80_FR_65934 80 FR 65727 - Excess Uranium Management: Secretarial Determination of No Adverse Impact on the Domestic Uranium Mining, Conversion, and Enrichment Industries

80 FR 65727 - Excess Uranium Management: Secretarial Determination of No Adverse Impact on the Domestic Uranium Mining, Conversion, and Enrichment Industries

DEPARTMENT OF ENERGY
National Nuclear Security Administration

Federal Register Volume 80, Issue 207 (October 27, 2015)

Page Range65727-65730
FR Document2015-27303

On August 2, 2015, the Secretary of Energy issued a determination (``Secretarial Determination'') covering the sale or transfer of high-assay low enriched uranium for medical isotope development projects. The Secretarial Determination covers transfers of up to 25 kilograms uranium (kgU) per year of low enriched uranium (LEU) at up to 19.75 percent uranium-235 for transfers in the two years following approval of the determination to support molybdenum-99 producers in commercial research and isotope production applications. For the reasons set forth in the Department's ``Analysis of Potential Impacts of Uranium Transfers on the Domestic Uranium Mining, Conversion, and Enrichment Industries,'' which is incorporated into the determination, the Secretary determined that these transfers will not have an adverse material impact on the domestic uranium mining, conversion, or enrichment industry.

Federal Register, Volume 80 Issue 207 (Tuesday, October 27, 2015)
[Federal Register Volume 80, Number 207 (Tuesday, October 27, 2015)]
[Notices]
[Pages 65727-65730]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-27303]


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DEPARTMENT OF ENERGY

National Nuclear Security Administration


Excess Uranium Management: Secretarial Determination of No 
Adverse Impact on the Domestic Uranium Mining, Conversion, and 
Enrichment Industries

AGENCY: National Nuclear Security Administration, Department of Energy

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: On August 2, 2015, the Secretary of Energy issued a 
determination (``Secretarial Determination'') covering the sale or 
transfer of high-assay low enriched uranium for medical isotope 
development projects. The Secretarial Determination covers transfers of 
up to 25 kilograms uranium (kgU) per year of low enriched uranium (LEU) 
at up to 19.75 percent uranium-235 for transfers in the two years 
following approval of the determination to support molybdenum-99 
producers in commercial research and isotope production applications. 
For the reasons set forth in the Department's ``Analysis of Potential 
Impacts of Uranium Transfers on the Domestic Uranium Mining, 
Conversion, and Enrichment Industries,'' which is incorporated into the 
determination, the Secretary determined that these transfers will not 
have an adverse material impact on the domestic uranium mining, 
conversion, or enrichment industry.

FOR FURTHER INFORMATION CONTACT: Mr. Randy Howell, NNSA Mo-99 Domestic 
Project Support, U.S. Department of

[[Page 65728]]

Energy, 1000 Independence Avenue SW., Washington, DC 20585, telephone 
202-586-8834, or email [email protected].

SUPPLEMENTARY INFORMATION: The Department of Energy (DOE) holds 
inventories of uranium in various forms and quantities--including low-
enriched uranium (LEU) and natural uranium--that have been declared as 
excess and are not dedicated to U.S. national security missions. Within 
DOE, the Office of Nuclear Energy (NE), the Office of Environmental 
Management (EM), and the National Nuclear Security Administration 
(NNSA) coordinate the management of these excess uranium inventories. 
NNSA down-blends excess highly-enriched uranium to high-assay low-
enriched uranium--above the commercial level of 5 wt-% and up to about 
19.75 wt-% of the isotope U-235--in support of its nonproliferation 
objectives and missions. Common applications of such high-assay 
materials are as fuels for domestic and foreign research reactors and 
as target materials for the production of medical isotopes.
    This notice involves high-assay LEU transfers of this type to 
support molybdenum-99 producers in either and/or both of the above 
applications. These transfers fulfill a directive in the American 
Medical Isotope Production Act of 2012 (Pub. L. 112-239, Division C, 
Title XXXI, Subtitle F, 42 U.S.C. 2065) for the Department to carry out 
a program of assistance for the development of fuels, targets, and 
processes for domestic molybdenum-99 production that do not use highly 
enriched uranium. These transfers also support U.S. nuclear 
nonproliferation initiatives, by providing a path for down-blended 
highly enriched uranium (HEU) and encouraging the use of LEU in civil 
applications in lieu of HEU.
    These transfers are conducted in accordance with the Atomic Energy 
Act of 1954 (42 U.S.C. 2011 et seq., ``AEA'') and other applicable law. 
Specifically, Title I, Chapters 6, 14, of the AEA authorize DOE to 
transfer special nuclear material; LEU is a type of special nuclear 
material. The USEC Privatization Act (Pub. L. 104-134, 42 U.S.C. 2297h 
et seq.) places certain limitations on DOE's authority to transfer 
uranium from its excess uranium inventory. Specifically, under section 
3112(d)(2)(B) of the USEC Privatization Act (42 U.S.C. 2297h-
10(d)(2)(B)), the Secretary must determine that the transfers ``will 
not have an adverse material impact on the domestic uranium mining, 
conversion or enrichment industry, taking into account the sales of 
uranium under the Russian Highly Enriched Uranium Agreement and the 
Suspension Agreement'' before DOE makes certain transfers of natural or 
low-enriched uranium under the AEA.
    On August 2, 2015, the Secretary of Energy issued a determination 
(``Secretarial Determination'') covering the sale or transfer of high-
assay low enriched uranium for medical isotope development projects. 
The Secretarial Determination covers transfers of up to 25 kilograms 
per year of LEU at up to 19.75 percent uranium-235 for transfers in the 
two years following approval of the determination to support 
molybdenum-99 producers in commercial research and isotope production 
applications. The Secretary based his conclusion on the Department's 
``Analysis of Potential Impacts of Uranium Transfers on the Domestic 
Uranium Mining, Conversion, and Enrichment Industries,'' which is 
incorporated into the determination. The Secretary considered, inter 
alia, the requirements of the USEC Privatization Act of 1996 (42 U.S.C. 
2297h et seq.), the nature of uranium markets, and the current status 
of the domestic uranium industries, as well as sales of uranium under 
the Russian HEU Agreement and the Suspension Agreement.

