UNRESTRICTED

2016-2026 10-YEAR INTEGRATED PLAN SUMMARY

This document contains forward-looking statements, and many proposed projects are subject to rigorous regulatory review and licensing processes. This document is intended to evolve through time. CRL-502000-PLA-001, REVISION 0, 2017 APRIL 18 TABLE OF CONTENTS

1. Executive Summary...... 1 4.2. Scope and Context...... 43

2. Acronyms...... 21 4.2.1. Energy...... 43 4.2.2. Health...... 48 3. Introduction...... 23 4.2.3. Safety and Security...... 51 3.1. Vision...... 24 4.2.4. Environment...... 56 3.2. Strategy Overview...... 26 4.2.5. Federal Programs...... 58 3.2.1. Transformation...... 26 4.2.6. Commercial...... 59 3.2.2. Science and Technology and Commercial 4.2.7. S&T Capabilities...... 61 Opportunities...... 27 4.3. Assumptions, Constraints 3.2.3. Decommissioning and and Enablers...... 69 Waste Management...... 29 5. Decommissioning 3.2.4. Site Development...... 29 and Waste Management...... 71 3.3. Context and Scope...... 29 5.1. Objective...... 72 3.3.1. Funding...... 29 5.2. Strategy...... 72 3.3.2. Nuclear Liability...... 29 5.3. Chalk River Infrastructure 3.3.3. NRU Closure...... 30 Decommissioning...... 74

4. Science and Technology...... 35 5.4. Waste Management...... 76

4.1. Overview and Strategy...... 36 5.5. Fuel and Special Nuclear Material Management ...... 83 4.1.1. Organization and Management...... 40 5.6. Prototype Reactors...... 85

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5.7. Environmental 6.4. Assumptions, Constraints Remediation...... 86 and Enablers...... 116

5.8. Historic Waste Programs...... 89 7. CNL Management and Operations...... 117

5.9. Reduction of Nuclear 7.1. Objective...... 118 Liability...... 94 7.2. Strategy...... 118 5.10. Assumptions, Constraints & Enablers...... 94 7.3. Human Resources - People...... 119 7.4. HSSEQ...... 121 6. Chalk River Site Development...... 97 7.5. Operations...... 121 6.1. Objective...... 99 7.6. Program Office...... 124 6.2. Strategy...... 102 7.7. Engineering...... 125 6.2.1. Approach...... 102 6.2.2. Scope Definition...... 103 7.8. Procurement...... 126 6.2.3. Integration Across 7.9. Finance...... 129 Missions...... 104 7.9.1. Risk...... 160

6.3. Projects...... 107 7.10. Information Technology...... 132

6.3.1. New Build...... 107 7.11. Communications and 6.3.2. Facility Revitalization...... 112 Stakeholder Relations...... 134

6.3.3. Services and Utilities 8. Summary and Conclusion...... 135 Program...... 112 8.1. Key Risks and Assumptions...... 136 6.3.4. Bridging...... 114 6.3.5. Equipment...... 115

iii LIST OF EXHIBITS

Exhibit 1-1: CNL’s S&T Programs Exhibit 4-5: Safety and Security Program Strategic Objectives Exhibit 1-2: CNL’s Six S&T Capabilities Exhibit 4-6: Environment Program Strategic Exhibit 1-3: Rendering of 2026 Objectives Development Scenario Exhibit 4-7: External Factors and Mitigation Exhibit 1-4: Advanced Nuclear Material Strategies Research Centre future site Exhibit 4-8: Capabilities Model Exhibit 1-5: B350 (The Harriet Brooks Building), the newest laboratory Exhibit 4-9: CNL’s Six S&T Capabilities complex constructed on the Exhibit 5-1: Chalk River Built-Up Area Chalk River Site Exhibit 5-2: New Near Surface Disposal Exhibit 1-6: Chalk River Built-Up Area Facility Rendering Exhibit 1-7: Rendering of the future Near Exhibit 5-3: Moving legacy waste Surface Disposal Facility Exhibit 5-4: Visualization of Proposed Waste Exhibit 1-8: Visualization of Proposed Management Facility Port Hope Waste Management Facility Project Port Hope Project Exhibit 6-1: Rendering of the Chalk River Exhibit 1-9: Enablers Laboratories campus as projected Exhibit 3-1: Integrating Federal and for 2026 Commercial Priorities Exhibit 6-2: Capital Planning Principles Exhibit 3-2: NRU Safe Shutdown State Exhibit 6-3: New Vehicular and Pedestrian Schedule Overview Networks to Avoid Conflict Exhibit 4-1: Outcomes of S&T Strategic Exhibit 6-4: Flexible Lab in B350 Initiatives Exhibit 6-5: Illustration of the Vision for 2026, Exhibit 4-2: CNL’s S&T Programs Looking East from the Existing Exhibit 4-3: Energy Program Strategic Open Space in Front of B700 Objectives Exhibit 6-6: Gating and Sanctioning Process Exhibit 4-4: Health Program Strategic Objectives

