ML22140A215

From kanterella
Jump to navigation Jump to search
34th Regulatory Information Conference (Ric), Opening Session Chairman Hanson Plenary Transcript Final
ML22140A215
Person / Time
Issue date: 03/08/2022
From:
NRC/Chairman
To:
References
Download: ML22140A215 (47)


Text

1

UNITED STATES OF AMERICA

NUCLEAR REGULATORY COMMISSION

+ + + + +

34TH REGULATORY INFORMATION CONFERENCE (RIC)

+ + + + +

OPENING SESSION

+ + + + +

TUESDAY,

MARCH 8, 2022

+ + + + +

The Technical Session met via Video-

Teleconference, at 8:30 a.m. EST, The Honorable

Christopher T. Hanson, Chairman, NRC, presiding.

PRESENT:

CHRISTOPHER T. HANSON, Chairman, NRC

ANDREA VEIL, Director, Office of Nuclear Reactor

Regulation, NRC

RAY FURSTENAU, Director, Office Nuclear Regulatory

Research, NRC

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 2

P R O C E E D I N G S

8:31 a.m.

MS. VEIL: Good morning, afternoon,

evening depending on where you are, and welcome to

the 34th Regulatory Information Conference.

I am also happy to announce it's -- happy

International Women's Day, so congratulations to all

the women who make the world go round.

I'm Andrea Veil, Director of the Office

of Nuclear Reactor Regulation, and it is a great honor

to be here today, and to have this opportunity to

welcome everyone on behalf of the U.S. Nuclear

Regulatory Commission.

NRR co-sponsors to the RIC, with our

partners in the Office of Nuclear Reactor, or excuse

me, Nuclear Regulatory Research, led by Mr. Raymond

Furstenau.

We partner with the entire agency, to

bring to you an engaging conference that addresses

how the agency is preparing for tomorrow.

Ray?

MR. FURSTENAU: Thanks, Andrea. It's an

honor to be here, and to once again, co-sponsor the

RIC with you, and your office.

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 3

As of this morning, we've got over 3,600

participants registered, and I know I'm really

looking forward to the next two and a half days.

Next, I'd like to welcome Joseph

Goodridge, from our Office of Nuclear Security and

Instance Response, who will sing our National Anthem.

(Whereupon, the National Anthem was

performed.)

MR. FURSTENAU: Thanks, to Joseph for his

outstanding performance of the National Anthem.

And, thanks to all of you for taking the

time out of your busy schedules to engage with us

this week.

I also wanted to recognize former

chairmen and commissioners that are joining us

virtually, this week. That includes former Chairman

Meserve, Macfarlane, and Burns, and former

Commissioners Merrifield, Apostolakis, and Magwood.

We thank you for your prior service to

the NRC, and your continued involvement in nuclear

reactor regulation.

Andrea, back to you.

MS. VEIL: This year's program is

comprised of two and a half days, which feature

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 4

morning keynote plenary sessions, followed by sets of

concurrent technical sessions.

We open this year's RIC with an

opportunity to hear from our Chairman, the Honorable

Christopher Hanson.

The plenary sessions this morning will

feature remarks from our commissioners, the Honorable

Jeff Baran, and the Honorable David Wright.

Plenary sessions tomorrow will include

the introduction of our new Executive Director for

Operations, Mr. Dan Dorman, and remarks from special

guest speaker, the Honorable Jennifer Granholm,

Secretary of Energy.

Tomorrow, two plenary sessions will be

focused on key topics. As this week marks the

eleventh anniversary of the Fukushima accident, one

of our special plenaries will provide an update on

decommissioning efforts.

The other special plenary session

tomorrow is titled, Women Belong in All Places Where

Nuclear Safety Decisions are Being Made. Amen.

This session will be introduced by our

Chairman Christopher Hanson, and will feature an

interview with Ms. Rumina Velshi, President and Chief

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 5

Executive Officer, Canadian Nuclear Safety

Commission.

The interview will be conducted by Ms.

Brooke Clark, the NRC's next Secretary of the

Commission, and congratulations to Brooke.

We have 30 technical sessions between the

afternoons of today and tomorrow, and Thursday

morning.

And, thanks to our virtual platform,

you're free to move from session to session, should

you desire.

In addition, all this year's sessions are

being recorded, and will be made available for

viewing on our website after the conference.

Some of those technical sessions will be

chaired by our commissioners. For example, today at

1:00 o'clock Eastern, Chairman Hanson will chair the

session on Pre-application Engagements for New and

Advanced Reactors.

Today at 3:00 p.m. Eastern, Commissioner

Wright will chair the session on Reimagining the Role

of Nuclear Energy and the Electric Grid.

Tomorrow at 1:00 p.m. Eastern,

Commissioner Baron will chair the regional session on

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 6

Reactor Inspection Program: Leaving Tomorrow Behind.

Also on this year's virtual conference

platform, we have 13 very engaging digital exhibits,

and a virtual tour of the NRC Incident Response

Center.

I encourage everyone to check out the

wide range of exhibit topics at your leisure, before

or after our technical sessions.

