ML25085A096
| ML25085A096 | |
| Person / Time | |
|---|---|
| Site: | 07007038 |
| Issue date: | 05/02/2025 |
| From: | NRC/NMSS/DFM/FFLB |
| To: | |
| Shared Package | |
| ML25085A094 | List: |
| References | |
| EPID L-2025-LLE-0010 | |
| Download: ML25085A096 (1) | |
Text
Enclosure SAFETY EVALUATION REPORT ORANO ENRICHMENT USA, LLC, IKE ENRICHMENT FACILITY REQUEST FOR EXEMPTION FROM TIMING REQUIREMENT FOR SUBMITTAL OF LICENSE APPLICATION DOCKET NO. 07007038 The Exemption Request By letter dated February 5, 2025 (Agencywide Documents Access and Management System
[ADAMS] Accession No. ML25036A341), pursuant to the requirements in Title 10 of the Code of Federal Regulations (10 CFR) Section 51.6, Specific exemptions, and 10 CFR 70.17, Specific exemptions, Orano Enrichment USA, LLC (Orano), submitted a request to the U.S.
Nuclear Regulatory Commission (NRC) for an exemption from a regulatory requirement in 10 CFR 51.60(a), Environmental Reports - Materials Licenses, and 10 CFR 70.21(h), "Filing,"
regarding the timing of when a license applicant must submit an environmental report (ER).
Those regulations effectively require, in part, that each applicant for a license to be issued under 10 CFR Part 70 for construction and operation of a uranium enrichment facility must submit its ER with the license application. Enclosure 1 of the submittal provided Oranos technical justification for granting the requested exemption from that requirement in 10 CFR 51.60(a) and 10 CFR 70.21(h).
In its submittal, Orano stated that it is requesting the exemption to allow submission of the ER separately from and before the remainder of a license application (i.e., a phased submittal) for Oranos Project IKE, a new uranium enrichment facility to be located in Oak Ridge, Tennessee. If the NRC grants the exemption, Orano would submit the ER separately, and within 6 months, before submitting the remainder of the application (i.e., the safety and safeguards portion) to the NRC. Orano is requesting the exemption because it anticipates the ER will be ready for submission by the third quarter (Q3) of calendar year (CY) 2025 (NRC fiscal year [FY] 2025 Q4), and the remainder of the application to be ready to submit to the NRC during CY 2026 Q1 (NRC FY 2026 Q2).
Background
Orano plans to submit a license application in early CY 2026 to possess and use special nuclear material (SNM) for a uranium enrichment facility in Oak Ridge, Tennessee, as stated in a letter of intent dated January 29, 2025 (ML25029A252), as well as during discussions in pre-application meetings1 with the NRC.
The NRCs regulation at 10 CFR 70.21(h) states:
A license application for a uranium enrichment facility must be accompanied by an Environmental Report required under subpart A of part 51 of this chapter.
The relevant requirements in 10 CFR 51.60(a) provide, in part, that an applicant for a license to be issued under 10 CFR Part 70 for construction and operation of a uranium enrichment facility shall submit with its application... a separate document, entitled Applicant's Environmental Report" that contains the information specified in 10 CFR 51.45. Under these regulations, an 1 Meeting summaries for the pre-application meetings are available at ML25022A304 and ML25084A216 (December 10, 2024, and February 27, 2025, respectively).
2 applicant seeking a 10 CFR Part 70 license for a uranium enrichment facility must submit a complete application that includes a safety and safeguards portion and an ER.
Discussion Pursuant to 10 CFR 51.6, the Commission may grant such exemptions from requirements in the regulations in 10 CFR Part 51 as it determines are authorized by law and are otherwise in the public interest. Similarly, pursuant to 10 CFR 70.17(a), the Commission may grant such exemptions from requirements in the regulations in 10 CFR Part 70 as it determines are authorized by law and will not endanger life or property or the common defense and security and are otherwise in the public interest. Orano specifically requests an exemption from the requirement in 10 CFR 51.60(a) and 10 CFR 70.21(h) that each applicant for a license to be issued under 10 CFR Part 70 for construction and operation of a uranium enrichment facility must submit its ER with the license application. If granted, the exemption would allow Orano to submit the application in a phased approach, with the ER submitted first and the safety and safeguards portion submitted at a later time. Orano proposes to submit the ER to the NRC for review within the 6 months prior to the submittal of the safety and safeguards portion of the license application.
The submittal of the ER and the safety and safeguards portion must conform to the requirements in 10 CFR 2.101, Filing of application. Consistent with 10 CFR 2.101, upon receipt of all application submittals, including the ER and the safety and safeguards portion, the application will be evaluated by the NRC staff to determine whether the submittals contain sufficient information to accept for formal review.
