[Federal Register Volume 89, Number 102 (Friday, May 24, 2024)]
[Notices]
[Pages 45871-45874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11392]


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DEPARTMENT OF ENERGY


Instructions for Requesting a Waiver From the Secretary of Energy 
for the Import of Russian Low-Enriched Uranium (LEU) Into the United 
States

AGENCY: Department of Energy (DOE).

ACTION: Notice of availability.

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SUMMARY: DOE is announcing a process and related instructions for 
entities to request a waiver to permit imports of Russian LEU following 
enactment of a law prohibiting such imports without a waiver.

DATES: This action will become effective immediately on May 24, 2024.

FOR FURTHER INFORMATION CONTACT: Rory Stanley, Chief of Staff, Office 
of Nuclear Energy, Department of Energy, Phone: (202) 586-2240, Email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    On May 13, 2024, President Biden signed the Prohibiting Russian 
Uranium Imports Act, (``the Act''), which amends section 3112A of the 
USEC Privatization Act, codified at 42 U.S.C. 2297h-10a (``section 
3112A'').\1\ The Act adds a new subsection (d) to 3112A prohibiting the 
import of Russian LEU into the United States beginning on August 11, 
2024. The Act specifies that two types of Russian LEU are subject to 
the import prohibition: (1) unirradiated LEU produced in the Russian 
Federation or by a Russian Entity, and (2) unirradiated LEU that is 
determined to have been exchanged with, swapped for, or otherwise 
obtained in lieu of unirradiated LEU produced in the Russian Federation 
or by a Russian Entity in a manner designed to circumvent the 
restrictions under 42 U.S.C. 2297h-10a(d).
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    \1\ Consolidated Security, Disaster Assistance, and Continuing 
Appropriations Act, 2009, Public Law 110-329, div. C, tit. VIII, 
sec. 8118 (Sept. 30, 2008) (amending USEC by adding a new sec. 3112A 
(Incentives for Additional Downblending of Highly Enriched Uranium 
by the Russian Federation).
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    The Act authorizes the Secretary of Energy, in consultation with 
the Secretary of State and the Secretary of Commerce, to waive 
temporarily the

[[Page 45872]]

prohibition and permit the importation of Russian LEU if the Secretary 
of Energy determines that: ``(i) no alternative viable source of [LEU] 
is available to sustain the continued operation of a nuclear reactor or 
a United States nuclear energy company; or (ii) importation of [LEU] 
described in [42 U.S.C. 2297h-10a(d)(1)] is in the national interest.'' 
42 U.S.C. 2297h-10a(d)(2)(A)(i)-(ii). In granting a waiver, the 
Secretary of Energy must submit a notification of such action, 
including the identification of the waiver recipient, to the following 
Congressional committees: the Senate Committee on Energy and Natural 
Resources, the Senate Committee on Finance, the House Committee on 
Energy and Commerce, and the House Committee on Ways and Means. 42 
U.S.C. 2297h-10(a)(d)(2)(D). Any waiver by the Secretary of Energy 
under this provision will terminate not later than January 1, 2028. 42 
U.S.C. 2297h-10a(d)(2)(C).
    Additionally, the Act amends section 3112A (which codified the 
export limits and other provisions in the latest amendment to the 
Agreement Suspending the Antidumping Investigation on Uranium from the 
Russian Federation (Russian Suspension Agreement)) \2\ by eliminating 
the prior provisions delineating the annual import limits through 
calendar year 2040 and replacing them with annual import limitations 
covering only calendar years 2024 through 2027. 42 U.S.C. 2297h-
10a(d)(2)(B)(i). The annual limits for these years are identical to the 
limits of the deleted sections of the prior version of section 3112A 
for those same calendar years. Consistent with the Act, the specific 
limits for calendar years 2024-2027 are as follows:
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    \2\ See 2020 Amendment to the Agreement Suspending the 
Antidumping Investigation on Uranium From the Russian Federation, 85 
FR 64112 (October 9, 2020). The export limits and certain other 
provisions of the amended Russian Suspension Agreement were codified 
in section 3112A of the USEC Privatization Act, which details the 
limits applying to the importation of uranium from the Russian 
Federation. See Consolidated Appropriations Act, 2021, Public Law 
116-260, div. Z, tit. II, sec. 2007, Extension and Expansion of 
Limitations on Importation of Uranium from Russian Federation (Dec. 
27, 2020).