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Exhibit 6-7: Planning map from D&WM Exhibit 6-16: B215 replaces current S&T Annual Program of Work and capabilities located within B250 Budget shows appropriate Exhibit 6-17: Rolling mill installed in NFFF priority of removal for new builds Exhibit 6-18: Isometric of New Sanitary Sewage Exhibit 6-8: 2017-18 Facilities and S&T Treatment Facility Capabilities Exhibit 6-19: Natural gas supply line Exhibit 6-9: Early Advanced Nuclear Material installation Research Centre schedule projection based on initial Exhibit 6-20: Concrete slab for Domestic water planning assumptions reservoir Exhibit 6-10: Early Business Hub schedule Exhibit 6-21: The Base Infrastructure Program projection based on current will be driven through three planning assumptions work streams Exhibit 6-11: Business Hub Concept showing Exhibit 6-22: H5 Autoclave two future phases for growth Exhibit 7-1: Enablers or partnership facilities Exhibit 7-2: Five key themes of the functional Exhibit 6-12: Early Support Facility schedule goal projection based on current planning assumptions Exhibit 7-3: CNL’s Strategy is built around Missions, Services and Exhibit 6-13: Early Logistics Facility schedule Transactions projection based on current planning assumptions Exhibit 7-4: Strategic Principles Exhibit 6-14: Proposed concept of a new Exhibit 7-5: Three categories for IT spending Logistics Facility at the Chalk Exhibit 8-1: Risk, Consequence, Probability, River Laboratories outer gate and Mitigation Exhibit 6-15: A portion of B350 opened in September 2016

v For more than 70 years, nuclear technology has evolved to meet the needs of Canada and the world for clean, reliable energy; sustainable economic growth; and public health, safety and security.

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1 EXECUTIVE SUMMARY

1 1 | EXECUTIVE SUMMARY

A PROUD PAST AND A BRIGHT FUTURE

Canada has a proud heritage in the nuclear Limited (AECL) was created by the Government industry. Canadian Nuclear Laboratories Ltd. of Canada in 1952 to promote peaceful uses of (CNL) has been instrumental in building Canada nuclear energy. Canada’s first nuclear power into a nuclear nation. Through its expertise in plant, a partnership between AECL, Ontario physics, metallurgy, chemistry, biology, ecology Hydro and Canadian General Electric, went and engineering, CNL has enabled Canadians to online 10 years later. benefit from the development and deployment Since then, nuclear power has featured of peaceful and innovative applications of prominently in Canada, supplying the majority nuclear technology. of Ontario’s energy. The Canadian Deuterium For more than 70 years, nuclear technology Uranium (CANDU) reactor technology generates has evolved to meet the needs of Canada nuclear power in seven countries. Public health and the world for clean, reliable energy; and environmental responsibility have always sustainable economic growth; and public health, been at the forefront of Canada’s approach to safety and security. Beginning in 1942 with a nuclear science and technology, as exemplified collaboration between British and Canadian in the pioneering work in the treatment of nuclear researchers, the concept for a national cancer using cobalt-60 radiation therapy in the research laboratory was born. By 1945, the 1950s. Since that time, CNL has produced about Chalk River Laboratories in Ontario featured one-third of the world’s medical isotopes and the first operational nuclear reactor outside of about half of the North American supply. the United States. Atomic Energy of Canada

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CNL’s diverse capabilities have contributed consolidated and modernized over the next to the full spectrum of nuclear technology in 10 years. The transformed CNL Chalk River site Canada: mining, fuel production, reactor design, will support the nuclear research needs of the nuclear power generation, decommissioning, Canadian Government and evolving science and remediation, waste management, nuclear technology needs of the Canadian and global medicine, materials science, imaging, nuclear nuclear industry through: safety, regulation and governance. ♦ Providing global sustainable energy solutions, including the extension of The commitment, dedication and technical reactor operating lifetimes, hydrogen excellence of CNL’s people have established this energy technologies, and fuel development proud heritage. CNL is now embarking on a new for the reactor designs of tomorrow chapter in its long and proud history, building on ♦ Demonstrating the commercial viability the strong foundation set by those visionaries of advanced reactors, including the small and innovators of the past. and very small modular reactor (SMR)

With a safe and permanent reduction of the ♦ Continuing support of radiochemical therapies, including collaboratively nuclear liability legacy already underway at pioneering new alpha therapies several locations and the imminent closure of the National Research Universal reactor ♦ Protecting Canada’s environment by in 2018, Canada’s premier nuclear laboratory removing and responsibly managing at the Chalk River site will be strategically nuclear liabilities

3 1 | EXECUTIVE SUMMARY

LIFE BEYOND NRU CLOSURE including its standby production capability of molybdenum-99. Approximately 30 NRU-related ancillary buildings and structures, along with

Over the past 60 years, the National the main reactor facility will be turned over to Research Universal (NRU) reactor at Decommissioning & Waste Management under Storage With Surveillance by March 31, 2021. Chalk River has been one of the largest

and most versatile high-flux research To offset the NRU closure, CNL’s strategy includes reactors in the world. It has been expanding its advanced fuels manufacturing capabilities to leverage and refocus fuels and used to irradiate materials to produce molybdenum-99 target fabrication capabilities in medical and industrial radio-isotopes; support of other reactor operators and isotope suppliers. These additional capabilities will support generate neutron beams for Science the development, licencing and commercialization and Technology applications; and test of advanced reactor technologies to support nuclear fuels and reactor materials to Canada’s energy decarbonization goals. This will also enable CNL to supply Low-Enriched Uranium support current and advanced nuclear molybdenum-99 targets to global markets to reactor designs. support the government’s non-proliferation goals, especially the reduction or elimination of the The NRU will cease operation on March 31, global need to use Highly Enriched Uranium. 2018, ending its three main missions of isotope production, fuel testing and materials research,

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RETOOLING CNL'S S&T CAPABILITIES as well as Canada’s science-informed regulatory framework that is receptive to new technologies.

