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M240222A: Transcript - Update on Research and Test Reactors Regulatory Program
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1

UNITED STATES

NUCLEAR REGULATORY COMMISSION

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MEETING: UPDATE ON RESEARCH AND TEST REACTORS

REGULATORY PROGRAM

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THURSDAY,

FEBRUARY 22, 2024

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The Commission met in the Commissioners' Hearing Room,

at 9:02 a.m. EST, Christopher T. Hanson, Chair, presiding.

COMMISSION MEMBERS:

CHRISTOPHER T. HANSON, Chair

DAVID A. WRIGHT, Commissioner

ANNIE CAPUTO, Commissioner

BRADLEY R. CALDWELL, Commissioner

ALSO PRESENT:

CARRIE M. SAFFORD, Secretary of the Commission

BROOKE P. CLARK, General Counsel

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EXTERNAL PANELISTS:

AMBER JOHNSON, Secretary, National Organization of Test, Resear ch

and Training Reactors and Director, Nuclear Reactor

and Radiation Facilities, University of Maryland

RUSTY TOWELL, Director, Nuclear Energy eXperimental Testing (NE XT) Lab

Abilene Christian University

CALEB BROOKS, Director, Illinois Microreactor RD&D (IMRD2) Cent er

University of Illinois at Urbana-Champaign

ANDREW BOULANGER, University Fuel Services Program Manager,

Department of Energy (DOE)

JOANIE DIX, Deputy Director, Office of Conversion

National Nuclear Security Administration (NNSA)

NRC STAFF:

SCOTT MORRIS, Deputy Executive Director for Reactor and Prepare dness

Programs

ROB TAYLOR, Deputy Director for New Reactors and Advanced React ors

JOSH BORROMEO, Branch Chief

REBECCA OBER, Security Specialist (RTR)

HOLLY CRUZ, Senior Project Manager

AMY BEASTEN, RTR Examiner CONTENTS 3

PROCEEDINGS

(9:02 a.m.)

CHAIR HANSON: Good morning, everyone. I convene the

Commission's public meeting on the NRC's Research and Test Reac tor

Regulatory Program, including medical isotope facilities and their interface with

advanced reactors.

We sometimes refer to facilities under this program as non-

power production or utilization facilities, or, colloquially, N PPUFs. Ensuring a

robust NPPUF program is important to our nation on many levels, including

development of future nuclear workforce, supporting neutron research, medical

isotope production, as well as acquiring data to support new re actor and other

technologies.

I look forward to engaging in a fruitful dialogue and receiving

feedback on our regulatory program this morning.

We have two panels today, and we will hear from our external

panel first. Following that, we 'll have a short break, and then we'll hear from the

NRC staff.

Before we start, I'll ask my colleagues if they have any

remarks they'd like to make.

Okay. So with that, we'll begin with our external panel. We'l l

proceed in the order you all are listed on the public notice of the meeting. We

will begin with Ms. Amber Johnson, who is Secretary of the Nati onal

Organization of Test, Research, and Training Reactors, and the Director of

Nuclear Reactor and Radiation Facilities at the University of M aryland.

Ms. Johnson, the floor is yours.

MS. JOHNSON: Perfect. Okay. Cool. Good morning, Chair,

Commissioners, my fellow panelists, and all that are participating either virtually 4

on in person. On behalf of the National Organization of Test R esearch and

Training Reactors, I would like to thank you for this opportuni ty to provide an

overview of the existing facilities, including our regulatory a nd operational

experiences.

Next slide, please.

The National Organization of Test Research and Training

Reactors, or TRTR, represents the shared interests of research reactors

operated by the government, national labs, universities, and in dustry. TRTR

membership includes directors, managers, and operators at research reactors,

along with educators, administrators, regulators, research scie ntists, and

engineers.

TRTR's primary mission is to coordinate the sharing of

operating experiences related to the use of research reactors f or education,

training, and research.

Next slide, please.

As a member of TRTR, you gain access to a shared

knowledge base of best practices and expert advice. We have a quarterly

newsletter that is sent to our email Listserv and published on our website that

tracks inspection reports, along with any violations or finding s, reportable

occurrences, and follow-up corrective actions, and also relevan t

communications from agencies with scientific and technical expe rtise in the

nuclear field.

So member facilities may request an audit or peer review of

their operations by contacting our Executive Committee, who wil l convene a

group of experts to identify and propose program improvements. Our members

also work hard to develop and refine ANSI ANS Series 15 standar ds that cover

topics like the selection and training of personnel and the format and content for 5

safety analysis reports.

But perhaps our most important forum for the exchange of

information is our annual meeting. Each year TRTR members gath er near a

host facility to share our skills, procedures, and experiences in operating our

non-power reactors.

Next slide, please.

So research reactors provide excellent educational and

training opportunities for staff, students, and researchers, as well as radiation

protection and regulatory personnel. These reactors offer well -understood

environments for experiments designed to study the behavior of materials

through the interaction of neutrons and other forms of ionizing radiation.

In addition to enabling critical research in many disciplines,

research reactors are crucial for workforce development through reactor

operations, engaging the public on the peaceful uses of nuclear power, and the

development of advanced reactor technologies.

With 30 research and test reactors currently licensed by the

NRC, we make up about 25 percent of active NRC licenses. Certa inly, this is a

number we would like to see increase. We also hold approximate ly 350

operator licenses, almost 10 percent of current licensees. And a large portion

of these operator licenses are held by undergraduate students. These students

gain valuable experience with nuc lear safety culture and working in a regulated

environment, making them well-equipped to join the nuclear work force of the

future.

Next slide, please.

So TRTR appreciates the support of the NRC staff from the

Division of Advanced Reactors and Non Power Production and Util ization

Facilities to advance our shared goals of applying the minimum amount of 6

regulation necessary to provide adequate protection, public hea lth and safety,

to promote a common defense and security, and to protect the en vironment

from the Atomic Energy Act, as amended.

So I would like to highlight a recent collaboration that

produced guidelines for 10 CFR 50.59 implementation at non-power production

or utilization facilities and led to endorsement in a regulator y guide.

Building upon the success of this document, the working

group has drafted expanded guidelines to include digital I&C, w hich is currently

under review. Prior to this, the only guidance that existed wa s for powerplants

and not at all applicable to research and test reactors.

We also maintain an open line of communication through the

use of quarterly calls that track the progress of NUREGs, rulem akings, and

other items of shared interest. And for issues of particular s ignificance,

additional public meetings with a specific focus on research reactors have been

requested and were conducted.

I would also like to acknowledge the use of Phase 0 meetings

to ensure INPO staff and licensees have a clear understanding o f the licensing

request prior to submission of any documents. And, finally, I would like to

emphasize the importance of NRC Day at our annual meeting. Thi s is an

opportunity for TRTR members to engage with our project manager s and

inspectors in a collegial environment, and we hope to see every one at our

meeting next fall.

Next slide, please.

So a rulemaking that is of considerable interest to TRTR

members is the non-power production or utilization facility lic ense renewal, or

NPPUF rule. This rulemaking has been with the Commission for a lmost five

years, and we would like to understand what additional question s or concerns 7

prevent its approval.

The NPPUF rule would create a more efficient and responsive

renewal licensing process by rem oving the 20-year license renew al terms and

requiring that facilities submit an updated safety analysis rep ort every five

years. Finally, this rulemaking would establish an accident do se criterion that

takes into consideration the low-risk profile of research react ors rather than an

arbitrator 10 megawatt thermal power threshold.

The items in this rulemaking consider that research and test

reactors present a limited risk to the public and environment t hrough our

relatively simple but robust designs, low nuclear material inve ntory, small

physical size, and low power levels.

Next slide, please.

I look forward to today's discussion. Thank you.

CHAIR HANSON: Thank you, Ms. Johnson.

Next we'll hear from Mr. Rusty Towell. He is Director, Nuclear

Engineering eXperimental Testing Lab, the NEXT Lab, at Abilene Christian

University.

Dr. Towell.

DR. TOWELL: Good morning, Commissioners. I appreciate

the opportunity to be with you and to talk to you about the rol e of research and

test reactors in development of advanced reactor technologies.

Next slide, please.

NEXT Lab at Abilene Christian University stands for Nuclear

Energy eXperimental Testing. It's a lab whose mission is to pr ovide global

solutions to the world's needs for energy, water, and medical i sotopes by

advancing technology of molten salt reactors while educating fu ture leaders in

nuclear science and engineering.

8

What's shown on this picture is summer workforce from this

past summer at ACU. It was about 80 people -- undergraduates, faculty, staff --

working together. However -- next slide -- we're not doing thi s alone. We're

working as part of a research alliance.

So Abilene Christian University, along with the University of

Texas, Texas A&M, and Georgia Institute of Technology, are all brought

together by Natura Resources to essentially be the research and development

arm of that company to develop the molten salt reactors.

So, in 2022, we submitted our construction permit for the

molten salt research reactor, and we have a goal of making it o perational by

2026.

Next slide, please.

The molten salt research reactor is -- has safety built into it b y

its technology. There's many layers, starting with the salt, w hich will retain the

fuel and most of the fission fragments. Then that's surrounded by a primary

fueled salt loop pressure boundary, and then there is -- outside of that there is a

reactor thermal management system with a catch pan, so if there is any -- if it

ever leaked that would catch the leak of salt.

And outside that there is a reactor enclosure, another

pressure boundary, and following that is the reactor cell, whic h is a concrete

containment for biological shielding. Of course the whole syst em is low

pressure. It shuts down via a drain from the core, and passive heat removal

during shutdown, so it's inherently safe in its construction.

Next slide, please.

The molten salt research reactor is very, very similar to the

molten salt reactor experiment that was built at Oak Ridge in t he '70s. Shared

concepts include the same salt, the same fuel, graphite-moderat ed, loop 9

design, trench-based radiation protection, short lifetime, and low pressure.

We have simplified it in several areas to make it even easier

to license. We have dropped from high enriched uranium to belo w 20 percent.

We dropped the power down to 1 megawatt thermal, used nuclear qualified 316

as the primary construction material, removed the free valve, j ust using

pneumatic pressure to keep the salt and the fuel in the core, a nd we have --

therefore, the control rods aren't safety-related and there is no water in the

system. So all this together simplifies the reactor.

Next slide, please.

The plan is to install the molten salt research reactor in a

facility that was just constructed at ACU. It's the Science an d Engineering

Research Center. It's a 28,000-square-foot facility that has a research bay.

The 6,000-square-foot research bay has a major feature a trench that's 80 feet

long and 20 feet deep that's a primary spot for deploying advan ced reactors.

So this facility is truly the nation's first advanced reactor t est

bed site, and we are very excited to have it open on the ACU ca mpus.

Next slide, please.

So I gave you that background so that when I'm talking about

research and test reactors you know I'm kind of biased to the o ne that I'm

helping lead. But I think what I have to say is applicable to all research and test

reactors in how they help prepare for advanced reactors.

The first thing I would say is that you really can decrease the

risk for advanced reactor deployment if we start with smaller, safer research

and test reactors. And several ways we can decrease the risk, there is of

course the risk to -- of a regulatory risk. Can we get a licen se for a reactor?

And that's a risk that is maybe not as big a concern for this

room, but it's a concern for people to want to fund the technol ogy. So investors 10

and financers are very concerned on whether or not we can -- we can license it.

So demonstrating that we can license a research and test react or will give

them confidence that the NRC can license a non-light-water reac tor.

And then when we think about licensing a commercial reactor,

where the source term will be higher, we need to have better da ta. And so to

move beyond the sort of minimal requirement required for a rese arch reactor

means we need to collect better data on materials and fuel and the way the

reactor operates.

Ms. Johnson mentioned the current research reactors are

well-defined environments, and that's true. The current resear c h reac tors are

very, very well understood. The research reactor we're buildin g is not so well

understood, but that's the point of building it, so we can unde rstand it, collect

the data, and use that data to help deploy advanced reactors. And that's

precisely the reason why Natura Resources is sponsoring the work, so that they

can collect the data and move on to commercial deployment.

The second area of risk is risk to the supply chain. Obviously,

if we build something, it tests the supply chain out. Can we g et the materials,

the raw materials? Can we get the components? Are vendors wil ling to design

new components? And if you demonstrate that there's a need for it, that's

helpful.

And then a third risk I would mention is a risk of, do we have a

qualified nuclear workforce? And also, as mentioned in the previous talk, these

reactors, these research and training reactors, do just that. They train the

future generation of reactor workers. So whether we're talking about qualified

nuclear workforce for being regulators or reactor designers or operators, we

need more sites where we can train advanced reactor operators.

And so we're -- that's another purpose for -- of building 11

starting with research and test reactors before moving straight to commercial

reactors.

And the final thing I would say is that by actually building

some of these advanced reactors, we will be able to see that nu clear reactors

can do more than just produce electricity. I think in the past we have used --

commercial reactors have primarily been used only to produce el ectricity, but

new higher temperature reactors, like our molten salt research reactor, will be

able to produce high temperature process heat that will allow u s to serve the

needs of many different industry partners that need that high p rocess -- high

temperature process heat.

We will also be able to produce medical isotopes and

isotopes for nuclear batteries and other purposes, and so we'll be able to show

and demonstrate the multi-functional purpose of advanced reacto r.

And so because of these -- because of all -- because we can

achieve all of this with a smaller source term, then that means we are -- it's a --

there is less risk involved through the whole process to start with a research

and test reactor.

Next slide, please.

I'll show this slide from Idaho National Lab. It shows the

deployment of advanced reactors. I modified it by adding the A CU SERC on

the very bottom left. That's the first of the test beds, follo wed by Dome and

Lotus at Idaho. But what I'll see on this is that many -- many, if not all, reactor

developers have come back off of their desire to first deploy a commercial

reactor and have come with a smaller reactor.

So TerraPower is coming in with MCRE to gain the data and

experience. Kairos is developing Hermes. Natura has always st arted with a

desire to build a research and test reactor. So you see the mo lten salt research 12

reactor on this deployment path.

So I think that research and test reactors have a huge role to

play in developing advanced reactors.

Next slide?

I thank you for your time, and I look forward to discussion.

CHAIR HANSON: Thank you very much, Mr. Towell.

Next we will hear from Mr. Caleb Brooks. He is the Director of

the Illinois Microreactor RD&D Center at the University of Illi nois at Urbana-

Champaign.

Mr. Brooks?

MR. BROOKS: Thank you, Chair Hanson, and the

Commission, for the opportunity to join you today. At the Univ ersity of Illinois,

we believe that advanced reactors need advanced research reactors to lead the

way towards expanding safe, peaceful uses of nuclear power.

Our project is a partnership with Ultra Safe Nuclear

Corporation, USNC, to deploy a commercializable advanced reacto r on our

campus as an advanced research reactor. This MMR technology is a p r i s m a t i c,

gas-cooled reactor, TRISO fuel, is encapsulated into annular pe llets of silicon

carbide to provide superior performance and fission product ret ention.

