NUREG-1100 Volume 34, Congressional Budget Justification Fiscal Year 2019.

NUREG-1100, Vol. 34, Congressional Budget Justification Fiscal Year 2019.

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Issue date:	02/28/2018
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SRM-COMSECY-17-0041 NUREG-1100 V34
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NUREG-1100 Volume 34, Rev. 1 CONGRESSIONAL BUDGET JUSTIFICATION FISCAL YEAR 2019

AVAILABILITY OF REFERENCE MATERIALS IN NRC PUBLICATIONS NRC Reference Material Non-NRC Reference Material As of November 1999, you may electronically access Documents available from public and special technical NUREG-series publications and other NRC records at libraries include all open literature items, such as books, NRCs Library at www.nrc.gov/reading-rm.html. Publicly journal articles, transactions, Federal Register notices, released records include, to name a few, NUREG-series Federal and State legislation, and congressional reports.

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and information notices; inspection and investigative reports; licensee event reports; and Commission papers Copies of industry codes and standards used in a and their attachments. substantive manner in the NRC regulatory process are maintained at NRC publications in the NUREG series, NRC regulations, The NRC Technical Library and Title 10, Energy, in the Code of Federal Regulations Two White Flint North may also be purchased from one of these two sources. 11545 Rockville Pike Rockville, MD 20852-2738

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Address: U.S. Nuclear Regulatory Commission The NUREG series comprises (1) technical and adminis-Office of Administration trative reports and books prepared by the staff (NUREG-XXXX) or agency contractors (NUREG/CR-XXXX), (2)

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NUREG-1100 Volume 34, Rev. 1 CONGRESSIONAL BUDGET JUSTIFICATION FISCAL YEAR 2019

TABLE OF CONTENTS CONTENTS Executive Summary ................................................................................................................... ix About the U.S. Nuclear Regulatory Commission ..................................................................... 1 Proposed Fiscal Year 2019 Appropriations Legislation .......................................................... 5 Nuclear Reactor Safety ............................................................................................................. 11 Operating Reactors ......................................................................................................... 13 New Reactors .................................................................................................................. 29 Nuclear Materials and Waste Safety ....................................................................................... 39 Fuel Facilities ............................................................................................................... 41 Nuclear Materials Users .................................................................................................. 47 Spent Fuel Storage and Transportation .......................................................................... 57 Decommissioning and Low-Level Waste ........................................................................ 63 High-Level Waste ............................................................................................................ 71 Corporate Support .................................................................................................................... 73 Integrated University Program ................................................................................................ 83 Annual Performance Plan ........................................................................................................ 85 Office of the Inspector General ............................................................................................. 107 Appendix A: Full Cost of U.S. Nuclear Regulatory Commission Programs ..................... 119 Appendix B: Budget Authority by Function ........................................................................ 121 Appendix C: Estimated Fee Recovery ................................................................................. 123 Appendix D: Summary of Reimbursable Work ................................................................... 127 Appendix E: Federal Information Technology Acquisition Reform Act Requirements .. 129 Appendix F: Summary of Planned Rulemaking Activities ................................................. 131 Appendix G: Obligations by Control Point .......................................................................... 141 Appendix H: Report on Drug Testing ................................................................................... 143 Appendix I: Glossary ............................................................................................................. 145 Appendix J: Acronym List .................................................................................................... 149 FY 2019 Congressional Budget Justification l iii

TABLE OF CONTENTS FIGURES U.S. Nuclear Regulatory Commission FY 2014-FY 2019 Budget ................................................ ix NRC Organizational Chart ............................................................................................................ 2 Anticipated U.S. Operating Commercial Nuclear Power Reactors as of October 1, 2018 .......... 14 Operating Reactors Licensing Actions ........................................................................................ 17 New Reactor Applications under Review .................................................................................... 32 Locations of Licensed Fuel Cycle Facilities ................................................................................ 42 Fuel Facilities Workload .............................................................................................................. 44 Agreement States ....................................................................................................................... 48 Nuclear Materials Users Workload ............................................................................................. 50 Licensed and Operating Independent Spent Fuel Storage Installations by State ....................... 58 Spent Fuel Storage and Transportation Workload ...................................................................... 60 Locations of NRC-Regulated Sites Undergoing Decommissioning ............................................ 64 Uranium Recovery Licensed Facility and Major Licensing Actions ............................................. 66 Uranium Mill Tailings Radiation Control Act of 1978 and Complex Materials Site ...................... 66 Research and Test Reactors and Power/Early Demonstration Reactors Undergoing Decommissioning........................................................................................................................ 67 FY 2019 Congressional Budget Justification l v

TABLE OF CONTENTS TABLES Budget Authority and Full-Time Equivalents ................................................................................. x Budget Authority by Appropriation ............................................................................................... xi Nuclear Reactor Safety ............................................................................................................... 11 Operating Reactors by Product Line ........................................................................................... 13 License Renewal and Medical Isotope Facility Review Schedule .............................................. 17 Status of Transitioning Reactors from Operating to Decommissioning....................................... 19 New Reactors by Product Line ................................................................................................... 29 New Reactor Applications under Review .................................................................................... 33 Nuclear Materials and Waste Safety ........................................................................................... 39 Fuel Facilities by Product Line .................................................................................................... 41 Nuclear Materials Users by Product Line .................................................................................... 47 Spent Fuel Storage and Transportation by Product Line ............................................................ 57 Decommissioning and Low-Level Waste by Product Line .......................................................... 63 High-Level Waste by Product Line .............................................................................................. 71 Corporate Support Budget Authority and Full-Time Equivalents ................................................ 73 Corporate Indirect and Travel by Product Line ........................................................................... 76 Integrated University Program .................................................................................................... 83 Alignment of Resources to NRC Goals ....................................................................................... 86 Supporting Business Lines and Strategic Plan Strategies ........................................................ 105 NRC OIG Budget Authority and Full-Time Equivalents ............................................................ 107 Audits Budget Authority ............................................................................................................ 107 Investigations Budget Authority ................................................................................................ 109 NRC OIG Budget Resources Linked to OIGs Strategic Goals ................................................. 113 Full Cost Budget Authority and Full-Time Equivalents .............................................................. 119 Corporate Support by Business Line ........................................................................................ 120 Budget Authority by Function .................................................................................................... 121 Crosswalk of Business Lines' Allocation to Fee Classes .......................................................... 124 Estimated Fee Recovery ........................................................................................................... 125 Summary of Reimbursable Work .............................................................................................. 127 NRC IT Table: Major IT Investments ........................................................................................ 130 Summary of Planned Rulemaking Activities ............................................................................. 131 NRC Monthly Congressional Status Report .............................................................................. 142 FY 2019 Congressional Budget Justification l vii

EXECUTIVE

SUMMARY

EXECUTIVE

SUMMARY

The U.S. Nuclear Regulatory Commissions (NRCs) fiscal year (FY) 2019 budget request is

$970.7 million, including 3,247 full-time equivalents (FTE). This request supports the NRCs safety and security mission and reflects the agencys continued commitment to improved effectiveness and efficiency. The FY 2019 request represents an overall increase of

$59.8 million, yet includes a decrease of 149 FTE when compared with the FY 2018 annualized continuing resolution (CR). This increase is a result of the resources requested for the High-Level Waste program and activities related to preparing to review advanced nuclear reactor technologies.

Consistent with Public Law (P.L.) 115-56, Continuing Appropriations Act, 2018, the annualized CR reflects the NRCs FY 2017 Enacted budget of $917.1 million, specified in P.L. 115-31, Consolidated Appropriation Act, 2017, (Act) reduced by 0.6791 percent. The terms and conditions specified in the Joint Explanatory Statement that accompanied the Act allowed for use of $23 million in prior year unobligated carryover. Comparatively, the FY 2017 Enacted budget included $5 million for advanced nuclear reactor technologies and $15 million for the Integrated University Program, but did not provide funding for Yucca Mountain licensing activities.

1,100 3,900 3,799.7 3,778.5 3,800 1,050 3,700 34.2 3,595.0 3,600 1,000 Dollars in Millions 3,500 3,396.0 FTE 950 47.7 3,400 23.0 3,396.0 1,055.9 3,247.0 3,300 900 1,015.3 1,002.1 3,200 917.1 910.9 923.0 3,100 850 3,000 800 2,900 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Enacted Enacted Enacted Enacted Annualized Request CR Amount ($M) Carryover ($M) Yucca Mountain ($M) FTE Figure 1: U.S. Nuclear Regulatory Commission FY 2014-FY 2019 Budget FY 2019 Congressional Budget Justification l ix

EXECUTIVE

SUMMARY

As shown in Figure 1, since FY 2014, the agency budget, excluding resources for Yucca Mountain licensing activities, has been reduced by 13 percent, including a reduction of 18 percent in FTE.

Budget Authority and Full-Time Equivalents (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Business Line/

Major Program $M FTE $M FTE $M FTE $M FTE Operating Reactors 364.0 1,548.9 353.8 1,593.0 375.6 1,531.0 21.8 (62.0)

New Reactors 96.1 433.3 95.2 455.0 99.1 394.0 3.9 (61.0)

Nuclear Reactor Safety $460.2 1,982.3 $449.0 2,048.0 $474.8 1,925.0 $25.8 (123.0)

Fuel Facilities 24.5 109.2 24.7 113.0 25.2 107.0 0.5 (6.0)

Nuclear Materials Users 64.4 228.5 63.5 238.0 60.6 215.0 (2.9) (23.0)

Spent Fuel Storage and Transportation 24.8 99.6 22.3 102.0 24.8 100.0 2.5 (2.0)

Decommissioning and Low-Level Waste 26.8 111.8 26.4 115.0 25.4 104.0 (1.0) (11.0)

High-Level Waste 0.9 1.3 0.0 0.0 47.7 124.0 47.7 124.0 Nuclear Materials and Waste Safety $141.3 550.6 $136.9 568.0 $183.7 650.0 $46.8 82.0 Major Program Subtotal $601.5 2,532.8 $585.9 2,616.0 $658.5 2,575.0 $72.6 (41.0)

Corporate Support 306.7 641.3 298.1 717.0 299.6 609.0 1.5 (108.0)

Integrated University Program 15.0 0.0 14.9 0.0 0.0 0.0 (14.9) 0.0 Subtotal $923.1 3,174.2 $898.9 3,333.0 $958.1 3,184.0 $59.2 (149.0)

Inspector General 12.2 61.1 12.0 63.0 12.6 63.0 0.6 0.0 Total $935.3 3,235.2 $910.9 3,396.0 $970.7 3,247.0 $59.8 (149.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

Resources requested for the Nuclear Reactor Safety Program increased overall by

$25.8 million, yet include a decrease of 123 FTE. The increase in resources in the Nuclear Reactor Safety Program is largely as a result of research activities funded through the use of authorized prior year unobligated carryover in FY 2017 and reflects a change in the fund source.

In addition, resources increase as a result of the higher cost of salaries and benefits in FY 2018.

Finally, resources for the Nuclear Reactor Safety Program include $10.3 million for the development of an infrastructure for regulatory review of advanced nuclear reactor technologies.

Resources for the Nuclear Materials and Waste Safety Program increased by $46.8 million, including 82 FTE. The Nuclear Materials and Waste Safety Program budget request includes

$47.7 million from the Nuclear Waste Fund for licensing activities related to the proposed Yucca Mountain deep geologic repository for the disposal of spent nuclear fuel and other high-level radioactive waste.

FY 2019 Congressional Budget Justification l x

EXECUTIVE

SUMMARY

Resources requested for Corporate Support constitute 31 percent of the agencys total budget and reflect an overall increase of $1.5 million, yet include a decrease of 108 FTE, when compared with the FY 2018 annualized CR.

The Office of the Inspector Generals (OIGs) component of the FY 2019 proposed budget is

$12.6 million, including 63 FTE, of which $11.5 million is for auditing and investigation activities for NRC programs and $1.1 million is for the auditing and investigation activities of the Defense Nuclear Facilities Safety Board (DNFSB).

Budget Authority by Appropriation (Dollars in Millions)

FY 2018 FY 2019 Changes from Annualized CR Request FY 2018 NRC Appropriation $M $M $M Salaries and Expenses (S&E)

Budget Authority 898.9 958.1 59.2 Offsetting Fees 790.1 805.0 14.9 Net Appropriated S&E $108.7 $153.0 $44.3 Office of the Inspector General (OIG)

Budget Authority 12.0 12.6 0.6 Offsetting Fees 10.0 10.4 0.4 Net Appropriated OIG $2.1 $2.3 $0.2 Total NRC Budget Authority 910.9 970.7 59.8 Offsetting Fees 800.1 815.4 15.3 Total Net Appropriated $110.8 $155.3 $44.5

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

In accordance with the provisions of the Omnibus Budget Reconciliation Act of 1990 (OBRA-90), as amended, the NRCs FY 2019 budget request provides for approximately 90-percent fee recovery, less amounts appropriated from the Nuclear Waste Fund, and amounts appropriated for generic homeland security activities and for waste incidental to reprocessing activities under Section 3116 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005. The FY 2019 appropriations language will also exclude from OBRA-90s fee recovery requirement amounts appropriated for OIG services for DNFSB.

The NRC will recover $815.4 million of the FY 2019 budget from fees assessed to NRC licensees. This will result in a net appropriation of $155.3 million, with $47.7 million to be derived from the Nuclear Waste Fund, which is an increase of $44.5 million in net appropriations when compared with the FY 2018 annualized CR. The increase in the net appropriation is primarily a result of the requested Yucca Mountain licensing resources, which are not fee-billable and require resources from the Nuclear Waste Fund. To increase transparency, a statement is included in the changes section of each programmatic business line chapter regarding how the budgeted resources impact fees.

FY 2019 Congressional Budget Justification l xi

EXECUTIVE

SUMMARY

Appendix A, Full Cost of U.S. Nuclear Regulatory Commission Programs, of this request provides the full cost of NRC programs.

This budget request reflects the agencys continued commitment to improving effectiveness, efficiency, and accountability, including identifying opportunities to transform agency processes and increase the use of risk information in regulatory decisionmaking. The FY 2019 budget request reflects a reduction of approximately $4 million, primarily as a result of 20 FTE in the Mission Support and Supervisors Product Line due to standardization and centralization of these functions. Additional reductions are achieved by the planned transition of financial services to a Federal shared service provider and reductions in rent as the agency reduces its footprint of office space. The budget also includes investments to support future efficiencies such as planned renovations in the regional offices to allow for additional office space reductions and efforts to maximize employee performance by applying competency modeling.

SIGNIFICANT AGENCYWIDE ACCOMPLISHMENTS IN FY 2017 The NRCs significant agencywide accomplishments include the following:

Continued to oversee the safe and secure operation of nuclear power plants and fuel cycle facilities, as well as the possession and use of radioactive materials.

Conducted hundreds of public meetings across the country, as part of our efforts to maintain regular and transparent communications with our stakeholders.

Delivered major products for each of the 19 Project Aim tasks, as we continue to pursue our ongoing commitment to efficiency, effectiveness and agility.

Finalized the NRC Strategic Plan for FY 2018-2022.

Initiated an agencywide action plan designed to build a climate of trust through strengthening our positive environment for raising concerns; promoting a culture of fairness, empowerment and respect; and establishing clear expectations and accountability for leaders.

Created a Center of Expertise (COE) within the Office of Nuclear Material Safety and Safeguards in the area of rulemaking. The COE provides for effective oversight of the rulemaking process, and ensures that rulemaking activities are accomplished in an efficient, effective, and transparent manner.

FY 2019 Congressional Budget Justification l xii

ABOUT THE U.S. NUCLEAR REGULATORY COMMISSION ABOUT THE U.S. NUCLEAR REGULATORY COMMISSION Mission To license and regulate the Nations civilian use of radioactive material to protect public health and safety, promote the common defense and security, and protect the environment.

The U.S. Nuclear Regulatory Commission (NRC) is an independent Federal agency established by Congress. It regulates commercial nuclear power plants; research, test, and training reactors; nuclear fuel cycle facilities; and radioactive materials used in medicine, academia, and industry. The agency also regulates the transport, storage, and disposal of radioactive materials and waste and the export or import of radioactive materials. The NRC regulates industries within the United States and works with agencies around the world to enhance global nuclear safety and security. The NRCs key regulatory functions include the following:

Developing regulations and guidance, including participating in consensus standards development.

Licensing and certifying the use of nuclear materials, the operation of nuclear facilities, and the decommissioning of nuclear facilities.

Inspecting and assessing licensee operations and nuclear facilities, including incident response and investigation, and taking enforcement actions when necessary.

Evaluating domestic and international operational experience and taking generic action when appropriate.

Conducting research, holding hearings, and obtaining independent insights that support sound regulatory decisionmaking.

The NRCs Commission has up to five members nominated by the President and confirmed by the Senate for 5-year terms. The President designates one member to serve as Chairman.

The Chairman is the principal executive officer and spokesperson for the Commission. As a collegial body, the Commission formulates policies and regulations governing the safety and security of nuclear reactors and materials, issues orders to licensees, and adjudicates legal matters brought before it. The Executive Director for Operations carries out the policies and decisions of the Commission and directs the activities of the program and regional offices (see Figure 2).

FY 2019 Congressional Budget Justification l 1

ABOUT THE U.S. NUCLEAR REGULATORY COMMISSION Figure 2: NRC Organizational Chart FY 2019 Congressional Budget Justification l 2

ABOUT THE U.S. NUCLEAR REGULATORY COMMISSION The NRC is headquartered in Rockville, MD. The agency has four regional offices, located in King of Prussia, PA (Region I); Atlanta, GA (Region II); Lisle, IL (Region III); and Arlington, TX (Region IV). The major program offices within the NRC include the following:

The Office of Nuclear Reactor Regulation licenses and oversees activities for existing nuclear power reactors and research and test reactors.

The Office of New Reactors licenses and oversees the design, siting, licensing, and construction of new commercial nuclear power reactors.

The Office of Nuclear Regulatory Research provides independent expertise and information for making timely regulatory judgments, anticipating potentially significant safety problems, and resolving safety issues. It helps develop technical regulations and standards and collects, analyzes, and disseminates information about the safety of commercial nuclear power plants and certain nuclear materials activities.

The Office of Nuclear Material Safety and Safeguards licenses and oversees the production of commercial nuclear fuel; uranium-recovery activities; decommissioning of nuclear facilities; and the use of radioactive materials in medical, industrial, academic, and commercial applications. It regulates safe storage, transportation, and disposal of high- and low-level radioactive waste and spent nuclear fuel. The office also works with other Federal agencies and State, Tribal, and local governments on regulatory matters.

The Office of Nuclear Security and Incident Response oversees the implementation of agency security policy for nuclear facilities and users of radioactive material and coordinates with other Federal agencies and international organizations on security issues. This office also maintains the NRCs emergency preparedness and incident response programs.

The regional offices conduct inspections and investigations (in conjunction with the Office of Investigations); take enforcement actions (in coordination with the Office of Enforcement); and maintain emergency response programs for nuclear reactors, fuel facilities, and materials licensees. In addition, the regions carry out licensing for certain materials licensees.

FY 2019 Congressional Budget Justification l 3

PROPOSED FY 2019 APPROPRIATIONS LEGISLATION PROPOSED FISCAL YEAR 2019 APPROPRIATIONS LEGISLATION The NRCs proposed appropriation legislation for Fiscal Year (FY) 2019 is as follows:

SALARIES AND EXPENSES For expenses necessary for the Commission in carrying out the purposes of the Energy Reorganization Act of 1974 and the Atomic Energy Act of 1954, $958,050,000, including official representation expenses not to exceed $25,000, to remain available until expended: Provided, That of the amount appropriated herein, $47,700,000 shall be derived from the Nuclear Waste Fund: Provided further, That of the amount appropriated herein, not more than $9,500,000 may be made available for salaries, travel, and other support costs for the Office of the Commission, to remain available until September 30, 2020: Provided further, That revenues from licensing fees, inspection services, and other services and collections estimated at $805,019,000 in fiscal year 2019 shall be retained and used for necessary salaries and expenses in this account, notwithstanding 31 U.S.C. 3302, and shall remain available until expended: Provided further, That the sum herein appropriated shall be reduced by the amount of revenues received during fiscal year 2019 so as to result in a final fiscal year 2019 appropriation estimated at not more than $153,031,000.

OFFICE OF THE INSPECTOR GENERAL For expenses necessary for the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, $12,609,000, to remain available until September 30, 2020:

Provided, That revenues from licensing fees, inspection services, and other services and collections estimated at $10,355,000 in fiscal year 2019 shall be retained and be available until September 30, 2020, for necessary salaries and expenses in this account, notwithstanding section 3302 of title 31, United States Code: Provided further, That the sum herein appropriated shall be reduced by the amount of revenues received during fiscal year 2019 so as to result in a final fiscal year 2019 appropriation estimated at not more than $2,254,000: Provided further, That of the amounts appropriated under this heading, $1,103,000 shall be for Inspector General services for the Defense Nuclear Facilities Safety Board, which shall not be available from fee revenues.

ANALYSIS OF PROPOSED FY 2019 APPROPRIATIONS LEGISLATION The analysis of the NRCs proposed appropriations legislation for FY 2019 is as follows:

SALARIES AND EXPENSES

1. FOR EXPENSES NECESSARY FOR THE COMMISSION IN CARRYING OUT THE PURPOSES OF THE ENERGY REORGANIZATION ACT OF 1974 AND THE ATOMIC ENERGY ACT OF 1954:

The NRC was established by the Energy Reorganization Act of 1974, as amended (42 United States Code (USC) 5841). This act abolished the Atomic Energy Commission (AEC) and transferred to the NRC all of the AECs licensing and related regulatory functions. These functions included those of the Atomic Safety and Licensing Board Panel and the Advisory Committee on Reactor Safeguards; responsibilities for licensing and regulating nuclear facilities FY 2019 Congressional Budget Justification l 5

PROPOSED FY 2019 APPROPRIATIONS LEGISLATION and materials; and conducting research for the purpose of confirmatory assessment related to licensing, regulation, and other activities, including research related to nuclear materials safety and regulation under the provisions of the Atomic Energy Act of 1954, as amended (42 USC 2011 et seq.).

2. INCLUDING OFFICIAL REPRESENTATION EXPENSES:

47 Comp. Gen. 657, 43 Comp. Gen. 305 This language is required because of the established rule restricting an agency from charging appropriations with the cost of official representation unless the appropriations involved are specifically available for such purpose. Congress has appropriated funds for official representation expenses to the NRC and its predecessor, the AEC, each year since FY 1950.

3. TO REMAIN AVAILABLE UNTIL EXPENDED:

Title 31 USC 1301 provides that no regular, annual appropriation shall be construed to be permanent or available continuously unless the appropriation expressly provides that it is available after the fiscal year covered by the law in which it appears (or is for specific uses not applicable here).

4. SHALL BE DERIVED FROM THE NUCLEAR WASTE FUND:

Title 42 USC 10131(b)(4) provides for the establishment of a Nuclear Waste Fund to ensure that the costs of carrying out activities relating to the disposal of high-level radioactive waste and spent nuclear fuel will be borne by the persons responsible for generating such waste and spent fuel.

Title 42 USC 10134 specifically requires the NRC to consider an application for a repository for the disposal of high-level radioactive waste and spent nuclear fuel and sets forth certain licensing procedures. Title 42 USC 10133 also assigns review responsibilities to the NRC in the steps leading to submission of the license application. Thus, the Nuclear Waste Policy Act of 1982, as amended, establishes the NRCs responsibility throughout the repository siting process, culminating in the requirement for NRC licensing as a prerequisite to construction and operation of the repository.

Title 42 USC 10222(d) specifies that expenditures from the Nuclear Waste Fund can be used for purposes of radioactive waste disposal activities, including identification, development, licensing, construction, operation, decommissioning, and post-decommissioning maintenance and monitoring of any repository constructed under the Nuclear Waste Policy Act of 1982, and for administrative costs of the high-level radioactive waste disposal program.

5. REVENUES FROM LICENSING FEES, INSPECTION SERVICES, AND OTHER SERVICES AND COLLECTIONS SHALL BE RETAINED AND USED FOR NECESSARY SALARIES AND EXPENSES IN THIS ACCOUNT, NOTWITHSTANDING 31 U.S.C. 3302, AND SHALL REMAIN AVAILABLE UNTIL EXPENDED:

Under Title V of the Independent Offices Appropriation Act, 1952, Public Law (PL)82-137, the NRC is authorized to collect user fees from any person who receives a service or thing of value FY 2019 Congressional Budget Justification l 6

PROPOSED FY 2019 APPROPRIATIONS LEGISLATION from the Commission. Pursuant to 42 USC 2214 (section 6101 of the Omnibus Budget Reconciliation Act of 1990 (OBRA-90)), the NRC is required to assess and collect user fees from any person who receives a service or thing of value from the Commission and annual charges from NRC licensees and certificate holders, with the exception of the holders of any license for a federally owned research reactor used primarily for educational training and academic research purposes. In accordance with amendments to 42 USC 2214, enacted in the Energy Policy Act of 2005, and consistent with this appropriations request, the aggregate annual amount of collected fees shall approximate 90 percent of the Commissions budget authority, less amounts appropriated to the Commission from the Nuclear Waste Fund, amounts appropriated to the Commission to implement Section 3116 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005, PL 108-375, and amounts appropriated to the Commission for generic homeland security activities.

Section 3116 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 assigned new responsibilities to the NRC for waste determinations and monitoring of waste disposal actions for material stored at the U.S. Department of Energy sites in South Carolina and Idaho. Section 3116(b)(4) requires that, beginning with the FY 2006 budget, the Commission include in its budget justification materials submitted to Congress the amounts required, not offset by revenues, for performance of its responsibilities under Section 3116. The

$1,303,000 requested to implement Section 3116 is excluded from OBRA-90s fee recovery requirement.

Section 637 of the Energy Policy Act of 2005, PL 109-58, modified the NRCs fee legislation in 42 USC 2214 to exclude the amounts appropriated to the Commission for homeland security activities from OBRA-90s fee recovery requirement, except for reimbursable costs of fingerprinting and background checks and the costs of conducting security inspections. The

$14,582,000 requested for generic homeland security activities is thus excluded from OBRA-90s fee recovery requirement.

The aggregate amount of license fees and annual charges to be collected for FY 2019 approximates 90 percent of the Commissions budget authority, less the amount requested to be derived from the Nuclear Waste Fund, the amount requested to implement Section 3116 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005, and the amount requested for generic homeland security activities pursuant to Section 637 of the Energy Policy Act of 2005.

Title 31 USC 3302 requires the NRC to deposit all revenues collected to miscellaneous receipts of the Treasury unless specifically authorized by law to retain and use such revenues.

6. THE SUM HEREIN APPROPRIATED SHALL BE REDUCED BY THE AMOUNT OF REVENUES RECEIVED:

Pursuant to 42 USC 2214, the NRC is required to assess and collect user fees from any person who receives a service or thing of value from the Commission and annual charges from NRC licensees and certificate holders, with the exception of the holders of any license for a federally owned research reactor used primarily for educational training and academic research purposes. In accordance with amendments to 42 USC 2214, enacted in the Energy Policy Act of 2005, and consistent with this appropriations request, the aggregate annual amount of collected fees shall approximate 90 percent of the Commissions budget authority, less amounts appropriated to the Commission from the Nuclear Waste Fund, amounts appropriated to the Commission to implement Section 3116 of the Ronald W. Reagan National Defense FY 2019 Congressional Budget Justification l 7

PROPOSED FY 2019 APPROPRIATIONS LEGISLATION Authorization Act for Fiscal Year 2005, and amounts appropriated to the Commission for generic homeland security activities.

OFFICE OF THE INSPECTOR GENERAL

7. FOR EXPENSES NECESSARY FOR THE OFFICE OF INSPECTOR GENERAL IN CARRYING OUT THE PROVISIONS OF THE INSPECTOR GENERAL ACT OF 1978:

PL 100-504 amended the Inspector General Act of 1978, PL 95-452, 5 USC app., to establish an Office of the Inspector General (OIG) in the NRC effective in April 1989, and to require the establishment of a separate appropriation account to fund the OIG.

8. TO REMAIN AVAILABLE UNTIL SEPTEMBER 30, 2020:

In order for an appropriation to remain available for 2 fiscal years, 31 USC 1301 requires that the appropriation expressly provide that it is available after the fiscal year covered by the law in which it appears.

9. REVENUES FROM LICENSING FEES, INSPECTION SERVICES, AND OTHER SERVICES AND COLLECTIONS SHALL BE RETAINED AND BE AVAILABLE UNTIL SEPTEMBER 30, 2020, FOR NECESSARY SALARIES AND EXPENSES IN THIS ACCOUNT, NOTWITHSTANDING SECTION 3302 OF TITLE 31, UNITED STATES CODE:

Under 31 USC 9701, the NRC is authorized to collect user fees from any person who receives a service or thing of value from the Commission. Pursuant to 42 USC 2214, the NRC is required to assess and collect user fees from any person who receives a service or thing of value from the Commission and annual charges from NRC licensees and certificate holders, with the exception of the holders of any license for a federally owned research reactor used primarily for educational training and academic research purposes. In accordance with amendments to 42 USC 2214, enacted in the Energy Policy Act of 2005, and consistent with this appropriations request, the aggregate annual amount of collected fees shall approximate 90 percent of the Commissions budget authority, less amounts appropriated to the Commission from the Nuclear Waste Fund, amounts appropriated to the Commission to implement Section 3116 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005, and amounts appropriated to the Commission for generic homeland security activities.

Title 31 USC 3302 requires the NRC to deposit all revenues collected to miscellaneous receipts of the Treasury unless specifically authorized by law to retain and use such revenue.

10. THE SUM HEREIN APPROPRIATED SHALL BE REDUCED BY THE AMOUNT OF REVENUES RECEIVED:

Pursuant to 42 USC 2214, the NRC is required to assess and collect user fees from any person who receives a service or thing of value from the Commission and annual charges from NRC licensees and certificate holders, with the exception of the holders of any license for a federally owned research reactor used primarily for educational training and academic research purposes. In accordance with amendments to 42 USC 2214, enacted in the Energy Policy Act of 2005, and consistent with this appropriations request, the aggregate annual amount of collected fees shall approximate 90 percent of the Commissions budget authority, less amounts appropriated to the Commission from the Nuclear Waste Fund, amounts appropriated to the FY 2019 Congressional Budget Justification l 8

PROPOSED FY 2019 APPROPRIATIONS LEGISLATION Commission to implement Section 3116 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005, and amounts appropriated to the Commission for generic homeland security activities.

11. AMOUNTS APPROPRIATED FOR INSPECTOR GENERAL SERVICES FOR THE DEFENSE NUCLEAR FACILITIES SAFETY BOARD, WHICH SHALL NOT BE AVAILABLE FROM FEE REVENUES:

Pursuant to 42 USC 2214, the NRC is required to assess and collect user fees from any person who receives a service or thing of value from the Commission and annual charges from NRC licensees and certificate holders, with the exception of the holders of any license for a federally owned research reactor used primarily for educational training and academic research purposes. In accordance with amendments to 42 USC 2214, enacted in the Energy Policy Act of 2005, and consistent with this appropriations request, the aggregate annual amount of collected fees shall approximate 90 percent of the Commissions budget authority, less amounts appropriated to the Commission from the Nuclear Waste Fund, amounts appropriated to the Commission to implement Section 3116 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005, and amounts appropriated to the Commission for generic homeland security activities. This proposed statutory language makes clear that the

$1,103,000 requested to provide Inspector General Services for the Defense Nuclear Facilities Safety Board is excluded from OBRA-90s fee recovery requirement in the same manner as amounts appropriated to the Commission from the Nuclear Waste Fund, amounts appropriated to the Commission to implement Section 3116 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005, and amounts appropriated to the Commission for generic homeland security activities. The Consolidated Appropriations Act, 2014 (PL 113-76) and the Consolidated and Further Continuing Appropriations Act, 2015 (PL 113-235) authorize the NRCs Inspector General to exercise the same authorities with respect to the Defense Nuclear Facilities Safety Board, as determined by the NRCs Inspector General, as the Inspector General exercises under the Inspector General Act of 1978 (5 USC App.) with respect to the NRC.

FY 2019 Congressional Budget Justification l 9

NUCLEAR REACTOR SAFETY NUCLEAR REACTOR SAFETY Nuclear Reactor Safety (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Business Line $M FTE $M FTE $M FTE $M FTE Operating Reactors 364.0 1,548.9 353.8 1,593.0 375.6 1,531.0 21.8 (62.0)

New Reactors 96.1 433.3 95.2 455.0 99.1 394.0 3.9 (61.0)

Total $460.2 1,982.3 $449.0 2,048.0 $474.8 1,925.0 $25.8 (123.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

The NRCs Nuclear Reactor Safety Program encompasses licensing and overseeing civilian nuclear power, research and test reactors, and medical isotope production facilities in a manner that adequately protects public health and safety. This program also provides reasonable assurance of the security of facilities and protection against radiological sabotage. This program contributes to the NRCs safety and security strategic goals through the activities of the Operating Reactors and New Reactors Business Lines that regulate existing and new nuclear reactors to ensure their safe and secure operation.

Overall resources requested in the fiscal year (FY) 2019 budget for the Nuclear Reactor Safety Program are $474.8 million, including 1,925 full-time equivalents (FTE). This funding level represents an overall funding increase of $25.8 million, including a decrease of 123 FTE, when compared with the FY 2018 Annualized Continuing Resolution. The increase in the Operating Reactors Business Line is largely a result of research activities funded through the use of authorized prior year unobligated carryover in FY 2017 and reflects a change in the fund source.

In addition, resources increase as a result of the increase in salaries and benefits in FY 2018.

This budget includes $10.3 million for the development of a regulatory infrastructure for advanced nuclear reactor technologies.

The budget request reflects ongoing work on the agency reform strategy related to the merger of the Office of Nuclear Reactor Regulation and the Office of New Reactors.

FY 2019 Congressional Budget Justification l 11

OPERATING REACTORS OPERATING REACTORS Operating Reactors by Product Line (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Product Line $M FTE $M FTE $M FTE $M FTE Event Response 13.5 38.2 14.1 40.0 18.0 48.0 3.9 8.0 Generic Homeland Security 1.5 8.6 1.7 9.0 1.6 8.0 (0.1) (1.0)

International Activities 3.3 18.0 3.1 18.0 3.6 19.0 0.5 1.0 Licensing 72.7 386.2 80.4 392.0 82.6 376.0 2.2 (16.0)

Oversight 118.7 536.2 114.7 562.0 114.2 534.0 (0.5) (28.0)

Research 57.6 127.9 43.0 124.0 57.5 133.0 14.5 9.0 Rulemaking 9.7 50.9 9.9 51.0 9.6 47.0 (0.3) (4.0)

Mission Support and Supervisors 65.5 359.5 65.6 371.0 65.2 340.0 (0.4) (31.0)

Training 8.9 23.4 7.9 26.0 8.9 26.0 1.0 0.0 Travel 12.6 0.0 13.5 0.0 14.3 0.0 0.8 0.0 Total $364.0 1,548.9 $353.8 1,593.0 $375.6 1,531.0 $21.8 (62.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

The Operating Reactors Business Line encompasses the regulation of 991 operating civilian nuclear power reactors and 31 research and test reactors in a manner that provides for adequate protection of public health and safety and the environment and for reasonable assurance of security.

