ENCLOSURE 1 

1 

Regulatory Framework for Recycling Nuclear Fuel 

I. BACKGROUND 

 The Nuclear Energy Institute (NEI), as the organization responsible for establishing 

unified industry policy on matters affecting the commercial nuclear energy industry, including 

the regulatory aspects of generic operational and technical issues, established a task force 

directed at closing the nuclear fuel cycle. The task force, which developed this “White Paper”, is 

chaired by Mr. Jack Bailey, Vice President, Nuclear Generation Development, at the Tennessee 

Valley Authority. Members also include representatives from Exelon, Constellation Energy, 

Entergy, Duke Energy, AREVA, EnergySolutions, GE, and General Atomics. In addition, the 

task force is being supported by B&W Technical Services, Talisman International, CH2M Hill, 

and NEI staff. 

 Recycling used fuel provides the opportunity to utilize the energy remaining in such fuel, 

thus conserving resources and contributing to energy independence.1 Companies within the 

nuclear industry are giving serious consideration to building and operating fuel recycling 

facilities. An important aspect of this consideration is the regulatory process that will be used to 

license these facilities. It is generally recognized, however, that current Nuclear Regulatory 

Commission (NRC) regulations do not provide a clear path and process for the licensing of a 

recycling facility. 

 In this regard, NEI is aware that the NRC has on-going an effort to develop a regulatory 

framework. As expressed in “SECY 08-134, Regulatory Structure for Spent Fuel Reprocessing 

(September 12, 2008),” the NRC anticipated a rulemaking completion date for a closed fuel 

 

1

 The terms “used fuel” and “spent fuel”, and the terms “recycling” and “reprocessing” are used in this White 

Paper to reflect the fact that recycling involves utilizing the energy remaining in nuclear fuel when removed from a 

reactor. Current regulations use generally the terms “spent fuel” and “reprocessing.” 
ENCLOSURE 1 

2 

cycle of June 2012. From the perspective of the nuclear industry, however, June 2012 is 

consistent with its goals to license, construct, and operate recycling facilities in the next decade, 

however the industry is concerned adequate resources will be applied in order to achieve it. 

 In the interest of accelerating that schedule, so that the industry will be prepared to 

initiate applications sooner, NEI has generated this paper providing concepts which could 

be the basis for a regulatory framework which could be completed, not later than June 

2012. To assist in achieving that goal, NEI is submitting this paper to the Commission to 

help it in its efforts to establish a regulatory framework for licensing a recycling facility 

under a new part, referenced as “Part 7x.” As discussed below, the framework would 

essentially be modeled on the risk-informal and performance-based approach of Part 70, 

supplemented with provisions from Part 50.2

 

II. ANALYSIS 

A. Need for a new Part 7x 

A domestic, commercial reprocessing plant is a “production facility” under the Atomic 

Energy Act (“AEA”). Such a facility is licensed under section 103 of the AEA, as are light water 

reactors (“LWRs”). 

The basic NRC licensing provisions governing a production facility are currently found 

in 10 C.F.R. Part 50, “Domestic Licensing of Production and Utilization Facilities.” While a 

number of provisions in Part 50 are applicable to both production and utilization facilities, such 

as LWRs, there are relatively few requirements specifically applicable to reprocessing facilities 

in Part 50 other than in § 50.36 “Technical specifications;” Appendix B, “Quality Assurance 

 

2

 Separate, but important to the success of a regulatory framework for regulations, will be the need to 

develop regulatory guidance similar to NUREG-1520, “Standard Review Plan for the Review of a License 

Application for a Mixed Oxide (MOX) Fuel Fabrication Facility,” and NUREG-1718, “Standard Review Plan for 

the Review of a License Application for a Mixed Oxide (MOX) Fuel Fabrication Facility.” 
ENCLOSURE 1 

3 

Criteria for Nuclear Power Plants and Fuel Reprocessing Plants;” and Appendix F, “Policy 

Relating to the Siting of Fuel Reprocessing Plants and Related Waste Management Facilities.” 

In fact, a reprocessing facility’s operational characteristics differ significantly from an 

LWR. As the NRC Staff noted in SECY-06-0066, Regulatory and Resource Implications of a 

DOE Spent Nuclear Fuel Recycling Program (March 22, 2006): 

Part 50 is focused on LWR design and technology and would have limited applicability 

to commercial reprocessing facility design and technology. That is, the design and 

operational safety issues associated with a commercial reprocessing facility would be 

very different from design and operational safety issues associated with an LWR. The 

current Part 50 regulations would not necessarily address all commercial reprocessing 

facility safety issues and, conversely, are likely to contain requirements that are not 

applicable to a reprocessing facility. The application of the whole Part 50 to the licensing 

of a commercial reprocessing facility would present significant challenges to the 

applicant and to the NRC. If Part 50 is used to license a commercial reprocessing 

facility, the regulations would have to be reviewed to determine which apply, which do 

not apply, and which may partially apply. Additional requirements would also need to be 

established to address reprocessing facility-specific design and safety issues. 