    Issued in Washington, DC.
Anne M. Harrington,
Deputy Administrator for Defense Nuclear Nonproliferation, National 
Nuclear Security Administration.
    Set forth below is the full text of the Secretarial Determination.

SECRETARIAL DETERMINATION FOR THE SALE OR TRANSFER OF URANIUM

    I determine that the transfer of up to the equivalent of 25 kgU of 
19.75%-assay low enriched uranium per calendar year to support the 
development and demonstration of molybdenum-99 production capabilities 
will not have an adverse material impact on the domestic mining, 
conversion, or enrichment industry. I base my conclusions on the 
Department's ``Analysis of Potential Impacts of Uranium Transfers on 
the Domestic Uranium Mining, Conversion, and Enrichment Industries,'' 
which is incorporated herein. As explained in that document, I have 
considered, inter alia, the requirements of the USEC Privatization Act 
of 1996 (42 U.S.C. 2297h et seq.), the nature of uranium markets, and 
the current status of the domestic uranium industries. I have also 
taken into account the sales of uranium under the Russian HEU Agreement 
and the Suspension Agreement.

Date: August 2, 2015.

Ernest J. Moniz,

Secretary of Energy

Analysis of Potential Impacts of Uranium Transfers on the Domestic 
Uranium Mining, Conversion, and Enrichment Industries

I. Introduction

A. Legal Authority

    DOE manages its excess uranium inventory in accordance with the 
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq., ``AEA'') and related 
statutes. Specifically, Title I, Chapters 6-7, 14, of the AEA authorize 
DOE to transfer special nuclear material and source material. LEU and 
natural uranium are types of special nuclear material and source 
material, respectively.
    The USEC Privatization Act (Pub. L. 104-134, 42 U.S.C. 2297h et 
seq.) places certain limitations on DOE's authority to transfer uranium 
from its excess uranium inventory. Specifically, under section 3112(d) 
of the USEC Privatization Act (42 U.S.C. 2297h-10(d)), DOE may make 
certain transfers of natural or low-enriched uranium if the Secretary 
determines that the transfers ``will not have an adverse material 
impact on the domestic uranium mining, conversion or enrichment 
industry, taking into account the sales of uranium under the Russian 
Highly Enriched Uranium Agreement and the Suspension Agreement.'' (42 
U.S.C. 2297h-10(d)(2)(B)). The validity of any determination under this 
section is limited to no more than two calendar years subsequent to the 
determination (see Section 306(a) of Division D, Title III of the 
Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 
113-235)).

B. Transfers Considered in This Determination

    The American Medical Isotopes Production Act of 2012 (Pub. L. 112-
239, Division C, Title XXXI, Subtitle F, 42 U.S.C. 2065) directs the 
Department to carry out a program to provide assistance for the 
development of fuels, targets, and processes for domestic molybdenum-99 
production that do not use highly enriched uranium (HEU). The transfer 
of small quantities of high-assay low enriched uranium (LEU) (LEU 
enriched above 5 wt-%, but below 20 wt-% U-235) is appropriate and 
necessary to assist parties engaged in research and development (R&D) 
and

[[Page 65729]]

commercial demonstrations of the aforementioned fuels, targets, and 
processes. Material transfers under this determination will occur 
primarily during calendar years 2015 and 2016 and consist of no more 
than 25 kgU of material enriched at up to 19.75 wt-% of the isotope U-
235 in any calendar year.\1\ Assuming a tails assay of 0.20 wt-% U-235, 
it would require approximately 1 MTU of natural uranium hexafluoride 
and approximately 1,100 separative work units (``SWU'') to produce that 
quantity of 19.75 wt-% LEU.
---------------------------------------------------------------------------

    \1\ If any transfers include material at an assay other than 
19.75 wt-%, the amount will be converted so that the total amount in 
any calendar year is equivalent to no more than 25 kgU at 19.75 wt-
%.
---------------------------------------------------------------------------

II. Analytical Approach

    Consistent with the analytical approach outlined in the 
Department's prior Analysis of Potential Impacts of Uranium Transfers, 
80 FR 26,366, 26,379-84 (May 7, 2015), this analysis evaluates two 
forecasts: one reflecting the state of the domestic uranium industries 
if DOE goes forward with the transfer and one reflecting the state of 
the domestic uranium industries if DOE does not go forward with the 
transfer. DOE compares these two forecasts to determine the relevant 
impacts on the domestic uranium industries. In conducting this 
comparison, DOE has developed a set of factors that this analysis 
considers in assessing whether DOE's uranium transfers will have an 
``adverse material impact'' on the domestic uranium mining, conversion, 
or enrichment industries:

1. Prices
2. Production at existing facilities
3. Employment levels in the industry
4. Changes in capital improvement plans and development of future 
facilities
5. Long-term viability and health of the industry
6. Russian HEU Agreement and Suspension Agreement

    While no single factor is dispositive of the issue, DOE believes 
that these factors are representative of the types of impacts that the 
proposed transfers may have on the domestic uranium industries. Not 
every factor will necessarily be relevant on a given occasion or to a 
particular industry; DOE intends this list of factors only as a guide 
to its analysis.

