ML22301A182

From kanterella
Jump to navigation Jump to search
OIG-23-A-01 Inspector General'S Assessment of the Most Serious Management and Performance Challenges Facing the U.S. Nuclear Regulatory Commission in Fiscal Year 2023 Dated October 28, 2022
ML22301A182
Person / Time
Issue date: 10/28/2022
From:
NRC/OIG
To:
References
OIG-23-A-01
Download: ML22301A182 (1)
v • d • e


Text

October 28, 2022 OIG-23-A-01 Inspector Generals Assessment of the Most Serious Management and Performance Challenges Facing the U.S. Nuclear Regulatory Commission in Fiscal Year 2023 Vogtle Units 3 and 4 Under Construction (Source: NRC OIG, used with permission) i All publicly available OIG Reports (including this report) are accessible through the OIGs website:

https://nrcoig.oversight.gov/

At a glance WHY WE DID THIS REPORT The Reports Consolidation Act of 2000 (Public Law 106-531) requires us to annually update our assessment of the U.S. Nuclear Regulatory Commissions (NRC) most serious management and performance challenges facing the agency and the agencys progress in addressing those challenges.

WHAT WE FOUND The NRC licenses and regulates the nations civilian use of radioactive materials to provide reasonable assurance of adequate protection of public health and safety, to promote the common defense and security, and to protect the environment. The NRCs proposed fiscal year (FY) 2023 budget request is

$929.2 million, including 2,879 full-time equivalents (FTE). As it executes its important mission as a federal agency, the NRC must continue to be a responsible steward of taxpayer dollars and properly expend its budgeted funds.

With input from NRC leadership, we have assessed, developed, and described each of the NRCs most serious challenges for FY 2023, noting actions already completed by the agency, and the NRCs continuing work on each challenge.

We have independently identified the following 10 clear, specific, and actionable challenges that require the NRCs continued attention:

1. Ensuring safety while transforming into a modern, risk-informed regulator;
2. Overseeing the decommissioning process and the management of decommissioning trust funds;
3. Strengthening the NRCs readiness to respond to future mission-affecting disruptions;
4. Advancing readiness to license and regulate new technologies in reactor design, fuels, and plant controls, and maintaining the integrity of the associated intellectual property;
5. Ensuring the effective acquisition, management, and protection of information technology and data;
6. Implementing strategic workforce planning during transformation and industry change;
7. Overseeing materials, waste, and the National Materials Program;
8. Managing financial and acquisitions operations to enhance transparency and fiscal prudence; ii
9. Reinforcing the NRCs readiness to address cyber and physical security threats to critical national infrastructure sectors impacting the NRCs public health and safety mission and/or NRC licensees; and,
10. Maintaining public outreach to continue strengthening the agencys regulatory process.

By addressing these challenges, the NRC will strengthen the execution of its mission, achieve its strategic goals, and maintain the highest level of accountability over taxpayer dollars.

AGENCY RESPONSE TO MANAGEMENT CHALLENGES FOR FY 2022 The NRC has constructively engaged with the Office of the Inspector General (OIG) and sought to address OIG audit report recommendations throughout the year. The NRC continues its focus on multiple transformation initiatives as it seeks to achieve its objective to become a more modern, risk-informed regulator.

iii

Contents Introduction..................................................................................................... 1 Ensuring Safety while Transforming into a Modern, Risk-Informed Regulator ............................................................................... 8 Overseeing the Decommissioning Process and the Management of Decommissioning Trust Funds .....................................................................10 Strengthening the NRCs Readiness to Respond to Future Mission-Affecting Disruptions ...................................................................... 12 Advancing Readiness to License and Regulate New Technologies in Reactor Design, Fuels, and Plant Controls, and Maintaining the Integrity of the Associated Intellectual Property ......................................... 14 Ensuring the Effective Acquisition, Management, and Protection of Information Technology and Data ................................................................ 16 Implementing Strategic Workforce Planning During Transformation and Industry Change ..................................................................................... 18 Overseeing Materials, Waste, and the National Materials Program .......... 20 Managing Financial and Acquisitions Operations to Enhance Transparency and Fiscal Prudence ............................................................. 22 Reinforcing the NRCs Readiness to Address Cyber and Physical Security Threats to Critical National Infrastructure Sectors Impacting the NRCs Public Health and Safety Mission and/or NRC Licensees .......................... 24 Maintaining Public Outreach to Continue Strengthening the Agencys Regulatory Process ........................................................................ 26 To Report Fraud, Waste, or Abuse.............................................................. 28 Comments and Suggestions ........................................................................ 28 iv

Introduction FROM THE INSPECTOR GENERAL I am pleased to present our assessment of the most significant management and performance challenges facing the NRC in FY 2023.

The Reports Consolidation Act of 2000 requires us to annually update our assessment of the NRCs most serious management and performance challenges facing the agencyand the agencys progress in addressing those challenges. In this report, we summarize what we Robert J. Feitel, consider to be the most critical management and NRC and DNFSB performance challenges for the NRC, and we assess the Inspector General agencys progress in addressing those challenges.