Through careful management and CNL will position itself as a national laboratory strategic development over the next that serves federal departments and agencies, with the flexibility to engage with and compete in 10 years, CNL will build on its historical and commercial markets. This flexibility is required to current nuclear leadership role to transform the sustain state-of-the-art infrastructure, which will nuclear future of Canada. CNL must renew and attract revenue from domestic and international grow its Science & Technology (S&T) capabilities, commercial customers. The combined insight as well as extend its global reach. CNL’s approach from federal programs with national and global will begin with its current strategic advantage commercial businesses will place CNL in a position comprising the globally recognized technical for innovation in the global nuclear arena, as well experience of its people, its licenced nuclear site, as being a trusted advisor to the Government of and the specialized facilities and infrastructure, Canada.

Of CNL’s existing capabilities, some are differentiating as evidenced by features such as S&T THEM being a unique single-market player and having AL E A R RE deep skills, while others are not unique but DE Supporting the A E development of S required to meet and grow beyond the federal and F biological applications and understanding the implications commercial revenue targets. of radiation on living things Enhancing national and global security by supporting non-proliferation and counter-terrorism Nuclear preparedness and emergency response MARK Supporting safe, secure and responsible use IAL ET and development of nuclear technologies RC SE E CT Supporting environmental M O stewardship and radioactive M R waste management O S C ENERGY

HEALTH

SAFETY & SECURITY ENERGY ENVIRONMENT HEALTH

SAFETY & SECURITY

ENVIRONMENT

C N S L S AM &T PROGR Exhibit 1-1: CNL’s S&T Programs

5 1 | EXECUTIVE SUMMARY

Informed by Canadian and global trends and prospects, CNL will combine federal and commercial priorities and needs into focused, application-driven research and technology development in four programs:

ENERGY:

♦ Life Extension and Long-term Reliability ♦ Small Modular Reactors: CNL’s goal is to of Existing Reactors: Building on Canada’s demonstrate the commercial viability of the 50-year investment in S&T activities related small modular reactor by 2026, with a view to CANDU reactor technology, CNL will to positioning Canada to take a leadership support life extension and long-term role in this emerging nuclear technology reliability of the existing fleet of CANDU with CNL recognized globally as a leader in reactors, domestically and internationally, SMR prototype testing and S&T support. and expand to include support for other reactor designs. ♦ Decarbonization of the Transport Sector and Remote Communities in Canada: ♦ Advanced Fuel Fabrication: To support Building on capabilities developed to long-term reliability of existing reactors support hydrogen safety and heavy water and the development of advanced reactors, and tritium management in CANDU advanced nuclear fuel concepts are being reactors, CNL will play a leading role in the developed worldwide. These advanced demonstration of hydrogen-based bulk fuels offer higher performance, improved transport by 2020. failure tolerance; resistance to proliferation; increased safety and accident tolerance; and are recycled or recyclable. CNL will develop new methods to fabricate next-generation fuels.

HEALTH:

♦ Radiobiology Research: CNL will continue is targeted at just the cancer cell, unlike to advance the understanding of the effects existing treatments that often involve of low doses of radiation on humans, the radiation of all cells in the vicinity of a health effects of uptakes of radionuclides, tumor, healthy and cancerous. Alpha- the therapeutic treatments to reduce emitting isotopes of the most interest for radiation doses in case of human intake this therapy are rare, toxic heavy metals, of radioactive material, and the research and must be activated and processed in aimed at other potentially beneficial uses of specialized facilities. Chalk River will have radiation for human health. the facilities to exploit this opportunity through completion of Building 350 and ♦ Alpha Research Institute: The benefit of revitalization of some existing research targeted alpha therapy for battling cancer facilities. and other diseases is that the radiation

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♦ Nuclear Cyber Security: As a nuclear ♦ Centre for Nuclear Forensics and Response: nation, Canada has responsibilities for By 2019, CNL will establish a centre for safety, security and emergency response. government agencies and commercial CNL will support the Government of partners to develop, test, calibrate and Canada in meeting its obligations and will validate nuclear forensics, non-proliferation, also commission a nuclear cyber security security, and response technologies and testing facility by 2018, with commercial materials. deployment of a nuclear industrial control cyber intrusion detection and mitigation system by 2022.

ENVIRONMENT:

♦ Environmental Stewardship: CNL ♦ Radioactive Waste Management: CNL will expand understanding of how will support both waste generators and radioactive material transports itself government agencies in developing a through ecosystems following planned or long-term waste strategy that enables the unplanned releases, and how this varies design and operation of waste management with isotopes, physical and chemical forms, facilities. CNL will develop Environmental and environments throughout Canada. In S&T to increase the efficiency of addition to supporting current government decontamination and packaging practices priorities, these activities will ultimately to minimize low-and intermediate-level be used to inform the development and waste and spent-fuel volumes generated. deployment of small modular reactors to minimize the liability of future technologies.

7 1 | EXECUTIVE SUMMARY

CNL will strategically renew and grow its differentiating capabilities to assure long-term sustainability and meet the current and emerging needs of federal departments and agencies. CNL’s six S&T capabilities are underpinned by diverse These differentiating capabilities will drive CNL’s future identity and success. expertise that will evolve to meet the demands of industry and the government.

DIFFERENTIATING ENABLING

Nuclear Advanced Hydrogen & Radiobiology, Safety, Nuclear & Nuclear Nuclear Fuels Hydrogen Radioecology Security & Systems Chemistry Ap- & Materials Isotopes & Dosimetry Risk Engineering plications Research Management Management

Fuels & Hydrogen Ap- Reactor Safety Nuclear Analytical Materials Radiobiology plications & Experiments & Systems Chemistry Irradiation Technology Analysis Analysis

Advanced Radioecological Fuel Tritium Computing, Nuclear Nuclear Power Monitoring Fabrication Handling Modelling & Instrumentation Plant Chemistry and Testing Simulation

Radiological Tooling Systems Fuel Testing & Non-prolifera- Research & As- for Hot Performance tion Studies sessment Environments

Non-destructive Irradiated Evaluation Cyber Materials Technology Security Testing for Severe Environments

Nuclear Regulatory & Materials Component Compliance Testing Design & Support Testing

Forensics & Detection

Exhibit 1-2: CNL’s Six S&T Capabilities

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REVITALIZATION OF A NATIONAL ICON

As part of the 10-year vision to transform CNL’s Chalk River site into a world-class, right-sized and sustainable National Nuclear Laboratory delivering science and technology, CNL will be implementing a strategic capital investment program, which is mission- driven and risk-based, while sustaining readiness of S&T-enabling capabilities.

