U.S.NRC

UNITED STATES NUCLEAR REGULATORY COMMISSION

Protecting People and the Environment

Radioactive Materials

Security and Licensing

Commission Briefing

September 4, 2007

John D. Kinneman

Region I, DNMS
Outline

" Actions to Improve Security (2001-2007)

" GAO Investigation and Senate Hearing

* Recommendations

" Action Plan to Further Improve Security

2
Actions to Improve Security (2001-2007)

e Staff Has Improved Security Posture to

Reflect Post-9/11 Environment

e Secu rity Assessments in 2002

* Materials Security Working

* Orders to Improve Security

Group

3
Actions to Improve Security (2001-2007)

(Continued)

" Consistently Employed Risk-Informed,

Graded Approach

" Highest Risk Sources Considered First

* Graded Requirements

4
2007 GAO Investigation

" Formed Bogus Company and Obtained

NRC License

" Altered NRC License

" Two Suppliers Agreed to Sell Material

• Parallel Attempt to Obtain Agreement

State License Aborted When Notified of

Site Visit

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Short Term Actions Taken

* Discussed with GAO Investigators

* Terminated the NRC License

• Stopped Issuing New NRC Licenses Until

Interim Guidance Issued

* Pre-Licensing Visits or Meetings for New

Applicants

* Restarted Pre-Licensing Working Group

6
Short Term Actions Taken

" Coordinated with Federal and State

Partners

* Performed Consequence Assessment and

Shared with GAO

* Retrospective Examination to Assure

Licensees are Legitimate

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GAO Recommendations

* Mandatory Pre-Licensing Visits

* Periodic Oversight of License Reviewers

• Explore Prevention of License

Counterfeiting

8
Senate Staff Recommendations

* Permanent Subcommittee on

Investigations:

-Reevaluate "Good Faith" Presumption

- Regulate Category 3 More Closely

-Ensure Only Authorized Persons Get

Radioactive Material

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OIG Recommendation

-Independent External Panel to:

- Identify Vulnerabilities in Material Licensing

- Validate the Agency's Byproduct Material

Security Efforts

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Commission SRM

* Aug. 17, 2007

* Comprehensive Plan by Sept.

" Needed Changes in Licensing

" Include Short Term Actions

4, 2007

Process

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Action Plan Overview

* External Review

* Pre-Licensing Working Group

* Materials Program Working Group

* NSTSand WBL

* General Licenses and Outreach

• Agreement State Partnership

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External Review Panel

* Three Independent Experts

* 120 Days to Review Licensing Process

* Identify Vulnerabilities and Effectiveness

* Review "Good Faith" Presumption

13
Pre-Licensing Working Group

e Reconstitute 2005-2006 Working Group

* Regional and Agreement State Co-Chairs

* To Develop Revised Guidance on

Pre-Licensing Reviews and Visits

e Product due November 30, 2007

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Materials Program Working Group

* FSME and Agreement State Co-Chairs

* Regional Participation

" Develop and Evaluate Solutions to:

-Verification of Authorization

- Counterfeiting

- General Licenses

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Materials Program Working Group

* Review Results of External Review

* Comprehensive Program Assessment

- Pre-Licensing Guidance (Broader Look)

- Not Limited to Licensing

- IMPEP Process

e Reports/Recommendations Phased Over

Next Year

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NSTS and WBL

* Expand Rulemaking to Consider Smaller

Sources (Category 3.5)

* Interface between NSTS and WBL

- Effective Solution for Assuring Authorization

- Impact for the Agreement States

* Partner with Agreement States to Ach

Broad Participation

ieve

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General Licenses

* Staff-Identified Vulnerability

* Short-term Action Will be Developed

" Framework Review

* Ongoing Rulemaking

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Resources

FY08 FY09

Unbudgeted Unbudgeted

FTE $(Thousands) FTE $(Thousands)

15.5 2,580 12.0 8,260

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Staff's Plan

" Comprehensive and Responsive

" Short-term, Mid-Term and Long-Term

Actions

" Independent, External Program Review

" Comprehensive Internal Assessment

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Acronyms Used

* DNMS- Division of Nuclear Materials Safety

* GAO - Government- Accountability Office

" FSME - Office of Federal and State Materials

and Environmental Management Programs

* WBL - Web-Based Licensing

" NSTS - National Source Tracking System

" SRM - Staff Requirements Memorandum

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