[Federal Register Volume 76, Number 160 (Thursday, August 18, 2011)]
[Notices]
[Pages 51357-51358]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-21067]
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DEPARTMENT OF ENERGY
Notice of Availability: American Assured Fuel Supply
AGENCY: The U.S. Department of Energy.
ACTION: Notice of availability.
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SUMMARY: The U.S. Department of Energy (DOE) is creating the American
Assured Fuel Supply (AFS), a reserve of low enriched uranium (LEU) to
serve as a backup fuel supply for foreign recipients to be supplied
through U.S. persons, or for domestic recipients, in the event of a
fuel supply disruption. DOE is committed to making the AFS available to
eligible recipients in the case of supply disruptions in the nuclear
fuel market. This effort supports DOE's nuclear nonproliferation
objectives by supporting civil nuclear energy development while
minimizing proliferation risks. This notice announces the availability
of the AFS and the DOE policy and process for eligible recipients to
purchase LEU from the AFS.
FOR FURTHER INFORMATION CONTACT: Rich Goorevich, Senior Policy Advisor,
Office of Nonproliferation and International Security, National Nuclear
Security Administration, U.S. Department of Energy, 1000 Independence
Ave., SW., Washington, DC 20585, Tel: 202-586-0589, Fax: 202-586-1348.
SUPPLEMENTARY INFORMATION:
I. Background
The Secretary of Energy is authorized pursuant to the Atomic Energy
of 1954, as amended (Pub. L. 83-703), and the Nuclear Non-Proliferation
Act of 1978 (NNPA) (Pub. L. 95-242) to encourage the widespread use of
atomic energy for peaceful purposes, and to enter into and distribute
nuclear material in cooperation with other nations where appropriate
safeguard measures are in place to ensure the material is properly
controlled and used for peaceful purposes. Consistent with those
responsibilities and missions, in 2005, Secretary of Energy Samuel
Bodman announced that the United States would set aside 17.4 metric
tons of surplus highly-enriched uranium (HEU) to be down-blended to LEU
and held in reserve to address disruptions in the nuclear fuel supply
of foreign recipients that have good nonproliferation credentials. This
initiative was originally referred to as the Reliable Fuel Supply
Initiative, and more recently renamed the American Assured Fuel Supply
(AFS).
Congress appropriated $49,540,000 in the Consolidated
Appropriations Act, 2008 (Pub. L. 110-161) to fund a portion of the
International Atomic Energy Agency's (IAEA) International Nuclear Fuel
Bank (INFB) initiative, which is envisioned as an LEU reserve that will
be administered by the IAEA and that will serve as a back-up for global
supply disruptions. Congress, in the Explanatory Statement accompanying
the House Appropriations Committee Print (which in this Act was given
the same effect as a joint explanatory statement), noted that the INFB
freed up the LEU set-aside initiated pursuant to Secretary Bodman's
2005 announcement, and recommended DOE also ``allow U.S. interests to
purchase uranium fuel from the Reliable Fuel Supply [now the AFS] in
the event of supply disruption.'' (H. Approp. Cmte. Print at 592.)
The AFS is intended to complement the INFB. Specifically, the AFS
will support countries that pursue peaceful civilian nuclear programs
by providing a back-up source of fuel in the event of a supply
disruption that threatens the normal operation of their programs. In
addition, in accordance with the congressional request, the AFS will be
available to address supply disruptions affecting domestic nuclear
power plants. The AFS reserve is modest in size and designed to not
disrupt or replace market mechanisms. Rather, it is to be drawn upon
only in the event of
[[Page 51358]]
demonstrated need and after all other market options are exhausted.
The National Nuclear Security Administration (NNSA), a semi-
autonomous agency within DOE, is responsible for the administration and
implementation of the AFS. Down-blending of the 17.4 metric tons of
surplus HEU began in 2007 and is scheduled for completion in 2012. When
complete, the down-blending will result in approximately 290 metric
tons of LEU, of which approximately 230 metric tons will form the
reserve. The remainder will be used to pay for the down-blending and
processing costs.
For additional information on the potential environmental impacts
of DOE's ongoing HEU disposition activities and the AFS initiative in
particular, please see ``Amended Record of Decision: Disposition of
Surplus Highly Enriched Uranium Environmental Impact Statement,'' also
published in today's Federal Register.
II. Policy and Process for Accessing AFS Material
DOE intends to implement the following policies and processes to
evaluate requests for purchases and the sale of LEU from the AFS.
