[Federal Register Volume 78, Number 243 (Wednesday, December 18, 2013)]
[Notices]
[Pages 76600-76603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-30080]


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DEPARTMENT OF ENERGY


Proposed Subsequent Arrangement

AGENCY: Office of Nonproliferation and International Security, 
Department of Energy.

ACTION: Proposed Subsequent Arrangement.

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SUMMARY: The Department is providing notice of a proposed agreement 
between the Government of the United States of America and the 
Government of the People's Republic of China that is being processed as 
a subsequent arrangement.

DATES: This subsequent arrangement will take effect no sooner than 
January 2, 2014.

FOR FURTHER INFORMATION CONTACT: Ms. Katie Strangis, Office of 
Nonproliferation and International Security, National Nuclear Security 
Administration, Department of Energy. Telephone: 202-586-8623 or email: 
[email protected].

SUPPLEMENTARY INFORMATION: The agreement that is being processed as a 
subsequent arrangement is a proposed Implementing Arrangement Between 
the Government of the United States of America and the Government of 
the People's Republic of China Under the Agreement for Cooperation 
Between the Government of the United States of America and the 
Government of the People's Republic of China Concerning Peaceful Uses 
of Nuclear Energy (the Implementing Arrangement). The text of the 
Implementing Arrangement is appended at the end of this notice. The 
Implementing Arrangement will permit the exchange and joint development 
of Traveling Wave Reactor (TWR) design information and related 
technology between the United States and the People's Republic of China 
(China), in accordance with section 57.b(1) of the Atomic Energy Act of 
1954, as amended (AEA). Section 57(b) states that persons seeking to 
export nuclear technology or assistance from the United States, the 
Secretary of Energy must find that the transfer is not inimical to the 
interests of the United States. Authorized U.S. persons pursuant to 
this Implementing Arrangement will fulfill this requirement by seeking 
the relevant license, codified in 10 CFR part 810, from the Department 
of Energy.
    At the request of U.S. industry and the Chinese government, the 
Department of Energy/National Nuclear Security Administration (DOE/
NNSA) and Department of State (DOS) negotiated an agreement with 
agencies of the Government of the People's Republic of China (China) 
that would facilitate the joint development of TWR technology between a 
U.S. commercial entity and a Chinese governmental entity engaged in 
similar technology development. DOE/NNSA and DOS negotiated the 
agreement as an implementing arrangement under the Agreement for 
Cooperation Between the Government of the United States of America and 
the Government of the People's Republic of China Concerning Peaceful 
Uses of Nuclear Energy of [July 23, 1985] (123 Agreement) to cover the 
joint TWR work and permit the transfer of technology from the United 
States to China. The agencies of the Chinese government involved in the 
negotiations were the National Energy Administration (NEA), the China 
Atomic Energy Authority (CAEA), and the Ministry of Foreign Affairs 
(MFA). The Implementing Arrangement establishes the scope of 
cooperation and allows both governments to designate individuals and 
entities, including in the commercial sector, as ``Authorized Persons'' 
who are permitted to exchange and develop information and technology, 
subject to the conditions and restrictions set out in the Implementing 
Arrangement.
    As provided in Section 131a. of the Atomic Energy Act of 1954, as 
amended, I have determined that this subsequent arrangement will not be 
inimical to the common defense and security of the United States. In 
reaching this determination, all relevant factors were considered.

    Issued in Washington, DC, on December 9, 2013.
Richard Goorevich,
Senior Policy Advisor, Office of Nonproliferation and International 
Security, National Nuclear Security Administration.