In SECY-08-0134, Regulatory Structure for Spent Fuel Reprocessing (September 12, 

2008), the Staff expressed the view that “it would not be effective or efficient to revise Part 50 to 

license reprocessing facilities.” NEI agrees that a reprocessing facility is more like a complex 

fuel cycle facility than a reactor, and that revising Part 50 to address the licensing of a 

reprocessing facility more directly would not be desirable. 

B. Approach to developing Part 7x and selected elements 

In SECY-08-0134 the NRC Staff stated: 

[T]he existing Part 70 currently regulates many different types of fuel cycle facilities. 

10 CFR 70 provides a model of a regulation capable of licensing several different types 

of facilities, yet adequately ensures safe facility operation. As such, the staff believes 

that it is possible to either include a new subpart to Part 70 that would provide new 

regulatory requirements for reprocessing facilities, or create a new Part specific for 

reprocessing. These new regulations could be capable of licensing aqueous separation 

techniques, as well as any potential pyroprocessing techniques. 
ENCLOSURE 1 

4 

Part 70, with its risk-informal, performance-based approach, provides a useful model for 

a new framework. However, a number of significant changes to Part 70 would be required to 

address procedural and substantive requirements necessary under the AEA, including both the 

two-step and combined license process for production facilities. Additional substantive 

requirements would also be needed because of the nature of a recycling plant and, particularly, 

the fact that such a facility involves a significantly greater source term than other fuel cycle 

facilities. 

Adoption of a new Part 7x would have the benefit of establishing regulatory provisions 

applicable to a reprocessing facility clearly specifying requirements. The need to reference other 

provisions of NRC regulations could be minimal, as would the need to except out inapplicable 

provisions of Part 70. A new Part 7x could also be written to more clearly and effectively 

prescribe the licensing process applicable to a reprocessing facility. 

A new Part 7x, however, can and should utilize useful regulatory concepts embodied in 

current provisions of NRC regulations. Specific, suggested elements are discussed below. 

1. Risk-informed and performance-based approach

Part 70 embodies a regulatory philosophy utilizing a risk-informed, performancebased regulatory approach that includes: (1) the identification of performance requirements for 

prevention of accidents or mitigation of their consequences as well as specific design basis 

criteria; (2) the performance of an Integrated Safety Analysis (ISA) to identify potential 

accidents at the facility and the items relied on for safety (IROFS); (3) the implementation of 

measures to ensure that the IROFS are available and reliable to perform their function when 

needed; (4) the maintenance of the safety basis, including the reporting of changes to the NRC; 

and (5) the allowance for licensees to make certain changes to their safety program and facilities 

without prior NRC approval. The new Part 7x should embody this philosophy and approach. 
ENCLOSURE 1 

5 

Further, Part 7x should prescribe an underlying safety standard for the facility in 

terms of specific performance requirements. Such requirements could be identical to those of 

10 C.F.R. § 70.61. 

2. Licensing process and procedure

A fuel reprocessing facility is a production facility under the AEA. The licensing 

procedures prescribed in 10 C.F.R. Part 50 were developed to implement AEA requirements 

applicable to such facilities. Consequently, the licensing framework for Part 7x, though based on 

Part 70, should reflect pertinent procedures of Part 50. 

In addition, however, it is appropriate, and consistent with the AEA3

, to provide a 

process accommodating the option of proceeding via a combined license, similar to Part 52. 

Under such an approach, a determination can be made -- before construction even begins -- that 

the facility will be authorized to operate if it is constructed in accordance with the combined 

license. 

Further, it would be useful for Part 7x to provide flexibility with respect to the 

licensing of facilities, other than reprocessing plants, related to the recycling of spent fuel. Such 

facilities -- denominated “recycling facilities” -- would include those providing for spent fuel 

storage; waste storage and processing, including vitrification; plutonium and/or minor actinide 

processing; and fuel fabrication and storage. Regulatory flexibility should be provided to 

accommodate the licensing of recycling facilities either under existing regulatory requirements; 

or, in combination under provisions of the new Part 7x. 

 

3

 See AEA § 185.b. 
ENCLOSURE 1 

6 

C. Framework for regulation

Included with this Paper, as Appendix A, are framework considerations which must be 

captured in regulations embodying the concepts and elements discussed above. The framework 

is not submitted for adoption by the Commission but, rather, to further illustrate the substance of 

the concept. Appendix B provides conceptional language for the implementation of the 

framework. 

The each Appendix is divided into two sections. The first contains considerations 

specific to Part 7x, itself. The second section presents the principal changes to existing NRC 

regulations, required to implement the framework. 

It should be noted that the framework is not complete. For example, Price Anderson 

issues under Part 140 and insurance issues related to those addressed in 10 C.F.R. § 50.54(w) are 

not addressed. The framework does, however, present, in the form of conception language, a 

description of the rulemaking changes necessary for establishing a recycling center. 

III. CONCLUSION 

For the reasons presented above, the NRC should initiate a proceeding to adopt 

regulations establishing a regulatory framework for the licensing of nuclear fuel recycling 

facilities. This “White Paper” is being provided to assist the NRC in its deliberations concerning 

the changes required as well as the concepts which should be considered.