ML25155B238
| ML25155B238 | |
| Person / Time | |
|---|---|
| Site: | Nuclear Energy Institute |
| Issue date: | 05/30/2025 |
| From: | Core G Nuclear Energy Institute |
| To: | NRC/EDO |
| References | |
| Download: ML25155B238 (1) | |
Text
Greg Core Director, Fuel Cycle Facilities and Transportation Phone: 202.407.2074 Email: gmc@nei.org May 30, 2025 U.S. Nuclear Regulatory Commission Office of the Executive Director for Operations ATTN: ADVANCE Act Lead Washington, DC 20555-0001 Submitted via: ADVANCE-Act.Resource@nrc.gov
Subject:
NEI Input on Modernizing License Terms for SNM Facilities Project Number: 689 The Nuclear Energy Institute (NEI)1, on behalf of its members, on behalf of its members, appreciates the opportunity to recommend improvements to the efficiency of the U.S. Nuclear Regulatory Commissions (NRC) licensing process for fuel cycle facilities. NEI believes removing the terms from specific Special Nuclear Material (SNM) facility licenses can modernize the regulatory framework governing these facilities.
Attached is NEI's white paper titled "Removing the Term for Operating Licenses for Special Nuclear Material (SNM) Facilities," which outlines a proposal to eliminate the 40-year term limit on operating licenses for certain SNM licensees who submit Integrated Safety Analysis (ISA) summaries following the regulations found in 10 CFR Part 70, Subpart H. This recommendation builds upon the NRC's precedent for non-power utilization facilities (NPUFs) and aims to enhance regulatory efficiency, reduce administrative burden, and better align NRC oversight with continuous safety assurance practices already in place.
SNM facilities already undergo regular inspections and continuous compliance monitoring that are supported by thorough annual ISA update requirements. This practice ensures a current and accurate safety basis throughout the facility's lifetime. Therefore, we consider the current periodic license renewal framework to be unnecessarily burdensome, diverting resources from higher-value licensing and oversight activities. The adoption of a termless licensing approach would align NRC practices with the spirit of Section 505 of the ADVANCE Act and NRCs own handling of NPUFs.
1 The Nuclear Energy Institute (NEI) is responsible for establishing unified policy on behalf of its members relating to matters affecting the nuclear energy industry, including the regulatory aspects of generic operational and technical issues. NEIs members include entities licensed to operate commercial nuclear power plants in the United States, nuclear plant designers, major architect and engineering firms, fuel cycle facilities, nuclear materials licensees, and other organizations involved in the nuclear energy industry.
Office of the Executive Director for Operations May 30, 2025 Page 2 Nuclear Energy Institute We respectfully request the NRC consider this proposal.
NEI looks forward to engaging further with NRC staff and stakeholders to refine and implement this recommendation. Please contact me at gmc@nei.org or (202) 407-2074 with any questions or for any additional information.
Thank you for your consideration.
Sincerely, Greg Core Director, Fuel Cycle Facilities and Transportation
Attachment:
NEI White Paper: Removing the Term for Operating Licenses for Special Nuclear Material (SNM) Facilities Cc:
Shana Helton - Director, Division of Fuel Management Samantha Lav - Chief, Fuel Facility Licensing Branch James Downs - Sr. Project Manager, Fuel Facilities Licensing Branch
© NEI 2025. All rights reserved.
nei.org WHITE PAPER NEI White Paper: Removing the Term for Operating Licenses for Special Nuclear Material (SNM) Facilities Prepared by the Nuclear Energy Institute May 2025
May 2025
© NEI 2025. All rights reserved.
nei.org Acknowledgements This document was developed by the Nuclear Energy Institute. NEI acknowledges and appreciates the contributions of NEI members and other organizations in providing input, reviewing, and commenting on the document including:
NEI Project Lead: Greg Core Daniel L. Ashworth, PhD Kevin A. Roberts, CHP Notice Neither NEI, nor any of its employees, members, supporting organizations, contractors, or consultants make any warranty, expressed or implied, or assume any legal responsibility for the accuracy or completeness of, or assume any liability for damages resulting from any use of, any information apparatus, methods, or process disclosed in this report or that such may not infringe privately owned rights.
May 2025
© NEI 2025. All rights reserved.
nei.org Executive Summary This paper outlines the basis of the industrys request for the Nuclear Regulatory Commission (NRC) to adjust its current policy1 of a maximum license period of 40 years for certain licensees who submit Integrated Safety Analysis (ISA) summaries according to 10 CFR Part 70, Subpart H requirements, and remove the term governing operating licenses. This approach of termless operating licenses would be similar to that approach recently adopted by the Commission for non-power reactors and certain other production or utilization facilities (NPUFs)2. The current regulatory framework requiring periodic license renewal is unnecessarily burdensome. It imposes unnecessary financial and operational burdens on the NRC and its licensees without enhancing safety or security and does not improve regulatory oversight.
