1. THE NATIONAL NUCLEAR REGULATOR PARLIAMENT PORTFOLIO COMMITTEE
26 NOVEMBER 2003

2. CONTENT
1.Background
Status on new Legislative Imperatives
3.Challenges

3. NATIONAL NUCLEAR REGULATORY AUTHORITY
The National Nuclear Regulator Act ( Act No 47 of 1999) (NNRA) established the National Nuclear Regulator (NNR). It repeals the Nuclear Energy Act (NEA) ( Act No 131 of 1993) which was applicable to the erstwhile Council for Nuclear Safety (CNS).
The NNRA came into force on 24 February 2000.
The previous NEA legislated activities of both the Atomic Energy Corporation of South Africa and the CNS. The promulgation of the NNRA, which deals exclusively with the regulation of the nuclear industry, provides for the separation of the promotional and Regulatory functions in the nuclear industry in South Africa.
The promotional aspects of nuclear activities in South Africa are legislated by the Nuclear Energy Act (Act No 46 of 1999)

4. The establishment, objects and functions of the NNR are clearly encapsulated in Chapter 2 of the NNR Act. The mandate and authority of the NNR are conferred through section 5 and 7 of the NNRA.

5. THE NATIONAL NUCLEAR REGULATOR
As a public entity, the NNR also has the duty to be responsive to the national transformation agenda particularly in regard to:
Human resource development
Economic growth
Implementation of preferential procurement policies that are aligned with broad-based Black economic empowerment

6. THE STRUCTURE OF THE ORGANISATION

7. STRUCTURE OF NNR Minister Minerals and Energy NNR Board of Directors
NNR CEO
Power Reactors -PRD
Nuclear Tech. Natural Sources
NTNS
Regulatory Strategy Development
RSD
Assess-ment Group AG
Corporate Support services
CSS

8. NATIONAL NUCLEAR REGULATOR
The NNR is structured in accordance with its five main functional areas:
The Power Reactor Division- has two departments that are responsible for licensing activities related to nuclear power reactors. Our Koeberg programme has regulatory officers at site office who exercise regulatory oversight in respect of the Koeberg nuclear power station. The Pebble Bed Modular Reactor (PBMR) Programme manages the NNR’s process of reviewing the nuclear installation licence application that ESKOM has submitted for the PBMR reactor design.
The Nuclear Technology and Natural Sources Division (NTNS) has a programme responsible for approximately 80 authorisations in the mining and mineral processing industry -the Regulation of Natural Sources (RENS) programme - as well as a programme on Nuclear Technology and Waste Projects (NTWP). Regulation of the Nuclear Energy Corporation of South Africa (NECSA) and the Vaalputs waste repositry are the focus of the NTWP programme.
Two of the five main areas are responsible for direct regulatory control of nuclear installations and other actions involving radioactive material:
The Power Reactor Division- responsible for licensing activities related to power reactors – two units operating Koeberg NPS– one new reactor design under review-PBMR
The Nuclear Technology and Natural Sources- NTNS responsible for approximately 80 authorisations in the mining and mineral processing industries, nuclear facilities of the Nuclear Energy Corporation of South Africa (NECSA) and projects dealing with radioactive waste managements as well as scrap yards

9. NATIONAL NUCLEAR REGULATOR
Both these groups utilise their resources on implementing regulatory practices and processes towards granting, refusing and amending authorizations. They also implement a compliance assurance system based on inspection programmes and initiate enforcement measures as required
The third division is the Assessment Group which is responsible for providing safety assessment technical support to the Power Reactor and NTWP divisions. The Assessment Group is also the technical focal point for organisation-wide capacity building, including the identification of the appropriate skills coverage, implementation of relevant skills development programmes,
and the maintenance of appropriate skills levels.