IMPLEMENTING ARRANGEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF 
AMERICA AND THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA UNDER THE 
AGREEMENT FOR COOPERATION BETWEEN THE GOVERNMENT OF THE UNITED STATES 
OF AMERICA AND THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA 
CONCERNING PEACEFUL USES OF NUCLEAR ENERGY

    The Government of the United States of America and the 
Government of the People's Republic of China (hereinafter referred 
to as the ``Parties''),
    RECOGNIZING that the United States of America and the People's 
Republic of China are parties to the Treaty on the Non-Proliferation 
of Nuclear Weapons, done at Washington, London and Moscow July 1, 
1968;
    NOTING the Agreement for Cooperation Between the Government of 
the United States of America and the Government of the People's 
Republic of China Concerning Peaceful Uses of Nuclear Energy signed 
on July 23, 1985 (hereinafter referred to as the ``Agreement for 
Cooperation'');
    NOTING the Exchange of Diplomatic Notes between the Parties on 
September 12, 2003, regarding their understanding concerning 
assurances for transfers of nuclear technology, and the Statement of 
Intent between the Department of Energy of the United States of 
America and the China Atomic Energy Authority on exchange of 
assurances for transfers of nuclear technology of September 16, 
2003;
    ACKNOWLEDGING the need to develop an appropriate mix of 
environmentally safe and secure sources of energy, including 
nuclear, to meet the needs of their respective countries' 
populations;
    NOTING the shared commitment of the Parties to preventing 
nuclear proliferation;
    EMPHASIZING the critical role of international safeguards in 
promoting international confidence in the peaceful uses of nuclear 
energy;
    ACKNOWLEDGING their shared wish to facilitate research and 
development on relevant topics related to the peaceful uses of 
nuclear energy;
    RECOGNIZING that research and development of traveling wave 
reactor (``TWR'') technology is ongoing in both the United States 
and the People's Republic of China and that the significant physical 
and intellectual investment in infrastructure required to support 
TWR development need not be duplicated by each Party, but rather can 
be shared and harmonized in an efficient and equitable fashion;
    REALIZING that the successful development of traveling wave 
reactors for the production of power for peaceful purposes would 
contribute significantly to the peaceful uses of nuclear power

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worldwide, non-proliferation, and the sustainable development of 
nuclear power;
    WISHING to facilitate cooperation in the development and 
deployment of TWR technology;
    NOTING that Article 3 of the Agreement for Cooperation provides 
that information and technology concerning the use of nuclear energy 
for peaceful purposes may be transferred, and Article 2, paragraph 2 
of the Agreement for Cooperation provides that transfer of 
information and technology under the Agreement for Cooperation may 
be undertaken directly between the parties to that agreement or 
through authorized persons, subject to the terms of the Agreement 
for Cooperation and to such additional terms and conditions as may 
be agreed by the parties thereto; and
    WISHING to provide for such additional terms and conditions for 
cooperation by the Parties and their authorized persons in the 
development and deployment of TWR technology in support of 
cooperative efforts to develop TWRs,
    Have agreed as follows:

ARTICLE I

    1. The Parties acknowledge their mutual interest in facilitating 
cooperation between their countries in the development of TWR 
technology on the basis of mutual benefit, equality and reciprocity, 
and shall endeavor to take steps to facilitate such cooperation, 
without prejudice to the rights and obligations of the Parties under 
this Implementing Arrangement and the Agreement for Cooperation.
    2. Each Party shall endeavor not to take any action for the 
purpose of interfering with the development and deployment of TWR 
technology for peaceful purposes in accordance with the Agreement 
for Cooperation.
    3. The Parties agree that, in fulfilling their obligations under 
this Implementing Arrangement, their cooperation on the development 
and deployment of TWR technology shall be in accordance with their 
respective applicable treaties, national laws and regulations. The 
Parties recognize, with respect to the observance of this 
Implementing Arrangement, the principle of international law that 
provides that a party may not invoke the provisions of its internal 
law as justification for its failure to perform a treaty.
    4. For purposes of this Implementing Arrangement: ``TWR 
technology'' means information or technology (including information 
incorporated in a nuclear reactor, component or equipment) that has 
not yet entered into the public domain and that is especially 
designed, prepared or necessary for the development, testing, 
manufacture, deployment, operation, or maintenance of traveling wave 
reactors, and for the manufacture, installation, or disposition of 
fuel for such reactors, and such other information which may be so 
designated by written agreement of the Parties.
    ``Traveling wave reactors'' or ``TWRs'' means reactors that 
would be designed to operate indefinitely using natural uranium, 
depleted uranium, spent light water reactor fuel, or thorium as 
reload fuel after start-up, and in which waves that breed and then 
burn would travel relative to the fuel. Under this Implementing 
Arrangement, standing wave reactors are covered by the definition of 
``traveling wave reactors''.

