Bezen & Partners | News

Legal Briefing Regarding the Regulation on the Special Radioactive Waste Management Account, Special Decommissioning Account and Accounts Management Board




 











Key Issues




  • Special Account Revenues

  • Determination of Contribution Payments and Security

  • Special Account Expenses














Legal Briefing Regarding the Regulation on the Special Radioactive Waste Management Account, Special Decommissioning Account and Accounts Management Board




The Regulation on the Special Radioactive Waste Management Account, Special Decommissioning Account and Accounts Management Board (the “Regulation”) entered into force upon its publication in the Official Gazette on 14 February 2023.




Introduction

 



Türkiye has enacted and ratified several pieces of legislation in respect of radioactive waste management and third-party liability.



Türkiye is obviously a party to the Paris Convention on Third Party Liability in the Field of Nuclear Energy dated 29 July 1960 and its additional protocols.  However, it was not until the early 2000s that detailed national legislation was passed, such as the following:




  • On 2 September 2004, the Ministry of Energy and Natural Resources issued the Regulation on Waste Resulting from the Use of Radioactive Materials setting out the conditions for the release of such waste into the environment without causing harm to the public and the environment.

  • On 9 November 2007, the Law on the Establishment and Operation of Nuclear Power Plants and the Sale of Energy No. 5710 was adopted which regulates the legal liability for damage caused to third parties during the operation of nuclear power plants.

  • On 9 March 2013, the Regulation on Radioactive Waste Management issued by the Turkish Atomic Energy Authority entered into force which sets out the principles and procedures for the safe management of radioactive waste produced during the use of nuclear energy and ionising radiation sources.

  • On 8 March 2022, the Nuclear Regulation Law (the “Law”) was published in the Official Gazette which envisages the protection of persons, the environment and future generations from the possible harmful effects of ionising radiation while carrying out radiation-related activities.



On 12 May 2010, the Agreement between the Government of the Russian Federation and the Government of the Republic of Türkiye on Cooperation in respect of the Construction and Operation of the Akkuyu Nuclear Power Plant in the Republic of Turkey (the “Agreement”) was concluded, thereby setting a framework for the development, construction and operation of Türkiye's first ever nuclear power plant project. According to Article 12 (4) of the Agreement, “the Project Company shall be responsible for the dismantling and waste management of the NPP. In this respect, the Project Company shall make the necessary payments to the relevant funds as stipulated by applicable Turkish laws and regulations.” Article 10 of the Law finally brought context to this particular provision of the Agreement. Accordingly, any person generating radioactive waste must make contribution payments to a special radioactive waste management account and any person authorised to operate nuclear facilities, radiation facilities and radioactive waste facilities must make contribution payments to a special decommissioning account, in the respective amounts as dictated by the Law. The details regarding these payments are now set out in the Regulation.



Special Account Revenues



Persons authorised to operate nuclear power plants or other nuclear facilities must make contribution payments to a special radioactive waste management account (the “SRWMA”) and a special decommissioning account (the “SDA”). The obligation to make contribution payments to such special accounts is based primarily on electricity generation. Accordingly, the obligation commences when i.e. the nuclear power plant starts generating electricity and ends when it stops generating electricity.



Also, prior to any authorisation (i.e. any licence) being granted, these persons must provide security in the form of cash or equivalent instruments (see below) to the SRWMA.



 



Determination of Contribution Payments and Security



For nuclear power plants, the amount of contribution payments to be made to such special accounts is determined on the basis of electricity generated and the amount of security to be provided by way of cash or equivalent instruments is determined on the basis of the installed capacity of the respective facility. These determinations are made by the so-called Accounts Management Board (the “Board”).



For other facilities and nuclear activities, the amounts of contribution payments and security are determined by the Board by considering the following criteria:




  • the type of facility and activity;

  • the type of waste;

  • the amount of waste; and

  • the level of radioactivity of waste.



The following assets may be provided as security with the approval of the Board:




  • Turkish lira, convertible foreign currency or gold; and

  • An unconditional and irrevocable bank guarantee addressed to the Board and obtained from one or more banks resident in Türkiye.



The amounts of contribution payments and security are updated annually.



Special Account Expenses



All contributions can only be used as dictated by the Regulation. Accordingly:



Any payments from the SRWMA to the Turkish Energy, Nuclear and Mineral Research Agency may only be made to cover the following purposes:



a) the determination of areas for the establishment of radioactive waste disposal facilities and any related field studies;



b) the design, construction, operation, maintenance, shut down, etc. of radioactive disposal facilities; and



c) research and development activities for these purposes.



Any payments from the SDA to an authorised person may only be made to cover the following purposes:



a) decommissioning, including the costs for the disposal of radioactive waste produced during the decommissioning of nuclear power plants and other nuclear facilities; and



b) restoration of the facility site.



According to the Regulation, the following expenses may also be covered from such special accounts as determined by the Board:




  • any attendance fee to be paid to the members of the Board;

  • any remuneration payments to be made to the members of the Board;

  • any payments to be made in respect of independent auditing and consultancy services regarding the operation of the special accounts; and

  • any administrative and litigation expenses.



Conclusion



The Regulation is one of the most recent examples of ongoing efforts to regulate nuclear waste management in Türkiye. The Regulation sets out the procedures and principles for contribution payments to be made and security to be provided in such context as well as how the revenues of such contribution payments are to be used.




 



Key contacts



For more information, please contact us:












 



Aykut Bakırcı



Partner



+90 (212) 366 6805



[email protected]



 



Yeşim Bezen



Partner



+90 (212) 366 6804



[email protected]



 



Merve Çapar



Intern



+90 (212) 366 6813



[email protected]




 


TOP