EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Legislative and regulatory environment

to protect public safety, health and sanitation, as well as nature and the environment. The authorisation to commission a BNF is issued by the NSA after a public consultation. In this respect, the operator provides the updated safety rule set and an internal emergency plan (IEP) that specifies the organisational measures and requisite resources that must be implemented by the operator in the event of an emergency. A periodic safety inspection assesses the compliance of the facility with the applicable regulations and updates the assessment of the risks that the facility poses to the interests mentioned above. Pursuant to the decree that authorises the facility to be set up, the conditions applicable to pumping water, discharging liquid and gaseous wastes − whether radioactive or not − as well as the related limits placed on these activities are set by an NSA decision; decisions that set the limits for discharges by facilities into the environment require a ministerial approval. The NSA also issues regulations pursuant to the decree that authorises the facility to be set up, in order to prevent or limit the effects of any accidents or incidents, to define measures to protect residents on an individual and collective basis, limit noise pollution and manage the waste generated by and stored at the facilities. Rules on nuclear safety and the inspection of basic nuclear facilities The nuclear facilities operated by EDF are subject to the general regulations on basic nuclear facilities derived from the French Environment Code. Priority must be given to the protection of the interests mentioned by the law (public safety, health and sanitation, nature and the environment) via the prevention of accidents and the limitation of their consequences in respect of nuclear safety, as specified by the BNF Order. In this respect, nuclear safety is defined as a set of technical provisions and organisational measures concerning the design, the construction, the operation, the shutdown and the decommissioning of BNF, as well as the transportation of radioactive substances, which are adopted with a view to preventing accidents or limiting the effects thereof. The NSA also has the authority to issue regulatory decisions of a technical nature to complete the terms and conditions for application of the decrees and orders issued in the field of nuclear safety and radiation protection, with the exception of those related to occupational healthcare. These decisions are subject to the approval of the relevant ministers. Since the aforementioned BNF Order was published, out of the thirty or so decisions that are being prepared, more than twenty decisions have already been published and approved; others are being prepared. The provisions of the French Environment Code concerning BNF have also introduced mechanisms for informing the authorities. In this respect, all accidents and incidents that occur as a result of the operation of a BNF and that could potentially cause significant harm to the health of the population or to the environment, must be declared without delay by the operator to the NSA and to the administrative authority. Moreover, the methods used to inform the public have been improved, with, for example, the creation of a High Committee for Transparency and Information on Nuclear Safety (HCTINS) and the possibility now given to any member of the public to ask the operator directly for information on the risks involved in exposure to ionising radiation and on the safety and radiation protection measures adopted to prevent or reduce these risks or exposure. Moreover, criminal law penalties have been established to punish BNF operators who do not comply with their legal and regulatory obligations, such as a three-year prison sentence and a €150,000 fine if a BNF is operated without authorisation, or a one-year prison sentence and a €30,000 fine if radioactive substances are transported without authorisation or approval. It should also be noted that in July 2014, the Council of Ministers of the European Union adopted Directive 2014/87/Euratom of 8 July 2014 amending Directive 2009/71/Euratom establishing a Community framework for the nuclear safety of nuclear facilities (see section 1.5.6.2.2 “Specific regulations applicable to basic nuclear facilities”). The legal framework described above for nuclear safety and inspection was completed by certain provisions of the Law of 17 August 2015 on Energy Transition for Green Growth and Order no. 2016-128 of 10 February 2016 that contains various provisions on nuclear matters. In particular, the role of local information commissions (CLI) was reinforced: they can review all matters that fall within the scope of their remits of their own motion, they must be consulted if the specific intervention plan is amended and can inspect BNF at the request of the chair of the CLI in case of an event greater than or equal to 1 on the INES scale, etc. In addition, the ASN's administrative sanctioning power has been strengthened, notably with the creation, within the ASN, of a Sanctions