The NRC establishes regulatory requirements for the design, construction, operation, and security of nuclear power plants, research and test reactors, and other nonpower production and utilization facilities (e.g., medical isotope production facilities), in accordance with the provisions of the Atomic Energy Act of 1954, as amended. Through the Operating Reactors Business Line activities, the NRC implements programs to meet its Safety and Security strategic goals in protecting both the public and workers from the radiation hazards of nuclear reactors.

To ensure that plants and facilities are operating safely, the NRC licenses the plants to operate and the personnel who operate the plants and facilities and establishes technical specifications for the operation of each plant and facility. The NRC also supports nuclear safety through rulemaking and research, enforcement, and international activities. The NRC provides continuing oversight of civilian nuclear reactors and verification of operator adherence to the NRCs rules and regulations. The NRC has established requirements to bolster the security of 1 The shutdown of Pilgrim Nuclear Power Station, is not included because it is estimated to shut down on May 1, 2019, and the shutdown of Three Mile Island Nuclear Station, Unit 1 is not included because it is estimated to shut down on September 30, 2019.

FY 2019 Congressional Budget Justification l 13

OPERATING REACTORS the Nations nuclear facilities. Nuclear power plants must be able to defend successfully against a set of hypothetical threats that the agency refers to as the design-basis threat. These hypothetical threats challenge a plants physical security, personnel security, and cybersecurity.

The agency continuously evaluates this set of hypothetical threats against real-world intelligence to ensure safety and security.

Figure 3: Anticipated U.S. Operating Commercial Nuclear Power Reactors as of October 1, 2018 FY 2019 Congressional Budget Justification l 14

OPERATING REACTORS CHANGES FROM FY 2018 ANNUALIZED CONTINUING RESOLUTION The increase in resources is largely a result of research activities funded through the use of authorized prior year unobligated carryover in FY 2017 and reflects a change in the fund source.

In addition, resources increase to support the following activities: (1) potassium iodide replenishment for nine States; (2) development of the accident-tolerant fuel (ATF) licensing process, and ATF confirmatory research and support; (3) one new subsequent license renewal (SLR) application (Surry) and the continuing review of two SLR applications (Peach Bottom and an unnamed plantproprietary letter received); (4) increased risk-informed licensing activities and license amendment requests, work related to the risk-informed steering committee, and knowledge management and training to support increasing the staffs capabilities to use risk information in decisionmaking,; (5) research activities on safety and security of digital systems, materials degradation, cable aging, and concrete degradation; (6) increased workload to consolidate High-Performance Computing services and migrate to the cloud; and (7) increased workload to enhance the Replacement Reactor Program System (R-RPS) to support New Reactor inspection/licensing and regulatory changes and functionality currently provided by various New Reactor systems.

These increases are partially offset by decreases resulting from (1) a reduction in Fukushima Near-Term Task Force (NTTF) Tier 1 work related to the Mitigating Strategies Order, reevaluations of flooding and seismic hazards, and the Hardened Vents Order, as well as the completion of Tier 2 and 3 work; (2) a reduction in license renewal inspections; (3) a reduction in force-on-force inspections as a result of plants in decommissioning; (4) the closure of the Fort Calhoun Station; (5) the rebaselining of agency resources; and (6) a reduced workload to implement the R-RPS and maintain Legacy RPS (which will be decommissioned in FY 2018).

Although the NRC reduced its budget request as indicated, those reductions only partially offset the increase associated with the increase in salaries and benefits in FY 2018.

Generally, resources budgeted in the Licensing and Oversight Product Lines impact fees for service. All other resources impact annual fees.

MAJOR ACTIVITIES The major activities within the Operating Reactors Business Line include the following:

Ensure that licensed operating nuclear power reactors operate safely and securely and in accordance with the NRCs rules, regulations, and license requirements. The Reactor Oversight Process uses both NRC inspection findings and performance indicators from licensees to assess the safety performance of each plant within a regulatory framework of seven cornerstones of safety and security.

Conduct license renewal reviews in accordance with published schedules, including completing the review of the initial license renewal for one unit, initiating the review of one SLR application, and continuing the review of two SLR applications.

Support the continued implementation of the Tier 1 lessons learned from the Fukushima Dai-ichi Nuclear Power Plant accident in Japan. These resources will support the oversight associated with licensees implementation of the Mitigation of Beyond-Design-Basis Events rule and continued implementation of the severe accident capable hardened vents order, as well as review of licensee responses to the requests for information associated with seismic and flooding hazard reevaluations.

FY 2019 Congressional Budget Justification l 15

OPERATING REACTORS Complete approximately 700 licensing actions, including license amendment requests related to risk-informed initiatives such as technical specifications, implementing Title 10 of the Code of Federal Regulations (10 CFR) 50.69, Risk-Informed Categorization and Treatment of Structures, Systems and Components for Nuclear Power Reactors, digital instrumentation and controls, and power uprates.

Perform knowledge management and training activities to increase the staffs capabilities to use risk-informed decisionmaking, including the development of competency-based development programs.

Perform project management activities and ensure that operators are qualified and licensed to perform their duties for the 99 power reactors and 31 licensed operating research and test reactors.

Streamline the license renewal process for certain classes of nonpower production and utilization facilities.

Conduct reviews for two proposed medical isotope (molybdenum-99) production facilities, including two operating license application reviews (Northwest Medical Isotopes (NWMI) and SHINE) and the oversight of the construction of those two facilities. Conduct a third application review for a facility to be installed at the University of Missouri-Columbia (MURR).

Conduct preapplication activities for two high-enriched uranium to low-enriched uranium fuel conversion reviews at research reactors.

The Rulemaking Center of Expertise will conduct rulemaking activities in accordance with published schedules, including developing the draft final rule for the decommissioning rulemaking. Also continue the review and processing of petitions for rulemaking.

Complete approximately 300 other licensing tasks, including licensing-basis reviews, license renewal commitment reviews, and quality assurance and emergency plan reviews. Continue developing licensing infrastructure for the future application of ATF.

Support cybersecurity program implementation, oversight, and program and policy issues, as needed.

Provide potassium iodide replenishment to nine States.

Conduct research on topics such as seismic and structural integrity; fire safety; PRA, including human reliability; digital instrumentation and controls and electrical research; materials performance; probabilistic assessment of reactor component integrity; aging management of operating reactors; fuel performance; environmental transport; natural phenomena; and human factors, as well as the development and maintenance of analytical tools that support radiation protection and health studies and risk, severe accident, consequence, and thermal-hydraulic assessments.

Participate in consensus codes and standards development, assessment of operating experience, and management of the regulatory guide and generic issues programs.

Satisfy international treaty and convention obligations, as well as statutory mandates.

This includes serving as the U.S. lead for implementing the Convention on Nuclear Safety, leading and contributing to multilateral efforts on key nuclear safety and security issues, and ensuring appropriate representation at U.S.-led interagency initiatives.

Participate in international nuclear safety peer review missions (e.g., Integrated Regulatory Review Service); exchange information (including regulatory best practices) with established regulatory counterparts bilaterally and multilaterally; and participate in, or provide leadership of, international nuclear safety research activities.

FY 2019 Congressional Budget Justification l 16

OPERATING REACTORS 1200 1000 967 Licensing Actions 837 792 800 700 700 600 400 200 0

2015 2016 2017 2018 2019 Completed Licensing Actions* Projected Licensing Actions

• As limited by the number of licensing action requests submitted or accepted the previous fiscal year.

Figure 4: Operating Reactors Licensing Actions License Renewal and Medical Isotope Facility Review Schedules1 Project FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 License Renewal New Waterford River Bend Clinton Comanche Applications Perry Peak 1&2 Ongoing Indian Point Indian Point Indian Point4 Seabrook3,5 Complex Diablo Canyon2 Diablo Diablo Canyon2 Reviews (due South Texas Canyon2 Seabrook5 to hearings or Seabrook South Texas3 technical Davis Besse3 Seabrook issues) Grand Gulf Grand Gulf3 Ongoing Non- LaSalle LaSalle3 River Bend River Bend3 Perry3 complex Fermi 2 Waterford Waterford3 Waterford3 Clinton Reviews (i.e., Byron3 Fermi 23 no hearings or Braidwood3 technical issues)

Subsequent License Renewal New Peach Bottom Surry North Anna Applications Ongoing Peach Surry Surry3 North Non- Bottom Peach Anna3 complex Unnamed Bottom3 Reviews Plant3,6 (i.e., no hearing)

FY 2019 Congressional Budget Justification l 17

OPERATING REACTORS Project FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Medical Isotopes Facilities New MURR/General SHINE OL Oregon State Unnamed Applications Atomics NWMI OL Amendment Reactor Amendment, MURR (associated Amendment Part 1 Amendment with NWMI) (associated (associated with with NWMI)

NWMI)

MURR/General Atomics Amendment, Part 2 Ongoing NWMI CP NWMI CP3 MURR/General SHINE OL SHINE OL3 Unnamed Reviews SHINE CP3 Atomics NWMI OL NWMI OL3 Reactor Amendment, MURR Oregon State Amendment Part 13 Amendment Amendment (associated (associated (associated with NWMI)3 with NWMI)3 with NWMI)3 MURR/Gener MURR/Gener al Atomics al Atomics Amendment, Amendment, Part 23 Part 23 1Projected years (FY 2019-2022) license renewal and nonpower production and utilization facility applications is based on information received from applicant letters of intent or responses to NRC-issued regulatory information summaries.

2In July 2016, the NRC suspended the license renewal review for Diablo Canyon at the applicants request. No review work is underway and no budgeted resources are estimated during these years; however, until the application is withdrawn by the applicant, it remains a docketed application.

3The review has been or is expected to be completed in the FY shown.

4On March 13, 2017, the Atomic Safety and Licensing Board dismissed all remaining Indian Point contentions and terminated the adjudicatory proceeding. The safety and environmental renewal application reviews will continue in FY 2018.

5Resolve technical issues related to alkali silica reaction.

6A proprietary letter was received on May 17, 2017. Work is expected to begin in FY 2018.

Note: This schedule is subject to change.

Acronyms CPconstruction permit MURRUniversity of Missouri-Columbia Research Reactor NWMINorthwest Medical Isotopes, LLC OLoperating license SHINESHINE Medical Technologies, Inc.

FY 2019 Congressional Budget Justification l 18

OPERATING REACTORS Status of Transitioning Reactors from Operating to Decommissioning Site FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Site Is with Site Is with Shut Down in Decommissioning Decommissioning October 2016 Transitioning Site Transfer Group in Group in Ft. Calhoun (FY 2017)

Year Is Complete Decommissioning Decommissioning Transitioning and LLW Business and LLW Business Year Line Line Expected to Shut Down May 2019 Site Transfer Is Pilgrim Operating Operating Transitioning Year (FY 2019) Complete Transitioning Year Expected to Shut Down Oyster Creek Operating Operating Operating December 2019 Transitioning Year (FY 2020)

Transitioning Year Expected to Shut Down Indian Point 2 Operating Operating Operating April 2020 Transitioning Year (FY 2020)

Transitioning Year Expected to Shut Down Indian Point 3 Operating Operating Operating Operating April 2021 (FY 2021)

Transitioning Year Expected to Shut Down September Three Mile Site Transfer Is Operating Operating 2019 Transitioning Year Island Complete (FY 2019)

Transitioning Year FY 2019 Congressional Budget Justification l 19

OPERATING REACTORS SIGNIFICANT ACCOMPLISHMENTS IN FY 2017 The significant accomplishments within the Operating Reactors Business Line include the following:

Completed evaluation of security baseline inspections and recommendations for enhancing efficiency of Force-on-Force exercise.

Developed regulatory basis for, Regulatory Improvements for Power Reactors Transitioning to Decommissioning, rulemaking.

Submitted to the Commission SECY-16-0142, Draft Final RuleMitigation of Beyond-Design-Basis Events (MBDBEs), dated December 15, 2016. The MBDBE rule makes generically applicable requirements previously imposed by order for the mitigation of beyond-design-basis external events and for remotely monitoring the spent fuel pool wide-range level, includes provisions to have an integrated response capability, and addresses six petitions for rulemaking. The rule represents the culmination of the staffs post-Fukushima efforts.

Completed NUREG-1021, Revision 11, Operator Licensing Examination Standards for Power Reactors, issued February 2017. This revision applies to all initial licensed operator examinations administered after August 15, 2017. The revision will significantly enhance the license operator examination process and help to ensure consistent program implementation across the agency.

Issued a closeout letter to Exelon to acknowledge that Clinton has completed actions associated with the implementation of the Fukushima Dai-ichi accident lessons learned.

The letter documents the licensees responses to the post-Fukushima actions and NRC assessments of those responses. This is the first closeout letter the NRC has issued.

Processed 24 escalated enforcement actions with eight of the escalated actions supported through an investigation. Issued two separate confirmatory orders, one to Edwin I. Hatch Nuclear Plant and one to Watts Bar Nuclear Plant.

Leveraged international cooperation through computer code development and maintenance programs, including thermal-hydraulics code applications and maintenance, cooperative severe accident research, and the radiation protection computer code and maintenance program.

Implemented the tracking, reporting, and coordination of research projects.

Provided and conducted oversight response activities for Hurricanes Harvey, Irma, and Maria during August and September 2017.

Implemented the licensing module of the Replacement Reactor Programs System, which facilitates a common understanding of the schedule and resource requirements and status of the various licensing products in the Operating Reactor Business Line. The new system will also capture additional data that will allow the NRC to identify opportunities to increase efficiency and to resolve issues before they impact the reviews.

Led and supported U.S. Government delegations in international meetings addressing the Convention on Nuclear Safety, the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management, and the Convention on the Physical Protection of Nuclear Material, and served on multiple International Atomic Energy Agency regulatory peer review missions and guidance committees.

Developed the U.S. Country Report and provided significant leadership that contributed to the 7th Review Meeting for the Convention on Nuclear Safety.

FY 2019 Congressional Budget Justification l 20

OPERATING REACTORS OTHER INDICATORS LICENSING Number of License Renewal Applications (Units) on which Final Decision Has Been Made (OR-01)*

Fiscal Year Target Actual Comment FY 2014 0 0

• • The FY 2015 Congressional Budget Justification target was shown as 9 in error.

• • • Byron Units 1 and 2 and Braidwood Units 1 and 2 rescheduled for FY 2015 7** 5*** FY 2016.

Diablo Canyon was expected to be completed in FY 2016, but was delayed, and the application has now been suspended. Other units, such as Fermi 2, Grand Gulf, and Seabrook, were expected to be completed in FY 2016 but were all delayed as a result of technical FY 2016 7 5 issues.

The target was not met as result of the licensees decision to FY 2017 7 6 discontinue pursuit of the Diablo Canyon license renewal.

FY 2018 1 FY 2019 1

• The targets are based on the scheduled completion of the license renewal applications under review and the schedule of future applications.

Number of Licensing Actions Completed* (OR-02)

Fiscal Year Target Actual Comment FY 2014 900 607 737 license amendment requests were submitted in FY 2014.

FY 2015 900 792 736 license amendment requests were submitted in FY 2015.

FY 2016 900 837 754 license amendment requests were submitted in FY 2016.

FY 2017 900 967 905 license amendment requests were submitted in FY 2017.

FY 2018 700 700 licensing actions are projected for submission.

FY 2019 700

• As limited by the number of licensing action requests submitted or accepted the previous FY.

Percentage of Licensing Actions Completed in 1 Year or Less* (OR-03)

Fiscal Year Target Actual Comment FY 2014 95 87 Because of the redirection of resources to process the Fukushima-related licensing actions and other licensing tasks, which have completion schedules extending into 2017, the indicator target was not met. The NRC has developed a staffing strategy to identify resources and critical skills needed to address the gap between the FY 2015 95 88 budgeted number of staff and those who are currently on board.

FY 2016 95 95 FY 2017 95 96 FY 2018 95 FY 2019 95

• Excludes improved Standard Technical Specification conversions, licensing actions associated with the Fukushima NTTF recommendations (beginning in FY 2014), and power uprates. Also excludes license amendment requests that are unusually complex.

FY 2019 Congressional Budget Justification l 21

OPERATING REACTORS Percentage of Licensing Actions Completed in 2 Years or Less* (OR-04)

Fiscal Year Target Actual Comment FY 2014 100 99 Because of the redirection of resources to process the Fukushima-related licensing actions and other licensing tasks, which both also have completion schedules extending into 2017, the indicator target was not met. The NRC has developed a staffing strategy to identify resources and critical skills needed to address the gap between FY 2015 100 99 the budgeted number of staff and those who are currently on board.

FY 2016 100 100 This target was not met as a result of unusually complex license amendments and the need to resolve technical adequacy of FY 2017 100 99 applications to risk-inform technical specifications.

FY 2018 100 FY 2019 100

• Excludes improved Standard Technical Specification conversions, licensing actions associated with the Fukushima NTTF recommendations (beginning in FY 2014), and power uprates. Also excludes license amendment requests that are unusually complex.

Percentage Increase in the 12-Month Average Percent of Licensing Actions Less Than 1 Year Old for FY 2017 Compared with the Percent of Licensing Actions Less Than 1 Year Old on September 30, 2016*

(OR-05)

Fiscal Year Target Actual Comment FY 2014 FY 2015 New indicator in 2016 FY 2016 2 7 The target does not apply because the inventory is greater than FY 2017 2 N/A 93 percent.

Indicator was for tracking progress in reducing licensing action FY 2018 *Discontinued backlogs in previous FYs.

FY 2019 N/A

• This target will not apply if the inventory of licensing actions less than 1 year old on September 30 is 93 percent or greater.

Number of Other Licensing Tasks Completed* (OR-06)

Fiscal Year Target Actual Comment FY 2014 500 765 577 other licensing tasks were submitted in FY 2014.

FY 2015 500 461 599 other licensing tasks were submitted in FY 2015.

FY 2016 500 641 597 other licensing tasks were submitted in FY 2016.

FY 2017 500 644 655 other licensing tasks were submitted in FY 2016.

The definition of other licensing tasks was revised during FY 2016 to more accurately reflect the Congressional Budget Justification definition and remove actions that are staff initiated and keep actions that are submitted by the licensee. This revision decreased the number of actions counted as other licensing tasks for FY 2017. The target for FY 2018 more accurately reflects expected other licensing tasks FY 2018 300 completed under this new definition.

FY 2019 300

• As limited by the number of other licensing task requests submitted or accepted the previous FY.

FY 2019 Congressional Budget Justification l 22

OPERATING REACTORS Percentage of Other Licensing Tasks Completed in 1 Year or Less* (OR-07)

Fiscal Year Target Actual Comment FY 2014 90 87 Because of the redirection of resources to process the Fukushima-related licensing actions and other licensing tasks, which both also have completion schedules extending into 2017, the indicator target was not met. The NRC has developed a staffing strategy to identify resources and critical skills needed to address the gap between FY 2015 90 87 the budgeted number of staff and those who are currently on board.

FY 2016 90 90 FY 2017 90 100 FY 2018 90 FY 2019 90

• Excludes multiplant actions, licensing tasks associated with the Fukushima NTTF recommendations (beginning in FY 2014), and other unusually complex licensing tasks.

Percentage of Other Licensing Tasks Completed in 2 Years or Less* (OR-08)

Fiscal Year Target Actual Comment FY 2014 100 99 Because of the redirection of resources to process the Fukushima-related licensing actions and other licensing tasks, which both also have completion schedules extending into 2017, the indicator target was not met. The NRC has developed a staffing strategy to identify resources and critical skills needed to address the gap between FY 2015 100 97 the budgeted number of staff and those who are currently on board.

FY 2016 100 99 The comment above also applies to FY 2016 FY 2017 100 100 FY 2018 100 FY 2019 100

• Excludes multiplant actions, licensing tasks associated with the Fukushima NTTF recommendations (beginning in FY 2014), and other unusually complex licensing tasks.

Percentage Increase in the 12-Month Average Percent of Other Licensing Tasks Less Than 1 Year Old for FY 2017 Compared with the Percent of Other Licensing Tasks Less Than 1 Year Old on September 30, 2016* (OR-09)

Fiscal Year Target Actual Comment FY 2014 FY 2015 New indicator in 2016 FY 2016 2 3 The target does not apply because the inventory is greater than FY 2017 2 N/A 93 percent.

FY 2018 Discontinued The indicator was for FY 2016 and FY 2017 only.

FY 2019 N/A

• This target will not apply if the inventory of licensing actions less than 1 year old on September 30 is 93 percent or greater.

FY 2019 Congressional Budget Justification l 23

OPERATING REACTORS Number of Initial Operator Licensing Examination Sessions* (OR-10)

Fiscal Year Target Actual Comment FY 2014 55 55 FY 2015 53 42 42 requests for examination sessions were received in FY 2015.

FY 2016 46 40 40 requests for examination sessions were received in FY 2016.

FY 2017 47 41 41 requests for examination sessions were received in FY 2017.

FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 N/A

• Targets are based upon the nuclear industrys projected demand for initial operator licensing examination sessions.

Number of Generic Fundamentals Examination Sessions Administered (OR-11)

Fiscal Year Target Actual Comment FY 2014 4 4 FY 2015 4 4 FY 2016 4 4 FY 2017 2 3 3 requests for examination sessions were received in FY 2017.

FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 N/A OVERSIGHT Number of Plants for which All Required Baseline Inspection Procedures Are Completed* (OR-12)

Fiscal Year Target Actual Comment FY 2014 100 100 A fifth operating reactor entered the decommissioning phase at the FY 2015 99 99 beginning of FY 2015.

The increase from 99 to 100 accounts for the startup operation of FY 2016 100 100 Watts Bar Nuclear Plant, Unit 2 in FY 2016.

FY 2017 99 99 Fort Calhoun Station shut down leaving 99 operating reactors.

Replaced by Percentage of Plants for which All Required Baseline FY 2018 Discontinued Inspection Procedures Are Completed (OR-12.1)

FY 2019 N/A

• The baseline inspection program metric includes the number of reactors in operation.

Percentage of Plants for which All Required Baseline Inspection Procedures Are Completed (OR-12.1)

Fiscal Year Target Actual Comment FY 2018 99 New target in FY 2018 (replacing OR-12).

FY 2019 99 FY 2019 Congressional Budget Justification l 24

OPERATING REACTORS Percentage of Final Significance Determinations Made within 90 Days for All Potentially Greater Than Green Findings (OR-13)

Fiscal Year Target Actual Comment The 90 day target was exceeded by 1 day for one action because of FY 2014 90 86 one particularly complicated issue The target was not met because of the complexity of the flooding issues FY 2015 90 88 associated with Arkansas Nuclear One Units 1 and 2.

FY 2016 90 100 FY 2017 90 100 FY 2018 90 FY 2019 90 Percentage of Technical Allegation Reviews Completed in 150 Days or Less (OR-14)

Fiscal Year Target Actual Comment FY 2014 90 97 FY 2015 90 98 FY 2016 90 97 FY 2017 90 97 FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 N/A Percentage of Technical Allegation Reviews Completed in 180 Days or Less (OR-15)

Fiscal Year Target Actual Comment FY 2014 95 99 FY 2015 95 99 FY 2016 95 99 FY 2017 95 99 FY 2018 95 FY 2019 95 Percentage of Technical Allegation Reviews Completed in 360 Days or Less (OR-16)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100 Percentage of Enforcement Actions Where No Investigation Is Involved Completed in 160 Days or Less (OR-17)

Fiscal Year Target Actual Comment FY 2014 100 100 Three cases missed the metric because of the complexity of each case, which required the NRC to take more time to resolve the enforcement FY 2015 100 87 action.

FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100 FY 2019 Congressional Budget Justification l 25

OPERATING REACTORS Percentage of Enforcement Actions Where Investigation Is Involved Completed in 330 Days or Less (OR-18)

Fiscal Year Target Actual Comment FY 2014 100 100 One case missed the metric because the case included an investigation to determine whether willfulness was involved on the part of licensee employees, which required the NRC to take additional time to resolve FY 2015 100 86 the enforcement action.

FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100 Percentage of Investigations That Developed Sufficient Information To Reach a Conclusion Regarding Wrongdoing Completed in 12 Months or Less* (OR-19)

Fiscal Year Target Actual Comment FY 2014 80 84 FY 2015 80 98 FY 2016 80 95 FY 2017 80 97 FY 2018 80 FY 2019 85

• Target for FY 2013 and FY 2014 was 9 months or less. The increase of time from 9 to 12 months reflects the implementation of added quality assurance checks during an investigation and the need to ensure that due professional care is used in conducting investigations and preparing related reports, as outlined in the Council of Inspectors General on Integrity and Efficiency Quality Standards for Investigations. Additionally, the Office of Investigations has implemented a more robust mentoring program with specialized training and development strategies because of high turnover through mandatory retirements of over 50 percent of Special Agents and Special Agents in Charge during FY 2013, FY 2014, and FY 2015.

Percentage of Investigations Completed in Time To Initiate Civil and/or Criminal Enforcement Action (OR-20)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100 RULEMAKING Percentage of Proposed Final Rules Completed in Accordance with Schedules Approved by the Commission (OR-21)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY 2015 FY 2016 FY 2016 80 100 FY 2017 80 100 FY 2018 80 FY 2019 80 FY 2019 Congressional Budget Justification l 26

OPERATING REACTORS RESEARCH Percentage of Major Milestones for Critical Research Programs Completed On or Before Their Due Date*

(OR-22)

Fiscal Year Target Actual Comment FY 2014 90 100 FY 2015 90 100 FY 2016 90 100 FY 2017 90 100 FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 NA

• Critical research programs typically respond to high-priority needs from the Commission and the NRCs licensing organizations. Critical research programs will be the highest priority needs identified at the beginning of each FY.

Combined Score on a Scale of 1 to 5 for the Technical Quality of Agency Research Technical Products*

(OR-23)

Fiscal Year Target Actual Comment FY 2014 3.75 4.42 FY 2015 3.75 4.66 FY 2016 3.75 4.43 FY 2017 3.75 4.50 FY 2018 Discontinued Indicator to be tracked internally.

Reintroduced in FY 2019, the Technical Quality Survey was initially pulled because of the low response rate. The Office of Nuclear Regulatory Research (RES) reexamined its performance indicators and believes the Technical Quality Survey indicator provides the best quality measure for the office and the agency on RES products. RES is focused on improving the response rate of the surveys by user offices and potentially revising the survey questions FY 2019 4.0 to enhance the value of this tool.

• The NRC has developed a process to measure the quality of research products on a fivepoint scale using surveys of endusers to determine the usability and valueadded of the products. As appropriate, the NRC will develop and add other mechanisms of this process to measure the quality of research products.

EVENT RESPONSE Percentage Assessment of the Agency's Readiness To Respond to a Nuclear or Terrorist Emergency Situation or Other Events of National Interest* (OR-24)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100

• This performance index provides a single overall performance indicator of the agencys readiness to respond to a nuclear or terrorist emergency situation or other events of national interest. The index measures several activities within the Incident Response Program that are critical to support the agencys preparedness and response ability.

FY 2019 Congressional Budget Justification l 27

OPERATING REACTORS GENERIC HOMELAND SECURITY Percentage of Information Assessment Team Advisories Issued within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> of Notification (OR-25)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY 2015 FY 2016 No threat met the threshold for the issuance of an Information FY 2016 90 100 Assessment Team for FY 2016.

No threat met the threshold for the issuance of an Information FY 2017 90 100 Assessment Team for FY 2017.

FY 2018 90 FY 2019 90 FY 2019 Congressional Budget Justification l 28

NEW REACTORS NEW REACTORS New Reactors by Product Line (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Product Line $M FTE $M FTE $M FTE $M FTE International Activities 1.1 5.8 1.1 6.0 1.0 5.0 (0.1) (1.0)

Licensing 45.3 205.4 43.9 216.0 44.2 175.0 0.3 (41.0)

Oversight 18.3 95.9 18.1 101.0 14.9 75.0 (3.2) (26.0)

Research 8.8 17.4 8.9 17.0 15.1 35.0 6.2 18.0 Rulemaking 1.4 5.8 1.0 6.0 1.9 10.0 0.9 4.0 Mission Support and Supervisors 16.6 91.4 16.7 96.0 16.6 85.0 (0.1) (11.0)

Training 2.9 11.7 2.9 13.0 2.8 9.0 (0.1) (4.0)

Travel 1.8 0.0 2.6 0.0 2.6 0.0 0.0 0.0 Total $96.1 433.3 $95.2 455.0 $99.1 394.0 $3.9 (61.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

The New Reactors Business Line is responsible for licensing and overseeing, design, siting, and construction of new nuclear power reactors, including small modular reactors (SMRs) and advanced reactors. The new reactors activities ensure that new civilian nuclear power reactor facilities are developed in a manner that protects the health, safety, and security of the public in an efficient manner.

The NRC reviews new nuclear power reactor design certification (DC), combined license (COL),

and early site permit (ESP) applications, consistent with Title 10 of the Code of Federal Regulation (10 CFR) Part 52, Licenses, Certifications, and Approvals for Nuclear Power Plants. By issuing a COL, the NRC authorizes the licensee to construct and, with specified conditions, operate a nuclear power plant at a specific site.

The NRC also reviews new nuclear power reactor construction permit and operating license applications, consistent with 10 CFR Part 50, Domestic Licensing of Production and Utilization Facilities. The application process regulated under 10 CFR Part 50which was implemented for all currently operating reactorsinvolves separate applications for the issuance of construction permits and operating licenses.

The NRC continues to perform technical reviews of large, light-water reactors (LLWRs) and SMR applications. The NRC continues to conduct regulatory oversight of construction activities.

These activities include conducting inspections of plants under construction and of component suppliers. The NRC continues to interact with vendors about prospective SMR and advanced reactor applications and to refine regulatory processes to prepare for reviewing these potential applications.

FY 2019 Congressional Budget Justification l 29

NEW REACTORS CHANGES FROM FY 2018 ANNUALIZED CONTINUING RESOLUTION Resources increase to support the NuScale and 10 CFR Part 50 and 10 CFR Part 52 rulemaking, "Incorporation of Lessons Learned from New Reactor Licensing Process (Parts 50 and 52 Licensing Process Alignment). Additionally resources increase to support the following activities: (1) application review and construction oversight for Bellefonte Nuclear Station (Bellefonte), Units 1 and 2 (10 CFR Part 50); (2) acceptance reviews for the COL applications for the Blue Castle (LLWR) and the Utah Associated Municipal Power System (UAMPS) SMR; and (3) the maintenance, security, and enhancement of the Construction Inspection Program Information Management System, Verification of Inspections, Tests, Analyses, and Acceptance Criteria (ITAAC) Closure Evaluation and Status (VOICES) system, and Electronic Request for Additional Information system. Resources in the Research Product Line increase to support activities related to the development of the regulatory infrastructure for advanced nuclear reactor technologies, as documented in the NRC non-light-water-reactor (non-LWR) near-term, midterm, and long-term implementation action plans, including identification and resolution of policy issues related to advanced reactors, development of guidance for flexible and staged review processes, and development of guidance for risk-informed, performance-based licensing-basis events selection.

These increases are partially offset by decreases as a result of the anticipated completion of the reconciliation of Regulatory Guide 1.206, Combined License Applications for Nuclear Power Plants (LWR Edition), with NUREG-0800, Standard Review Plan for the Review of Safety Analysis Reports for Nuclear Power Plants: LWR Edition; the decision made by South Carolina Electric and Gas Company and Santee Cooper to cease construction of the two new nuclear units (2 and 3) at Virgil C. Summer; the completion of the technical review and rulemaking for the Advanced Power Reactor-1400 (APR1400) DC; Duke Energys recent decisions regarding COLs for the Lee and Levy sites; the anticipated resolution of the majority of policy and key technical issues related to SMRs and integral pressurized-water reactors; and standardization and centralization of mission support functions within the programmatic offices.

Generally, resources budgeted in the Licensing and Oversight Product Lines impact fees for service. All other resources impact annual fees.

MAJOR ACTIVITIES The major activities within the New Reactors Business Line include the following:

Support the licensing reviews for two COL applications (Blue Castle and UAMPS).

Continue the review of two DC applications for NuScale (SMR) and U.S. Advanced Pressurized-Water Reactor (US-APWR) (LLWR).

Continue the review of one DC renewal application for the General Electric-Hitachi Advanced Boiling-Water Reactor (ABWR) design (LLWR).

Continue the review of one SMR ESP application (Tennessee Valley Authoritys (TVAs)

Clinch River Nuclear Site).

10 CFR Part 50 review activities for Bellefonte Units 1 and 2, including license transfer and operating license applications.

Review license amendments for post-COL activities. The NRC anticipates that a significant percentage of amendments will be for important or significant design changes associated with resolving first-of-a-kind construction issues.

FY 2019 Congressional Budget Justification l 30

NEW REACTORS Infrastructure development for advanced reactors at a rate consistent with NRC projections for interest in new technologies while maintaining cognizance of the industrys plans.

Perform activities related to advanced reactor preapplication and review for one DC application (Oklo).

Perform construction inspection activities at the two reactors under construction (Vogtle Electric Generating Plant, Units 3 and 4) and support initial oversight activities at Bellefonte Units 1 and 2.

Conduct inspections of vendors supplying products and services for new reactors and support the continued implementation of a formal agencywide program to monitor and evaluate counterfeit, fraudulent, and suspect items.

The Rulemaking Center of Expertise will coordinate rulemaking activities, including amending financial qualification requirements for reactor licensing to reduce the regulatory burdens for merchant plant applicants, emergency preparedness for SMRs and other new technologies, APR1400 DC, US ABWR (General Electric-Hitachi) DC renewal, NuScale SMR DC, and the 10 CFR Part 50 and 10 CFR Part 52 rule, Incorporation of Lessons Learned from New Reactor Licensing Process (Parts 50 and 52 Licensing Process Alignment).

Provide research support for LLWR and SMR DC reviews and analysis, including the development of new reactor plant risk models; seismic, geotechnical, and structural engineering studies; probabilistic seismic hazard assessments support; tsunami studies; probabilistic flood hazard assessment framework; independent assessment of thermal-hydraulics system responses and severe accidents; and pipe-rupture acceptance criteria. Resources also support the development of guidance for human factors reviews and efforts to maintain and develop codes and models.

Provide international support for the continued participation in the Multinational Design Evaluation Program that will potentially enhance safety at U.S. sites through international exchanges of licensing, construction inspection, and commissioning activities.

Continue to implement strategic bilateral and multilateral cooperation with countries on the regulatory oversight of construction of AP1000 reactors. The program also supports International Atomic Energy Agency activities, such as those related to generic SMR issues, standards development, and consultancy meetings. In addition, the program supports Nuclear Energy Agency activities, such as those related to new reactor design and commissioning.

Complete the plan for the transition of regulatory oversight as the new AP1000 units move from construction to operation.