Just like last year, you, the attendees,

will be able to submit questions electronically to

the session moderator, for consideration during the

session's question and answer period.

Attendees will also have the opportunity

to contribute to the discussion, by participating in

live polling in some of our sessions.

Our digital exhibits will have contact

information, should have questions or feedback for

the staff.

Each year the planning and execution of

a conference of this magnitude, would not happen

without the hard work and dedication of so many,

including our NRC staff, our contract and partners,

and a wide array of panelists and speakers.

So, I want to take this first opportunity

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 7

to thank everyone involved in the RIC this year.

Now I have the distinct honor of

introducing our Chairman. The Honorable Christopher

T. Hanson, was designated Chairman of the U.S.

Nuclear Regulatory Commission, by President Joe

Biden, effective January 20, 2021.

He was sworn in as a Commissioner on June

8, 2020. Chairman Hanson has more than two decades

of government and private sector experience, in the

field of nuclear energy.

Prior to joining the NRC, he served in

various roles, including staff member on the Senate

Appropriations Committee, Senior Advisor in the

Department of Energy's Office of Nuclear Energy, and

the Office of the Chief Financial Officer, and

consultant at Booz Allen Hamilton.

Chairman Hanson earned master's degrees

from Yale Divinity School, and Yale School of

Forestry Environmental Studies, where he focused on

ethics and natural resource economics.

He earned a Bachelor of Arts degree in

religious studies from Valparaiso University, in

Valparaiso, Indiana.

Welcome, Chairman Hanson, we're looking

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 8

forward to your remarks.

CHAIRMAN HANSON: Thank you, Andrea, for

that introduction. Thank you Joseph, for that

beautiful rendition of our National Anthem. And,

I'll start with a few more thank yous.

First, thank you all for attending the

RIC virtually this year. Welcome to everyone who's

tuning in from their homes, offices, coffee shops,

public parks, across the U.S., and around the world.

I might have said this last year, but I

really am optimistic that we'll get to do this in

person, next year.

This is our second virtual RIC, and once

again, I'm incredibly impressed by the dedication of

the NRC staff, in putting on what will be an

interesting and informative, three days of panel

discussions, speeches, and other virtual events.

I hope you all take advantage of the

virtual platform to learn new things, and join

conversations.

To Andrea, Ray, their teams, the clever

CIO crew, and the many others who make the RIC

possible, a heartfelt thank you.

As Andrea mentioned, the RIC this year

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 9

again, begins on International Women's Day. This

year, we have two sessions dedicated to highlighting

the incredible contributions that women continue to

make, to nuclear regulation and global policy.

I particularly want to thank the women,

whose talents continue to make the NRC the gold

standard around the world.

Tomorrow I'm looking forward to a

discussion with President Rumina Velshi, of the

Canadian Nuclear Safety Commission, where you will

hear me reaffirm my commitment to gender equity, and

an inclusive NRC.

I'd also like to thank my colleagues on

the Commission. We've accomplished a lot in the last

year, even though we didn't always agree.

Having different perspectives while

continuing to work together, is imperative to the

health of our institution.

Finally, I'd like to say thank you to my

staff. Both my permanent staff, and those who joined

me on rotation.

Not only for their efforts to prepare me

for the RIC this year, no small task, but also for

their hard work over the past year. We've kept up a

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 10

remarkable pace, and they have not let up.

So, thank you to Kathleen Blake, and

Patty Jimenez, Molly Marsh, Cinthya Roman, Tony

Nakanishi, Olivia Mikula, Mandy Mauer, Lisa Dimmick,

Hipo Gonzalez, Mike Clark, and Margaret Cervera, who

I forgot to thank last year.

Like all of you, I've been monitoring the

situation in Ukraine with grave concern. My heart

goes out to the people of Ukraine in this desperate

time.

The Russian Federation's violation of

Ukraine's sovereignty, independence, and territorial

integrity, is a tragedy with wide-ranging impacts.

The unprecedented nature of Russia's

actions on Ukrainian nuclear safety, security, and

safeguards, hits especially close to home for the

NRC.

At the NRC and across the U.S.

government, we share IAEA Director General Grossi's

concerns about Russians, about Russia's actions, and

echo his call to refrain from any measures that could

jeopardize the security of nuclear materials, or the

safe operation of Ukraine's nuclear facilities.

I'd like to commend our partners at the

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 11

state Nuclear Regulatory Inspectorate of Ukraine, for

their continuous updates to the IAEA, and the

international community, despite the obvious

challenges they are facing.

I also want to highlight the bravery and

dedication of Ukrainian regulatory and operational

staff, in carrying out their essential duties in the

face of extraordinarily trying and dangerous

circumstances.

The NRC will continue to remain engaged

with its U.S. government colleagues, to monitor the

situation, and we will stand in solidarity with our

Ukrainian regulatory partners.

We will continue our longstanding support

to Ukraine as it works to protect, sustain, and if

necessary, restore the safe and secure operation of

its nuclear facilities.

Last year, I spoke about my initial

approach to my tenure at the NRC, and I painted a

picture of the NRC as an institution with three

related efforts in the form of a triangle. With

risk-informed regulation, agency transformation, and

diversity inclusion at each vertex.