The NRC continues to accomplish its mission, demonstrating through its work that it is dedicated to ensuring public health and safety, promoting the common defense and security, and protecting the environment through the effective regulation of nuclear materials. Beyond its nuclear safety and security mission, as a federal agency, the NRC must be a responsible steward of taxpayer dollars and expend its budgeted funds properly.

ABOUT THE INSPECTOR GENERAL In accordance with the 1988 amendments to the Inspector General Act of 1978, the NRCs OIG was established on April 15, 1989, as an independent and objective unit to conduct and supervise audits and conduct investigations relating to the NRCs programs and operations. The purpose of the OIGs audits and investigations is to prevent and detect fraud, waste, abuse, and mismanagement, and promote economy, efficiency, and effectiveness in NRC programs and operations. In addition, the OIG reviews existing and proposed regulations, legislation, and directives, and comments on any significant concerns. The Inspector General serves under the general supervision of the NRC Chair but operates with personnel, contracting, and budget authority independent of the NRC. The Inspector General informs the Chair and Congress about problems, recommends corrective actions, and monitors the NRCs progress in implementing such actions.

ABOUT THE NRC The NRCs mission is to license and regulate the nations civilian use of radioactive materials to protect public health and safety, promote the common defense and security, and protect the environment. The NRCs vision is to 1

carry out this mission as a trusted, independent, transparent, and effective nuclear regulator, consistent with the NRC Principles of Good Regulation.

The NRC is led by a group of five Commissioners appointed by the President and confirmed by the Senate for 5-year terms.

One of the Commissioners is designated by the President as Chair, who serves as official spokesperson of the Commission. President Biden designated Christopher T. Hanson as Chair of the Commission effective January 20, 2021. Chair Hanson is joined by Commissioners Jeff Baran, David A. Wright, Annie Caputo, and Bradley R. Crowell. The NRC Headquarters (Image: NRC)

Commission formulates policies and approves regulations governing nuclear reactor and materials safety, issues certain orders to NRC-regulated entities, and adjudicates legal matters brought before it. The Executive Director for Operations carries out the policies and decisions of the Commission and directs the activities of the program offices. The offices reporting to the Executive Director for Operations strive to ensure the safe commercial use of nuclear materials in the United States. As part of the regulatory process, the NRCs four regional offices conduct inspection, enforcement, and emergency response programs for licensees within their regions or areas of responsibility.

The NRCs FY 20222026 Strategic Plan describes the agencys mission, vision, and principles of good regulation, along with strategic goals, objectives, and strategies. The strategic goals of continuing to foster a healthy organization and inspiring stakeholder confidence in the NRC complement the safety and security strategic goal. The safety and security strategic goal, objectives, and strategies ensure the safe and secure use of radioactive materials.

The NRC carries out its safety and security activities through two major programs: Nuclear Reactor Safety, consisting of the Operating Reactors and New Reactors business lines, and Nuclear Materials and Waste Safety, consisting of the Fuel Facilities, Nuclear Materials Users, Decommissioning and Low-Level Waste, Spent Fuel Storage and Transportation, and High-Level Waste business lines. The agency accomplishes its mission to provide reasonable assurance of adequate protection for public health and safety through regulatory activities such as licensing, oversight, and rulemaking. In addition, the NRCs incident response activities prepare for and respond to emergencies involving radioactive materials.

The NRCs FY 2023 budget request is $929.2 million and includes 2,879.6 FTEs. Compared to the NRCs FY 2022 Presidents Budget, the FY 2023 2

budget request increased by approximately 4.7 percent, or $41.5 million, primarily to support salaries and benefits adjustments.

During FY 2022, the NRC has made progress in achieving its safety and security goals through continued oversight of the operation of nuclear power plants and fuel cycle facilities, and of the possession and use of radioactive materials.

As of mid-September 2022, the NRC had satisfactorily closed 62 OIG audit recommendations during FY 2022. The NRC has also advanced toward its objective of becoming a modern, risk-informed regulator. The following examples are South Texas Project, Units 1 and 2, representative of agency accomplishments Bay City, Texas and issues addressed in FY 2022. (Photo courtesy of © STP)

OPERATING REACTORS The agencys most recent performance assessments indicate that all operating power reactor plants continue to operate safely. NRC staff assess licensee performance, communicates changes in performance quarterly, and issue end-of-cycle assessment letters. The NRC most recently issued annual assessment letters to licensees in March 2022.

In February 2022, the Commission issued orders regarding the agencys National Environmental Policy Act review of subsequent license renewal (SLR) applications. The Commission also directed staff to develop a rulemaking plan to fully evaluate the environmental impacts of reactor SLR in NUREG-1437, License Renewal Generic Environmental Impact Statement.

In April 2022, the Commission approved the plan proposed by staff, which would complete the rulemaking within 2 years.

The NRC has continued to engage with industry to improve application of inspection resources through the Reactor Oversight Process. In addition, the agency has reviewed inspection experience from the Coronavirus Disease 2019 (COVID-19) public health emergency to identify best practices for effective onsite inspection.

