This is the sixth Annual Report of the U.S. Nuclear Regulatory Commission. It is submitted to the President for transmittal to the Congress as required by Section 307 (c) of the Energy Reorganization Act of 1974. The report describes the major programs, actions and plans of the NRC during fiscal year 1980 in carrying out its statutory responsibilities for regulating civilian nuclear activities so that the public health and safety are protected. This introductory chapter presents an overview of NRC activity, provides updating on significant events and actions occurring after the end of fiscal year 1980 through December 31, and briefly describes major Commission policies and plans for 1981. The major product of the agency during 1980 was the formulation and refinement of the TMI Action Plan, initiated in late 1979 to revamp NRC regulatory and licensing functions on a timely basis, consistent with the urgent need for setting priorities and moving quickly to improve safety improve safety measures. Developing and implementing the Action Plan has been an all-consuming project of many elements of the staff and has received the close attention of the Commission. The studies and investigations into the causes of the TMI accident and the needs for corrective actions produced more than one thousand recommendations. The Action Plan (NUREG-0660) consolidates the many recommendations into discrete, scheduled tasks relating to specific changes (or studies of possible future changes) in regulatory requirements and NRC organization and procedures. It presents a sequence of actions aimed at an orderly and controlled improvement in safety. The Action Plan is the program plan for the future and also documents the actions taken by the NRC during the period since the accident. (See Chapter 4.) POLICY, PLANNING AND OUTLOOK In reappraising its priorities, the Commission developed and issued in May 1980 a Policy, Planning, and Program Guidance (PPPG) document to provide direction to the staff on the general policies and objectives of the agency and to provide guidance for developing appropriate resource needs for fiscal years 1982 through 1986. (See 1979 NRC Annual Report, pp. 1-2.) This document was used to shape NRC programs and prepare the recently completed budget request for fiscal years 1982-1984 as well as to provide policy guidance for fiscal years 1980 and 1981. Policies stated in the PPPG to be followed in achieving adequate protection of public health and safety, and in developing NRC programs and plans, are: • Priority will be given to NRC activities expected to have the greatest effect on reducing risks to the public health and safety. NRC will require careful consideration of the benefits and costs of alternative ways to achieve regulatory objectives. • Consideration of costs is appropriate in deciding alternative methods for achieving a given level of risk. NRC will consider the public health and safety implications of not operating a nuclear facility as well as the potential radiological or other hazards associated with its operation. NRC will emphasize prompt and vigorous enforcement in dealing with licensees who are unable or unwilling to comply with NRC requirements. • Licensees who cannot achieve an adequate level of protection will not be permitted to operate. NRC will not license or permit the continued operation of a facility unless it is confident that, after termination of the operating license, there will be adequate protection of future generations from potential hazards of the decommissioned facility itself and from wastes associated with it. • Licensee initiatives to provide a higher level of public protection than the minimum NRC level will be encouraged and supported. • Maintenance of radiation exposures as low as reasonably achievable under normal conditions is a fundamental objective. • NRC will emphasize measures to minimize the consequences of possible accidents, theft or diversion of nuclear materials, and sabotage or other illegal acts. • The NRC waste management program is critical to the success of an urgent national task, and will be organized and planned to be consistent with the President's policy on waste management. • The focus of NRC research will be on assisting in determining adequate levels of public health and safety protection and exploring ways to achieve improved protection levels. It should not include research that should be supported exclusively by the private sector. The PPPG document expands on the general policy statements, giving detailed planning guidance in such areas as priorities in reactor regulation, achieving greater NRC presence at major licensed facilities, improving emergency response capabilities, and developing improved siting criteria for nuclear plants. This document is being updated for use in developing programs and budget estimates for fiscal years 1983-1987. Defining a Safety Goal The basic question in safety regulation is "How safe is safe enough?" While an answer was not forthcoming from any of the major investigations into the TMI accident, the need for a more precise definition of what is an adequate level of protection for the public health and safety has become more urgent.