ML20012E312

Statement Submitted by NRC to Committee on Eviron & Public Works United States Senate Concerning FY91 Budget for Nrc

ML20012E312
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Issue date:	03/01/1990
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SUBMITTED BY

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THE UNITED STATES NUCLEAR REGULATORY. COMMISSION.

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COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS UNITED STATES SENATE r

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THE FY 1991 BUDGET FOR THE o

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,4 SUBMITTED: March 1, 1990 4

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p Mr. Chairman and members of the Committee, the Nuclear Regulatory Comission is l

pleased to submit its fiscal year 1991 budget request.

NRC MISSION i

r As you know, the NRC is responsible for assuring that civilian uses of nuclear materials in the United States -- in the operation of comercial nuclear power plants, and in medical, academic, and industrial applications -- are carried out in a way which will adequately protect the public health and safety, the environment, and the national security. The NRC has contributed significantly to the safe use of this nuclear technology through fim and fair regulation, I

emphasis on programs that enhance safe operation of facilities, and conduct of research that resolves regulatory safety issues. When the NRC has encountered situations at reactors, fuel cycle facilities, or materials licensees that f

could lead to adverse public health and safety effects, we have acted to ensure

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that licensees corrected these problems before injury to the public occurred, s

We will continue to vigorously pursue a policy which ensures that our nuclear licensees meet their safety responsibilities to protect the public.

I Nuclear Power Nuclear power is an important component in our nation's energy supply.

In 1989, nuclear power safely supplied approximately 20 percent of the nation's electricity, second only to coal. However, we think it is important to note that if the rate of increase in electrical demand in the United States

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t continues at a modest two or three percent a year, then the United States, even with diligent conservetion efforts, will need to significantly increase its total electrical generating capacity in the years ahead. To meet this

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increased demand, options for new baseload generating capacity should be available as safe sources of energy. A number of significant changes have occurred in the last few years which should continue to ensure the viability of.

nuclear power as one of the safe alternatives to meet our future enargy needs.

These include an overall improvement in safety and performance as well as initiatives to streamline the licensing process.

There remain, however, several high priority issues that require resolution.

One of these is the development of the proper regulatory base to prepare for plant life extension and the resulting reactor license renewal. A period of intense effort is needed to ensure that all relevant safety questions are resolved before the current operating licenses begin to expire later in this decade.

The research effort evaluating the impact of plant aging on component and l

l system safety performance is closely tied to the plant life extension issue.

The groundwork must be laid now if we are to make intelligent decisions as to whether the nation's existing plants may remain in service. These plants I

1 l-represent a significant portion of the nation's electrical supply.

Timely resolution of this issue must be accomplished if our future energy needs are to 1

be met successfully.

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Certification of standardized nucicar power plant designs is another very i

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important issue facing us. We are giving priority to actiors needed to L1 anticipate and resolve safety issues for certification of designs for t.,e next L

generation of reactors.

This is essential if future U.S. nuclear power plants dre to be built and licensed to operate in a reasonable period of time.

pi Standardization can significantly increase confidence in the safety, reliability, and availtbility of future nuclear power plants.

Changes in NRC's regulations made during the past year should substantially improve the certification and licensing process. The goal is that future nuclear plants will use standardized designs, approved by the NRC, and pre-approved sites.

l The NRC is currently involvea in a phased review of the Electric Power Research Institute's advanced light water reactor requirements document and in two i

design certification reviews. We also expect additional design applications will be received during the next year or two. NRC anticipates certifying one or more of these advanced designs in the near future.

P Additionally, since a serious accident anywhere can have widespread consequences, another important issue is that of ensuring greater nuclear power plant safety worldwide.

In recent years, the NRC has expanded its program for international cooperation in nuclear safety, particularly in the area of information exchange with countries that have commercial nuclear power programs.

l For example, along with the Departruent of Energy, we are participating in l

l numerous cooperative activities with the Soviet Union. Our cooperative efforts in sharing safety and operational experience will serve to make commercial nuclear power safer everywhere.