MATERIALS, FUEL, WASTE, AND DECOMMISSIONING In September 2022, the NRC issued a renewed operating license for the Westinghouse Columbia Fuel Fabrication Facility, as well as a Record of Decision for the final Environmental Impact Statement. The license renewal allows the facility to operate for an additional 40 years. The facility is one of three fuel fabrication facilities currently in operation in the U.S. The NRC staff reviews concluded that the companys programs are adequate to ensure 3

safe operation of the facility for the 40-year period and considered the companys performance and efforts to mitigate onsite contamination before renewing the license.

In April 2022, the Commission approved a staff rulemaking plan to revise the licensing requirements for low-level radioactive waste disposal and address Greater-Than-Class-C and transuranic waste disposal requirements. The rule would ensure that low-level waste streams that are significantly different from those considered during the development of existing regulations, such as depleted uranium, will continue to be disposed of safely and meet the performance objectives for land disposal of low-level radioactive waste. The rule would also clearly define the requirements for the near surface land disposal of Greater-Than-Class-C and transuranic waste.

Oversight of decommissioning activities includes materials sites and research and test reactors, as well as power reactor facilities. Decommissioning of power reactors generates significant public interest. The reactor decommissioning program continues to adapt to changes from increases in the number of sites entering decommissioning and of sites opting to NRC OIG team tours the seawall at the decommissioning San Onofre Nuclear implement accelerated schedules for Generating Station, San Clemente, California decommissioning. Both trends result in (Image: OIG, with permission) an increased workload to support simultaneous licensing and inspection activities. Accelerated decommissioning also increases demands on the agencys capabilities to evaluate financial qualifications and decommissioning funding assurance. The NRC has revised key decommissioning guidance documents, and enhanced funding review process controls and internal guidance, to respond to the increased decommissioning oversight needs.

The NRC continues to implement the agencys Tribal Policy statement, conducting outreach, guidance development, and training. The agency also coordinates with other federal agencies on Tribal matters and on NRC projects involving Tribal consideration. In April 2022, the Commission traveled to New Mexico for public meetings related to the impacts of uranium contamination on the Navajo Nation.

4

NEW AND ADVANCED REACTORS The NRCs new reactor program is focusing on licensing and construction oversight activities for large light water reactors (LWRs) and small modular LWRs, and continuing to develop the specific regulatory framework and infrastructure for advanced reactors (non-LWRs). In addition, the NRC is actively engaged in several international cooperative initiatives to improve safety reviews of new reactor designs and improve the effectiveness and efficiency of inspections and the collection and sharing of construction experience.

The NRC has authorized Southern Nuclear Operating Company (SNC) to load nuclear fuel and begin operation at Vogtle Unit 3, near Waynesboro, Georgia. Unit 3, which is adjacent to Vogtles operating NRC OIG team tours the Vogtle Units 3 and 4 Units 1 and 2, is the first reactor to construction project, Waynesboro, Georgia reach this stage in the agencys (Image: OIG, with permission) combined license process. SNC recently informed the agency that the company completed the inspections, tests, analyses, and acceptance criteria (ITAAC) needed to show Vogtle Unit 3 can begin safe operations. NRC staff independently verified completion of the final ITAAC and notified the Commission of the staffs intent to authorize operation. The Director of the NRCs Office of Nuclear Reactor Regulation then authorized fuel load and operation of Vogtle Unit 3. The NRCs decision moves Vogtle Unit 3 out of the construction reactor oversight program and into the operating reactor oversight process, marking a significant regulatory milestone for the agency. The NRC will remain focused on safety as Vogtle Unit 3 transitions through fuel loading and start-up testing and into commercial operations. Vogtle Unit 4 construction continues under the NRCs construction reactor oversight program.

In July 2022, the Commission approved staff publication of a final rule to certify the NuScale design. NuScale Power, LLC applied for certification of its standard design on December 31, 2016. In August 2020, the NRC staff completed its review and issued the final safety evaluation report for the standard design application. In 2021, the staff published for comment in the Federal Register a proposed rule to certify NuScales design. After considering public comments on the proposed rule, and based on its safety review of the design, the staff concluded that the NuScale design certification rule meets all applicable requirements. Commission approval of the standard plant design allows applicants to reference the design certification in future applications.

5

The NRC has two pending, technology-inclusive rulemakings related to small modular reactors (SMR) and other new technologies (ONT). In one effort, in January 2022, the NRC staff requested Commission approval to publish the draft final rule establishing alternative emergency preparedness (EP) requirements for SMRs and ONTs.

The new EP requirements and implementing guidance adopt a consequence-oriented, risk-informed, performance-based, and technology-inclusive approach. Facilities to be licensed after the date of the final rule would have the option to develop a performance-based EP program, Artists rendering of a NuScale nuclear power plant with multiple reactor units rather than using the existing, (Image: NuScale Power) deterministic, EP requirements in 10 Code of Federal Regulations (C.F.R.) Part 50.

In the other effort, the NRC staff is developing in 10 C.F.R. Part 53 a technology-inclusive, risk-informed, and performance-based framework to prepare for the licensing of advanced reactors and other nuclear technologies.

The NRC staff is engaged with approximately 15 vendors in pre-application activities and anticipates at least 10 applications in the next 5 years. The staff has issued guidance in certain areas to support applicants developing diverse designs and technologies. After extensive stakeholder engagement, the staff is on schedule to deliver the proposed rule to the Commission in early calendar year 2023 and meet the December 31, 2027 deadline for issuing a final rule imposed by the Nuclear Energy Innovation and Modernization Act (NEIMA).

