ML22140A220

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ML22140A220
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Issue date: 03/08/2022
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UNITED STATES OF AMERICA

NUCLEAR REGULATORY COMMISSION

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34TH REGULATORY INFORMATION CONFERENCE (RIC)

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TECHNICAL SESSION - T3

PREAPPLICATION ENGAGEMENT FOR NEW AND ADVANCED

REACTORS

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TUESDAY,

MARCH 8, 2022

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The Technical Session met via Video-

Teleconference, at 1:00 p.m. EST, Christopher Hanson,

Chairman of the Nuclear Regulatory Commission,

presiding.

PRESENT:

THE HONORABLE CHRISTOPHER T. HANSON, Chairman,

Nuclear Regulatory Commission

PETER HASTINGS, Vice President, Regulatory Affairs

and Quality, Kairos Power, LLC

MICHELLE CATTS, Senior Vice President, Regulatory

Affairs, GE Hitachi Nuclear Energy

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TARA NEIDER, Senior Vice President and Project

Director, Natrium Demonstration Reactor,

TerraPower, LLC

MICHAEL DUDEK, Chief, New Reactor Licensing Branch,

Division of New and Renewed Licenses, NRR/NRC

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P R O C E E D I N G S

1:00 p.m.

CHAIRMAN HANSON: Good afternoon. It's

a great pleasure to be with everyone and to welcome

you all to Technical Session T-3, entitled

Preapplication Engagement for New Advanced Reactors.

I'm really excited to chair this session

because I personally believe that efficient and

effective licensing of new reactors begins with

successful preapplication interactions. Respective

applicants must understand what's expected from the

regulator, and the regulator must clearly articulate

its regulatory expectations while learning about the

applicant's design and safety approaches. Effective

communication between the NRC and applicants is

crucial.

With the anticipated volume of new

reactor applications in the coming years, effective

preapplication engagements are more important than

ever. The NRC needs to continue to improve our

effectiveness, and I hope our dialogue today can

contribute to that.

We have an excellent panel with a wealth

of knowledge and experience managing new reactor

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licensing projects.

Tara Neider is the Senior Vice President

and Project Director of Natrium at TerraPower. Peter

Hastings is Vice President of Regulatory Affairs and

Quality at Kairos Power. Michelle Catts is Senior

Vice President of Nuclear Programs at GE Hitachi.

And finally Michael Dudek is the Chief of the New

Reactor Licensing Branch at the NRC.

We structured this session in a panel

format to maximize need for dialogue on a variety of

topics related to the reapplication.

We have no prepared remarks or

presentations from the panelists, and we'll jump

right into discussions. But please note that we'll

be taking question from the audience later on in the

session so I encourage you to submit questions

through the platform.

Before we start with the discussion, I

want to highlight a few points on preapplication for

some context. The NRC encourages volunteer

engagement of reactor developers and prospective

applicants in preapplication activities in order to

support timely and effective licensing for new and

advanced reactors.

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Many members are currently in

preapplication engagement and more are announcing

their plans to start engaging on such activities.

Our experience so far has taught us the

importance of a comprehensive approach and a mutually

understood plan for the scope and outcome of these

interactions.

To that end, the NRC recently issued a

draft white paper proposing a robust preapplication

engagement could result in a more predictable,

efficient review due to early identification of

unique design issues and early engagement on

technical issues through topical reports, white

papers and public meetings.

So with that, let's get started. I want

to get your perspective on preapplication activities.

And to kick it off, Peter, Tara, Michelle, all of

your companies have been actively engaged in

preapplication activities with the NRC.

And my question is, quite simply, what's

in it for you? You know, preapplication is not

necessarily an inexpensive endeavor so why do it?

What do you see, as an applicant, has the value of

preapplication activities?

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MR. HASTINGS: I guess I'll start.

First of all, let me thank you, Mr. Chairman, for the

opportunity to be on this panel with this very

esteemed group.

At Kairos Power we've been described as

a good example of what preapplication engagement

should look like. While we've only been in business

for 5 years and only about 3-1/2 years of

preapplication engagement so far, we've had really

good success.

We've had 11 topical reports submitted.

Most of those have been approved or have draft

approvals, and the remaining handful are imminent.

We've had several ACRS engagements. We've got a

construction permit application under active review

with a committed 21 month review standing.

But you're right. It's not cheap. What

we benefit from most is the reduction in programmatic

risk by addressing the topics most likely to be novel

or potentially sticky. We try to group those topics

off of critical path for the actual application

review.

A productive preapplication engagement

also sends very positive signals to the prospective

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customers, to our investors and to the market in

general that we're moving forward in a regulatory

sense.

It also buys us at least some reduced

time one hopes in review of the application itself.

That points to a little bit of a downside, which is

the preapplication effort does not constitute a one

for one tradeoff. In other words, the area under the

regulatory review should in theory be constant. And

every hour we spend in preapplication engagement

ought to buy down an equivalent number of hours in

the actual application review itself. But that's not

likely. That's not been our experience. Making that

tradeoff more predictable -- predictability is what

it's all about actually. It's probably the best way

to encourage a more fulsome preapplication in the

future.

CHAIRMAN HANSON: Thanks, Peter. Tara?

MS. NEIDER: So, sorry, I had to turn off

mic. There was an ambulance going by. But I think

that the preapplication engagement has been very

helpful, and it provides a lot of value.

For us, as an advanced demonstration

reactor awardee, we really have no choice. We have

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to keep our licensing within a very short window. So

the more we can do upfront is going to help us through

the process.

In fact, what our real goal through the

preapplication process is to actually have all of the

issues resolved before you even see it in the safety

analysis report. That way things can go smoothly.

And so far we've had great results.

We've got a great project manager at the NRC. They

provide the right people in the room at the right

time. We've had, I think 13 or 14 meetings so far

with the NRC, and we've submitted a number of white

papers. It's been very, very valuable. And it

really -- I feel that we're very aligned on each of

the issues we discussed.

CHAIRMAN HANSON: Thanks. Michelle?

MS. CATTS: Yes. I want to thank you,

Chairman, and the NRC for the opportunity to take

part in this panel today on this very important topic.

You know, governments and people in the

world are focusing on reaching de-carbonization goals

including our own government to reach net zero

emissions by 2050. From recent events in Russia, it

is evident we need energy independence. Energy

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independence, it also meets our carbon neutrality

goals. Obviously, nuclear is going to be a key role

in that.

We're very excited at GE. We're working

obviously with TerraPower on a natrium reactor. And

we're also working on fulfilling our small modular

reactor, the BWRX-300, to help provide that carbon

free future.

So we're planning to license our reactor

in multiple countries. And in this day and age to

make financial sense, it really requires a change in

mindset for licensing and design.

You know, previously we would license a

reactor in one country. And then when we do a license

in another country, we would change our requirements

and change the design. It resulted in a lot of re-

work.

So instead we're designing our reactor

with international regulations in mind and

incorporating those into a standard design. So our

goal is to have an internationally adopted standard

BWRX-300 design, which provides predictability in

licensing and lower costs.

But if it is our purpose to be

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successful, preapplication is vital, really, to

reduce that regulatory uncertainty for each country's

preapplication processes. So for instance these

licensing topical reports in the U.S., vendor design

review processing Canada and then these

preapplication processes are going to help position

us to officially enter the licensing processes in the

near future in the U.S. and Canada.

