Legal and Regulatory Frameworks for Decommissioning and Waste Management Jonathan leech February 2016 +44 7825 171093 [email protected]
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Legal and Regulatory Frameworks
for Decommissioning and Waste
Management
Jonathan leech
February 2016
+44 7825 171093
1
• Structures for decommissioning / waste management
• Responsibility / funding / strategy
• UK and other national examples
• International capability
• Liability and compliance risks
• International availability of waste treatment facilities
18/02/2016 2
Legal and Regulatory Frameworks for
Decommissioning and Waste Management
18/02/2016 3
UK legacy nuclear liabilities
2015 2135
“120 years or so …”
Sites Funder Estimate
Legacy sites (NDA
estate)
State (via NDA) £115 billion
Advanced Gas Cooled
Reactors / Sizewell B
Nuclear Liabilities Fund
(with state guarantee)
£19.1 billion
New build Operators (via
segregated fund)
?
18/02/2016 4
UK strategy
5
Nuclear Decommissioning Authority
NDA
Dire
ct R
ail S
erv
ice
s (D
RS
)
De
pt. o
f En
erg
y &
Clim
ate
Ch
an
ge
(DE
CC
)
Inte
rnatio
na
l Nu
cle
ar S
erv
ice
s (IN
S)
Pa
cific
Nu
cle
ar T
ransp
ort (P
NT
L)
Ru
the
rford
Inde
mn
ity
ND
A P
rope
rties
Ra
dio
activ
e W
aste
Ma
na
ge
me
nt (R
WM
)
ND
A A
rch
ive
s
Sellafield Ltd
LLW Repository Ltd
Magnox Ltd
Dounreay Site
Restoration Ltd
Supply chain
Parent Body
Organisations
Principal function Securing operation,
decommissioning and clean-up of
designated sites / operation of
designated waste facilities
Supplementary functions • Research
• Distributing information
• Education and training
• Supporting socio-economic
activities and environmental
benefits
• Providing advice
Policy implementation /
advice Admin
Operations
Capenhurst Nuclear
Services Ltd
Springfields Fuels Ltd
GD
F
18/02/2016 6
NDA site licence companies / designated sites
Sellafield Ltd
LLW Repository Ltd
Magnox Ltd
Dounreay Site
Restoration Ltd
Capenhurst Nuclear
Services Ltd
Springfields Fuels Ltd
18/02/2016 7
NDA - control not regulation
NDA • Setting / approving
plans
• Financial
sanctioning
• Directions
• Duty to have regard
to health, safety,
environment and
security
• Cannot authorise
contravention
• Allowable costs
DECC
Site Licence
Company Must use site only for
purposes that secure
compliance with
regulatory / licence
obligations
Parent Body
Organisations • Seconded
leadership team
• Additional support
• Working capital
facility
• Financial
guarantees
• Incentivised by
dividends
• Disallowable costs
Supply Chain
Environment
Agency
Office for Nuclear Regulation
18/02/2016 8
NDA annual funding spending (2015/16)
£3.31 bn budget
£2.09 bn DECC funding
£1.22 bn commercial revenue
No segregated fund
18/02/2016 9
PBO model
PBO
NDA
Site Licence Company
Parent Body Agreement
Management & Operations Contract
NDA
Site Licence Company
Service Agreement
Strategic Partner
Purchaser
NDA
Site Licence Company
Overarching Agreement
Investment Agreement
Market Enhanced SLC Asset sale
18/02/2016 10
PBO
NDA
Site Licence
Company
Parent Body
Agreement Management &
Operations Contract
PBO model
Market Enhanced SLC Asset sale
18/02/2016 11
PBO
NDA
Site Licence
Company
• Financial guarantees
• SLC shares
• Nuclear indemnity
• Operation
• Decommissioning
• Clean up
• Plan approval
• Allowable Cost
• Fee
• Dividends
• Seconded leadership team
• Additional support
• Working capital
• Disallowable Cost
PBO model
Market Enhanced SLC Asset sale
18/02/2016 12
NDA
Sellafield Ltd
Service Agreement
Strategic Partner(s)
• Strategy business
partner
• People & transformation
partner
• Programme & project
delivery partner
PBO model
Market Enhanced SLC Asset sale
18/02/2016 13
Purchaser
NDA
Springfields /
Capenhurst
Overarching
Agreement Investment
Agreement
PBO model
Market Enhanced SLC Asset sale
18/02/2016 14
Nuclear Liabilities Fund
Nuclear Liabilities
Fund Ltd (segregated fund)
NDA
• Review of
strategy and
estimates
• Approval of
payments
EDFE
(AGRs +
Sizewell B)
The Nuclear Trust
(Scottish public trust)
National Loans
Fund
• State guarantee
• Investment
strategy
• Substitution for existing segregated funds?