The reactor will sit below grade as shown in the rendering,

adjacent to the existing campus power plant. Heat generation f rom the reactor

is transferred to a closed molten salt thermal storage system. From this

integrated thermal source system, energy can be dispatched in t he form of

steam through a steam generator. This thermal storage system e ffectively

decouples the reactor operations from the process heat side.

In our case, steam from the molten salt steam generator will

feed the main steam header of our existing campus power plant d emonstrating 13

the ability to integrate advanced reactor systems with existing fossil fuel

infrastructure. The campus power plant feeds the university-ow ned and

operated utility system, which demands roughly 60 megawatts of steam and 55

megawatts of electricity.

Our mission -- next slide, please.

Our mission is to de-risk advanced reactor technology

through education, research, and at-scale demonstration. New a dvanced

nuclear can enable a paradigm shift in all aspects of nuclear, how we build it,

how we operate it, how we regulate it, and utilize it. But it will require

deployment in a setting that can bring all stakeholders togethe r.

Next slide, please.

We have two core missions and a cross-cutting mission. Our

first core mission is educati on, training, and public engagement. New research

reactors are needed to train the advanced reactor workforce, bu t also, maybe

more importantly, new -- a new nuclear workforce will be requir ed at the

interface of new nuclear and new end use applications.

Furthermore, I believe that university reactors are

underappreciated for their role in public engagement. For nucl ear power, all

roads go through public engagement. This project has and will continue to

work towards redeeming public perception of nuclear power.

Our second core mission is research and development. Here

we are focused on the research needs that will enable a paradig m shift in

advanced nuclear deployment, including technology optimization, improved

modeling and simulation, new approaches to operation, including

instrumentation and controls that can address the operation and maintenance

challenges of the current nuclear fleet.

Our focus here is largely in the critical enabling technologies 14

around the reactor that can maximize safe economic deployment o f advanced

nuclear power.

Lastly, our cross-cutting mission of at scale demonstration is

really under the umbrella of education and research. This focu s is to perform

the necessary role of demonstrating the capability of advanced nuclear power

to address new markets that require clean energy, including mic ro-grids,

hydrogen generation, decarbonizing existing fossil fuel infrast ructure. Bottom

line is the world needs decarbonization without disruption.

And for many heavy energy users this can only be done with

nuclear. Moving nuclear power beyond just putting electrons on the centralized

grid will require education, research, and at-scale demonstrati on.

Next scale -- next slide, please.

These mission areas were inspired by the definition of

research in the Atomic Energy Act, which provide the guiding al lowable

activities for a 104(c) license. The mission areas, as describ ed, align with four

of the five definitions of research in Section 31.

I highlight Item 4, which includes the "demonstration of

advances in the commercial or industrial application of atomic energy," which is

the foundation of our cross-cutting mission for at scale demons tration and was

outlined in a white paper submitted to the NRC staff.

Next slide, please.

Lastly, here I summarize our pre application engagement to

date with NRC. Our safety methodology report has been delayed, but that is

the last of the plan documents to put in front of NRC for revie w. We have had

some delays, mostly due to design changes on our side.

Overall, our engagement with NRC has been very positive.

We found it to be very appropriate in the level of communicatio n. Requests for 15

additional information have been r easonable and very clearly stated. Flexibility

in scheduling and availability of the staff for public meetings has been

exceptional.

We have seen some turnover in our engagement from the

NRC staff, and in those cases it was very well executed.

Overall, I look forward to continuing interaction with NRC on

this project and hopefully submission of the construction permi t application this

year.

Thank you very much.

CHAIR HANSON: Thank you, Mr. Brooks, very much for your

presentation.

And next we'll hear from Mr. Andrew Boulanger. He is

University Fuel Services Program Manager at the Department of Energy.

Mr. Boulanger?

MR. BOULANGER: Good morning, and thank you for the

opportunity to provide an overview of the DOE's -- or Department of Energy's

University Fuel Services Program. My name is Andrew Boulanger. I am the

University Fuel Services Program Manager under the DOE's Office of Nuclear

Energy, and I'll be providing an overview of university fuel se rvices, or UFS,

followed by the operations and impact the program has had acros s the U.S.

I'll be providing an overview of the role university fuel services

has -- and by touching on a few topics, such as the connection to isotope

production, advanced reactor fuel services, security postures, possession-

limited challenges, all of which are relevant to this program.

Next slide, please.

From a high level, the University Fuel Services Program

provides the U.S. government -- U.S. government-owned fuel to 2 5 NRC-16

licensed university-based research and test reactors at low or no cost to the

university. Typically, spent nuclear fuel is returned to the U.S. government for

disposition through the program, and some of the fuels -- fuel services may also

include transfers between universities as needed. For example, this past year

Penn State University transferred fuel to U.C. Davis where it c ould be used

more readily for their research.

University fuel services indirectly supports some domestic

isotope production. For example, University of Missouri at Col umbia produces

medical isotopes, which can -- which depends on fuel procured t hrough the

program. And UFS is aware that other universities have express ed interest in

radioisotope production, which has usually been in the research level

quantities.

So for some clarity I'd like to highlight the activities that a re

beyond the scope of the University Fuel Services Program. List ed here under

the last bullet, the program does not currently develop new fue l types for NRC

review and approval for advanced reactors. The program also does not provide

reactor operating equipment, such as consoles. That kind of upgrade is usually

performed through -- either privately through the university or through other

competitive funding opportunity grants.

UFS does not provide enriched uranium directly to

universities. That is performed through other mechanisms outsi de of this

program. And, finally, we do not provide universities with com ponents related

to fuel fabrication or assembly. For example, UFS would not pr ovide casking

equipment for making their own dispo fuel.

And so to summarize at a high level, the University Fuel

Services Program is primarily a procurement program of commercially available

research reactor fuel, and UFS disposes of the fuel after unive rsities are done 17

with it.

Next slide, please.

Currently, the university fuel services are contracted through

the Idaho National Lab, or INL. This arrangement for fuel serv ice has been

implemented through INL since 1977 under different names over t he decades.

A recent name change occurred on the program, was in 2022, to help clarify the

role of the program at a glance. The previous name was called the Research

Reactor Infrastructure Program. Functionally, the purpose has not changed,

which is to provide fuel to existing university research reacto rs across the U.S.

INL has subcontracts with all 24 universities to supply the

fresh fuel and dispose of the used or spent fuel. Half the fle et, or 12 of the

reactors, use TRIGA, or Training, Research, Isotopes, General A tomics fuel.

The next largest portion are eight reactors which use a plate-t ype fuel, and the

five remaining reactors are a mixture of different types of rea ctors and fuel

types.

Next slide, please.

The program recently delivered 30 newly manufactured

TRIGA elements to Penn State University in September 2023. Thi s marks the

first delivery of fresh TRIGA fuel in about a decade. Since 20 13, the DOE has

been supporting the restart of the TRIGA manufacturing line. We anticipate fuel

production to continue over the next decade, which should provi de enough fuel

for the 12 university research reactors until their respective decommissionings.

The intention is to store the newly manufactured TRIGA fuel

at INL to avoid encroaching on nuclear -- on existing nuclear m aterial

possession limits at each prospective university. UFS works with universities to

stay within these possession limits, and, by extension, their r espective

safeguard categories by moving fuel to other universities or di sposition 18

locations.

Although these movements are within the operating scope of

the program, it will become more challenging as fresh fuel deli veries increase

over the coming decades. The restart of the TRIGA fabrication line means

several hundred more TRIGA fuel elements will be -- that are in tended to be

produced that will eventually be distributed to universities.

The increasing fuel or nuclear material quantities across

universities will decrease fuel movement flexibility and may co nflict with

university specific security postures based on the quantity of specific materials

onsite. This scenario will need to be addressed as we move for ward to

continue to support university research reactors while maintain ing compliance

with the appropriate regulations.

So next slide.

Advanced research reactors at universities have a significant

potential to be -- for it to be good opportunities for several items, including

workforce development, teaching tools, the potential production of isotopes,

and research opportunities, both federal and private.

Recent changes in congressional authorization show promise

in supporting advanced research reactors. Specifically, the CH IPS Act of 2022

authorized the establishment of no more than four research reac tors. And,

more recently, the National Defense Authorization Act of 2023 a mended the

Energy Policy Act of 2005, which clarifies that fuel services s hall be expanded

to research reactors.

In order for UFS to provide new fuel types for new research

reactors, the reactor must be licensed. The DOE would need to receive

adequate appropriations. A fuel supplier must be authorized an d/or licensed to

provide the fuel. And, finally, there must be a plan for dispo sition of the spent 19

fuel. Despite these challenges, DOE is excited and looking for ward to working

towards the benefits of advanced research reactors that will br ing to the

research communities.

And with that, I conclude my presentation. Thank you very

much.

CHAIR HANSON: Thank you, Mr. Brooks.

We will conclude this first panel with Ms. Joanie Dix. She is

the Deputy Director for the Office of Conversion at the Nationa l Nuclear

Security Administration.

Ms. Dix.

MS. DIX: Good morning, Chair. Good morning,

Commissioners. Thank you very much for having me here today on this panel.

I am going to go ahead and talk a little bit about both resear ch reactors as well

as medical isotope production from our side of the house.

So next slide, please.

As a quick overview of what our office works on, we do fall

within the Office of Defense Nuclear Nonproliferation. So we a re a

nonproliferation-focused office. However, there is a lot of in tersection between

the work that we do and the NRC.

My office's objective is to modify or convert facilities to

eliminate the need for or production of weapons-usable nuclear material in

civilian applications while maintaining critical mission perfor mance of those

facilities. We do that in a number of ways. Those are listed here on the left of

the slide.

But for my presentation here today I'm really only going to

focus on the conversion of research reactor fuel from highly-en riched uranium

to high-assay low-enriched uranium, or HALEU, the qualification and fabrication 20

of new high-density HALEU fuels, and the production of non-HEU-based Moly

99.

Next slide, please.

So to start with, I wanted to talk a little bit about our effor ts on

Molybdenum-99 or Moly 99. This is a critical medical isotope t hat is used in

over 40,000 procedures each day here in the United States and e ven more

globally. Historically, the U.S. has always imported its Moly-99 from

international producers, which was traditionally made using hig hly-enriched

uranium.

This is why my office got involved in the matter was to help

assist these global producers to transition from using highly-e nriched uranium

targets to HALEU targets. We have made significant progress an d had a great

achievement. Just last year all major global Moly-99 producers now only use

HALEU targets, which is a great success.

With this, there was a joint secretarial certification between

the Secretary of Energy and the Secretary of Health and Human S ervices that

certified there was a sufficient global supply of Moly-99 that is produced without

the use of highly-enriched uranium to meet patient needs here i n the United

States. And what this certification supported the U.S. government and the NRC

in doing is that we no longer can export HEU for the use of med ical isotope

production.

So for my office, that's a big deal, and maintaining that supply

while being able to do this is kind of an amazing achievement.

Simultaneously with our international efforts we also have

domestic efforts here in the United States to help support the establishment of

commercial production of Moly-99 without the use of HEU. We ha ve provided

financial and technical support to a variety of U.S. companies over the years, 21

and these industry partners have made significant progress in e stablishing

production infrastructure.

However, recently they have experienced severe challenges

with both financing and commercialization. These issues reflec t a combination

of both project-specific issues by individual companies but als o market-wide

challenges. NNSA is continuing to support our remaining cooper ative

agreement partner while also working with other U.S. government agencies to

assess whether policy changes are needed to make domestic produ ction of

Moly-99 more commercially sustainable.

Next slide, please.

Changing over to the reactor conversion side, similar to the

international work that we do on Molybdenum-99, we are really focused here on

converting the research reactor fuel from highly enriched urani um to HALEU.

We do this both domestically and internationally. And to date we have -- 109

facilities no longer use HEU fuel or targets.

On the international reactor conversion front, we are engaging

with a number of international partners. This includes Belgium, France,

Germany, Italy, Japan, and Kazakhstan. And as these conversion s continue,

the use and exports of HALEU fuel are expected to steadily incr ease. So we

greatly appreciate the NRC's role in these exports of HALEU to make sure that

these international research reactors and medical isotope produ cers can

continue their missions and continue to provide the medical iso topes that we

need here.

On the domestic front, NNSA is working towards converting

the six high performance research reactors from HEU to HALEU fu el. The first

three conversions will be those that are regulated by the NRC, which include

the Massachusetts Institute of Technology, the University of Mi ssouri research 22

reactor, and the National Bureau of Standards reactor at the Na tional Institute

of Standards and Technology Center.

All of these what we call U.S. HPRRs, the high performance

research reactors, are a challenge for my office as no existing fuel can be used

to convert these reactors while maintaining their mission space. So our office

has been working over the years to develop, fabricate, and qualify a new fuel so

that these reactors can convert to a HALEU fuel while maintaining their mission

performance.

So we have begun and will continue to carry out a

comprehensive set of irradiations over the next four years for the new uranium

Molybdenum monolithic fuel, otherwise known as U-10Moly, to dem onstrate its

performance and safety and to, therefore, allow the subsequent conversion of

these reactors.

NNSA and the NRC have signed an MOU to help facilitate

qualification of this new fuel, and the subsequent review and hopefully approval

of the license applications to convert these three reactors. W e are hoping to

provide this U-10Moly qualification report to the NRC in 2028, which will follow

in 2030, hopefully, by the MIT reactor as the first reactor to submit a license

amendment request.

So thank you very much, and I look forward to your questions.

CHAIR HANSON: Thank you very much, Ms. Dix. And thank

you all for your presentations this morning.

We'll begin questions with Commissioner Caputo.

COMMISSIONER CAPUTO: Good morning. Thank you all

for being here. It's a very interesting and engaging topic, re search reactors. It

has been quite a while since I sat at the panel one, so it's in teresting to see the

developments that are going on now and the technologies that yo u folks are 23

pursuing. So very exciting development here as you all push fo r the

advancement of nuclear technology understanding.

So given the advancements that are going on, non-power

utilization facilities are definitely receiving more attention now than they have for

a while, and of course this agency issued a construction permit for Hermes.

We have the application undergoing review for Abilene Christian and ongoing

work with Illinois.

So we're also seeing a number of papers and some policy

issues that are coming up involving NPPUFs and advanced reactor s. One of

the recent ones we've gotten is a paper on micro reactor licens ing with an

option for micro reactors to be developed under a manufacturing license using

Part 50 construction permits and operational licenses.

We also have Part 53 where staff is proposing the same sorts

of reactors should only be allowed to be licensed at their ulti mate sites using

combined licenses, and then restrictions in Part 52 against usi ng combined

licenses for non-power utilization facilities.

