Kairos Power, LLC; Hermes 2; Environmental Assessment, Finding of No Significant Impact, and Exemptions

SUPPLEMENTARY INFORMATION:

I. Introduction

On July 14, 2023, Kairos submitted, pursuant to part 50 of title 10 of the Code of Federal Regulations (10 CFR), “Domestic Licensing of Production and Utilization Facilities,” a CP application for the Hermes 2 test reactor facility (a “testing facility” as defined in 10 CFR 50.2, “Definitions”). The application included an environmental report (ER), as required by 10 CFR 50.30(f). On September 11, 2023, the NRC staff determined that the application was acceptable for docketing under Docket Nos. 50-611 and 50-612 (88 FR 63632). If approved, the Hermes 2 test reactor facility would be located in Oak Ridge, Tennessee, and would contain two fluoride-salt cooled, high-temperature reactors that use solid tri-structural isotropic fuel in pebble form, intermediate liquid-sodium loops, and a common power conversion unit. The facility would be collocated on the same site as the Hermes 1 test reactor, which was approved for construction on December 14, 2023. The staff issued the EIS for the Kairos Hermes 1 CP application in August 2023, which determined that the action would result in SMALL ( i.e., not detectable or so minor that they will neither destabilize nor noticeably alter any important attribute of an environmental resource) impacts for all resource areas.

Section 104 of the Atomic Energy Act of 1954, as amended, and its implementing regulations authorize the NRC to issue CPs for testing facilities. To issue a CP, the NRC is required to consider the environmental impacts of the proposed action under NEPA. The NRC's environmental protection regulations that implement NEPA in 10 CFR part 51 identify actions for which the NRC prepares an EIS. CPs for test reactors are an action identified as requiring an EIS.

However, based on a review of the ER submitted as part of the CP application for Hermes 2 and the results of the EIS issued for Hermes 1, the NRC staff concluded that it would be prudent to first prepare a draft EA to determine whether preparation of an EIS would be necessary or whether a FONSI could be issued for the Hermes 2 CP based on factors unique to the Hermes 2 CP application. These factors include: (1) the similar design of Hermes 2 and Hermes 1, (2) the proposed siting of Hermes 2 within a few hundred feet of Hermes 1, (3) the industrial nature and heavy prior disturbance of the site, (4) the recent thorough NEPA review performed by the staff as published in its EIS for Hermes 1, and (5) the staff's final EIS for Hermes 1 covering the same site as Hermes 2 and documenting all impacts as SMALL.

The NRC staff prepared a draft EA for the Hermes 2 CP application in accordance with the requirements in 10 CFR 51.30, “Environmental assessment.” In the draft EA, the NRC staff analyzed the environmental impacts of the CP application and alternatives, as appropriate, and concluded “that the potential impacts from Hermes 2 would be SMALL for each potentially affected environmental resource.” Based on these results, the NRC staff prepared a draft FONSI for public review and comment in accordance with 10 CFR 51.33, “Draft finding of no significant impact; distribution.” The draft FONSI stated that “the NRC staff has preliminarily determined that the proposed action would not have a significant effect on the quality of the human environment.” The NRC staff issued the draft EA and draft FONSI in the Federal Register and offered a 30-day public comment period (89 FR 32462).

After appropriate consideration of the public comments, the NRC staff finalized the EA for the Hermes 2 CP application, which is summarized in Section II of this document. Based on this final EA and in accordance with 10 CFR 51.31(a), “Determinations based on environmental assessment,” the NRC has determined that preparation of an EIS is not necessary for the Hermes 2 CP application and has prepared a FONSI in accordance with 10 CFR 51.32, “Finding of no significant impact.” The FONSI is detailed in Section III of this document.

As described in Section V of this document, the NRC staff determined that exemptions from the regulations in 10 CFR 51.20(b)(1), 10 CFR 51.25, and 10 CFR 51.75(a) are necessary to issue a final EA and FONSI instead of an EIS to meet the staff's obligations under NEPA and the NRC's regulations for the environmental review of the Hermes 2 CP application. Pursuant to 10 CFR 51.6, the NRC staff concluded that the exemptions are authorized by law and otherwise in the public interest. Accordingly, the NRC staff is granting exemptions from the requirements in 10 CFR 51.20(b)(1), 10 CFR 51.25, and 10 CFR 51.75(a). The exemptions are discussed in Section V of this document.

