# Wednesday, November 2

10:00 a.m.

– 11:30 a.m. 

# Webinar

Proposed Changes to the 10 CFR Part 810 Regulation

# Welcome

**Andrew Walker,** Moderator

Battelle Memorial Institute

**Richard Goorevich** 

**,** Presenter

Office of Nonproliferation and International Security, National Nuclear Security Administration, U.S. Department of Energy

# Webinar Purpose

The purpose of this webinar is to provide background information and highlight proposed changes to the 10 CFR Part 810 Regulation.

The NNSA will answer as many questions as possible.

The webinar is not the forum for formal comments.

# Agenda

.



# I. Welcome, introductions, agenda, and ground rules

II. Presentation

III. Break (10 minutes): Time for NNSA to prepare answers to
your questions

IV. Respond to questions

V. Closing

# Ground Rules for **Participation** .



# • Moderator will:

o Keep webinar on schedule

o Facilitate Q&A session

• Please mute your phones.

o Audio will not be used for taking questions

o Will help keep audio quality for all participants

• Use LiveMeeting Q&A function to ask questions.

• Questions maybe submitted at any time and, in fact, are encouraged.

• Like any meeting, respect the views of others.

# Conference Call

**Audio**

The audio portion of the Webinar will be provided via

conference call.

• Dial **+1 (877) 336**

**- 1839** 

• When prompted, dial **3075724#**

# Conference Call

**Audio**

• A **speaker phone** is recommended for hands free listening.

• Please **mute your phone** at all times.

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# Questions

Please submit your questions electronically using Live
Meeting:

• Use the **Q&A Menu.**

• To ask a question, type your question into the **Q&A**

**textbox** and click **ask.**

• All questions will be addressed at the end of the presentation during the Q&A time period.

# Formal Comments

Formal comments on the proposed rulemaking will not be accepted during the Webinar.

Please comment formally on the proposed rulemaking as provided in the Federal Register on September 7, 2011 (Vol.76, No.173) and October 24, 2011 (Vol. 76, No. 205).

Comment period extended 30 days (December 7, 2011).

Participation in the Webinar is not a prerequisite for

submission of written comments.11/8/2011 10 

# Proposed Revision of 10 CFR 810

# Ex Parte Communications

• To safeguard the integrity of DOE’s rulemaking
process, the primary goal of DOE employees in ex
parte communications is to listen and ask clarifying
questions. The DOE will not engage in negotiation or
reveal substantive aspects of the forthcoming
rulemakings. The DOE is the receiver of information.

Federal Register 74/Vol. 197

11/8/2011 11

# Why now?

• Nuclear commerce has changed since the last
revision in 1986, and the regulations need to be
updated to reflect the way U.S. nuclear companies
conduct business today.

• The proposal is designed to facilitate U.S. conformity
to Nuclear Suppliers Group Guidelines.

11/8/2011 12

# Major Changes

• Clearly states the types of technology transfers that are in or out of the scope of the regulation (810.2)

• Adds technical clarity for terms used in the regulations (810.3)

• Clarifies what activities are generally authorized and to

which destinations when no Sensitive Nuclear Technology is involved (810.6)

• Details the information required for requests for specific authorization for a “deemed export” (810.11)

11/8/2011 13

# Scope 810.2

• Staff averages ten calls and two letters a week from
U.S. industry concerning scope determinations.

• The new scope section will provide more clarity to
industry to enable prospective applicants to better
understand the jurisdictional scope of Part 810.

11/8/2011 14

# Scope 810.2

Current Regulation

(a) Applies to all persons subject to the
jurisdiction of the United States who
engage directly or indirectly in the
production of special nuclear material

outside the United States.

(b) Applies to activities conducted either in the
United States or abroad by such persons or
by licensees, contractors, or subsidiaries
under their direction, supervision,
responsibility or control.

11/8/2011 15 

# Revision

(a) This part applies to:

(1) all persons subject to the jurisdiction of the United States (hereinafter “U.S. persons”) who or that engage directly
or indirectly in the production of
special nuclear material outside the
United States, by transferring to
foreign persons technology that is
related to the production of special
nuclear material; and

(2) assistance and the transfer of
technology by U.S. persons,

conducted either in the United States

or abroad by U.S. persons or
licensees, contractors or subsidiaries
under their direction, supervision,
responsibility or control.

The revision of (a) explicitly articulates that transfers to foreign persons of Part 810
controlled technology anywhere is deemed an export and covered under this Part.