TRANSFORMATION: BECOMING A MODERN RISK-INFORMED REGULATOR During FY 2022, the NRC conducted a survey of external stakeholders to obtain perspectives regarding the agencys transformation efforts. While the feedback was generally positive, the results showed uncertainty among respondents regarding how the NRC uses risk information to make timely decisions. However, the NRC has taken steps toward automating information exchange with external stakeholders to increase accessibility and improve data validation and capture into systems. Transformation efforts have also included steps to improve engagement in and timeliness of the deliberative rulemaking process, apply the Be riskSMART framework to security oversight programs, leverage the NRCs SPAR risk models to support efficiencies in operating reactor licensing and oversight, and enhance the accessibility of the NRCs eBilling application.

6

NRC FY 2023 MANAGEMENT AND PERFORMANCE CHALLENGES We have assessed, developed, and described each of the NRCs most serious challenges for FY 2023, noting actions already completed by the agency, and the NRCs continuing work on each challenge. The challenges are not listed in any order of priority, nor do they necessarily equate to problems; rather, they should be considered areas of continuing important focus for NRC management and staff.

NRC leadership noted its own assessment of the key challenges facing the agency in its response to the OIGs request for input in this area. We have considered this input and independently identified the following 10 clear, specific, and actionable challenges that require the NRCs continued attention:

1. Ensuring safety while transforming into a modern, risk-informed regulator;
2. Overseeing the decommissioning process and the management of decommissioning trust funds;
3. Strengthening the NRCs readiness to respond to future mission-affecting disruptions;
4. Advancing readiness to license and regulate new technologies in reactor design, fuels, and plant controls, and maintaining the integrity of the associated intellectual property;
5. Ensuring the effective acquisition, management, and protection of information technology and data;
6. Implementing strategic workforce planning during transformation and industry change;
7. Overseeing materials, waste, and the National Materials Program;
8. Managing financial and acquisitions operations to enhance transparency and fiscal prudence;
9. Reinforcing the NRCs readiness to address cyber and physical security threats to critical national infrastructure sectors impacting the NRCs public health and safety mission and/or NRC licensees; and,
10. Maintaining public outreach to continue strengthening the agencys regulatory process.

By addressing these challenges, the NRC will strengthen the execution of its mission, achieve its strategic goals, and maintain the highest level of accountability over taxpayer dollars.

7

Challenge 1: Ensuring Safety while Transforming into a Modern, Risk-Informed Regulator The NRCs increasing emphasis on risk-informed WHY IS THIS A SERIOUS regulation necessitates guidance changes, as well MANAGEMENT AND as efforts to raise staff awareness of these changes PERFORMANCE and ensure regulatory consistency. The NRC must CHALLENGE? also engage external stakeholders to ensure transparency of resulting changes to its licensing and oversight processes.

CHALLENGE SYNOPSIS Since 1995, it has been NRC policy to inform regulatory activities with risk insights, thereby balancing deterministic engineering judgment with quantitative analysis based on operating experience. The agency has emphasized this policy in recent years as risk analysis models have become more sophisticated and nuclear power licensees have increasingly used probabilistic safety risk assessment to support changes to their license requirements.

Nevertheless, the NRC and the nuclear industry have methodological differences in their respective approaches to probabilistic risk assessment, and agency staff members sometimes disagree internally on the use of risk analysis in regulatory actions such as license amendments and inspection findings.

Additionally, the years-long decline in reactor inspection findings of very low safety significance (i.e., green findings) has raised questions among NRC staff and external stakeholders about the root causes of this trend and whether it reflects an appropriate increase in risk tolerance by the NRC.

Further, the NEIMA directed the NRC to develop and implement, where appropriate, strategies for the increased use of risk-informed, performance-based licensing evaluation techniques and guidance for commercial advanced nuclear reactors within the existing regulatory framework. Advanced reactor designs present unique challenges given the lack of operating experience data to inform risk modeling.

8

ONGOING ACTIONS COMPLETED ACTIONS Staff are drafting changes to Reactor Staff applied the new Risk-Informed Oversight Process governance Process for Evaluations to one reactor documents regarding qualitative licensing action.

descriptions of white and yellow safety significance for inspection findings, Staff developed guidance for applying and will incorporate associated the Risk-Informed Process for changes in a planned revision to the Evaluation to reactor Technical NRC Enforcement Policy. Specification license amendment requests.

Staff drafted papers for Commission review regarding proposed changes to Staff completed a pilot program to the frequency of engineering and risk-inform technical reviews for problem identification and resolution spent fuel dry storage.

inspections, the emergency preparedness significance Staff completed its CY 2021 Reactor determination process, and treatment Oversight Process program of licensee performance indicators in assessment, which focused on the Reactor Oversight Process Action inspection data trends and Matrix. effectiveness of new initiatives such as the Very Low Safety Significance Issue Resolution process.

