ML24262A084

License Amendment Request for American Centrifuge Operating, LLCs License Application and Supporting Documents for the American Centrifuge Plant

ML24262A084
Person / Time
Site:	07007004
Issue date:	09/12/2024
From:	Karen Fitch American Centrifuge Operating
To:	John Lubinski Office of Nuclear Material Safety and Safeguards
References
ACO 24-0070
Download: ML24262A084 (1)

Text

Ame entrifug rating September 12, 2024 ACO 24-0070 CUI// SP-EXPT I SP-SRI / PRO PIN // NOFORN Security-Related Information - Withhold Under 10 CFR 2.390 Export Controlled Information and Proprietary fnformation ATTN: Document Control Desk John W. Lubinski, Director Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 American Centrifuge Plant; Docket Number 70-7004; License Number SNM-2011 License Amendment Request for American Centrifuge Operating, LLC's License Application and Supporting Documents for the American Centrifuge Plant INFORMATION TRANSMITTED HEREWITH IS PROTECTED FROM PUBLIC DISCLOSURE AS SECURITY-RELATED INFORMATION PURSUANT TO 10 CFR 2.390AND AS EXPORT CONTROLLED INFORMATION PUSUANT TO 10 CFR PART 810

Dear John Lubinski:

In accordance with 10 Code of Federal Regulations (CFR) 70.34 and 70.65, the purpose of this letter is to request the U.S. Nuclear Regulatory Commission (NRC) to review and approve the proposed amendment for American Centrifuge Operating, LLC's (ACO) License Application and Supporting Documents for the American Centrifuge Plant (ACP) in Piketon, Ohio, along with the associated NRC Materials License SNM-2011. provides a detailed description, justification, and ACO's significance determination for the proposed changes. Enclosure 2 provides the public releasable proposed changes to NRC's Materials License SNM-2011 for the American Centrifuge Plant. provides the proposed changes to LA-3605-0001, License Application for the American Centrifuge Plant. provides the proposed changes to LA-3605-0002, Environmental Report for the American Centrifuge Plant. provides the proposed changes to LA-3605~0003, Integrated Safety Analysis Summary for the American Centrifuge Plant. Enclosure 6 provides the Document/matter transmitted contains CUI// SP-EXPT /SP-SRI/ PROPIN // NOFORN Security-Related Information - Withhold Under 10 CFR 2.390 Export Controlled Information and Proprietary Information When separated from Enclosures 5, 6, 7, and 8, this cover letter and Enclosures 1, 2, 3, 4, and 9 are uncontrolled.

S S Z D American Centrifuge Operating, LLC

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3930 U.S. Route 23 South - P.O. Box 628 C

Piketon, OH 45661

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CUI// SP-EXPT /SP-SRI/ PROPIN // NOFORN Security-Related Information - Withhold Under IO CFR 2.390 Export Controlled Information and Proprietary Information John W. Lubinski September 12, 2024 ACO 24-0070, Page 2 proposed changes to NR-3605-0005, Fundamental Nuclear Material Control Plan for the American Centrifuge Plant. Enclosure 7 provides the proposed changes to SP-3605-0041, Security Plan for the Protection of Classified Matter at the American Centrifuge Plant. Enclosure 8 provides the proposed changes to SP-3605-0042, Security Plan for the Physical Protection of Special Nuclear Material at the American Centrifuge Plant.

Proposed changes from the previously NRC-approved documents are noted with revision bars in the right-hand margin.

Enclosures 5, 6, 7, and 8 contain Controlled Unclassified Information and Security-Related Information. Additionally, Enclosures 5 and 6 contain Proprietary Information. Therefore, ACO requests these enclosures be withheld from public disclosure pursuant to 10 CFR 2.390(d)(l). An affidavit required by 10 CFR 2.390(b)(l)(ii) is provided as Enclosure 9 of this letter. Additionally, Enclosures 5, 6, and 7 have been determined, in accordance with the guidance provided by the U.S. Department of Energy, to contain Export Controlled Information and must be protected from disclosure per the requirements of 10 CFR Part 810.

After the NRC staff has had an opportunity to review the enclosures, ACO is available to support a discussion with the NRC to address questions or clarify issues. ACO respectfully requests NRC complete their review and final approval on or before November 7, 2024, to support continued HALEU operations under the DOE HALEU contract.

If you have any questions regarding this matter, please contact me at (740) 897-3859.

Enclosures:

As stated Sincerely,

~l~-IJ Kelly L. Fitch Regulatory Manager Document/matter transmitted contains CUI// SP-EXPT /SP-SRI/ PROPIN // NOFORN Security-Related Information - Withhold Under 10 CFR 2.390 Export Controlled Information and Proprietary Information When separated from Enclosures 5, 6, 7, and 8, this cover letter and Enclosures 1, 2, 3, 4, and 9 are uncontrolled.

CUI // SP-EXPT /SP-SRI/ PROPIN // NOFORN Security-Related Information - Withhold Under 10 CFR 2.390 Export Controlled Information and Proprietary Information John W. Lubinski September 12, 2024 ACO 24-0070, Page 3 cc (without Enclosures, unless otherwise noted):

S. Bazian, NRC HQ (Enclosures)

C. Blanton, DOE D. Brown, DOE Idaho (Enclosures)

J. Burns, DOE Idaho (Enclosures)

Y. Faraz, NRC HQ (Enclosures)

A. Ford, DOE Idaho J. Hutson, Contractor J. Lingard, DOE Idaho L. Pitts, NRC Region II (Enclosures)

M. Reim, DOE-NE R. Ruppert, NRC HQ (Enclosures)

D. Woodyatt, NRC HQ (Enclosures)

Document/matter transmitted contains CUI// SP-EXPT /SP-SRI/ PROPIN // NOFORN Security-Related Information - Withhold Under 10 CFR 2.390 Export Controlled Information and Proprietary Information When separated from Enclosures 5, 6, 7, and 8, this cover letter and Enclosures 1, 2, 3, 4, and 9 are uncontrolled.

of ACO 24-0070 Affidavit Information Contained Within Does Not Contain Export Controlled Information Reviewing Official:

Lori Hawk, ACO Date:

09/ 10/2024

AFFIDAVIT OF LARRY B. CUTLIP SUPPORTING APPLICATION TO WITHHOLD FROM PUBLIC DISCLOSURE CERTAIN INFORMATION PROVIDED TO NRC IN LETTER ACO 24-0070 I, Larry B. Cutlip, of American Centrifuge Operating, LLC (ACO), having been duly sworn, do herby affirm and state:

1. I have been authorized by ACO to (a) review the information owned by ACO which is referenced herein relating to ACO's License Amendment Request for the American Centrifuge Plant (ACP) (NRC Materials License SNM-2011) as the described in letter ACO 24-0070, which ACO seeks to have withheld from public disclosure pursuant to section 147 of the Atomic Energy Act (AEA), as amended, 42 U.S.C. § 2167, and 10 CFR 2.390(a)(4), and

9. l 7(a)( 4), and (b) apply for the withholding of such information from public disclosure by the U.S. Nuclear Regulatory Commission (NRC) on behalf of ACO.

2. Consistent with the provisions of 10 CFR 2.390(b)(4) of the Commission's regulations, the following is furnished for consideration by the Commission in determining whether the information sought to be withheld from public disclosure should be withheld.

1.

The information sought to be withheld from public disclosure is owned and has been held in confidence by ACO.