# Scope 810.2

Current text:

(c) Applies, but is not limited to, activities involving nuclear
reactors and other nuclear fuel cycle facilities for the following:

1. Fluoride or nitrate conversion;

2. Isotope separation (enrichment);

3. The chemical, physical or metallurgical processing, fabricating or alloying of special
nuclear material;

4. Production of heavy water, zirconium (hafnium

- free or low

- hafnium), nuclear

- grade
graphite or reactor

- grade beryllium;

5. Production of reactor

- grade uranium dioxide from yellowcake; and

6. Certain uranium milling activities.

11/8/2011 16 

### Current (c) is short and does not explicitly state all those portions of the fuel cycle

covered under this Part.

# Expanded 810.2 Scope Statement

(b) The activities referred to in paragraph (a)
involve the following:

(1) Chemical conversion and purification of uranium
and thorium from milling plant concentrates and in all
subsequent steps in the nuclear fuel cycle;

(2) Chemical conversion and purification of plutonium
and neptunium;

(3) Nuclear fuel fabrication, including preparation of
fuel elements, fuel assemblies and cladding thereof;

(4) Uranium isotope separation (uranium enrichment),
plutonium isotope separation, and isotope separation of any other elements (including stable isotope separation) when the technology or process can be
applied directly or indirectly to uranium or plutonium;

(5) Nuclear reactors;

(6) Accelerator

- 0driven subcritical assembly systems,
specially designed or intended for plutonium or

uranium

- 233 production;

(7) Hydrogen isotope separation and heavy water
production;

11/8/2011 17 (8) Reprocessing of irradiated nuclear materials or
targets containing special nuclear material;

(9) Changes in form or content of irradiated nuclear
materials containing special nuclear material, and hot
cell facilities;

(10) Storage of irradiated nuclear materials;

(11) Processing of high level radioactive waste;

(12) Movement of irradiated nuclear materials,
including specially designed containers therefore;

(13) The transfer of technology for the development,
production or use of equipment or material specially
designed or prepared for any of the above listed activities. (See NRC regulations under 10 CFR part 110,
Appendix A through Appendix K for an illustrative list
of items considered to be specially designed or prepared for certain listed nuclear activities); and

(14) Other activities related to the production of
special nuclear materials outside the United States as
the Secretary may determine, notice of which shall be
published in the Federal Register.



### The revised list contained in (b) provides detail on all stages of the fuel cycle and nuclear
technologies that are controlled under Part 810. Export of these technologies or assistance is
either generally authorized or requires specific authorization depending on the destination.

# Expanded 810.2 Scope Statement

(c) This part does not apply to:

(1) Exports licensed by the NRC;

(2) Public information or basic scientific research;

(3) Uranium and thorium mining and milling; and

(4) Nuclear fusion reactors per se, except for supporting systems
involving hydrogen isotope separation.

11/8/2011 18 

### The revised list contained in (c) provides detail on all stages of the fuel cycle and
nuclear technologies that are not controlled under Part 810.

# Section 810.3

Revised Technical Terms

• These terms have been added or revised:

– To update technological developments since 1986.

– To conform with the Nuclear Suppliers Group Guidelines.

– To provide greater clarity to industry about the scope of

Part 810.

11/8/2011 19

# Section 810.3

Revised Definitions for Certain Technical Terms

• Basic scientific research

• Cooperative enrichment
enterprise

• Enrichment

• Fissile material

• Production accelerator

• Production accelerator

– driven subcritical assembly

system

• Production subcritical
assembly

11/8/2011 20 

# • Reprocessing

• Specific authorization

• Specifically authorized

nuclear activities

• Technology (including
development and production)

• Technical assistance

• Technical data

• Use

# Generally versus Specifically

Authorized Activities

• The current regulation lists the destinations with respect
to which certain activities require Secretarial authorization (810.8[a]), certain activities that always require a specific authorization (810.8[b][c]), and certain
other activities that are generally authorized to destinations not listed (810.7).

• The revision specifies destinations to which nuclear
assistance and technology transfers have been generally authorized, as long as SNT is NOT included (new 810.6).

