2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page i**  U.S. NUCLEAR REGULATORY COMMISSION2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page ii**  U.S. NUCLEAR REGULATORY COMMISSION

## TAB LE OF CONTENTS

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page iii**  U.S. NUCLEAR REGULATORY COMMISSION

## TAB LE OF CONTENTS

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page iv**  U.S. NUCLEAR REGULATORY COMMISSION

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2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page v**  U.S. NUCLEAR REGULATORY COMMISSION CONTENTS

Executive Summary

................................ ................................ ................................ ................................ ............................... 1

Proposed FY 2014 Appropriations Legislation

................................ ................................ ................................ ..................... 1 7 Salaries and Expenses

................................ ................................ ................................ ................................ ............ 1 9

Of fice of the Inspector General

................................ ................................ ................................ ............................. 1 9 Analysis of Proposed FY 20 14 Appropriations Legislation

................................ ................................ ..................... 1 9

Nuclear Reactor Safety

................................ ................................ ................................ ................................ ........................ 23
Program Resource Summar y

................................ ................................ ................................ ................................ . 25
Operating Reactors

................................ ................................ ................................ ................................ ................ 26

New Reactors

................................ ................................ ................................ ................................ ........................ 4 3

Nucle ar Materials and Waste Safety

................................ ................................ ................................ ................................ ... 5 3
Program Resource Summary

................................ ................................ ................................ ................................ . 5 6

Fuel Facilities

... ................................ ................................ ................................ ................................ ...................... 5 7

Nuclear Materials Users

................................ ................................ ................................ ................................ ........ 6 8
Spent Fu el Storage and Transportation

................................ ................................ ................................ ................. 7 9

Decomm i s sioning and Low

- Level Waste

................................ ................................ ................................ ............... 8 8

Performance Measu re ment

................................ ................................ ................................ ................................ ................ 9 7 Relating Goals to Resources

................................ ................................ ................................ ................................ .. 9 9 Safety Performance Measures

................................ ................................ ................................ ............................ 100

S ecurity Performance Measures

................................ ................................ ................................ ......................... 102

Data Collection Procedures for Verification and Valida t ion of Perfo rmance Measures

................................ .... 104

Off ice of the Inspector General

................................ ................................ ................................ ................................ ......... 1 23
Program Resou rce Summary

................................ ................................ ................................ ............................... 1 2 6

Audits

... ......... ................................ ................................ ................................ ................................ ...................... 1 2 6
Investigations

................................ ................................ ................................ ................................ ...................... 1 31 OIG Program Performance Measures

................................ ................................ ................................ ................. 1 3 9

Appendix I: Budget Authority by Function

................................ ................................ ................................ ........................ 1 4 5

Appendix II: Corporate Support

................................ ................................ ................................ ................................ ........ 1 4 9
Acquisitions

................................ ................................ ................................ ................................ ......................... 1 53

Administrative Services

................................ ................................ ................................ ................................ ....... 15 4 Financial Management

................................ ................................ ................................ ................................ ........ 15 5 Generic Homeland Security

................................ ................................ ................................ ................................ . 15 6
Human Resources Management

................................ ................................ ................................ ......................... 15 7 Information Management

................................ ................................ ................................ ................................ ... 15 9 Information Technology

................................ ................................ ................................ ................................ ...... 1 60

Outreach

................................ ................................ ................................ ................................ .............................. 1 62 Policy Support

................................ ................................ ................................ ................................ ...................... 1 63

Appendix III: Reimbursable Work

................................ ................................ ................................ ................................ ...... 16 9

Appendix IV: Estimated Fee Recovery

................................ ................................ ................................ ............................... 1 73

Appendix V: Report on Drug Testing

................................ ................................ ................................ ................................ . 17 7

Acronym List.........

............ ................................ ................................ ................................ ................................ ................... 1 81

## TAB LE OF CONTENTS

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page vi**  U.S. NUCLEAR REGULATORY COMMISSION TABLES

Total NRC Budget Authority by Appropriation

................................ ................................ ................................ ...................... 5

Bu dget Authority and Full Time Equivalents

................................ ................................ ................................ ......................... 6 Nuclear Reactor Safety

................................ ................................ ................................ ................................ .......................... 7 Nuclear Materials and Waste Safety

................................ ................................ ................................ ................................ ... 10 OIG Budget

................................ ................................ ................................ ................................ ................................ .......... 14 Nuclear Reactor Safety

................................ ................................ ................................ ................................ ........................ 25
Operating Reactors by Product Line

................................ ................................ ................................ ................................ .... 26
Op erating Reactors Output Measures

................................ ................................ ................................ ................................ . 3 7 New Reactors by Product Line

................................ ................................ ................................ ................................ ............. 4 3
New Reactors Output Measures

................................ ................................ ................................ ................................ .......... 50

Nucle ar M aterials and Waste Safety

................................ ................................ ................................ ................................ ... 5 6

Fu el Facilities by Product Line

................................ ................................ ................................ ................................ .............. 5 7

Fu el Facilities Output Measures

................................ ................................ ................................ ................................ .......... 6 5 Nuclear Materials Users by Product Line

................................ ................................ ................................ ............................. 6 8

Nucle ar Ma terials Users Output Measures

................................ ................................ ................................ ......................... 7 6 Spent Fuel Storage and T ransportation by Product Line

................................ ................................ ................................ ..... 7 9 Spent Fuel Storage and T ransportation Output Measures

................................ ................................ ................................ .. 8 6 Decommissioning and Lo w

- Level Waste by Product Line

................................ ................................ ................................ .... 8 8 Decommissioning and Low

- Leve l Waste Output Measur es

................................ ................................ ................................ 93 Alignm ent of Resources to NRC Goals

................................ ................................ ................................ ............................... 100 Safety Performance Measures

................................ ................................ ................................ ................................ ........... 100 Security Performance Measures

................................ ................................ ................................ ................................ ........ 102
Goals, Performance Measures, a nd Programs Crosswalk

- Safety

................................ ................................ ...................... 11 7
Goals, Performance Measures, an d Programs Crosswalk

- Security

................................ ................................ ................... 1 21 OIG Budget Overview

................................ ................................ ................................ ................................ ........................ 12 5 OIG Budget Authority and Full Time Equivalents

................................ ................................ ................................ .............. 1 2 6

Audits

................................ ................................ ................................ ................................ ................................ ............. 12 6
Investigat ions

................................ ................................ ................................ ................................ ................................ ..... 1 31

OIG Program Performance Measures

................................ ................................ ................................ ................................ 13 9 FY 2014 Office of the Inspector General Budget Resourc es Linked to Strategic Goals

................................ ..................... 1 43 Allocation of Support Co sts to OIG Program s

................................ ................................ ................................ .................... 1 44 Budget Authority by Function

................................ ................................ ................................ ................................ ............ 14 7
Corpor ate Support by Business Line

................................ ................................ ................................ ................................ .. 1 51 Corporate Support Budget Authority and Full

- Time Equivalents by Product Line

................................ ............................ 1 52
Corpo rate Support Output Measures

................................ ................................ ................................ ................................ 16 4 Summary of Reimbursable Work

................................ ................................ ................................ ................................ ....... 1 71

Estimated Fe e Recovery

................................ ................................ ................................ ................................ .................... 1 75

## TAB LE OF CONTENTS

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page vii**  U.S. NUCLEAR REGULATORY COMMISSION FIGURES

Figure 1. U.S. Operating Commercial Nuclear Power Reactors

................................ ................................ ............................. 8
Figure 2. Agreement States

................................ ................................ ................................ ................................ ................. 11 Figure 3. Location of New Nuclear Power Reactors Applications

................................ ................................ ........................ 4 4

Fi gure 4. Locations of Fuel Cycle Facilities

................................ ................................ ................................ ........................... 5 72014 CONGRESSIONAL BUDGET JUSTIFICATION **Page viii**  U.S. NUCLEAR REGULATORY COMMISSION

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 1**  U.S. NUCLEAR REGULATORY COMMISSION

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 2**  U.S. NUCLEAR REGULATORY COMMISSION

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 3**  U.S. NUCLEAR REGULATORY COMMISSION EXECUTIVE SUMMARY

The mission of t he U.S. Nuclear Regulatory Commission is to license and regulate the Nation’s civilian use of
byproduct, source, and special nuclear materials to ensure adequate protection of public health and safety,
promote the common defense and security, and protect t he environment.

The U.S. Nuclear Regulatory Commission (NRC) is an independent Federal agency established to license and regulate the Nation’s civilian use of byproduct, source, and special nuclear materials (SNM) to ensure adequate protection of public health and safety, promote the common defense and security, and protect the environment. The NRC has formulated its fiscal year (FY) 2014 Congressional Budget Justification to support the agency’s Safety and Security strategic goals and objectives.

The N RC’s Safety goal is to ensure adequate protection of public health and safety and the environment. The agency’s safety program outcomes are to prevent the occurrence of any nuclear reactor accidents, inadvertent criticality events, acute radiation exposur es, or significant releases of

radioactive materials. The Security goal is to ensure the secure use and management of radioactive

materials. The security program outcomes are to prevent any instances in which licensed radioactive

materials are used in a host ile manner in the United States and prevent unauthorized public disclosures of classified or safeguards information through quality measures.

The NRC’s critical functions are to ensure the safe and secure use of byproduct, source, and SNM in

the Unit ed States and to protect both the public and workers from radiation hazards that could result from the use of radioactive materials. The NRC’s principal regulatory functions are to establish regulatory requirements and conduct confirmatory research to sup port requirements; issue licenses to facility owners, possessors, and users of nuclear materials; inspect these licensees to ensure they are in compliance with NRC requirements and that they operate safely and securely; and take appropriate

enforcement act ion for violations of regulatory requirements.

Following the Fukushima Dai

- ichi accident, the NRC established a task force (Near

- Term Task Force, or NTTF) to conduct a systematic and

methodical review of the NRC’s processes and regulations to

determine w hether the agency should make additional improvements to its regulatory system and to make

recommendations to the Commission for its policy direction. The NTTF

identified near

- term actions that the agency should consider to enhance safety. In FY 2014, th e NRC will

conduct Commission

- approved

activities associated with the near

- term recommendations, as well as evaluating safety improvements identified as part of the longer term effort.

The NRC regulates every aspect of the civilian use of nuclear mater ials, from the processing of uranium ore to the disposal of radioactive waste. This includes all the steps and the facilities involved in the

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 4**  U.S. NUCLEAR REGULATORY COMMISSION nuclear fuel cycle: (1) extraction of the uranium from ore, (2) conversion of the uranium into a form

suitable f or enrichment, (3) enrichment of the uranium to a level and type suitable for nuclear fuel, and (4) fabrication of the enriched uranium into fuel assemblies for use in reactors. The fuel assemblies are used in nuclear reactors; when they are no longer eff icient for reactor operations, they are removed

from the reactors and stored as waste.

Since October 2007, the NRC has received 18 applications (including Watts Bar, Unit 2) to construct and operate new nuclear power reactors. Five different reactor des igns are r eferenced in these applications. T he NRC has issued two design certifications (DCs) and is currently reviewing three design applications for certification. Approved DC s reduce the time required to approve a power reactor license application whe n a previously certified reactor design is used. If and when new power reactors are brought on line, they will substantially increase U.S. electrical generating capacity. The resurgence of interest in the construction of new nuclear power plants also has resulted in applications to construct and operate facilities for the manufacturing of nuclear fuel (e.g., uranium milling and enrichment). The NRC will perform safety, security, and environmental reviews of enrichment facilities,

a uranium deconversion f acility, and uranium recovery facilities.

The NRC ensures safety and security by licensing and overseeing nuclear waste and spent fuel storage facilities, certifying storage and transportation containers, and responding to events, as well as through decon tamination and decommissioning activities. Additionally, security plans, emergency preparedness, and security testing are a major part of the licensing, oversight, and other regulatory activities that provide high assurance of physical security for nuclea r facilities and materials. The NRC further enhances its regulatory program through coordination and cooperation with other Federal agencies, States, and international organizations and governments.

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 5**  U.S. NUCLEAR REGULATORY COMMISSION 

### OVERVIEW OF THE FY 2 **014 NRC CONGRESSIONA L BUDGET JUSTI**  **FICATION**

The NRC’s FY 2014 Congressional Budget Justification provides the necessary resources for the Nuclear Reactor Safety and Nuclear Materials and Waste Safety Programs to carry out the agency’s mission and to achieve the stated goals and desired out comes for the American public. The NRC’s proposed FY 2014 budget is $1,055.0 million, including 3,9 19 full

- time equivalents (FTE), which represents a n increase of $16.9 million, including a decrease of 57 FTE, when compared with the

FY 2012 enacted budget

.

The Nuclear Reactor Safety Program increases by $12.3 million, including a decrease of 40 FTE; the Nuclear Materials and Waste Safety Program increases by $4.4 million, including a decrease of 1 1 FTE,

when the FY 2014 request is compared with the FY 201 2 enacted budget. Collectively, the Nuclear Reactor Safety and Nuclear Materials and Waste Safety Programs have an overall funding increase of $16.7 million, including a decrease of 5 1 FTE, when compared with the FY 2012 enacted budget.

The Office of the Inspector General’s (OIG’s) component of the FY 2014 proposed budget is $11.1 million, and it includes resources to carry out its mission to independently and objectively conduct audits and investigations to ensure the efficiency and integrity of NRC prog rams and operations and to promote cost

- effective management.

Under the provisions of the Omnibus Budget Reconciliation Act of 1990, as amended, the NRC’s

FY 2014 budget provides for 90

- percent fee recovery, less the amounts appropriated for (1) Waste

Inc idental to Reprocessing Activities under Section 3116 of the Ronald W. Reagan National Defense

Authorization Act for Fiscal Year 2005 and (2) generic homeland security activities.

Total NRC Budget Authority by Appropriation (Dollars in Millions)

FY 2012

Enacted *FY 2013

Annualized
CR FY 2014
Request Delta

FY 2014

– FY
2012

NRC Appropriations $M $M $M $M

Salaries and Expenses (S&E)

Budget Authority 1,027.2 1,033.0 1043.9 16.7

Offsetting Fees 899.7 905.0 920.7 21.0

Net Appropriated S&E 127.5 128.0 1 23.2 (4.3)

Office of the Inspector General

Budget Authority 10.9 11.0 11.1 0.2

Offsetting Fees 9.8 10.0 10.0 0.2

Net Appropriated OIG 1.1 1.0 1.1 0.0

Total NRC ($M)

Budget Authority 1,038.1 1,043.0 1,055.0 16.9

Offsetting Fees 909.5 915.0 93 0.7 21.2

Total Net Appropriated $128.6 129.0 $124.3 ($4.3)

( Numbers may not add due to rounding. *FY 2013 Annualized CR is estimated based on OMB MAX which is rounded)

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 6**  U.S. NUCLEAR REGULATORY COMMISSION Budget Authority and Full

- Time Equivalents

FY 2012

Enacted FY 2014
Request Delta

F Y 2014

– FY 2012

Major Programs $M FTE $M FTE $M FTE

Operating Reactors 534.7 2,100.4 571.9 2,120.0 37.2 19.6

New Reactors 26 5.4 924.6 240.5 865.5 (24.9) (59.1)

Nuclear Reactor Safety

Subtotal $800.1 3,025.0 $812.4 2,985.5 $12.3 (39.6)

Fuel Facilities 56.1 228.4 60.2 237.7 4.1 9.3

Nuclear Ma terials Users 93.0 344.7 86.9 318.7 (6.1) (25.9)

Spent Fuel Storage and

T ransportation 40.8 155.1 45.4 160.7 4.6 5.6

Decommissioning and

Low

- Leve l Waste (LLW) 37.3 142.1 39.0 142.1 1.8 (0.0)

Nuclear Materials and

Waste Safety Subtotal $227.1 870.4 $231.5 859.2 $4.4 (11.1)

Inspector General 10.9 58.0 11.1 58.0 0.2 0.0

Subtotal $10.9 58.0 $11.1 58.0 $0.2 0.0

Reimbursable FTE 22.9 16.4 (6.5)

Total $1,038.1 3,976.3 $1,055.0 3,919.1 * $ 16.9 (57.2)

Numbers may not add due to rounding. *The total FTE reported in this document is correct whereas the FTE total for FY 2014 shown in the President’s Budget Appendix reflects an NRC data entry error that does not include the reimbursable FTE

.

Accordingly, $930.7 million of the FY 2014 budget will be recovered from fees assessed to NRC licensees. This will result in a net appropriation of $124.3 milli on, which is a decrease of $4.3 million in net appropriations when compared with the FY 2012 enacted budget. In accordance with the requirements in Section 51.2 of the Office of Management and Budget (OMB) Circular A

- 11, “Requirements for Program Justific ation,” the NRC is providing the full cost of its programs.

T he NRC’s FY 2014 budget request includes a 1

- percent provisional estimate of the pay raise for January 2014. The FY 2014 budget contains FTE savings in office support functional areas of

admini strative services, human resources, information management, information technology (IT), and financial management (including contract management). The FTE savings are possible because the

NRC is i mplementing cost

- conscious business solutions to eliminate duplicative processes in agency support functions.

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 7**  U.S. NUCLEAR REGULATORY COMMISSION 

## NUCLEAR REACTOR SAFE **TY**

Nuclear Reactor Safety (Dollars in Millions)

FY 2012

Enacted FY 2014
Request Delta

FY 2014

– FY 2012

Business Line $M FTE $M FTE $M FTE

Operating

Reactors 534.7 2,100.4 571.9 2,120.0 37.2 19.6

New Reactors 265.4 924.6 240.5 865.5 (24.9) (59.1)

Total $800.1 3,025.0 $812.4 2,985.5 $12.3 (39.6)

Numbers may not add due to rounding.

The Nuclear Reactor Safety Program encompasses the NRC’s efforts to license, regulate, and oversee civilian nuclear powe r, research and test reactors in a manner that adequately protects public health and safety and the environment. This program also provides high assurance of the physical security of facilities and protection against radiological sabotage. This program c ontributes to the NRC’s Safety and Security goals through the activities of the Operating Reactors and New Reactors Business Lines that regulate existing and new nuclear reactors to ensure their safe operation and physical security.

Overall resources requ ested in the FY 2014 budget for the Nuclear Reactor Safety Program are $812.4 million, including 2,985.5 FTE. This funding level represents an overall increase of $12.3 million, including a decrease of 39.6 FTE, when compared with the FY 2012 enacted budg et.

An explanation of the changes between the FY 2014 and FY 2012 enacted budget levels is provided in the program chapters of this budget for each business line.

**O PERATING**  **R EACTORS** 

The Operating Reactors Business Line supports the licensing, oversight, rulemaking, international activities, research, generic homeland security, and event response associated with the safe and secure operation of 104 civilian nuclear power reactors and 31 research and test reactors (RTRs). The

FY 2014 budget request for Op erating Reactors is $571.9 million, including 2,120 FTE. This funding level represents an overall increase of $37.2 million, including 19.6 FTE, when compared with the

FY 2012 enacted budget. Resources increased to support the implementation of the Fukus hima

Near

- Term Task Force (NTTF) recommendations that included a shift from New Reactors to Operating

Reactors. Other increases support National Fire Protection Association Standard 805 (NFPA 804) license amendment request (LAR) reviews, license renewals, implementation of the congressionally

mandated Force

- on

- Force program, replacement of the agency’s Reactor Program System, and

Commission

- directed medium priority rules. The major activities that the requested resources will support include the following :

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 8**  U.S. NUCLEAR REGULATORY COMMISSION • Continue implementation and review of Fukushima NTTF recommendations for Tier 1, 2, and 3.

• Complete 900 licensing actions (200 Fukushima

- related), including reviewing approximately 11 extended power uprates and approximately 22 National Fire Pr otection Agency Standard 805 ongoing reviews.

• Complete 500 other licensing tasks and related activities, including assistance to the regions, interactions with vendors, industry and owners’ groups, and 20 technical topical report reviews that resolve gener ic issues and reduce the topical reports backlog.

• Continue inspection activities for the 104 operating nuclear power plants.

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 9**  U.S. NUCLEAR REGULATORY COMMISSION • Conduct 14 active high

- priority rulemakings (including 3 high

- priority rulemakings related to the Fukushima event), review an estim ated 22 active petitions for rulemaking (PRM), and close 8

PRMs. Develop regulatory bases activities and regulatory analysis guidance updates, and support rulemaking infrastructure.

• Support the replenishment of potassium iodide tablets in States where the y are due to expire in

FY 2013.

• Conduct research associated with digital instrumentation and control systems and electrical

research.

• Evaluate areas of steam generator tube integrity to include (1) inspection reliability, (2) inservice inspection technolog y effectiveness, and (3) steam generator tube corrosion and degradation

evaluation.

• Conduct research on irradiation

- assisted corrosion cracking to shorten the amount of time required to obtain all necessary data and to support long

- term operation efforts.

• Conduct research on materials degradation, particularly as it relates to license renewal.

• Develop implementation strategy for use of probabilistic risk

- assessment tools to support the Reactor Oversight Process and other risk

- informed agency decision proces ses.

**N EW**  **R EACTORS** 

The New Reactors Business Line supports the licensing, oversight, rulemaking, international activities, and research associated with the safe and secure development of new power reactors from design, site approval, and construction to op erational status. The FY 2014 budget request for New Reactors is $240.5 million, including 865.5 FTE. This funding level represents an overall decrease of $24.9 million, including 59.1 FTE, when compared with the FY 2012 enacted budget. The decrease is p rimarily due to a shift in resources from the New Reactor Business Line Licensing to the Operating Reactor Business Line to support Fukushima NTTF, and, reduced activity related to combined operating licenses (COLs) and DCs as the result of improved projec tions based on historical workload data. The major activities that the requested resources will support include the following:

• Provide licensing and hearing support for eight COLs ) under Title 10 of the Code of Federal Regulations (10 CFR) Part 52, “ Licensing, Certifications, and Approvals for Nuclear Power Plants,” licensing reviews for Watts Bar, Unit 2, and Bellefonte under 10 CFR Part 50, “Domestic Licensing of Production and Utilization Facilities.”

• Complete the review of two DCs, continue revi ew of one DC and one DC renewal, and start the

review of one DC renewal and two small modular reactors.

• Continue review of two large, light

- water reactors and begin the review of one advanced reactor early site permit (ESP).

• Continue advanced reactor pre

- application activity for one construction permit, two DCs, and for one ESP application.

• Continue work to address the impact of findings from the Fukushima NTTF recommendations for new reactor designs.

• C o ntinue oversight activities at six reactors under con struction.

• Provide support to mitigate schedule impacts to multiple COL applications by ensuring the availability of staff support for mandatory hearings.

• Provide support for inspections and for the closure of Inspections, Tests, Analyses, and Acceptance Criteria closure.

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 10**  U.S. NUCLEAR REGULATORY COMMISSION 

### NUCLEAR MATERIALS AN **D WASTE SAFETY**

Nuclear Materials and Waste Safety (Dollars in Millions)

FY 2012

Enacted FY 2014 Request Delta

FY 2014

– FY 2012

Business Line $M FTE $M FTE $M FTE

Fuel Facilities 56.1 228.4 60.2 237.7 4.1 9.3

Nuclear Materials Users 93.0 344.7 86.9 318.7 (6.1) (25.9)

Spent Fuel Storage and Transportation 40.8 155.1 45.4 160.7 4.6 5.6

Decommissioning and LLW 37.3 142.1 39.0 142.1 1.8 (0.0)

Total $227.1 870.4 $231.5 859.2 $4.4 (11.1)

Numbers may not add due to rounding.

The Nuclear Materials and Waste Safety Program encompasses the NRC’s effort to license, regulate, and oversee nuclear materials and waste in a manner that adequately protects public health and safety and the environment. This program provides high assurance of physical security of the most risk

- significant materials and waste and protection against radiological sabotage, theft, or diversion of nuclear materials. Through this program, the NRC regulate s uranium processing and fuel facilities; nuclear fuel research and pilot facilities; nuclear materials users (medical, industrial, research, and academic); spent fuel storage; spent fuel storage casks and transportation packaging; decontamination and deco mmissioning of facilities; and low

- level and high

- level radioactive waste. The program contributes to the NRC’s Safety and Security goals through the activities of the Fuel Facilities, Nuclear Materials Users, Spent Fuel Storage and Transportation, and

De commissioning and Low

- Level Waste Business Lines regulating byproduct, source, and SNM.

Overall resources requested in the FY 2014 budget for the Nuclear Materials and Waste Safety Program are $231.5 million, including 859.2 FTE. This funding level repre sents an overall increase of $4.4 million, including a decrease of 11.1 FTE, when compared with the FY 2012 enacted budget.

**F UEL**  **F ACILITIES** 

The Fuel Facilities Business Line supports licensing, oversight, rulemaking, international activities, research, g eneric homeland security, and event response associated with the safe and secure operation of various operating and new fuel facilities, such as conversion, enrichment, fuel fabrication facilities, and nuclear fuel research facilities. The FY 2014 budget request for Fuel Facilities is $60.2 million, including 237.7 FTE. This funding level represents an overall increase of $4.1 million, including 9.3 FTE, when compared with the FY 2012 enacted budget. The major activities that the requested resources will support include the following:

• Conduct licensing actions for 14 major fuel cycle facilities and 17 minor facilities licensees under

10 CFR Part 70. Provide inspection oversight for approximately 8 existing facilities and 4 new

facilities either under construction or operation. Complete approximately 80 new licenses, license renewals, license amendments, and safety and safeguard reviews for fuel cycle facilities annually.

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 11**  U.S. NUCLEAR REGULATORY COMMISSION • Review license amendments for AREVA Eagle Rock Enrichment Facility (AREVA), Gener al

Electric

- Hitachi Laser Enrichment Facility (GE

- Hitachi), and International Isotopes Deconversion Facility (INIS) before initial operations.

• Conduct inspection efforts for new facilities at the Mixed

- Oxide Fuel Fabrication Facility, AREVA, GE

- Hitachi, an d INIS.

• Develop and test a risk

- informed Fuel Cycle Oversight Process to enhance the oversight infrastructure development.

• Engage in rulemaking activities related to security at fuel facilities

**N UCLEAR**  **M ATERIALS**  **U SERS** 

The Nuclear Materials Users Busine ss Line supports the licensing; oversight; rulemaking; international activities; research; generic homeland security; event response; and State, Tribal, and Federal Program activities associated with the safe and secure possession, processing, handling, an d use of nuclear materials for the many and diverse uses of these materials. The FY 2014 budget request for Nuclear Materials Users is $86.9 million, including 318.7 FTE. This funding level represents an overall decrease of $6.1 million, including 25.9 F TE, when compared with the FY 2012 enacted budget. The major activities that the requested resources will support include the following:

• Conduct licensing, inspection, event evaluation, research, incident response, allegation, enforcement, import and exp ort authorizations, rulemaking activities, and major IT systems to maintain the regulatory safety and security infrastructure needed to process and handle nuclear

materials.

• Complete approximately 2,300 materials licensing actions and 1,000 routine health and safety inspections and conduct security inspections of Agreement State licensees.

• Continue work on approximately four to six materials rulemakings.

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 12**  U.S. NUCLEAR REGULATORY COMMISSION • Continue development of the Integrated Source Management Portfolio to integrate the three systems that l icense and track sources and radioactive materials under one management

mechanism. This development effort is vital to forming a comprehensive national materials license repository.

• Conduct materials oversight for Agreement States, including program revie ws, technical assistance, regulatory development, and cooperative efforts. Funds also provide for Agreement State staff training and travel.

**S PENT**  **F UEL**  **S TORAGE AND**  **T RANSPORTATION** 

The Spent Fuel Storage and Transportation Business Line supports the licens ing, oversight, rulemaking, international activities, research, and generic homeland security associated with the safe and secure storage and transportation of spent nuclear fuel (SNF). The FY 2014 budget request for Spent Fuel Storage and Transportation is $45.4 million, including 160.7 FTE. This funding level represents an overall increase of $4.6 million, including 5.6 FTE, when compared with the FY 2012 enacted budget. The major activities that the requested resources will support include:

• Conduct s afety inspections of transportation packages, storage cask vendors and fabricators, independent spent fuel storage installation (ISFSI) operations, security inspections of SNF ISFSIs, and transportation and route surveys.

• Participate in a U.S. cask demonst ration and monitoring program of extended dry cask storage with high

- burnup fuel and perform a security assessment scoping study to identify additional regulatory and technical needs for an extended storage and transportation security framework.

• Develop an environmental impact statement (EIS) to support a revised Waste Confidence

decision rule. This EIS will address the Court decision to vacate the Waste Confidence decision

and rule.

• Continue research on technical issues associated with very long

- term dr y spent fuel storage; such as concrete degradation; weld corrosion; impacts of high

- burnup and mixed

- oxide fuels; climate change effects on cask performance; transportability of fuel after long

- term storage; and the need for an improved hazards assessment, including the potential impact of long

- term storage on eventual disposal.

• Perform analysis, data collection, and modeling for future alternate strategies for disposal of spent fuel and high

- level waste, including laboratory studies and field investigatio ns needed to understand key technical issues and risk insights, technical inputs to resolve regulatory gaps, use of a performance assessment scoping tool for risk insights, and continued coordination of alternative disposal strategies with other aspects of the back end of the fuel cycle.

• Monitor national level developments stemming from the January 2012 report of the Blue Ribbon Commission on America’s Nuclear Future and the Department of Energy response.

**D ECOMMISSIONING AND**  **L OW** 

**- L**  **EVEL W**  **ASTE**

The Decommissi oning and Low

- Level Waste Business Line supports the licensing, oversight, rulemaking, international activities, and research associated with the safe and secure operation of uranium recovery facilities, removal of a nuclear facility from service and reduc tion of residual radioactivity to a level that permits termination of the NRC license, and the disposition of low

- level

radioactive waste from all civilian sources. The FY 2014 budget request for Decommissioning and

Low

- Level Waste is $39.0 million, inclu ding 142.1 FTE. This funding level represents an overall

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 13**  U.S. NUCLEAR REGULATORY COMMISSION increase of $1.8 million, and the FTE remains level, when compared with the FY 2012 enacted budget. The major activities that the requested resources will support include the following:

• Support pr oject management, financial, technical, safety, and environmental reviews for the licensing of new and existing uranium recovery facilities; the decommissioning of power reactors, RTRs, complex materials sites, and inactive uranium recovery facilities; and interfaces with licensees, applicants, Federal and State agencies, the public, other stakeholders, and

Native American Tribal Governments.

• Monitor certain DOE waste determination activities and plans consistent with the NRC’s responsibilities in the Rona ld Reagan National Defense Authorization Act for Fiscal Year 2005. This Act requires DOE to consult with the NRC on its waste incidental to reprocessing determinations for facilities in South Carolina and Idaho, as well as the NRC’s monitoring

activities at those sites.

• Regulate and oversee LLW activities, including interactions with, and technical assistance to, DOE and the States on LLW regulatory issues.

• Provide analytical assistance on complex licensing cases, such as application of codes for

decom missioning reviews and site cleanup at sites with uranium contamination and in situ uranium recovery facilities.

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 14**  U.S. NUCLEAR REGULATORY COMMISSION 

### OFFICE OF THE INSPEC **TOR GENERAL**

**O FFICE OF THE**  **I NSPECTOR**  **G ENERAL**  **G OALS** 

In accordance with the Inspector General Act of 1978, as amended, the Office of the Inspector General’s (OIG’s) mission is to (1) independently and objectively conduct and supervise audits and investigations related to NRC programs and operations, (2) prevent and detect fraud, waste, and abuse, and (3) promote economy, effi ciency, and effectiveness in NRC programs and operations. The OIG carries out its mission through its Audits and Investigations Programs. The NRC OIG Strategic

Plan will be updated; however, it currently features the following three strategic goals that guide the activities of its Audits and Investigations Programs and generally align with the agency’s mission:

• Strengthen the NRC’s efforts to protect public health and safety and the environment.

• Enhance the NRC’s efforts to increase security in respons e to an evolving threat environment.

• Increase the economy, efficiency, and effectiveness with which the NRC manages and exercises stewardship over its resources.

Budget Authority by Program

FY 2012 Enacted FY 2014 Request Delta FY 2014

– FY

2012

Summar y $M FTE $M FTE $M FTE

Program Support 1.276 1.245 (0.031)

Program Salaries and

Benefits 9.584 58 9.860 58 0.276

Total $10.860 58 $11.105 58 $0.245 0

Numbers may not add due to rounding.

OIG’s proposed FY 2014 budget is $11.105 million, including 58 FTE staff. In accordance with OMB requirements, OIG is providing the full cost of its programs, in that the budget identifies OIG’s management and operational support costs and distributes these costs proportionately to the Audits and Investigations P rograms.

## EXECUTIVE SUMMARY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 15**  U.S. NUCLEAR REGULATORY COMMISSION **A UDITS**  **P ROGRAM** 

With these resources, the Audits Program will conduct approximately 22 audits and evaluations. For

FY 2014, the Audits Program will focus on agency programs involving the major management challenges and risk areas facing the NRC to include those agency programs concerning new reactors and spent fuel storage and transportation. Areas for OIG audit emphasis in FY 2014 include the following:

• NRC oversight of operating reactors and the licensing and construction of new and advance d

reactors.

• NRC oversight of the safety of nuclear materials.

• NRC oversight of licensee security programs and management of internal NRC security.

• NRC oversight of the interim storage of HLW, increased quantities of spent fuel at reactor sites, and

the safe management of civilian LLW disposal.

OIG also will conduct other performance audits to review the NRC’s administrative and program operations, to evaluate the effectiveness and efficiency with which management responsibilities are carried out, and to determine whether the programs are achieving their intended results. Financial

audits also will be conducted to attest to the reasonableness of the NRC’s financial statements and to evaluate the agency’s financial programs.

**I NVESTIGATIONS**  **P ROGRAM** 

The Investigations Program will initiate approximately 60 investigations and event inquiries. Areas for OIG investigative emphasis in FY 2014 include the following:

• Monitor NRC activities and gather stakeholder information to identify potential gaps in the agency’s regulatory oversight.

• Review NRC and licensee reports and engage interested stakeholders to identify issues of concern in the NRC’s oversight of nuclear material held by its licensees.

• Examine the effectiveness of NRC efforts to address stakeho lders’ concerns about LLW and HLW storage issues.

• Address NRC’s efforts to oversee licensee responsibilities in effectively securing licensed facilities

and nuclear materials.

• Investigate internal and external cyber breaches of the NRC’s IT infrastructur e.

• Examine allegations of misuse of the NRC’s corporate resources pertaining to human resources, procurement, financial management, and IT.

Proactive investigations are also conducted when indications are raised about potential systematic violations, suc h as theft of Government property or contract fraud. In addition, OIG periodically conducts event inquiries to identify staff actions that may have contributed to the occurrence of an event.2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 16**  U.S. NUCLEAR REGULATORY COMMISSION2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 17**  U.S. NUCLEAR REGULATORY COMMISSION

## PROPOSED FY 2014 APP ROPRIATIONS LEGISLAT ION

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 18**  U.S. NUCLEAR REGULATORY COMMISSION

## PROPOSED FY 2014 APP ROPRIATIONS LEGISLAT ION

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 19**  U.S. NUCLEAR REGULATORY COMMISSION 

## Proposed FY 2014 Appropriations Legislation

The NRC’s p roposed appropriations legislation for FY 2014 is as follows:



### SALARIES AND EXPENSE **S**

For necessary expenses of the Commission in carrying out the purposes of the Energy Reorganization Act of 1974, as amended, and the Atomic Energy Act of 1954, as amended, including official representation expenses (not to exceed $25,000), $1,043,937,000, to remain available until expended:

Provided , That revenues from licensing fees, inspection services, and other services and collections estimated at $920,721,000, in FY 2 014 shall be retained and used for necessary salaries and expenses in this account, notwithstanding 31 U.S.C. 3302, and shall remain available until expended: Provided

further , That the sum herein appropriated shall be reduced by the amount of revenues rec eived during FY 2014 so as to result in a final FY 2014 appropriation estimated at not more than $123,216,000.



### OFFICE OF THE INSPEC **TOR GENERAL**

For necessary expenses of the Office of the Inspector General in carrying out the provisions of the Inspector Ge neral Act of 1978, as amended, $11,105,000, to remain available until September 30,

2015: Provided , That revenues from licensing fees, inspection services, and other services and collections estimated at $9,994,000, in FY 2014 shall be retained and be ava ilable until September 30, 2015, for necessary salaries and expenses in this account, notwithstanding 31 U.S.C. 3302: Provided

further , That the sum herein appropriated shall be reduced by the amount of revenues received during

FY 2014 so as to result in a final FY 2014 appropriation estimated at not more than $1,111,000.



### ANALYSIS OF PROPOSED **FY 2014 APPROPRIATIO NS LEGISLATION**  The analysis of the NRC’s proposed appropriations legislation for FY 2014 is as follows:

**S ALARIES AND**  **E XPENSES** 

1. FOR NECESSARY EX PENSES OF THE COMMISSION IN CARRYING OUT THE PURPOSES OF THE ENERGY

REORGANIZATION ACT OF 1974, AS AMENDED, AND THE ATOMIC ENERGY ACT OF 1954, AS AMENDED:

42 U.S.C. 5841 et seq.

The NRC was established by the Energy Reorganization Act of 1974, as amended ( 42 U.S.C. 5801 et seq.). This act abolished the Atomic Energy Commission (AEC) and transferred to the NRC all of the AEC’s licensing and related regulatory functions. These functions included those of the Atomic Safety and Licensing Board Panel and the Adv isory Committee on Reactor Safeguards; responsibilities for licensing and regulating nuclear facilities and materials; and conducting research for the purpose of confirmatory assessment related to licensing, regulation, and other activities, including rese arch related to nuclear materials safety and regulation under the provisions of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2011 et seq.).

## PROPOSED FY 2014 APP ROPRIATIONS LEGISLAT ION

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 20**  U.S. NUCLEAR REGULATORY COMMISSION 2. INCLUDING OFFICIAL REPRESENTATION EXPENSES:

47 Comp. Gen. 657, 43 Comp. Gen. 305

This language is req uired because of the established rule restricting an agency from charging appropriations with the cost of official representation unless the appropriations involved are specifically available for such purpose. Congress has appropriated funds for official r epresentation expenses to the NRC and its predecessor, the AEC, each year since FY 1950.

3. TO REMAIN AVAILABLE UNTIL EXPENDED:

31 U.S.C. 1301 provides that no regular, annual appropriation shall be construed to be permanent or available continuously unle ss the appropriation expressly provides that it is available after the fiscal year covered by the law in which it appears.

4. REVENUES FROM LICENSING FEES, INSPECTION SERVICES, AND OTHER SERVICES AND COLLECTIONS

SHALL BE RETAINED AND USED FOR NECESSARY SAL ARIES AND EXPENSES IN THIS ACCOUNT,

NOTWITHSTANDING 31 U.S.C. 3302, AND SHALL REMAIN AVAILABLE UNTIL EXPENDED:

Under Title V of the Independent Offices Appropriation Act of 1952, the NRC is authorized to collect license fees. Pursuant to 31 U.S.C. 9701, an y person who receives a service or thing of value from the Commission shall pay fees to cover the NRC’s cost in providing such service or thing of value.

Pursuant to 42 U.S.C. 2214, the NRC is required to assess and collect annual charges from NRC

license es and certificate holders, with the exception of the holders of any license for a federally owned research reactor used primarily for educational training and academic research purposes. In accordance with amendments to 42 U.S.C. 2214, enacted in the Ener gy Policy Act of 2005, and this appropriations request, the aggregate annual amount of such charges shall approximate 90 percent of the Commission’s budget authority, less amounts appropriated to the Commission to implement

Section 3116 of the Ronald W. Re agan National Defense Authorization Act for Fiscal Year 2005 and amounts appropriated to the Commission for generic homeland security activities.

Section 3116 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005, Public Law (P.L .) 108

- 375, assigns new responsibilities to NRC for waste determinations and monitoring of waste disposal actions for material stored at the U.S. Department of Energy (DOE) sites in South Carolina and Idaho. Section 3116(b)(4) requires that, beginning with the FY 2006 budget, the Commission include in its budget justification materials submitted to Congress the amounts required, not offset by revenues, for performance of its responsibilities under Section 3116. The $1,392,000 requested to implement Section 3116 is excluded from NRC’s fee recovery requirements.

Section 637 of the Energy Policy Act of 2005, P.L. 109

- 58 , modifies NRC’s user fee legislation in 42 U.S.C. 2214 to exclude from license fee recovery the amounts appropriated to the Commission for

hom eland security activities, except for reimbursable costs of fingerprinting and background checks and the costs of conducting security inspections. The $19,522,000 requested for generic homeland security activities is excluded from NRC’s fee recovery requir ements.

The aggregate amount of license fees and annual charges to be collected for FY 2014 approximates 90 percent of the Commission’s budget authority, less amounts requested to implement Section 3116 of the Ronald W. Reagan National Defense Authorizati on Act for Fiscal Year 2005 and amounts requested for generic homeland security activities pursuan t to Section 637 of P.L. 109

- 58

.

## PROPOSED FY 2014 APP ROPRIATIONS LEGISLAT ION

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 21**  U.S. NUCLEAR REGULATORY COMMISSION 31 U.S.C. 3302 requires the NRC to deposit all revenues collected to miscellaneous receipts of the
Treasury unless specifical ly authorized by law t o retain and use such revenues

5. THE SUM HEREIN APPROPRIATED SHALL BE REDUCED BY THE AMOUNT OF REVENUES RECEIVED:

Pursuant to 42 U.S.C. 2214, the NRC is required to assess and collect annual charges from NRC

licensees and certificat e holders, with the exception of the holders of any license for a federally owned research reactor used primarily for educational training and academic research purposes. In accordance with amendments to 42 U.S.C. 2214, enacted in the Energy Policy Act of 2005, and this appropriations request, the aggregate annual amount of such charges shall approximate 90 percent of the Commission’s budget authority, less amounts appropriated to the Commission to implement Section 3116 of the Ronald W. Reagan National Def ense Authorization Act for Fiscal Year 2005 and amounts appropriated to the Commission for generic homeland security activities.

**O FFICE OF THE**  **I NSPECTOR**  **G ENERAL** 

6

. FOR NECESSARY EXPENSES OF THE OFFICE OF THE INSPECTOR GENERAL IN CARRYING OUT THE

PROVISIONS OF THE INSPECTOR GENERAL ACT OF 1978, AS AMENDED:

P. L. 95

- 452, 5 U.S.C. app., as amended by P. L. 100

- 504

P. L. 100

- 504 amended P. L. 95

- 452 to establish an Office of the Inspector General in the NRC effective April 17, 1989, and to require the establis hment of a separate appropriation account to fund the Office of the Inspector General.

7. TO REMAIN AVAILABLE UNTIL SEPTEMBER 30, 2015:

31 U.S.C. 1301 provides that no regular, annual appropriation shall be construed to be permanent or

available continuou sly unless the appropriation expressly provides that it is available after the fiscal year covered by the law in which it appears.

8. REVENUES FROM LICENSING FEES, INSPECTION SERVICES, AND OTHER SERVICES AND COLLECTIONS

SHALL BE RETAINED AND BE AVAILABLE UNTIL SEPTEMBER 30, 201 5

, FOR NECESSARY SALARIES AND

EXPENSES IN THIS ACCOUNT, NOTWITHSTANDING 31 U.S.C. 3302:

Under Title V of the Independent Offices Appropriation Act of 1952, the NRC is authorized to collect license fees. Pursuant to 31 U.S.C. 9701, a ny person who receives a service or thing of value from the Commission shall pay fees to cover the NRC’s cost in providing such service or thing of value.

Pursuant to 42 U.S.C. 2214, the NRC is required to assess and collect annual charges from NRC

licens ees and certificate holders, with the exception of the holders of any license for a federally owned research reactor used primarily for educational training and academic research purposes. In

accordance with amendments to 42 U.S.C. 221 4 , enacted in the Ene rgy Policy Act of 2005, and this appropriations request, the aggregate annual amount of such charges approximate 90 percent of the Commission’s budget authority, less amounts appropriated to the Commission to implement Section 3116 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 and amounts appropriated to the Commission for generic homeland security activities.

## PROPOSED FY 2014 APP ROPRIATIONS LEGISLAT ION

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 22**  U.S. NUCLEAR REGULATORY COMMISSION 31 U.S.C. 3302 requires the NRC to deposit all revenues collected to miscellaneous receipts of the
Treasury unles s specifically authorized by law to retain and use such revenue.

9. THE SUM HEREIN APPROPRIATED SHALL BE REDUCED BY THE AMOUNT OF REVENUES RECEIVED:

Pursuant to 42 U.S.C. 2214, the NRC is required to assess and collect annual charges from NRC

licensees an d certificate holders, with the exception of the holders of any license for a federally owned research reactor used primarily for educational training and academic research purposes. In accordance with amendments to 42 U.S.C. 2214, enacted in the Energy Po licy Act of 2005, and this appropriations request, the aggregate annual amount of such charges approximate 90 percent of the Commission’s budget authority, less amounts appropriated to the Commission to implement Section 3116 of the Ronald W. Reagan Nation al Defense Authorization Act for Fiscal Year 2005 and amounts appropriated to the Commission for generic homeland security activities.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 23**  U.S. NUCLEAR REGULATORY COMMISSION

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 24**  U.S. NUCLEAR REGULATORY COMMISSION

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 25**  U.S. NUCLEAR REGULATORY COMMISSION 

## NUCLEAR REACTOR SAFETY

NUCLEAR REACTOR SAFETY STRATEGIC GOALS Safety

— ensure adequate protection of public health and safety and the environment.
Security

— ensure adequate protection in the secure use and management of radioactive materials.

The Nuclear Reactor Safety Program encompasses U.S. Nuclear Regulatory Commission ’s (NRC)

efforts to ensure that civilian nuc lear power and research and test reactors are licensed and operated in a manner that adequately protects public health and safety, protects the environment, and provides high assurance of the physical security of reactor facilities. This program contribut es to the NRC’s Safety and Security goals through activities of the Operating Reactors and New Reactors Business Lines that license and regulate existing and new nuclear reactors to ensure their safe operation and physical security. The Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974, as amended, are the foundations for the NRC ’s regulation of the Nation’s civilian nuclear power industry.