11. The information is of a type customarily held in confidence by ACO and not customarily disclosed to the public. ACO has a rational basis for determining the types of information customarily held in confidence by it and, in that connection, utilizes a system to determine when and whether to hold certain types of information in confidence. The application of that system and the substance of that system constitute ACO policy and provide the rational

basis required. Under that system, information is held in confidence if it falls in one or more of several types, the release of which might result in the loss of an existing or potential competitive advantage, as follows:

a) The information reveals the distinguishing aspects of a process ( or component, structure, tool, method, etc.) where presentation of its use by any of ACO's competitors without license from ACO constitutes a competitive economic advantage over other comparues.

b) It consists of supporting data, including test data, relative to a process ( or component, structure, tool, method, etc.), the application of which data secures a competitive economic advantage (e.g., by optimization or improved marketability).

c) Its use by a competitor would reduce their expenditure of resources or improve their competitive position in the design, manufacture, shipment, installation, assurance of quality, or licensing a similar product.

d) It reveals cost or price information, production capacities, budget levels, or commercial strategies of ACO, its customers or suppliers.

e) It reveals aspects of past, present, or future ACO or customer funded development plans and programs of potential commercial value to ACO.

f) It contains patentable ideas, for which patent protection may be desirable.

g) It reveals information concerning the terms and conditions, work performed, administration, performance under or extension of contracts with its customers or suppliers.

111. There are sound policy reasons behind the ACO system which include the following:

a) The use of such information by ACO gives ACO a competitive advantage over its competitors. It is, therefore, withheld from disclosure to protect the ACO competitive position.

b) It is information, which is marketable in many ways. The extent to which such information is available to competitors diminishes ACO's ability to sell products and services involving the use of the information.

c) Use by our competitors would put ACO at a competitive disadvantage by reducing their expenditure of resources at ACO expense.

d) Each component of proprietary information pertinent to a particular competitive advantage is potentially as valuable as the total competitive advantage. If competitors acquire components or proprietary information, any one component may be the key to the entire puzzle, thereby depriving ACO of a competitive advantage.

e) Unrestricted disclosure would jeopardize the position of prominence of ACO in the world market, and thereby give a market advantage to the competition of those countries.

f) The ACO capacity to invest corporate assets in research and development depends upon the success in obtaining and maintaining a competitive advantage.

iv. The information is being transmitted to the Commission in confidence and, under the provisions of 10 CFR Section 2.390, it is to be received in confidence by the Commission.

v. The information sought to be protected is not available in public sources or available information has not been previously employed in the same original manner or method to the best of our knowledge and belief.

3. The proprietary information sought to be withheld is contained within Enclosures 5 and 6 of letter ACO 24-0070. Enclosure 5 provides proposed changes to LA-3605-0003, Integrated Safety Analysis Summary for the American Centrifuge Plant. This enclosure provides detailed descriptions, diagrams, and process related information to the deployment of ACO's high-assay low enriched uranium (HALEU) enrichment Plant; therefore, determined to be proprietary. Public disclosure of this proprietary information is likely to cause substantial harm to the competitive position of ACO because it may enhance the ability of competitors to position and provide similar products.

Additionally, Enclosure 6 provides proposed changes to NR-3605-0005, Fundamental Nuclear Material Control Plan for the American Centrifuge Plant. This enclosure provides the details of the Nuclear Material Control and Accountability (NMC&A) Program needed for the deployment of ACO's ACP and the HALEU operating cascade; therefore, determined to be proprietary.

Public disclosure of this proprietary information is likely to cause substantial harm to the competitive position of ACO because it may enhance the ability of competitors to position and provide similar products. Moreover, disclosure of this information may provide insights into the design of ACO's American Centrifuge technology, including structures, systems, and components categorized as Controlled Unclassified Information, Security-Related Information, and Export Controlled Information.

Further, this information has substantial commercial value as follows:

The development of the information described in part is the result of applying many hundreds of person-hours and the expenditure of thousands of dollars on design and analysis activities to achieve the information that is sought to be withheld; and In order for a competitor of ACO to duplicate the information sought to be withheld, a similar process would have to be undertaken and a significant effort and resources would have to be expended.

Further the deponent sayeth not.

Larry B. Cutlip, having been duly sworn, hereby confinns that I am the President of American Centrifuge Operating, LLC, that I am authorized on behalf of ACO to review the information attached hereto and to sign and file with the U.S. Nuclear Regulatory Commission this affidavit and the attachments hereto, and that the statements made and matters set forth herein are true and correct to the best of my knowledge, information, and belief.

On this 12th day of September 2024, Larry B. Cutlip personally appeared before me, is known by me to be the person whose name is subscribed to within the instrument and acknowledged that he executed the same for the purposes therein contained.

In witness hereof I hereunto set my hand and official seal.

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Misty~nd Notary Public, State of Ohio My commission expires January 22, 2029 of ACO 24-0070 Detailed Description, Justification, and Significance Determination Information Contained Within Does Not Contain Export Controlled Information Reviewing Official:

Lori Hawk, ACO Date:

09/11/2024

Detailed Description, Justification, and Significance Determination Detailed Description of Change ACO 24-0070 Page I of 6 American Centrifuge Operating, LLC (ACO) proposes to amend the following licensing documents to allow for the U.S. Department of Energy's (DOE) planned extension of Phase II of the High-Assay Low-Enriched Uranium (HALEU) Operations contract through June 30, 2025:

Material License SNM-2011 for the ACP, specifically Condition 15 LA-3605-0001, License Application for the American Centrifuge Plant, Sections 1.1.8.1, 1.2.2, and 1.2.5 LA-3605-0002, Environmental Reportfor the American Centrifuge Plant, Section 1.0.2 LA-3605-0003, Integrated Safety Analysis Summary for the American Centrifuge Plant, Section 3.1 NR-3605-0005, Fundamental Nuclear Material Control Plan for the American Centrifuge Plant, Section 1. 1 SP-3605-0041, Security Plan for the Protection of Classified Matter at the American Centrifuge Plant, Section 1.2.2 SP-3605-0042, Security Plan for the Physical Protection of Special Nuclear Material at the American Centrifuge Plant, Section 1.0 The proposed changes contained within Enclosures 2 through 8 are identified by the following method:

Blue Strikeout - Identifies text to be removed Red underline - Identifies text to be added Justification In accordance with 10 Code of Federal Regulations (CFR) 70.34 and 70.65, the proposed changes discussed above require the NRC's prior review and approval. The proposed changes remove the specific infom1ation tied to the end date of December 31, 2024, to simply describe Phase II in more general terms. This allows the DOE to make modifications to the current HALEU Operations contract within the bounds of the NRC Materials License. No changes are being proposed to the discussion of the Gas Centrifuge Enrichment Plant (GCEP) Lease Agreement term of December 31, 2025.

Additionally, there are no changes being proposed to the currently described HALEU cascade design, process descriptions, or operation of the 16-centrifuge cascade; nor an increase in the HALEU possession limits currently approved within the NRC's Materials License SNM-2011.

Furthermore, no changes are warranted under the American Centrifuge Lead Cascade Facility (Lead Cascade Facility) license application and supporting documents which are pending the NRC's final approval to terminate the associated Materials License SNM-7003.

ACO 24-0070 Page 2 of6 This amendment request is centered around the extension of the Phase II operating period through June 30, 2025. Therefore, the proposed changes will not alter the design or performance of an item or activity as described in the Integrated Safety Analysis (ISA) Summary, or LA-3605-0003A, Addendum 1 of the Integrated Safety Analysis Summary for the American Centrifuge Plant

- HALEU Demonstration. Likewise, the proposed changes will not: 1) decrease the level of the design basis as described in the ACP License Application; 2) result in a departure from a method of evaluation described in the ACP License Application used in establishing the design bases; 3) result in a degradation in safety; or 4) affect compliance with applicable regulatory requirements.

The proposed changes will not decrease the ability of the management measures in the License Application to ensure the availability and reliability of IROFS. The proposed changes do not decrease the effectiveness of the design basis as described in the License Application. The proposed changes do not result in a departure from a method of evaluation described in the License Application used in establishing the design bases for the evaluation of HALEU Demonstration Criticality Events; therefore, this results in no degradation of safety. Lastly, the proposed changes do not have an adverse effect on compliance with applicable regulatory requirements.

Completion of Phases I and II are considered the base contract. After completion of the base contract, the contract allows DOE to enter Phase III, which could exercise up to three three-year option periods at a minimum production level of 900 kilograms per year. Annual Congressional appropriations will inform the duration of the contract based on the availability of funding. ACO would amend the license application and applicable supporting documents to allow continued operation of this HALEU cascade with increased possession limits for the requested extended period of operation for Phase III described above.