Exhibit 1-3: Rendering of 2026 Development Scenario

9 1 | EXECUTIVE SUMMARY

Through full delivery of the 10-Year Site Master The site transformation will be realized through Plan, CNL will transform the site to a modern strategic capital investment by the Government National Nuclear Laboratory campus that: of Canada over a 10-year period, with possible augmentation through commercial funding and ♦ Creates a collaborative environment to public-private partnerships. foster innovation and interdisciplinary scientific research The first key step in the site revitalization was to create a solid Site Master Plan that meets ♦ Consolidates and co-locates like activities the goals of the site development program to improve efficiency; enable internal and external collaboration; cut overhead costs and the objectives of the S&T Mission while through a reduced footprint; and transfer complementing delivery of the D&WM mandate. redundant facilities and assets to the The new Site Master Plan incorporates flexibility in Decommission and Waste Management facilities and locations for future developments, Mission, as appropriate should science, business or collaboration needs change. It builds a robust infrastructure base for ♦ Reduces the material inventory and Storage the new campus that will ensure mission-critical With Surveillance costs of remaining facilities and research capabilities are maintained infrastructure for many years to come. ♦ Optimizes cost of operation and Investments are justified by a business case. Each maintenance of both the new and existing facilities at the Chalk River site business case is managed and updated through a Gating and Sanctioning process by integrated ♦ Develops flexible, modern and sustainable project teams assigned to each investment facilities that are reconfigurable to meet pursuit. Ongoing success of the investments is changing needs as new S&T and business managed through industry-proven earned value opportunities arise management practices.

10 2016-2026 10-YEAR INTEGRATED PLAN • CRL-502000-PLA-001, REVISION 0, 2017 APRIL 18 UNRESTRICTED The approach for capital development has been subdivided into five main areas to allow for grouping of similar investments:

NEW BUILDS The following new facilities have been identified as key enablers within the 10- Year site development plan, some of which are already underway or nearing 1 operational status: ♦ Advanced Nuclear Material Research Centre

♦ B350 Harriet Brooks Building

♦ B215 Tritium Laboratory

♦ Business Hub

♦ CNL Support Facility (Maintenance)

♦ Logistics

Exhibit 1-4: Advanced Nuclear Material Research Centre future site

FACILITY REVITALIZATION

Several existing facilities on the site are assessed as “keeper” facilities, meaning that refurbishment and upgrade provide more value than decommissioning and replacement with new facilities. These facilities are: 2 ♦ B320/330 Chemistry Support Laboratories (upgrades)

♦ B513 and B524 Biological Research Laboratories (upgrades)

♦ B570 Waste Treatment Centre and associated facilities (capital investment and upgrades)

♦ B405 Nuclear Fuel Fabrication Facility for plate fuel development and proof of principle (Investment)

11 1 | EXECUTIVE SUMMARY

SERVICES AND UTILITIES The existing infrastructure is in an aged condition. Upgrades to the natural gas, domestic water supply and the sanitary sewer treatment facility are already well underway and ready for expansion to support the decommissioning of some facilities and construction of new facilities. A new electrical switchyard and very efficient tri-generation facility will come online in support of new construction, while also feeding short- and longer-term infrastructure.

This investment will help reduce the overall site operating costs while ensuring reliable services are available to facility operators.

BRIDGING Bridging activities are those that are required to keep the site operating 4 effectively until the new or revitalized facilities become operational. The main driver within this work package is the Shielded Facilities Refurbishment Project. This project is required to perform ongoing upgrades to the B234 Universal Cells and the B375 Fuels and Materials Hot Cells to ensure the maintenance of the current S&T and Business mandates in the current Hot Cell facilities. These facilities are required until the Advanced Nuclear Materials Research Centre is constructed, at which time they will be transitioned to decommissioning.

Other miscellaneous bridging activities include crane, ventilation system, boiler, steam condensate and compressed air upgrades; and emergency power supply and site utility upgrades. These all ensure the safe ongoing operation of site facilities and infrastructure that will transfer to D&WM as part of the overall liability reduction.

Investment in this area will be minimized without jeopardizing S&T capabilities to ensure available capital funds are focused on longer-term facilities and improving the 2026 campus.

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EQUIPMENT To maintain the current assets required to perform the S&T mandates of the site, a continued capital investment is required to acquire new equipment for replacement of 5 obsolete or aging equipment. In addition to the S&T equipment investment, there is a similar equipment investment required to ensure that Health, Safety, Security, Environment and Quality Missions are equipped and ready to support federal S&T endeavours and third-party commercial customer needs.

CNL will continue to focus on sustaining and revitalizing core capabilities and establishing a financially feasible plan for efficient use of existing infrastructure.