III. Assessment of Potential Impacts

    There is currently no domestic commercial supplier of high-assay 
LEU. In particular, with the closing of the Paducah Gaseous Diffusion 
Plant in 2013, the only remaining operational uranium enrichment 
facility in the U.S. is that operated by Louisiana Energy Services, 
LLC, which is licensed by the Nuclear Regulatory Commission to possess 
LEU only up to 5 wt-% U-235,\2\ meaning no domestic commercial uranium 
enrichment facility is currently licensed to possess the high-assay LEU 
contemplated for transfer.
---------------------------------------------------------------------------

    \2\ U.S. Nuclear Regulatory Commission, Materials License. 
License Number SNM-2010, Amendment 57, Docket Number 70-3103.
---------------------------------------------------------------------------

    Modern enrichment facilities are technologically able to produce 
such materials; however, due to the economics of enrichment, owners and 
operators of such enrichment facilities have thus far chosen not to 
pursue enrichment of high-assay LEU. To produce such LEU, a commercial 
supplier would need to secure an appropriate license or license 
amendment, a task that would require an investment of money and time. 
Projections of demand in the nuclear medicine industry lead to the 
forecast that the need for high-assay LEU in future years will range 
from tens to hundreds of kilograms. Compared to the thousands of metric 
tons of enriched uranium required by the commercial power industry, and 
given the costs required for licensing, the production of such small 
quantities of high-assay materials is not likely to be economically 
viable for private industry.
    There also does not exist currently a foreign commercial producer 
or supplier of high-assay low enriched uranium for use in domestic 
research reactors or medical isotope production applications; what 
high-assay LEU is produced internationally, for example to convert 
Russian-supplied reactors from highly enriched uranium (HEU) cores, is 
produced by a state-owned enterprise for official purposes via down-
blending excess HEU.
    Given the specialized uses, designs, and regulatory requirements of 
the fuels and targets used for these isotope production purposes, it is 
not feasible to replace the DOE-sourced high-assay LEU used in research 
reactor fuel or targets with commercial-assay LEU because fuel or 
targets fabricated from commercial-assay LEU would generally not serve 
the intended purposes.
    Given the lack of commercial production or supply of such 
materials, an analysis of the impact of transfers based on an 
assessment of the six factors listed in Section II is straightforward: 
since the transfer of DOE material would not displace primary 
production of uranium concentrates, conversion services, or enrichment 
services, there is no impact on the domestic uranium industries with 
respect to any of the factors.
    Even if the DOE transfers would displace production among the 
domestic uranium mining, conversion, or enrichment industries, the 
amount is so small that the effects would be de minimis. With respect 
to the three uranium industries, in order to produce the amount of LEU 
in DOE transfers from primary production, it would require about 2500 
pounds of uranium concentrates, 950 kgU of conversion services, and 
approximately 1,100 SWU of enrichment services. By comparison, the 
entire global fleet of nuclear reactors is expected to need in 2015 
approximately 160 million pounds U3O8, 56 million 
kgU of conversion services, and about 45 million SWU.\3\ For further 
comparison, the U.S. uranium mining industry produced approximately 4.9 
million pounds of U3O8 in 2014.\4\ The domestic 
conversion industry consists of only one facility. In recent years, 
that facility has produced between 11 and 12 million kgU. As mentioned 
above, there is only one currently operating enrichment facility in the 
U.S. The total capacity of that facility is currently about 3.7 million 
SWU.
---------------------------------------------------------------------------

    \3\ These estimates of global requirements come from an analysis 
prepared by Energy Resources International, Inc. (ERI), dated 
February 20, 2015. This report is available at http://www.energy.gov/ne/downloads/excess-uranium-management. DOE tasked 
ERI to prepare this analysis to assess the potential effects on the 
domestic uranium mining, conversion, and enrichment industries of 
the introduction into the market of uranium transfers that are not 
the subject of this assessment. ERI develops its requirements 
forecasts for various customers. Because of ERI's general expertise 
in the uranium markets and contacts with market participants, DOE 
believes ERI's general market information is reliable.
    \4\ EIA, Domestic Uranium Production Report Q4 2014, 2 (January 
2015).
---------------------------------------------------------------------------

    Given how small DOE transfers are compared to either global reactor 
requirements or domestic production, DOE concludes that transfers at 
this level would have almost no impact on the domestic uranium mining, 
conversion, or enrichment industries with respect to any of the six 
factors listed in Section II.
    DOE recently issued a determination that certain transfers of 
natural uranium in exchange for cleanup services at the Portsmouth 
Gaseous Diffusion Plant and of LEU in exchange for downblending 
services will not have an adverse material impact on the domestic 
uranium industries. The analysis supporting that determination also 
considered various other past transfers,

[[Page 65730]]

the uranium from which may still be affecting markets. 80 FR at 26,385. 
In reaching the conclusion that transfers of up to 25 kg per year of 
high-assay LEU will have at most de minimis impacts on the domestic 
uranium industries, DOE takes account of the various transfers assessed 
for its recent determination.

IV. Conclusion

    For the reasons discussed above, these transfers will not have an 
adverse material impact on the domestic uranium mining, conversion, or 
enrichment industry taking into account sales under the Russian HEU 
Agreement and Suspension Agreement.

[FR Doc. 2015-27303 Filed 10-26-15; 8:45 am]
BILLING CODE 6450-01-P



                                                                           Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices                                               65727