* *In the final session of the 96th Congress, the Senate passed S.2358, an NRC authorization bill for fiscal year 1981, which would require NRC, after notice and opportunity for public hearing, to develop a safety goal for reactor regulation. There was no corresponding action by the House of Representatives. The Commission's Policy, Planning, and Program Guidance document commits the NRC to developing a safety goal but society must ultimately provide the answer as to what is acceptable. This commitment is as follows: "As the agency responsible for nuclear regulation, the NRC must play the fundamental role leading to the proper determination of what is an adequate level of protection. The NRC must bring its management and technical expertise to bear in assuring that the regulated industry achieves and maintains that protection." (See 1979 NRC Annual Report, pp. 9-10.) The PPPG also states that some basic NRC goals are to define more clearly the level of protection that the Commission believes is adequate based on statutes, public input, and NRC's subjective and quantitative evaluations; to increase efforts to describe to the public the risks of nuclear activities and the uncertainties in judgments of risks; and to seek public advice on the acceptability of these risks. The Commission initially stated its intention to develop a safety policy statement in its transmittal of comments to the President's Office of Science and Technology Policy in November 1979 concerning the President's Commission report on the TMI accident. The project subsequently became a part of the implementation of the TMI Action Plan. In October 1980, the Commission approved a plan (NUREG-0735) formulated by the staff for developing a safety goal for nuclear power plants. The yearlong project involves a search and review of all literature on the subject, contacts and discussions with many public and private organizations, groups and individuals, and analysis and research. While the basic principle of a safety goal may be stated simply as the establishment of a general degree of safety to govern applicable regulations and licensing actions, the development of such a goal is subject to a number of complications. These include gaps in knowledge as to what the risks are, differing philosophical perspectives as to what criteria should be used to define when a risk is "acceptable," issues involving economic and equity considerations, and techniques to make interpretations where there is uncertainty. A preliminary policy statement and supporting information are expected to be published early in calendar year 1981 for public comment. They will serve as the main focus of several regional workshops. RESHAPING THE AGENCY Organizational and procedural changes to support the reordering of priorities, particularly those responding to the TMI accident, continued throughout 1980 and are still in progress. The Commission and EDO The President's Reorganization Plan No. 1 of 1980, responding to recommendations of the Kemeny Commission's report on the TMI accident, cleared the Congress in June and became effective on October 1, 1980. Its thrust is to strengthen the authority of the NRC Chairman relative to the Commission and of the Executive Director for Operations (EDO) relative to the program staff. The Commission retains responsibility for policy. formulation, rulemaking, and orders and adjudication. The Chairman carries out all other Commission functions and is the official spokesman and the principal executive officer of the Commission. In the latter capacity, the Chairman directs and delegates to the EDO responsibility for all administrative functions, distribution of business, preparation of reorganization proposals and budget estimates, allocation of funds, and personnel matters other than those affecting the five major program offices and certain other offices reporting to the Commission. The Chairman has the responsibility, which may be delegated to another Commissioner, for responding to a nuclear emergency. The EDO reports to the Chairman on all matters. The directors of all five program offices (including the Offices of Nuclear Reactor Regulation, Nuclear Regulatory Research, and Nuclear Material Safety and Safeguards, which formerly reported to the Commission through the EDO) now report to the EDO. The heads of Commission-level offices (except Public Affairs and Congressional Affairs, which report to the Chairman) continue to report directly to the Commission. The EDO keeps the Commission fully and currently informed through the Chairman, and all Commissioners have equal access to all agency information. Actions are continuing to fully implement the President's Reorganization Plan, including modification of practices, delegations of authority, and reviews of relevant documents for possible revisions. • Creation of a new Office for Analysis and Evaluation of Operational Data, approved by the Commission in July 1979 and effected during fiscal year 1980. This Office is engaged in analyzing and evaluating operational safety data. associated with all NRC-licensed activities and communicating the lessons of operating experience to all appropriate parties (see