Exhibit 1-5: B350 (The Harriet Brooks Building), the newest laboratory complex constructed on the Chalk River Site

13 1 | EXECUTIVE SUMMARY

A PERMANENT SOLUTION TO ♦ Consolidating Intermediate-Level Waste and used fuel for long-term storage NUCLEAR LIABILITY ♦ Repatriating Special Nuclear Material to the United The Decommissioning and Waste Management division States will transform how those activities are performed at CNL in order to accelerate the reduction of AECL’s CNL will accelerate decommissioning, radioactive waste and decommissioning liabilities, allowing new facilities to be constructed at Chalk River environmental restoration and waste and the S&T Mission to flourish. Strategic priorities management projects based on sound waste include: management and environmental principles. ♦ Improving integration of D&WM activities Expertise in the following areas will ♦ Constructing and operating the Near Surface enable this: Disposal Facility

♦ Establishing an Integrated Waste Strategy for all 1 CHALK RIVER INFRASTRUCTURE CNL-managed waste DECOMMISSIONING

♦ Aligning decommissioning and environmental CNL will focus on early reduction of liabilities in the remediation to International Best Practice Supervised Area footprint to build a skilled workforce, ♦ Accelerating remediation of Waste Management remove redundant buildings, and clear space for S&T Areas and other affected areas and supporting facilities.

Exhibit 1-6: Chalk River Built-Up Area

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Decommissioning will be coordinated with capital ♦ Long-Term Waste Management and Disposal: A project timelines to provide the space required for key enabling action for CNL will be the accelerated both permanent new facilities and temporary enabling development of the Near Surface Disposal Facility facilities. at the Chalk River site as a priority initiative. This facility will provide disposal capacity for low-level Until the Near Surface Disposal Facility is operational in and other suitable waste streams that meet the fiscal year 2020-21, decommissioning in the Controlled Near Surface Disposal Facility's waste acceptance Area will focus on minimizing radiological waste and criteria. removing areas and facilities of high concern. Once the Near Surface Disposal Facility is available, CNL The plan for the NSDF and other long-term will commence large-scale demolition work in the management and disposal facilities is to develop Controlled Area. the approach and build the infrastructure in harmony with the Integrated Waste Strategy By 2026, significant progress will have been made in and the D&WM Detailed 10-Year Plan. The large decommissioning redundant infrastructure at Chalk investment required for the NSDF must align with River, with the site featuring: overall liability reduction and spend plans, and build on the experience gained on the similar Port ♦ More than 120 buildings turned over for Hope and Port Granby projects. decommissioning By 2021, one of CNL’s key achievements will be ♦ More than 40 buildings decommissioned and the construction and commissioning of the NSDF. demolished in the Supervised Area This will include handover of NSDF and its Waste ♦ More than 80 buildings decommissioned and Water Treatment Plant to Waste Operations, demolished in the Controlled Area and emplacement of the first active wastes and operational Waste Water Treatment Plant. ♦ The NRU operating in Storage With Surveillance state ♦ Legacy Waste Processing & Storage: CNL will continue to provide cradle-to-grave waste ♦ The National Research Experimental reactor processing and storage services that protect the decommissioned to an agreed end state environment, comply with regulations, and ensure public health, safety and security for ♦ Controlled Area footprint reduced in line with decommissioning plan

2 WASTE MANAGEMENT

♦ Waste Programs: CNL will develop and implement an Integrated Waste Strategy. Development of requirements and processes will ensure that activities involving the planning, handling, processing, transporting, storage and disposal of wastes are performed in a manner that protects workers, the public and the environment, and are in compliance with applicable regulatory and licence requirements. Exhibit 1-7: Rendering of the future Near Surface Disposal Facility

15 1 | EXECUTIVE SUMMARY

♦ future generations of Canadians. In addition to materials as they are specified by AECL (such as HEU the provision of ongoing cost-effective waste scrap, boosters or plutonium compounds). By 2023, all management services and development of fuel baskets in the Concrete Canister Storage Facility at activities identified to address gaps in the waste Whiteshell will be transported and stored at Chalk River management lifecycle, 2021 to 2026 will include: until a disposal option is available.

»» Ongoing surveillance and monitoring of the Waste Management Facilities 4 PROTOTYPE REACTORS » » Operation of the Near Surface CNL will maintain the security and safety of the Douglas Disposal Facility Point and Gentilly-1 sites in accordance with applicable licence requirements, and progressively reduce the cost »» Characterization and segregation of existing of Storage With Surveillance activities and site hazards. stored waste in Shielded Modular Above The Detailed Decommissioning Plan was submitted Ground Storage and bunkers to the Canadian Nuclear Safety Commission in Fiscal »» Consolidation of Intermediate-Level Year 2016-17 for approval to decommission non-nuclear Waste storage infrastructure and equipment. The plan is to perform decommissioning in two phases: Phase 1 (non-nuclear), »» Operation of groundwater and waste water commencing in Fiscal Year 2017-18 provided CNSC treatment facilities approval and availability of funds, and Phase 2 (nuclear).

♦ Stored Liquid Waste: CNL will safely remove The Douglas Point and Gentilly-1 reactor sites will be and process defined legacy radioactive liquid maintained in Storage With Surveillance beyond 2026. wastes (240 cubic metres) on the Chalk River site, Based on available funding, a number of the ancillary and decommission the associated Stored Liquid buildings at both Douglas Point and Gentilly-1 will be Waste tanks and structures. The resulting waste targeted for demolition by 2026 with the goal of sealing product will be transferred to interim storage if the reactor buildings and significantly reducing the not suitable for immediate disposal in the Near ongoing Storage With Surveillance costs. Surface Disposal Facility, and the SLW facilities will be decommissioned.