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FISCAL YEAR 1991 BUDGET REQUEST f

The NRC's fiscal year 1991 budget request is $475 million. The Comission

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believes that this request is necessary for us to maintain the safe performance of the nation's operating nuclear power reactors, achieve further safety improvements, and conduct a regulatory program responsive to the nation's future energy needs and industry initiatives. This is a decrease of $13.8 million below our original estimate of $488.8 million that we provided to you last year. The adjustments to the estimate are reflected in our recent budget request and implementing legislation that we recently provided to the Committee.

Placed in a historical context, this request is fully justified. The NRC's l'

funding has been eroded significantly by inflation since NRC was established in 1975.

In constant 1975 dollars, the NRC's fiscal year 1991 budget request is i

less than the agency's budget in fiscal year 1978 -- one year before the accident at Three-Mile Island.

Since that time, the number of licensed nuclear l-power plants has increased by 75 percent. Currently there are 113 such plants I

across the nation. Our inspection and oversight activities for each of these 1

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plants have also increased significantly over the past decade.

In addition, 1

l the NRC now has increased responsibilities and activities for nuclear materials L

licensees, low-level radioactive waste, and licensing the first-of-a-kind l

high-level waste geologic repository. We must also address important safety issues related to reactor license renewal and standard plant designs. The lack l

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',a of corresponding growth in ilRC's funding has forced the deferral or cancellation of significant programs that were intended to provide technical information to make and support our future safety decisions. This trend must be reversed.

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is essential that the NRC be adequately funded, i.

The President's fiscal year 1991 budget proposes to continue to fund NRC activities associated with the Nuclear Waste Policy Act through direct appropriation from the Nuclear Waste Fund and proposes to recover 100 percent of NRC's remaining budget through user fees charged to the industry. The President's budget does not include ar.y rescissions, deferrals, or supple-mentals for the NRC for fiscal year 1991.

Our budget request is $23.4 million above fiscal year 1990. Twelve million six hundred thousand dollars of the requested increase is urgently needed to improve the safety performance of operating reactors and materials licensees and to be responsive to the nation's future energy needs and industry initiatives.

This portion of the increase will allow the NRC to:

o establish the criteria for renewing reactor licenses beyond their current 40-year term to ensure that i

operating license renewal applications can be reviewed 1

on a schedule compatible with industry submittals. The first application is expected in 1991; l

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establish licensing criteria and be prepared to respond to both the industry's and the Department of Energy's schedule for submitting advanced standard reactor F,

designs for approval;

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reduce the volume and complexity of the technical specifications under which all reactors are reouired i

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resolve, in a timely manner, the technical issues to

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support. regulatory decisions on reactor safety systems and~ containments for operating plants as well as those I

for advanced reactor designs to further enhance the t

protection of the public in the event of a severe accident; o

conduct additional inspections of materials licensees, improve the accounting of approximately 200,000 generally l

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licensed nuclear materials devices, begin the review of l

approximately 18,000 materials and fuel cycle facility 1

licenses terminated since 1965 to ensure that the sites i

L were adequately decontaminated, and initiate financial reviews for non-reactor licensees to ensure compliance l

with new decommissioning requirements; 1

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i-o develop the regulatory framework for, and review a j

first-of-a-kind application to construct and operate l

the nation's first privately owned uranium enrichment facility; and l

o provide ful1~ regulatory support for the implementation of the Low-level Radioactive Waste Policy Amendments Act.

This includes expanded research to assess alternatives i

to shallow land burial for low-level waste and additional assistance to Agreement States as they proceed with developing and implementing plans to construct low-level waste disposal facilities.

Ten million dollars additional is also required for nondiscretionary expenses.

The NRC is faced with:

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higher payroll expenses resulting primarily from pay raises and additional agency contributions to the l

Federal Employees Retirement System; increased transportation costs for our inspectors to o

travel to licensee sites; o

phased replacement of outdated office systems 1

equipment; and l

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costs related to the consolidation of our headquarters.

i employees in Rockville, Maryland. The Congress has repeatedly supported our efforts in this regard. We have now consolidated more tnan one half of our l

headquarters employees at one location, and we are continuing to actively pursue with the General Services Administration the completion of this consolidation.