And then finally, you know, from our

perspective we see so much value in preapplication

processes that we would really love to see other

countries adopt similar processes.

CHAIRMAN HANSON: Very good. Thank you,

Michelle. Michael, do you want to talk about this a

little bit from the NRC perspective?

MR. DUDEK: Absolutely. Thank you, Mr.

Chairman. So as you know, this is one of my favorite

topics, preapplication engagement. As the Chief of

New Reactor Licensing at the NRC, this is one topic

that always comes up with new applicants. And I

think I can summarize the importance and what it means

to the NRC in an essentially understanding, an

understanding, you know, really fostered in an

environment of setting and understanding common

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expectations between us and the applicants.

A lot of the applicants are new. They

are not familiar with our regulatory processes,

procedures and guidelines. So this gives them an

opportunity to start engaging with us and start

understanding and start setting those common

expectations.

It also helps the applicants understand

the NRC's process and procedures. As I said, some

of these new applicants aren't aware of -- aren't

seasoned, aren't aware of how we do things. There's

a certain way that we apply some of the GDC

requirements and so on and so forth. So it really

gives them a leg up and an understanding of an early

regulatory foothold, per se, of how we do things.

And really third, an understanding of the

design. What is paramount in all of these efforts

is for each applicant to, you know, highlight key

aspects of their design, whether they are new and

unique design features, first of a kind of evolutions

or something that is going to be entirely different.

When we get that application, we must understand how

it works. We ask the critical questions and that

gives us a clear and predictable path for licensing.

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Okay?

CHAIRMAN HANSON: Yes. Thank you very

much. So this is good. Because we kind of

established, I think, a little bit of philosophical

foundation of the discussion. And I want to drill

down just a little bit and Mike kind of stay with you

because, you know, the concept here of preapplication

discussions can be a little bit abstract, right?

And I think we want to -- but I guess,

you know, Michael staying with you, you know, what

are some of the tangible results of preapplication

from the NRC standpoint?

MR. DUDEK: Absolutely. And to easily

answer this question, I often use an analogy is that

us, the NRC, and the applicants are learning how to

dance. And truly while we might step on each other's

feet to begin with and it may be a little awkward,

the more you do it, practice makes perfect. The more

you do it, the better you get, the more understanding

you have and the more that each organization learns.

We learn from the applicant and the applicant learns

from us.

As I reflect on your comments earlier

today, Chairman Hanson, during your plenary remarks,

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as the NRC continues to learn and improve, I think

that's a key element in this aspect. And also, you

know, early identification of potential safety,

security and environmental issues. The earlier we

can get these issues on the table and get them

discussed and have early alignment on them, the

better.

CHAIRMAN HANSON: That's helpful. I

mean, there are a lot of different. I mean, Michael,

thank you for that. There's a lot of different

directions we can go with the whole dancing analogy.

And, you know, we might have a fox trot and a shag

and a waltz here among the panelists, cha-cha, I don't

know.

But let me, you know, I'm going to kind

of go back here in reverse order. And while

acknowledging, I think, you know, Peter, you know,

kind of alluded to some of the goals, I think, for

Kairos, but Michelle, what specifically is GE Hitachi

looking for in that preapplication process?

MS. CATTS: GE has been involved with

licensing reactors for many years. And we do see the

extreme value in preapplication engagement.

So like I said our goal is to create an

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internationally adopted standard design for

predictability in licensing and lower costs. Well,

how do we get there?

We identified the needed exemptions to

regulatory requirements and any alternate approaches

to regulatory guidance and addressed those during

preapplication engagement.

So, you know, what do we hope to achieve?

We hope to create open and transparent dialogue with

the regulators. We want to familiarize the staff

with the technical details of our design. You know,

they are highly beneficial from an issues perspective

for ensuring alignment and understanding of

regulatory expectations.

You know, it's one thing to read a

regulation and provide a submittal. It's another

thing to under expectations and what level of detail

is needed for the NRC to actually complete their

reviews. And we want to reduce regulatory

uncertainty associated with key technical topics

before an application is submitted.

And, finally, again, we want to position

our reactor design to officially enter the licensing

process.

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CHAIRMAN HANSON: Okay. Thanks,

Michelle. No, I really appreciate that. Tara?

MS. NEIDER: So as I mentioned, Natrium

is a demo winner, and actually we're working

collaboratively with GE-H on the design and licensing

of a Natrium reactor.

And I guess the most important thing for

me is that the regulations really have been set up

for light water reactors. And this will be the --

this time period now is when we're first -- the NRC

is first licensing the advanced reactors.

And that knowledge base has primarily

been with the Department of Energy as opposed to the

NRC. And I know the NRC has gone through a tremendous

amount of training on advanced reactors. But this

process is a new one. And when we go through a new

process, we know that the -- what the expectations

are tend to change over time as you see applications

from others and as you get more mature in the process.

So I had an experience early in my career

where we were licensing a spent fuel storage cask,

and it had already been licensed for use at an

existing power plant but then we were trying to get

a generic license. And after we had submitted the

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application, the standard review plan was issued for

our storage.

And I remember going into a meeting and

one of the NRC management people had said, I can't

believe you have gotten so far into the application

and you haven't followed the format of the standard

review plan.

And, you know, I was very upset because

in fact we had submitted our application before the

standard review plan even existed. So, yes, we

pulled it back and resubmitted it but that's really

unnecessary. And I think these preapplication

processes can help us avoid those things where we're

totally aligned when things do change we can adapt

easily and move forward.

It's really important for us that we

convey to the NRC what our design is all about and

what we're trying to achieve so that when they get

the application, it's going to be a lot simpler to

review. And once again, we just really need that

licensing process to be streamlined. So this is a

huge, huge help to us.

And we are following the draft guidance

for preapplication, but we have added quite a bit to

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that just because there are things that we

specifically want to focus in on and make sure we get

NRC input on.

CHAIRMAN HANSON: Thanks. You raise a

really good point, right, that NRC staff had been

getting up to speed on a lot of these technologies

and yet we've still got a Part 50 process. It's a

little bit of a square peg in a round hole kind of

issue where even our understanding, we have to

translate that for ourselves into, you know, the

requirements maybe in Part 50 and then work with you

all on what the exemptions are going to be from that.

So I think that's a really helpful insight. Peter?

MR. HASTINGS: So Michael has never seen

me dance or he wouldn't have used that analogy. I

did mention in my initial response some of the things

that we're looking for in preapp engagement,

familiarizing the reviewer with our technology,

buying down regulatory risk, hopefully reducing

critical path review time for the application. So

resolving the key issues upfront is really important.

In terms of the tangible benefit, we've

elected to do that via topical reports. And for

anybody in the audience that may not be familiar with

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that process, that actually results in a

preapplication NRC formal approval on a technical

topic, which can then be applied directly within the

application assuming that all of our conditions for

its use are met. So that's really important.

And as Michelle said, the key here is

regulatory stability. We understand that

preapplication engagement is an effective tool in

achieving a predictable outcome in the licensing

process. And while we, like many others, believe

that the reviews can and should be shorter, a

predictable and stable outcome is probably the most

important consideration, sending a signal to the

market that the regulatory path doesn't lead you to

a mine field is really important.

