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Export Import Bank of the United States
Nuclear Procedures and Guidelines

Introduction

1. Overview of Ex-Im Bank's Nuclear Procedures
2. Application Screening & Categorization and Environmental Information Requirements
3. Sources of Environmental Information
4. Environmental and Nuclear Safety Information Requirements Pertaining to Ex-Im Bank Programs
5. Project Monitoring

List of Annexes

Annex A Ex-Im Bank Nuclear Guidelines

Table 1: Guidelines for nuclear power projects utilizing U.S. sourced or licensed NSSS systems.
Table 2: Guidelines for nuclear power projects utilizing non-U.S. sourced or licensed NSSS systems, except for Soviet designed systems.
Table 3: Guidelines for nuclear power projects utilizing Soviet designed NSSS systems.
Table 4: Guidelines applicable to the supply of nuclear fuel reloads and related equipment.
Table 5: Guidelines applicable to research reactors or facilities used for the production of radioisotopes for medical or other purposes.

Annex B: Nuclear Screening Document
Annex C: Environmental Impact Assessment Reports

INTRODUCTION

The Charter of the Export-Import Bank (Ex-Im Bank) requires the Bank to establish procedures to take into account the potential beneficial and adverse environmental effects of goods and services for which support is requested, consistent with the mandate to foster expansion of exports. The Charter also authorizes the Board of Directors, in its judgment, to grant or withhold financing support after taking into account the beneficial and adverse environmental effects of proposed transactions.

The Charter also directs the Bank to operate its financing programs in a manner that is competitive with support offered by principal countries whose exporters compete with US exporters. In response to these Congressional mandates, Ex-Im Bank will act to maintain U.S. exporters' competitiveness in the global marketplace while taking into account the environmental effects of the projects it supports.

In December 2003, agreement was reached among the Export Credit Group of the Organization for Economic Cooperation and Development (OECD), which includes the United States, on adoption of the "OECD Recommendation on Common Approaches on Environment and Officially Supported Export Credits; 2003 Review Revised Version" (The Common Approaches). Adherence to this Agreement is intended to ensure consideration of the environmental effects of projects on a consistent basis among the major Export Credit Agencies (ECAs). Ex-Im Bank will work within the OECD to foster compliance among ECAs with the provisions of the Common Approaches and to minimize differences in the way ECAs apply their environmental policies under the Common Approaches. 

Ex-Im Bank first issued Environmental Procedures and Guidelines on February 1, 1995. Because of the unique nature of environmental issues associated with nuclear projects, the Bank issued separate procedures and guidelines for transactions involving these projects on October 2, 1995. The Nuclear Procedures and Guidelines were revised on April 2, 1998 and on July 1, 2004, and they will remain in effect until they are amended by Ex-Im Bank.

The Nuclear Guidelines are applicable to commercial nuclear power plants used for producing electric power, the supply of the initial nuclear fuel and fuel reloads, and nuclear research reactors and facilities, including reactors used to produce radioisotopes for medical and other uses. Other types of nuclear related transactions not covered by these guidelines, such as plant decommissioning or fuel fabrication facilities, will be addressed on a case-by-case basis. 

These Nuclear Procedures and Guidelines are intended to help ensure that the nuclear projects Ex-Im Bank supports are constructed and operated in an environmentally responsible manner and that the projects include reasonable measures and provisions to address public health and safety. Ex-Im Bank is not attempting to regulate nuclear related exports or to set overall U.S. Government policy with respect to its support for foreign nuclear projects, nor is it taking responsibility for the ultimate safety of these plants. Ex-Im Bank recognizes that it is the sovereign responsibility of each operating state to ensure the safety of the nuclear installations on its territory. 

The "Unified Procedures Applicable to Major Federal Actions Relating to Nuclear Activities" issued pursuant to Executive Order 12114 constitute a fundamental element of Ex-Im Bank's Nuclear Procedures and Guidelines. These Ex-Im Bank Nuclear Procedures and Guidelines, however, address applications for a broader range of nuclear-related exports than those covered by the Unified Procedures. 