So I'm struggling a little bit. I recognize that this is perhaps at

the periphery of this meeting, but I'm struggling a little bit with just the nature of

how I think in pursuing multiple different efforts we now have a slight

inconsistency in terms of our policy and approach.

So this is something that I definitely think the staff should

conduct a holistic review of the -- of advanced reactor project s to make sure

that our policies in this area are aligned going forward.

On a separate issue, this is also pending before the

Commission, has to do with the use of PRA in construction permi ts. And while

that is also at the periphery of the substance of this meeting, I do want to raise

a question considering we have an applicant at the table who is pursuing a 24

construction permit.

I'm a strong proponent of using risk information design in

licensing, but I'm sort of struggling with how appropriate it i s to delve into

requiring a PRA in construction permit space.

So, Dr. Towell, as a Part 50 applicant undergoing that

process now, how would you envision such a requirement impactin g the nature

of how you pursue your permit and any complications you might f oresee?

DR. TOWELL: Thank you for the question. I think that we

believe that research reactors, and specifically our molten salt research reactor,

is -- has a safe enough profile that it's licensable in many wa y s. B u t I t h i n k t h a t

the requirement to do a PRA for it is something that we don't f eel necessary.

It's currently -- we're currently not pursuing that, and so we' re content to file

through the Part 50.

I guess I wouldn't speak for others and think of -- and try to

decide if that would be helpful to them.

COMMISSIONER CAPUTO: So how -- given the nature of

pursuing a construction permit, how simple would it be for you to develop a

PRA? And what benefits would it really have given the fairly s imple technology

that you're pursuing and the ability to simply pursue it from a deterministic

standpoint?

DR. TOWELL: We see no benefit in doing that -- the PRA

forward. And so we haven't pursued that, and I think that woul d just be -- it

would be another burden on us I think sort of bluntly. So we w ould prefer not to

have to do it.

COMMISSIONER CAPUTO: Okay. Well, as it stands now,

it's not -- it's not currently a requirement for NPPUFs. But I also don't think that

it's without -- it's going to have complications. I think one of them is certainly 25

the lessons that I learned in watching Vogtle 3 and 4 proceed is once applicants

are into construction space, there are changes that happen during construction

space. And the nature of trying to maintain a PRA in that cont ext I think would

be fairly complicated.

And as you have outlined, not necessarily a benefit if there is

a fairly simple profile that can be addressed deterministically. So as we seek to

expand our use of risk, I do think it's important to have a bal ance in terms of risk

and use of deterministic practices. So thank you for that.

I have no further questions.

CHAIR HANSON: Thank you.

Commissioner Crowell.

COMMISSIONER CROWELL: Thank you, Mr. Chair. Thank

you to all the panelists. This has been educational for me, an d it's good to see

some of you again, meet some of you for the first time.

Ms. Johnson, it's good to see you again. I will keep my

promise to you to come visit at some point. I made the same co mmitment to

Dr. Towell the other day. And, Caleb, since you're sitting her e, I'll do the same.

(Laughter.)

COMMISSIONER CROWELL: And I've been to Forestal

many times, so I'm not going.

(Laughter.)

COMMISSIONER CROWELL: So, you know, you Ms.

Johnson, you mentioned that you want to -- hope to see the number of research

and test reactors expand in the coming years. What do you see on the horizon

over the next 5 or 10 years in terms of potential expansion of -- or new RTRs

looking to be developed and licensed?

MS. JOHNSON: Do you mean like my panelists next to me?

26

I'd certainly love to see Abilene Christian and UI-UC join us.

COMMISSIONER CROWELL: Like ones we haven't heard of

maybe that are --

MS. JOHNSON: Oh.

COMMISSIONER CROWELL: -- like on the horizon or

something that is at its infancy that you expect to see the num ber grow from 30

to something large.

MS. JOHNSON: Oh. I would -- wow, I haven't given that

much thought. So I'll have to think about it and put that in t he next newsletter.

COMMISSIONER CROWELL: I thought that's what you were

implying when --

MS. JOHNSON: Oh. I wanted to see --

COMMISSIONER CROWELL: -- when you said you do look

to grow.

MS. JOHNSON: So I do want to see at least two more join

us, so I'm happy to see two in the -- in the pipeline --

COMMISSIONER CROWELL: Yeah.

MS. JOHNSON: -- I suppose.

COMMISSIONER CROWELL: Okay.

MS. JOHNSON: And so referencing back to previous

Commission meetings in 2014, it's nice to see new people at the table. I want

to see them continue to be at the table, so --

COMMISSIONER CROWELL: Great.

MS. JOHNSON: -- that's fine.

COMMISSIONER CROWELL: And a somewhat related

question I think for you, or whoever, but maybe Dr. Towell as w ell. On

workforce issues, how -- obviously, we -- all parts of the -- y ou know, workforce 27

is an issue for all of us, whether you're at the production sta ge, you know,

research, tests, whatever.

How transferable are the training and skills your students are

learning from some of the novel technologies to other technolog ies? I mean, is

it going to be a very technology-specific workforce? Or is it going to be a

workforce that can mix and match with different new technologie s?

MS. JOHNSON: Oh, I certainly think it's applicable across the

board, the skills they learn operating a research reactor. We certainly do see a

lot of our previous operators to the NRC for employment, and th at's great, but

we also see them with those skills -- certainly like the nuclea r safety culture is

broadly applicable to many industries.

COMMISSIONER CROWELL: Yeah. Mr. Towell, did you

want to add anything?

DR. TOWELL: I agree completely. You know, I think that if

you teach someone problem solving and critical thinking and do that in a safety

culture, then I think that's applicable to any advanced technol ogy. And I think

that maybe the Navy's nuclear program is a great example of the w a y w e t a k e

their operators from one type of reactor and we're able to empl oy them in

commercial reactors.

So I think that the skillset is very transferrable.

COMMISSIONER CROWELL: Okay. So there will be good

competition amongst your map of projects. Yes. Okay.

Mr. Brooks, you mentioned something that I'm very interested

in, which is I think you all roads go through public engagement. I like that term.

You happen to be based at a -- at a university in a research reactor that is in a

highly populated area. So I think that is even more of an impo rtance to do

public engagement.

28

Can you tell us a little bit about how you guys do public

engagement and the value and how broad it is, whether it's just the university

community or far it expands outward?

MR. BROOKS: Yeah. Thank you for that question, and I

think it's -- it's worth highlighting because that will be mayb e the challenge for

advanced reactors to realize their full potential.

And so the University of Illinois, since becoming public about

our intentions to deploy an advanced reactor on our campus, we have seen

various levels of engagement. We have held many different public settings and

forums for the community and for the students.

We have regular monthly meetings that are open to the public

to come and ask any questions or get any insight into the proje ct or the status

of the project. It's really quite a coordinated effort, and it goes all the way up to

the communications office within our university to put a strate gic plan together

to make sure that all of the stakeholders have an opportunity t o provide input.

We do kind of countless engagements with media outlets to

make sure that people feel like they understand the overall tim elines, and in

particular what is new about the technology, because I think th at's where it has

been really fun to engage the public.

What most people think of with nuclear power is 1970s

technology. And just like our phones, we have come a long way, right, since

1970. And even like our phones, we don't just make calls, or m aybe we don't

even make calls anymore with phones, right? And I think advanc ed reactors

are similar in that, you know, the smartphone analogy really wo rks.

We've come a long way in the technology, the way we'll

deploy the technology, how we'll use the technology, and so it has been -- it has

been exciting to engage the public, share those advances, but unfortunately we 29

have stumbled I think as a -- as an industry in rolling that ou t, putting that --

those advancements in front of the people, so they can really w itness and see

the benefits of advanced nuclear.

COMMISSIONER CROWELL: Let me --

MR. BROOKS: So I think --

COMMISSIONER CROWELL: Can I press you on that point -

MR. BROOKS: Yes.

COMMISSIONER CROWELL: -- a little bit? Unfortunately,

this speculates somewhat, but how much does your public engagem ent at the

university level in the research stage -- do you think it will translate to broader

public acceptance of these types of reactors at the commercial phase?

MR. BROOKS: Yeah. So our project from the beginning has

been focused on deploying a commercializable technology as a -- as an

advanced research reactor. I'm an academic. I can fall into t he trap of having

yet another paper reactor. But from the very get-go, we decide d against that.

And, particularly, we want to deploy a technology that will be

deployed commercially around the -- around the country, around the world, so

that people can come and see that technology, see how it operat es, see its

benefits, right, see its transformation compared to what they'r e used to with

current -- the current fleet of nuclear.

And the role of advanced -- of research reactors around the

country to demystify nuclear for the general public is well est ablished, and I

think is underappreciated, but advanced reactors are going to and can enable

a new wave of that engagement with the public to just see, you know, how far

we've come in over 50 years now.

COMMISSIONER CROWELL: I'm going to ask you an unfair 30

question, and you can pass it to either person your left.

(Laughter.)

COMMISSIONER CROWELL: How much do you highlight

the spent fuel conundrum of -- at research and test reactors?

MR. BROOKS: Yeah. So engaging the public, just to tie

these two questions together, engaging with the public, the questions that come

up, of course the safety questions I think are -- we have -- we have been able to

address those quite clearly. That's every -- every nuclear eng ineer has

developed in this environment of utmost importance on safety, a nd the

advanced reactors have been designed to address those safety is sues.

With waste, unfortunately, I think that's largely a policy -- a

policy question. But it highlights the benefit of the universi ty pathway. In the

case of the university research reactors, the university never owns the fuel. It's

on a lease agreement with the Department of Energy, and so the ultimate -- the

ultimate path for the fuel beyond its useful life in the reacto r is to go back to

DOE.

Unlike commercial reactors that still have questions about

what is the location of that final fuel, DOE has never not come and picked up

the fuel after its use in a university research reactor. So th e university I think

provides a precedent for a pathway that addresses, I mean, both the safety

concerns of the public with nuclear, the waste concerns of the public with

nuclear, and then ultimately hopefully the scheduling and cost concerns of the

public.

COMMISSIONER CROWELL: Okay. Thank you.

With the little time I have left, Mr. Boulanger, can you talk a

little bit more about the hurdles for DOE when they pick up the fuel and finding

places to safely accommodate it?

31

MR. BOULANGER: So currently there is two locations where

we dispose of or send the fuel for disposition. They are curre ntly the Savannah

River Site in South Carolina, and then Idaho National Labs for -- and that was

decided or established in the 1990 -- NEPA action for 1995, whi ch was done

under an environmental impact statement and a record of decisio n.

Currently, the way that's divided up is aluminum clad spent

fuel is sent to Savannah River, and stainless clad is sent to I daho National

Labs. If we're talking about new reactors, DOE would have to p erform what we

call a NEPA action and establish -- either amend the existing record of decision,

environmental impact statement, or create an entirely new one.

So there are challenges that are involved in establishing

these new fuel types and fuel forms.

COMMISSIONER CROWELL: Would it potentially be a site

other than Idaho or Savannah River, or would it be one of those two sites?

MR. BOULANGER: I couldn't comment on that. I would have

to get back to you on that.

COMMISSIONER CROWELL: But something in the DOE

complex.

MR. BOULANGER: That would -- potentially. I don't know at

this time, but I can get back to you and -- on that topic.

COMMISSIONER CROWELL: Great. Thank you.

Thank you, Mr. Chair.

CHAIR HANSON: Thank you, Commissioner Crowell.

Thank you all for being here this morning. It's a real pleasur e

to hear from everyone. And, you know, I have a lot of favorite parts of my job,

but I think one of the favorite favorite parts is actually goin g around to

universities and meeting students and getting to see test react ors and 32

understanding better how these facilities are being used to edu cate students to

-- you know, particularly as Ms. Johnson, Dr. Towell, and Mr. B rooks all

mentioned about, you know, getting students into nuclear safety culture, getting

them to understand, you know, the basics of nuclear reactor phy sics and other

kinds of things.

And, you know -- and whether that's something new, you

know, Dr. Towell, when I was out at Abilene Christian, that was a great visit,

and getting to see how students were working with the molten sa lt and how that

worked at high temperatures and that test bed in that ancillary facility.

I haven't been out to Purdue yet, but I'm interested in that,

and as a demonstrator for some digital I&C type equipment there and the role

that they have played. I was out at Kansas State just about th is time last year,

and they had modified their TRIGA to have a neutron beam off th e side. And

they were doing neutron -- they were, you know, working with st udents to do

neutron activation experiments, which I thought was a really gr eat modification

to that to get additional use and additional educational benefit out of that facility.

And I really enjoy seeing this kind of thing.

I do want to dive in on a couple of issues, and I think it kind o f

has to do around with the fuel, and so forth. I don't know if it was Mr. Boulanger

or Mr. Brooks, you mentioned -- so, you know, University of Ill inois has this

agreement with USNC. USNC has their own -- I think has their o wn propriety

fuel that they are going to manufacture or contract with someon e to

manufacture themselves.

How does that work between you guys, USNC, and then DOE

in terms of, you know, is DOE going to buy that from USNC and g ive that to you

guys? How does that -- how is that going to kind of work?

MR. BOULANGER: Well, I'll tell you how we expect it to work 33

based on --

CHAIR HANSON: Okay.

MR. BOULANGER: -- precedent.

(Laughter.)

MR. BOULANGER: We'll see how it works. I mean,

everything -- I mean, the fine print of it all is it pens appro priations. Maybe

that's the fine print of everything here is penning appropriati ons.

But what we expect is that the stock material would be

supplied to USNC under that lease agreement and shipped to USNC at USNC's

fuel fabrication facilities. That's when -- that's where they would fabricate the

TRISO fuel. And then they would take the TRISO fuel and they w ould form

their FCM pellets, which is an annular fuel form with -- encaps ulated in the

silicon carbide. And those pellets would then be loaded into t he assemblies,

and then assemblies would be shipped separately to site to be - - to be put into

the reactor.

So based on past precedent, the expectation from our side is

that through appropriations and through the University Fuel Ser vices Program,

they would supply the stock material, they would supply the cos t of shipping

and manufacturing to the fuel form, just like they do for all o ther university

reactors, and then ultimately put into the reactor for its oper ation.

In our case, we'll have upwards of 20 years of operation with

our reactor without the need of refueling.

CHAIR HANSON: Ah. Okay. Thank you. That's very

interesting.

If I could, I want to -- I'm interested in exploring, Ms. Johns on

and Mr. Boulanger, this -- I was glad to see DOE getting back in the TRIGA -- or

the U.S. just getting back into kind of the TRIGA fuel manufacturing business at 34

Idaho.

And, you know, as I visited a couple of these facilities, you

know, they are now in some cases 50-plus years, and the TRIGA f uel that's in

that is kind of reaching its life and so there is -- it seems l ike to me, maybe I'm

misunderstanding, but there is a lot of refueling that could go on, not

necessarily whole course but partial course coming up.