CHAIRMAN HANSON: Yes, no, I think that's

-- the external parties to this, you know, they're

not necessarily going to be front and center, but

they're still relevant to the overall discussion. I

think that's a great point.

You know, one of the great things about

the NRC, one of the things I'm most proud of, is kind

of the commitment on the part of the staff to be a

learning organization and to want to improve and do

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better in our processes.

So I wanted to have a little bit of a

conversation, particularly with our three vendors

here, about kind of what challenges you've run into.

And I think we'll get as we move along in the

conversation here some, hey, what are some things

that NRC can be doing better?

So if there are pot holes, speed bumps,

not to, you know, use another analogy, I don't know,

divots on the dance floor maybe in which a toe or a

heel could get stuck, what are some of those things

from your perspective? And I'm happy to start

anywhere. Tara, we can start with you.

MS. NEIDER: Sure. I guess the biggest

challenge I see in a preapplication engagement is

that we want to make sure that the right people are

in the room. And we believe so far that has happened.

And so we're very pleased with that.

But, you know, you really don't know

until you submit something in writing as to what, you

know, did we have one or two good people in the room

that really wanted to engage, but there's three back

in the office that have totally separate issues that

we haven't addressed? So that's probably the biggest

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thing.

Secondly, you know, those people that

we're engaging with now may not be here in the future.

So we might have to have, you know, a new training

and engagement process.

And then finally, you know, I'm really

pleased with the way that we're engaging with the

NRC. And it seems to be very beneficial for both

parties. But what I often hear from staff members

is that it's always good during that honeymoon

process where you're in that pre-engagement time.

But once you submit something in writing everything

changes. So we hope that that transition is going

to be nice and smooth and that we actually do get the

benefit out of these preapplication engagement

activities.

CHAIRMAN HANSON: Michelle or Peter?

MS. CATTS: Yes, I can go next. You

know, overall our preapplication engagements to the

NRC at all levels have been really fantastic. You

know, always there's, you know, some things that

could be done better on both sides, I'm sure.

One of the challenges that I see for

preapplication is the ability to predict the cost and

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schedule associated with some interactions to ensure

that the project stays on schedule and on budget.

I used to work for the NRC. I have a

family that lives near nuclear power plants. I

definitely understand the need for reasonable

assurance of adequate protection of public health and

safety. So I do realize some reviews take longer

than expected to ensure safety. That's not what I'm

talking about.

You know, sometimes it's difficult to

predict the cost of some of the preapplication

engagements. So, for example, the cost of

preapplication meetings because you don't know how

many NRC staff will be in the room.

Also licensing topical reports when

they're submitted, the NRC performs an acceptance

review. The acceptance review and the hours are not

included in the NRC's estimate on the LTR hours and

schedule. And that can actually be a significant

contributor to the cost.

And then finally, you know, some of the

LTRs have gone quite a bit over the NRC's estimated

hours. You know, from our perspective though, the

benefits do outweigh the costs. You know, we believe

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these preapplication engagements have many future

benefits for future applications. But for these

projects to succeed, you know, we really believe

there needs to be predictability in costs and

schedule.

CHAIRMAN HANSON: Thank you. Peter?

MR. HASTINGS: Yes, hi. I agree with

everything that Tara and Michelle said. One of the

things that falls into the sort of keep me awake at

night category is the notion that we get good

engagement and commitments to transformation, all of

which we've gotten but then, you know, others in the

agency don't "get the memo" and that has not

happened much.

Unfortunately though, we have

experienced that with one of our own topicals where

the one year review has turned into more than three

years and not really for a good reason other than one

particular office had to shuffle their resources and

weren't able to accommodate the schedule.

And, yes, that's going to happen on

occasion. We all understand, you know, those kinds

of bumps in the road are going to occur. And

generally we're still very encouraged but to keep on

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the theme that we've sort of talked about a couple of

times already, predictability is really important.

And if we lose that aspect, we start losing control

of other factors, like loss of credibility in the

market and amongst prospective customers.

Another challenge is the notion that the

preapplication engagement may not appear to represent

the best return on investment. We have a committed

21-month review schedule, which is really good for

our construction permit application.

Absent our robust pre-application

engagement, it might have, what, 24 months? I'm not

entirely sure but certainly not a dramatic buydown in

time. And so some might observe that four years of

focused preapplication engagement at a million

dollars a year buys down only a handful of months of

review and that may not be intuitively a good

investment.

So I think there may be more to be done

there to look for more opportunities to recognize the

value of the preapp engagement in terms of even more

tangible results once the application is submitted.

CHAIRMAN HANSON: Thank you for that,

yes, very much. We've got several themes here, and

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I want to give Michael an opportunity to kind of weigh

in on some of this stuff.

I mean, you know, budget and schedule

predictability, staff turnover, I think, you know,

some of these folks might -- Michael, I know -- you

and I know aren't the first ones to necessarily raise

this. But I also know that these are issues that

we're working on so I wanted to give you an

opportunity to kind of jump in here a little.

MR. DUDEK: Absolutely. And I'll

resonate with a couple of the common themes that we've

heard, you know, predictable and stable license. How

does the NRC do that?

And I would think that, you know, we do

that in a couple ways. You know, it starts with an

agency focus. And I think this group and everyone

else, that may be timing and can get to the theme

that the agency is focused on that. Both

Commissioners, Commissioner Wright and Commissioner

Baran mentioned, and you, Chairman Hanson, mentioned

advanced and new reactors in much of their speeches

in the plenary sessions this morning.

It is an agency focus. It is something

that we're focused on. It is something that we're

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trying to improve. It is something that we are

setting the appropriate infrastructure for. And it

is something that management is focused on and asking

those questions, asking those hard questions about

how can we do things differently? What have be we

done before? What lessons can we learn? And how can

we set, as Michelle said, that predictable budget and

timeliness for these products that are coming in?

And the only way to do that is provide

that infrastructure. That infrastructure is set at

the NRC within NRR. We joined the NRR a couple of

years ago. We have an amazing management team. It

starts with Andrea Veil all the way down to my

division management.

And hiring the new staff members, hiring

the next generation, getting them in and trained,

ultimately, very critical on handling the breadth and

volume of information and applications that we're

expecting over the next two or three years.

And then learning from our mistakes. You

know, we pride ourselves on being a learning

organization. What has been done during previous

reviews? What things went well and what things

didn't go well?

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Currently, we're evaluating the NuScale

DCA review. We're learning lessons. We've got

lessons from all over industry, all over

stakeholders. We formed an internal task group to

evaluate those lessons. We're making the changes.

We're taking a hard look at our guidance, our policies

and procedures. And we are currently doing

rulemaking, 50 and 52 rulemaking, which implements a

lot of those lessons learned.

So I think that summarizes, you know, how

the NRC can accommodate and the way that the NRC

anticipates changing in the future.

CHAIRMAN HANSON: One of the things that

I've become aware of is this core team concept, right,

that I think came out of that lessons learned to

address this issue of kind of staff turnover, you

know, where we've got this core group of people that

are really focused on a particular license

application.

They're going to really be the subject

matter experts. And then we're matrixing in people

who will deal with maybe specific issues but that the

kind of re-education or knowledge management

challenges we've had, we're starting to get our arms

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around that in those ways. So I think that's

important.