                                              provide in the on-line registration form                DEPARTMENT OF ENERGY                                  received five days prior to the meeting
                                              will be used to forward instructions on                                                                       and reasonable provision will be made
                                              how to join the meeting using WebEx.                    Environmental Management Site-                        to include the presentation in the
                                              WebEx requires a computer, web                          Specific Advisory Board, Northern New                 agenda. The Deputy Designated Federal
                                              browser and an installed application                    Mexico                                                Officer is empowered to conduct the
                                              (free). Instructions for joining the                                                                          meeting in a fashion that will facilitate
                                                                                                      AGENCY:   Department of Energy.
                                              webcast will be sent to you two days in                                                                       the orderly conduct of business.
                                                                                                      ACTION:   Notice of open meeting.                     Individuals wishing to make public
                                              advance of the meeting.
                                                                                                      SUMMARY:  This notice announces a                     comments will be provided a maximum
                                              FOR FURTHER INFORMATION CONTACT:    Dr.                                                                       of five minutes to present their
                                              Robert J. Wright, U.S. Department of                    meeting of the Environmental
                                                                                                      Management Site-Specific Advisory                     comments.
                                              Energy, 4G–036/Forrestal Building,                                                                              Minutes: Minutes will be available by
                                                                                                      Board (EM SSAB), Northern New
                                              1000 Independence Avenue SW.,                                                                                 writing or calling Menice Santistevan at
                                                                                                      Mexico. The Federal Advisory
                                              Washington, DC 20585–0001;                                                                                    the address or phone number listed
                                                                                                      Committee Act (Pub. L. 92–463, 86 Stat.
                                              Telephone: 202–586–0429.                                                                                      above. Minutes and other Board
                                                                                                      770) requires that public notice of this
                                                                                                      meeting be announced in the Federal                   documents are on the Internet at:
                                              SUPPLEMENTARY INFORMATION:
                                                                                                      Register.                                             http://www.nnmcab.energy.gov/.
                                                 Purpose of the Council: The National
                                                                                                                                                              Issued at Washington, DC, on October 21,
                                              Coal Council provides advice and                        DATES:  Wednesday, November 18, 2015;                 2015.
                                              recommendations to the Secretary of                     1:00 p.m.–5:15 p.m.                                   LaTanya R. Butler,
                                              Energy, on general policy matters                       ADDRESSES: New Mexico Highlands                       Deputy Committee Management Officer.
                                              relating to coal and the coal industry.                 University Campus; 800 National                       [FR Doc. 2015–27298 Filed 10–26–15; 8:45 am]
                                                 Purpose of Meeting: The National                     Avenue; Las Vegas, New Mexico 87701.
                                                                                                                                                            BILLING CODE 6450–01–P
                                              Coal Council (the Council) will hold a                  FOR FURTHER INFORMATION CONTACT:
                                              virtual meeting via WebEx beginning at                  Menice Santistevan, Northern New
                                              11:00 a.m. (EST) on Thursday,                           Mexico Citizens’ Advisory Board                       DEPARTMENT OF ENERGY
                                              November 12, 2015, for acceptance and                   (NNMCAB), 94 Cities of Gold Road,
                                              discussion of the white paper, ‘‘Leveling               Santa Fe, NM 87506. Phone (505) 995–                  National Nuclear Security
                                              the Playing Field for Low Carbon Coal’’,                0393; Fax (505) 989–1752 or Email:                    Administration
                                              from the National Coal Council Coal                     Menice.Santistevan@em.doe.gov.
                                                                                                                                                            Excess Uranium Management:
                                              Policy Committee. After deliberation,                   SUPPLEMENTARY INFORMATION:
                                                                                                         Purpose of the Board: The purpose of               Secretarial Determination of No
                                              the white paper will be forwarded to the                                                                      Adverse Impact on the Domestic
                                              Secretary of Energy.                                    the Board is to make recommendations
                                                                                                      to DOE–EM and site management in the                  Uranium Mining, Conversion, and
                                                 A draft of the white paper will be                                                                         Enrichment Industries
                                                                                                      areas of environmental restoration,
                                              available five days before the WebEx                    waste management, and related                         AGENCY: National Nuclear Security
                                              (November 5, 2015) on the National                      activities.                                           Administration, Department of Energy
                                              Coal Council Web site at the following                     Tentative Agenda                                   ACTION: Notice.
                                              URL: http://                                            • Call to Order
                                              www.nationalcoalcouncil.org/studies/                    • Welcome and Introductions                           SUMMARY:    On August 2, 2015, the
                                              2015/Leveling-the-Playing-Field-for-                    • Approval of Agenda and Meeting                      Secretary of Energy issued a
                                              Low-Carbon-Coal-Fall-2015.pdf.                             Minutes of September 30, 2015                      determination (‘‘Secretarial
                                              Tentative Agenda                                        • Old Business                                        Determination’’) covering the sale or
                                                                                                      • New Business                                        transfer of high-assay low enriched
                                              1. Call to Order                                        • DOE Updates and Presentations                       uranium for medical isotope
                                                                                                      • Update from NNMCAB Liaisons                         development projects. The Secretarial
                                              2. Report of the Coal Policy Committee
                                                                                                      • Public Comment Period                               Determination covers transfers of up to
                                                  on the White Paper
                                                                                                      • Wrap-Up Comments from NNMCAB                        25 kilograms uranium (kgU) per year of
                                              3. Motion on the Fate of the White Paper                   Members                                            low enriched uranium (LEU) at up to
                                              4. Adjourn                                              • Adjourn                                             19.75 percent uranium-235 for transfers
                                                                                                         Public Participation: The EM SSAB,                 in the two years following approval of
                                                Public Participation: The virtual                                                                           the determination to support
                                                                                                      Northern New Mexico, welcomes the
                                              meeting is open to the public. If you                                                                         molybdenum-99 producers in
                                                                                                      attendance of the public at its advisory
                                              would like to file a written statement                  committee meetings and will make                      commercial research and isotope
                                              with the Council, you may do so either                  every effort to accommodate persons                   production applications. For the reasons
                                              before or within 5 days after the                       with physical disabilities or special                 set forth in the Department’s ‘‘Analysis
                                              meeting.                                                needs. If you require special                         of Potential Impacts of Uranium
                                                Minutes: A link to the audio/video                    accommodations due to a disability,                   Transfers on the Domestic Uranium
                                              recording of the meeting will be posted                 please contact Menice Santistevan at                  Mining, Conversion, and Enrichment
                                              within 10-days on the NCC Web site at:                  least seven days in advance of the                    Industries,’’ which is incorporated into
                                              http://www.nationalcoalcouncil.org/.                    meeting at the telephone number listed                the determination, the Secretary
tkelley on DSK3SPTVN1PROD with NOTICES