Financial Qualifications and Decommissioning Liability No changes are being made to the DOE HALEU Operations contract terms nor the GCEP Lease Agreement related to financial and decommissioning liability. DOE is expected to continue to amend the GCEP Lease in support of the continuation of the HALEU Operations Contract. The DOE will continue to assume all liabilities for the decontamination and decommissioning of the facilities and equipment installed, and any work performed, under the HALEU Operations Contract with the DOE including any materials or environmental hazards on the site. No financial assurance for any liability or lease turnover conditions shall be required by the Licensee. Likewise, any liabilities of the Licensee arising from or incident to the performance of work under the HALEU Operations Contract with the DOE shall be governed solely by such contract and any financial protection afforded to the Licensee as a person indemnified under the Act. ACO is conditioned by Materials License SNM-2011, specifically Condition 23, to provide the NRC a copy of any modifications to the GCEP lease within 30-days of the modification being signed.

Environmental Impact Determination ACO believes that this proposed amendment is eligible for categorical exclusion under the criterion of 10 CFR 51.22( c ); thereby, not requiring an environmental review.

Specifically, 10 CFR 51.22(c)(ll) is a categorical exclusion for issuance of amendments to ACO 24-0070 Page 3 of 6 licenses for fuel cycle plants and radioactive waste disposal sites and amendments to materials licenses identified in Section 5 l.60(b )( 1) which are administrative, organizational, or procedural in nature, or which result in a change in process operations or equipment, provided that:

(i) there is no significant change in the types or significant increase in the amounts of any effluents that may be released offsite, (ii) there is no significant increase in individual or cumulative occupational radiation exposure, (iii) there is no significant construction impact, and (iv) there is no significant increase in the potential for or consequences from radiological accidents.

On June 4, 2021, the NRC issued the Environmental Assessment for the Proposed Amendment of US. Nuclear Regulatory Commission License Number SNM-2011 for the American Centrifuge in Piketon, Ohio (ADAMS Accession No. ML21085A705), which provided for the conclusion and finding of no significant impact (FONSI) for the HALEU Demonstration program. The basis for this FONSI was the proposed action was not expected to result in new construction, and that the HALEU cascade would be assembled and operated in existing buildings that previously housed a similar system under the Lead Cascade Facility license. The proposed changes being requested are administrative in nature allowing the DOE to extend the HALEU Operations Phase II end date to June 30, 2025; therefore, ACO believes that the basis remains unchanged.

Additionally, during the completion of the Environmental Assessment, NRC staff took into consideration the environmental impacts of operation beyond the contract expiration date of May 31, 2022, specifically anticipated license extensions of up to 10 years. This proposed extension of Phase II would not result in any significant impact on the demography, socioeconomics, and environmental justice; public and occupational health and safety; non-radiological impacts from normal operations; radiological impacts from normal operations; impacts from accidents; waste management; transportation; or cumulative impacts.

There are no changes to the currently authorized possession limit under Phase II.

Therefore, ACO believes the environmental assessment remains valid as written and bounds the extension of Phase II operations up to the currently NRC-authorized possession limits defined within Table 1.2-2 of the license application (LA-3605-0001) and the NRC Materials License (SNM-2011).

Based upon knowledge of the previous American Centrifuge Lead Cascade Facility operations waste streams, ACO conservatively estimates 400 cubic feet of radiological waste to be generated per quarter during the HALEU base operations (Phases I and II). The only foreseen increase in waste would be realized from longer operating periods. This radiological waste estimate does not take into consideration any potential decontamination or decommissioning of centrifuges, service modules, or other parts of the process as this is the responsibility of the DOE. Based upon the facts discussed above, ACO believes the environmental assessment remains valid as written and bounds the base contract operations (Phases I and II) through June 30, 2025.

Additionally, the NRC's June 2021 Safety Evaluation Report for the HALEU Demonstration stated in part, "if ACO desires to expand the scope of operation of the HALEU Demonstration Program beyond the description in the revised license application or extend operations, it will need to reassess the need for an Emergency Plan." ACO has reassessed the need for an emergency plan and determined that the technical basis provided within DAC-3901-0005, Evaluation of No Need ACO 24-0070 Page 4 of6 for an Emergency Plan for the HALEU Demonstration, remains applicable for this amendment request.

Significance Determination for Proposed Conforming Changes The proposed changes being requested are administrative in nature allowing the DOE to extend the HALED Operations Phase II end date to June 30, 2025, with no changes requested to the NRC-authorized possession limits defined within Table 1.2-2 of the license application (LA-3605-0001 ).

ACO has reviewed the proposed changes and provides the following Significance Determination.

1. No significant change to any conditions to the License.

The proposed changes are not prohibited by 10 CFR Part 70, license condition, or order.

However, Materials License Condition 15 is being modified to remove the expiration date of the DOE's HALED Demonstration contract. This will allow Condition 15 to stay in lock step with the DOE's currently approved HALED contract terms. Condition 16 continues to carry the December 31, 2025, end date of the current GCEP lease agreement.

2. No significant increase in the probability of occurrence or consequences of previously evaluated accidents.

The proposed changes do not remove or change an IROFS that is listed in the ACP Integrated Safety Analysis (ISA) Summary or Addendum 1. The proposed changes do not alter any IROFS listed in the ISA Summary or Addendum 1, that is the sole item preventing or mitigating an accident sequence that exceeds the performance requirements of 10 CFR 70.61.

3. No new or different type of accident.

The proposed changes do not create new types of accident sequences that, unless mitigated or prevented, would exceed the performance requirements of 10 CFR 70.61 and that have not previously been described in the ISA Summary/Addendum 1. The original accident analysis assumed 10 years of HALED operations; therefore, the HALED cascade operations continuing under Phase II, up to the currently NRC-approved possession limits defined within Table 1.2-2 of the license application (LA-3605-0001) and the NRC Materials License (SNM-2011), is bound by the existing analyses and no technical changes are warranted.

4. No significant reduction in the margins of safety.

The proposed changes do not decrease the margin of safety associated with any IROFS being credited to ensure the performance requirements of 10 CFR 70.61 are met.

5. No significant decrease in the effectiveness of any programs or plans contained in the licensing documents.

The proposed changes to the Piketon security plans SP-3605-0041 and SP-3605-0042 are ACO 24-0070 Page 5 of6 administrative in nature to generalize the discussion of Phase II to allow for DOE to extend current operations through June 30, 2025 under the HALEU Operations contract. The proposed changes do not affect the tracking, protection ofSNM in transit, or documentation of processes or transfers as described within the Transportation Security Plan. Likewise, no transportation of SNM will occur under the existing scope of the DOE HALEU Operations contract.

ACO continues to operate under an NRC-approved security plan, SP-3605-0041, that includes protecting technology and information up to secret restricted data. No changes are being made to the Security Plans at Bethesda, MD or Oak Ridge, TN. The proposed changes will not decrease the overall level of security performance needed to protect against the loss or compromise of classified matter, while in use or in storage, nor classified matter in transit. The control of classified storage areas or vaults, training of classifiers, documentation of classification of matter, will be maintained at an equivalent level.

Security plan SEC-18-0002, Information System Security Plan (JSSP)for Oak Ridge, TN; Piketon, OH; and Bethesda, MD, provides for the protection of cyber systems, maintaining the necessary computer security requirements at an equivalent level as previously approved by the NRC.

The proposed changes to NR-3605-0005, Fundamental Nuclear Material Control Plan for the American Centrifuge Plant, are administrative in nature to align with the extension of Phase II of the DOE HALEU Operations contract discussed within Section 1.1 and will have no effect on the FNMCP meeting the applicable requirements of 10 CFR Parts 70 and

74. Likewise, the proposed changes do not affect the function or process to control nuclear material as currently described within the FNMCP documentation.

