facility were generally between 10 and 100 Bq/L. Hydro-Québec also reported that the tritium readings in precipitation near communities located along the St. Lawrence River are generally below 100 Bq/L. These values are well below the levels that could pose health and safety problems to humans and the environment. In response to a question from the Commission on the reporting of tritium monitoring results by Hydro-Québec, CNSC staff noted that Hydro-Québec submits an annual report containing this information, together with the other environmental monitoring data. CNSC staff added that regular environmental monitoring program reporting is a condition of the current licence. In response to a follow-up question on the environmental monitoring reports, CNSC staff noted that the reports contain information on human exposures through the consumption of aquatic species. CNSC staff noted that the estimated human exposures are acceptable and that the tritium levels measured in the environment are far below those that could cause damage to the aquatic organisms. Following close questioning of Hydro-Québec and CNSC staff during the hearing, the Commission is satisfied that the problem of tritium contamination in the body of groundwater near the waste management facility appears to be localized and stable. The Commission, however, noted a lack of clarity in Hydro-Québec s description of the design of this important part of the environmental monitoring program. Therefore, the Commission requests that clear, detailed information on this matter be included in the mid-term status report which is to be submitted to the Commission in approximately three years. Furthermore, the Commission requests that CNSC staff provide a Significant Development Report at a future meeting of the Commission in the event there is a significant and unexpected change in the behaviour of the contaminated groundwater beneath the site. Carp Mortality in the St. Lawrence River Mr. Dagenais, in his intervention, expressed his view that the study on carp mortality near the Gentilly-2 nuclear plant in 2001 is inaccurate. In Mr. Dagenais opinion, the Quebec Department of Environment should not have eliminated the possibility that the carp mortality was due to the Gentilly-2 nuclear plant on the basis that several of the carp were found upstream from the plant (i.e., as opposed to downstream in waters affected by the plant effluents). Mr. Dagenais noted that the carp affected by tritium from the plant could have travelled a distance upstream of the facility before dying. In response to a related question from the Commission on this matter, CNSC staff indicated that it had met with the staff of the Quebec Department of Environment and the Quebec Wildlife and Parks Corporation in April 2002 to discuss this problem and that, according to the information

10 - 7 - CNSC staff received, carp mortality had occurred at several locations in the River near spawning sites. The mortality might have been caused by a bacterial or viral infection. The carps may have been weakened by an increase in water temperatures in early summer, at which time carp energy requirements are at their peak. The increase in water temperatures was more pronounced that year due to the exceptionally hot weather. According to CNSC staff, there was no link between the operations of the Gentilly-2 facilities, including the waste management facilities, and the observed mortality of carp in Monitoring Regarding radiological monitoring of the radioactive waste management facility at Gentilly-2, CNSC staff noted that the radiation dose rate measurements at the fence around the waste areas are well below the limits established in the licence. CNSC staff added that the surveys of contamination on the premises, and on equipment and personnel after each storage operation, have not revealed any contamination in excess of the limits established in the licence, either for radiation protection or for environmental protection. CNSC staff noted that it inspects the storage structures twice a year and that the minor deficiencies found during those inspections have been corrected by Hydro-Québec. CNSC staff added that Hydro-Québec monitors the drainage ditches adjacent to the facility for contamination, and that Hydro-Québec also monitors radiation dose rates near the CANSTOR modules. The results of that monitoring are discussed in the quarterly reports submitted to the CNSC. Hydro-Québec noted that the radiation levels measured in those locations are very low. Conclusions on Environmental Protection The Commission is of the view that, while the tritium contaminated groundwater on the site does not currently pose a significant risk to the environment, the problem must be closely monitored. If there is a significant change in the behaviour of that contamination, corrective measures may need to be taken. The Commission therefore requests CNSC staff to provide clear and detailed information on the tritium contamination at the RWMA in the proposed mid-term performance status report. In addition, CNSC staff is requested to report on any unexpected change in the behaviour of the body of tritiated groundwater as part of Significant Development Reports at Commission public meetings. On the basis of the information presented above, the Commission concludes that Hydro-Québec has made, and will continue to make, appropriate provisions for the protection of the environment during the proposed licence term. 3.5 Waste Management Hydro-Québec stated that it has implemented an action plan to reduce the volume of radioactive solid waste generated at the Gentilly-2 site. In reply to a question from the Commission concerning the potential for a larger reduction in the volume of solid waste, Hydro-Québec stated