11/8/2011 21 

# All other activities require a specific authorization (new 810.7)

# Specifically Authorized Activities

Specifically authorized nuclear activities means the provision of assistance, including
the transfer of technology, to foreign persons related to:

(1) Uranium isotope separation (uranium enrichment), plutonium isotope separation, or isotope separation of any other elements (including stable isotope separation) when the technology or process can be applied directly or indirectly
to uranium or plutonium;

(2) Fabrication of nuclear fuel containing plutonium, including preparation of fuel
elements, fuel assemblies, and cladding thereof;

(3) Hydrogen isotope separation and heavy water production;

(4) Production accelerator

- driven subcritical assembly systems;

(5) Production reactors; and

(6) Reprocessing of irradiated nuclear fuel or targets containing special nuclear

material.

11/8/2011 22 

### These activities require a specific authorization from the Secretary for export to any
destination. Other listed technologies or activities contained in the scope statement (810.2) are generally authorized to destinations contained in 810.6(b)(1).

# Current List of Specific Authorized Destinations (77)

1. Afghanistan

2. Albania

3. Algeria

4. Andorra

5. Angola

6. Armenia

7. Azerbaijan

8. Bahrain

9. Belarus

10. Benin

11. Botswana

12. Burkina Faso

13. Burma (Myanmar)

14. Burundi

15. Cambodia

16. Cameroon

17. Cape Verde

18. Central African Republic

19. Chad

20. China, People’s Republic of

11/8/2011 23 21. Comoros

22. Congo (Zaire)

23. Cuba

24. Djibouti

25. Equatorial Guinea

26. Eritrea

27. Gabon

28. Georgia

29. Guinea

30. Guinea Bissau

31. Haiti

32. India

33. Iran

34. Iraq

35. Israel

36. Kazakhstan

37. Kenya

38. Korea, Republic of

39. Kuwait

40. Kyrgyzstan 41. Laos

42. Liberia

43. Libya

44. Macedonia

45. Mali

46. Marshall Islands,

Republic of

47. Mauritania

48. Micronesia,

Federated States of

49. Moldova

50. Mongolia

51. Mozambique

52. Niger

53. Oman

54. Pakistan

55. Palau

56. Qatar

57. Russia

58. Rwanda

59. Sao Tome and Principe

60. Saudi Arabia 61. Seychelles

62. Sierra Leone

63. Somalia

64. Sudan

65. Syria

66. Tajikistan

67. Tanzania

68. Togo

69. Turkmenistan

70. Uganda

71. Ukraine

72. United Arab Emirates

73. Uzbekistan

74. Vanuatu

75. Vietnam

76. Yemen

77. Yugoslavia

# Current Part 810 Regulation

11/8/2011 24

# Proposed Revised List of Generally

Authorized Destinations

1. Argentina

2. Australia

3. Austria

4. Bangladesh

5. Belgium

6. Brazil

7. Bulgaria

8. Canada

9. Colombia

10. Cyprus

11. Czech Republic

12. Denmark

13. Egypt

14. Estonia

15. Finland

16. France

11/8/2011 25 17. Germany

18. Greece

19. Hungary

20. Indonesia

21. Ireland

22. Italy

23. Japan

24. Kazakhstan

25. Latvia

26. Lithuania

27. Luxembourg

28. Malta

29. Morocco

30. Netherlands

31. Norway

32. Peru 33. Poland

34. Portugal

35. Korea, Republic of

36. Romania

37. Slovakia

38. Slovenia

39. South Africa

40. Spain

41. Sweden

42. Switzerland

43. Taiwan

44. Thailand

45. Turkey

46. Ukraine

47. United Arab Emirates

48. United Kingdom

# Proposed Revision of
Part 810 Regulation

11/8/2011 26

# Proposed Revised List of Destinations that
Changed from Generally Authorized to Requiring Specific Authorization (73)

1. Antigua and Barbuda

2. Bahamas, The

3. Barbados

4. Belize

5. Bhutan

6. Bolivia

7. Bosnia and Herzegovina

8. Brunei Darussalam

9. Chile

10. Congo, Republic of the

11. Costa Rica

12. Cote d’Ivoire

13. Croatia

14. Dominica

15. Dominican Republic

16. Ecuador

17. El Salvador

18. Ethiopia

19. Fiji

20. Gambia, The

21. Ghana

22. Grenada

23. Guatemala

24. Guyana

25. Honduras

11/8/2011 27 26. Iceland

27. Jamaica

28. Jordan

29. Kiribati

30. Lebanon

31. Lesotho

32. Liechtenstein

33. Madagascar

34. Malawi

35. Malaysia

36. Maldives

37. Mauritius

38. Mexico

39. Monaco

40. Montenegro

41. Namibia

42. Nauru

43. Nepal

44. New Zealand

45. Nicaragua

46. Nigeria

47. Panama

48. Papua New Guinea

49. Paraguay

50. Philippines 51. Saint Kitts and Nevis

52. Saint Lucia

53. Saint Vincent and the Grenadines

54. Samoa

55. San Marino