FY 2019 Congressional Budget Justification l 31

NEW REACTORS 10 9

9 Number of New Reactors Applications 8

7 6

6 5

5 4 4 4 4

3 3 3 3 3

2 2 2 2

1 1 1 1 1 1

0 0

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Combined License Design Certification Early Site Permit Operating License Application Figure 5: New Reactor Applications under Review FY 2019 Congressional Budget Justification l 32

NEW REACTORS New Reactor Applications under Review New FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Reactor Reviews Bell Bend Bell Lee Lee Blue COL Calvert Bend Station Station Castle Cliffs Lee Levy North UAMPS Comanche Station County Anna Peak Levy North Turkey Fermi County Anna Point Levy North South County Anna Texas North Anna South Project South Texas Turkey Texas Project Point Project Turkey Turkey Point Point Lee Station ESBWR, U.S. US- US- US- US-DC U.S. EPR EPR APWR APWR APWR APWR US-APWR US- ABWR ABWR ABWR ABWR APWR KHNP KHNP KHNP NuScale KHNP (APR- (APR- (APR-(APR- 1400) 1400) 1400) 1400) NuScale* NuScale NuScale PSEG PSEG PSEG TVA Blue TVA ESP TVA Clinch Castle Clinch Clinch River TVA River River* Clinch River Bellefonte Operating License Application

• Preapplication review FY 2019 Congressional Budget Justification l 33

NEW REACTORS SIGNIFICANT ACCOMPLISHMENTS IN FY 2017 The significant accomplishments within the New Reactors Business Line include the following:

Completed 273 ITAAC closure notifications, 97 percent of these within 60-day timeliness goal, and took actions to proactively anticipate and manage a surge in ITAAC closure notification.

Completed three COL applications, which resulted in the issuance of COLs for North Anna Unit 3, Levy Units 1 and 2, and Lee Units 1 and 2.

Published the final safety evaluation report, final environmental impact statement, and environmental impact statement supplement for the Turkey Point COL application.

Completed the acceptance review of the NuScale SMR DC and associated topical reports. This acceptance review confirmed that the DC application is sufficiently complete to allow the NRC to begin its review.

Completed two major milestones for the APR1400 DC review (issuance of safety evaluations with open items and briefings to the Advisory Committee on Reactors Safeguards subcommittee).

Issued the final version of the non-LWR near-term, midterm, and long-term implementation action plans that support the vision and strategy for advanced reactor readiness. These plans will guide the NRCs actions to enhance the effectiveness and efficiency of non-LWR design reviews.

Completed a major milestone, Preliminary Safety Evaluation Report and Requests for Additional Information Issued, associated with the safety review of the ESP application for the Clinch River Nuclear Site.

Completed the final regulatory basis for the Emergency Preparedness for Small Modular Reactors and Other New Technologies proposed rulemaking, which focuses on establishing a scalable, consequence-oriented approach to determining the size of an emergency planning zone for SMRs and non-LWRs.

Completed 35 inspections of vendors supplying components for operating reactors and reactors under construction. These inspections ensure the quality of the supply chain for nuclear plants by confirming that components are manufactured in accordance with NRC regulations.

OTHER INDICATORS LICENSING Percentage of Early Site Permit Review Interim Milestones Completed on Time (NR-02)

Fiscal Year Target Actual Comment FY 2014 FY 2015 New indicator in FY 2016 FY 2016 85 100 FY 2017 85 100 FY 2018 85 FY 2019 85 FY 2019 Congressional Budget Justification l 34

NEW REACTORS Percentage of Design Certification Review Interim Milestones Completed on Time (NR-04)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY 2015 FY 2016 FY 2016 85 100 FY 2017 85 100 FY 2018 85 FY 2019 85 Percentage of Milestones for COL Application Reviews Completed in Accordance with the Schedules Agreed Upon with the Applicants (NR-06)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY 2015 FY 2016 FY 2016 85 100 FY 2017 85 100 FY 2018 85 FY 2019 85 Percentage of Interim Milestones for SMR DC Reviews That Are Completed in Accordance with the Schedules Agreed Upon with the Applicants (NR-08)

Fiscal Year Target Actual Comment FY 2014 FY 2015 New indicator in FY 2016 FY 2016 85 NA No reactor design submitted for review.

FY 2017 85 100 Indicator to be merged with the indicator, Percentage of Design Certification Review Interim Milestones Completed on FY 2018 Discontinued Time. (NR-04)

FY 2019 N/A FY 2019 Congressional Budget Justification l 35

NEW REACTORS Identify and Resolve Policy and Key Technical Issues Facing the Review of SMR Applications and Implement Resolutions through Rule Changes or Guidance Development (NR-09)

Fiscal Year Target Actual Comment Complete All milestones 100% of completed as FY 2014 milestones appropriate.

necessary to All milestones support the completed as FY 2015 resolution of appropriate.

FY 2016 policy and 100 key technical issues.

In addition, complete milestones necessary to support implement-ation of FY 2017 resolutions. 100 FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 N/A Percentage of SMR Preapplication Review Interim Milestones Completed in Accordance with the Schedule Agreed Upon with the Applicants for Two DC Applications (NR-11)

Fiscal Year Target Actual Comment FY 2014 FY 2015 New indicator in FY 2016 FY 2016 85 N/A No milestones associated with preapplication reviews.

FY 2017 85 N/A No SMR preapplication activities during FY 2017 SMR preapplication review timeliness will be tracked FY 2018 Discontinued internally.

FY 2019 N/A Percentage of Interim Milestones for SMR COL and Construction Permit Application Reviews Completed in Accordance with the Schedule Agreed Upon with the Applicants (NR-13)

Fiscal Year Target Actual Comment FY 2014 FY 2015 New indicator in FY 2016 The NRC had no SMR COL or SMR construction permit FY 2016 85 N/A application for review during this FY.

There is currently no SMR COL or SMR construction permit FY 2017 85 N/A application for FY 2017.

Indicator to be merged with the indicator, Percentage of Milestones for COL Application Reviews Completed in Accordance with the Schedules Agreed Upon with the FY 2018 Discontinued Applicants. (NR-06)

FY 2019 N/A FY 2019 Congressional Budget Justification l 36

NEW REACTORS Percentage of License Amendment Reviews Completed on the Schedules Agreed Upon with the Licensee (Within the NRC's Control) (NR-14)

Fiscal Year Target Actual Comment FY 2014 FY 2015 New indicator in FY 2016 FY 2016 85 100 FY 2017 85 100 FY 2018 85 FY 2019 85 OVERSIGHT Number of Domestic and International Vendor Inspections Completed (NR-15)

Fiscal Year Target Actual Comment FY 2014 30 36 FY 2015 30 39 FY 2016 30 34 FY 2017 35 37 The target was increased based on increased workload.

FY 2018 30 The target was decreased based on decreased workload.

FY 2019 20 The target was decreased based on decreased workload.

RULEMAKING Percent of Proposed Final Rules Completed in Accordance with the Schedule Approved by the Commission (NR-16)

Fiscal Year Target Actual Comment FY 2014 FY 2015 New indicator in FY 2016 FY 2016 80 N/A There were no final rulemakings in FY 2016.

FY 2017 80 N/A There were no final rulemakings scheduled in FY 2017 FY 2018 80 FY 2019 80 FY 2019 Congressional Budget Justification l 37

NEW REACTORS RESEARCH Timeliness of Completing Actions on Critical Research Program* (NR-17)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY 2015 No critical research 90% of major program milestones met actions on or before completed in FY 2015 their due date FY 2015.

90% of major milestones met There were no critical milestones associated with the on or before research activities conducted in this business line in FY 2016; FY 2016 their due date N/A thus, there are no performance data to report.

90% of major milestones met There were no critical milestones associated with the on or before research activities conducted in this business line in FY 2017; FY 2017 their due date N/A thus, there are no performance data to report.

FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 N/A

• Critical research programs typically respond to high-priority needs from the Commission and the NRCs licensing organizations. Critical research programs will be the highest priority needs identified at the beginning of each FY.

Acceptable Technical Quality of Agency Research Technical Products* (NR-18)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY 2015 FY 2015 3.75 N/A No technical quality surveys requested in FY 2015.

FY 2016 3.75 4.31 FY 2017 3.75 4.42 FY 2018 Discontinued Indicator to be tracked internally.

Reintroduced for FY 2019, the Technical Quality Survey was initially pulled because of the low response rate. The Office of Nuclear Regulatory Research (RES) reexamined its performance indicators and believes the Technical Quality Survey indicator provides the best quality measure for the office and the agency on RES products. RES is focused on improving the response rate of the surveys by user offices and potentially revising the survey questions to enhance the FY 2019 4.0 value of this tool.

• The NRC has developed a process to measure the quality of research products on a 5point scale using surveys of endusers to determine the usability and valueadded of the products. As appropriate, the NRC will develop and add other mechanisms to this process to measure the quality of research products.

Percentage of Non-LWR Construction Permit Review Interim Milestone Completed on Time (NR-19)

Fiscal Year Target Actual Comment FY 2014 FY 2015 FY 2016 FY 2017 New indicator in FY 2018 FY 2019 FY 2019 85 FY 2019 Congressional Budget Justification l 38

NUCLEAR MATERIALS AND WASTE SAFETY NUCLEAR MATERIALS AND WASTE SAFETY Nuclear Materials and Waste Safety (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Business Line $M FTE $M FTE $M FTE $M FTE Fuel Facilities 24.5 109.2 24.7 113.0 25.2 107.0 0.5 (6.0)

Nuclear Materials Users 64.4 228.5 63.5 238.0 60.6 215.0 (2.9) (23.0)

Spent Fuel Storage and Transportation 24.8 99.6 22.3 102.0 24.8 100.0 2.5 (2.0)

Decommissioning and Low-Level Waste 26.8 111.8 26.4 115.0 25.4 104.0 (1.0) (11.0)

High-Level Waste 0.9 1.3 0.0 0.0 47.7 124.0 47.7 124.0 Total $141.3 550.6 $136.9 568.0 $183.7 650.0 $46.8 82.0

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

The Nuclear Materials and Waste Safety Program reflects the NRCs effort to license and oversee nuclear materials in a manner that adequately protects public health and safety and the environment. This program provides assurance of the physical security of the materials and waste and protection against radiological sabotage, theft, or diversion of nuclear materials.

Through this program, the NRC regulates uranium processing and fuel facilities, research and pilot facilities, nuclear materials users (medical, industrial, research, and academic), spent fuel storage, spent fuel and material transportation and packaging, decontamination and decommissioning of facilities, and low-level and high-level radioactive waste. The program contributes to the NRCs Safety and Security strategic goals through the activities of the Fuel Facilities, Nuclear Materials Users, Spent Fuel Storage and Transportation, Decommissioning and LLW, and High-Level Waste Business Lines.

Overall resources requested in the fiscal year (FY) 2019 budget for the Nuclear Materials and Waste Safety Program are $183.7 million, including 650 full-time equivalents (FTE). This funding level represents an overall funding increase of $46.8 million, including 82 FTE, when compared with the FY 2018 Annualized Continuing Resolution. This budget includes

$47.7 million, including 124 FTE for the proposed Yucca Mountain deep geologic repository for spent nuclear fuel and other high-level radioactive waste, which is not fee-billable and requires resources from the Nuclear Waste Fund.

FY 2019 Congressional Budget Justification l 39

FUEL FACILITIES FUEL FACILITIES Fuel Facilities by Product Line (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Product Line $M FTE $M FTE $M FTE $M FTE Event Response 0.3 1.9 0.4 2.0 0.4 2.0 0.0 0.0 Generic Homeland Security 2.4 2.9 2.5 3.0 2.3 3.0 (0.2) 0.0 International Activities 1.2 6.8 1.2 7.0 1.3 7.0 0.1 0.0 Licensing 5.9 30.3 6.0 31.0 6.5 30.0 0.5 (1.0)

Oversight 7.6 38.2 7.6 40.0 7.9 39.0 0.3 (1.0)

Research 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Rulemaking 1.5 6.8 1.2 7.0 0.7 4.0 (0.5) (3.0)

Mission Support and Supervisors 4.2 22.2 4.3 23.0 4.4 22.0 0.1 (1.0)

Training 0.4 0.0 0.4 0.0 0.6 0.0 0.2 0.0 Travel 1.0 0.0 1.1 0.0 1.1 0.0 0.0 0.0 Total $24.5 109.2 $24.7 113.0 $25.2 107.0 $0.5 (6.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

The Fuel Facilities Business Line encompasses the licensing and oversight of fuel cycle facilities in a manner that adequately protects public health and safety and promotes the common defense and security. The uranium fuel cycle begins with uranium ore that is mined and then milled to extract uranium from the ore (these activities are funded in the Decommissioning and Low-Level Waste Business Line). The uranium continues through processes for conversion, enrichment, and fuel fabrication. Conversion of the uranium changes it into a form suitable for enrichment. The enrichment process makes uranium suitable for use as nuclear fuel.

The Fuel Facilities Business Line also provides licensing and oversight support for a number of additional licensees that possess greater than critical mass quantities of special nuclear material (SNM), such as universities and research and test facilities.

FY 2019 Congressional Budget Justification l 41

FUEL FACILITIES Figure 6: Locations of Licensed Fuel Cycle Facilities Some licensed fuel facilities possess SNM, such as plutonium and enriched uranium. Those licensees verify and document their inventories and material transfers in the Nuclear Material Management and Safeguards System database. Fuel Facilities Business Line activities also include the Nuclear Materials Information Program (NMIP) and the interagency agreement with the U.S. Department of Energy (DOE) for certification and accreditation of classified computer systems at enrichment facilities.

The NMIP is an interagency effort managed by DOEs Office of Intelligence and Counterintelligence, in close coordination with the U.S. Departments of State, Defense, Homeland Security, and Justice, as well as the NRC and agencies under the Director of National Intelligence. The goal of the NMIP is to consolidate information from all sources pertaining to worldwide nuclear materials holdings and their security status into an integrated and continuously updated information management system.

Other activities the Fuel Facilities Business Line supports include licensing action reviews, inspections, allegation and enforcement, rulemaking, development and implementation of security requirements, emergency preparedness, international cooperation and assistance, International Atomic Energy Agency (IAEA) missions, and export and import licensing.

FY 2019 Congressional Budget Justification l 42

FUEL FACILITIES CHANGES FROM FY 2018 ANNUALIZED CONTINUING RESOLUTION Resources increase slightly to support enforcement activities, policy outreach activities, and mission training. Increases are partially offset by decreases in expected new fuel facility license applications, declines in expected work associated with license renewal applications, and the expected completion of the Cyber Security Rulemaking.

Generally, resources budgeted in the Licensing and Oversight Product Lines impact fees for service. All other resources impact annual fees.

MAJOR ACTIVITIES The major activities within the Fuel Facilities Business Line include the following:

Ensure that licensed fuel facilities operate safely and securely and in accordance with the NRC rules, regulations, and license requirements.

Perform licensing and oversight activities for 12 fuel facilities, including conversion, enrichment, fuel fabrication, and uranium deconversion facilities. Licensing actions include reviews of license amendments, decommissioning funding plans, emergency plans, and security plans. There are currently seven facilities operating, one under construction, and four licensed facilities that have not started construction.

Support the regulation of 10 university and test research facilities licensees under Title 10 of the Code of Federal Regulations (10 CFR) Part 70, Domestic Licensing of Special Nuclear Material.

Conclude the license renewal review for one facility under 10 CFR Part 40, Domestic Licensing of Source Material.

Conduct inspections, force-on-force exercises, and readiness reviews.

Conduct rulemaking for fuel cycle facilities in security-related areas.

Support U.S. nonproliferation activities by implementing international safeguards and licensing of the import and export of nuclear materials and equipment.

Perform activities that support the NRCs work with international counterparts, including obligation tracking, approvals, and treaty compliance; support under DOE 10 CFR Part 810, Assistance to Foreign Atomic Energy Activities; and review of the import and export of nuclear materials, technology, and equipment. Support bilateral visits with other countries possessing or obtaining U.S.-origin SNM with regard to physical protection and material control and accounting. Provide technical assistance to IAEA and support U.S. initiatives to enhance international safeguards and verification programs.

Support the tracking of source material and SNM inventories, material balances, and transactions for more than 400 commercial manufacturers and users in the United States, in cooperation with DOE, through the Nuclear Material Management and Safeguards System database.

FY 2019 Congressional Budget Justification l 43

FUEL FACILITIES 180 160 155 152 144 144 144 140 131 120 107 Licensing Actions 100 80 63 60 60 57 58 60 40 20 0

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018* FY 2019*

Licensing Actions Inspections

• Values provided for FY 2018-FY 2019 are projections.

Figure 7: Fuel Facilities Workload SIGNIFICANT ACCOMPLISHMENTS IN FY 2017 The significant accomplishments within the Fuel Facilities Business Line include the following:

Completed an Augmented Inspection Team (AIT) for the Westinghouse scrubber condition reported to the NRC on July 14, 2016, issued an inspection report, and examined lessons learned for generic applicability. The NRC also issued a confirmatory order in FY 2017, documenting the results of the alternative dispute resolution process.

Delivered to the Commission the rulemaking package for revising 10 CFR Part 75, Safeguards on Nuclear MaterialImplementation of U.S./IAEA Agreement, in March 2017. The revision provides reporting requirements for licensees in the U.S. Caribbean Territories, in accordance with the modified Small Quantities Protocol that is part of the U.S. agreements with IAEA. The Commission approved the revision in October 2017, and the NRC is implementing the new requirements.

Delivered to the Commission SECY-17-0099, Proposed RuleCyber Security at Fuel Cycle Facilities, and its associated draft regulatory guide.

Completed the review of the license renewal application for the Vallecitos Nuclear Center by General Electric-Hitachi Nuclear Energy America, LLC, for NRC SNM License 960 to receive, possess, and store SNM and its associated activation and fission products. The license was renewed for a term of 10 years, with an expiration date of August 9, 2027.

Continued efforts to close Generic Letter 2015-01, Treatment of Natural Phenomena Hazards in Fuel Cycle Facilities, dated June 22, 2015. All but one licensee has received closure letters related to Generic Letter 2015-01.

FY 2019 Congressional Budget Justification l 44

FUEL FACILITIES OTHER INDICATORS LICENSING Percentage of Fuel Cycle Licensing Reviews Completed in 150 Days or Less (FF-04)

Fiscal Year Target Actual Comment New indicator in FY 2014 FY 2015 Eleven licensing actions exceeded the 150-day performance metric because of complex licensing issues. Improvement plans include sharing lessons learned, evaluating the licensing tracking process, and FY 2015 80 77 increasing management oversight.

FY 2016 80 91 FY 2017 80 90 FY 2018 80 FY 2019 80 Percentage of Fuel Cycle Licensing Reviews Completed in 1.5 Years or Less (FF-05)

Fiscal Year Target Actual Comment New indicator in FY 2014 FY 2015 One licensing action exceeded the 1.5-year metric because of a significantly expanded scope from the initial review of the action.

Improvement plans include reviewing licensing guidance to see if updates are needed, sharing lessons learned, and communicating with licensees about potential impacts to schedules as issues arise or FY 2015 100 98 changes are requested.

FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100 OVERSIGHT Percentage of Technical Allegation Reviews Completed in 150 Days or Less (FF-06)

Fiscal Year Target Actual Comment FY 2014 90 95 FY 2015 90 100 FY 2016 90 100 FY 2017 90 100 FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 NA Percentage of Technical Allegation Reviews Completed in 180 Days or Less (FF-07)

Fiscal Year Target Actual Comment FY 2014 95 97 FY 2015 95 100 FY 2016 95 100 FY 2017 95 100 FY 2018 95 FY 2019 95 FY 2019 Congressional Budget Justification l 45

FUEL FACILITIES Percentage of Technical Allegation Reviews Completed in 360 Days or Less (FF-08)

Fiscal Year Target Actual Comment One allegation was open for 395 days; therefore, the business line did not meet the allegation timeliness metric of closing 100 percent of all FY 2014 100 97 allegations in 360 days.

FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100 Percentage of Operating Fuel Facilities for which the Core Inspection Program Was Completed as Planned During the Most Recently Ended Inspection Cycle (FF-09)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100 EVENT RESPONSE Percentage Assessment of the Agencys Readiness to Respond to a Nuclear or Terrorist Emergency Situation or Other Events of National Interest* (FF-10)

Fiscal Year Target Actual Comment New indicator in FY 2014 FY 2015 FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100

• This performance index provides a single overall performance indicator of the agencys readiness to respond to a nuclear or terrorist emergency situation or other event of national interest. The index measures several activities in the Incident Response Program that are critical for supporting the agencys preparedness and response ability.

GENERIC HOMELAND SECURITY Percentage of Information Assessment Team Advisories Issued within 24 Hours of Notification (FF-11)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY 2015 FY 2016 FY 2016 90 100 FY 2017 90 100 FY 2018 90 FY 2019 90 FY 2019 Congressional Budget Justification l 46

NUCLEAR MATERIALS USERS NUCLEAR MATERIALS USERS Nuclear Materials Users by Product Line (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Product Line $M FTE $M FTE $M FTE $M FTE Event Response 0.7 3.8 0.7 4.0 0.6 3.0 (0.1) (1.0)

Generic Homeland Security 11.5 14.6 10.9 15.0 10.6 15.0 (0.3) 0.0 International Activities 9.1 15.8 9.1 16.0 8.5 14.0 (0.6) (2.0)

Licensing 9.2 47.0 9.4 49.0 9.6 48.0 0.2 (1.0)

Oversight 13.1 56.7 12.5 60.0 11.2 51.0 (1.3) (9.0)

Research 0.2 1.0 0.2 1.0 0.2 1.0 0.0 0.0 Rulemaking 1.5 7.8 1.4 8.0 2.0 11.0 0.6 3.0 State, Tribal, and Federal Programs 5.6 30.1 5.6 31.0 5.0 26.0 (0.6) (5.0)

Mission Support &

Supervisors 8.8 48.0 8.7 50.0 8.4 43.0 (0.3) (7.0)

Training 2.6 3.6 2.5 4.0 1.6 3.0 (0.9) (1.0)

Travel 2.2 0.0 2.6 0.0 2.9 0.0 0.3 0.0 Total $64.4 228.5 $63.5 238.0 $60.6 215.0 $(2.9) (23.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

Nuclear Materials Users Business Line activities support the licensing, inspection, event evaluation, research, incident response, allegations review, enforcement, import and export authorizations, rulemaking, programmatic oversight of Agreement States, and major information technology systems to maintain the regulatory safety and security infrastructure needed to process and handle nuclear materials.

Agreement States are those States that have signed an agreement with the NRC in accordance with Section 274.b of the Atomic Energy Act of 1954, as amended, which authorizes the NRC to discontinue, and the State to assume, regulatory authority over certain materials cited in the Act.

With respect to Agreement States, the NRC has programmatic oversight responsibility to periodically review the State programs to ensure adequacy and compatibility. By fiscal year (FY) 2019, Wyoming is expected to become an Agreement State, increasing the total number of Agreements States to 38.

FY 2019 Congressional Budget Justification l 47

NUCLEAR MATERIALS USERS Figure 8: Agreement States Nuclear Materials Users Business Line security activities include the implementation and operation of a national registry to improve control of radioactive sources of concern2 and to prevent their malevolent use. The Integrated Source Management Portfolio has integrated three core systems, consisting of the National Source Tracking System, Web-Based Licensing (WBL), and the License Verification System. The systems provide one management mechanism to license and track sources and other radioactive materials. Security activities also include conducting inspections at materials facilities with radioactive materials in quantities of concern and pre-licensing reviews of new materials license applicants.

CHANGES FROM FY 2018 ANNUALIZED CONTINUING RESOLUTION Resources decrease within the International Activities and State, Tribal, and Federal Programs Product Lines to align with historical resource utilization. Resources within the Rulemaking Product Line increased as a result of agency reallocations made to support the Rulemaking Center of Expertise. Resources decrease within the Oversight and Mission Support Product Lines largely as a result of the rebaselining of agency resources.

Generally, for the Nuclear Materials Users Business Line, budgeted resources impact annual fees charged to licensees in accordance with 10 CFR Part 171, Annual Fees for Reactor 2 Radioactive sources of concern refers to sources with quantities of radioactive material meeting or exceeding the Category 1 and Category 2 activity levels contained in 10 CFR Part 37, Physical Protection of Category 1 and Category 2 Quantities of Radioactive Materials.

FY 2019 Congressional Budget Justification l 48

NUCLEAR MATERIALS USERS Licenses and Fuel Cycle Licenses and Materials Licenses, Including Holders of Certificates of Compliance, Registrations, and Quality Assurance Program Approvals and Government Agencies Licensed by the NRC.

MAJOR ACTIVITIES The major activities within the Nuclear Materials Users Business Line include the following:

Support the completion of approximately 2,000 materials licensing actions (new applications, amendments, renewals, and terminations).

Complete approximately 900 routine health, safety, and security inspections, as well as reciprocity and reactive inspections, and inspections for certain general licensees.

Support review of one Agreement State application. Vermont has submitted a draft application to become an Agreement State.

The Rulemaking Center of Expertise will coordinate rulemaking activities, implement the strategy to develop procedures to discontinue certain rulemaking activities; continue the review and processing of petitions for rulemaking in accordance with internal procedures and guidance, and engage internal and external stakeholders in a retrospective review of NRC regulations to identify administrative regulations that may be outdated or duplicative and that can be eliminated.

Oversee and support the Agreement States regulation of approximately 17,000 specific and 150,000 general licenses, conduct nine Integrated Materials Performance Evaluation Program (IMPEP) reviews, and review Agreement State incidents and events as reported.

Implement the agencys Tribal Policy Statement, including outreach, guidance development, and staff training on Tribal issues; coordinating with other Federal agencies on Tribal matters and NRC projects involving Tribal consideration; and updating contact databases and mapping tools.

Support coordination and liaison for homeland security regulatory initiatives, control and track imports and exports of sources, and develop and implement the Integrated Source Management Portfolio.

Satisfy international treaty and convention obligations, as well as statutory mandates. This includes implementing the Code of Conduct on the Safety and Security of Radioactive Sources.

Support a wide range of cooperative programs to exchange information with regulatory counterparts bilaterally and multilaterally to mutually enhance the agencies respective programs.

Support assistance programs and activities to help foreign regulatory counterparts develop or enhance their national regulatory infrastructures and programs, as well as strengthen controls over radioactive sources, consistent with the Code of Conduct on the Safety and Security of Radioactive Sources.

FY 2019 Congressional Budget Justification l 49

NUCLEAR MATERIALS USERS 2,500 2,075 2,000 2,000 2,000 1,774 Licensing Actions 1,565 1,500 956 920 900 1,000 900 832 500 2 1 FY 2015 FY 2016* FY 2017* FY 2018** FY 2019**

Licensing Actions Inspections New Agreement States

• The decline in completed licensing actions in FY 2016 and FY 2017 was caused by a fluctuation in the number of licensing action requests the NRC received during the FYs.

• • Values provided for FY 2018-FY 2019 are projections.

Figure 9: Nuclear Materials Users Workload SIGNIFICANT ACCOMPLISHMENTS IN FY 2017 The significant accomplishments within the Nuclear Material Business Line include the following:

Completed 1,565 materials licensing actions and 920 routine health and safety inspections. The NRC completed 93 percent of new application and license amendment reviews within 90 days of receipt, and 96 percent of license renewal and sealed-source and device design reviews within 180 days of receipt.

Amended regulations governing the licensing and distribution for the medical use of byproduct materials to make the regulations clearer, more risk-informed, and up-to-date.

Provided significant support to Wyomings efforts to become an Agreement State.

Participated in numerous meetings of technical and legal experts on the International Atomic Energy Agencys Code of Conduct for the Safety and Security of Radioactive Sources, to ensure that its implementing guidance is clear and accurate. Worked with other U.S. Government agencies, such as the U.S. Department of State, DOE, U.S. Department of Commerce, the National Security Council, and the International Atomic Energy Agency to develop international security guidance documents for radioactive sources.

Issued a report to Congress on the results of the NRCs program review of its effectiveness in implementing 10 CFR Part 37, Physical Protection of Category 1 and Category 2 Quantities of Radioactive Material. The NRC conducted the program review under Section 403 of Public Law 113-235, Consolidated and Further Continuing FY 2019 Congressional Budget Justification l 50

NUCLEAR MATERIALS USERS Appropriations Act, 2015 (Appropriations Act). This act required that the NRC assess the effectiveness of 10 CFR Part 37, two years following its implementation by its licensees. Based on the results of its review, the NRC concluded that 10 CFR Part 37 requirements are effective in ensuring the security of Category 1 and Category 2 materials.

Made significant progress on enhancing the NRCs Tribal outreach program, including issuance of a Tribal Policy Statement establishing general policy principles to promote effective government-to-government interactions with Indian Tribes and to encourage Tribal involvement in the areas for which the Commission has jurisdiction.

Continued effective oversight and support of Agreement State programs by conducting nine IMPEP reviews. Additionally, conducted 21 Agreement State regulation compatibility reviews associated with various NRC regulations.

Provided technical support to U.S. Executive Branch agencies and participated in negotiations to enter into new, and implement existing, bilateral agreements between the U.S. Government and the governments of several countries establishing the framework for cooperation in the peaceful uses of nuclear energy. Such agreements must be in place for the NRC to approve exports of reactor related technology, major reactor equipment, and reactor fuel. The NRC supported new agreements with Mexico and the United Kingdom.

OTHER INDICATORS LICENSING Percentage of Licensing Application Reviews for New Materials Licenses and License Amendments Completed in 90 Days or Less (excluding Change of Control Amendments*(NM-01)

Fiscal Year Target Actual Comment FY 2014 92 94 FY 2015 92 95 FY 2016 92 95 FY 2017 92 93 FY 2018 92 FY 2019* 92

• The exclusion of change control amendments in this indicator description was made for FY 2019. The process for reviewing change of control amendments involves public notification, and legal steps that are more complex and require more time than for other typical amendment reviews. Hence, change of control amendments are now being captured under NM-03.

FY 2019 Congressional Budget Justification l 51

NUCLEAR MATERIALS USERS Percentage of Licensing Application Reviews for New Materials Licenses and License Amendments (excluding Change of Control Amendments)* Completed in 2 Years or Less (NM-02)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019* 100

• The exclusion of change of control amendments in this indicator description was made for FY 2019. The process for reviewing change of control amendments involves public notification, and legal steps that are more complex and require more time than for other typical amendment reviews. Hence, change of control amendments are now being captured under NM-04.

Percentage of Licensing Application Reviews for Materials License Renewals and Sealed Source and Devices Reviews and Associated Licensing Actions, and Change of Control Amendments* Completed in 180 Days or Less (NM-03)

Fiscal Year Target Actual Comment FY 2014 92 93 FY 2015 92 94 FY 2016 92 94 FY 2017 92 96 FY 2018 92 FY 2019* 92

• As previously noted, change of control amendments was added to this indicator description for FY 2019. Hence, change of control amendments that were being captured in NM-01 in FY 2018 and prior years will be captured under NM-03 starting in FY 2018.

Percentage of Licensing Application Reviews for Materials License Renewals and Sealed Source and Devices Reviews and Associated Licensing Actions, and Change of Control Amendments* Completed in 2 Years or Less (NM-04)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019* 100

• As previously noted, the inclusion of change of control amendments was added to this indicator description for FY 2019. Hence, change of control amendments that were being captured in NM-02 will be captured under NM-04.

FY 2019 Congressional Budget Justification l 52

NUCLEAR MATERIALS USERS OVERSIGHT Percentage of Safety Inspections of Materials Licensees Completed on Time (NM-05)

Fiscal Year Target Actual Comment FY 2014 98 100 FY 2015 98 99 FY 2016 98 100 FY 2017 98 100 FY 2018 98 FY 2019 98 Percentage of Technical Allegation Reviews Completed in 150 Days or Less (NM-06)

Fiscal Year Target Actual Comment FY 2014 90 97 FY 2015 90 96 FY 2016 90 94 FY 2017 90 100 FY 2018 Discontinued Indicator will be tracked internally.

FY 2019 NA Percentage of Technical Allegation Reviews Completed in 180 Days or Less (NM-07)

Fiscal Year Target Actual Comment FY 2014 95 97 FY 2015 95 100 FY 2016 95 95 FY 2017 95 100 FY 2018 95 FY 2019 95 Percentage of Technical Allegation Reviews Completed in 360 Days or Less* (NM-08)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015* 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100

• The FY 2015 Congressional Budget Justification erroneously listed FY 2013 through FY 2015 targets as 330 days.

Percentage of Enforcement Actions Where No Investigation Is Involved Completed in 160 Days or Less (NM-09)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 The staff will focus on early identification of enforcement cases that are likely to involve complex technical or policy issues that need to be FY 2016 100 96 resolved across multiple program offices to ensure timely resolution.

FY 2017 100 100 FY 2018 100 FY 2019 100 FY 2019 Congressional Budget Justification l 53

NUCLEAR MATERIALS USERS Percentage of Enforcement Actions in which Investigation Is Involved Completed in 330 Days or Less (NM-10)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 FY 2016 100 100 One action was completed beyond the target date due to the FY 2017 100 86 challenging nature of the issued involved.

FY 2018 100 FY 2019 100 Percentage of Investigations That Developed Sufficient Information To Reach a Conclusion Regarding Wrongdoing Completed within 12 Months or Less (NM-11)

Fiscal Year Target Actual Comment FY 2014 85 90 FY 2015 85 95 FY 2016 85 88 FY 2017 85 89 FY 2018 85 FY 2019 85 Percentage of Investigations Completed in Time To Initiate Civil Enforcement and/or Criminal Prosecution Action (NM-12)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100 RESEARCH Percentage of Major Milestones for Critical Research Programs Completed On or Before Their Due Date*

(NM-15)

Fiscal Year Target Actual Comment FY 2014 90 100 There were no critical milestones associated with the research activities FY 2015 90 N/A conducted in this business line in FY 2015.

There were no critical milestones associated with the research activities FY 2016 90 N/A conducted in this business line in FY 2016.

There were no critical milestones associated with the research FY 2017 90 N/A activities.

The projected level of research for this business line is not expected to FY 2018 Discontinued meet the criteria of this indicator.

FY 2019 NA

• Critical research programs typically respond to high-priority needs from the Commission and the NRC's licensing organizations. Critical research programs on the highest priority needs are identified at the beginning of the FY.

FY 2019 Congressional Budget Justification l 54

NUCLEAR MATERIALS USERS Combined Score on a Scale of 1 to 5 for the Technical Quality of Agency Research Technical Products*

(NM-16)

Fiscal Year Target Actual Comment FY 2014 3.75 5.0 FY 2015 3.75 N/A No research products produced for this business line during FY 2015.

FY 2016 3.75 N/A No research products produced for this business line during FY 2016.

FY 2017 3.75 4.0 FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 NA

• The NRC has developed a process to measure the quality of research products on a 5point scale using surveys of endusers to determine the usability and valueadded of the products. As appropriate, other mechanisms will be developed and added to this process to measure the quality of research products.

EVENT RESPONSE Percentage Assessment of the Agencys Readiness To Respond to a Nuclear or Terrorist Emergency Situation or other Event of National Interest (NM-17)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY 2015 FY 2016 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100 GENERIC HOMELAND SECURITY Percentage of Information Assessment Team Advisories Issued within 24 Hours of Notification (NM-18)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY 2015 FY 2016 FY 2016 90 100 FY 2017 90 100 FY 2018 90 FY 2019 90 STATE, TRIBAL AND FEDERAL PROGRAMS Percentage of Integrated Materials Performance Evaluation Program Review Reports Completed within 30 Days of the Management Review Board Meeting (NM-20)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY FY 2015 2016 The NRC increased management oversight to ensure the timeliness of FY 2016 85 75 reports. The NRC will continue to monitor reports for timeliness.