• Application to private sector liabilities?
• Strategic and financial control
• NDA (UK)
• AECL (Canada)
• Contrast operational roles (e.g. EWN / ENRESA / Sogin)
• Benefits?
• Control / security of funds
• Strategic oversight
• Alignment of performance risks and benefits
• Collaboration
18/02/2016 15
Comparison with other approaches
• Mobility of capability
• Managing nuclear liability risks
• Cross border waste treatment options
18/02/2016 16
International availability of capability and facilities
2/18/2016
Geographic extent of nuclear liabilities conventions
Paris Convention
Paris Convention plus Brussels Supplementary Convention
Paris / Brussels 2004 Protocols
Vienna Convention
Vienna Convention plus 1997 Protocol
Joint Protocol
Convention on Supplementary Compensation (CSC)
Not party to any convention or is party but not ratified
2/18/2016
Geographic extent of nuclear liabilities conventions
Paris Convention
Paris Convention plus Brussels Supplementary Convention
Paris / Brussels 2004 Protocols
Vienna Convention
Vienna Convention plus 1997 Protocol
Joint Protocol
Convention on Supplementary Compensation (CSC)
Not party to any convention or is party but not ratified
18/02/2016 19
Paris / Brussels liabilities for materials in transit
Damage
• Contracting party
• Joint protocol
• No nuclear installations
• Reciprocal benefits /
identical principles
• Contracting party
• Joint protocol
Ship registered in …
• Contracting party
• Joint protocol
Pre 2004 Protocols
Post 2004 Protocols
Incident
Damage
Incident
Territory of Contracting
party International water
18/02/2016 20
Paris / Brussels liabilities for out-bound materials
Territory of Contracting
party International water
Operator liable if incident occurs before:
• another operator assumes liability by contract
• another operator has taken charge
• nuclear substances unloaded from means of transport by which have
arrived in territory of a non-Contracting State
• Nuclear substances enter territory of non-contracting state (subject to
extension under national law)
Territory of Non-
Contracting party (non-JP
with nuclear installations)
Pre 2004 Protocols
Incident
Damage
Ship registered in … Damage
18/02/2016 21
Paris / Brussels liabilities for out-bound materials
Territory of Contracting
party International water
Operator liable if incident occurs before:
• another operator assumes liability by contract
• another operator has taken charge
• nuclear substances unloaded from means of transport by which have
arrived in territory of a non-Contracting State
• Nuclear substances enter territory of non-contracting state (subject to
extension under national law)
Post 2004 Protocols
Incident
Territory of Non-
Contracting party (non-JP
with nuclear installations)
{ Liability transfer requires
"direct economic interest"
18/02/2016 22
Paris / Brussels liabilities for in-bound materials
Territory of Contracting
party International water
Operator liable if incident occurs after:
• liability assumed by contract from another operator
• has taken charge
• nuclear substances loaded on the means of transport by
which they are to be carried form territory of non-Contracting
State, where sent with operator's written consent
• nuclear substances leave territory of non-contracting state
(subject to extension under national law)
Pre 2004 Protocols
Incident
Damage
Territory of Non-
Contracting party (non-JP
with nuclear installations)
Ship registered in … Damage
18/02/2016 23
Paris / Brussels liabilities for in-bound materials
Territory of Contracting
party International water
Post 2004 Protocols
Incident
Liability transfer requires
"direct economic interest" }
Territory of Non-
Contracting party (non-JP
with nuclear installations)
Operator liable if incident occurs after:
• liability assumed by contract from another operator
• has taken charge
• nuclear substances loaded on the means of transport by
which they are to be carried form territory of non-Contracting
State, where sent with operator's written consent
• nuclear substances leave territory of non-contracting state
(subject to extension under national law)
• Assessment of practicable options
• Best Available Technique (BAT) / optimal treatment and disposal routes
• Limited relevance of proximity - radiological risk?
• Compliance with EU procurement (where relevant)
• Compliance and liability risks
• Import / export licencing
• Environmental risks in destination state
• Return shipping costs
• Public / political pressures
18/02/2016 24
Cross border waste management options
Legal and Regulatory Frameworks
for Decommissioning and Waste
Management
Jonathan leech
February 2016
+44 7825 171093
25
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