Decree no. 2015-1250 of 7 October 2015 amended the rules governing how the financial guarantees that are applicable to “Seveso” ICPEs are lodged, in particular by allowing operators of multiple facilities to pool these guarantees. A forthcoming order will specify the rules for lodging these guarantees, as well as the methodology for calculating pooled guarantees. Facilities that are subject to the “IED” Directive Directive no. 2010/75/EU of 24 November 2010 on industrial emissions (known as the “IED” Directive) revised and recast several existing Directives into a single piece of legislation, including the IPPC, LCP, Waste Incineration and VOC Directives, among others. Chapter III of this Directive affects EDF as it regulates the combustion plants that are found in fossil fuel-fired plants, in particular. The applicable requirement levels depend on the rated thermal input of the combustion plants concerned and on the fuel used. This Directive, which was partially transposed into French law via Order no. 2012-7 of 5 January 2012 (and incorporated into the French Environment Code in Articles L. 515-28 to L. 515-31), has the effect of broadening the application of the IPPC Directive to include new activities, enhancing the scope of the best available techniques (BAT) on which the fixed emission limit values will be based, causing a periodic reconsideration of operating conditions in order to take into account changes in BAT and, in certain cases, requiring a “baseline report” on the state of soil. Decree no. 2013-5 of 2 January 2013 partially transposed the provisions of the IED Directive on the state of soil. Article 1 of the Decree, which is now Article R. 512-4 of the French Environment Code, states that interim analysis of the soil will now be required in the event of a substantive change of the facility and, if pollution occurs, the operator must propose measures. Another Decree no. 2013-374 of 2 May 2013 completed this transposition by introducing provisions into Articles R. 515-58 to R. 515-84 of the French Environment Code that are specific to facilities that are covered by the IED Directive. These provisions apply to fossil fuel-fired plants, under the conditions laid down, in particular, by the Order of 26 August 2013 on combustion plants with power of 20MW or more. Finally, Decree no. 2017-849 of 9 May 2017 amending the regulatory provisions of the French Environment Code on facilities mentioned in Annex I of Directive 2010/75/EU of the European Parliament and Council of 24 November 2010 on industrial emissions has streamlined administrative procedures (including the content of the review file) and made the implementation of the IED Directive more operational. Specific regulations applicable to basic 1.5.6.2.2 nuclear facilities In France, EDF is subject, in particular, to Law no. 2006-686 of 13 June 2006 on Transparency and Safety in the Nuclear Field (the “TSN Law”), which was integrated into the French Environment Code, to the provisions for its implementation and, in particular, Decree no. 2007-1557 of 2 November 2007, which was most recently amended by Decree no. 2016-846 of 28 June 2016 on the modification, final shutdown and decommissioning of basic nuclear facilities, and on sub-contracting, and to the Order of 7 February 2012, as amended, which laid down the general rules for basic nuclear facilities (the “BNF Order”). These texts specify the legal regime applicable to basic nuclear facilities (BNF). The Law was amended by Order no. 2016-128 of 10 February 2016 that contains various provisions on nuclear matters and which, in particular, transposed into French law Council Directive no. 2014/87/Euratom of 8 July 2014 amending Directives no. 2009/71/Euratom establishing a Community framework for the nuclear safety of nuclear installations and Directive no. 2011/70/Euratom of 19 July 2011 establishing a Community framework for the responsible and safe management of spent fuel and radioactive waste. It will also concern the NSA’s powers of sanction. The TSN Law created the Nuclear Safety Authority (NSA), an independent government agency, with the Minister for Nuclear Safety retaining authority to issue the main authorisations and draft general regulations. The construction of a BNF is authorised, following a public debate and a public enquiry, by a decree that is issued after consulting the NSA and on the basis of a report by the Minister for Nuclear Safety. The decree that authorises the construction must state the identity of the operator, the nature of the facility, its maximum capacity and its perimeter. The application for authorisation to construct a BNF must include, in particular, a preliminary safety report (PSR), a study of the impact of the facility on the environment and health, a decommissioning plan and a risk management study (RMS). The decree that authorises the construction of the BNF sets a time limit to commission the facility and the frequency of safety inspections if they are not scheduled every 10 years and, moreover, lays down basic requirements

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EDF I Reference Document 2017