FY 2017 85 100 FY 2018 Discontinued Replaced by the number of IMPEP review reports that were not completed within 30 days of the Management Review Board meeting FY 2019 NA (NM-21).

FY 2019 Congressional Budget Justification l 55

NUCLEAR MATERIALS USERS Number of Integrated Materials Performance Evaluation Program Review Reports Completed within 30 Days of the Management Review Board Meeting (NM-21)

Fiscal Year Target Actual Comment FY 2014 FY 2015 New indicator in FY 2016 FY 2018 FY 2017 FY 2018 <2 FY 2019 <2 FY 2019 Congressional Budget Justification l 56

SPENT FUEL STORAGE AND TRANSPORTATION SPENT FUEL STORAGE AND TRANSPORTATION Spent Fuel Storage and Transportation by Product Line (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Product Line $M FTE $M FTE $M FTE $M FTE International Activities 0.7 3.9 0.9 4.0 0.6 2.0 (0.3) (2.0)

Licensing 13.4 51.8 11.2 53.0 16.1 62.0 4.9 9.0 Oversight 2.0 11.5 2.0 12.0 2.5 13.0 0.5 1.0 Research 2.7 6.0 3.0 6.0 1.0 2.0 (2.0) (4.0)

Rulemaking 2.7 10.8 1.9 11.0 1.1 6.0 (0.8) (5.0)

Mission Support and Supervisors 2.9 15.6 2.7 16.0 2.9 15.0 0.2 (1.0)

Training 0.1 0.0 0.1 0.0 0.1 0.0 0.0 0.0 Travel 0.4 0.0 0.5 0.0 0.6 0.0 0.1 0.0 Total $24.8 99.6 $22.3 102.0 $24.8 100.0 $2.5 (2.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

The NRC conducts the activities under the Spent Fuel Storage and Transportation Business Line to ensure the safe and secure storage of spent nuclear fuel (SNF) and the safe transport of radioactive materials. These activities include conducting safety, security, and environmental reviews of SNF storage casks and independent spent fuel storage installation (ISFSI) license applications, as well as performing safety and security reviews of radioactive material transportation packages. This work includes reviewing storage system and ISFSI renewal applications. It also includes developing and updating related regulations and guidance, conducting safety inspections of transportation package and storage cask vendors and fabricators, observing ISFSI operations, and performing security inspections of ISFSIs.

FY 2019 Congressional Budget Justification l 57

SPENT FUEL STORAGE AND TRANSPORTATION Figure 10: Licensed and Operating Independent Spent Fuel Storage Installations by State FY 2019 Congressional Budget Justification l 58

SPENT FUEL STORAGE AND TRANSPORTATION CHANGES FROM FY 2018 ANNUALIZED CONTINUING RESOLUTION Resources increase primarily under the Licensing Product Line to support safety, security, emergency preparedness, and environmental reviews for two concurrent applications for a consolidated interim storage facility; the effort to update/consolidate the standard review plan; anticipated legal activities; and to support ISFSI license renewals. All increases are offset by decreases in rulemaking for ultimate disposal activities, research activities, and the alignment of international activity resources with projected workload.

Generally, resources budgeted in the Licensing and Oversight Product Lines impact fees for service. All other resources impact annual fees.

MAJOR ACTIVITIES The major activities within the Spent Fuel Storage and Transportation Business Line include the following:

Review new applications, amendment requests, and license renewal applications for transportation packages and SNF storage applications to ensure the safe and secure storage of SNF and safe transport of other radioactive materials.

Conduct safety inspections of storage and transportation cask vendors, fabricators, and designers, as well as ISFSI pad construction, dry-run operations, initial loading campaigns, and routine operations.

Conduct the technical, legal, and environmental review for consolidated interim storage facility applications.

Review security activities associated with radioactive materials in quantities of concern and with transportation security route approvals.

Initiate and process spent fuel storage and transportation rulemakings and associated regulatory guidance documents.

Coordinate with the International Atomic Energy Agency to compare regulatory frameworks, share research on storage and transportation matters, and harmonize the certification of transport packages and licensing of storage cask designs with international standards.

Satisfy international treaty and convention obligations, as well as statutory mandates. This includes the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management.

Provide oversight of the NRCs safeguards and ISFSI security inspection program.

FY 2019 Congressional Budget Justification l 59

SPENT FUEL STORAGE AND TRANSPORTATION 80 69 69 70 60 50 50 46 Action 40 30 19 20 20 20 16 16 16 16 11 10 1 1 2 2 0

FY 2016 Actual FY 2017 Actual FY 2018 FY 2019 Workload Inventory Workload Inventory Target/Planned Target/Planned Workload Inventory Workload Inventory Transport Package Reviews Storage System and Storage Site Reviews Consolidated Interim Storage Facility and Topical Safety Analysis Report Application Reviews Inspections Figure 11: Spent Fuel Storage and Transportation Workload SIGNIFICANT ACCOMPLISHMENTS IN FY 2017 The significant accomplishments within the Spent Fuel and Transportation Business Line include the following:

Approved North Anna Nuclear Generating Station ISFSI amendment to allow storage of high burnup spent fuel in a modified cask as part of U.S. Department of Energy/Electric Power Research Institute-sponsored research and development project.

Completed the review of Waste Control Specialists responses to requests for supplemental information pertaining to its proposed consolidated interim storage facility and completed the acceptance review process. The application was accepted for NRC review and docketed.

Completed 50 transport package design and 11 storage cask and facility license reviews. The agency also conducted 16 inspections of activities related to radioactive material package certificate holders and spent fuel storage cask certificate holders, as well as inspections at ISFSIs to ensure that casks are being designed, fabricated, and used according to approved safety requirements.

Completed eight knowledge management reports for high-level waste disposal, covering topics in the areas of (1) climate and infiltration, (2) regional ground water flow models, (3) a computational tool for performance confirmation, (4) sensor and monitoring techniques for performance confirmation, (5) seismic fragility curves of surface facilities, (6) seismic hazard analysis, (7) soil stability and site response to seismicity, and (8) long-term alloy 22 passivity and actinide sequestration.

FY 2019 Congressional Budget Justification l 60

SPENT FUEL STORAGE AND TRANSPORTATION OTHER INDICATORS LICENSING Percentage of Storage Container and Installation Design Reviews Completed in 13 Months or Less*

(SF-01)

Fiscal Year Target Actual Comment FY 2014 80 94 FY 2015 80 84 FY 2016 80 89 The target was not met as a result of insufficient staffing to support design reviews. Management has developed staffing strategies to FY 2017 80 63 address timeliness.

FY 2018 80 FY 2019 80

• Modified from 12.6 months to 13 months in FY 2018 to simplify the measurement period.

Percentage of Storage Container and Installation Design Reviews Completed in 2 Years or Less (SF-02)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 The NRC developed a revised work prioritization strategy to improve FY 2016 100 95 this metric.

FY 2017 100 100 The target was reduced to allow for a few complex cases that are FY 2018 90 expected to take significantly longer than 2 years to complete.

FY 2019 90 Percentage of Transportation Container Design Reviews Completed in 8 Months or Less* (SF-03)

Fiscal Year Target Actual Comment FY 2014 80 96 FY 2015 80 90 FY 2016 80 93 FY 2017 80 96 FY 2018 80 FY 2019 80

• Modified from 7.4 months to 8 months in FY 2018 to simplify the measurement period.

Percentage of Transportation Container Design Reviews Completed in 2 Years or Less (SF-04)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 The target was reduced to allow for a few complex cases that are FY 2018 90 expected to take significantly longer than 2 years to complete.

FY 2019 90 FY 2019 Congressional Budget Justification l 61

SPENT FUEL STORAGE AND TRANSPORTATION OVERSIGHT Number of Spent Fuel Storage and Transportation Inspections Completed (SF-06)

Fiscal Year Target Actual Comment FY 2014 16 18 FY 2015 16 19 FY 2016 16 16 FY 2017 16 16 FY 2018 16 FY 2019 16 RESEARCH Percentage of Major Milestones for Critical Research Programs Completed On or Before Their Due Date*

(SF-08)

Fiscal Year Target Actual Comment FY 2014 90 N/A FY 2015 90 N/A There were no critical milestones associated with the research activities FY 2016 90 N/A conducted in this business line in FY 2014, FY 2015, and FY 2016.

There were no critical milestones associated with the research FY 2017 90 N/A activities.

FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 N/A

• Critical research programs typically respond to high-priority needs from the Commission and the NRCs licensing organizations. Critical research programs for the highest priority needs are identified at the beginning of the FY.

Combined Score on a Scale of 1 to 5 for the Technical Quality of Agency Research Technical Products*

(SF-09)

Fiscal Year Target Actual Comment FY 2014 3.75 5.0 FY 2015 3.75 5.0 FY 2016 3.75 4.68 FY 2017 3.75 5.0 FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 N/A

• The NRC has developed a process to measure the quality of research products on a 5point scale using surveys of endusers to determine the usability and valueadded of the products. As appropriate, other mechanisms will be developed and added to this process to measure the quality of research products.

FY 2019 Congressional Budget Justification l 62

DECOMMISSIONING AND LOW-LEVEL WASTE DECOMMISSIONING AND LOWLEVEL WASTE Decommissioning and Low-Level Waste by Product Line (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Product Line $M FTE $M FTE $M FTE $M FTE International Activities 0.8 3.9 0.8 4.0 1.2 6.0 0.4 2.0 Licensing 16.2 64.4 15.6 66.0 12.2 49.0 (3.4) (17.0)

Oversight 4.8 24.0 4.8 25.0 5.4 25.0 0.6 0.0 Research 0.3 0.0 0.0 0.0 0.5 1.0 0.5 1.0 Rulemaking 0.8 4.9 1.3 5.0 1.8 9.0 0.5 4.0 Mission Support and Supervisors 2.6 14.6 2.6 15.0 2.6 14.0 0.0 (1.0)

Training 0.7 0.0 0.7 0.0 0.8 0.0 0.1 0.0 Travel 0.6 0.0 0.7 0.0 0.9 0.0 0.2 0.0 Total $26.8 111.8 $26.4 115.0 $25.4 104.0 $(1.0) (11.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

The activities under the Decommissioning and Low Level-Waste (LLW) Business Line include the licensing and oversight of sites undergoing decommissioning and uranium recovery facilities. They also include the oversight of the national LLW management program, and the U.S. Department of Energy (DOE) waste management activities at the Savannah River Site and the Idaho National Laboratory Waste Incidental to Reprocessing (WIR) facilities consistent with the NRCs responsibilities under the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005. Other activities include interfacing with licensees, applicants, Federal and State agencies, the public, and Native American Tribal governments.

Decommissioning is the safe removal of a nuclear facility from service and the reduction of residual radioactivity to a level that permits the termination of the NRC license. The NRC rules for decommissioning establish site release criteria and provide for unrestricted, and under certain conditions, restricted release of a site. The NRC regulates the decommissioning of complex materials and fuel cycle facilities, power reactors, research and test reactors, and uranium recovery facilities, with the ultimate goal of license termination.

FY 2019 Congressional Budget Justification l 63

DECOMMISSIONING AND LOW-LEVEL WASTE Figure 12: Locations of NRC-Regulated Sites Undergoing Decommissioning CHANGES FROM FY 2018 ANNUALIZED CONTINUING RESOLUTION Resources decrease in the Licensing Product Line to reflect the expected decline in workload stemming from Wyomings anticipated transition to Agreement State status in late FY 2018.

Once this agreement has been finalized, the NRC will discontinue its regulatory authority over certain uranium and thorium milling activities and transfer regulatory authority and related licenses to the State of Wyoming. Approximately 70 percent of NRC-licensed uranium recovery facilities are located in the State of Wyoming. Additionally, resources decrease to reflect the expected workload decline with the non-military radium program. These decreases are partially offset by increases for international activities and to support various rulemaking activities, including the Greater-Than-Class-C and Transuranic Waste rulemakings.

Generally, resources budgeted in the Licensing and Oversight Product Lines impact fees for service. All other resources impact annual fees.

MAJOR ACTIVITIES The major activities within the Decommissioning and LLW Business Line include the following:

Support the decommissioning of two research reactors.

Conduct licensing reviews and decommissioning activities for 20 power reactors and the implementation of license termination plans at Humboldt Bay, Zion 1 and 2, and LaCrosse.

FY 2019 Congressional Budget Justification l 64

DECOMMISSIONING AND LOW-LEVEL WASTE Support oversight of the non-military radium program.

Continue to support the licensing and oversight of nine complex materials sites undergoing decommissioning and depleted uranium sites, and the execution of the memorandum of understanding with the U.S. Department of Defense for military, naturally occurring and accelerator-produced radioactive material sites.

Support the licensing and oversight of five private uranium mill sites undergoing decommissioning and 30 decommissioned uranium mill disposal facilities that are under long-term care, surveillance, and maintenance by DOE.

Conduct two major uranium recovery licensing activities in non-Agreement States, two hearings, and oversight and licensing activities for the three remaining licensed facilities (assuming Wyoming becomes an Agreement State).

Support one Agreement State uranium recovery Integrated Materials Performance Evaluation Program (IMPEP) evaluation.

Support the National LLW Program, including developing guidance, providing support for IMPEP evaluations in the LLW area, and responding to inquiries from Agreement States.

Provide oversight of the activities related to WIR, including monitoring activities at the DOE Savannah River Site and the Idaho National Laboratory.

The Rulemaking Center of Expertise will conduct rulemaking activities related to the Decommissioning and LLW Business Line, including rule development, associated guidance development, and environmental reviews.

Conduct research activities to support the application of new technologies at complex sites and analytical tools used in decommissioning reviews.

Support cooperative programs to exchange information with regulatory counterparts bilaterally and multilaterally on decommissioning issues, licensing uranium recovery facilities, and developing regulations for the handling and disposal of LLW and decommissioning of power reactors and other nuclear facilities.

Satisfy international treaty and convention obligations, as well as statutory mandates. This includes the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management.

FY 2019 Congressional Budget Justification l 65

DECOMMISSIONING AND LOW-LEVEL WASTE 12 11 11 10 10 10 8 8 8

LIcensing Actions 6

4 3

2 2

FY 2016 FY 2017* FY 2018* FY 2019*

Uranium Recovery Licensed Facilities Major Uranium Recovering Licensing Actions

• Values provided for FY 2018FY 2019 are projections.

Figure 13: Uranium Recovery Licensed Facilities and Major Licensing Actions 45 39 39 39 40 35 35 30 25 Sites 20 16 15 15 13 10 10 5

FY 2016 FY 2017 FY 2018* FY 2019*

UMTRCA Title I and Title II Sites Complex Materials Sites

• Values provided for FY 2018-FY 2019 are projections.

Figure 14: Uranium Mill Tailings Radiation Control Act of 1978 and Complex Materials Sites FY 2019 Congressional Budget Justification l 66

DECOMMISSIONING AND LOW-LEVEL WASTE 20 19 19 19 19 18 16 14 12 Reactors 10 8

6 5 5 4 4 4

2 FY 2016 FY 2017 FY 2018* FY 2019*

Research and Test Reactors Undergoing Decommissioning Power and Early Demo Reactors Undergoing Decom

• Values provided for FY 2018-FY 2019 are projections.

Figure 15: Research and Test Reactors and Power/Early Demonstration Reactors Undergoing Decommissioning SIGNIFICANT ACCOMPLISHMENTS IN FY 2017 The significant accomplishments within the Decommissioning and LLW Business Line include the following:

Engaged with the State of Wyoming as it prepared its application to become an Agreement State.

Completed the licensing review for AUC LLC Reno Creek uranium in situ recovery (ISR) project in Campbell County, WY, which resulted in the issuance of a license.

Completed the licensing review of a major license amendment for the Uranerz Energy Corporation Nichols Ranch ISR project located in the Powder River Basin of Wyoming.

The issued amendment authorized an expansion of licensed activities into 3.680 acres of adjacent wellfields called the Jane Dough.

Issued an Immediately Effective Order on July 14, 2017, to make Fansteel a co-licensee and to require immediate actions necessary to maintain public health and safety.

Supported the transfer of funds from the letter of credit to the standby trust for the Hematite and Columbia fuel facilities when Westinghouse was unable to renew the letter of credit during its bankruptcy proceeding. This action ensures that sufficient decommissioning funding will be available.

Evaluated radiological conditions at non-military sites potentially contaminated with radium. The staff completed 33 out of a planned 39 site visits to assess radiological conditions at the sites.

Issued a confirmatory order to the Homestake Mining Company (HMC) as a result of alternative dispute resolution related to HMCs compliance with regulatory and license requirements for activities at Grants, New Mexico site.

FY 2019 Congressional Budget Justification l 67

DECOMMISSIONING AND LOW-LEVEL WASTE Issued escalated enforcement action to Cameco Power Resources, Inc., for a Severity Level III problem related to a transportation incident involving radioactive sludge that leaked from a package onto a public highway.

OTHER INDICATORS LICENSING Percentage of Environmental Reviews and Environmental Review Documents Completed as Scheduled (DL-01)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 100 FY 2019 100 Percentage of Time Saved in Completing Safety Evaluation Reports through Use of Presubmission Audits (DL-03)

Fiscal Year Target Actual Comment New indicator in FY FY 2014 2015

• Preliminary target; will undergo further development.

• • Not enough licensing actions for which conducting a presubmission FY 2015 10* No data** audit was feasible.

FY 2016 10 25 FY 2017 10 22 FY 2018 10 In the fourth quarter of FY 2016, the NRC was able to report a 25-percent savings for this metric. Given market conditions and the cost of uranium, the NRC does not have any applications to leverage presubmission audits and therefore believes this indicator has served FY 2019 Discontinued its purpose in showing the value of using presubmission audits.

Percentage of Licensing Actions Completed as Scheduled (DL-05)

Fiscal Year Target Actual Comment FY 2014 Yes Yes In FY 2015, there was an insufficient number of licensing applications FY 2015 Yes NA using pre-submission audits to report on this metric.

The target was changed to a percentage beginning in FY 2016 to FY 2016 90 100 provide a more informative indicator.

FY 2017 90 98 FY 2018 90 FY 2019 90 FY 2019 Congressional Budget Justification l 68

DECOMMISSIONING AND LOW-LEVEL WASTE OVERSIGHT Percentage of Review or Monitoring Plan Activities for WIR That Are Completed as Scheduled (DL-07)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY 2015 FY 2016 FY 2016 80 100 FY 2017 80 100 FY 2018 80 FY 2019 Discontinued RESEARCH Percentage of Major Milestones for Critical Research Programs Completed On or Before Their Due Date*

(DL-08)

Fiscal Year Target Actual Comment FY 2014 90 N/A There were no critical milestones associated with the research activities FY 2015 90 N/A conducted in this business line in FY 2013, FY 2014, FY 2015, and FY 2016 90 N/A FY 2016.

90 There were no critical milestones associated with the research FY 2017 N/A activities.

FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 NA

• Critical research programs typically respond to high-priority needs from the Commission and the NRC's licensing organizations. Critical research programs for the highest priority needs are identified at the beginning of the FY.

Combined Score on a Scale of 1 to 5 for the Technical Quality of Agency Research Technical Products*

(DL-09)

Fiscal Year Target Actual Comment FY 2014 3.75 N/A No research products produced for this business line during FY 2014.

FY 2015 3.75 5.0 FY 2016 3.75 4.75 3.75 There were no critical milestones associated with the research FY 2017 N/A activities.

FY 2018 Discontinued Indicator to be tracked internally.

FY 2019 NA

• The NRC has developed a process to measure the quality of research products on a fivepoint scale using surveys of endusers to determine the usability and valueadded of the products. As appropriate, other mechanisms will be developed and added to this process to measure the quality of research products.

FY 2019 Congressional Budget Justification l 69

HIGH-LEVEL WASTE HIGHLEVEL WASTE High-Level Waste by Product Line (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Product Line $M FTE $M FTE $M FTE $M FTE Licensing 0.9 1.3 0.0 0.0 37.0 85.0 37.0 85.0 Oversight 0.0 0.0 0.0 0.0 0.2 1.0 0.2 1.0 Rulemaking 0.0 0.0 0.0 0.0 1.3 7.0 1.3 7.0 Mission Support and Supervisors 0.0 0.0 0.0 0.0 7.9 29.0 7.9 29.0 Training 0.0 0.0 0.0 0.0 0.4 2.0 0.4 2.0 Travel 0.0 0.0 0.0 0.0 0.9 0.0 0.9 0.0 Total $0.9 1.3 $0.0 0.0 $47.7 124.0 $47.7 124.0

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

The High-Level Waste Business Line supports the NRCs activities involving the proposed Yucca Mountain deep geologic repository for the disposal of spent nuclear fuel and other high-level radioactive waste using appropriations from the Nuclear Waste Fund.

Fiscal year (FY) 2019 resources will support the continuation of the licensing proceeding for the potential authorization to construct a repository. Principal activities would include support to, and restart of, the adjudicatory proceeding, infrastructure activities for facilities and information technology capabilities, rulemakings associated with the geologic repository operations area, and related support activities such as acquisitions, recruitment, and staffing.

CHANGES FROM FY 2018 ANNUALIZED CONTINUING RESOLUTION In FY 2019, resources support continuation of licensing activities for the potential authorization to construct a repository, which includes starting the acquisition process for hearing facility space, as well as the information technology and audiovisual buildout process to support the adjudication; and activities to support prehearing conferences, such as transcripts, physical security, and procurement. Limited appellate and judicial litigation activities are expected.

Resources also support necessary non-adjudicatory activities, particularly allegation and investigation activities, as well as the resumption of rulemakings associated with the geologic repository operations area. Resources also support subject matter experts to support these efforts.

FY 2019 Congressional Budget Justification l 71

HIGH-LEVEL WASTE MAJOR ACTIVITIES The major activities within the High-Level Waste Business Line include the following:

Reinstatement and maintenance of the Licensing Support Network, an electronic database of documents related to the Yucca Mountain licensing proceeding, or a functionally equivalent system.

Prepare for the resumption of the administrative adjudication.

Prepare for and participate in ongoing federal litigation.

Support allegation and investigation activities, as well as continue rulemakings associated with a geologic repository operations area.

FY 2019 Congressional Budget Justification l 72

CORPORATE SUPPORT CORPORATE SUPPORT The NRCs corporate support involves centrally managed activities that are necessary for agency programs to accomplish the agencys mission and achieve goals. These activities include acquisitions, administrative services, financial management, human resource management, information technology (IT) and information management (IM), outreach, policy support, and training.

Corporate Support Budget Authority and Full-Time Equivalents (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Product Line $M FTE $M FTE $M FTE $M FTE Acquisitions 15.6 55.7 14.5 64.0 16.0 56.0 1.5 (8.0)

Administrative Services 98.1 95.0 102.6 109.0 89.0 74.0 (13.6) (35.0)

Financial Management 26.4 102.0 30.7 109.0 32.4 100.0 1.7 (9.0)

Human Resource Management 19.6 51.6 18.2 57.0 17.8 44.0 (0.4) (13.0)

IT/IM Resources 116.9 189.6 101.5 202.0 107.4 173.0 5.9 (29.0)

Outreach 3.8 18.1 3.9 18.0 3.3 13.0 (0.6) (5.0)

Policy Support 21.1 112.3 21.3 139.0 29.3 136.0 8.0 (3.0)

Training 5.2 17.1 5.3 19.0 4.3 13.0 (1.0) (6.0)

Total $306.7 641.3 $298.1 717.0 $299.6 609.0 $1.5 (108.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

The fiscal year (FY) 2019 resources requested for corporate support constitute 31 percent of the agencys total budget and reflect an overall increase of $1.5 million, yet include a decrease of 108 full-time equivalents (FTE), when compared with the FY 2018 Annualized Continuing Resolution (CR). The FY 2019 budget request supports the NRCs commitment to improve effectiveness, efficiency, and accountability, including continuing efforts to modernize IT to increase productivity and security, improve the efficiency and effectiveness of administrative services, develop a workforce for the 21st century, focus on the highest-value work, and improve customer service.

Appendix E, Federal Information Technology Acquisition Reform Act Requirements, contains a complete list of the NRCs major IT investments, including those budgeted in corporate support as well as those budgeted in the other business lines.

CHANGES FROM FY 2018 ANNUALIZED CONTINUING RESOLUTION Resources increase in FY 2019 primarily as a result of investments in IT and an increase in salaries and benefits in FY 2018. IT resource increases include support for IT asset management services, as required by Office of Management and Budget (OMB) Memorandum FY 2019 Congressional Budget Justification l 73

CORPORATE SUPPORT M-16-12, Category Management Policy 16-1: Improving the Acquisition and Management of Common Information Technology: Software Licensing, dated June 2, 2016; the transition to Internet Protocol Version 6 as required by OMB to increase mobility and security while reducing network administration and security costs downstream; and the enterprisewide acquisition system. In addition, the corporate support budget also includes resources for planned renovations to support regional space reductions and to support fees transformation initiatives.

These increases are offset by rent and utility reductions due to a one-time 7-month rent abatement on the Two White Flint North building, which was part of the negotiation for renewal of the building lease; a reduction in rent as a result of a reappraisal of the One White Flint North building; and the release of one additional floor in the Three White Flint North building. The budget request also reflects reduced costs with the transition to a new contract vehicle through which the NRC obtains IT support for its end-user computing, data center and cloud services, and network operation and maintenance; and savings resulting from implementation of more cost-effective shared Federal services. In addition, the budget includes FTE reductions that were identified through a review of corporate offices full-time staff utilization and workload performed as part of the rebaselining of agency resources3, and the standardization and centralization of mission support functions. The FTE reductions are based on efficiencies and current and projected declines in agency workload.

MAJOR ACTIVITIES The major activities within the Corporate Support Business Line include the following:

Contract operations and oversight necessary to ensure that the agency obtains goods and services in an effective and efficient manner consistent with mission needs, sound business practices, agency guidance, and Federal regulations. This includes the enterprisewide acquisition system and procurement and commodity management activities, including strategic sourcing activities.

Rent and utilities for NRC Headquarters, regions, and the Technical Training Center, offsite and public meeting space requests, building operation and maintenance services, interior upkeep and building alterations, custodial services, labor services, office furniture, property asset inventory management, vehicle fleet management, transit subsidies, print and publication services, supplies, editorial services, graphic design services, postage and mail equipment, mail and courier services, multimedia services, security services, drug testing, security background investigations, security equipment, and insider threat analyses.

Maintenance and operation of the agencys financial systems, budget development and execution, agency financial services, accounting and reporting activities, development of the annual fee rule, and administration of the internal control program.

Human resource management activities, work-life services, employee and labor relations, enhanced strategic workforce planning, and permanent change-of-station, including resident inspector moves.

Management of the IT/IM portfolio including:

(1) maintaining cost-effective enterprise solutions and secure infrastructure technologies and services to enable the agencys mission and corporate functions, (2) promoting mobility to respond to mission needs, 3

The review of corporate offices FTE utilization and workload was proposed in SECY-16-0035, Additional Re-Baselining Products, (Agencywide Documents and Access Management Systems Accession No. ML16077A184), , Longer-Term Efficiencies.

FY 2019 Congressional Budget Justification l 74

CORPORATE SUPPORT (3) ensuring effective management and appropriate dissemination of physical and electronic information and records, (4) ensuring transparency and promote public involvement in the agencys regulatory activities, (5) providing public meeting support and support for the Public Document Room and Technical Library, (6) supporting essential information collections and implementation of the Freedom of Information Act and Privacy Act, (7) developing and implementing cybersecurity policies/standards to mitigate cybersecurity vulnerabilities, threats, and incidents, (8) preventing unauthorized disclosure of NRC information and protect classified and controlled unclassified information, (9) supporting Enterprise Architecture, capital planning, IT governance, and other functions of the Chief Information Officer, and (10) making targeted investments in transformational activities to yield future cost savings or avoidance, such as consolidating nontiered data centers, increasing data center facility utilization, and implementing a data center infrastructure management solution that provides temperature and power monitoring as mandated by Executive Order 13693, Planning for Federal Sustainability in the Next Decade, dated March 19, 2015.

Maintaining the civil rights complaints process; promoting affirmative employment, diversity, and inclusion; ensuring compliance with small business laws; conducting business development assistance and providing the maximum practicable prime and subcontract opportunities for small businesses; and continuing efforts to implement the NRCs Outreach and Compliance Coordination Program, in accordance with applicable Federal civil rights statutes and NRC regulations.

Agencywide policy formulation and guidance, strategic planning, performance management, legal advice and appellate adjudicatory support to the Commission, independent evaluations of agency programs and implementation of Commission policy directives, advice and assistance to the Commission on Congressional and protocol issues and public affairs activities, management and oversight of agency programs, interactions on matters of international nuclear safety and security issues and developments, and operation of the Commissioners offices.

The agencys training infrastructure, including operation of the Professional Development Center, agency leadership programs such as the Senior Executive Service Career Development Program, organizational development, training systems, and corporate-related external training. Resources for technical-role competency modeling, mission-related qualification and non-qualification training, simulator training and maintenance, and mission-related external training are budgeted in the programmatic business lines that they directly support.

CORPORATE INDIRECT Indirect support for corporate activities is included within the budgets for individual corporate support product lines. Corporate indirect includes supervisory support, administrative and other nonsupervisory support staff, and travel.

FY 2019 Congressional Budget Justification l 75

CORPORATE SUPPORT Corporate Indirect and Travel by Product Line (Dollars in Millions)

FY 2018 FY 2019 Changes from Annualized CR Request FY 2018 Product Line $M FTE $M FTE $M FTE Acquisitions 13.5 57.0 14.9 50.0 1.4 (7.0)

Corporate Indirect 1.1 7.0 1.1 6.0 0.0 (1.0)

Travel 0.0 0.0 0.0 0.0 0.0 0.0 Acquisitions Total 14.5 64.0 16.0 56.0 1.5 (8.0)

Administrative Services 98.1 82.0 85.6 57.0 (12.5) (25.0)

Corporate Indirect 4.5 27.0 3.4 17.0 (1.1) (10.0)

Travel 0.0 0.0 0.0 0.0 0.0 0.0 Administrative Services Total 102.6 109.0 89.0 74.0 (13.6) (35.0)

Financial Management 27.2 88.0 28.5 80.0 1.3 (8.0)

Corporate Indirect 3.4 21.0 3.8 20.0 0.4 (1.0)

Travel 0.1 0.0 0.0 0.0 (0.1) 0.0 Financial Management Total 30.7 109.0 32.4 100.0 1.7 (9.0)

Human Resource Management 16.2 46.0 16.2 36.0 0.0 (10.0)

Corporate Indirect 1.8 11.0 1.6 8.0 (0.2) (3.0)

Travel 0.1 0.0 0.1 0.0 0.0 0.0 Human Resource Management Total 18.2 57.0 17.8 44.0 (0.4) (13.0)

IT/IM Resources 96.3 171.0 103.3 153.0 7.0 (18.0)

Corporate Indirect 5.2 31.0 3.9 20.0 (1.3) (11.0)

Travel 0.1 0.0 0.1 0.0 0.0 0.0 IT/IM Resources Total 101.5 202.0 107.4 173.0 5.9 (29.0)

Outreach 3.2 14.0 2.5 9.0 (0.7) (5.0)

Corporate Indirect 0.7 4.0 0.8 4.0 0.1 0.0 Travel 0.0 0.0 0.0 0.0 0.0 0.0 Outreach Total 3.9 18.0 3.3 13.0 (0.6) (5.0)

Policy Support 14.9 92.0 22.4 106.0 7.5 14.0 Corporate Indirect 5.5 47.0 5.8 30.0 0.3 (17.0)

FY 2019 Congressional Budget Justification l 76

CORPORATE SUPPORT Corporate Indirect and Travel by Product Line (Dollars in Millions)

FY 2018 FY 2019 Changes from Annualized CR Request FY 2018 Product Line $M FTE $M FTE $M FTE Travel 0.9 0.0 1.1 0.0 0.2 0.0 Policy Support Total 21.3 139.0 29.3 136.0 8.0 (3.0)

Training 3.9 12.0 3.1 8.0 (0.8) (4.0)

Corporate Indirect 1.1 7.0 0.9 5.0 (0.2) (2.0)

Travel 0.3 0.0 0.3 0.0 0.0 0.0 Training Total 5.3 19.0 4.3 13.0 (1.0) (6.0)

Total $298.1 717.0 $299.6 609.0 $1.5 (108.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

SIGNIFICANT ACCOMPLISHMENTS IN FY 2017 The significant accomplishments within the Corporate Support Business Line include the following:

Awarded the NRC Global Infrastructure and Development Acquisition contract, an innovative approach to NRCs enterprisewide strategic IT planning and management program.

Received an A+ Small Business grade. This marked the fifth consecutive year that the NRC has been recognized by the Small Business Administration for meeting its goal, but the first A+ for the agency.

Began the development of, and preparation to implement, an enhanced approach to strategic workforce planning to better position the agency for the future.

Deployed a centralized rulemaking tracking and reporting tool in March 2017. The Web-based system provides stakeholders with consistent, accurate, and up-to-date information on planned NRC rules and petitions for rulemaking.

Completed 14 of 14 fees transformation improvement tasks for FY 2017. In addition, three tasks for FY 2018 were accelerated and completed.

Implemented the requirements of the Cost Accountability and Management Project, resulting in improvements to the agencys time and labor reporting data structure, systems architecture, and internal control governance in support of license fee billing.

Implemented all the requirements of the Digital Accountability and Transparency Act of 2014 (DATA Act). Received an award from the U.S. Department of the Treasury for effectively and efficiently planning and implementing the reporting requirements laid out by the DATA Act Information Model Schema and for demonstrating technical expertise and a commonsense approach in the agencys implementation.

As part of the Data Center Optimization Initiative, migrated seven nontiered data centers into the tiered data center.

FY 2019 Congressional Budget Justification l 77

CORPORATE SUPPORT Deployed the Master Data Management program on October 1, 2017. This highly integrated program provides an efficient and effective way to share key business data which will lead to better reporting and decisionmaking and more transparent licensee invoices.

Improved the NRCs cybersecurity posture through enhanced monitoring capabilities, improved software patching, and a reduction in system vulnerabilities.

OTHER INDICATORS ACQUISITION Percentage of Eligible Service Contracting Dollars (Contracts Over $25,000) That Use PerformanceBased Contracting Techniques during the Fiscal Year (CS-01)

Fiscal Year Target Actual Comment FY 2014 65 64 FY 2015 65 68 The annual metric for performance-based contracting ran 1.8 percent less than the annual target, which is within the margin of FY 2016 65 63.2 error.

Many contracts awarded by NRC were not suitable to be FY 2017 65 61.78 performance-based contracts.

FY 2018 Discontinued Not all services must be awarded as performance-based contracts.

Therefore, this indicator does not provide useful information on the effectiveness of the NRCs acquisition organization and it is being FY 2019 NA discontinued.

Percentage of Required Synopses for Acquisitions That Are Posted on the Governmentwide PointofEntry Web Site (www.FedBizOpps.gov) during the Fiscal Year (CS-02)

Fiscal Year Target Actual Comment FY 2014 100 100 FY 2015 100 100 FY 2016 100 100 FY 2017 100 100 FY 2018 Discontinued The Federal Acquisition Regulation requires the posting of synopses on FedBizOpps for procurements over a certain dollar value. Posting required synopses has never been a challenge at the NRC, and the goal of 100 percent has been met every year.