Policy. DOE intends for the AFS to be made available to eligible
recipients that meet certain nonproliferation criteria in the case of
supply disruptions in the nuclear fuel market. DOE will sell LEU from
the AFS consistent with applicable laws, regulations, and Departmental
policies concerning excess uranium disposition. DOE will sell LEU to
U.S. persons who will in turn sell to domestic or foreign recipients
only where DOE has confirmed that there is a fuel supply disruption
that cannot be addressed by normal market mechanisms. If foreign
reactor operators face a supply disruption, the AFS will be available
to them through their U.S. suppliers.
The sale of LEU from the AFS will be conducted consistent with the
policies and guidance in the ``Secretary of Energy's 2008 Policy
Statement on Management of Department of Energy's Excess Uranium
Inventory'' (March 11, 2008) and the DOE Excess Uranium Inventory
Management Plan. In all cases, the U.S. person purchasing the LEU must
meet all applicable licensing requirements and other authorizations for
the possession, use, and transportation of nuclear materials. If the
AFS is used to supply a foreign recipient, the U.S. person exporting
the LEU must obtain or possess an appropriate license from the Nuclear
Regulatory Commission. DOE will establish the price of the LEU at the
time of delivery using commercially acceptable market indices, to the
extent practical, and ensure that reasonable value is obtained. All
proceeds from the sale will be deposited in the U.S. Treasury.
Process. Any U.S. person requesting to purchase LEU from the AFS
must submit a request in writing to the NNSA Office of Nonproliferation
and International Security. The request must set forth facts
demonstrating that there is a fuel supply disruption for which fuel
cannot be obtained through normal market conditions and that the end-
user, if foreign, has good nonproliferation credentials. In addition,
the request must include specific information about the purchase,
including but not limited to: the time and place of delivery; the
desired quantity and composition of LEU; the recipient and associated
country of final end-use; confirmation of qualification for an export
license, as required; and, if applicable, information on any
intermediate consignee and country. Any foreign persons requesting to
purchase LEU from the AFS can do so through their U.S. supplier.
The U.S. person purchasing LEU from the AFS will be solely
responsible for transportation, insurance, safety, and liability issues
once title to the LEU transfers. The LEU will be in the form of uranium
hexafluoride at a specific assay (generally 4.95% U-235); DOE will
assume no responsibility beyond certification that the LEU meets ASTM
International, formerly American Society for testing (ASTM),
specifications and is of a certain quantity and assay.
DOE will respond to requests within a reasonable time period,
consistent with the requester's needs, the circumstances surrounding
the request, and other relevant and necessary governmental interests.
DOE reserves the right to prioritize requests, and to seek additional
information as necessary to review the request.
DOE will establish an AFS Committee, which will be responsible for
reviewing requests for LEU in the AFS and make recommendations to the
Secretary of Energy on the sale of LEU from the AFS. The Committee will
be chaired by the NNSA Office of Nonproliferation and International
Security and include representatives from NNSA's Office of Fissile
Material Disposition, DOE's Office of Nuclear Energy, DOE's Office of
Environmental Management, and the DOE and NNSA Offices of General
Counsel. For transactions that trigger the requirements of section
3112(d) of the USEC Privatization Act, DOE will assess the impact of a
sale from the AFS on the domestic uranium market, and will provide its
recommendation to the Secretary to make the requisite determination
that the transfer will not have an adverse material impact on the
domestic uranium enrichment, conversion, or mining industries.
DOE will receive concurrence from the Department of State, and
consult with the Department of Commerce and the Department of Defense,
prior to the approval and sale of AFS material to a U.S. person for use
in a foreign country. For all sales from the AFS, DOE will notify other
federal agencies (e.g., U.S. Nuclear Regulatory Commission, Department
of State, Department of Commerce and the Department of Defense) prior
to the sale, as appropriate.
III. Projected Timeline
The LEU for the AFS will come from down-blending 17.4 metric tons
of HEU. When complete, the down-blending will result in approximately
290 metric tons of LEU, of which approximately 230 metric tons will
form the reserve. The remainder will be used to pay for the down-
blending and processing costs. This will leave the AFS with
approximately 6 reloads for an average 1000 MW reactor. The down-
blending will be completed in 2012.
As of the publication of this notice, most of the down-blending for
the AFS has been completed. DOE will begin accepting requests for
purchases of the AFS material pursuant to the above-stated policy and
process at this time.
Issued in Washington, DC, this 13th day of May, 2011.
Steven Chu,
Secretary, U.S. Department of Energy.
[FR Doc. 2011-21067 Filed 8-17-11; 8:45 am]
BILLING CODE 6450-01-P