The Nuclear Procedures and Guidelines have been developed under the direction of Ex-Im Bank's Engineering and Environment (E&E) Division and are intended to be compliant with the Common Approaches of the OECD and consistent with Ex-Im Bank's Environmental Procedures and Guidelines. Ex-Im Bank is committed to maintaining the competitiveness of U.S. exporters seeking to supply goods and services for foreign nuclear projects. These Nuclear Procedures and Guidelines are intended to further that objective by informing exporters of the environmental review process for nuclear transactions and the related information which Ex-Im Bank requires to enable it to review the environmental effects of these transactions. 

I. OVERVIEW OF EX-IM BANK'S NUCLEAR PROCEDURES

1. The application of Ex-Im Bank's Nuclear Procedures, as with its Environmental Procedures, is tailored to the characteristics of the various Bank programs, in a form consistent with the OECD Common Approaches.

2. All nuclear related applications will be screened and categorized as to the potential for their environmental impact and extent, if any, of subsequent environmental review according to the following elements: the type of export, specifications of the recipient nuclear facility, and the function of the export in the operations of the facility. Applications relating to nuclear transactions that have the potential for adverse environmental effects will be subject to an environmental review.

3. Ex-Im Bank's E&E Division will provide advice and counseling to exporters and borrowers unfamiliar with the requirements of these procedures, especially in cases involving small and medium-sized exporters. 

4. Applicants are required to provide environmental information satisfactory to Ex-Im Bank in support of their applications. In the course of undertaking its evaluation of the environmental effects of nuclear transactions, Ex-Im Bank may also make use of information provided by other sources, including government entities, intergovernmental organizations, and non-governmental organizations (NGOs). 

5. Consistent with the OECD objective of fostering transparency, predictability and responsibility, and to help elicit useful information concerning the environmental effects of projects from interested parties without disclosing proprietary information related to the project or application, when Ex-Im Bank receives a final application for long-term financing for a nuclear related transaction requiring an environmental review, it will follow the process set forth below:
   a. Ex-Im Bank will list the transaction, the location of the underlying project, and a brief description of the project, on the Pending Transactions List located through its WEB site, (www.exim.gov), at www.exim.gov/envproj.cfm.
   b. In addition to the above, for those applications wherein Ex-Im Bank requires submission of an Environmental Impact Assessment or comparable environmental documentation (hereinafter "EIA"), it will either make a copy of that document available to interested parties or will direct interested parties to a source such as a publicly accessible web site, where the document can be reviewed. The EIA will be made available for at least 30 calendar days prior to Ex-Im Bank's issuance of a Final Commitment. Instructions on how to obtain the EIA will be posted on Ex-Im Bank's Pending Transaction List page.

6. Consistent with the Common Approaches, transactions involving nuclear projects will be evaluated against host-country environmental guidelines and the international nuclear environmental guidelines that are set forth in Annex A. The international nuclear guidelines generally applicable will be those of the International Atomic Energy Agency (IAEA), supplemented by guidelines of the World Bank as set forth in the Pollution Prevention and Abatement Handbook (PPAH) and the World Bank Operational Safeguard Policies that are referenced in Annex A. 

7. For those nuclear projects in which the European Bank for Reconstruction and Development (EBRD) is involved, Ex-Im Bank may apply applicable EBRD guidelines to the project in order to facilitate U.S. exporter participation in such projects. Where the EBRD guidelines are insufficient to adequately consider the potential nuclear safety and environmental effects of the project, applicable elements of the IAEA guidelines and the World Bank guidelines will be used to supplement the EBRD guidelines. In any event, the Ex-Im Bank Board shall be advised of any material differences between the EBRD guidelines applied to a project and the corresponding IAEA and World Bank guidelines. 

8. To provide guidance to exporters, Annex A sets forth the scope of the environmental guidelines applicable to nuclear transactions and includes specific quantitative and qualitative guidelines condensed from the PPAH and from those World Bank Operational Policies that are applicable to Ex-Im Bank transactions. 

9. For those projects that Ex-Im Bank determines may significantly affect the quality of the human environment of the U.S., its territories or possessions, or Antarctica, Ex-Im Bank will require adherence to the environmental review procedures required by the National Environmental Policy Act (NEPA), as stipulated in 12 CFR, Chapter IV, Part 408.

10. Nuclear transactions should, in all cases, comply with the relevant environmental standards of the host country, and when the applicable international nuclear and environmental guidelines against which the project has been evaluated are more stringent, these guidelines will apply. 