MR. DUDEK: Absolutely, Mr. Chairman.

And that goes back to the infrastructure. You know,

we have an infrastructure here in NRR where advanced

reactors has their piece and small modular reactors,

light water reactors, has our piece. And the DANU

advanced reactor piece is implementing that core team

strategy. And it's working very, very well.

We have lessons to learn in it, and we've

got a ways to go. But, you know, we are legitimately

trying to do things differently and providing that

predictable and stable licensing environment.

CHAIRMAN HANSON: Thank you. Let me ask

Peter and Tara and Michelle especially, we got this

in from the audience just now. And it's, can you

describe how you balance the need for preapplication

meeting between safety and environmental topics?

Does this kind of really come down to site specific

concerns?

I mean, for instance, Peter and Tara, now

you guys both have sites. I think certainly, you

know, Kairos had to have that as part of its

construction permit application. And, of course, you

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know, we know TerraPower is looking at the site in

Kemmerer, Wyoming. So, you know, how do you balance

that or are you finding most of the need to kind of

really be more on the reactor design side?

MS. NEIDER: I can start this one.

MR. HASTINGS: Go ahead, Tara.

MS. NEIDER: Sorry.

CHAIRMAN: Sorry. I should have called

one of you.

MS. NEIDER: So we've been covering both

aspects in our preapplication meetings. And I'd say

actually there's a lot of focus on the environmental

aspects right now. And the reason for that is, you

know, we have selected a site. We want to make sure

that we've done all of that correctly. We're

planning on -- one of our next meetings is one our

water resources in our met tower.

The environmental regulations are a lot

different than the safety evaluations. You know, the

safety evaluations there's kind of a pretty clear

path. But on the environmental, you have to, when

you select a site, it's how do you -- you know, what

about all these other places that it could have gone?

So there is a delicate balancing act there.

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And so we did spend a lot of time with

the NRC on the site selection as well. And it's a

part that I'm less familiar with so it has been very

good engagement in that area as well. And I don't

see any way not to go through that preapplication

engagement with the environmental sites.

MR. HASTINGS: Yes. We've similarly

had good engagement on both the environmental and the

safety side. The tools look a little bit different

because we've produced a number of topical reports

that feed into the safety side.

Topical reports for procedural reasons

and reasons associated with the topics that you're

addressing don't lend themselves quite as well to be

a good tool for the environmental side. But we've

had very active preapplication engagement on the

environmental side as well. It's a little less novel

on the environmental side than on the safety side

because there's not so much unique technology

involved on the environmental side.

We've also, outside of Kairos

specifically, as an industry we've had good

engagement with the staff on the notion of making the

environmental reviews more generic, to recognize that

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nuclear energy has a very long history of having an

overwhelmingly positive environmental impact and the

fact that, you know, the environmental review is

based on a procedural rule that's intended to inform

the federal action, in this case the issuance of a

license, as opposed to a compliance rule, like the

safety side lends itself to.

So anything we can do to help streamline

that process, make the environmental reviews simpler,

more straightforward and try to reduce the burden of

additional site specific evaluations that really in

many cases duplicate the safety analysis that's

already been approved at the last site will be a huge

step forward.

CHAIRMAN HANSON: Thank you. And,

Michelle, I wanted to recognize, of course, GE has a

site now in Tennessee as well as the site up in

Canada. So how are you all approaching this balance

in interactions between, you know, the safety and

environmental issues?

MS. CATTS: Yes, so, as a vendor, we

generally focus on the design and the safety of the

reactor design and usually the customer or the

licensee focuses on the environmental aspect,

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obviously with our input and our help.

So what we're doing for our safety and

for our design is basically capturing key

differences. So our BWRX-300 is the next generation

of BWRs, and it's based off of the NRC already

approved ESBWR design. So we're using preapplication

for mostly ways to capture the key differences

between the ESBWR and the BWRX-300 in these licensing

topical reports to basically have the NRC review and

approve these discrete topics ahead of time to

approve efficiency and transparency and reduce

uncertainty down the road. So that's really what

we're focusing on right now is these licensing

topical reports for these key or novel design

aspects.

CHAIRMAN HANSON: Yes, thank you. Tara,

I wanted to ask you a question and then I'm going to

kind of branch off and ask Peter a similar question

in a minute.

But, you know, TerraPower, you know,

oftentimes we think of preapplication engagements as

being focused mostly on topical reports. Which as

Peter said, you know, one of the advantages of this

topical report approach is some finality with regard

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to the issues being evaluated.

But TerraPower submitted a number of

white papers. And that's a little -- I don't want

to call it out as being different, but I think it's

different maybe from both Kairos and GE, and I wanted

you to talk a little bit about the white paper

approach that you're taking, how maybe that's

different and how you're deciding between a white

paper and a topical report, say, on a particular

issue.

MS. NEIDER: Sure. As you mentioned,

the topicals have a finality to them and the white

papers don't. They're basically opinion pieces.

The NRC is giving us what their thoughts are, but

they don't have to hold to those things that they

said in a white paper.

Natrium is driven by schedule. We have

a very tight timeline. And so the white paper was

very appealing to us because we got information back

sooner.

And, you know, so far we have submitted

a number of them. Two of them have been responded

to. And really what we saw in those white paper

responses is that, you know, we were aligned. The

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NRC was aligned with our approach.

They did provide us some valuable input

where we could, you know, strengthen some areas and

be more, you know, go into more detail in certain

areas than other areas. So it does drive our

licensing process, and I think it's been very

valuable so.

Topicals, we will still use topicals as

well, you know, for things we absolutely need a

certain decision now, but the white papers are great.

CHAIRMAN HANSON: Thank you, Tara. I've

got another question here from the audience that I

want to pitch to Mike and then offer an opportunity

for the vendors to weigh in.

You know I've talked a lot about data and

the importance of data for making regulatory

decisions. And, you know, data validation for new

technologies is going to be essential. And part of

that is going to be an evaluation or approval of

computational analytical methods, of course. And I

know that's the subject of some topical reports that

we've gotten, not just from the vendors here.

But the question for Michael is really

how is the NRC going to provide kind of regulatory

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predictability and certainty in the approval process

for essential analytical and computational methods?

I mean, I think about this a little bit,

right? In my RIC speech this morning, I said, show

your work. You've got to show the agency how you got

from Point A to Point B. So how are we kind of

validating or putting our stamp of approval on those

methodologies, some of which are pretty novel, that

are coming into the agency?

MR. DUDEK: Absolutely. And that's the

beauty of the preapplication engagement is that

through these processes, through these discussions,

through our actions, we gain alignment, and we gain

understanding about these methods and these computer

codes that the applicants are using.

Some of the new applicants aren't aware

of the typical and standard suite of computer codes

that the NRC uses in how we do business. And this

allows them to have the opportunity to compare their

numbers with our numbers.

There are several ways to do this in a

preapplication engagement. You can put those

methodologies and analyses in a topical report and

get that "finality" that Mr. Hastings was talking

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about. Or you can put a theology or a methodology

in the white paper and get a set number of hours and

get informal NRC feedback on that.

Also during preapplication engagements,

we can open up an audit in which you can have those

face-to-face discussions from the technical staff to

the technical staff. You run the same code. Are we

getting the same numbers? If you're on a different

code, are you getting similar numbers within a

bandwidth that makes sense? And that really fosters

that environment, like I said before, of

understanding.