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benefits the agency will derive from complete headquarters consolidation will enhance our ability to i

protect the public health and safety.

We are also requesting an additional $800,000 for the Office of the Inspector General (IG). The increase is needed to staff the IG's hotline, inspection l

team, and contract audit capability. The contract audit capability will be new to the NRC and is needed to meet the requirements of the Inspector General Act and Office of Management and Budget directives.

l The Commission firmly believes that these increases are essential. The details of our budget request are contained in our submission, which has already been provided to the Committee. The Appendix to this testimony summarizes the agency's budget request for each of its programs. A brief summary of the NRC's principal programs is provided below.

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PROGRAM

SUMMARY

t Reactor Safety and Safeguards Regulation These programs focus principally on operational safety to evaluate. reactor and I

t licensee performance through a variety of on-site inspections and safety reviews for the 113 reactors that are expected to be licensed to operate in I

fiscal year 1991. The fiscal year 1991 increases for this program focus.on

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preparing NRC to carry out licensing activities to respond to the nation's future energy needs.

As part of NRC's inspection programs, at least two resident inspectors are assigned to each, reactor site to observe, evaluate, and report on the adequacy of licensee nuclear safety activities on a day-to-day basis. Our region-based inspectors, headauarters safety experts and specialized technical contractor g

support will continue to conduct a variety of highly specialized inspections.

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These complementary resources help us to gain an in-depth perspective on reactor operational safety. Our reactor inspection programs are conducted to allow regional and headouarters managers to focus inspections on special safety problems and plants that require additional attention. This flexibility helps ensure that the limited resources are efficiently and effectively allocated to enhance reactor safety.

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There are two other essential components of reactor safety. The first is to-evaluate the need for safety improvements to ensure that operating reactors l

maintain adequate levels of protection of public health and safety subsequent to receiving their operating license.

For example, the NRC is in the process of working with licensees to concert existing reactor technical specifications to new standard technical specifications. The NRC believes this will improve operational safety and reduce unnecessary regulatory burdens, thus allowing licensees to focus on the more safety-significant aspects of operation. The second is to ensure that each nuclear power plant is staffed with trained and qualified reactor opuators. Toward this end, the NRC licenses all personnel l

authorized to operate reactors and administers requalification examinations to i

verify their continued proficiency.

l The above programs play a significant role in ensuring the operating industry's safety performance.

The NRC's efforts to renew licenses for operating reactors beyond their current 40 year terms have to be significantly expanded to provide the framework for energy planners to make crucial decisions on new plant purchases, to avoid unneeded regional energy shortfalls, and to avoid increased consumer cost l

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l L connected with unstable regulatory programs. This program must be fully in place by the mid 1990s to deal effectively.with decisions potentially affecting almost 20 percent of the nation's electric supply.

In fiscal year 1991, the NRC will prepare and implement the regulatory criteria needed for the license renewal process and will begin to review the first of two lead applications to renew nuclear. power plant operating licenses, i

i-flext, the standardization of nuclear power plant designs 1s an important Commission initiative that can significantly increase confidence in the safety, reliability, and availability of future nuclear power plants. Standardization will allow for a more expeditious and efficient review process and a more thorough undet standing of the designs by the NRC.

In support of this goal, the NRC will continue to conduct design certification reviews for evolutionary reactor designs and prepare procedurally and technically for the receipt of i

applications for advanced standardized designs.

I fluclear Safety Research i

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The NRC's nuclear safety research program improves our regulation through L

better definition of reactor safety margins, increased understanding of severe accident phenomenology and containment challenges, and development of new analytical tools needed to evaluate new safety issues as they arise. Our research program provides the independent expertise and information we need to make timely regulatory judgments, anticipates problems of potential safety i

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I significance so that new or expanded knowledge can essist the NRC in fulfilling i

its responsibilities, and develops the regulations and regulatory guides necessary to implement Commission policy or technical requirements.

