-- U.S.NRC UNITED STATES NUCLEAR REGULATORY COMMISSION

Protecting People and the Environment

Report of the Independent

External Review Panel

Thomas E. Hill, Chairman

Benjamin W. Nerud

Michael T. Ryan

March 18, 2008
Overview

* 7 meetings

* Federal Advisory Committee Act

* Opportunity for public input

* Stakeholder participation and

comment

* Staff cooperation

2
Security

Benjamin W. Nerud

3
Culture of Security

* Incorporate security into the

culture of NRC and Agreement

States

- Focus on health, safety, and

environmental protection

- Security must have equal

consideration

4
Security Strategy

* Three types of countermeasures

provide full spectrum of

protection from adversary

- Affect the behavior

- Affect the operational capability

- Limit courses of action available

5
Recommendation Ila

* Suspend "good faith presumption"

until a record of credible

performance is established

6
Recommendation Ia

* For "new applicants" specific

recommended actions include:

- On-site visits to all licensed locations

- Plans and procedures tailored to operation

- Background investigations of key

personnel

- Requested materials comport with planned

activities

7
Recommendation lb

* Develop a process and establish

criteria to allow recognition of

new licenses as having a record

of credible performance leading

to establishment of trust

8
Recommendation 2

• Include licensing guidance in

current NRC Operational Security

Program

Exploitable information

Benefits of release

-Measures to safeguard and control

9
Recommendation 4

Develop detailed physical

security standards using. riskinformed, graded approach

-Identify threats

- Determine appropriate actions

- Implement protective measures

10
Recommendation 8

* Re-evaluate pre-licensing

guidance

Eliminate "good faith presumption"

7 Rely on on-site visits for verification

11
Web-based Licensing and National

Source Tracking System,

(WBLINSTS)

Michael T. Ryan

12
Recommendation 3a

" Integrate Web-based Licensing and

National Source Tracking Systems

" Goal: real-time tracking of risksignificant sources

* Specific features for licensees and

vendors

• A single system for NRC and

Agreement States

13
Recommendation 3b

• Until the system is available, all

licenses governing transfers of

risk-significant sources should l

verified

* Where trust has been establishe

exceptions could be considered

)e

dý

14
Recommendation 3c

" Develop and test system

" Involve Agreement States in

development

* Plan rollout and implementation

15

6';
Recommendations 3 a, b, & c

*-Respond directly to the

vulnerability identified in GAO

report

* Provide a risk-informed response

to the vulnerability

16
Other Recommendations

Thomas E. Hill

17
Recommendation 5a

* Incorporate security into culture

of NRC and Agreement State

licensing programs

18
Recommendation 5b

* Provide tools and training for

making- risk-informed licensing

decisions

- Threat awareness program

- Investigation of suspicious

applications

- Information management databases

19
Recommendations 6 a & b

• Office of International Programs

should follow Recommendation I

- Increased review for first-time

import/export applicants

* Importers and exports under

General Licenses should use

WBLINSTS system when available

20
Recommendation 7

Continue to encourage,"as

needed" possession limits

-Approximately 10 percent of

licenses do not have upper bounds

on possession limits

Exclusions may apply to 10 CFR

35.100, 200, and 300 uses

21
Questions/Com ments

" Thank you for your time

* We are happy to take your

questions

22
Acronyms Used

9 NSTS - National Source Tracking

System

* WBL - Web-based Licensing

23