9

Challenge 2: Overseeing the Decommissioning Process and the Management of Decommissioning Trust Funds The increased numbers of power reactor sites in decommissioning, and of those opting for WHY IS THIS A SERIOUS accelerated decommissioning, add to demands on MANAGEMENT AND decommissioning program resources for all PERFORMANCE decommissioning licensing and oversight activities, CHALLENGE? including the NRCs independent analyses of licensees decommissioning funding status reports.

CHALLENGE SYNOPSIS There are 25 power reactors currently undergoing decommissioning. The licensees for these reactors and other nuclear reactors must provide reasonable assurance that funds will be available for the entire decommissioning process.

To oversee licensees decommissioning funding, the NRC requires licensees to provide a decommissioning financial status report biennially, and annually for five years prior to permanent cessation of operations. Prior to or within 2 years after permanent cessation of operations, licensees are required to submit a Post Shut-Down Decommissioning Activities Report that includes a description and schedule for the planned decommissioning activities and a site-specific cost estimate. Licensees in decommissioning must then annually submit decommissioning funding status reports.

The NRC has identified technical resource needs for the program in inspection, risk analysis, licensing review, and project management. Local communities may have additional concerns about the accelerated decommissioning model, entailing augmented opportunities for public interactions.

Key decommissioning challenges include:

  • Ensuring that agency processes adequately address current reactor decommissioning business models, including those that provide for accelerated decommissioning activities;
  • Managing oversight of decommissioning trust fund shortfalls for both operating and decommissioning reactors;
  • Maintaining reasonable assurance that operating reactors will have sufficient funds to decommission safely; and,
  • Improving decommissioning guidance.

10

ONGOING ACTIONS COMPLETED ACTIONS The NRC is conducting power reactor In December 2021, the NRC staff decommissioning rulemaking to clarify approved the transfer of licenses for regulations. In FY 2022, NRC staff Palisades and Big Rock Point nuclear held 6 public meetings in various power plants and their associated spent locations, and testified before fuel storage facilities to a Congress, related to the proposed decommissioning operator.

decommissioning rule, guidance development, and site-specific The NRC revised Inspection Manual licensing actions. Chapter 2561, Decommissioning Power Reactor Inspection Program, to Staff are processing public comments incorporate lessons learned and to received during the extended public reflect inspection procedure changes.

comment period.

11

Challenge 3: Strengthening the NRCs Readiness to Respond to Future Mission-Affecting Disruptions The COVID-19 public health emergency caused significant disruptions to the U.S. workforce, but WHY IS THIS A SERIOUS the NRC adopted policies and procedures to protect its staff and licensee personnel while MANAGEMENT AND continuing to execute its mission. The agency can PERFORMANCE prepare for events of similar or greater impact by CHALLENGE? incorporating lessons learned during its COVID-19 response into routine policies and procedures, as well as the agencys contingency planning.

CHALLENGE SYNOPSIS Following the Presidents declaration of the COVID-19 public health emergency in March 2020, the NRC directed most employees to work from home to minimize risks and other disruptions to agency business. Nevertheless, NRC offices remained open to support work that could not be performed remotely, such as intelligence analysis and processing of classified and safeguards information. Additionally, NRC inspectors continued their oversight work at nuclear power plants and materials licensee facilities, while using information technology to minimize face-to-face interaction with licensee personnel, as appropriate.

As public health trends improved in 2021 and 2022, the NRC gradually resumed in-person operations with workplace safety measures and in accordance with local epidemiological conditions. Nevertheless, new COVID-19 variants continue to present workplace safety risk, as do other pathogens that could trigger another national or global health crisis. Natural disasters, such as hurricanes, floods, and wildfires, present ongoing operational risk to NRC licensees. Cyber-attacks and other threats from outside actors could severely disrupt the agencys capacity to execute its mission.

12

ONGOING ACTIONS COMPLETED ACTIONS NRC management will review the The COVID-19 working group agencys COVID-19 lessons learned completed its lessons learned assessment and implement endorsed assessment, recommending actions to recommendations while considering clarify agency policies and procedures internal and external stakeholder for remote and hybrid inspections, to input. improve inspectors access to licensee information, and to monitor licensee performance trends.

The NRC revised its pandemic plan to reflect lessons learned about mitigation measures, communications, and coordination across offices and regions.

13

Challenge 4: Advancing Readiness to License and Regulate New Technologies in Reactor Design, Fuels, and Plant Controls, and Maintaining the Integrity of the Associated Intellectual Property The Nuclear Energy Innovation Capabilities Act requires the NRC and the Department of Energy to share technical expertise and knowledge on WHY IS THIS A SERIOUS advanced reactor technologies, many of which are in the developmental pre-licensing phase.

MANAGEMENT AND The unique designs of these reactors present PERFORMANCE technical challenges for NRC staff when CHALLENGE? engaging with prospective licensees and require extensive stakeholder outreach as NRC staff members develop a technology-neutral regulatory framework for advanced reactors.

CHALLENGE SYNOPSIS Unfavorable electric power market conditions have slowed construction of new commercial nuclear power plants in the United States and led to plant closures in recent years. However, increased public and private sector concern over carbon emissions has supported development of new reactor designs, which could produce electricity at lower cost with greater scalability than current operating reactors.