The criteria for granting specific exemptions to the NRCs regulations under 10 CFR 51.6 and 10 CFR 70.17(a) are discussed in more detail below.
NRC Staff Review Authorized by Law In its exemption request, Orano stated that the proposed exemption, which relates to the timing of submittals, is within the scope of past NRC practice. Furthermore, Orano stated that the proposed exemption is consistent with an existing NRC mechanism provided for 10 CFR Part 50 and 10 CFR Part 52 licensees in 10 CFR 2.101(a)(5). That regulation states, in part, that certain applicants for construction permits and combined operating licenses under 10 CFR Parts 50 and 52 may submit information to the NRC in two parts submitted not more than 6 months apart: one part that includes the information required by 10 CFR 50.30(f) or 52.80 (b) (i.e., the ER), and another part includes any information required by 10 CFR 50.34(a), 50.34a (if applicable), or 52.79 and 52.80(a) as applicable. Orano also referenced a prior example of the NRC granting an exemption to extend the bifurcated submission process in 10 CFR 2.101(a)(5) to a construction permit application for a medical isotope production facility, a decision based in part on the NRC's recognition of the procedural nature of [the] rule, the need to respond to the nations demand for a domestic supply of Mo-99, and the absence of any unique considerations for medical isotope production facilities, which would weigh against allowing a license applicant such as SHINE to submit a two-part application under 10 CFR 2.101(a)(5).
The requested exemption would allow the NRC staff to engage in preliminary review of Orano's ER while the rest of the application (i.e., the safety and safeguards portion) is being completed.
The NRC staff will formally proceed with the acceptance review of Oranos application after it
3 submits the safety and safeguards portion. The delay in the submittal of the applications safety and safeguards portion will not negatively affect the NRC staffs review or findings, because a detailed technical review of the safety and safeguards portion and the ER would not begin until the entire application has been received and accepted. The NRC staff also determined that the proposed phased submission of the ER, in advance of the safety and safeguards portion, will ensure the procedural protections afforded by the National Environmental Policy Act (NEPA) of 1969, as amended, and the NRCs regulations would be fully implemented as part of its review of the split application. The NRC staff will develop the required NEPA document in accordance with requirements in 10 CFR Part 51, which implements section 102(2) of NEPA. In conducting its review of Oranos license application, the NRC staff will use the guidance in NUREG-1748, Environmental Review Guidance for Licensing Actions Associated with NMSS Programs.
The NRC staff considered the foregoing information and all applicable requirements and, based on this review, determined that granting the requested exemption is permissible under the Atomic Energy Act of 1954, as amended, and that no other legal or regulatory prohibition exists that would preclude the activities that would be authorized by the exemption. As such, the NRC staff finds that the requested exemption is authorized by law, as required by both 10 CFR 51.6 and 10 CFR 70.17(a).
Does Not Endanger Life or Property or Common Defense and Security In its request, Orano stated that the proposed exemption is a procedural request that relates to the timing of when environmental information documents are submitted and committed that the exemption will not:
impact the probabilities of evaluated accidents affect margins of safety affect effectiveness of programs contained in licensing documents increase effluents increase occupational radiological exposures, or impact operations or decommissioning activities Further, Orano stated that the proposed exemption also will not have an impact on common defense and security because it only relates to the timing of when license application documents are to be submitted.
In reviewing Oranos justification for granting the exemption, the NRC staff noted that the regulation at 10 CFR 70.21(h) provides procedural requirements to ensure that environmental considerations are properly evaluated by the NRC staff prior to issuance of a license to possess and use SNM for uranium enrichment activities. In addition, the NRC staff determined that granting Orano the requested exemption will not endanger life or property as it does not impact the probabilities of evaluated accidents, margins of safety, effectiveness of programs, effluents, radiological exposure, or operations and decommissioning activities. The NRC staff also determined that the exemption will not have an impact on common defense and security since it only relates to the timing of when environmental information and safety and safeguards information will be submitted. The NRC staff will evaluate Oranos complete application for acceptance and, if accepted, will then conduct a detailed technical review of all submitted information, including the ER and the safety and safeguards portion, before reaching a decision on whether to issue a license. Therefore, the NRC staff finds that, because the exemption will not authorize the possession or use of SNM and will not adversely affect the NRC's evaluation
4 of the license application submittals, it does not endanger life or property or the common defense and security, as required by 10 CFR 70.17(a).