11 - 8 - that it continues to look for further waste reduction opportunities and believes the amount of waste reduction could be greater in the future. Mr. Dagenais, in his intervention, asked the Commission to limit the waste management licence to the amounts currently stored in the Gentilly-2 waste management facility. In his opinion, if the provincial government decides not to invest further in the generating station, it is not necessary to make any transfers until a solution to the problem of long-term spent fuel management has been found and a decommissioning plan is available. While the Commission recognizes Mr. Dagenais concern, the Commission notes that the transfer of radioactive waste to the storage area will be necessary for as long as the Gentilly-2 reactor operates. Furthermore, the Commission considers that the issue of long-term waste storage falls outside the scope of the hearing. 3.6 Operating Performance The Commission considered the current and past operating performance at the Gentilly-2 radioactive waste management facility as an indication of Hydro-Québec s qualifications to continue operating the facility and, in doing so, provide adequate protection for the environment, persons, national security and international obligations. CNSC staff reported that the licensee s operating performance program meets CNSC s requirements. CNSC staff added that, in four compliance inspections carried out during the current licence period, a single minor violation involving an open door at the UFDSF was observed and appropriate corrective measures were taken. Hydro-Québec reported that, during the summer of 2003, it carried out work at the RWMA, including inspections of the physical condition of the structures, a verification of the condition of the stored waste and a verification of the inventory. Hydro-Québec is also considering a reorganization of the space occupied to optimize use of the structures. No leaks of radioactive products from the CANSTOR modules have been detected. Hydro-Québec also pointed out that, in 1994, it received permission to build sixteen CANSTOR modules. Hydro-Québec added that the addition of those modules will enable it to meet the requirements of operating Gentilly-2 until at least With respect to the requirements for routine regulatory reporting, CNSC staff noted that Hydro- Québec s reporting program and procedures comply with the CNSC s requirements. Based on this information, the Commission concludes that the operating performance at the Gentilly-2 radioactive waste management facility provides a positive indication of Hydro- Québec s ability to carry out the proposed activities over the proposed licence period with

12 - 9 - adequate protection of the environment, persons, national security, and Canada s international obligations. 3.7 Performance Assurance The Commission examined performance assurance, including aspects of quality assurance and training, in making its decision on Hydro-Québec s qualifications and protection measures, including in particular Hydro-Québec s ability to sustain an acceptable level of performance during the proposed licence period. CNSC staff reported that the overall performance assurance program for the Gentilly-2 site was below CNSC expectations, but that the program implementation at the radioactive waste management facility meets CNSC s requirements. Quality Assurance With respect to quality assurance, CNSC staff reported that the quality assurance program for the Gentilly-2 site as a whole is below the requirements, but that it has not detected any deficiencies relating to quality assurance at the radioactive waste management facility. As stated in section 3.4 (Environmental Protection), Hydro-Québec reported that its Environmental Management System was certified under the ISO quality standard in 2001 and that this certification was maintained throughout the current licence period. In his intervention, Mr. Dagenais recommended that the Commission inform the Québec Department of Environment and the public that Hydro-Québec s reports on tritium contamination in water are, in Mr. Dagenais opinion, unreliable. Mr. Dagenais is of the view that this is because Hydro-Québec s quality assurance program does not fully meet the CNSC s requirements. In response to this intervention, CNSC staff noted that it has conducted an evaluation of the environmental monitoring program of the Gentilly-2 site and that all corrective measures related to the quality control of the sampling have been made to CNSC staff s satisfaction. Mr. Dagenais is also of the view that CNSC staff failed in its duty to protect the health and safety of citizens by allowing additional radioactive waste to accumulate in the facility despite the known deficiencies in the quality control program. In response to these concerns, the Commission sought further clarification from CNSC staff on the significance of the quality assurance program deficiencies to this application. CNSC staff reiterated that, from its site inspections and reviews of related documentation, there were no shortcomings in the implementation of the quality assurance program at the waste management facility. Hydro-Québec added that the shortcomings in the quality assurance program for the Gentilly-2 site were related to the documentation, but that all quality assurance controls were in place.