Because this indicator does not provide useful information on the effectiveness of the NRCs acquisition organization, it is being FY 2019 NA discontinued.

Percentage of Spend Under Management* (CS-03)

Fiscal Year Target Actual Comment FY 2016 FY 2017 FY 2018 FY 2019 38 New measure for FY 2019.

• Spend under management is a key measure of an agencys use of smart buying practices, such as strong strategic leadership and oversight, and the collection and sharing of critical data, including terms and conditions, performance, and prices paid.

FY 2019 Congressional Budget Justification l 78

CORPORATE SUPPORT ADMINISTRATIVE SERVICES Percentage of Time Physical Security Responds to Incidents That Result in Harm to Occupants, Damage to NRC Property, or Loss of Protected Information within 15 Minutes of Notification (CS-04)

Fiscal Year Target Actual Comment FY 2014 New indicator in FY FY 2015 2016 FY 2016 90 100 FY 2017 90 100 FY 2018 90 This indicator is tracked by alarm response logs that the security guards maintain to ensure that the requirement to respond to an alarm in specific agency rooms, such as secure or other limited access areas, within 15 minutes of an alarm is met. Given this level of operational FY 2019 Discontinued detail, this will now be maintained as an internal agency indicator.

Percentage of NRC-Leased Space Compared to the Agencys FY 2012 Freeze the Footprint Baseline (1,170,242 Usable Square Feet) (CS-05)

Fiscal Year Target Actual Comment FY 2014 N/A FY 2015 N/A FY 2016 N/A FY 2017 N/A FY 2018 N/A FY 2019 96 New indicator for FY 2019.

FINANCIAL MANAGEMENT Percentage of Collections Achieved When Compared with Projected Collections (CS-06)

Fiscal Year Target Actual Comment Contributing factors to missing the target include a fee policy written to collect 98 percent of the 90-percent target and a final fee rule that did not become effective until the end of August, leaving no time to recover FY 2014 100 93.6 from licensee delays in the payment of fees.

FY 2015 100 99.6 FY 2016 100 98.4 FY 2017 100 98.14 The target was reduced to 98 percent to comply with the regulatory requirement to collect approximately 90 percent of the agencys FY 2018 >98 appropriation.

FY 2019 >98 Percentage of Annual Billings That Are Past Due Accounts Receivable (CS-07)

Fiscal Year Target Actual Comment FY 2014 1 1 FY 2015 1 1 FY 2016 1 0.7 The target was not met due to $3,720,089 in invoices that were only two days overdue, and $966,210 in invoices protected by the FY 2017 1 1.63 Westinghouse bankruptcy filing.

FY 2018 <1 FY 2019 <1 FY 2019 Congressional Budget Justification l 79

CORPORATE SUPPORT Percentage of Nonsalary Payments Made Electronically and Accurately within Established Schedule (CS-08)

Fiscal Year Target Actual Comment FY 2014 98 98 FY 2015 98 98 FY 2016 98 98 FY 2017 98 99.6 FY 2018 98 FY 2019 98 INFORMATION TECHNOLOGY/INFORMATION MANAGEMENT Number of Targets Met Out of Four for Key Information Dissemination Channels (Freedom of Information Act, Public Meetings Notices, and Public Document Release Timeframe)* (CS-09)

Fiscal Year Target Actual Comment FY 2014 3 4 FY 2015 3 3 FY 2016 3 4 FY 2017 4 5 FY 2018 4 Discontinued in FY 2019 as most of the targets associated with this indicator are either tracked at the agency level or subject to other external reporting, or both. As such, this indicator will continue to be tracked internally to assure that the multiple dissemination targets are FY 2019 Discontinued being met.

• Targets: (1) Percentage of time the NRC responds to Freedom of Information Act requests within 20 working days (75 percent), (2) percentage of Category 1, 2, and 3 meetings on regulatory issues for which the NRC posted a meeting notice on the public meeting notice Web site at least 10 days in advance of the meeting (90 percent),

(3) percentage of nonsensitive, unclassified regulatory documents generated by the NRC and sent to the agency's Document Processing Center that are released to the public by the sixth working day after the date of the document (90 percent), and (4) percentage of nonsensitive, unclassified regulatory documents received by the NRC that are released to the public by the sixth working day after the document is added to the Agencywide Documents Access and Management System main library (90 percent).

The NRC's Score on the Annual American Customer Satisfaction Index for Federal Web Sites (CS-10)

Fiscal Year Target Actual Comment FY 2014 73 76 FY 2015 73 79 FY 2016 73 81 FY 2017 73 78 FY 2018 73 FY 2019 73 FY 2019 Congressional Budget Justification l 80

CORPORATE SUPPORT Percentage of Agency Investments That Are Green per OMBs IT Dashboard (CS-11)

Fiscal Year Target Actual Comment The OMB Exhibit 300 score indicator IT Investment Management Average Score on a Scale of 110 for All NRC IT Investments on the OMB IT Dashboard, was replaced with Percentage of Agency Target Investments That Are Green per OMBs IT Dashboard, beginning in FY 2014 7.5 met FY 2015.

Target FY 2015 80 met FY 2016 80 90 FY 2017 80 84 FY 2018 80 Replaced for FY 2019 by indicator CS-13, which provides more FY 2019 Discontinued quantitative information.

Satisfactory Rating Achieved for the NRC's Cybersecurity Program Effectiveness Based upon the Annual Inspector General Federal Information Security Management Act (FISMA) Audit (CS-12)

Fiscal Year Target Actual Comment OIG did not report any material weaknesses in its evaluation report FY 2014 Yes Yes (OIG-15-A-02).

OIG did not report any material weaknesses in its evaluation report FY 2015 Yes Yes (OIG-16-A-01)

OIG did not report any material weaknesses in its evaluation report FY 2016 Yes Yes (OIG-17-A-01)

FY 2017 Yes Yes FY 2018 Discontinued This indicator does not measure the impact or effectiveness of the cybersecurity program. The Cybersecurity Performance Index will be substituted, which will demonstrate the change in cybersecurity posture year over year, with results reported at the agencys FY 2019 NA Quarterly Performance Reviews.

Percentage of Projects within Schedule and within Budget Based on Information Collected for Major IT Investments Reported to the OMB IT Dashboard (CS-13)

Fiscal Year Target Actual Comment

>= 80%

projects on schedule and on FY 2019 budget This is a new indicator for FY 2019 and replaces CS-11.

FY 2019 Congressional Budget Justification l 81

CORPORATE SUPPORT HUMAN RESOURCE MANAGEMENT The NRCs Annual Average Rank among Top Agencies across the U.S. Office of Personnel Management (OPM) Human Capital Indices on the Federal Employee Viewpoint Survey (FEVS) (CS-14)

Fiscal Year Target Actual Comment FY 2015 5 4 Based on the 2016 FEVS results from OPM, the NRC was ranked seventh overall. To ensure an engaged workforce, the NRC is implementing an agencywide action plan aimed at cultivating an NRC culture that fosters a greater climate of trust, as well as office-specific plans. Action leads have been encouraged to FY 2016 5 7 revise plans, as needed, in accordance with current FEVS results.

FY 2017 5 9 Discontinued and replaced with indicator CS-15.

FY 2018 N/A FY 2019 N/A The NRCs Averaged Index Scores for Employee Engagement, Global Satisfaction, and New IQ (Diversity and Inclusion) Remain at Least 7.5% Above the Federal Employee Viewpoint Survey (FEVS)

Governmentwide Average Score (CS-15)

Fiscal Year Target Actual Comment FY 2015 N/A FY 2016 N/A FY 2017 N/A FY 2018 7.5 New indicator for FY 2018.

FY 2019 7.5 Percentage of Key Human Capital Indicators Met* (CS-16)

Fiscal Year Target Actual Comment FY 2015 75 75 FY 2016 75 75 FY 2017 75 75 FY 2018 75 FY 2019 75

• The specific subindicators that will be included under this indicator will be evaluated and updated on an annual basis to meet agency needs. Examples may include retention of professional hires within 3 years, FEVS participation, percentage of veterans and employees with targeted disabilities hired, percentage of attrition, iLearn Training Support user satisfaction, and percentage of participants completing development programs.

FY 2019 Congressional Budget Justification l 82

INTEGRATED UNIVERSITY PROGRAM INTEGRATED UNIVERSITY PROGRAM Integrated University Program (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Business Line $M FTE $M FTE $M FTE $M FTE Integrated University Program $15.0 0.0 $14.9 0.0 $0.0 0.0 $(14.9) 0.0 Total $15.0 0.0 $14.9 0.0 $0.0 0.0 $(14.9) 0.0

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

The Integrated University Program provides grants to academic institutions to support education in nuclear science and engineering and related fields. The NRC has provided funding for university research and development as well as for scholarships, fellowships, and faculty development. In addition, the agency strives to include minority-serving institutions as part of the program through the competitive grant selection process.

CHANGES FROM FY 2018 ANNUALIZED CONTINUING RESOLUTION Integrated University Program resources were not requested in the FY 2018 Presidents Budget.

SIGNIFICANT ACCOMPLISHMENTS IN FY 2017 The NRC awarded 46 grants totaling $15 million in grants to 35 academic institutions for scholarships, fellowships, and faculty development in 22 states and Puerto Rico, including minority serving institutions.

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ANNUAL PERFORMANCE PLAN ANNUAL PERFORMANCE PLAN The NRC will publish its strategic plan for fiscal years (FYs) 2018-2022 in February 2018. The plan will list the agencys strategic goals and their associated objectives. This chapter of the NRCs Performance Budget provides the performance goals and performance indicators and criteria associated with the upcoming strategic plan.

The Government Performance and Results Act (GPRA) Modernization Act of 2010 requires a more integrated framework for planning and performance management that demonstrates a governance structure showing better connection of plans, programs, and performance information in the Congressional Budget Justification. More specifically, the law requires an agency to describe how the performance goals contained in its performance plan contribute to the goals and objectives established in the agencys strategic plan. These goals and objectives are reflected in the performance indicators in this section.4 The NRCs mission is to license and regulate the Nations civilian use of radioactive materials to provide reasonable assurance of adequate protection of public health and safety and to promote the common defense and security and to protect the environment. Therefore, the trends for progress on the agencys strategic goals and objectives are to be at either zero or very low levels. The agency works to prevent or minimize the outcomes tracked by the safety and security performance indicators.

FY 2019 Strategic Goals Goal 1: Safety: Ensure the safe use of radioactive materials.

Safety Objective 1: Prevent, mitigate, and respond to accidents and ensure radiation safety.

Goal 2: Security: Ensure the secure use of radioactive materials.

Security Objective 1: Ensure protection of nuclear facilities and radioactive materials.

Security Objective 2: Ensure protection of classified and Controlled Unclassified Information.

4 On July 20, 2011, the Office of Management and Budget exempted the NRC from the GPRA Modernization Act of 2010 requirement for establishing agency or cross-agency priority goals because of the NRCs statutory mission to be an independent regulator of the civilian use of radioactive materials. Thus, no such goals are included in this narrative.

FY 2019 Congressional Budget Justification l 85

ANNUAL PERFORMANCE PLAN RELATING RESOURCES TO GOALS The following table shows the alignment of the NRCs fully costed Nuclear Reactor Safety Program and Nuclear Materials and Waste Safety Program with the safety and security goals.

The full cost includes an allocation of the agencys infrastructure and support costs to specific programs.

Alignment of Resources to NRC Goals (Dollars in Millions)

(Excludes Office of the Inspector General)

FY 2018 FY 2019 Annualized CR Request Major Programs Safety Security Total Safety Security Total Nuclear Reactor Safety 662.2 47.5 709.8 680.4 29.7 710.1 Nuclear Materials and Waste Safety 183.2 6.0 189.2 225.8 22.2 248.0 Total $845.5 $53.5 $898.9 $906.2 $51.9 $958.1

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

PERFORMANCE INDICATORS: FY 2018-FY 2022 The following performance indicators were developed in conjunction with the development of the agencys FY 2018-2022 Strategic Plan.

Safety Objective 1: Prevent, mitigate, and respond to accidents and ensure radiation safety.

Performance Goal 1: Prevent radiation exposures that significantly exceed regulatory limits.

Performance Indicator: Number of radiation exposures that meet or exceed Abnormal Occurrences (AO) Criteria I.A.1 (unintended radiation exposure to an adult), I.A.2 (unintended radiation exposure to a minor), or I.A.3 (radiation exposure that has resulted in unintended permanent functional damage to an organ or physiological system)5 Timeframe: Annual Business Line FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Operating Reactors Target 0 0 0 0 0 Operating Reactors Actual 0 0 0 New Reactors Target 0 0 0 0 0 New Reactors Actual 0 0 0 Fuel Facilities Target 0 0 0 0 0 Fuel Facilities Actual 0 0 0 Decommissioning and Low-Level Target 0 0 0 0 0 Waste 5 All references to the AO criteria in this section refer to the criteria approved by the Commission in the Staff Requirements Memorandum to SECY-17-0019, Final Revision to Policy Statement on Abnormal Occurrence Reporting Criteria.

FY 2019 Congressional Budget Justification l 86

ANNUAL PERFORMANCE PLAN Business Line FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Decommissioning and Low-Level Actual 0 0 0 Waste Spent Fuel Storage and Target 0 0 0 0 0 Transportation Spent Fuel Storage and Actual 0 0 0 Transportation Nuclear Materials Users Target <3 <3 <3 <3 <3 Nuclear Materials Users Actual 1* 2 0**

• Reported in the FY 2017 Congressional Budget Justification as 2 due to one event previously labeled as an AO reclassified as not meeting the AO threshold upon further investigation.

• • Two events are pending inspections and evaluation of results.

Performance Goal 2: Prevent releases of radioactive materials that significantly exceed regulatory limits.

Performance Indicator: Number of releases of radioactive materials that meet or exceed AO Criterion I.B (discharge or dispersal of radioactive material from its intended place of confinement)

Timeframe: Annual Business Line FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Operating Reactors Target 0 0 0 0 0 Operating Reactors Actual 0 0 0 New Reactors Target 0 0 0 0 0 New Reactors Actual 0 0 0 Fuel Facilities Target 0 0 0 0 0 Fuel Facilities Actual 0 0 0 Decommissioning and Low-Level Target 0 0 0 0 0 Waste Decommissioning and Low-Level Actual 0 0 0 Waste Spent Fuel Storage and Target 0 0 0 0 0 Transportation Spent Fuel Storage and Actual 0 0 0 Transportation Nuclear Materials Users Target 0 0 0 0 0 Nuclear Materials Users Actual 0 0 0 Performance Goal 3: Prevent the occurrence of any inadvertent criticality events.

Performance Indicator: Number of instances of unintended nuclear chain reactions involving NRC-licensed radioactive materials Timeframe: Annual Business Line FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Operating Reactors Target 0 0 0 0 0 Operating Reactors Actual 0 0 0 Fuel Facilities Target 0 0 0 0 0 Fuel Facilities Actual 0 0 0 Decommissioning and Low-Level Target 0 0 0 0 0 Waste Decommissioning and Low-Level Actual 0 0 0 Waste Performance Goal 4: Prevent accident precursors and reductions of safety margins at commercial nuclear power plants (operating or under construction) that are of high safety significance.

FY 2019 Congressional Budget Justification l 87

ANNUAL PERFORMANCE PLAN Performance Indicator: Number of malfunctions, deficiencies, events, or conditions at commercial nuclear power plants (operating or under construction) that meet or exceed AO Criteria II.A-II.E (commercial nuclear power plant licensees)

Timeframe: Annual Business Line FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Operating Reactors Target 0 0 0 0 0 Operating Reactors Actual 0 0 0 New Reactors Target 0 0 0 0 0 New Reactors Actual 0 0 0 Performance Goal 5: Prevent accident precursors and reductions of safety margins at nonreactor facilities or during transportation of nuclear materials that are of high safety significance.

Performance Indicator: Number of malfunctions, deficiencies, events, or conditions at nonreactor facilities or during transportation of nuclear materials that meet or exceed AO Criteria III.A or III.B (events at facilities other than nuclear power plants and all transportation events)

Timeframe: Annual Business Line FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Fuel Facilities Target 0 0 0 0 0 Fuel Facilities Actual 0 1* 0 Decommissioning and Low-Level Target 0 0 0 0 0 Waste Decommissioning and Low-Level Actual 0 0 0 Waste Spent Fuel Storage and Target 0 0 0 0 0 Transportation Spent Fuel Storage and Actual 0 0 0 Transportation

• Reported in the FY 2018 Congressional Budget Justification. As referenced in NUREG-0090 Volume 39, Report to Congress on Abnormal Occurrences FY 2016 (ADAMS Accession No. ML17103A289), there was an event at the Westinghouse Columbia Fuel Fabrication Facility, Columbia, SC (NRC16-03).

Security Objective 1: Ensure protection of nuclear facilities and radioactive materials Performance Goal 1: Prevent sabotage, theft, diversion, or loss of risk-significant quantities of radioactive material.

Performance Indicator: Number of instances of sabotage, theft, diversion, or loss of risk-significant quantities of radioactive material that meet or exceed AO Criteria I.C.1 (stolen, abandoned, or unrecovered lost),

I.C.2 (radiological sabotage), and Criterion I.C.3 (substantiated case of actual theft, diversion, or loss of a formula quantity of special nuclear material (SNM) or inventory discrepancy)

Timeframe: Annual Business Line FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 All Business Lines Target 0 0 0 0 0, All Business Lines Actual 0 0 0 FY 2019 Congressional Budget Justification l 88

ANNUAL PERFORMANCE PLAN Performance Goal 2: Prevent substantial breakdowns of physical security, cyber security, or material control and accountability.

Performance Indicator: Number of substantial breakdowns of physical security, cyber security, or material control and accountability that meet or exceed AO Criterion I.C.4 (substantial breakdown of physical security, cyber security, or material control and accountability) and AO Criterion I.C.3 (substantiated case of actual theft, diversion, or loss of a formula quantity of SNM or an inventory discrepancy)

Timeframe: Annual Business Line FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 All Business Lines Target 1 1 1 1 1 All Business Lines Actual 0 0 0 Security Objective 2: Ensure protection of classified and Controlled Unclassified Information Performance Goal 3: Prevent significant unauthorized disclosures of classified or Safeguards Information.

Performance Indicator: Number of significant unauthorized disclosures of classified or Safeguards Information by licensees as defined by AO Criterion I.C.5 (significant unauthorized disclosures of classified information or Safeguards Information) and by NRC employees or contractors, as defined by NRC internal criteria Timeframe: Annual Business Line FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 All Business Lines Target 0 0 0 0 0 All Business Lines Actual 0 0 0 VERIFICATION AND VALIDATION OF PERFORMANCE INDICATORS Goal 1: Safety: Ensure the safe use of radioactive materials.

Nuclear Reactor Safety Safety Objective 1: Prevent, mitigate, and respond to accidents and ensure radiation safety.

Performance Indicators:

FY 2015-2019: Performance Goal 1: Number of radiation exposures that meet or exceed AO Criteria I.A.1 (unintended radiation exposure to an adult), I.A.2 (unintended radiation exposure to a minor), or I.A.3 (radiation exposure that has resulted in unintended permanent functional damage to an organ or physiological system)

Reactor Safety Target: Zero Verification: Licensees report overexposures through the Licensee Event Report (LER) process, which are then entered into a searchable FY 2019 Congressional Budget Justification l 89

ANNUAL PERFORMANCE PLAN database. The database is used to identify those LERs that report overexposures. NRC resident inspectors stationed at each nuclear power plant provide a high degree of assurance that all events meeting reporting criteria are reported to the NRC. In addition, the NRC conducts inspections if there is any indication that an exposure exceeded, or could have exceeded, a regulatory limit. Finally, areas of the facility that may be subject to radiation contamination have monitors that record radiation levels. These monitors would immediately reveal any instances in which high levels of radiation exposure occurred.

Validation: Given the nature of the process of using radioactive materials to generate power, overexposure to radiation is a potential danger from the operation of nuclear power plants. Such exposure to radiation in excess of the applicable regulatory limits may potentially occur through either a nuclear accident or other malfunctions at the plant. Consequently, tracking the number of overexposures that occur at nuclear reactors is an important indicator of the degree to which safety is being maintained.

FY 2015-2019: Performance Goal 2: Number of releases of radioactive materials that meet or exceed AO Criterion I.B (discharge or dispersal of radioactive material from its intended place of confinement)

Reactor Safety Target: Zero Verification: Licensees report environmental releases of radioactive materials that are in excess of regulations or license conditions through the LER process, which are entered into a searchable database.

The database is used to identify those LERs reporting releases, and the number of reported releases is then applied to this indicator. The NRC also conducts periodic inspections of licensees to ensure that they properly monitor and control releases to the environment through effluent pathways. In addition, onsite monitors would record any instances in which a plant releases radiation into the environment. If the inspections or the monitors reveal any indication that an accident or inadvertent release has occurred, the NRC conducts follow-up inspections.

Validation: The generation of nuclear power creates radioactive materials that are released into the environment in a controlled manner.

These radioactive discharges are subject to regulatory controls that limit the amount discharged and the resultant dose to members of the public. Consequently, the NRC tracks all releases of radioactive materials in excess of regulatory limits as a performance indicator because large releases in excess of regulatory limits have the potential to endanger public safety or harm the environment. The NRC inspects every nuclear power plant for compliance with regulatory requirements and specific license conditions related to radiological effluent releases. The inspection program includes enforcement actions for violations of the regulations or license conditions, based on the severity of the FY 2019 Congressional Budget Justification l 90

ANNUAL PERFORMANCE PLAN event. This performance indicator includes the public dose limits in 10 CFR Part 20, Standards for Protection against Radiation.

FY 2015-2019: Performance Goal 3: Number of instances of unintended nuclear chain reactions involving NRC-licensed radioactive materials Reactor Safety Target: Zero Verification: An accidental criticality is defined in 10 CFR 70.52(a). Each NRC office reviews event documents for its specific program area to identify events as potential AOs.

The program office or regional AO coordinators will assess an event to determine if it meets the AO criteria. If an event meets the AO criteria, the program office or regional AO coordinator will develop a potential AO event description. The potential AO event description will include the applicable AO criteria and contain the information specified in Section 208 of the Energy Reorganization Act of 1974, such as the nature and probable consequences of the event. The AO coordinator in the NRCs Office of Nuclear Regulatory Research coordinates with the program office and regional AO coordinators regarding incidents and events, identified as potential AOs that are receiving interest from the Executive Director for Operations (EDO).

Validation: The agency is required to submit a Report to Congress on Abnormal Occurrences each FY for those events that, by Commission determination, meet the AO criteria. These AO criteria have been developed and revised over several decades, with extensive review by both the Commission and the public. In SECY-95-083, Revised Abnormal Occurrence Criteria, the staff described the basis of the AO criteria as follows:

The AO reporting policy has been developed to comply with the legislative intent of Section 208 of the Energy Reorganization Act of 1974, as amended, to keep Congress and the public informed of unscheduled incidents or events which the Commission considers significant from the standpoint of public health and safety.The thresholds are generally above the normal level of reporting events by licensees to NRC to exclude those events which involve some variance from regulatory limits, but are not significant enough from the standpoint of public health and safety to be reported to Congress.

For each event that meets the AO criteria, the NRC includes in the report a description of the incident or event, as well as any action taken to prevent recurrence. Such actions include those taken by licensees, as well as more programmatic actions deemed necessary by the Commission to prevent recurrence across a class(es) of licensees. Establishing performance indicators at the threshold levels described by the AO criteria is appropriate and consistent with the principle that the NRCs regulatory processes (e.g., licensing, oversight, enforcement) are FY 2019 Congressional Budget Justification l 91

ANNUAL PERFORMANCE PLAN adequate to address a wide scope of infractions against regulatory requirements and do not generally warrant a focused reevaluation of the programs associated with those processes for every infraction. Therefore, only significant deviations from the regulatory requirements or unacceptable frequencies of occurrence of such deviations should be indicators of the need to reevaluate regulatory strategies and programs. This principle has been central to the staffs selection of performance goals and performance indicator thresholds for determining whether the NRCs performance in reasonably ensuring the safe and secure use of radioactive material has been adequate.

FY 2015-2019: Performance Goal 4: Number of malfunctions, deficiencies, events, or conditions at commercial nuclear power plants (operating or under construction) that meet or exceed AO Criteria II.A-II.E (commercial nuclear power plant licensees)

Reactor Safety Target: Less than or equal to three Verification: The data for this performance indicator are collected in two ways as part of the NRCs reactor oversight process (ROP). NRC inspectors report inspection findings at a minimum on a quarterly basis. Inspectors use formal detailed inspection procedures to review plant operations and maintenance. NRC managers review inspection findings to assess their significance as part of the ROPs significance determination process. Licensees collect the data for performance indicators and submit them to the NRC quarterly. The significance of the data is determined by thresholds for each indicator. The NRC conducts inspections of licensee processes for collecting and submitting the data to ensure completeness, accuracy, consistency, timeliness, and validity.

The NRC enhances the quality of its inspections through inspector feedback and periodic reviews of inspections results.

The NRC inspectors are trained through a rigorous qualification program. The quality of performance indicators is improved through continuous feedback from licensees and inspectors that is incorporated into guidance documents. The NRC publishes the inspection findings and performance indicators on the agencys Web site (http://nrr10.nrc.gov/ope-info-gateway/insp-findings-index.html) and incorporates feedback received from all stakeholders, as appropriate.

Validation: The inspection findings and performance indicators that the ROP uses cover a broad range of plant operations and maintenance.

NRC managers review significant issues that are identified, and inspectors conduct supplemental inspections of selected aspects of plant operations, as appropriate. Plants that are identified as having performance issues, as well as a self-assessment of the ROP, are reviewed by senior agency managers on an annual basis, and the results are reported to the Commission.

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ANNUAL PERFORMANCE PLAN Nuclear Materials and Waste Safety Safety Objective 1: Prevent, mitigate, and respond to accidents and ensure radiation safety.

Performance Indicators:

FY 2015-2019: Performance Goal 1: Number of radiation exposures that meet or exceed AO Criteria I.A.1 (unintended radiation exposure to an adult), I.A.2 (unintended radiation exposure to a minor), or I.A.3 (radiation exposure that has resulted in unintended permanent functional damage to an organ or physiological system)

Materials Safety Less than or equal to three Target:

Waste Safety Target: Zero Verification: This performance indicator includes any event involving licensed radioactive materials that results in significant radiation exposures to members of the public or occupational workers that exceed the dose limits in the AO reporting criteria. Because of the extremely high doses used during medical applications of radioactive materials, it is also appropriate to use a radiation exposure that results in unintended permanent functional damage to an organ or a physiological system to a radiation therapy patient, as determined by a physician, as a criterion for this indicator. AO Criterion I.A.3 is used as the basis for this indicator.

Should an event meeting this threshold occur, it would be reported to the NRC or Agreement States, or both, through a number of sources but primarily through required licensee notifications. These events are summarized in event notifications and preliminary notifications, which are used to widely disseminate the information to internal and external stakeholders.

The processes used in the Fuel Facilities, Nuclear Materials Users, Spent Fuel Storage and Transportation, and Decommissioning and Low-Level Waste (LLW) business lines contain elements to verify the completeness and accuracy of licensee reports. The Integrated Materials Performance Evaluation Program (IMPEP) also provides a mechanism to verify that Agreement States and NRC regions are consistently collecting and reporting such events as received from the licensees and entering them into the Nuclear Material Events Database (NMED).

The NRC has taken a number of steps to improve the timeliness and completeness of materials event data. These steps include assessment of the NMED data during monthly staff reviews; emphasis and analysis during the IMPEP reviews; NMED FY 2019 Congressional Budget Justification l 93

ANNUAL PERFORMANCE PLAN training in headquarters (HQ), the regions, and Agreement States; and discussions at all Agreement State and Conference of Radiation Control Program Directors (CRCPD) meetings.

Validation: The NRC provides regulatory controls that limit or prevent radiation exposures to the public and occupational workers from radioactive material that exceed AO Criterion I.A. An incident or event is considered an AO if it involves a major reduction in the degree of protecting of public health or safety.

Events of this magnitude are rare. In the unlikely event that an AO should occur, the NRC or Agreement State technical specialists will confirm whether the criteria were met, with input provided by expert consultants, as necessary.

The NRC does not use statistical sampling of data to determine results. Rather, all event data are reviewed to determine whether the performance indicator has been met. There are two important data limitations in determining this performance indicator. These include delay time for receiving information and failure to inform the NRC of an event that causes significant radiation exposures to the public or occupational workers. The NRC regulations associated with event reporting include specific requirements for timely notifications; there is a lag time separating the occurrence of an event and its known consequences.

The NRC believes the probability of not being aware of an event that causes significant radiation exposures to the public or occupational workers is very small. Periodic licensee inspections and regulatory reporting requirements are sufficient to ensure that an event of this magnitude would become known. If such an event occurred, it would result in a prompt and thorough investigation of the event, its consequences, its root causes, and the necessary actions by the licensee and the NRC to mitigate the situation and prevent recurrence. In addition to these immediate actions, the NRC holds periodic meetings, in which staff and management validate the occurrence of these events.

FY 2015-2019: Performance Goal 2: Number of releases of radioactive materials that meet or exceed AO Criterion I.B (discharge or dispersal of radioactive material from its intended place of confinement)

Materials and Waste Zero Safety Target:

Verification: This performance indicator is defined as any release to the environment from the following business line activities: Fuel Facilities, Nuclear Materials Users, Spent Fuel Storage and Transportation, and Decommissioning and LLW that exceed applicable regulations, as defined in 10 CFR 20.2203(a)(3). Per Federal requirements, a 30-day written report is required on such releases.

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ANNUAL PERFORMANCE PLAN Should an event meeting this threshold occur, it would be reported to the NRC or Agreement States, or both, through a number of sources but primarily through required licensee notifications. These events are summarized in event notifications and preliminary notifications, which are used to widely disseminate the information to internal and external stakeholders.

The fuel facilities, nuclear materials users, spent fuel storage and transportation, and decommissioning and LLW programs contain elements that verify the completeness and accuracy of licensee reports. The IMPEP also provides a mechanism to verify that Agreement States and NRC regions are consistently collecting and reporting such events, as received from the licensees, and entering them into NMED.

The NRC has taken a number of steps to improve the timeliness and completeness of materials event data. These steps include assessment of the NMED data during monthly staff reviews; emphasis and analysis during the IMPEP review; NMED training in HQ, the regions, and Agreement States; and discussions at Agreement State and CRCPD meetings.

Validation: The NRC provides regulatory controls to limit radiation releases to ensure protection of the environment. The regulations in 10 CFR Part 20 provide standards for protection against radiation. Releases subject to a 30-day reporting requirement in 10 CFR 20.2203(a)(3)(ii) serve as a performance indicator for ensuring the protection of the environment. The NRCs regulatory process, including licensing, inspection, guidance, regulations, and enforcement activities, is sufficient to ensure that releases of radioactive materials that exceed regulatory limits are infrequent.

In the unlikely event that a release to the environment exceeds regulatory limits, the NRC, Agreement State technical specialists, or agency consultants will confirm whether the criteria were met, with input provided by expert consultants, as necessary.

The NRC does not look at statistical sampling of data to determine results; instead, all event data are reviewed to determine whether the performance indicator has been met.

There are two important data limitations in determining this performance indicator. These include delay time for receiving information or the failure to inform the NRC of an event that causes environmental impacts. The NRC regulations associated with event reporting include specific requirements for timely notifications. There is a lag time separating the occurrence of an event and its known consequences.

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ANNUAL PERFORMANCE PLAN The NRC believes the probability of not being aware of an event that causes a radiological release to the environment that exceeds applicable regulations is very small. Periodic licensee inspections and regulatory reporting requirements are sufficient to ensure that an event of this magnitude would become known.

If such an event occurred, it would result in a prompt and thorough investigation of the event, its consequences, its root causes, and the necessary actions by the licensee and the NRC to mitigate the situation and prevent recurrence. In addition to these immediate actions, the NRC holds periodic meetings, in which staff and management validate the occurrence of these events.

FY 2015-2019: Performance Goal 3: Number of instances of unintended nuclear chain reactions involving NRC-licensed radioactive materials Materials and Waste Zero Safety Target:

Verification: An accidental criticality is defined in 10 CFR 70.52(a). Each NRC office reviews event documents for its specific program area to identify events that meet or exceed AO Criteria III.A.1 (accidental criticality).

The program office or regional AO coordinators will assess an event to determine if it meets the AO criteria. If an event meets the AO criteria, the program office or regional AO coordinator will develop a potential AO event description. The potential AO event description will include the applicable AO criteria and contain the information specified in Section 208 of the Energy Reorganization Act of 1974, such as the nature and probable consequences of the event.

The AO coordinator in the NRCs Office of Nuclear Regulatory Research coordinates with the program office and regional AO coordinators regarding incidents and events, identified as potential AOs.

Validation: The agency is required to submit a Report to Congress on Abnormal Occurrences each FY for those events that, by Commission determination, meet the AO criteria. These AO criteria have been developed and revised over several decades with extensive review by both the Commission and the public. In SECY-95-083, Revised Abnormal Occurrence Criteria, the staff described the basis of the AO criteria as follows:

The AO reporting policy has been developed to comply with the legislative intent of Section 208 of the Energy Reorganization Act of 1974, as amended, to keep Congress and the public informed of unscheduled incidents or events which the Commission considers significant from the standpoint of public health and safety.The thresholds are generally above the normal level of FY 2019 Congressional Budget Justification l 96

ANNUAL PERFORMANCE PLAN reporting events by licensees to NRC to exclude those events which involve some variance from regulatory limits, but are not significant enough from the standpoint of public health and safety to be reported to Congress.

For each event that meets the AO criteria, the NRC includes in the report a description of the incident or event, as well as any action taken to prevent recurrence. Such actions include those taken by licensees, as well as more programmatic actions deemed necessary by the Commission to prevent recurrence across a class or classes of licensees. Establishing performance indicators at the threshold levels described by the AO criteria is appropriate and consistent with the principle that the NRCs regulatory processes (e.g., licensing, oversight, enforcement) are adequate to address a wide scope of infractions against regulatory requirements and do not generally warrant a focused reevaluation of the programs associated with those processes for every infraction. Therefore, only significant deviations from the regulatory requirements or unacceptable frequencies of occurrence of such deviations should be indicators of the need to reevaluate regulatory strategies and programs. This principle has been central to the staffs selection of performance goals and performance indicator thresholds for determining whether the NRCs performance in ensuring the safe and secure use of radioactive material has been adequate.

FY 2015-2019: Performance Goal 5: Number of malfunctions, deficiencies, events, or conditions at nonreactor facilities or during transportation of nuclear materials that meet or exceed AO Criteria III.A or III.B (events at facilities other than nuclear power plants and all transportation events)

Materials and Waste Zero Safety Target:

Verification: Each NRC office reviews event documents for its specific program area to identify events as potential AOs.

The program office or regional AO coordinators will assess an event to determine if it meets the AO criteria. If an event meets the AO criteria, the program office or regional AO coordinator will develop a potential AO event description. The potential AO event description will include the applicable AO criteria and contain the information specified in Section 208 of the Energy Reorganization Act of 1974, such as the nature and probable consequences of the event.