Transitioning to termless licenses would maintain safety and security while improving efficiency and reducing administrative overhead in the spirit of the Administrations Declaring an Energy Emergency and Unleashing American Energy Executive Orders and the bipartisan Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act (ADVANCE) Act of 2024.
1 United States Nuclear Regulatory Commission, Maximum 40-Year Licensing Terms for Certain Fuel Cycle Facilities, Federal Register Notice:
71 FR 70441, https://www.federalregister.gov/d/E6-20412, December 4, 2006.
2 United States Nuclear Regulatory Commission, Non-Power Production or Utilization Facility License Renewal, Federal Register Notice: 89 FR 106234, https://www.federalregister.gov/d/2024-30721, December 30, 2024.
May 2025
© NEI 2025. All rights reserved.
nei.org Table of Contents Background...................................................................................................................................... 1 1.1 Current Licensing Framework............................................................................................. 1 Challenges with the Current System................................................................................................ 1 2.1 Administrative Burden........................................................................................................ 1 2.2 Redundancy of Oversight Mechanisms.............................................................................. 2 2.3 Delayed Innovation and Planning....................................................................................... 2 2.4 Lack of Added Safety Benefit.............................................................................................. 2 Proposed Solution: Eliminate Term Governing Operating Licenses................................................ 3 3.1 Key Features of the New Framework................................................................................. 3 Benefits of a Termless Operating License........................................................................................ 3 4.1 Improved Efficiency............................................................................................................ 3 4.2 Continuous and Robust Oversight...................................................................................... 3 4.3 Encouragement and Innovation......................................................................................... 3 4.4 Alignment with Industry Standards.................................................................................... 3 Addressing Potential Concerns........................................................................................................ 4 5.1 Perceived Loss of Oversight................................................................................................ 4 5.2 Implementation Challenges................................................................................................ 4 5.3 Legal and Policy Considerations.......................................................................................... 4 Conclusion........................................................................................................................................ 4 Recommendations for Next Steps:.................................................................................................. 5
May 2025
© NEI 2025. All rights reserved.
nei.org 1 BACKGROUND 1.1 Current Licensing Framework The NRC licenses special nuclear material (SNM) and source material facilities under 10 CFR Parts 70 and 40, respectively, and the term of such licenses is limited to 40 years by NRC policy. Licenses can be renewed in under 10 CFR 70.33 or 10 CFR 40.43. In June of 1990, the NRC gave notice3 that the license term for major operating fuel cycle licensees pursuant to 10 CFR Part 40 and 10 CFR Part 70 would be increased from a 5-year term to a 10-year term at the next license renewal. The bases for this change were that: (1) operators of major fuel cycle facilities had become stable over the previous ten years, with few significant changes to their licenses and operations; and (2) those licensees were required to update the safety demonstration sections of their licenses every two years, rather than every five years.
In December 2006, the NRC established a policy to extend the maximum license term for fuel cycle licensees who are required to submit Integrated Safety Analysis (ISA) summaries for approval. In this instance, NRC staff recommended increasing licensing terms because this is consistent with the NRC Strategic Plan that will allow NRC to continue to support safe operation of licensed facilities, reduces regulatory burden, enhances effectiveness and efficiency; and is based on the experiences that staff has had with those licensees in the recent past after the addition of Subpart H requirements to 10 CFR Part 70.4 Such licenses are being extended from the current 10-year period to a 40-year period when the license is renewed.
The current term of licenses for major operating fuel cycle licensees ranges from 20 to 40 years.
10 CFR 70 Subpart E (and 10 CFR 40.41-46 for source material licensees) specifies expiration, renewal processes, and termination requirements of a license. These periodic renewals are intended to ensure that SNM facilities continue to meet safety, security, and environmental standards.
CHALLENGES WITH THE CURRENT SYSTEM 2.1 Administrative Burden The license renewal process is resource-intensive for both the NRC and licensees. Licensees must conduct assessments, prepare extensive documentation, and respond to NRC staff requests for additional information as part of the NRC review. The cost incurred by a licensee ranges from $750,000 to $1.25 million. Simultaneously, the NRC dedicates significant time, which is estimated to be between 1,700 and 3,000 hour0 days <br />0 hours <br />0 weeks <br />0 months <br />s5 to review a license renewal application. Using the NRCs FY 2025 hourly rate of
$322 per hour, the licensee is charged between $547,000 and $966,000 with the potential for an additional $600,000 charged to the licensee for contractor services. For a 40-year license period, it is likely that the cost would exceed this estimate. These efforts divert NRC time and attention from working on license applications of new applicants or existing licensees that can help increase the domestic fuel supply.
