LACEY – A routine safety inspection at the Oyster Creek Nuclear Generating Station has resulted in claims that Holtec Decommissioning International (HDI) misused funds intended for cleaning up the site. The U.S. Nuclear Regulatory Commission (NRC) has fined HDI for spending approximately $62,000 from the decommissioning trust fund on community outreach activities unrelated to the plant’s safe shutdown.
“We’re citing this as a violation, in part, to require the company to provide a corrective action plan that will be placed on the docket,” wrote Neil Sheehan, NRC Public Affairs Officer. “We are doing that due to complexity of the actions needed to correct the issue, which in turn will require a comprehensive review by multiple parts of the NRC. This will include reviewing the decision-making process used by HDI (Holtec Decommissioning International) to make the expenditures.”
The questionable spending cited by the NRC included a celebration day for Lacey Township, donations to a local food bank, and various community upgrades. While these gestures may seem positive on the surface, the funds used came from the decommissioning trust fund (DTF). This fund is meant to pay for activities directly related to the safe dismantling of the power plant and reducing radiation levels, not community events.
Federal regulations define decommissioning as the process of safely removing a facility or site from service and reducing residual radioactivity to a level that allows for either unrestricted use of the property or release under restricted conditions, ultimately leading to the termination of the license.
The NRC’s violation notice states that Holtec’s misuse of the funds happened between March 2020 and June 2023.
Holtec has the option to file an appeal against the violation, with the NRC stating that further enforcement action may be taken depending on the company’s response.
In response to a request for comment, Patrick O’Brien, Holtec’s Director of Government Affairs and Communications sent a written statement.
“We take our responsibility as watchful stewards of the trust fund very seriously,” O’Brien wrote. “We are also deeply committed to our local communities we serve as part of the decommissioning process.”
“It is in that spirit as a strong community partner that these charitable expenditures were made, as part of our regular community outreach and engagement activities,” continued O’Brien. “We take any violation very seriously and have already taken corrective actions to ensure the amount was restored to the trust fund, with interest, and that this issue does not recur with our future community and charitable contributions.”
Holtec has set a tentative completion date of 2029 for the decommissioning of Oyster Creek. (Photo by Stephanie Faughnan)
The NRC completed its inspection of the now shut down nuclear plant on December 31, 2023, and related its finding to Jeffrey Dostal, Site Vice President on January 25, 2024. Despite the misuse of funds resulting in the Severity Level IV violation, there were positive aspects noted by federal authorities.
Inspectors conducted a thorough review of various aspects related to decommissioning activities, including problem resolution, occupational radiation exposure, radioactive waste management, environmental monitoring, and security measures. They observed that Oyster Creek continued decommissioning and dismantlement activities, maintaining adequate material conditions and housekeeping standards.
The inspection revealed that workers were knowledgeable about plant procedures, adhered to safety protocols, and underwent regular training. Radiation protection staff effectively controlled work activities, and instrumentation was found to be in calibration and working condition. Effluent releases and environmental monitoring were conducted in compliance with regulatory requirements, with calculated doses below specified criteria.
Additionally, inspectors verified proper storage, monitoring, and transportation of radioactive waste, ensuring compliance with applicable regulations. The licensee’s security program was found to be sufficient for detecting unauthorized access and initiating appropriate response in a timely manner.
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