ML25162A133

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Letter - NRC Approval of ACOs HALEU Phase III Amendment Request Amendment 29
ML25162A133
Person / Time
Site: 07007004
Issue date: 06/26/2025
From: Lav S
NRC/NMSS/DFM/FFLB
To: Karen Fitch
American Centrifuge Operating
Shared Package
ML25162A132 List:
References
EPID L-2025-LLA-0000
Download: ML25162A133 (1)


Text

OFFICIAL USE ONLY SECURITY - RELATED INFORMATION OFFICIAL USE ONLY SECURITY - RELATED INFORMATION Kelly L. Fitch, Regulatory Manager American Centrifuge Operating, LLC P.O. Box 628 Mail Stop 7560 3930 U.S. 23 South Piketon, OH 45661

SUBJECT:

APPROVAL OF AMERICAN CENTRIFUGE OPERATINGS LICENSE AMENDMENT REQUEST FOR PHASE III OF ITS HIGH-ASSAY LOW-ENRICHED URANIUM PROGRAM: AMENDMENT 29 OF SPECIAL NUCLEAR MATERIALS LICENSE NUMBER SNM-2011 (ENTERPRISE PROJECT IDENTIFICATION: L-2025-LLA-0000)

Dear Kelly L. Fitch:

By letter dated December 19, 2024 (Agencywide Documents Access and Management System

[ADAMS] Accession No. ML24366A069), American Centrifuge Operating (ACO), a wholly owned subsidiary of Centrus Energy Corp., requested review and approval of proposed changes to special nuclear material license SNM-2011 for Phase III of the high-assay low-enriched uranium (HALEU) program at the American Centrifuge Plant (ACP) in Piketon, Ohio.

ACOs Phase III request involved an increase to the possession limits from the current levels approved on September 20, 2024 (ML24068A194), to levels that support production of 900 kg of HALEU UF6 per year, over three, 3-year optional periods, for a total of up to 9 years starting on July 1, 2025.

By letter dated May 20, 2025 (ML25162A275 non-public), the U.S. Department of Energy (DOE) notified ACO that it intended to exercise the HALEU demonstration contract for the first 3-year optional period 1 of Phase 3 starting on July 1, 2025. By letter dated June 12, 2025 (ML25164A029), ACO supplemented its license amendment request (LAR) by clarifying in the license application document that its possession limits contained in the LAR were for operations conducted during the entire 9-year period of Phase III. In addition, ACO clarified in License Condition (LC) 31, that if during Phase III, there were substantive changes made to the contract, such as a significant decrease in the DOEs funding of Phase III operations, ACO will submit a request to the U.S. Nuclear Regulatory Commission (NRC) to amend the licensing documentation. The modified LC 31 is as follows:

Documents transmitted herewith contain Security Related Information. When separated from enclosures 1 and 2, this document is decontrolled.

June 26, 2025

OFFICIAL USE ONLY SECURITY - RELATED INFORMATION K. Fitch 2

OFFICIAL USE ONLY SECURITY - RELATED INFORMATION ACO shall provide at least a 30-day prior written notification to the NRC of anticipated or needed changes to its HALEU Demonstration contract that are material to ACOs license, including contract completion date extensions and DOE funding at similar or higher levels for additional option periods. Such written notifications shall include the anticipated or needed changes to the contract and the status of DOEs review with respect to a proposed change. Should substantive changes be made to the HALEU Demonstration contract that affects the NRCs prior authorization to increase the possession limits of Phase III in its entirety, ACO shall submit a request to amend the necessary licensing documentation.

On June 17, 2025, DOE and ACO signed the modified contract for period 1 of Phase III. ACO provided the modified contract to the NRC on June 17, 2025 (ML25169A055).

The NRC staff has completed its review of the December 19, 2024 request and its supplement dated June 12, 2025, and the contract dated June 17, 2025. The details associated with the review are documented in the enclosed safety evaluation report (SER). The enclosed Amendment 29 to License SNM-2011 will become effective on July 1, 2025. The Environmental Assessment (ML25084A113) associated with this license amendment was issued on June 16, 2025, and published in the Federal Register on June 23, 2025 (ML25113A006).