We also have page turns. We also have

public meetings in which we can discuss openly in a

public forum or in a private forum. If it's

proprietary software or proprietary data, we can

discuss those items and gain alignment and

understanding on all of that data so we're talking

the same language, and we're using the same codes

moving forward. Very critical.

CHAIRMAN HANSON: Yes. Thank you.

Tara, Peter or Michelle, I wanted to -- just before

Michelle -- I wanted to give everybody an

opportunity, but I did want to note for the audience

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out there, for some reason, I think on that main

screen, Michelle's face is not appearing.

Michelle Catts from GE Hitachi is still

with us, still part of the conversation. We can see

her kind of behind the scenes here in Zoomland even

if the broader audience out there can't. So,

Michelle, I didn't want you to get lost out there.

There she is. See we got her feedback fixed.

MS. CATTS: My feed actually just

crashed. That's the fun thing about technology.

CHAIRMAN HANSON: So I wanted to -- I

don't know if others of you wanted to kind of weigh

in on this kind of analytical methods and approaches

as part of that preapplication engagement process.

MR. HASTINGS: So from Kairos'

perspective, what Michael described is exactly what

we've been doing. Half of our topicals are

essentially methodological in nature. And, yes,

there will be some sample calculations in those but

that is not what we're seeking approval on. We're

seeking approval of the methodology.

And then often as part of the staff's

safety evaluation, where qualification data are

needed to validate certain aspects of the

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methodology, those would be built into the conditions

under which that topical could be used as part of a

license application. So I think we're very closely

aligned.

MS. NEIDER: I think from TerraPower's

perspective, you know, Natrium is a big project, and

we have multiple companies that are doing designs.

So one of the challenges for us is limiting the number

of codes that we're using because everybody has got

their pet codes that they want. But this is an

enormous effort to get all the code V&V'd. So we are

trying to limit only those things in our application

which we actually need to support that application.

There are a number of programs that we

have that are optimization codes. And those

optimizations are -- they don't need to be V&V'd, you

know? We just have to show that what we finalized

and decided on for the design is in fact valid.

So we are trying to reduce our scope

somewhat to limit to what's necessary.

MS. CATTS: Yes, and for -- yes, I was

going to let Tara speak for Natrium. But for BWRX-

300, you know, a lot of our codes we already have

them approved for ESBWR. So it's just really

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updating those for BWRX-300.

And, you know, the licensing and topical

reports, really the purpose of them is to describe -

- you know, design criteria and methodology and

acceptance criteria to meet the key regulatory

requirements. And then when you actually go to

implement the LTR, you have to verify that you're

worked in the bounds of the LTR. So that's how we're

approaching it.

CHAIRMAN HANSON: Well, there are lots

of ways to kind of branch off of this discussion.

But we just got one in from the audience that I think

is really interesting and relevant. And I want to

go right to it before I double back and do some other

things.

You know, the level of detail in these

preapplications is kind of one of the themes that has

run through this. And, you know, and yet there's

kind of a -- there's a dynamic tension here that I'll

admit, I think, that's largely within the NRC, right,

where we need to kind of convey expectations about

the level of detail needed to vendors and yet we need

to kind of be careful for regulatory predictability,

uncertainty and other kinds of reasons, resource

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management reasons, et cetera, that we don't kind of

go on for lack of a better term -- you know, go down

rabbit holes or go on fishing expeditions or what

have you.

And a friend of mine described this to me

as, you know, we have an agency of really top notch

question askers. And not all of those questions all

the time are relevant to the task at hand.

And so, you know, Michael, I want to hear

from you a little bit about how the agency is kind of

preventing in a way the kind of unnecessary expansion

of the review in some cases and yet, you know, again,

maintaining that balance where we are getting the

level of detail that we need from vendors from COL

applicants and others.

MR. DUDEK: Very interesting question

and very tricky answer. I think that goes back to,

you know, the ability of the staff where they see

something brand new, they can ask questions, right?

And that's always going to be the case.

Where you draw the line is that -- we are

getting better in drawing that line. And that goes

to directly my feedback to applicants in that whether

it's a white paper or a topical report or whatever

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we're reviewing, make sure that you're drawing that

distinction. Make sure that it's a fulsome

application with all the information in there so

that we can fully evaluate it. And when we ask those

questions, it can be very pointed in any holes or any

areas that we see.

And that's critical because if we have a

fulsome application with all the information that we

need, that adds to that predictable and stable

environment of licensing. It adds to reducing the

time. It adds to reducing the cost. But if we don't

have that fulsome application, and we're having to go

and ask those critical questions, those questions

take time.

And then once you do get a question, one

question leads to two questions, leads to three

questions. And that is a testament to the technical

staff, but it's also a testament to the management

team of, hey, we're focused on the principles of good

regulation. We're focused on what is needed for

safety. We're focused on the key regulatory

differences of what we're seeing and what we've

experienced before.

So we are learning those lessons. We are

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trying to, as a management team, really trying to

guide our staff and evolve our procedure and evolve

our processes to a level of what do we really need to

know now? What do we need to know in the future?

What kind of level of finality can we provide for

these topical reports and these white papers? And

what do we need for the future for future applications

and how all of this integrates into one final

response, one final agency position on safety? So I

think that's how we'd like to proceed.

CHAIRMAN HANSON: Yes. I've heard it

said that management, you know, reviews every RAI,

request for additional information, that leaves the

agency.

MR. DUDEK: Well, that's one of the

lessons learned that we're evaluating as we speak.

CHAIRMAN HANSON: Mm-hmm.

MR. DUDEK: And one of the lessons that

we've learned. So while, you know, the staff comes

up with great questions, you know, even the mid-level

management, you know, asks the hard questions about

how this is involved in safety, why is this important

and really scrubs those.

They do go up in division management in

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a lot of cases. And division management has got that

high level umbrella picture where they can really

evaluate that on a larger scale and say, hey, this is

needed now or this is needed probably in the future.

CHAIRMAN HANSON: Thanks, Michael. Any

feedback? I want to give Peter and Tara and Michelle

an opportunity to weigh in here, too.

MR. HASTINGS: A couple of quick thoughts

from me. I think, you know, what Michael said is

true. I think we've seen improvement with regard to

the appropriateness of the scope of the questions

from the staff. We're never going to have a problem

of the staff not asking enough questions. That's not

going to be the problem.

An effective project manager or set-up

project manager is an appropriate sort of management

filter on the questions that come so that we can have

confidence that the questions do have an appropriate

regulatory basis. That is important. The

receptiveness of the project management team and the

management team, if we see that review going, you

know, sort of too far afield, receptiveness to that

feedback is really important.

It's also useful to note that if you have

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a good relationship with the staff, a good engaged,

you know, sort of collaborative relationship, there's

going to be a lot higher I'll say tolerance for lack

of a better term of questions that may not rise to

the level of this warrants an RAI, but, hey, this

staff member is curious about what's going on with

this widget. And if you can answer that question

over the phone and obviate it as a formal RAI and

maybe it helps inform his or her review when the

questions really are on point, that's useful as well.