Is in the Public Interest In its exemption request, Orano stated that the NRC has previously allowed for the use of staggered submittals in cases where there was a deep national concern over energy sources and supply. Thus, Orano stated that, given the current need for additional uranium enrichment capacity within the United States (U.S.) to supply enriched uranium for commercial nuclear power plant fuel fabrication, the same concern exists today. In addition, Orano stated that, recently, the U.S. Congress has passed legislation to fully ban Russian enriched uranium imports (which represent approximately 20 percent of the enriched uranium currently used by the U.S. reactor fleet) beginning in 2028 and to support expansion of the domestic low enriched uranium fuel supply chain. Orano further stated that recent Federal government direction to facilitate the identification, leasing, siting, production, transportation, refining [e.g.
enrichment], and generation of domestic energy resources [e.g. uranium] further supports the NRCs use of its authority to stagger submittals, such as in the case of Orano's forthcoming application for a uranium enrichment facility, the timely deployment of which would significantly contribute to efforts to build a domestic supply chain to replace foreign imports.
The NRC staff reviewed the information provided by Orano in its exemption request and determined that, pursuant to recently-enacted legislation referenced in that request, including the Nuclear Fuel Security Act of 2023 and the Prohibiting Russian Uranium Imports Act, there is public interest in timely development of increased domestic production of low-enriched uranium for fueling the domestic fleet of nuclear power plants. The early submittal of Orano's ER may allow the NRC staff to engage in certain activities prior to receipt of the entire application, such as preliminary identification of areas where requests for additional information may be appropriate, that could result in a more efficient review process once Orano's application is received. Therefore, the NRC staff finds that granting Orano's requested exemption from the concurrent submittal requirement in 10 CFR 51.60(a) and 10 CFR 70.21(h) may support the timely deployment of Oranos enrichment technology, which would contribute to the timely development of increased domestic enrichment capacity that the Congress has recently sought to stimulate. For these reasons, the NRC staff finds that granting the exemption is in the public interest, as is required by both 10 CFR 51.6, and 10 CFR 70.17(a).
Environmental Review The NRCs regulations in 10 CFR 51.22(a) provide that certain licensing and regulatory actions, that fall within the categories of actions that the Commission has found do not individually or cumulatively have a significant effect on the human environment, are categorically excluded from an environmental review. The provisions of 10 CFR 51.22(c)(25)(i-v) and (vi)(G) state that granting an exemption from the requirements of any regulation of Title 10, is categorically excluded, provided that:
(i) There is no significant hazards consideration; (ii) There is no significant change in the types or significant increase in the amounts of any effluents that may be released offsite; (iii) There is no significant increase in individual or cumulative public or occupational radiation exposure;
5 (iv) There is no significant construction impact; (v) There is no significant increase in the potential for or consequences from radiological accidents; and (vi) The requirements from which an exemption is sought involve: (G)
Scheduling requirements.
For the reasons described below, the NRC staff finds that Oranos request meets the criteria for a 10 CFR 51.22(c)(25)(i-vi) categorical exclusion. There are no special circumstances in this request that require an environmental assessment (EA) or environmental impact statement (EIS). Orano does not hold a Part 70 license currently, and this exemption is procedural in nature and relates only to the timing of the submission of the ER and safety and safeguards portion of the application. Therefore, the NRC staff finds no significant hazards consideration.
Oranos request pertains to an exemption concerning the timing for submission of an application to obtain a Part 70 license. Additionally, (1) there are no effluents or offsite releases or significant increase in radiation exposure to workers or members of the public associated with this request; (2) there are no construction activities associated with this request, so there is no significant construction impact; (3) there is no significant increase in the potential for any radiological accidents associated with this request because granting the exemption does not permit facility operations; (4) because the exemption concerns the timing of the submission of required sections of an application, the exemption is related to a scheduling requirement under 10 CFR 51.22(c)(25)(vi)(G). Therefore, under 10 CFR 51.22(b) and 10 CFR 51.22(c)(25)(vi)(G),
the NRC staff finds that neither an EIS nor an EA needs to be prepared in connection with the approval of this exemption request.
The NRC staff determined that the requested exemption for the phased submittal of a complete license application, with the ER to be submitted in advance of the safety and safeguards portion, rather than both documents at the same time, meets the criteria in 10 CFR 51.22(c)(25)(i-v) and (vi)(G). Therefore, this is an action that does not require a site-specific environmental review. The NRC staff notes that a full site-specific environmental review will be conducted by the NRC staff after receipt, acceptance, and docketing of a complete license application.
Conclusion The NRC staff finds that granting the exemption is authorized by law, will not endanger life or property or common defense and security, and is otherwise in the public interest. Therefore, based on the information discussed above, the NRC staff grants Orano a temporary exemption from the requirement in 10 CFR 51.60(a) and 10 CFR 70.21(h) that an ER be submitted with its application, until 6 months after official receipt of the ER in ADAMS. The exemption will expire if the remainder of the application package is not submitted by that date.
Principal Contributors Stacey Imboden, NMSS/REFS Osiris Siurano-Pérez, NMSS/DFM