As part of this licensing action, the following amendments to License SNM-2011 are being made:

(1) LC 10.c has been modified to incorporate the changes made to the Environmental Report (LA-3605-0002) consistent with ACOs submittal dated December 19, 2024.

(2) LC 10.d has been modified to incorporate the changes made to the Fundamental Nuclear Material Control Plan (NR-3605-0005) consistent with ACOs submittal dated December 19, 2024.

(3) LC 10.e been modified to incorporate the changes made to the License Application (LA-3605-0001) consistent with ACOs submittal dated December 19, 2024, and its supplement dated June 17, 2025.

(4) LC 10.s has been modified to incorporate the changes made to the Security Plan for the Protection of Classified Matter (SP-3605-0041) consistent with ACOs submittal dated December 19, 2024.

(5) LC 10.y has been modified to incorporate the changes made to the Security Plan for the Physical Protection of Special Nuclear Material at the American Centrifuge Plant in Piketon, Ohio (SP-3605-0042) consistent with ACOs submittal dated December 19, 2024.

(6) LC 31 was modified to further clarify non-substantive changes to the contract between DOE and ACO and commit ACO to submit any substantive changes to the contract for prior review and approval consistent with ACOs submittal dated June 12, 2025.

OFFICIAL USE ONLY SECURITY - RELATED INFORMATION K. Fitch 3

OFFICIAL USE ONLY SECURITY - RELATED INFORMATION It is noted that certain changes made to LA-3605-0002 and LA-3605-0001 and all changes made to NR-3605-0005, SP-3605-0041 and SP-3605-0042 were non-substantive and therefore did not require NRC review and approval.

In accordance with Title 10 of the Code of Federal Regulations Part 2, Agency Rules of Practice and Procedure, a copy of this letter and public enclosures will be available electronically for public inspection in the NRC Public Document Room (PDR) or from the Publicly Available Records component of the NRCs ADAMS. ADAMS is accessible from the NRC website at http://www.nrc.gov/reading-rm/adams.html. The PDR is open by appointment.

To make an appointment to visit the PDR, please send an email to PDR.Resource@nrc.gov or call 1-800-397-4209 or 301-415-4737, between 8 a.m. and 4 p.m. eastern time (ET), Monday through Friday, except Federal holidays. All other conditions of this license will remain the same. Enclosed are copies of the revised Materials License SNM-2011 and the SER.

This letter and the enclosed amendment closes efforts under Enterprise Project Identification Number L-2025-LLA-0000.

If you have any questions regarding this matter, please contact Yawar Faraz by telephone at 301-415-7220, or via email at Yawar.Faraz@nrc.gov.

Sincerely, Samantha Lav, Chief Fuel Facility Licensing Branch Division of Fuel Management Office of Nuclear Material Safety and Safeguards Docket No.: 07007004 License No.: SNM-2011

Enclosures:

1. SER (OUO-SRI)
2. Amendment 29 of the ACP License SNM-2011 (OUO-SRI)
3. Amendment 29 of the ACP License SNM-2011 (Public)
4. Redacted SER (Public) cc: M. Snider, General Manager, ACO M. Reim, DOE NE-HQ J. Hutson, NRC Contractor S. Rice, NRC Contractor centrus_acp@listmgr.nrc.gov Signed by Lav, Samantha on 06/26/25

ML25162A132 (pkg), ML25162A133 (ltr), ML25162A134 (encl 1),

ML25162A135 (encl 2), ML25162A136 (encl 3), ML25177A090 (encl 4) *via email OFFICE NMSS/DFM/FFLB NMSS/DFM/FFLB NMSS/DFM/FFLB NMSS/DFM/NARAB NAME YFaraz for RMathis YFaraz JGoodridge TGovan DATE 06/17/2025 06/17/2025 06/18/2025 06/18/2025 OFFICE NMSS/REFS/FAB NMSS/REFS/EPMB2 OGC NMSS/DFM/FFLB NAME FMiller RSun MLemoncelli*

SLav DATE 06/18/2025 06/18/2025 06/24/2025 06/26/2025