Chapter 5). • Creation within the Office of Nuclear Reactor Regulation (NRR) of a number of new elements, as well as consolidation and reorientation of staff activities within existing organizational components (see Chapter 4). A major move was the establishment of a Division of Human Factors Safety to concentrate wholly on the benefits and problems represented by the human element in nuclear operations. The division is concerned with such person-related considerations as control room design, operation procedures, operator and managerial competence, operator testing and licensing criteria. Also, NRR established a Three Mile Island Program Office to direct its activities associated with cleanup operations at the TMI site. • Assignment of responsibility for managing all NRC activities related to emergency preparedness to a new Emergency Preparedness Program Office (EPPO), initially comprising two components: a licensing branch to review emergency plans of applicants for reactor plant licenses and the evaluations performed by the Federal Emergency Management Agency of State and local emergency plans, and a development branch responsible for developing and evaluating policy recommendations and regulatory requirements in this area, as well as developing emergency planning and preparedness guidance and technical support for EPPO. In November 1980, as part of a general reorganization of the Office of Inspection and Enforcement, the emergency preparedness function was transferred to that office and redesignated the Division of Emergency Preparedness. A third component was added to manage the NRC's incident response operations and planning efforts. (See Chapter 3.) accident and initiation of comprehensive improvements in the operation and regulation of nuclear plants. Policy guidance issued in November 1979 specified that no licensing board decisions authorizing issuance of a construction permit, limited work authorization or operating license should be issued except after further order of the Commission itself. In particular, the Commission noted that it would "be providing case-by-case guidance on changes in regulatory policies." During the pause in licensing, the recommendations of several groups investigating the lessons learned from the TMI accident became available. These were incorporated into a "TMI Action Plan' (NUREG-0660, May 1980). In response to further Commission guidance on operating licenses, "TMIRelated Requirement for New Operating Licenses" (NUREG-0694) was published in June. This was superseded by NUREG-0737, "Clarification of TMI Action Plan Requirements," adopted on October 28, 1980, which sets forth requirements for new operating licenses that should be "necessary and sufficient for responding" to the TMI accident. Approved requirements and schedules for operating plants were also issued. It should be noted that some actions to improve the safety of operating plants were judged necessary immediately after the accident and could not be delayed until the Action Plan was developed, although they were subsequently included in the Plan. Many of these immediate actions, after approval by the Commission, have already been taken by licensees and others are scheduled in NUREG-0737 to be completed in the near future. The licensing pause ended on February 29, 1980, with the Commission's approval of a fuel loading and low-power testing license for Sequoyah Unit 1 in Tennessee, followed by similar licenses for North Anna 2 in Virginia and Salem 2 in New Jersey, in April; and for Farley 2 in Alabama in October. Full-power licenses were issued for North Anna 2 in August and for Sequoyah 1 in September. Several other plants were nearing completion or had been completed during the year, of which two were seeking low-power operating licenses. No construction. permits have been issued since the TMI accident; however, the staff was developing plans in December for completing reviews of several applications. The Commission has issued for public comment NUREG-0718, "Proposed Licensing Requirements for Pending Applications for Construction Permits. and Manufacturing License," preparatory to determining policy for proceeding with these applications. During fiscal year 1981 the NRC expects to issue a final version of this report which will identify for pending applicants the necessary and sufficient TMIrelated requirements for construction permits. In House of Representatives Report No. 96-1093 (dealing with the NRC appropriation for fiscal year 1981), the Appropriations Committee's Subcommittee on Energy and Water Development directed the Commission to provide monthly reports on the status of its efforts to carry out its licensing and regulatory duties and to improve the management of its resources. The first such report, covering the period from the time of the NRC's testimony before the committee in April 1980 through mid-November, was forwarded in November. An updated report was transmitted in December. The TMI accident required reprogramming in fiscal year 1980 of resources in the Office of Nuclear Reactor Regulation (NRR) from the review of reactor construction permits and operating licenses to higher priority activities in