The AO coordinator of the NRCs Office of Nuclear Regulatory Research coordinates with the program office and regional AO coordinators regarding incidents and events, identified as potential AOs.

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ANNUAL PERFORMANCE PLAN Validation: The agency is required to submit a Report to Congress on Abnormal Occurrences each FY for those events that the Commission has determined to meet the AO criteria. These AO criteria have been developed and revised over several decades with extensive review by both the Commission and the public. In SECY-95-083, Revised Abnormal Occurrence Criteria, the staff described the basis of the AO criteria as follows:

The AO reporting policy has been developed to comply with the legislative intent of Section 208 of the Energy Reorganization Act of 1974, as amended, to keep Congress and the public informed of unscheduled incidents or events which the Commission considers significant from the standpoint of public health and safety.The thresholds are generally above the normal level of reporting events by licensees to NRC to exclude those events which involve some variance from regulatory limits, but are not significant enough from the standpoint of public health and safety to be reported to Congress.

For each event that meets the AO criteria, the NRC includes in the report a description of the incident or event, as well as any action taken to prevent recurrence. Such actions include those taken by licensees, as well as more programmatic actions deemed necessary by the Commission to prevent recurrence across a class or classes of licensees. Establishing performance indicators at the threshold levels described by the AO criteria is appropriate and consistent with the principle that the NRCs regulatory processes (e.g., licensing, oversight, enforcement) are adequate to address a wide scope of infractions against regulatory requirements and do not generally warrant a focused reevaluation of the programs associated with those processes for every infraction. Therefore, only significant deviations from the regulatory requirements or unacceptable frequencies of occurrence of such deviations should be indicators of the need to reevaluate regulatory strategies and programs. This principle has been central to the staffs selection of performance goals and performance indicator thresholds for determining whether the NRCs performance in ensuring the safe and secure use of radioactive material has been adequate.

Goal 2: Security: Ensure the secure use of radioactive materials.

Nuclear Reactor and Nuclear Materials and Waste Security Security Objective 1: Ensure protection of nuclear facilities and radioactive materials.

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ANNUAL PERFORMANCE PLAN Performance Indicators:

FY 2015-2019: Performance Goal 1: Number of instances of sabotage, theft, diversion, or loss of risk-significant quantities of radioactive material that meet or exceed AO Criteria I.C.1 (stolen, diverted, abandoned, or unrecovered lost), I.C.2 (radiological sabotage),

and Criterion I.C.3 (substantiated case of actual theft, diversion, or loss of a formula quantity of SNM or an inventory discrepancy).

Security Target: Zero Verification: Under AO Criterion I.C.1, the agency counts any stolen, diverted, abandoned, or unrecovered lost radioactive material that meets or exceeds the thresholds listed in Appendix A, Category 1 and Category 2 Radioactive Materials, to 10 CFR Part 37, Physical protection of category 1 and category 2 quantities of radioactive material. Excluded from reporting under this criterion are those events involving sources that are lost or abandoned under the following conditions: sources that have been lost and for which a reasonable attempt at recovery has been made without success, or irretrievable well logging sources as defined in 10 CFR 39.2, Definitions. These sources are only excluded if there is reasonable assurance that the doses from these sources have not exceeded, and will not exceed, the reporting thresholds specified in AO Criteria I.A.1 and I.A.2 and the agency has determined that the risk of theft or diversion is acceptably low.

Losses or thefts of radioactive material greater than or equal to 1,000 times the quantity specified in Appendix C, Quantities of Licensed Material Requiring Labeling, to 10 CFR Part 20 must be reported (in accordance with 10 CFR 20.2201(a)) by telephone to the NRC HQ Operations Center or Agreement State immediately (interpreted as within 4 hours4.62963e-5 days <br />0.00111 hours <br />6.613757e-6 weeks <br />1.522e-6 months <br />) if the licensee believes that an exposure could result to persons in unrestricted areas. If an event meeting the thresholds described above occurs, it would be reported through a number of sources but primarily through this required licensee notification. Events that are publicly available are then entered and tracked in NMED, which is used to collect and store information on such events.

Separate methods are used to track events that are not publicly available. Additionally, licensees must meet the reporting and accounting requirements in 10 CFR Part 73, Physical Protection of Plants and Materials, and 10 CFR Part 74, Material Control and Accounting of Special Nuclear Material.

The NRCs inspection programs are key elements in verifying the completeness and accuracy of licensee reports. The IMPEP also provides a mechanism to verify that Agreement States and the NRC regions are consistently collecting and reporting such events as received from the licensees and are entering these FY 2019 Congressional Budget Justification l 99

ANNUAL PERFORMANCE PLAN events in NMED. In some cases, upon receiving a report, the NRC or Agreement State initiates an independent inspection that verifies the reliability of the reported information. When performed, these inspections enable the NRC or Agreement State to verify the accuracy of the reported data.

The regulation at 10 CFR 20.2201(b) requires a 30-day written report for lost or stolen sources that are greater than or equal to 10 times the quantity specified in Appendix C to 10 CFR Part 20 if the source is still missing at that time. Furthermore, 10 CFR 20.2201(d) requires an additional written report within 30 days of a licensee learning any additional substantive information. The NRC interprets this requirement as including reporting recovery of sources.

The NRC issued guidance in Regulatory Issue Summary (RIS) 2005-21, Clarification of the Reporting Requirements in 10 CFR 20.2201, dated November 14, 2005, to clarify the current requirement in 10 CFR 20.2201(d) for reporting recovery of a risk-significant source. The NRC asked the Agreement States to send copies of RIS 2005-21 (or an equivalent document) to Agreement State licensees. The NRC issued the National Source Tracking System (NSTS) final rule in November 2006. On January 31, 2009, NRC licensees and Agreement State licensees were required to begin reporting information on source transactions to the NSTS. Implementation of this system creates an inventory of risk-significant sources.

This rulemaking established reporting requirements for risk-significant sources (including reporting timeframes) by adding specific requirements to 10 CFR 20.2201, Reports of Theft or Loss of Licensed Material, for risk-significant sources, including a requirement for licensees to report within 30 days the recovery of a risk-significant source.

Validation: Events collected under this performance indicator are actual losses, thefts, or diversions of materials described above. Such events could compromise public health and safety, the environment, and the common defense and security. Events of this magnitude are rare. The information reported under 10 CFR Part 73 and 10 CFR Part 74 is required so that the NRC is aware of events that could endanger public health and safety or national security. Any failures at the level of the strategic plan would result in immediate investigation and follow-up.

If an event subject to the reporting requirements described above occurs, it would result in a prompt and thorough evaluation of the event, its consequences, its root causes, and the necessary actions by the licensee, the NRC, or an Agreement State to mitigate the situation and prevent recurrence.

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ANNUAL PERFORMANCE PLAN Verification: In AO Criterion I.C.2, radiological sabotage as defined in 10 CFR 73.2. In AO Criterion I.C.3, substantiated means a situation in which there is an indication of loss, theft, or unlawful diversion, such as an allegation of diversion, report of lost or stolen material, or other indication of loss of material control or accountability that cannot be refuted following an investigation, and requires further action on the part of the agency or other proper authorities. A formula quantity of SNM is defined in 10 CFR 70.4. Licensees subject to the requirements in 10 CFR Part 73 must call the NRC within 1 hour1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> of an occurrence to report any breaches of security or other event that may potentially lead to theft or diversion of material or to sabotage at a nuclear facility. The NRCs safeguards requirements are described in 10 CFR 73.71, Reporting of Safeguards Events; Appendix G, Reportable Safeguards Events, to 10 CFR Part 73; and 10 CFR 74.11, Reports of Loss or Theft or Attempted Theft or Unauthorized Production of Special Nuclear Material.

The information assessment team composed of NRC HQ and regional staff members would conduct an immediate assessment for any significant events to determine any further actions needed, including coordination with the intelligence community and law enforcement. In accordance with 10 CFR 73.71(d), the licensee must also file a written report within 60 days of the incident that describes the event and the steps that the licensee took to protect the nuclear facility. This information will enable the NRC to assess whether radiological sabotage has occurred.

Validation: Events subject to reporting requirements are those that endanger public health and safety and the environment through deliberate acts of theft or diversion of material or through sabotage directed against the nuclear facilities that the agency licenses. Events of this type are extremely rare. If such an event occurs, it would result in a prompt and thorough investigation of the event, its consequences, its root causes, and the necessary actions by the licensee or the NRC to mitigate the situation and prevent recurrence. The investigation ensures the validity of the information and assesses the significance of the event.

Verification: Licensees must record events associated with AO Criterion I.C.3 within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> of the identified event in a safeguards log that the licensee maintains. The licensee must retain the log as a record for 3 years after the last entry is made or until termination of the license. The NRC relies on its safeguards inspection program to ensure the reliability of recorded data. The NRC makes a determination of whether a substantiated breakdown has resulted in a vulnerability to radiological sabotage, theft, diversion, or unauthorized enrichment of SNM. When making substantiated breakdown determinations, the NRC evaluates the FY 2019 Congressional Budget Justification l 101

ANNUAL PERFORMANCE PLAN materials event data to ensure that licensees are reporting and collecting the proper event data.

Validation: Substantiated means a situation that requires additional action by the agency or other proper authorities because of an indication of loss, theft, or unlawful diversionsuch as an allegation of diversion, report of lost or stolen material, statistical processing difference, other system breakdown closely related to the material control and accounting program (such as an item control system associated with the licensees facility information technology system), or other indication of loss of material control or accountabilitythat cannot be refuted following an investigation. A formula quantity of SNM is defined in 10 CFR 70.4.

Events collected under this performance indicator may indicate a vulnerability to radiological sabotage, theft, diversion, or loss of SNM. Such events could compromise public health and safety, the environment, and the common defense and security. The NRC relies on its safeguards inspection program to help validate the reliability of recorded data and to determine whether a breakdown of a physical protection or material control and accounting system has actually resulted in a vulnerability.

FY 2015-2019: Performance Goal 2: Number of substantial breakdowns of physical security, cyber security, or material control and accountability that meet or exceed AO Criterion I.C.4 (substantial breakdown in physical security, cyber security, or material control and accountability) and AO Criterion I.C.3 (substantiated case of actual theft, diversion, or loss of a formula quantity of SNM or an inventory discrepancy)

Security Target: Less than or equal to one Verification: In AO Criterion I.C.4, a substantial breakdown is defined as a red finding under the Reactor Oversight Process (ROP) in the physical security inspection program or any plant or facility determined to have overall unacceptable performance resulting in a determination of overall unacceptable performance or in a shutdown condition (inimical to the effective functioning of the Nations critical infrastructure). Radiological sabotage is defined in 10 CFR 73.2. Licensees are required to report to the NRC, immediately after the occurrence becomes known, any known breakdowns of physical security, based on the requirements in 10 CFR 73.71 and Appendix G to 10 CFR Part 73. If a licensee reports such an event, the HQ operations officer prepares an official record of the initial event report. The NRC begins responding to such an event immediately upon notification with the activation of its information assessment team. A licensee must follow its initial telephone notification with a written report submitted to the NRC within 30 days.

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ANNUAL PERFORMANCE PLAN The licensee records breakdowns of physical protection resulting in a vulnerability to radiological sabotage, theft, diversion, or loss of SNM or radioactive waste within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> in a safeguards log that the licensee maintains. The licensee must retain the log as a record for 3 years after the last entry is made or until termination of the license. Licensees subject to 10 CFR Part 73 must also meet the reporting requirements detailed in 10 CFR 73.71. The NRC evaluates all of the reported events, based on the criteria in 10 CFR 73.71 and Appendix G to 10 CFR Part 73. The NRC also maintains and relies on its safeguards inspection program to ensure the reliability of recorded and reported data.

Validation: Events assessed under this performance indicator are those that threaten nuclear activities by deliberate acts, such as radiological sabotage, directed against facilities. If a licensee reports such an event, the information assessment team evaluates and validates the initial report and determines any further actions that may be necessary. Tracking breakdowns of physical security indicates whether the licensee is taking the necessary security precautions to protect the public, given the potential consequences of a nuclear accident attributable to sabotage or the inappropriate use of nuclear material either in this country or abroad.

Events collected under this performance indicator may indicate a vulnerability to radiological sabotage, theft, diversion, or loss of SNM or radioactive waste. Such events could compromise public health and safety, the environment, and the common defense and security. The NRC relies on its safeguards inspection program to help validate the reliability of recorded data and to determine whether a breakdown of a physical protection or material control and accounting system has actually resulted in a vulnerability.

Security Objective 2: Ensure protection of classified and Controlled Unclassified Information Performance Indicators:

FY 2015-2019: Performance Goal 3: Number of significant unauthorized disclosures of classified or Safeguards Information by licensees, as defined by AO Criterion I.C.5 (significant unauthorized disclosures of classified information or Safeguards Information),

and by NRC employees or contactors, as defined by NRC internal criteria Security Target: Zero Verification: In regard to AO Criterion I.C.5, any alleged or suspected violations by NRC licensees of the Atomic Energy Act, Espionage Act, or other Federal statutes related to classified or Safeguards Information must be reported to the NRC under the requirements in 10 CFR 95.57(a) (for classified information),

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ANNUAL PERFORMANCE PLAN 10 CFR Part 73 (for Safeguards Information), and NRC orders (for Safeguards Information subject to modified handling requirements). However, for performance reporting, the NRC would only count those disclosures or compromises that actually cause damage to national security or that threatens public health and safety.

Such events would be reported to the cognizant security agency (i.e., the security agency with jurisdiction) and the regional administrator of the appropriate NRC regional office, as listed in Appendix A, U.S. Nuclear Regulatory Commission Offices and Classified Mailing Addresses, to 10 CFR Part 73. The regional administrator would then contact the Division of Security Operations at NRC HQ, which would assess the violation and notify other NRC offices and Government agencies, as appropriate. A determination would be made as to whether the compromise damaged national security or public health and safety. Any unauthorized disclosures or compromises of classified or Safeguards Information that damaged national security or public health and safety would result in immediate investigation and follow-up by the NRC. In addition, NRC inspections will verify that licensees routine handling of classified information and Safeguards Information (including Safeguards Information subject to modified handling requirements) conforms to established security information management requirements.

Any alleged or suspected violations of this performance indicator by NRC employees, contractors, or other personnel would be reported, in accordance with NRC procedures, to the Director of the Division of Facilities and Security at NRC HQ. The NRC maintains a strong system of controls over national security and Safeguards Information, including (1) annual required training for all employees, (2) safe and secure document storage, and (3) physical access control in the form of guards and badged access.

Validation: Events collected under this performance indicator are unauthorized disclosures of classified information or Safeguards Information that damage the national security or public health and safety. Events of this magnitude are not expected and would be rare. If such an event occurs, it would result in a prompt and thorough investigation, including consequences, root causes, and necessary actions by the licensees and the NRC to mitigate the consequences and prevent recurrence. NRC investigation teams also validate the materials event data to ensure that licensees are reporting and collecting the proper event data.

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ANNUAL PERFORMANCE PLAN MAJOR MANAGEMENT CHALLENGES The NRC did not identify any programs or management functions that have greater vulnerability to waste, fraud, abuse, and mismanagement, as defined by GPRA Modernization Act of 2010 to be major management challenges.

STRATEGIC PLAN STRATEGIES AND SUPPORTING BUSINESS LINES The FY 2018-2022 Strategic Plan, which will be finalized in February 2018, identifies the strategies needed for the NRC to achieve its Strategic Goals and Objectives. The following table shows which agency business lines support each strategy. The Strategic Plan will be posted at this link:

https://www.nrc.gov/reading-rm/doc-collections/nuregs/staff/sr1614/v7/.

SUPPORTING BUSINESS LINES AND STRATEGIC PLAN STRATEGIES Business Line Strategy Decommissioning and LLW; Fuel Facilities; New Safety Strategy 1: Maintain and enhance the Reactors; Nuclear Materials Users; Operating NRCs regulatory programs, using information Reactors; Spent Fuel Storage and gained from domestic and international Transportation operating experience, lessons learned, and advances in science and technology.

Decommissioning and LLW; Fuel Facilities; New Safety Strategy 2: Further risk-inform the Reactors; Nuclear Materials Users; Operating current regulatory framework in response to Reactors; Spent Fuel Storage and advances in science and technology, policy Transportation decisions, and other factors, including prioritizing efforts to focus on the most safety-significant issues.

Decommissioning and LLW; Fuel Facilities; New Safety Strategy 3: Enhance the effectiveness Reactors; Nuclear Materials Users; Operating and efficiency of licensing and certification Reactors; Spent Fuel Storage and activities to maintain both quality and timeliness Transportation of licensing and certification reviews.

Decommissioning and LLW; Fuel Facilities; New Safety Strategy 4: Maintain effective and Reactors; Nuclear Materials Users; Operating consistent oversight of licensee performance Reactors; Spent Fuel Storage and with a focus on the most safety-significant Transportation issues.

Nuclear Materials Users, Decommissioning and Safety Strategy 5: Maintain material safety LLW through the National Materials Program in partnership with Agreement States.

Decommissioning and LLW; Fuel Facilities; New Safety Strategy 6: Identify, assess, and Reactors; Nuclear Materials Users; Operating resolve safety issues.

Reactors; Spent Fuel Storage and Transportation Corporate Support; Decommissioning and LLW; Safety Strategy 7: Ensure the NRC maintains Fuel Facilities; New Reactors; Nuclear Materials its readiness to respond to incidents and Users; Operating Reactors; Spent Fuel Storage emergencies involving NRC licensed facilities and Transportation and radioactive materials and other events of domestic and international interest.

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ANNUAL PERFORMANCE PLAN Business Line Strategy Fuel Facilities; New Reactors, Operating Safety Strategy 8: Verify that nuclear facilities Reactors; Spent Fuel Storage and are constructed and operated in accordance Transportation with permits and licenses and that the environmental and safety regulatory infrastructure is adequate to support the issuance of new licenses.

Decommissioning and LLW; Fuel Facilities; New Security Strategy 1: Maintain and further risk Reactors; Nuclear Materials Users; Operating inform the current regulatory framework for Reactors; Spent Fuel Storage and security using information gained from operating Transportation experience, lessons learned, external and internal assessments, technology advances, and changes in the threat environment.

Decommissioning and LLW; Fuel Facilities; New Security Strategy 2: Maintain effective, Reactors; Nuclear Materials Users; Operating consistent, and risk-informed oversight of Reactors; Spent Fuel Storage and licensee performance with respect to meeting Transportation NRC security requirements.

Nuclear Materials Users Security Strategy 3: Maintain material security through the National Materials Program in partnership with the safety programs administered by the Agreement States.

Decommissioning and LLW; Fuel Facilities; New Security Strategy 4: Proactively identify, Reactors; Nuclear Materials Users; Operating assess, and address threats, vulnerabilities, and Reactors; Spent Fuel Storage and security risks.

Transportation Corporate Support; Fuel Facilities; New Security Strategy 5: Support U.S. national Reactors; Nuclear Materials Users; Operating security interests and nuclear nonproliferation Reactors; Spent Fuel Storage and policy objectives consistent with the NRCs Transportation statutory mandate through cooperation with domestic and international partners.

Fuel Facilities; Operating Reactors; Spent Fuel Security Strategy 6: Ensure material control Storage and Transportation and accounting for special nuclear materials.

Corporate Support; Decommissioning and LLW; Security Strategy 7: Ensure that programs for Fuel Facilities; New Reactors; Nuclear Materials the handling and control of classified and Users; Operating Reactors; Spent Fuel Storage Controlled Unclassified Information are and Transportation effectively implemented at the NRC and at licensed facilities.

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OFFICE OF THE INSPECTOR GENERAL OFFICE OF THE INSPECTOR GENERAL The NRCs Office of the Inspector General (OIG) was established as a statutory entity on April 15, 1989, in accordance with the 1988 amendments to the Inspector General Act. The OIG mission is to independently and objectively audit and investigate programs and operations to promote effectiveness and efficiency, and to prevent and detect fraud, waste, and abuse.

Starting in fiscal year (FY) 2014, the NRCs OIG has exercised the same authorities with respect to the Defense Nuclear Facilities Safety Board (DNFSB) per the Consolidated Appropriations Act, 2014.

NRC OIG Budget Authority and Full-Time Equivalents (Dollars in Millions)

FY 2018 FY 2019 Changes from Annualized CR Request FY 2018

$M FTE $M FTE $M FTE Program Support 1.472 1.647 0.175 Program Salaries and Benefits 10.575 63.0 10.962 63.0 0.387 0.0 Total $12.047 63.0 $12.609 63.0 0.562 0.0 Numbers may not add due to rounding.

The FY 2019 budget request for the NRC OIG is $12.609 million, which includes $10.962 million in salaries and benefits to support 63 full-time equivalent (FTE), and $1.647 million in program support. These resources will support Inspector General auditing and investigation functions for both the NRC, $11.506 million and the DNFSB, $1.103 million, respectively.

OIG is showing the full cost associated with its programs for the FY 2019 budget with the following caveat: as a result of an October 1989 memorandum of understanding between the NRCs Chief Financial Officer and the Inspector General and a subsequent amendment in March 1991, OIG no longer requests that funding for some OIG management and support services be included in the OIG appropriation. It was agreed that funds for OIG infrastructure requirements and other agency support services would instead be included in the NRCs main appropriation. For the most part, these costs are not readily severable. Thus, this funding continues to be included in NRCs main appropriation.

AUDITS PROGRAM Audits Budget Authority (Dollars in Millions)

FY 2018 FY 2019 Changes from Annualized CR Request FY 2018 Summary $M FTE $M FTE $M FTE Program 8.048 41.0 8.495 41.0 0.447 0 .0 Support Total $8.048 41.0 $8.495 41.0 0.447 0 .0 Numbers may not add due to rounding.

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OFFICE OF THE INSPECTOR GENERAL The OIG Audits Program focuses on the agencys management and financial operations; economy and efficiency with which an organization, program, or function is managed; and whether the programs achieve intended results. OIG auditors assess the degree to which an organization complies with laws, regulations, and internal policies in carrying out programs, and they test program effectiveness as well as the accuracy and reliability of financial statements.

The overall objective of an audit is to identify ways to enhance agency operations and promote greater economy and efficiency.

For FY 2019, OIG requests $8.495 million and 41 FTE to carry out its Audits Program activities for NRC and DNFSB programs. With these resources, the Audits Program will conduct approximately 24 audits and evaluations for the NRC. This will enable OIG to provide coverage of the NRCs Nuclear Reactor Safety, Nuclear Materials and Waste Safety, Security, and Corporate Support programs. OIGs assessment of these mission-critical programs will support the agency in accomplishing its goals to ensure adequate protection of public health and safety and the environment, and in the secure use and management of radioactive materials.

In addition, OIG will conduct approximately six audits and evaluations that will cover various DNFSB programs and operations. These assessments will support the DNFSBs primary purpose of ensuring adequate protection of public health and safety in the U.S. Department of Energys defense nuclear facilities and operations.

CHANGES FROM FY 2018 ANNUALIZED CONTINUING RESOLUTION OIGs FY 2019 budget request reflects the funding level needed to sustain the authorized staffing level, conduct legislatively mandated audits at NRC and DNFSB, and fund essential contract support and travel activities related to audit work at both agencies.

FY 2018-FY 2019 AUDITS PROGRAM PERFORMANCE MEASURES Ensure that 85 percent of the NRCs completed audit products or activities will have a high impact on strengthening the NRCs safety, security, and/or corporate management programs.

Obtain NRC agreement on at least 92 percent of OIG audit recommendations.

Obtain final action on 70 percent of NRC and 50 percent of DNFSB OIG audit recommendations within 2 years.

Ensure that 60 percent of DNFSB audits undertaken are issued within a year.

SELECTED FY 2017 AUDITS PROGRAM ACCOMPLISHMENTS In FY 2017, OIG issued 33 reports, with 27 pertaining to NRC programs and operations and 6 pertaining to DNFSB programs and operations. These reports either evaluate high-risk agency programs or comply with mandatory audits pursuant to financial and computer security-related legislation. Additional information related to work performed may be found on the OIG Web Site at http://www.nrc.gov/insp-gen/pubs.html#Semi-Annual.

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OFFICE OF THE INSPECTOR GENERAL INVESTIGATIONS PROGRAM Investigations Budget Authority (Dollars in Millions)

FY 2018 FY 2019 Changes from Annualized CR Request FY 2018

$M FTE $M FTE $M FTE Program 3.996 22.0 4.114 22.0 0.118 0.0 Support Total $3.996 22.0 $4.114 22.0 $0.118 0.0 Numbers may not add due to rounding.

The OIGs responsibility for detecting and preventing fraud, waste, and abuse within the NRC and DNFSB includes investigating possible violations of criminal statutes relating to NRC and DNFSB programs and activities, investigating misconduct by NRC and DNFSB employees, interfacing with the U.S. Department of Justice (DOJ) on OIG-related criminal matters, and coordinating investigations and other OIG initiatives with Federal, State, and local investigative agencies and other OIGs. Investigations may be initiated as a result of allegations or referrals from private citizens; licensee employees; NRC and DNFSB employees; Congress; other Federal, State, and local law enforcement agencies; OIG audits; the OIG hotline; and Inspector General initiatives directed at bearing a high potential for fraud, waste, and abuse.

For FY 2019, OIG requests $4.114 million and 22 FTE to carry out its Investigations Program activities for NRC and DNFSB programs. Reactive investigations into allegations of criminal and other wrongdoing will continue to be OIGs priority. The Investigations Programs main concentration of effort will involve investigations of alleged NRC or DNFSB staff misconduct that could adversely impact matters related to the health and safety mission of the NRC and the DNFSB. OIG has also implemented a series of proactive initiatives designed to identify specific high-risk areas that are most vulnerable to fraud, waste, and abuse. With these resources, OIG expects to conduct approximately 40 investigations at the NRC and at DNFSB covering a broad range of allegations concerning misconduct and mismanagement affecting various NRC and DNFSB programs.

CHANGES FROM FY 2018 ANNUALIZED CONTINUING RESOLUTION FY 2019 resources increase in the Investigations Program.

FY 2018-FY 2019 INVESTIGATIONS PROGRAM PERFORMANCE MEASURES Ensure 85 percent of the NRCs investigations or activities completed will have a high impact on strengthening the NRCs safety, security, and/or corporate management programs.

Obtain 90 percent agency action in response to the NRCs OIG investigative reports.

Complete 90 percent of NRC active cases in less than 18 months on average.

Refer at least 20 percent of the NRCs closed investigations for criminal prosecution.

Achieve a 60 percent success rate for judicial or administrative actions in response to the NRCs OIG investigative reports.

Complete 85 percent of DNFSB active cases in less than 18 months on average.

Obtain 90 percent DNFSB action taken in response to investigative reports.

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OFFICE OF THE INSPECTOR GENERAL SELECTED FY 2017 INVESTIGATIONS PROGRAM ACCOMPLISHMENTS In FY 2017, OIG completed 40 investigations. These investigative efforts focused on violations of law or misconduct by NRC/DNFSB employees and contractors and allegations of irregularities or inadequacies in NRC/DNFSB programs and operations. Additional information related to work performed may be found on the OIG Web Site at http://www.nrc.gov/insp-gen/pubs.html#Semi-Annual.

NRC OIGS STRATEGIC GOALS, STRATEGIES, AND ACTIONS The NRC OIG carries out its mission through its Audits and Investigations Programs. The NRC OIG Strategic Plan for FY 2014-2018 features three strategic goals and guides the activities of these programs. This OIG Strategic Plan (currently undergoing revision) identifies the major challenges and risk areas facing the NRC and generally aligns with the agencys mission. It also includes a number of supporting strategies and actions that describe OIGs planned accomplishments over the strategic planning period. The NRC OIG strategic plan can be found in its entirety at the following address: http://www.nrc.gov/insp-gen/plandocs/strategic-plan.pdf.

To ensure that each NRC OIG audit and evaluation aligns with these three goals, program areas selected for audit and evaluation are included in the OIG Annual Plan after being cross walked against the NRC OIG Strategic Plan to ensure alignment with the offices strategic goals.

Furthermore, each OIG audit, evaluation, and investigation is informed by one or more of the most serious management and performance challenges facing the agency as identified by the Inspector General. The work performed by OIG auditors and investigators is mutually supportive and complementary in pursuit of these objectives. Below are the NRC OIGs current strategic goals and strategies.

NRC OIG STRATEGIC GOALS (1) Safety: Strengthen the NRCs efforts to protect public health and safety and the environment.

The NRC will continue to face safety challenges in the years ahead related to nuclear reactor oversight, the regulation of nuclear materials, and the handling of nuclear waste. A significant concern for the NRC is regulating the safe operation of the Nations nuclear power plants through an established oversight process developed to verify that licensees identify and resolve safety issues before they adversely affect safe plant operation. The NRC is also challenged to address both domestic and international operating experience that informs regulatory activities.

The NRC must address license amendment requests to increase the power generating capacity of specific commercial reactors, license renewal requests to extend reactor operations beyond set expiration dates, and the introduction of new technology such as new and advanced reactor designs.

In fulfilling its responsibilities to regulate nuclear materials, the NRC must ensure that its regulatory activities regarding nuclear materials and nuclear fuel cycle facilities adequately protect public health and safety. Moreover, the NRCs regulatory activities concerning nuclear materials must protect against radiological sabotage and theft or diversion of these materials. The licensing of facilities (e.g., fuel fabrication) with new technologies poses additional challenges. The handling of nuclear waste includes both high-level and low-level waste. High-level radioactive waste is primarily in the form of spent fuel discharged from commercial nuclear power reactors. In the high-level waste area, the NRC oversees the FY 2019 Congressional Budget Justification l 110

OFFICE OF THE INSPECTOR GENERAL potential licensing of new interim and permanent high-level waste facilities. Additional high-level waste issues include the oversight of interim storage of spent nuclear fuel both at and away from reactor sites, certification of storage and transport casks, and the oversight of the decommissioning of reactors and other nuclear sites. Low-level waste includes items that have become contaminated with radioactive materials or have become radioactive through exposure to neutron radiation. Low-level waste disposal occurs at commercially operated facilities that must be licensed by either the NRC or Agreement States. However, there are currently only four operating low-level waste disposal facilities in the United States. Below are the NRC OIGs strategies to support the NRC in facing these and other safety-related challenges.

Strategy 1-1: Identify risk areas associated with the NRCs oversight of operating reactors, and conduct audits and investigations that lead to NRC program improvements.

Strategy 1-2: Identify risk areas associated with the NRCs oversight of the licensing and construction of new and advanced reactors, and conduct audits and investigations that lead to NRC program improvements.

Strategy 1-3: Identify risk areas facing the NRCs oversight of nuclear materials, and conduct audits and investigations that lead to NRC program improvements.

Strategy 1-4: Identify risk areas associated with the NRCs oversight of high-level and low-level waste, and conduct audits and investigations that lead to NRC program improvements.

(2) Security: Enhance the NRCs efforts to increase security in response to an evolving threat environment.

The NRC must ensure that nuclear power and materials licensees take adequate measures to protect their facilities against radiological sabotage. In a threat environment where adversaries tactics and capabilities rapidly evolve, the NRC faces the challenge of adapting to dynamic threats while also maintaining a stable security oversight regime commensurate with the agencys mission as a fair and impartial regulator. In addition, the NRC aims to balance its security oversight obligations with a duty to share information with public stakeholders about threats to the Nations nuclear power and materials sectors. The NRC also plays a critical role in overseeing and supporting the emergency preparedness and incident response capabilities of nuclear power plant operators and the integration of their plans with government agencies in light of the prospect of natural disasters and terrorist threats. In addition, the NRC must protect its infrastructure and take the necessary steps to ensure that its staff, facilities, and information technology assets are adequately protected against projected threats and provide for the maintenance of operations.

The NRC has well-established inspection programs for evaluating the physical, information, and personnel security activities of nuclear power and materials licensees. However, the agency is currently developing regulatory guidance and an inspection program to evaluate the security of information technology used to operate nuclear power plants and fuel cycle facilities. This nascent cybersecurity program will face implementation challenges common to new inspection programs, such as communicating new requirements to licensees, conducting inspections in a consistent manner, and sustaining the inspection program beyond its initial years.

Cybersecurity also entails unique oversight challenges related to the mix of digital and analog systems at different nuclear power plants, as well as the need for the NRC to understand in depth how digital equipment upgrades will impact plant operations and security. Lastly, the FY 2019 Congressional Budget Justification l 111

OFFICE OF THE INSPECTOR GENERAL complexity of digital systems and possible interfaces with licensees administrative, security, and operations systems requires that the NRC carefully test for vulnerabilities without compromising licensees digital networks. Below are the NRC OIGs strategies to support the NRC in facing these and other security-related challenges.

Strategy 2-1: Identify risk areas involved in effectively securing both new and operating nuclear power plants, nuclear fuel cycle facilities, and nuclear materials, and conduct audits and investigations that lead to NRC program improvements.

Strategy 2-2: Identify risk areas associated with maintaining a secure infrastructure (i.e.,

physical security, personnel security, and information security), and conduct audits and investigations that lead to NRC program improvements.

Strategy 2-3: Identify risks associated with emergency preparedness and incident response, and conduct audits and investigations that lead to NRC program improvements.

Strategy 2-4: Identify risks associated with international activities related to security, and conduct audits and investigations that lead to NRC program improvements.

(3) Corporate Management: Increase the economy, efficiency, and effectiveness with which the NRC manages and exercises stewardship over its resources.

The NRC faces significant challenges to efficiently, effectively, and economically manage its corporate resources. The NRC must continue to provide infrastructure and support to accomplish its regulatory mission while responding to changes in the Nations spent fuel policy, reliance on nuclear energy, and security threat environment. Addressing the corporate resource challenges of human capital, information management, and financial management will necessitate foresight and flexibility and a strategic approach to managing change during the strategic planning period. The NRC must mitigate the loss of retiring senior experts and managers by enhancing its knowledge management, lessons-learned, and training programs, along with attracting and retaining staff with the necessary competencies. The NRC also needs to continue upgrading and modernizing its information technology resources for employees and to support public access to the regulatory process. Finally, the agency needs to continue to improve its management and control over financial resources and procurement practices.

The NRC will need to address changes caused by internal and external factors that will challenge the agencys ability to achieve its goals efficiently and effectively. The OIG will target corporate management risk areas for audits and investigations, to fulfill its statutory responsibility to evaluate the agencys financial management, and work with the NRC to identify and improve weaknesses. Below is the NRC OIGs strategy to support the agency in mitigating these challenges.

Strategy 3-1: Identify areas of corporate management risk within the NRC and conduct audits and investigations that lead to NRC program improvements.

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OFFICE OF THE INSPECTOR GENERAL FY 2019 NRC OIG BUDGET RESOURCES LINKED TO STRATEGIC GOALS The following table depicts the relationship of the Inspector General program and associated resource requirements to the NRC OIG strategic goals.

NRC OIG Budget Resources Linked to OIGs Strategic Goals (Dollars in Millions)

Program Links to Strengthen NRCs Enhance Improve NRCs Strategic Public Health & NRCs Security Resource Stewardship Goals Safety Efforts Efforts Efforts

($M) ($M) ($M) ($M)

FY 2019 Programs ($11.506) 6 Audits

$7.611 3.275 1.297 3.039 Investigations

$3.895 1.516 0.649 1.730 Numbers may not add due to rounding.