II. Summary of Environmental Assessment

Description of the Proposed Action and Need

The proposed action is for the NRC to issue CPs to Kairos authorizing construction of the two proposed Hermes 2 reactors. The NRC issuance of CPs would constitute authorization for Kairos to proceed with the construction of the two Hermes 2 fluoride salt-cooled test reactors at a site within the East Tennessee Technology Park in Oak Ridge, Tennessee. The proposed action also includes the granting of exemptions from the requirements in 10 CFR 51.20(b)(1), 10 CFR 51.25, and 10 CFR 51.75(a).

The issuance of a CP is a separate licensing action from the issuance of an operating license (OL). If the NRC issues CPs for Hermes 2 and Kairos were to seek NRC approval to operate Hermes 2, then Kairos would have to submit a separate application for OLs pursuant to the NRC's regulations, and Kairos would have to obtain NRC approval before it could operate the Hermes 2 test reactors. The NRC staff would review any application for an OL for Hermes 2 for new and significant information related to the environmental impacts of operating and decommissioning Hermes 2 that might alter the staff's conclusions made in the EA for the CP application.

The need for Hermes 2 is to demonstrate key elements of the Kairos Power Fluoride Salt-Cooled, High Temperature Reactor technology for possible future commercial deployment. The technology is an advanced nuclear reactor technology that leverages tri-structural isotropic particle fuel in pebble form combined with a low-pressure fluoride salt coolant. Hermes 2 would support Kairos's reactor development program, which relies on learning and risk reduction by narrowing the design space through progressive test cycles. Construction and operation of Hermes 2 also would provide validation and qualification data to support potential future commercial reactors using the Kairos Power Fluoride Salt-Cooled, High Temperature Reactor technology.

Environmental Impacts of the Proposed Action

In the final EA, the NRC staff assessed the potential direct and indirect environmental impacts from the proposed action associated with the following relevant resource areas: land use and visual resources; air quality and noise; hydrogeology and water resources; ecological resources; historic and cultural resources; socioeconomics and environmental justice; human health; nonradiological waste management; uranium fuel cycle and radiological waste management; transportation of radioactive material; and postulated accidents. The NRC staff also considered the cumulative impacts from past, present, and reasonably foreseeable future actions when combined with the proposed action.

In the final EA, the NRC staff determined that the environmental impacts of the proposed action would be SMALL for each potentially affected environmental resource, meaning that the environmental effects are not detectable or are so minor that they will neither destabilize nor noticeably alter any important attribute of the resource. In addition, the NRC staff determined that the projected effects of climate change would not alter any of the impact determinations described in the EA. Furthermore, the NRC staff found that there would be no significant cumulative impact to any resource area from the proposed action when added to other past, present, and reasonably foreseeable future actions. The NRC staff also determined that there would be no additional environmental impacts resulting from the issuance of the exemptions.

Environmental Impacts of the Alternatives to the Proposed Action

The NRC staff identified a range of reasonable alternatives to the proposed action and the environmental impacts of the alternatives as appropriate. The NRC staff identified and analyzed the reasonable alternatives to authorizing the exemptions as well. The NRC staff determined that there are no alternatives that meet the purpose and need for the proposed action and exemptions that are environmentally preferrable to the proposed action and exemptions.

III. Finding of No Significant Impact

The proposed action before the NRC is whether to issue CPs (one for each unit) to Kairos to authorize construction of the two proposed reactors making up the Hermes 2 project. The proposed action also includes whether to grant exemptions from the requirements in 10 CFR 51.20(b)(1), 10 CFR 51.25, and 10 CFR 51.75(a). The NRC has conducted an environmental review of the Kairos application for the CPs for the Hermes 2 project as well as the proposed exemptions and prepared an EA. This FONSI incorporates by reference the EA summarized in Section II of this notice and referenced in Section IV of this notice. Based on the NRC staff's determinations in the EA that the environmental impacts would be SMALL for each potentially affected resource area and there would be no additional environmental impacts resulting from the issuance of the exemptions, the NRC staff has determined, after consideration of public comments, that the proposed action would not have a significant effect on the quality of the human environment. Accordingly, the NRC staff has made a determination that preparation of an EIS is not required for the proposed action and that a FONSI is warranted. This finding and the related environmental documents referenced throughout the EA are available for public inspection as discussed in the EA and Section IV of this notice.

IV. Availability of Documents

The EA, FONSI, and other related documents are accessible online in the ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. The documents identified in the following table are available to interested persons through ADAMS, as indicated.