Undergirding that triangle are three

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 12

pillars: regulatory independence, data, and the

people who form the agency.

This year I want to build on that

foundation, and talk about the NRC's role as an

effective trusted regulator, by highlighting three

concepts: process, accountability, and legitimacy.

You've heard many people, myself

included, say that the NRC must not be an impediment

to the safe use of nuclear power and materials, new

or existing.

But what does that mean? And, what

happens if the NRC doesn't get it right? I'm talking

about this from two perspectives.

First, what is most often talked about,

having a regulatory framework that applicants and

licensees, as well as the general public, can

successfully understand and navigate, tailored to the

risk profiles associated with the reactors, and

materials in question.

And, second, licensing and oversight that

does not miss any safety significant issues, thus

calling into question our framework.

As I see it, the NRC is an integral part

of deploying new nuclear, even if we're not building

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 13

or promoting it. Without a license from a credible,

trusted regulator, society simply will not accept it.

As a federal agency, we are ultimately

accountable to the American people.

I fully understand that we don't regulate

to assuage the public's fears. But we must

acknowledge that there are fears around nuclear, and

consider how those fears affect deployment.

This is particularly relevant

considering the recent seizure of nuclear facilities

in Ukraine, resulting in an attack and fire at the

largest nuclear power plant in Europe.

Such recent events have understandably

been very alarming to the general public.

And, to understand the public's concerns,

we have to look at what information, mis-information,

and dis-information is being received, and how that

information, or mis-information, or dis-information,

is being used by the public, to assess risk.

Domestically, we find ourselves in a time

of what the RAND Corporation cleverly calls truth

decay, and what the writer Jonathan Rauch has called

an epistemic crisis.

Folks are just having a hard time telling

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 14

truth from fiction.

Truth decay has also contributed to a

decline in the trust of government.

I don't want to get sidetracked by

talking about the pandemic, but I think it's really

highlighted individuals' ability to sift through

information, and assess risk.

And, it has shown the wide spectrum of

risk tolerance among individuals, and the general

distrust of government. I try to keep this in mind

when I shape my decisions.

In the past few years, as climate change

and energy security have come to the fore as

existential threats, many have rallied around nuclear

as the solution for clean power, including many you

would not expect.

There's a wave of excitement around

getting new reactors online quickly, and the NRC is

necessarily caught up in that wave.

But a note of caution. Let me quote

former NRC Chairman Dale Klein, whose advice I've

greatly appreciated during my tenure at the agency.

In a speech in 2007, he said, and I quote,

if the nuclear power business is treated with less

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 15

than the seriousness it deserves, and people begin to

think that anyone can just jump on the nuclear

bandwagon, it opens up the very real danger of making

the wave of a nuclear resurgence look more like a

bubble, and bubbles have a tendency to pop, unquote.

The NRC has an obligation to remain

independent of the excitement, and hold on to our

objectivity, rather than let ourselves by pushed by

the wave, or caught in a bubble.

We're independent, but not isolated.

Independence is an imperative for a effectiveness,

and public trust.

Yet we must also transform how we work,

so we can meet new demands, while never losing sight

of our core responsibilities, overseeing existing

uses of nuclear power and materials.

Everyone, industry, and the public,

benefits from a trusted, independent regulator.

One of the most important characteristics

of an effective regulator is having a clear and

transparent processes in place, to ensure objective

decision making.

Licensing a nuclear reactor is

necessarily a meticulous process, and while

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 16

flexibility will be important for new designs, the

process and guardrails must be sufficiently

predictable for applicants, and transparent and

understandable for the public.

Some people will roll their eyes and say,

leave it to a government bureaucrat to give a speech

defending the process, but hear me out.

I've said that nuclear safety is an

epistemological question. What do we know, how do

we know it, and what difference does it make? The

how is just as important as the other pieces of that

formulation.

As we further risk inform our approaches

to implementing our regulations, and even as we

further develop more performance based approaches,

process oftentimes gains greater importance.

Novel concepts continue to emerge, and

the agency must meet these challenges with

flexibility. However, maintaining process as an

integral part of our regulatory framework, is one way

we can continue to ensure adequate protection in all

that we do.

We ask our kids to show their work in

math class, so they, and we, can see the process from

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 17

point A to point B. If the answer is wrong, then we

can help them go back through and find the error.

Similarly, when applicants come to us

with new reactor designs, we look not only at their

claims of performance or safety, but importantly, at

their methodology for reaching those conclusions.

The old adage applies here, too: show

your work.

And finally, there's the National

Environmental Policy Act, or NEPA, a law often

misunderstood, and frequently maligned by both

supporters and detractors.

What does NEPA require? It requires the

evaluation of environmental impacts of a federal

action or decision, and it allows the public to review

and comment on that evaluation.

It's rightly understood or thought of, as

a process law. People understandably, look to NEPA

to give them a voice in government decision making.

In short, process matters, and this

brings us to the next two concepts I want to

highlight. Accountability and legitimacy.

All that process provides

accountability. We're accountable to the public,

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 18

applicants and licensees, other federal agencies,

states and tribes, and we're accountable to

ourselves.

