New Plant Regulatory Issues Kati Austgen Washington International Representatives Meeting July 12, 2012

VCS Heavy Lift Derrick & Modular Assembly Building

New U.S. Nuclear Construction  First-ever combined licenses under Part 52 – Vogtle 3 & 4 – February 10, 2012 – Summer 2 & 3 – March 30, 2012  Watts Bar Unit 2 target completion 2015 – TVA plans to complete Bellefonte 1 after WBN2

USNRC Part 52 Licensing Process Early Site Permit (optional) Early Site Permit (optional) Construction Construction Acceptance Criteria Met (ITAAC) Construction Acceptance Criteria Met (ITAAC) Operation * Public Comment Opportunity Combined License Design Certification (optional) Design Certification (optional) * * * *

Challenges for New Plant Construction  Changes during construction under Part 52 – Prior NRC approval required for Tier 1 and Tier 2* design changes  Ambiguities in AP1000 design certification creating uncertainty in the licensing basis  Untried ITAAC* process * Inspections, Tests, Analyses and Acceptance Criteria

Challenges to Future Plant Construction  Low $$ gas, and lots of it  Fukushima response requirements  Long term solution for spent nuclear fuel

Small Modular Reactors  Next big thing  SMRs have captured the imagination – Public – Policymakers – State and local governments – Nontraditional supporters  Serious interest in integral PWR technology

SMR Benefits  Enhanced safety and security  Smaller; scalable to demand growth  Modular; less costly to build  Suited to more sites and applications  Greater public support  Serve U.S. policy goals

SMRs Serve U.S. Policy Goals  Safer, more secure designs for a post-9/11, post-Fukushima world  Energy Security  Clean Energy  Spur manufacturing – create jobs  Capture share of global market  Maintain U.S. nuclear technology and policy leadership

U.S. Department of Energy SMR Licensing Support  Four teams responded to March 2012 DOE Funding Opportunity Announcement – B&W – Holtec – NuScale – Westinghouse  Two awards expected this summer based on ability to deploy by 2022

DOE Funding Opportunity  Five-year program cost: $452 million  Competitive bid process  Minimum 50% cost share to support funding for design certification and licensing of two SMR designs – Licensing may be either Part 50 or Part 52

SMR Challenges  Key regulatory issues must be resolved to establish business case: – Emergency Planning – Security – Staffing – Financial requirements  Gas and metal cooled designs require materials and fuels R&D

Conclusion  The U.S. is building new nuclear plants again  Support for nuclear energy remains strong – Especially for SMRs  DOE awards expected to drive progress on SMR regulatory issues and business case