The proposed changes do not result in a decrease in effectiveness of the approved ACP Emergency Plan. For HALEU Demonstration, no Emergency Plan as discussed under 10 CFR 70.22(i) is required. Likewise, the proposed changes will not decrease the abilities of the DOE reservation Responses Organization to mitigate accident consequences or reasonably assure the adequate protection of the health and safety of the off-site and on-site personnel in the event of an emergency.

The proposed changes do not result in a change to the Quality Assurance Program Description; thereby, do not represent a relaxation of a requirement of Quality Assurance Program Description.

Based on the above, the proposed changes will not result in a decrease in the effectiveness of the Security Programs/Plans, FNMCP, Emergency Plan, or the Quality Assurance Program Description contained in the licensing documents.

6. The proposed change does not result in undue risk to: 1) public health and safety; 2) common defense and security; and 3) the environment.

The proposed changes do not involve additional quantities of licensed material than originally evaluated for the HALEU Phase II+ amendment and do not change the response to accidents ACO 24-0070 Page 6 of 6 or events associated with licensed material. Phase II activities are currently bound within the possession limits defined within Table 1.2-2 and authorized uses defined within Table 1.2-4 of LA-3605-0001 and NRC Materials License SNM-2011. There will be no generation or increase in hazardous material quantities such that it impacts public health and safety. The proposed changes do not decrease the level of security system performance needed to protect the plant boundary, documentation of patrols, performance ofrounds, or training of protective force personnel; therefore, the previously approved requirements for physical protection of SNM are maintained within SP-3605-0042. The proposed changes will not increase the likelihood classified matter or SNM will be accessible to unauthorized personnel. Therefore, the proposed changes do not result in undue risk to public health and safety, the environment, or to the common defense and security.

7. There is no change in the type or significant increases in the amounts of any effluents that may be released off-site.

The proposed changes do not result in any new or unusual sources of hazardous substances, hazardous waste, or new waste streams that could be generated or used in unacceptable levels that exceed applicable regulatory requirements because of the proposed changes. In addition, there is no change in the type or significant increases in the amounts of any effluents that may be released off-site.

8. There is no significant increase in individual or cumulative occupational radiation exposure.

DAC-3901-0005, Evaluation of No Need for an Emergency Plan for the HALEU Demonstration, provided the evaluation stipulated in 10 CFR 70.22(i)(l )(i) to demonstrate that no Emergency Plan was required for the HALEU Demonstration Program. The evaluation showed that the maximum dose to a member of the public off site due to a release of radioactive materials would not exceed 1 rem effective dose equivalent or an intake of 2 mg of soluble U.

Therefore, the proposed changes will not increase radiological or chemical releases beyond applicable regulatory limits (10 CFR 70.61) and will not create any new or unusual sources of radioactive waste. Likewise, the proposed changes will not result in any increase in individual or cumulative occupational radiation exposure.

9. There is no significant construction impact.

Normal HALEU cascade operations and associated maintenance activities continue through the end of Phase II of the DOE HALEU contract.

Currently there are no foreseen environmental concerns based upon the fact that the HALEU cascade was constructed within leased buildings used during the operations of the previous American Centrifuge Lead Cascade Facility; however, on a much smaller scale. Additionally, there are no new construction efforts planned for the extension of time for Phase II continued operations.

of ACO 24-0070 Proposed Changes for NRC Materials License SNM-2011 for the American Centrifuge Plant Information Contained Within Does Not Contain Export Controlled Information Reviewing Official:

Lori Hawk, ACO Date:

09/09/2024

NRCFORM 374

!FOR INFORMATION ONLY I U.S. NUCLEAR REGULA TORY COMMISSION MATERIALS LICENSE Page 1 of 12 Pursuant to the Atomic Energy Act of 1954, as amended, the Ener.gy Reorganization Act of 1974 (Public Law 93-438), and Title 10, Code of Federal Regulations, (10 CFR) Chapter I, Parts 11, 30, 31, 32, 33, 34, 35, 36, 39, 40, 70, 73, and 74 and in reliance on statements and representations heretofore made by the licensee, a license is hereby issued authorizing the licensee to receive, acquire, possess, and transfer byproduct, source, and special nuclear material (SNM) designated below; to use such material for the purpose(s) and at the place(s) designated below; to deliver or transfer such material to persons authorized to receive it in accordance with the regulations of the applicable Part(s). This license shall be deemed to contain the conditions specified in section

• 183 of the Atomic Energy Act of 1954, as amended, and is subject to all applicable rules, regulations, and orders of the U.S. Nuclear Regulatory Commission (NRC) now or hereafter in effect and to any conditions specified below.

Licensee

1. American Centrifuge Operating, LLC (ACO)

3. License Number: SNM-2011, Amendment 23

2. American Centrifuge Plant (ACP)

4. Expiration Date: See Condition 13 P.O. Box628

5. Docket No. 70-7004 Piketon, Ohio 45661-0628 Commercial ACP Possession Limits

6. Source, Special Nuclear

7. Chemical and/or Physical

8. Maximum amount that Licensee May Possess at any One Time Material, By-product Material Form Under This License '

A.

Uranium A.1 (natural and depleted}

and daughter products A.2 B.

Uranium enriched in 8.1 isotope U-235 up to 1 O percent by weight and uranium daughters 8.2 C.

Tc-99, transuranic C.

isotopes and other contamination Physical: Solid, Liquid, and Gas Chemical: UFs, UF4, UO2F2, oxides, metal, and other compounds Physical: Solid, Liquid, and Gas Chemical: UFs, UF4, UO2F2, oxides, metal, and other compounds Any A. [Security-Related Information Withheld Under 10 CFR 2.390]

B. [Security-Related Information Withheld Under 10 CFR 2.390)

C. [Security-Related Information Wrthheld Under 1 O CFR 2.390]

Page 7 of 12 U.S. NUCLEAR REGULATORY COMMISSION License Number SNM-2011, Amendment 23 MATERIALS LICENSE Docket or Reference Number SUPPLEMENTARY SHEET 70-7004 11. Introduction of UF6 into any module of the ACP, including the HALEU Demonstration cascade, shall not occur until the Commission completes an operational readiness and management measures verification review to verify that management measures that ensure compliance with the performance requirements of 10 CFR Section 70.61 have been implemented and confirms that the facility has been constructed and will be operated safely and in accordance with the requirements of the license. The licensee shall provide the Commission with 120 days advance notice of its plan to introduce UF6 in any module of the ACP, including the HALEU Demonstration cascade.

12. The licensee is hereby granted the special authorizations and exemptions identified in section 1.2.5 of the ACP license application, dated September 2006, as modified by revisions dated December 2012, and May 2021.

13. This license will expire on April 13, 2037.

14. ACO shall provide to the Commission, at least 120 days prior to the planned date for obtaining licensed material, other than material for the HALEU Demonstration Program, documentation of any liability insurance required to be obtained by ACO under its lease with the U.S. Department of Energy (DOE) for the ACP by that time or, alternatively, the status of ACO's efforts to obtain any such liability insurance. During the time that ACO is engaged in efforts to obtain liability insurance, ACO shall provide the Commission with status reports regarding those efforts. The status reports shall be submitted at a frequency of at least once every six months following issuance of a license. ACO shall notify the Commission within 30 days upon receiving notification of denial or approval of commercial liability insurance for the ACP. If commercial liability insurance is required to be obtained under its lease with DOE, within 60 days of receiving notification of approval of commercial liability insurance, ACO shall provide proof of liability insurance coverage and a justification, for Commission review and approval, if ACO is proposing to provide less than $300 million of liability insurance coverage.

15. Construction of each incremental phase of the ACP shall not commence before funding for that increment is available or committed. Of this funding, ACO must have in place before constructing such increment, commitments for one or more of the following: equity contributions from ACO, affiliates and/or partners, along with lending and/or lease arrangements that solely or cumulatively are sufficient to ensure funding for the particular increment's construction costs. ACO shall make available for NRC inspection, documentation of both the budgeted costs for such phase and the source of funds available or committed to pay those costs.