When done correctly, the process

determines objectivity, and the outcome. Outside

parties can look at our processes, and validate

whether we did what we said we were going to do.

We expect the same of our licensees.

Indeed, some of our most significant enforcement

actions involve falsification of documentation.

That is a violation of the process, which is

significant because it calls into question

conclusions about safety or security. It undermines

the how we know what we know.

A big part of accountability is

maintaining a safety culture, where everyone in the

organization is willing to raise concerns, and in

turn, make corrections if they're warranted.

As President Biden says, when you mess

up, fess up. And, I would add, fix it. That goes

for the Commission, as well as the staff.

Finally, process confers legitimacy and

credibility on our decisions. Ordinary individuals

are not likely to understand the technical details of

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 19

some of our reviews. But they're much more likely

to understand our process, at least in general terms.

First, we looked at X, then we

independently reviewed Y, then we analyzed Z, and so

on. Process is the way the public knows they can

trust us when we reach a safety conclusion.

Legitimacy and credibility must be

earned, and fervently upheld and protected. At the

foundation of our legitimacy is the core technical

competence of the NRC staff, in which I have full

faith.

But we must continue to invest in the

people who make up the agency, and bring in new

talent. Both with their own expertise, and the

ability to learn from our existing staff.

There are a lot of competing demands on

the NRC staff. Our top priority must be, must

continue to be the oversight of existing reactors,

and uses of materials.

For years, as the nuclear industry

shrank, has been shrinking, the NRC was told to

shrink, too. And, we did.

Since 2014, the number of operating

nuclear power plants has shrunk by 10 percent, and

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 20

the NRC staff has shrunk by more than 20 percent.

Meanwhile, the excitement outside the NRC

is on new reactors, and building them quickly. We've

been changing course to be ready, and we're doing our

best to have the necessary resources in place.

A key indicator of our legitimacy going

forward, is our ability to continue to transform our

inward-facing, and outward-facing processes.

Ideally, citizens, applicants, and

licensees, will see modernization of government at

the same pace and scale, that they see in the private

sector. That's not easy.

Transformation for me has never, repeat

never, been about cutting regulations or staff. For

me, it's about making better regulatory decisions by

bringing our data, and the full expertise of the

agency, to bear on an issue.

Sometimes that results in greater focus

in some areas and less in others, depending on risk

significance. I'm willing to follow the data.

For many in the agency, transformation

has been extra duty, which people have been largely

willing to do. But it's not sustainable. Our people

have been stretched thin by multiple demands, and the

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 21

Covid public health emergency.

Transformation, rather than being an

exciting initiative, has in many cases, become a

burden.

And, sometimes what we call

transformation, is really just internally shifting

responsibilities, rather than truly rethinking what

needs to be done, why, and which parts of the

organization are best suited to the task.

For me, our transformation efforts are

inextricably linked to the hiring initiative

spearheaded by our EDO, Dan Dorman, and our Chief

Human Capitol Officer, Mary Lamary.

Annual attrition at the NRC is running

about 7 percent, which means we need to hire roughly

200 people a year, just to stay at current staffing

levels. A level by the way, that we know will not

be sufficient to meet the challenges of the future.

Not when 24 percent of our people are

over the age of 60, and 55 percent are over the age

of 50. All of them looking forward to a very well-

earned retirement.

And, we need to expand our perspective

about how, who, and where we are recruiting.

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 22

Building the diverse workforce of the future, and

agency transformation, go hand-in-hand.

Equally important, transformation is

about preparing the agency for a range of possible

futures, potentially a wide range of possible

futures.

With regard to nuclear reactors, we have

an existing fleet, some of which are decommissioning,

and some of which are continuing to optimize their

operations, and seeking to extend their licenses out

to 80 years.

We have to get our house in order on NEPA,

and continue to efficiently review applications for

subsequent license renewal.

Then we have new light water reactor

designs with a lot of technological adjacency with

the existing fleet, poised for near-term deployment.

And we have advanced reactors, which

build off decades of research and development in

fuels and materials, that have the potential to

greatly expand the economic use cases for nuclear

power.

With developments, and fuels, and

materials, we've seen increased engagement on uranium

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 23

enrichment, fuel fabrication and transportation.

Therefore, our forecasts and preparations for the

future, must address all segments of the nuclear fuel

cycle.

Also in the materials area, we have a

growing number of Agreement States. Thirty-nine to

date, and we have two additional applications.

We must adjust to state agencies taking

on more of the materials licensing and oversight

roles, by taking a close look at our inspection

procedures, our integrated materials performance

evaluation program, and capacity building, among new

Agreement States.

There are advances in nuclear medicine,

with an expanding array of radioisotopes and

treatment modalities.

Patients and their families should be

able to continue to count on us, to efficiently

evaluate new technologies, and oversee the safe and

secure use of these materials.

Finally, the security and incident

response situation is constantly shifting.

Especially with regard to cyber security,

international events, and domestic political

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 24

polarization.

Our partnerships across government,

federal, state, tribal, local, are crucial to our

security awareness and posture, emergency

preparedness, and incident response.