And I guess I'm wondering, Ms. Johnson, if the -- if the RTR

organization has kind of mapped out fuel needs and kind of marr ied that with

production at DOE, and how that's going to kind of happen.

MS. JOHNSON: Oh, yes. We worked very closely with the

Risk --

CHAIR HANSON: Okay.

MS. JOHNSON: -- Service, and we are so excited to be on

their list. So I'm sure Andrew has this all in priority.

CHAIR HANSON: Yeah.

MR. BOULANGER: If we're talking about specifically TRIGA

fuel, it's manufactured in Romans, France, under --

CHAIR HANSON: Yeah.

MR. BOULANGER: -- a joint agreement with General

Atomics and Framatome. And so, yes, we do actually -- we follo w up with the

university needs, and we have it mapped out for currently the - - through their

respective decommissionings or when that anticipated date could be.

Right now we are planning on -- the intention is to acquire all

of the fuel that's needed over the next decade or so, and then from there we

would distribute it to the universities. So the fuel would com e -- the intention is

for it to come to the Idaho National Labs and be stored, and th en when the

need comes we will transition it to the university as it's need ed.

35

CHAIR HANSON: Okay. Got it. Thank you. No. I was just -

- I'm interested in that whole process because I think it would be a real shame if

a university kind of came along and said, well, we're not reall y sure, you know,

if they kind of gave thought to maybe not continuing with the r eactor program

because there was some hiccup along the way.

And I don't think that's exclusively related to TRIGA. Mr.

Brooks, while you were talking, I thought, ah, okay, we need a transportation

package for that TRISO fuel to get from wherever it's going to be produced to

Urbana-Champaign.

You know, there is one more need in there, somebody to both

make it but also then come to the NRC to get the certificate of compliance for

that as well. So there's a lot that's implied here.

I want to pick up on one thing that Commissioner Crowell

brought up in terms of spent fuel. And, Mr. Boulanger, you men tioned, you

know, aluminum clad fuel going to Savannah River and steel s t a i n l e s s g o i n g

to Idaho. A few years back there was a concern I think at Sava nnah River

about capacity in what was known as L Basin in terms of the abi lity to continue

to take either foreign repatriated spent fuel or domestic resea rch reactor fuel.

I don't know if this is a question for you or maybe a question

for Ms. Dix about how NNSA, or since you guys are now in charge of -- now

that NNSA is in charge of Savannah River, how is that problem b eing resolved,

has it been resolved, et cetera.

MR. BOULANGER: So the fuel that gets shipped to

Savannah River, we work closely with the DOE EM, or environment al

management. To kind of simplify it, we effectively drop it off at their door.

(Laughter.)

MR. BOULANGER: But there's more -- there's more 36

intricacies other than that. But I think Joanie might have a l ittle bit more than

myself.

MS. DIX: Unfortunately, I don't have a lot more to offer than

Andrew. It's outside of the scope that we work in. We essenti ally make sure

that we can fit the converted fuel into the same requirements, so that there is a

disposition pathway of that fuel.

So we work kind of within existing constraints, but we don't

handle the return of the -- the foreign returns is another offi ce within our

Department.

But I can certainly get that information to the Commission and

to you later, but I don't have that answer now.

CHAIR HANSON: Okay. Thank you. But it's a great

transition because I have some questions for you.

You know, you mentioned the uranium Molybdenum

monolithic fuel type. And, you know, trying to reach back into the recesses of

my brain on the conversion program, the three reactors that you are kind of

focused on first -- MIT, University of Missouri, and our friend s at NIST -- are all

pretty different reactors, right? They are designed to do real ly different things.

Is it a single fuel type that you're looking at for all three o f

those? And how does that work?

MS. DIX: Yes. It's a single fuel type for all of those reacto rs.

It will also be used for the advanced test reactor at Idaho Nat ional Lab. The

high-flex isotope reactor down at Oak Ridge will take a differe nt fuel, so that

fuel will be a silicide form, so that's kind of a separate fuel development/

fabrication/qualification activity that we have ongoing.

Really, the challenge is the fuel itself. Of course, each of t he

reactors has a different form that their fuel is arranged in, s o we work really 37

closely with the reactor operators and with all of our national labs to make sure

that the fuel that we develop will meet their requirements and that it can be

fabricated in the form that works for their reactor.

CHAIR HANSON: How is the irradiation testing going?

Where is it --

MS. DIX: Sure.

CHAIR HANSON: Where is that happening now, given, you

know, we've heard a lot I think on the Commission and other pla ces about the

dearth of in pile or even -- or irradiation testing kind of acr oss the -- across the

w o r l d, r e a l l y. H o w i s t h a t h o w i s t h a t g o ing? And how engaged are you with

NRC staff on the data that's coming out of that?

MS. DIX: So the irradiation testing is going really, really we ll.

We're at a really exciting point actually in our testing progr ession. We have

been doing what we call kind of mini-plate irradiations. So they're smaller forms

of the fuel meet and cladding.

We are transitioning to full-sized plates, so that's a -- that' s a

big transition. Fabrication is going well. Irradiation is goi ng really well. We do

irradiation in two places. We do it at the advanced test react or out at Idaho

National Laboratory, and then we also do some testing out at th e BR-2 reactor

in Belgium.

CHAIR HANSON: Oh. Okay. All right. Thank you.

I just wanted to clarify one last thing. You had said 2028, a

product to the NRC. Is that going to be a topical report that then kind of

approves that fuel form? That then MIT can reference in their license

amendment request in 2030? I just -- I want to translate this a little bit into NRC

speak, so staff know what to expect and we can hold them accoun table to that.

MS. DIX: Yeah. So I know there has been conversation kind 38

of at the -- at the staff level in terms of what was the right way to submit the

correct documentation. When I asked my team about this, they s aid that the --

kind of the single most important activity for the NRC to help prepare for this is

of course to have your experts available and ready to review th e base fuel

qualification report and subsequent reactor-specific conversion application.

So I don't know one for one how it specifically translates to

the exact documents, but I'll try and do the translation betwee n our two

agencies and figure out what the document is called.

C H A I R H A N S O N : T h a n k s. W e l l, i t m i g h t - - a s y o u s a i d, e a c h

one of these reactors, the three, are all really different.

MS. DIX: Yeah.

CHAIR HANSON: And so it's not going to be even physically

a single form, even if potentially the uranium content is the s ame amongst

them.

MS. DIX: Right. So, yeah, it would be two submissions. The

one in 2028 would be strictly for the fuel itself.

CHAIR HANSON: Got it.

MS. DIX: This will be the first fuel that -- new fuel that we' ve

had developed in quite a long time. So that will be the new fu el itself, and then

each reactor will do their license to adjust to that fuel after that. So --

CHAIR HANSON: Great. Looking for to it. Thank you.

Thanks for the extra time.

Commissioner Wright.

COMMISSIONER WRIGHT: You're welcome.

Thank you, Chair. It's been fun so far. Right?

(Laughter.)

COMMISSIONER WRIGHT: So thank you for your 39

presentations. You know, I really find the RTR world exciting. It's unique. It's

just -- and very interesting, and this is a really -- it's an i mportant time to be in

this space. So, I mean, you're on the cutting edge of pretty m uch everything,

right? Plus on top on that you -- you're in the unique positio n of being able to

inspire a whole new generation of people to get into the nuclea r space and find

their way and make a difference. So I really appreciate you be ing here today.

And the advantage of going last is that I always find that I

might have some questions to follow up on, you know, because so me of the

ones that I had possibly have been answered, right?

So I wanted to follow up quickly on the conversation that the

Chair had started with you. And he was questioning Mr. Brooks and Mr.

Boulanger, so I was coming to you, because I had -- there is a question about

HALEU. You know, how do you see the need for HALEU for researc h reactors

interplaying with the need for HALEU for advanced reactors? Do you think

there is -- I mean, are these complementary efforts? Or do you think there may

be competition for what people may think is going to be a limit ed supply of

HALEU?

MS. DIX: That's a really great question. It has been a very

interesting couple of years as this area has expanded within th e community.

The interest in HALEU originally was pretty much limited only t o research

reactors and medical isotope production. So we've had kind of this little niche

area in HALEU that now is seeing a huge growth with advanced re actors and

small modular reactors entrusted in it.

I think people will see it as a competition at the very beginning

because it is a limited resource at this point in time. But, i n reality, I think they

are very complementary and very beneficial, what -- you know, w ith the

expansion of advanced reactors and SMRs, we will see the growth of the 40

HALEU supply chain, and that is only beneficial for the researc h reactors and

medical isotope producers.

Right now, where HALEU comes from is form our work down-

blending highly-enriched uranium that we own at DOE and NNSA. So that is a -

- that is a limited stock, a limited resource, so that has been focused on being --

down-blending and providing it to research reactors and medical isotope

producers. We are very confident in that supply.

Similar to a question that was asked earlier, twice a year we

update our analysis for what the needs are for all of the diffe rent reactors for

their life cycle, so we have a good handle on that. But, simul taneously, the

entire Department -- and this includes nuclear energy as well a s NNSA and

others in the Department -- have really been working to help st and up the

supply chain for HALEU, and that's going to benefit everyone in this room for

research reactors and isotope producers, but also for all of th e new advanced

reactors, SMRs, whether they're at universities or whether they 're strictly

commercial. So --

COMMISSIONER WRIGHT: Okay.

MS. DIX: -- I'm excited to see where it goes.

COMMISSIONER WRIGHT: Good. Thank you for the

answer. Thank you.

Dr. Towell, the -- one it's good to see you again. You know, I

had the opportunity to go to Abilene Christian in December, and it was a great

visit and I spent the full -- I had -- gave a full day, stayed -- toured the facility,

met with students, met with staff, talked with faculty deeply a bout some

different, you know, issues that were of concern to me and of c oncern to them,

right, about the whole NRC process. And then I got to go to th e basketball

game. That was highlight.

41

(Laughter.)

COMMISSIONER WRIGHT: That was a lot of fun. Texas is a

great state, and it was a real treat to get to spend some time with you and the

President and the rest of the team down there. And I highly re commend the

visit. Highly recommend it.

So my question is a follow-up, all right, to Commissioner

Crowell's question to Mr. Brooks, right? He was asking about t he public

engagement, and he was asking about the disposition of spent fu el. Did you

have any comments? Did you -- maybe you could follow up on the same kind

of question. I'll give you that opportunity. Right?

DR. TOWELL: Thank you. Thank you for your visit. We

appreciate it anytime a commissioner is able to come. And so w e're two down,

two to go. The invitation is there.

(Laughter.)

DR. TOWELL: Obviously, public engagement, I couldn't

agree more with everybody Caleb said. It's important. It's a -- you know, if you

want the -- if you want the public to accept advanced nuclear, you need to

educate them and teach them about the advantages and demystify it and

explain the benefits.

And so, yeah, a lot -- safety and waste are usually the top two

concerns, and so, you know, you go through the safety profile a nd explain how

we're keeping it safe, and then you have to address waste. And so, you know,

like Caleb, we hope that the Department of Energy will both pro vide our fuel

and then take our spent fuel at the end of the day.

I will say, you know, with the technology of liquid fuel, molte n

salt cooled reactors, the amount of waste you produce is drasti cally reduced,

and, in fact, at some level there is nothing that goes to the w aste stream 42

because any leftover fuel goes into the next reactor. And so t hat's an

advantage, and that's something that we talk about, but public engagement is

very, very important.

And we have spent a lot of time -- a lot of the things Caleb

talked about we're doing in Abilene also, and so the -- you kno w, never pass up

a chance up to talk to the Kiwanis Club or Rotary Club or any g roup that wants

to know what we're doing in that big building.

COMMISSIONER WRIGHT: Right. So thank you for the

answer. I wanted to stay with you, too, for a second, Caleb and Rusty, because

I think the next couple of questions maybe you both could answe r about your

own experiences.

First, is our staff appropriately, in your opinion, implementin g

the AEA directive on research reactors to impose only the minim um --

"minimum amount of regulation" needed to -- for reasonable assu rance of

safety as you had on our slide, but I'll let you comment on it as well.

DR. TOWELL: So we of course understand the challenges of

bringing the first research reactor for construction written in decades, and the

first, you know, non-light-water reactor to think about as bein g a research

reactor. So we understand the challenges there, and we're very thankful for the

careful review.

Are there places where some of the questions are probably

leaning -- are there times where we probably get into issues th at should be

pushed off to the operating license or pushed off for a commerc ial reactor? I

believe so. We're continuing to answer those questions because that's the

fastest path to getting a permit approved.

So I think it's a challenge for all of us, and we're -- we

appreciate the opportunity to be in the dialogue, especially in audit space, and 43

to have the dialogue back and forth. But it's a challenge for all of us.

MR. BROOKS: Yeah. So our engagement to date with NRC

has been very good on that question. I think they have stuck t o that additional

piece of research reactors that has minimal regulation. We hav e seen a good

response from industry on that. And I think it highlights the fact that NUREG-

1537 does provide guidance that's maybe more prototype-friendly to allow for

advanced reactors to efficiently get through NRC licensing proc ess.

So I would say, you know, even going back to the PRA

question, right, we are providing an opportunity for a faster p ath, we think a

more efficient path, a clearer path, to licensing with NRC wher e then you can

get the data, you can get the understanding for that leap to co mmercial

operation, get the data needed for the PRA, in order to make th at -- again, it's a

very powerful tool, which currently is in the -- is in more of the technology

development side, but PRA becoming a very valuable tool even on the

regulation side.

So I think we're -- what we're trying to provide here, and I

think the NRC staff and our project gets that, is that we can w ork under a

guidance framework that is much more prototype friendly than we would see

with a direct commercial type of application.

COMMISSIONER WRIGHT: Okay. And with the time I've got

left, I'm going to ask one more question here, because I'm goin g to stay kind of

on this topic. As you know, the staff has been using core team s, right? And

this is a major strategy that we have -- that they have implemented on trying to -

- for these reviews, right, and for the advanced reactor licens ing.

So what are your views on how the core team is working --

and I'll come to you first, Rusty, and then back to you, Caleb -- considering what

you just told me about, you know, the -- maybe getting beyond t he scope a little 44

bit, right? Can you address that?

DR. TOWELL: Well, I should say we have appreciated the

partnership -- I shouldn't -- we've appreciated the collaborative desire to reach a

positive resolution of a safe approval. So we have been workin g well. I don't

want to -- I don't want to mislead anybody that things aren't p rogressing well.

It's just challenging because of --

COMMISSIONER WRIGHT: Sure.

DR. TOWELL: -- first of a kind, in that nature. Core teams is

a great concept. I mean, when you have inherent safety built i nto a technology

and you have -- you know, as I understand the concept of a core team, you

have a core team that understands that and can help guide people that are less

familiar with that technology do an appropriate level safety ev aluation. It feels

like there is room for growth there.