So I have seen improvement. It is going

to be an area for, I think, continued focus. There

are always going to be, you know, incidents where we

don't think the question is appropriate, but

hopefully as we continue to progress, those are sort

of the outliers.

CHAIRMAN HANSON: Thank you.

MS. NEIDER: Yes, this is kind of a joint

effort here, as Peter mentioned, is that we do need

to push back when it's necessary to push back.

You know, a lot of negativity has been

about the NRC has made things too difficult, you know,

and it has driven the nuclear industry out of

business, those kind of things. And I think quite

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differently than that. I believe that we did it as

an industry. You know, the NRC was part of that but

so was the industry.

We have to watch for things where

engineers are just so proud so they want to tell all

about the things that they did versus what's actually

necessary for safety. And for each of the questions

and each of the things we submit, I think that's

important is you know, why are we doing this? Why

is this necessary to be part of the application?

Because if you put too much in there, it

always will have negative consequences, you know,

because there's going to be some reason that you want

to change something that's totally innocuous but now

you have to go through a rigorous process to change

those things.

So it's really incumbent on the staffers

to consider whether their questions need to be asked

but also with the applicants as to what information

that they should be providing and why they are

providing that information.

CHAIRMAN HANSON: Yes. Good points.

MS. CATTS: Yes. And, you know, my

perspective, the NRC they are really good question

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askers. For the most part, their questions are

really good. But it is important to have the NRC

management involved in the preapplication early on to

ensure that the review is fairly focused, you know,

what's being asked.

You know, also the goal of those

preapplication meetings is that the right level of

detail is provided so hopefully that will minimize

RAIs in the future.

You know from our perspective, like Mike

said, the NRC management should be thoroughly

involved in the review of the request for additional

information before they go out. And, you know,

really step back as a manager and look at the big

picture, you know, and ask yourself, does this

question that we may send out, does it provide

reasonable assurance of adequate protection or

absolute assurance? You know, what exactly are you

trying to get at? So just really kind of step back

and look at that big picture before those RAIs go

out.

CHAIRMAN HANSON: Thank you. Yes, very

helpful. Very helpful. And very interesting. I

think I want to kind of continue with this theme for

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a minute. We got another question in from the

audience, primarily for Mike about how are we kind of

allocating resources among applicants on, you know,

preapplication activities but just plain application

activities?

Is it kind of first come, first serve and

how are we -- you know, we've got an agency of already

busy people working on a lot of different issues and

how are we assigning resources to kind of the issues

that are coming in before us because we want to be

responsive to the people that are walking through the

door with whether it's white papers or topical

reports or, you know, construction permit

applications. How does that process go?

MR. DUDEK: I love this question. And

this is going to be my pitch in the fact that this

goes back to infrastructure and expectations.

So the NRC has set up the infrastructure

to be successful. We have two divisions very clearly

focused on two different areas, whether it's advanced

reactors or small module reactor licensing. When an

applicant comes in, we assign a senior project

manager and you meet. And that senior project

manager starts interfacing and develops a backup and

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a team to go along with him to ask those big

questions. And we start interfacing with the

appropriate technical staff. So that's the

infrastructure that we have set up to be successful

in this area.

And now my pitch to ensure that we're

successful is really incumbent upon the applicants to

let us know their timelines and schedules, whether

it's right before the engagement plan or information

to us on what is coming in and when. Because in some

respects it is first come, first serve.

If you let us know, if you adequately

communicate with us on what's coming in and when, we

can plan. We can adequately budget. We know what's

coming in. We have staff members set aside. We've

provided the training. We can hire. As long as we

know what's coming in, we can plan for it.

Now for those applicants that, you know,

don't involve the regulatory engagement process and

don't participate in preapplication as effectively as

others and we're not aware of what's coming in, we're

often surprised, and we can't budget.

We don't have the staff available to do

some of those reviews or if it's a specialized or a

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niche area, you know, we haven't done the outreach to

those technical parts of the organization, we use the

word matrix, the matrix organization to be able to

provide that expertise in a timely and effective

manner.

So, you know, it's just very, very

critical while voluntary for the preapplication

engagements to let us know what's coming and that's

my pitch.

CHAIRMAN HANSON: Well, if I can jump in

here, too, right, I mean, Mike we've talked about

this a little bit and, you know, this is where a lot

of things come together inside the agency, right,

where we're using some tools --I keep coming back to

-- in my mind I keep coming back to a point Michelle

made earlier about the predictability of budget and

schedule.

Well, part of that for us is actually

looking at what some of these efforts have taken in

the past so we can project in the future how long,

how many people, how much money, et cetera, right?

And then that allows us to better kind of allocate

resources among all the demands that we have.

And also, of course, then there's hiring,

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right? We want to make sure that, you know, we've

got attrition like every other organization in the

universe, and we want to make sure we're backfilling

those positions and that we're staffed up

appropriately to kind of meet the demands of the

agency.

So it's a real kind of multifaceted

effort, I think Mike, that you made a good point

about.

I did want to kind of ask, I want to get

down in the weeds just a little bit here and I also

want to take the pressure off of Mike a little bit

because I think a lot of the questions that are coming

in from the audience are coming into him.

So I wanted to ask Peter and Tara

primarily about this, you know, what kind of

preapplication interactions have you looked at or are

you having around kind of safeguards and to some

extent security kind of more broadly?

Particularly for your facilities, Peter,

I think we know that your proposing to use TRISO fuel,

which hasn't been widely used yet. But how are you

kind of approaching, you know, inventory and control

issues and have you approached the NRC with some of

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your -- or approach the staff?

MR. HASTINGS: That's a good question.

And the short answer is not yet, but it is definitely

on our list.

CHAIRMAN HANSON: Mm-hmm.

MR. HASTINGS: Not yet because it really

doesn't have as much bearing on the construction

permit as it will on the operating license.

A significant amount of the safeguards

and security aspects that we will be dividing into in

preapp space in advance of the operating license

application are more programmatic in nature.

Now that said, there are security by

design and safeguards by design aspects that we will

definitely be focusing on as we pivot to the detailed

design of the Hermes reactor.

And so where preapplication engagement

will help inform those design decisions that will be

made, you know, over the next several months, couple

years, then we'll definitely be engaging to make sure

that we factor that in as much as possible.

The more we can do by design, the less

burdensome those programmatic aspects will be. And

it's important for many of the people in the advanced

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reactor community to have these discussions because

there is no guidance out there today on Category 2

fuel, high-assay LEU many of us are using. Category

2 requirements are not particularly well understood

right now. And we would like to engage both at an

industry level and for individual applicants to make

sure that in the absence of guidance the staff doesn't

default to Category 1 guidance when it would be more

appropriate for facilities to look a lot more like

Category 2.

CHAIRMAN HANSON: Good points.

MS. NEIDER: And I would say we're kind

of in the same position that Peter mentioned for his

reactor. We did submit our safeguards program to the

NRC and were audited. And that went very well. We

expect to have approval for our safeguards shortly.

And I would say that we are following the safeguards

by design and security by design. However, we

haven't really engaged with the NRC on that yet.

CHAIRMAN HANSON: Yes, thank you, Tara.