NRC OIG PROGRAM PERFORMANCE MEASURES NRC OIG Strategic Goal 1: Strengthen the NRCs Efforts To Protect Public Health and Safety and the Environment 2014 2015 2016 2017 2018 2019 Measure 1. Percentage of OIG products and activities that have a high impact7 on improving the NRCs safety program.

Target 85% 85% 85% 85% 85% 85%

Actual 100% 100% 100% 100% TBD TBD Measure 2. Percentage of audit recommendations agreed to by agency.

Target 92% 92% 92% 92% 92% 92%

Actual 36%8 86%9 100% 95% TBD TBD Measure 3. Percentage of final agency actions taken within 2 years on audit recommendations.

Target 70% 70% 70% 70% 70% 70%

6 The budget resources linked to the NRC OIG strategic goals does not include the $1,103,000 for the DNFSB.

7 High impact is the effect of an issued report or activity undertaken that results in: (a) confirming risk areas or management challenges that caused the agency to take corrective action, (b) real dollar savings or reduced regulatory burden, (c) identifying significant wrongdoing by individuals that results in criminal or administrative action, (d) clearing an individual wrongly accused, or (e) identifying regulatory actions or oversight that may have contributed to the occurrence of a specific event or incident or resulted in a potential adverse impact on public health or safety.

8 The agency required more than 90 days to resolve all six recommendations in the Audit of the NRCs Compliance with Title 10 of the Code of Federal Regulations Part 51, Environmental Protection Regulations for Domestic Licensing and Related Regulatory Functions, related to environmental impact statements. Subsequently, all six recommendations were resolved.

9 The agency required more than 90 days to resolve the two recommendations in the audit of NRCs oversight of active component aging. Subsequently both recommendations have been resolved.

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OFFICE OF THE INSPECTOR GENERAL NRC OIG Strategic Goal 1: Strengthen the NRCs Efforts To Protect Public Health and Safety and the Environment 2014 2015 2016 2017 2018 2019 Actual 33%10 47%11 76% 75% TBD TBD Measure 4. Percentage of agency actions taken in response to investigative reports.

Target 90% 90% 90% 90% 90% 90%

Actual 100% 100% 100% 0%12 TBD TBD Measure 5. Percentage of active cases completed in less than 18 months on average.

Target 90% 90% 90% 90% 90% 90%

Actual 50%13 50%14 60%15 0%16 TBD TBD Measure 6. Percentage of closed investigations referred to DOJ or other relevant authorities.

Target 20%17 20% 20% 20% 20%

Actual N/A N/A N/A TBD TBD Measure 7. Percentage of closed investigations resulting in indictments, convictions, civil suits or settlements, judgments, administrative actions, monetary results, or IG clearance letters. 18 Target 60% 60% 60% 60% 60%

Actual 100% 100% 0%19 TBD TBD 10 The agency required more than 2 years for final action on all six recommendations in the audit of the NRCs oversight of industrial radiography. Final action was completed in October 2015.

11 The agency required more than 2 years for final action on one of four recommendations on the audit of the NRCs issuance of general licenses. Final action was completed in October 2014.

12 Only one case was applicable to this measure and the agency did not take action in response to the report.

13 Of the four active cases measured in the safety arena for the year, two cases were closed in less than 18 months, which resulted in an achievement rate of 50 percent.

14 Of two active investigative cases measured in the safety arena for the year, one case was closed in less than 18 months, which resulted in an achievement rate of 50 percent.

15 The complexity of two investigations in the safety arena required additional time to close these investigations.

16 There was only one case applicable to this measure; the case was not closed within 18 months, resulting in a measure of 0 percent.

17 Starting in FY 2014, OIG began measuring the percentage of closed investigations referred to DOJ or relevant administrative authority.

18 Starting in FY 2014, OIG began measuring the percentage of closed investigations that resulted in an indictment, conviction, civil suit or settlement, judgment, administrative action, or monetary result. Starting in FY 2017, OIG added closed investigations that resulted in IG clearance letters to this measure. A clearance letter is a document provided to an employee in cases where an investigation is initiated in response to an allegation of employee misconduct, and the misconduct is not substantiated.

19 Only one case was applicable to this measure and it did not result in any of the listed outcomes.

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OFFICE OF THE INSPECTOR GENERAL NRC OIG Strategic Goal 2: Enhance the NRCs Efforts To Increase Security in Response to an Evolving Threat Environment 2014 2015 2016 2017 2018 2019 Measure 1. Percentage of OIG products and activities that have a high impact on improving the NRCs security program.

Target 85%20 85% 85% 85% 85% 85%

Actual 100% 100% 91% 100% TBD TBD Measure 2. Percentage of audit recommendations agreed to by the agency.

Target 92% 92% 92% 92% 92% 92%

Actual 100% 100% 100% 100% TBD TBD Measure 3. Percentage of final agency actions taken within 2 years on audit recommendations.

Target 70% 70% 70% 70% 70% 70%

Actual 70% 82% 64%21 55%22 TBD TBD Measure 4. Percentage of agency actions taken in response to investigative reports.

Target 90% 90% 90% 90% 90% 90%

Actual 100% 100% 100% N/A TBD TBD Measure 5. Percentage of active cases completed in less than 18 months on average.

Target 90% 90% 90% 90% 90% 90%

Actual 75%23 100% 80%24 100% TBD TBD Measure 6. Percentage of closed investigations referred to DOJ or other relevant authorities.

Target 20%25 20% 20% 20% 20%

Actual N/A N/A 50% TBD TBD Measure 7. Percentage of closed investigations resulting in indictments, convictions, civil suits or settlements, judgments, administrative actions, monetary results or IG clearance letters. 26 Target 60% 60% 60% 60% 60%

Actual 100% 100% 33%27 TBD TBD 20 Starting in FY 2014, OIG began measuring the percentage of OIG products and activities that have a high impact on improving the NRCs security program at 85 percent.

21 One audit recommendation in the security arena required additional time to close. This recommendation has since been closed.

22 Four of eight recommendations on the Independent Evaluation of NRCs Implementation of the Federal Information Security Management Act (FISMA) for Fiscal Year 2012 required additional time to close. These four recommendations have since been closed.

23 Of the four active cases measured in the security arena for the year, three cases were closed in less than 18 months, which resulted in an achievement rate of 75 percent.

24 The complexity of one investigation in the security arena required additional time to close this investigation.

25 Starting in FY 2014, OIG began measuring the percentage of closed investigations referred to the DOJ, State or local law enforcement officials, or relevant administrative authority.

26 Starting in FY 2014, OIG began measuring the percentage of closed investigations that resulted in an indictment, conviction, civil suit or settlement, judgment, administrative action, or monetary result. Starting in FY 2017, OIG added closed investigations that resulted in IG clearance letters to this measure. A clearance letter is a document provided to an employee in cases where an investigation is initiated in response to an allegation of employee misconduct, and the misconduct is not substantiated.

27 Only one of three closed investigations resulted in an indictment, conviction, civil suit or settlement, judgment, administrative action, monetary result or IG clearance letter which resulted in an achievement rate of 33 percent.

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OFFICE OF THE INSPECTOR GENERAL NRC OIG Strategic Goal 3: Improve the Economy, Efficiency, and Effectiveness with Which the NRC Manages and Exercises Stewardship over Its Resources 2014 2015 2016 2017 2018 2019 Measure 1. Percentage of OIG completed products and activities that have a high impact on improving Corporate Management Programs.

Target 85% 85% 85% 85% 85% 85%

Actual 74%28 87% 85% 93% TBD TBD Measure 2. Percentage of audit recommendations agreed to by the agency.

Target 92% 92% 92% 92% 92% 92%

Actual 100% 100% 100% 100% TBD TBD Measure 3. Percentage of final agency actions taken within 2 years on audit recommendations.

Target 70% 70% 70% 70% 70% 70%

Actual 73% 90% 80% 81% TBD TBD Measure 4. Percentage of agency actions taken in response to investigative reports.

Target 90% 90% 90% 90% 90% 90%

Actual 100% 100% 100% 89%29 TBD TBD Measure 5. Percentage of active cases completed in less than 18 months on average.

Target 90% 90% 90% 90% 90% 90%

Actual 91% 58%30 78%31 85%32 TBD TBD Measure 6. Percentage of closed investigations referred to DOJ or other relevant authorities.

Target 20%33 20% 20% 20% 20%

Actual 28% 45% 44% TBD TBD Measure 7. Percentage of closed investigations resulting in indictments, convictions, civil suits or settlements, judgments, administrative actions, monetary results, or IG clearance letters. 34 Target 60% 60% 60% 60% 60%

Actual 73% 71% 65% TBD TBD 28 A more rigorous standard was applied for the impact of investigations in the corporate management arena.

29 One of nine investigative cases resulted in no action taken in response to an investigative report which resulted in an 89 percent achievement rate.

30 In the corporate management arena, OIG needed more than 18 months to complete action on average for 18 of 31 cases.

31 The complexity of several investigations in the corporate management arena required additional time to close these investigations.

32 The complexity of several investigations required additional time to close these investigations.

33 Starting in FY 2014, OIG began measuring the percentage of closed investigations referred to the DOJ, State or local law enforcement officials, or relevant administrative authority.

34 Starting in FY 2014, OIG began measuring the percentage of closed investigations that resulted in an indictment, conviction, civil suit or settlement, judgment, administrative action, or monetary result. Starting in FY 2017, OIG added closed investigations that resulted in IG clearance letters to this measure. A clearance letter is a document provided to an employee in cases where an investigation is initiated in response to an allegation of employee misconduct, and the misconduct is not substantiated.

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OFFICE OF THE INSPECTOR GENERAL VERIFICATION AND VALIDATION OF MEASURED VALUES AND PERFORMANCE The OIG uses an automated management information system to capture program performance data for the Audits and Investigations Programs. The integrity of the system was thoroughly tested and validated before implementation. Reports generated by the system provide both detailed information and summary data. All system data are deemed reliable.

PROGRAM EVALUATIONS (PEER REVIEWS)

An independent audit peer review performed in FY 2015 by the U.S. Federal Communications Commission OIG gave NRC OIG a peer review rating of Pass. This is the highest rating possible based on the available options of Pass, Pass with deficiencies, and Fail.

In addition, in October 2016, the Tennessee Valley Authority OIG issued a report documenting the results of its independent investigative peer review of OIGs Investigations Program. The program was found to be in compliance with quality standards established by the Council of the Inspectors General on Integrity and Efficiency and the Attorney General Guidelines for Offices of Inspectors General with Statutory Law Enforcement Authority.

DNFSB OIG PROGRAM PERFORMANCE MEASURES Performance Measures for the DNFSB OIG Program 2015 2016 2017 2018 2019 Measure 1. Percentage of OIG audits undertaken and issued within a year.35 Target 60% 60% 60% 60% 60%

Actual 83% 100% 100% TBD TBD Measure 2. Percentage of final Board actions taken within 2 years on audit recommendations.36 Target 50% 50% 50% 50% 50%

Actual 100% 100% 100% TBD TBD Measure 3. Percentage of Board actions taken in response to investigative reports. 37 Target 90% 90% 90% 90% 90%

Actual 100% 100% N/A TBD TBD Measure 4. Percentage of active cases completed in less than 18 months. 38 Target 85% 85% 85% 85% 85%

Actual 100% 100% 100% TBD TBD 35 OIG anticipates issuing six audit reports per year. This measure was been tracked since FY 2015.

36 This measure has been tracked since FY 2015.

37 This measure has been tracked since FY 2015.

38 This measure has been tracked since FY 2015.

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OFFICE OF THE INSPECTOR GENERAL INSPECTOR GENERAL REFORM ACT CERTIFICATION FOR FY 2019 In accordance with the Inspector General Reform Act (Public Law 110-409), the OIG NRC budget request was submitted to the NRC Chairman for FY 2019 and was subsequently approved. In addition, the OIG DNFSB budget request was submitted to the DNFSB Chairman for FY 2019 who provided no comments.

Furthermore, OIGs total budget request includes $140,000 for OIG training. The amount requested provides for all OIG specific training requirements for which there is a fee charged to OIG for attendance. In addition, funds are available for the OIG share of the resources needed to support the Council of the Inspectors General on Integrity and Efficiency.

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APPENDIX A: FULL COST OF U.S. NRC PROGRAMS APPENDIX A: FULL COST OF U.S. NUCLEAR REGULATORY COMMISSION PROGRAMS This appendix provides the full cost of NRC programs. The table below includes the allocated corporate support costs for business lines, excluding the High-Level Waste Business Line, Integrated University Program, and the Office of the Inspector General, in addition to the business line costs presented in each chapter of this report.

Full Cost Budget Authority and Full-Time Equivalents (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Business Line/ Actuals Annualized CR Request FY 2018 Major Program $M FTE $M FTE $M FTE $M FTE Operating Reactors 551.7 1,939.5 535.3 2,029.6 562.8 1,911.4 27.4 (118.2)

New Reactors 148.6 544.9 147.1 579.7 147.3 491.9 0.2 (87.8)

Nuclear Reactor Safety $700.3 2484.4 $682.4 2,609.3 $710.1 2,403.3 $27.7 (206.0)

Fuel Facilities 37.7 136.9 37.6 144.0 38.3 133.6 0.7 (10.4)

Nuclear Materials Users 92.3 286.9 90.6 303.2 86.8 268.4 (3.7) (34.8)

Spent Fuel Storage and Transportation 36.7 124.6 33.9 130.0 37.0 124.8 3.2 (5.1)

Decommissioning and Low-Level Waste 40.3 140.0 39.5 146.5 38.1 129.8 (1.4) (16.7)

High-Level Waste 0.9 1.3 0.0 0.0 47.7 124.0 47.7 124.0 Nuclear Materials and Waste Safety $207.8 689.8 $201.6 723.7 $248.0 780.7 $46.4 57.0 Major Program Subtotal $908.1 3174.2 $884.0 3,333.0 $958.1 3,184.0 $74.1 (149.0)

Integrated University Program 15.0 0.0 14.9 0.0 0.0 0.0 (14.9) 0.0 Subtotal $923.1 3174.2 $898.9 3,333.0 $958.1 3,184.0 $59.2 (149.0)

Inspector General 12.2 61.1 12.0 63.0 12.6 63.0 0.6 0.0 Total $935.3 3235.2 $910.9 3,396.0 $970.7 3,247.0 $59.8 (149.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

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APPENDIX A: FULL COST OF U.S. NRC PROGRAMS The fiscal year (FY) 2019 Congressional Budget Justification identifies the infrastructure and support costs for the NRC. The allocation methodology is consistent with the methodology used for preparing the agencys financial statements. The table below presents the associated infrastructure and support funding allocated to the programmatic funding to provide the full cost of each business line.

Corporate Support by Business Line (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Actuals Annualized CR Request FY 2018 Major Program $M FTE $M FTE $M FTE $M FTE Operating Reactors 187.6 390.5 181.5 436.6 187.1 380.4 5.6 (56.2)

New Reactors 52.5 111.5 51.8 124.7 48.2 97.9 (3.7) (26.8)

Nuclear Reactor Safety $240.1 502.1 $233.4 561.3 $235.3 478.3 $1.9 (83.0)

Fuel Facilities 13.2 27.7 12.9 31.0 13.1 26.6 0.2 (4.4)

Nuclear Materials Users 27.9 58.3 27.1 65.2 26.3 53.4 (0.8) (11.8)

Spent Fuel Storage and Transportation 12.0 25.0 11.6 28.0 12.2 24.8 (0.6) (3.1)

Decommissioning and Low-Level Waste 13.5 28.2 13.1 31.5 12.7 25.8 (0.4) (5.7)

High-Level Waste 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Nuclear Materials and Waste Safety $66.6 139.2 $64.7 155.7 $64.3 130.7 $(0.4) (25.0)

Integrated University Program 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total $306.7 641.3 $298.1 717.0 $299.6 609.0 $1.5 (108.0)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

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APPENDIX B: BUDGET AUTHORITY BY FUNCTION APPENDIX B: BUDGET AUTHORITY BY FUNCTION The NRCs budget authority is aggregated into the major categories of salaries and benefits, contract support, and travel. Salaries and benefits are estimated based on full-time equivalents (FTE), pay rates, pay raise assumptions, and effective pay periods for pay raises. Benefits costs include the Federal Governments contributions for retirement, health benefits, life insurance, Medicare, Social Security, and the Thrift Savings Plan. Contract support comprises obligations for commercial contracts; interagency agreements; grants; and other nontravel services, such as rent and utility payments. Travel costs primarily comprise expenses for site inspections at regulated facilities, meetings with stakeholders, and international travel.

Budget Authority by Function (Dollars in Millions)

FY 2018 FY 2019 Changes from Annualized CR Request FY 2018 Salaries & Expenses (S&E) $M $M $M Salaries and Benefits 551.1 585.8 34.7 Contract Support 325.1 347.5 22.4 Travel 22.6 24.8 2.2 Total (S&E) $898.9 $958.1 $59.2 Office of the Inspector General (OIG)

Salaries and Benefits 10.6 10.9 0.3 Contract Support 1.2 1.4 0.2 Travel 0.2 0.3 0.1 Total (OIG) $12.0 $12.6 $0.6 Total NRC Appropriations Salaries and Benefits 561.7 596.7 35.0 Contract Support 326.3 348.9 22.6 Travel 22.8 25.1 2.3 Total (NRC) $910.9 $970.7 $59.8

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

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APPENDIX C: ESTIMATED FEE RECOVERY APPENDIX C: ESTIMATED FEE RECOVERY The NRCs fee regulations are governed by the Independent Offices Appropriation Act of 1952 (IOAA) and the Omnibus Budget Reconciliation Act of 1990 (OBRA-90), as amended.

OBRA-90 requires the NRC to recover approximately 90 percent of its annual budget authority through fees, but this fee recovery requirement excludes specific amounts (i.e., nonfee items) identified in OBRA-90 or by other legislation. OBRA-90 requires the NRC to use its IOAA authority to collect user fees for NRC work that provides specific benefits to identifiable applicants and licensees as defined in Title 10 of the Code of Federal Regulations (10 CFR) Part 170, Fees for Facilities, Materials, Imports and Export Licenses, and other Regulatory Services under the Atomic Energy Act of 1954, as amended.

The NRC also assesses fees under 10 CFR Part 171, Annual Fees for Reactor Licenses and Fuel Cycle Licenses and Materials Licenses, including Holders of Certificates of Compliance, Registration, and Quality Assurance Program Approvals and Government Agencies Licensed by the NRC. These annual fees recover regulatory costs that are not otherwise collected through 10 CFR Part 170 fees, such as the costs of research and rulemaking activities.

The remaining portion of the NRCs annual budget authority that is not recovered through fees is used to offset certain budgeted activities, which the NRC refers to as fee-relief activities.

The 10 CFR Part 170 fee amount is estimated by license fee class using invoice data and adjustments to estimate workload projections. The agency develops the hourly rate used to collect 10 CFR Part 170 fees based on full-cost fee recovery guidance in accordance with Office of Management and Budget Circular No. A-25, User Charges, dated July 8, 1993. The rate is calculated by dividing the sum of recoverable budgeted resources for mission-direct and mission-indirect program salaries and benefits, and agency support costs (which include corporate support and Office of the Inspector General costs) by mission-direct full-time equivalents (FTE) converted to hours. Mission-direct resources are budgeted to perform core work activities to fulfill the agency mission under the direct business lines. Mission-indirect resources support the core mission-direct activities. These include, for example, supervisory support, nonsupervisory support, mission travel, and training.

The NRC allocates direct budgetary resources to nine license fee classes based on supporting activities: (1) operating power reactors, (2) spent fuel storage/reactor decommissioning, (3) research and test reactors and nonpower reactors, (4) fuel facilities, (5) materials users, (6) transportation, (7) uranium recovery, (8) import and export, and (9) rare earth. The 10 CFR Part 171 fee amount is calculated by license fee class by subtracting the estimated 10 CFR Part 170 fee amount from the allocated direct budgetary resources.

The following table delineates where the major portion of a business lines direct budgetary resources are allocated when calculating 10 CFR Part 171 fees for a license fee class. The indirect portion of a business lines resources (e.g., training, travel, mission support, and supervisors), as well as corporate support budgetary resources, are distributed among all license fee classes as part of the hourly rate.

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APPENDIX C: ESTIMATED FEE RECOVERY CROSSWALK OF BUSINESS LINES ALLOCATION TO FEE CLASSES*

Business Line License Fee Class Operating Reactors Power Reactors, Test and Research Reactors, Import/Export New Reactors Power Reactors Fuel Facilities Fuel Facilities Nuclear Materials Users Materials Users, Import/Export Spent Fuel Storage and Transportation Spent Fuel Storage/Reactor Decommissioning, Transportation Decommissioning and Low-level Waste Spent Fuel Storage/Reactor Decommissioning, Uranium Recovery

• Delineates where the major portion of a business lines direct budgetary resources are allocated for a license fee class. Does not include fee-relief activities. The NRC does not have licensees under the rare earth fee class at this time.

More information about 10 CFR Part 170 and 10 CFR Part 171 can be found on the NRCs public Web site at http://www.nrc.gov/about-nrc/regulatory/licensing/fees.html.

If the NRC receives the full amount requested for fiscal year (FY) 2019, the estimated fee recovery amount for FY 2019 is $815.4 million, as shown on the following page.

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APPENDIX C: ESTIMATED FEE RECOVERY Estimated Fee Recovery (Dollars in Millions)

FY 2018 FY 2019 Annualized CR Projection

$M $M Total Appropriation1 $910.9 $970.7 Less Non-Fee Items $(21.9) $(64.7)

Generic Homeland Security 15.1 14.6 Waste Incidental to Reprocessing 1.2 1.3 Advanced Reactors Regulatory Readiness 4.6 0.0 Nuclear Waste Fund 0.0 47.7 Defense Nuclear Facilities Safety Board 1.0 1.1 Balance $889.0 $906.0 Fee Recovery Percent 90.0 90.0 Fees to be Recovered $800.1 $815.4 Billing & Carryover Adjustments2 (0.8) (0.8)

Adjusted Fee Recovery Amount $799.3 $814.6 Estimated Part 170 Fees Percent3 37.0 37.0 Estimated Part 170 Fees Amount $295.7 $301.4 Estimated Part 171 Fees Percent3 63.0 63.0 Estimated Part 171 Fees Amount $503.5 $513.2

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.

1Includes both salaries and expenses and Office of the Inspector General appropriations.

2The NRC applies billing and carryover adjustments to the estimated fee recovery amount to account for the sum of unpaid current year invoices minus prior year invoices that will be paid in the budget request year.

3Assumes same percentage from prior year final fee rule.

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APPENDIX D:

SUMMARY

OF REIMBURSABLE WORK APPENDIX D:

SUMMARY

OF REIMBURSABLE WORK The NRC performs services for other Federal agencies and non-Federal organizations on a reimbursable basis. The NRCs reimbursable work is financed with funds provided by the ordering organization and represents additional funding in excess of the NRCs directly appropriated funds. The table below lists anticipated reimbursable funding by category per fiscal year (FY). Because reimbursable work agreements can be of small dollar amounts, the resources are shown to three decimal points in this appendix.

Summary of Reimbursable Work (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Description of Work Actuals Annualized CR Request FY 2018

$M FTE $M FTE $M FTE $M FTE TECHNICAL ASSISTANCE TO OTHER FEDERAL AGENCIES Employee Detail to U.S. Army 0.000 0.0 0.090 0.7 0.038 0.3 (0.052) (0.4)

Corps of Engineers (USACE)

Employee Detail to Domestic 0.184 1.0 0.221 1.0 0.225 1.0 0.004 0.0 Nuclear Detection Office (DHS)

Employee Detail to Office of 0.053 0.2 0.000 0.0 0.000 0.0 0.000 0.0 Environmental Management (DOE)

Employee Detail to Office of 0.056 0.4 0.000 0.1 0.000 0.0 0.000 (0.1)

Management and Budget (OMB)

Fuel Cycle Research and 0.049 0.2 0.100 0.5 0.100 0.5 0.000 0.0 Development (DOE)

Joint Funding of International Commission on Radiological 0.025 0.0 0.025 0.0 0.025 0.0 0.000 0.0 Protection Activities (EPA)

Mars 2020 Mission Interagency Nuclear Safety Review Panel 0.086 0.3 0.058 0.2 0.089 0.2 0.031 0.0 (NASA)

Office of Hearings and Appeals 0.041 0.2 0.000 0.0 0.000 0.0 0.000 0.0 Employee Detail (DOE)

Response to Hurricane Maria 0.000 0.0 1.400 0.0 0.000 0.0 (1.400) 0.0 (FEMA)

Revalidation of Selected Foreign Certificates for Packages (Casks) 0.024 0.1 0.000 0.3 0.000 0.3 0.000 0.0 (DOE)

U.S. Navy Reviews 0.004 0.1 0.012 0.1 0.012 0.1 0.000 0.0 Waste Actions for Hanford (DOE) 0.073 0.3 0.510 2.0 0.510 2.0 0.000 0.0 COOPERATIVE RESEARCH Foreign Cooperative Research 2.117 0.0 1.900 0.0 1.900 0.0 0.000 0.0 Agreements (Multiple)

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APPENDIX D:

SUMMARY

OF REIMBURSABLE WORK Summary of Reimbursable Work (Dollars in Millions)

FY 2017 FY 2018 FY 2019 Changes from Description of Work Actuals Annualized CR Request FY 2018

$M FTE $M FTE $M FTE $M FTE INTERNATIONAL ASSISTANCE International Invitational Travel (International Atomic Energy 0.243 0.0 0.400 0.0 0.400 0.0 0.000 0.0 Agency, foreign governments, and international organizations)

Invitational Travel (American 0.007 0.0 0.015 0.0 0.015 0.0 0.000 0.0 Institute in Taiwan)

SECURITY-RELATED ACTIVITIES Criminal History Program 1.623 2.3 1.700 2.0 1.700 2.0 0.000 0.0 Information Access Authorization 0.579 1.5 0.540 1.5 0.540 1.5 0.000 0.0 Program Material Access Authorization 0.028 0.2 0.000 0.5 0.000 0.5 0.000 0.0 Program FACILITIES REVENUE Parking Receipts 0.029 0.0 0.015 0.0 0.015 0.0 0.000 0.0 Recycling Reimbursements (GSA) 0.004 0.0 0.008 0.0 0.008 0.0 0.000 0.0 AGENCY TOTAL $5.225 6.8 $6.994 8.9 $5.577 8.4 ($1.417) (0.5)

$M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding. Does not include classified reimbursable work agreements. FY 2017 $M represent actual amounts obligated. FY 2018 and FY 2019 $M represent new reimbursable budget authority expected in the FY from Federal agencies or other outside sources.

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APPENDIX E: FITARA REQUIREMENTS APPENDIX E: FEDERAL INFORMATION TECHNOLOGY ACQUISITION REFORM ACT REQUIREMENTS August 23, 2017 MEMORANDUM TO: Office of Management and Budget FROM: David J. Nelson /RA/

Chief Information Officer Office of the Chief Information Officer U.S. Nuclear Regulatory Commission Maureen E. Wylie /RA/

Chief Financial Officer Office of the Chief Financial Officer U.S. Nuclear Regulatory Commission

SUBJECT:

INFORMATION TECHNOLOGY RESOURCE STATEMENTS In accordance with OMB Circular A-11, Sec. 51.3, the U.S. Nuclear Regulatory Commission (NRC) is providing this memorandum to demonstrate compliance with the Federal Information Technology Acquisition Reform Act (FITARA) through the following IT Resource Statements:

The NRCs Chief Information Officer (CIO) affirms that he has reviewed and approved the major information technology (IT) investments portion of the budget request.

The NRCs Chief Financial Officer (CFO) and CIO affirm that the agencys CIO had a significant role in reviewing planned IT support for major program objectives and significant increases and decreases in IT resources.

The NRCs CFO and CIO affirm that the IT Portfolio includes appropriate estimates of all IT resources included in the budget request.

The CIO's current common baseline rating for Element D, Item D1, CIO reviews and approves Major IT Investment portion of budget request, is Fully Implemented.

The NRC has developed and implemented its plan to ensure that the necessary processes and procedures are in place to fulfill these common baseline FITARA responsibilities.

The CIO can certify that the use of modular approaches and/or incremental development practices for contracts and projects associated with the Major IT Investment portion of the NRCs IT budget request.

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APPENDIX E: FITARA REQUIREMENTS INFORMATION TECHNOLOGY TABLE In enacting the Federal Information Technology Acquisition Reform Act, Congress established government-wide Information Technology/Information Management (IT/IM) management controls and required an inclusive governance process that enables effective planning, budgeting, and execution for IT/IM investments. Consistent with that mandate, Office of Management and Budget Circular A-11, Section 51.3 requires the following tabular presentation of the financial and personnel resources for all major IT investments, within each agency program area. For each major IT investment, this table provides the investment title, its unique investment identifier (UII), all principal supported program names, and budget authority level for the prior year (Fiscal Year (FY) 2017), current year (FY 2018), and budget year (FY2019).

NRC IT Table: Major IT Investments1 (Dollars in Millions)

(PRIOR YEAR) (CURRENT YEAR) (BUDGET YEAR)

Major IT Program FY 2017 ACTUALS FY 2018 ANNUALIZED CR FY 2019 UII Investment Title Area CS&T FTE Total CS&T FTE Total CS&T FTE Total 429- Financial Financial 9.620 6.42 10.612 9.432 10.00 10.968 10.737 9.00 12.321 00000 Services Management 2500 429- Enterprise-wide Financial 4.425 4.04 5.051 4.485 3.00 4.496 5.906 2.00 6.258 00000 Acquisition Management 2600 Services 429- Incident Nuclear 3.231 2.10 3.590 3.430 3.00 3.939 4.297 5.00 5.217 00000 Response Reactor 3600 Safety 429- IT Security and Corporate 7.504 19.91 10.585 00000 Compliance2 Support 6200 429- Data Center and Corporate 12.362 10.77 14.028 00000 Hosting2 Support 6500 429- Data Center and Nuclear 0.063 0.00 0.063 00000 Hosting2 Reactor 6500 Safety 429- Office Corporate 12.197 7.66 13.383 00000 Automation and Support 6700 User Support2 429- Office Nuclear 1.580 1.00 1.734 00000 Automation and Materials and 6700 User Support2 Waste Safety 429- Office Nuclear 3.751 0.00 3.751 00000 Automation and Reactor 6700 User Support2 Safety 429- Materials Nuclear 9.862 4.38 10.611 8.951 6.50 10.055 8.179 6.00 9.289 00000 Licensing and Materials and 8200 Oversight Waste Safety 429- Reactor Nuclear 8.533 9.88 10.222 7.109 13.00 9.317 6.845 12.00 9.070 00000 Licensing and Reactor 8400 Oversight Safety Total 72.676 97.00 73.128 66.16 83.630 33.407 35.50 38.775 35.964 Note 1: Table represents Actual Expenditures for FY 2017 (PY), Annualized CR for FY 2018 (CY), and Agency Budget Request for FY 2019 (BY), as required by OMB Circular A-11, Section 55, "Information Technology Investments" (page 5) https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/assets/a11_current_year/a11_2017/s55.pdf Note 2: Investment changed from Major Investment to Standard Infrastructure Investment for FY 2018 and 2019 per FY 2019 IT Budget

- Capital Planning Guidance.

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APPENDIX F:

SUMMARY

OF PLANNED RULEMAKING ACTIVITIES APPENDIX F:

SUMMARY

OF PLANNED RULEMAKING ACTIVITIES (AS OF JANUARY 19, 2018)

The table below lists of all of the NRCs rulemaking activities, including their priority and schedule, as of December 5, 2017. Of the 80 rulemaking activities listed, 59 are planned rulemaking activities and 21 are petitions for rulemaking that are currently under NRC review.

The total rulemaking budget for fiscal year (FY) 2019 includes $1.03 million and 97 full-time equivalents. The most current information available on the status of the NRCs rulemaking activities is on the NRC public Web site at https://www.nrc.gov/about-nrc/regulatory/rulemaking/rules-petitions.html.

Regulatory Proposed Proposed Final Rule Associated Rulemaking Final Rule Item CPR Docket Basis Rule to Rule to Category Title RIN PRM Initiation Publication

1. Priority ID Publication Signature Publication Signature Numbers Date Date Date Authority Date Authority 2018 Edition of the American Society of NRC-Rulemaking Mechanical 3150-1 Engineers High 2017- N/A 12/06/2016 N/A 11/30/2019 12/31/2019 02/28/2021 03/01/2021 Actions AJ97 Operations and 0028 Maintenance Code 2019 Edition of the American Society of NRC-Rulemaking 2 Mechanical High N/A 2017- N/A 11/02/2017 N/A N/A N/A N/A N/A Actions Engineers Boiler 0226 and Pressure Vessel Code Advanced Power Reactor NRC-Rulemaking (APR)-1400 3150-3 (KEPCO/KHNP) High 2015- N/A 03/04/2015 06/27/2018 08/19/2018 10/01/2018 03/16/2019 05/27/2019 Actions AJ67 Design 0224 Certification American Society of Mechanical NRC-Rulemaking Engineers 2015 3150-4 - 2017 Code High 2016- N/A 07/01/2015 N/A 01/17/2018 03/30/2018 01/17/2019 03/29/2019 Actions AJ74 Editions 0082 Incorporation by Reference Cyber Security NRC-Rulemaking 3150-5 for Fuel High 2015- N/A 03/24/2015 04/12/2016 10/06/2017 04/06/2018 08/24/2018 02/21/2019 Actions Facilities AJ64 0179 Drug and Alcohol Testing; NRC- PRM-26-4, Rulemaking 3150-6 Technical Issues High 2012- PRM-26-7, N/A 09/01/2019 09/01/2020 02/01/2021 12/01/2021 05/01/2022 Actions and Editorial AJ15 0079 PRM-26-8 Changes Enhanced Security for NRC-Rulemaking 3150-7 Special Nuclear High 2014- N/A 02/08/2006 04/22/2015 09/28/2018 03/15/2019 12/27/2019 06/15/2020 Actions Material AJ41 0118 (formerly FY 2019 Congressional Budget Justification l 131

APPENDIX F:

SUMMARY

OF PLANNED RULEMAKING ACTIVITIES Regulatory Proposed Proposed Final Rule Associated Rulemaking Final Rule Item CPR Docket Basis Rule to Rule to Category Title RIN PRM Initiation Publication

1. Priority ID Publication Signature Publication Signature Numbers Date Date Date Authority Date Authority Physical Protection for Category I, II, and III Special Nuclear Material)

Enhanced Weapons for Spent Fuel NRC-Rulemaking Storage 3150-8 Installations and High 2015- N/A 08/15/2008 03/29/2019 03/26/2020 09/11/2020 03/25/2021 09/10/2021 Actions AJ55 Transportation-- 0018 Section 161A Authority Enhanced Weapons, Firearms NRC-Rulemaking 3150-9 Background High 2011- N/A 08/08/2005 N/A 03/16/2015 09/22/2015 12/01/2017 09/03/2018 Actions Checks, and AI49 0018 Security Event Notifications Fitness-for-Duty NRC-Rulemaking Drug Testing 3150-10 Program High 2009- N/A 09/01/2012 07/01/2013 02/22/2017 01/31/2018 09/03/2018 01/31/2019 Actions AI67 Requirements 0225 Greater-Than- NRC-Rulemaking Class-C and 3150-11 Transuranic High 2017- N/A 12/22/2015 10/29/2018 N/A N/A N/A N/A Actions AK00 Waste 0081 Independent Spent Fuel NRC-Rulemaking Storage 3150-12 Installation High 2009- PRM-72-6 N/A 12/28/2020 07/28/2022 01/28/2023 12/28/2023 06/28/2024 Actions AI78 Security 0558 Requirements Industrial NRC-Rulemaking Radiographic 13 Operations and High N/A 2017- PRM-34-6 N/A N/A N/A N/A N/A N/A Actions Training 0022 Integrated Radioactive NRC-Rulemaking 14 Source Security High N/A 2015- PRM-37-1 N/A N/A N/A N/A N/A N/A Actions and 0094 Accountability List of Approved Spent Fuel Storage Cask Rulemaking 15 [This is a High N/A N/A N/A N/A N/A N/A N/A N/A N/A Actions placeholder for several annually recurring rules.]