11. If a project does not meet the applicable nuclear and environmental guidelines, Ex-Im Bank's Board of Directors will take account of the environmental impact and other factors relevant to the project in determining whether to provide financial support, to provide financial support conditioned on the implementation of measures to mitigate the project's adverse environmental effects, or to decline financial support.

12. Consistent with Ex-Im Bank's Charter, all loans, guarantees or insurance facilities related to nuclear exports are subject to Congressional review for a period of at least 25 days of continuous session of Congress, but not more than 35 calendar days, prior to final Ex-Im Bank authorization. 

13. Consistent with the OECD Common Approaches, Ex-Im Bank will make available to the public a list of those transactions that were approved during the past year for which it conducted an environmental review. 

II. APPLICATION SCREENING & CATEGORIZATION AND ENVIRONMENTAL INFORMATION REQUIREMENTS 

Screening Categories
Ex-Im Bank's goal is to require only the extent and detail of environmental information that is necessary to enable the Board of Directors to evaluate the environmental effects of a proposed transaction. Therefore, applicants requesting financial support for a transaction involving an export to a nuclear facility must include a completed "Nuclear Screening Document" (Annex B). The information contained in this document will enable the E&E Division to screen and categorize each application in order to determine the type of environmental and related safety information required and the extent of its subsequent environmental review. 

Transactions associated with nuclear power plants, nuclear research reactors and related facilities, or the production of nuclear fuel are designated as Category "N" with respect to Ex-Im Bank's Environmental Procedures and Guidelines. Depending on the information provided in the Nuclear Screening Document, Ex-Im Bank will further categorize the transaction either as N1, N2, N3, N4 or N5. The definition of these categories and the level of information generally needed to review transactions within these categories are summarized below.

Category N1: Proposed Transactions covered by the "Unified Procedures Applicable to Major Federal Actions Relating to Nuclear Activities"
Transactions covered in Category N1 include all transactions covered by the "Unified Procedures Applicable to Major Federal Actions Relating to Nuclear Activities," (44 Fed. Reg.65560 (1979). Transactions such as proposed greenfield nuclear power plant projects, partially built facilities, and major plant retrofits which may utilize U.S. sourced Nuclear Steam Supply Systems (NSSS) are generally covered by the Unified Procedures, to the extent that the State Department determines that the Unified Procedures are applicable. 

The Nuclear Guidelines applicable to transactions in Category N1 and the type of information required by Ex-Im Bank for a Final Commitment are contained in Annex A, Tables 1 or 5, depending on the type of the NSSS system (power plant or research reactor.) In addition, Ex-Im Bank will require submission in English of an Environmental Impact Assessment (EIA) as described in Annex C. The EIA and related information should be sufficient to identify the environmental impact of the project, measures needed to mitigate the adverse environmental effects, and to evaluate whether, or to what degree, the project meets relevant host-country and applicable international environmental and nuclear guidelines. 

Category N2: Transactions covering exports for Greenfield Projects, Partially Built Facilities and Retrofits to existing facilities which are NOT covered by the "Unified Procedures Applicable to Major Federal Actions Relating to Nuclear Activities"
Category N2 includes those transactions that are not covered by the Unified Procedures, but that contribute significantly to the physical plant or operation of a commercial nuclear power plant which is not yet licensed to operate; or the repairs, modifications or upgrades to plants which are currently licensed to operate. Such transactions will generally cover proposed exports to greenfield or partially built nuclear facilities, which will not use a U.S. sourced NSSS system, but could include the proposed supply of "Balance of Plant" equipment for these plants (such as turbine generators), engineering services, or construction services. The initial nuclear fuel core or load is also included in this category. 

The Nuclear Guidelines applicable to transactions in Category N2 and the type of information required by Ex-Im Bank for a Final Commitment are contained in Annex A, Tables 1, 2, 3 or 5, depending on the source and type of the NSSS system. In addition, upon a Final Application covering exports for any new or greenfield nuclear power facility included in this Category, Ex-Im Bank requires submission in English of an EIA as described in Annex C. 