                     Russian LEU Importation Limits
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                                                       Importation limit
                    Calendar year                        (in kilograms)
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2024.................................................            476,536
2025.................................................            470,376
2026.................................................            464,183
2027.................................................            459,083
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    The Secretary of Energy cannot grant waivers for the import of 
aggregate annual amounts of Russian LEU in excess of these limits. 42 
U.S.C. 2297h-10a(d)(2). The Act makes the Secretary of Commerce 
responsible for administering and enforcing these import limitations in 
accordance with the provisions of the Russian Suspension Agreement. 42 
U.S.C. 2297h-10a(d)(2)(B)(ii).

Waiver Procedures and Requirements

    As previously described, the Secretary of Energy, in consultation 
with the Secretary of State and Secretary of Commerce, may grant 
temporary waivers authorizing the import of specific quantities of 
Russian LEU into the United States taking place from August 11, 2024 
until January 1, 2028, provided that the quantities of those imports do 
not exceed the limits set forth in 42 U.S.C. 2297h-10a(d)(2)(B)(i). The 
Secretary of Energy may grant such waivers if the Secretary determines 
that: (i) no alternative viable source of LEU is available to sustain 
the continued operation of a nuclear reactor or a U.S. nuclear energy 
company; or (ii) importation of Russian LEU is in the national 
interest. 42 U.S.C. 2297h-10a(d)(2)(A)(i)-(ii).
    The Act does not define what constitutes an alternative viable 
source. DOE notes that planning for a reactor refueling involves long 
lead times and a need for certainty concerning the availability of the 
fuel to support the refueling. Thus, an alternative source needs to be 
identified and secured many months prior to a scheduled refueling. This 
timing issue is necessarily a significant factor in determining whether 
an alternative source is available. In addition, DOE does not interpret 
viable to mean that the terms and conditions, including price, of an 
alternative source must be the same as the prohibited Russian import 
but rather that the terms and conditions must be reasonable in the 
context of overall market conditions.
    DOE does not consider the American Assured Fuel Supply (AAFS) as an 
alternative viable source for purposes of determining whether to grant 
a waiver. Thus, an application to purchase material from the AAFS is 
not a prerequisite to apply for a waiver under 42 U.S.C. 2297h-10a(d). 
These two processes are separate and distinct.
    The Act also does not define what constitutes an import that is in 
the national interest. With respect to waiver requests under 
consideration by DOE, Department of State, and Department of Commerce, 
there is a presumption that an import will be in the national interest 
if: (1) the import is necessary to maintain the viability of a U.S. 
nuclear energy company that is critical to the U.S. nuclear energy fuel 
chain; or (2) the import is intended to support an existing arrangement 
to provide fuel for a nuclear power plant in another country and thus 
minimize the likelihood of that country seeking a non-U.S. fuel 
supplier. DOE believes it is important to the national interest to keep 
existing elements of the domestic fuel chain infrastructure in 
operation and to focus on expanding domestic fuel chain capacity. DOE 
also believes it is important to the national interest to maintain 
supply relationships with end-users in other countries while additional 
LEU capacity is being developed. In addition, waiver applicants may 
identify other situations that they believe may be in the national 
interest for consideration by the Secretary of Energy.
    DOE notes that the Act provides that LEU imported from a country 
other than Russia is considered Russian LEU if the LEU is determined to 
have been exchanged with, swapped for, or otherwise obtained in lieu of 
unirradiated LEU that was produced in the Russian Federation or by a 
Russian entity in a manner designed to circumvent the restrictions 
under 42 U.S.C. 2297h-10(d). With respect to waiver requests under 
consideration by DOE, Department of State, and Department of Commerce, 
there will be a presumption against imports which result from efforts 
to circumvent the ban on imports of Russian LEU. Note that the need to 
consider whether an import from a country other than Russia might 
involve Russian LEU applies to all imports.
    A waiver granted by the Secretary of Energy only relates to the 
prohibition on importation of Russian LEU established by the new 
section 3112A(d). Such a waiver does not affect any other statutory or 
regulatory requirement relating to the importation of Russian LEU, 
including requirements for Nuclear Regulatory Commission (NRC) licenses 
to import and possess Russian LEU, and for U.S. Department of Commerce 
approval of contracts, as required, and shipments under the Russian 
Suspension Agreement.

