Principles of Good Regulation: Efficiency

Maureen Wylie
Chief Financial Officer

The American taxpayer, the rate-paying consumer, and licensees are all entitled to the best possible management and administration of regulatory activities. The highest technical and managerial competence is required, and must be a constant agency goal. NRC must establish means to evaluate and continually upgrade its regulatory capabilities. Regulatory activities should be consistent with the degree of risk reduction they achieve. Where several effective alternatives are available, the option which minimizes the use of resources should be adopted. Regulatory decisions should be made without undue delay.

graphic-pogr_efficiencyThe principles of good regulation are critically important to the day-to-day operations of the agency. They’re our guide posts. They’re touchstones to help us be sure that we’re properly executing our mission.

As the chief financial officer, I am partial to the efficiency principle. It is one of the reasons that I come to work every day. We are not only federal employees but also taxpayers and citizens, so we should be sure that we’re taking care of the nation’s resources appropriately. In addition to the payments we receive from our licensees, the NRC also receives an appropriation from the Congress each year. It’s “your money” and “our money” at the same time. Efficiency as we execute the agency’s work supports both the public good and the expectations we have as individuals for the best value we can offer.

As part of our focus on efficiency, the NRC has an initiative underway to improve our ability to plan and execute our mission. Known as Project Aim, this is an effort to find ways to better adapt to a dynamic environment and changes in workload. With direction from our Commissioners, the staff is working to “right-size” the agency to ensure we have the skills we need to accomplish our mission; to use agency resources more wisely; to improve the timeliness of our decision-making and respond quickly to changing conditions; and to promote unity of purpose through clearer agency priorities.

As Steering Committee co-chair, I have seen a lot of creativity from the staff as we work though the initial 19 tasks approved by the Commission, especially as we work to make processes more efficient and to shed unnecessary work. By the time we complete this effort, the NRC will have saved a total of nearly $50 million. That’s real money in my book.

principles-of-good-reg-web-screen_1This work requires us to find the right balance to make sure we are meeting our safety mission while delivering results in a timely and cost-effective way. As an example, we aim to review applications in a timely manner while ensuring safety and security. Meeting this goal depends in part on receiving complete, high-quality applications. Many of our programs have implemented acceptance reviews, which give NRC staff a chance to make sure an application is complete before we begin our detailed technical reviews. If we find things we think are missing or would otherwise slow down our technical review, we ask the applicant to supplement their application. This process saves the licensee money and allows our staff to work on other activities until that application is ready.

For me one of the most important purposes of the principles is cultural. There are many different roles here at the agency. You hear people talk about being a technical or Commission office, as compared to people who provide corporate support. Or the distinction between people in the regions and those here in Rockville, Md. But, no matter your role, the principles apply to all of us. They are a unifying aspect to our culture. I can sit in a meeting with my colleagues in operating reactors or in nuclear materials and wastes and we’d still have an important shared vocabulary that is meaningful and helps us transcend our individual goals and move together toward the right solutions.

This post is the third of five that will explore each of the five principles separately. For the history of the Principles of Good Regulation, read this post.

Projected End Date for Indian Point Plant Comes into Clearer Focus

Neil Sheehan
Public Affairs Officer
Region I

April 30th will mark a decade since Entergy submitted a license renewal application to the NRC for the Indian Point nuclear power plant. During the intervening years, thorough NRC staff reviews and a complex hearing on the proposal by the Atomic Safety and Licensing Board, the quasi-judicial arm of the NRC, have moved steadily forward.

indianpointBut then came an announcement on Jan. 9 by Entergy, the plant’s owner, and New York state. Under an agreement reached between the two parties, Indian Point Unit 2 would permanently shut down by April 30, 2020, and Indian Point Unit 3 by April 30, 2021. (Indian Point Unit 1 ceased operations in 1974).

This represents an earlier retirement of the reactors than proposed in the company’s license renewal application, which sought an extension of Unit 2’s operating license to April 2033 and Unit 3’s to April 2035.

Entergy cited the low cost of natural gas and rising operating costs as primary factors in its decision. The company said it would instead pursue a license renewal for Unit 2 to 2024 and for Unit 3 to 2025 to allow operation until then in the event the plant’s power output is still needed.

Company officials offered assurances that there would be continued adherence to safety requirements for the remainder of the plant’s operational life. NRC inspectors will be on hand to independently verify that all safety commitments are being met.

The NRC has three full-time Resident Inspectors assigned to Indian Point. We also send specialist inspectors to the facility to assess such areas as security, radiation safety and reactor operator training.

Agency staff will also have to complete their license renewal reviews and the hearing process will have to be brought to a conclusion. With respect to the latter, a motion to withdraw the remaining contentions in the hearing process is expected today.

It will be essential for Indian Point employees to maintain a strong focus on safety no matter the plant’s eventual end date. It will be incumbent upon the NRC to ensure that is occurring.