Category N3: Nuclear Fuel Reloads and Related Fuel Equipment for Operating Nuclear Power Plants
Category N3 includes those transactions that involve the supply of nuclear fuel reloads and any related fuel equipment to an operational nuclear power plant. The Nuclear Guidelines applicable to transactions in Category N3 and the type of information required by Ex-Im Bank for a Final Commitment are contained in Annex A, Table 4.

Category N4: Research Reactors and Related Facilities not covered by the "Unified Procedures"
Transactions covered under Category N4 include the supply of reactors or other equipment to non-commercial nuclear facilities, which are not covered by the Unified Procedures Applicable to Major Federal Actions Relating to Nuclear Activities (covered in Category N1), and which are used for research and/or the production of radioisotopes for medical applications or other uses.

The Nuclear Guidelines applicable to transactions in Category N4 and the type of information required by Ex-Im Bank for a Final Commitment are contained in Annex A, Table 5. In addition, consistent with the Common Approaches of the OECD, for transactions involving construction of new research reactors, Ex-Im Bank requires submission in English of an EIA upon Final Application as described in Annex C.

Category N5: Categorical Exclusions
Transactions in Category N5 generally involve exports, which Ex-Im Bank determines are not identified with the physical operation of any particular nuclear project or facility. Included in this category are nuclear simulators designed for training purposes, environmental or radiation monitoring equipment, plant surveillance equipment and other equipment not directly connected with the operating systems of a nuclear facility, and pre-project services such as feasibility studies, EIAs or site evaluations. The products covered under transactions in Category N5 are excluded from review because they are likely to have minimal or no adverse environmental impacts. 

III. SOURCES OF ENVIRONMENTAL INFORMATION

The Applicant and Project Sponsors
It is in the applicant's or project sponsors' interest to submit the requested information as soon as possible in order to avoid delays in case processing. However, if complete information is not available at a preliminary stage, such information must be submitted for evaluation by the E&E Division before Ex-Im Bank can act on a request for a Final Commitment.

In cases requiring an EIA, the applicant may obtain from the buyer or project sponsors a copy of the Environmental Impact Assessment (EIA) in English that is already prepared for the project, since usually an EIA will have been prepared in anticipation of requirements of host-country authorities and/or international lending institutions. During the course of the application's review, Ex-Im Bank's E&E Division will advise the applicant and/or the project sponsors if additional or updated environmental or safety related information is required. 

As in the case with the financial and technical reports associated with Project Finance transactions described in Ex-Im Bank's Environmental Procedures, Ex-Im Bank reserves the right to require the sponsor to bear the expense of an outside specialist to prepare an independent report with respect to any element of the environmental or safety assessment of a nuclear project. Ex-Im Bank may determine that such a report is necessary to make an adequate evaluation of the environmental and public safety issues associated with the project.

Other U.S. Government Agencies and Multinational Institutions
In cases considered appropriate by Ex-Im Bank, the E&E Division will consult with or seek particular information from other U.S. Government agencies, U.S. Embassies and international institutions involved in nuclear power issues. In particular, Ex-Im Bank will consult with the U.S. Department of State, as to whether the Department has any objection to Ex-Im Bank participation in a proposed nuclear project. Ex-Im Bank may consult with Departments of Energy and Commerce, the Nuclear Regulatory Commission and international institutions such as the International Atomic Energy Agency.

Other Sources of Technical, Environmental and Safety Related Information
For transactions requiring submission of an EIA, information on how to obtain the EIA or information authorized for release by the project sponsors will be posted on the Pending Transaction List page of Ex-Im Bank's Web site. In order to protect competitively sensitive information, neither the Pending Transaction List, nor the EIA will provide specific information about the identity of the exporter, contract value or the products for which Ex-Im Bank financing is sought, unless otherwise authorized for release by the buyer or project sponsor. Ex-Im Bank is prohibited by the Trade Secrets Act (18, U.S.C. 1905) from disclosing confidential business information unless such disclosure is authorized by law.

Interested parties may provide information or comments regarding potential environmental issues or other problems associated with such projects by responding in writing to the E&E Division at Ex-Im Bank. Providing information does not give legal standing to any person or group as a participant in the Ex-Im Bank decision-making process. Ex-Im Bank will review and take into account the environmental information provided but may not be able to respond to the person or group providing the information. 

