EDF_REGISTRATION_DOCUMENT_2017

1.

PRESENTATION OF EDF GROUP Legislative and regulatory environment

The financing of decommissioning and radioactive waste management activities The Law of 28 June 2006, which is now Articles L. 542-1 et seq. of the French Environment Code, defines the organisation and the financing of radioactive waste management, along with the terms for a framework to evaluate and cover the costs of decommissioning BNF, as well as managing spent fuels and radioactive waste, such terms being incorporated into Articles L. 594-1 et seq. In particular, the assets allocated to cover provisions cannot be used for any other purpose by the operator, and separate accounting procedures for these assets must be used. The implementation of these provisions is controlled by the administrative authority, i.e. the Minister for Energy, which is itself overseen by a National Assessment Commission for the financing of decommissioning costs for BNFs and the management of spent fuels and radioactive waste. Decree no. 2007-243 of 23 February 2007 on securing the financing of costs in the nuclear industry sets forth the terms and conditions for implementing the Law of June 2006. A report is filed with the administrative authorities and the NSA every three years and a copy sent to the Statutory Auditors. This report includes, in particular, a valuation of the costs, the methods used for the calculation of provisions, and the composition of the assets. The administrative authorities may require any additional supporting documents, have an outside organisation conduct a study, or require an In France, nuclear activities that present a risk of exposing persons to ionising radiation are regulated by two separate sets of rules, depending on the category of persons to be protected. Regulations on the basic protection of the population against such radiation, which are governed by the French Public Health Code, are primarily based on all nuclear activities being subject to a declaration, registration or authorisation. Authorisations granted to establish a Basic Nuclear Facility serve as the authorisation required under the French Public Health Code. Article R. 1333-8 of the French Public Health Code sets the maximum exposure level of the general public at 1 mSv per year. French regulations on the protection of workers against the dangers of ionising radiation, which are governed by the French Labour Code, lay down various obligations for employers of workers who are likely to be exposed and, in particular, set a limit on exposure of workers to ionising radiation at 20 mSv over a period of twelve consecutive months. The French Health Code contains the provisions applicable to controlling high-level sealed radioactive sources and orphan sources. Directive no. 2013/59/Euratom of 5 December 2013, which laid down “basic safety standards”, repealed Directive no. 96/29 of 13 May 1996. This Directive must be transposed before 6 February 2018. The aforementioned Order no. 2016-128 of 10 February 2016 brought about this transposition. The entry into force of these provisions is subject to the publication of the decrees reforming the French Public Health Code and the French Labour Code. Civil liability of nuclear facility operators Several international conventions govern the civil liability of nuclear facility operators, in particular the Paris Convention of 29 July 1960 on Third-Party Liability in the Field of Nuclear Energy and the Brussels Convention of 31 January 1963, which supplements the Paris Convention. These two conventions are applicable in the signatory countries that have ratified them, including France and the United Kingdom (see also section 2.5.6 “Specific insurance for nuclear facility operation”). The Paris Convention established a special liability derogation system, with specific characteristics. Liability for nuclear damage to persons and property is strict (even in the absence of a fault), limited in terms of the amount and duration, and is exclusively focused on the operator of the nuclear facility. In France, the operator’s liability was limited to €91.5 million per nuclear accident at a facility and to €22.9 million per nuclear accident during transport. These amounts were respectively increased to €700 million and €70 million on 18 February 2016 when Article 130 of the Law of 17 August 2015 on Energy Transition for Green Growth mentioned below entered into force. Over and above the maximum amount for which the operator is liable, the State in which the incident occurred is responsible for compensating victims up to a maximum of €201.4 million (provided that said State is a Contracting State of the Brussels Convention); over and above this amount, Member States that have ratified expert valuation of the assets at the operator’s expense. Regulations on radiation protection

Committee composed of State Councillors and advisers to the French Court of Cassation, which will be able to impose administrative fines of up to €10 million. Decommissioning of nuclear facilities The decommissioning of a BNF is prescribed by a Prime Minister’s decree that is issued after a public enquiry and an opinion by the NSA. This decree specifies the stages of the decommissioning, how long it will last and the intended final status. Once the decommissioning has been completed, the operator must send the NSA a declassification request, which, following an approval decision by the NSA, makes it possible to end the BNF status of the facility. The Law of 17 August 2015 on Energy Transition for Green Growth, in particular its provision that is now Article L. 593-25 of the French Environment Code, gave legislative value to the principle implemented since the early 2000s by EDF according to which decommissioning must take place within a timeframe that is “as short as possible” after final shutdown, under conditions that are economically acceptable and in compliance with the principles set forth in Article L. 1333-2 of the French Public Health Code and section II of Article L. 110-1 of the French Environment Code. Moreover, the aforementioned Law introduced an additional administrative stage which consists of the operator having a duty, at least two years before the scheduled shutdown date, to make a declaration that its facility will be shut down. Decree no. 2016-846 of 28 June 2016 on the modification, final shutdown and decommissioning of basic nuclear facilities, and sub-contracting, amended the Decree of 2 November 2007, known as the “Procedures Decree”, by implementing the provisions derived from the Law on Energy Transition for Green Growth, in particular the content of the shutdown declaration and decommissioning application files. adioactive waste EDF’s business is subject to French regulations on the sustainable management of radioactive waste. EDF bears liability for the radioactive waste resulting from its operations. In France, radioactive waste is managed by the National Agency for Radioactive Waste Management (ANDRA), a public institution of industrial and commercial nature created by Law no. 91-1381 of 30 December 1991 on research into the management of radioactive waste. The method used to manage radioactive waste in France depends on the level of radioactivity and on the radioactivity lifespan of the waste (see section 1.4.1.1.4 “The nuclear fuel cycle and related issues”). The Law of 28 June 2006, which is now Articles L. 542-1 et seq. of the French Environment Code, defines the organisation and the financing of radioactive waste management, along with the terms for a framework to evaluate and cover the costs of decommissioning BNF, as well as managing spent fuels and radioactive waste, is incorporated into Articles L. 594-1 et seq. of the French Environment Code. In particular, the assets allocated to cover provisions cannot be used for any other purpose by the operator, and separate accounting procedures for these assets must be used. The implementation of these provisions is controlled by the administrative authority, i.e. the Minister for Energy, which is itself overseen by a National Assessment Commission for the financing of decommissioning costs for BNFs and the management of spent fuels and radioactive waste. Decree no. 2007-243 of 23 February 2007 on securing the financing of costs in the nuclear industry sets forth the terms and conditions for implementing the Law of June 2006. A report is filed with the administrative authorities and the NSA every three years and a copy sent to the Statutory Auditors. This report includes, in particular, a valuation of the costs, the methods used for the calculation of provisions, and the composition of the assets. The administrative authorities may require any additional supporting documents, have an outside organisation conduct a study, or require an expert valuation of the assets at the operator’s expense. Directive no. 2011/70/Euratom, which was transposed by Order no. 2016-128 of 10 February 2016 containing various provisions on nuclear matters, forms a common set of fundamental rules for the management of spent fuel and radioactive waste for a certain number of European Union Member States, and clarifies several concepts. This text presents, in particular, deep geological disposal as the safest and most sustainable option to manage Long-Lived, High-Level Waste and considers the possibility of creating disposal facilities shared between several Member States, on a voluntary basis.

92

EDF I Reference Document 2017