ARTICLE II

    1. The Executive Agent under this Implementing Arrangement for 
the Government of the United States of America shall be the United 
States Department of Energy, and the Executive Agents under this 
Implementing Arrangement for the Government of the People's Republic 
of China shall be the National Energy Administration of China and 
the China Atomic Energy Authority. In particular, the China Atomic 
Energy Authority is the leading Executive Agent for the People's 
Republic of China for implementing Article VI and Article VII of 
this Implementing Arrangement. Each Party may change its Executive 
Agents or add one or more additional Executive Agents by written 
notice to the other Party.
    2. Each Party's Executive Agents shall have the right, in 
accordance with the laws and regulations of its country, and 
following written notification to the other Party's Executive 
Agents, to delegate responsibilities for the implementation of this 
Implementing Arrangement to other agencies, departments, or units of 
its respective government.
    3. Each Party's Executive Agents shall endeavor to facilitate 
the participation, as appropriate, and coordination of all 
appropriate scientific and technical entities in that Party's 
country, including but not limited to fuel fabrication enterprises, 
nuclear power plants, and regulatory agencies, that will be involved 
in the cooperation subject to this Implementing Arrangement.

ARTICLE III

    Each Party's Executive Agents shall designate in writing the 
individuals and/or entities within the jurisdiction of that Party 
authorized to participate in cooperation under this Implementing 
Arrangement in the development and deployment of TWR technology and, 
in connection with such cooperation, to transfer TWR technology to 
the Executive Agents and Authorized Persons of the other Party. 
Individuals and entities so designated by an Executive Agent of a 
Party are hereinafter referred to as ``Authorized Persons''.

ARTICLE IV

    The areas of cooperation on development and deployment of TWR 
technology under this Implementing Arrangement shall include:
    A) TWR reactor neutronics analysis and experimentation, 
including but not limited to reactor, plant shielding, nuclear data, 
software (source program), nuclear database, conceptual design, core 
and system design and certification in the phases, core and fuel 
management technology, model and calculation;
    B) TWR reactor and plant safety, including but not limited to 
reactor system safety standards, accident analysis software, and 
accident management regulations;
    C) TWR fuels and materials, including but not limited to long-
life fuel; clad materials; structural materials; component 
materials; absorber materials; circuit materials; fuels and 
materials research and development (R&D); testing programs used to 
develop the fuels and materials manufacturing processes; 
experimental data; raw material; formulae; technological processes; 
and facilities and equipment used to manufacture the fuels and 
materials;
    D) TWR nuclear steam supply systems and their associated 
components and equipment, including but not limited to design 
standard, component, equipment, and system design, thermal 
hydraulics, mechanics, and chemistry analysis;
    E) TWR engineered safety features and their associated 
components, including but not limited to design standards, component 
and system design, and structural design;
    F) TWR reactor building, including but not limited to 
containment design and structural and architectural analysis;
    G) TWR reactor instrumentation and control, and application of 
computer science, including but not limited to survey, monitor, 
control, and protection systems;
    H) TWR reactor quality assurance, non-destructive inspection 
practices, and in-service inspection technology;
    I) TWR plant design, construction, debug, test run, operation, 
maintenance, and decommissioning technology;
    J) TWR economic methodology and evaluation technology;
    K) Treatment, storage, recycle, and disposal technology of TWR 
reactor and system spent fuel;
    L) Treatment, storage, and disposal technology of TWR reactor 
and system radioactive waste; and
    M) Such other areas as the Parties or their Executive Agents 
agree upon in writing.

