May 14, 2010 

MEMORANDUM TO: Chairman Jaczko 

 Commissioner Svinicki 

 Commissioner Apostolakis 

 Commissioner Magwood 

 Commissioner Ostendorff 

 

FROM: Catherine Haney, Director /RA/ 

 Office of Nuclear Material Safety and Safeguards 

SUBJECT: ANNUAL UPDATE ON REPROCESSING ACTIVITIES—TIMELINE 

FOR COMPLETION OF REGULATORY FRAMEWORK 

In 2008 and 2009, the staff of the U.S. Nuclear Regulatory Commission (NRC) provided the 

Commission with information about the agency’s activities to develop the regulatory framework 

for licensing reprocessing facilities. SECY-08-0134, “Regulatory Structure for Spent Fuel 

Reprocessing,” dated September 12, 2008, discussed a necessary shift in focus from the 

U.S. Department of Energy-led reprocessing initiatives to industry-led initiatives. As a result of 

this shift, the NRC staff identified additional activities needed to revise the regulatory framework 

for reprocessing and established an initial schedule to complete these revisions in time to 

support the industry’s proposed timeframe for submitting a license application for a commercial 

reprocessing facility. 

The staff performed a regulatory gap analysis and summarized it in SECY-09-0082, “Update on 

Reprocessing Regulatory Framework—Summary of Gap Analysis,” dated May 28, 2009. 

Although the staff intends to revise the regulatory framework to be technology-neutral and riskinformed and performance-based where appropriate, the gap analysis principally considered 

processes and approaches associated with industrially mature reprocessing technologies. 

SECY-09-0082 described this approach including insights into, and the basis for, the limitations 

of the initial regulatory framework for advanced fuel cycle technologies and fast reactors. 

In the remainder of this memorandum, the staff will update the Commission on the status of 

regulatory basis (formerly referred to as “technical basis”) development and provide a new target 

date for its completion. In addition, staff is estimating completion dates for rulemaking, and 

other supporting activities necessary for licensing and regulating reprocessing facilities, if the 

Commission decides to proceed with rulemaking. 

At this stage, development of the regulatory framework comprises three main areas of activity: 

(1) public outreach, (2) international knowledge sharing, and (3) development of the regulatory 

basis and subsequent rule. These three areas are interdependent and essential for a thorough 

regulatory framework. 

CONTACT: Kelli Markham, NMSS/FCSS 

(301) 492-3221
The Commissioners - 2 - 

For public outreach, the staff is considering several successful approaches that were recently 

applied for other rulemaking efforts, such as the public workshops conducted for the ongoing 

depleted uranium and unique waste streams rulemaking effort. These approaches included 

outreach to affected Native American Tribal Governments, stakeholders, and other interested 

members of the public with the purpose of discussing issues relevant to them. In developing the 

regulatory basis, the staff has identified technical areas and topics that will require extensive 

stakeholder involvement and feedback. These topics relate to the regulatory gaps in 

SECY-09-0082 and will broadly cover four main areas: (1) reprocessing waste-related issues, 

(2) physical protection and material control and accounting, (3) risk, and (4) licensing issues. 

The staff is planning public workshops for these discussions and intends to conduct workshops 

in the fall of calendar year 2010 in different geographic locales to accommodate a variety of 

stakeholders. Additional workshops may be warranted depending on stakeholder interest. 

To better inform the regulatory basis, the staff has also engaged its international counterparts in 

countries having operating experience with reprocessing facilities (i.e., France, Japan, and the 

United Kingdom). The NRC staff has participated in regulatory and technical informationsharing sessions with safety authorities and operators in France, the United Kingdom, and 

Japan. These sessions have focused on a variety of technical areas that are relevant for 

reprocessing facilities. In the past several years, the staff has visited reprocessing facilities in 

France and the United Kingdom; gaining operational and regulatory insights from those most 

experienced with commercial reprocessing. Most recently in December 2009, the staff 

discussed the areas of risk assessment and material control and accounting with its 

counterparts in Japan. This interaction provided the staff with valuable insights for its current 

work in these areas. The agency is planning a similar information-sharing session in France for 

September 2010 that will include discussions with French counterparts on waste management 

and other topics relevant to staff’s ongoing efforts to revise the regulatory framework for 

reprocessing. 

In the next phase of the regulatory framework development, the staff will complete the regulatory 

basis document to support rulemaking. In SECY-09-0082, the staff indicated that it could 

complete the regulatory basis development in 2010. However, the staff also noted that the 

activity would (1) be more comprehensive than originally envisioned, (2) involve resolution of 

several complex technical and policy issues, (3) entail the development of new and substantive 

regulatory guidance, (4) require extensive stakeholder involvement, and (5) possibly require 

additional resources. 

In both SECY-08-0134 and SECY-09-0082, the staff indicated that progress on the regulatory 

development would be commensurate with available resources and that the schedule would be 

delayed or deferred if the needed funds were not provided. Although shortfall and 

reprogramming requests have provided resources for progress on the regulatory framework in 

fiscal years (FY) 2009 and FY 2010, the budget process has not provided for continuity of effort 

nor provided an opportunity to accelerate staff activities as originally envisioned. The FY 2011 

budget request addresses these items this and provides the necessary resources to make 

significant progress on this effort. As a result, staff has revised the schedule appropriately. 