Partly, we have also had a turnover. We've had three

different technical reviewers leading our construction permit r eview. So part of

it is the turnover of people that might be working against this. Part of it is just

the first-of-a-kind nature. I think we're on a good path, but I guess there is also

always room for improvement.

COMMISSIONER WRIGHT: Sure.

Do you have any --

MR. BROOKS: Yeah. I haven't seen friction come from this

model. Of course, we're not deep into the construction permit application

review.

COMMISSIONER WRIGHT: Right.

MR. BROOKS: But so far the request for additional

information that we have received on our topical reports have b een -- have

been reasonable. They have been very clearly communicated to u s. I t h i n k w e 45

have seen consistency across topics of our topical reports that have also been

reviewed from other applicants, like was mentioned with Kairos.

There is a wake that is being formed, and I think we are all

moving nicely in that wake as applications move forward. But maybe I'll reserve

my full answer after we're in the construction permit review. Thanks.

(Laughter.)

COMMISSIONER WRIGHT: All right. Thank you so much.

CHAIR HANSON: Thank you, Commissioner Wright.

All right. We have reached the end of the first panel. We're

going to take a short break. We will convene -- oh, I don't kn ow, the two clocks

are different. I think it's triggering my OCD a little bit. B ut let's say 10:25.

For those of you who find yourselves underfed or

undercaffeinated, I am pleased to announce that we now have a c offee

bar/coffee stand here in the building. I think you will find i t off to my right, down

the hall, and they have your -- everything to meet your caffein e or sugar needs.

So that's my plug, and we'll be back shortly. Thank you.

(Brief recess.)

CHAIR HANSON: All right. Thank you, everyone. Welcome

back for our second panel. We are going to recommence with the NRC panel.

We'll be led off by our Deputy Executive Director for Reactor and Preparedness

Programs, Scott Morris. I look forward to another good discuss ion. Scott, the

floor is yours.

MR. MORRIS: Thank you, Chair, Commissioners. We are

pleased to be here today to provide an update on the Agency's r esearch and

test reactor activities.

As you heard in the first panel, RTRs are important tools in

the advancement of nuclear research and development. They incr ease the 46

understanding of nuclear technology, create opportunities for training the future

workforce, provide services for various applications and are ke y in the

development of advanced reactors.

So I will go a little bit off script here and say there is a lo t of

what you will hear today will echo some of the sentiments expre ssed this

morning with a little bit of, obviously, the staff perspective.

The very low risk presented by these facilities is recognized in

the Atomic Energy Act, which we also have talked about in the f irst panel, and

has been demonstrated by many decades of safe operation.

The Act directs the Commission to impose the minimum

amount of regulation to RTRs that will provide a reasonable ass urance of

adequate protection in public health and safety and promote the common

defense and security and protect the environment.

As such, the NRC regulates these facilities by applying

technology appropriate requirements commensurate with the risk to the public

and the environment.

This technology neutral, risk-in formed, regulatory framework

is also being used in the licensing of new technologies and is informing the way

we regulate advanced reactors.

May I have the next slide please? So I will now introduce the

panelists, who will talk about some specific agency activities related to RTRs.

Our first speaker this morning will be Rob Taylor, Deputy Direc tor for New

Reactors in the Office of Nuclear Reactor Regulation, or NRR. And he will

provide the Agency's strategic vision for regulating RTRS.

Rob will be followed Josh Borromeo, to my right, Branch Chief

in the Division of Advanced Reactors and Non-Power, Production and

Utilization Facilities, commonly known as DANU. And Josh will describe the 47

staff's risk-informed licensing and oversight approach for RTRs.

Next Rebecca Ober to my left is a project manager in DANU

with experience in nuclear security and will share information on RTR security

considerations and some recent policy issues.

Next will be Holly Cruz, to Rebecca's left, Senior Project

Manager in DANU and her overview on licensing activities for me dical isotope

facilities and advanced RTRs, including best practices and chal lenges.

And finally we will conclude the panel presentations with Amy

Beasten. She is an RTR examiner in DANU, and her presentation will focus on

the oversight and operator licensing activities for RTRs.

This concludes my opening remarks. So I will now hand over

the presentation to Rob, and we will take the next slide.

MR. TAYLOR: Yup. Thank you, Scott. Good morning, Chair

and Commissioners. Today I will provide you with an overview o f the Agency's

strategic vision for the regulation of non-power production and utilization

facilities.

Next slide, please. Nuclear research and test reactors, also

called non-power reactors, are a type of non-power production a nd utilization

facility, also referred to as NPUF. The primary use is for res earch, training and

development to support science and education and nuclear engine ering,

physics, chemistry, biology, anthropology, medicine, material s cience and

related fields.

These reactors are designed with significant safety margins

and have supported the NRC's licensing of over 100 RTRs and overseeing over

50 years of safe and secure operation.

Even in the rare case of an event such as the 2021 fuel melt

accident at the National Institutes of Standards and Technology, or NIST, the 48

design safety margins and regulatory approach ensure the protec tion of public

health and safety.

These reactors are very different from their large lightwater

counterparts. The smallest RTRs are 5 watts, which is the equi valent of an

LED light bulb. The largest, NIST, is 20 megawatts. Further, more than 80

percent of the operating facilities are less than 2 megawatts, which is

considered low, even by RTR standards.

For perspective, NIST is approximately 88 times small than a

typical large lightwater reactor such as the Canadian Nuclear P ower Plant and

170 times smaller than the newest lightwater reactors, the AP-1 000s at Vogtle.

The difference is in size and purpose provide an opportunity

to apply a graded risk-informed approach for applicable licensing and oversight

requirements of each NPUF.

It is important to state that our mission for the licensing and

oversight of these facilities remains the same, reasonable assu rance of

adequate protection of public health and safety. But our appro ach to achieving

that must be different.

While the major regulatory processes of NPUF licensing are

similar to power reactors, such as construction permits, operating licensing and

the 5059 change process, given the design differences, only a s ubset of our

regulations are applicable, which Josh will discuss further in his presentation.

Next slide, please. There are a total of 30 RTRs licensed and

currently operating in the United States. RTRs are regulated i n accordance

with the Atomic Energy Act, which requires the Commission only apply the

minimum amount of regulation necessary to ensure the safe operation of these

facilities.

The NRC's regulatory infrastructure employs a graded and 49

risk-informed approach that allows flexibility for various tech nologies to provide

reasonable assurance of safe operation.

The current operating fleet of RTRs is primarily composed of

open pool and tank designs. Trigger reactors are training rese arch isotopes,

general atomic reactors are an open-pool type design utilizing various fuel

types and mostly operate at low power.

AGNs, or aerojet general nucleonics, are a tank design and

are even smaller, which operate at 5 watts.

There are also a handful of one-of-kind technologies currently

licensed. And the NRC has also licensed about a dozen aqueous

homogeneous reactors.

Staff continues to look for opportunities to make

improvements in the security and oversight, which Becca and Amy will discuss

further. While maintaining safety, the NRC staff uses a perfor mance-based

approach to regulating RTRs commensurate with their risk and re flective of

their resources and infrastructure.

The staff also communicates regularly with the RTR

community to share information, address concerns and optimize t he licensing

and oversight programs.

Next slide, please. RTRs are vital for the nuclear workforce in

the country and support the future of advanced reactors. The N RC supports

building this workforce through the grants program, led by the Office of Nuclear

Regulatory Research. This provides us with an opportunity to g ain insights

from the technology and move forward in the advanced reactor fi eld.

The Agency is optimizing the integration of RTR and

advanced reactor staff so the past informs the future.

Furthermore, leveraging international engagement in RTRs is 50

critical to continue supporting the RTR's safe and secure opera tion around the

world. Holly will elaborate on this international engagement.

I will now turn it over to Josh Borromeo. Next slide, please.

MR. BORROMEO: Thanks, Rob. I will be highlighting the

key aspects of the safety of these facilities and how our regu latory framework

is structured to ensure the reviews are risk-informed and right -sized to

accomplish the NRC mission.

Next slide, please. There are a variety of type of RTRs and

more broadly NPUFs that implement different technologies to ach ieve their

operational objectives and include design features to ensure the y a r e l o w r i s k t o

the public. This safety provides the foundation on how we regu late these

facilities.

One of the primary design features that contributes to the

safety of these facilities is their low power levels. The lowe r power translates

into low system temperatures and pressures, which reduce the se verity of and

the equipment requirements to mitigate potential accidents.

For example, most of the research and test reactors should

not require an emergency core cooling system to mitigate a loss of coolant

accident because the lower power and the fuel are designed so t hat air cooling

is sufficient to preclude any fuel damage.

Additionally, the low inventory of nuclear material needed for

operation contributes to a small source term for these faciliti es. This results in

accident consequences that are very low.

These design features contribute to the facility have simplified

structures, systems and components, large margins to safety and limit the risk

to public health and safety.

Both the licensing and oversight framework are tailored to the 51

risk of these facilities and provide the flexibility to adjust when necessary.

One of the primary objectives of licensing is to ensure the

design features demonstrate significant safety margin. This is achieved in part

by the evaluation of a maximum hypothetical accident. This is an accident that

is intended to bound all credible accidents for the facility.

Many RTRs have sufficient margins that engineering safety

features are not required even for their maximum hypothetical a ccident.

Oversight of the RTRs ensures that the systems and

programs credited during licensing are appropriately implemente d and the

licensee continues to meet the required regulations.

Next slide, please. To implement the direction from the

Atomic Energy Act, only a subset of the power reactor requireme nts in 10 CFR

Part 50 are applicable to NPUFs. These requirements are also a pplied with a

graded approach. For example, an NPUF over 10 megawatts is cur rently

defined as a test reactor.

The regulations require a test reactor to meet the Part 100

setting requirements, have an independent review by the Advisor y Committee

on Reactor Safeguards and a mandatory hearing during licensing. However,

these requirements are not applicable for lower power research reactors.

Our guidance documents complement the regulatory

requirements to ensure all areas that could impact safety are a ddressed and

provide guidance to further implement a graded approach. This allows for a

regulatory framework that is flexible and adaptable to various technologies and

the risk for each facility.

For licensing, our primary guidance is found in NUREG 1537

titled, Guidelines for Preparing and Reviewing Applications for Non-Power

Reactors, which provides guidance for both the review of constr uction permit 52

and operating license.

NUREG 1537 was a frontrunner in the guidance that is

technology neutral. Because the potential hazards may vary wid ely among

NPUFS, the guidance provides a roadmap for applicable regulatio ns and

acceptance criteria that is broadly applicable to different des igns.

We use this document in licensing of a variety of technologies

in our operating fleet and are successfully using it in our rev iew of new

advanced NPUF technologies.

Like licensing, our oversight of the RTRs is implemented

using a graded approach. The guidance uses the power level to determine the

base frequency of inspection activities for each facility. Rea ctors above 2

megawatts are inspected annually. Below that, and if they are operating,

reactors are inspected every other year.

However, the guidance provides provisions for the staff to

adjust the frequency of inspecti on activities when performance deficiencies are

identified.

Finally, RTR operator licensing regulations and guidelines are

also commensurate with the risk of the facility. 10 CFR Part 5 5 contains

specific requirements for licensing RTR operators. Most of the s e r e a c t o r s a r e

located on university campuses and are significantly smaller th an power

reactors and can be staffed by one or two licensed operators, w hich may

consist of students.

Next slide, please. The staff continues to make

improvements in how we regulate NPUFs. Some of these improvements were

developed to improve the review efficiency for new technologies. Others

provide benefit and clarification to the operating fleet of rea ctors and lessons

learned from events.

53

The staff has recently issued a key guidance document to

support our licensee's 10 CFR 5059 change process reviews. Thi s guidance

has been tailored to be specific for NPUFs, and the staff has observed

improvements when our licensees exercise these evaluations.

Additionally, the staff developed and has implemented

guidance to streamline license renewal reviews based on the ris k to the facility.

The staff has developed enhancements to our current

guidance to improve the efficiency in the review of new technol ogy. Holly will

highlight some of the key updates to support the licensing of t he SHINE

Technologies medical isotope facility and molten salt RTRs.

Moreover, the staff is furthering our risk-informed regulations

of these facilities in our dev elopment of new regulations. The staff has made

substantial progress in right-sizing rules for security which B ecca will highlight

in her presentation. And the final draft NPUF rule that is cur rently with the

Commission will provide efficiency improvements in how we regul ate NPUFs.

We have recently identified enhancements to our oversight of

NPUFs following our introspective review of the NIST fuel damag e event.

While the staff did not identify any significant gaps in the

current program, the staff is adding emphasis in several key ar eas that will

support increased observations of risk significant activities, enhanced training of

the staff and add provisions to formalize assessments at the pr ogram.

One area the staff is focusing on to make improvements is

how annual fees are assessed for NPUFs. In the near future, th ere will only be

two licensees that are required to pay annual Part 171 fees. S o if we don't

recover all of our budgeted resources, which now includes large licensing

projects, the financial burden for these two facilities can be significant.

The staff is actively working on mitigating solutions and is 54

planning engagement with the Commission on a proposal to resolv e this issue.

Next slide, please. The non-power production or utilization

facility license renewal rule, or commonly referred to as the N PUF rule,

establishes a more efficient, effective and focused regulatory framework and it

incorporates innovative and transformative approaches which are consistent

with the principles of good regulation.

The objectives of the NPUF rule clarify regulations affecting

applicants for new non-power advanced reactors, medical isotope facilities and

existing RTR licensees, including clarifying terminology and de finitions.

A few of the key changes include a new performance-based

accident dose criteria or 1 rem. This criterion was established based on the

Environmental Protection Agency's protective action guidelines and will provide

regulatory clarity for new and advanced non-power applications.

This criterion will also serve as the transition between a

research reactor and a test reactor, which allows this critical difference in

classification to be directly driven by the risk of the facilit y.

Additionally, the rule eliminates license terms for research

reactors and clarifies the license renewal process for commerci al NPUFs and

testing facilities.

This will provide resource savings for both the licensee and

the staff. The staff will be able to maintain an awareness of facility changes

important to safety through required periodic final safety anal ysis report update

submittals and a reasonable assurance of adequate protection ca n be

maintained even without license terms.

These improvements and other established in the NPUF rule

will bring clarity and reduce resources while promoting increas ed risk-informed

regulation that still protects public health and safety.

55

I will now turn the presentation over to Becca. Next slide

please.

MS. OBER: Thank you, Josh. Next slide, please. The

first security requirements applicable to RTRs were established in 1979 to

address the theft and diversion threat to special nuclear material used onsite at

RTRs.

This update also provided an exemption for SNM, which is not

readily separable and which has a dose rate in excess of 100 re m per hour at a

distance of 3 feet without intervening shielding. Also known as a self-protecting

exemption.