3 United States Nuclear Regulatory Commission, Ten-Year License Term for Major Operating Fuel Cycle Licensees, Federal Register Notice: 55 FR 24948, https://archives.federalregister.gov/issue_slice/1990/6/19/24947-24949.pdf, June 19, 1990.
4 United States Nuclear Regulatory Commission, SECY-06-0186, Increasing Licensing Terms for Certain Fuel Cycle Facilities, https://www.nrc.gov/reading-rm/doc-collections/commission/secys/2006/secy2006-0186/2006-0186scy.pdf, August 24, 2006.
5 United States Nuclear Regulatory Commission, ML23121A075, Updated Table of 2023 Estimates for Fuel Facility Licensing and Inspection Costs (May 2023), Downloaded December 9, 2024.
May 2025
© NEI 2025. All rights reserved.
nei.org 2 2.2 Redundancy of Oversight Mechanisms The renewal process duplicates ongoing oversight mechanisms, including routine inspections, reporting requirements, and continuous regulatory engagement. These mechanisms already ensure compliance and provide opportunities to address new issues or requirements, rendering the periodic renewal process redundant.
The NRC conducts regular inspections, audits, and reviews of SNM facilities. Additionally, licensees are required to report incidents, implement continuous improvement measures, and maintain compliance with evolving regulatory requirements. These ongoing activities already ensure a high level of safety and security, making periodic renewals unnecessary.
In September 2000, the NRC added Subpart H requirements to 10 CFR part 70, which required both new applicants and existing licensees possessing greater than a critical mass of SNM to conduct an integrated safety assessment6 (ISA) and submit an ISA summary to the NRC for approval.
Licensees are required to keep their ISAs current. In addition to the initial ISA summary, per 10 CFR 70.72 licensees must submit certain facility changes for the NRC's approval. Licensees are also required per 10 CFR 70.72(d) to submit to the NRC annual summaries of facility changes that did not need the NRC's preapproval and annual updates to the ISA summaries.
Recently, the NRC amended regulations that govern the license renewal process for NPUFs2 which, in addition to other requirements, eliminated the license term. The new regulations also require that all NPUF licensees submit to the NRC an updated final safety analysis report (FSAR) and subsequent FSAR updates every five years, which is considerably longer than the period of one year for the submission of revised ISAs for SNM facilities.
2.3 Delayed Innovation and Planning License renewals have the potential to delay or complicate long-term investments and innovation.
Furthermore, they create customer hesitancy in contract renewal, which may cause the facilities to defer or cancel investments in improvements or expansions due to uncertainties surrounding the renewal process. A lack of investment in the nuclear fuel cycle stifles the technological advancements and efficiency gains that potentially lead to enhanced nuclear fuel products.
2.4 Lack of Added Safety Benefit There is no evidence to suggest that periodic license renewals enhance safety or security outcomes, and as previously discussed, regulatory mechanisms outside the scope of license renewal exist for facility and process changes to be reviewed and approved by the NRC. This was a key aspect of the NRCs previous policy change in 2006. The lack of material changes in licensee operations and/or regulatory standards during renewal periods has the potential to create a rubber-stamp process that adds little value to the license renewal process.
6 An ISA is a systematic analysis that identifies facility and external hazards, potential accident sequences that include likelihood and consequences, and items relied on for safety to prevent potential accidents or mitigate their consequences.
May 2025
© NEI 2025. All rights reserved.
nei.org 3 PROPOSED SOLUTION: ELIMINATE TERM GOVERNING OPERATING LICENSES 3.1 Key Features of the New Framework
- 1. Elimination of Periodic Renewals:
Adjust the Commissions policy to remove terms from licenses for certain licensees who submit ISA summaries according to 10 CFR Part 70, Subpart H requirements and remove terms from those existing applicable licenses.
- 2. Maintain Ongoing Oversight:
Maintain ongoing regulatory oversight through regular inspections, audits, and real-time compliance monitoring. Continue to utilize the existing mechanisms that promptly address significant operational changes or violations.
- 3. Maintain Decommissioning Planning, Financial Assurances, and Oversight:
Maintain the current regulatory framework surrounding decommissioning planning and funding.
Allow NRC staff to review and approve environmental impacts of termless operation through the periodic submission of decommissioning funding plans and cost estimates by which licensees are required to update their Environmental Report as necessary.
- 4. Flexible Amendments for Operational Changes:
Enhance the efficiency of licensees to update their licenses for operational changes, expansions, or new technologies through streamlined amendment processes.