The Commission believes that a stable safety research program is essential to i

provide a foundation for the strong and credible regulation needed to maintain and improve the nation's current civilian nuclear safety record. We cannot overemphasize the fact that a moderate increase in funding (which in reality is a restoration of cuts in the program over previous years) is critical for the success of long-range research and the stability of the program.

i The fiscal year 1991 program will include increases primarily in the following areas:

1 Research will be accelerated on the effects of irradiation I

and aging on reactor vessels, piping ano support structures i

and other safety related equipment. This work is needed to provide the technical basis for regulatory decisions regarding continued safe operation of nuclear power plants as they age and for renewal of reactor operating licenses beyond their expiration date.

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Research is also continuing to assess the performance of reactor safety systems and containments, and resolve technical L

uncertainties related to severe accident phenomena in order to 9

permit regulatory closure of severe accident issues and review individual plant examinations'for severe accident I

vulnerabilities, t

Necessary stuotes will be conducted to provide the bases to supply technical advice to the states on low-level waste disposal, including research to validate reliability of engineered enhancements for shallow land burial.

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Nuclear Material and Low-Level Waste Safety and Safeguards Regulation g

NRC regulates a wide variety of nuclear materials licensees across the United States. For instance, there are some 24,000 licensed medical, academic, and 1

j' industrial users of nuclear materials subject to regulation. Of these, approximately 8,000 are licensed directly by the NRC and about 16,000 are regulated by the 29 states that participate in the NRC Agreement States Program.

I The NRC's Agreement States assume regulatory responsibility for certain types 1

of nuclear materials. The NRC periodically reviews the Agreement States' radiation control programs and provides the Agreement State personnel 1

L NRC-sponsored training opportunities to improve their ability to maintain 1

high quality regulatory programs.

In addition, the NRC provides technical

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assistance with. regard to licensing, inspection, enforcement, and regulation s

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development.

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a; Nuclear materials are used in large industrial operations such as the i

manufacturing of reactor fuel and the production.of medical

.l radiopharmaceuticals, fabrication of consumer products such as smoke detectors,--

and smaller individual operations such as those using small quantities of radioisotopes in medical diagnosis and treatnent.

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.i Given the large and varied use of nuclear materials throughout this country,

,l the overall safety record has Deen very good.

However, the Commission will i

i continue to increase the emphasis on improving licensee performance, particularly that of fuel cycle facilities, radiographers, and medical use licensees, since the average citizen is most likely to come in contact with i

nuclear' materials through the medical and industrial applications of such j

materials.

With regard to fuel facilities, the NRC will be reviewing an application to construct and operate the nation's first privately owned uranium enrichment facility. The application is expected to be submitted in 1990 by Louisiana Energy Services.

The NRC will need to assess and adjust its licensing procedures to efficiently accommodate this first-of-a-kind application.

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The NRC will continue to' place significant emphasis on unplementing its j

responsibilities under the Low-Level Radioactive Waste Policy Amendments Act.

a This includes providing siting and design technical assistance to compact-affiliated and independent Agreement States as they proceed to develop and implement plans to construct low-level waste disposal facilities to meet the January 1,1993 deadline to arrange for the disposal of their low-level waste. The first application to the NRC for such a disposal facility is expected in legl, i

During fiscal year 1991, the NRC will continue to develop the necessary regulatory framework for decommissioning commercial nuclear facilities and to l

compel cleanup actions at contaminated sites.

The development activities l

include preparation of interim residual radioactivity criteria for decontam-inating licensed facilities.

In addition, the NRC will continue its efforts in reviewing and inspecting reactor deconsnissioning activities.

l' Hign-Level Nuclear Waste Regulation i

The Nuclear Waste Policy Act, as amended, specifies a detailed approach for the long-range undertaking of high-level waste disposal, with the Department of Energy having operational responsibility and the NRC having regulatory responsibility for the transportation, storage, and geologic disposal of the waste.