ARTICLE V

    1. Cooperation under this Implementing Arrangement with respect 
to the areas listed in Article IV may include, but is not limited 
to, the following forms:
    A) Exchange of views and information;
    B) Organization of, and participation in, seminars, workshops, 
and other meetings;
    C) Exchange of scientists, engineers, and other specialists for 
agreed periods of time for cooperative training, and participation 
in experiments, analysis, design, and other research, development 
and demonstration activities at civilian scientific centers, 
academic institutions, nuclear reactor facilities, laboratories, 
engineering offices, and other facilities of the Parties;
    D) Exchange, provision, or loan of samples, materials, 
instruments, components, and equipment for experiments, testing, and 
evaluation;
    E) The use by one Party of the civilian facilities owned or 
operated by the other Party, subject in each case to the execution 
of an appropriate agreement therefor; and
    F) Such other specific forms of cooperation as may be agreed by 
the Parties or their Executive Agents in writing.
    2. The Parties agree that Authorized Persons from both countries 
may carry out cooperation under this Implementing

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Arrangement through such forms as establishing a joint venture.

ARTICLE VI

    1. Any TWR technology transferred by one Party (or its 
Authorized Persons) to the other Party (or its Authorized Persons) 
under this Implementing Arrangement as well as any TWR technology 
developed in the course of the cooperation under this Implementing 
Arrangement or jointly developed by two or more Authorized Persons 
through such cooperation shall be subject to this Implementing 
Arrangement. In addition, items derived from any TWR technology 
subject to this Implementing Arrangement or developed through the 
cooperation or jointly developed by two or more Authorized Persons 
through such cooperation under this Implementing Arrangement shall 
be subject to this Implementing Arrangement.
    2. The following requirements shall apply to TWR technology and 
items subject to this Implementing Arrangement:
    A) TWR technology and items subject to this Implementing 
Arrangement shall not be used for the production of any nuclear 
weapons or nuclear explosive device, or for research on or 
development of any such weapon or device, or for any military 
purpose.
    B) TWR technology transferred under this Implementing 
Arrangement and items derived therefrom shall not be retransferred 
to unauthorized persons or, unless the Party that originally 
transferred the TWR technology agrees in advance in writing, from 
the jurisdiction of the other Party.
    C) TWR technology developed in the course of the cooperation 
under this Implementing Arrangement or jointly developed by two or 
more Authorized Persons through such cooperation, and items derived 
therefrom, shall not be retransferred to unauthorized persons or, 
unless the Parties agree in advance in writing, from the 
jurisdiction of either Party.
    D) Prior to the transfer to a third country of TWR technology or 
items subject to this Implementing Arrangement, the Parties by 
mutual agreement in writing will define the conditions in accordance 
with which such TWR technology or items may be transferred to the 
jurisdiction of the third country.
    E) Each Party shall require recipients of TWR technology under 
this Implementing Arrangement to take all measures necessary to 
ensure adequate protection of the transferred TWR technology as well 
as technology developed in the course of the cooperation under this 
Implementing Arrangement or jointly developed by two or more 
Authorized Persons through such cooperation, and to ensure adequate 
physical protection of items under that Party's jurisdiction that 
are subject to this Implementing Arrangement. Such physical 
protection shall, as appropriate, provide protection at a minimum 
comparable to the recommendations set forth in the International 
Atomic Energy Agency Nuclear Security Series No. 13 entitled 
``Nuclear Security Recommendations on Physical Protection of Nuclear 
Material and Nuclear Facilities'' (INFCIRC/225/Revision 5) and such 
further revisions of that document as agreed to by the Parties.
    3. Technology or items determined by the Executive Agents 
pursuant to paragraph 4 E)(ii) of this Article VI to have been 
designed, constructed, fabricated, operated, or maintained 
independently of transferred technical data, technology or other 
information or items and of the cooperation under this Implementing 
Arrangement shall not be subject to the requirements of paragraph 2 
of this Article VI.
    4. The Executive Agents of the Parties shall determine jointly 
what information and technology may be subject to the terms and 
conditions of this Implementing Arrangement according to the 
following procedures:
    A) Each Party, through its Executive Agents, shall require all 