Operation of the ACP, with the exception of operation of the HALEU demonstration cascade until expiration of DO E's HALEU Demonstration contract en DeeeR'teer a 1, 2Q24, or up to the currently authorized possession limits defined with this Materials License (whichever comes first), shall not commence until the Licensee has in place either: (1) long term contracts lasting five years or more that provide sufficient funding for the estimated cost of operating the facility for the five year period; (2) documentation of the availability of one or more

jFOR INFORMATION ONL y I Page 8 of 12 U.S. NUCLEAR REGULATORY COMMSSION License Number SNM-2011, Amendment 23 MATERIALS LICENSE Docket or Reference Number SUPPLEMENTARY SHEET 70-7004 alternative sources of funds that provide sufficient funding for the estimated cost of operating the facility for five years; or (3) some combination of (1) and (2).

16. ACO shall provide final copies of the proposed financial assurance instruments to NRC for review at least six months prior to the planned date for obtaining licensed material {except for the sealed source and byproduct material calibration sources described in LC 6 and the HALEU demonstration cascade under the lease agreement with DOE ending December 31, 2025), and provide to NRC final executed copies of the reviewed financial assurance instruments prior to the receipt of licensed material (except for the sealed source and byproduct material calibration sources described in LC 6 and the HALEU demonstration cascade under the lease agreement with DOE ending December 31, 2025). The amount of the financial assurance instrument shall be updated to current year dollars and include any applicable changes to the decommissioning cost estimate. The decommissioning cost estimate shall include an update to ACO's Analysis of Depleted Uranium Disposal Costs for the ACP. To develop this update, ACO shall coordinate with DOE to determine necessary changes to the DOE contractor's depleted uranium cost estimate utilized as input to the ACO specific analysis.

17. The initial and subsequent updated Decommissioning Funding Plan (DFP) cost estimates, up to the time of full capacity operations, and revised funding instruments shall be provided annually and shall provide full funding for decontamination and decommissioning of the full-size facility, except:

(1) The cost estimate for decontamination and removal of the centrifuges shall be provided on an annual forward-looking basis based on planned incremental enrichment capacity increases; and (2) The cost estimate for depleted uranium byproduct generation shall be provided on a projected annual forward-looking basis. The decommissioning cost estimate shall include an update to ACO's Analysis of Depleted Uranium Disposal Costs for the ACP.

To develop this update, ACO shall coordinate with DOE to determine necessary changes to the DOE contractor's depleted uranium cost estimate utilized as input to the ACO specific analysis.

Once full capacity operation is achieved, the licensee shall provide cost estimates for depleted uranium byproduct generation on an annual forward-looking basis and cost estimates for decontamination and decommissioning the remainder of the facility at intervals not to exceed 3 years, consistent with the requirements of 10 CFR Paragraphs 30.35(e), 40.36(d) and 70.25(e). The DFP cost estimates shall be provided to NRC for review, and subsequently, after resolution of any NRC comments, final executed copies of the financial assurance instruments shall be provided to NRC.

18.

ACO shall utilize its procedure, Item Relied on for Safety (IROFS) Boundary Determination Plan, to define the boundaries of each IROFS. Completed IROFS boundaries for all lROFS shall be available for inspection at the time of the operational readiness review.

of ACO 24-0070 Proposed Changes for LA-3605-0001, License Application for the American Centrifuge Plant Information Contained Within Does Not Contain Export Controlled Information Reviewing Official:

Lori Hawk, ACO Date:

09/09/2024

LA-3605-0001 License Application for the American Centrifuge Plant in Piketon, Ohio Docket No. 70-7004 Proposed Change Information Contained Within Does Not Contain Export Controlled Information Reviewing Official: __

L.c..co_ri_H"--aw-'-k_/ A_Cc....cO __

Date:

09/09/2024 September 2024

FOR INFORMATION ONLY License Application for the American Centrifuge Plant Proposed Change 1.1.7 Roadways September 2024 Two major four-lane highways service the DOE reservation: U.S. Route 23, traversing north-south, and State Route 32/124, traversing east-west.

The reservation is situated approximately three and one half miles from the intersection of U.S. Route 23 and State Route 32/124. There are five major access roads, which connect Perimeter Road to adjoining roads outside the DOE reservation. The major one is the West Access Road (Principal Access Road) from U.S. Route 23, which lies approximately one mile west of Perimeter Road. The North Access Road, which connects to U.S. Route 32 is approximately three miles to the north. The East and South Access Roads connect to secondary county roads. There is also a construction entrance road on the southwest corner of the reservation, which ties into Perimeter Road. This road was used during the original site and facility construction periods. Vehicle traffic access to the Perimeter Road is open to the public but can be shut down as necessary for safety and security concerns, or in support of reservation activities. Service roads throughout the reservation connect to the Perimeter Road with access to the ACP controlled through security portals. The reservation roadways are depicted in Figures 1.1-1 (located in Appendix B) and 1.1-2.

1.1.8 Phased Modular Expansion Plan for the American Centrifuge Plant It is the intent of ACO to deploy portions of the ACP in a modular fashion to accommodate market demand on a scalable, economical gradation. This modular deployment may encompass utilization of cascades of Low Enriched Uranium (LEU) production for LEU customer product or feed material into HALEU cascades. The ratio of LEU cascades to HALEU cascades would be approximately 6 to 1.

1.1.8.1 High Assay Low Enriched Uranium Demonstration The HALEU Demonstration cascade utilizes a similar centrifuge design to that used for the Lead Cascade. The equipment necessary to perform the enrichment process is in the X-3001 Process Building and consists of product and tails withdrawal system, UF6 cylinders, centrifuges, and supporting systems. The product and tails withdrawal systems use three cold boxes. NaF traps are used for additional withdrawal capacity during dumping. A 30B UF6 cylinder is used for the feed material. Centrifuges and supporting units are placed in the Train 3 area of the X-3001 building. For further plant and process specifics related to the HALEU Demonstration Program, refer to LA-3605-0003A, Addendum I of the Integrated Safety Analysis for the American Centrifuge Plant - HALEU Demonstration (Reference 7).

In support of this HALEU Demonstration Program and NRC Materials License (SNM-2011) Condition 23, DOE amended (Amendment 1) the Appendix I Lease Agreement between the US. Department of Energy and United States Enrichment Corporation for the Gas Centrifuge Enrichment Plant (GCEP Lease Agreement) (Reference 71).

The amended GCEP Lease Agreement renewed and extended the term of the lease through May 31, 2022. The ACO sublease incorporates the terms of the GCEP Lease Agreement. Furthermore, in September 2021, the DOE amended (Amendment 2) the GCEP Lease Agreement to extend the term through December 31, 2025. All other terms of the GCEP Lease as amended by Amendment 1 remained unchanged through the termination or expiration of the current DOE HALEU Demonstration contract period 1-30

License Application for the American Centrifuge Plant Proposed Change September 2024 ending on November 30, 2022. DOE is expected to continue to amend the GCEP Lease in support of the continuation of the HALEU Demonstration cascade.

On November 10, 2022, the DOE announced an approximately $150 million cost-shared award to ACO, the Licensee, to demonstrate the nation's ability to produce HALEU. This award builds on DOE's previous three-year cascade demonstration program with the Licensee to manufacture and demonstration the centrifuge enrichment cascade to produce up to 600 kilograms of HALEU in the form of UF6 for the DOE contract which expires on November 30, 2022.

This new HALEU performance-based contract will have three phases. During Phase I of the new DOE HALEU contract (Reference 74), the Licensee will complete the final steps of centrifuge assembly and clear an operational readiness review (ORR) to start up the demonstration cascade. The Licensee will complete testing once the centrifuges have been installed and process gas (feed material) has been introduced following the required NRC ORRs. Once the HALEU demonstration cascade is operational, the Licensee will begin enriching UF6 gas to produce 19.75 weight (wt.) percent enriched HALEU, meeting the contract requirement for the initial 20 kilograms ofHALEU in the form of UF6. Upon completion of Phase I, ACO plans to continue to produce HALEU under Phase ll of the contract up to the currently NRC-authorized possession limits described in Table 1.2-2 of this license application. Phase II includes production of a minimum 900 kilograms of HALEU to a nominal 19.75 wt. percent 235U *Nithin one calendar year follo*.ving Phase I. This year of production will be utilized to resolve any issues with full scale production. Completion of Phases I and II are considered the Base Contract 1Nhich has a period of performance *which began on November 14, 2022, and continues through December 31, 2024.