13 CNSC staff also noted that it is conducting, as part of the CNSC s compliance program, detailed reviews of the quality of the information provided by the licensee. CNSC staff concluded that it is satisfied that the implementation of the quality assurance program at the waste facility meets the CNSC s requirements. From the information submitted, the Commission is satisfied there is an acceptable quality assurance program in place at the radioactive waste management facility. Training With respect to training as a means for maintaining the licensee s performance and qualifications over time, CNSC staff reported its satisfaction with the implementation of the training programs at the waste management facility. CNSC staff noted that, while some deficiencies remain in the training programs for the Gentilly-2 site as a whole, those deficiencies are unrelated to the operation of the radioactive waste management facility. Conclusion on Performance Assurance On the basis of the information provided, the Commission concludes that Hydro-Québec s performance assurance program is acceptable. 3.8 Emergency Preparedness The CNSC requires that licensees, as part of their provisions for protecting persons and the environment in the conduct of their operations, be prepared to deal effectively with emergencies that may arise. CNSC staff reported that, as a result of its evaluation done at the time the operating licence for the Gentilly-2 NGS was renewed, and of the NUCLEUS 2002 emergency exercise, CNSC staff concludes that the emergency preparedness program for the Gentilly-2 site and its implementation for the radioactive waste management facility exceed the CNSC s requirements. Hydro-Québec stated that it carried out a number of emergency exercises during the current operating licence period with the participation of public authorities. Hydro-Québec is also planning emergency exercises over the next three years. In reply to a question from the Commission concerning the reaction of the people around the generating station to the emergency exercises, Hydro-Québec stated that the people in the vicinity of the site are informed before and after any emergency exercise. Hydro-Québec also said that it organized a workshop on managing radiological incidents in the spring of CNSC staff noted that, in its opinion, there was effective collaboration among the individuals involved and the various levels of government. The Commission asked if there was a plan in place for the distribution of new iodine pills when the expiration date of pills already distributed is reached. Maurice Richard, Mayor of

14 Bécancour, who attended the first day of the hearing, replied that there was a distribution plan and that Quebec s Department of Health and Social Services was handling this provincial government requirement. On the second day of the hearing, Hydro-Québec mentioned that iodine pills had been distributed to the public. It added that this measure had generally been well received by the public. Based on this information, the Commission concludes that the provisions made for responding to an emergency at the Gentilly-2 radioactive waste management facility are adequate. 3.9 Decommissioning and Financial Guarantees In order to ensure that adequate resources will be available to meet the regulatory requirements for safety, environmental protection and security during the future decommissioning of the Gentilly-2 radioactive waste management facility, the Commission requires that adequate plans and financial guarantees for decommissioning and long-term management of waste be put in place and maintained acceptable to the CNSC. CNSC staff stated that Hydro-Québec has submitted a decommissioning cost study for the waste management facility which CNSC staff considers acceptable. CNSC staff also reported that Hydro-Québec has obtained a guarantee from the Province of Quebec for a maximum value of $525 million. This guarantee, which came into force on November 15, 2003, covers the decommissioning of the entire Gentilly-2 site, including the waste management facility. CNSC staff added that it felt that the amount was sufficient to cover the discounted present value of the estimated cost of decommissioning by the shut-down of operations, which is scheduled for 2013 at the latest, barring any refurbishment project. In addition, CNSC staff reported that the CNSC s access to funds is similar to that set out in the access agreements reached in the case of Ontario Power Generation and New Brunswick Energy. In response to a question from the Commission on the status of the Preliminary Decommissioning Plan, CNSC staff indicated that Hydro-Québec had submitted a revised version of the decommissioning plan. CNSC staff noted that the revised plan is acceptable except for several details in the presentation of the information that require clarification Public Information Program CNSC staff noted that it is satisfied that Hydro-Québec s public information program meets CNSC s requirements. CNSC staff added that Hydro-Québec is currently conducting a major public awareness campaign on the refurbishment project for the Gentilly-2 NGS and modification of the radioactive waste management facility. CNSC staff noted that Hydro- Québec has submitted to CNSC staff a plan for further communication and consultation with stakeholders.