If material received by Ex-Im Bank from sources other than the applicant gives rise to technical, environmental or safety concerns, Ex-Im Bank will give the applicant an opportunity to provide further information addressing these concerns.

IV. ENVIRONMENTAL AND NUCLEAR SAFETY INFORMATION REQUIREMENTS PERTAINING TO EX-IM BANK PROGRAMS

General 
The level of information related to the environmental and safety effects of a nuclear transaction that will be required relates directly to the categorization of the project, as determined by the E&E Division, and the complexity of the project's potential environmental effects. Ex-Im Bank will require information sufficient to identify the project's potential environmental impact and enable it to determine whether, and to what extent, the project meets the relevant host-country and applicable international environmental and nuclear guidelines. 

For long-term transactions requiring submission of an EIA, Annex C describes the type of information about the environmental effects of a project that should be contained within an acceptable EIA. A copy of the EIA, with authorization by the buyer or project sponsor for its release to interested parties is normally required unless the buyer or sponsor has already made an English version of the EIA available by posting it on a publicly accessible Web site.

The scope and level of detail required by Ex-Im Bank to meet the information requirements of the applicable nuclear guidelines for specific transactions may vary. In evaluating a transaction's environmental effects, Ex-Im Bank may consider factors such as the availability of information from other sources and the scope of the U.S. exports supported by Ex-Im Bank relative to the scope of the overall project. 

Long Term Loans and Guarantees
A Final Commitment Application may involve conversion of a Letter of Interest (LI), conversion of a Preliminary Commitment (PC), or it may be a stand-alone application. 

Letters of Interest 
Letters of Interest (LIs) are non-binding expressions of Ex-Im Bank's willingness to consider participating in a transaction. Ex-Im Bank generally issues LIs within seven business days of the receipt of an application. LI applications for long-term nuclear related transactions must be accompanied by a completed Nuclear Screening Document (Annex B) that will be used for initial categorization of the transaction and to inform the applicant as to the scope of environmental information required for a subsequent Final Application. This initial categorization is preliminary and subject to revision once the characteristics of the project are more fully defined at a subsequent application phase. 

Except in rare instances involving nuclear projects which are known to have potentially severe adverse environmental effects (as defined in Annex A), LIs for nuclear transactions will be issued following a review of the application by the E&E Division. Commensurate with the requirements noted in Annex A, Ex-Im Bank will specify in the LI the type of information needed by the E&E Division to evaluate the project, and will indicate the need for an EIA as described in Annex C, if applicable. This allows the applicant a maximum amount of time to gather the required environmental and related safety information in order to avoid processing delays at the subsequent Final Application stage.

Preliminary Commitments 
Preliminary Commitments (PCs) are issued after Ex-Im Bank's staff and Board of Directors analyze the financial soundness, technical feasibility, and environmental effects of a proposed transaction. Applications for a PC involving nuclear transactions must include a completed Nuclear Screening Document (Annex B). Based on the information provided in the screening form, the E&E Division will inform the applicant promptly of the category of the transaction and the scope of additional information required to process the PC.

Ex-Im Bank understands that in certain cases, not all the information needed to evaluate the project against host-country or applicable international environmental and nuclear guidelines is accessible to applicants at the PC stage. In these cases, based on recommendations of the E&E Division, Ex-Im Bank will condition its issuance of a PC on a subsequent review and satisfactory evaluation of such information at the Final Commitment stage. Even though adequate information may be available for evaluation, if environmental concerns are sufficiently serious, Ex-Im Bank may decline to issue a PC on environmental grounds. If a PC is issued, the PC Approval Letter will identify information that will be required in the Final Commitment application. PC letters may identify environmental issues that should be addressed (for example, by proposed mitigation measures) at the Final Commitment stage.

Final Commitments 
Final Commitments (or Final Applications) for long-term nuclear transactions are approved by Ex-Im Bank only after the completion of all financial, technical, and environmental analyses, including any required Congressional reviews. If no PC has been issued, the application for a Final Commitment must include a completed Nuclear Screening Document (Annex B). All long-term final applications for nuclear transactions, except those designated as Category N5, will undergo a complete environmental evaluation in accordance with the review procedures and information requirements noted above. In order that interested parties have sufficient time to review and provide information and comments to the E&E Division about the environmental effects of Final Commitments requiring submission of an EIA, the transaction's EIA should be made available to interested parties for at least 30 calendar days prior to Ex-Im Bank's issuance of a Final Commitment. 