1.1.8.2 High Assay Low Enriched Uranium Demonstration Continuation After completion of the Base Contract as described above, the contract allows DOE to enter a Phase III, which would exercise up to three three-year option periods for a combined total of I 0 years of production (Phase II and Ill) at a minimum production level of 900 kilograms per year.

Performance of Phases I and II do not guarantee ACO will be authorized to proceed with the Phase III option periods of production. DOE expects this duration to approach 10 years, including base and all option years, assuming all options are exercised under the DOE contract.

The Licensee would amend the License Application and applicable Supporting Documents to allow continued operation of this HALEU cascade with increased possession limits for the requested extended period of operation. ACO's financial assurance and decommissioning liability would be established in accordance with the requirements of 10 CFR 70.38, 40.42, and 30.36 and submitted as part of the License Amendment Request.

This phase would only occur if parties agree to extend the GCEP Lease Agreement in support of ongoing planned Licensee activities. In accordance with Materials License Condition 23, the Licensee would provide a copy of the amended agreement to the NRC. Additionally, the Licensee would notify the NRC if/when a decision is made to transition to this phase seeking approval prior to the implementation of any changes.

1-31

FOR INFORMATION ONLY license Application for the American Centrifuge Plant Proposed Change September 2024 Fluor-BWXT Portsmouth, LLC (FBP) is the DOE contractor for D&D of the GDP. FBP is responsible for the D&D of 415 facilities and structures that supported the uranium enrichment operations conducted at the site. During D&D, Fluor-BWXT prepares contaminated facilities for demolition by deactivating utilities and removing stored waste, materials, process equipment such as converters and compressors, and piping.

The plant also includes various support structures that provide feed and transfer operations and site services such as maintenance; steam generation; cleaning; process heat removal; electrical power distribution; and water supply storage and distribution.

Pixelle Specialty Solutions1M, formerly Glatfelter Specialty Papers, operates a lumberyard on the north edge of the DOE reservation. This facility is utilized as a sorting and transfer area for commercial and paper grade lumber.

1.2.2 Financial Qualifications Under the previous HALEU Contract (Reference 17), DOE agreed to reimburse the Company for 80 percent of its costs incurred in performing the contract. The Company's cost share is the corresponding 20 percent and any costs incurred above these amounts. Costs under the HALEU Contract included program costs, including direct labor and materials and associated indirect costs that are classified as Cost of Sales, and an allocation of corporate costs supporting the program that are classified as Selling, General, and Administrative Expenses. Services provided over the HALEU contract period included constructing and assembling centrifuges and related infrastructure in a cascade formation. When estimates of remaining program costs to be incurred for such an integrated construction-type contract exceed estimates of total revenue to be earned, a provision for the remaining loss on the contract is recorded to Cost of Sales in the period the loss is determined. Our corporate costs supporting the program are recognized as expense as incurred over the duration of the contract term. The accrued loss on the contract will be adjusted over the remaining contract term based on actual results and remaining program cost projections (Reference 22).

On November 10, 2022, the DOE announced an approximately $150 million cost-shared award with ACO, the Licensee, to demonstrate the nation's ability to produce HALEU. This award builds on DOE's previous three-year cascade demonstration program with the Licensee to manufacture and demonstration the centrifuge enrichment cascade to produce up to 600 kilograms of HALEU in the form ofUF6 for the DOE contract which expires on November 30, 2022.

The November 2022 award includes a $30 million cost share during the first year to start up and operate 16 advanced centrifuges in a cascade at ACO's Piketon, Ohio enrichment facility.

This new HALEU performance-based contract (Reference 74) includes cost-shared no-fee contract line-item numbers (CLINs) and cost-plus-incentive-fee CLINs. ACO is responsible for planning, managing, integrating, and executing the work as described in the DOE contract.

Additionally, this performance-based contract will have three phases. Phase I comprising of one CLIN, will be awarded on a cost-reimbursement no-fee basis with a minimum of a 50 percent cost share requirement. Only Phase I shall be priced in accordance with the clause at 1-59

license Application for the American Centrifuge Plant Proposed Change September 2024 Federal Acquisition Regulation (FAR) 52.216.12, Cost-Sharing Contract-No Fee. Phase Il, comprising of one CUN, will be awarded on a cost-plus incentive fee basis, resulting in the first year of HA LEU produetion. Phase III, comprising of three CLINs, will be divided into three three-year contract option periods with each option period structured on a cost-plus incentive fee basis for continued HALEU Production.

The Licensee will perform all Phase I work scope under a cost share, no fee contractual arrangement. The Licensee will be responsible for paying a minimum of 50 percent of the allowable incurred costs during Phase I. DOE will reimburse the Licensee a maximum of 50 percent cost share for the remaining allowable costs incurred during Phase I (the Government's cost share may vary depending upon the agreed upon cost share allocation but will not exceed 50 percent). The Licensee's cost share amount is based on the agreed upon cost share percentage of allowable incurred costs, as defined in FAR part 31, with the remaining allowable costs eligible for reimbursement under the DOE contract. Centrus' Annual Report on Form 10-K, filing date of March 11, 2022, for the fiscal year ended December 31, 2021, provides the Licensee's ability to meet the financial contractual requirements defined in the HALEU contract (Reference 22).

In support of this HALEU Demonstration Program, DOE amended the GCEP Lease Agreement, in which the parties agree that all work performed under the HALEU Demonstration Contract on leased premises shall be considered a permitted use; any alterations or changes to the premises pursuant to the Demonstration Contract with the DOE shall be a permitted change to the premises; and that any liabilities of the Corporation (Licensee) arising from or incident to the performance of work under the Demonstration Contract with the DOE shall be governed solely by such contract. Both the GCEP Lease and the Demonstration Contract afford indemnification pursuant to the Price Anderson Act. DOE is expected to continue to amend the GCEP Lease in support of the HA LEU Operations contract.

The Company has long-term nuclear fuel sales and supply contracts in place that extend to 2030; these contracts will provide a stream of revenue for many years and provide a foundation for growth (Reference 22).

At the time of initial licensing and remains as the basis for the initial Materials License approval, the Licensee estimated the total cost to construct the initial 3.8 million SWU capacity for the ACP to be up to $3.1 billion (2008 dollars) (Reference 3) (see Appendix C of this license application), excluding capitalized interest, tails disposition, decommissioning, and any replacement equipment required during the life of the plant outside of normal spare equipment.

The commercial ACP design is modular and can be constructed and installed incrementally over time. As the final commercial ACP phase, the Licensee plans to construct the plant and install centrifuges in increments until the ACP reaches a capacity of up to 3.8 million SWU production annually. As groups of centrifuges are installed, operations will be initiated and will result in enrichment production that will generate revenue.

The Licensee may construct and install additional capacity thereafter as operations and market conditions permit subject to additional NRC licensing approval. Financing for each phase of incremental capacity may be raised using different financial instruments, and the ratio of equity to debt may vary over time for each increment.

1-60

License Application for the American Centrifuge Plant Proposed Change September 2024 Funding for various future phases of construction may come from a variety of sources including, but not limited to, funds from operations, capital raised by the Licensee, other American Centrifuge limited liability companies, lending and/or lease arrangements and that the mix of funding sources may vary depending upon the phase of the project. Prior to initiating each phase, the Licensee will make available for inspection on a confidential basis, its budget estimate for such phase and documentation of the source of funds available or committed to fund that increment.