Resource levels for FY 2011 will provide for a more predictable and continuous level of effort on 

the regulatory development. Staff is estimating a schedule for completing the rulemaking and 

supporting activities which is dependent upon several factors, including, but not limited to, 

receiving future budget requests. The Office of Federal and State Materials and Environmental 

Management Programs (FSME) resources are to gather information and prepare a report that 

examines the environmental concerns associated with potential reprocessing facilities to assist 

in the development of the reprocessing regulatory framework. The staff now anticipates that it 
The Commissioners - 3 - 

can complete a draft regulatory basis by September 2011. Upon completion of the regulatory 

basis, FSME will be responsible for the rulemaking and associated supporting activities. If 

directed by the Commission to proceed in establishing the regulatory framework for reprocessing 

facilities, the staff’s current estimates indicate that it may be possible to complete the rule and 

associated activities by the end of 2015. The nuclear industry continues to support continued 

progress on developing the revised regulatory framework for reprocessing and has indicated that 

a revised framework by 2015 would continue to support the pace of industry activities in this 

area. 

The following table indicates available resources in FY 2010 and requested resources for 

FY 2011, including shortfalls and reprogramming. The completion dates for the regulatory basis 

and the report that examines the environmental concerns are informed by consideration of the 

resources tabulated below. Resources to support the schedule for activities beyond FY 2011 

will be addressed during the applicable Planning, Budgeting and Performance Management 

Process. 

Office 

FY 2010 

Base 

Budget 

Reprogram 

within 

FY 2010 

Base 

Budget 

Requested 

through the 

FY 2010 

Shortfall 

List 

FY 2011 

Current 

Estimate 

Base 

Budget 

Requested 

through the 

FY 2011 

Shortfall 

List 

 FTE CS $ FTE CS $ FTE CS $ FTE CS $ FTE CS $

NMSS 0.0 0 1.0 0 0.0 0 7.1 475 0.0 0 

FSME 0.2 750 0.0 0 0.0 0 3.7 1,060 0.0 0 

RES 0.0 0 0.2 0 0.0 300 1.0 150 0.0 150 

NSIR 0.0 0 0.2 0 0.0 0 0.3 0 0.0 0 

OGC 0.6 0 0.0 0 0.0 0 0.6 0 0.0 0 

TOTAL 0.8 750 1.4 0 0.0 300 12.7 1,685 0.0 150 

The Office of Nuclear Material Safety and Safeguards is preparing an integrated strategy for 

regulating spent fuel. The three main areas of this integrated strategy consist of: 1) long term 

storage and transportation, 2) reprocessing, and 3) alternative disposal options. Staff is 

integrating the reprocessing regulatory development with these other areas to determine a 

comprehensive strategy that provides the Agency flexibility to better respond to a changing 

national policy relating to spent fuel management. 

As development of the regulatory basis proceeds, the staff has determined that the regulatory 

gaps involve many complex policy and technical issues. As noted above, the NRC staff is 

seeking input from stakeholders, and will be conducting public workshops this Fall. The staff 

anticipates that stakeholder perspectives will provide significant input into its process. Currently, 

the estimated project timeline accommodates the extensive stakeholder interest that the staff is 

forecasting. Staff will modify future budget requests to accommodate any changes that result in 

currently planned activities. 

In SRM-SECY-07-0081, dated June 27, 2007, the Commission directed the staff to provide a 

gap analysis and a regulatory basis document with recommended options on a path forward and 

an associated rulemaking plan, if appropriate. Based on the extent of the timeline and 

uncertainty in future appropriations and industry interest, staff intends to communicate future 

progress on the regulatory basis and overall framework via an annual update that is currently 
The Commissioners - 4 - 

provided to the Commission. Once the regulatory basis is complete, the staff will provide the 

Commission with a paper that will discuss options for moving forward with a revised regulatory 

framework for reprocessing. 

cc: SECY 

 OGC 

 OCA 

 OPA 

 CFO 
The Commissioners - 4 - 

provided to the Commission. Once the regulatory basis is complete, the staff will provide the Commission with 

a paper that will discuss options for moving forward with a revised regulatory framework for reprocessing. 

cc: SECY 

 OGC 

 OCA 

 OPA 

 CFO 

DISTRIBUTION: 

RidsNMSSOd FCSS r/f 

ML101110444 

OFFICE NMSS/FCSS QTE NMSS/FCSS NMSS/FCSS NMSS/FCSS NMSS/FCSS 

NAME KMarkham Via email LAllen THiltz MBailey E. Oesterle for DDorman 

DATE 4/25/10 4/26/10 4/27/10 4/ 27 /10 4/28/10 4/29/10 

OFFICE FSME CFO RES NSIR OGC NMSS 

NAME LCamper KLambert DCoe MLayton BJones CHaney 

DATE 5/7/10 5/11/10 5/6/10 5/4/10 5/7/10 5/14/10 

OFFICIAL RECORD COPY