Domestic utilities are developing technologies that can extend the operating lifetimes of existing reactors, and Congress has passed legislation designed to facilitate research, development, and licensing of new reactor technologies.

The technical complexity of these initiatives, combined with their experimental nature, has challenged the NRC to adapt its regulatory processes to accommodate technologies that cannot be readily assessed using existing approaches.

At the same time, the quality of information necessary for timely NRC review can challenge applicants new to nuclear licensing. As new reactor and fuel technologies are reviewed and licensed, it is critical that the NRC, as well as its federal partners, vendors, and license applicants, protect the proprietary information entrusted to them.

14

ONGOING ACTIONS COMPLETED ACTIONS NRC staff members are detailed to Staff issued guidance on fuel Department of Energy technical qualification methodology for non-program offices to facilitate light water reactors (NUREG-2246).

information sharing, and senior Staff published Reg Guide 1.247 for leaders from both agencies meet trial use for potential endorsement of quarterly to discuss topics of mutual the American Society of Mechanical interest. Engineers and American Nuclear Society standards for non-light water The NRC continues engaging external reactor probabilistic risk assessment.

stakeholders as it develops the proposed Part 53 rule for advanced Staff issued several final safety reactors, with a goal of issuing the final evaluations on topical reports rule by July 2025. submitted by three prospective advanced reactor licensees (TerraPower, Kairos, and X-energy).

15

Challenge 5: Ensuring the Effective Acquisition, Management, and Protection of Information Technology and Data Information technology continues to advance WHY IS THIS A SERIOUS rapidly. The challenge is supporting a future-MANAGEMENT AND ready workforce equipped with the modern PERFORMANCE tools, technologies, skills, and knowledge CHALLENGE? necessary to meet current and future mission needs.

CHALLENGE SYNOPSIS The NRC must continue to meet the regulatory and statutory federal mandates for Information Technology and Information Management (IT/IM). The responsibility of the NRCs IT/IM program is to maintain and enhance services and infrastructure to enable accomplishment of the agencys mission. The NRC must continue to use robust, proactive measures to protect its personnel, buildings, and data from internal and external threats. The NRC also faces evolving cyber threats and challenges to the security of data related to its oversight of operating and decommissioning facilities, use of nuclear materials, emergency preparedness, and incident response.

The NRC has increased investments to enhance its cybersecurity posture in the face of evolving threats and new federal mandates by automating compliance activities, developing an Information Security Architecture, and migrating Federal Information Security Modernization Act (FISMA) systems to a more streamlined environment. As the agency continues efforts to modernize IT, it also works to better manage acquisitions by using best practices, and to improve the customer experience.

Key IT and information management and security oversight challenges for the NRC include:

  • Managing more frequent patching in the face of increasing threats and vulnerabilities;
  • Managing risk-based security strategies to protect against increasing numbers, types, and sophistication of cyber threats;
  • Directing agencywide information resource planning to help the agency select and manage IT/IM and IT security resources to provide maximum value;
  • Executing the insider threat prevention and detection program to protect classified and safeguards information; and,
  • Executing actions required by the FISMA, to strengthen information technology security.

16

ONGOING ACTIONS COMPLETED ACTIONS The NRC is working to support The NRC completed an IT Strategic scientific analysis with modernized Roadmap, Data Strategy, and content computer codes and tools for artificial management analysis to support long-intelligence. term strategic planning.

The NRC continues to broaden use of The NRC has created multiple web-based portals to support licensing dashboards across the agency to help activities. better monitor performance and aid in program implementation.

The NRC is enabling new technologies in data analytics, such as dashboards and data warehousing.

17

Challenge 6: Implementing Strategic Workforce Planning During Transformation and Industry Change WHY IS THIS A SERIOUS Strategic workforce planning is critical to help MANAGEMENT AND the NRC maintain its focus on longer-term PERFORMANCE workforce development and accomplish CHALLENGE?

organizational goals during periods of agency transformation and industry change.

CHALLENGE SYNOPSIS The NRCs enhanced Strategic Workforce Planning (SWP) is a structured, data-driven process. The SWP process develops short- and long-term strategies and action plans that enable the NRC to recruit, retain, and develop a skilled and diverse workforce with the competencies and agility to address emerging needs and workload fluctuations. In addition, the NRC is transforming to realize its vision of becoming a modern, risk-informed regulator and be in the best position to continue meeting its important safety and security mission well into the future.

Transformation will help the NRC keep pace with the highly dynamic, interconnected environment in which the agency operates, and be prepared to regulate an industry that is innovative and has new technologies. The SWP process takes place annually to develop strategies for workforce needs in the budget 5 years into the future.

The NRCs proposed FY 2023 budget is $929.2 million, an increase of

$41.5 million over its enacted budget for FY 2022. This includes 2,879 FTE, a slight increase compared to the FY 2022 enacted budget.

The NRC faces the challenges of fulfilling the agencys mission while complying with mandates to limit corporate costs, and while attrition reduces staff. These challenges highlight the importance of effective future workforce planning.

The OCHCOs New Human Capital Dashboard illustrates the NRCs challenges in meeting hiring goals. The OIG audited the NRCs Strategic Workforce Planning process in FY 2022.