10. NATIONAL NUCLEAR REGULATOR
Regulatory Strategy Development is the fourth division and is responsible for: regulatory research and development; development of safety standards and regulatory guidelines; a radiochemistry laboratory; strategic business management of the organisation; legal services; and public liaison and communication
The fifth division is Corporate Support Services. This division provides services relating to human resources, staff development and training, finance management, information technology, documentation control, library services, and general services.
The staff complement of the organization is currently 80. About 60 NNR staff are scientists and engineers with background in various technical disciplines.

11. AUTHORISATION HOLDERS
Background
AUTHORISATION HOLDERS

12. AREAS/TECHNOLOGY REGULATED BY THE NNR
Nuclear Power Reactors
Eskom Koeberg Nuclear Power Station twin 900MWe Power – Operational Since 1984
PBMR – NNR licensing process for the PBMR demonstration plant is in progress. No nuclear licence issued yet.
South African Nuclear Energy Corporation (NECSA)
Pelindaba Site
Vaalputs National Waste Repository

13. AREAS/TEHCNOLOGY REGULATED BY THE NNR
Mining and Minerals Processing
Currently 63 authorisations issued
Users of small quantities of Radioactive materials
Currently 24 authorisations issued
As can be seen the NNR regulates a wide range of
activities/technologies ranging from Nuclear Power to users of small
quantities of Radioactive Materials

14. NEW LEGISLATIVE INITIATIVES
STATUS
NEW LEGISLATIVE INITIATIVES

15. Public Participation Required by section 21 of the NNRA
Public representations related to health, safety and environmental issues were received from stakeholders with respect to applications for :
PBMR plant, PBMR fuel plant & transportation, & Smelter
Public submissions were processed according to internal procedures and plans are progressing to hold public hearings with respect to these applications.

16. Cooperative Governance
Section 6 of the NNRA
To give effect to the principles of co-operative governance and
inter governmental relations, in respect of monitoring and
controls of radioactive material, all organs of state must
cooperate with one another.
- The relevant Regulations were published by Minister
- Processes were initiated resulting in draft agreements signed with at least 5 organs of State out of the total of 8 initially identified in the regulation
- Other drafts are being prepared at working group levels

17. PUBLIC INFORMATION FORUMS
Section 26 (4) Public Safety information forums
- Relevant Regulation was published
Following forums identified
- Vaalputs Communication Forum
- Pelindaba Communication Forum
- Koeberg Liaison Forum

18. PROMOTION OF ACCESS TO INFORMATION
Promotion of Access to information held by the NNR
Section 14 of Public Information Act
Manual submitted end of August 2003
Processes to satisfy all the requirements of the Act are progressing including the translation of manual into 3 official languages

19. Strategic Planning
In Section 15(6)(e) the NNR Act provides for the accountability of the NNR and requires that the Chief Executive Officer must, after consultation with the Board and with the approval of the Minister, publish and distribute a plan of action for the activities of the Regulator each financial year. Accountability of the NNR is also governed by the Public Finance Management Act which makes, among other provisions, requires the annual review and submission of a three-year strategic plan to the Minister within prescribed time frames.
The NNR maintains focus on compliance with these and other legislative and regulatory requirements.

20. NNR Strategic Plan
Legislative requirements NNR Act and other national legislation
NNR Business Definition/Analysis
Mission
Vision
Critical Processes, products and services
Strategic Analysis
SWOT elements
NNR stakeholders
Strategic Objectives
NNR Score Board
4 areas for performance measure
Three yearly Strategic Objectives
Yearly Divisional Strategic and Operational Focus
Yearly detailed Operational Plans
Reporting and monitoring

21. Strategic Objectives -Process
Three-year Organisation Strategic Objectives are set e.g from the last strategic session covering financial year 2003/4 to 2005/6 in each of the four area of the scoreboard
From these three-year Strategic Objectives, yearly Strategic and operational focus, such as for 2003/2004, for each Division are set
Based on these, more detailed yearly Operational Plans for each Department of each Division are set
Reporting on status of Departmental objectives are done at MANCO
(bi-weekly)
Monitoring and reporting of yearly strategic objectives, quarterly at EXCO
Yearly reporting in terms of legislative requirements-Annual Report