                                                                                                      above. Written statements may be filed                determined that these transfers will not
                                                Issued at Washington, DC, on October 21,
                                                                                                      with the Board either before or after the             have an adverse material impact on the
                                              2015.
                                                                                                      meeting. Individuals who wish to make                 domestic uranium mining, conversion,
                                              LaTanya R. Butler,                                                                                            or enrichment industry.
                                                                                                      oral statements pertaining to agenda
                                              Deputy Committee Management Officer.                    items should contact Menice                           FOR FURTHER INFORMATION CONTACT: Mr.
                                              [FR Doc. 2015–27299 Filed 10–26–15; 8:45 am]            Santistevan at the address or telephone               Randy Howell, NNSA Mo-99 Domestic
                                              BILLING CODE 6450–01–P                                  number listed above. Requests must be                 Project Support, U.S. Department of


                                         VerDate Sep<11>2014   19:58 Oct 26, 2015   Jkt 238001   PO 00000   Frm 00041   Fmt 4703   Sfmt 4703   E:\FR\FM\27OCN1.SGM   27OCN1


                                              65728                        Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices

                                              Energy, 1000 Independence Avenue                        account the sales of uranium under the                Agreement and the Suspension
                                              SW., Washington, DC 20585, telephone                    Russian Highly Enriched Uranium                       Agreement.
                                              202–586–8834, or email randy.howell@                    Agreement and the Suspension                          Date: August 2, 2015.
                                              nnsa.doe.gov.                                           Agreement’’ before DOE makes certain                  Ernest J. Moniz,
                                              SUPPLEMENTARY INFORMATION: The                          transfers of natural or low-enriched
                                                                                                                                                            Secretary of Energy
                                              Department of Energy (DOE) holds                        uranium under the AEA.
                                              inventories of uranium in various forms                    On August 2, 2015, the Secretary of                Analysis of Potential Impacts of
                                              and quantities—including low-enriched                   Energy issued a determination                         Uranium Transfers on the Domestic
                                              uranium (LEU) and natural uranium—                      (‘‘Secretarial Determination’’) covering              Uranium Mining, Conversion, and
                                              that have been declared as excess and                   the sale or transfer of high-assay low                Enrichment Industries
                                              are not dedicated to U.S. national                      enriched uranium for medical isotope
                                                                                                                                                            I. Introduction
                                              security missions. Within DOE, the                      development projects. The Secretarial
                                              Office of Nuclear Energy (NE), the Office               Determination covers transfers of up to               A. Legal Authority
                                              of Environmental Management (EM),                       25 kilograms per year of LEU at up to                    DOE manages its excess uranium
                                              and the National Nuclear Security                       19.75 percent uranium-235 for transfers               inventory in accordance with the
                                              Administration (NNSA) coordinate the                    in the two years following approval of                Atomic Energy Act of 1954 (42 U.S.C.
                                              management of these excess uranium                      the determination to support                          2011 et seq., ‘‘AEA’’) and related
                                              inventories. NNSA down-blends excess                    molybdenum-99 producers in                            statutes. Specifically, Title I, Chapters
                                              highly-enriched uranium to high-assay                   commercial research and isotope                       6–7, 14, of the AEA authorize DOE to
                                              low-enriched uranium—above the                          production applications. The Secretary                transfer special nuclear material and
                                              commercial level of 5 wt-% and up to                    based his conclusion on the                           source material. LEU and natural
                                              about 19.75 wt-% of the isotope U-235—                  Department’s ‘‘Analysis of Potential                  uranium are types of special nuclear
                                              in support of its nonproliferation                      Impacts of Uranium Transfers on the                   material and source material,
                                              objectives and missions. Common                         Domestic Uranium Mining, Conversion,                  respectively.
                                              applications of such high-assay                         and Enrichment Industries,’’ which is                    The USEC Privatization Act (Pub. L.
                                              materials are as fuels for domestic and                 incorporated into the determination.                  104–134, 42 U.S.C. 2297h et seq.) places
                                              foreign research reactors and as target                 The Secretary considered, inter alia, the             certain limitations on DOE’s authority to
                                              materials for the production of medical                 requirements of the USEC Privatization                transfer uranium from its excess
                                              isotopes.                                               Act of 1996 (42 U.S.C. 2297h et seq.),                uranium inventory. Specifically, under
                                                 This notice involves high-assay LEU                  the nature of uranium markets, and the                section 3112(d) of the USEC
                                              transfers of this type to support                       current status of the domestic uranium                Privatization Act (42 U.S.C. 2297h–
                                              molybdenum-99 producers in either                       industries, as well as sales of uranium               10(d)), DOE may make certain transfers
                                              and/or both of the above applications.                  under the Russian HEU Agreement and                   of natural or low-enriched uranium if
                                              These transfers fulfill a directive in the              the Suspension Agreement.                             the Secretary determines that the
                                              American Medical Isotope Production                       Issued in Washington, DC.                           transfers ‘‘will not have an adverse
                                              Act of 2012 (Pub. L. 112–239, Division                  Anne M. Harrington,                                   material impact on the domestic
                                              C, Title XXXI, Subtitle F, 42 U.S.C.                    Deputy Administrator for Defense Nuclear              uranium mining, conversion or
                                              2065) for the Department to carry out a                 Nonproliferation, National Nuclear Security           enrichment industry, taking into
                                              program of assistance for the                           Administration.                                       account the sales of uranium under the
                                              development of fuels, targets, and                        Set forth below is the full text of the             Russian Highly Enriched Uranium
                                              processes for domestic molybdenum-99                    Secretarial Determination.                            Agreement and the Suspension
                                              production that do not use highly                                                                             Agreement.’’ (42 U.S.C. 2297h–
                                              enriched uranium. These transfers also                  SECRETARIAL DETERMINATION FOR
                                                                                                                                                            10(d)(2)(B)). The validity of any
                                              support U.S. nuclear nonproliferation                   THE SALE OR TRANSFER OF
                                                                                                                                                            determination under this section is
                                              initiatives, by providing a path for                    URANIUM
                                                                                                                                                            limited to no more than two calendar
                                              down-blended highly enriched uranium                      I determine that the transfer of up to              years subsequent to the determination
                                              (HEU) and encouraging the use of LEU                    the equivalent of 25 kgU of 19.75%-                   (see Section 306(a) of Division D, Title
                                              in civil applications in lieu of HEU.                   assay low enriched uranium per                        III of the Consolidated and Further
                                                 These transfers are conducted in                     calendar year to support the                          Continuing Appropriations Act, 2015
                                              accordance with the Atomic Energy Act                   development and demonstration of                      (Pub. L. 113–235)).
                                              of 1954 (42 U.S.C. 2011 et seq., ‘‘AEA’’)               molybdenum-99 production capabilities
                                              and other applicable law. Specifically,                 will not have an adverse material                     B. Transfers Considered in This
                                              Title I, Chapters 6, 14, of the AEA                     impact on the domestic mining,                        Determination
                                              authorize DOE to transfer special                       conversion, or enrichment industry. I                   The American Medical Isotopes
                                              nuclear material; LEU is a type of                      base my conclusions on the                            Production Act of 2012 (Pub. L. 112–
                                              special nuclear material. The USEC                      Department’s ‘‘Analysis of Potential                  239, Division C, Title XXXI, Subtitle F,
                                              Privatization Act (Pub. L. 104–134, 42                  Impacts of Uranium Transfers on the                   42 U.S.C. 2065) directs the Department
                                              U.S.C. 2297h et seq.) places certain                    Domestic Uranium Mining, Conversion,                  to carry out a program to provide
                                              limitations on DOE’s authority to                       and Enrichment Industries,’’ which is                 assistance for the development of fuels,
                                              transfer uranium from its excess                        incorporated herein. As explained in                  targets, and processes for domestic
                                              uranium inventory. Specifically, under                  that document, I have considered, inter               molybdenum-99 production that do not
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                                              section 3112(d)(2)(B) of the USEC                       alia, the requirements of the USEC                    use highly enriched uranium (HEU).
                                              Privatization Act (42 U.S.C. 2297h–                     Privatization Act of 1996 (42 U.S.C.                  The transfer of small quantities of high-
                                              10(d)(2)(B)), the Secretary must                        2297h et seq.), the nature of uranium                 assay low enriched uranium (LEU) (LEU
                                              determine that the transfers ‘‘will not                 markets, and the current status of the                enriched above 5 wt-%, but below 20
                                              have an adverse material impact on the                  domestic uranium industries. I have                   wt-% U-235) is appropriate and
                                              domestic uranium mining, conversion                     also taken into account the sales of                  necessary to assist parties engaged in
                                              or enrichment industry, taking into                     uranium under the Russian HEU                         research and development (R&D) and