In general, the Licensee's financial qualifications to construct and operate the HALEU 16-centrifuge cascade under the Demonstration Contract is demonstrated by the contract with DOE and the Selected Financial Data and detailed Consolidated Financial Statements within the latest information filed with the U.S. Securities Exchange Commission by its parent Centrus.

In order to meet the financial qualifications requirements for construction and operation of future expansion of the facility beyond the cascade funded under the HA LEU Demonstration Contract, the Licensee proposes that the license be conditioned as follows:

Construction of each incremental phase of the ACP shall not commence before funding for that increment is available or committed. Of this funding, ACO must have in place before constructing such increment, commitments for one or more of the following: equity contributions from ACO, affiliates and/or partners, along with lending and/or lease arrangements that solely or cumulatively are sufficient to ensure funding for the particular increment's construction costs.

ACO shall make available for NRC inspection, documentation of both the budgeted costs for such phase and the source of funds available or committed to pay those costs.

Operation of the ACP, with the exception of operation of the HALEU demonstration cascade until expiration of DOE's HALEU contract----Bft Deeember 31, 2024 or up to the currently authorized possession limits defined with this Materials License (whichever comes first), shall not commence until the Licensee has in place, either: (1) long term contracts lasting five years or more that provide sufficient funding for the estimated cost of operating the facility for the five year period; (2) documentation of the availability of one or more alternative sources of funds that provide sufficient funding for the estimated cost of operating the facility for five years; or (3) some combination of (1) and (2).

Pursuant to Section 3107 of the USEC Privatization Act, the United States Enrichment Corporation leases the portions of the DOE reservation from DOE on which the ACP is located.

The Licensee subleases those portions of the DOE reservations from the United States Enrichment Corporation. Under its lease with DOE and the sublease, and in accordance with Section 3107, the United States Enrichment Corporation and the Licensee are indemnified under Section 170d of the Atomic Energy Act for liability claims arising out of any occurrence within the United States, causing, within or outside the United States, bodily injury, sickness, disease, or death, or loss of or damage to property, or loss of use of property, arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of chemical compounds containing source or 1-61

FOR INFORMATION ONLY license Application for the American Centrifuge Plant Proposed Change September 2024 authorized an increase in the possession limits beyond those approved on June I l, 2021 (SNM-2011, Amendment 19).

3) Within the ACP Operations, the Licensee will provide a minimum 60-day notice to the NRC prior to initial customer product withdrawal of licensed material exceeding 5 wt.

percent 235U enrichment. This notice will identify the necessary equipment and operational changes to support customer product withdrawal, storage, processing, and shipment for these assays.

1.2.5 Special Exemptions or Special Authorizations The following exemption to the applicable IO CFR Part 20 requirements are identified in Section 4.8 of this license application:

UF6 feed, product, and depleted uranium cylinders, which are routinely transported inside the DOE reservation boundary between ACP locations and/or storage areas at the ACP, are readily identifiable due to their size and unique construction and are not routinely labeled as radioactive material. Qualified radiological workers attend UF6 cylinders during movement.

Containers located in Restricted Areas within the ACP are exempt from container labeling requirements of 10 CFR 20.1904, as it is deemed impractical to label each and every container. In such areas, one sign stating that every container may contain radioactive material will be posted. By procedure, when containers are to be removed from contaminated or potentially contaminated areas, a survey is performed to ensure that contamination is not spread around the reservation.

In lieu of the requirements of 10 CFR 20.1601 (a), each High Radiation Area with a radiation reading greater than 0. I Roentgen Equivalent Man per hour (REM/hour) at 30-centimeters (cm) but less than I REM/hour at 30 cm is posted Caution, High Radiation Area and entrance into the area shall be controlled by an R WP. Physical and administrative controls to prevent inadvertent or unauthorized access to High and Very High Radiation Areas are maintained. The on-site radiological impacts from the proposed exemptions to the requirements of l O CFR 20.1904 and 20.1601 would be minimal and are consistent with previously approved exemptions found in the GDP certification. Moreover, pursuant to the regulations in JO CFR 20.2301, the requested exemption is authorized by law and would not result in undue hazard to life or property.

The following exemption from the applicable IO CFR 70.50 reporting requirement is identified in Section l l.6.3 of this license application:

The 10 CFR 70.50(c)(2) reporting criteri~ require that the ACP submit a written follow-up report within 30 days of the initial report required by 10 CFR 70.50 (a) or (b) or by 10 CFR 70.74 and Appendix A of Part 70. In lieu of the 30-day requirement described in l O CFR 70.50( c )(2), NRC approval to submit the required written reports within 60 days of the initial notifications is hereby requested.

1-63

license Application for the American Centrifuge Plant Proposed Change September 2024 the type and amount of liability insurance that is required to cover liability claims. The Commission has the discretion to conclude that no liability insurance is required in light of the DOE indemnity agreement. Therefore, the requested exemption is authorized by law.

Moreover, the requested exemption 1s m the public interest since it will facilitate deployment of the ACP, thereby maintaining domestic enrichment capacity using more efficient centrifuge technology. Requiring separate nuclear liability insurance would at best impose an unnecessary financial burden on the licensee and at worst preclude the construction of the ACP if commercial insurance ultimately is unavailable for facilities, such as the ACP, which are located on a DOE owned site. ANI, the only company providing commercial nuclear liability insurance in the U.S., has informed us that it has never insured a facility located on a DOE owned site. Furthermore, the separate liability insurance would not provide a commensurate benefit to the public since the DOE indemnity covers any public liability under Section 170 of the AEA up to the statutory limit of liability. The DOE indemnity agreement in the Lease adequately provides financial protection for the public for public liability as defined in the AEA. Therefore, the requested exemption is in the public interest.

The following exemption from NRC's Materials License Condition 15 related to financial funding as discussed in Section l.2.2 of this license application.

In order to meet the financial qualifications requirements for construction and operation of the facility, the Licensee proposes that the license be conditioned as follows:

Construction of each incremental phase of the ACP shall not commence before funding for that increment is available or committed. Of this funding, ACO must have in place before constructing such increment, commitments for one or more of the following: Equity contributions from ACO, affiliates and/or partners, along with lending and/or lease arrangements that solely or cumulatively are sufficient to ensure funding for the particular increment's construction costs. ACO shall make available for NRC inspection, documentation of both the budgeted costs for such phase and the source of funds available or committed to pay those costs.

Operation of the A CP, with the exception of operation of the HAL EU demonstration cascade until expiration of DOE's HALEU contract-et1/2 December 31, 2024 or up to the currently authorized possession limits defined within this Materials License (whichever comes first), shall not commence until the Licensee has in place, either: (1) long term contracts lasting five years or more that provide sufficient funding for the estimated cost of operating the facility for the five year period; (2) documentation of the availability of one or more alternative sources of funds that provide sufficient funding for the estimated cost of 1-69 of ACO 24-0070 Proposed Changes for LA-3605-0002, Environmental Report/or the American Centrifuge Plant Information Contained Within Does Not Contain Export Controlled Information Reviewing Official:

Lori Hawk, ACO Date:

09/09/2024

Environmental Report for the American Centrifuge Plant in Piketon, Ohio Proposed Change LA-3605-0002 Docket No. 70-7004 September 2024 Information contained within does not contain Export Controlled Information Reviewer:

Lori Hawk / ACO Date:

09/09/2024

FOR INFORMATION ONLY Environmental Report for the American Centrifage Plant Proposed Change September 2024

[n 1991, DOE suspended production of highly enriched uranium (HEU) at PORTS. The plant continued to produce low enriched uranium (LEU) for use by commercial nuclear power plants until May 200 I. The GDP transitioned to Cold Shutdown status on October 1, 2005 and the Decontamination & Decommissioning (D&D) of inactive facilities began. In August of 20 I 0 the DOE awarded the contract for complete D&D of the GDP (excluding facilities supporting other reservation entities, including the Lead Cascade and ACP). D&D of multiple facilities started in 2010 and at present remains ongoing (FBP-ER-RCRA-WD-RPT-0288).