its Authorized Persons to keep, and to provide to that Party's 
Executive Agents, an annual inventory of all technical data, 
technology or other information associated with the development, 
construction, deployment or use of a traveling wave reactor that is 
transferred to the other Party, one of its Executive Agents or any 
of its Authorized Persons.
    B) Each Party, through its Executive Agents, shall require all 
its Authorized Persons to keep, and to provide to that Party's 
Executive Agents, an annual inventory of all technical data, 
technology or other information or cooperation associated with the 
development, construction, deployment or use of a traveling wave 
reactor that is developed in the course of the cooperation under 
this Implementing Arrangement or jointly developed by two or more 
Authorized Persons through such cooperation, and items derived 
therefrom.
    C) Each Party, through its Executive Agents, shall require all 
its Authorized Persons to provide to its Executive Agents, prior to 
transferring any technical data, technology or other information or 
items to, or engaging in any cooperation with, the other Party under 
this Implementing Arrangement, its Executive Agents or any of its 
Authorized Persons, a list and description of what is to be 
transferred or jointly developed.
    D) The Executive Agents of the Parties shall establish a 
cooperation plan though consultations by the following process:
    i. Each Party's Executive Agents shall request that Party's 
Authorized Persons to consult with the Authorized Persons of the 
other Party to develop a proposed cooperation plan that outlines the 
scope of technical data, technology or other information or 
cooperation associated with the development, construction, 
deployment or use of a traveling wave reactor that is anticipated to 
be transferred, or communicated between the Parties, their Executive 
Agents or any of their Authorized Persons over a period to be agreed 
on by the Executive Agents. Based on the submissions from the 
Authorized Persons, the Executive Agents shall agree upon an initial 
cooperation plan at their initial consultation, which shall take 
place as soon as possible after the entry into force of this 
Implementing Arrangement but before any transfer of TWR technology 
by any Authorized Person.
    ii. In subsequent years, the Executive Agents shall review the 
cooperation plan at annual consultations, or any time agreed by the 
Executive Agents, based on information obtained from Authorized 
Persons, regarding transfers and cooperation expected to take place 
in the following year, and shall make appropriate revisions or 
adjustments to the cooperation plan.
    iii. Each Party, through its Executive Agents, shall authorize 
its Authorized Persons to cooperate with Authorized Persons of the 
other Party upon the adoption of the initial cooperation plan and 
only in accordance with the cooperation plan, as it may be revised 
from time to time.
    E) The Executive Agents shall exchange and review annually the 
inventories referred to in subparagraphs A) and B) of this paragraph 
4 and reach agreement on a final annual inventory subject to the 
terms and conditions of this Implementing Arrangement, through 
consultations by the following procedures:
    i. Beginning at the end of the first year of cooperation under 
this Implementing Arrangement and in each subsequent year, each 
Party, through its Executive Agents, shall require each of its 
Authorized Persons to submit a list and description of what that 
Authorized Person has transferred, received or jointly developed 
through cooperation under this Implementing Arrangement in the 
previous year, and to work with the appropriate Authorized Persons 
of the other Party to seek agreement between all relevant Authorized 
Persons on such a list.
    ii. The Executive Agents of both Parties shall review the lists 
referred to in subparagraph E)(i) and the annual inventories 
referred to in subparagraphs A) and B) of this paragraph 4 on an 
annual basis and seek to agree in writing on a final annual 
inventory (``Final Annual Inventory'') of what is subject to the 
terms and conditions of this Implementing Arrangement.
    iii. The annual inventories referred to in subparagraphs A) and 
B) of this paragraph 4 shall be subject to the terms and conditions 
of this Implementing Arrangement, including but not limited to the 
provisions on retransfer in Article VII hereof, until completion of 
the review by the Executive Agents in the annual consultation of 
that year in accordance with subparagraph E) of this paragraph. 
Technical data, technology or other information or cooperation or 
items on the annual inventories referred to in subparagraphs A) and 
B) of this paragraph 4 that the Executive Agents of both Parties 
agree are not included within the scope of this Implementing 
Arrangement shall be removed from the Final Annual Inventory and 
shall not thereafter be subject to the terms and conditions of this 
Implementing Arrangement.