No Final Commitment will be authorized unless Ex-Im Bank, in its sole judgment, has received sufficient environmental information to enable the E&E Division to assess the environmental effects of the project. The environmental information provided will be evaluated against the relevant host-country guidelines and the applicable international nuclear and environmental guidelines as set forth in Annex A. 

Medium-Term Loans, Guarantees and Insurance 
Medium-term financial support provided by Ex-Im Bank through its loan, guarantee, and insurance programs generally covers the export of capital goods and services that are not purchased in conjunction with a particular greenfield project. Consistent with Ex-Im Bank's Environmental Procedures, applications for Medium-Term nuclear related transactions will not require submission of a Nuclear Screening Document. In accordance with its Environmental Procedures, Ex-Im Bank will internally screen medium-term applications for Final Commitments involving nuclear transactions based on the information contained in the application. For those unusual medium-term transactions where the screening reveals that the underlying transaction is nuclear related (Environmental Category N), the applicant will be informed and required to submit sufficient information about the underlying nuclear transaction for Ex-Im Bank to undertake an environmental review against relevant host-country and applicable nuclear guidelines as set forth in Annex A. The extent of environmental review of medium term applications involving nuclear transactions will generally be less comprehensive than the reviews for long-term applications involving nuclear transactions unless the medium term transaction relates to a facility located in or near an environmentally sensitive site as defined in Ex-Im Bank's Environmental Procedures and Guidelines. 

Credit Guarantee Facilities (CGFs)
The CGF program is designed to reduce up-front administrative time and cost and thereby better serve small and medium-sized exporters. CGFs only address medium term transactions. Most CGFs provide guarantees of medium-term lines of credit between U.S. and foreign financial institutions that are used to finance U.S. exports consisting of a wide range of capital goods to a variety of end-users, or certain recurring capital goods to a specific foreign buyer. Nuclear related exports should be excluded from the scope of CGFs made between Ex-Im Bank and foreign financial institutions. Any nuclear related transactions contained within the scope of CGFs made between Ex-Im Bank and the buyer of nuclear related exports will be subject to review against the nuclear guidelines contained in Annex A prior to the required Congressional Review period and subsequent authorization by Ex-Im Bank. 

Short-Term Insurance
The scope of the Common Approaches does not include transactions having repayment terms less than two years. Short-term financial support for exports provided by Ex-Im Bank export credit insurance generally covers commodities, consumer goods, and other non-capital goods and services. These products typically have limited, if any, environmental consequences except in the case of sales for nuclear fuel. Any such nuclear-related exports will be subject to an environmental review in accordance with the applicable Ex-Im Bank Nuclear Guidelines (Annex A) prior to authorization. 

Working Capital Guarantee Program (WCGP)
Ex-Im Bank provides short-term working capital support directly to U.S. exporters for activities related to the production or supply of items within the United States for subsequent export. Applications for Working Capital that involve goods and/or services destined for an identified nuclear facility will be reviewed against the applicable Ex-Im Bank Nuclear Guidelines (Annex A) prior to authorization. 

V. PROJECT MONITORING

To ensure that nuclear related projects supported by Ex-Im Bank are constructed and operated in accordance with the relevant host-country and applicable international environmental and nuclear guidelines, Ex-Im Bank will seek to monitor the environmental and safety related performance of Ex-Im Bank supported nuclear projects through the term of the Ex-Im Bank financial support, particularly those aspects of projects subject to any Ex-Im Bank financing conditions pertaining to the implementation of measures to mitigate a project's environmental impact. Monitoring will be conducted through the review of information provided by the sponsor and through site visits.

Ex-Im Bank's engineers and environmental analysts who are responsible for undertaking the environmental and safety related evaluation of nuclear transactions will undertake, as required, the monitoring of the environmental and safety related aspects of nuclear transactions following their authorization. The engineer and environmental analyst assigned to a nuclear transaction serve as Ex-Im Bank's primary resource on environmental and related safety matters associated with nuclear transactions. 

Last updated: June 27, 2005