5 ENVIRONMENTAL REMEDIATION 3 FUEL AND SPECIAL NUCLEAR CNL will progressively reduce the risk and liability to the MATERIAL MANAGEMENT government through prudent management and cleanup CNL will repatriate Highly Enriched Uranium fuel stored of legacy contaminated and affected sites at Chalk at the Chalk River site to eliminate all future storage, River. Targeted remedial actions have been executed to reprocessing and disposal costs, and discharge the reduce environmental impacts; however, there remains liability approximately 50 years earlier than planned. a significant amount of buried waste, soil contamination This accelerated schedule will assure the availability and groundwater contamination in discrete locations of key information and records, take advantage of across the Chalk River site. Additional remedial actions operational knowledge, eliminate ongoing surveillance will be taken to further reduce risks to the environment. requirements, and prevent future degradation of these By 2026, remediation activities for Waste Management fuel materials. Area A will have been initiated, and remedial actions CNL will repatriate any additional HEU and Plutonium for WMA F and the Liquid Dispersal Areas will have been completed. Where warranted, remedial actions

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for the affected lands and special burials will have Waste Management Facilities being constructed been completed. The ability to carry out this work during Phase 2, and is intended to last many will depend on availability of the NSDF, including decades. appropriate staging areas to deal with large quantities of contaminated soil. Additionally, the efficiency and ♦ Low-Level Radioactive Waste Management cost-effectiveness of this work will be reinforced by Office: CNL will manage the Low-Level effective use of resources throughout Decommission Radioactive Waste Management Office program and Waste Management, and by a greater focus on of work related to historic Low-Level Radioactive integrated project teams. Wastes that are the responsibility of the Government of Canada. Tasked with operating and monitoring interim and long-term waste 6 HISTORIC WASTE PROGRAMS management facilities, CNL will deliver Interim Waste Management programs and remediation ♦ Port Hope Area Initiative: Under the Port Hope projects in the Greater Toronto Area, along Area Initiative, CNL will remediate historic Low- the Northern Transportation Route, and in the Level Radioactive Waste located at existing waste community of Port Hope. CNL will also provide management facilities in Port Hope and Port technical and policy advice to AECL and address Granby, both in Ontario, as well as a number of ongoing public information needs related to sites located throughout Port Hope. historic Low-Level Radioactive Wastes.

Defined by a legal agreement between the CNL’s mandate is to reduce the nuclear liability. At Government of Canada, the Municipality of share transfer, the Liability Cost Estimate (LCE) value Port Hope and the Municipality of Clarington, was estimated to be in the order of $6.2 billion, and the initiative has three distinct phases. Phase this estimate may change as the scope clarity and 1 (regulatory approvals and planning) is now estimate quality improves during execution. CNL’s complete, while the scope of Phase 2 (enabling aim is to discharge the liability in the most efficient activities, construction and remediation) is manner. currently underway. Phase 3 includes long-term maintenance and monitoring of the Long-Term

Exhibit 1-8: Visualization of Proposed Waste Management Facility Port Hope Project

17 1 | EXECUTIVE SUMMARY

This will be achieved by: COMMERCIALLY COMPETITIVE IN THE

♦ Decommissioning and demolition of multiple INTERNATIONAL ARENA buildings. Each of these buildings has a cost associated with it in the LCE. CNL will become commercially competitive

♦ Significant additional reduction in the overall on the world stage through its differentiating LCE from demolition activities because of CNL’s capabilities in advanced nuclear materials and accelerated schedule. This will reduce the costs associated with Storage With Surveillance. fuels; radiobiology; hydrogen; and nuclear safety and security. ♦ Operation of the Near Surface Disposal Facility by 2021, at which point waste disposal cost should CNL’s projected commercial revenue targets are drop significantly; current plans assumed costly underpinned by a detailed market analysis that off-site treatment services. investigated current and projected CNL capabilities ♦ Safely decommission the Whiteshell Laboratories against known market needs that have funding to site and the Nuclear Power Demonstration support advancing problem solutions. reactor. This will result in significant savings to the LCE. To achieve these revenue projections, CNL intends to use established commercial business management and market development strategies for maintaining existing market share and maximizing revenue from existing customers by expanding revenue in target growth markets, maintaining an opportunistic posture, and leading the development of new capabilities, products and services to access new sources of revenue.

New products and services in the Energy sector, whether self-performed by CNL or developed and licenced to a spin-off entity, will relate to delivering specialized nuclear high-quality manufactured materials, systems or components. CNL expects to establish a Nuclear Manufacturing Centre, which may include fuel/target production, isotopic material extraction or separation, or other yet-to-be determined concepts, where either part or all of the facility would be leased to various spin-off or third-party entities managing and operating stand-alone businesses.

In the Health, Safety and Security, and Environment sectors, CNL will achieve its revenue targets by developing products and services that are in high demand by customers but present significant barriers to entry by others. As the potential opportunities are

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realized, CNL may structure the new business concern The priorities and needs of the S&T, D&WM and as a self-performed, spin-off or third-party business. Capital projects will drive CNL’s transformation of its The business location, in an existing or new facility, will support services. CNL will equip its site operations and depend on a sustainable business model. infrastructure; health, safety, security, environmental and quality; business management; procurement; IT; DELIVERED BY A WORLD-CLASS TEAM and engineering with the adaptability and flexibility needed to best serve the missions as they evolve over the 10-year period. CNL’s primary asset is its people. As diverse as they are across all the business areas A modernized project, program and portfolio approach to work execution will empower the team to manage they are all needed as part of a right-sized the diverse mission requirements across CNL. Rigorous integrated team to safely, securely and cost- and disciplined systems and protocols for project control will be applied, facilitating real-time project accounting, effectively deliver its vision. increased efficiency and productivity, and objective risk management. CNL will meet its staffing needs by continuously aligning its organization ct t P and improving its je en eo o m p management r e l P g e a Exhibit 1-9: Enablers systems and n processes to a M ensure they are responsive to the evolving missions. S CNL & y i t t i e l I n O a f u r p a e Q s r & t a E ru tio SS ct ns H ure