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                                                                           Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices                                                   65729

                                              commercial demonstrations of the                        Paducah Gaseous Diffusion Plant in                    of uranium concentrates, conversion
                                              aforementioned fuels, targets, and                      2013, the only remaining operational                  services, or enrichment services, there is
                                              processes. Material transfers under this                uranium enrichment facility in the U.S.               no impact on the domestic uranium
                                              determination will occur primarily                      is that operated by Louisiana Energy                  industries with respect to any of the
                                              during calendar years 2015 and 2016                     Services, LLC, which is licensed by the               factors.
                                              and consist of no more than 25 kgU of                   Nuclear Regulatory Commission to                         Even if the DOE transfers would
                                              material enriched at up to 19.75 wt-%                   possess LEU only up to 5 wt-% U-235,2                 displace production among the
                                              of the isotope U-235 in any calendar                    meaning no domestic commercial                        domestic uranium mining, conversion,
                                              year.1 Assuming a tails assay of 0.20 wt-               uranium enrichment facility is currently              or enrichment industries, the amount is
                                              % U-235, it would require                               licensed to possess the high-assay LEU                so small that the effects would be de
                                              approximately 1 MTU of natural                          contemplated for transfer.                            minimis. With respect to the three
                                              uranium hexafluoride and                                   Modern enrichment facilities are                   uranium industries, in order to produce
                                              approximately 1,100 separative work                     technologically able to produce such                  the amount of LEU in DOE transfers
                                              units (‘‘SWU’’) to produce that quantity                materials; however, due to the                        from primary production, it would
                                              of 19.75 wt-% LEU.                                      economics of enrichment, owners and                   require about 2500 pounds of uranium
                                                                                                      operators of such enrichment facilities               concentrates, 950 kgU of conversion
                                              II. Analytical Approach                                 have thus far chosen not to pursue                    services, and approximately 1,100 SWU
                                                 Consistent with the analytical                       enrichment of high-assay LEU. To                      of enrichment services. By comparison,
                                              approach outlined in the Department’s                   produce such LEU, a commercial                        the entire global fleet of nuclear reactors
                                              prior Analysis of Potential Impacts of                  supplier would need to secure an                      is expected to need in 2015
                                              Uranium Transfers, 80 FR 26,366,                        appropriate license or license                        approximately 160 million pounds
                                              26,379–84 (May 7, 2015), this analysis                  amendment, a task that would require                  U3O8, 56 million kgU of conversion
                                              evaluates two forecasts: one reflecting                 an investment of money and time.                      services, and about 45 million SWU.3
                                              the state of the domestic uranium                       Projections of demand in the nuclear                  For further comparison, the U.S.
                                              industries if DOE goes forward with the                 medicine industry lead to the forecast                uranium mining industry produced
                                              transfer and one reflecting the state of                that the need for high-assay LEU in                   approximately 4.9 million pounds of
                                              the domestic uranium industries if DOE                  future years will range from tens to                  U3O8 in 2014.4 The domestic conversion
                                              does not go forward with the transfer.                  hundreds of kilograms. Compared to the                industry consists of only one facility. In
                                              DOE compares these two forecasts to                     thousands of metric tons of enriched                  recent years, that facility has produced
                                              determine the relevant impacts on the                   uranium required by the commercial                    between 11 and 12 million kgU. As
                                              domestic uranium industries. In                         power industry, and given the costs                   mentioned above, there is only one
                                              conducting this comparison, DOE has                     required for licensing, the production of             currently operating enrichment facility
                                              developed a set of factors that this                    such small quantities of high-assay                   in the U.S. The total capacity of that
                                              analysis considers in assessing whether                 materials is not likely to be                         facility is currently about 3.7 million
                                              DOE’s uranium transfers will have an                    economically viable for private                       SWU.
                                              ‘‘adverse material impact’’ on the                      industry.                                                Given how small DOE transfers are
                                              domestic uranium mining, conversion,                       There also does not exist currently a              compared to either global reactor
                                              or enrichment industries:                               foreign commercial producer or supplier               requirements or domestic production,
                                                                                                      of high-assay low enriched uranium for                DOE concludes that transfers at this
                                              1. Prices                                                                                                     level would have almost no impact on
                                              2. Production at existing facilities                    use in domestic research reactors or
                                                                                                      medical isotope production                            the domestic uranium mining,
                                              3. Employment levels in the industry                                                                          conversion, or enrichment industries
                                              4. Changes in capital improvement                       applications; what high-assay LEU is
                                                                                                      produced internationally, for example to              with respect to any of the six factors
                                                 plans and development of future                                                                            listed in Section II.
                                                 facilities                                           convert Russian-supplied reactors from
                                                                                                                                                               DOE recently issued a determination
                                              5. Long-term viability and health of the                highly enriched uranium (HEU) cores, is
                                                                                                                                                            that certain transfers of natural uranium
                                                 industry                                             produced by a state-owned enterprise
                                                                                                                                                            in exchange for cleanup services at the
                                              6. Russian HEU Agreement and                            for official purposes via down-blending
                                                                                                                                                            Portsmouth Gaseous Diffusion Plant and
                                                 Suspension Agreement                                 excess HEU.
                                                                                                         Given the specialized uses, designs,               of LEU in exchange for downblending
                                                 While no single factor is dispositive of                                                                   services will not have an adverse
                                              the issue, DOE believes that these                      and regulatory requirements of the fuels
                                                                                                      and targets used for these isotope                    material impact on the domestic
                                              factors are representative of the types of                                                                    uranium industries. The analysis
                                              impacts that the proposed transfers may                 production purposes, it is not feasible to
                                                                                                      replace the DOE-sourced high-assay                    supporting that determination also
                                              have on the domestic uranium                                                                                  considered various other past transfers,
                                              industries. Not every factor will                       LEU used in research reactor fuel or
                                              necessarily be relevant on a given                      targets with commercial-assay LEU                       3 These estimates of global requirements come