It's a dynamic situation, to put it

mildly, and I didn't even talk about fusion.

I don't know which future will come to

pass, but I do know that any future will require a

flexible, efficient, transparent regulatory

framework, implemented by experts dedicated to

continuous learning and improvement.

My view is that we've made significant

progress over the last couple of years. By way of

example, I want to spend a minute or two, talking

about the development of our risk-informed

performance based regulatory framework, for advanced

reactors. Also known by its proposed place in the

Code of Federal Regulations, Part 53.

The staff's taken an innovative approach

to development of this rule, by engaging stakeholders

early and often, in the process.

We've received feedback, sometimes, even

oftentimes, conflicting, from many stakeholders

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 25

addressing key issues, such as the use of

probabilistic risk assessment, and risk information

more generally.

Appropriate criteria for a performance

based approach, and how to accommodate a wide range

of both technologies, and technological maturity

levels, in the advanced reactor community.

I've been substantially involved in this

effort, receiving regular updates from the staff, as

well as hearing directly from stakeholders.

And, let me say this, I've been pleased

with the approach and the progress the staff is

making.

Work is ongoing. But they're being

thoughtful and deliberate, taking care to maintain

some adjacency to existing frameworks, while being

creative where needed, to craft a balanced and

protective rule.

I have every confidence that the staff

will produce a rule that adequately protects people

and the environment, while allowing a range of

technologies and licensing approaches, in the

timeframe set out by the Commission.

While the agency develops the new

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 26

framework, the staff is working commendably within

our existing regulations, to review reactor

applications and topical reports, that are ready now.

I started this speech talking about the

importance of process. Its importance for

objectively determining reasonable assurance of

adequate protection.

For accountability, and for public trust

and legitimacy, not just for the NRC, but for the

entire industry.

And, I've talked a lot about change. One

of the key themes of my speech last year, was change

in the context of an institution.

Adapting is essential. But in doing so,

we must preserve and further the goals of the

institution, adequately protecting people and the

environment, and overseeing the safe and secure use

of nuclear power and materials.

To be an effective regulator, we must be

careful we don't create instability in the

institution, that could throw things off balance, and

undermine our legitimacy. It is a challenge to which

we must rise, and I know we will.

So, we need to do several things at once.

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 27

First, we need to uphold our institutional values.

Stay true to our principles of good regulation,

independence, openness, efficiency, clarity, and

reliability.

Second, we need to continue to risk

inform our regulations so we're focused on the most

safety and security significant issues by leveraging

data, and training our people.

We need to apply modern technology to

yield safety and security insights, to communicate

more clearly, and to streamline and modernize our

business processes.

In other words, we need to drive change

in the context of our overall mission and values.

And, finally, and perhaps most crucially,

we need to recognize each other as the future of

nuclear safety and security, and as the bearers of

the sacred trust of the American people.

The NRC is just people. That's all it

is. That's all any organization is. Honest, smart,

and talented, yet fallible.

Dedicated and engaged, yet weary after

two years of a pandemic. Creative and eager, yet

unsure about the future.

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 28

Together, we will honor the work of those

who came before us, and we will sustain the

institution as we advance.

Thank you for listening, and for

attending this year's RIC.

Andrea, back to you.

MS. VEIL: Thank you, Chairman, for number

one, laying out so many themes in such an eloquent

way, in such a short period of time.

And, this is a reminder to those on the

platform, if you have questions, you can select the

Q&A tab in the upper right-hand box, and type your

questions in.

So, whenever you're ready, Chairman, I

have the first question ready for you.

CHAIRMAN HANSON: Go for it.

MS. VEIL: Okay, the first question is,

you discuss the NRC not being a hurdle for new and

advanced reactor technology. The NRC has yet to

fully approve new reactor technology. How can the

NRC ensure that its processes are not causing new and

advanced reactor technology, to wither on the vine?

CHAIRMAN HANSON: Great question. I think

one of the main things we can do is really, and I'm

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 29

going to have a session on this, this just this

afternoon, so I appreciate kind of the tee-up on this,

is really pre-application activities.

And, as much pre-application activity as

applicants are ready for. And, on specific technical

topics. So, that, the staff is already familiar with

the technology that comes in. It's already familiar

with the fuel types, and the materials, and the other

technical aspects that we might receive.

I really, part of the discussion this

afternoon will be about lessons learned from GE, and

TerraPower, and Kairos, on this front. And, things

that I'm sure the NRC can be doing better in this

space, too.

So, we're really leaning into these

engagements, this interaction, and we'll continue to

do that.

MS. VEIL: Right, next question. Do you

expect acceleration in applications for new nuclear

power plants, as a result of high energy prices?

CHAIRMAN HANSON: That's a great question.

I mean, the issue I think, is probably going to be

natural gas prices. There isn't a lot of oil fueled

power plants in the country.

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 30

And, so sometimes natural gas and oil

prices move together, and sometimes they don't. And,

we'll just have to see.

I think one of the interesting things

about some of these newer designs, is the idea that

they can be built and deployed, more quickly. And,

that potentially changes the economics, in terms of

response to energy prices going forward. So, we'll

have to kind of see on that.

