Explanatory Memorandum to COM(2017)83 - Adoption of the 2016-2019 High Flux Reactor supplementary research programme to be implemented by the Joint Research Centre for Euratom

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

The HFR is used by the Commission in accordance with the agreement between Euratom and The Netherlands of 25 July 1961. This agreement was signed for a period of 99 years. In order to execute it, the two parties concluded a long lease for 99 years conferring a right in rem ("bail emphytéotique") on 31 October 1962.

HFR plays an important role in the European Union. The main goal of the supplementary research programme of the HFR is to provide a steady and reliable neutron flux for experimental purposes. The investigated domains are: nuclear materials and fuel science with the aim to improve the safety of nuclear reactors (both fission and fusion), investigations on reactor ageing and life management, research on advanced fuel cycles and waste management. The HFR acts also as a training facility hosting doctoral and post-doctoral fellows which perform their research activities through national or European Programmes.

The reactor is also used for the commercial production of radio-isotopes which cover more than 60% of all the 10 million medical diagnoses executed each year in Europe. It is a fundamental supplier for European radiopharmaceutical companies in this field. Moreover, through its location in Europe, the production of the reactor is rapidly directed to the European medical centres. This is essential for the most currently used short-life isotopes.

The operation of the Community's High Flux Reactor (HFR) has been supported by a series of supplementary research programmes.

On 13 November 2012, the Council adopted a four-year (2012-2015) supplementary research programme (Council Decision 2012/709/Euratom - OJ L321/59, 20.11.2012) to be implemented by the Joint Research Centre (JRC) for the European Atomic Energy Community on the operation of the reactor located at the JRC site in Petten, The Netherlands. The contribution for the 2012-2015 supplementary research programme came from three participating Member States: The Netherlands, France and Belgium with a total budget of EUR 31.4 million in the four-year period. This amount included the provisions for the annual contributions to the decommissioning fund of the reactor. The current supplementary research programme has expired on the 31 December 2015.

This proposal for a Council Decision concerns a new four-year programme for the HFR operation (2016-2019) based on research activities of the Nuclear Research and consultancy Group – NRG (The Netherlands) and the Commissariat à l'énergie atomique et aux énergies alternatives - CEA (France). The contribution for the 2016-2019 supplementary research programme will be EUR 30.2 million in the four-year period, provided that the HFR will continue to be in regular operation and maintenance. This amount will include the provisions for the annual contributions to the decommissioning fund of the reactor. If during the period 2016-2019, an official notification of definitive shutdown is issued by the operator NRG to the national safety authorities prior to the declaration of safe conservation state, the payments that remain to be effected as well as the calls for funds by the Commission will be suspended.

Consistency with existing policy provisions in the policy area

N.A

Consistency with other Union policies

N.A

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The proposal is based on Article 7 of the Euratom Treaty.

Subsidiarity (for non-exclusive competence)

N.A

Proportionality

N.A.

Choice of the instrument

N.A

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Ex-post evaluations/fitness checks of existing legislation

N.A

Stakeholder consultations

Among the Member States consulted in view of their research activities in the nuclear field, two Member States (The Netherlands and France) agreed to contribute to the financing of the HFR.

Collection and use of expertise

N.A

Impact assessment

N.A

Regulatory fitness and simplification

N.A

Fundamental rights

N.A

4. BUDGETARY IMPLICATIONS

In its financial statement, this new supplementary programme shows the contribution to come from two participating Member States, namely The Netherlands and France. The contributions from these two Member States amount to EUR 30.2 million for the period 2016-2019. These amounts plus the expected level of commercial income ensure a sufficient operational budget in order to balance the forecasted costs of the reactor on the period 2016-2019. It should be noted that the budget includes provisions for the decommissioning of the reactor, as well as costs linked to general support HFR, utilities, insurances and spent fuel management.

The Commission confirms the declaration recorded in the minutes of the Council meeting of 27 June 1996, by which it stated that 'the HFR can contribute, on the basis of adequate financing, to the execution of Community programmes, whether or not in the context of the Framework Programmes. This participation will take place either on a competitive basis or by means of irradiation services to JRC Institutes during the implementation of their respective activities'. This means that the Commission will not contribute to the operational cost of the HFR with funds from its institutional budget, including any cost for maintenance or repair of the reactor.

5. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

N.A

Detailed explanation of the specific provisions of the proposal

N.A