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The German Nuclear Phase-Out Agreement

Agreement Between the German Federal Government
and Utility Companies - June 2000

I. Introduction

Given this background, the federal government and the utilities agree to set limits upon the future use of existing nuclear reactors. At the same time, the reactors will be assured uninterrupted operation and waste management, provided they meet high standards of safety and comply with nuclear law.

Both sides will contribute their parts to fulfill the substance of this agreement in the long term. On the basis of its chief principles, the federal government will prepare a draft amendment of the federal nuclear law. The federal government and utilities assume that this agreement and its fulfillment will not lead to damage claims on the part of the participants.

The federal government and the utilities understand this agreement as an important contribution toward a comprehensive energy consensus. The participants will together in the future work toward the development of an environmentally sound and, in the European market, competitive energy supply. Thereby an essential contribution will also be made to assure that as many jobs as possible are secured in the energy sector.

II. Limiting Operation of Existing Reactors

2. The remaining generation (net) will be calculated as follows:

For each reactor the basis will be an ordained lifetime of 32 calendar years from the beginning of commercial operation, upon which the remaining lifetime is calculated as of 1/1/2000. For Obrigheim a grace period until 12/31/2002 is agreed upon.

In addition to this reference generation, 5.5% higher annual production will be allowed, assuming continuing technical optimization and rating increases of individual reactors and because of the liberalization and changes in required reserve capacities for grid stabilization. The remaining generation is calculated by multiplying the remaining lifetime by the 5.5%-higher reference generation. The remaining generation for the individual reactors is listed in Annex 1. These amounts will be made legally binding in an appendix to a revision of the Federal Nuclear Law.

3. The utilities agree to report monthly the generated power to the Federal Radiation Protection Agency (BFS).

4. The utilities may transfer generation amounts (production rights) from one reactor to another by the concerned utilities reporting to BFS.

There is unanimity between participants that the flexibility will be used to transfer generation amounts from less-competitive to more-competitive reactors. For that reason generation amounts will in principle be transferred from older to newer and from smaller to bigger reactors. If generation amounts are to be transferred from newer to older plants, this requires the agreement between negotiating parties through the monitoring group (see VII) with the participation of the utility concerned; this is not required when the newer reactor is decommissioned at the same time.

5. RWE withdraws the licensing application for the Muelheim-Kaerlich reactor. At the same time, the company withdraws its damage suit against the state of Rheinland-Pfalz. Under the agreement all legal and physical claims in connection with the licensing as well as the time offline of the reactor are extinguished.

RWE is granted the possibility of transferring 107.25 TWH to other reactors, according to II/4. It is agreed that this generation amount may be transferred to the Emsland reactor or to other newer reactors as well as to Gundremmingen-B and -C, and a maximum 20per cent to Biblis-B.

III. Operation of Reactors During Remaining Lifetimes

During remaining lifetimes the required safety will be assured by law; the federal government will take no initiative to alter this safety standard and its underlying safety philosophy. By maintaining the requirements under nuclear law, the federal government provides for the undisturbed operation of the installations.

Regarding further procedures for the backfitting of Biblis-A, see the declaration to RWE AG made by the Federal Ministry of Environment & Nuclear Safety (BMU) found in Annex 2.

The utilities will carry out periodic safety examinations (SSA and PSA) according to the schedule in Annex 3, and report the results to regulators. By doing this, the practices (already) followed by a majority of reactors will be continued. The examinations will be repeated every 10 years. The reviews are not required when the owner makes a binding declaration that operation of the reactor will be terminated inside three years after the date set for review in Annex 3. The safety review will be carried out according to the basis of the guidelines for periodic safety reviews. If the guidelines are further developed, BMU will involve the states, the Reactor Safety Commission, and the utilities.

The requirement of a safety examination will be as-signed as a utility responsibility, to assist government regulators according to Title 19 of the federal nuclear law. The independence and qualification of GRS (to perform PSRs) remains assured.The right to perform research in the area of nuclear technology, especially for safety, remains unfettered.

2. Economic Framework Conditions

The federal government will take no initiative which will discriminate against nuclear energy by one-sided measures. This is also the case for tax law. However the re-quired coverage (Ed. note: insurance for third-party nuclear liability) will be increased to an amount of DM 5-billion.

IV. Waste Management

The utilities are building intermediate storage facilities (Ed note: for spent fuel) as quickly as possible at or near the reactor sites. Possibilities are being investigated together to arrange temporary storage capacity at the sites before the intermediate storage facilities are operated.

2. Reprocessing

Spent fuel management from reactors will be limited to direct (Ed note: geologic) disposal beginning 7/1/2005. Until then transports to reprocessing plants are allowed. The delivered amount of spent fuel may be reprocessed. The reprocessing is predicated upon the demonstration that the products of reprocessing which must be taken back are disposed of without harm (Ed note: to the environment or human health, schadlose Verwertung).

The utilities will utilize all acceptable contractual possibilities with their international partners to end reprocessing as soon as possible. The federal government and utilities assume that in the foreseen period of time for reprocessing the remaining amounts can be transported. They also assume that the licensing process for transports to reprocessing can be completed by the summer 2000 provided legal requirements are complied with.