Nuclear security is a high priority for the NRC. Throughout the agency’s history, effective regulation and strong partnerships with a variety of Federal, State, and local authorities have ensured security at civilian nuclear reactors across the country, especially power reactors. The NRC recognizes the need for continuous improvement t o ensure the s afety and s ecurity of nuclear power plants. In recent years, the NRC has undertaken comprehensive enhancements to bolster the security of our Nation’s nuclear

facilities and radioactive materials.

Nuclear Reactor Safety (Dollars in Million s)

FY 201 2

Enacted FY 201 4
Request Delta

FY 2014

– FY 2012

Business Line $M FTE $M FTE $M FTE

Operating Reactors 534.7 2,100.4 571.9 2,120.0 37.2 19.6

New Reactors 265.4 924.6 240.5 865.5 (24.9) (59.1)

Total $800.1 3,025.0 $812.4 2,985.5 $12.3 (39.6)

Numbers may not add due to rou nding.



### PROGRAM RESOURCE SUM **MARY**

The f iscal y ear (FY) 2014 proposed budget request for the Nuclear Reactor Safety Program is $8 12.4 million, which includes $3 34.7 million in contract support and travel and $4 77

. 7 million in salaries and benefits to supp ort 2,985.5 f ull

- t ime e quivalents (FTE). This amount funds activities in the Operating Reactors and New Reactors Business Lines. It represents an increase of $ 12.3 million, including a decrease of 39.6 FTE, from the FY 2012 enacted budget . This increase primarily support s implementation of the Fukushima Near

- Term Task Force recommendations and regulatory activities associated with locating, licensing, and overseeing new and operating nuclear power plants

, and an agencywide effort to reduce overhead resou rces through increased efficiency and effectiveness.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 26**  U.S. NUCLEAR REGULATORY COMMISSION 

### OPERATING REACTORS

Operating Reactors by Product Line (Dollars in Millions)

FY 2012

Enacted FY 2014 Request Delta

FY 2014

– FY 2012

Product Line $M FTE $M FTE $M FTE

Licensing 89.5 477.3 101.4 479.1 11.9 1.8

Oversight 157.3 888.6 163.6 878.3 6.2 (10.3)

Rulemaking 13.3 60.9 17.7 72.5 4.3 11.6

International Activities 2.3 13.5 2.4 14.2 0.1 0.7

Research 66.1 171.0 67.8 177.1 1.7 6.1

Generic HLS 6.5 25.1 3.8 18.9 (2.8) (6.2)

Event Response 14.3 55.8 16.8 55.1 2.5 (0.6)

Sub total $349.4 1,692.1 $373.4 1,695.1 $24.1 3.0

Corporate Support 185.4 408.3 198.5 424.9 13.1 16.5

Total $534.7 2,100.4 $571.9 2,120.0 $37.2 19.6

Numbers may not add due to rounding.

The Operating Reactors Business Line encompasses the regulation of 104 operating civilian nuclear

powe r reactors and 31 research and t est reactors (RTRs) in a way that adequately protects the public health and safety, protects the environment, and provides high assurance of physical security. Under

the U.S. Nuclear Regulatory Commission’s (NRC’s) regulatory oversight, the amount of safe electrical power generat ed from the 104 domestic nuclear power plants now contributes approximately

20 percent of the Nation’s electrical production.

The NRC establishes regulatory requirements for the design, construction, operation, and security of nuclear power plants and R TRs in accordance with the provisions of the Atomic Energy Act of 1954, as

amended. Through Operating Reactors Business Line activities, the NRC ensures the fundamental tenets of its Safety and Security goals in protecting the public and workers from the radiation hazards of

nuclear reactors. To ensure that plants are operating safely within these requirements, the NRC licenses the plants to operate, licenses the personnel who operate the plants, and establishes technical specifications for each plant’s o peration. The NRC also ensures nuclear safety through rulemaking and research efforts, enforcement, and international activities. The NRC oversees civilian nuclear reactors and verifies operator adherence to the NRC’s rules and regulations.

The NRC has undertaken comprehensive enhancements to bolster the security of our Nation’s nuclear

facilities. Nuclear power plants must be able to defend successfully against a set of hypothetical threats that the agency refers to as the design

- basis threat (DBT). These hypothetical threats challenge a plant’s physical security, personnel security, and cyber security. The agency continuously evaluates this set of hypothetical threats against real

- world intelligence to ensure that it remains current and prepared.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 27**  U.S. NUCLEAR REGULATORY COMMISSION Th e budgetary resources will enable the NRC to continue licensing and regulatory activities to ensure the safe and secure operation of these civilian nuclear reactors. The NRC has developed product lines for operating reactors that best support safety and s ecurity strategies that affect strategic outcomes as they relate to existing civilian reactors. The resources requested support the Operating Reactors Business Line within the following seven product lines: Licensing, Oversight, Rulemaking, Research,

Int ernational Activities, Generic Homeland Security (HLS), and Event Response. The outputs of the product lines under this business line contribute to the scoring of the NRC Safety and Security

Performance Measures and their contribution to the achievement o f its Strategic Outcomes.

**C HANGES**  **F ROM**  **FY 2012**  **E NACTED**  **B UDGET** 

Resources increased to support the implementation of the Fukushima Near

- Term Task Force (NTTF) recommendations that included a shift from New Reactors to Operating Reactors. Other changes

inc lude an increase in the Licensing Product Line to support activities related to an increase in scheduled workload for license renewals, medical isotope application reviews, National Fire Protection Association Standard 805 (NFPA 805) license amendment requ est (LAR) reviews, and reduction of the backlog of topical reports. Oversight Product Line resources increased to support the implementation

of the Force

- on

- Force program and the replacement of the agency’s Reactor Program System. Rulemaking Product Line resources increased to support Commission

- directed medium priority rules. The Research Product Line increased to support the update of nuclear power plant risk analysis to include a broader scope of events, severe accident analysis methods, and materials degradation

research.

**L ICENSING** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY L ICENSING Safety

— develop, maintain, and implement licensing and regulatory programs for reactors.
Security

— review security plans and changes for consistency with security requireme nts.

For FY 2014, the NRC requests $101.4 million, including 479.1 full

- time equivalents (FTE), for licensing

activities. This funding level represents an increase of $11.9 million, including 1.8 FTE, when compared with the FY 2012 enacted budget. Reso urces increase to support the implementation of the Fukushima NTTF recommendations. Other changes include an increase in scheduled workload for license renewals, medical isotope application reviews, NFPA 805 LAR reviews, and reduction of the backlog of to pical reports.

The Licensing Product Line supports licensing activities that the NRC uses to establish requirements to

ensure the safety of operating nuclear power reactor licensees, RTRs, medical isotope production facilities, and requests for license re newals. Other changes provide an adequate margin of safety and security consistent with the NRC’s rules and regulations.

The NRC licenses civilian nuclear power reactors and nonpower reactors to ensure that they are operated in a way that adequately pro tects the public health and safety, protects the environment, and provides high assurance of physical security.

In FY 2014, the NRC will continue licensing activities for 104 power reactors. The NRC anticipates that the licensing workload will include completing 900 licensing actions (200 related to Fukushima), including the review of approximately 11 power uprates and approximately 22 ongoing NFPA 805

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 28**  U.S. NUCLEAR REGULATORY COMMISSION reviews for the approximately 35 reactors that will be transitioning to a risk

- informed, performance

- b ased set of requirements.

Reviews will continue for 11 license renewal applications for operating reactors. The NRC expects to review two new applications. The resources will support the development, maintenance, and implementation of the license renewa l infrastructure, process assessments, improvements, and activities related to developing infrastructure for potential applications for license renewals.

The NRC will continue licensing reviews, issuing license amendments, and performing project

managemen t activities for the existing 31 licensed operating nonpower reactors. The agency will ensure that operators are qualified and licensed to perform their duties. In addition, the NRC will review applications for medical isotope production facilities and i nformation that licensees submitted to support conversion of nonpower reactors from high

- enriched to low

- enriched uranium fuel. The NRC will complete 500 other licensing tasks and related activities, including assistance to the regions; interactions

with vendors, industry, and owners’ groups; and 20 technical topical report reviews that will resolve generic issues and will reduce the topical reports backlog. In addition, the NRC expects to complete approximately 55 operator licensing examinations and 4 ge neric examinations for reactor operators.

Resources also support licensing activities, such as the review of licensing amendments associated with the security plan changes; cyber security; emergency preparedness reviews; and license renewal

activities an d associated adjudication, legal advice, and representation. The NRC will continue Federal interactions with the American Society of Mechanical Engineers (ASME) on coating guidance, grid stability, and digital instrumentation and control.

**O VERSIGHT** 

STRA TEGIC GOAL STRATEGIE S SUPPORTED BY OVERS IGHT Safety

— continue to oversee the safe operation of existing plants and licensee safety performance through
inspections, investigations, enforcement, and performance assessment activities.
Security

— evaluate licen see security and emergency preparedness programs; use F orce

- on

- F orce inspections to
test security.

For FY 2014, the NRC requests $163.6 million, including 878.3 FTE, for oversight activities. This funding level represents an increase of $6.2 million, in cluding a decrease of 10.3 FTE, when compared

with the FY 2012 enacted budget. Resources increase to support the implementation of the Fukushima NTTF recommendations. Other changes include an increase to support the Force

- on

- Force Program and the replace ment of the agency’s Reactor Program System offset by a decrease because of an agencywide effort to reduce overhead resources through increased efficiency and effectiveness.

The Oversight Product Line supports the activities and methods the NRC uses to ov ersee the safe and secure operation of existing nuclear reactors, to better identify significant performance issues, and to ensure that licensees take appropriate actions to maintain acceptable operating performance to adequately protect public health and safety and the environment.

The NRC performs continuous oversight of plants through its Reactor Oversight Process (ROP), which verifies that the 104 currently licensed nuclear power reactors are operated safely and securely in

accordance with the NRC’s rules, regulations, and license requirements. The NRC has full authority to take action to protect public health and safety and can demand immediate licensee action, up to and including a plant shutdown. The ROP uses NRC inspection findings and performan ce indicators from

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 29**  U.S. NUCLEAR REGULATORY COMMISSION licensees to assess the safety performance of each plant within a regulatory framework of seven cornerstones of safety and security: (1) frequency of potential accident

- initiating events; (2) availability, reliability, and capability of mitigating systems, (3) integrity of radiation barriers, such as fuel cladding, reactor coolant system, and containment boundaries, (4) emergency preparedness, (5) protection of the public from radiation releases, (6) occupational radiation safety, and (6 ) physical protection against the DBT for radiological sabotage.

The ROP recognizes that not all issues are equally significant. The ROP structure initiates more NRC engagement and oversight for more significant events. Plants are expected to address is sues through their corrective action programs for less significant events. In this way, the oversight workload directly supports the Safety and Security goals and related strategic measures and outcomes.

As a condition of their licenses, nuclear power p lant operators develop and maintain effective emergency preparedness plans to protect the public. The NRC inspects plants to ensure that they are meeting the requirements for emergencies and to evaluate the implementation of those requirements. In additi on, the agency monitors certain performance indicators related to emergency preparedness.

Generally, the NRC performs two types of inspections: baseline and plant

- specific. The FY 2014 budget request includes resources for planned baseline and anticip ated plant

- specific inspections. Historically, the resources required for these inspections have been fairly constant. A portion of the baseline inspection program is conducted on a 3

- year cycle, including approximately 22 fire protection and 22 componen t design

- basis inspections per year. Baseline inspections focus on plant activities, especially those that performance indicators do not measure adequately. Resources also support plant

- specific inspections that typically include 20 reactive inspections, 75 inspections related to performance or specific changes (e.g., inspections at independent spent fuel storage installations, digital control room inspections), and approximately 100 generic issue inspections that address areas of emerging concern (e.g., cyber security or areas where recurring problems have occurred). Security resources support the NRC’s security inspection and assessment program with a number of key elements. These include baseline, tri

- annual Force

- on

- Force, and special inspections;

an d development of the annual report to Congress. For 2

- year s, there will be an increase in regional work for target set and protective strategy inspections as a result of the new 10 CFR Part 73 rule.

The ROP also includes the Industry Trends Program th rough which the NRC collects, analyzes, displays, and trends industrywide reactor performance data to determine whether the data show statistically significant adverse industry trends in reactor safety performance.

Resources also support assessment of l icensee performance and evaluation of input data (i.e., performance indicators, the significance determination process, and determination of any necessary followup actions resulting from enforcement processing related casework and project and

contract mana gement oversight of the Alternative Dispute Resolution (ADR) Program). The NRC conducts performance

- based evaluations of licensee security and emergency preparedness programs

and assesses their effectiveness. The NRC will perform emergency preparedness b aseline and special inspections that will include outreach activities with State and local Governments, Tribal organizations, and interstate organizations.

Resources also support legal review, communications to internal and external stakeholders, and aud its associated with the ROP, license renewal inspections, investigations and early ADR program activities, security issues, performance assessments, and development of enforcement guidance.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 30**  U.S. NUCLEAR REGULATORY COMMISSION Resources will support event evaluation, generic communications , and the review of industry operating experience (screening of approximately 3,000 national and international operational events per year). Approximately 150 to 200 issues per year receive additional detailed evaluations. Resources support independent e valuation and trending of operational events and funding of human factor event

evaluations.

Resources also support enforcement, allegation activities, and investigations of alleged wrongdoing. Enforcement is used to deter noncompliance with NRC require ments and to encourage prompt identification and correction of violations.

The ROP includes an assessment process, which integrates inspection findings with other objective measures of performance that licensees submit quarterly for each power reactor s ite. Results from this assessment process are used as feedback to determine appropriate NRC actions for the reactor sites.

Resources will support the replacement, maintenance, and operation of the Reactor Programs System (RPS), which is used to plan and schedule inspection activities and capture and report inspection findings. Replacement of the current system is required since it was developed from 1995 to 1998; the system is now obsolete. RPS is critical to supporting the oversight and inspection of t he 104 nuclear power reactors and 31 nonpower reactors. This agencywide tool supports 47 uranium recovery sites and 9 major fuel cycle facilities. The resources also will support simulator hardware and software maintenance for reactor technology training and Web development.

**R ULEMAKING** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY R ULEMAKING Safety

— use sound science and state

- of

- the

- art methods to establish, where appropriate, risk

- informed and
performance

- based regulations.
Security

— use a framework of rul es and regulations to guide the security activities of the agency.

For FY 2014, the NRC requests $17.7 million, including 72.5 FTE, for rulemaking activities. This funding level represents an increase of $4.3 million, including 11.6 FTE, when compared w ith the FY 2012 enacted budget. Resources increase to support the implementation of the Fukushima NTTF recommendations. Other changes include an increase to support medium

- priority and Fukushima

NTTF rules.

The Rulemaking Product Line includes the deve lopment and update of regulatory basis rules and regulatory guidance documents that promote licensee compliance with underlying safety principles and security requirements.

The regulatory framework guides the safety activities of the agency and its licen sees. The NRC’s rules and regulations contribute to the Safety and Security goals and related strategic measures and outcomes because they form the foundation for the safety and security activities of the agency. NRC regulations are contained in Title 10 of the Code of Federal Regulations (10 CFR), “Energy.”

The FY 2014 workload includes 14 high

- priority rulemaking activities and 3 medium

- priority rulemaking activities directed by the Commission, including policy development activities related to the NRC regulatory framework after the Fukushima Event. Examples of high

- priority rulemaking activities include 3 rulemakings from the Fukushima NTTF recommendations and a rulemaking implementing the new statutory authority from the Energy Policy Act of 2005 on the use of enhanced weapons.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 31**  U.S. NUCLEAR REGULATORY COMMISSION Resources also provide support for approximately 22 petitions for rulemaking (PRMs), assuming receipt of 6 PRMs each year and the issuance of 8 closure packages. Additionally, resources will support legal

advice for rulemakin gs, petitions, and regulatory basis development efforts.

Resources for rulemaking support the development of technical assessment and regulatory bases needed to prepare and issue new or amended regulations and to develop supplemental regulatory guidance d irectly related to new and amended rules. Resources also allow the NRC to maintain rulemaking and regulatory analysis guidance documents based on lessons learned and process improvements and enhancements. In addition, resources support updates of reports such as the Regulatory Agenda.

**I NTERNATIONAL**  **A CTIVITIES** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY I NTERNATIONAL ACTIVIT IES Safety

— use domestic and international operating experience to inform decisionmaking.
Security

— work with international counterparts to exchange information.

For FY 2014, the NRC requests $2.4 million, including 14.2 FTE, for international activities. This funding level represents an increase of $0.1 million, including 0.7 FTE, when compared with the FY 2012 enacted budget, which do es not represent a significant change in workload

.

The International Activities Product Line supports the NRC’s international work, which assists decisionmaking, awareness of and responses to emerging technical issues, and promoting best practices in r ealizing the Safety and Security goals and related strategic measures and

outcomes. Additionally, the NRC participates in the development and evaluation of international standards to ensure that they are soundly based and to determine whether substantial safety improvement can be identified and implemented domestically. The NRC also must perform certain legislatively mandated international duties. These include licensing the import and export of nuclear materials and equipment and participating in activi ties supporting U.S. compliance with international treaties and agreement obligations. The NRC has bilateral programs to provide assistance or cooperation with 41 countries and Taiwan. In addition, the NRC actively cooperates with multinational organizat ions, such as the International Atomic Energy Agency (IAEA) and the Nuclear Energy Agency, as part of the Organization for Economic Co

- operation and Development.

The International Activities Product Line workload includes periodic exchanges of informatio n important to the safe operation of nuclear power plants, visits to operating domestic nuclear power plants, assistance to foreign regulatory bodies through the NRC Foreign Assignee Program, and the review and decisions on applications for the export and import of nuclear equipment. The NRC assists the IAEA and individual countries through its bilateral agreements and participates in multilateral activities with other nations, such as the Convention on Nuclear Safety, the Joint Convention on the Safety of Spent Fuel Management and the Safety of Radioactive Waste Management, and IAEA’s Integrated Regulatory Review Service and International Physical Protection Advisory Service missions.

The NRC supports activities associated with safety, security, and conv ersion of nonpower reactors and participates in international cooperative research programs that provide access to operating experience from foreign reactors to augment NRC programs in areas such as plant aging and materials degradation, fire risk, and pre ssurized thermal shock. Analysis of this experience contributes to the NRC’s knowledge base, improves assessments of plant risk, and improves the development of risk

informed approaches to regulation.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 32**  U.S. NUCLEAR REGULATORY COMMISSION The NRC works with international counterparts to exc hange information, expertise, and operating experiences; to participate in ongoing research to recognize and respond to emerging technical issues; and to promote best safety and security practices. This international cooperation promotes nuclear safety an d security worldwide.

**R ESEARCH** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY R ESEARCH Safety

— improve the NRC’s regulatory programs and apply safety

- focused research to anticipate and resolve
safety issues.
Security

— use research to inform the security activi ties of the agency.

For FY 2014, the NRC requests $67.8 million, including 177.1 FTE, for research activities. This funding level represents an increase of $1.7 million, including 6.1 FTE, when compared with the FY 2012 enacted budget. Resources increa se to support implementation of the Fukushima NTTF recommendations. Other changes include an increase to update nuclear power plant risk analysis to include a broader scope of events, severe accident analysis methods, and materials degradation

research.

The NRC’s research program mission is to evaluate and resolve safety issues for nuclear power plants and other facilities and materials that the agency regulates. Tasks under this mission include evaluating existing and potential safety issues; supplying independent expertise, information, and technical judgments to support timely and realistic regulatory decisions; reducing uncertainties in risk assessments; and developing technical regulations and standards. Research programs cover all

technical areas of the NRC’s regulations.

In FY 2014, research will be performed in various technical areas to ensure the continued safety and security of operating reactors. These areas include (1) research to address recommendations from the

lessons learned evaluat ion of the Fukushima accident, (2) fire safety, (3) digital and electrical systems, (4) materials degradation, (5) reactor safety code development and analysis, (6) radiation protection, (7) probabilistic risk assessment (PRA), and (8) evaluation of hazard s from natural events.

Research will address recommendations from the lessons learned evaluation of the Fukushima accident, including PRA of seismically induced flooding and fire and analysis of filtered venting.

Fire safety research will continue to s upport the transition to a risk

- informed, performance

- based set of requirements in response to NFPA 805 and the current licensing basis for plants. This work includes cable fire testing, spurious circuit actuation testing, fire risk

- assessment training, a nd fire modeling.

Research on digital systems will include the review of current and future applications of digital instrumentation and controls, a failure mode and reliability assessment of software and digital systems, an assessment of the aging of com ponents and equipment, and the security aspects of digital systems. Research associated with electrical systems will be conducted in equipment qualification for subsequent license renewal, assessment of the aging of electrical insulation materials, batter y performance, the impact of smart grids on nuclear power plants, and assessment of failure of onsite

power sources.

Research will continue to further understand and manage potential degradation associated with reactor pressure boundary components, vesse l internals, containment liners, and neutron

- absorbing materials

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 33**  U.S. NUCLEAR REGULATORY COMMISSION used in spent fuel pools. This research includes assessing the effectiveness and reliability of various inservice inspection techniques, performing residual stress and nondestructive examina tion studies on retired components, evaluating the behavior of various components under severe accident conditions, developing a probabilistic code for assessing piping integrity, and studying the embrittlement of reactor vessel pressure boundary materials . Research is also being performed in material engineering to evaluate plant life extension for subsequent license renewal.

The NRC uses computer codes to perform PRAs and evaluate thermal

- hydraulic conditions, severe accidents, fuel behavior, and react or kinetics during various operating and postulated accident conditions. Research in this area will continue to support decisionmaking for risk

- informed activities, the review of licensees’ codes and performance of audit calculations, and the resolution o f other technical issues. Code development is directed toward improving the realism and reliability of code results and making them easier to use.

Research efforts will provide technical support in radiation protection, dose assessment, and

assessment o f human health effects for licensing, emergency preparedness, and nuclear security activities. This research will support recommendations on health physics policy. Research activities also will provide technical support for the development of environment al regulatory guidance to support regulatory needs.

Research efforts will include development of plant

- specific standardized analysis risk models and maintenance of the Systems Analysis Programs for Hands

- On Integrated Reliability Evaluations PRA

code to support the ROP and other risk

- informed agency decision processes. Resources also support the development of improved methods and tools for risk

- informing regulatory programs, including the development of new PRA methods, models, and tools, and the develo pment of a site Level 3 PRA to incorporate insights from advances in PRA technology and pilot draft guidance for using expert judgment in areas, such as human reliabili ty and severe accident analysis

.

The NRC will conduct research to improve its understa nding of earthquake occurrences and ground motion at nuclear power plant sites in the central and eastern sections of the United States and the performance of structures, passive components, and other issues related to earthquake engineering.

Research eff orts will include evaluation of hazards from natural events, including seismic hazards, flooding, and tsunami events. The agency will use these research results to inform licensing decisions and to update risk assessments.

**G ENERIC**  **H OMELAND**  **S ECURITY** 

STRA TEGIC GOAL STRATEGIE S SUPPORTED BY GENER IC HOMELAND SECURITY Safety

— effectively respond to events at NRC

- licensed facilities and other events of national interest, including
maintaining and enhancing the NRC’s critical incident response and communication capabilities.
Security

— support Federal response plans that use an approach to the security of nuclear facilities and
radioactive material that integrates the efforts of licensees and Federal, State, local, and Tribal authorities.

For FY 2014, the NRC re quests $3.8 million, including 18.9 FTE, for generic HLS activities. This funding level represents a decrease of $2.8 million, including 6.2 FTE, when compared with the FY 2012 enacted budget. The NRC reviewed the activities under the definitions for the Generic HLS product and shifted some resources to non

- Generic HLS products in order to more accurately align resources to the planned workload

.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 34**  U.S. NUCLEAR REGULATORY COMMISSION In FY 2014, the Generic HLS Product Line workload includes the entire scope of threat assessment activities (i ntelligence information assessment, internal and external communications, and information assessment team activities); intergovernmental coordination on national HLS priorities; integrated response planning and coordination; and emerging technology analysi s and evaluation. The workload also includes developing and enhancing the ability to make risk

- informed analyses of accident progression and radiological releases to the environment in response to accidents and

malevolent attacks.

**E VENT**  **R ESPONSE** 

STRATEG IC GOAL STRATEGIES S UPPORTED BY EVENT RE SPONSE Safety

— effectively respond to events at NRC

- licensed facilities and other events of national interest, including
maintaining and enhancing the NRC’s critical incident response and communication capabilities.
Security

— support Federal response plans that use an approach to the security of nuclear facilities and
radioactive material that integrates the efforts of licensees and Federal, State, local, and Tribal authorities.

For FY 2014, the NRC requests $16.8 m illion, including 55.1 FTE, for event response activities. This funding level represents an increase of $2.5 million, including a decrease of 0.6 FTE, when compared

with the FY 2012 enacted budget. Resources increase to support the replenishment of potas sium iodide tablets in States where they are due to expire in FY 2013.

The Event Response Product Line supports the NRC’s incident response and emergency preparedness activities to ensure that the agency can respond effectively to events at its licensee s’

sites and ensure adequate protective measures can be taken by licensees to mitigate plant damage and minimize possible radiation exposure to members of the public. The NRC’s program for emergency preparedness and event response is focused on ensuring i ts licensees are capable of implementing adequate measures to protect public health and safety in the event of a radiological

emergency.

Resources are included to ensure the NRC Headquarters Operations Center (HOC) is staffed

around the clock and is able to collect and disseminate event response information and coordinate the agency’s response, consistent with its responsibilities as the coordinating agency for events involving NRC

- licensed material under the National Response Framework. In addition, reso urces are included to support drill and exercise preparation and participation, NRC regional office event response readiness and Incident Response Centers, critical incident response communications tools (including the Emergency Response Data System and th e HOC Information Management System), accident assessment tools (such as the Radiological Assessment System for Consequence Analysis (RASCAL) Radiation Dose Assessment Code), intergovernmental coordination and communications tools, and maintenance of the r esponse program infrastructure (e.g., response manual procedures and associated guidance). Resources also support replenishing potassium iodide tablet supplies that will expire in FY 2013 for States with a population within the 10

- mile emergency planning zone of operating nuclear reactors.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 35**  U.S. NUCLEAR REGULATORY COMMISSION **S IGNIFI**  **CANT A**  **CCOMPLISHMENTS IN FY**  **2012**

In 2011, the Nation’s nuclear power plants were operated within the NRC’s safety and security requirements. The performance measures for the Safety goal confirm that nuclear power plants were operating safely. In addition, the safety indicators for nuclear plants showed no adverse trends.

After the accident at Fukushima Dai

- chi, the Commission directed the NRC staff to conduct a systematic and methodical review of NRC processes a nd regulations to determine whether the agency should make additional improvements to its regulatory system and to provide recommendations to the Commission for its policy direction. The NRC’s NTTF developed recommendations related to lessons

learned from the Fukushima Dai

- ichi event. The NRC staff prioritized the recommendations. Additionally, the staff published advance notices of proposed rulemaking to solicit comments on modification of the NRC’s station blackout regulation and the development of a n ew regulation concerning the integration of emergency operating procedures. The staff provided the Commission with its plans for implementing longer term activities associated with lessons learned from the

Fukushima Dai

- ichi event. The plans are to provi de a roadmap for what actions or study the NRC should complete to be able to make an informed decision to either pursue further regulatory action or to conclude that the current regulatory approach is sufficient.

The NRC completed 770 reactor licensing actions in FY 2012 and 95.8 percent of the licensing actions in the agency’s inventory within 1 year of receipt.

The NRC approved seven plant

- specific power uprates in FY 2012, which added an additional 2,407 megawatts thermal or 802 megawatts electric t o the Nation’s electrical grid.

The NRC approved two license renewals in FY 2012. The NRC has renewed licenses for 73 units at

42 sites since the license renewal program was established. The NRC is currently reviewing applications to renew the licenses for 13 units at 9 sites. The agency expects that all licensees of currently licensed units eventually will apply to renew their licenses.

The NRC modified its regulatory inspection plan within the Reactor Oversight Process at both San

Onofre Nuclear G enerating Station and Crystal River Nuclear Generating Plant due to extended shutdowns to address technical issues. The NRC has continued to monitor and inspect both Crystal River and San Onofre in accordance with NRC Inspection Manual Chapter 0351, “Impl ementation of the Reactor Oversight Process at Reactor Facilities in an Extended Shutdown Condition for Reasons Other Than Significant Performance Problems.”

The agency published a final rule to correct amendments involving ASME Codes and new and

revised ASME Code cases. In addition, the agency published a final rule to amend its regulations to require nonpower reactor licensees to obtain fingerprint

- based criminal history records checks before granting individuals unescorted access to their facilities. The final rule on enhancements to emergency preparedness at nuclear power plants was published. In conjunction with the Federal Emergency Management Agency (FEMA), five forums were held around the country to provide licensees, State, local, and Tribal eme rgency planning personnel with information on implementation of the emergency preparedness rule changes and associated NRC and FEMA emergency preparedness guidance changes.

The NRC research program addressed key areas that support the agency’s safety miss ion. In FY 2012, the agency initiated a site PRA study to estimate consequences of severe accidents for all modes of operation and significant hazard categories and to consider multiunit operations. In addition, research

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 36**  U.S. NUCLEAR REGULATORY COMMISSION focused on hazards from natural e vents, including seismic, flooding, and tsunami events. With support

from the U.S. Army Corps of Engineers, the NRC directed its efforts toward updating guidance on the design and evaluation of flood protection features for nuclear power plants. Other im portant research in

FY 2012 focused on fire protection and risk issues; materials degradation, particularly as related to license renewal periods; digital instrumentation and control systems; and reactor thermal

- hydraulics.

In August 2012, the NRC partici pated in the Second Extraordinary Meeting of the Convention on Nuclear Safety (CNS), which was held at the International Atomic Energy Age ncy (IAEA) in Vienna,

Austria. The objective was to review and discuss lessons learned from the accident at Fukushima

Daiichi. Over 600 people participated in the meeting, representing 64 of the 75 contracting parties to the Convention. There were six topic areas pertaining to Fukushima discussed during working sessions. The importance of sharing lessons learned from th e Fukushima Dai

- ichi accident was stressed during the closing session of the meeting, which was open to the public and members of

the media.

The NRC was actively involved in several exercises. The agency participated in the national level

exercise series (NLE 12), the annual continuity of operations exercise (Eagle Horizon 12) for Federal Executive Branch departments and agencies, and several exercises with licensed facilities and affected States as a part of the NRC’s ongoing response readiness program.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 37**  U.S. NUCLEAR REGULATORY COMMISSION **O UTPUT**  **M EASURES** 

L ICENSING

Completion of License Renewal Application Reviews

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Complete major

milestones for

4 applications. Complete major

milestones for

3 applications. Complete major

milest ones for

3 applications. Make final

decision on license

renewal for

1 reactor unit. TBD * Make final decision

on license renewal

for 0 reactor

units. *

Actual Renewed

4 licenses. Renewed 5 licenses.
Completed safety
evaluation reports

for 3 applications

and supplemental

environmental

impact statements

for 2 applications. Renewed

8 licenses. Made final

decision on license

renewal on 2 units.

• Final decisions for License Renewal applications are delayed throughout FY 2013 and FY 2014 due to Waste Confidence D ecision.

Licensing Actions Completed per Year*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Complete 1,150 licensing actions. Complete 950 licensing actions. Complete 950 licensing actions. Complete950
licensing actions. TBD** * Complete 900 licensing actions.*

Actual 1,002 completed 988 completed 849 completed 770 completed **

*As limited by the number of l icensing a ction requests submitted or accepted the previous fiscal year.

**660 license amendments requests were submitte d in FY 2011.

***802 license amendments requests were submitted in FY 2012.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 38**  U.S. NUCLEAR REGULATORY COMMISSION Age of the Other Licensing Task Inventory*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 90% ≤ 1 year (yr)

100% ≤ 2 yr 90% ≤ 1 yr

100% ≤ 2 yr 90% ≤ 1 yr

100% ≤ 2 yr 90% ≤ 1 yr

100% ≤ 2 yr TBD 90% ≤ 1 yr

100% ≤ 2 yr

Actual 90% ≤ 1 yr

100% ≤ 2 yr 94% ≤ 1 yr

100% ≤ 2 yr 94.2% ≤ 1 yr

99.6% ≤ 2 yr 94.6% ≤ 1 yr

100% ≤ 2yr

*Excludes multiplant actions and other unusually complex licensing t asks.

Age of Licensing Action Inventory*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 93% ≤ 1 yr

100% ≤ 2 yr 90% ≤ 1 yr

100% ≤ 2 yr 95% ≤ 1 yr

100% ≤ 2 yr 95% ≤ 1 yr

100% ≤ 2 yr TBD 95% ≤ 1 yr

100% ≤ 2 yr

Actu al 94% ≤ 1 yr

100% ≤ 2 yr 93% ≤ 1 yr

100% ≤ 2 yr 90.3% ≤ 1 yr

99.9% ≤ 2 yr 95.8% < 1yr

100% < 2yr

*Excludes license renewal, improved standard technical specification conversions, and power uprates. Also excludes unusually complex LARs.

Other Licensing Tasks Completed per Year*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Complete

6 00 other licensing

tasks. Complete

600 other licensing

tasks. Complete

600 other licensing

tasks. Complete

600 other licensing

tasks. T BD** Complete

500 other licensing

tasks.*

Actual 541 other licensing
tasks completed. 625 other licensing
tasks completed. 465 other licensing
tasks completed. 674 other licensing

tasks completed.

*As limited by the number of other licensing task reque sts submitted or accepted the previous fiscal year.

**577 other licensing tasks submitted in FY 2012.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 39**  U.S. NUCLEAR REGULATORY COMMISSION Number of Operator Licensing Examinations Administered

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Meet licensee

demand estimated

at 55 initial
operator licensing

examination

sessions and 4
generic

fundamentals

examination

sessions. Meet licensee

demand estimated

at 55 initial
operator licensing

examination

sessions and 4
generic

fundamentals

examination

sessions. Meet licensee

demand estimated

at 55 initial
operator licensing

examination

sessions and 4
generic

fundamentals

examination

sessions. Meet licensee

demand estimated

at 55 initial
operator licensing

examination

sessions and 4
generic

fundamentals

examination

sessions. TBD Meet licensee

demand estimated

at 55 initial
operator licensing

examination

sessions and

4 generic

fundamentals

examination

sessions.

Actual Met licensee

demand estimated

at 59 initial
operator licensing

examination

sessions and

4 generic

fundamentals

examinat ion

sessions. Met licensee

demand estimated

at 54 initial
operator licensing

examination

sessions and

4 generic

fundamentals

examination

sessions. Met licensee

demand estimated

at 55 initial
operator licensing

examination

sessions and

4 generic

fundamental s

examination

sessions. Met licensee

demand estimated at 49 (with 55
originally
estimated) initial
operating licensing

examination

sessions and

4 generic

fundamentals

examination

sessions.

Minimize Necessary Communication Systems Devices for Senior Mana ger Use

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in

FY 2011 Applicability still
being checked. $410,000

reduction Measure

discontinued.

Actual

O VERSIGHT

Number of Plants for Which the Baseline Inspection Progra m Was Completed during the Most Recently Ended Inspection Cycle*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target All required

baseline inspection

procedures are

completed at

104 operating

reactors. All required

baseline inspection

procedure s are
completed at

104 operating

reactors. All required

baseline inspection

procedures are

completed at

104 operating

reactors. All required

baseline inspection

procedures are

completed at

104 operating

reactors. TBD All required

baseline inspection

proced ures are
completed at

104 operating

reactors.

Actual Completed all

reactors. Completed all

reactors. Completed all

reactors. Completed all

reactors.

*The baseline inspection program metric includes 104 operating reactors.

Percentage of Final S ignificance Determination Process Determinations Made wit hin 90 Days for All Potentially
Greater Than Green Findings

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 90% 90% 90%* 90% TBD 90%

Actual 100% 93% 100% 100%

*Target mistakenly r eported to be 100% in the 2011 Congressional Budget Justification.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 40**  U.S. NUCLEAR REGULATORY COMMISSION Time To Complete Reviews of Technical Allegations*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 90% ≤ 150 days

95% ≤ 180 days

100% ≤ 360 days 90% ≤ 150 days

95% ≤ 180 days

100% ≤ 360 days 90% ≤ 150 days

95% ≤ 180 days

100% ≤ 360 days 90% ≤ 150 days

95% ≤ 180 days

100% ≤ 360 days TBD 90% ≤ 150 days

95% ≤ 180 days

100% ≤ 360 days

Actual 93% ≤ 150 days

98% ≤ 180 days

99% ≤ 360 days* 95% ≤ 150 days

98% ≤ 180 days

100% ≤ 360 days 98% ≤ 150 days

99% ≤ 180 days

100% ≤ 360 days 98% ≤ 150 days 99%
≤ 180 days 100 % ≤
360 days

*A few allegations exceeded the target because of complicated technical review or extended review at another Federal agency.

Timeliness in Completing Enforcement Actions*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Investigation

cases: 100% completed within
360 days of Office

of Enforcement (OE) processing

time.

Noninvestigation

cases: 100%
completed within

180 days of OE

processing time. Investigation

cases: 100% completed within

360 days of OE

processing time.
Noninvestigation

cases: 100% completed within

180 days of OE

processing time. Investigation

cases: 100% completed within

360 days of OE

processing time.
Noninvestigation

cases: 100% completed within

180 days of OE

processing time. Investigation

cases: 100% completed within

330 days of OE

processing time.

Noninvestigation

cases: 100%
compl eted within

160 days of OE

processing time. TBD Investigation

cases: 100% completed within
330 days of OE

processing time.

Noninvestigation

cases: 100%
completed within
160 days of OE

processing time.

Actual Investigation:

None ≥ 360 days.

Noninvestigation: None ≥ 180 days. Investigation:

None ≥ 360 days.

Noninvestigation: None ≥ 180 days. Investigation:

None ≥ 360 days.

Noninvestigation: None ≥ 180 days. Investigation None ≥ 330 days.

Noninvestigation:

No ne ≥ 180 days.

*(A) Cases involving investigations normally involve wrongdoing, including discrimination, and, by their nature, are more resource

- intensive and less
timely. Accordingly, the performance measure for cases involving investigations provid es for more staff time.

(B) OE processing time is defined as that time from the date on which the case is opened or the licensee is briefed on the concer n (exit) to the issuance of
an enforcement action or other appropriate disposition less (1) any time t he NRC could not act because the case resides with the U.S. Department of Labor,

U.S. Department of Justice, other Government entity, or where the licensee or anyone outside the enforcement process causes a leng thy deferment and
(2) any time the NRC could not act because of processing Freedom of Information Act requests.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 41**  U.S. NUCLEAR REGULATORY COMMISSION Timeliness in Completing Investigations

— Target 1

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 80% of
investigations that
developed

sufficient

information to

reach a co nclusion
on wrongdoing will
be completed in

10 months or less. 80% of
investigations that
developed

sufficient

information to

reach a conclusion
on wrongdoing will
be completed in

10 months or less. 80% of
investigations that
developed

sufficient

informati on to

reach a conclusion
on wrongdoing will
be completed in

10 months or less. 80% of
investigations that
developed sufficient

information to

reach a conclusion
on wrongdoing will
be completed in

10 months or less. TBD 80% of
investigations that
developed

sufficient

information to

reach a conclusion
on wrongdoing
will be completed

in 9 months or

less.

Actual Completed 106

investigations; 98.1% (104) of

those that
developed

sufficient

information to

reach a conclusion
on wrongdoing
were completed in

10 mont hs or less. Completed 40

investigations; 98% (39) of those
that developed

sufficient

information to

reach a conclusion
on wrongdoing
were completed in

9 months or less. Completed 93

investigations; 84% (78) of those
that developed

sufficient

information to

reach a conclusion
on wrongdoing
were completed in

9 months or less. Completed

1 14 investigations;

83 % ( 9 5 ) of those
that developed

sufficient

information to

reach a conclusion
on wrongdoing
were completed in

9 months or less.

Timeliness in Com pleting Investigations

— Target 2

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Close 100% of

Office of Investigations (OI)

investigations in

time to initiate civil

or criminal

enforcement

action. Close 100% of OI

investigations in

time to initiate civil

or criminal

enforcement

action. Close 100% of OI

investigations in

time to initiate civil

or criminal

enforcement

action. Close 100% of OI

investigations in

time to initiate civil

or criminal

enforcement action. TBD Close 100% of OI

investig ations in

time to initiate

civil or criminal

enforcement

action.

Actual Closed 100% of OI

investigations in

time to initiate civil

or criminal

enforcement

action. Closed 100% of OI

investigations in

time to initiate civil

or criminal

enforcement

action. C losed 100% of OI

investigations in

time to initiate civil

or criminal

enforcement

action. Closed 100% of OI

Investigations in

time to initiate civil

or criminal

enforcement action.

R ESEARCH

Timeliness of Completing Actions on Critical Research Programs *

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 90% of major

milestones met on

or before their due

date. 90% of major

milestones met on

or before their due

date. 90% of major

milestones met on

or before their due

date. 90% of major

milest ones met on

or before their due

date. TBD 90% of major

milestones met on

or before their due

date.

Actual 100% across

programs 100% across

programs 100% across

programs 100% across

programs

*Critical research programs typically respond to high

- priority needs from the Commission and the NRC’s licensing organizations. Critical research programs
will be the highest priority needs identified at the beginning of each fiscal year.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 42**  U.S. NUCLEAR REGULATORY COMMISSION Acceptable Technical Quality of Agency Research Technical Products*

FY 20 09 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Combined score ≥

3.5 Combined score ≥

3.5 Combined score ≥

3.5 Combined score ≥

3.5 TBD Combined score ≥

3.75

Actual 4 4.6 4.8 4.5

E VENT R ESPONSE

Emergency Response Performance Index*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Targ et 100% 100% 100% 100% TBD 100%

Actual 100% 100% 100% 100%

*This performance index provides a single overall performance measure of the agency’s readiness to respond to a nuclear or te rrorist emergency situation or other events of national interest. T he index measures several activities within the Incident Response Program that are critical to support the agency’s
preparedness and response ability.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 43**  U.S. NUCLEAR REGULATORY COMMISSION 

### NEW REACTORS

New Reactors by Product Line (Dollars in Millions)

FY 2012

Enacted FY 2014
Request Delta

FY 2014

– FY 2012

Product Line $M FTE $M FTE $M FTE

Licensing 131.9 483.1 104.8 439.9 (27.0) (43.2)

Oversight 35.7 197 .1 39.1 198.3 3.5 1.2

Rulemaking 1.8 9.0 2.6 14.1 0.7 5.0

International Activities 1.6 9.5 1.2 7 .0 (0.3) (2.5)

Research 9.6 37.0 9.1 27.3 (0. 5) (9.7)

Generic HLS 0.8 3.6 0.0 0.0 (0.8) (3.6 )

Subtotal $181.3 739.4 $156.9 686.6 ($24.4) (52.7)

Corporate Support 84.1 185.2 83.6 178.9 (0.5) (6.4)

Total $265.4 924.6 $240.5 865.5 ($24.9) (59.1)

Numbers may not add due to rounding.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 44**  U.S. NUCLEAR REGULATORY COMMISSION The work of the New Reactors Business Line responds to the industry’s renewed interest in building new commercial nuclear power plants to meet the Natio n’s future electric power generation needs. All civilian nuclear power reactors must be licensed by the U.S. Nuclear Regulatory Commission (NRC) and adhere to the agency’s regulations to operate in the United States. Renewed demand and national policy in itiatives, such as the U.S. Department of Energy’s Nuclear Power 2010 program and the Energy Policy Act of 2005, have stimulated a nuclear resurgence. The New Reactors Business Line is responsible for the regulatory activities associated with locating, li censing, and overseeing construction of new nuclear power reactors. The NRC reviews new nuclear power reactor design certification (DC), combined license (COL), and early site permit (ESP) applications consistent with Title 10 of the Code of Federal Regul ations (10 CFR) Part 52, “Licenses, Certifications, and Approvals for Nuclear Power Plants,” and industry’s projected plans and schedules. The NRC also reviews new nuclear power reactor construction permit and operating license applications consistent wit h 10 CFR Part 50, “Domestic Licensing of Production and Utilization facilities.” The new reactor activities ensure that the development of new civilian nuclear power reactor facilities is done in a way that protects the public health and safety, protects the environment, and provides high assurance of security.

The NRC has streamlined the application process for new reactors under 10 CFR Part 52, including publishing a major revision in fiscal year (FY) 2008. By issuing a COL, the NRC authorizes the

li censee to construct and, with specified conditions, operate a nuclear power plant at a specific

site. The application process prescribed under 10 CFR Part 50, which was implemented for all currently operating reactors, involves separate applications for t he issuance of a construction permit and an operating license.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 45**  U.S. NUCLEAR REGULATORY COMMISSION The NRC continues to interact with vendors and utilities on prospective new reactor applications and licensing activities.

The NRC continues to perform technical reviews of large light

- wa ter reactors and to provide oversight of construction activities. These activities include conducting inspections of plants under construction, conducting inspections of component suppliers, and supporting inspections of key international nuclear equipmen t. In addition, the NRC will begin to review multiple advanced reactor applications.

The NRC has organized New Reactors activities into product lines that best support Safety and Security strategies and that affect strategic outcomes as they relate to ne w civilian reactors. The resources requested support all direct aspects of new reactors within the following six product lines: Licensing, Oversight, Rulemaking, Research, International Activities, and Generic Homeland Security. The outputs of the produ ct lines under this business line contribute to the scoring of the NRC Safety and Security Performance Measures and their contribution to the achievement of its Strategic

Outcomes.

**C HANGES**  **F ROM**  **FY 2012**  **E NACTED**  **B UDGET** 

Resources decreased to support the im plementation of the Fukushima Near

- Term Task Force (NTTF) recommendations that included a shift from New Reactors to Operating Reactors. Other changes

include a decrease due an agencywide effort to reduce overhead resources through increased efficiency an d effectiveness. T he decreases are offset by an increase to support the anticipated receipt of two advanced reactor DC applications and associated advanced reactor license applications and by an increase to prepare guidance documents, such as design

- speci fic review standards.