22. STRATEGIC FOCUS Based on Balanced Scorecard approach
Measuring strategic performance through balancing act
EFFECT
CORE BUSINESS --Effectual
Execution
STAKEHOLDER
Satisfaction
INTERNAL BUSINESS PROCESSES
- Efficient
Effective
HUMAN RESOURCE FACTORS
- Competent
Adequate
CAUSE
Effective execution of Core Business will result in stakeholder (external) satisfaction and requires best HR practices and excellent internal business process

23. CHALLENGES

24. CHALLENGES FACING THE NNR
Limited National Pool of expertise results in Regulator and authorisation holders competing for the same human resources
Increased mandate of the regulator …. And financial resources are limited
Retaining appropriate expertise (corporate memory) in the face of “ageing” regulatory staff
Capacity building/training/development and expertise to ensure adequate continuity in all aspect of regulatory mandate.

25. Challenge
CAPACITY BUILDING AND DEVELOPMENT
Attracting the appropriate level of skills and expertise has proven to be difficult and where they are found the NNR is unable to attract and retain them.
Engineering skills, in particular, are critical for effective regulation of nuclear safety and it is considered a priority to ensure that the Regulator has adequate capacity in this regard.  
There are several capacity building and development projects that the NNR has identified in an effort to address the problem identified above:

26. Challenge
EXPOSURE OF NEW STAFF TO OVERSEAS FACILITIES
In order to accelerate skills acquisition for inexperienced scientists and engineers, the NNR needs to expose them to nuclear regulators and facilities locally and externally in order to gain experiential opportunities. This project will require funding

27. Challenge
SUCCESSION PLANNING AND MANAGEMENT
In order for the NNR to replace its existing technical staff, a number of whom are due for retirement within the next 5 years, a mentoring programme has been developed as a strategy to ensure transfer of skills to inexperienced staff. Accelerated training entails: intensified traveling to nuclear installations and facilities; and attendance of technical development programmes both nationally and internationally.

28. Challenge
INTERNSHIP PROGRAMME
The NNR has developed an internship programme for science and engineering graduates. This programme provides experiential learning opportunities in the field of nuclear safety regulation. The primary outcome of the programme is to provide the NNR and the technical environment in South Africa with an employable pool of science and engineering skills. To sustain such a programme will require funding

29. Challenge
BURSARY SCHEMES
The NNR funds at least five bursars in science and engineering fields per financial year. This is a significantly small effort and in order to address the shortage identified earlier it is necessary to support at least 10 science and engineering students.

30. Challenge
SECURITY
Security in relation to regulatory control over radioactive materials as well as physical security at nuclear facilities has increasingly become a priority nationally and internationally. Specialised skills will be required to enable the NNR to carry out its responsibilities in this area.

31. Challenge
REGULATORY INVESTIGATIONS
Research relating to regulatory standards and practices is a crucial focus for the NNR.
In light of the licensing processes relating to new nuclear technology, the pebble bed modular reactor (PBMR) and PBMR fuel plant and potential implications for the licensing of such technology internationally, there is an urgent need to enhance the NNR’s capacity to review - taking into account international experience - and revise its regulatory processes.  

32. Challenge
POST RETIREMENT MEDICAL AID LIABILITY
The NNR is required to make a provision for a liability it has in respect of post retirement medical benefits for certain categories of staff. In order to comply with the requirements of AC116 (Accounting Circular on Employee Benefits), the provision has to be made in full and in a prescribed manner, this has resulted in a situation where the liabilities technically exceed the assets.

33. FUNDING FUNDING IS KEY TO THE LIST OF CHALLENGES FACING THE NNR
The NNR is funded from state funds to the tune of approx. 17% of its budget.The remainder is covered from holders of authorisation through a fee recovering system imposed by the NNRA.
BASELINE FIGURES:
The NNR has sustained its activities with the current level of funding.
It is clear that it will not be easy to sustain all efforts in human resource
development (capacity building, succession planning, internship programme,
bursary scheme and security capacity), without the acquisition of additional
funds.