At least in the public announcements that

we've seen out in the world, that I think everybody's

seen out in the world, is much more about

decarbonizing power production for, you know, at

least from some of the major utilities in this

country.

And, so I think carbon is a major issue,

but certainly energy prices could be a factor, as

well.

MS. VEIL: This next question has to do

with transformation, and it first thanks you for your

statement on transformation.

You mention transformation versus just

shifting responsibilities. This is a large

undertaking and as you said, we have decreased the

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 31

size of staff, putting us at a disadvantage in having

sufficient resources to conduct change, while

ensuring our mission.

How do we best carve out time and

resources, to really transform, and what risk

appetite does the commission and senior managers have

for real transformation?

CHAIRMAN HANSON: Wow, that's a great

question, and there are a lot of questions in there.

So, I think I'll probably start with the last one and

kind of move up.

I have a lot of appetite for

transformation. I was having this discussion with

my staff on a trip a few weeks ago, and I said, boy,

you know, I'd like to see, I'd like to understand

more about both what's going on in the agency, and

I've done that some.

And, at one point, they kind of threw up

their hands and they said, well, what do you want on

transformation? I said, I want more.

So, I think particularly on the business

side. I look at it as one of the strategic

imperatives I think, of transformation, is, is really

around exactly what this person is asking, right?

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 32

Whereas the agency shrunk, but the

mission, in a lot of ways, the scope has kind of

stayed the same, right?

The operating reactors has changed

somewhat, but we still have a lot of licensing

actions, we've got a lot of interest on advanced

reactors, and so on and so forth.

And, yet like a lot of government

agencies, we've got demographic pressures on us.

And, so how do we use transformation to focus on the

most important activities, right, that we have?

And, I want to say, this is a little

inside of the agency, but I know a lot of that line

staff have felt that burden of, of transformation.

And, so I think that augmenting our staff

in some ways, you know, pushing ahead with this hiring

initiative that Dan and Mary have going, is really

critical in order to provide some relief.

There's kind of that adage you have to

spend money to make money. This is kind of the same

thing, right? You need a few extra people around to

actually drive change in the organization because, so

that everybody has a little bit more bandwidth to do

that. That's really the idea there.

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 33

MS. VEIL: All right, this next question

has to do with software digitalization, which is a

mouthful to say for me.

What are your views on software

digitalization, and how we make our fleet safer and

more cost effective?

CHAIRMAN HANSON: So, I assume this is a

digital instrumentation and control question, which

is also a mouthful.

MS. VEIL: Uh huh.

CHAIRMAN HANSON: Look, this is something

that I've been very interested in since I came to the

agency, about how we get, again, that, people have

heard me talk about having a regulatory line of sight

on some of these things, and getting clarity on that.

Revisiting where necessary, was it the

1993 policy on common cause failure, and getting

some, getting some regulatory transparency, clarity,

certainty, whatever you want to call it on that issue

for licensees.

All while we're making sure that we've

got appropriate redundancy where necessary, we've got

the firewalls in place where necessary, hardware, as

well as software, to protect these systems.

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 34

Look, I mean I'm very interested in this

issue both on the technical side of this, but also on

the human factor side, which I think is another, which

is another thing we can and should, be interacting

with light applicants and licensees on.

So, I think it's important, each utility

will make their own business decision about whether

or not to invest in that. It's not an insignificant

cost to them, I understand that.

But I'm committed to having at least for

the NRC's part, again a predictable and clear process

for addressing digital INC.

MS. VEIL: Okay, toward the end of your

remarks, you mentioned fusion. So, this question has

to do with fusion.

What might the role of the NRC be in the

use of nuclear fusion?

CHAIRMAN HANSON: That's a great question.

I think we're trying to figure that out, right?

Because in some cases, it depends on the

fusion technology itself. In some cases, it might

be perfectly appropriate because it falls under Part

30, that our Agreement State partners are going to be

involved in that.

NEAL R. G ROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 35

So, it's not just a matter for us. I

mean, there are kind of key regulatory issues about

activation products, and tritium, and some other

things that I think the staff is still learning about.

And, thinking about where that fits.

Also, this issue of having a burning

plasma, and what the risk significance of that is,

and what the safety systems are.

So, I wasn't trying to neglect fusion.

I'm actually really interested in this topic. But

we're still kind of, we're still figuring that out.

I think we're in learning mode.

We're hearing from stakeholders both

individually and collectively, with the Fusion

Industries Association. We're hearing from our

state, Agreement State partners on this as well.

And, we're starting to kind of piece this

together.

MS. VEIL: Next question.

Internationally, there's a great interest in globally

accepted licenses. How is the view of NRC? Will you

accept design approvals from other regulators? Are

there any activities in this direction?

CHAIRMAN HANSON: I'll acknowledge that

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 36

there are a lot of, there is interest in this, you

know, what's kind of called harmonization.

But I'll echo my colleague in the U.K.

We had a, he and I, and President Velshi from the

Canadian Nuclear Safety Commission, were in a

discussion with Director General Grossi.