**L ICENSING** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY LICENSING Safety

— develop, maintain, and implement licensing and regulatory programs for reactors.
Security

— review security plans for consistency with security requirements.

For FY 2 014, the NRC requests $104.8 million, including 439.9 FTE, for licensing activities. This funding level represents an overall decrease of $27.0 million, including 43.2 FTE, when compared with

the FY 2012 enacted budget. Resources decreased to support imp lementation of the Fukushima NTTF recommendations that included a shift from New Reactors to Operating Reactors. Other changes

include a decrease because of the completion of the T hree White Flint North building, revised workload assumptions based on hist orical proje cted versus actual demand, and an agency wide effort to reduce overhead resources through increased efficiency and effectiveness

.

The Licensing Product Line supports the licensing process

— the NRC’s determination that applicants’ plans for th e development, construction, and operation of new nuclear power plants provide an adequate margin of safety and security to ensure protection of the public health and safety and the environment, consistent with the NRC’s rules and regulations.

Licensing includes reviewing and certifying new and advanced reactor designs and developing a regulatory framework, including the supporting technical basis to license advanced reactor designs.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 4**  **6** U.S. NUCLEAR REGULATORY COMMISSION The licensing workload includes the review of COL and operating licens e applications, including meetings before the Advisory Committee on Reactor Safeguards and hearing preparations before the Atomic Safety and Licensing Board Panel. A COL, issued by the NRC, authorizes the licensee to construct and, with specified conditio ns, operate a nuclear power plant at a specific site. As

of June 2012, the NRC has received 18 COL applications from the nuclear power industry, and it is currently reviewing the 10 applications that remain active (2 applications were issued licenses, 5

a pplicants requested their reviews be suspended, and 1 application was amended to become an ESP). The NRC expects to complete the licensing process for one application in FY 2013 and to continue work on the balance during FY 2014. Resources will fund envi ronmental reviews and safety reviews, which include emergency preparedness technical reviews, security plan technical reviews, security

- related assessments, and financial analysis of COL applicants. Licensing also provides the resources to support licensi ng

- related legal representation, independent advice, and adjudicatory reviews; IT for licensing activities; an operator licensing system; scheduler support; and the regulatory infrastructure for licensing activities.

The NRC issues a DC to certify a stan dard nuclear plant design that is independent of a specific

site. This DC is valid for 15 years. Budgetary resources for licensing during FY 2014 will support the ongoing review of three DCs (U.S. Evolutionary Power Reactor (U.S.

- EPR), U.S. Advanced

Pres surized

- Water Reactor (U.S.

- APWR), and Korea Hydro Nuclear Power (formerly known as Korea Electric Power Corporation)); the continuing review of one DC renewal (advanced boiling

- water reactor (ABWR)); startup reviews of a second DC renewal (ABWR); and two new DCs (Babcock & Wilcox mPower and NuScale).

Licensing resources support the review of two ESP applications received in FY 2010 and the initiation of a review of an advanced reactor ESP expected in FY 2014.

Resources also support license amendments f or post

- COL activities. The NRC projects that a significant percentage of amendments will be for important or significant design changes associated with resolving first

- of

- a

- kind construction issues. Resources also will continue to support review and

evi dentiary hearing activities; license

- related legal advice and representation, independent advice, and adjudicatory reviews; and the regulatory infrastructure for postlicensing.

Licensing resources support the expected reactivation of construction and l icensing of Bellefonte,

Unit 1.

New reactors licensing resources support incorporating interim staff guidance and lessons learned into regulatory guides and Standard Review Plans (SRPs), beginning the 5

- year update of the SRP, developing and maintaining o ther staff guidance, and providing contract support for scheduling staff reviews. Resources continue to support the staff's effort to resolve identified policy and key technical issues facing advanced reactors. In addition, these resources support the im plementation of issue resolutions through development of both new and revised rules and guidance documents. Resources also support the development and implementation of technical bases for anticipated advanced reactor applications

.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 47**  U.S. NUCLEAR REGULATORY COMMISSION **O VERSIGHT** 

STRATEGIC GOAL STRATEGIES SUPP ORTED BY OVERSIGHT Safety

— oversee the development and construction of new nuclear power reactors.
Security

— evaluate license applicants’ security plans.

For FY 2014, the NRC requests $39.1 million, including 198.3 FTE, for oversight activities. This funding level represents an increase of $3.5 million, including 1.2 FTE, when compared with the

FY 2012 enacted budget. This increase is because of the inspection of six reactors under construction and an increase in vendor inspections from 15 to 30.

The Oversight Product Line provides resources to support construction inspection activities. During

FY 2014, the NRC will develop and implement construction inspection activities to support inspection of six reactors under construction ( Vogtle, Units 3 and 4; V.C. Summer, Units 2 and 3; Bellefonte, Unit 1; and Watts Bar, Unit 2). Oversight includes resources needed for an increase in enforcement

- related casework, construction and vendor allegations, and investigations of wrongdoing. The NRC will continue inspection of construction and preoperational testing activities for Watts Bar, Unit 2, to support operation in FY 2014. For Bellefonte, Unit 1, the NRC will continue its inspections under the Deferred Plant Policy Statement on maintena nce, preservation, and documentation activities and the program to assess the condition of the facility. Budgetary resources support an increase for up to 30 vendor inspections in FY 2014 to ensure integrity of the supply chain, consistent with the expect ed increase in the number of suppliers and sites under active construction. In addition, the NRC will support the continued implementation of a formal agency wide program to monitor and evaluate counterfeit, fraudulent, and suspect items, as developed in FY 2011.

Oversight seeks to verify that the new reactor construction process adequately protects public health and safety, protects the environment, and provides high assurance of the security of facilities through verification that plants are constructed to the requirements established during the licensing process.

In FY 2014, resources are needed to continue training, development, and construction of new reactor simulators at the Technical Training Center, the training development of new licensing exami ners, and

the Fitness

- for

- Duty (FFD) Progr am, including the operation and maintenance of the electronic reporting systems for FFD performance reports.

**R ULEMAKING** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY R ULEMAKING Safety

— use sound science and state

- of

- the

- - art methods to establish, where appropriate, risk

- informed and
performance

- based regulations.
Security

— use a framework of rules and regulations to guide the security activities of the agency.

For FY 2014, the NRC requests $2.6

- million, including 14.1 FTE, for rulemaking activities. This funding level represents an increase of $0. 7 million, including 5.0 FTE, when compared with the FY 2012 enacted budget, which represents a slight increase for high

- priority rulemaking.

The Rulemaking Product Line su pports activities to maintain the safety and security framework of rules, regulatory guidance, and SRPs. This framework promotes licensee compliance with underlying safety principles and security requirements. In FY 2014, resources s upport work on four h igh

- priority rulemakings, two of which are directly related to DC activities, and the rulemaking under

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 48**  U.S. NUCLEAR REGULATORY COMMISSION 10 CFR Part 21, “Reporting of Defects and Noncompliance,” and associated guidance development to, in part, resolve commitments in response to Inspector G eneral audits. These resources also support

one medium

- priority Commission

- directed rulemaking related to amending Appendix I, “Numerical Guides for Design Objectives and Limiting Conditions for Operation To Meet the Criterion ‘As Low As Is Reasonably Ach ievable’ for Radioactive Material in Light

- Water

- Cooled Nuclear Power Reactor Effluents,” to 10 CFR Part 50 to incorporate International Commission on Radiological Protection

recommendations.

**I NTERNATIONAL**  **A CTIVITIES** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY INTERNATIONAL ACTIVI TIES Safety

— use domestic and international operating experience to inform decisionmaking.
Security

— work with international counterparts to exchange information.

For FY 2014 , the NRC requests $1.2 million, including 7.0 FTE, for I nternational Activities. This funding level represents an overall decrease of $0.3 million, including 2.5 FTE, when compared with the

FY 2012 enacted budget, which does not represent a significant change in workload

.

The International Product Line supp orts the NRC’s interface with international counterparts to exchange information, expertise, operating experience, and research results. These activities help the NRC recognize and respond to emerging technical issues and to promote best safety and securi ty practices. Resources support the continued participation in the Multinational Design Evaluation Program that will continue international exchanges of licensing and construction inspection activities to potentially increase safety at U.S. sites.

**R ESEA**  **RCH**

STRATEGIC GOAL STRAT EGIES SUPPORTED BY RESEARCH Safety

— improve the NRC’s regulatory programs and apply safety

- focused research to anticipate and resolve
safety issues.
Security

— use research to inform the security activities of the agency.

For FY 2 014, the NRC requests $9.1 million, including 27.3 FTE, for research activities. This funding level represents an overall decrease of $0.5 million, including 9.7 FTE, when compared with the

FY 2012 enacted budget, which does not represent a significant ch ange in workload

.

The NRC’s research program mission is to evaluate and resolve safety issues for nuclear power plants and other facilities and materials that the agency regulates. This includes evaluating existing and potential safety issues; supplyi ng independent expertise, information, and technical judgments to support timely and realistic regulatory decisions; reducing uncertainties in risk assessments; and developing technical regulations and standards.

New reactors research funding supports t he resolution of technical issues in DC reviews; development of regulatory guidance for new reactor licensing; advancement of the NRC’s knowledge of, and infrastructure for, earthquake engineering; and development of new reactor plant models. Research

res ources also support the advanced reactors program, including the development of expertise, tools,

and data in thermal

- hydraulics, severe accidents, probabilistic risk assessment, and seismic and

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 49**  U.S. NUCLEAR REGULATORY COMMISSION structural analysis. Advanced reactor program research will support the review of integral pressurized

- water reactors.

**G ENERIC**  **H OMELAND**  **S ECURITY** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY GENERIC HOMELAND SEC URITY Safety

— effectively respond to events at NRC

- licensed facilities and other events of national interes t, including
maintaining and enhancing the NRC’s critical incident response and communication capabilities.
Security

— support Federal response plans that use an approach to the security of nuclear facilities and
radioactive material that integrates the eff orts of licensees and Federal, State, local, and Tribal authorities.

**T HE**  **NRC REVIEWED THE ACTIVIT**  **IES UNDER THE DEFINI TIONS FOR THE**  **G ENERIC**  **HLS PRODUCT AND SHIFTED**  **SOME**

**RESOURCES TO NON**

**- G**  **ENERIC HLS**  **PRODUCTS IN ORDER TO MORE ACCURATELY ALIG**  **N RESOURCES TO TH E PLANNED** 

**WORKLOAD**

**.**

**S IGNIFICANT**  **A CCOMPLISHMENTS IN**  **FY 2012** 

The NRC continued the technical and safety reviews of 10 COLs, 2 ESPs, 2 DC amendments, and

2 DC renewals. The agency issued the first

- ever COLs for Vogtle and V.C. Summer along with a

limited w ork authorization for Vogtle. The NRC prepared two high

- priority rulemakings for the Westinghouse AP1000 and ABWR final rule.

In addition, the staff completed the final supplemental environmental impact statement for Levy County

COL. The NRC continue d its safety and environmental reviews of two ESP applications: Victoria County and PSE&G. In August 2012, the ESP application for Victoria County Station was withdrawn by the applicant. The NRC initiated pre

- licensing activities for the Blue Castle ESP application.

The agency provided Congress with a report describing the staff’s overall strategy to prepare for reviewing advanced reactor designs. The NRC continued pre

- application reviews for two small modular reactors. The NRC also began an extensive inspection and licensing effort associated with the reactivation of the Tennessee Valley Authority Watts Bar unit 2 Nuclear Power Plant.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 50**  U.S. NUCLEAR REGULATORY COMMISSION **O UTPUT**  **M EASURES** 

L ICENSING

Review ESP Applications on the Schedules Negotiated with the Applicants

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Complete one ESP review (Vogtle). No ESPs planned

for FY 2010. No ESPs planned

for FY 2011. Review Victoria

and PSE&G
applications.* TBD Continue Victoria

and PSE&G

reviews.

Actual Issued Vogtle ESP

review on

schedule. Completed

milestones for two

ESP reviews (Vogtle and
PSE&G). No ESPs conducted
during FY 2011. Continued review

of the PSEG ESP
application. The

Victoria County ESP application

was withdrawn in

August 2012.

*Change in previously reported FY 2 012 because of resource planning changes.

Review DC Applications on the Schedules Negotiated with the Applicants

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Complete

milestones

necessary to
support ESBWR,

U.S.

- EPR , and

U.S.

- APWR DC

revi ews. Complete

review of AP1000
DC application. Complete review

of ESBWR DC
application (rulemaking) and

AP1000 amended
application (rulemaking) and

continue review of

U.S.

- EPR and

U.S.

- APWR DC applications. Complete review

of ESBWR DC
application
(rulemaki ng) and

AP1000 amended
application (rulemaking) and

continue review of

U.S.

- EPR and

APWR DC applications. Complete
rulemaking

activities for

AP1000

amendment and

ESBWR and ABWR

AIA amendment.
Complete review
of EPR design.
Begin rulemaking

activities for the

EPR and the

U.S.

- APWR.* TBD Continue review of

U.S.

- APWR,
KEPCO, and one

ABWR DC renewal.
Begin milestones

necessary to support the

second U.S.

- ABWR

DC renewal.
Complete review

of U.S.

- EPR design
and rulemaking.

Continue rulemaking

activities for

U.S.

- APWR.

Actual Completed

milestones

necessary to support the

ESBWR, U.S.

- EPR,

and U.S.

- APWR

DCs.

Completed

milestones

associated with
ABWR design

certification

amendment. Completed

milestones to

support

U.S.

- ESBWR,

U.S.

- EPR, AP1000
amendment,

U.S.

- A PWR design,

and U.S.

- ABWR

amendment

reviews

. Completed review

of ESBWR DC
application (rulemaking) and

AP1000 amended
application (rulemaking) and

continued review

of U.S.

- EPR and

U.S.

- APWR. Completed AP1000

DC amendment

and the U.S.

- ABWR

amendment.

*C

hange to previously reported the FY 2012 and FY 2013 target is because the applicant inability to provide complete and timely submittals to allow the
staff to complete safety reviews on the previously agreed upon schedules has led to the need to revise com pletion dates associated with the ESBWR, U.S.

- EPR, and U.S.

- APWR

.

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 51**  U.S. NUCLEAR REGULATORY COMMISSION Review Small Modular Reactor DC Applications on the Schedules Negotiated with the Applicants

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in FY

2013 TBD Complete

milestones

necessary to support the review

of two SMR DC
applications

Actual

*Change to previously reported FY 2012 target because of resource planning changes. Excludes Watts Bar, Unit 2; Bellefonte, Unit 1; and Clinch

- River.

**Five of t he 17 COLs scheduled for review during FY 2011 remained in a suspended status (outside of the NRC’s control).

***Excludes Watts Bar, Unit 2, and Bellefonte, Unit 1.

Identify and Resolve Policy and Key Technical Issues Facing the Review of SMR Applications
Implement Resolutions through Rule Changes or Guidance Development

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure for

FY 2013 TBD Complete milestones

necessary to support

the resolution of
policy and key

technical issues. I n addition, complete
milestones necessary

to support implementation of

resolutions.

Actual

Review SMR Preapplication Submittals on the Schedules Negotiated with the Applicants

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in

FY 2013 TBD Complete

milestones

necessary to

support preapplication

activities for

two DC
applications .

Actual

Review SMR COL and Construction Permit Applications on the Schedules Negotiated with the Applicants

FY 20 09 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in FY

2013 TBD Complete

milestones

necessary to support the review

of the TVA

construction
permit.

Actual

## NUCLEAR REACTOR SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 52**  U.S. NUCLEAR REGULATORY COMMISSION O VERSIGHT

Complete All Vendor Inspections as Scheduled and Resource d

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in FY

2010 Complete 10

domestic and

international

vendor

inspections. Complete 15

domestic and

international

vendor

inspections. Complete 15

domestic and

international

vendor

ins pections. TBD Complete 30

domestic and

international

vendor

inspections.

Actual Completed 11

vendor
inspections, 6
quality assurance
implementation
inspections, and 3
aircraft impact

assessment
inspections. Completed 15

domestic and

international

vendor
inspections. Completed 27

vendor
inspections

.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 53**  U.S. NUCLEAR REGULATORY COMMISSION

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 54**  U.S. NUCLEAR REGULATORY COMMISSION

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 55**  U.S. NUCLEAR REGULATORY COMMISSION 

## NUCLEAR MATERIALS AND WASTE SAFETY

NUCLEAR MATERIALS AND WASTE SAFETY STRATEGIC GOALS Safety

— ensure adequate protection of public health and safety and the environment.
Security

— ensure adequate prote ction in the secure use and management of radioactive materials.

The Nuclear Materials and Waste Safety Program encompasses the U.S. Nuclear Regulatory Commission (NRC) efforts to ensure that nuclear materials are used and that waste is managed in a

mann er that adequately protects the health and safety of the public, protects the environment, and promotes the common defense and security. Through this program, the NRC regulates uranium processing and fuel facilities; nuclear materials users (medical, indu strial, research, and academic); spent fuel storage; transportation of radioactive materials; decontamination and decommissioning of facilities; and low

- level and high

- level radioactive waste. This program contributes to the NRC’s Safety and Security goal s through activities of the Fuel Facilities, Nuclear Materials Users, Spent Fuel Storage and Transportation, Decommissioning and Low

- Level Waste Business Lines that license and regulate nuclear materials and waste to ensure their safe and secure handling. The Atomic Energy Act of 1954, as amended; the Energy Reorganization Act of 1974, as amended; the Nuclear Waste Policy Act of 1982; and the Energy Policy Act of 2005 are the foundations of the NRC’s regulatory authority.

The nuclear fuel cycle process in cludes extraction of uranium from the ore, conversion of the uranium into a form suitable for enrichment, enrichment of the uranium to a level and type suitable for nuclear fuel, and use of the enriched uranium in fabricating fuel assemblies for use in nuc lear reactors. The NRC licenses, oversees, and regulates the facilities involved in the process. Nuclear materials have many industrial, medical, and academic uses outside the nuclear fuel cycle. The NRC licenses, oversees, and regulates large and small users of nuclear materials, such as radiographers, hospitals, private physicians, nuclear gauge users, irradiators, and universities. Licensees with special nuclear material (SNM) verify and document their inventories in the Nuclear Materials Management and Safeguards System (NMMSS) database, which tracks material transfers and inventories. Both the NRC and the Agreement States carry out their respective radiation safety regulatory programs for

nuclear materials users under the framework of the National Materials Program (NMP). This covers activities solely carried out by the NRC and 37 Agreement State programs, such as licensing, inspection, response to incidents, staffing and training, and enforcement and investigation.

About three million packages of radioactive materials are shipped each year in the United States by road, rail, air, or water. Regulating the safety of commercial radioactive material shipments is the joint responsibility of the NRC and the U.S. Department of Transportation. The NRC reviews and certifies shipping packages for the commercial transport of large quantities of radioactive materials to ensure transportation safety. In addition, the NRC reviews and certifies shipping package designs for the

U.S. Department of Energy’s non commercial transuranic waste shipments.

The NRC ensures safety and security in the management and disposition of radioactive waste. Nuclear waste is categorized as either low

- level radioactive waste (LLW) or high

- level radioactive waste (HLW).

The NRC and the Agreement States regulate the management and disposition of LLW. The NRC or Agreement States license, oversee, and regulate commercial LLW disposal facilities.

The majority of HLW is the irradiated fuel from commercial nuclear power reactors. Th e NRC licenses, oversees, and regulates the management and disposition of HLW from commercial nuclear power plants and other reactors. Irradiated fuel initially is stored in pools at reactor sites; after an appropriate time period, it is moved to dry stor age. Dry storage is done in casks, or canisters, that the NRC has

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 56**  U.S. NUCLEAR REGULATORY COMMISSION certified for such use. These casks are stored at independent spent fuel storage installations that the NRC licenses and regulates.

Decommissioning is the safe removal of a nuclear faci lity from service and reduction of residual radioactivity to a level that permits release of the property and termination of the NRC license. The NRC and Agreement States regulate the decontamination and decommissioning of uranium recovery facilities, mat erials and fuel cycle facilities, nuclear power plants, and research and test reactors.

Security efforts in this program include safeguards and security reviews and inspections, Force

- on

Force (FOF) exercises for certain fuel cycle facilities, regulatory improvements, and implementation of a national registry (i.e., the National Source Tracking System (NSTS)) of radioactive sources of concern and the Integrated Source Management Portfolio (ISMP). The NRC will continue to maintain a high

state of incident response readiness and coordination with other Federal, State, and local agencies.

Nuclear Materials and Waste Safety (Dollars in Millions)

FY 2012

Enacted FY 2014
Request Delta

FY 2014

– FY 2012

Business Line $M FTE $M FTE $M FTE

Fuel Facilities 56.1 228.4 60.2 237.7 4.1 9.3

Nuclear Materials

Users 93.0 344.7 86.9 318.7 (6.1) (25.9)

Spent Fuel Storage and Transportation 40.8 155.1 45.4 160.7 4.6 5.6

Decommissioning

and Low

- Level Waste 37.3 142.1 39.0 142.1 1.8 (0.0)

Total $227.1 870.4 $231.5 859.2 $4.4 (11.1)

Numbers may not add due to rounding.



### PROGRAM RESOURCE SUMMARY

The FY 2014 proposed budget request for Nuclear Materials and Waste Safety is $231.5 million, which includes $94.1 million in contract su pport and travel, and $137.4 million in salaries and benefits to support 859.2 full

- time equivalents (FTE). This would fund activities in Fuel Facilities, Nuclear Materials Users, Spent Fuel Storage and Transportation, and Decommissioning and LLW Business Lines. This funding level represents an increase of $4.4 million, including a decrease of 11.1 FTE when compared

with the FY 2012 enacted budget, which is primarily because of support for a revised Waste

Confidence decision.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 57**  U.S. NUCLEAR REGULATORY COMMISSION 

### FUEL FACILITIES

Fuel Facili ties by Product Line (Dollars in Millions)

FY 2012

Enacted FY 2014
Request Delta

FY 2014

– FY 2012

Product Line $M FTE $M FTE $M FTE

Licensing 10.8 54.3 9.3 43.4 (1.5) (10.8)

Oversight 17.8 103.0 20.3 112.6 2.5 9.6

Rulemaking 1.8 8.0 2.5 12.7 0.7 4.7

International Activities 1.1 5.1 2.0 11.4 0. 9 6.3

Research 0.5 1.4 0.1 0.8 (0.3) (0.6)

Ge neric HLS 3.1 8.4 2.8 5.2 (0.3) (3.2)

Event Response 0.6 3.5 0.6 3.5 0.0 (0.0)

Subtotal $35.7 183.6 $37.7 189.5 $2.0 6.0

Corporate Support 20.4 44.9 22.5 48.2 2.1 3.3

Tota l $56.1 228.4 $60.2 237.7 $4.1 9.3

Numbers may not add due to rounding.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 58**  U.S. NUCLEAR REGULATORY COMMISSION The Fuel Facilities Business Li ne activities ensure that fuel cycle facilities are licensed and operated in a manner that adequately protects the public health and safety, protects the environment, and

p romotes the common defense and security. Once uranium ore has been mined and milled (extraction of uranium from the ore), it moves on to conversion, enrichment, and fuel fabrication

f acilities. Conversion of the uranium changes it into a form suitable for enrichment. Enrichment processes the uranium to a level and type suitable for nuc lear fuel, and fabrication uses the enriched

uranium to make fuel assemblies for nuclear reactors. The NR C licenses, oversees, and regulates fuel cycle facilities, such as conversion, enrichment, and fuel fabrication facilities, as well as nuclear fuel

re search and pilot facilities. There are four uranium enrichment facilities and seven licensed major fuel fabrication and production facilities in the United States.

In fiscal year (FY) 2014, the NRC will oversee the construction of (1) the General Electr ic

- Hitachi laser enrichment facility, (2) the AREVA centrifuge enrichment facility, and the (3) International Isotopes (INIS) depleted uranium deconversion facility and will continue conducting primary syste ms, structures, and components verifications for the Mixed

- Oxide (MOX) Fuel Fabrication Facility. The NRC will continue to oversee operation of the other fuel cycle facilities.

The NRC will continue to evaluate routine license amendments to support changes in the plans for construction of approved fa cilities and in the operation of existing licensed facilities. Licensed fuel facilities possess spe cial nuclear material (SNM), such as plutonium and enriched uranium. These SNM licensees verify and document their inventories and material transfers in th e Nuclear Materials Management and Safeguard System (NMMSS) database.

Fuel Facilities Business Line activities also include the Nuclear Materials Information Program and the interagency agreement with the U.S. Department of Energy (DOE) for certificatio n and accreditation of classified computer systems at enrichment facilities. Other activities include environmental, emergency preparedness, and licensee performance reviews; legal advice and representation; adjudicatory hearing

- related activities; indepe ndent review and advice; security support for licensing activities; inspection oversight; allegations and enforcement activities; rulemaking; international cooperation and assistance; International Atomic Energy Agency (IAEA) missions; export and import li censing; and treaties, agreements, and conventions.

The NRC has organized the activities of the Fuel Facilities Business Line into product lines that best support Safety and Security strategies and accomplish strategic outcomes as they relate to fuel cycl e facilities. The resources requested support all direct aspects of planned activities within the following seven product lines: Licensing, Oversight, Rulemaking, Research, International Activities, Generic Homeland Security, and Event Response.

The o utputs of the product lines under this business line contribute to the scoring of the NRC Safety and Security Performance Measures and their contribution to the achievement of the agency’s Strategic

Outcomes.

**C HANGES FROM**  **FY 2012**  **E NACTED**  **B UDGET** 

Resources increase to support construction oversight at the MOX, AREVA, General Electric

- Hitachi and INIS facilities; continued enhancements to the fuel cycle oversight process (FCOP) and the oversight infrastructure; and activities related to applications of Inter national Safeguards at enrichment facilities, such as Louisiana Energy Services (LES), General Electric

- Hitachi, and AREVA Eagle

Rock. These increases were partially offset by decreases to reflect the transfer of funding to support the medical isotope app lication review under Title 10 of the Code of Federal Regulations (10 CFR)

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 59**  U.S. NUCLEAR REGULATORY COMMISSION Part 50, “Domestic Licensing of Production and Utilization Facilities,” that the Operating Reactor Business Line is funding and by a decrease in security support for licensing activ ities.

**L ICENSING** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY L ICENSING Safety

— develop, maintain, and implement licensing and regulatory programs for fuel facilities ’ material,
spent fuel management, waste management, uranium recovery, and decommissioning.
Security

— review security plans and changes for consistency with security requirements.

For FY 2014, the NRC requests $9.3 million, including 43.4 FTE, for licensing activities. This funding level represents a decrease of $1.5 million, including 10.8 FTE , when compared with the FY 2012 enacted budget. This decrease is because of the completion of existing license applications and the

issuance of licenses.

Activities under the Licensing Product Line confirm that requests for new facilities and license re newals and amendments are consistent with the NRC’s rules and regulations to ensure the adequate protection of the public health and safety, to protect the environment, and to promote the common defense and security.

Licensing provides resources for the following:

• Licensing actions for conversion and deconversion, enrichment, fuel fabrication and greater than critical mass (GTCM) facilities, including new facilities at MOX, AREVA, General

Electric

- Hitachi, and INIS. Resources allow for project managemen t, technical reviews, and financial assurance and decommissioning plan reviews of all new applications, amendments, and renewals. In addition, resources support interagency agreements for classified computer networks. Resources also allow the Advisory Co mmittee for Reactor Safe guards members and staff to provide timely and independent advice to the Commission on fuel

- cycle

- related matters. Further, resources support adjudicatory hearing

- related activities and legal advice and representation on issues ass ociated with licensing.

• Licensing support and reviews, including support to assist in the review of new reactor environmental reports and preparation of environmental impact statements, material control and accounting (MC&A), safeguards and criticality saf ety support to reactors, new reactors, and

decommissioned sites.

• Emergency preparedness licensing reviews for operating fuel cycle facilities. Resources provide continued support for annual reviews of emergency plans for fuel fabrication facilities

and review and analysis of licensee amendment requests.

• Environmental reviews for fuel cycle facility license applications, license renewals, amendments and preapplication activities. Additionally, resources support reviews for license transfer applications, provide hearing support for license applications, and provide support during license renewal. Examples include one complex amendment (Westinghouse Electric Corporation’s potential change to a dry conversion process ); INIS Phase 2; a license application

f or a source detection experiment and testing facility under 10 CFR Part 70, “Domestic Licensing of Special Nuclear Material”; and an MOX facility expansion.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 60**  U.S. NUCLEAR REGULATORY COMMISSION • Regulatory activities related to agency followup to the Fukushima event, including actions from

th e Fukushima Near

- Term Task Force, and inspections conducted under Temporary

Instruction 2600/015, “Evaluation of Licensee Strategies for the Prevention and/or Mitigation of Emergencies at Fuel Facilities.”

• Security support for licensing activities (includ es fuel manufacturing facilities, new enrichment technologies, and enrichment and conversion facilities), including interoffice coordination and support for the increased number of operating facilities (LES and U.S. Enrichment Corp (USEC)).

**O VERSIGHT** 

S TRATEGIC GOAL STRATE GIES SUPPORTED BY OV ERSIGHT Safety

— oversee licensee safety performance through inspections, investigations, enforcement, and
performance assessment activities.
Security

— oversee licensee security performance through inspections and Forc e

- on

- Force exercises.

For FY 2014, the NRC requests $20.3 million, including 112.6 FTE, for oversight activities. This funding level represents an increase of $2.5 million, including 9.6 FTE, when compared with the

FY 2012 enacted budget. This increase is because of increased oversight to support significant

construction activities.

The oversight process ensures that licensees take appropriate actions to maintain acceptable operating performance to ensure the adequate protection of the public health an d safety, to protect the environment, and to promote the common defense and security. The oversight process also ensures that facilities under construction are built in accordance with NRC requirements.

The Oversight Product Line supports the following :

• Overall management of the oversight program for fuel facilities, including development and maintenance of policies, programs, and procedures for inspections of operating facilities and facilities under construction; assessment of the implementation of t he inspection program; development a fuel cycle operating experience program; and development of a risk

- informed FCOP. Resources also support coordination of inspection procedures, event coordination, and

the MOX primary systems, structures

, and component s verification inspections. Resources support regional baseline and reactive inspections of operating fuel facilities and facilities under construction. This includes inspections of the Lead Cascade, Babcock & Wilcox, Nuclear Fuel Services, Paducah, Hone ywell, Westinghouse, Global Nuclear Fuels, AREVA

- Richland, URENCO USA, Global Laser Enrichment, MOX Fabrication, and INIS facilities. Resources also support the increase in construction and operational readiness for the MOX Fuel Fabrication Facility, AREV A

- Eagle Rock, General Electric

- Hitachi, and the INIS. Resources allow for regional support to FCOP and infrastructure enhancements and for regional inspections at

General Electric

- Vallecitos.

• Review of investigation reports, processing of enforcement act ions, and oversight of project and contract management on the external safety culture and Alternative Dispute Resolution (ADR) Programs.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 61**  U.S. NUCLEAR REGULATORY COMMISSION • Maintenance of baseline inspections for safety, security, physical projection, Force

- on

- Force, and reactive inspecti ons of operating facilities. Inspection oversight will increase as LES, USEC/American Centrifuge Plant (ACP), AREVA, General Electric

- Hitachi, MOX, and INIS begin or continue to construct their facilities. Inspection frequency has increased for these

fac ilities based on concerns about control of access to sensitive information. In addition, the NRC is committed to enhancing FCOP to be more effective and efficient.

**R ULEMAKING** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY R ULEMAKING Safety

— maintain a framewor k of rules, regulatory guidance, and standard review plans that promote licensee
compliance with underlying safety principles.
Security

— use a risk

- informed approach to implement appropriate regulatory controls for the possession,
handling, import, export, and tran ssh ipment of radioactive materials.

For FY 2014, the NRC requests $2.5 million, including 12.7 FTE, for rulemaking activities. This funding level represents an increase of $0.7 million, including 4.7 FTE, when compared with the FY 2012

enacted budget

. This increase is to support cyber security, chemical security, and fitness for duty. The Rulemaking Product Line supports developing cyber security regulations for fuel cycle facilities

.

In addition, r esources provide support for rulemaking in security

- related areas , including enhanced security at fuel cycle facilities (Category I, II, and III and gaseous diffusion plants) . T his supports guidance development, outreach, and work with the interagency on material attractiveness. Further,

resource s will support proposed rule development and the updating of regulatory guidance for the enhancements to fuel cycle and special nuclear material (SNM) security.

**I NTERNATIONAL**  **A CTIVITIES** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY I NTERNATIONAL ACTIVIT IES Saf ety

— use international collaboration and coordination to inform decisionmaking.
Security

— promote U.S. national security interests and nuclear proliferation policy objectives for NRC

- licensed
imports and exports of source and SNM and nuclear equipment

**.**

Fo r FY 2014, the NRC requests $2.0 million, including 11.4 FTE, for international activities. This funding level represents an increase of $0.9 million, including 6.3 FTE, when compared with the

FY 2012 enacted budget

. Resources primarily increase to reflec t the reallocation of activities from the Material Users business line to more accurately align resources by business line. Resources also increase to strengthen IAEA safeguards approach to enrichment facilities being licensed and to support

an increase i n bi

- lateral meetings to discuss safeguards approach at enrichment facilities and other fuel cycle facilities

.

The NRC works with international counterparts to exchange information, expertise, operating experiences, and ongoing research to recognize and r espond to emerging technical issues and to promote best safety and security practices. The International Activities Product Line supports the application of IAEA safeguards to fuel cycle facilities, international coordination, and assistance on

next

- gener ation safeguards designs.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 62**  U.S. NUCLEAR REGULATORY COMMISSION The International Activities Product Line supports the following:

• Activities that include obligation tracking reviews, approvals, and treaty compliance activities that support the nonproliferation treaty, and Additional Protoc ol treaty for all NRC licensees (including Agreement States licensees).

• Activities involved in import and export license applications reviews, DOE Part 0810

**,** and import and export of technology and equipment.

• Training and assistance to other countries thro ugh existing multilateral and bilateral agreements and through bilateral and multilateral discussions with, and support for, other countries and international organizations on physical protection matters.

• Bilateral visits involving physical protection c onducted with other countries possessing or obtaining U.S.

- origin SNM to conduct import or export licensing reviews.

**R ESEARCH** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY R ESEARCH Safety

— improve the NRC’s regulatory programs and apply safety

- focused research to anticipate and resolve
safety issues.
Security

— use research to inform the security activities of the agency.

For FY 2014, the NRC requests $0.1 million, including 0.8 FTE, for research activities, which is a decrease of $0.3 million, including 0.6 FT E, when compared to the FY 2012 enacted budget. Resources decrease to reflect the completion of reviews of fuel cycle facility applications and a long

term research project on advanced reprocessing. This decrease is partially offset by an increase to

supp ort the revised Fuel Cycle Oversight Program and cable fire testing for fuel facilities

.

The Research Product Line supports the NRC’s regulatory mission by providing technical advice, tools, and information to identify and resolve safety issues and to mak e regulatory decisions. This includes conducting confirmatory experiments and analyzing and preparing the agency for the future by evaluating the safety aspects of new technologies. Resources support user needs related to the FCOP and cable fire testing for fuel facilities.

**G ENERIC**  **H OMELAND**  **S ECURITY** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY G ENERIC HOMELAND SECU RITY Safety

— conduct NRC safety, security, and emergency preparedness programs in an integrated manner.
Security

— support Federal response plans tha t use an approach to the security of nuclear facilities and
radioactive material that integrates the efforts of licensees and Federal, State, local

, and Tribal authorities.

In FY 2014, the NRC requests $2.8 million, including 5.2 FTE for generic homeland security activities. This funding level represents a decrease of $0.3 million and 3.2 FTE when compared with the FY 2012 enacted budget, which does not represent a significant change in workload.

The Generic Homeland Security Product Line supports secur ity activities related to intergovernmental

coordination and communication. It also supports security activities that are not plant

- specific nor associated with a rulemaking, licensing, inspection, or oversight.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 63**  U.S. NUCLEAR REGULATORY COMMISSION Resources support the NMMSS database, NMI P, and a contract with U.S. Department of Army to monitor domestic travel of classified technology. Resources also support activities related to intergovernmental coordination and cooperation and communication on homeland security matters.

**E VENT**  **R ESPONSE** 

STRATEGIC GOAL STRAT EGIES SUPPORTED BY E VENT RESPONSE Safety

— effectively respond to events at NRC

- licensed facilities and other events of national interest, including
maintaining and enhancing the NRC’s critical incident response and communication capab ilities.
Security

— support Federal response plans that use an approach to the security of nuclear facilities and
radioactive material that integrates the efforts of licensees and Federal, State, local, and Tribal authorities.

In FY 2014, the NRC requests $0.6 million, including 3.5 FTE, for event response activities, which does not represent a significant change in resources or workload when compared with the FY 2012 enacted budget.

The Event Response product line supports efforts to develop and enhance the fuel facilities event response program, plans, and procedures. Resources provide for one full

- participation emergency preparedness exercise with an operating fuel facility. Resources also support the development and maintenance of the response capabi lity associated with fuel facility

- related incidents (i.e., emergency response coordinators, a training and qualification program, procedures, intra

- and interagency coordination and outreach, and incident response actions for fuel facility licensees). Ad ditional

resources have been added to maintain 24 hour mobile response program , which will be used to predict chemical effects in drills and in real events at fuel facilities.

**S IGNIFICANT**  **A CCOMPLISHMENTS IN**  **FY 2012** 

The agency completed review of the Gen eral Electric

- Hitachi license application for the Wilmington laser enrichment facility and issued the safety evaluation report (SER) and FEIS in February 2012. The NRC staff concluded that the license application provides an adequate basis for safety and safeguards and that the operations from the proposed activities will not pose an undue risk to worker or public health and safety. The staff conducted a public meeting on May 10, 2012, in Wilmington to discuss its FEIS and SER findings. The mandatory hea ring was held in July 2012 in Rockville, MD. The Atomic Safety and Licensing Board ( ASLB) issued its determination decision in September 2012.

In December 2010, the agency issued the final SER for the license application by Shaw AREVA MOX Services, LLC , to possess and use radioactive material at the MOX fuel fabrication facility at the DOE’s Savannah River Site near Aiken, SC. The SER was reviewed and approved. The licensing hearing

was held on March 7

– 9, 2012. The ASLB made a ruling on June 29, 2012 . In that ruling, the ASLB determined that additional information is needed from the applicant before disposition of the

contentions can be made.

In May 2012, the agency issued the SER for the license application by International Isotopes Fluorine

Produc ts (IIFP) to construct and operate a facility to convert depleted uranium hexafluoride into an oxide form for ultimate disposal and to recover the fluorine for other commercial applications. The SER for IIFP was completed in May 2012 and published as NURE G

- 2116, “ Safety Evaluation Report for the International Isotopes Fluorine Products, Inc., Fluorine Extraction Process and Depleted Uranium Deconversion Plant in Lea County, New Mexico .” In August 2012, the FEIS was completed and published as NUREG

- 2113, “ Final Environmental Impact Statement for the Proposed Fluorine

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 64**  U.S. NUCLEAR REGULATORY COMMISSION Extraction Process and Depleted Uranium Deconversion Plant .” The license was issued in

October 2012. Construction is scheduled to begin in mid

- 2013.

During FY 2012, the agency continued to d efine the technical basis needed to support the development

of possible future regulations related to reprocessing facility licensing to resolve gaps and support an effective and efficient regulatory framework.

In FY 2009, the agency began an initiative to revise and consolidate the regulations for MC&A of SNM. During FY 2010, staff began developing the draft rule text, and this work continued into early

FY 2013. The draft rule text is expected to be released for public comment in early FY 2014.

A pro posed rule and draft guidance to require an integrated safety analysis for certain 10 CFR Part 40 facilities was published in the Federal Register on May 17, 2011. The public comment period ended in September 2011, and the staff considered public comments for the proposed Draft Final Rule. The Draft Final Rule is currently with the Commission for consideration.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 65**  U.S. NUCLEAR REGULATORY COMMISSION **O UTPUT**  **M EASURES** 

L ICENSING

Timeliness of Completing “Complex” Fuel Cycle Licensing Actions, from the Date of Acc eptance, Excluding Requests for

Additional Information (RAIs) with an Assumption of 30

- Day Response to a Request for Additional Information

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in FY

2012 100% ≤ 1.5 years (yr) 100% ≤ 1.5 yr 100% ≤ 1.5 yr TBD 100% < 1.5 yr

Actual 100% ≤ 1.5 yr 98% ≤ 1.5 yr* 96% ≤ 1.5 yr**

*The late licensing action was a complex review that included four separate actions. The licensee did not provide the final version in response to RAIs until late in the process
(500 days). A field verification was required following receipt of the final documents, and the action was closed in 599 days.

**The late licensing action was due to the management decision to focus on high er priority licensing working, challenging and contentious nature of the safety and
environmental reviews, extensive stakeholder interactions, and changing expectations in the depth and detail of the SER. The staff is developing and implementing lessons

l earned to improve the license renewal process and other significant licensing actions.

Timeliness of Completing "Noncomplex" Fuel Cycle Licensing Actions (e.g., Amendments and Reviews) from the Date of Acceptance, including a 30

- Day Response for a n RAI

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in FY

2010 85% ≤ 150 days

100% < 1 yr 85% ≤ 150 days

100% < 1 yr 85% ≤ 150 days

100% < 1 yr TBD 85% ≤ 150 days

100% < 1 yr

Actual 92% ≤ 150 days

100% < 1 yr 92% ≤ 150 days

100% < 1 yr 93% ≤150 days
100% ≤ 1 yr

New Fuel Facilities Hearing Support*

FY 2009 FY 2 010 FY 2011 FY 2012 FY 2013 FY 2014

Target New efficiency
measure to begin

in FY 2011 Actual hours
expended on
major tasks in
support of
licensing board
hearings, as

documented in the
Fuel Cycle Safety
and Safeguards

Division Operating
Plan, will no t

exceed the
projected hours by

more than 10%.* Actual hours
expended on
major tasks in
support of
licensing board
hearings, as

documented in the
Fuel Cycle Safety
and Safeguards

Division Operating
Plan, will not

exceed the
projected hours by

more than 10% .* TBD Actual hours
expended on
major tasks in
support of
licensing board
hearings, as

documented in the
Fuel Cycle Safety
and Safeguards

Division Operating
Plan, will not

exceed the
projected hours by

more than 10%.*

Actual Target was met. Target was m et.

*Targets, baselines, and calculation methods are under development, and the measure may be revised.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 66**  U.S. NUCLEAR REGULATORY COMMISSION O VERSIGHT

Timeliness in Completing Reviews for Technical Allegations

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 90% ≤ 150 days
95% ≤ 180 days
100% ≤ 360 days 90% ≤ 150 days
95% ≤ 180 days
100% ≤ 360 days 90% ≤ 150 days
95% ≤ 180 days
100% ≤ 360 days 90% ≤ 150 days
95% ≤ 180 days
100% ≤ 360 days TBD 90% < 150 days

95% < 180 days

100% < 360 days

Actual 100% ≤ 150 day s
100% ≤ 180 days
100% ≤ 360 days 81% ≤ 150 days*

96% ≤ 180 days
100% ≤ 360 days 97% ≤ 150 days

98% ≤ 180 days
100% ≤ 360 days 94% ≤ 150 days

97% ≤ 180 days **97% ≤ 360 days

*This metric was not met because allegations in the first quarter were not b eing closed in ≤ 150 days. Three of the four were affected by regional staff
reassignments and case complexities requiring substantial staff and management review. The fourth case involved issues of du al regulation between the

NRC and the U.S. Environmen tal Protection Agency (EPA) and required extensive research of EPA requirements and communications with State
representatives. The region focused attention in this area throughout the remainder of FY 2010 (closed all but one fuel facility allegation in th e second and third quarters in ≤ 150 days), but it was ultimately unable to meet the metric primarily because of the considerable staff an d management effort required
to evaluate three new fuel facility allegations in the fourth quarter of FY 2010 that eac h involved unusually large numbers of concerns, causing the time
needed for closure to be greater than 150 (but less than 180) days.

**Allegations referred to the Office of Enforcement (OE) by the Office of the Inspector General (OIG) were misplaced by OE in mid October 2010, resulting in extensive delay (13 months or more) in allegation processing. The package from OIG was relocated in February 2012. The allegations involved Region II fuel cycle facilities and, once identified, were promptly forwarded to OE in Region II. One of the two allegations was subsequently closed in the second
quarter of FY 2012, and the other remains open pending the results of an OI investigation. After discovery, the OE Allegation Program staf f discussed the

occurrence with O IG, Region II, and the agency’s office allegation coordinators (OACs). OE discussed the event internally, and the Director of OE prepar ed a
memorandum to all OE staff, reminding them of the event, staff responsibilities, and actions to prevent reoccurrenc e.

Safety and Safeguards Inspection Modules
Complete All Core and Reactive Inspection Modules as Scheduled in Fuel Cycle Master Inspection Plan

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Complete 286

inspection

modules. Comp lete 286

inspection

modules. Complete 328

inspection

modules.* Complete 307

inspection

modules.* Measure

discontinued in FY

2013.

Actual Completed 286

inspection

modules. Completed 289

inspection

modules. Completed 320

inspection

modules.** Completed 318

inspection

modules

*USEC/ACP began enrichment operations during FY 2010. LES is not expected to begin operations until after FY 2012.

**An MC&A inspection scheduled for LES in February was postponed to coincide with upcoming readiness review inspecti ons; a low

- enriched NFS inspection
scheduled for July was moved to October to coincide with the high

- enriched inspection; and an LES inspection report that was not issued in this fiscal year
to resolve a nonconcurrence. Since the inspection program is con ducted by calendar year (CY), postponement of the MC&A LES and NFS inspections to the
first quarter of FY 2012 (while still in CY 2011 inspection year) will support completion of the core program.

Timeliness of Safety and Safeguards Inspection Mod ules
Complete Core Inspection Modules As Scheduled in Fuel Cycle Master Inspection Plan

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target > 97% completed

on time > 97% completed

on time > 99% completed

on time > 99% completed

on time Measure

discontinued in FY

2013.