the TMI Action Plan. The catch-up phase in which NRR is now engaged involves additional in-depth reviews for application of TMI-related requirements. Resource priorities in licensing reviews are being given to the review of near-term operating license applications in order to minimize unnecessary regulatory-related delays in fuel loading schedules. As of the end of 1980, construction was expected to be completed on nine nuclear power plant units over the next two years before the NRC can complete actions on operating license applications for these plants. The resulting delays in issuance of operating licenses, due mainly to hearing activities, are estimated in the range of four to 12 months-or perhaps longer if the adjudicatory process involves resolution of complex and controversial issues. During the fiscal year, utilities requested withdrawal of construction application permits for nine units and an early site review application for two units and terminated plans for two others. In October and November, utilities requested the withdrawal of construction permit applications for three other units, and announced cancellation of two additional units that were under construction. As of December 31, 1980, a total of 163 nuclear power reactors were under NRC regulatory purview, with an aggregate generating capacity of about 157,000 electrical megawatts, as follows: • 68 licensed to operate (excluding 3 shut down indefinitely: Three Mile Island 2, Humboldt Bay and Dresden 1). • 2 licensed for low-power testing. 82 for which construction permits have been Reviews of Operating Reactors During fiscal year 1980, approximately 1,900 reactor licensing actions (amendments of operating licenses) were reviewed and processed. In fiscal year 1981, about 2,500 are expected to be completed. Section 110 of Public Law 96-295, the fiscal year 1980 NRC Authorization Act which became law in June, requires the NRC to develop, submit to Congress, and implement a comprehensive plan for the systematic safety evaluation of all currently operating nuclear power plants. A detailed plan to implement the requirements of P.L. 96-295 is being developed and a status report is expected to be issued for public comment in the Spring of 1981. Under a staff proposal, the ongoing Systematic Evaluation Program (SEP), begun in 1977, would be integrated into the new plan. In the SEP, 11 older licensed operating reactors are being reviewed in light of current licensing criteria to determine the need for backfitting. It is currently scheduled for completion in 1982. During 1980 the Commission began to examine whether additional protection requirements should be imposed on certain reactors located near densely populated areas. In February 1980, the Commission issued a Confirmatory Order for the Zion (Illinois) and Indian Point (New York) plants-each facility comprising two units-requiring certain plant modifications, including means for providing protection from radiological releases in the event of a core-melt accident. The licensees are performing risk assessments to demonstrate that the aggregate public risk from these facilities is not greater than that predicted for the reference pressurized water reactor analyzed in the Reactor Safety Study (WASH-1400). In May 1980, the NRC requested the applicant for the Limerick plant, under construction in Pennsylvania, to make a preliminary risk assessment taking into account significant design differences between its facility and the reference boiling water reactor in the Reactor Safety Study. The licensees' studies will be reviewed by the staff to determine if these facilities need to be modified. In another action, affecting all operating power reactors in the United States, the NRC in October ordered amendment of technical specifications of operating licenses to require the environmental qualification, and documentation therefor, of all safetyrelated electrical equipment. The modifications require the licensees to: • By December 1, 1980, have available at a central location complete and auditable records describing the qualification method used in sufficient detail to document the degree of compliance with NRC requirements. • Assure by June 30, 1982, that the reactor safety-related electrical equipment be qualified to meet NRC requirements for withstanding service environments including extreme heat, steam, and radiation that might result from loss-of-coolant or main-steam-line-break accidents inside containments or high-energy-line breaks inside or outside containments. The staff's action stemmed from a Commission Memorandum and Order of May 23, 1980, dealing with its reconsideration of a November 1977 petition from the Union of Concerned Scientists which sought action regarding fire protection and protection. of electrical equipment from accident environments. (See 1978 NRC Annual Report, pp. 32-34 and 121124.) Also, the final rule on fire protection programs for operating nuclear power plants was issued in November (45 Federal Register 76602). It provides for upgrading fire protection at plants licensed to operate prior to January 1, 1979, by requiring the resolution of certain generic issues in fire protection safety. |