19 EXECUTIVE1 | EXECUTIVE SUMMARY SUMMARY | 1

A GLOBAL NUCLEAR ASSET CNL’s versatile, state-of-the-art campus will attract top-calibre scientific talent, partners and users from across the globe. In particular, CNL is embarking on a new chapter it is anticipated that CNL’s Advanced Nuclear With a safe in its long and proud history. Materials Research Centre will be a significant and permanent reduction of the site nuclear draw. This state-of-the-art facility will house liability legacy already underway and the highly sought after capabilities in the handling, imminent closure of the NRU in 2018, the Chalk testing, characterization, examination and River site will be consolidated and modernized analysis of irradiated fuels and materials. CNL’s over the next 10 years to support the evolving facilities and approach will attract and maintain science and technology needs of the Canadian a diverse, vibrant and dynamic workforce, and global nuclear industries. This journey of energized by the innovative capacity of new business transformation and growth has begun graduates, and underpinned by world-renown with this long-term plan. senior experts.

Strategy and scope will grow in clarity as Across Canada, CNL will have remediated opportunities are identified, explored and targeted historic low-level waste, leaving future subsequently realized or abandoned. The generations of Canadians a cleaner environment. utilization of modern best practices to optimize the strategic investment provided CNL will become a globally recognized by the Canadian Government and commercial brand and household name within the local opportunities won with innovative ideas will communities in which it works. build on this national icon with global reputation for nuclear innovation.

Our future is world class.

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2 ACRONYMS

21 2 | ACRONYMS

CMW Cemented Molybdenum Waste CCSF Concrete Canister Storage Facility DFDW Defuel Dewater DP Douglas Point FPS Fuel Packaging & Storage G1 Gentilly-1 HEU Highly Enriched Uranium ILW Intermediate-Level Waste IWS Integrated Waste Strategy LCE Liability Cost Estimate LTWMF Long-Term Waste Management Facilities LEU Low-Enriched Uranium LLRWMO Low-Level Radioactive Waste Management Office NRU National Research Universal NRX National Research Experimental NSDF Near Surface Disposal Facility NPD Nuclear Power Demonstration PHAI Port Hope Area Initiative PRD Prototype Reactor Decommissioning SMAGS Shielded Modular Above Ground Storage SMR Small Modular Reactor SNM Special Nuclear Material SLW Stored Liquid Waste TRM Target Residue Material VSMR Very Small Modular Reactor WMA Waste Management Area WRAT Waste Requiring Additional Treatment WWTP Waste Water Treatment Plant WL Whiteshell Laboratories

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3 INTRODUCTION

23 3 | INTRODUCTION

3.1 VISION ♦ Enhance national and global nuclear safety and security by developing new techniques to interdict contraband nuclear material, respond to nuclear Canadian Nuclear Laboratories is a incidents, prevent nuclear accidents and protect world-class, sustainable national nuclear against evolving cyber threats to nuclear power plants. laboratory delivering science and technology structured to meet current, and ♦ Leverage all of CNL’s capabilities for commercial success in Canadian and international markets. adapt to changing, Canadian federal, global commercial, and public priorities in four ♦ Restore and protect Canada’s environment by removing and responsibly managing AECL’s nuclear program areas: Energy, Health, Environment, liabilities, and developing decommissioning and Safety & Security. technologies that can be shared with others.

This vision has four key parts that guide CORE VALUES and drive CNL: ♦ Respect

♦ Teamwork PURPOSE ♦ Accountability Advancing nuclear science and technology for a clean, healthy, and secure world. ♦ Integrity

CNL'S MISSION ♦ Excellence ♦ Provide the world with sustainable energy solutions including the extension of reactor operating lifetimes, hydrogen energy technologies, and fuel VIVID DESCRIPTION development for the reactor designs of tomorrow. CNL stands proud as a global leader advancing nuclear Together, with partners, CNL will demonstrate the science and technology. The world comes to CNL to commercial viability of advanced reactors including solve the toughest technological challenges. CNL the small and very small modular reactor. has the most effective industrial partnerships of any national laboratory. Its campuses are home to a vibrant ♦ Continue to support radiochemical therapies and community of the world’s brightest innovators. Its work collaboratively with medical/educational people know they are making a difference in the lives of institutions and pharmaceutical companies to people around the world. CNL is valued by the Canadian pioneer new alpha therapies for cancer treatments government and customers in industry. that save countless lives.

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A VISION FOR CNL management solutions will be in place to protect public health and safety; enable CNL’s ongoing In support of this longer-term vision, nuclear science and technology; and leave future generations of Canadians a cleaner environment. CNL will achieve the following by 2026: CNL will have a diverse, vibrant and dynamic CNL will be delivering a vibrant, forward-looking workforce, energized by the innovative capacity of Science & Technology portfolio that will continue new graduates, and underpinned by world-renown to evolve to meet the needs of Canada and a senior experts. CNL alumni will populate the global broad base of commercial customers. It will be nuclear industry. With a transformed approach to commercially competitive on the world stage, and managing people, healthy turnover and industry known for successful delivery of complex technical and academic secondments will refresh its talent projects. CNL’s differentiating capabilities in pool. The focus will be on development and advanced nuclear materials and fuels; radiobiology; advancement of its staff through cutting-edge hydrogen; and nuclear safety and security will be applied science, preparing them for success in recognized as world class. their next role at CNL or elsewhere in the global As a result of this renewal, CNL will be at the core of nuclear system. worldwide innovation clusters through cooperation with technology partners, customers, academia and government agencies. It will advance the successful development and deployment of new nuclear technologies as well as shape national and international agendas and regulations. With CNL fully engaged and supporting their development and execution, Canada will be delivering long-term nuclear technology road maps that are integrated with federal and provincial energy needs and that give maximum benefit to Canadian communities and industries.