I think that safeguard by design is something the NRC

is just starting to look at. It's something I have

an interest in but also I think Peter raised a number

of good issues, too, right, where we are encouraging

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the agency to -- a lot of the preapplication

activities that you're going to have aren't

necessarily going to be with the Office of Nuclear

Reactor Regulation. There's this other office, the

Office of Nuclear Material Safeguard Security, who

also are going to have some input here particularly

on the fuel side that's going to be important and not

necessarily fuel fabrication but, you know,

transportation and storage and other kinds of issues.

So very, very interesting.

This was a question that came in mostly

for Mike, but I'm kind of interested in the whole

group's perspective on this. And it's a genuine

question to kind of start from my perspective, which

is does the submission of topical reports end, or

white papers for that matter, kind of end when a

construction permit application or a COL for that

matter is submitted or are there kind of ongoing

things that you either want to or intend to interact

on?

And I guess, you know, the question

really came in about, you know, how was the NRC

looking at issues like constructability or ITAACs,

which is integrated testing accepting kind of reviews

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down the road, or inspection and oversight or

operations? Or is it the case where, you know, a CP

will come in and yet there might be still a desire

for further engagement on some of these issues that

may not be directly under review at any given time?

And I guess, Mike, I'll let you kick it

off. But I'm hoping our vendors can weigh in on this

issue as well.

MR. DUDEK: I think that's a testament

to the capabilities of our staff. You know, our

reactor assistance staff, for example, often has and

has had topical reports being reviewed at the same

time, multiple topical reports, being reviewed at

the same as the design certification. And it can be

a parallel activity.

It often is very challenging. You make

a finding in one area. You have to see how that's

integrated into the overall application. And we've

learned some lessons on that. And that's part of

what we're correcting now and some of the things that

we're looking at in the future.

I anticipate this to continue to occur

during several of our applications just because in my

opinion the finality that you gain for a very specific

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topic in a topical report and then parlaying that

into an overall application has dividends and has

that finality piece that does pay dividends down the

road. And for most topical reports, they can be

applied in multiple different areas.

CHAIRMAN HANSON: Thank you.

MS. CATTS: Yes. You know, from GE's

perspective, you know, we would continue with

licensing topical reports, you know, through

construction permits and EPRI licenses. But, you

know, again the goal is to be able to reference the

license and topical report in those, you know,

license processes, right?

So you've got to make sure you get it

reviewed and approved to be able to reference it in

your application. But, you know, some licensing

topical reports you might need prior to construction

permit. But some licensing topical reports you might

not need until prior to the operating license.

So for instance you might want to get the

severe accident source term figured out early on.

But, you know, you might be able to handle control

room type support center security requirements later

in the operating license.

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MS. NEIDER: Yes. And I would agree with

Michelle that we'll continue to have a lot of

engagement with the NRC on issues that are listed in

the question.

The one thing in the question that kind

of popped out at me that felt a little bit different

was ensuring that the reactors can be constructed,

you know, site constructability. And I don't think

that's an NRC -- or should not be an NRC concern.

That is our responsibility. We do have

constructability reviews throughout our design

process.

We are working with Bechtel, who is doing

those construction reviews for us. And it's a real

risk that, you know, you have construction

challenges. But that's ours. It's not a safety

issue. And I would push back on that. I think the

best thing with respect to constructability is that

we try to minimize the things that we commit to that

don't have an impact on safety.

MR. HASTINGS: Yes, that and the

component of how do we keep ITAAC from impacting the

construction schedule? A different way of phrasing

the question is a whole other discussion that could

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take quite a bit of time.

On the topic of does the topical stop at

the submittal of the application? As everyone else

has said, it doesn't. It's a continuum, and it

depends on how any particular report is going to be

used, what conditions there are for its use in a

subsequent license application.

We've got a construction permit under

active review, and we still have four topicals that

are still under review. So it absolutely doesn't

stop.

CHAIRMAN HANSON: Thank you. And, Tara,

good point about the constructability. You're right.

I was reading it off the question. Right.

Constructability is an issue for us only insofar as

we're able to inspect ongoing construction with

regard to safety parameters. I totally understand

that.

And that was kind of the context in which

I read it. It wasn't -- I didn't have in mind that

we were evaluating whether or not you could connect

Widget A to Widget B in a physical sense. So that's

a fair point from you and thank you for that.

How have -- there's a question here about

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kind of predictability of schedules. And it's a

question for the vendors. And I guess, you know,

there's a question I have about how are you -- you

know, we're looking at our data about how are things

going in terms of, look, we thought this review was

going to take X number of days or weeks, and it took

Y.

And we're looking at our own predictions

for that. But how are those predictions kind of

working on your end in terms of both the real data

you're getting? And some of those changes, some of

the deltas there are going to be entirely

understandable. Well, you know, it took us a little

long to respond to this question or, oh, we didn't

quite anticipate that question.

But how is that predictability kind of

shaping up in your own space and how is that kind of

informing your engagement posture, I guess, kind of

going forward?

MR. HASTINGS: I'll start from Kairos.

Our track record is pretty good, and it speaks to, I

think, the commitment of our company to do what we

said we were going to do.

That hasn't always been the case in some

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of my past lives to be honest. And that points to

maybe a call for a little bit of humility on the part

of developers to be willing to sort of raise our hands

and say we said we were going to do this and for good

reasons or bad reasons we didn't, and we're willing

to acknowledge our role in that in terms of what our

overall schedule looks like going forward.

MS. NEIDER: And I guess I could add to

that, we do have a very challenging schedule. And

we're committed to meeting our schedule. We have had

some struggles with hiring people. I think we've

hired really, really great people but our hiring ramp

is pretty fast. So we are people challenged.

And we will just, you know, commit to if

we do have delays we will provide those delays fairly

early so that people can respond to that. But we are

doing everything we can to meet the schedule dates.

And so far on the Natrium project we've met all of

our milestones. So we're doing fairly well, but it

is a big challenge because there are so many

developments going on right now in advanced reactors

and light water reactors for that matter. So there

is a limited staff in the industry.

MS. CATTS: For these projects to be

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successful, like I said, they really need to be on

track and on budget from both our side and from the

NRC's side. You know, from our perspective, early

engagement works best with the NRC. You have to

develop the regulatory engagement plans, stick to the

plan, you know, discuss the plan with the regulators,

stick to it, stick to the time frames that we say

we're going to submit something so that, you know,

the NRC has their time to review it and that NRC can

plan and budget their resources.

And one of the things I would really like

to see, you know, coming from the NRC to private

industry, I would really like, you know, to see the

NRC run these reviews like a full project management

process like you see in the industry with milestones,

budget reviews, action owners, due dates, for real

transparency and visibility so we can kind of see

it's on track and on budget the whole way through the

process.

CHAIRMAN HANSON: That's a great point,

Michelle. And I'll put Mike on the spot just a little

bit here, right? I mean, I've been around just

enough capital projects to be dangerous and have been

exposed just enough to tools like, you know, P3 -

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Primavera and other kinds of sophisticated scheduling

tools to be dangerous. I fully admit that.

But what about that, Mike? I mean, how

are we -- you know, to what extent are we kind of

leveraging some of these hard core project management

tools in our reviews?

MR. DUDEK: So good question. We are in

the -- we have come a long way over the last year in

being able to be predictable and on budget. And

we're getting better.