Both of these updates accounted for differences in

infrastructure and the associated risks as well as the safety o f RTRs.

In 1993, regulations were added to manage potential

radiological sabotage risks for RTRs with a power output equal or greater than

2 megawatts. Studies had determined that there was no significant radiological

sabotage if an RTR operates under 2 megawatts.

This was the first time RTR security requirements were based

on the type of facility instead of the type and quantity of SNM used or

possessed.

After the terrorist attacks of September 11, 2001, the

Commission directed staff to reevaluate security requirements for all facility

types. Additional security measures were implemented for power reactors and

fuel cycle facilities with Category 1 or 3 quantities of SNM us ing orders.

Because there were no power reactors or fuel cycle facilities

with Category 2 quantities of SNM, no evaluation was completed and no

additional security measures were developed.

Additional security measures for RTRs were implemented 56

using confirmatory action letters although most licensees have since

incorporated them into license conditions.

In general, these additional security measures included

enhancements such as vehicle barriers, personnel background che cks,

coordination and communication with local law enforcement, vehi cle and

personnel searches and visitor escorting.

Recognizing the unique safety and security attributes of

RTRs, the Commission directed NRR to assume the lead of securit y for RTRs.

This direction continues to s upport effective licensing and oversight of RTRs as

well ensuring RTR security requirements are right-sized for the threat

environment.

In addition, many RTR licensees have worked with the

Department, through the National Nuclear Security Administratio n's voluntary

security enhancement program to fund security enhancements that are

consistent with and supplementar y to the NRC's regulations in 10 CFR Part 73.

In this program, DOE and NSA conducts an onsite

assessment of a facility, funds any security related updates and offers response

force training. As appropriate, some RTR licensees voluntarily updated the

physical security plans to reflect these enhancements.

The close coordination between NRC and DOE and NSA

ensures that any changes to RTR technology, material possession or threat

environment are efficiently and effectively addressed.

Next slide, please. In 2013, SHINE Technology submitted an

application to construct a first of the kind medical isotope fa cility utilizing

Category 2 quantities of SNM.

Staff proactively began assessing the potential threats to this

type of material and facility to allow early engagement with SH INE on 57

appropriate security measures for its facility prior to and during the construction.

Ultimately, staff developed a list of risk-informed supplemental

security measures that were approved by the Commission. Some o f the

supplemental security measures include, but are not limited to, timeliness of

detection, increase of communication capabilities and robust re sponse

capabilities.

Appropriate supplemental security measures are determined

using a methodology that implements the requirements needed for the

commensurate risk.

Recently, multiple non-lightwater reactor applicants have

submitted plans and applications for various types of facilitie s that will use or

possess Category 2 quantities of SNM.

Building on its experience with SHINE, staff has engaged with

prospective applicants and licensees such as Abilene Christian University and

Kairos Power on security considerations through discussions and site visits.

This engagement will support a timely and efficient review of s ecurity

information because the applicant is aware of potential supplem ental security

measures and can account for that during the design and constru ction phases

as well as during the development of license Applications and security plans for

proposed non-lightwater reactors.

In parallel, staff is proactively looking to implement a process

that can be applied more generically to new applicants looking to use or

possess Category 2 quantities of SNM instead of needing to comp lete security

assessments on a case-by-case basis.

The staff is committed to preparing and implementing

technology and threat specific sec urity measures to facilitate timely licensing of

new facilities demonstrating an ongoing ability to readily adap t our licensing 58

framework to advanced technologies.

I will now turn it over to Holly Cruz to discuss licensing

activities. Next slide, please.

MS. CRUZ: Thanks, Becca. Next slide, please. NUREG

1537 includes performance-based guidance that is technology neu tral, the

regulatory infrastructure is sufficiently flexible to licensed advanced RTRs and

medical isotope facilities. Additionally, since many 10 CFR Pa rt 50 regulations

include specific entry conditions that are only applicable to p ower reactors, the

NRC doesn't have as many prescriptive requirements for advanced R T R s. T h i s

contributes to the flexible regulatory infrastructure.

For example, to support advanced reactor development, the

staff used NUREG 1537 for the recent Kairos Hermes construction permit

review. Since the NUREG is technology neutral and provides the flexibility to

consider unique design aspects, the staff was able to apply it in the review of

the functional containment approach, which is a design feature that is not

explicitly included in the guidance.

The staff has expanded this guidance and exercised

regulatory exemptions were necessary just to support these reviews. However,

since the RTR licensing framework is flexible, the NRC hasn't n eeded to grant

many exemptions.

To date, the NRC has granted exemptions allowing applicants

to submit environmental and safety assessments supporting a con struction

permit application independently and allowing an applicant to b egin

construction of their target fabrication facility prior to this middle of an

Application. Staff is also exploring opportunities to use exem ptions to

streamline the environmental process using shorter yet equally effective

documents, such as environmental assessments in lieu of environ mental 59

impact statements.

In 2012, the staff issued an interim staff guidance augmenting

NUREG 1537 for licensing radioisotope production facilities and aqueous

homogenous reactors. In 2020l the staff also endorsed an adapt ation of

NUREG 1537 prepared by Oakridge National Laboratory as guidance for use

by applicants for non-power liquid fuel molten salt reactors.

In addition, the staff is currently preparing a revision and

update of NUREG 1537, which would incorporate guidance develope d for

molten salt reactors, aqueous homogenous reactors and productio n facilities

and provide guidance for preparing environmental reports.

Next slide, please. Advanced RTR reviews are affirming our

approach to commercial advanced reactors. As an example, the t echnology

inclusive in advanced reactor content of application projects e mulate the

flexibilities of the NRC approach to RTR reviews and oversight. This

technology-inclusive, risk-informed and performance-based guidance will inform

upcoming advanced reactor application preparation and NRC revie ws.

The staff is also gaining valuable insights into the advanced

reactor technologies such as molten salt fuel and TRISO fuel.

These RTRs serve as a proof of concept for advanced power

reactors and their design, licensing, construction and operatio n can provide

data that will be used to support the reviews of advanced react ors such as

characterization of fuel performance and containment, model ver ification in the

area of neutronics and thermal hydraulics, information on performance of safety

systems, information relevant to the design and development of instrumentation

and controls, operating experience and data that informs identi fication of

research and development activities.

Designers may choose to construct and operate a small 60

facility, such as a research or a test reactor prior to a full scale commercial

facility based on factors such as data needs, cost, safety and time.

Data obtained from a research or test reactor could be used

to fulfill the testing requirements in the regulations during s ubsequent

application for a license approve or certification for a commer cial reactor.

Any data obtained using a research or test reactor and

subsequently used to support a commercial nuclear power plant d esign would

need to meet the quality assurance requirements set forth in 10 CFR Part 50,

Appendix B.

The staff plan to gather information from a licensing,

construction and operation to aid in the efficiency of future a dvanced power

reactor reviews.

Next slide, please. Medical isotope facilities will be key to

ensuring a domestic supply of critical medical isotopes. Current RTR licensees

such as the University of Missouri research reactor have used n eutron capture

to produce diagnostic medical isotopes.

The University of Missouri has also announced an initiative for

a new reactor dedicated to the production of medical isotopes.

Oregon State University has performed experiments for

medical isotope proof of concept and other RTRs are pursuing ot her methods

to produce therapeutic medical isotopes.

SHINE Technologies will produce vision-based molybdenum-

99, the parent isotope of technetium-99, which is used for diag nostic imaging.

SHINE is also pursuing therapeutic medical isotopes. The

facility consists of eight accelerator driven, subcritical irra diation units in a

production facility containing hot cells used for isotope separ ation from the

irradiated special nuclear material target.

61

The staff employed several novel approaches to the SHINE

review, which allowed flexibility and will help to ensure safe operations such as

the following.

We granted an exemption to SHINE allowing them to submit

their environmental and safety review applications separately, leveraged review

insights from fuel cycle facilities to support the review of th e production facility,

identified conditions for the licensing of operators and approv ed a phased

approach for the facility start up.

These approaches not only allowed the staff to address

aspects of the review unique to the SHINE design, but also meet the schedule

and complete the review within the established budget.

The staff is using lessons learned from the SHINE application

to inform the review of the Kairos Hermes, University of Illino is Urbana-

Champaign and other advanced RTR applications.

Other applicants have also initiated pre-application

engagement for construction permit activities related to the pr oduction of

medical isotopes.

Next slide, please. The NRC is engaging international and

setting the benchmark for other countries looking to establish new or expand

existing RTR programs.

There are currently 225 operating research reactors in 54

countries with another 20 on the horizon. The NRC staff has pa rticipated and

provided presentations at various international Atomic Energy A gency

workshops to share our best practices while affording member st ates the

opportunity to ask questions applicable to their programs.

The NRC also participates in missions with the IAEA to

provide member state recommendations for safety improvements as well as 62

periodic reviews of IAEA safety standards and other IAEA public ations.

The staff continues to engage with our counterparts at the

Canadian Nuclear Safety Commission to share knowledge supportin g

advanced reactor reviews. These interactions allow for us to s hare our

processes with our counterparts, promote international collabor ation and

support an efficient review process.

I will now turn the presentation over to Amy. Next slide,

please.

MS. BEASTEN: Thanks, Holly. Next slide, please. The staff

has made many improvements to the RTR inspection and examination program

from updating inspection guidance documents to leveraging elect ronic tools to

support operator licensing exami nation, development and adminis tration.

Notably, we have developed an RTR specific reactive

inspection guidance to augment Management Directive 8.3, Incide nt

Investigation Program for Event Response and Reactive Inspectio ns.

This guidance includes considerations of the unique set of

circumstances and associated risks for the event when recommending the level

of response, improvement in documentation of the recommendation to include

the basis for the level of response and enhanced clarity for do cumenting the

decision-making process for a reactive inspection.

The inspection staff is updating guidance to streamline the

level of detail in inspection reports consistent with other NRC programs.

This effort is also being coordinated with implementation of

the program into the reactor program system also known as RPS t o allow the

use of the report generator tool, which will increase the effic iency and

timeliness and issuance of inspection reports.

The staff routinely reviews inspection procedures and 63

guidance documents to enhance guidance for inspectors based on lessons

learned during inspections and events at RTR facilities.

The staff plans to formalize this review process following

feedback from the recent OIG inquiry. The observation of risk significant

activities is being reemphasized in the inspection scheduling t o ensure direct

NRC oversight of activities such as reactor operations, fuel mo vements and

significant maintenance activities.

The operator licensing staff is implementing improvements to

modernize the program, including efforts to provide the ability to conduct

electronic examinations using the collaborative learning enviro nment, CLE.

The CLE is an existing training tool used by the office of the

Chief Human Capital Officer. Operator licensing staff currentl y use the CLE to

develop living exam question banks for each RTR facility to all ow for more

efficient exam development. And the staff plans to transition the capability to

perform electronic written exam administration and grading.

Both the oversight and operator licensing teams are

leveraging the use of RPS to allow for enhanced tracking of act ivities and

management of performance.

Next slide, please. During the COVID-19 public health

emergency, staff maintained oversight of RTR facilities through a combination

of onsite and remote inspections. Inspectors maintained awaren ess of local

health conditions and various positions and policies taken on c ampuses in

response to the public health emergency and adjusted accordingl y to ensure

the agency continued to successfully meet the mission for RTR o versight

program.

The operator licensing staff continued to conduct exams and

issue licenses, prioritizing facilities identified as critical infrastructures.

64

Although we continued to issue operator licenses during the

public health emergency, there were delays with the issuance of the associated

certificates, which created a backlog of unissued operator lice nse certificates.

The staff has eliminated this backlog while ensuring a new

backlog was not created, which addressed an ongoing concern of our

licensees.

Consistent with actions taken for power reactors during the

public health emergency, the staff utilized a streamlined exemp tion process to

allow facilities to maintain compliance with regulations.

Inspectors and examiners worked closely with RTR facilities

to identify areas of responsibility and requirements impacted b y the emergency

and then pursued exemptions that permitted continued safe opera tion without

undue risk to the public.

Inspection guidance and policy continued to recognize and

accommodate the wide diversity in range of existing and future NPUFs. Event

tracking has improved through efforts with the operating experi ence group to

increase awareness of RTR events.

Enhanced cross-communication among staff and the

community of the National Organization of Test Research and Training Reactor,

TRTR, improves the effectiveness of event response and provides an

opportunity for staff and the TRTR community to incorporate les sons learned

and do training and procedures.

Additionally, the staff and TRTR community have enhanced

approaches for identifying and addressing safety culture issues observed in

events through the increased communication among all interested parties.

Next slide, please. The oversight and operator licensing

teams are placing emphasis within their respective programs to transfer 65

knowledge of the RTR program to other areas of the agency.

Both the inspection and operator licensing program staff are

focused on including a wide diversity of backgrounds and experi ences,

including hiring staff with previous RTR experience and power r eactor

inspection experience.

Additionally, staff has conducted knowledge management

training on various RTR related topics to encourage greater fam iliarity with

inspection and licensing processes and procedures and cross-tra ining for

interested individuals is encouraged.

In response to recent RTR events, the staff plans to enhance

the oversight program through improvements to training and guid ance to

include knowledge and chances of recognizing precursors that co uld lead to

fuel element damage.

The staff is utilizing these activities to support the

development of programs for advanced reactors.

Next slide, please. The inspection and operator licensing

teams have enhanced communications with both internal and exter nal

stakeholders. Internally, the oversight operator licensing and licensing staff

coordinate and share information on a routine basis.

Additionally, the RTR staff ensures regions are informed of

oversight and operator license examination activities that occu r at facilities

within respective regions.

To improve communications and access to RTR information

with external stakeholders, the staff developed an RTR inspecti on report link

within the NRC's public website, increasing transparency and co mmunication

with the public and other external stakeholders.

The staff issued Information Notice 202303, Recent Human 66

Performance Issues at Non-Power Production and Utilization Facilities, to share

operating experience and highlight recent events at RTRs that i dentified issues

related to safety culture.

The RTR staff and management conduct routine meetings

with the TRTR community to discuss regulatory and operational i ssues. The

staff has increased communications with state and federal agenc ies and has

hosted state representatives and the Department of Energy RTR fuels program

management on inspections at RTR facilities.

The NRC staff has taken steps to increase the sharing of

information with RTR licensees by providing access to the IAEA operating

experience database known as the Incident Reporting System for Research

Reactors, IRSRR.

The IRSRR allows the NRC and international organizations to

share operating experience in a single database. Enhancing com munication

domestically and internationally and provides opportunities to identify

commonalities among events reported globally.

The staff utilizes various forms to share information on RTR

events through participation in various forums such as the Amer ican Nuclear

Society conferences and the NRC hosted Annual Regulatory Inform ation

Conference.

I will now turn it back over to Scott for closing remarks.

