ML21165A243

Enclosure 2 - SRM-COMCTH-21-0002 - Fiscal Years 2022-2026 Strategic Plan, Appendix a, Key External Factors

ML21165A243
Person / Time
Issue date:	06/14/2021
From:	Carla Roque-Cruz NRC/EDO
To:
Carla Roque - Cruz, EDO
References
SRM-COMCTH-21-0002
Download: ML21165A243 (3)

Text

Fiscal Years 2022-2026 Strategic Plan Appendix A, Key External Factors Appendix A, Key External Factors Many external factors influence the ability of the U.S. Nuclear Regulatory Commission (NRC) to achieve its strategic goals and the associated objectives. These factors include industry operating experience, national priorities, climate change impacts, the security and threat environment, legislation, Federal court litigation, market trends, new technologies, public health emergencies, and resource availability. This appendix discusses the most significant of these factors. The NRC will strengthen its ability to manage change and respond promptly to shifts in agency priorities necessitated by these future planning challenges. The agency will also make efforts to influence those factors that enable the achievement of its strategic objectives, where appropriate. The agency performs an annual environmental scan to identify key external factors that will influence the agencys workload and workforce over a 5-year period.

Market Pressure on Operating Plants and License Applications Many factors apply market pressure to the nuclear industry, which, in turn, affects the business operations of operating facilities and license applicants subject to NRC jurisdiction. For example, supply and demand fundamentals driven by competition from alternative energy sources (e.g., natural gas) may increase the competitive landscape and reduce operating margins. Challenges in financial and insurance markets, Federal and State taxation and regulatory policies, and aging technologies may also affect operating costs. Additionally, the effects of climate change can have an impact on existing energy infrastructure, as well as the development and use of new facilities. These factors, in turn, can affect NRC operating budgets and priorities. The NRC must be prepared with the regulatory infrastructure to support areas such as decommissioning of older or uneconomic operating plants, changes in exports and imports in an increasingly global economy, and licensing of new technologies and facilities.

Globalization and Development of Nuclear Technology Technological changes may affect the development of advanced nuclear systems and support infrastructure, resulting in market changes and other impacts on industry activities subject to NRC jurisdiction. Increased globalization effects of nuclear technology, including small modular reactors, could increase competition in the nuclear supply chain and, therefore, affect operating costs across the nuclear industry and increase the complexity of regulatory oversight. In addition to operating and regulatory impacts on the domestic nuclear industry, globalization necessitates enhanced cooperation between the United States and international organizations for licensing activities, training, development and implementation of codes and standards, and conventions and treaties to ensure safe and secure use of nuclear technology.

Security Threats and Significant Incidents Going into the future, the U.S. national security landscape is likely to be more dynamic, encompassing a full range of threats and incidents, including the identification of and protection against cyber threats and physical security threats such as nuclear proliferation, robotics and unmanned aerial systems, and terrorism. As a result, the regulatory approach needed to ensure the safety and security of nuclear materials and infrastructure is expected to continue to evolve.

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A significant incident at a nuclear facility, whether caused by adversaries, natural disaster, or other factors, could cause the agency to reassess its safety and security requirements, affect the agencys focus and include extensive interactions with other partners. Given the high level of public interest in the safe and secure use of radioactive materials, even events of low safety significance could require a response that involves considerable agency resources. The NRC must anticipate and be prepared for an operational and regulatory response to threats and incidents involving NRC-licensed nuclear infrastructure.

Government and Regulatory Impacts Actions taken by Congress or other Executive Branch agencies may affect the NRC, either directly or indirectly by affecting the behavior of NRC stakeholders. Actions could impact areas such as investment in new technology, operation and oversight of an aging reactor fleet, or other NRC policies and initiatives.

International Treaties and Conventions The ratification by the United States of international instruments related to the safety of nuclear facilities or radioactive materials could potentially impose binding provisions on the Nation and the corresponding governmental agencies, such as the NRC.

Workforce Dynamics The agencys most valuable resource is its staff, and its ability to recruit, hire, train, motivate, and retain qualified staff in a competitive job market is critical to meeting its strategic goals.

Workforce changes such as greater diversity, employee expectations for more flexibility in work locations and schedules, and an increased frequency of job changes during careers will require the NRC to better understand and meet the needs of its employees and become a more flexible and agile organization.

Information Technology Advances The NRC continues to build a flexible, agile, and innovative Information Technology (IT) and Information Management environment that is prepared for the rapid development of new technologies and changes in the nuclear industry. Technological advances continue to change the way the agency works and interacts with stakeholders. The increased use of social media, virtual meetings, data analytics, cloud computing, and Artificial Intelligence will improve efficiency and provide support for the workforce. These activities increase dependency on a robust and resilient network and IT infrastructure. The NRC will need to gain knowledge and expertise for a wide range of skills and capabilities such as Artificial Intelligence and data literacy, to continue expanding the use of data for decision-making in the agency.

The NRC continues its efforts to strategically plan, modernize the agency IT systems, integrate the use of IT systems and applications throughout the agency, and increase internal capacity to gather, define, evaluate, analyze, link, and present data to support decision-making.

Maintaining the secure use and protection of sensitive and proprietary information will be a challenge given the increased use of mobile devices, alternative data-storage options, new communication technologies, and the increased use of telecommunication. The NRC needs to be prepared for the heightened risk that sensitive information held by the agency or its licensees 2

may be lost, misplaced, or intercepted and fall into the hands of unauthorized users. The agency will need to maintain a knowledgeable workforce capable of addressing these cybersecurity challenges. Additionally, the agency will see an increased demand for cybersecurity external auditing, risk reporting, automated real-time risk assessment and mitigation, and a continuation of cybersecurity workforce shortage.

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