18

ONGOING ACTIONS COMPLETED ACTIONS The agency evaluates the Strategic The Commission approved staff Workforce Planning process every recommendations to support year, identifying areas for adjustment recruitment and retention of resident the following year. inspectors.

The agency has set aside resources for The NRC negotiated a new Collective entry-level hiring, and training and Bargaining Agreement with the travel for the program hires. National Treasury Employees Union The NRC is working to address that supports the use of telework as organizational health to support part of changing work models.

decision-making and performance.

19

Challenge 7: Overseeing Materials, Waste, and the National Materials Program This challenge involves sustained, high-level coordination between the NRC and 39 WHY IS THIS A SERIOUS Agreement States to ensure a consistent MANAGEMENT AND understanding and implementation of PERFORMANCE regulations associated with the oversight of CHALLENGE? radioactive materials, in addition to the NRCs ability to effectively oversee the continued increase in high-level radioactive waste.

CHALLENGE SYNOPSIS The NRC is responsible for maintaining an established regulatory framework for the safe and secure use of nuclear materials; medical, industrial, and academic applications; uranium recovery activities; and, high-level radioactive waste.

The NRCs regulatory framework includes Agreement States, which are U.S.

states that have entered into an agreement with the NRC to regulate certain radioactive materials and limited quantities of special nuclear material.

Agreement States must demonstrate that their regulatory programs are adequate to protect public health, safety, and the environment, and are compatible with the NRCs program. There are currently 39 Agreement States; however, Connecticut and Indiana have submitted letters of intent to also become Agreement States.

The broad collective effort of the NRC and Agreement States to carry out their respective regulatory programs for radioactive material is called the National Materials Program (NMP). The mission of the NMP is to have a partnership between the NRC and Agreement States that ensures protection of public health, safety, security, and the environment from the hazards associated with radioactive material.

In addition to the NMP, the NRC has sole responsibility for overseeing high-level radioactive waste (HLW), the highly radioactive byproduct of the reactions that occur inside nuclear reactors. Spent (used) reactor fuel is one form of HLW.

20

ONGOING ACTIONS COMPLETED ACTIONS The NRC is currently updating The NRC has completed 10 inspection Material Control & Accounting procedure revisions under Inspection (MC&A) inspector qualification Manual Chapter 2800.

program guidance to include a The procedures were prioritized to strategy to address emergent impact oversight of the greatest MC&A inspection program needs. number of materials licensees under The NRC is updating Inspection NRC or Agreement State jurisdiction.

Manual Chapter 2800, and four The NRC formally designated the additional inspection procedures, to WBL System as the official system to further risk-inform the materials manage all materials and waste inspection program and incorporate inspections under 10 C.F.R. Part 30, pandemic-related insights. as well as Part 40 and Part 70 The NRC has developed and inspections that are not tracked under implemented training for inspection the Reactor Program System.

staff on how to record inspection data The inspection module is also in the Web-Based Licensing System available to Agreement State users of (WBL). This training is also being WBL.

provided to Agreement State WBL users.

21

Challenge 8: Managing Financial and Acquisitions Operations to Enhance Transparency and Fiscal Prudence Sound financial management is vital for federal WHY IS THIS A SERIOUS agencies to accomplish their missions effectively MANAGEMENT AND and efficiently. A strong acquisition management PERFORMANCE process increases the likelihood that the agency CHALLENGE?

awards contracts to the right contractors and monitors contracting actions in accordance with regulations.

CHALLENGE SYNOPSIS The NEIMA requires the NRC to recover, to the maximum extent practicable, approximately 100 percent of its annual budget, less certain amounts excluded from this fee-recovery requirement. It also requires the NRC to establish a schedule of charges that fairly and equitably assesses the fees to licensees and permit holders. To improve efficiency and accuracy, the NRC is piloting new IT applications to improve its fee calculation process.

To maintain transparency, the NRC must continue to implement robust internal controls over financial management and reporting. Sound acquisition practices are also an important aspect of NRC operations. The agency has continued to promote sound acquisition award practices, improvements in the management of contracts, and timely closeout of contracting actions. In addition, the agency must continue to administer its grants program in accordance with the prescribed federal regulations.

Key financial and acquisition challenges include the following:

  • Developing and implementing the agencys budget in accordance with federal laws, regulations, and guidance;
  • Maintaining a fee structure in accordance with laws and regulations that is fair to all types of entities regulated by the agency;
  • Improving controls over license fee billing; and,
  • Exploring ways to improve the award, management, and timely closeout of acquisition actions.

22

ONGOING ACTIONS COMPLETED ACTIONS The NRC is applying the agencys Be The NRC implemented the eBilling riskSMART initiative, generalizing application, which provides up-to-existing risk-informed decision- date invoice information, and making concepts to make them more improved access for small entities.

broadly applicable to any decision The NRC completed all corrective made at the NRC, including actions related to previous OIG audits management processes. affecting the agencys grants program.

The NRC continues to address The NRC has addressed recommendations made by the OIG in recommendations made by the OIGs the audit of the NRCs property independent auditors in conjunction management program. with the unmodified opinion on the FY 2021 financial statements.