And, my British counterpart, Mark Foy, we

were talking about harmonization, and this was

something that the Director General is very

interested in.

And, Mark had a thing that was kind of

like, yes, yes, yes, but sovereignty. And,

sovereignty is really important.

Because I'm not accountable to the

British people, I'm accountable to the American

people. And, the American people look to us, look

to the NRC for us to make our own determinations.

And, in a way, to reflect the risk

tolerance, and the kind of, the policy environment

that we're in.

Now, having said that, right, the laws,

and the theories, and principles of physics, work in

the United States the same way they do in Canada, and

Britain, and Poland, and other places, right?

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 37

So, is there room to collaborate on the

technical aspects of advanced reactors? Absolutely,

and we have a memorandum of cooperation with Canada

doing exactly that. Where we're sharing information

and approaches.

Now, is that a universal license? No,

but at the same time, and I don't think it should be,

frankly. But at the same time, does that mean that

every applicant has to come up with an entirely new

set of information or data? Well, I think that's

probably where there's some work that can be done.

MS. VEIL: Okay, next question. How has

the COVID-19 pandemic affected your risk-informed

decision making, and how has the NRC addressed the

challenges?

CHAIRMAN HANSON: Oh boy, that's a great

question. I've been so proud of the NRC staff and

the way we've adapted.

I mean, and some of this was just some,

some really great foresight by our Chief Information

Officer, Dave Nelson, who, we moved from desktops to

laptops probably six months before the pandemic.

And, boy aren't we glad we did.

And, he had made a number of other

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 38

investments internally. So, when the pandemic hit,

I think other agencies were getting, you know,

supplemental and emergency appropriations for

hundreds, tens and millions of dollars, hundreds of

millions of dollars, to kind of upgrade their

infrastructure.

I think the NRC, we got $3 million, and

it was to improve, kind of the bandwidth into the

building, and really help people do VPN. And, a

couple of other minor things. I'm just so impressed

and proud.

And, we've adapted in all kinds of other

ways.

I do think though, that and I've said

this at commission meetings, right, the nuclear

safety and security, is, it's a contact sport, right?

It's boots on the ground.

There's nothing quite like having NRC

people around with our NRC badges, and our NRC hard

hats, in facilities and checking things out.

And, so while we were able to do some

things like remote inspections, or some materials

inspections remotely, and some other things, those

were really important in the pandemic, right? People

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 39

didn't want us going into hospitals. People didn't

want to go into hospitals.

That was kind of sufficient temporarily,

but not something that we necessarily want to do in

the long-term.

On the other hand, you know, you look at

our resident inspectors and, you know, very quickly,

our licensees provided them with remote access into

their systems, either by providing with laptops or a

VPN, or whatever.

So, there were things that they could do

remotely. Review documents, and other things,

without having to be onsite for some of those direct

sampling.

So, I think we're working on the lessons

learned in the agency, that's been kind of an ongoing

process. And, I know we're going to share the

results of that publicly, when we kind of crystalize

some of those lessons.

MS. VEIL: Okay, this next question is

long, and it's multi-faceted so I'm going to speak

slowly.

CHAIRMAN HANSON: Let me get out my pen.

MS. VEIL: All right, get ready.

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 40

CHAIRMAN HANSON: Okay.

MS. VEIL: NRC regulatory processes within

nuclear reactor regulation, benefit from a clear set

of procedures that were first developed in the mid-

1990s, to clarify the myriad of regulatory guidance,

and to clear standards for regulation.

Processes in other area, for example,

decommissioning, new reactor designs, et cetera, rely

on regulatory guidance, rather than clear rules.

Clear rules in these other areas are definitely

needed.

Since these diverse areas cannot be

addressed simultaneously, where and how, would you

prioritize rule making in select areas?

CHAIRMAN HANSON: That's a great question.

I mean, this gets to the heart of a lot of our efforts

on Part 53 and advanced reactors, right?

It's along that spectrum between

predictability and flexibility. And, where should

we be in that, right?

Where do we have rules on the flexibility

part, and where do we have guidance? We got a lot

of feedback on that question, right? Our staff, and

not all of it entirely, entirely consistent.

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 41

And, I'll be honest, I'm not exactly sure

where we should be on that continuum. Because I

think in different issues, we're going to be in

different places.

I think having that option for having

clear rules, or having guidance, lets us evaluate

each one of these things kind of individually.

Now, we have to learn, we have to be

cognizant, that there's some consistency in there,

right. We can't kind of do this, we can't, you know,

pick one end of the spectrum or the other, at random.

But I do agree that having a set of

procedures is important. We've got a couple of

papers in front of the Commission on this.

50.46(c), I think is an example of that

where we're, you know, that paper I think the staff

proposes to be more on the procedure end of, and the

predictability end, of things.

Likewise, a rulemaking plan for a higher

enrichment, higher burn up fuel, which is another

paper in front of the Commission, right. Again,

having rulemaking around those things, rather than

guidance.

There are going to be other things

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 42

though, that are more appropriate on the other end of

the spectrum.

MS. VEIL: All right, now you used this

word in your speech and I remember trying to pronounce

it out, and so here it comes in a question again.