MR. MORRIS: Thank you, Amy. So in conclusion the staff

recognizes the vital role that RTRs play in training the future nuclear workforce

providing services for a variety of applications in the advance ment of science

and technology.

They have relatively low source terms and are designed and

operated with significant safety margins. Accordingly, our reg ulatory approach 67

to licensing oversight of RTRs is graded and risk-informed. Th e staff continues

to make progress developing regulations and guidance to provide further

enhancements in how we regulate these facilities while maintain ing their safe

operation.

That concludes the staff's remarks and we look forward to

your questions.

CHAIR HANSON: Thanks, Scott. And we will begin again

with Commissioner Caputo.

COMMISSIONER CAPUTO: Thank you all for being here this

morning and for the very thorough presentations.

It is quite timely given the current licensing work with

advanced reactors in this area and the policy issues that are being presented to

the Commission with regard to research and test reactors.

I also want to point to current paper pending before the

Commission on microreactor licensing that proposes to use some research and

test reactor processes with regard to testing fueled, manufactu red

microreactors at a factory.

This is the type of innovative thinking that I am really excite d

to see happening within the Agency. Of course, the devil is in the details as to

how this is going to work.

So once aspect is how we formalize a disciplined process for

considering potential changes to regulatory requirements for li censees.

For non-power utilization facilities, it is fairly straightforw ard

for a majority of them. As we have discussed a couple times al ready this

morning, the Atomic Energy Act tells the Agency to impose the m inimum

amount of regulation on these licensees for research and development licenses

under Section 104.

68

For other utilization facilities, we have formal requirements

under the backfit rule the Agency uses when it is considering i mposing

regulatory changes.

There is, however, a longstanding interpretation that the

backfit does not apply to non-power reactors. And that interpr etation is

generally not an issue because most of them qualify for the minimum regulation

provisions. However, things are beginning to change in this ar ea.

So one of these changes already is the existence of a

licensee for a non-power medical isotope utilization facility u nder Section 103

rather than Section 104. And there is the prospect of potentia l additional

licensees.

So if we continue with the interpretation that the backfit rule

only applies to power reactors, such facilities would neither have the backfit rule

nor the minimum regulation provision under Section 104 when it comes to

scrutinizing potential regulatory changes.

So former Chairman Svinicki expressed these concerns in her

vote on the Paper 1962 regarding non-power utilization faciliti es and licensed

renewal. And I share those concerns. But that's not the end o f it.

As I mentioned earlier, microreactor licensing, the paper

pending before the Commission proposes an option for licensing microreactors

under 103 and treating them as non-power utilization facilities for the purposes

of operational testing.

So given my focus on having discipline processes for

considering regulatory changes, this raises additional question s under the

application of the backfit rule. So there are some aspects of the design of a

manufactured reactor that would be controlled under the backfit rule during the

testing.

69

A microreactor itself would eventually be controlled under the

backfit rule once it is licensed as a power reactor. But if we treat it as an NPUF

during operational testing, portions of the facility as a whole that are not part of

the manufactured reactor design would be an NPUF licensed under Section

103 without the minimum regulation requirement.

So it strikes me as an untenable situation for manufacturers of

microreactors and medical isotope non-power utilization facilit y licensees if we

persist in this interpretation that the backfit rule only appli es to power reactors

given that NPUFs have no explicit controls on regulatory change s under

Section 103. So the backfit rule itself does not include a lim itation to power

reactors anywhere in the text and it would be simple to apply t o additional

facilities.

I believe the staff should re-examine the applicability of the

backfit rule to all production utilization facilities licensed under 50 and 52 and

harmonize the interpretation of the wording of the regulation i n order to provide

improved regulatory certainty for all NPUFs and avoid establish ing barriers to

entry for potential microreactor manufacturing licensees.

I believe this could be accomplished through some form of an

interpretive rule or generic communication and should be follow ed by making

durable changes to NUREG 1409.

Scott or Rob, can you just give me your views on the issue?

MR. MORRIS: I will just start and then I will hand it off to

Rob.

So I think you are correct. There is nothing explicitly writte n

into the rule that would preclude RTRs being covered. But as y ou pointed,

historically we haven't.

So with that as -- so we could. We just haven't. But given the 70

context that you just described, maybe Rob, you can share what we've been

thinking about in this arena.

MR. TAYLOR: Yeah. So I think your point about the

principles of good regulation and clarity and reliability in our regulatory decision

is a very good point. And I think that if that's something we need to add to

assist the development of these technologies, we certainly coul d explore that.

I think in practice, the staff's position is that we're not going to

move forward with proposing or implementing or forcing changes on NPUF

facilities licensed under 104 wit hout going through a very rigorous process akin

to the backfit rule.

We recognize the stability and im portance of our decisions.

And absent a substantial safety issue or an adequate protection issue, I think

we would apply the same rigor. If it is important to put that into durable

guidance or requirements, I think we can certainly pursue and c onsider that.

CHAIRMAN CAPUTO: Well, I think putting it into durable

guidance is probably important just for the sake of clarity and reliability for

applicants.

Just to be clear that they will not be put in a situation where

our regulations are perhaps influx in a way that was not antici pated. Thank

you.

CHAIR HANSON: Thank you. Commissioner Crowell?

COMMISSIONER CROWELL: Thank you, Chair. Thank you

to all of our panelists today. I always learn something from t hese discussions.

I'm going to ask a couple of questions, and I will just preface that any of you are

welcome to use Scott as your lifeline and have him answer it if you don't like the

sound of it.

Rob, I'll start with you. So in listening to your presentation 71

and looking at some of your slides, it's clear that power level p l a y s a k e y r o l e i n

the level of risk and in regulatory oversight you apply for RTR s.

But even to someone as simple as mean, it seems a little bit

basic to just look at it through that framework. And there is a pretty wide variety

of technologies in the RTR world. So tell me why power level i s so central but

also what other considerations are made so that I can have fait h that it's a

fulsome risk evaluation.

MR. TAYLOR: Thank you for the question, Commissioner.

You are correct that the regulations were built, and our guidan ce was originally

built, on power levels. That was a convenient way to do it.

I think if you look at what we're trying to do it today, we're

more consequence oriented. What's the risks to public health and safety? And

the power levels are less important. And we're happy to look a t how to adjust

those as we go forward to remove arbitrary thresholds on power level that may

not be reflective of the diverse technologies, right?

It should be really based on the relative risk of the facility and

the source term that's there. And that's what we should really be making our

decisions on.

So, yes, we have a framework that was originally based on

that 30, 40 years ago and stuff. But I think we're moving all of our thinking

towards a more dose-oriented public health and safety consequen ce

framework.

COMMISSIONER CROWELL: Josh, I'm going to go to you

next. You know, unless you have an RTR in your backyard or may be you went

to a university that had one and you're aware of it, you know, most folks

generally aren't too familiar with these types of reactors or e ven their existence.

But those outside of the groups that I mentioned who may be 72

familiar with it, are probably familiar because of the event at NIST. And from

the presentation, it doesn't sound like we changed too many thi ngs as a result

of NIST overall in looking at safety and oversight.

So just tell me how you would communicate to someone who

doesn't have familiarity with reactors and research and test re actors, why they

shouldn't be concerned that if one were established in their co mmunity that an

event like NIST is going to happen there?

MR. BORROMEO: So is your question relative to, you know,

what we changed or the risk to the facility or a little bit of both? I can answer

both ways.

COMMISSIONER CROWELL: Both. But if I'm in, you know,

rural Alaska, and that's not a great example, and there was a p roposal to build

a research test reactor there, and I'm like, well, then we're j ust going to have an

issue they had at NIST. Why is that not (simultaneous speaking )?

MR. BORROMEO: So somewhat to what Rob was

mentioning, right, and what you asked about power level, right? We've used

power level as a surrogate for risk for many years, right, the 2 megawatt

threshold for our oversight, you know, has really kind of been something that

has driven the amount of inspection that we have to do.

And so the lower power translates into low source term, right?

And we can have, like, emergency planning areas that are very small. You

know, NIST is at its fence line. But a lot of these universiti es have emergency

planning areas that are within the building itself.

So, you know, someone can be at the site boundary, right,

which could be the building during an event and be well below t he concern for

safety.

COMMISSIONER CROWELL: Okay. Do you want to add to 73

that?

MR. MORRIS: Yeah, thanks, Josh. I would just add that it's

not that there weren't -- I know you didn't say this. It's not that there weren't any

changes to our oversight program. There were. The key ones st emming from

NIST were focused on looking at risk significant activities tha t occur, like,

refueling for example and actually having eyes on during those where as in

historically we didn't necessarily do that.

So these are some of the fine-tunings that we're doing, just to

our oversight program. So there were lessons learned, I guess, is the point.

And there are changes that have been incorporated.

COMMISSIONER CROWELL: And if you don't remember,

the public asked, was NIST the result of technology deficiency, operator error or

lacks oversight? What would the answer be?

MR. BORROMEO: The latter two mostly, I would say, right?

So that's why we wrote the confirmatory order to have NIST take a look at

things like their problem identification and resolution proces ses, their

leadership accountability.

So they are, you know, working on improving those. We are

remaining close oversight of those improvements as well as ensu ring that

they're operating safely whenever they're, you know -- as they're trying to

recover from the event.

COMMISSIONER CROWELL: And I would just, as a general

matter, the -- well, you know, some of these advanced reactors and certainly at

the research testing size and scale can have a relatively small site boundary

because of the relative risk, you know, that's well justified, you know, from a

technical and risk perspective, but from a psychological perspe ctive for the

public, it's hard to get your head around that you can be in an other room next to 74

a reactor and not have an undue amount of risk.

And so it's important to be able to characterize these things

and put it in context for people who don't, you know, fully app reciate all of the

advanced science and engineering things that even your staffs d o.

Moving on here, Rebecca, it was very helpful to hear the

history of our security framework. And I'm wondering if in ret rospect there is

any regret post-911 for not doing a review of Cat 2 facilities as well as Cat 1

and 3. And you would think that if you did it for the one lowe r and the one

higher that you could capture the one in the middle.

So tell me if that was an oversight in retrospect given what we

are dealing with now with Cat 2 facilities coming onboard?

MS. OBER: Yes, I mean, I think in retrospect where we are

now, if we had addressed it then, it would definitely simplify things at this time.

However, I will point out we are, you know, 20 years past that.

The technologies have changed. The threat environment has cha nged. And

so completing this review now is probably the most accurate rep resentation of

the necessary supplemental security requirements that those sor ts of facilities

should use in terms of the threat in technology.

Scott was there at the time --

MR. MORRIS: Ouch.

(Simultaneous speaking.)

MR. MORRIS: So absolutely, you know, I don't want to say

Monday morning quarterback -- I don't want to -- I just did.

At the time, I can just tell you that we were resource

constrained, and there were a lot of things coming at us as an agency,

particularly in the security realm.

And so we had to make choices about where we are going to 75

spend our resources and where we weren't, and that was one of t hem.

(Simultaneous speaking.)

MR. TAYLOR: A big benefit today to taking this on is that you

actually have facilities that are going to possess the Cat 2. So you now

understand the business models and the needs of those facilitie s.

So building a program today with that understanding, you

build a better box for it than you do when you try to take it o n generically and

guess at what the needs are going to be. So the pros and cons to both

approaches is something, and I find that the industry shares a lot of information

that helps us build these better.

COMMISSIONER CROWELL: And I don't disagree with you

at all, Robert, but I think even a generic look given that you' re capturing Cat 1

and 3. In any event, here we are.

Rebecca, one more question for you. I know that's important

to have as much, you know, consistency and predictability for l icensees and

applicants of what their security requirements are going to be. That being said,

there is a lot of variety of technologies and new technologies in the world of

RTRs so I could also argue that an ad hoc approach is appropria te in some

instances because of the uniqueness of the facility. So tell m e how you

balance those competing kind of priorities.

MS. OBER: Yes. So I guess in terms of specifically the Cat 2

SNM security requirements, as we stated, those are the ones tha t we have yet

to really address in terms of additional security measures.

The first facility that came in was SHINE obviously. And so

based on that, we did look at the threat level, the risk to tha t technology and

developed a methodology and supplemental security measures that we

reviewed and approved by the Commission that we, as staff, are planning to 76

use as a basis in looking forward to future technologies.

We recognize that when these new technologies come in,

there will be some sort of a case-by-case analysis, but the ide a is to have a

general process and methodology that we can start with as well as a list of

supplemental security measures that are appropriate for that ty pe of material.

And then we can reevaluate each licensee at that time, but

we are starting with the framework, we're starting with the methodology that will

ideally make that review more efficient.

COMMISSIONER CROWELL: And then that will evolve or be

memorialized over time as we gain experience and there's --

MS. OBER: Yes. Yup, lessons learned are always, you

know, implemented.

COMMISSIONER CROWELL: Okay. Thank you. I

appreciate it. Thank you, Mr. Chair.

CHAIR HANSON: Thanks, Commissioner Crowell. Thanks,

everybody, for the presentations this morning. You know, I wan ted to start off

echoing something Commissioner Caputo said, I thought on a firs t read

through, I thought the microreactor paper was very good, and it had a lot of

really novel and interesting concepts.

And it admits in that paper, it's a first step towards thinking i n

novel ways about our existing regulations in order to support k ind of multiple

deployments of standardized designs.

And I think the issues that Commissioner Caputo raised as

well about backfit and 103 versus 104 and so forth are also rea lly worth diving

into and exploring. And I look forward to, you know, all four of us working

together and with the staff to turn the microreactor paper and also the NPUF

final rule as well.

77

With that, I want to dive in a little bit, Rob, I think on this 104c

issue and the notion of minimal regulation. I mean, Dr. Towell was very

diplomatic, and I appreciate that. But there is also -- I gues s I think I need you

to paint picture or have some context for me around the audit p rocess with

Abilene Christian in particular but also within, you know, any reactor.

And the number that really sticks with me is the kind of 300

audit questions. And what those were about, how necessary, you know, why

did the staff think that those particular areas were necessary or that particular

volume was necessary at this stage in the process.

You know, I still echo my remarks, I think, about the Kairos

review, Rob, and I think the outstanding job the staff did in t erms of structuring

that, but also really focusing on that, right? Both from a 52 to 50 perspective

but also a CP versus OL perspective. So can you kind of put so me context

around that for me, please?

MR. TAYLOR: Yeah, certainly. The audit process is a

phenomenal tool to allow the staff to have a full understanding of the design

and the technology.

So you will see a number like 300 questions. A lot of that is

confirmatory. Do we understand what your application says and making sure

that we fully understand the safety profile and the basis for t he facility. And

what that leads to is very few requests for additional informat ion because we

don't have to go seeking that i nformation in a request for additional information.

So we usually deal with those questions in a dialogue format.

And we'll put the question out so that they're ready to addres s it. And a lot of

them go away very, very quickly in a dialogue during the audit.