23

Challenge 9: Reinforcing the NRCs Readiness to Address Cyber and Physical Security Threats to Critical National Infrastructure Sectors Impacting the NRCs Public Health and Safety Mission and/or NRC Licensees Cyber and physical security threats present a persistent challenge to the safe and reliable operation of the nations electric power generation and distribution system. As the WHY IS THIS A SERIOUS primary regulator of the nations commercial MANAGEMENT AND nuclear power fleet, the NRC must maintain PERFORMANCE robust and adaptive oversight programs to ensure CHALLENGE? nuclear power licensees can protect their facilities effectively against evolving threats and a broad spectrum of potential adversaries, including competitor nation states, organized criminal groups, and domestic terrorists.

CHALLENGE SYNOPSIS Federal government policy organizes critical infrastructure into 16 sectors with assets, systems, and networks considered vital to the security, economy, and public health and safety of the United States. The Department of Homeland Securitys Cybersecurity and Infrastructure Security Agency serves as the Sector Risk Management Agency for the Nuclear Reactors, Materials, and Waste Sector. The NRC regulates these activities in accordance with its statutory mission to ensure adequate protection of public health and safety, promote the common defense and security, and protect the environment.

Cybersecurity presents unique challenges to critical infrastructure protection because information technology and industrial control systems are highly complex and dynamic, technologically diverse, and often geographically dispersed. This complexity increases the difficulty in identifying, managing, and protecting the numerous operating systems, applications, and devices involved.

24

ONGOING ACTIONS COMPLETED ACTIONS The NRC continues efforts to increase In September 2021, the NRC issued a the realism of Force-on-Force baseline inspection procedure for exercises conducted at nuclear power biennial oversight of nuclear power plants and Category I fuel cycle licensee cybersecurity programs that facilities. started in January 2022.

The NRC continues to monitor threats The NRC began implementing the new directed toward NRC-licensed nuclear power cybersecurity facilities to communicate inspection procedure biennially and time-sensitive information and to incorporated these inspections into assess the need for changes to the the Reactor Oversight Process.

design-basis threat as applicable.

25

Challenge 10: Maintaining Public Outreach to Continue Strengthening the Agencys Regulatory Process Since the public has a strong interest in effective WHY IS THIS A SERIOUS nuclear regulation, it is the NRCs policy to provide the public with opportunities for meaningful MANAGEMENT AND participation in NRC processes.

PERFORMANCE The pace of regulatory work increases the need for CHALLENGE? outreach activities, and new technologies open possibilities to enhance outreach efforts.

CHALLENGE SYNOPSIS The NRC has a long history of, and commitment to, public participation and collaboration in agency regulatory activities. The NRC has had a formal policy regarding open meetings since 1978. In March 2021, the Commission published its most recent update to the policy statement, Enhancing Public Participation in NRC Meetings. It reiterated the NRC policy to open meetings between the agency staff and one or more outside persons to observation and participation to the extent possible, and to balance openness and transparency with the need to exercise regulatory and safety responsibilities without undue administrative burden. Public meetings and opportunities for comment may occur as part of numerous NRC activities, ranging from rulemaking and guidance development to some licensing processes, certain oversight activities and performance assessments, and symposia regarding regulatory research.

In the recent policy statement update, the Commission committed the NRC to making efforts to find new and innovative ways to interact with individuals, including exploring varied meeting formats and other ways to incorporate technologies that allow participation from locations other than a meeting room.

Experiences with new methods will be shared across the agency for information and consideration by other NRC staff.

The NRC Strategic Plan for Fiscal Years 20222026 emphasizes the public participation policy through the goal of inspiring stakeholder confidence in the NRC. One objective in this goal is to communicate in clear and accessible ways with diverse stakeholders.

26

ONGOING ACTIONS COMPLETED ACTIONS Following a Commission Order of The NRC extended the schedule for the February 2022, NRC staff are revising rulemaking for licensing and the Generic Environmental Impact regulation of advanced reactors in Statement for renewal of operating 10 C.F.R. Part 53 to enhance reactor licenses to address subsequent engagement and respond to input.

license renewal. The revision process will include opportunity for public The Commission conducted public comment. meetings in New Mexico to receive an The NRC has engaged with a spectrum overview of the 10-year plan to address of stakeholders to obtain input to impacts of uranium contamination on inform the development of the NRC's the Navajo Nation and to hear directly Draft Artificial Intelligence Strategic from stakeholders about Plan for Fiscal Years 20232027. contamination impacts and remediation efforts.

27

TO REPORT FRAUD, WASTE, OR ABUSE Please

Contact:

Online: Online Form Telephone: 1-800-233-3497 TTY/TDD: 7-1-1, or 1-800-201-7165 Address: U.S. Nuclear Regulatory Commission Office of the Inspector General Hotline Program Mail Stop O5-E13 11555 Rockville Pike Rockville, MD 20852 COMMENTS AND SUGGESTIONS If you wish to provide comments on this report, please email the OIG using this link.

In addition, if you have suggestions for future OIG audits, please provide them using this link.

28

Retrieved from "https://kanterella.com/w/index.php?title=ML22301A182&oldid=3518223"