1. 1 The U.S. NRC’s Reactor Certification and Licensing Process – Meeting the Challenge? Commissioner Peter B. Lyons U.S. Nuclear Regulatory Commission 15 th Pacific Basin Nuclear Conference Sydney, Australia October 16, 2006 United States Nuclear Regulatory Commission

2. 2 Key Topics NRC Mission NRC Mission Regulatory Independence Regulatory Independence Public Involvement Public Involvement Regulatory Challenges with Growth Regulatory Challenges with Growth Nuclear Safety Research Cooperation Nuclear Safety Research Cooperation

3. 3 Outlook for Nuclear Energy Favorable Outlook for Increased Safe and Secure Utilization of Nuclear Energy Demonstrated Continued Safe Operations SUPPORTS

4. 4 Viability of Nuclear Power Demonstrated Continued Safe Operations EFFECTIVE REGULATION Technically Sound Public Participation

5. 5 REACTOR SAFETY Systems, Structures, Components Systems, Structures, Components Programs, Practices, Procedures Programs, Practices, Procedures Knowledge, Skills, Abilities Knowledge, Skills, Abilities Safety Culture Safety Culture

6. 6 NRC’s Regulatory Standard Adequate Protection of Public Health and Safety and the Environment Adequate Protection of Public Health and Safety and the Environment Promotion of the Common Defense and Security Promotion of the Common Defense and Security

7. 7 Risk-Informed Regulation Integration of - Risk InsightsRisk Insights Defense-in-DepthDefense-in-Depth Safety MarginsSafety Margins

8. 8 Reactor Safety Performance PERFORMANCE RESULTS Safety Measures - Performance Indicators - Inspection Findings Safety Commitment - Licensee - Vendors - Consultants - Workers

9. 9 Regulation for the Common Good National Interests and International Law Nuclear Regulation Legal Regulatory Framework Technical Regulatory Framework MARGINS OF SAFETY

10. 10 NRC Strategic Objective Enable the use and management of radioactive materials and nuclear fuels for beneficial civilian purposes in a manner that protects public health and safety and the environment, promotes the security of our nation, and provides for regulatory actions that are open, effective, efficient, realistic, and timely.

11. 11 Public Openness Essential to Regulatory Strength Essential to Regulatory Strength Opportunities for Public Comment Opportunities for Public Comment Public Comments Addressed Openly Public Comments Addressed Openly Opportunities for Public Hearings Opportunities for Public Hearings Licensing New ReactorsLicensing New Reactors Amending Licenses for Existing ReactorsAmending Licenses for Existing Reactors Balanced with Security Needs Balanced with Security Needs

12. 12 Global Interest in Nuclear Energy 2025 Global Energy Demand – Up 50% * 2025 Global Energy Demand – Up 50% * 2025 Electricity Demand – Up 75% * Nuclear Power Nuclear Power Large Baseload Capability Mature Technology Abates Greenhouse Emissions Reduces Air Pollution Supports Energy Diversity * U.S. Department of Energy estimate

13. 13 Our Responsibility and Mandate Responsibility – Assure Adequate Protection of the Public and Environment Responsibility – Assure Adequate Protection of the Public and Environment Mandate – Enable Beneficial Use of Nuclear Energy and Radiation Mandate – Enable Beneficial Use of Nuclear Energy and Radiation

14. 14 Combined Licenses, Early Site Permits, and Standard Design Certifications

15. 15 U.S. Industry COL Interest Valid as of October 2, 2006

16. 16 Design-Centered Reviews NRC staff’s parallel review of multiple standardized COL applications NRC staff’s parallel review of multiple standardized COL applications Dependent on extent of industry standardization of COL applications Dependent on extent of industry standardization of COL applications Principle: Principle: One Issue One Review One Position

17. 17 U.S. Human Resource Issues Increasing competition for nuclear- related skills and experience Increasing competition for nuclear- related skills and experience Aging workforce and impending retirements Aging workforce and impending retirements University Nuclear Engineering programs at an all-time low University Nuclear Engineering programs at an all-time low Increasing student enrollments Increasing student enrollments More scholarships, training programs, and recruitment needed! More scholarships, training programs, and recruitment needed!

18. 18 International Cooperation and Nuclear Safety Research NRC Strong Commitment to International Cooperation NRC Strong Commitment to International Cooperation Global Marketplace a Reality Global Marketplace a Reality International Partnerships of Regulators – Path to Success International Partnerships of Regulators – Path to Success Need for Research to Reduce Uncertainties and Provide Sound Technical Bases for Decisions Need for Research to Reduce Uncertainties and Provide Sound Technical Bases for Decisions

19. 19 NRC International Cooperation Mixed Oxide and High Burn-up Fuels Mixed Oxide and High Burn-up Fuels Plant Aging and Material Degradation Plant Aging and Material Degradation Digital Instrumentation and Controls Digital Instrumentation and Controls T-H and Severe Accident Analysis T-H and Severe Accident Analysis Probabilistic Risk Assessment Probabilistic Risk Assessment Fire and Seismic Risk Fire and Seismic Risk Radiation Protection Radiation Protection Human Performance Human Performance Spent Fuel and Waste Management Spent Fuel and Waste Management

20. 20 Multinational Design Evaluation Program (MDEP) Stage 1 - International cooperation within existing regulatory framework Stage 1 - International cooperation within existing regulatory framework Stage 2 - Convergence of codes, standards, and safety goals across international boarders Stage 2 - Convergence of codes, standards, and safety goals across international boarders Stage 3 - Implementation of Stage 2 products to facilitate licensing of Generation IV reactors Stage 3 - Implementation of Stage 2 products to facilitate licensing of Generation IV reactors

21. 21 Meeting the Challenge? Yes – now Yes – now Yes – preparing for the future Yes – preparing for the future Yes – working together internationally to ensure safety Yes – working together internationally to ensure safety

22. 22 Backup Slides

23. 23 U.S. Industry COL Interest Interested Organization Design Under Consideration Sites Under Consideration Planned COL Application Date Unistar NuclearEPRNine Mile Point Calvert Cliffs Other site not yet selected 2007 - 2008 SCE&GAP1000Summer2007 Progress EnergyAP1000Shearon Harris Florida (site not selected) 2007 2008 Duke PowerAP1000South Carolina (new site)2007 NuStart EnergyAP1000Bellefonte2007 ESBWRGrand Gulf2007 DominionESBWRNorth Anna2007 NRG EnergyABWRSouth Texas Project2007 Southern NuclearAP1000Vogtle2008 Entergy NuclearESBWRRiver Bend2008 Amarillo PowerABWRNot selected yetTo be determined FP&L, TXU, DukeNot selected yet To be determined