So we'll ask questions making sure we have the full picture of

the safety case and the safety basis decision that we need to m ake. And then 78

only the subset where we say, hey, we need something on the doc ket that isn't

in your application. Do we proceed to the RAI process? So the n we're very

rigorous in what things are and how much we ask for and what's necessary.

With regards to the ACU application, I think overall it's going

well in that respect. Specific to the areas where we might hav e a little bit of

disagreement, they are around design changes that ACU is making to specific

materials in the safety-related case of the facility, so safety-related components

in the facility.

And those were environments where there is data that

demonstrates there is potential for degradation. And we want to make sure that

we have enough information at the CP stage to understand whethe r there is a

true long-term degradation concern in that environment because if we approve

the material now, we want to be reliable and not come back at t he operating

licensing stage and say, hey, the data says you don't have enou gh of a basis to

support the safety related case of that component.

So we're trying to get to that right threshold. I can understand

why different perspectives may exist on how much is needed. Bu t as a safety-

related component in the facility that there is data and there is information that

says, hey, this environment that it's going to be in might pose degradation risks.

We want to make sure we have enough information to say that's manageable

over the lifetime of the facility.

CHAIR HANSON: Yeah, look, that's super helpful. I mean, I

want to recognize from where I sit, you know, the really limite d ability that I'm

going to have about specific technical related questions that a re kind of under

review. But you can also understand that, like, 300 sounds lik e a big number.

MR. TAYLOR: Mm-hmm.

CHAIR HANSON: You know? And I think it's important, too, 79

from my perspective, and I hope my colleagues will agree that, you know,

having these really focused and efficient reviews under 104c an d the minimal

regulations is really important.

And I think it's really important for really kind of the future of

risk informing subsequent reviews as well, right? Because what happens then?

We issue a CP. They go put a shovel in the ground, hopefully get an OL. And

that's how we're going to learn, and that's how we're going to get data that's

going to actually benefit everybody.

And so asking the right kinds of questions up front is really

important in order to ensure public health and safety, but also allowing that

progressive path forward to really get to in a way that the pay off, which is the

operating data that we're going to see and the real data that w e're going to see

from some of these degradation mechanisms that we kind of want to probe up

front. Yeah, okay. Good. Thank you.

Josh, can you give me a sense of where we kind of stand with

license renewals for research reactors? I've heard various thi ngs over the

things about kind of where we are, how many, how long they're t aking, you

know, the capabilities of our licensees, et cetera?

MR. BORROMEO: Sure. Yeah, so staff has been working

really hard over the past few years to really work down all the renewals. And

right now we have two in-house right now. So those two we are progressing

along very well with only a handful of sections remaining on th ose. So we're

making good work on those.

With the university licensees, and I think it was mentioned in

the last panel, they only have a handful of staff, right? So w hen we do ask a

question sometimes it -- you know, getting the right resources in place can take

a little bit longer which is why sometimes, you know, the revie ws get a little 80

lengthy.

But we're being told by our licensees what would really help

that out would be the NPUF rule, right, and the non-expiring li censes which

would really provide a benefit for them resource-wise as well a s the NRC staff.

CHAIR HANSON: I really like this concept in the final NPUF

rule of not having an expiration on some of these, particularly, right, if you go

out and see these reactors. They've been in place since the late 60s, early 70s.

They've operated safely at low powers for a really long time. They're going to

continue to do that under the right conditions, et cetera.

I guess I do want to -- the other aspect of that final NPUF rul e

thought is the periodic submission of final safety evaluation r eports, basically

updating that on occasion.

Can you just remind us the frequency there and that we

haven't -- you know, kind of what's the trigger resubmitting an d FSAR for

licensees?

MR. TAYLOR: Right. So in the NPUF rule, initially we are

going to issue orders to have our licensees kind of stagger the submittal of their

first FSAR. But then after that, it's going to be on a five ye ar basis, right, and

they are going to be required to submit it on that periodicity.

Within that, they will have to include any changes that they

made under 5059 and will be able to remain, you know, aware of anything

significant, right? And during that time, we'll provide oversi ght, right, for those

changes, too.

C H A I R H A N S O N : I s e e. S o i t ' s k i n d o f a - - t h a t ' s v e r y h e l p f u l.

I mean, if nobody had made changes for example under 5059 beca use they

didn't have a need to, they could ostensibly resubmit the FSAR that they had

previously submitted and said, look. Everything is still good. We've learned a 81

few things. You know, here are kind of the updated sections, e t cetera. It is

really a management -- it's a regulator oversight by the differ ences the?

Do I have that right?

MR. TAYLOR: Yup, yup, yup. Absolutely.

CHAIR HANSON: Okay. All right. Very good. Thank you.

Let's see.

I think I'm just going to wrap it up there. Thank you all very

much. I am going to hand it over to Commissioner Wright, which is never a bad

idea.

COMMISSIONER WRIGHT: Happy I'm last. So good

morning and thank you for your presentations and the work that went behind it

to get ready. So thank you and everybody on your team who supported you.

So as I told the first panel, you know, the RT world to me it's

kind of unique. It's interesting. And that's absolutely neces sary. It's needed as

we advance the safe deployment and safe use of nuclear technolo gies, right?

Regardless of their use, commercial, research, medical, whateve r. So I really

appreciate all that you and your staff are doing in this area. And it is helpful.

You know, we have a mission and we're trying to get really focu sed on this.

Before I actually get to the questions, I wanted to ask

something here a little bit different just because I'm curious. Has anyone here

on the panel today, do you have any personal experience through RTRs at

school? Did any of you do that m aybe as part of your college s tuff?

MS. BEASTEN: I did. I was a senior reactor operator at the

University of Maryland, actually.

COMMISSIONER WRIGHT: So is there any part of that

experience you would like to share maybe? How do you bring tha t insight and

experience to your job here?

82

MS. BEASTEN: So to make a really long story short, the fact

that the University of Maryland had a training reactor was the reason I decided

to go there for graduate school. It would have been an invalua ble opportunity

to learn how to operate it and use it for my PhD thesis researc h. You know not

a lot of people get that opportunity.

And I knew I wanted to do something in the nuclear field, and

that was the best thing I could have thought of to get me a leg u p t o e x p l o r e a l l

of the options available that existed in the industry. I wound up here with the

NRC, which has been a great way to translate what I learned from operating the

reactor to what I do day to day.

COMMISSIONER WRIGHT: Was there like an RTR college

team group here at the NRC?

MS. BEASTEN: No, but I did want to start a fantasy football

league.

COMMISSIONER WRIGHT: Okay. Very good. I want to

thank you for that. And I'm going to stay with you for a secon d. Because

during some of my trips to RTRs over the last couple years, lic ense certificates

were a big deal. And it became a big concern of mine, and I st ayed on top of it

because some of them graduated and never got their certificates. And that's an

important accomplishment, right?

So I just want to recognize the staff and thank them and thank

you for prioritizing that and to clearing that backlog and try to keep it clear. And

if I could ask, how did you go about clearing it? What did you have to do and,

you know, are those actions still in place, you know?

MS. BEASTEN: So processing the certificates requires a

certain amount of onsite presence, which is why struggled with it during the

COVID-19 health emergency. We didn't have a lot of staff here to facilitate the 83

issuance of the certificates.

So we also previously issued them in batches. And now we

issue them as soon as the operator license is issued. So, you know, we've

taken steps to just stay on top of it.

COMMISSIONER WRIGHT: All right. Well, thank you.

Because it's helpful when people notice it.

Holly, how are you this morning? So the first panel touched

on sharing, you know, operating experience across members. So how does the

staff ensure that it's consistently receiving and incorporating the latest and

greatest operating experience? And how does the NRC share that information

it receives from one facility on operating experience across th e RTR industry?

MS. CRUZ: Thank you, Commissioner. The event tracking

has improved efforts with the OPI group to increase awareness o f RTR events.

We've also enhanced cross-communication among staff and the community of

TRTR. That has improved the effectiveness of event response and provides an

opportunity for the staff and the TRTR community to incorporate lessons

learned and to training and procedures.

RTR staff and management conduct routine meetings with

TRTR community to discuss regulatory and operational issues. I think Amber

mentioned that this morning as well. And the staff has increas ed

communications with state and federal agencies to host state re presentatives

and the DOE RTR fields program management on inspections at our DR

facilities.

And Amy had mentioned the operating experience database

the NRC has taken steps to increase sharing of information with NRC's

licensees by providing access to the IAEA database. And the IR SRR allows

the NRC international organizations to share operating experience in a single 84

database and that enhances communications domestically and inte rnationally

and provides opportunities to identify commonalities among even ts report

globally.

And then finally the staff utilizes various forms to share

information on RTR events through participation in various form s such as ANS

conferences and through the RIC.

COMMISSIONER WRIGHT: Right, right. Thank you. Scott?

MR. MORRIS: I just wanted to briefly add. It didn't come up

in this morning's panel, I don't think, and it didn't come up i n ours. But there's

an analog to the TRTR. It's called IGOR. And I'm not going to remember what

that acronym means, but it's an international group of research reactors. Let's

just say that's what it is. I think that's what it is.

But they also meet annually with the national TRTR here. So

that's yet another opportunity to expand that.

COMMISSIONER WRIGHT: Good, great. Thank you. So

my colleagues were asking some questions earlier, and I think the Chair started

when he came to you about, you know, the 104c stuff and minimum amount of

regulation and all that. So I'm not going to go there.

But in the first panel we heard a mention that we've had some

turnover. And we've had turnover everywhere, right? And I thi nk they

specifically said they lost three people on a core team if I he ard that right?

MR. TAYLOR: The team lead changed over three times.

COMMISSIONER WRIGHT: They did?

MR. TAYLOR: Mm-hmm.

COMMISSIONER WRIGHT: So it does raise a little bit of a

concern because the core team, we're supposed to -- the whole i ntent of that

purpose is to keep that consistency, that familiarity, and the same people, same 85

thing, move it start to finish, right?

So when we lost those people and they turned over, was it

because of retirements, or did people go to different agencies or did they go

somewhere else within the NRC? I mean --

MR. TAYLOR: So we lost one externally to a vendor for an

advanced reactor. We lost one to a great promotion opportunity inside the

agency. And then we lost a third to a commission office so.

COMMISSIONER WRIGHT: I was afraid you were going to

say that. Yeah, yeah. I resemble that remark. Yeah. But it does, it speaks to

just the number of people we have, right, and the resources?

MR. TAYLOR: And they are all nuclear engineers, which is a

very critical skill set and a challenge for us. And it continu es to be a challenge

for us.

The beauty of the core team, though, is they're a team. So

just because I lose a piece of the puzzle, the rest of the puzz le is still there. So

I need to get a new piece and put it in there. And there's a k nowledge

management and come up to speed. But it's not like that work j ust

disappeared, right? That work is still with all the rest of th e core team because

they're doing the review together.

COMMISSIONER WRIGHT: Right.

MR. TAYLOR: So it actually helps us in some respects when

we do have turnover. The core team adds a value in that functi on.

COMMISSIONER WRIGHT: Right. And if I could follow up

on that, so when you're building your core team, you know, I kn ow that we've

hired, what, roughly 600 people in the last couple years.

And it takes a while to get them acclimated and ingrained into

the NRC way of doing -- sometimes three years or so, right? Bu t they still don't 86

have the experience. They're just building that knowledge base.

So where are you pulling your core teams from? I mean, is

that pool of talent like really small now and how long will it take to grow that

pool?

MR. TAYLOR: So the core teams are principally in our

advanced reactor DANU Division. They are staffed within that division already.

So they're inculcated with the thinking, the approach that we want to take from

the beginning. So they're constantly getting trained and broug ht up to speed

even before they're put on a core team relative to that.

So we have a constant training and development program as

part of those activities. And then when we build the core team, w e t r y t o m a k e

sure that core team has a lot of diversity with regards to expe rience and

capabilities and backgrounds and things like that so we that we come at a

project from all aspects and that we challenge ourselves suffic iently.

So, yes, it's a challenge. We put the best mitigating

measures we think we can in place.

COMMISSIONER WRIGHT: So one of the things -- the

reason I'm bringing it up and wanted to kind of address it. Bu rnout has been

something that I've heard that you've had people who have been really

intensely engaged in maybe rulemakings and other things that th ey are tasked

with, right?

And then on top of that, they're doing this. And so you take a

burned out person here, and they're already burned out when the y're going to

work for something else. Is that really being addressed now wh ere we're

relieving that?

MR. TAYLOR: So we're doing our best. Staffing continued to

be a challenge. We're understaffed relative to the budget as w e try to hire the 87

critical skill set. So we've done a great job of hiring. I th ink we need more work

on some critical skill sets as we work on it.

And those are the ones that are very difficult to compete with

externally. So, yes, there are staff who are highly capable, v ery talented and

can work on multiple projects. And we try to manage the burnou t and we try to

keep, you know, that positive work-life balance going and stuff like that.

So we focus on it, and we do the best that we can. And if it

ever comes to a person versus schedule, we're going to make the decision to

protect the person. We care about our people enough. We need them in the

long-term. We can't ruin them in the short-term just for one s uccess.

We'll adjust. We'll figure it out and balance.

COMMISSIONER WRIGHT: Well, I appreciate it. And I know

it's difficult. And we're aware, you know, at the Commission level. And, again, I

know I'm not speaking for all of them because I can't, but I kn ow they probably

share the same feeling. And that is whatever we have to addres s that we need

to do to help there, please keep us informed on that because so metimes I feel

like we get to it late, you know? And I don't think it's on pu rpose, but we want to

help in any way we can.

MR. TAYLOR: I think one of the most important things is to

collect the data on why staff leave and understand that data an d then figure out

how to act on the data.

MR. MORRIS: This is a segue of what I was going to offer is

that it's not just about hiring and training. It's about reten tion. And you now,

because we've had the conversation about retention related acti vities. We're

doing another critical skills for other critical skill sets. B ut this is one of them.

COMMISSIONER WRIGHT: Okay. Thank you so much.

CHAIR HANSON: Thank you. Thank you all for your 88

presentations. Thanks for our first panelists. Many of them a re still here in the

room. Thanks to my colleagues. I think we had a good discussi on this

morning. We covered a lot of really meaty topics. I think thi s is a really

intriguing area and there is a lot of growth and innovation tha t is happening

here. I think we're really seeing the benefits of a lot of the students who are

engaged in this.

I mean, one of the great things about the University of

Maryland program is not only can you use that little reactor to do your PhD

work, but if I remember correctly, Amber told me once that even at, you know, a

reprobate humanities major like me can go and get a reactor lic ense, an

operator license at the University of Maryland, which is pretty great as well in

terms of bringing students into this field.

So I really appreciate the discussion and with that, we are

adjourned.

(Whereupon, the above-entitled matter went off the record.)