The disposal of high-level radioactive vaste requires a high certainty 1

I of acceptable health and environmental impacts over thousands of years.

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During fiscal year 1991, NRC will continue to implement its responsibilities under the Nuclear Waste Policy Act, as amended. The near-term impacts of the Department of Energy's recent high-level waste managerient program delays on the flRC's high-level waste management activities have been assessed and reductions

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in our high-level waste program are reflected in this budget request.

Longer-term modifications to our high-level waste activities and resource levels for fiscal year 1992 and beyond will be made after the Department of i

Energy develops detailed implementation plans and will be reflected in future f

NRC budget requests.

LEGISLATIVE INITIATIVES 9

nn February 6, 1990, the Commission submitted to Congress a proposed authorization bill for fiscal year 1991 which would implement the President's proposed budget for the NRC.

In addition to the authorization bill, the e,

Commission strongly urges the Congress to enact promptly the proposed Omnibus lluelear Power Safety and Security Act that the Commission submitted to Congress on February 2, 1989. That bill is a collective of legislative proposals. We particularly need enacted our proposed amendments to section 206 of the Energy Reorganization Act and our proposal which would permit us to obtain administrative search warrants in limited circumstances. The augmented inspection and investigatory authority that these provisions would provide this agency would further our ongoing efforts to investigate the potential use of defective commercial grade parts in the nuclear industry.

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l 17 CONCLUSION The NRC is consnitted to continue meeting our safety mandate under applicable federal statutes.

We believe that our fiscal ptr 1991 budget is a responsible request for the retources needed to provide crediole safety regulation of cormercial nuclear power, civilian use of nuclear materials, and management and disposal of nuclear waste.

However, our regulatory responsibilities go beyond ensuring the safety of existing operating facilities.

The NRC must prepare to etet the licensing challenges of the 1990s. We must have the resources to deal with new regulatory initiatives that are already on the horizon.

License renewal for existing reactors, and review and certification of advanced standardized reactor designs are two of these issues that must be dealt with promptly and ef ficit-ntly.

The modest funding increases we have asked for are absolutely necessary if the NRC is to continue to provide effective regulation and safety oversight of existing activities and to meet future initiatives. The Congress' continued support for the NRC's programs and resources is essential to the success of the regulatory program.

We urge you to authorize the full amount of our request.

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APPENDIX i:

le BUDGET PES 0tlRCE $UMMARY1/

FY 1990 FY 1991 Programs FTE FTE

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Reactor Safety and i

Safeguards Re9ulation 1,485

$ 175.6 1,503

$ 185.8 Nuclear Safety Research P2D 103.8 230 111.4 Nuclear Material and Low-Level Waste Safety and Safeguards Regulation 352 42.9 368 45.8 High level fiuclear Weste Regulatiois 83 21.9 79 19.6 Special and Independent Reviews, Investigations, and Enforcement 264 34.8 264 36.1

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Nuclear Safety Management and support 757 69.7 764 72.6 Inspector General 26 2.9 32 3.7 TOTAL 3.195

$ 451.6 3.240

$ 475.0 i

II Dollars are expressed in millions, i

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Response to Senator Breaux's Question t

r QUESTION.

In connection with your request for funds to "be prepared to evaluate licensee applications to renew reactor operating licenses beyond their expiration dates," would you please j

indicate how many reactors you anticipate may reek to extend their licenses? Upon what do you base this estimate?

s ANSWER.

In a letter dated October 26, 1989, the Nuclear Management and Resources Council (NUMARC) stated that if both the proposed regulations governing l

license renewal were timely and efficient and the renewal process could be f

successfully demonstrated by the two lead plants (Yankee Rowe, Monticello) which have indicated their plans to seek renewed licenses, then NUMARC would estimate that at least 75 percent of the existing operating plants would be f

strong candidates for license renewal. Using the NUMARC percentage for planning purposes, NRC expects a minimum of 83 operating plants would be f

applying for license renewal.

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