BENEFITS OF A TERMLESS OPERATING LICENSE 4.1 Improved Efficiency The removal of the license renewal process reduces administrative workloads for the NRC and licensees, freeing resources for more impactful oversight activities.
4.2 Continuous and Robust Oversight Enhanced ongoing oversight ensures that safety and security remain paramount, eliminating the false sense of security that periodic renewals might provide.
4.3 Encouragement and Innovation A termless operating license framework removes renewal uncertainties and fosters long-term planning and investments in facility improvements, enhancing operational safety, and efficiency.
4.4 Alignment with Industry Standards The proposal aligns with the recent decisions the NRC has made regarding NPUFs. As noted earlier, the NRC issued a final rule in December 20242 that eliminated license terms for research reactors and
May 2025
© NEI 2025. All rights reserved.
nei.org 4 medical therapy facilities, meaning they will no longer need to apply for renewed licenses to continue operating. Instead, they will be required to update their final safety analysis reports every five years to maintain a current licensing basis.
ADDRESSING POTENTIAL CONCERNS 5.1 Perceived Loss of Oversight Some stakeholders may worry that termless licenses reduce regulatory scrutiny. However, ongoing oversight mechanisms currently in place mitigate this concern. In fact, termless licenses could enhance oversight by reallocating NRC resources to continuous monitoring and licensing efforts, rather than cyclical renewals.
Further, eliminating the term of operating licenses for certain materials facilities would not affect the NRCs authority to issue orders modifying, suspending, or revoking a license; or taking other such action as may be necessary, pursuant to 10 CFR 2.202. It would also not affect the ability for any person to request that the NRC institute a proceeding pursuant to [section] 2.202 to modify, suspend, or revoke a license, or for any other action as may be proper pursuant to 10 CFR 2.206. In addition to these generally applicable provisions, specific provisions addressing the modification or revocation of licenses are also provided in 10 CFR 40.71 and 70.81.
5.2 Implementation Challenges Transitioning to a termless licensing system requires clear regulatory guidance and stakeholder engagement. The NRC should develop a phased implementation plan to ensure smooth adoption.
5.3 Legal and Policy Considerations There is no statutory limit on license terms for material licensees; it is strictly a matter of policy.7 Notwithstanding, the NRC will need to amend specific regulations to authorize a licensing process without terms. Legal reviews and consultations with stakeholders will be essential to this process.
CONCLUSION The NRC added Subpart H to 10 CFR Part 70 in September 2000, requiring new applicants and existing licensees possessing greater than a critical mass of SNM to perform an ISA and submit it to the NRC for approval.
These licensees are required to keep their ISAs current, and in addition to the initial ISA summary, licensees must submit the following information to the NRC: certain facility changes for the NRC's approval, annual summaries of facility changes that did not need the NRC's preapproval, and annual updates to the ISA summaries.
7 See, e.g., NRC, Notice of Receipt of Application for License[;] Notice of Availability of Applicants Environmental Report; Notice of Consideration of Issuance of License; and Notice of Hearing and Commission Order: Louisiana Energy Services, L.P.; Claiborne Enrichment Facility, 56 Fed.
Reg. 23310, 23312 (May 21, 1991)(stating [T]he term for a materials license is a matter of Commission discretion and is not established... by statute....).
May 2025
© NEI 2025. All rights reserved.
nei.org 5 Before the Subpart H requirements were implemented, the NRC relied on the 10-year license renewal as the main opportunity to review the facility safety basis. Now, along with the annual updates of the ISA summaries, the NRC is conducting more frequent reviews of the licensees' facility safety bases. The annual update of the ISA summaries keeps the NRC informed of changes due to material degradation and aging throughout the lifetime of a facility. Thus, the Subpart H requirements permit the NRC to continue to support safe operations of licensed facilities on an ongoing basis, regardless of the duration of the license.
With the requirement of the ISA, the NRCs current requirement for periodic license renewals is no longer necessary to ensure the safety and security of SNM facilities. A licensing system without terms, coupled with enhanced ongoing oversight, would improve regulatory efficiency, reduce administrative burdens, and foster innovation without compromising public or environmental safety. By adopting this approach, the NRC can better allocate its resources while maintaining its commitment to regulatory oversight. This initiative will aid the NRC in addressing requirements of the ADVANCE Act of 2024 by instilling efficiency, timeliness, and predictability.
RECOMMENDATIONS FOR NEXT STEPS:
- 1. Engage stakeholders, including industry representatives and public interest groups.
- 2. Pilot the new licensing system with select licensees to assess implementation challenges.
- 3. Implement regulatory and policy changes to remove terms from all applicable SNM facility licenses.
This shift would represent a significant step forward in modernizing NRC oversight and ensuring the continued safe, secure, and efficient operation of SNM facilities.