So I think that my applicants clearly see

that this is a priority that I make. And I have

daily, weekly and monthly briefings on my projects,

on my budget, and I operate, you know, within the

agency guidance, you know, clarity, openness,

reliability and efficiency, you know, those are the

core values that I tout, and I try to embody during

all of my reviews.

And it goes back to that predictability

piece. Are we setting realistic schedules? Are we

meeting those schedules and how do we do that? And

that's really incumbent on a management team to be

able to brief that out, to manage those processes to

be open.

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If we foresee that the RAI process isn't

going well, we need a second round of RAIs, I go out

to my applicants immediately and say, hey, we're not

meeting expectations. It's taking a little bit

longer and here's why and that could endanger the

review or that could lengthen the review. So that

goes back to that fulsome details, replying to RAIs

effectively and providing those detailed answers that

the staff needs to be able to fully meet those

schedules and those expectations.

As for the processes and procedures,

they're improving. We now have RPS, the Reactor

Project System, which we track and assign projects

through, which has been incredibly key, you know, and

we've only had that for the last two years.

So we are making progress. This is a

focus. And as Rob Taylor will tell you that we're

running this more as a business than anything else.

Are we on schedule? Are we providing good customer

service? Are we able to meet the demands and the

timelines needed to be successful in front of the

entire world for these new reactor applications? As

I said, we're making progress.

CHAIRMAN HANSON: It's really good to

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hear. And, you know, we can have -- this is another

one of those branches where we can kind of talk about

staff development in the NRC and building that

expertise, and we've done so much to get smart on I

think advanced reactors. Our Be RiskSMART framework

has been critical.

And I know, you know, for me going back to

my days as a consultant, I mean, some of the most

useful training I ever had was project management

professional training. I never did pull the trigger

and go get my PMP certification. But it's still a

framework and a kind of Heuristic that I use all the

time to look at issues. So there's lots of kind of

food for thought there.

I wanted to ask, you know, as an agency

who has kind of both the responsibility to applicants

and licensees to be transparent, to be predictable

where possible, to be open, and we also kind of have

this responsibility to the public, right, where we

want to be as clear as we possibly can with the public

about what we're doing and why we're doing it.

And to that extent and, you know, to that

end, we have a lot of these interactions. A lot of

preapplication interactions are public meetings.

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And some of them can't be, right, because of security

information or business proprietary information.

But I wanted to get some thoughts from vendors and

then Mike about the public facing aspect of our

interactions and your thoughts and kind of feedback

on that. Don't everybody jump in at once.

MS. CATTS: I'll start.

CHAIRMAN HANSON: Michelle will start.

MS. CATTS: I'll start. You know, from

our perspective, interactions with the public are

very important. We've been really trying to make our

presentations, for instance the ACRS meetings coming

up, things like that, try to make them as non-

proprietary as possible, the slides, so that we can

have more engagement with the public in these

discussions. Because the earlier you get the public

engaged, the more clarity you get early on to address

any issues, right? So this only helps you in the

long run to have, you know, early public engagement.

So I guess we've been really trying to

make our slides as public as possible so we can

minimize what's in the closed session and maximize

what's in the open sessions.

MS. NEIDER: And I think -- I'll add to

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that. For Natrium, I think we've been more public

than most. And we can see that because, you know,

we get targeted by anti-nuclears because we are

making almost everything public. But, you know, we

do have to keep some things separate because they're

propriety in nature or have security issues.

But we do think it's the right thing.

The public has a right to know. And we do try to be

as public as possible.

There was one NRC meeting we were in

where we were in the public part of the meeting and

we planned to discuss it in the closed meeting and a

question from the audience came out and they asked

that question.

But in the public meetings, the process

is the NRC responds to the questions not the

applicant. So we knew the answer to it and the NRC

answered incorrectly because we hadn't told them yet.

So there is a little bit of an issue there. So I

don't know if we should be speaking in the public

meetings or not but that's one thing to think about.

MR. HASTINGS: We found the public

meetings to be perfectly useful as well. It doesn't

inhibit our discussion with the staff in any way and

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wherever the information is public, we've been

perfectly open with it as well.

I want to acknowledge that the staff is

sort of the guardian, if you will, of what should and

shouldn't be withheld from the public. And in early

engagements with us on the topical report, we piloted

what came to be known as the "no RAI" approach to

reviewing the topicals.

And I was a little hesitant to use that

term because it makes it sound like we're, you know,

conducting discussions back behind the curtain

somewhere and that was far from the truth. All we

did was in collaboration with the staff short circuit

through some of the bureaucracy around generating the

questions and answering the questions.

So instead of an entire series of formal

letters back and forth, the staff would send us

questions. If we understood the question or with a

brief conversation clarify the question, we would

more often than not amend the report and submit it.

And all the questions and our responses and the

amended submittal all ended up on the docket just as

if they had been a formal sort of letter writing

campaign.

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So really good improvement in the process

without any, you know, obfuscation or anything

needing to be kept from the public, and it was

remarkably effective.

CHAIRMAN HANSON: Thank you. Mike?

MR. DUDEK: Well, as you know, Mr.

Chairman, you know, openness and transparency is the

bedrock of what we do at the NRC. So I can't tell

you how valuable it is to me at every turn whether

it's a public meeting or engagement on a document or

even during the rulemaking activities and the public

engagement we have on that, on the level of engagement

that we have and the insightful comments that we get

back.

I'll give you two examples. I mean, for

the NuScale rulemaking and for other rulemakings that

I've participated in, the level of insightfulness and

just the quality of comments that we get back from

some of those engagements really just make me step

back and think. Because you're laser focused on a

task and a lot of times you're not thinking about the

big picture, and you don't know what you don't know.

And a lot of these questions really make me step back

and think.

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And in some of the cases, our current

efforts have really made us go back and evaluate what

we're doing and how we're doing it. And so I truly

value the openness and transparency of the NRC and

that's what made me stay here for 20 plus years. I

love it.

CHAIRMAN HANSON: Well, I think that's

as good a note as any to kind of wrap-up here. I

really want to thank our panelists, Peter Hastings

from Kairos, Tara Neider from TerraPower, Michelle

Catts from GE Hitachi. Thank you all very much for

your willingness to engage and to give us, you know,

the NRC some constructive feedback here. It's been

enormously helpful.

I want to thank Mike Dudek for his good

humor. He spent a lot of time on the hot seat this

afternoon. And he handled it with a lot of grace.

And I appreciate everything you do, Mike, and so

forth.

I think we touched on a lot of really

good themes here, you know, having a good

conversation along that access of flexibility and

predictability in regulatory space but also kind of

in budget and schedule, the NRC's, I think,

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commitment to learn from other reviews, like NuScale,

and so forth and apply those lessons to the folks

that are currently in front of us now, many of which

we have with us today.

I think that, you know, we're looking and

the agency is really preparing for, you know, a

potential wave here of new applications and a

diversity, I think, of applications that's really

teeing up to be, I think, different.

And a lot of -- you know, even with kind

of existing light water reactor technology, the

technology has improved and the analytical tools have

improved. And we're, I think, adapting to that in

ways that I know will challenge the agency. And I've

been pleased with the preparations that the agency

has made so far even as I know we have more work to

do.

So thank you all again very, very much.

And thanks to the public for joining us. And with

that, we'll bring it to a close. Thank you again.

(Whereupon, the above-entitled matter

went off the record at 2:23 p.m.)

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