Actual 100% completed

on time 100% completed

on time 100% completed

on time 100% completed

on time

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 67**  U.S. NUCLEAR REGULATORY COMMISSION Percentage of Operating Fuel Facilities for Which the Core Inspection P rogram Was Completed as Planned

during the Mos t Recentl y Ended Inspection Cycle *

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in FY

2013 TBD 100%

Actual

*Replaces former output measures on core and reactive inspection modules and timeliness of safety and safeguards i nspection modules.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 68**  U.S. NUCLEAR REGULATORY COMMISSION 

### NUCLEAR MATERIALS USERS

Nuclear Materials Users by Product Line (Dollars in Millions)

FY 2012

Enacted FY 2014
Request Delta

FY 2014

– FY 2012

Product Line $M FTE $M FTE $M FTE

Licensing 13.4 67.1 13.0 67.7 (0.4) 0.6

Oversight 19.4 99.2 18.2 91.1 (1.2) (8.1)

Rulemaking 3.7 20.3 2.4 12.6 (1.4) (7.7)

International Activities 2.1 12.0 2.5 13.6 0.3 1.7

Research 1.0 4.1 1.4 3.8 0.4 (0.3)

Generic HLS 15.5 33.8 12.6 25.6 (2.8) (8.2)

Event Response 0.9 5.1 0.9 5.1 0.0 (0.0)

State, Tribal, and Federal Programs 7.2 37.3 7.3 37.7 0.1 0.4

Subtotal $63. 2 278.9 $58.1 257.1 ($5.0) (21.8)

Corporate Support 29.8 65.7 28.8 61.6 (1.1) (4.1)

Total $93.0 344.7 $86.9 318.7 ($6.1) (25.9)

Numbers may not add due to rounding.

Nuclear materials have many industrial, medical, and academic uses. The U.S. Nuclear Regulatory

Commission (NRC) licenses, oversees, and regulates large and small users of nuclear materials, such as radiographers, hospitals, private physicians, nuclear gauge users, irradiators, and universities.

Nuclear Materials Users’ activities support the licensing, ins pection, event evaluation, research, incident response, allegation, enforcement, and rulemaking to maintain the regulatory safety and security infrastructure needed to process and handle nuclear materials. The agency’s safety activities include completion of approximately 2,300 materials licensing actions and 1,000 routine health and safety inspections. Work also will be conducted on approximately 4 to 6 active materials rulemakings.

The Agreement State program has been in existence since 1959 with the a doption of Section 274 of the Atomic Energy Act (AEA). At present, there are 37 Agreement States. Under Section 274 of the AEA, the NRC has programmatic oversight responsibility to periodically review the actions of the Agreement States to ensure complia nce with the requirements in the AEA to maintain adequate and compatible programs. The current review process under the Integrated Materials Performance Evaluation Program (IMPEP) is conducted with State staff participation.

Nuclear Materials Users’ act ivities include reviews and issuance of NRC import and export authorizations, materials

- related wrongdoing investigations, adjudicatory hearings for materials licensing and enforcement proceedings, technical training, and continuous improvements and

centra lized oversight of information technology (IT) and information management.

Nuclear Materials Users’ security activities include implementation and operation of a national registry to improve control of radioactive sources of concern and to prevent their malevolent use. The

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 69**  U.S. NUCLEAR REGULATORY COMMISSION Integrated Source Management Portfolio (ISMP) contract has integrated the three core systems that comprise the National Source Tracking System (NSTS), Web

- Based Licensing (WBL), and the License Verification System (LVS). Together the se systems will license and track sources and other radioactive materials under one management mechanism. Further, security activities include conducting inspections of security activities at materials facilities with radioactive materials in quantities o f concern and prelicensing inspections of new materials license applicants. All of these activities strengthen controls for the possession, handling, import, and export of nuclear materials. In addition, resources will be used to conduct the NRC’s Agreem ent State liaison activities on enhanced control and security actions for materials licensees and on cooperative efforts and liaison with all State and local Governments and Native American Tribal Governments in matters related to homeland security for

nuc lear waste and materials.

The NRC has organized Nuclear Materials Users’ activities into product lines that best support Safety and Security strategies and affect Strategic Outcomes as they relate to materials licensing, inspection, and Agreement State ac tivities. The resources requested support all direct aspects of Nuclear Materials Users within the following eight product lines: Licensing; Oversight; Rulemaking; Research; International Activities; Generic Homeland Security; Event Response; and State, Tribal, and Federal

programs. The efforts under Nuclear Materials Users are designed to ensure that nuclear materials are licensed and used in a manner that adequately protects the public health and safety, protects the environment, and promotes the commo n defense and security.

The outputs of the product lines under this business line contribute to the scoring of the NRC Safety and Security Performance Measures and their contribution to the achievement of its Strategic

Outcomes.

**C HANGES FROM**  **FY 2012**  **E NA**  **CTED B**  **UDGET**

Resources decreased in the Oversight, Rulemaking, and Generic Homeland Security Product Lines because of reductions in agency overhead, realignment of rulemaking resources, and reductions to IT and reclassification of generic homeland security resources within the budget structure.

**L ICENSING** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY LICENSING Safety

— develop, maintain, and implement licensing and regulatory programs for fuel facilities, materials,
spent fuel management, waste management, uranium recovery, and decommissioning activities.
Security

— support Federal response plans that use an approach to the security of nuclear facilities and
radioactive material that integrates the efforts of licensees, Federal, State, local, and Tribal authorities.

For fiscal year (FY) 2014, the NRC requests $13.0 million, including 67.7 FTE, for licensing

activities. This funding level represents a decrease of $0.4 million when compared with the FY 2012 enacted budget, which does not represent a significant chan ge in workload.

The Licensing Product Line supports completion of approximately 2,300 materials licensing actions (new applications, amendments, renewals, and terminations) in FY 2014. The NRC anticipates that materials licensing receipts will remain lev el and that the agency will be able to continue implementing the recommendations for enhanced security for licensing. Licensing confirms that requests to use nuclear materials or modify existing uses provide an adequate margin of safety and security consi stent

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 70**  U.S. NUCLEAR REGULATORY COMMISSION with the NRC’s rules and regulations to ensure the adequate protection of the public health and safety, to protect the environment, and to promote the common defense and security. Resources also are budgeted over the planning period for legal assist ance supporting materials licensing. In FY 2014, the agency supports adjudicatory hearing

- related activities and limited appearance sessions for materials licensing proceedings. Legal advice and counsel will support materials licensing and enforcement

ac tions based on new security requirements affecting materials licensees.

**O VERSIGHT** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY OVERSIGHT Safety

— oversee licensee safety performance through inspections, investigations, enforcement, and
performance assessment ac tivities.
Security

— enhance programs to control the security of radioactive sources and strategic special nuclear
materials commensurate with their risk, including enhancement required by the Energy Policy Act of 2005.

For FY 2014, the NRC requests $18.2 million, including 91.1 FTE, for oversight activities. This funding level represents a decrease of $1.2 million, including 8.1 FTE, when compared with the FY 2012 enacted budget. This decrease is because of an agencywide effort to reduce overhead resour ces through increased efficiency and effectiveness.

The Oversight Product Line activities ensure the continued safe and secure use of nuclear materials. These activities identify significant issues and ensure that licensees take appropriate actions to

m aintain acceptable levels of safety and security in their operating procedures, performance, and the

use of nuclear materials. Oversight includes resources for inspections, event evaluations, allegations, investigations, enforcement, and related activitie s associated with the management and oversight of

nuclear materials.

The workload includes completion of approximately 1,000 routine health and safety inspections in

FY 2014, reciprocity and reactive inspections, and a registration and followup inspectio n program for certain general licensees. Resources will support implementation of the recommendation from the materials working group and the external independent review working group to revise the licensing and inspection infrastructure. The agency will support investigations of wrongdoing, materials

- related enforcement actions, oversight of the Alternative Dispute Resolution (ADR) and allegation programs, and external safety culture program activities.

The resources support event and incident evaluati on activities, which include the protective measures team emergency response support function and the orphan source activity, and funding for the Nuclear

Materials Events Database.

Continued coordination with States on agreements, as authorized by Section 274i of the AEA, and homeland security are planned. These activities include development and distribution of advisories, development and implementation of additional security measures (e.g., development of implementing guidance), and assurance that other homeland security information is provided to authorized State and local Government officials. The agency will continue to develop, coordinate, and assist in the

maintenance of Section 274i agreements with States to conduct security inspections on behalf of the

NRC for NRC

- issued security orders.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 71**  U.S. NUCLEAR REGULATORY COMMISSION **R ULEMAKING** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY RULEMAKING Safety

— use sound science and state

- of

- the

- art methods to establish, where appropriate, risk

- informed and
performance

- based regulations.
Security

— use a risk

- informed approach to implement appropriate regulatory controls for the possession,
handling, import, export, and transshipment of radioactive materials.

For FY 2014, the NRC requests $2.4 million, including 12.6 FTE, for rulemaking activities. T his funding level represents a decrease of $1.4 million, including 7.7 FTE, when compared with the FY 2012 enacted budget. This decrease is because of a realignment of rulemaking resources to reflect more appropriately the business lines that these resour ces currently support.

The Rulemaking Product Line will support rulemaking activities, including legal support to maintain the regulatory infrastructure needed to process and handle nuclear materials. Rules, guidance, and regulations promote licensee co mpliance with underlying safety principles and requirements.

In FY 2014, the NRC will work on approximately 4

– 6 active materials waste safety rulemakings and on continued interactive liaison with industry and professional societies to develop new codes and consensus standards and to address petitions for rulemaking submitted to the agency. An example of rulemakings determined as high priority are the amendments under Title 10 of the Code of Federal Regulations (10 CFR) Part 35, “Medical Use of Byproduct Material.” Rulemaking resources systematically improve the NRC’s regulatory program to ensure the safe use and management of nuclear materials and resolve safety issues. They also improve the NRC’s regulations by adding needed requirements, eliminating unnecessary requirements, and minimizing jurisdictional overlaps. The NRC will continue to work on the highest priority rulemakings.

**I NTERNATIONAL**  **A CTIVITIES** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY INTERNATIONAL ACTIVITIES Safety

— use domestic and intern ational collaboration and cooperation to inform decisionmaking.
Security

— promote U.S. national security interests and nuclear proliferation policy objectives for NRC

- licensed
imports and exports of source and special nuclear materials and nuclear equipmen t.

For FY 2014, the NRC requests $2.5 million, including 13.6 FTE, for international activities. This funding level represents an increase of $0.3 million, including 1.7 FTE, when compared with the

FY 2012 enacted budget, which does not represent a sign ificant change in workload.

The International Activities Product Line increases slightly to support NRC reviews and decisions on import and export authorizations of nuclear components and radiological materials, Subsequent Arrangements and Proposed 810 Li censes, control and tracking of imports and exports of sources, and bilateral and multilateral activities initiated for the exchange of technical information for the safe handling, storage, transport, and disposal of nuclear waste. Resources also provide for assistance activities related to the safety and security of medical and industrial sources, support to IAEA missions for training and regulation of nuclear materials, and assistance to foreign regulatory bodies through the assignee program.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 72**  U.S. NUCLEAR REGULATORY COMMISSION The Inter national Activities Product Line provides the way to work with international counterparts to exchange information, expertise, operating experience, and ongoing research to recognize and respond to emerging technical issues and to promote best safety and se curity practices. The NRC also participates in the development of international standards to ensure that they are soundly based and to determine whether substantial safety and security improvements can be identified and incorporated domestically.

**R ESEARC**  **H**

STRATEGIC GOAL STRATEGIES SUPPORTED BY RESEARCH Safety

— improve the NRC’s regulatory programs and apply safety

- focused research to anticipate and resolve
safety issues.
Security

— use research to inform the security activities of the agency.

For FY 201 4, the NRC requests $1.4 million, including 3.8 FTE, for research activities. This funding level represents an increase of $0.4 million, including a decrease of 0.3 FTE, when compared with the FY 2012 enacted budget, which does not represent a significant change in workload.

The Research Product Line supports activities to identify, lead, or sponsor reviews that support the resolution of ongoing and future safety issues, including providing tools and expertise to support the NRC’s independent decisionmaki ng process.

The Research Product Line supports research on patient release experience to inform future policy actions. Research will continue on gemstone irradiation and consumer products. In addition, research

activities for the medical and industria l sectors will support development and alignment of radiation protection regulations and guidance with the 2007 International Commission on Radiological Protection

recommendations.

**G ENERIC**  **H OMELAND**  **S ECURITY** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY GENERIC H OMELAND SECURITY Safety

— use domestic and international collaboration and cooperation to inform decisionmaking.
Security

— promote U.S. national security interests and nuclear proliferation policy objectives for NRC

- licensed
imports and exports of source an d special nuclear materials and nuclear equipment.

For FY 2014, the NRC requests $12.6 million, including 25.6 FTE, for generic homeland security activities. This funding level represents a decrease of $2.8 million, including 8.2 FTE, when compared

with the FY 2012 enacted budget. The NRC reviewed the activities under the definitions for the Generic HLS product and shifted some resources to non

- Generic HLS products in order to more accurately align re sources to the planned workload

.

The Generic Homelan d Security Product Line supports security coordination and liaison; security rulemaking activities, including legal support for the homeland security regulatory improvements initiatives; control and tracking of imports and exports of sources; homeland secu rity travel funds; and the development and implementation of the ISMP.

The resources are for liaison activities related to security activities that support NRC policy interactions at IAEA and the Nuclear Energy Agency on security and safety issues, consul tations on security

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 73**  U.S. NUCLEAR REGULATORY COMMISSION standards, rulemakings, and intergovernmental coordination. Resources also support high

- priority security rulemakings. The resources are also budgeted for the ISMP development that will integrate the three systems (NSTS, WBL, and LVS) that license and track sources and radioactive materials under one management mechanism. This development effort is vital to forming a comprehensive national materials license repository.

The near

- term results in FY 2014 will be the first full year of operation of WBL and LVS, and the overall results will be enhanced control and accountability of radioactive materials.

**E VENT**  **R ESPONSE** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY EVENT RESPONSE Safety

— effectively respond to events at NRC

- licensed facilities and other events of national interest, including
maintaining and enhancing the NRC’s critical incident response and communication capabilities.
Security

— support Federal response plans that use an approach to the security of nuclear facilities and

radioac tive material that integrates the efforts of licensees and Federal, State, local, and Tribal authorities.

For FY 2014, the NRC requests $0.9 million, including 5.1 FTE, for event response activities. This funding level represents no change in resources o r workload when compared with the FY 2012 enacted budget.

The Event Response Product Line provides the means to respond effectively to events that involve nuclear materials, including maintaining and enhancing the NRC’s critical event response and

communi cation capabilities. In FY 2014, the budget for the Event Response Product Line remains essentially flat to support event response actions for materials licensees, including the maintenance of a 24/7 response capability for materials

- related incidents.

**S TATE** 
**, T**  **RIBAL**
**, AND**  **F EDERAL**  **P ROGRAMS** 

SUPPORTED STRATEGIC GOAL STRATEGIES FOR STATE, TRIBAL, AND FEDERAL PROGRAMS Safety

— continue to support Agreement States in developing, maintaining, and implementing licensing and
regulatory programs for materials users

. Security

— share security information with appropriate stakeholders and international partners.

For FY 2014, the NRC requests $7.3 million, including 37.7 FTE, for State, Tribal, and Federal

programs. This funding level represents an increase of $0.1 m illion, including 0.4 FTE, when compared

with the FY 2012 enacted budget, which does not represent a significant change in workload.

The State, Tribal, and Federal Programs Product Line conducts materials activities related to Agreement States, including oversight, technical assistance, cooperative efforts, and coordination and liaison with States and local Governments, Federal agencies, Native American Tribal Governments, and interstate organizations on policy and notifications of interest for nuclear was te and materials. Together, the NRC and Agreement States regulate more than 22,000 specific and 150,000 general

licenses.

Budgetary resources in FY 2014 will support continued implementation of the Agreement State

program. Resources provide for conducti ng materials activities related to Agreement States and liaison, including oversight, technical assistance, cooperative efforts, and enhanced control and security actions

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 74**  U.S. NUCLEAR REGULATORY COMMISSION for materials licensees. The resources provide support to conduct IMPEP reviews (10

– 12) to ensure they are adequate to protect public health and safety and are compatible with NRC programs; outreach to potential new Agreement States and process new agreements (1); process Agreement State incidents and events (50); participate in and coord inate State participation in regulatory development; coordinate and fund State participation in NRC training courses, including Agreement State training and travel funds; respond to State technical assistance requests; respond to and coordinate responses t o allegations about Agreement State licensees or regulatory programs; interact with the Conference of Radiation Control Program Directors, Inc., and the Organization of Agreement States, Inc.; and develop and maintain policies and procedures for the progra m. This activity includes the statutory requirement for the NRC to make a determination that all applicable standards and requirements have been met before an Agreement State terminates a uranium milling license, and that alternate 11e.(2) standards are a dequate before the Agreement State implements them (1 or 2 cases per year).

The NRC also coordinates with Agreement States on low

- level waste (LLW) and decommissioning since all currently operating LLW sites are located in Agreement States. These activ ities provide public confidence and assurance that the Agreement States are conducting adequate and compatible programs.

This product line provides for the Materials State, Federal, and Tribal Liaison Program that informs, notifies,

and coordinates with Governor

- appointed representatives, other Federal agencies, and Native American Tribal Governments on matters involving the NRC. This outreach enhances public confidence in the national program and collects input from NRC stakeholders. Consistent with E xecutive Order 13175, “Consultation and Coordination with Indian Tribal Governments, dated November 6, 2000,” the NRC has adopted agency practices that ensure consultation and cooperation with Tribal Governments. For example,

the NRC interacts with Native American Tribal Governments on nuclear

- related regulatory issues that include uranium recovery licensing and long

- term strategies for remediation, reactor licensing and inspection activities, reactor license renewal, and nuclear waste transportation and d isposal. The NRC is currently implementing an internal protocol for Government

- to

- Government interaction with Tribal Governments in response to Commission direction.

**S IGNIFICANT**  **A CCOMPLISHMENTS IN**  **FY 2012** 

The NRC completed 2,104 materials licensing ac tions and 1,010 routine health and safety inspections. The agency maintained its high standards with timely reviews of nuclear material license renewals and

sealed

- source and device designs. The agency completed 96 percent of new application and license

amendment reviews within 90 days of receipt and 97 percent of license renewal and sealed

- source and device design reviews within 180 days of receipt.

The NRC amended its regulations governing the licensing and distribution of byproduct materials to make the regulations clearer, more risk

- informed, and up to date. An agency working group continued development of a proposed rule on 10 CFR Part 35. The rule will address the following actions: modifying preceptor attestation requirements; extending grandfa thering to certified individuals named in 10 CFR Part

35 before October 25, 2005; naming associate or assistant radiation safety officers on an NRC medical

- use license; and likely changing the definition of a medical event, including revised reporting and notifications of medical events for permanent implant brachytherapy. The NRC expects to publish the proposed rule in

FY 2013 for public comment.

The NRC continued public outreach on possible changes to the radiation protection regulations in

10 CFR Part 20, “Standards for Protection A gainst Radiation,” which would increase alignment with international radiation protection recommendations. The staff provided the Commission with staff recommendations on the direction to pursue on a series of technical issu es. The staff recommended that

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 75**  U.S. NUCLEAR REGULATORY COMMISSION the Commission approve the staff continuing to expend resources to develop a detailed regulatory basis for proposed rulemaking.

The NRC issued final rules updating 10 CFR Part 110, “Export and Import of Nuclear Equipment and Material,” to reflect the nuclear nonproliferation policy of the Executive Branch on U.S. Government obligations to the IAEA and to remove Oman from the list of restricted destinations.

The NRC engaged domestically and internationally in efforts to enhance nuclear safety and security through the regulatory oversight of radioactive sources. The staff participated in numerous meetings of technical and legal experts on the IAEA’s Code of Conduct for the Safety and Security of Radioactive Sources, both to ensure that its implementing guidance is clear and accurate and to encourage Member States that have not yet made a political commitment to implement the Code to do so. The agency also worked with other

U.S. Government agencies, such as the U.S. Depart ment of State, U.S. Department of Energy,

U.S. Department of Commerce, the National Security Council staff, and IAEA to develop international security guidance documents for radioactive sources.

The NSTS, WBL, and the future LVS are key components of a co mprehensive program for the security and control of radioactive material (ISMP). The ISMP will provide a link to the Exhibit 300 and will include information on all U.S. licensees and more than 70,000 risk

- significant radioactive sources that approximatel y 1,400 licenses possess. The ISMP will provide licensees, regulators, and Federal agencies

with an additional round

- the

- clock way of determining the legitimacy of individuals possessing or seeking to

obtain radioactive material.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 76**  U.S. NUCLEAR REGULATORY COMMISSION **O UTPUT**  **M EASURES** 

L ICENSIN G

Timeliness of Licensing Actions

— Review of Application for New Materials Licenses and License Amendments

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 85% ≤ 90 days

100% ≤ 2 years (yr) 90% ≤ 90 days

100% ≤ 2 yr 90% ≤ 90 days

100% ≤ 2 yr 9 2%<90 days

100%<2 yr TBD 92% ≤ 90 days

100% ≤ 2 yr

Actual 97% ≤ 90 days

100% ≤ 2 yr 95% ≤ 90 days

100% ≤ 2 yr 97% ≤ 90 days

100% ≤ 2 yr 97% within 90
days; 100% within

2 yr

Timeliness of Licensing Actions

— Review of Applications for Materials License R enewals and Sealed Source and Device Designs

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 80% ≤ 180 days

100% ≤ 2 yr 90% ≤ 180 days
100% ≤ 2 yr 92% ≤ 180 days

100% ≤ 2 yr 92% ≤ 180 days

100% ≤ 2 yr TBD 92% ≤ 180 days

100% ≤ 2 yr

Actual 9 1% ≤ 180 days
100% ≤ 2 yr 95% ≤ 180 days
100% ≤ 2 yr 97% ≤ 180 days
100% ≤ 2 yr 98% within 180
days; 100% within

2 yr

O VERSIGHT

Timeliness of Safety Inspections of Materials Licensees

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Targ et > 98% completed

on time > 98% completed

on time > 98% completed

on time > 98% completed

on time TBD > 98% completed

on time

Actual 99% completed on

time 99% completed on

time 99% completed on

time 99% completed on

time

Timeliness in Completi ng Reviews For Technical Allegations

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 90% ≤ 150 days
95% ≤ 180 days
100% ≤ 360 days 90% ≤ 150 days
95% ≤ 180 days
100% ≤ 360 days 90% ≤ 150 days
95% ≤ 180 days
100% ≤ 360 days 90% ≤ 150 days
95% ≤ 180 days
100% ≤ 360 days TBD 90% ≤ 150 days
95% ≤ 180 days
100% ≤ 360 days

Actual 98% ≤ 150 days
100% ≤ 180 days
100% ≤ 360 days 94% ≤ 150 days
98% ≤ 180 days
100% ≤ 360 days 95% ≤ 150 days
100% ≤ 180 days
100% ≤ 360 days 93% ≤ 150 days

98% ≤ 180 days

100% ≤ 360 days

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 77**  U.S. NUCLEAR REGULATORY COMMISSION Timeliness in Completing Enforcement Actions

FY 2009 FY 2010 FY 201 1 FY 2012 FY 2013 FY 2014

Target Investigation

cases: 100%
completed within
360 days of OE

processing time

Noninvestigation

cases: 100%
completed within
180 days of OE

processing time Investigation

cases: 100%
completed within
360 days of OE

proces sing time

Noninvestigation

cases: 100%
completed within
180 days of OE

processing time Investigation

cases: 100%
completed within
360 days of OE

processing time

Noninvestigation

cases: 100%
completed within
180 days of OE

processing time Investigation

c ases: 100%
completed within
330 days of OE

processing time

Noninvestigation

cases: 100%
completed within
160 days of OE

processing time TBD Investigation

cases: 100%
completed within
330 days of OE

processing time

Noninvestigation

cases: 100%
completed within
160 days of OE

processing time

Actual Investigation:

None ≥ 360 days

Noninvestigation: None ≥ 180 days Investigation:

None ≥ 360 days

Noninvestigation: None ≥ 180 days Investigation:

None ≥ 360 days

Noninvestigation:

None ≥ 180 days Investigation: None ≥ 330days

Noninvestigation: None ≥ 180 days

Ti meliness in Completing Investigations

— Target 1

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 85% of
investigations that
developed

sufficient

information to

reach a conclusion
on wrongdoing will
be completed in 10

months or less. 85% of

in vestigations that
developed

sufficient

information to

reach a conclusion
on wrongdoing will
be completed in 9

months or less. 85% of
investigations that
developed

sufficient

information to

reach a conclusion
on wrongdoing will
be completed in 9

months or l ess. 85% of
investigations that
developed

sufficient

information to

reach a conclusion
on wrongdoing will
be completed in 9

months or less. TBD 85% of
investigations that
developed

sufficient

information to

reach a conclusion
on wrongdoing will
be complete d in 9

months or less.

Actual Completed 33

investigations; 100% (33) of those
that developed

sufficient

information to

reach a conclusion
on wrongdoing
were completed in

10 months or less. Completed 18

investigations; 100% (18) of those
that developed

su fficient

information to

reach a conclusion
on wrongdoing
were completed in

9 months or less. Completed 25

investigations; 88% (22) of those
that developed

sufficient

information to

reach a conclusion
on wrongdoing
were completed in

9 months or less. Comple ted 19
investigations; 89% (17) of those
that developed

sufficient

information to

reach a conclusion
on wrongdoing
were completed in

9 months or less.

Timeliness in Completing Investigations

— Target 2

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 20 14

Target Close 100% of OI

investigations in

time to initiate civil

or criminal

enforcement

action. Close 100% of OI

investigations in

time to initiate civil

or criminal

enforcement

action. Close 100% of OI

investigations in

time to initiate civil

or cri minal

enforcement

action. Close 100% of OI

investigations in

time to initiate civil

or criminal

enforcement

action. TBD Close 100% of OI

investigations in

time to initiate civil

or criminal

enforcement

action.

Actual 100% 100% 100% 100%

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 78**  U.S. NUCLEAR REGULATORY COMMISSION R ULEMAKING

Pe rcentage of Materials and Waste Rulemaking Activities Completed On Schedule

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 90% 90% 90% 90% TBD Discontinuing in

2014

Actual 100% 93% 80%* 100 %

*Four out of five rulemaking activities were completed on schedule in FY 2011. The single delayed rule was Requirements for Distribution of Byproduct
Material, Parts 30, 31, 32, 40, and 70. Cumulatively, there was not a significant number of rulemaking activities completed to recover from one late

submission. In FY 2012, the staff will continue to maintain focus on establishing early alignment among offices on schedule and content.

R ESEARCH

Acceptable Technical Quality of Agency Research Technical Products*

FY 2009 FY 2010 FY 2011 FY 201 2 FY 2013 FY 2014

Target Combined score

≥3.5 Combined score

≥3.5 Combined score

≥3.5 Combined score

≥3.5 TBD Combined score ≥

3.75

Actual 4 4.6 4.4 4.5

*The NRC has developed a process to measure the quality of research products using surveys of endusers to determine the usabi lity and value

- added of the
products. As appropriate, other mechanisms will be developed and added to this process to measure the quality of research pr oducts.

Timeliness of Completing Actions on Critical Research Programs*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 90% of major

milestones met on

or before their due

date. 90% of major

milestones met on

or before their due

date. 90% of major

milestones met on

or before their due

date. 90% of major

milestones met on

or before th eir

due date. TBD 90% of major

milestones met on

or before their due

date.

Actual 100% across

programs 100% across

programs 100% across

programs NA**

*Critical research programs typically respond to high

- priority needs from the Commission and NRC’s lic ensing organizations. Critical research programs on
the highest priority needs are identified at the beginning of the fiscal year.

**No critical milestones were associated with the research activities conducted in this business line in FY 2012; therefore, there is no performance data to

report.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 79**  U.S. NUCLEAR REGULATORY COMMISSION 

### SPENT FUEL STORAGE AND TRANSPORTATION

Spent Fuel Storage and Transportation by Product Line (Dollars in Millions)

FY 2012

Enacted FY 2014
Request Delta

FY 2014

– FY 2012

Product Line $M FTE $M FTE $M FTE

Lice nsing 12.5 59.1 11.5 54.5 (1.0) (4.6)

Oversight 4.2 25.7 3.7 21.9 (0.6) (3.8)

Rulemaking 3.9 12.6 8.4 31.4 4.5 18.8

International Activities 0.9 3.8 0.9 4.2 (0.0) 0.4

Research 4.5 20.7 4.5 12.1 (0.1) (8.7)

Generic HLS 0.2 1.0 0.3 1.9 0.1 0.9

Subtotal $26.2 122.9 $29.2 125.9 $3.0 3.0

Corporate Support 14.6 32.2 16.2 34.7 1.6 2.6

Total $40.8 155.1 $45.4 160.7 $4.6 5.6

Numbers may not add due to ro unding.

The Spent Fuel Storage and Transportation Business Line activities are conducted to ensure the safe and secure storage of spent fuel to support continued operations and the safe and secure transport of radioactive materials to support domestic a nd international commerce. Activities in this business line include Licensing, Oversight, Rulemaking, Research, International Activities, and Generic Homeland Security efforts associated with radioactive material transportation and the storage of spent nu clear fuel (SNF).

Resources in this business line support the following:

• Safety, security, and environmental reviews of SNF storage casks and transportation packages, including development and update of regulations and guidance.

• Safety inspections of t ransportation packages, storage cask vendors and fabricators, independent spent fuel storage installation (ISFSI) operations, and security inspections of SNF ISFSIs, and transportation and route surveys.

• Evaluation of storage and transport of high

- burnup fuels (> 45 gigawatt

- days/metric ton uranium (GWd/MTU)), computational fluid dynamic methods applied to storage and transport cask design, development of a technical basis to support the allowance of full (fission product and actinides) burnup credit for S NF transportation and storage casks, and benchmarking of structural computer codes using German and Japanese cask testing results.

• Assessment of the regulatory framework for extended storage and transportation (EST) through

continued research on technical issues associated with extended dry spent fuel storage and transportation to support a technical basis for decisions on regulatory revisions.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 80**  U.S. NUCLEAR REGULATORY COMMISSION • Security assessment scoping study to identify additional regulatory and technical needs for an EST security framework. Technical areas include concrete degradation; weld corrosion; impacts of high

- burnup and mixed

- oxide fuels; transportability of fuel after long

- term storage; and the need for an improved hazards assessment, including the potential effects of lo ng

- term storage on eventual disposal.

• Analysis, data collection, and modeling for future alternate strategies for disposal of SNF and high

- level waste to include laboratory studies and field investigations to understand key technical issues and risk insigh ts, technical inputs to resolution of regulatory gaps, exercise of performance assessment scoping tool for risk insights, and continued coordination of alternative disposal strategies with other aspects of the back end of the fuel cycle.

• Development of a p roposed security rulemaking supporting the regulatory guidance documents that will apply consistent security standards across a range of waste storage facilities.

• Monitor ing national

- level developments stemming from the January 2012 report of the Blue

Ribb on Commission on America’s Nuclear Future

.

• Development of an environmental impact statement (EIS) to support a revised Waste

Confidence decision. This EIS will address the Court decision to vacate the Waste Confidence

decision and rule.

• Assessment of t he regulatory framework for extended storage and transportation (EST) through continued research on technical issues associated with extended dry spent fuel storage and transportation to support a technical basis for decisions on regulatory revisions.

**C HANGES FROM**  **FY 2012**  **E NACTED**  **B UDGET** 

Resources increase within the business line to develop a Waste Confidence generic environmental impact statement and rule. Waste Confidence will address the environmental impacts of spent fuel storage after the operating period of a reactor and prior to ultimate disposal in a permanent repository. The EST work concerns identifying and addressing the technical issues associated with continued, extended storage to ensure that NRC has the regulatory framework to address those issues. The EST work will support the regulations, guidance, and inspection programs needed to ensure the safety and security of EST.

**L ICENSING** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY LICENSING Safety

— develop, maintain, and implement licensing and reg ulatory programs for fuel facilities, materials,
spent fuel management, waste management, uranium recovery, and decommissioning activities.
Security

— use a risk

- informed approach to implement appropriate regulatory controls for the possession,
handling, im port, export, and transshipment of radioactive materials.

For fiscal year (FY) 2014, the NRC requests $11.5 million, including 54.5 FTE, for licensing

activities. This funding request represents a decrease of $1.0 million, including 4.6 FTE, when

compar ed with the FY 2012 enacted budget. This decrease is because of fewer license applications and amendments anticipated and because of the transition of the Storage Transportation Information Management System (STIMS) from development to operations and main tenance. The Licensing Product Line supports safety, security, and environmental licensing activities to confirm licensee requests for radioactive material transportation and interim SNF storage that provides an adequate margin of safety and security cons istent with the NRC’s rules and regulations. The NRC conducts safety and security reviews of radioactive material transportation package designs; safety and security

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 81**  U.S. NUCLEAR REGULATORY COMMISSION reviews of SNF storage cask designs and ISFSIs; environmental reviews of ISFSIs; plant

- sp ecific security

- related licensing reviews; updates to Standard Review Plans; and regulatory infrastructure to ensure that licensed activities are conducted in a manner that adequately protects the public health and safety, protects the environment, and pro motes the common defense and security.

Licensing resources provide for the following:

• The review of approximately 72 radioactive material transportation package design applications and approximately 18 SNF storage applications to ensure the safe and sec ure storage of SNF.

• Technical /regulatory advice regarding proposed changes in the national strategy for the ultimate disposal of SNF.

• The renewal of the Prairie Island ISFSI license and related environmental assessment support and legal advice and repres entation on SNF and radioactive material transportation matters.

• Transportation certification security reviews, security reviews for onsite storage (licensees under

Title 10 of the Code of Federal Regulations (10 CFR) Part 70, “Domestic Licensing of Speci al Nuclear Material”), issuance of ISFSI security orders, and ISFSI security licensing reviews.

• Information technology management and continued maintenance of STIMS and maintenance for the Transportation and Storage Computational Analysis Platform System.

**O VERSIGHT** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY OVERSIGHT Safety

— oversee licensee safety performance through inspections, investigations, enforcement, and
performance assessment activities.
Security

— use a risk

- informed approach to implement appropria te regulatory controls for the possession,
handling, import, export, and transshipment of radioactive materials.

For FY 2014, the NRC requests $3.7 million, including 21.9 FTE, for oversight activities. This funding level represents a decrease of $0.6 m illion, including 3.8 FTE, when compared with the FY 2012 enacted budget. The decrease is due to completion of the inspection improvement initiative and reduced workload projections.

The Oversight Product Line supports NRC activities to continually overs ee the safe and secure licensee use of radioactive material transportation packages, SNF storage casks, and ISFSIs; identify significant performance issues; develop generic communications; and ensure that licensees take appropriate

actions to maintain acce ptable operating performance to ensure the adequate protection of the public health and safety and the environment.

Oversight resources provide for completion of 16 regional and headquarters safety inspections of storage and transportation cask vendors, f abricators, and designers; and ISFSI pad construction, dry

- run operations, initial loading operations, and routine operations. Resources provide for the identification and implementation of near

- term improvements to the storage and transportation inspecti on and enforcement programs. Resources also provide for regional security inspection oversight of SNF and wet and dry ISFSI operations. In addition, resources provide for SNF inspection program development, maintenance, update, and route surveys.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 82**  U.S. NUCLEAR REGULATORY COMMISSION **R ULE**  **MAKING**

STRATEGIC GOAL STRATEGIES SUPPORTED BY RULEMAKING Safety

— use sound science and state

- of

- the

- art methods to establish, where appropriate, risk

- informed and
performance

- based regulations.
Security

— use a risk

- informed approach to implement appropria te regulatory controls for the possession,
handling, import, export, and transshipment of radioactive materials.

For FY 2014, the NRC requests $8.4 million, including 31.4 FTE, for Rulemaking activities. This funding level represents an increase of $4.5 million, including an increase of 18.8 FTE, when compared

with the FY 2012 enacted budget. This increase reflects the shift of resources from the Research Product Line to support the Waste Confidence Rule. In addition, resources t he NRC reviewed the

act ivities under the definitions for the Generic HLS product and shifted some resources to non

- Generic HLS products in order to more accurately align resources to the planned workload

.

The Rulemaking Product Line supports the development and update of rules and regulatory guidance that promote licensee compliance with underlying safety and security principles and requirements. This regulatory framework guides the safety and security activities of the agency and its licensees. Resources provide for the deve lopment of an EIS to support a revised Waste Confidence

decision. This EIS will address the Court decision to vacate the Waste Confidence decision and rule.

Resources provide for identification and implementation of near

- term improvements to the storag e and transportation licensing program, including a comprehensive review of licensing guidance and regulations; an evaluation and integration of dual

- purpose cask reviews; an improvement to cask certification rulemaking processes; and the implementation of enhancements to the rules for storage and transportation under 10 CFR Part 71, “Packaging and Transportation of Radioactive Material,” and

10 CFR Part 72, “ Licensing Requirements for the Independent Storage of Spent Nuclear Fuel, High

Level Radioactive Wa ste, and Reactor

- Related Greater Than Class C Waste.”

Resources also support high

- priority rulemakings (five certificate of compliance rulemakings and ISFSI security requirements for radiological sabotage).

Further, resources support the proposed securi ty rulemaking and development of supporting regulatory guidance documents. In addition, resources would be used to assess the need for digital and security systems to defend against a cyber attack at standalone ISFSIs and to make necessary changes to the existing regulations through rulemaking or orders.

**I NTERNATIONAL**  **A CTIVITIES** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY INTERNATIONAL ACTIVITIES Safety

— use domestic and international collaboration and cooperation to inform decisionmaking.
Security

— use a r isk

- informed approach to implement appropriate regulatory controls for the possession,
handling, import, export, and transshipment of radioactive materials.

For FY 2014, the NRC requests $0.9 million, including 4.2 FTE, for international activities. Thi s request represents an increase of 0.4 FTE when compared with the FY 2012 enacted budget, which does not represent a significant change in workload.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 83**  U.S. NUCLEAR REGULATORY COMMISSION The International Activities Product Line supports the NRC’s international work, which assists

decisionma king; awareness of, and responses to, emerging technical issues; and promotion of best practices in realizing the Safety and Security goals and related strategic measures and outcomes. Additionally, the NRC participates in the development and evaluation o f international standards to ensure that they are soundly based and to determine whether they should be implemented domestically.

Resources provide for international coordination with the International Atomic Energy Agency to compare regulatory framewor ks, share research on storage and transport matters, and harmonize the certification of SNF transport packages and the licensing of storage cask designs with international standards. Resources are also provided for investigation and participation in selec t international activities, experiments, and collaboration in dealing with regulatory, technical, and legal aspects of waste disposal.

**R ESEARCH** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY RESEARCH Safety

— improve the NRC’s regulatory programs and apply safet y

-

focused research to anticipate and resolve
safety issues.
Security

— use research to inform the security activities of the agency.

For FY 2014, the NRC requests $4.5 million, including 12.2 FTE, for research activities. This funding level represents a funding decrease of $0.1 million, including 8.7 FTE, when compared with the

FY 2012 enacted budget. This decrease is the result of the completion of research related to high

- burnup fuel cladding integrity performance. This was offset by new work in secur ity assessments. Further, resources decrease to reflect the shift of resources to the Rulemaking Product Line to support the Waste Confidence Rule while maintaining the technical basis for EST.

The Research Product Line supports the NRC’s regulatory mi ssion by providing technical advice, tools, and information to identify and resolve safety issues and to make regulatory decisions. This includes the conduct of confirmatory experiments and analyses and preparation of the agency for the future through eva luation of the safety aspects of new technologies and designs for radioactive material transportation packages and spent fuel storage casks and ISFSIs ; research on technical issues associated with extended and long

- term storage; and analysis and modeling f or future waste management strategies.

Further, resources provide for participation in a U.S. cask demonstration and monitoring program of extended dry cask storage with high

- burnup fuel and performance of a security assessment scoping study to identify additional regulatory and technical needs for a EST security framework. Technical areas include concrete degradation; weld and canister corrosion; impacts of high

- burnup and

mixed

- oxide fuels; transportability of fuel after long

- term storage; and the nee d for an improved hazards assessment, including the potential impacts of long

- term storage on eventual disposal.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 84**  U.S. NUCLEAR REGULATORY COMMISSION **G ENERIC**  **H OMELAND**  **S ECURITY** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY GENERIC HOMELAND SECURITY Safety

— conduct NRC safety, security, and emerge ncy preparedness programs in an integrated manner.
Security

— support Federal response plans that use an approach to the security of nuclear facilities and
radioactive material that integrates the efforts of licensees and Federal, State, local, and Tribal a uthorities.

For FY 2014, the NRC requests $0.3 million, including 1.9 FTE, for generic homeland security activities. This funding level represents an increase of $0.1 million, including 0.9 FTE, when compared with the FY 2012 enacted budget. The NRC re viewed the activities under the definitions for the Generic HLS product and shifted some resources to non

- Generic HLS products in order to more accurately align resources to the planned workload

.

The Generic Homeland Security (HLS) Product Line supports s ecurity activities related to intergovernmental coordination and communication. It also supports security activities that are not plant

- specific, or associated with a class of licensees, which contribute to the common defense and security of the Nation’s critical infrastructure.

Resources provide for ongoing security activities in response to the events of September 11, 2001. This encompasses Generic HLS improvements to address new threats and also includes developing interagency agreements and working arrangements with other Federal agencies on issues related to safety, security, and emergency response.

**S IGNIFICANT**  **A CCOMPLISHMENTS IN**  **FY 2012** 

The NRC completed 52 transport package designs and 17 storage cask and facility license reviews.

The review o f transportation and interim storage licensing requests ensures that shipments are made in

NRC

- approved packages that meet rigorous performance requirements and verifies that spent fuel is safely stored, thereby enabling continued reactor and decommissioni ng operations. The agency also conducted 19 inspections of activities related to radioactive material package certificate holders, spent fuel storage cask certificate holders, and inspections at ISFSI to ensure that casks are being designed, fabricated, a nd used according to approved safety requirements.

The agency developed a plan for integrating SNF regulatory activities to address more effectively the regulatory and licensing aspects of extended storage and transportation (i.e., greater than 120 years ), reprocessing, and disposal of SNF and high

- level waste. The purpose of the plan is to ensure that the regulation of the back end of the fuel cycle accomplishes safety, security, and environmental protection

in an efficient and effective manner and that decisions made about one component or area of this system adequately consider other components or areas (i.e., treating spent fuel and high

- level waste regulation as a system of interrelated activities). By coordinating the approach for regulation of SNF or high

- level waste storage, potential reprocessing, transportation, and disposal, the agency can improve the efficiency and effectiveness of NRC regulatory processes and provide stability and predictability to stakeholders in a dynamic environment.

T he Commission approved a final rule amending the security requirements for irradiated fuel in transit in

10 CFR Part 73, “Physical Protection of Plants and Materials.” This rule establishes generically applicable security requirements similar to the requi rements that NRC Order EA

- 02

- 109, “Issuance of Order for Interim Safeguards and Security Compensatory Measures for the Transportation of Spent

Nuclear Fuel Greater than 100 Grams,” currently imposes. This rule also establishes acceptable

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 85**  U.S. NUCLEAR REGULATORY COMMISSION performance stand ards and objectives for the protection of SNF shipments from theft, diversion, or radiological sabotage. Additionally, this rule addresses, in part, a 1999 petition for rulemaking from the State of Nevada (PRM

- 73

- 10) that asked the NRC to strengthen its r egulations governing the security of SNF shipments against malevolent acts.

The NRC also began a comprehensive review of the spent fuel storage and transportation regulatory programs to evaluate their adequacy for ensuring safe and secure storage of spen t fuel for extended periods beyond 120 years, including research to enhance the regulatory framework in support of extended periods.

The NRC provided resources to continue research on technical issues associated with very long

- term dry spent fuel storage , such as concrete degradation, weld corrosion; impacts of high

- burnup and

mixed

- oxide fuels; climate change effects on cask performance; transportability of fuel after long

- term storage; and the need for an improved hazards assessment, including the poten tial impact of long

- term storage on eventual disposal.

The NRC staff continued research efforts to address the safe long

- term storage of SNF. The technical bases for extended storage and transportation are being strengthened to ensure that environmental effects and material property changes do not affect the safety of licensed dry cask storage systems. In May 2012, the NRC was on the U.S. Government delegation to the Review Meeting of Contracting Parties to the Joint Convention on the Safety of Spent F uel Management and the Safety of Radioactive Waste Management. In May 2012, the NRC also supported the U.S. Government delegation to the Preparatory Committee for the Nuclear Non

- Proliferation Treaty.

In September 2012, in response to a court decision vacating the NRC’s 2010 Waste Confidence Decision, the Commission directed the staff to proceed with the development of a generic EIS to support an updated Waste Confidence Decision and temporary storage rule. Because of the high priority of the issue, the Commission directed the staff to publish a final rule and EIS within 24 months.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 86**  U.S. NUCLEAR REGULATORY COMMISSION **O UTPUT**  **M EASURES** 

L ICENSING

Complete Storage Container and Installation Design Reviews within Timeliness Goals

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 8 0% ≤ 12.6 months (mo) 100% ≤ 2 years (yr)* 80% ≤ 12.6 mo 100% ≤ 2 yr 80% ≤ 12.6 mo 100% ≤ 2 yr 80% < 12.6 mo
100% < 2 yr TBD 80% < 12.6 mo
100% < 2 yr

Actual 82% ≤ 12.6 mo 100% ≤ 2 yr 92% ≤ 12.6 mo 100% ≤ 2 yr 100% ≤ 12.6 mo 100% ≤ 2 yr 71% ≤ 12.6 mo

100% ≤ 2 yr**

*Output targets for FY 2009 and beyond are being held at the FY 2007 metric to reflect the changing profile of the casework, based on the increased
technical complexity and applicants “bundling” of multiple requests in a single application, an d updated labor rates for the current mix of casework.