Should the process of completing the reprocessing not be completed in due time, for reasons which utilities are not responsible, both sides will at an appropriate time seek a fitting solution.

3. Transports

The utilities may transport spent fuel to the regional interim storage facilities (Ed. note: at Gorleben and Ahaus) until the storage facilities at reactors are operable, and may transport spent fuel abroad until reprocessing is terminated. Both sides assume that the local storage facilities will be operable in no more than five years.

The federal government, states, and utilities will establish together a standing coordinating group for carrying out the transports. Its responsibilities include cooperation with federal and state security authorities. 4.) Gorleben The exploration of the salt dome at Gorleben will be interrupted for at least three, and at most 10 years, to clarify conceptual and safety-technical questions. The federal government provides a declaration on the exploration of the Gorleben salt dome, which is Annex 4 and is part of this agreement.

5. Pilot Conditioning Plant

The responsibile authorities will conclude licensing of the pilot conditioning plant for spent fuel (Ed. note: under construction at Gorleben) according to legal regulations. Use of the plant will be limited to repairing damaged casks. An application to legally activate its nuclear license (Sofortvollzug) will be filed only in the case of acute need.

6. Konrad

The responsible authorities will conclude the licensing approval process for the Konrad mine shaft (Ed. note: for disposal of low-level and medium-level waste). The party filing the license application will withdraw the application for activation of the nuclear license (Sofortvollzug), in order to make possible a legal review.

7. Costs for Gorleben and Konrad

It is agreed that the accumulated costs thus far for Gorleben and Konrad represent necessary expenditure. The utilities will therefore not demand reimbursement for sums paid in advance. The basis for this is the approval by the federal government to maintain the Gorleben site during the moratorium (cf. in Annex 3 the declaration of the federal government on exploration of the Gorleben salt dome). The maintenance costs will be paid for (for Konrad in part) by the utilities.

The utilities take note that the federal government is trying to resolve the damage claim (Ed. note: of the previous pro-nuclear) federal government against the state of Lower Saxony, made in connection with previous regulatory decisionmaking, including the failure of (Lower Saxony) to award licenses. The utilities declare that they will make no reimbursment demands against the federal government regarding the portion of the costs which applies to them.

8. Waste Management Forward Planning Requirement

The requirement for demonstration of forward planning of waste management will be adjusted to match the terms of this agreement.

V. Revision of Federal Nuclear Law

VI. Job Security

VII. Monitoring

BMU Declaration to RWE on Further Procedures for Backfitting of Biblis-A

Declaration of Federal Government on Exploration of Gorleben Salt Dome

As potential host rock media, salt, as well as granite, clay, and other formations may be considered. In 1979 it was decided to explore the Gorleben salt dome as a possible repository site. The geological results thus far attained may be summarized accordingly: The area consisting of older rock salt, which is foreseen for storing high-level waste (HLW), has shown to be greater than expected during the course of excavation of excava-tion area 1 (EB-1). However EB-1 does not suffice to store the predicted waste volume.

The analytically determined rate of rise of the salt dome permits the expectation that, with regard to possible rises it is not likely there will be any related dangers even in long-term time horizons (in the order of 1-million years). No appreciable pockets of solutions, gas, or condensates have been found. The previous findings, suggesting that the the area is a tight formation have been confirmed, including the expected function of the salt as a barrier. To this extent the obtained geological findings do not contradict the thesis that the Gorleben salt dome is a suitable site. However, the federal government believes it necessary, in the light of ongoing international discussion, to rework and develop further the suitability criteria and the concept for disposal of HLW. The state of science and technology and the general risk evaluation have developed substantially during recent years; this has consequences for the further exploration of the Gorleben salt dome. Above all, the following question marks pose doubts:

• The management of gas which may build up in dense rock salt as a result of corrosion and decomposition
• of the waste poses a special problem.
• The requirement that repositories allow retrievability of the radioactive waste is growing internationally.
• The suitability of salt as a medium should be compared with others, such as clay and granite, in the light of findings in other countries.
• For the geological disposal of spent fuel, additional criteria must be fulfilled, in order to exclude long-term re-criticality.
• The International Commission on Radiological Pro-tection will likely soon make public recommendations which for the first time include a radiation protection goal for non-intentional human penetration of a repository.

A further exploration of the Gorleben salt dome cannot contribute to the clarification of these outstanding questions. For this reason, the exploration of the Gorleben saltdome will be interrupted for at least three, and at most ten years; a clarification of the above questions will follow. The moratorium does not imply that Gorleben will be given up as a site for a repository. But during the clarification of conceptual and safety-technical questions no investments will be made which cannot contribute to clarification of these questions.

The federal government will take the necessary measures to maintain the Gorleben site during the moratorium. This will include the necessary legal steps to secure the position of the federal government as licensee and to secure the project from intervening third parties. The federal government will take necessary measures such that the applied for 10-year extension of the concept operations plan for the exploration project will be approved. The federal government will ensure the plan is legally protected by an appropriate action according to Title 9 of the federal nuclear law.

Summary of Nuclear Law Revision