Examples of Scenarios Likely Warranting Waivers

    The following examples describe situations where a waiver would 
likely be appropriate.
    Example 1--No Alternative Viable Source: Applicant/Importer is an 
End User. With respect to a request from an end user for a waiver 
allowing the

[[Page 45873]]

import of Russian LEU, the applicant demonstrates that: (1) it has a 
signed contract (approved by the U.S. Department of Commerce) to 
receive the Russian LEU; (2) such LEU will support a near-term 
refueling of a domestic nuclear power plant to prevent gaps or 
reductions in operation due to uncertainty about the availability of 
fuel when needed; and (3) it has made a good faith effort to obtain the 
LEU from an alternative source and has been unable to obtain such LEU 
from an alternative source for reasonable terms and on a schedule 
needed to sustain the continued operation of its domestic nuclear 
reactor with no gaps or reductions in operation due to uncertainty 
about the availability of fuel when needed.
    Example 2--No Alternative Viable Source: Applicant/Importer is a 
U.S. Nuclear Energy Company, Domestic Distribution. For a waiver 
request from a U.S. nuclear energy company for an import of Russian LEU 
for domestic distribution, the company demonstrates that it: (1) has a 
signed contract (approved by the U.S. Department of Commerce, as 
required under the Russian Suspension Agreement) to receive the Russian 
LEU; (2) has a signed contract (approved by the U.S. Department of 
Commerce, as required under the Russian Suspension Agreement) to supply 
a domestic end user with Russian LEU; (3) shows that such Russian LEU 
will support a near-term refueling of a domestic nuclear power plant to 
prevent gaps or reductions in operation due to uncertainty about the 
availability of fuel when needed; and (4) has made a good faith effort 
to obtain the LEU from an alternative source and has been unable to 
obtain LEU from an alternative source for reasonable terms and on the 
schedule needed to satisfy the terms and conditions of an existing 
contract to supply LEU for the operation of a domestic nuclear reactor.
    Example 3--National Interest: Applicant/Importer is a U.S. Nuclear 
Energy Company, Foreign Distribution. For a waiver request from a U.S. 
nuclear energy company for imports for processing and re-export, the 
company demonstrates that it: (1) has a signed contract to receive the 
Russian LEU; and (2) has an existing signed contract to supply the 
Russian LEU to an end user in another country prior to January 1, 2028.
    Example 4--National Interest: Applicant/Importer is a U.S. Nuclear 
Energy Company Critical to the U.S. Nuclear Energy Supply Chain. For a 
waiver request from a U.S. nuclear energy company for imports for 
domestic or foreign distribution, the company demonstrates that it is a 
critical part of the U.S. nuclear energy supply chain, and, in the 
absence of a waiver, it would not be able to stay in business. The 
company must demonstrate that it has the relevant signed contract(s) 
approved by the U.S. Department of Commerce, as required under the 
Russian Suspension Agreement.

Instructions for Requesting a Waiver

    Entities seeking a waiver by the Secretary of Energy for import of 
Russian LEU during the period from August 11, 2024 until January 1, 
2028, must follow the instructions below:
    1. Applicants requesting a waiver should submit their request to: 
Chief of Staff, Office of Nuclear Energy, Department of Energy, 1000 
Independence Avenue SW, Washington, DC 20585, phone: (202) 586-2240; 
Email: [email protected]. It is recommended that 
requests be submitted electronically via email. Please include 
``Request for a Waiver to Permit Imports of Russian LEU'' in the 
subject line.
    2. The request should contain at a minimum the following 
information:
    a. Name, address, and contact information of the applicant and, if 
applicable, the separate end user for whom the applicant is seeking to 
import the Russian LEU;
    b. For the U.S. consignee, the license number and expiration date 
of the NRC or Agreement State license that authorizes the U.S. 
consignee to receive and possess the Russian LEU to be imported;
    c. Date of anticipated entry into the U.S. of the Russian LEU for 
which a waiver is sought;
    d. Amounts and assays of, and intended use of, the Russian LEU for 
which a waiver is sought;
    e. For domestic distribution, whether the applicant has an existing 
signed contract approved by the U.S. Department of Commerce, as 
required under the Russian Suspension Agreement, for purchase of such 
LEU, and, if the applicant is not the end user, whether the applicant 
has an existing signed contract with a domestic end user approved by 
the U.S. Department of Commerce, as required under the Russian 
Suspension Agreement, and if any such contract(s) exists, the duration 
of such contracts, and any other relevant terms and conditions;
    f. For foreign distribution, whether the applicant has an existing 
signed contract to receive the Russian LEU; and an existing signed 
contract to supply the Russian LEU to an end user in another country 
prior to January 1, 2028.
    g. If applicable, the date that fuel is needed by an end user to 
avoid an interruption or gap in continued operation of a nuclear 
reactor or U.S. nuclear energy company;
    h. The approximate date(s) of the import(s) of Russian LEU for 
which the applicant is requesting the waiver(s), with no request for 
any import on or after January 1, 2028;
    i. For a request for a waiver based on a demonstration of no 
alternative viable source of LEU, a detailed description of reasonable 
efforts made to obtain an alternative source of LEU, together with a 
detailed explanation of why the applicant was not able to obtain an 
alternative source of LEU available on reasonable terms and on the 
schedule needed to sustain the continued operation of a nuclear reactor 
or U.S. nuclear energy company. Given the long lead times associated 
with planning a reactor refueling and the need for certainty concerning 
the availability of fuel, the level of documentation and evidence 
needed to support a demonstration of no alternative viable source of 
LEU will necessarily increase for imports associated with refuelings 
later in time since the applicant will have had more time to find an 
alternative source of LEU;
    j. For a request for a waiver in the national interest, a detailed 
description of why the applicant believes the importation of the 
Russian LEU is in the national interest;
    k. For a request for a waiver applying to an import for foreign 
distribution, the expected date on which fuel will be exported to an 
end user in another country;
    l. A description of the impact, including the timing of such 
impact, if a waiver is not granted and the Russian LEU cannot be 
imported; and
    m. Any other information that the applicant believes could assist 
the Secretary of Energy in making the waiver determination.
    3. Requests for a waiver may be submitted at any time after the 
issuance of this Notice.
    4. After review, DOE may request additional information from an 
applicant.
    DOE will endeavor to decide whether to grant a waiver as soon as 
practical following receipt of sufficient documentation but expects a 
minimum processing period (including consultation with the Secretary of 
State and the Secretary of Commerce) of 30 days from receipt of the 
waiver request to DOE issuing a waiver determination. As noted 
previously, the level of