**There were four requests for security exemptions at decommissioned ISFSI sites to address security requirements meant for o perating reactors under

10 CFR 73.55, “ Requirements for Physical Protection of Licensed Activities in Nuclear Power Reactors against Radiological Sabotage .” The multipart
exemption requests were large and very complex, requiring consensus among multiple offices. The final two were completed in the fourth quarter with

timeliness at approximately 20 months.

Complete Transportation Container Design Reviews within Timeliness Goals

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 80% ≤ 7.4 mo 100% ≤ 2 yr* 80% ≤ 7.4 mo 100%
≤ 2 yr 80% ≤ 7.4 mo 100%
≤ 2 yr 80% < 7.4 mo
100% < 2 yr TBD 80% <7.4 mo 100%
< 2 yr

Actual 86% ≤ 7.4 mo 100%
≤ 2 yr 87% ≤ 7.4 mo

100% ≤ 2 yr 100% ≤ 7.4 mo
100% ≤ 2 yr 96% ≤ 7.4 mo
100% ≤ 2yr

*Output targets for FY 2009 and beyond are being held at the FY 2007 metric to reflect the changin g profile of the casework, based on the increased
technical complexity and applicants “bundling” of multiple requests in a single application, and updated labor rates for the current mix of casework. The
labor rates were updated based on historical expend itures during FY 2006 and FY 2007.

Using Intraagency Contracting

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in FY

2013 TBD Projected savings of $40,000 (50%
savings)

Actual

Waste Confidence and Extended Long

- Term Storage Activities

— Percent of Planned Products Completed within a Fiscal Year

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in FY

2013 TBD Discontinued in FY

2014

Actual

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 87**  U.S. NUCLEAR REGULATORY COMMISSION O VERSIGHT

Number of Spent Fuel St orage and Transportation Inspections Completed

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 16 inspections 16 inspections 16 inspections 16 inspections TBD 16 inspections

Actual 17 inspections 20 inspections 19 inspections 19 Inspections

R ESEARCH

Timeliness of Completing Actions on Critical Research Programs*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 90% of major

milestones met on

or before their due

date. 90% of major

milestones met on

or before their due

date. 90% of major

milestones met on

or before their due

date. 90% of major

milestones met on

or before their

due date. TBD 90% of major

milestones met on

or before their due

date.

Actual 100% across

programs 100% across

programs 100% across

programs NA**

* Critical research programs typically respond to high

- priority needs from the Commission and the NRC’s licensing organizations. Critical research programs
on the highest priority needs are identified at the beginning of the fiscal year.

**No critical miles tones were associated with the research activities conducted in this busin ess line in FY 2012; therefore, there are no performance data to

report.

Acceptable Technical Quality of Agency Research Technical Products*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Combined score

≥ 3.5 Combined score ≥

3.5 Combined score

≥ 3.5 Combined score ≥

3.5 TBD Combined score ≥

3.75

Actual 4 4.6 4.75 4.5

*The NRC has developed a process to measure the quality of research products using s urveys of endusers to determine the usability and value

- added of the
products. As appropriate, other mechanisms will be developed and added to this process to measure the quality of research pr oducts.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 88**  U.S. NUCLEAR REGULATORY COMMISSION 

### DECOMMISSIONING AND LOW

**- LEVEL WASTE** 

Decommissioni ng and Low

- Level Waste by Product Line (Dollars in Millions)

FY 2012

Enacted FY 2014
Request Delta

FY 2014

– FY 2012

Product Line $M FTE $M FTE $M FTE

Licensing 16.4 72.3 17.0 72.0 0.6 (0.3)

Oversight 4.6 26.3 5.2 26.8 0.6 0.5

Rulemaking 1.2 4.0 1.4 5.8 0.2 1.9

International Activities 1.0 5.1 0.9 5.0 (0.0) (0.2)

Research 0.8 5.2 0.4 2.5 (0.4) (2.7)

Subtotal $24.0 112.9 $25.0 112.1 $1.0 (0.8)

Corporate Support 13.3 29.3 14.0 30.0 0.7 0.8

Total $37.3 142.1 $39.0 142.1 $1.8 (0.0)

Numbers may not add due to rounding.

Decommissioning and Low

- Level Waste (LLW) activities include licensing and oversight of licensed and unlicensed facilities undergoing decommissioning, licensing and oversight of new and operating uranium recovery facilities, oversight of the national LLW management program, and consultation and monitoring related to the U.S. Department of Energy (DOE) waste management activities at the

Savannah River and Idaho Waste Incidental to Reprocessing (WIR) facilities consistent with the

U.S. Nuclear Regulatory Commission’s (NRC’s) responsibilities in the Ronald W. Reagan National

Defense Authorization Act for Fiscal Year 2005. This Act requires DOE to consult with the NRC on its WIR determinations for facilities in South Carolina and Idaho. It also requires the NRC to monitor those sites after DOE has completed waste determinations. Activities include interfacing with licensees, applicants, Federal and State agencies, the p ublic, other stakeholders, and Native

American Tribal Governments.

Decommissioning is the safe removal of a nuclear facility from service and the reduction of residual radioactivity to a level that permits release of the property and termination of the N RC license. NRC rules for decommissioning establish site

- release criteria and unrestricted and

— under certain

conditions

— restricted release of a site. The NRC regulates the decommissioning of complex materials and fuel cycle facilities, power and early te st reactors, research and test reactors (RTRs), and uranium recovery facilities, with the ultimate goal of license termination.

The NRC performs project management, financial, policy, technical, safety, security, and

environmental reviews for decommissio ning power and early demonstration reactors, RTRs, complex materials facilities, and uranium recovery facilities and reviews for licensing new and operational uranium recovery facilities. In addition, the NRC develops guidance and import and export review s of nuclear waste and performs research activities that include the development and improvement of data, models, and other analytical tools for assessing the environmental effects of

releases from NRC

- licensed facilities.

The NRC has organized Decommis sioning and LLW activities into product lines that best support Safety and Security strategies and that affect strategic outcomes as they relate to decommissioning

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 89**  U.S. NUCLEAR REGULATORY COMMISSION and LLW activities, uranium recovery licensing, inspection, and related environmental activi ties. The resources requested support the following five product lines: Licensing, Oversight, Rulemaking, Research, and International Activities.

The outputs of the product lines under this business line contribute to the scoring of the NRC Safety

and Security Performance Measures and their contribution to the achievement of its Strategic

Outcomes.

**C HANGES FROM**  **FY 2012**  **E NACTED**  **B UDGET** 

Resources increase slightly to support licensing casework related to decommissioning activities and to

address environ mental reviews, as well as the associated legal advice and representation and Atomic Safety and Licensing Board activities.

**LICENSING**

STRATEGIC GOAL STRATEGIES SUPPORTED BY LICENSING Safety

— oversee the decontamination and decommissioning of nuclear facil ities in license termination and
license new facilities as applications are submitted.
Security

— review security plans for decommissioning for consistency with security requirements.

For fiscal year (FY) 2014, the NRC requests $17.0 million, including 72. 0 FTE, to support licensing

activities. This funding level represents an increase of $0.6 million, including a decrease 0.3 FTE, when compared with the FY 2012 enacted budget

, which does not represent a significant change in workload.

The Licensing Produ ct Line supports reviews of requests to terminate a license through a decommissioning process, licensing of operational and new uranium recovery and LLW disposal sites, and supporting Agreement State licensing. Licensing supports project management, finan cial, policy, technical, safety, security, environmental reviews, and other licensing activities that support operational uranium recovery facilities. It also supports the decommissioning power and early demonstration reactors, RTRs, complex materials sit es, and inactive uranium recovery facilities. Resources support interfaces with NRC licensees, applicants, Federal and State agencies, the public, other stakeholders, and Tribal Governments, in addition to legal advice and representation and Licensing Boa rd activities.

The resources for decommissioning support reviews for 14 power and early demonstration reactors, 7 research and test reactors, 23 decommissioning complex materials facilities, 38 decommissioning uranium recovery facilities, and military sit es with possession

- only licenses. These activities include reviews of license applications and termination plans, decommissioning plans, reclamation plans, long

- term surveillance plans, and license amendments. Complex environmental reviews for

decommissi oning cases and for licensing actions also will be performed.

The agency will perform safety reviews, environmental reviews, and project management for uranium recovery licensing. FY 2014 resources will support eight environmental and eight safety revi ews (hearings included) of applications and licensing activities associated with 11 operating uranium recovery facilities. The resources also support legal advice and representation and Licensing Board activities for activities related to decommissioning power reactors and complex materials sites, uranium recovery licensing, adjudications, LLW, and WIR activities.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 90**  U.S. NUCLEAR REGULATORY COMMISSION **O VERSIGHT** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY OVERSIGHT Safety

— develop, maintain, and implement licensing and regulatory programs for fuel facilities material, spent
fuel management, waste management, uranium recovery, and decommissioning.
Security

— review security plans and changes for consistency with security requirements

**.**

For FY 2014, the NRC requests $5.2 million, including 26.8 FTE, for oversight activities. This funding level represents an increase of $0.6 million, including 0.5 FTE, when compared with the FY 2012 enacted budget, which does not represent a significant change in workload.

The Oversight Product Line supports the NRC in continuously overseeing decommissioning and LLW activities to ensure that licensees continue to maintain acceptable safe and secure practices. In

FY 2014, resources provide for decommissioning and uranium recovery inspections, LLW program activities, a nd WIR activities at two DOE sites.

Budgetary resources remain level to perform decommissioning and uranium recovery inspections to ensure that these operations are conducted safely and in accordance with NRC regulations; and to oversee LLW program activi ties, which include updating storage inspection procedures, support of Greater than Class C activities, and support to Agreement States.

**R ULEMAKING** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY RULEMAKING Safety

— use sound science and state

- of

- the

- art methods to establish, where appropriate, risk

- informed and
performance

- based regulations.
Security

— use a risk

- informed approach to implement appropriate regulatory controls.

For FY 2014, the NRC requests $1.4 million, including 5.8 FTE, for rulemaking activitie s. This funding level represents an increase of $0.2 million, including 1.9 FTE, when compared with the FY 2012 enacted budget, which does not represent a significant change in workload.

The Rulemaking Product Line supports the NRC goal of maintaining a safety and security framework of rules, regulatory guidance, and Standard Review Plans that promote licensee compliance with underlying safety principles and security requirements.

**I NTERNATIONAL**  **A CTIVITIES** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY INTERNA TIONAL ACTIVITIES Safety

— use domestic and international operating experience to inform decisionmaking.
Security

— use a risk

- informed approach to implement appropriate regulatory controls for the possession,
handling, import, export, and transshipment of r adioactive materials.

For FY 2014, the NRC requests $0.9 million, including 5.0 FTE, for international activities. This funding level represents a decrease of 0.2 FTE, when compared with the FY 2012 enacted budget, which does not represent a significan t change in workload.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 91**  U.S. NUCLEAR REGULATORY COMMISSION The International Activities Product Line supports activities with international counterparts to exchange information, expertise, operating experiences, and ongoing research to recognize and respond to emerging technical issues and to promote best safety and security practices. The NRC also participates in developing international standards to ensure that they are soundly based and to determine whether substantial safety improvements can be identified and incorporated domestically. Resources provide support for international activities and bilateral assistance to foreign counterparts on decommissioning issues, licensing of uranium recovery facilities, and development of regulations for the handling and disposal of LLW and decommissi oning of power reactors and other

nuclear facilities.

Resources provide assistance to the International Atomic Energy Agency (IAEA), the Nuclear Energy Agency, IAEA’s Waste Safety Standards Committee, the Joint Convention on the Safety of Spent Fuel

Mana gement and on the Safety of Radioactive Waste Management, and many other working groups and committees for preparing and updating of safety guides and standards. In addition, resources provide for staff assistance to the foreign assignee program and for b ilateral and multilateral exchanges

of technical information.

**R ESEARCH** 

STRATEGIC GOAL STRATEGIES SUPPORTED BY RESEARCH Safety

— improve the NRC’s regulatory programs and apply safety

- focused research to anticipate and resolve
safety issues.
Security

— use research to inform the security activities of the agency.

For FY 2014, the NRC requests $0.4 million, including 2.5 FTE, for research activities. This funding level represents a decrease of $0.4 million, including 2.7 FTE, when compared with the FY 201 2 enacted budget, which does not represent a significant change in workload.

The Research Product Line supports activities to identify, lead, and sponsor reviews that support the resolution of ongoing and future safety issues, including providing tools and expertise needed to support the NRC’s independent decision

- making process. The FY 2014 budget allocates resources to provide analytical assistance on complex licensing cases, such as application of codes for decommissioning reviews and site cleanup at sites with uranium contamination and in situ uranium recovery facilities.

**S IGNIFICANT**  **A CCOMPLISHMENTS IN**  **FY 2012** 

The NRC has completed decommissioning at 21 materials sites and 9 power or research reactors for a total of 30 sites since 2006. The agenc y oversaw decommissioning activities at approximately 85 power and early demonstration reactors, RTRs, uranium recovery sites, complex materials sites, and fuel cycle facilities. Additionally, the NRC published a final rule amending its regulations to imp rove decommissioning planning, thereby reducing the likelihood that a current operating facility will become a legacy site. The agency continued its activities at military sites with radium

- 226 and Army sites with depleted uranium contamination from milit ary munitions. The agency continued its emphasis on the oversight decommissioning of legacy uranium recovery sites and began several initiatives to improve the program, including updating guidance and enhancing communication with DOE, States, Native

Ameri can Tribes, and stakeholders.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 92**  U.S. NUCLEAR REGULATORY COMMISSION The NRC conducted regulatory oversight at eight operational uranium recovery sites and reviewed and approved, if regulations were met, the applications for new, restarting, or expanding uranium recovery facilities. The agen cy had seven applications for new, restarting, or expanding uranium recovery facilities and had two license renewal applications in

- house. The agency worked on seven of those applications because two of the applications were withdrawn. These reviews incl uded both safety and

environmental reviews.

The NRC conducted regulatory activities to help ensure the safe management and disposal of low

- level radioactive waste generated by radioactive material users, nuclear power plants, and other NRC

licensees. T he agency performed monitoring visits and issued reports for the DOE’s Savannah River Site (SRS) Saltstone facility and the Idaho National Laboratory. The agency completed consultation on

the waste determination for the F Tank Farm at the SRS. In additio n, the agency also conducted outreach with stakeholders and licensees on issues related to issuing guidance on how to classify waste for disposal and potential draft rule language for a proposed change to Title 10 of the Code of Federal Regulations (10 CFR ) Part 61, “Licensing Requirements for Land Disposal of Radioactive Waste,” for site evaluation before receiving long

- lived or blended wastes.

The NRC held the third in a series of uranium recovery workshops for international counterparts through its int ernational assistance program activities in Tanzania. Regulatory bodies from 16 African countries were represented. The focus of the workshop was to assist countries that are initiating or restarting uranium recovery regulatory programs. The overall goa l of the workshop was to provide information on regulatory development, licensing, regulatory oversight, and prevention of legacy sites when uranium production ceases.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 93**  U.S. NUCLEAR REGULATORY COMMISSION **O UTPUT**  **M EASURES** 

LICENSING

Support Program Licensing Activities by Reviewing Environmen tal Reports and Preparing Environmental Review Documents

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Complete 1 final EIS

or draft

EIS.* Complete 3
complex EAs. Complete 2 draft

EIS.*

Complete 2 complex

EAs. Complete

environmental revi ews
consistent with the

Environmental

Protection and

Performance

Assessment Operating

Plan. Complete

environmental

reviews consistent

with the

Environmental

Protection and

Performance

Assessment Operating

Plan. TBD Complete

environmental

reviews

consi stent with

the

Environmental

Protection and

Performance

Assessment Operating Plan.

Actual Completed GEIS for

uranium

recovery. Three
complex EAs were
completed for Areva,

Global Nuclear Fuel

Americas, and

Oconee. Completed draft EISs
for AREVA, Eagle

Roc k, and GE

- Silex
license applications.
Completed the final
supplemental EIS for

the Moore Ranch ISR
license application.
Completed one
complex EA for the

Prairie Island ISFSI

license amendment. Completed final
supplemental EISs for

the Nichols Ranch and

L ost Creek ISR license
applications. Completed
final EIS for AREVA,
Eagle Rock Enrichment
Facility license
application. Issued draft
complex EA for Nuclear

Fuel Service license
renewal application for
public review and

comment. Completed
complex EA suppl ement for the Pa'ina Hawaii,
LLC, Underwater

irradiator license
application. Issued final EIS for
proposed GE

- Hitachi

Global Laser
Enrichment, LLC,
Facility. Issued both

draft and final EIS for
proposed
International Isotopes
deconversion facility.

Issue d final complex
EA for proposed

Nuclear Fuel Service

License Renewal and

issued final EA for
proposed Calvert Cliffs

ISFSI license renewal.

*Within 45 days of acceptance of application and environmental report, publish notice of intent to prepare the en vironmental impact statement (EIS) and
proposed schedule in the Federal Register.

Eliminate the Need for Some Site

- Specific Environmental Impact Statements (i.e., by Reducing Resource Needs) by Developing a Generic Environmental
Impact Statement (GEIS) f or Uranium Recovery Environmental Reviews*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Projected savings of $1,040 K and 1 FTE Projected Savings

of $1,100 K and

4 FTE Projected savings of $450 K and 0.7 FTE Projected savings of $450 K and 0.7 FTE TBD Being replaced by
new efficiency

measure.

Actual $2.2 million and

0.6 FTE $1.2 million and

0 FTE** $773 K and 0 FTE** $773 K and 0.7 FTE

*Between FY 2008 and FY 2013, the staff expects to receive 18 in situ recovery (ISR) uranium reco very license applications. The development of a GEIS is
expected to eliminate the need to develop site

- specific EISs for some of these applications. Instead of developing a site

- specific EIS for each site, the staff
will be able to "tier off" the GEIS an d rely on a less resource

- intensive supplemental EIS or a site

- specific supplemental EIS to evaluate the environmental
impacts of the site

- specific ISR license request (total savings of at least $2.0 million and 7.0 FTE in FY 2008

– FY 2011 and beyond.) The final GEIS was issued

in June 2009 on schedule.

**The target was not met because of a decrease in the actual number of reviews and because of increasing stakeholder involvem ent.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 94**  U.S. NUCLEAR REGULATORY COMMISSION Clean Up Complex Material Sites, Fuel Cycle Sites, Power Reactors, and Res earch and Test Reactors and Complete Uranium Recovery License Reviews

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Complete
decommissioning

and uranium
recovery licensing

actions as scheduled

in the

Decommissioning
Operating Plan. Complet e licensing

actions consistent

with the

Decommissioning
Operating Plan. Complete licensing

actions consistent

with the

Decommissioning
Operating Plan. Complete licensing

actions as scheduled

in the

Decommissioning
Operating Plan. TBD Complete lic ensing

actions as scheduled

in the

Decommissioning
Operating Plan.

Actual Completed
decommissioning at
1site. Completed

final rule for
preventing future
legacy sites. Consistent with the

Decommissioning Operating Plan,
completed 15

financial assurance

re views.

Completed 55
licensing actions

related to
decommissioning
and operating

facilities. Completed 29

financial assurance

reviews. Completed
25 licensing actions

related to
decommissioning and
operating facilities. Completed
decommissioning at

4 sites (3 Research

Reactors and 1
complex materials site). Completed 52
regulatory licensing
actions, including 41

financial assurance
reviews, and
completed 2

uranium recovery presubmission

reviews.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 95**  U.S. NUCLEAR REGULATORY COMMISSION OVERSIGHT

Provide Support to DOE for WIR Activiti es

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Complete WIR

review or
monitoring plan/activities as

scheduled in the

Environmental

Protection and

Performance

Assessment Operating Plan. Complete WIR

review or
monitoring plan/activities as

scheduled in the

Environmental

Protection and

Performance

Assessment Operating Plan. Complete WIR review
and monitoring plan

activities as

scheduled in the

Environmental

Protection and

Performance

Ass essment Operating Plan. Complete WIR

review and

monitor ing plan

activities as

scheduled in the

Environmental

Protection and

Perform ance

Assessment Operating Plan. TBD Complete WIR

review or
monitoring plan/activities as

scheduled in the

Environmental

Protection and

Performance

Assessment Operating Plan.

Actua l Completed 3 WIR

monitoring visits

and reviewed 11
technical reports

related to the

Savannah River

site’s Saltstone
Disposal Facility. Completed 3

monitoring visits
and issued a request

for additional

information on the
revised performance

assessment for the

Savannah River

site’s Saltstone
Disposal Facility.
Completed 1
monitoring visit for

Idaho National
Laboratory. Completed 2
monitoring visits and

issued a second
request for additional

information for the

Savannah River site’s
Saltstone Disposal

Facili ty. Issued a
request for additional

information and

technical evaluation
report for the

Savannah River site’s

F

- Tank Farm. Issued
a request for

additional
information, a waste
determination, and

technical evaluation
report for the West
Valley Melter Feed

Tanks. Completed 4 WIR

monitoring visits at
3 sites, issued

technical evaluation
reports for both the

Savannah River

site’s Saltstone
Disposal Facility
revised performance

assessment and the

F

- Tank Farm draft

waste
determination, and

issued the technical
evaluation report on
the West Valley

Melter Feed Tanks

draft waste

determination.

RESEARCH

Timeliness of Completing Actions on Critical Research Programs*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 90% of major

milestones met on

o r before their due

date. 90% of major

milestones met on

or before their due

date. 90% of major

milestones met on

or before their due

date. 90% of major

milestones met on

or before their due

date. TBD 90% of major

milestones met on

or before their due

date.

Actual 100% across

programs 100% across

programs NA** 100% across

programs

*Critical research programs typically respond to high

- priority needs from the Commission and the NRC’s licensing organizations. Critical research programs
on the highest pri ority needs are identified at the beginning of the fiscal year.

**No critical milestones were associated with the research activities conducted in this business line in FY 2012; therefore, there are no performance data to

report.

## NUCLEAR MATERIALS AND WASTE SAFETY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 96**  U.S. NUCLEAR REGULATORY COMMISSION Acceptable Technical Qua lity of Agency Research Technical Products*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Combined score

≥ 3.5 Combined score

≥ 3.5 Combined score

≥ 3.5 Combined score

≥ 3.5 TBD Combined score

≥ 3.75

Actual 4 4.6 NA** 4.5

*The NRC has developed a process to measure the quality of research products using surveys of endusers to determine the usability and value

- added of the
products. As appropriate, other mechanisms will be developed and added to this process to measure the quality of research pr oducts.

**No research products were produced for this business line during FY 2011.

INTERNATIONA L ACTIVITIES

Provide Support to IAEA Waste Safety Standards Committee Reviews, Consultancies/Expert Missions, Joint Convention, and Nuclea r Energy Agency Support*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in

FY 2012 Comp lete actions as

scheduled in the

Decommissioning

and Environmental

Protection and

Performance

Assessment Operating Plans. TBD Discontinued in

FY 2014*

Actual (a) Two Waste
Safety Standards

Committee meetings
for 20 documents, (b) OEDO for two

Commissi on on Safety Standards
meetings for eight
documents, (c) 10

IAEA consultancies/expert
missions, (d) Led

NRC effort on Joint

Convention, including being a Group Chair, (e) One
Plenary and 10
working group
Nuclear Energy Agency/Working

Party on

Decommissioni ng and Dismantling

meetings.

*Staff is proposing to discontinue this measure in FY 2014. It only minimally meets the Office of the Chief Financial Officer threshold of 4 FTE or $500 K at

the Product Line and is not supported by the Office of Internatio nal Programs.

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 97**  U.S. NUCLEAR REGULATORY COMMISSION

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 98**  U.S. NUCLEAR REGULATORY COMMISSION

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 99**  U.S. NUCLEAR REGULATORY COMMISSION 

## PERFORMANCE MEASUREMENT

The U.S. Nuclear Regulatory Commission’s (NRC’s) Updated Strategic Plan for fiscal years (FYs)

2008

– 2013 describes the agency’s mission and establishes the Commission’s direction by defining its goals, strategic o utcomes, and implementation strategies and programs that support these implementation strategies. The plan’s goal structure ensures a focus on outcomes. The FY 2014 Congressional Budget Justification uses the Strategic Plan structure to align resources a nd show a clear link between programs and the agency’s goals.

Measuring and monitoring performance is one of the four components of the NRC’s Planning, Budgeting, and Performance Management (PBPM) process. The other components are setting the strategic d irection, determining planned activities and resources, measuring and monitoring performance, and assessing performance.

The components of the PBPM process are closely linked and complementary, reflecting a continuous cycle of performance management cente red on outcomes. This document integrates the agency’s PBPM functions by aligning resources with the agency’s goals and by estab lishing performance measures to enable periodic measurement and monitoring of program execution. Annual performance assessment s are used to analyze performance and seek improvements in effectiveness and efficiency.



### RELATING GOALS TO RE **SOURCES**

The NRC has implemented the PBPM process to accomplish performance budgeting, performance measuring and monitoring, and performance assess ments within the agency. The performance budget integrates the agency’s PBPM functions by aligning resources with the agency’s goals and by establishing performance measures to enable measurement and monitoring of program execution. The

business line des criptions in this document identify how each business line contributes to the strategic goals of Safety or Security.

The agency has aligned its budget and accounting structures. This enables the NRC to use cost and other financial data together to evalua te agency program performance. The integration of financial, budget, and performance data provides managers the kind of information that can be used to drive improved agency performance.

The NRC identifies which activities under the agency’s two major pr ogram areas support the NRC’s

outcome

- based performance measures and uses these as guides to formulate the budget. Specifically, the agency develops program considerations and priorities that identify key external factors and internal

influences that woul d significantly affect the NRC’s work activities and resource requirements. For each major activity, the NRC identifies the products needed to achieve the outcome

- based performance measures, taking into consideration the program considerations and priorit ies. The NRC also identifies and prioritizes products needed based on their contribution to goals. Lastly, the NRC determines the resource requirements needed to achieve each product, forming the basis for developing the agency’s budget for each program area. Each of the NRC’s performance budget review levels takes into consideration those factors described above in relating outcome

- based performance measures and output

- based measures to resources in making budget recommendations and decisions.

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 100**  U.S. NUCLEAR REGULATORY COMMISSION **G OALS** 

Th e table below shows the alignment of the NRC’s fully costed Nuclear Reactor Safety Program and Nuclear Materials and Waste Safety Program with the Safety and Security goals. The full cost includes an allocation of the agency’s infrastructure and support c osts to specific programs.

Alignment of Resources to NRC Goals (Dollars in Millions) (Excludes Office of the Inspector General)

FY 2012

Enacted FY 2014
Request

Major Programs Safety Security Total Safety Security Total

Nuclear Reactor Safety 755.2 45.0 800.1 770.0 42.3 812.4

Nuclear Materials and Waste Safety 193.6 19.6 227.1 200.7 18.2 231.5

Total $948.8 $64.6 $1,027.2 $970.8 $60. 5 $1,043.9

Numbers may not add due to rounding.

**PERFORMANCE MEASURES** 



### Goal: Safety

The Performance Measures presented here and the Output Measures presented previously for each business line section support the justification of the agency’s b udget request and measure the performance of the agency’s business lines to gauge the productivity of the resources allocated to the agency’s internal processes and ac tivities. The output measures are productivity measures that show the quantity, quality, and/or the timeliness of activities that drive progress on these Performance

Me asures

.

1 NRR Number of New Conditions Evaluated as Red by the NRC’s Reactor Oversight Process*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target ≤ 3 ≤ 3 ≤ 3 ≤ 3 TBD ≤ 3

Actual 0 0 1 1

*This measure is the number of new red inspection findings and the number of new red performance indicators during the fiscal

year. Programmatic issues at multiunit sites that result in red findings for each indi vidual unit are considered separate conditions for purposes
of reporting for this measure. A red performance indicator and a red inspection finding that are due to an issue with the same underlying causes
also are considered separate conditions for purpos es of reporting for this measure. Red inspection findings are included in the fiscal year in
which the final significance determination was made. Red performance indicators are included in the fiscal year in which the Reactor Oversight
Process (ROP) exte rnal Web page was updated to show the red indicator.

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 101**  U.S. NUCLEAR REGULATORY COMMISSION 2 RES Number of Significant Accident Sequence Precursors *(ASPs) of a Nuclear Reactor Accident

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target ≤ 0 ≤ 0 ≤ 0 ≤ 0 TBD ≤ 0

Actual 0 0 0 0

*Significant ASP events have a conditional core damage probability (CCDP) or ΔCDP of greater than 1x10 - 3

. Such events have a 1/1000 (1x10 - 3 ) or greater
probability of leading to a reactor accident involving core damage. An identical condition affecting more than one plant is counted as a single ASP event if
a single accident initiator would have resulted in a single reactor accident.

3 NRR Number of Operating Reactors with Integrated Performance That Entered the Multiple/Repetitive
Degraded Corn erstone Column or the Unacceptable Performance Column of the Reactor Oversight
Process Action Matrix, or the Inspection Manual Chapter 0350 Process is ≤ 3 with No Performance
Leading to the Initiation of an Accident Review Group*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target ≤ 3 ≤ 3 ≤ 3 ≤ 3 TBD ≤ 3

Actua l 0 0 2 1

*This measure is the number of plants that have entered the process in Manual Chapter 0350, “ Oversight of Reactor Facilities in a Shutdown Condition due to Significant Performance and/or Operational Concerns ,” dated December 15, 2006; the mult iple/repetitive degraded cornerstone column; or the
unacceptable performance column during the fiscal year (i.e., were not in these columns or process the previous fiscal year). Data for this measure are
obtained from the NRC’s external Web Action Matrix Summary page, which provides a matrix of the five columns with the plants listed within their
applicable column and notes the plants in the Manual Chapter 0350 process. For reporting purposes, plants that are the subject of an approved deviation
from the Action Matrix are included in the column or process in which they appear on the Web page. The target value is set based on the expected
addition of several indicators and a change in the long

- term trending methodology (which will no longer be influenced b y the earlier data and will be
more sensitive to changes in current performance).

4 NRR Number of Significant Adverse Trends in Industry Safety Performance is ≤ 1*

FY 2009 FY 20109 FY 2011 FY 2012 FY 2013 FY 2014

Target ≤ 1 ≤ 1 ≤ 1 ≤ 1 TB D ≤ 1

Actual 0 0 0 0

*Considering all indicators qualified for use in reporting.

5 Number of Events with Radiation Exposures to the Public or Occupational Workers That Exceed
Abnormal Occurrence (AO) Criterion I.A.3*

FY 2009 FY 2010 FY 20 11 FY 2012 FY 2013 FY 2014

Reactors Target 0 0 0 0 TBD 0

Reactors Actual 0 0 0 0

Materials Target ≤ 2 ≤ 2 ≤ 2 ≤ 2 TBD ≤ 2

Materials Actual 0 0 0 0

Waste Target 0 0 0 0 TBD 0

Waste Actual 0 0 0 0

*Releases for which a 30

- day report is requi red under Title 10 of the Code of Federal Regulations (10 CFR) 20.2203(a)(3).

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 102**  U.S. NUCLEAR REGULATORY COMMISSION 6 Number of Radiological Releases to the Environment That Exceed Applicable Regulatory Limits*

FY 2009 FY 20110 FY 2011 FY 2012 FY 2013 FY 2014

Reactors Target** 0 0 0 0 TBD 0

Reactors Actual 0 0 0 0

Materials Target ≤ 2 ≤ 2 ≤ 2 ≤ 2 TBD ≤ 2

Materials Actual 0 0 0 0

Waste Target 0 0 0 0 TBD 0

Waste Actual 0 0 0 0

*Releases for which a 30

- day report is required under 10 CFR 20.2203(a)(3).

**With no event exceeding AO Crit erion 1.B.1.



### Goal: Security

The Perf ormance Measures connect to the Output Measures by supporting the justification of the agency’s budget request and to measure the performance of the agency’s business lines to gauge the productivity of the resources allocated to the agency’s internal proce sses and activities. Output measure is a productivity measure which shows the quantity, quality, and/or the timeliness of the agency and they support the Performance Measures

.

1 NSIR Unrecovered Losses of Risk

- Significant* Radioactive Sources

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 0 0 0 0 TBD 0

Actual 0 0 1** 0

*“Risk

- significant” is defined as any unrecovered, lost, or abandoned sources that exceed the values listed in Appendix P, “Category 1 and 2 Radioactive
Material,” to 10 CFR Part 110, “Export and Import of Nuclear Equipment and Material.” Excluded from reporting under this criterion are those events
involving sources that are lost or abandoned under the following conditions: (1) sources abandoned in accordance with t he requirements in

10 CFR 39.77(c), (2) recovered sources with sufficient indication that doses in excess of the reporting thresholds specified in AO Criteria I.A.1 and I.A.2 did
not occur during the time that the source was missing, (3) unrecoverable sour ces lost under such conditions that doses in excess of the reporting
thresholds specified in AO Criteria I.A.1 and I.A.2 were not known to have occurred, (4) other sources that are lost or abandoned and declared
unrecoverable , (5) a source for which the a gency has made a determination that its risk significance is low based on its location (e.g., water depth) or its
physical characteristics (e.g., half

- life and housing) and its surroundings, (6) cases in which all reasonable efforts have been made to recov er the source, and (7) the determination was made that the source is not recoverable and will not be considered a realistic safety or securi ty risk under this measure.
(This includes licenses under the Agreement States.)

**There were no losses and one the ft of radioactive nuclear material that the NRC considered to be risk significant during FY 2011.

2 NSIR Number of Substantiated* Cases of Actual Theft or Diversion of Licensed, Risk

- Significant Radioactive Sources or Formula Quantities** of Special Nu clear Material or Attacks That Result in Radiological Sabotage***

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 0 0 0 0 TBD 0

Actual 0 0 0 0

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 103**  U.S. NUCLEAR REGULATORY COMMISSION 3 NSIR Number of Substantiated Losses of Formula Quantities of Special Nuclear Material or S ubstantiated
Inventory Discrepancies of Formula Quantities of Special Nuclear Material That Are Judged To Be
Caused by Theft or Diversion or by Substantial Breakdown of the Accountability System

FY 2009 FY 20010 FY 2011 FY 2012 FY 2013 FY 2014

Tar get 0 0 0 0 TBD 0

Actual 0 0 0 0

4 NSIR Number of Substantial Breakdowns* of Physical Security or Material Control (i.e., Access Control,
Containment, or Accountability Systems) That Significantly Weakened the Protection against Theft,

Diversio n, or Sabotage

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target ≤ 1 ≤ 1 ≤ 1 ≤ 1 TBD ≤ 1

Actual 0 0 0 0

*A “substantial breakdown” is defined as a red finding in the security cornerstone of the ROP or any plant or facility that i s determi ned to either have overall unacceptable performance or be in a shutdown condition (inimical to the effective functioning of the Nation’s critica l infrastructure) as a result of
significant performance problems or operational events.

5 NSIR Number of S ignificant Unauthorized Disclosures *of Classified and/or Safeguards Information

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 0 0 0 0 TBD 0

Actual 0 0 0 0

*“Significant unauthorized disclosure” is defined as a disclosure that harms n ational security or public health or safety.

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 104**  U.S. NUCLEAR REGULATORY COMMISSION 

## Data Collection Procedures for Verification and Validation of Performance

**Measures**

Most of the data used to measure the U.S. Nuclear Regulatory Commission’s (NRC’s) performance against its strategic goals related to Safety and Security are obtained or derived from the NRC’s abnormal occurrence (AO) data and reports or preliminary notifications of events submitted by licensees. The AO criteria have been amended to ensure that they are consistent with the NR C’s Updated Strategic Plan for fiscal year (FY) 2008

– FY 2013 and the NRC rulemaking on Title 10 of the Code of Federal Regulations (10 CFR) Part 35, “Medical Use of Byproduct Materials.”

The NRC developed its AO criteria to comply with the legislative i ntent of Section 208 of the Energy Reorganization Act of 1974, as amended. The Act requires the NRC to inform Congress of unscheduled incidents or events that the Commission determines to be significant from the standpoint of public health and safety. NU REG

- 0090, “Report to Congress on Abnormal Occurrences,” issued annually, includes events that meet the AO criteria. In addition, in 1997, the Commission determined that events occurring at Agreement State licensed facilities that meet the AO

criteria shou ld be reported in the annual AO report to Congress. Therefore, the AO criteria that the NRC developed are uniformly applied to events that occur at facilities licensed or otherwise regulated by the NRC and the Agreement States.

Data for AOs originate from external sources, such as Agreement States and NRC licensees. The NRC believes these data are credible because (1) the information needed from external sources must be reported to the NRC by regulations, (2) the NRC maintains an aggressive inspection program that, among other activities, audits licensees and evaluates Agreement State programs to determine whether information is being reported as the regulations require, and (3) there are agency procedures for reviewing and evaluating licensees. The N RC database systems for safety that support this process include the Licensee Event Report (LER) Search System, the Accident Sequence Precursor (ASP) Database, the Nuclear Material Events Database (NMED), and the Radiation Exposure Information Report Syste m. The NRC database systems for security that support this process include the Suspicious Incidents Data System (SIDS).

The NRC has established procedures for the systematic review and evaluation of events that NRC licensees and Agreement State licensees report. The objective of the review is to identify events that are significant from the standpoint of public health and safety based on criteria that include specific thresholds. The NRC uses a number of sources to determine the reliability and the tech nical accuracy of event information reported to the NRC. Such sources include (1) NRC licensee reports, (2) NRC inspection reports, (3) Agreement State reports, (4) periodic review of Agreement State regulatory programs, (5) NRC consultant and contractor reports, and (6) U.S. Department of Energy Operating Experience Weekly Summaries. In addition, there are daily interactions and exchanges of event information between headquarters (HQ) and the regional offices, as well as periodic conference calls among H Q, the regions, and Agreement States to discuss event information. Identified events that meet the AO criteria are validated and verified by all applicable NRC HQ program offices, regional offices, and agency management before submission to Congress.

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 105**  U.S. NUCLEAR REGULATORY COMMISSION The following performance measures have been identified for verification and validation.

**G OAL**  **1**

**— S**  **AFETY :**  **E NSURE ADEQUATE PROTE**  **CTION OF PUBLIC HEAL TH AND SAFETY AND TH**  **E ENVIRONMENT**

**.**

N UCLEAR R EACTOR S AFETY

Strategic Outcomes:

• Prevent the occurrence of any n uclear reactor accidents.

• Prevent the occurrence of any inadvertent criticality events.

• Prevent the occurrence of any acute radiation exposures resulting in fatalities.

• Prevent the occurrence of any releases of radioactive materials that result in signif icant radiation

exposures.

• Prevent the occurrence of any releases of radioactive materials that cause significant adverse environmental impacts.

Performance Measures:

1

– Number of new conditions evaluated as red by the NRC’s Reactor Oversight Process.

Reactor Safety Target: Less than or equal to three

Verification: The data for this performance measure are collected in two ways as part of the NRC’s Reactor Oversight Process (ROP). NRC inspectors collect inspection findings at least quarterly. Inspe ctors use formal detailed inspection procedures to review plant operations and maintenance. NRC managers review inspection findings to assess their significance as part of the ROP’s significance determination process (SDP). Licensees collect the data for performance indicators and submit it to the NRC at least quarterly. The significance of the data is determined by thresholds for each indicator. The NRC conducts inspections of licensee processes for collecting and submitting the data to ensure complete ness, accuracy, consistency, timeliness, and validity.

The NRC enhances the quality of its inspections through inspector feedback and periodic reviews of results. The inspectors are trained through a rigorous qualification program. The quality of perfor mance indicators is improved through continuous feedback from licensees and inspectors that is incorporated into guidance documents. The NRC publishes the inspection findings and performance indicators on the agency’s Web site and incorporates feedback re ceived from all stakeholders as appropriate.

Validation: The inspection findings and performance indicators that the ROP uses cover a broad range of plant operations and maintenance. NRC managers review significant issues that are identified, and inspec tors conduct supplemental inspections of selected aspects of plant operations as appropriate. Senior agency managers review plants annually that are identified as having performance issues and a

self

- assessment of the ROP and report the results to the Com mission.

This measure is the number of new red inspection findings plus the number of new red performance indicators during the fiscal year. Programmatic issues at multiunit sites that result in red findings for each individual unit are considered separa te conditions for purposes of reporting for this measure. A

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 106**  U.S. NUCLEAR REGULATORY COMMISSION red performance indicator and a red inspection finding that are because of an issue with the same underlying causes are also considered separate conditions for the purposes of reporting for this measure. Red inspection findings are included in the fiscal year in which the final significance determination was made. Red performance indicators are included in the fiscal year in which the ROP external Web page was updated to show the red indicator.

2

– Number of significant accident sequence precursors of a nuclear accident.

Reactor Safety Target: Zero

Verification: The NRC has an ASP Program to evaluate U.S. nuclear power plant operating experience to identify, document, and rank operating eve nts that were most significant in terms of the potential for inadequate core cooling and core damage (i.e., precursors). The ASP Program evaluation process has five steps. First, the NRC screens operating experience data to identify events or conditions that may be potential precursors to a nuclear accident. The data that are evaluated include LERs, Augmented Inspection Team or special team reports, and other events that the NRC staff has identified as potential precursors. The second step is to conduct an engineering review of these screened events, using specific criteria, to identify those events requiring detailed analyses as candidate precursors. Third, the NRC staff calculates a conditional core damage probability (CCDP) or increase in core damage probability ( ∆ CDP) by mapping failures observed during the event or condition to accident sequences in risk models. Fourth, the preliminary potential precursor analyses are provided to the NRC staff and the licensee for independent peer review. However, for ASP analy ses of noncontroversial, low

- risk precursors, formal peer reviews by licensees may not be performed. The NRC staff will continue to perform an inhouse review process for all analyses. Lastly, findings from the analyses are provided to

the licensee and th e public. Note that there is a time lag in obtaining ASP analysis results because they are often based on LERs (submitted up to 60 days after an event) and completed inspection activities in which most take months to complete. Final data will be reported in the year in which the

event occurred.

Validation: The ASP program identifies significant precursors as those events that have a 1/1000 (1x10

- 3 ) or greater probability of leading to a nuclear reactor accident. Significant accident sequence

precurso r events have a CCDP or ∆CDP of ≥ 1x10

- 3

.

3

– Number of operating reactors with integrated performance that entered the multiple/repetitive degraded cornerstone column or the unacceptable performance column of the Reactor Oversight Process Action Matrix, or the Inspection Manual Chapter 0350 process is ≤3, with no performance leading to the initiation of an Accident Review Group.

Reactor Safety Target: Less than or equal to 3

Verification: The NRC ROP collects the data for this performance measure on a continuous basis, and the information is published at least quarterly. NRC inspectors use detailed formal procedures to conduct inspections of licensee performance, and NRC managers review the results to ensure the completeness, accuracy, consistency, ti meliness, and validity of the data.

The NRC enhances the quality of its inspections through inspector feedback and periodic reviews of results. The inspectors are trained through a rigorous qualification program. The quality is also improved through con tinuous feedback from licensees and inspectors that is incorporated into guidance documents. The NRC publishes the data on the agency’s Web site and incorporates feedback received from all stakeholders as appropriate.

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 107**  U.S. NUCLEAR REGULATORY COMMISSION Validation: The information that th e ROP collects covers a broad range of plant operations and maintenance. NRC managers review significant issues that are identified, and inspectors conduct supplemental inspections of selected aspects of plant operations as appropriate. Senior agency

man agers review plants annually that are identified as having performance issues and report the results to the Commission. The same is true of the agency’s ROP self

- assessment.

This measure is the number of plants that have entered the process in Inspectio n Manual Chapter 0350, “Oversight of Reactor Facilities in a Shutdown Condition due to Significant Performance and/or Operational Concerns,” dated December 15, 2006 ; the multiple/repetitive degraded cornerstone column; or the unacceptable performance colum n during the fiscal year (i.e., were not in these columns or process the previous fiscal year). Data for this measure are obtained from the NRC external Web Action Matrix Summary page that provides a matrix of the five columns with the plants listed withi n their applicable column and notes the plants in the Manual Chapter 0350 process. For reporting purposes, plants that are the subject of an approved deviation from the Action Matrix are included in the column or process in which they appear on the Web pa ge.

The Accident Review Group is described in the NRC’s Management Directive 8.9, “Accident Investigation,” dated August 26, 2005.

4

– Number of significant adverse trends in industry safety performance is ≤ 1.

Reactor Safety Target: Less than or equal to 1

Verification: Data for this performance measure are derived from data supplied by all power plant licensees in LERs, monthly operating reports, and performance indicator data submitted for the ROP. These data are required by 10 CFR 50.73, “ Licensee Event Report System,” or plant

- specific technical specifications, or they are submitted by all plants as part of the ROP. Detailed NRC guidelines and procedures are in place to control each of these reporting processes. The NRC reviews these procedures for appropriateness both periodically and in response to licensee feedback. The NRC also conducts periodic inspections of licensees’ processes for collecting and submitting the data to ensure completeness, accuracy, consistency, timeliness, and validity.

All licensees report the data at least quarterly. The NRC staff reviews all of the data and conducts inspections to verify safety

- significant information. The NRC also employs a contractor to review the data that licensees submit, input the data into a database, and compile the data into various indicators. Quality assurance processes for this work have been established and included in the contract statement of work. The experience and training of key personnel are controlled through administration

of the contract. The contractor identifies discrepancies to licensees and the NRC for resolution. The NRC reviews the indicators and publishes them on the agency’s Web site quarterly. The agency also incorporates feedback from licensees and the public, whe re appropriate. The target value is set based on the expected addition of several indicators and a change in the long

- term trending methodology.

Validation: The data and indicators that support reporting against this performance measure provide a

broad range of information on nuclear power plant performance. The NRC staff tracks indicators and applies statistical techniques to indicate whether industry performance is improving, steady, or degrading over time. If the staff identifies any adverse trends, the NRC addresses the problem through its processes for addressing generic safety issues and issuing generic communications to licensees. The NRC is developing additional, risk

- informed indicators to enhance the current set of indicators. In doing so, t he staff considers the costs and benefits of collecting the data through ongoing, extensive

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 108**  U.S. NUCLEAR REGULATORY COMMISSION interactions with industry about the indicators. Senior agency managers review the Industry Trends Program annually and report the results to the Commission.

