Holtec, an energy industry supplier with ties to New Jersey politics, was cited by the Nuclear Regulatory Commission Thursday for improperly spending $62,000 from a decommissioning trust fund as it continues taking apart the site.
It’s the fourth time Holtec has been cited by regulators for issues related to the decommissioning since taking over the power plant in 2019.
A spokeswoman for the Nuclear Regulatory Commission — a federal agency which issued the civil penalties — said the most recent violation was discovered during a routine inspection at the Oyster Creek nuclear plant.
“The NRC staff found that the company used the decommissioning trust fund for expenses that were not legitimate decommissioning activities — about $62,000 was used for a number of community outreach activities,” said Diane Screnci, an agency spokeswoman.
The company said it spent the money on “charitable expenditures” and has already taken steps to pay back the trust fund.
The Nuclear Regulatory Commission specifies that decommissioning trust funds can only be used for removing a facility from service and reducing residual radioactivity to a level that permits release of the property.
“We take our responsibility as watchful stewards of the trust fund very seriously. We are also deeply committed to our local communities we serve as part of the decommissioning process,” Patrick O’Brien, a spokesman for Holtec International, said Friday.
“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,” O’Brien said.
“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,” O’Brien said.
Holtec has been issued violations four times since taking over the plant in July 2019. The company was fined $150,000 in December 2021 and $50,000 in January 2022 — both for security-related issues. Holtec was issued its third citation in November for improperly shipping radioactive materials out of state.
The nation’s oldest nuclear plant, Oyster Creek Generating Station in Lacey Township shut down in September 2018 by mutual agreement with the state.
It was purchased by Holtec in July 2019 and immediately entered the decommissioning process. The decommissioning of nuclear facilities involves safely removing residual materials and reducing radioactivity to a level that permits the license to be terminated, with the property released either for unrestricted use or under specified restricted conditions.
Oyster Creek’s Nuclear Decommissioning Trust Fund to complete the decommissioning on time.
The license at Oyster Creek nuclear plant is expected to expire in 2029, according the Nuclear Regulatory Commission website.
Holtec has close ties to South Jersey Democratic power broker George E. Norcorss III, who sits on its board and had been a focus of a long-running investigation by a special governor’s task force into how millions in state tax incentives were awarded — including those that went to Holtec.
In January, an investigation by a special anti-corruption unit within the state Attorney General’s office led to a $5 million settlement after Holtec was accused of attempting to game the system in its efforts to get a substantial tax break for its investment in a tech startup.
The company was also cited in a 2019 investigation into wide-ranging abuses of the state’s economic incentive programs, after receiving one of the biggest tax breaks ever awarded by the New Jersey Economic Development Authority.
Nobody knows Jersey better than N.J.com. Sign up to get breaking news alerts straight to your inbox.
Jackie Roman may be reached at jroman@njadvancemedia.com.
Read More: Firm taking apart old N.J. nuclear plant misused $62K, must pay it back, feds