In accordance with the Energy Policy Act of 1992, the United States Enrichment Corporation, a newly created government corporation, assumed full responsibility for uranium enrichment operations at PORTS on July 1, 1993.

DOE retains certain responsibilities for decontamination and decommissioning, waste management, depleted uranium hexafluoride cylinders, and environmental remediation.

The NRC granted the United States Enrichment Corporation a Certificate of Compliance for operation of the GDP pursuant to 10 CFR Part 76 on November 26, 1996 and the GDP was officially transferred to NRC oversight on March 3, 1997.

USEC subsequently became a publicly held private corporation on July 28, 1998.

The DOE leases portions of the Portsmouth Gaseous Diffusion Plant to the United States Enrichment Corporation (USEC) through the GCEP Lease Agreement. Pursuant to an amendment to the lease agreement, Centrus subleased space for the Lead Cascade and American Centrifuge Plant (ACP) from USEC. Centrus, with approval from DOE, assigned the sublease for the ACP to American Centrifuge Operating LLC (ACO). In addition to the GDP buildings, extensive support facilities are required to maintain the diffusion process. The support facilities include administration buildings, a steam plant, electrical switchyards, cooling towers, cleaning and decontamination facilities, water and wastewater treatment plants, fire and security headquarters, maintenance shops, warehouses, and laboratory facilities.

1.0.2 American Centrifuge Plant Program Overview Following the suspension of development of the Atomic Vapor Laser Isotopic Separation (A VLIS) enrichment technology in June 1999, USEC began an evaluation of centrifuge and other technologies to replace its gaseous diffusion technology. Gaseous diffusion technology requires large amounts of power. These power requirements significantly affect the cost of production of enriched uranium. Since the use of foreign centrifuge technology and other third generation technologies including the Separation of Isotopes by Laser Excitation (SILEX), a laser-based technology under development in Australia, have the potential to lower the cost of production, these alternative enrichment technologies were also investigated. As part of the evaluation, USEC, in partnership with University of Tennessee-Battelle, the operator of DO E's Oak Ridge National Laboratory, undertook to refine gas centrifuge technology under a DOE approved Cooperative Research and Develop Agreement (CRADA).

USEC began design of an improved centrifuge by taking advantage of commercial advances in materials of construction and manufacturing methods. The improved centrifuge technology is intended to achieve performance levels approximately equivalent to those demonstrated in DO E's earlier testing programs, but at a substantially reduced cost.

1-5

FOR INFORMATION ONLY Environmental Report for the American Centrifuge Plant Proposed Change September 2024 and water, exposure to personnel, and personnel injuries/illnesses were monitored to enable assessment of environmental impacts. Based on this monitoring, it was concluded that operation of the Lead Cascade did not result in any unanticipated releases, discharges, or exposures to the environment, the public, or employees (DP-2605-0001 ). Decommissioning efforts of the Lead Cascade were completed in 2018.

American Centrifuge Plant The ACP was the third step in the plan to deploy the American Centrifuge technology. The ACP encompasses the construction, startup, operation, maintenance, and decommissioning of a uranium enrichment process to produce, as an initial target, 3.8 million SWU per year, potentially expandable to 7.6 million SWU per year, using American Centrifuge technology. The ACP utilizes existing buildings located on the DOE reservation near Piketon, Ohio, that were built to support the gaseous diffusion process beginning in the 1950s and the gaseous centrifuge process beginning in the 1980s, in addition to several newly constructed buildings and facilities.

American Centrifuge technology is modular, with the basic building block of enrichment capacity being a cascade of centrifuges. Information gained and work performed during the Demonstration Project and Lead Cascade included vital information on performance, reliability, and economics that will be used in the final construction of the ACP.

A license application for the ACP was prepared pursuant to the Atomic Energy Act of 1954 as amended, 10 Code of Federal Regulations (CFR) Parts 70, 40, 30, and other applicable laws and regulations. The ACP LEU cascade is designed to enrich and safely contain and handle uranium hexafluoride (UF6) up to IO weight (wt.) percent 235U.

The ACP uses portions of the DOE reservation and the former DOE GCEP along with eight new proposed facilities. The ACP utilizes existing utilities and infrastructure that support the DOE reservation including the utilities and infrastructure that were intended to support GCEP. New proposed facilities may be necessary for feed, withdrawal, sampling, and blending/transfer operations. The Licensee has updated the American Centrifuge technology from that used in the GCEP program, but the American Centrifuge components remain compatible with existing infrastructure and facilities.

On October 31, 2019, ACO signed a contract with the DOE to deploy a cascade of centrifuges to demonstrate production of high-assay, low-enriched uranium (HALEU) fuel with existing United States origin enrichment technology and provide DOE with HALEU for near term use in its research and development for the advancement of civilian nuclear energy and national security, as well as other programmatic missions. HALEU is a component for advanced nuclear reactor fuel that is not commercially available today and may be required for a number of advanced reactor designs currently under development in both the commercial and government sectors. The program has been under way since the Licensee and DOE signed a preliminary letter agreement on May 31,

2019, which allowed work to begin while the full contract was being finalized.

On November l 0, 2022, the DOE announced an approximately $150 million cost-shared award with ACO to demonstrate the nation's ability to produce HALEU. This award builds on 1-7

Environmental Report for the American Centrifuge Plant Proposed Change September 2024 DOE's previous three-year cascade demonstration program with ACO to manufacture and demonstrate the centrifuge enrichment cascade to produce up to 600 kilograms of HALEU in the form of UF6 for the DOE contract that expires on November 30, 2022.

This new HALEU performance-based contract will have three phases. During Phase I of the new contract, ACO will complete the final steps of centrifuge assembly and clear an operational readiness review (ORR) to start up the demonstration cascade. ACO will complete testing once the centrifuges have been installed and process gas (feed material) has been introduced fo llowing the required NRC ORRs. Once the HALEU demonstration cascade is operational, ACO will begin enriching UF6 gas to produce HALEU, meeting the contract requirement for the initial 20 kilograms of HALEU. Upon completion of Phase I, ACO plans to continue to produce HALEU under Phase II up to the NRC authorized possession limits. Phase Ir includes production of a minimum 900 kilograms of HALEU to a nominal 19.75 wt. percent 235U within one calendar year following Phase r. Completion of Phases I and II are considered the Base Contract.

After completion of the Base Contract, the contract allows DOE to enter a Phase III, which would exercise up to three three-year option periods for a combined total of IO years of production (Phases II and III) at a minimum production level of900 kilograms of HALEU per year.

The Licensee's long-term goal is to resume commercial enrichment production consistent with market demand. It is the intent of the Licensee to deploy portions of the ACP in a modular fashion to accommodate market demand on a scalable, economical gradation. This modular deployment will encompass utilization of cascades of LEU production for customer product or feed material into HALEU cascades.

Results from the operation of the HALEU demonstration program will be used in preparation of the design for the full-scale ACP facility. During the process of remediation, construction, infrastructure modification, manufacturing, and test operations for the scope of this ER, the design for these elements are reviewed for compliance with regulatory standards for releases, emissions, and wastes generated and for minimization of the quantity and toxicity of the materials used and wastes generated.

1.1 Purpose and Need for the Proposed Action Nuclear power generates about 20 percent of the electricity for the United States.

Construction and operation of a gas centrifuge plant utilizing the US-origin advanced technology is key to supporting DOE's national energy security goals by providing a reliable and secure domestic source of enriched uranium. The primary purpose of this action is to allow the Licensee to construct and operate a plant to enrich uranium up to 10 weight (wt.) percent with an initial capacity of approximately 3.8 million SWU expandable to 7.6 million SWU, at the Licensee's option, using advanced U.S. centrifuge technology at the DOE reservation located in Piketon, Ohio.

The gas centrifuge is an enrichment process that increases the concentration of 235U, the isotope desired for production of nuclear energy. The gas centrifuge process has three inherent characteristics that make it particularly attractive: ( l) it is a proven technology; (2) it has low 1-8