5

– Nu mber of events with radiation exposures to the public and occupational workers from nuclear

reactors that exceed Abnormal Occurrence Criterion I.A.3

Reactor Safety Target: Zero

Verification: Licensees report overexposures through the LER process, which are then entered into a searchable database. The database is used to identify those LERs that report overexposures. NRC resident inspectors stationed at each nuclear power plant provide a high degree of assurance that all events meeting reporting criter ia are reported to the NRC. In addition, the NRC conducts inspections if there is any indication that an exposure exceeded, or could have exceeded, a regulatory limit. Finally, areas of the facility that may be subject to radiation contamination have mon itors that record radiation levels. These monitors would immediately reveal any instances in which high levels of radiation exposure occurred.

Validation: Given the nature of the process of using radioactive materials to generate power, overexposure t o radiation is a potential danger from the operation of nuclear power plants. Such exposure to radiation in excess of the applicable regulatory limits may potentially occur through either a nuclear accident or other malfunctions at the plant. Consequentl y, tracking the number of overexposures that occur at nuclear reactors is an important indicator of the degree to which safety is being maintained.

6

– Number of radiological releases to the environment from nuclear reactors that exceed applicable regulatory limits.

Reactor Safety Target: Zero

Verification: As with worker overexposures, licensees report environmental releases of radioactive materials that are in excess of regulations or license conditions through the LER process, which are

then entered into a searchable database. The database is used to identify those LERs reporting releases, and the number of reported releases is then applied to this measure. The NRC also conducts periodic inspections of licensees to ensure that they properly monitor and control releases to the environment through effluent pathways. In addition, onsite monitors would record any instances in which the plant releases radiation into the environment. If the inspections or the monitors reveal any

indication that an accide nt or inadvertent release has occurred, the NRC conducts followup inspections.

Validation: The generation of nuclear power creates radioactive materials that are released into the environment in a controlled manner. These radioactive discharges are subj ect to regulatory controls that limit the amount discharged and the resultant dose to members of the public. Consequently, the NRC tracks all releases of radioactive materials in excess of regulatory limits as a performance measure because large releases in excess of regulatory limits have the potential to endanger public safety or harm the environment. The NRC inspects every nuclear power plant for compliance with regulatory requirements and specific license conditions related to radiological effluent re leases. The inspection program includes enforcement actions that must be taken for violations of the regulations or license conditions, based on the severity of the event. This performance measure includes dose values that are classified as being as low as is reasonably achievable (ALARA) in Appendix I,

“ Numerical Guides for Design Objectives and Limiting Conditions for Operation To Meet the Criterion ‘As Low As Is Reasonably Achievable’ for Radioactive Material in Light

- Water

- Cooled Nuclear Power

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 109**  U.S. NUCLEAR REGULATORY COMMISSION Reactor Effluents,” to 10 CFR Part 50, “Domestic Licensing of Production and Utilization Facilities,” and the public dose limits in 10 CFR Part 20, “Standards for Protection against Radiation.” Because the performance measure includes ALARA values, which are not safety limits, and because Appendix I to 10 CFR Part 50 allows licensees to temporarily exceed the ALARA dose values, for good reason, the performance measure is set to 2.

N UCLEAR M ATERIAL AND W ASTE S AFETY

**Strategic Outcomes:**

• Prevent the occurrence o f any inadvertent criticality events.

• Prevent the occurrence of any acute radiation exposures resulting in fatalities.

• Prevent the occurrence of any releases of radioactive materials that result in significant radiation

exposures.

• Prevent the occurrence of any releases of radioactive materials that cause significant adverse environmental impacts.

Performance Measures:

1

– Number of events with radiation exposures to the public and occupational workers from radioactive

material that exceed Abnormal Occurren ce Criteria I.A.3

Materials Safety Target: Less than or equal to 2

Waste Safety Target: Zero

Verification: This performance measure includes any event involving licensed radioactive materials that results in significant radiation exposures to member s of the public or occupational workers that exceed the dose limits in the AO reporting criteria. Because of the extremely high doses used during medical applications of radioactive materials, it is also appropriate to use a radiation exposure that result s in unintended permanent functional damage to an organ or a physiological system as determined by a physician as a criterion for this measure. AO Criterion I.A.3 is used as the basis for this measure.

Should an event meeting this threshold occur, it w ould be reported to the NRC or Agreement States, or both, through a number of sources but primarily through required licensee notifications. These events are summarized in event notifications and preliminary notifications, which are used to widely

dissemi nate the information to internal and external stakeholders.

The fuel facilities, nuclear material users, spent fuel storage and transportation, decommissioning, and

low

- level waste programs contain elements that verify the completeness and accuracy of l icensee reports. The Integrated Materials Performance Evaluation Program (IMPEP) also provides a mechanism to verify that Agreement States and NRC regions are consistently collecting and reporting such events as received from the licensees and entering th em into NMED.

The NRC has taken a number of steps to improve the timeliness and completeness of materials event data. These steps include assessment of the NMED data during monthly staff reviews; emphasis and analysis during the IMPEP reviews; NMED train ing in HQ, the regions, and Agreement States; and discussions at all Agreement State and the Conference of Radiation Control Program Directors (CRCPD) meetings.

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 110**  U.S. NUCLEAR REGULATORY COMMISSION Validation: There is a logical basis for using events involving radiation exposures to the p ublic and occupational workers from radioactive material that exceed AO Criterion I.A as a performance measure for ensuring the protection of public health and safety. An event is considered an AO if it is determined to be significant from the standpoint of public health or safety. The NRC’s regulatory process, including licensing, inspection, guidance, regulations, and enforcement activities, is designed to mitigate the

likelihood of an event that would exceed AO Criterion I.A.3.

Events of this magnitud e are rare. In the unlikely event that an AO should occur, the NRC or Agreement State technical specialists will confirm whether the criteria were met, with input provided by expert consultants, as necessary.

The NRC does not use statistical sampling of data to determine results. Rather, all event data are reviewed to determine whether the performance measure has been met. There are two important data limitations in determining this performance measure. These include delay time for receiving

informatio n and failure of the NRC to become aware of an event that causes significant radiation exposures to the public or occupational workers. The NRC regulations associated with event reporting include specific requirements for timely notifications; there is a lag time separating the occurrence of an event and the known consequences of an event. The NRC believes the probability of not being aware of an event that causes significant radiation exposures to the public or occupational workers is very small. Period ic licensee inspections and regulatory reporting requirements are sufficient to ensure that an event of this magnitude would become known. If such an event occurred, it would result in a prompt and thorough investigation of the event, its consequences, it s root causes, and the necessary actions by the licensee and the NRC to mitigate the situation and prevent recurrence. In addition to these immediate actions, the NRC holds periodic meetings, in which staff and management validate the occurrence of these events.

2

– Number of radiological releases to the environment that exceed applicable regulatory limits

.

Materials Safety Target: Less than or equal to 2

Waste Safety Target: Zero

Verification: This performance measure is defined as any release to the environment from the following activities: fuel facilities, nuclear material users, spent fuel storage and transportation, decommissioning, and low

- level waste activities that exceed applicable regulations as defined in

10 CFR 20.2203(a)(3). A 30

- day wri tten report is required on such releases.

Should an event meeting this threshold occur, it would be reported to the NRC or Agreement States, or both, through a number of sources but primarily through required licensee notifications. These events

are su mmarized in event notifications and preliminary notifications, which are used to widely

disseminate the information to internal and external stakeholders.

The fuel facilities, nuclear material users, spent fuel storage and transportation, decommissionin g, and

low

- level waste programs contain elements that verify the completeness and accuracy of licensee reports. The IMPEP also provides a mechanism to verify that Agreement States and NRC regions are consistently collecting and reporting such events, as r eceived from the licensees, and entering them

into NMED.

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 111**  U.S. NUCLEAR REGULATORY COMMISSION The NRC has taken a number of steps to improve the timeliness and completeness of materials event data. These steps include assessment of the NMED data during monthly staff reviews; emphasis and

an alysis during the IMPEP review; NMED training in HQ, the regions, and Agreement States; and discussions at all Agreement State and CRCPD meetings.

Validation: The regulations in 10 CFR Part 20 provide standards for protection against radiation.

There i s a logical basis for tracking releases subject to the 30

- day reporting requirement in

10 CFR 20.2203(a)(3)(ii) as a performance measure for ensuring the protection of the environment. The NRC’s regulatory process, including licensing, inspection, guidanc e, regulations, and enforcement activities, is sufficient to ensure that releases of radioactive materials that exceed regulatory limits are infrequent.

In the unlikely event that a release to the environment exceeds regulatory limits, the NRC, Agreemen t State technical specialists, or agency consultants will confirm whether the criteria were met, with input provided by expert consultants, as necessary.

The NRC does not look at statistical sampling of data to determine results; instead, all event data are reviewed to determine whether the performance measure has been met. There are two important data limitations in determining this performance measure. These include delay time for receiving information

or the failure of the NRC to become aware of an e vent that causes environmental impacts. The NRC regulations associated with event reporting include specific requirements for timely notifications; there is a lag time separating the occurrence of an event and the known consequences of an event.

The NR C believes the probability of not being aware of an event that causes a radiological release to the environment that exceeds applicable regulations is very small. Periodic licensee inspections and regulatory reporting requirements are sufficient to ensure that an event of this magnitude would

become known.

If such an event occurred, it would result in a prompt and thorough investigation of the event, its consequences, its root causes, and the necessary actions by the licensee and the NRC to mitigate the situation and prevent recurrence. In addition to these immediate actions, the NRC holds periodic meetings, in which staff and management validate the occurrence of these events.

**Goal 2**

**— Security: Ensure the secure use and management of radioactive materi**  **als**

**.**

N UCLEAR R EACTOR AND N UCLEAR M ATERIALS AND W ASTE S ECURITY

Strategic Outcome

Prevent any instances in which licensed radioactive materials are used domestically in a manner hostile to the security of the United States.

Prevent unauthorized public di sclosures of classified or Safeguards Information through quality

measures.

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 112**  U.S. NUCLEAR REGULATORY COMMISSION Performance Measures

1

– Number of unrecovered losses or thefts of risk

- significant radioactive sources.

Target: Zero

Under AO Criterion I.C.1, the agency counts any unrecovered l ost, stolen, or abandoned sources that exceed the values listed in Appendix P, “Category 1 and 2 Radioactive Material,” to 10 CFR Part 110, “Export and Import of Nuclear Equipment and Material.” Excluded from reporting under this criterion

are those event s involving sources that are lost, stolen, or abandoned under certain conditions, specifically, (1) sources abandoned in accordance with the requirements of 10 CFR 39.77(c), (2) sealed sources contained in labeled, rugged source housings, (3) recovered sou rces with sufficient indication that doses in excess of the reporting thresholds specified in AO Criteria I.A.1 and I.A.2 did not occur during the time the source was missing, (4) unrecoverable sources lost under such conditions that

doses in excess of the reporting thresholds specified in AO Criteria I.A.1 and I.A.2 were not known to have occurred, and (5) other sources that are lost or abandoned and declared unrecoverable for which the agency has determined that the risk significance of the source is low based on the location (e.g., water depth) or physical characteristics (e.g., half

- life and housing) of the source and its surroundings where all reasonable efforts have been made to recover the source and where it has

been determined that the source is not recoverable and would not be considered a realistic safety or security risk under this measure.

Verification: Losses or thefts of radioactive material greater than or equal to 1,000 times the quantity specified in Appendix C, “Quantities of Licensed Mat erial Requiring Labeling,” to 10 CFR Part 20 must be reported (in accordance with 10 CFR 20.2201(a)) by telephone to the NRC HQ Operations Center or Agreement State immediately (interpreted as within 4 hours) if the licensee believes that an exposure

could result to persons in unrestricted areas. If an event meeting the thresholds described above occurs, it would be reported through a number of sources but primarily through this required licensee notification. Events that are publicly available are then e ntered and tracked in NMED, which is an essential system used to collect and store information on such events. Separate methods are used to track events that are not publicly available. Additionally, licensees must meet the reporting and accounting requi rements in 10 CFR Part 73, “Physical Protection of Plants and Materials,” and

10 CFR Part 74, “Material Control and Accounting of Special Nuclear Material.”

The NRC’s inspection programs are key elements in verifying the completeness and accuracy of

licen see reports. The IMPEP also provides a mechanism to verify that Agreement States and the NRC regions are consistently collecting and reporting such events as received from the licensees and are entering these events in NMED. In some cases, upon receiving a report, the NRC or Agreement State initiates an independent investigation that verifies the reliability of the reported information. When performed, these investigations enable the NRC or Agreement State to verify the accuracy of the reported data.

The regulation at 10 CFR 20.2201(b) requires a 30

- day written report for lost or stolen sources that are greater than or equal to 10 times the quantity specified in Appendix C to 10 CFR Part 20 if the source is still missing at that time. In addition, 10 CFR 20.2201(d) requires an additional written report within

30 days of a licensee learning any additional substantive information. The NRC interprets this requirement as including reporting recovery of sources.

The NRC issued guidance in Regulatory Issue Summary (RIS) 2005

- 21, “Clarification of the Reporting Requirements in 10 CFR 20.2201,” dated November 14, 2005, to clarify the current requirement in

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 113**  U.S. NUCLEAR REGULATORY COMMISSION 10 CFR 20.2201(d) for reporting recovery of a risk

- significant source. The NRC asked the Agreement

Stat es to send copies of RIS 2005

- 21 (or an equivalent document) to its licensees. The NRC issued the National Source Tracking System (NSTS) final rule in November 2006. On January 31, 2009, NRC licensees and Agreement State licensees were required to begin reporting information on source transactions to the NSTS. Implementation of this system creates an inventory of risk

- significant sources. This rulemaking established reporting requirements for risk

- significant sources (including reporting timeframes) by adding specific requirements to 10 CFR 20.2201, “Reports of Theft or Loss of Licensed Material,” for risk

- significant sources, including a requirement for licensees to report the recovery of a risk

- significant source within 30 days of recovery.

Validati on: Events collected under this performance measure are actual losses, thefts, or diversions of materials described above. Such events could compromise public health and safety, the environment, and the common defense and security. Events of this magnit ude are expected to be rare. The information reported under 10 CFR Part 73 and 10 CFR Part 74 is required so that the NRC is aware of events that could endanger public health and safety or national security. Any failures at the level of the strategic pla n would result in immediate investigation and followup.

If an event subject to the reporting requirements described above occurs, it would result in a prompt and thorough investigation of the event, its consequences, its root causes, and the necessary act ions by the licensee, the NRC, or an Agreement State to mitigate the situation and prevent recurrence.

2

– Number of substantiated cases of theft or diversion of licensed risk

- significant radioactive sources or formula quantities of special nuclear material or attacks that result in radiological sabotage.

Target: Zero

Verification: In AO Criterion I.C.2, “substantiated” means a situation that requires additional action by the agency or other proper authorities because of an indication of loss, theft, or unlawful diversion

— such as an allegation of diversion, report of lost or stolen material, statistical processing difference, or other indication of loss of material control or accountability

— that cannot be refuted following an investigation. A formula qu antity of special nuclear material (SNM) is defined in 10 CFR 70.4, “Definitions.” Radiological sabotage is defined in 10 CFR 73.2, “Definitions.” Licensees subject to the requirements in 10 CFR Part 73 must call the NRC within 1 hour of an occurrence to report any breaches of security or other event that may potentially lead to theft or diversion of material or to sabotage at a nuclear facility. The NRC’s safeguards requirements are described in 10 CFR 73.71, “Reporting of Safeguards Events”; Appendix G , “Reportable Safeguards Events,” to 10 CFR Part 73;

and 10 CFR 74.11, “Reports of Loss or Theft or Attempted Theft or Unauthorized Production of Special Nuclear Material.” The information assessment team composed of NRC HQ and regional staff

members woul d conduct an immediate assessment for any significant events to determine any further actions that are needed, including coordination with the intelligence community and law enforcement.

In accordance with 10 CFR 73.71(d), the licensee must also file a wr itten report within 60 days of the incident describing the event and the steps that the licensee took to protect the nuclear facility. This information will enable the NRC to adequately assess whether radiological sabotage has occurred.

Validation: Eve nts subject to reporting requirements are those that endanger the public health and safety and the environment through deliberate acts of theft or diversion of material or through sabotage directed against the nuclear facilities that the agency licenses. Events of this type are extremely rare. If such an event occurs, it would result in a prompt and thorough investigation of the event, its consequences, its root causes, and the necessary actions by the licensee or the NRC to mitigate the

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 114**  U.S. NUCLEAR REGULATORY COMMISSION situation and pre vent recurrence. The investigation ensures the validity of the information and assesses the significance of the event.

3

– Number of substantiated losses of formula quantities of special nuclear material or substantiated inventory discrepancies of a formula quantity of special nuclear material that are judged to be caused by theft, diversion, or substantial breakdown of the accountability system.

Target: Zero

Verification: Licensees must record events associated with AO Criterion I.C.3 within 24 hours o f the identified event in a safeguards log that the licensee maintains. The licensee must retain the log as a

record for 3 years after the last entry is made or until termination of the license. The NRC relies on its safeguards inspection program to ensu re the reliability of recorded data. The NRC makes a determination of whether a substantiated breakdown has resulted in a vulnerability to radiological sabotage, theft, diversion, or unauthorized enrichment of SNM. When making substantiated

breakdown det erminations, the NRC evaluates the materials event data to ensure that licensees are reporting and collecting the proper event data.

Validation: “Substantiated” means a situation that requires additional action by the agency or other proper authorities because of an indication of loss, theft, or unlawful diversion

— such as an allegation of diversion, report of lost or stolen material, statistical processing difference, other system breakdown closely related to the material control and accounting program (such as an item control system associated with the licensee’s facility IT system), or other indication of loss of material control or accountability

— that cannot be refuted following an investigation. A formula quantity of SNM is

defined in 10 CFR 70.4. Events collected under this performance measure may indicate a vulnerability to radiological sabotage, theft, diversion, or loss of SNM. Such events could compromise public health and safety, the environment, and the common defense and security. The

NRC relies on its safeguards inspection program to help validate the reliability of recorded data and to determine whether a breakdown of a physical protection or material control and accounting system has actually resulted in vulnerability.

4

– Number of subst antial breakdowns of physical security or material control (i.e., access control containment or accountability systems) that significantly weaken the protection against theft, diversion, or sabotage.

Target: Less than or equal to 1

Verification: In AO C riterion I.C.4, a “substantial breakdown” is defined as a red finding in the security cornerstone of the ROP or significant performance problems or operational events resulting in a determination of overall unacceptable performance or in a shutdown conditi on (inimical to the effective functioning of the Nation’s critical infrastructure). Radiological sabotage is defined in 10 CFR 73.2. Licensees are required to report to the NRC, immediately after the occurrence becomes known, any known breakdowns of phys ical security, based on the requirements in 10 CFR 73.71 and Appendix G

to 10 CFR Part 73. If a licensee reports such an event, the HQ operations officer prepares an official record of the initial event report. The NRC begins responding to such an event immediately upon

notification with the activation of its information assessment team. A licensee must follow its initial telephone notification with a written report submitted to the NRC within 30 days.

The licensee records breakdowns of physical protect ion resulting in a vulnerability to radiological sabotage, theft, diversion, or loss of SNM or radioactive waste within 24 hours in a safeguards log that the licensee maintains. The licensee must retain the log as a record for 3 years after the last entry is

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 115**  U.S. NUCLEAR REGULATORY COMMISSION made or until termination of the license. Licensees subject to 10 CFR Part 73 must also meet the reporting requirements detailed in 10 CFR 73.71. The NRC evaluates all of the reported events based

on the criteria in 10 CFR 73.71 and Appendix G to 10 CFR Part 73. The NRC also maintains and relies on its safeguards inspection program to ensure the reliability of recorded and reported data.

Validation: Events assessed under this performance measure are those that threaten nuclear activities by delib erate acts, such as radiological sabotage, directed against facilities. If a licensee reports such an event, the information assessment team evaluates and validates the initial report and determines any further actions that may be necessary. Tracking bre akdowns of physical security indicates whether the licensee is taking the necessary security precautions to protect the public, given the potential consequences of a nuclear accident attributable to sabotage or the inappropriate use of nuclear

material eit her in this country or abroad.

Events collected under this performance measure may indicate a vulnerability to radiological sabotage, theft, diversion, or loss of SNM or radioactive waste. Such events could compromise public health and safety, the enviro nment, and the common defense and security. The NRC relies on its safeguards inspection program to help validate the reliability of recorded data and to determine whether a breakdown of a physical protection or material control and accounting system has a ctually resulted in a vulnerability.

5

– Number of significant unauthorized disclosures of classified or Safeguards Information.

Target: Zero

Verification: In regard to AO Criterion I.C.5, any alleged or suspected violations by NRC licensees of

the Ato mic Energy Act, Espionage Act, or other Federal statutes related to classified or Safeguards Information must be reported to the NRC under the requirements in 10 CFR 95.57(a) (for classified information), 10 CFR Part 73 (for Safeguards Information), and NR C orders (for Safeguards Information subject to modified handling requirements). However, for performance reporting, the NRC would only count those disclosures or compromises that actually cause damage to national security or to public health and safety. Such events would be reported to the cognizant security agency (i.e., the security agency with jurisdiction) and the regional administrator of the appropriate NRC regional office, as listed in Appendix A, “U.S. Nuclear Regulatory Commission Offices and

Cl assified Mailing Addresses,” to 10 CFR Part 73. The regional administrator would then contact the Division of Security Operations at NRC HQ, which would assess the violation and notify other NRC offices and Government agencies, as appropriate. A determin ation would be made as to whether the compromise damaged national security or public health and safety. Any unauthorized disclosures or compromises of classified or Safeguards Information that damaged national security or public health and safety would re sult in immediate investigation and followup by the NRC. In addition, NRC inspections will verify that licensees’ routine handling of classified information and Safeguards Information (including Safeguards Information subject to modified handling requirem ents) conforms to established security information management requirements.

Any alleged or suspected violations of this performance measure by NRC employees, contractors, or other personnel would be reported in accordance with NRC procedures to the Direct or of Division of Facilities and Security at NRC HQ. The NRC maintains a strong system of controls over national security and Safeguards Information, including (1) annual required training for all employees, (2) safe and secure document storage, and (3) p hysical access control in the form of guards and badged access.

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 116**  U.S. NUCLEAR REGULATORY COMMISSION Validation: Events collected under this performance measure are unauthorized disclosures of classified information or Safeguards Information that damage the national security or public healt h and safety. Events of this magnitude are not expected and would be rare. If such an event occurs, it would result in a prompt and thorough investigation, including consequences, root causes, and necessary actions by the licensees and the NRC to mitigat e the consequences and prevent recurrence. NRC investigation teams also validate the materials event data to ensure that licensees are reporting and collecting the proper event data.

The following table shows the relationship between the agency’s goals, performance measures, and its seven program business lines

. For example, the strategic outcome of “prevent the occurrence of any nuclear reactor accidents” relates to the New Reactors and Operating Reactors business lines. The strategic outcome of “preve nt the occurrence of any inadvertent criticality events” relates to all of the agency’s business lines

. Each program evaluates event reports and other pertinent data i to report the results for each strategic outcome, performance measure, and output measur e

. For each output measure, the specific product line involved is identified in the table.

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 117**  U.S. NUCLEAR REGULATORY COMMISSION Goals, Performance Measure, and Program

Crosswalk

— Safety

Measures NRC Business Lines

New Reactors Operating

Reactors Fuel Facilities Materials

Users Decomm &

Low

- Level

Waste Spent

Fuel

Strategic Outcomes

Prevent the occurrence of any nuclear reactor

accidents. x x x

Prevent the occurrence of any inadvertent criticality

events. x x x x x x

Prevent the occurrence of any acute radiation

exposures re sulting in fatalities. x x x x x x

Prevent the occurrence of any releases of radioactive
materials that result in significant radiation exposures. x x x x x x

Prevent the occurrence of any releases of radioactive
materials that cause significant adverse environmental

impacts. x x x x x x

Performance Measures

Number of new conditions evaluated as red by the
NRC’s reactor oversight process. x

Number of significant accident sequence precursors (ASPs) of a nuclear reactor accident. x

Numbe r of operating reactors whose integrated
performance entered the Manual Chapter 0350 process or the multiple/repetitive degraded or
unacceptable cornerstone of the Reactor Oversight Program (ROP) Action Matrix with no performance
exceeding Abnormal Occurre nce (AO) criteria. x

Number of significant adverse trends in industry safety
performance. x

Number of events with radiation exposures to the
public or occupational workers that exceed AO

Criterion I.A.3. x x x x x X

Number of radiological rel eases to the environment
that exceed applicable regulatory limits. x x x x x x

Output Measures

Completion of license renewal application reviews. Licensing

Licensing actions completed per year. Licensing

Age of other licensing task inve ntory. Licensing

Age of licensing action inventory. Licensing

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 118**  U.S. NUCLEAR REGULATORY COMMISSION Goals, Performance Measure, and Program

Crosswalk

— Safety

Measures NRC Business Lines

New Reactors Operating

Reactors Fuel Facilities Materials

Users Decomm &

Low

- Level

Waste Spent

Fuel

Other licensing tasks completed per year. Licensing

Number of operator licensing examinations

administered. Licensing

Efficiency measure: Minimize necessary

communication systems devices for senior manager

use. Oversight

Number of plants for which the baseline inspection
program was completed during the most recently
ended inspection cycle. Oversight

Timeliness of significance determination process (SDP)

eval uations. Oversight

Time to complete reviews of technical allegations. Oversight

Timeliness in completing enforcement actions. Oversight

Timeliness in completing investigations

— Target 1. Oversight

Timeliness in completing investigati ons

— Target 2 Oversight

Timeliness in completing actions on critical research

programs. Research

Acceptable technical quality of agency research
technical products. Research

Emergency Response Performance Index. Event Response

Review early site permit applications on the schedules
negotiated with the applicants. Licensing

Review design certification (DC) applications on the
schedules negotiated with the applicants. Licensing

Review combined operating license (COL) applicat ions
on the schedules negotiated with the applicants. Licensing

Review small modular reactor (SMR) DC applications
on the schedules negotiated with the applicants. Licensing

Identify and resolve policy and key technical issues
facing the review of SMR applications. Implement
resolution through rule changes or guidance
development. Licensing

Review SMR preapplication submittals on the
schedules negotiated with the applicants. Licensing

Review SMR COL and construction permit applica tions on the schedules negotiated with the applicants. Licensing

Complete all vendor inspections as scheduled and

resourced. Oversight

Timeliness of completing “complex” fuel cycle Licensing

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 119**  U.S. NUCLEAR REGULATORY COMMISSION Goals, Performance Measure, and Program

Crosswalk

— Safety

Measures NRC Business Lines

New Reactors Operating

Reactors Fuel Facilities Materials

Users Decomm &

Low

- Level

Waste Spent

Fuel

licensing actions from the date of acceptance,
excluding reques t for additional information with an
assumption of 30

- day response to a request for

additional information.

Timeliness of completing “noncomplex” fuel cycle licensing actions (e.g., amendments and reviews) from
the date of acceptance, inclu ding a 30

- day response
for a request for additional information. Licensing

Efficiency measure: New fuel facilities hearing

support. Licensing

Timeliness in completing reviews for technical
allegations. Oversight

Safety and safeguards ins pection modules. Complete
all core and reactive inspect ion modules as scheduled
in Fuel Cycle Master Inspection Plan. Oversight

Timeliness of safety and safeguards inspection
modules. Complete core inspection modules as
scheduled in Fuel Cycle Mas ter Inspection Plan. Oversight

Percentage of operating facilities for which the core
inspection program was completed during the most
recently ended inspection cycle. Oversight

Timeliness of licensing actions

— reviews of application

for new ma terials licenses and license amendments. Licensing

Timeliness of licensing actions

— reviews of application

for materials license renewals and sealed source and
device designs. Licensing

Timeliness of safety inspections of materials licensees. Oversight

Timeliness in completing reviews for technical
allegations. Oversight

Timeliness in completing enforcement actions. Oversight

Timeliness in completing investigations

— Target 1. Oversight

Timeliness in completing investigation s

— Target 2. Oversight

Percentage of materials and waste rulemakings
completed on schedule. Rulemaking

Timeliness of completing actions on critical research

programs. Research

Acceptable technical quality of agency research
technical produ cts. Research

Complete storage container and installation design
reviews within timeliness goals. Licensing

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 120**  U.S. NUCLEAR REGULATORY COMMISSION Goals, Performance Measure, and Program

Crosswalk

— Safety

Measures NRC Business Lines

New Reactors Operating

Reactors Fuel Facilities Materials

Users Decomm &

Low

- Level

Waste Spent

Fuel

Complete transportation container design reviews
within timeliness goals. Licensing

Using intraagency contracting. Licensing

Waste Confidence and Extended Long

- Term Storage

Activities

– Percent of Planned Products Completed

within a Fiscal Year. Licensing

Number of spent fuel storage and transportation
inspections completed. Oversight

Timeliness of completing acti ons on critical research

programs. Research

Acceptable technical quality of agency research
technical products. Research

Support program licensing activities by preparing or
reviewing environmental reports and preparing

environmental review doc uments. Licensing

Eliminate the need for some site

- specific environmental impact statements (i.e., by reducing resource needs) by developing a generic
environmental impact statement for uranium recovery

environmental reviews. Licensing

Cleanup complex materials, fuel cycle sites, and power
reactors; complete uranium recovery licensing

reviews. Oversight

Provide support to U.S. Department of Energy for waste incidental to reprocessing (WIR) activities. Oversight

Timeliness of complet ing actions on critical research

programs. Research

Acceptable technical quality of agency research
technical products. Research

Provide support to International Atomic Energy
Agency Waste Safety Standards Committee reviews,

consultancies and e xpert missions, Joint Convention, and Nuclear Energy Agency. International

Activities

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 121**  U.S. NUCLEAR REGULATORY COMMISSION Goals, Performance Measure, and
Program Crosswalk

— Security

Measures NRC Business Lines

New

Reactors Operating

Reactors Fuel Facilities Materials User s Decomm &

Low

- Level

Waste Spent Fuel

Strategic Outcome

No instances where licensed radioactive
materials are used domestically in a
manner hostile to the security of the

United States. x x x x x x

Performance Measures

Unrecovered losses of risk

- significant

radioactive sources. x x x x x x

Number of substantiated cases of actual
theft or diversion of licensed,

risk

- significant radioactive sources or
formula quantities of special nuclear
material (SNM), or attacks that result in
radiological sabotage. x x x x x x

Number of substantiated losses of formula
quantities of SNM or substantiated
inventory discrepancies of formula
quantities of SNM judged to be caused by

theft or diversion or substantial breakdown
of the accountability system. x x x x x x

Number of substantial breakdowns of physical security or material control (i.e.,

access control, containment, or accountability systems) that significantly
weakened the protection against theft,
diversion, or sabotage. x x x x x x

Number of signif icant unauthorized

disclosures of classified information or
Safeguards Information. x x x x x x

## PERFORMANCE MEASUREM ENT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 122**  U.S. NUCLEAR REGULATORY COMMISSION

## OFFICE OF THE INSPEC TOR GENERAL

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 123**  U.S. NUCLEAR REGULATORY COMMISSION

## OFFICE OF THE INSPEC TOR GENERAL

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 124**  U.S. NUCLEAR REGULATORY COMMISSION

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 125**  U.S. NUCLEAR REGULATORY COMMISSION 

## Office of the Inspector General

The U.S. Nuclear Regulatory Commission’s (NRC’s) Office of the Inspector General (OIG) was

established as a statutor y entity on April 15, 1989, in accordance with the 1988 amendments to the Inspector General Act. The OIG mission is to (1) independently and objectively conduct and supervise audits and investigations relating to NRC programs and operations, (2) prevent a nd detect fraud, waste, and abuse, and (3) promote economy, efficiency, and effectiveness in the NRC’s programs and operations.

In addition, OIG reviews existing and proposed regulations, legislation, and directives and provides comments, as appropriate, and makes recommendations to the agency concerning their impact on the economy and efficiency of agency programs and operations. The Inspector General keeps the NRC Chairman and members of Congress informed about problems, recommends corrective actions, a nd monitors NRC’s progress in implementing these actions.

Budget Overview Budget Authority by Program (Dollars in Millions)

FY 2012

Enacted FY 2014
Request Delta

FY 2014

– FY 2012

Summary $M FTE $M FTE $M FTE

Program Support 1.276 1.245

- 0.031

Progr am Salaries

and Benefits 9.584 58 9.860 58 0.276 0

Total $10.860 58 $11.105 58 $0.245 0

Numbers may not add due to rounding.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 126**  U.S. NUCLEAR REGULATORY COMMISSION 

### PROGRAM RESOURCE SUM **MARY**

The fiscal year (FY) 2014 proposed budget request for OIG is $11.105 million, which includes $9.860 m illion in salaries and benefits to support 58 full

- time equivalents (FTE) and $1.245 million in program support. These resources will fund the activities of the Audits and Investigations Programs.

Budget Authority and FTE by Program Budget Authority b y Program (Dollars in Millions)

FY 2012

Enacted FY 2014 Request Delta

FY 2014

– FY 2012

Summary $M FTE $M FTE $M FTE

Audits 7.171 37 7.3 14 37 0.143 0

Investigations 3.689 21 3.791 21 0.102 0

Total $10.860 58 $11.105 58 $0. 245 0

Numbers may not add due to rounding.

In accordance with Office of Management and Budget (OMB) requirements, OIG is showing the full
cost associated with its programs for the FY 2014 budget with the following caveat. As a result of an

October 1 989 memorandum of understanding between the NRC’s Chief Financial Officer and the
Inspector General and a subsequent amendment in March 1991, OIG no longer requests that funding
for some OIG management and support services be included in the OIG appropriat ion. It was agreed
that funds for OIG infrastructure requirements and other agency support services would instead be
included in the NRC’s main appropriation. For the most part, these costs are not readily severable.
Thus, this funding continues to be i ncluded in the NRC’s main appropriation.

**A UDITS**  **P ROGRAM** 

Audits Budget Authority by Program (Dollars in Millions)

FY 2012

Enacted FY 2014 Request Delta

FY 2014

– FY 2012

Summary $M FTE $M FTE $M FTE

Program Support 7.171 37 7.3 14 37 0.143 0

Total $7.171 37 $7.3 14 37 $0.143 0

Numbers may not add due to rounding.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 127**  U.S. NUCLEAR REGULATORY COMMISSION H

IGHLIGHTS

The OIG Audits Program focuses on the agency’s management and financial operations; economy and efficiency with which an organizatio n, program, or function is managed; and whether the programs achieve intended results. OIG auditors assess the degree to which an organization complies with laws, regulations, and internal policies in carrying out programs, and they test program effective ness and the accuracy and reliability of financial statements. The overall objective of an audit is to identify ways to enhance agency operations and to promote greater economy and efficiency.

For FY 2014, OIG requests $7.314 million and 37 FTE to carry out its Audits Program activities. With these resources, the Audits Program will conduct approximately 22 audits and evaluations. This will enable the OIG to provide coverage of the NRC’s Reactor Safety, Materials and Waste Safety, Security, and Corporat e Support Programs. OIG’s assessment of these mission critical programs will support the agency in accomplishing its goals to ensure adequate protection of public health and safety and the environment and in the secure use and management of radioactive ma terials.

C

HANGES FROM FY 2012 E NACTED

Resources increase in the Audits Program to fund the January 2014 pay raise, within

- grade and

benefits costs increases in FY 2013 and FY 2014.

FY 2013

– FY 2014 A UDITS P ROGRAM P ERFORMANCE G OALS

• Safety Area: 85 percent of audit products and activities undertaken will identify critical risk areas or management challenges relating to the improvement of the NRC’s safety programs.

• Security Area: 90 percent of audit products and activities undertaken will identify critical risk areas or management challenges relating to the improvement of the NRC’s security programs.

• Corporate Management Area: 80 percent of audit products and activities undertaken will identify critical risk areas or management challenges relating to the improvement of the NRC’s corporate management programs.

• Eighty

- five percent of completed audit products or activities will have a high impact on strengthening the NRC’s safety, security, and corporate management programs.

• Obtain agency agreement on at le ast 92 percent of OIG audit recommendations.

• Obtain final agency action on an aggregate of 70 percent of OIG audit recommendations within

2 years.

S

ELECTED FY 2012 A UDITS P ROGRAM A CCOMPLISHMENTS

In FY 2012, OIG issued 22 reports pertaining to NRC progra ms and operations. These reports either evaluate high

- risk agency programs or comply with mandatory financial and computer security

- related legislation.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 128**  U.S. NUCLEAR REGULATORY COMMISSION E

XAMPLES OF R ECENTLY C OMPLETED W ORK A RE A S F OLLOWS :

Audit of NRC’s Oversight of Industrial Radiograph y :

The NRC regulates the use of ionizing radiation for nondestructive examination of the structure of materials in its jurisdiction. This process is known as industrial radiography. Radiographers use radiography devices, or cameras, to produce images u sed in the examination of structures, such as pipelines. The cameras contain radioactive sealed sources. When the source is exposed, radiation penetrates the material and produces a shadow image on film or some other detection medium. The NRC’s regulato ry requirements for industrial radiography are provided in Title 10 of the Code of Federal Regulations (10 CFR) Part 34, “Licenses for Industrial Radiography and Radiation Safety Requirements for Industrial Radiographic Operations.” These regulations requ ire radiographers to perform radiography in a safe manner. The audit objective was to determine the adequacy of NRC’s processes for overseeing licensee activities addressing the safety and control of radiography sources.

Audit Results :

Generally, the NR C’s oversight of industrial radiography is effective, and the agency has taken steps to improve its oversight by updating some guidance for radiography and stressing the importance of safety culture during radiography inspections. However, OIG identified the following areas that could be improved: (1) clarity and consistency of what activities licensees are authorized to conduct or when licensees may conduct them, (2) routine inspection program for licensees, (3) temporary jobsite inspections, and (4) app roach to inspecting NRC licensees located in Agreement States. Addressing these concerns will improve the NRC’s oversight of industrial radiography by ensuring that inspections are conducted where needed and at the proper frequency.

Audit of NRC’s Manage ment of Import/Export Authorizations :

One of the NRC’s statutorily mandated responsibilities under the Atomic Energy Act of 1954, as amended (AEA), is to license the import and export of nuclear materials and equipment into and from

the United States. T he NRC’s Office of International Programs (OIP) is assigned to process specific nuclear import and export licensing actions under 10 CFR Part 110, “Export and Import of Nuclear Equipment and Material,” after receiving any necessary guidance from the Commis sion.

From FY 2008 through FY 2010, OIP completed between 123 and 139 licensing actions per year. The audit objectives were to determine whether the NRC (1) properly reviews and approves import/export authorizations in a timely manner, (2) effectively c oordinates this activity with other Federal agencies, and (3) efficiently and effectively coordinates import/export authorizations internally.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 129**  U.S. NUCLEAR REGULATORY COMMISSION Audit Results :

In general, OIP is properly reviewing and approving import/export license authorizations (appli cations) in a timely fashion and coordinates effectively with external stakeholders. However, OIG identified opportunities for improvement for more efficient and effective internal coordination on import and export authorizations. Specifically, (1) OIP d oes not have a systematic approach to biennial fee reviews and adjustments, (2) OIP does not reconcile import and export license application revenue, and (3) OIP does not employ an adequate quality control review process over application files. Addressing these concerns will strengthen the NRC’s internal control over import and export licensing and result in excess of $357,000 in funds being put to better use.

**Audit of NRC’s Protection of Safeguards Information :** 

Safeguards Information (SGI) is a category of sensitive unclassified information that is unique to NRC. SGI is detailed security

- related information that identifies security measures for the physical protection of special nuclear material or security measures for the physical protection and locat ion of certain plant equipment vital to the safety of production or utilization facilities. Unauthorized disclosure of SGI could have a significant adverse effect on public health and safety and the common defense and security by significantly increasing the likelihood of theft, diversion, or sabotage of materials or facilities subject to NRC jurisdiction. The audit objective was to determine whether the NRC adequately ensures the protection of SGI. This audit was conducted to followup on an audit issued in January 2004,

OIG

- 04

- A

- 04 , “Audit of NRC’s Protection of Safeguards Information .” The 2004 audit found that the benefit of having an SGI program was unclear and that the NRC lacked a central authority for controlling, coordinating, and communicating S GI program requirements. The audit also found examples in which NRC and licensee representatives inappropriately released SGI to unauthorized

individuals.

Audit Results :

Since the 2004 audit, the NRC has made improvements to the SGI program, including the development of a Management Directive specifically for SGI and identification of a lead program office for developing SGI policies and procedures. However, OIG identified the following areas for further improvement of the SGI program: The NRC (1) lac ks a structured process for tracking SGI releases, (2) lacks guidance on granting “outsiders” access to SGI, and (3) has inadequate business processes over the SGI designator role. Addressing these areas will strengthen the agency’s ability to protect SGI from unauthorized disclosure and enhance its SGI program.

**Audit of NRC’s Use of Confirmatory Action Letters :** 

The NRC regulates commercial nuclear power plants and other civilian uses of nuclear materials, such as in nuclear medicine, through licensing, inspection, and enforcement of its requirements. In exercise of its regulatory responsibilities, the NRC uses administrative actions, such as confirmatory action letters (CALs), to supplement the agency’s enforcement program. CALs are “letters confirming a licensee's agreement to take certain actions to remove significant concerns about health and safety, safeguards, or the environment.” The audit objective was to determine the effectiveness of NRC’s use of CALs as a regulatory tool. To meet this object ive, OIG auditors focused on the agency’s administration of the CAL process.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 130**  U.S. NUCLEAR REGULATORY COMMISSION Audit Results :

The NRC’s administration of the CAL process is not as effective as it could be. Specifically, CAL guidance is inconsistent because the CAL guidance does not in clude some offices’ roles nor clearly identify all CAL recipients. Further, NRC program and regional offices do not fully comply with CAL guidance. Despite requirements in the “NRC Enforcement Manual” for the concurrence, tracking, and numbering of CALs, (1) some required office concurrences on CALs are missing, (2) CAL tracking practices vary among offices, and (3) CAL numbering conventions vary among offices. Weaknesses in the NRC’s CAL guidance and compliance with the guidance exists because the agenc y does not have a centralized control point for agencywide oversight and implementation of a fully effective CAL process, including consistent CAL guidance, compliance with the guidance, and the tracking of CALs. Consequently, the NRC may be missing oppor tunities to effectively use CALs for potential CAL recipients not identified in current guidance and to e fficiently track and trend CALs.

E

XAMPLES OF O NGOING A UDIT W ORK A RE A S F OLLOWS :



### Audit of NRC’s Travel Charge Card Program **:**

The NRC’s Travel Charge C ard Program is part of the Governmentwide Commercial Charge Card Program established to pay the official travel expenses of employees while on temporary duty or other official business travel. The intent of the program is to improve convenience for the tr aveler and to reduce the Government’s costs of administering travel. OMB has issued guidance that establishes requirements (including internal controls designed to minimize the risk of travel card misuse) and has suggested best practices for Government tr avel card programs. During FY 2011, 2,613 NRC employees charged approximately $9 million on travel charge cards, primarily issued to employees as individually billed accounts. Travel cardholders are directly responsible for all charges incurred on their account. The Office of the Chief Financial Officer administers the NRC’s travel charge card program and controls the use of agency funds to ensure that they are expended in accordance with applicable laws and standards. The audit objective is to assess w hether the NRC’s policies and procedures are effective in preventing and detecting travel charge card misuse and delinquencies.



### 2012 NRC Safety Culture and Climate Survey

In 1998, 2002, 2006, and 2009, OIG contracted with an international survey firm to conduct surveys that evaluated the organizational safety culture and climate of the NRC’s workforce and identified agency strengths and opportunities for improvements. Comparisons were made to the previous surveys and to national and Government norms. In response to the survey results, the agency evaluated the key areas for improvement and developed strategies for addressing them. A clear understanding of the NRC’s current safety culture and climate will facilitate identification of agency strengths and opportunities as it continues to experience significant challenges. These challenges include the licensing of new nuclear facilities, disposal of high

- level waste, the loss of valuable experience from retirements, operating under continuing resolutions, s maller budgets, and legislation that froze Federal civilian employee pay rates. The survey results are also useful to OIG in programming future work. The survey objectives are to (1) measure the NRC’s safety culture and climate to identify areas of stren gth and opportunities for improvement, (2) compare the results of this survey against the survey results that OIG reported previously, and (3) provide, where practical, benchmarks for the qualitative and quantitative findings against other organizations.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 131**  U.S. NUCLEAR REGULATORY COMMISSION 

### Audit of NRC’s Implementation of Its NEPA Responsibilities

The National Environmental Policy Act (NEPA) of 1969 requires Federal agencies, as part of their decisionmaking process, to consider the environmental impacts of actions under their jurisdiction. NEPA requires that an environmental impact statement of the proposed action be prepared for “major Federal actions significantly affecting the quality of the human environment.” Consultations to ensure compliance with other statutory mandates, such as wit h Section 7 of the Endangered Species Act of

1973 and Section 106 of the National Historic Preservation Act of 1966, are also part of the NEPA review process. Environmental reviews occur at three levels, ranging from categorical exclusion to an

environmen tal assessment or to the detailed environmental impact statement. NRC has issued regulations to implement NEPA requirements in 10 CFR Part 51, “Environmental Protection Regulations for Domestic Licensing and Related Regulatory Functions.” The audit objec tive is to determine whether the NRC implements its environmental review and consultation responsibilities, as prescribed by NEPA.

**OIG Evaluation of the NRC's Use and Security of Social Media**

Social media technologies, commonly referred to as Web 2.0, all ow individuals and organizations to create, edit, organize, and share content in user

- generated virtual communities. Web 2.0 technologies include (1) Web logs (blogs)

— a Web site containing the writer’s or group of writers’ opinions on a topic, including p hotographs and links to other Web sites, (2) social media sites, such as Twitter and Facebook, and (3) video sharing sites such as YouTube. The evaluation objective is to determine how the NRC uses social media, the effectiveness and efficiency of the NRC ’s use of social media, and whether the NRC staff are using social media in a secure manner. The evaluation will also assess the extent to which the NRC has developed and implemented policies and procedures for protecting

information associated with the u se of social media and regulatory or budgetary constraints impeding the agency’s use of social media.