15 Mr. Dagenais, in his intervention, stated that he views Hydro-Québec s public information program as inadequate. He noted that he has considerable difficulty obtaining information on the station, since the information is distributed only in the Trois-Rivières area. Hydro-Québec responded that, in recent months, it has organized several public information meetings, at which public information on the station has been available. It added that there have been a number of newspaper articles on the Gentilly-2 plant. On the basis of this information, the Commission is satisfied that the information program operated by Hydro-Québec meets the regulatory requirements and is effective in keeping the public in the vicinity informed of the effects of the facility s operations Security CNSC staff reported that the security program of the Gentilly-2 generating station and its implementation at the radioactive waste management facility meet CNSC expectations. CNSC staff also stated that it has observed that Hydro-Québec has had some difficulties in complying with deadlines imposed on it for the implementation of security measures. However, as a result of the audit by CNSC staff on August 19 to 21, 2003, CNSC staff considers that Hydro-Québec has made satisfactory progress in complying with CNSC s security requirements. Hydro-Québec stated that, at CNSC s request, the security protection measures for the site of the Gentilly-2 generating station were upgraded in light of the events of September 11, Mr. Dagenais, in his intervention, requested that a no-fly zone be established over the Gentilly-2 nuclear generating station and that extra protection be provided for the generating station by using a river patrol. In light of these concerns, the Commission sought further clarification from CNSC staff on the site security measures in place, and under development at the site. CNSC staff stated that there currently exists, under the Aeronautics Act, a regulation that prohibits low-altitude flying over the Gentilly-2 facilities. CNSC staff added that it had been informed by the RCMP that there were no specific aerial threats targetting nuclear stations. In addition, if such a threat were to materialize, there is an agreement between National Defence, Transport Canada and NAV CANADA to address such situations. CNSC staff also stated that it is currently discussing maritime security measures with Hydro-Québec. CNSC staff concluded that it is confident that the security measures in place at the Gentilly-2 nuclear station are adequate. On the basis of this information, the Commission concludes that Hydro-Québec has made, and will continue to make, adequate provisions for ensuring the physical security of the Gentilly-2 radioactive waste management facility.