56. Senegal

57. Serbia

58. Singapore

59. Solomon Islands

60. South Sudan

61. Sri Lanka

62. Suriname

63. Swazilan d

64. Timor

- Leste

65. Tonga

66. Trinidad and Tobago

67. Tunisia

68. Tuvalu

69. United Republic of Tanzania

70. Uruguay, Oriental Republic of

71. Venezuela, Bolivarian Republic of

72. Zambia

73. Zimbabwe

# Where Are the New “Specific

Authorization” Destinations?

11/8/2011 28 

### Africa (18)

Australia/
Oceana (8) South Asia (4)

South America (8)

North America (8)

Middle East (2)

Europe (8)

Caribbean (11)

# Reporting on New “Specific Authorization” Countries

• DOE/NNSA received thirty

- five reports in the last three
years for activities with entities in countries moving from
a generally authorized destination to a specific

authorization destination.

– Nineteen reports were for reactor tech/consulting or
engineering services to three destinations (Mexico, Philippines and Jordan).

– The rest were deemed reports for foreign nationals from sixteen different countries (Ethiopia, Honduras, Nigeria,
Grenada, Ghana, Nepal, El Salvador, Mexico, Venezuela,
Philippines, Jordan, Barbados, Senegal, Bahamas, Gambia and Malaysia).

11/8/2011 29

# Sensitive Nuclear Technology 810.9(c)

• If a proposed transfer includes sensitive nuclear
technology as defined in 810.3, the requirements of
section 127 and 128 of the Atomic Energy Act apply.

• In addition to the factors in 810.9(b), the Secretary takes

into account five additional criteria as detailed in 810/9(c).

• The Secretary’s determination also is dependent on
receipt of assurances from the foreign government that
the technology will not be replicated, used to enrich over
20% HEU, and that security arrangements are
appropriate to protect against misuse.

11/8/2011 30

# Deemed Export Applications 810.11(c)

• DOE has proposed explicit instructions about the materials required
for a specific authorization for U.S. persons seeking to transfer to a
foreign national of a country not listed in § 810.6(b) technology
subject to § 810.6(a), or seeking to transfer to any foreign national
technology subject to § 810.7. No application is required for green

card holders or asylees . The application should include:

(1) a description of the technology that will be made available to the foreign national;

(2) the purpose of the proposed release, and a description of the applicant’s technology
control program;

(3) a copy of any confidentiality agreement between the applicant and the foreign national;

and

(4) background information about the foreign national.

11/8/2011 31

# Violations 810.14

• No changes to Section 810.14 are proposed. The penalties

remain:

– (1) Permanent or temporary injunctions or restraining orders may be issued to
prevent any person from violating any provision of the Atomic Energy Act or
its implementing regulations.

– (2) Any person convicted of violating or conspiring or attempting to violate any provision of section 57 of the Atomic Energy Act may be fined up to $10,000
or imprisoned up to 10 years, or both. If the offense is committed with intent
to injure the United States or to aid any foreign nation, the penalty could be up to life imprisonment and a $20,000 fine.

– (b) Title 18 of the United States Code, section 1001, provides that persons
convicted of willfully falsifying, concealing or covering up a material fact or
making false, fictitious or fraudulent statements or representations may be fined up to $10,000 or imprisoned up to five years, or both.

11/8/2011 32

# Break

**We’ll be right back.** (10 minute break)

# Closing

**Your written comments are encouraged.**

• Identify written comments with RIN 1994

– AA02.

• Electronic submittal encouraged. Use any of the following methods:

1. Federal eRulemaking Portal: http://www.regulations.gov . Follow the instructions for submitting comments.

2. E

- mail: Port810.NOPR@hq.doe.gov . Include RIN 1994

– AA02 in the subject line of the message.

3. Mail: Richard Goorevich, Senior Policy Advisor, Office of Nonproliferation and International Security, NA

– 24, National Nuclear Security Administration, Department of Energy, 1000 Independence Avenue, SW., Washington, DC 20585.



# Thank you for participating.