**I NVESTIGATIONS**  **P ROGRAM** 

Investigations Budget Authority by Program (Dollars in Millions)

FY 2012

Enacted FY 2014 Request Delta

FY 2014

– FY 2012

Summary $M FTE $M FTE $M FTE

Program Support $3.689 21 $3.791 21 $0.102 0

Total $3.689 21 $3 .791 21 $0.102 0

Numbers may not add due to rounding.

H

IGHLIGHTS

OIG’s responsibility for detecting and preventing fraud , waste, and abuse within the NRC includes investigating possible violations of criminal statutes relating to the agency’s programs and activities;

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 132**  U.S. NUCLEAR REGULATORY COMMISSION investigating misconduct by NRC employees; interfacing with the U.S. Department of Justice on

OIG

- related cr iminal matters; and coordinating investigations and other OIG initiatives with Federal, State, and local investigative agencies and other OIGs. Investigations may be initiated as a result of allegations or referrals from private citizens; licensee employe es; NRC employees; Congress; other Federal, State, and local law enforcement agencies; OIG audits; the OIG hotline; and Inspector General initiatives directed at bearing a high potential for fraud, waste, and abuse.

For FY 2014, OIG requests $3.791 millio n and 21 FTE to carry out its Investigations Program activities. Reactive investigations into allegations of criminal and other wrongdoing will continue to claim priority on OIG’s use of available resources. Because the NRC’s mission is to protect the pu blic health and safety, the Investigations Program’s main concentration of effort and resources will involve investigations of alleged NRC staff misconduct that could adversely affect matters related to health and safety. OIG has also implemented a series of proactive initiatives designed to identify specific high

- risk areas that are most vulnerable to fraud, waste, and abuse. With these resources, OIG will conduct approximately 60 investigations and E vent I nquiries covering a broad range of allegations c oncerning misconduct and mismanagement affecting various NRC programs.

C

HANGES FROM FY 2012 E NACTED

Resources increase in the Audits Program to fund the January 2014 pay raise, within

- grade and

benefits costs increases

.

FY 2013

– FY 2014 I NVESTIGATIONS P ROG RAM P ERFORMANCE G OALS

• Safety Area: 85 percent of investigation products and activities undertaken will identify critical risk areas or management challenges relating to the improvement of the NRC’s safety

programs.

• Security Area: 90 percent of investiga tion products and activities undertaken will identify critical risk areas or management challenges relating to the improvement of the NRC’s security

programs.

• Corporate Management Area: 80 percent of investigation products and activities undertaken

will identify critical risk areas or management challenges relating to improvement of the NRC’s corporate management programs.

• Eighty

- five percent of investigations or activities completed will have a high impact on strengthening the NRC’s safety, security, an d corporate management programs.

• Obtain 90 percent agency action in response to OIG investigative reports.

• Complete 90 percent of active cases in less than 18 months on average.

S

ELECTED FY 2012 I NVESTIGATIONS P ROGRAM A CCOMPLISHMENTS

In FY 2012, OIG co mpleted 55 investigations. These investigative efforts focused on violations of law or misconduct by NRC employees and contractors and allegations of irregularities or inadequacies in NRC programs and operations.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 133**  U.S. NUCLEAR REGULATORY COMMISSION E

XAMPLES OF R ECENTLY C OMPLETED W ORK ARE A S F OLLOWS :



### Release of Predecisional Information on Commission Notation Vote

OIG conducted an investigation into an allegation that sensitive information concerning the outcome of a nonpublic Commission vote was leaked to a congressional member. The vote p ertained to a “Statement of Interest” (i.e., Federal preemption) by the U.S. Department of Justice in a lawsuit filed by Entergy Nuclear against the State of Vermont.

Investigative Results :

OIG found that numerous NRC employees received e

- mails from each Commission member stating how he or she voted on the “Statement of Interest” matter. In addition, these same employees received

an e

- mail from the Office of the Chairman providing the final 3 to 2 vote tally, including a breakout of

how each Commission m ember voted. OIG found that a congressional members’ office was aware of the overall 3 to 2 vote before its official release. OIG was unable to determine how the congressional members learned about the vote tally.

Potential Ethics Violation Involving Outs ide Employment by an Office of Nuclear Regulatory Research
Employee

OIG conducted an investigation into an allegation that an NRC employee was serving on a peer review
panel in South Africa but did not obtain management approval to work on the panel.

Inves tigative Results :

OIG found that the NRC employee was a paid consultant for a panel; however, the NRC employee sought guidance from the agency’s Office of the General Counsel on employment with the panel.

There were no costs incurred to the NRC and no i ndications that the NRC employee used NRC resources to conduct work on behalf of the panel. OIG determined that the South African peer review panel was a foreign government entity and that, by accepting compensated employment, the employee violated the Em oluments Clause of the U.S. Constitution. OIG also determined that the NRC employee failed to report his or her association with the South African peer review panel to the Division of Facilities and Security (DFS) in violation of an NRC Management Directi ve. As a result of this investigation, the employee returned the compensation received from the South African peer review panel.

Failure to Inspect North Anna Nuclear Plant, Unit 1, after Earthquake and Inspection of Unit 2

The OIG conducted an investig ation into an allegation that an NRC senior official failed to protect public health and safety by not inspecting North Anna Nuclear Power Plant (North Anna), Unit 1, internals after it was shut down because of an August 2011 earthquake centered in Mineral , VA.

Investigative Results :

The OIG determined that NRC headquarters dispatched an augmented inspection team (AIT) to the facility following the earthquake. OIG reviewed the NRC’s technical evaluation of the event that documented the agency’s inspection activities and conclusions supporting its decision to allow North Anna to restart to include a conclusion on the functionality of the reactor vessel internals. The

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 134**  U.S. NUCLEAR REGULATORY COMMISSION technical evaluation explained in detail the inspection activities of both Units 1 and 2. The technical evaluation also explained why certain inspection results of Unit 2 would be representative of the findings for Unit 1. Further, the decision to restart North Anna was not the Regional Administrator’s responsibility. NRC headquarters personn el declared the facility safe and was ultimately authorized to restart after confirming that regulatory requirements were met.

Mishandling of Personally Identifiable Information by an iLearn Contractor

OIG conducted an investigation into an allegation of a possible leak of NRC employees’ personally

identifiable information (PII) in an e

- mail sent from an Office of Personnel Management’s (OPM) training provider, which manages the agency’s learning management system known as iLearn

. The

NRC uses the OPM tra ining provider to manage iLearn as part of an OMB requirement that all agencies use one of five authorized certified training providers to track Federal employee training. The e

- mail in question was sent to three NRC employees located in the Office of the Chief Human Capital Officer and one training provider contractor employee.

Investigative Results :

OIG found that the training provider mishandled NRC employee PII by sending it in clear text as an attachment to a regular e

- mail. Upon notification of th e PII transmittal by an NRC employee, the training provider coordinated with OPM to remove all remnants of the e

- mail, the attachment, and all documents used to create the attachment. The training provider also implemented steps to prevent this from happ ening in the future and committed to re

- e ducating its employees on the future handling and transporting of PII through secure transfer methods.

OIG also found that the NRC’s task order with OPM d id not adequately address the retention and

destruction of NRC employee PII the training provider used to update the training database. This shortcoming put the agency at risk of having outdated sets of PII in the possession of OPM’s contractor

for inadvertent misuse. This investigation identified a shortcoming in the NRC’s contractual arrangement that required the training provider to provide NRC employee PII to OPM to meet the training documentation requirement in OPM’s e

- Government initiative, Enterprise Human Resources Integration

.

Possible Violations of the NRC’s Internal Commission Procedures and the Reorganization Plan No. 1 of 1980 by

Former Chairman

OIG conducted an investigation into four allegations concerning a former NRC Chairman’s exercise of his authority under the Reorganization Plan No. 1 of 1980 (Reorganization Plan) and the Energy Reorganization Act of 1974. The investigation also addressed allegations concerning the former Chairman’s interactions with NRC officials and the Chairman’s testimony during U.S. House of Representatives and Senate com mittee hearings in December 2011.

Investigative Results :

OIG found the former Chairman did not exceed his authorities under the Reorganization Plan in leading NRC’s response to events in Japan following the March 2011 earthquake and tsunami that caused a

c risis at the six

- unit Fukushima Dai

- ichi Nuclear Power station in Japan. The Chairman is authorized to direct the NRC’s response to emergencies under Sections 2 and 3 of the Reorganization Plan.

Section 2 allows the Chairman to direct the agency’s respon se as the NRC’s principal executive officer and to communicate to the public about the response as the official Commission spokesman. Section 3

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 135**  U.S. NUCLEAR REGULATORY COMMISSION provides special authority for the Chairman to respond to an emergency concerning an NRC licensee

without consu lting with the Commission on matters that would otherwise require a collegial approach. OIG found that the Reorganization Plan gives the Chairman sole authority to declare the existence of a

Section 3 emergency but does not specifically require the Chairm an to declare use of the Section 3 authority. Moreover, OIG did not identify any NRC procedure requiring the Chairman to make a

Section 3 declaration, and the Chairman did not make such a declaration. OIG found that the former

Chairman made reasonable ef forts to keep Commissioners informed of actions taken during the emergency period.

OIG found the Chairman’s actions concerning the withdrawal and resubmission of a revised SECY

paper 1 did not violate the Internal Commission Procedures in regard to “withdra wal of papers submitted to the Commission.” However, OIG found that the Chairman’s direction not to include the Executive Director for Operations’ perspective on the SECY paper was inconsistent with the Commissioners’ expectations to receive the staff’s w ritten views, analysis, and recommendations as part of SECY papers. OIG found the Reorganization Plan assigns the Chairman responsibility for “developing policy planning and guidance for consideration by the Commission,” but it does not define these terms or articulate the limits on the Chairman’s authority in this area. Moreover, the legislative history provides conflicting interpretations as to whether the Chairman can direct the staff not to submit written policy proposals to the Commission or alter th e information that the staff provides in its written policy proposals.

OIG found that the former Chairman initially instructed the Secretary of the Commission not to follow the consensus approach of the four Commissioners concerning moving forward to final ize the revised Internal Commission Procedures. OIG found conflicting direction in the Reorganization Plan and an NRC Management Directive concerning the Chairman’s supervisory authority over the Secretary and noted that, although the Chairman is authoriz ed to provide administrative supervision and oversight of the Secretary, the Secretary must also be responsive to Commission direction concerning matters under its purview.

OIG identified more than 15 examples of interactions between the Chairman and NRC senior executives and Commissioners in which the Chairman’s behavior was not supportive of an open and collaborative work environment. In addition, OIG found the Chairman’s testimony of December 2011

before the House and Senate committees was inconsistent , in five areas, with testimony provided to OIG by NRC senior officials during this investigation.

1 The Commission’s primary decisionmaking tool is a written issue paper referred to as a SECY paper.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 136**  U.S. NUCLEAR REGULATORY COMMISSION E

XAMPLES OF O NGOING I NVESTIGATIVE W ORK A RE A S F OLLOWS :

NRC Regulatory Oversight

OIG initiated a special project to proactively monitor NRC technical and re gulatory processes, nuclear
industry trends, trade press, and other sources to identify potential problematic areas in the agency’s
regulatory oversight of operating reactors, nuclear materials, and high

- level and low

- level waste.

NRC Network Intrusion, Co mputer Misuse, and Computer Forensic Support

The OIG Cyber Crime Unit conducts investigations into internal and external cyber breaches to the NRC’s IT infrastructure, conducts cyber investigations involving the NRC and its employees, and works jointly wit h NRC staff to identify unauthorized or unknown activity on the agency’s network. Investigations include computer misuse by NRC employees, targeted spear phishing attacks against NRC employees, attempted network intrusions, unauthorized release of electro nic sensitive information, and forensic assistance to the NRC in regard to alleged licensees’ violations of regulatory requirements.

Violations of Public Trust

The OIG initiated a project to identify violations of public trust and to develop investigat ions focused to
recognize schemes that may lead to criminal offenses, including bribery, extortion, embezzlement, and
illegal kickbacks. This project involves the review of a variety of information sources and deploys

innovative methods to focus on restri ctions on former employees engaging in postemployment activities
that affect the NRC and acts that affect a personal financial interest of current or former employees.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 137**  U.S. NUCLEAR REGULATORY COMMISSION 

### OIG’S STRATEGIC GOAL **S, STRATEGIES, AND A CTIONS** 

OIG carries out its mission through its A udits and Investigations Programs. The NRC

- OIG 2008

- 2013 Strategic Plan, which is currently being updated, features three goals and guides the activities of these programs. The plan identifies the major challenges and risk areas facing the NRC and genera lly aligns with the agency’s mission. It also includes a number of supporting strategies and actions that describe OIG’s planned accomplishments over the strategic planning period. OIG’s strategic plan can be accessed in its entirety at the following add ress: http://www.nrc.gov/insp

- gen/plandocs/strategic

- plan.pdf.

Through annual planning activities, audit and investigative resources focus on assessing the NRC’s safety, security, and corporate management programs that involve the major challenges and risk areas facing the agency in the given budget year. The work that OIG auditors and investigators perform is mutually supportive and complementary in pursuit of these objectives. Below are OIG’s strategic goals and strategies covering this budget c ycle.

**OIG S**  **TRATEGIC G**  **OALS**

S TRATEGIC G OAL 1: S TRENGTHEN THE NRC’ S EFFORTS TO PROTECT PUBLIC HEALTH AND SA FETY AND THE

ENVIRONMENT

.

The NRC faces many safety challenges and an associated increased workload related to nuclear reactor oversight, the regulatio n of nuclear materials, and the handling of nuclear waste. A significant concern for the agency is regulating the safe operation of the Nation’s nuclear power plants through an established oversight process. The NRC also must address an increasing number of license amendment requests to increase the power generating capacity of specific commercial reactors; license renewal requests to extend reactor operations beyond originally set expiration dates; and the introduction of new technology, such as new and advanced reactor designs. Further, the NRC must ensure that its regulatory activities on nuclear fuel cycle facilities and nuclear materials adequately protect public health and safety. Below are OIG’s strategies to support the agency’s efforts in facing these challenges.

• Strategy 1

- 1: Identify risk areas associated with the NRC’s Reactor Oversight Process and make recommendations, as warranted, for addressing them.

• Strategy 1

- 2: Identify risk areas associated with NRC efforts to (1) prepare for a nd manage the review of applications for new power reactors and (2) oversee construction of new power reactors to verify that they are built in conformance with approved designs and in compliance with approved construction standards and make recommendation s, as warranted, for addressing them.

• Strategy 1

- 3: Identify risk areas facing the materials programs and make recommendations, as warranted, for addressing them.

• Strategy 1

- 4: Identify risk areas associated with low

- level waste and the prospective lic ensing of the high

- level waste repository and make recommendations, as warranted, for addressing

them.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 138**  U.S. NUCLEAR REGULATORY COMMISSION S TRATEGIC G OAL 2: E NHANCE THE NRC’ S EFFORTS TO INCREAS E SECURITY IN RESPON SE TO AN EVOLVING TH REAT

ENVIRONMENT

.

The NRC continues to face a number of ch allenges in ensuring that the public is protected from improper use of nuclear materials and technology. The NRC, in concert with other agencies, must maintain a comprehensive assessment of threats and effectively integrate security considerations into

it s regulatory process. The agency also must ensure that security is adequately incorporated into the design and construction of new facilities. Listed below are OIG’s strategies to support the NRC in facing these and other security

- related challenges.

• St rategy 2

- 1: Identify risk areas involved in effectively securing both operating and proposed nuclear power plants, nuclear fuel cycle facilities, and nuclear materials and make recommendations, as warranted, for addressing them.

• Strategy 2

- 2: Identify ri sks associated with emergency preparedness and make recommendations, as warranted, for addressing them.

• Strategy 2

- 3: Identify challenges involved in responding to incidents and make recommendations, as warranted, for addressing them.

• Strategy 2

- 4: Ident ify evolving threats to NRC security and make recommendations, as warranted, for addressing them.

• Strategy 2

- 5: Identify risks associated with nonproliferation of nuclear material and nuclear technology and make recommendations, as warranted, for addressi ng them.

S TRATEGIC G OAL 3: I NCREASE THE ECONOMY
, EFFICIENCY
, AND EFFECTIVENESS WI TH WHICH THE NRC MANAGES AND

EXERCISES STEWARDSHI P OVER ITS RESOURCES

.

The NRC faces significant challenges to efficiently, effectively, and economically manage its resources

. Although a number of organizational changes have been implemented in recent years, more changes will occur over the strategic timeframe. The agency will need to continue balancing workloads and priorities to support new reactor licensing efforts. This will create tremendous pressure on all program management areas, including human resources management, information technology, and financial management. Listed below is OIG’s strategy to support the agency in mitigating these challenges.

• Strategy 3

- 1: Identify areas of corporate management risk within the NRC and make recommendations, as warranted, for addressing them.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 139**  U.S. NUCLEAR REGULATORY COMMISSION 

### OIG PROGRAM PERFORMA **NCE MEASURES**

OIG Strategic Goal 1: Strengthen the NRC’s Efforts To Protect Public Health and Safety

and the Env ironment

2009 2010 2011 2012 2013 2014

Measure 1. Percentage of OIG products/activities 2 undertaken to identify critical risk areas or management challenges 3 relating to the improvement of
the NRC’s safety programs.

Target 80% 85% 85% 85% TBD 85%

Act ual 100% 100% 100% 100% TBD TBD

Measure 2. Percentage of OIG products/activities that have a high impact 4 on improving the NRC’s safety program.

Target 70% 85% 85% 85% TBD 85%

Actual 89% 100% 91% 89% TBD TBD

Measure 3. Number of audit recommendations agreed to by agency.

Target 90% 92% 92% 92% TBD 92%

Actual 60% 5 60% 6 80% 7 91% 8 TBD TBD

Measure 4. Final agency action within 2 years of audit recommendations.

Target 50% 9 70% 70% 70% TBD 70%

Actual 67% 80% 80% 80% TBD TBD

Measure 5. Agency action in response to investigative reports.

Target 90% 95% 95% 95% TBD 95%

Actual 100% 100% 100% 100% TBD TBD

Measure 6. Complete active cases in less than 18 months on average.

Target 90% 10 TBD 90%

Actual 100% TBD TBD

2 OIG products are issued as OIG reports. For the Audits Program, these are audit reports and evaluations. For the Investigations Program, these are investigations, Event Inquiries, and Special Inquiries. Activities are the OIG hotline or proactive inves tigative reports.
3 Congress left the determination and threshold of what c onstitutes a most serious challenge to the discretion of the Inspectors General. As a result, OIG applied the following definition: Serious management challenges are mission

- critical areas or programs that have a potential for a perennial weakness or vul nerability that, without substantial management attention, would seriously impact agency operations or strategic goals.

4 High impact is the effect of an issued report or activity undertaken that results in (1) confirming risk areas or management challeng es that caused the agency to take corrective action, (2) achieving real dollar savings or reduced regulatory burden, (3) identifying significant wrongdoing by individuals that results in criminal or administrative action, (4) clearing an individual wrongly accused, or (5) identifying regulatory actions or oversight that may have contributed to the occurrence of a specific event or incident or re sulted in a potential adverse impact on public health or safety.

5 The agency required more than 90 days to revie w 5 of 6 recommendations on the Agreement State Program audit before resolution. Three of the 5 recommendations were agreed to within 98 days.
6 The agency required more than 90 days to review 4 recommendations on the Quality Assurance Planning for New R eactors audit before resolution. Subsequently, all 4 recommendations have been closed or resolved.

7 The agency required more than 90 days to review 3 of 5 recommendations on the Audit of NRC’s Implementation of 10 CFR Part 21, “Reporting of Defects and Noncompliance.” Subsequently, all 5 recommendations have been resolved.

8 The agency required more than 90 days to resolve 2 of 5 recommendations on the Audit of the NRC’s Management of Licensee Commitments before resolution. Subsequently, all 5 recomme ndations have been resolved.

9 The measure will change from final agency action within 1 year on audit recommendations to 2 years on audit recommendations starting in FY 2010.

10 Starting in FY 2012, OIG will measure the percentage of active cases complet ed in less than 18 months on average.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 140**  U.S. NUCLEAR REGULATORY COMMISSION OIG Strategic Goal 2: Enhan ce the NRC’s Efforts To Increase Security in Response
to an Evolving Threat Environment

2009 2010 2011 2012 2013 2014

Measure 1. Percentage of OIG products/activities undertaken to identify critical risk areas or management challenges relatin g to the i mprovement of
the NRC’s security programs.

Target 85% 90% 90% 90% TBD 90%

Actual 100% 100% 100% 100% TBD TBD

Measure 2. Percentage of OIG products/activities that have a high impact on improving the NRC’s security program.

Target 70% 75% 75% 75% TBD 7 5%

Actual 100% 100% 100% 100% TBD TBD

Measure 3. Number of audit recommendations agreed to by the agency.

Target 90% 92% 92% 92% TBD 92%

Actual 82% 11 97% 100% 96% TBD TBD

Measure 4. Final agency action within 2 years of audit recommendations.

Target 65% 12 70% 70% 70% TBD 70%

Actual 40% 13 80% 100% 88% TBD TBD

Measure 5. Agency action in response to investigative reports.

Target 90% 90% 90% 90% TBD 90%

Actual 100% 100% 100% 100% TBD TBD

Measure 6. Complete active cases in less than 18 months on av erage.

Target 90% 14 TBD 90%

Actual 100% TBD TBD

11 The agency took more than 90 days to review 2 recommendations on the National Source Tracking System audit. The agency agreed to both recommendations within 97 days.

12 The measure will change from final agency ac tion within 1 year on audit recommendations to 2 years on audit recommendations starting in FY 2010.

13 The agency is taking more than 1 year to complete final action on recommendations related to information security. The agency agreed with all recommend ations, and action has been taken to correct identified deficiencies.

14 Starting in FY 2012, OIG will measure the percentage of active cases completed in less than 18 months on average

.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 141**  U.S. NUCLEAR REGULATORY COMMISSION OIG Strategic Goal 3: Improve the Economy, Efficiency, and Effectiveness with Which
the NRC Manages and Exercises Stewardship over Its Resources

2009 2010 2011 2012 2013 2014

Measure 1. Perce ntage of OIG products/activities undertaken to identify critical risk areas or management challenges relating to the improvem ent of
the NRC’s resources stewardship.

Target 65% 80% 80% 80% TBD 80%

Actual 100% 100% 100% 100% TBD TBD

Measure 2. Percentage of OIG products/activities that have a high impact on improving the NRC’s resources stewardship.

Target 70% 85% 85% 85% TBD 85%

Actual 92% 70% 15 65% 16 85% TBD TBD

Measure 3. Number of audit recommendations agreed to by the agency.

Target 90% 90% 92% 92 % TBD 92%

Actual 96% 100% 100% 100% TBD TBD

Measure 4. Final agency action within 2 years of audit recommendations.

Target 65% 17 70% 70% 70% TBD 70%

Actual 54% 18 93% 100% 86% TBD TBD

Measure 5. Agency action in response to investigative reports.

Targ et 90% 90% 90% 90% TBD 90%

Actual 100% 100% 100% 100% TBD TBD

Measure 6. Acceptance by NRC’s Office of the General Counsel of OIG

- referred Program Fraud and Civil Remedies Act cases.

Target 70% 19

Actual No referrals

Measure 7. Complete acti ve cases in less than 18 months on average.

Target 90% 20 TBD 90%

Actual 96% TBD TBD

15 For FY 2010, a more rigorous standard was applied for the impact o f investigations in the corporate management arena.

16 For FY 2011, a more rigorous standard was applied for the impact of investigations in the corporate management arena.

17 The measure will change from final agency action within 1 year on audit recommen dations to 2 years on audit recommendations starting in FY 2010.

18 The agency is taking more than 1 year to complete final action on 12 of 17 Training and Development audit recommendations. The agency agreed with all recommendations, and final action has been completed on all 17 recommendations.

19 The performance measure was determined to be ineffective because another NRC program office was primarily responsible for ensuring completion of action with minimal activity from year to year and because the me asure will be removed starting in FY 2010.

20 Starting in FY 2012, OIG will measure the percentage of active cases completed in less than 18 months on average.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 142**  U.S. NUCLEAR REGULATORY COMMISSION **V ERIFICATION AND**  **V ALIDATION OF**  **M EASURED**  **V ALUES AND**  **P ERFORMANCE** 

OIG uses an automated management information system to capture program performance data for the

Au dits and Investigations Programs. The integrity of the system was thoroughly tested and validated before implementation. Reports generated by the system provide both detailed information and summary data. All system data are deemed reliable.

**P ROGRAM**  **E VALUATIONS**  **(P EER**  **R EVIEWS**  **)**

Quality assurance reviews undertaken in FY 2010 and FY 2011 by an NRC OIG consultant determined that audits were conducted in conformance with the Government Accountability Office’s Government Auditing Standards. An independent a udit peer review performed in FY 2009 by the U.S. Small Business Administration OIG found that the Audits Program’s system of quality control provided reasonable assurance that audits were conducted in accordance with applicable professional

standards.

In addition, an independent investigative peer review was conducted by the U.S. Department of State

OIG in FY 2010 of the OIG Investigations Program. The program was found to be in compliance with the Council of the Inspectors General on Integrity and Eff iciency and U.S. Department of Justice investigative standards.



### INSPECTOR GENERAL RE **FORM ACT CERTIFICATI ON FOR FY 2014** 

In accordance with the Inspector General Reform Act (Public Law 110

- 409), the NRC OIG budget request submitted to the NRC Chairman for FY 2014 was for $11.105 million and 58 FTE and was subsequently approved. The Inspector General certifies that NRC’s OIG training request of $120,000 satisfies the training requirements for the Inspector General’s office. In addition, funds are available for the NRC OIG share of the resources needed to support the Council of the Inspectors General on Integrity and Efficiency.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 143**  U.S. NUCLEAR REGULATORY COMMISSION 

### FY 2014 OFFICE OF TH **E INSPECTOR GENERAL BUDGET RESOURCES LIN**  **KED TO**

**STRATEGIC GOALS**

The following table depicts the relationship o f the Inspector General program and associated resource requirements to OIG strategic goals.

FY 2014 Office of the Inspector General Budget Resources Linked to Strategic Goals

Program Links to
Strategic

Goals OIG Strategic Goals

Strengthen the

NRC’s

Public Health and

Safety Efforts Enhance the
NRC’s Security

Efforts Increase the NRC’s
Resource Stewardship

Efforts

FY 201 4 Programs ($1 1

, 105 ,000; 58 FTE)

Audits ($ 7,314 ,000; 37 FTE) $3,188,000

18.5 FTE $1,323,000

6.5 FTE $2,803,000

12.0 FTE

Investi gations ($3,7 91 ,000; 21 FTE) $1,475,000

8.0 FTE $631,000

3.5 FTE $1,685,000

9.5 FTE

Numbers may not add due to rounding.



### MANAGEMENT AND OPERA **TIONAL SUPPORT**

OIG’s Management and Operational Support staff comprises senior managers, the general counsel,

an d an administrative support staff. OIG’s senior managers provide the continued vision, strategic direction, and guidance on the conduct and supervision of audits and investigations. Senior management will also ensure accountability on OIG’s established g oals and strategies and

achievement of intended results.

In furtherance of OIG’s mission to promote economy and efficiency and to prevent fraud, waste, and abuse in agency programs and operations, OIG’s general counsel, in coordination with cognizant OIG staff, will conduct analyses of existing and proposed legislation, regulations, directives, and policy issues. These objective analyses will result in timely written commentaries to the agency that prospectively identify and prevent potential problems.

T he administrative support staff will assist OIG programs by providing independent personnel services; information technology and information management support; financial management, policy, and strategic planning support; training coordination; and the pu blication of OIG’s Semiannual Report to Congress in accordance with the requirements in the Inspector General Act.

To carry out the functions of this program in FY 2014, OIG estimates that its costs will be $1,422,000, which includes sa laries and benefits for 8 FTE. The tables below provide a breakdown

of the FY 2014 budget estimates for Management and Operational Support by program and a cost comparison by function.

## OFFICE OF THE INSPECTOR GENERA L

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 144**  U.S. NUCLEAR REGULATORY COMMISSION Allocation of Support Costs to OIG Programs

Management and Operational Support

Allocatio n by Program ($K) FY 20 14 FY 20 14 FY 20 14

FTE Salaries and

Benefits Program Support

Audits 5 850 39

Investigations 3 510 23

Total 8 $1,360 $62

Numbers may not add due to rounding.

Comparative Costs of Management and Operational Support

Summary FY 2 012

Enacted FY 2014 Request 21

Budget Authority by Function ($K)

Salaries and Benefits 1,322 1,360

Program Support 81 62

Total Budget Authority $1,403 $1,422

FTE 8 8

Numbers may not add due to rounding.

21 The OIG Management and Operational Support staff comprises senior managers, a general counse l, and administrative support personnel. To
carry out the function of this program for FY 2014, OIG estimates its costs to be $1.422 million, which includes salaries and benefits for eight

FTE. The associated FTE and salaries and benefits estimate s and p rogram support estimates were allocated in proportion to each program’s

FTE percentage.

## APPENDIX I: BUDGET A UTHORITY BY FUNCTION

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 145**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX I: BUDGET A UTHORITY BY FUNCTION

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 146**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX I: BUDGET A UTHORITY BY FUNCTION

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 147**  U.S. NUCLEAR REGULATORY COMMISSION 

## Appendix I:

**Budge t Authority by Function** 

The U.S. Nuclear Regulatory Commission’s (NRC’s) budget authority is aggregated into the major categories of salaries and benefits, contract support, and travel. Salaries and benefits are estimated based upon full

- time equivalent (FTE), pay rates, pay raise assumptions, and effective pay period for pay raise. Benefits costs include the Government’s contributions for retirement, health benefits, life insurance, Medicare, Social Security, and the Thrift Savings Plan. Contract suppo rt comprises obligations for commercial contracts; interagency agreements; grants; and other nontravel services, such as rent and utility payments. Travel costs primarily comprise expenses for nuclear reactor inspection trips.

Budget Authority by Function
(Dollars in Millions)

FY 201 4

NRC Appropriations FY 2012 Enacted Request Changes from Enacted

Salaries and Expenses (S&E)

Salaries and Benefits 590.3 615.2 24.9

Contract Support 405.1 404.8 (0.3)

Travel 31.9 24.0 (7.8)

Total (S&E) 1,027.2 1,043.9 16.7

Office of the Inspector General (OIG)

Salaries and Benefits 9.5 9.9 0.4

Contract Support 1.2 1.0 (0.2)

Travel 0.2 0.3 0.0

Total (OIG) 10.9 11.1 0.2

Total NRC Appropriation

Salaries and Benefits 599. 7 625.0 25.3

Contract Support 406.3 405.7 (0.5)

Travel 32.1 24.3 (7.8)

Total (NRC) 1,038.1 1,055.0 16.9

Numbers may not add due to rounding.

## APPENDIX I: BUDGET A UTHORITY BY FUNCTION

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 148**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 149**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX II: CORPORA TE SUPPORT

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## APPENDIX II: CORPORA TE SUPPORT

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## CORPORATE SUPPORT APPENDIX

The fiscal year (FY) 2014 Congressional Budget Justif ication identifies the infrastructure and support costs for the U.S. Nuclear Regulatory Commission (NRC) and distributes them to programs as a portion of the total program cost. The allocation methodology is consistent with the methodology used for

prepar ing the agency’s financial statements. The business line tables present the associated infrastructure and support funding included in the programmatic funding to provide the full cost of each

business line.

Corporate Support by Business Line (Dollars in Millions)

FY 201 2

Enacted FY 201 4
Request Delta

FY 2014

– FY 2012

Major Programs $M FTE $M FTE $M FTE

Operating Reactors 185.4 408.3 198.5 424.9 13.1 16.5

New Reactors 84.1 185.2 83.6 178.9 (0.5) (6.4)

Nuclear Reactor Safety $269.4 593.6 $282.0 603.7 $12.6 10.1

Fuel Facili ties 20.4 44.9 22.5 48.2 2.1 3.3

Nuclear Materials

Users 29.8 65.7 28.8 61.6 (1.1) (4.1)

Spent Fuel Storage and Transportation 14.6 32.2 16.2 34.7 1.6 2.6

Decommissioning and

Low

- Level Waste 13.3 29.3 14.0 30.0 0.7 0.8

High

- Level Waste Repository 0.0 0.0 0.0 0.0 0.0 0.0

Nuclear Materials

and Waste Safety $78.1 172.0 $81.5 174.5 $3.4 2.5

Corporate Support $347.5 765.6 $363.6 7 78.3 $16.0 12.6

Numbers may not add due to rounding.

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 152**  U.S. NUCLEAR REGULATORY COMMISSION Corporate Support Budget Authority and Full

- Time Equivalents by Product Line (Dollars in Millions)

FY 2 012

Enacted FY 2014 Request Delta

FY 2014

– FY 2012

Product Line $M FTE $M FTE $M FTE

Acquisitions 0.0 0.0 19.2 74.3 19.2 74.3

Administrative Services 105.7 106.4 122.0 110.3 16.3 3.9

Financ ial Management 46.1 167.1 31.7 101.4 (14.5) (65.7)

Generic HLS 0.9 1.3 0.0 0.0 (0.9) (1.3)

Human Resource Management 29.4 82.8 25.9 76.2 (3.5) (6.6)

Informa tion Management 24.8 82.8 26.7 84.7 1.8 1.9

Information Technology 82.2 122.8 89.7 126.7 7.5 3.9

Outreach 19.8 19.3 5.5 19.2 (14.2) (0.1)

Policy Support 36.7 183.1 36.9 177.4 0.2 (5.8)

Training 0.0 0 .0 4.2 8.2 4.2 8.2

Travel 1.9 0.0 1.7 0.0 (0.2) 0.0

Total $347.5 765.6 $363.6 778.3 $16.0 12.6

Numbers may not add due to rounding.

The agency’s infrastructure and support involve centrally managed activities necessary for the staff and agency programs to achieve goals more efficiently and effectively. The se activities include acquisitions, administrative services, financial management, generic homeland security, human resource management, information management, information technology, outreach, and policy support. The workload, resource changes from the FY 2012 enacted budget, and significant accomplishments for the product lines listed above are described in the following pages. The outputs of the product lines under Corporate Support contribute to the scoring of the NRC Safety and Security Performance Measures and their contribution to the achievement of its Strategic

Outcomes. The above table provides a cost breakdown of infrastructure and support by program.

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 153**  U.S. NUCLEAR REGULATORY COMMISSION 

## ACQUISITIONS

The Acquisitions budget provides resources for the implementation of an ent erprisewide Acquisition System and support for procurement and strategic sourcing activities. This budget includes s upport for all aspects of contract operations and oversight necessary to ensure that the U.S. Nuclear Regulatory Commission (NRC) obtains g oods and services in an effective manner consistent with mission needs, sound business practices, agency guidance, and Federal regulations. In addition, this budget includes support for implementation of an agencywide streamlined process to (1) achieve al ignment among budget formulation, program planning, and execution, (2) eliminate duplication of effort, (3) increase use of enterprise contracts, and (4) improve the agency’s ability to effectively respond to emergent requirements. In fiscal year (FY) 201 4, resources s upport the agency’s acquisition systems, including the legacy Automated Acquisition Management Solution, and the implementation and interfacing of the new Strategic Acquisition System (STAQS) with the core Financial Accounting and Integrated Management Information System (FAIMIS).

**C HANGES**  **F ROM**  **FY 2012**  **E NACTED**  **B UDGET** 

In FY 2014, resources increase to reflect realignment to the new Acquisitions Product Line that will support the implementation of a 21st century strategic acquisition program, i ncluding a process to improve the agency’s procurement activities and related reporting, and an enterprisewide acquisition system that will be integrated with FAIMIS.

**S IGNIFICANT**  **A CCOMPLISHMENTS IN**  **FY 2012** 

The NRC continued to make progress in implementin g a 21st century strategic acquisition program, an integrated financial and acquisition planning, execution, and reporting methodology based on business process improvements through implementation of leading practices and system modernization. The

approac h is based on enterprise spending management and strategic sourcing principles that have a proven track record of success in industry and Federal agencies. In FY 2012, the agency completed its second spending analysis and established four additional Portf olio Councils. In addition, eight enterprisewide contracts were awarded

— three under the Portfolio Council for Education and Training and five under the Portfolio Council for Meetings and Conferences. The agency also conducted a thorough planning assessme nt to determine the most cost

- effective approach to implement an acquisition system that will be integrated with FAIMIS. In June 2012, the agency selected a shared service provider to implement STAQS.

The NRC performed contract management necessary to en sure that it obtains goods and services in an efficient and effective manner consistent with mission needs and sound business practices. Contract management tasks included contract negotiation, award, administration, and closeout; grants award

and adminis tration; and administration of the NRC Purchase Card Program and the Agency Acquisition Certification and Training Program. The agency also provided oversight for commercial contracts; grants; and interagency agreements, including those with U.S. Departme nt of Energy laboratories. During FY 2012, the agency maintained an Acquisition Professional Development Program to support the training and development of entry

- level contracting specialists and initiated implementation of defined strategic sourcing proc esses with expanded use of enterprisewide contracts.

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 154**  U.S. NUCLEAR REGULATORY COMMISSION 

## ADMINISTRATIVE SERVI **CES**

The Administrative Services budget provides resources for rent and utilities for headquarters (HQ), regional, and Technical Training Center space; corporate rulemaking; Informa tion Technology (IT) systems that support security, space planning, and administrative services for the U.S. Nuclear Regulatory Commission (NRC); facilities management, including operation and maintenance services, systems and office furniture, property ma nagement, labor services, custodial services, operation and maintenance services, and building alterations; support services, including fleet management, transit subsidies, supplies, and multimedia services; physical and personnel security services, includ ing security equipment and investigations, drug testing, and guard services; and support and guard services in the regions.

**C HANGES**  **F ROM**  **FY 2012**  **E NACTED**  **B UDGET** 

In FY 2014, resources increase for rent and utilities and for physical and personnel security to comply with mandatory security requirements throughout the agency. The increase is partially offset by decreases associated with the work on the Three White Flint North building and an

agency

- wide effort to reduce overhead resources through increased e fficiency and effectiveness. Additional resource increases are associated with required One White Flint North (OWFN) facility rehabilitation, including the initial phase of the modernization to the heating, ventilation, and air conditioning systems.

**S IGN**  **IFICANT A**  **CCOMPLISHMENTS IN FY**  **2012**

In support of Executive Order 13514, “Federal Leadership in Environmental, Energy, and Economic Performance,” the NRC installed additional upgrades to the energy management system in Two White Flint North (TWFN) and varia ble frequency drives on the chillers in OWFN, replaced two cooling towers in TWFN, and installed new LED lighting in the elevator lobbies of TWFN. All of these projects resulted in a reduction of electrical consumption. The cooling tower replacement also resulted in a reduction in water consumption. In addition, for the third consecutive year, the NRC was recognized for outstanding achievement in recycling by Montgomery County, MD.

On June 29, 2012, the developer, LCOR, received notice of substantial completion and certificate of Use and Occupancy from Montgomery County for the 3WFN base building. This was a significant

milestone. LCOR delivered completed floors in five phases over a 6

- month period.

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 155**  U.S. NUCLEAR REGULATORY COMMISSION 

## FINANCIAL MANAGEMENT

The fiscal year (FY) 2014 Financial Management budget supports the modernization and operation of

the U.S. Nuclear Regulatory Commission’s (NRC’s) financial systems, budget development and execution, agency financial services, accounting and reporting activities, administratio n of a robust internal control program, and strategic and performance planning to achieve the effective and efficient use of the agency’s financial resources.

Resources for financial systems modernization will be used to provide steady

- state operational s upport for the new core financial system, Financial Accounting and Integrated Management Information System (FAIMIS), and transition to the Governmentwide e

- Travel contract.

**C HANGES**  **F ROM**  **FY 2012**  **E NACTED**  **B UDGET** 

In FY 2014, resources decrease due to the de commissioning of two financial systems and to reflect realignment to the new Acquisitions product line that will support the implementation of a 21st century strategic acquisition program, including a process to improve the agency’s procurement activities and related reporting, and an enterprisewide acquisition system that will be integrated with FAIMIS.

**S IGNIFICANT**  **A CCOMPLISHMENTS IN**  **FY 2012** 

The NRC took a number of actions to improve financial management in the agency during FY 2012. Significant accom plishments in this area include progress toward the modernization of financial systems, augmentation of the agency’s contracting and procurement practices, enhancements to the Budget Formulation System (BFS), implementation of new budget execution and fund s utilization processes, receipt of an unqualified opinion on the FY 2012 Financial Statements Audit, and continued improvement in the agency’s business processes.

Sustained emphasis on modern Web

- enabled technology, automated processes, and extensive us er support has improved the financial information available to the NRC. This has allowed for

better

- informed decisionmaking.

On June 15, 2012, the NRC published a final rule in the Federal Register amending the licensing, inspection, and annual fees char ged to its applicants and licensees. The amendments are necessary to implement the Omnibus Budget Reconciliation Act of 1990 (OBRA

- 90), as amended, which requires the NRC to recover, through fees, approximately 90 percent of its budget authority in FY 201 2, not including amounts appropriated for waste incidental to reprocessing and amounts appropriated for generic homeland security activities. Based on the Consolidated Appropriations Act of 2012

, the NRC’s required fee recovery amount for the FY 2012 budg et was $1,038.1 million. After accounting for billing adjustments, the total amount to be billed as fees to licensees was $901 million. The Federal Register

notice can be accessed at http://www.gpo.gov/ fdsys/pkg/FR

- 2012

- 06

- 15/pdf/2012

- 14589.pdf

.

For the ninth consecutive year, an independent auditor has rendered an unqualified opinion on the NRC financial statements. The auditor also rendered an unqualified opinion on the agency’s internal controls, concluding that the NRC had no reportable conditions or significant deficiencies

.

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 156**  U.S. NUCLEAR REGULATORY COMMISSION The NRC continued to make substantial progress in modernizing its financial systems throughout

FY 2012. The NRC enhanced system performance, d ata integrity, business processes, user expertise,

and reporting in FAIMIS. On July 31, 2012, the NRC completed a FAIMIS re

- hosting initiative and
successfully transferred hosting and customer Helpdesk support services for FAIMIS from the

U.S. Department of the Interior’s National Business Center to CGI Federal’s Phoenix Data Center. As

a result of the FAIMIS re

- hosting initiative, the NRC is hosted within a Federal cloud environment and
has direct access to the technical and business expertise of the Mom entum System owners
(Momentum is the commercial

- off

- the

- shelf (COTS) system upon which FAIMIS is based). In FY 2012,
the NRC upgraded its COTS HRMS for time and labor. The new HRMS system not only strengthened
data security, implemented electronic workfl ows, and reduced yearly costs, but is more user

- friendly
and expanded analytical capabilities for better management of the agency’s payroll. The NRC also
added a salary and benefits projection application to its BFS. This BFS enhancement facilitates the
analysis of employee compensation and benefits scenarios for future years and improves budget
forecasting. Sustained emphasis on modern Web

- enabled technology, automated processes, and
extensive user support has improved the financial information availabl e to the NRC, which has allowed

for better

- informed decisionmaking.

Because of continued enhancements made to the agency’s financial management processes, the NRC
has once again achieved operational excellence in FY 2012 and has completed all other FY 2012
external reporting submissions to the U.S. Department of the Treasury and Office of Management and
Budget on time. In addition, for the 11th consecutive time, the NRC received the Certificate of
Excellence in Accountability Reporting award from the Assoc iation of Government Accountants.

NRC staff successfully completed nine business process improvement (BPI) projects and started ten
others, including projects that will reduce agency overhead, as the result of increased efficiency and

effectiveness. In a ddition, reliance on contractors for process improvement has continued to diminish as
the expertise of the agency’s BPI team has continued to increase. The NRC’s BPI team regularly
interacts with the Federal Improvement team to share BPI best practices wi th the 300 members who
represent 33 different Federal improvement organizations. Further, the NRC performed a comprehensive
review of agency overhead functions (e.g., administrative services, human capital, financial management
(including contract managem ent), and information technology) to identify effective, efficient and

cost

- conscious business solutions and to eliminate duplicative processes and functions.



## GENERIC HOMELAND SEC **URITY**

There are no resources in the Generic Homeland Security budget in fi scal year (FY) 2014 because the requirements under Homeland Security Presidential Directive 12 will be fully implemented by FY 2013. Any resources supporting maintenance of security equipment and physical access control systems are budgeted with other rec urring costs in the Administrative Services Product Line.

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 157**  U.S. NUCLEAR REGULATORY COMMISSION 

## HUMAN RESOURCE MANAG **EMENT**

In fiscal year (FY) 2014 resources provide for recruitment and staffing activities; work

- life services, including employee counseling; employee and labor relations; and a gencywide policy development and strategic workforce planning. In addition, resources provide for Permanent Change of Station (PCS) Program activities, including resident inspector moves; oversight of the Open Collaborative Work Environment (differing pro fessional opinions, nonconcurrence process, and open door policy); and Internal Safety Culture Program activities.

**C HANGES FROM**  **FY 2012**  **E NACTED**  **B UDGET** 

In FY 2014, resources decrease as a result of anticipated reduction of program requirements for PCS

ac tivities. In addition, resources for agency Training and Development were realigned to the newly added Training Product Line for FY 2014.

**S IGNIFICANT**  **A CCOMPLISHMENTS IN**  **FY 2012** 

For several years, the U.S. Nuclear Regulatory Commission (NRC) experienced growth resulting from an increased interest in nuclear power. As the NRC moved toward the future, staff levels stabilized, and any growth over the next several years is unlikely. In response, the NRC adjusted its human capital strategies to ensure an app roach that focuses on the mission of protecting public health and safety while remaining mindful of staff needs.