Your framing of regulations as

epistemological work, now did I get that right?

CHAIRMAN HANSON: Yes.

MS. VEIL: Seems insightful and suited to

the time we're living in. Can you say more about

the, what the NRC can do to safeguard its interactions

with stakeholders in an era of truth-challenged

public discourse, and which you talked about truth

decay?

CHAIRMAN HANSON: That's a great

question. I was having a conversation with our

Office of Public Affairs staff, who I think, who feel

this challenge particularly acutely in the agency.

But I think everybody does.

And, I think that one of the key things

we can do is just be as open, and as transparent as

possible. And, the NRC has done remarkable job of

that over the years.

People complain about ADAMS, our online

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 43

document management system, but literally everything

is out there.

We have public dockets, we have, you

know, with the exception of some business sensitive

information, security information, we really do make

everything available.

I think, and sometimes the NRC can do a

better job of the translation function, and, but

translation function isn't easy. And, there are some

concepts that don't always lend themselves to

translation.

But I had this, I was doing an emergency

planning exercise recently. And, I honestly, oh, it

was for Limerick. And, we do these things every

couple of years, and we work with FEMA, and state and

local.

And, I was over in the Operations Center,

and I was playing my role as Chairman, and we were,

had everything staffed up, and the screens going, and

lots of activity.

And, one of the managers that we had in

our nuclear security incident response group said

okay, this is the part where I take you into this

backroom, and I brief you.

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 44

And, so I said okay, great. And, we went

in, and we sat down, and he gave me the spiel about

what was happening at the plant under this exercise

scenario. And, I said, fantastic. Now say it again

in English.

Because, right, I mean everybody, you

know, I'm not necessarily a technical person. But I

also knew that I was, in my role in this incident, I

was going to have to go explain what was going on.

If this was a real situation, I was going

to have to go explain what was going on to National

Security Council, to the Secretary of Homeland, to

the Secretary of Energy, et cetera, right. And, I

needed that in plain English.

And, he kind of caught up a little bit,

and he went, he kind of took a breath, and he said,

okay. And, then we did it again, and it was great.

And, it's that kind of, you know, we're

a technical agency. We're a technical regulator.

We're really good at that.

But sometimes, you know, there's what's

this cliche, right, I have to go home and explain it

to my mom, or to my sister, or whatever, who aren't

in the agency. I think there's some more we could

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 45

do there.

MS. VEIL: Okay, next question.

Given the variety of advanced nuclear

technologies, do you think NRC should move away from

prescriptive regulation?

CHAIRMAN HANSON: Well, I see that kind of

like the situation a couple of questions ago, right,

where there is this kind of more prescriptive end

that is, that's predicable.

And, there is the, and then there's the

flexibility.

And, I did talk, I think in my speech,

quite a bit about the need for flexibility. And, for

performance based approaches, right, where we're

focused on the outcome, and less on prescribing

specific methodologies for getting to that outcome.

Now, that doesn't mean that any

methodology is okay, right? It's the show your work.

We get to validate whether those methodologies for

assessing, or for meeting the requirements of those

performance based criteria, are adequate.

Because again, if they're not, or if we

think that they don't work in some way, it calls into

question the conclusions. Which is ultimately what

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 46

we're about. We're about safety conclusions.

So, it's going to depend. It depends.

MS. VEIL: And, we have time for one more

question. You mentioned data in your speech. Can

you talk more about, you're very busy, so can you

talk more about how you and your staff use your data,

or data analytics, to make your job easier, or how

you use it in your day-to-day interactions?

CHAIRMAN HANSON: Yes, great question. I

mean, certainly in a couple of key areas. I mean,

one is certainly on the budget and internal

processes, right?

I've worked in CFO offices, and so I'm

like, give me all the information. And, the CIO has

really done a great job I think recently, of turning

that data into information.

And, then I would say in other areas,

it's in a lot of the papers, I use it quite a bit

just, just in papers.

I mean, medical technologies, right,

where we have a lot of data about the use of

radioactive materials, and what issues might arise

with those.

We see it in some of the fuel papers we've

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com 47

seen, and some of the other nuclear papers we've seen.

Whether that's the ISI-IST inspections, or other

kinds of things, right.

So, what does the data tell us, and how

can we use that to kind of inform moving forward.

So, I'm really constantly asking staff about okay,

well let's gather the data on this.

And, let's see what that says, and then

let's kind of, kind of move forward.

And, I have to say, I mean we've used on

a number of occasions, too, the tools that we've got

out there that are Mapex, and, you know, other kind

of performance data on the plants, so.

MS. VEIL: Well, Chairman, thank you so

much for breaking the ice and opening our second

virtual, a little bit in person, RIC, your expert

remarks, and for fielding the questions.

And, with that, I close the session.

Thank you so much.

CHAIRMAN HANSON: Thank you, Andrea, thank

you, Ray.

(Whereupon, the above-entitled matter

went off the record at 9:27 a.m.)

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1716 14th STREET, N.W., SUITE 200 (202) 234-4433 WASHINGTON, D.C. 20009-4309 www.nealrgross.com