                                              occasion or to a particular industry;                   because fuel or targets fabricated from               from an analysis prepared by Energy Resources
                                              DOE intends this list of factors only as                commercial-assay LEU would generally                  International, Inc. (ERI), dated February 20, 2015.
                                              a guide to its analysis.                                not serve the intended purposes.                      This report is available at http://www.energy.gov/
                                                                                                         Given the lack of commercial                       ne/downloads/excess-uranium-management. DOE
                                                                                                                                                            tasked ERI to prepare this analysis to assess the
                                              III. Assessment of Potential Impacts                    production or supply of such materials,               potential effects on the domestic uranium mining,
                                                There is currently no domestic                        an analysis of the impact of transfers                conversion, and enrichment industries of the
                                                                                                      based on an assessment of the six factors             introduction into the market of uranium transfers
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                                              commercial supplier of high-assay LEU.                                                                        that are not the subject of this assessment. ERI
                                              In particular, with the closing of the                  listed in Section II is straightforward:
                                                                                                                                                            develops its requirements forecasts for various
                                                                                                      since the transfer of DOE material                    customers. Because of ERI’s general expertise in the
                                                1 If any transfers include material at an assay       would not displace primary production                 uranium markets and contacts with market
                                              other than 19.75 wt-%, the amount will be                                                                     participants, DOE believes ERI’s general market
                                              converted so that the total amount in any calendar        2 U.S. Nuclear Regulatory Commission, Materials     information is reliable.
                                              year is equivalent to no more than 25 kgU at 19.75      License. License Number SNM–2010, Amendment             4 EIA, Domestic Uranium Production Report Q4

                                              wt-%.                                                   57, Docket Number 70–3103.                            2014, 2 (January 2015).



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                                              65730                        Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices

                                              the uranium from which may still be                     eRegistration account using the                       assumptions of liability, is November 9,
                                              affecting markets. 80 FR at 26,385. In                  eRegistration link. Select the eFiling                2015.
                                              reaching the conclusion that transfers of               link to log on and submit the                            The Commission encourages
                                              up to 25 kg per year of high-assay LEU                  intervention or protests.                             electronic submission of protests and
                                              will have at most de minimis impacts on                    Persons unable to file electronically              interventions in lieu of paper, using the
                                              the domestic uranium industries, DOE                    should submit an original and 5 copies                FERC Online links at http://
                                              takes account of the various transfers                  of the intervention or protest to the                 www.ferc.gov. To facilitate electronic
                                              assessed for its recent determination.                  Federal Energy Regulatory Commission,                 service, persons with Internet access
                                                                                                      888 First Street NE., Washington, DC                  who will eFile a document and/or be
                                              IV. Conclusion
                                                                                                      20426.                                                listed as a contact for an intervenor
                                                 For the reasons discussed above, these                  The filings in the above-referenced                must create and validate an
                                              transfers will not have an adverse                      proceeding are accessible in the                      eRegistration account using the
                                              material impact on the domestic                         Commission’s eLibrary system by                       eRegistration link. Select the eFiling
                                              uranium mining, conversion, or                          clicking on the appropriate link in the               link to log on and submit the
                                              enrichment industry taking into account                 above list. They are also available for               intervention or protests.
                                              sales under the Russian HEU Agreement                   electronic review in the Commission’s                    Persons unable to file electronically
                                              and Suspension Agreement.                               Public Reference Room in Washington,                  should submit an original and 5 copies
                                              [FR Doc. 2015–27303 Filed 10–26–15; 8:45 am]            DC. There is an eSubscription link on                 of the intervention or protest to the
                                              BILLING CODE 6450–01–P                                  the Web site that enables subscribers to              Federal Energy Regulatory Commission,
                                                                                                      receive email notification when a                     888 First Street NE., Washington, DC
                                                                                                      document is added to a subscribed                     20426.
                                              DEPARTMENT OF ENERGY                                    docket(s). For assistance with any FERC                  The filings in the above-referenced
                                                                                                      Online service, please email                          proceeding are accessible in the
                                              Federal Energy Regulatory                               FERCOnlineSupport@ferc.gov. or call                   Commission’s eLibrary system by
                                              Commission                                              (866) 208–3676 (toll free). For TTY, call             clicking on the appropriate link in the
                                              [Docket No. ER16–90–000]                                (202) 502–8659.                                       above list. They are also available for
                                                                                                        Dated: October 20, 2015.                            electronic review in the Commission’s
                                              Golden Hills Interconnection, LLC;                      Kimberly D. Bose,                                     Public Reference Room in Washington,
                                              Supplemental Notice That Initial                                                                              DC. There is an eSubscription link on
                                                                                                      Secretary.
                                              Market-Based Rate Filing Includes                                                                             the Web site that enables subscribers to
                                                                                                      [FR Doc. 2015–27174 Filed 10–26–15; 8:45 am]
                                              Request for Blanket Section 204                                                                               receive email notification when a
                                                                                                      BILLING CODE 6717–01–P
                                              Authorization                                                                                                 document is added to a subscribed
                                                                                                                                                            docket(s). For assistance with any FERC
                                                 This is a supplemental notice in the
                                                                                                                                                            Online service, please email
                                              above-referenced proceeding of Golden                   DEPARTMENT OF ENERGY
                                                                                                                                                            FERCOnlineSupport@ferc.gov. or call
                                              Hills Interconnection, LLC.’s
                                                                                                      Federal Energy Regulatory                             (866) 208–3676 (toll free). For TTY, call
                                              application for market-based rate
                                                                                                      Commission                                            (202) 502–8659.
                                              authority, with an accompanying rate
                                              tariff, noting that such application                                                                            Dated: October 20, 2015.
                                                                                                      [Docket No. ER16–91–000]
                                              includes a request for blanket                                                                                Kimberly D. Bose,
                                              authorization, under 18 CFR part 34, of                 Blythe Solar 110, LLC; Supplemental                   Secretary.
                                              future issuances of securities and                      Notice that Initial Market-Based Rate                 [FR Doc. 2015–27175 Filed 10–26–15; 8:45 am]
                                              assumptions of liability.                               Filing Includes Request for Blanket                   BILLING CODE 6717–01–P
                                                 Any person desiring to intervene or to               Section 204 Authorization
                                              protest should file with the Federal
                                              Energy Regulatory Commission, 888                         This is a supplemental notice in the                DEPARTMENT OF ENERGY
                                              First Street NE., Washington, DC 20426,                 above-referenced proceeding Blythe
                                              in accordance with Rules 211 and 214                    Solar 110 LLC.’s application for market-              Federal Energy Regulatory
                                              of the Commission’s Rules of Practice                   based rate authority, with an                         Commission
                                              and Procedure (18 CFR 385.211 and                       accompanying rate tariff, noting that
                                                                                                                                                            [Docket No. CP16–2–000]
                                              385.214). Anyone filing a motion to                     such application includes a request for
                                              intervene or protest must serve a copy                  blanket authorization, under 18 CFR                   Florida Gas Transmission Company,
                                              of that document on the Applicant.                      part 34, of future issuances of securities            LLC; Notice of Request Under Blanket
                                                 Notice is hereby given that the                      and assumptions of liability.                         Authorization
                                              deadline for filing protests with regard                  Any person desiring to intervene or to
                                              to the applicant’s request for blanket                  protest should file with the Federal                  October 19, 2015.
                                              authorization, under 18 CFR part 34, of                 Energy Regulatory Commission, 888                        Take notice that on October 7, 2015,
                                              future issuances of securities and                      First Street NE., Washington, DC 20426,               Florida Gas Transmission Company,
                                              assumptions of liability, is November 9,                in accordance with Rules 211 and 214                  LLC (FGT), 1300 Main St., Houston, TX
                                              2015.                                                   of the Commission’s Rules of Practice                 77002 filed a prior notice request
                                                 The Commission encourages                            and Procedure (18 CFR 385.211 and                     pursuant to sections 157.205, 157.208
                                              electronic submission of protests and                   385.214). Anyone filing a motion to                   (b) and 157.216(b) of the Commission’s
tkelley on DSK3SPTVN1PROD with NOTICES




                                              interventions in lieu of paper, using the               intervene or protest must serve a copy                regulations under the Natural Gas Act
                                              FERC Online links at http://                            of that document on the Applicant.                    for authorization to replace
                                              www.ferc.gov. To facilitate electronic                    Notice is hereby given that the                     approximately 3.39 miles of 8-inch
                                              service, persons with Internet access                   deadline for filing protests with regard              lateral pipe and approximately 3.08
                                              who will eFile a document and/or be                     to the applicant’s request for blanket                miles of 10-inch lateral pipe, and
                                              listed as a contact for an intervenor                   authorization, under 18 CFR part 34, of               appurtenant facilities, with
                                              must create and validate an                             future issuances of securities and                    approximately 3.78 miles of new 12-


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Document Created: 2015-12-14 15:35:52
Document Modified: 2015-12-14 15:35:52
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesAugust 2, 2015.
ContactMr. Randy Howell, NNSA Mo-99 Domestic Project Support, U.S. Department of Energy, 1000 Independence Avenue SW., Washington, DC 20585, telephone 202-586-8834, or email [email protected]
FR Citation80 FR 65727 

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