Low-Level NRC-Rulemaking 3150-16 Radioactive High 2011- N/A 03/18/2009 N/A 07/18/2013 03/26/2015 05/03/2019 08/05/2019 Actions Waste Disposal AI92 0012 FY 2019 Congressional Budget Justification l 132

APPENDIX F:

SUMMARY

OF PLANNED RULEMAKING ACTIVITIES Regulatory Proposed Proposed Final Rule Associated Rulemaking Final Rule Item CPR Docket Basis Rule to Rule to Category Title RIN PRM Initiation Publication

1. Priority ID Publication Signature Publication Signature Numbers Date Date Date Authority Date Authority Medical Use of Byproduct Material--

Medical Event NRC-Rulemaking 3150-17 Definitions, High 2008- PRM-35-20 01/16/2009 N/A 08/08/2013 07/21/2014 06/17/2016 02/09/2018 Actions Training and AI63 0175 Experience, and Clarifying Amendments PRM-50-96, PRM-50-97, Mitigation of NRC- PRM-50-98, Rulemaking Beyond Design 3150-18 Basis Events High 2014- PRM 10/18/2011 07/23/2013 04/30/2015 11/13/2015 12/15/2016 04/16/2018 Actions AJ49 (MBDBE) 0240 100, PRM-50-101, PRM-50-102 NuScale Small NRC-Rulemaking Modular Reactor 3150-19 Design High 2017- N/A 03/23/2017 06/23/2020 07/18/2020 09/03/2020 11/06/2020 01/08/2021 Actions AJ98 Certification 0029 Performance-Based Emergency NRC-Rulemaking 3150- PRM-50-71, 20 Core Cooling High 2008- 03/31/2003 07/31/2008 03/01/2012 03/24/2014 03/16/2016 04/05/2018 Actions System AH42 PRM-50-84 0332 Acceptance Criteria Regulatory Guide (RG) 1.84, Rev. 38; RG 1.147, Rev.

19; and RG NRC-Rulemaking 1.192, Rev. 3; 3150-21 Approval of High 2017- N/A 07/01/2014 N/A 03/02/2018 05/01/2018 02/04/2019 05/01/2019 Actions AJ93 American 0024 Society of Mechanical Engineers Code Cases Regulatory Guide (RG) 1.84, Rev. 39; and RG 1.147, Rev. 20; and NRC-Rulemaking 1.192, Rev. 4; 3150-22 Approval of High 2017- N/A 05/01/2016 N/A 02/28/2019 03/31/2019 02/28/2020 03/31/2020 Actions AJ94 American 0025 Society of Mechanical Engineers Code Cases Regulatory Improvements NRC-Rulemaking 3150-23 for Power High 2015- N/A 12/30/2014 11/27/2017 05/07/2018 11/07/2018 10/07/2019 02/07/2020 Actions Reactors AJ59 0070 Transitioning to FY 2019 Congressional Budget Justification l 133

APPENDIX F:

SUMMARY

OF PLANNED RULEMAKING ACTIVITIES Regulatory Proposed Proposed Final Rule Associated Rulemaking Final Rule Item CPR Docket Basis Rule to Rule to Category Title RIN PRM Initiation Publication

1. Priority ID Publication Signature Publication Signature Numbers Date Date Date Authority Date Authority Decommissionin g

Revision of Fee NRC-Rulemaking Schedules: Fee 3150-24 Recovery for FY High 2017- N/A 11/13/2017 N/A 01/13/2020 01/31/2020 05/12/2020 05/29/2020 Actions AK11 2020 0228 Revision of Fee NRC-Rulemaking Schedules: Fee 3150-25 Recovery for FY High 2017- N/A 10/19/2017 N/A 01/12/2018 01/30/2018 05/12/2018 05/30/2018 Actions AJ95 2018 0026 Revision of Fee NRC-Rulemaking Schedules: Fee 3150-26 Recovery for FY High 2017- N/A 10/19/2018 N/A 01/12/2019 01/30/2019 05/12/2019 05/30/2019 Actions AJ99 2019 0032 U.S. Advanced Boiling Water NRC-Rulemaking Reactor (US- 3150-27 ABWR) Design High 2017- N/A 03/30/2017 12/01/2017 11/01/2017 12/01/2017 07/01/2018 08/01/2018 Actions AK04 Certification 0090 Renewal U.S. Advanced Pressurized NRC-Rulemaking Water Reactor 3150-28 (US-APWR) High 2010- N/A 02/29/2008 N/A N/A N/A N/A N/A Actions AI83 Design 0133 Certification 10 CFR Part 110, Export and Import of NRC-Rulemaking Nuclear 3150-29 Equipment and Medium 2014- N/A 09/01/2014 N/A 03/01/2018 05/01/2018 03/01/2019 05/01/2019 Actions AJ45 Material; 0201 Updates and Clarifications Access Authorization NRC-Rulemaking 3150-30 and Fitness-for- Medium 2016- N/A 06/06/2016 02/04/2019 09/18/2019 12/31/2019 10/30/2020 04/30/2021 Actions Duty AJ79 0145 Determinations Adjustment of NRC-Rulemaking Civil Penalties 3150-31 for Inflation for Medium 2017- N/A 11/15/2018 N/A N/A N/A 12/15/2018 01/15/2019 Actions AK02 FY 2019 0088 Amendments to NRC-Rulemaking Material Control 3150-32 and Accounting Medium 2009- N/A 02/05/2009 N/A 09/30/2013 11/08/2013 06/27/2018 12/14/2018 Actions AI61 Regulations 0096 Cyber Security NRC-Rulemaking for Byproduct 3150-33 Material Medium 2015- N/A N/A 03/30/2018 03/30/2019 09/30/2019 03/30/2020 09/30/2020 Actions AJ56 Licensees 0019 Decommissionin g Financial NRC-Rulemaking Assurance for 34 Germanium- Medium N/A 2017- N/A N/A N/A N/A N/A N/A N/A Actions 68/Gallium-68 0031 Generators FY 2019 Congressional Budget Justification l 134

APPENDIX F:

SUMMARY

OF PLANNED RULEMAKING ACTIVITIES Regulatory Proposed Proposed Final Rule Associated Rulemaking Final Rule Item CPR Docket Basis Rule to Rule to Category Title RIN PRM Initiation Publication

1. Priority ID Publication Signature Publication Signature Numbers Date Date Date Authority Date Authority Returned to Manufacturers or Distributors Emergency Preparedness Requirements NRC-Rulemaking for Small 3150-35 Modular Medium 2015- N/A 06/22/2016 11/15/2017 10/12/2018 01/11/2019 02/14/2020 08/14/2020 Actions AJ68 Reactors and 0225 Other New Technologies Financial NRC-Rulemaking Qualifications for 3150-36 Reactor Medium 2014- N/A 04/24/2014 N/A 04/30/2018 07/31/2018 01/04/2019 07/05/2019 Actions AJ43 Licensing 0161 Geologic Repository NRC-Rulemaking Operations Area 3150-37 (GROA) Fitness- Medium 2009- N/A N/A 09/17/2040 03/17/2042 09/17/2042 09/17/2043 03/17/2044 Actions AI38 For-Duty 0089 Requirements39 Geologic Repository Operations Area NRC-Rulemaking 3150-38 Security and Medium 2007- N/A N/A 03/16/2040 09/16/2041 03/16/2042 03/16/2043 09/16/2043 Actions Material Control AI06 0670 and Accounting Requirements40 Groundwater Protection In NRC-Rulemaking Situ Leach 3150-39 Uranium Medium 2008- N/A 03/24/2006 N/A 11/19/2018 05/20/2019 03/20/2020 09/20/2020 Actions AI40 Recovery 0421 Facilities Incorporation of Lessons Learned From New Reactor NRC-Rulemaking Licensing 3150-40 Process (Parts Medium 2009- N/A 09/22/2015 N/A N/A N/A N/A N/A Actions AI66 50 and 52 0196 Licensing Process Alignment) 39 This rulemaking activity is currently on hold due to the limited resources available for Yucca Mountain activities. Should Congressional appropriations become available, NRC would initiate the requisite rulemaking activities consistent with the resources and schedule for the Yucca Mountain licensing process. In addition, the NRC would update the dates reflected in this table, which are simply temporary placeholders.

40 This rulemaking activity is currently on hold due to the limited resources available for Yucca Mountain activities. Should Congressional appropriations become available, NRC would initiate the requisite rulemaking activities consistent with the resources and schedule for the Yucca Mountain licensing process. In addition, the NRC would update the dates reflected in this table, which are simply temporary placeholders.

FY 2019 Congressional Budget Justification l 135

APPENDIX F:

SUMMARY

OF PLANNED RULEMAKING ACTIVITIES Regulatory Proposed Proposed Final Rule Associated Rulemaking Final Rule Item CPR Docket Basis Rule to Rule to Category Title RIN PRM Initiation Publication

1. Priority ID Publication Signature Publication Signature Numbers Date Date Date Authority Date Authority Items Containing Byproduct Material Incidental to Production NRC-Rulemaking 3150-41 (formerly Medium 2015- PRM-30-65 08/13/2012 03/30/2018 03/30/2019 09/30/2019 09/30/2020 03/30/2021 Actions Polymer AJ54 0017 (Polycarbonate or Polyester)

Track Etched (PCTE)

Membranes)

Miscellaneous Administrative Rulemaking

[This is a placeholder is Rulemaking 42 for one or more Medium N/A N/A N/A N/A N/A N/A N/A N/A N/A Actions rules making administrative or corrective changes to the CFR]

Modified Small NRC-Rulemaking 3150-43 Quantities Medium 2015- N/A 07/18/2016 N/A N/A N/A 03/31/2017 02/09/2018 Actions Protocol (SQP) AJ70 0263 Non-power Production or NRC-Rulemaking 3150-44 Utilization Medium 2011- N/A 08/26/2009 10/02/2012 04/07/2016 03/30/2017 09/21/2018 07/18/2019 Actions Facility License AI96 0087 Renewal Price Anderson Adjustment of NRC-Rulemaking 3150-45 Deferred Medium 2017- N/A 03/15/2017 N/A N/A N/A 11/16/2017 11/30/2018 Actions Premiums for AK01 0030 Inflation Reactor Vessel Material NRC-Rulemaking Surveillance 3150-46 Program Medium 2017- N/A 08/08/2014 10/17/2018 09/16/2019 12/16/2019 09/16/2020 12/15/2020 Actions AK07 Requirements 0151 (Appendix H)

Receipts-Based NRC-Rulemaking 3150-47 Small Business Medium 2014- N/A N/A N/A N/A N/A N/A N/A Actions Size Standards AJ51 0264 Revisions to Reactor Vessel NRC-Rulemaking Material 3150-48 Surveillance Medium 2008- PRM-50-69 08/08/2014 09/17/2018 09/16/2019 12/16/2019 09/16/2020 12/15/2020 Actions AG98 Program 0582 Requirements Security NRC-Rulemaking Requirements 49 for Advanced Medium N/A 2017- N/A N/A N/A N/A N/A N/A N/A Actions Reactors 0227 FY 2019 Congressional Budget Justification l 136

APPENDIX F:

SUMMARY

OF PLANNED RULEMAKING ACTIVITIES Regulatory Proposed Proposed Final Rule Associated Rulemaking Final Rule Item CPR Docket Basis Rule to Rule to Category Title RIN PRM Initiation Publication

1. Priority ID Publication Signature Publication Signature Numbers Date Date Date Authority Date Authority Revisions to Transportation Safety Requirements and NRC-Rulemaking Compatibility 3150-50 with Medium 2016- N/A 08/19/2016 01/29/2019 06/30/2019 12/30/2019 06/30/2020 12/30/2020 Actions AJ85 International 0179 Atomic Energy Agency Transportation Standards Spent Fuel Cask Certificate of NRC-Rulemaking 51 Compliance Medium N/A 2014- PRM-72-7 N/A N/A N/A N/A N/A N/A Actions Format and 0067 Content NRC-Rulemaking Spent Fuel 3150-52 Reprocessing Medium 2015- N/A N/A 07/26/2021 07/26/2022 01/26/2023 07/26/2023 01/26/2024 Actions AJ53 0016 U.S. Nuclear Regulatory Commission NRC-Rulemaking 3150-53 Acquisition Medium 2014- N/A 06/01/2014 N/A 06/01/2019 07/01/2019 10/01/2019 11/01/2019 Actions Regulation AJ36 0033 (NRCAR) - 48 CFR Chap. 20 Alternatives to the Use of NRC-Rulemaking Credit Ratings 3150-54 (formerly Dodd- Low 2017- N/A 09/01/2014 N/A N/A N/A 04/01/2020 08/01/2020 Actions AJ92 Frank Act of 0021 2010)

Price-Anderson NRC-Rulemaking 3150-55 Inflation Low 2017- N/A 12/06/2016 N/A N/A N/A 06/15/2018 07/31/2018 Actions Adjustment AJ96 0027 Requirement to Submit NRC-Rulemaking 56 Complete and Low N/A 2013- PRM-50-107 N/A N/A N/A N/A N/A N/A Actions Accurate 0077 Information Update to Fees for Search and NRC-Rulemaking Review of 3150-57 Agency Records Low 2017- N/A 06/12/2017 N/A 11/30/2017 02/28/2018 11/30/2017 02/28/2018 Actions AK06 by NRC 0144 Personnel Agency Procedures for Responding to NRC-Petition Adverse Court 58 Decisions and N/A N/A 2015- PRM-2-15 N/A N/A N/A N/A N/A N/A Actions Addressing 0264 Funding Shortfalls FY 2019 Congressional Budget Justification l 137

APPENDIX F:

SUMMARY

OF PLANNED RULEMAKING ACTIVITIES Regulatory Proposed Proposed Final Rule Associated Rulemaking Final Rule Item CPR Docket Basis Rule to Rule to Category Title RIN PRM Initiation Publication

1. Priority ID Publication Signature Publication Signature Numbers Date Date Date Authority Date Authority Calculated Maximum Fuel NRC-Petition 59 Element N/A N/A 2009- PRM-50-93 N/A N/A N/A N/A N/A N/A Actions Cladding 0554 Temperature Calculated Maximum Fuel NRC-Petition 60 Element N/A N/A 2009- PRM-50-95 N/A N/A N/A N/A N/A N/A Actions Cladding 0554 Temperature Determining Which Structures, NRC-Petition Systems, and 61 Components N/A N/A 2015- PRM-50-112 N/A N/A N/A N/A N/A N/A Actions and Functions 0213 are Important to Safety NRC-Petition Enhancing 62 Reactor Safety N/A N/A 2011- PRM-50-99 N/A N/A N/A N/A N/A N/A Actions 0189 Erik Erb -

Minimum Day NRC-Petition 63 Off Requirement N/A N/A 2010- PRM-26-6 N/A N/A N/A N/A N/A N/A Actions for Security 0310 Officers Fire Protection NRC-Petition 64 Compensatory N/A N/A 2017- PRM-50-115 N/A N/A N/A N/A N/A N/A Actions Measures 0132 Improved Identification Techniques NRC-Petition Against Alkali-65 Silica Concrete N/A N/A 2014- PRM-50-109 N/A N/A N/A N/A N/A N/A Actions Degradation at 0257 Nuclear Power Plants In-Core Temperature NRC-Petition 66 Monitoring at N/A N/A 2015- PRM-50-111 N/A N/A N/A N/A N/A N/A Actions Nuclear Power 0124 Plants Individual Monitoring NRC-Petition Devices for 67 Industrial N/A N/A 2016- PRM-34-7 N/A N/A N/A N/A N/A N/A Actions Radiographic 0182 Personnel Large Break NRC-Petition Loss of Coolant 68 Accident N/A N/A 2002- PRM-50-75 N/A N/A N/A N/A N/A N/A Actions Redefinition 0018 Linear No- NRC-Petition Threshold Model 69 and Standards N/A N/A 2015- PRM-20-28 N/A N/A N/A N/A N/A N/A Actions for Protection 0057 FY 2019 Congressional Budget Justification l 138

APPENDIX F:

SUMMARY

OF PLANNED RULEMAKING ACTIVITIES Regulatory Proposed Proposed Final Rule Associated Rulemaking Final Rule Item CPR Docket Basis Rule to Rule to Category Title RIN PRM Initiation Publication

1. Priority ID Publication Signature Publication Signature Numbers Date Date Date Authority Date Authority against Radiation Linear No-Threshold Model NRC-Petition and Standards 70 for Protection N/A N/A 2015- PRM-20-29 N/A N/A N/A N/A N/A N/A Actions against 0057 Radiation Linear No-Threshold Model NRC-Petition and Standards 71 for Protection N/A N/A 2015- PRM-20-30 N/A N/A N/A N/A N/A N/A Actions against 0057 Radiation Measurement and Control of NRC-Petition 72 Combustible N/A N/A 2011- PRM-50-103 N/A N/A N/A N/A N/A N/A Actions Gas Generation 0189 and Dispersal Naturally-Occurring and NRC-Petition Accelerator-73 Produced N/A N/A 2017- PRM-30-66 N/A N/A N/A N/A N/A N/A Actions Radioactive 0159 Materials Nuclear Energy NRC-Petition Institute -

74 Fitness-for-Duty N/A N/A 2010- PRM-26-5 N/A N/A N/A N/A N/A N/A Actions Programs 0304 Power Reactors NRC-Petition 75 in Extended N/A N/A 2016- PRM-50-114 N/A N/A N/A N/A N/A N/A Actions Shutdowns 0204 Professional Reactor NRC-Petition Operator 76 Society - N/A N/A 2009- PRM-26-3 N/A N/A N/A N/A N/A N/A Actions Fitness-for-Duty 0482 Programs Protection of Digital Computer NRC-Petition and 77 Communication N/A N/A 2014- PRM-73-18 N/A N/A N/A N/A N/A N/A Actions Systems and 0165 Networks Risk-Informed Categorization and Treatment NRC-Petition of Structures, 78 Systems, and N/A N/A 2015- PRM-50-110 N/A N/A N/A N/A N/A N/A Actions Components for 0028 Nuclear Power Reactors FY 2019 Congressional Budget Justification l 139

APPENDIX G: OBLIGATIONS BY CONTROL POINT APPENDIX G: OBLIGATIONS BY CONTROL POINT The table below provides the status of the NRCs budget allowance and execution data by control points as of the end of fiscal year (FY) 2017 and the available prior year carryover for allocation.

FY 2019 Congressional Budget Justification l 141

Nuclear Regulatory Commission Monthly Congressional Status Report September 30, 2017 (Dollars in Thousands)

Current Year Budget FY 2017 Explanatory Statement Carryover Current Year Current Year Current Year Current Year Prior Year 4

Enacted Carryover Total Reprogramming Current Plan Allocated Total Obligations Expenditures Unobligated Unliquidated Unliquidated Control Points Nuclear Reactor Safety (excludes Advanced Reactor 1

Regulatory Infrastructure Activities) $ 447,089 $ 10,211 $ 457,300 $0 $ 457,300 $ 2,079 $ 459,379 $ 456,392 $ 394,065 $ 2,987 $ 62,327 $ 29,770 Advanced Reactor Regulatory Infrastructure Activities 5,000 0 5,000 0 5,000 0 5,000 3,929 1,300 1,071 2,629 0 1

Nuclear Materials and Waste Safety 111,189 2,511 113,700 105 113,805 373 114,178 113,551 92,863 691 20,688 2,473 1

Decommissioning and Low-Level Waste 26,599 601 27,200 - 105 27,095 1,216 28,311 26,767 21,164 1,544 5,603 1,092 Corporate Support (excludes Office of the Commission) 1,2 295,623 6,677 302,300 0 302,300 1,283 303,583 302,325 189,973 1,259 112,351 35,452 3

Office of the Commission 4,500 3,000 7,500 0 7,500 454 7,954 4,275 4,248 3,679 28 31 1

Integrated University Program $ 15,000 $0 $ 15,000 $0 $ 15,000 $ 16 $ 15,016 $ 15,000 $ 126 $ 16 $ 14,874 $ 28,907 University Research and Development 10,000 0 10,000 0 10,000 15 10,015 10,000 67 15 9,933 19,954 Nuclear Science & Engineering Grant Program 5,000 0 5,000 0 5,000 1 5,001 5,000 59 1 4,940 8,953 Control Points Total $ 905,000 $ 23,000 $ 928,000 $0 $ 928,000 $ 5,422 $ 933,422 $ 922,239 $ 703,739 $ 11,183 $ 218,500 $ 97,725 Programs Nuclear Waste Fund 0 0 0 0 0 974 974 882 813 92 69 5 Office of Inspector General 11,160 0 11,160 0 11,160 1,166 12,326 11,307 10,695 1,018 612 270 FY 2019 Congressional Budget Justification l 142 OIG DNFSB 969 0 969 0 969 318 1,287 874 765 413 109 23 Total Agency $ 917,129 $ 23,000 $ 940,129 $0 $ 940,129 $ 7,879 $ 948,008 $ 935,302 $ 716,012 $ 12,706 $ 219,290 $ 98,022 APPENDIX G: OBLIGATIONS BY CONTROL POINT NRC's Prior Year Unobligated Funds by Fund Source Beginning Year to Date Total Total Carryover Available Funds Source Balance Deobligations Carryover Allocated Carryover Feebased $ 25,956 $ 14,486 $ 40,441 $ 24,932 $ 15,509 Special Purpose Funds $ 4,253 $ 59 $ 4,311 $ 3,490 $ 822 Office of the Commission 3,478 11 3,489 3,454 34 General Fund 587 0 587 0 587 Integrated University Program 95 47 142 16 126 Official Representation Fund 25 1 26 20 7 USAID 68 0 68 0 68 Feebased & Special Purpose Funds Subtotal $ 30,208 $ 14,544 $ 44,753 $ 28,422 $ 16,331 Nuclear Waste Fund 1,382 32 1,414 974 440 Office of Inspector General 2,354 101 2,455 1,166 1,289 5

OIG DNFSB 323 -2 320 318 3 Total Agency $ 34,267 $ 14,675 $ 48,942 $ 30,879 $ 18,064 Note: Numbers may not add due to rounding.

1 The five control points as identified in the FY 2017 Explanatory Statement.

2 Data Act Implementation, $543K as identified in the FY 2017 Explanatory Statement, is part of the Corporate Support control point. The NRC has obligated and expended $543K of these funds.

3 The Office of the Commission's carryover of $3,000K has been fully implemented with an additional $454K. The NRC will obligate no more than a total of $7,500K in FY 2017 for the Office of the Commission.

4 This does not include the $23 million of carryover that was authorized for use by the FY 2017 Explanatory Statement.

5 Normal salaries and benefits adjustments made in prior years resulted in a negative balance in the "Year to Date Deobligations" column.

APPENDIX H: REPORT ON DRUG TESTING APPENDIX H: REPORT ON DRUG TESTING The U.S. Congress and the U.S. Department of Health and Human Services (HHS) initially approved the NRCs Drug Testing Program in August 1988, and the agency subsequently updated the program in November 1997. The NRC revised the program again and received approval from HHS on August 23, 2007. The NRCs drug testing requirements for the nuclear industry (licensees), as imposed by agency regulations, are separate and distinct from this program and are not covered by this report. The NRCs Drug Testing Program, administered in accordance with Executive Order 12564, Drug-Free Federal Workplace, dated September 15, 1986, includes random, applicant, voluntary, followup, reasonable suspicion, and accident-related drug testing. The NRC initiated testing for nonbargaining unit employees in November 1988, and in December 1990 for bargaining unit employees, after an agreement was negotiated with the National Treasury Employees Union. On August 25, 2008, the NRC expanded its testing program to include all NRC sensitive positions as testing designated; therefore, all employees became subject to random drug testing.

During fiscal year (FY) 2017, the NRC conducted approximately 2,078 tests of all types. There were five positive drug test results (two for marijuana, two for nonprescription opiates, and one for cocaine) for four individuals. Two of these individuals completed the required outpatient treatment programs and are currently participating in the agencys followup drug testing portion of the program. A third individual tested positive a second time and subsequently retired. The fourth person resigned.

The NRC also completed internal quality control reviews during FY 2017 to ensure that the agency continues to administer its Drug Testing Program in a fair, confidential, and effective manner.

The NRCs Drug Testing Program follows the principles and guidance contained in Executive Order 12564, Public Law 100-71, HHS guidelines, and Commission decisions.

FY 2019 Congressional Budget Justification l 143

APPENDIX I: GLOSSARY APPENDIX I: GLOSSARY Actuals Obligations against budget authority for salaries and benefits, contract support, and travel.

Obligations are legally binding agreements that will result in an outlay of funds.

Agency Support Agency support costs are located in executive, administrative, and other support offices such as the Office of the Commission, the Office of the Secretary, the Office of the Executive Director for Operations, the Offices of Congressional and Public Affairs, the Office of the Inspector General, the Office of Administration, the Office of the Chief Financial Officer, the Office of the Chief Information Officer, the Office of the Chief Human Capital Officer and the Office of Small Business and Civil Rights. These budgeted costs administer the corporate or shared efforts that more broadly support the activities of the agency. These activities also include information technology services, human capital services, financial management and administrative support.

Budget Authority Authority provided by law to incur financial obligations that will result in outlays. The NRC budget authority is provided by appropriations and reimbursable budget authority. References to budget authority in this Congressional Budget Justification are to appropriations.

Control Points Subdivisions of the NRCs appropriations established by Congress to ensure that the NRC executes its budget in accordance with Congressional direction. These are identified at the agencys program level and/or a lower level within the NRCs budget structure. Congress identifies reprogramming funding thresholds for each control point.

Corporate Indirect Supervisory and administrative support for corporate activities. Budgeted within Corporate Support product lines.

Corporate Support A set of centrally managed overhead activities that are necessary for the NRC staff and agency programs to achieve mission goals efficiently and effectively. Includes both general administrative overheade.g., facilities management, information technology, financial management, and human resource managementand agency policy support, including the Commission.

Fiscal Year 2018 Annualized Continuing Resolution Resource levels provided in NRCs FY 2017 Enacted Budget, adjusted to reflect an across-the-board reduction to maintain adherence to the discretionary spending limitations provided by the Budget Control Act of 2011, as amended.

FY 2019 Congressional Budget Justification l 145

APPENDIX I: GLOSSARY Full Cost Total resources used to produce outputs under a Major Program Business Line. The full cost of a business line is the sum of (1) the cost of direct resources within the business line, (2) the cost of mission indirect resources within the business line, and (3) a proportional share of Corporate Support costs budgeted at the agency level.

Full-time Equivalent Basic measure of the levels of employment used in the budget. It is the total number of hours worked (or to be worked) divided by the number of compensable hours applicable to each fiscal year.

Generic Homeland Security Security-related activities related to intergovernmental coordination and communication regarding intelligence, threat demographic data, and non-IT information security activities. Activities also includes coordination and exchange of information between local, state, and federal agencies on security-related matters, as well as international activities involving security matters reviews.

Major Program An organized set of functions, processes and activities directed toward execution of a major element of the agencys mission and the achievement of related strategic goals and objectives. The NRCs two major programs are Nuclear Reactor Safety and Nuclear Materials and Waste Safety.

Major Program Business Line (Business Line)

A class of functions, processes and activities that implement a significant component of a major program. The Nuclear Reactor Safety Program is implemented through the Operating Reactors and New Reactors Business Lines. The Nuclear Materials and Waste Safety Program is implemented through the Fuel Facilities, Nuclear Materials Users, Decommissioning and Low-Level Waste, and Spent Fuel Storage and Transportation Business Lines.

Mission Direct Resources allocated to perform core work activities committed to fulfilling the agency mission of protecting the public health and safety, promoting the common defense and security, and protecting the environment. Resources for core work activities are budgeted within the Major Program Business Lines, under the direct product linese.g., Licensing, Oversight, Event Response, Rulemaking, and Research.

Mission Indirect Supervisory and nonsupervisory support and mission travel and training that support the core mission-direct activities performed by the program offices and the regions. Mission indirect resources are budgeted within Major Program Business Lines in the Travel, Training, and Mission Support and Supervisors Product Lines.

FY 2019 Congressional Budget Justification l 146

APPENDIX I: GLOSSARY Mission Support Supervisory and nonsupervisory support for the core work activities of the program offices and the regions. Budgeted within the Major Program Business Lines in the Mission Support and Supervisors Product Line.

Net Budget Authority (Net Appropriated)

NRCs remaining budget authority after its appropriations are offset by fees collected, and represents the portion of appropriations that are funded from the general fund of the U.S.

Treasury and the Nuclear Waste Fund.

Non-Fee Items (Not Fee-Billable)

NRC activities which are funded from appropriations excluded from fee recovery by 42 USC 2214 (Section 6101 of the Omnibus Budget Reconciliation Act of 1990 [OBRA-90]) and NRC appropriations language.

Product Line Categories of agency work functions performed under a business line.

Reimbursable Budget Authority Budget authority provided by funds from other Federal agencies and receipts from non-Federal organizations. This authority represents additional funding in excess of NRCs directly appropriated funds.

Salaries and Benefits Resources budgeted for the cost of government personnel. Includes salaries and wages; awards; the agency share of retirement contributions, benefits, and payroll taxes; and other personnel costs such as incentive and terminal leave payments.

FY 2019 Congressional Budget Justification l 147

APPENDIX J: ACRONYM LIST APPENDIX J: ACRONYM LIST 10 CFR: Title 10 of the Code of Federal Regulations ABWR: Advanced Boiling-Water Reactor AEC: Atomic Energy Commission AIT: Augmented Inspection Team AO: Abnormal Occurrence APWR: Advanced-Pressurized Water Reactor APR: Advanced Power Reactor ASP: Accident Sequence Precursor CBJ: Congressional Budget Justification COE: Center of Expertise COL: Combined License CR: Continuing Resolution CRCPD: Conference of Radiation Control Program Directors DC: Design Certification DNFSB: Defense Nuclear Facilities Safety Board DOE: U.S. Department of Energy DOJ: U.S. Department of Justice EDO: Executive Director for Operations EPR: Evolutionary Power Reactor ESP: Early Site Permit FEVS: Federal Employee Viewpoint Survey FISMA: Federal Information Security Management Act FITARA: Federal Information Technology Acquisition Reform Act FTE: Full-Time Equivalent FY 2019 Congressional Budget Justification l 149

APPENDIX J: ACRONYM LIST FY: Fiscal Year GPRA: Government Performance and Results Act of 1993 HHS: U.S. Department of Human and Health Services HMC: Homestake Mining Company HQ: Headquarters IAEA: International Atomic Energy Agency IM: Information Management IMC: Inspection Manual Chapter IMPEP: Integrated Materials Performance Evaluation Program IOAA: Independent Offices Appropriation Act of 1952 ISFSI: Interim Spent Fuel Storage Installation ISG: Interim Staff Guidance ISR: In situ recovery IT: Information Technology ITAAC: Inspections, Tests, Analyses, and Acceptance Criteria LER: Licensee Event Report LLW: Low-Level Waste LWR: Light-Water Reactor LLWR: Large Light-Water Reactor MBDBE: Mitigation of Beyond-Design-Basis Events NMED: Nuclear Materials Event Database NMIP: Nuclear Materials Information Program NRC: Nuclear Regulatory Commission NSTS: National Source Tracking System NTTF: Near-Tear Task Force OBRA-90: Omnibus Budget Reconciliation Act of 1990 FY 2019 Congressional Budget Justification l 150

APPENDIX J: ACRONYM LIST OIG: Office of the Inspector General OMB: Office of Management and Budget OPM: Office of Personnel Management PL: Public Law RIS: Regulatory Issue Summary ROP: Reactor Oversight Process S&E: Salaries and Expenses SLR: Subsequent License Renewal SMR: Small Module Reactor SNF: Spent Nuclear Fuel SNM: Special Nuclear Material STAQS: Strategic Acquisition System TVA: Tennessee Valley Authority UAMPS: Utah Associated Municipal Power System U.S.: United States USC: United States Code WBL: Web-Based Licensing WIR: Waste Incidental to Reprocessing FY 2019 Congressional Budget Justification l 151

NRC FORM 335 U.S. NUCLEAR REGULATORY COMMISSION 1. REPORT NUMBER (12-20101 (Assigned by NRC, Add Vol., Supp., Rev., and NRCMD3.7 Addendum Numbers, If any.)

BIBLIOGRAPHIC DATA SHEET (See /nstruct,ons on the reverse) NUREG-1100, Volume 34, Rev.1 2.TITLE AND SUBTITLE 3. DATE REPORT PUBLISHED United States Nuclear Regulatory Commission I

MONTH YEAR Congressional Budget Justification Fiscal Year 2019 February 2018 4 FIN OR GRANT NUMBER

5. AUTHOR($) 6. TYPE OF REPORT Linda Yee, et. al.

7. PERIOD COVERED (Inclusive Dates)*

8. PERFORMING ORGANIZATION

• NAME AND ADDRESS (If NRC, provide Division, Office or Region, U.S. Nuclear Regulatory Commission, and mailing address; 1f contractor, provide name and mailing address.)

Division of Planning and Budget Office of the Chief Financial Officer U.S. Nuclear Regulatory Commission Washington, DC 20555

9. SPONSORING ORGANIZATION- NAME AND ADDRESS (If NRC, type "Same as above", if contractor, provide NRC Division, Office or Region, U. S. Nuclear Regulatory Commission, and mailing address.)

10. SUPPLEMENTARY NOTES

11. ABSTRACT (200 words or less)

The U.S. Nuclear Regulatory Commission's performance plan sets annual goals with measurable target levels of performance and is issued each year with the agency's Congressional Budget Justification.

12.KEY WORDS/DESCRIPTORS (List words or phrases that will assist researchers in locating the report.) 13 AVAILABILITY STATEMENT FY 2019 CBJ unlimited FY 2019 Green Book 14 SECURITY CLASSIFICATION FY 2019 Congressional Budget Justification (This Page) unclassified (This Report/

unclassified

15. NUMBER OF PAGES 16 PRICE NRC FORM 335 (12-2010)

United States Nuclear Regulatory Commission Office of the Chief Financial Officer NUREG-1100, Volume 34, Rev. 1 February 2018

UREG-1100, Vol. 34, Rev. 1 CONGRESSIONAL BUDGET JUSTIFICATION FISCAL YEAR 2019 February 2018