[[Page 45874]]

documentation necessary to support a waiver will vary depending on the 
date of the refueling associated with a particular import. Any waiver 
granted shall terminate not later than January 1, 2028, and no requests 
for a waiver or for extension of a waiver will be accepted or granted 
after that date.

Confidential Business Information

    Pursuant to 10 CFR 1004.11, any person submitting information that 
he or she believes to be confidential and exempt by law from public 
disclosure should submit via email two well-marked copies: one copy of 
the document marked confidential including all the information believed 
to be confidential, and one copy of the document marked non-
confidential with the information believed to be confidential deleted. 
DOE will make its own determination about the confidential status of 
the information and the information will be treated in accordance with 
this determination. As appropriate, DOE will provide all information 
submitted by the applicant to the Department of State and the 
Department of Commerce for purposes of consultation.

Definitions

    The terms ``applicant'' and ``importer'' mean any U.S. person who 
is a uranium broker, end user of Russian LEU, or any other U.S. person 
who will add value to the imported Russian LEU by processing, handling, 
or otherwise modifying it in some way before it is received by the 
ultimate end user.
    The terms ``low-enriched uranium'' and ``LEU'' mean both low-
enriched uranium as defined in section 3102 of the USEC Privatization 
Act (42 U.S.C. 2297h); and low-enriched uranium as defined in section 
3112A(a) of that Act (42 U.S.C. 2297h-10a(a)).
    The term ``Russian Entity'' means an entity organized under the 
laws of or otherwise subject to the jurisdiction of the Government of 
the Russian Federation.
    The phrase ``Russian LEU'' means:
    (1) Unirradiated low-enriched uranium that is produced in the 
Russian Federation or by a Russian entity; and
    (2) Unirradiated low-enriched uranium that is determined to have 
been exchanged with, swapped for, or otherwise obtained in lieu of 
unirradiated low-enriched uranium that is produced in the Russian 
Federation or by a Russian entity in a manner designed to circumvent 
the restrictions under 42 U.S.C. 2297h-10a(d).
    The term ``U.S. nuclear energy company'' means a company that is 
organized under the laws of, or otherwise subject to the jurisdiction 
of, the United States; and is involved in the nuclear energy industry.

Signing Authority

    This document of the Department of Energy was signed on May 20, 
2024, by Dr. K. Michael Goff, Acting Assistant Secretary for Nuclear 
Energy, pursuant to delegated authority from the Secretary of Energy. 
That document with the original signature and date is maintained by 
DOE. For administrative purposes only, and in compliance with 
requirements of the Office of the Federal Register, the undersigned DOE 
Federal Register Liaison Officer has been authorized to sign and submit 
the document in electronic format for publication, as an official 
document of the Department of Energy. This administrative process in no 
way alters the legal effect of this document upon publication in the 
Federal Register.

    Signed in Washington, DC, on May 20, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2024-11392 Filed 5-23-24; 8:45 am]
BILLING CODE 6450-01-P