The NRC’s human capital approach supported increasing mandates within a no

- growth budget environment. The NRC’s strategy was to transform work force centers by reducing inefficiencies and overhead and by centralizing and streamlining processes. The NRC viewed work in a context of budgeted priorities and strategically focused on not only replacing employees who depart but also

fine

- tuning availab le skills sets to meet future mission needs while it still emphasized Governmentwide programs, such as hiring of the disabled, employing veterans, enhancing diversity management, and supporting the agency’s Comprehensive Diversity Management Plan. Steps i ncluded individual offices developing detailed plans for efficiencies and consolidation; developing a detailed approach and framework for the staff transition aspects of the plan, including transitioning affected employees to newly defined positions; and d eveloping a communication plan that included employee meetings, frequently asked questions, and career counseling. Additionally, the NRC conducted a limited buyout early in FY 2012.

Over the past 18 months, the NRC used a variety of methods and measures to regulate hiring. These methods refined the hiring process and helped control the use of full

- time equivalents (FTE). During the first three quarters of FY 2012, these hiring controls resulted in the attainment of FTE targets that

allowed the NRC to e xpand entry

- level hiring for engineers and scientists. The NRC worked to institutionalize a workforce planning process using a mission

- critical occupation framework that ensured that the agency has the appropriate number of staff with the right skills, co mpetencies, and experience to ensure successful job performance and realization of organizational objectives. The NRC continued to model a recruitment program that attracted a diverse group of candidates and continued to recruit externally, as appropriate

. T he NRC developed and implemented a recruitment program that would attract a diverse group of candidates. The agency conti nued to recruit externally for targeted critical

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2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 158**  U.S. NUCLEAR REGULATORY COMMISSION skills, while also focusing on ensuring that the current workforce was engaged an d motivated to maximize efficiency of the existing staff.

The NRC also adapted its training and development programs to meet the changing needs of the agency staff and changes in technology to ensure that critical skills and competencies were available

fo r the future. The NRC continued to focus on a competency

- based approach to training to ensure a

line

- of

- sight alignment between employees’ learning experiences and the agency’s mission. Training and development programs were designed to shorten the time to competency. As the staff matured, the NRC’s learning and development programs continued to evolve to support the needs of the next generation of regulatory experts. For instance, the NRC continued the successful development of new

reactor simulators a nd technical training courses to coincide with the building of a new generation of nuclear reactors. The agency also completed and expanded the pilot use of paperless technical subject matter classroom training using tablet

- based training and has implemen ted the use of selected training courses through new enterprisewide contracts. By using these approaches, the NRC ensured effectiveness of training with the added benefits of a reduction in costs and schedule convenience for

the learner.

The NRC recogniz es the need to capture and maintain the knowledge and skills of senior staff and management as they become eligible for retirement. The agency maintains a knowledge management program to support effective approaches to knowledge collection, transfer, and use. This program includes strategic hiring an d training to fill knowledge gaps, establishing an IT infrastructure to facilitate knowledge transfer, and fostering a culture of knowledge transfer and retention.

The NRC continued to be one of the best pla ces to work in the Federal Government according to Federal Human Capital Survey results. The agency excelled in areas, such as matching employees’ skills to the agency’s mission, strategic management, effective leadership, performance

- based advancements, training and development, support for diversity, and work

- life balance. The NRC realized that the success of the agency depends on the talent and commitment of its employees and strived to create a workplace rich in work

- life balance where employees were engaged in meaningful and challenging work.

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 159**  U.S. NUCLEAR REGULATORY COMMISSION 

## INFORMATION MANAGEME **NT**

The Information Management (IM) program develops and implements the framework and technologies for managing and protecting information to ensure it is available to support a stable and predictable regulatory environment. In fiscal year (FY) 2014, IM resources will provide document and records management services, such as the operation of the Public Document Room; electronic document intake, profiling, indexing, and retrieval; moderniza tion of internal and external Web sites; and compliance with the Freedom of Information Act (FOIA) and the Privacy Act.

Information security activities support secure communications and information security, policy and procedures, maintenance/services an d supplies, classification management, and management of Sensitive Unclassified Nonsafeguards Information. FY 2014 resources will fund implementation of a new Governmentwide policy on Controlled Unclassified Information and Universal Content Management.

Central management of the U.S. Nuclear Regulatory Commission’s (NRC’s) subscriptions to technical journals and databases, online codes and standards, and electronic newsletters journals supports the scientific and research work of the agency staff and the regulatory mission of the agency. Electronic newsletters are an integral component of communication within the energy industry, and these subscriptions ensure that the Commission, management, and staff maintain currency with industry developments, politi cal decisions, and stakeholder concerns. Subscriptions to industry codes and standards are necessary to support the staff’s determinations of compliance with Commission regulations. The codes and standards are cited in the regulations, and staff members require access to cited codes and standards to conduct the necessary inspections and reviews to determine compliance with NRC requirements.

**C HANGES FROM**  **FY 2012**  **E NACTED**  **B UDGET** 

In FY 2014, resources increase to support Universal Content Management, whic h will allow the NRC Legacy Systems to share data in a more streamlined manor. The increase is partially offset by decreases to the Agencywide Documents Access and Management System (ADAMS) and Document Records Management.

**S IGNIFICANT**  **A CCOMPLISHMENTS**  **IN FY**  **2012**

Effective IM ensures that needed information is available to the staff to help support planned regulatory programs and policies. It also allowed the NRC to meet its openness objective related to informing and involving stakeholders in the regul atory process by providing timely access to accurate agency

information. FY 2012 accomplishments in this area included (1) improvement of the efficiency of the agency’s FOIA program through the use of e

- mail de

- duplication software, (2) modernization of the NRC’s public document publishing technologies to ensure the timely and accurate dissemination of information to the agency’s public Web site, (3) deployment of Internet Protocol Version 6 to the agency’s public Web site to ensure worldwide compatibilit y, (4) consolidation of the agency’s Web publishing services to ensure effective and timely delivery of information to the staff and stakeholders, (5) c ompletion of the migration of the agency’s legacy forms management system to a new Portable

Document For mat (PDF)

- based system, (6) continuation of personal interactions with stakeholders through the Public Document Room where stakeholders can work directly with a person to retrieve

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 160**  U.S. NUCLEAR REGULATORY COMMISSION information, and (7) dissemination of key information through the issuance o f timely public meeting notices, FOIA responses, and documents made publicly available in ADAMS.



## INFORMATION TECHNOLO **GY**

In fiscal year (FY) 2014, resources will fund the U.S. Nuclear Regulatory Commission’s (NRC’s) information technology (IT) infrastruc ture, enduser support services for IT applications, database and application support for agency systems, and configuration management and IT project management support. Funded programs include Capital Planning and Investment Control (CPIC) processes, IT s trategic management and enterprise architecture planning, and agencywide IT procurement management.

The budget will fund the following ongoing activities:

• IT infrastructure enduser support services, telecommunications services, network and production operations, and central management of all desktop, laptop, and network resources and services at headquarters (HQ), regional offices, and resident inspector sites. Resources support the Network Operations Center, Customer Support Center, the Consolidated Testing Facility, and seat management and desktop support for more than 5,800 desktop workstations and the supporting infrastructure. Also included are the managed public key infrastructure and production operations support, including systems administrati on and data center operations.

• Identification of the best technologies to fill gaps associated with strategic goals, such as “Working from Anywhere” and “Working with Anyone,” and the identification, testing, and piloting of new technology needed to suppo rt specific agency business needs. Recent examples include technologies to support the NRC’s Open Government flagship initiative, such as enhancing stakeholder engagement using innovative and cost

- effective collaboration technologies, defining common stra tegies to support mobility and universal access, consolidating systems into enterprise solutions, and increasing the number of devices that can access agency systems through a Bring Your Own Device program.

• The NRC’s Legacy System modernization and transf ormation program. Resources will be used to support an effective CPIC program for enterprisewide configuration management and maintenance and operational support of approximately 120 application systems. In addition, resources will support project manage ment, business analysis, and applications development

for office

- specific and enterprisewide applications.

• Compliance with the Federal Information Security Management Act, IT security policy, standards, training, cyber situational awareness and response, and security authorization of all NRC IT systems. Resources support the use of distinctive IT security tools and expertise to provide a robust cyber program for the protection of NRC cyber assets. Efforts support infrastructure operations, including syst em authorization activities, penetration testing and system scanning, development of policies and standards, and development and delivery of computer security training and awareness. Also employed are automated forensic software and hardware products

used in responding to security incidents. The cyber

- security experts also review new technologies and work with system owners to ensure those technologies are implemented in a way that is safe and meets Federally mandated and NRC

- defined security requirements

.

• Cyber Situational Awareness Program for penetration testing, vulnerability and threat assessments, real

- time monitoring, visibility and reporting, and computer security incident response, along with providing insight into the security impact that new tec hnologies will have on the NRC infrastructure and enabling continuous cyber

- security reporting.

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 161**  U.S. NUCLEAR REGULATORY COMMISSION

• Reduction of the NRC’s data center footprint. Efforts include leveraging a combination of strategies to lower energy consumption and operation costs through i ncreased use of cloud computing alternatives

, managing the NRC’s application system modernization initiatives

, strengthening server and desktop virtualization

, and setting other green IT technologies into operation across the enterprise. As a part of the NRC HQ building, the agency will build an

energy

- efficient modern data center that uses green technologies in space, design, power, heating, ventilation, and cooling to support energy

- efficient 24/7 data center operations.

• Outsourcing d ata c enter services , which is a major step to achieving cloud computing initiatives

at the NRC.

• Enterpr isewide e

- mail encryption will ensure comp liance with the Executive Order mandating all

Government a genc ies encrypt all out

- going email.

**C HANGES**  **F ROM**  **FY 2012**  **E NACTED**  **B UDG**  **ET**

In FY 2014, resources increase because of infrastructure costs, enhancement of the IT security program, modernization of the NRC Legacy Systems, and support of the centralization of the IT infrastructure and application support activities. These incre ases are offset by reductions and reinvestments that reflect reduced maintenance needs of older Legacy systems, delaying system modernization where possible, reducing support levels for some systems, and migration to shared service platforms (therefore red ucing data center requirements).

**S IGNIFICANT**  **A CCOMPLISHMENTS IN**  **FY 2012** 

Effective IT infrastructure ensured that the NRC had a reliable and responsive foundation of technology to support business needs and agency operations to advance the agency’s missio n. Several objectives were achieved in this area. The agency migrated its Internet service to a Managed Trusted Internet Protocol Service through the General Services Administration Networx contract. Other key successes

included IT infrastructure move s upport in one of the agency’s regional offices and significant preparation for a planned move to the agency’s new HQ office building. The agency enhanced services available to its mobile workforce by making WiFi access available to mobile desktop users an d successfully piloted a Bring Your Own Device solution for e

- mail and calendaring functions.

The NRC developed a plan to map strategic programs and business objectives to the agency security architecture to provide a prioritized blueprint for secure IT capability. The NRC implemented an Automated Plan of Action and Milestone process that uses an automated tool to improve quality assurance and timely reporting by system owners.

Another primary focus area was service, a key component of operational ex cellence across the agency. In a continuing effort to evaluate the effectiveness of its information technology/information management (IT/IM) services, the NRC solicited feedback from employees on its IT/IM program by adding questions on this topic to the employee viewpoint survey conducted in FY 2011. The agency is also conducting an independent validation and verification of its IT/IM services to assess the costs of existing services and to establish clear service expectations. The NRC also conducted a facilitated process to update its IT/IM Strategic Plan in coordination with ongoing efforts to update the NRC Strategic Plan. The IT/IM Roadmap also contributed to planning and budget formulation by providing a view of current IT/IM capabilities and agen cy transition plans through 2013. The procurement to

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 162**  U.S. NUCLEAR REGULATORY COMMISSION establish a new enterprisewide contract for maintenance, operation, and modernization of agency IT systems was initiated in FY 2011.

Maintenance, Operation, and Modernization (MOM) Functional Area 2 (F A2) Maintenance and Operations of Legacy Systems contract task orders were awarded in FY 2012 to procure continuous maintenance and operational IT support services for current NRC automated computer systems. The

MOM FA2 contract included 24 task orders an d provided maintenance and operations support to 11 NRC program offices.



## OUTREACH

In fiscal year (FY) 2014, resources provide for outreach activities, which include maintaining the civil rights complaints process; promoting affirmative employment, diver sity, and inclusion; ensuring compliance with small business laws, conducting business development assistance, and providing the maximum practicable prime and subcontract opportunities for small businesses; and continuing efforts to implement the U.S. Nucl ear Regulatory Commission’s (NRC’s) Outreach and Compliance Coordination Program, in accordance with applicable Federal civil rights statutes and NRC regulations.

Resources also provide for grants to Minority Serving Institutions (MSI) to assist them in producing a skilled diverse Science, Technology, Engineering, and Mathematics (STEM) workforce.

Resources also support hosting of the annual Regulatory Information Conference (RIC) with the nuclear industry to discuss safety and regulatory issues of mut ual interest. The objective of the RIC is to provide a communication forum for senior NRC and industry management on current and future safety initiatives and regulatory issues.

**C HANGES**  **F ROM**  **FY 2012**  **E NACTED**  **B UDGET** 

In FY 2014, resources decrease because of the elimination of the Integrated University Program and education Grants Program.

**S IGNIFICANT**  **A CCOMPLISHMENTS IN**  **FY 2012** 

The NRC’s Small Business Program conducted more than 100 acquisition compliance and subcontracting plan compliance reviews totali ng over $300 million in products and services, which led to the agency’s highest level of small business contract performance to date. As a result, the NRC is currently one of only two Federal agencies exceeding all of its small business prime contract go als. The NRC held a Small Business Seminar and Matchmaking Event in FY 2012, which represents the first NRC small business event that included collaboration with the Montgomery County Chamber of Commerce, Webstreamed content from agency headquarters, and senior

- level participation from the Executive Director of Operations and the Commission.

The NRC received accolades from private and public sector entities, including the White House Initiative on Historically Black Colleges and Universities (HBCU), for “Best Practices” related to its compliance and MSI programs. The NRC conducted significant preaward compliance reviews and postaward monitoring; provided outreach, technical assistance, coordination, and training to ensure civil

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 163**  U.S. NUCLEAR REGULATORY COMMISSION rights compliance; and mo nitored grantees (through desk and onsite audits) to ensure funding objectives and compliance requirements were met.

NRC cosponsored numerous MSI activities, including experiential learning opportunities and STEM summer camps and symposiums for K

- 12 stud ents. The agency participated in major conferences and symposiums that were attended by over 1,000 participants related to (1) guidance for educators administering K

- 12 summer camps and symposiums, (2) careers in the nuclear industry, (3) emergency manag ement preparedness, (4) environmental justice, (5) the transition of veterans into STEM and civilian occupations, (6) contracts and grants skill building, (7) MSI Capacity Building and Technical Assistance Conference, and (8) the White House Initiatives on HBCU. These efforts resulted in the designation of the NRC as a “Top Supporter” of HBCU engineering programs for the fifth consecutive year.

The agency issued its annual No FEAR Act training, which achieved an employee completion rate of

99 percent. Th e agency processed 30 informal and 15 formal Equal Employment Opportunity complaints, completed investigations, issued final agency decisions, and conducted mediations. The agency held numerous informational “lunch and learn” sessions and a Diversity Day Program.

In FY 2012, the agency awarded 75 education

- related grants, which included 25 grants for curriculum development, 15 grants for faculty development, 9 grants for scholarships, 13 grants for fellowships,

and 13 grants to Trade Schools and Communi ty Colleges for scholarships. These grants assist in expanding the workforce in nuclear safety and nuclear

- related disciplines and in developing the

next

- generation nuclear workforce.



## POLICY SUPPORT

Resources in fiscal year (FY) 2014 will provide for additional policy and adjudicatory support to the Commission. Specifically, the budget provides resources for the following:

• U.S. Nuclear Regulatory Commission (NRC) policy formulation and guidance

• legal advice and adjudicatory review to the Commission

• independent evaluations of NRC programs and implementation of the Commission’s policy

directives

• interaction with the Executive Branch on matters of international nuclear safety and security issues and developments

• work with the International Atomic Ener gy Agency, the Nuclear Energy Agency, and other international partners

• advice and assistance to the Commission on congressional and protocol issues and on public affairs activities leading to openness and increased public confidence

• management and oversi ght of agency programs

**C HANGES**  **F ROM**  **FY 2012**  **E NACTED**  **B UDGET** 

In FY 2014, resources decrease is due to a change in strategy for capturing the FTE resources for the Commission Adjudicatory Technical Support Program

, and is a result of an agencywide effort t o reduce overhead resources through increased efficiency and effectiveness.

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 164**  U.S. NUCLEAR REGULATORY COMMISSION 

### CORPORATE SUPPORT OU **TPUT MEASURES**

**A CQUISITION** 

Percent of Eligible Service Contracting Dollars (Contracts over $25,000) That Use Performance

- Based Contracting Techniques during the Fiscal Year

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Not less than 65% Not less than 65% Not less than 65% Not less than 65% TBD Not less than 65%

Actual 89% 79% 69% 60.50%

OMB

- Directed Acquisition Reform Initiati ve Measure

— Percent of Required Synopses for Acquisitions Posted on the

Governmentwide Point

- of

- Entry Web Site (www.FedBizOpps.gov) during the Fiscal Year*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 100% of all required

synopses. 100% o f all required

synopses. 100% of all required

synopses. 100% of all required

synopses. TBD 100% of all required

synopses.

Actual 100% 100% 100% 100%

*Percent of required synopses for acquisitions posted on the Governmentwide point

- of

- entry Web site ( www.FedBizOpps.gov ) during the fiscal

year. Synopses for acquisitions are those valued at over $25,000 for which widespread notice is required, including all associated solicitations except for
acquisitions that ar e covered by an exemption in the Federal Acquisition Regulations.

**F INANCIAL**  **M ANAGEMENT** 

Meets Statutory Fee Collection Requirement

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target Achieve
approximately 100%

actual collections
when compared

w ith projected

collections.
Maintain past due

accounts receivable

at 1% or less of
annual billings for
the fiscal year. Achieve
approximately 100%

actual collections
when compared
with projected

collections.
Maintain past due

accounts receivable

at 1% or less of
annual billings for
the fiscal year. Achieve
approximately 100%

actual collections
when compared
with projected

collections.
Maintain past due

accounts receivable

at 1% or less of
annual billings for
the fiscal year. Achieve
approximately

100% act ual

collections when
compared with
projected

collections.
Maintain past due

accounts receivable

at 1% or less of
annual billings for
the fiscal year. TBD Achieve approximately

100% collections when
compared with
projected

collections. Maintain
past due a ccounts

receivable at 1% or
less of annual billings
for the fiscal year.

Actual 98% collected.
Maintained past due

amounts receivable

at less than 1% of
annual billings. Target met. 99.5% collected.

Past due amounts

receivable were

1.34% of annual

bill ings. 99.3% collected.

Past due amounts

receivable were

1.0% of annual
billings.

Percentage of Non

- Salary Payments Made Electronically and Accurately within Established Schedule

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 98% 98% 98% 98% TBD 98%

Actual 96% 98% 98% 98%

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 165**  U.S. NUCLEAR REGULATORY COMMISSION **H UMAN**  **R ESOURCE**  **M ANAGEMENT** 

Percentage of Professional Hires Retained for a Minimum of 3 Years after Initial Employment

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target 85% 85% 85% 85% TBD 85%

A ctual 87% 89% 91% 86.50%

**I NFORMATION**  **M ANAGEMENT** 

Information Dissemination Timeliness

— Meets Agency Targets for Key Information Dissemination Channels, including Public Meeting Notices and

Freedom of Information Act*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in

FY 2009 Timeliness targets

met for FOIA
responses, public
meeting notices, and

NRC documents
made publicly available (1) Meet 3 out of 4

targets. Meet 3 out of 4

targets. TBD Meet 3 out of 4

targets.

Actual 86% 4 o ut of 4 4 out of 4 3 out of 4

*Targets include the following: (1) Percent of the time NRC responds to FOIA requests within 20 working days (75%), (2) percentage of category 1,2, and 3
meetings on regulatory issues for which the NRC posted a meeting not ice on the public meeting notice Web site at least 10 days in advance of the meeting
(90%), (3) percent of nonsensitive, unclassified regulatory documents generated by the NRC and sent to the agency’s Document Processing Center that are
released to the pu blic by the sixth working day after the date of the document (90%), (4) percent of nonsensitive, unclassified regulatory documents
received by the NRC that are released to the public by the sixth working day after the document is added to the Agencywide D ocuments Access and Management System main library (90%).

Public Score for Information Access

— The NRC’s Score on the Annual American Customer Satisfaction Index for Federal Web Sites

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New mea sure in

FY 2013 TBD; target to be

baselined in

FY 2012. 73

Actual

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 166**  U.S. NUCLEAR REGULATORY COMMISSION **I NFORMATION**  **T ECHNOLOGY** 

Percent of Time That Key Information Technology (IT) Infrastructure Services Are Available

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in

FY 2009 99.50% 99.50%* 99.50% TBD Measure replaced

with use of NRC
Badge for sign

- on

measure.

Actual 100% 99.90% 99.90% 99.7%

This measure is calculated based on statistics gathered each month from a network

- monitoring tool that consta ntly monitors the availability status of key
infrastructure components. It shows the amount of time, in minutes, that all (any) infrastructure components were unavailable. That information is then
used to calculate the overall availability percentage bas ed on the number of working days in each month (the total hours of operation) and the number of
people supported by each component.

*Target previously reported as 100% in error.

IT Security Risk Management

— Percent of Operational Applications and General Support Systems That Have Met the NRC’s Annual Risk Management Activities Requirements in Accordance with Guidance from the Chief Information Officer (CIO)*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in

FY 2010. 95% 95% TB D Measure to be
replaced with
Cyber Security

Program

Effectiveness

measure.

Actual 96% 97% 96%

*This measure replaced the output measure "Systems Certification and Accreditation

— Percent of Major Applications and General Support That Have Been
Certif ied and Accredited" from the FY 2011 budget. The measure includes certification and accreditation along with other risk

- management activities.

IT Investment Management

— Average Score on a Scale of 1 to 10 for All NRC IT Investments on the OMB IT D ashboard

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in

FY 2010. >7.5 80% of agency

investments are green at the end of
the fiscal year.* TBD > 7.5

Actual 6.38 7.53 Green

*The OMB Exhibit 300 Score measure has been repl aced by the IT Dashboard Score. The measure target was changed in FY 2012 to reflect OMB’s revised
approach to IT Dashboard scoring.

Use of NRC Badge for Sign

- On

— Percent/Number of Federal Information Security Management Act (FISMA)

- Reportable, NR C

- Hosted Applications That Use the NRC Badge (Personal Identity Verification Card) for Sign

- On*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in

FY 2013. TBD; measure to be

baselined in FY 2012. Preliminary target to

be es tablished.

Actual

*This measure replaces the output measure "Percent of the Time That Key IT Infrastructure Services Are Available" from the FY 2012 budget.

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 167**  U.S. NUCLEAR REGULATORY COMMISSION Cyber Security Program Effectiveness

— Rating of the NRC’s Cyber Security Progra m Effectiveness Based on the Annual Inspector General FISMA Audit*

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Target New measure in

FY 2013. Satisfactory in all

areas.

Actual

*This measure replaces the output measure “IT Security Risk Management

— Percent of Operational Applications and General Support Systems That Have
Met the NRC’s Annual Risk Management Activities Requirements in accordance with Guidance from the CIO" from the FY 2011 budget.

## APPENDIX II: CORPORA TE SUPPORT

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 168**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX III: REIMBU RSABLE WORK

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 169**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX III: REIMBU RSABLE WORK

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 170**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX III: REIMBU RSABLE WORK

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 171**  U.S. NUCLEAR REGULATORY COMMISSION Summary of Reimbursable Work (New Budget Authority in Thousands of Dollars)

FY 2012 FY 2014

(Actual) (Projection)

TECHNICAL ASSISTANCE TO OTHER FEDERAL AGENCIES

Employee Detail to Domestic Nuclear Detection Office (DHS) 197 174

Employee Detail to National Counterterrori sm Center (NCTC) 0 162

Fuel Cycle Research and Development (DOE) 500 500

Gerald R. Ford Class Aircraft Carrier Safety Review (DOE) 1,000 0

Joint Funding of ICRP Activities (EPA) 25 25

Navy Reviews (U.S. Navy) 12 12

Next Generation Nuclear Plant (NGNP) Cooperative Activities (DOE) 0 0

Review/Approval of Selected Foreign Certificates for Packages (Casks) (DOE) 0 100

Review of Alternate Transportation Security Protocol (DOE) 0 0

Route Reviews (DOE) 0 0

Waste Actions for Hanford (DOE) 0 100

Waste Revi ew for West Valley (DOE) 120 0

INTERNATIONAL ASSISTANCE

International Invitational Travel (IAEA & various foreign governments and international organizations) 156 200

Invitational Travel

- American Institute in Taiwan 14 20

COOPERATIVE RESEARCH

En vironmentally Assisted Fatigue Effects (EPRI) 200 0

Sandia Fuels Project

- Phase 2 (EPRI) 250 0

Foreign Cooperative Research Agreements (Multiple) 2,246 2,100

SECURITY RELATED ACTIVITIES

Criminal History Program (Licensees) 2,578 2,500

Information A ccess Authorization Program (Licensees) 903 880

Material Access Authorization Program (Licensees) 1 0

TOTALS $8,202 $6,773

*Does not include classified reimbursable work agree ments

## APPENDIX III: REIMBU RSABLE WORK

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 172**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX IV: ESTIMAT ED FEE RECOVERY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 173**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX IV: ESTIMAT ED FEE RECOVERY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 174**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX IV: ESTIMAT ED FEE RECOVERY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 175**  U.S. NUCLEAR REGULATORY COMMISSION 1 Published in the Federal Register (76 FR 36780; June 15, 2012)
2 Includes both Salaries and Expenses and Inspector General Appropriations

3 Non Fee Items 4 Includes estimated unpaid invoices and payments o f prior year invoices. 5 Prior year Waste Incidental to Reprocessing (WIR) appropriations totaling $2.6 million were allocated in
FY 2011 and FY 2012. No significant prior year WIR appropriations are expected to be available in FY 2014. Agency Fee Recovery (Dollars in Millions)

FY 2012 FY 2014

Final Fee Rule 1 Projection

Total Appropriation 2 1 ,038.1 1,055.0

Less Non

- Fee Items 3 (27.5) (20.9)

Base 1,010.6 1,034.1

Fee Recovery Rate

- 90% of Base 909.5 930.7

Billing & Carryover Adjustments 4 (8.5) (0.2)

Amount to be Recovered through Fees $901.0 $930.5

Estima ted Part 170 Fees $371.4 $375.0

Percent of total recovered amount 41.2% 40.3%

Estimated Part 171 Annual Fees $529.6 $555.5

Percent of total recovered amount 58.8% 59.7%

Total Net Appropriated $128.6 $124.3

Numbers may not add due to rounding.

Note: As a fee based agency, reduction to agency base budget yields a 10% reduction in net budget
auhtority for every dollar of those reductions

Waste Incidental to Reprocessing (WIR) 3,5 0.8 1.4

Generic Homeland Security 3 2 6.7 19.5

Total Non

- Fee Items $27.5 $20.9

## APPENDIX IV: ESTIMAT ED FEE RECOVERY

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 176**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX II CORPORATE SUPPORT

## APPENDIX V: REPORT O N DRUG TESTING

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 178**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX V: REPORT O N DRUG TESTING

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 179**  U.S. NUCLEAR REGULATORY COMMISSION 

## Appendix V: Report to Congress on Drug Testing

Congress and the U.S. Department of Health and Human Services (HHS) initially approved the

U.S. Nuclear Regulatory Commission’s (NRC’s) Drug Testing Program in August 1988, and the agency subsequently updated the program in November 1997. The program was revised again and received approval from HHS on August 23, 2007. The NRC’s drug testing requirements for the nuclear industry (licensees), as imposed by agency regulations, are separate and distinct from thi s program and are not covered by this report. The NRC’s Drug Testing Program under Executive Order (E.O.) 12564 includes random, applicant, voluntary, followup, reasonable suspicion, and accident

- related drug

t esting. Testing was initiated for nonbargain ing unit employees in November 1988, and for bargaining unit employees in December 1990 after an agreement was negotiated with the National Treasury Employees Union. On August 25, 2008, the NRC’s testing program was expanded to include all NRC sensitive p ositions as testing designated; therefore, all employees became subject to random drug testing.

During fiscal year 2012, the NRC conducted approximately 2,093 tests of all types between

October 1, 2011, and September 30, 2012. There were two positive d rug test results (both for marijuana). These individuals completed the required outpatient treatment programs. One employee has since retired while the second continues to be subject to followup drug testing.

The NRC also completed internal quality co ntrol reviews during the past year to ensure that the agency’s program continues to be administered in a fair, confidential, and effective manner.

The NRC’s drug testing program is based on the principles and guidance according to E.O. 12564,

Public Law 1 00

- 71, HHS guidelines, and Commission decisions.

## APPENDIX V: REPORT O N DRUG TESTING

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 180**  U.S. NUCLEAR REGULATORY COMMISSION

## APPENDIX V: REPORT O N DRUG TESTING

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 181**  U.S. NUCLEAR REGULATORY COMMISSION

## ACRONYM LIST

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 182**  U.S. NUCLEAR REGULATORY COMMISSION

## ACRONYM LIST

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 183**  U.S. NUCLEAR REGULATORY COMMISSION 

## Acronym List

3WFN . Three White Flint North

ABWR. An advanced boiling

- water reactor is a Generation III boiling

- water reactor.

ACP. American Centrifuge Plant is a future USEC plant to be b uilt in Oak Ridge, TN.

ADAMS. The Agencywide Documents Access and Management System is the U.S. Nuclear Regulatory Commission’s (NRC’s) official recordkeeping system that provides access to vast “libraries” or collections of documents related to the agen cy’s regulatory activities.

ADR. The Alternative Dispute Resolution Program supports the NRC’s commitment to promote and

maintain a discrimination

- free work environment.

AEA. The Atomic Energy Act refers to a number of different laws on the governance of nuclear power and nuclear weapons production.

AIT: Augmented inspection team

ALARA. As low as is reasonably achievable

ASLB. Atomic Safety and Licensing Board

ASME. The American Society of Mechanical Engineers is a not

- for

- profit professional or ganization that enables collaboration, knowledge sharing, and skill development across all engineering disciplines.

ASP. Accident Sequence Precursor

BFS. Budget Formulation System

BWR . A boiling

- water reactor is a type of nuclear reactor. It is the second most common type of nuclear reactor after the pressurized

- water reactor.

C&A. Certification and Accreditation is a process that ensures that Information Technology (IT) systems and major applications adhere to formal and established security req uirements that are well documented and authorized. The Federal Information Security Management Act of 2002 requires C&A.

CAL. Confirmatory action letter

CCDP. Conditional core damage probability

CE. Current estimates are fact

- of

- life changes in th e budget between the President’s Budget and the enacted budget.

CFR. The Code of Federal Regulations is the codification of the general and permanent rules and regulations published in the Federal Register by the executive departments and agencies of th e Federal Government of the United States.

## ACRONYM LIST

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 184**  U.S. NUCLEAR REGULATORY COMMISSION CoCs. A certificate of compliance for a cask model is issued by the NRC for findings that meet the requirements in Title 10 of the Code of Federal Regulations (10 CFR) 72.236, “Specific Requirements for Spent Fu el Storage Cask Approval and Fabrication.”

COL. A combined operating license is the NRC’s simultaneous issuance of a nuclear power plant construction permit and operating license.

COTS. Commercial

- off

- the

- shelf (software)

CPIC. Capital Planning and Investment Control compares actual results with expected results after an IT investment has been fully implemented. This is done to assess the IT investment’s impact on program performance, to identify any changes or modifications that may be needed, and to revise the IT investment management process based on lessons learned through its application.

DBT. Design

- basis threats characterize the adversary against which nuclear plant owners must design physical protection systems and response strategies.

DC. Design certification is the NRC approval of a nuclear power plant design, independent of an application to construct or operate a plant.

DEIS. A draft environmental impact statement is a draft of the document required by the National

Environmental Poli cy Act for Federal Government agency actions “significantly affecting” the quality of the human environment. A decisionmaking tool, an EIS describes the positive and negative environmental effects of proposed agency action and cites alternative actions.

DOE. U.S. Department of Energy

DTTS. The Defense Transportation Tracking System is a satellite

- enabled computerized tracking system that supplies information to provide emergency response assistance.

ECM. Enterprise content management includes process es and technologies that support the full lifecycle of the NRC’s information.

EIS. An environmental impact statement is a document that the National Environmental Policy Act requires for Federal Government agency actions “significantly affecting the qu ality of the human environment.” A decisionmaking tool, an EIS describes the positive and negative environmental effects of proposed agency action and cites alternative actions.

EPA. Environmental Protection Agency

EPR. Evolutionary Power Reactor

ESB WR. An economic simplified boiling

- water reactor is a 4,500

- megawatt

- thermal (MWt) reactor that uses natural circulation for normal operation and has passive safety features

.

ESP. An early site permit is the NRC approval of one or more sites for a nucle ar power facility, independent of an application for a construction permit or combined license.

## ACRONYM LIST

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 185**  U.S. NUCLEAR REGULATORY COMMISSION EST. Extended storage and transportation refers to the extended storage and transportation of spent nuclear fuel and high

- level waste.

FAIMIS. The Financial Accounting and Integrated Management Information System is part of the NRC’s financial systems upgrade.

FCOP. Fuel cycle oversight process

FEIS. Final environmental impact statement

FEMA. Federal Emergency Management Agency

FERC . Federal Energy R egulatory Commission

FFD. The Fitness

- for

- Duty Program is required for all NRC licensees by 10 CFR Part 26, Subpart K, “FFD Programs for Construction.” FFD includes drug testing, behavioral observation, and fitness monitoring programs.

FISMA. The F ederal Information Security Management Act is a U.S. Federal law enacted in 2002 as

Title III of the E

- Government Act of 2002. The act requires each Federal agency to develop, document, and implement an agencywide program to provide information security f or the information and information systems that support the operations and assets of the agency, including those that another agency, contractor, or other source provides or manages.

FOF. Force

- on

- Force exercises assess a nuclear plant’s physical protect ion to defend against the

so

- called design

- basis threat.

FOIA. The Freedom of Information Act is a law ensuring public access to U.S. Government records. Upon written request, agencies of the U.S. Government are required to disclose those records unless they can be lawfully withheld from disclosure under one of nine specific exemptions in the FOIA.

FTE. Full

- time equivalent is a way to measure a worker’s involvement in a project. An FTE of 1.0 means that the person is equivalent to a full

- time worker , whereas an FTE of 0.5 signals that the worker is only half time.

FY. Fiscal year is a period used for calculating annual financial statements in businesses and other organizations.

GE

- Hitachi. GE

- Hitachi is a joint venture between General Electric, H itachi, and Toshiba. GE

- Hitachi operates the fuel fabrication facility in Wilmington, NC.

GWd/MTU. The measurement of actual energy released per mass of initial fuel is gigawatt days/metric ton of heavy metal (GWd/MTHM), or similar unit (uranium), use d in the calculation of burnup or fuel

utilization.

HAB. Hostile

- action

- based emergency preparedness drills are required by NRC regulations. All NRC commercial nuclear power plant licensees are required to participate in emergency preparedness

exercises . These exercises are evaluated to ensure the skills of emergency responders are maintained and to identify and correct any weaknesses.

## ACRONYM LIST

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 186**  U.S. NUCLEAR REGULATORY COMMISSION HCU. Historically Black Colleges and Universities

HLS. Homeland security is a concerted national effort to prevent terrorist attacks within the United States, reduce America’s vulnerability to terrorism, and minimize the damage and recover from attacks

that do occur.

HLW. High

- level waste is the highly radioactive material produced as a byproduct of the reactions tha t occur inside nuclear reactors. High

- level wastes are either in the form of spent reactor fuel when it is accepted for disposal or waste materials remaining after spent fuel is reprocessed.

HOC. Headquarters Operations Center

HQ. Headquarters refers to the NRC headquarters campus in the Washington, DC, metropolitan area.

I&C. Instrumentation and control systems use digital devices in safety systems in nuclear facilities. The deployment of digital technology in nuclear facilities has the potential t o improve safety and operational performance.

IAEA. International Atomic Energy Agency

IM. Information Management is an NRC

- wide initiative to collect and manage agency information; to improve the productivity, effectiveness and efficiency of agency pr ograms; and to enhance the availability and usefulness of information to users inside and outside the agency.

IMPEP. The Integrated Materials Performance Evaluation Program is a program that the NRC designed and piloted as a review process for Agreement State and NRC regional radioactive materials

programs.

INIS. International Isotopes

iPWR. Integral pressurized

- water reactor

ISFSI. An independent spent fuel storage installation is defined as a complex designed and

constructed for the interim stor age of spent nuclear fuel, solid reactor

- related greater than Class C (GTCC) waste, and other radioactive materials associated with spent fuel and reactor

- related GTCC waste storage.

ISA. Integrated safety analysis

ISG. Interim staff guidance refers to documents that the NRC issues to clarify or address issues not

discussed in a Standard Review Plan.

ISMP. An Integrated Source Management Portfolio is a secure and effective set of automated tools to house and maintain information on licensees, natio nally tracked sources possessed by licensees, and

licensee transactions.

IT. Information technology deals with the use of computers and software.

## ACRONYM LIST

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 187**  U.S. NUCLEAR REGULATORY COMMISSION ITAAC. The inspections, tests, analysis, and acceptance criteria process is designed to verify that a

ne w nuclear facility has been constructed and will operate in compliance with the COL, NRC regulations, and the Atomic Energy Act.

IV&V. Independent verification and validation is the process of a third

- party check that the NRC performance measures meet th e requirements and fulfill their intended purpose.

KEPCO. Korea Electric Power Corporation

LAR. License amendment request

LER. License event report

LER Search. License Event Report Search System

LES. Louisiana Energy Services is a group of some o f the largest companies in the nuclear power field and is a supplier of enriched uranium for commercial atomic power reactors.

LLW. Low

- level waste includes items that have become contaminated with radioactive material or have become radioactive through exposure to neutron radiation.

LSN. The Licensing Support Network is an electronic system that the NRC’s Atomic Safety and Licensing Board Panel operates to provide free Web

- based access to documents that may be used as evidence in the NRC’s review pro cess and licensing proceedings associated with the application that DOE submitted to seek authorization to construct a high

- level radioactive waste repository at Yucca Mountain, NV.

LVS. The License Verification System is a national verification system t hat would be used to detect and prevent unauthorized parties with malicious intent from obtaining nuclear materials.

MC&A. Material control and accounting means the use of control and monitoring measures to prevent or detect loss of special nuclear mate rials. Material accounting is defined as the use of statistical and accounting measures to maintain knowledge of the quantities of special nuclear materials present in each area of a facility. It includes the use of physical inventories and material bala nces to verify the presence of material or to detect the loss of material through theft.

MDEP. The Multinational Design Evaluation Program is a multinational initiative taken by national safety authorities to develop innovative approaches to leverage the resources and knowledge of the national regulatory authorities who will be tasked with reviewing new reactor power plant designs.

MILES. The Multiple Integrated Laser Engagement System is used by the U.S. military and other

armed forces around the world for training purposes. It uses lasers and blank cartridges to simulate

actual battle.

MOM. Maintenance, Operation, and Modernization

MOX. Mixed oxide is nuclear fuel containing more than one oxide of fissile or fertile materials.

MSI. Minority Serv ing Institution

## ACRONYM LIST

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 188**  U.S. NUCLEAR REGULATORY COMMISSION NEA. Nuclear Energy Agency

NEPA. National Environmental Policy Act

NERC. The North American Electric Reliability Council is the organization of U.S. electrical grid operators.

NFPA. National Fire Protection Association

NFS. Nucle ar Fuel Services, Inc., is a company that supplies fuel for the U.S. Navy’s fleet of

nuclear

- powered vessels. It has also processes weapons

- grade uranium into nuclear reactor fuel.

NGNP. A Next Generation Nuclear Plant is a Generation IV version of the very high temperature

reactor.

NIST. National Institute of Standards and Technology

NMED. Nuclear Materials Event Database

NMIP. The Nuclear Materials Information Program is an inter agency effort that DOE manages to consolidate information from all sources pertaining to worldwide nuclear materials holdings and their security status into an integrated and continuously updated information management system.

NMMSS . The Nuclear Material s Management and Safeguards System is a centralized

U.S. Government database that tracks and accounts for source and special nuclear material to ensure

that it has not been stolen or diverted to unauthorized users.

NMP. The National Materials Program i s a term that has been applied to the broad collective frameworks within which both the NRC and the Agreement States function in carrying out their respective radiation safety regulatory programs.

NRC. U.S. Nuclear Regulatory Commission

NSTS. The Nat ional Source Tracking System is a major security initiative of the NRC that tracks high

- risk radioactive sources from the time that they are manufactured or imported through their disposal or export, or until they decay enough to no longer be of concern.

NUREG. Nuclear Regulatory Commission regulation. The NRC issues NUREGs.

NWPA. The Nuclear Waste Policy Act of 1982 created a timetable and procedure for establishing a permanent, underground repository for high

- level radioactive waste by the mid

- 1990s. The Act provided for some temporary Federal storage of waste, including spent fuel from civilian nuclear

reactors.

OE. Office of Enforcement

OECD . Organisation for Economic Co

- operation and Development

## ACRONYM LIST

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 189**  U.S. NUCLEAR REGULATORY COMMISSION OIG. Office of the Inspector General

OIP. O ffice of International Programs

OMB

. Office of Management and Budget

OPM. Office of Personnel Management

ORR. An operational readiness review inspection is conducted by the NRC when construction nears completion for the facility’s most safety

- signifi cant features, including but not limited to, chemical safety, fire protection, radiological control procedures, emergency preparedness, training, and qualification of facility personnel and criticality safety.

OWFN. One White Flint North

PACS. The Ph ysical Access Control System refers to an NRC infrastructure upgrade.

PB. The President’s Budget is the President’s proposal to the U.S. Congress, which recommends funding levels for the next fiscal year, beginning October 1.

PBPM. Planning, Budgetary, and Performance Measurement

PDF. Portable Document Format

PCS. Permanent Change of Station is an NRC program that assists with employee relocations.

PII. Personally Identifiable Information

PMM. Project Management Methodology is a tool that descr ibes every step in the project lifecycle in depth, so that project managers know exactly which tasks to complete, when, and how.

PRA. Probabilistic risk assessment

PRM. A petition for rulemaking is the mechanism by which individuals, public interest gr oups, and private enterprise can argue in favor of changes or new rules for ensuring the general welfare of the

Nation.

PSSC. Principle structures, systems, and components

PWR. Pressurized

- water reactors keep water under pressure so that it heats but does not boil. The water from the reactor and the water that is turned into steam in the steam generator do not mix.

RAMQC. Radioactive material(s) in quantities of concern include americium

- 241, cobalt

- 60,

cesium

- 137, plutonium

- 238, and strontium

- 90, among others, in specific quantities. It does not include spent nuclear fuel.

RASCAL. Radiological Assessment System for Consequence Analysis

## ACRONYM LIST

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 190**  U.S. NUCLEAR REGULATORY COMMISSION RIC. The Regulatory Information Conference is an annual conference that brings together over 3,000 particip ants from 32 countries to provide an opportunity for Government, industry, international agencies, and other interested stakeholders and members of the public to meet and discuss safety initiatives and regulatory trends.

ROP. The Reactor Oversight Proces s is the process by which the NRC monitors and evaluates the performance of commercial nuclear power plants. Designed to focus on plant activities most important to safety, the process uses inspection findings and performance indicators to assess each pla nt’s safety performance.

RPS. The Reactor Programs System provides an integrated methodology for planning, scheduling, conducting, reporting, and analyzing inspection activities at the nuclear power reactor and fuel facilities

in the United States.

RTR

. Research and test reactors

SAPHIRE. The System Analysis Programs for Hands

- On Integrated Reliability Evaluation is a software application developed for performing a complete probabilistic risk assessment.

SDP. The significance determination proces s assigns risk characterization to inspection findings based on large early release frequency considerations.

SER. The safety evaluation report documents the NRC staff’s technical reviews.

SGI. Safeguards Information is a special category of sensitive unclassified information that must be protected. Safeguards Information concerns the physical protection of operating power reactors, spent fuel shipments, strategic special nuclear material, or other radioactive material.

SIDS. Suspicious Incidents D ata System

SLES. The Secure LAN/Electronic Safe is an electronic document management system for sensitive Safeguards Information.

SMR. A small modular reactor design is less than one

- third the size of a current nuclear plant and can create approximat ely a quarter of the energy output.

SNF. Spent nuclear fuel

SNM. Special nuclear materials are defined by Title

- I of the Atomic Energy Act of 1954 as plutonium,

uranium

- 233, or uranium enriched in the isotopes uranium

- 233 or uranium

- 235. The definitio n includes any other material that the NRC determines to be special nuclear material, but it does not include source material. The NRC has not declared any other material as SNM.

SRP. Standard Review Plan

STAQS. Strategic Acquisition System

STEM. Sc ience, Technology, Engineering, and Mathematics

## ACRONYM LIST

2014 CONGRESSIONAL BUDGET JUSTIFICATION **Page 191**  U.S. NUCLEAR REGULATORY COMMISSION STP. The South Texas Project is a nuclear power station southwest of Bay City, TX.

TAPIS. The Transportation Approval Package Information System is one of several applications that

use National Institutes of Health IBM mainframe timesharing services. Although the hardware for these applications resides outside of the NRC, the agency still supports them.

UNC. The United Nuclear Corporation site is located in New Mexico. It includes a former uranium ore

p rocessing mill and tailings disposal area.

US

- APWR. The U.S.

- Advanced Pressurized

- Water Reactor is a standard design for a 4,451

- MWt pressurized

- water reactor.

USEC. The U.S. Enrichment Corporation supplies enriched uranium fuel for commercial nuclear po wer plants.

U.S.

- EPR. The U.S. Evolutionary Power Reactor is third generation pressurized

- water reactor design.

WASSC. The Waste Safety Standards Committee is an IAEA safety committee.

WBL. Web

- Based Licensing is a materials licensing system that th e NRC uses for managing licensing information for businesses using radioactive materials.

WIR. Waste incidental to reprocessing is the waste byproduct that comes from reprocessing nuclear

fuel.

WVDP. The West Valley Demonstration Project is operated by DOE and was created in 1980 by the West Valley Demonstration Project Act.