ARTICLE VII

    1. Prior to any transfer of TWR technology or items subject to 
this Implementing Arrangement by any Party to a third country, the 
Party proposing to make such transfer (the transferring Party) shall 
request in written form the consent of the other Party (the 
consenting Party) or the Executive Agent for the consenting Party to 
the transfer of the specified TWR technology or items to the 
identified third country.
    2. If the consenting Party or its Executive Agent provides to 
the transferring Party its

[[Page 76603]]

written consent to such transfer to that identified third country, 
subject to the agreed conditions in accordance with which such TWR 
technology or items may be transferred to the jurisdiction of that 
identified third country as provided in Article VI, paragraph 2, 
subparagraph D) above, the consenting Party shall obtain in advance 
from the identified third country to which the TWR technology or 
items are to be transferred the same assurances as those set forth 
in Article VI, paragraph 2.
    3. The transferring Party shall ensure prior to the transfer 
that the appropriate governmental authority in the identified third 
country is informed that the TWR technology and items being 
retransferred are under obligation to the consenting Party.
    4. After the consenting Party receives the same assurances as 
set forth in Article VI, paragraph 2, from the identified third 
country, that Party will inform the transferring Party that it may 
proceed with the proposed transfer.

ARTICLE VIII

    The Parties recognize that arrangements for allocation of 
intellectual property rights and benefits of the cooperation by 
Authorized Persons under this Implementing Arrangement may be made 
separately between those Authorized Persons.

ARTICLE IX

    1. This Implementing Arrangement shall enter into force on the 
date of the latest written notification between the Parties that 
they have completed their internal legal procedures necessary for 
its entry into force, and shall remain in force for five years, 
unless terminated as provided herein. For so long as the Agreement 
for Cooperation is in force, this Implementing Arrangement shall be 
automatically renewed for further five-year periods unless either 
Party notifies the other in writing at least six months prior to the 
expiration of the first five-year period or any succeeding five-year 
period that it does not wish to renew this Implementing Arrangement 
at the end of that period. In addition, this Implementing 
Arrangement shall terminate upon the termination or expiration of 
the Agreement for Cooperation.
    2. This Implementing Arrangement may be amended by the Parties 
in writing.
    3. This Implementing Arrangement may be terminated at any time 
by both Parties in writing, or by either Party with one year's 
advance notification in writing. Any termination or expiration shall 
be without prejudice to the rights which may have accrued under this 
Implementing Arrangement to either Party up to the date of such 
termination or expiration. Notwithstanding the termination or 
expiration of this Implementing Arrangement, the provisions of 
Articles VI and VII shall continue in effect until the Parties 
otherwise agree in writing.
    4. Joint activities not completed at the termination or 
expiration of this Implementing Arrangement may, if agreed by the 
Parties in writing, be continued until their completion under the 
terms of this Implementing Arrangement so long as the Agreement for 
Cooperation remains in force.
    5. This Implementing Arrangement is subject to the Agreement for 
Cooperation, and in case of any conflict between the Agreement for 
Cooperation and this Implementing Arrangement, the Agreement for 
Cooperation shall prevail. Any questions of interpretation or 
implementation relating to this Implementing Arrangement arising 
during its term shall be resolved by consultations between the 
Parties' Executive Agents or, if necessary, the Parties.
    IN WITNESS WHEREOF, the undersigned, duly authorized thereto by 
their respective governments, have signed this Implementing 
Arrangement.

[FR Doc. 2013-30080 Filed 12-17-13; 8:45 am]
BILLING CODE 6450-01-P