16 Non-Proliferation and Safeguards CNSC staff reported that the program for nuclear non-proliferation and safeguards for the Gentilly-2 site as a whole and its implementation for the radioactive waste management facility exceed CNSC expectations. CNSC staff also reported that Hydro-Québec has cooperated with the IAEA inspectors and CNSC staff on all aspects of implementing guarantees. In addition, all reports have been submitted by Hydro-Québec within the required time periods. Based on this information, the Commission is satisfied that Hydro-Québec has made, and will continue to make, adequate provisions in the areas of safeguards and non-proliferation at the Gentilly-2 radioactive waste management facility that are necessary for maintaining national security and measures necessary for implementing international agreements to which Canada has agreed Canadian Environmental Assessment Act Before making a licensing decision, the Commission must be satisfied that all applicable requirements of the Canadian Environmental Assessment Act (CEAA) have been fulfilled. CNSC staff stated that no environmental assessment is required under the CEAA because the renewal of the operating licence for the Gentilly-2 radioactive waste management facility is not a trigger for such an assessment. The Commission accepts the above interpretation of the application of the CEAA in this case and therefore concludes that no environmental assessment is required prior to making a decision on the licence renewal application Licence Term On the second day of hearing, Hydro-Québec requested that the operating licence for its radioactive waste management facility be renewed for six years. Hydro-Québec s initial application was for a three-year term. CNSC staff has reviewed Hydro-Québec s application for a six-year licence and recommends that the Commission accept the six-year term. The Commission requested clarification on the change in Hydro-Québec s application respecting its licence term. Hydro-Québec responded that it had initially wanted to align the date of expiry of the waste management licence with that of the operating licence for the Gentilly-2 NGS, which expires in approximately three years. Hydro-Québec also stated that, on reflection, an amalgamation of the licences at that time was no longer desired. The primary reason is that an application to expand the waste facility, to accommodate the waste from the proposed reactor refurbishment project, will likely be made in the next few years. Hydro-Québec indicated that it prefers to keep that application separate from the Gentilly-2 NGS licensing process. Hydro- Québec added that the six-year licence would allow it to discuss with CNSC staff in greater detail a possible alignment of the licence with the Gentilly-2 NGS operating licence at the end of the six years.

17 CNSC staff reported that it assessed Hydro-Québec s modified application in the light of the criteria set out in CMD 02-M12, New Staff Approach to Recommending Licence Periods, and found that it met the criteria. It therefore supports Hydro-Québec s modified application. CNSC staff proposes to submit, at the approximate mid-point of the licence term, a report covering the relevant information on the operating performance of the radioactive waste management facility. The intervenor, Mr. Dagenais, stated that a six-year licence would, in his opinion, limit the information received by the public, since the interim reports are not easily accessible to the public. He therefore requested a licence term of two years. In response to the above intervention from Mr. Dagenais, the Commission notes that the interim performance reports are presented at public proceedings of the Commission. The documentation related to these meetings is therefore in the public domain and accessible from the CNSC Secretariat. Mr. Dagenais believes that the licence for the Gentilly-2 radioactive waste management facility should remain separate from the generating station licence. In his view, the problem of radioactive waste management would be trivialized if the waste management facility were included in the licence for the generating station. He feels that any potential application by Hydro-Québec to merge the two licences would be unwarranted. Commission notes that, at this time, no formal application has been made by Hydro-Québec to merge the two licences. On the basis of this information, the Commission concurs with the proposed six-year licence term. The Commission agrees with CNSC staff that the criteria set out in CMD 02-M12 have been met and that a six-year licence is acceptable. The Commission requests CNSC staff to present an interim status report to the Commission at the approximate mid-point of the licence term (in approximately November 2006) at a public proceeding of the Commission. 4. Conclusion The Commission has considered the information and submissions of the applicant and CNSC staff as presented in the material available for reference on the record, as well as the oral and written submissions of the intervenor provided at the hearing. The Commission therefore renews, pursuant to section 24 of the Nuclear Safety and Control Act, Waste Facility Operating Licence held by Hydro-Québec, of Bécancour, Quebec. The licence, PEID-W /2009, will be valid from January 1, 2004 to December 31, 2009, unless suspended, amended, revoked or replaced.

18 The Commission includes in the licence the conditions recommended by CNSC staff as set out in the draft licence attached to CMD 03-H32.A, with one change. The Commission makes the following modification to the licence, as suggested by the CNSC staff during the hearing: Under the heading Licence length, the following sentence: From January 1, 2003 to December 31, 2009 ( ) is replaced with: From January 1, 2004 to December 31, 2009 (...) The Commission also requests CNSC staff to present an interim report to the Commission on the status of the facility and performance of the licensee at the approximate mid-point of the licence term (i.e., in approximately November 2006). The interim report will be presented at a public proceeding of the Commission. The report should include information on tritium sampling around the RWMA. Marc A. Leblanc Secretary Canadian Nuclear Safety Commission Date of Decision: November 26, 2003 Date of release of Reasons for Decision: December 23, 2003

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