CNL’s versatile, state-of-the-art campus and facilities will draw top-calibre scientific talent, partners and users from across the globe. Modernized facilities, systems and equipment will enable international collaboration on the majority of its projects, leveraging others’ unique skills, facilities and market presence.

CNL will have significantly reduced AECL’s radioactive waste and decommissioning liabilities and remediated targeted historic low-level waste across Canada. Cost-effective, sustainable waste

25 3 | INTRODUCTION

3.2 STRATEGY OVERVIEW make way for new facilities; and build new facilities to create the capabilities needed to meet the evolving missions. 3.2.1 TRANSFORMATION

PROCESSES To achieve its vision as a world-class, CNL has embarked on a plan to improve our sustainable national nuclear laboratory, processes. In its management systems CNL has CNL will continue to transform its plant, described its programs, documented the program requirements, and documented changes to some its people and its processes. It will of its processes. CNL will continue revising the build upon its strengths, continuously management system, specifically its processes, to: simplify roles, responsibilities, accountabilities and improve its delivery, and pursue new authorities; assign authority to the appropriate capabilities in response to Canada’s and level of the organization; and integrate HSSE&Q the world’s nuclear challenges. CNL will requirements and industry best practices. The revised management system will simplify work enable the safe and efficient execution processes by applying a graded approach, integrate of its missions in a constantly changing, the workforce in planning activities, embed support resources into the individual delivery teams, reduce competitive world. rework and eliminate non-value-added work.

PEOPLE CNL’s people are an instrumental part of this renewal and transformation. CNL will build and sustain excellence in leadership, work performance, employee engagement, employee development, and values and ethics. This will be supported by effective and efficient human resources systems, practices and transactions that contribute to excellence in safety, execution and innovation.

PLANT Renewal of Canada’s premier nuclear facility at Chalk River is a complex undertaking requiring closely integrated planning and execution across all mission areas. This plan will revitalize existing facilities that are essential to continued delivery of its missions; decommission facilities that are obsolete and inefficient to improve efficiency and

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3.2.2 SCIENCE AND TECHNOLOGY AND COMMERCIAL OPPORTUNITIES

Over the next 10 years, CNL will take a leadership role in transforming the national nuclear laboratory and the nuclear future of Canada.

CNL’s 10-year S&T strategic objectives support the evolving science and technology needs of Canada and the global nuclear industry by:

♦ Providing global sustainable energy solutions ♦ Continuing support of radiochemical including the extension of reactor operating therapies, including collaboratively advancing lifetimes, hydrogen energy technologies, and new alpha therapies fuel development for the reactor designs of tomorrow ♦ Enhancing national and global nuclear safety and security by developing new technologies ♦ Demonstrating the commercial viability to interdict contraband nuclear material, of advanced reactors, including the small respond to nuclear incidents, prevent nuclear modular reactor accidents and strengthen cyber security for nuclear reactors

To equip it to answer these current and future needs of the federal government first, and deliver challenges, CNL must renew and grow its programs that satisfy those needs. However, that capabilities and extend its global reach. The alone is not sufficient for a sustainable national approach will use CNL’s strategic advantages of the nuclear laboratory in Canada. CNL needs to technical experience and excellence of its people; serve commercial customers domestically and its licenced nuclear site, specialized facilities and internationally in order to sustain state-of-the- infrastructure; and Canada’s science-informed art infrastructure and assure long-term viability. regulatory framework that is receptive to new Combining the insight from federal programs with technologies. that gained from national and global commercial businesses places CNL in a position to be a source To fulfill the S&T Mission, CNL must understand the of innovation for Canada.

27 3 | INTRODUCTION

Exhibit 3-1: Integrating Federal and Commercial Priorities

CNL plays unique roles for federal and commercial customers.

As a result, CNL must be positioned as a national To achieve its revenue projections, CNL will use laboratory that serves federal departments and agencies, established commercial business management and with the flexibility to engage with and compete in market development strategies for maintaining existing commercial markets. Only then can CNL grow its market share. CNL will maximize revenue from existing customer base in the nuclear and related sectors in customers, expand revenue in target growth markets, Canada and internationally. Where appropriate, CNL maintain an opportunistic posture, and lead the will enhance its capabilities through collaboration with development of new capabilities, products and services industry, academia and other national laboratories, in to access new sources of revenue. CNL has established Canada and abroad. A particular focus will be on building tailored strategies to achieve its revenue targets in strategic partnerships with other strong Canadian four sectors: Energy; Health; Safety and Security; and laboratories to establish and foster a Canada-wide Environment. ecosystem for nuclear science and innovation.

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ENABLING

3.2.3 DECOMMISSIONING AND WASTE 3.3 CONTEXT AND SCOPE MANAGEMENT 3.3.1 FUNDING CNL’s Decommissioning and Waste Management (D&WM) program will lead decommissioning, environmental restoration and waste management strategies that CNL has the following three sources enable Canada’s ongoing nuclear Science and Technology of funding: Mission; substantially reduce Canada’s radioactive waste and decommissioning liabilities; and ensure sustainable ♦ Costs funded by AECL environmental stewardship. Through the full integration ♦ Costs funded by shareholder of D&WM activities within and across the sites, including activities related to the Historic Waste Program, D&WM ♦ Third-party commercial service revenue will achieve measurable enhancements, outputs, productivity improvements and cost efficiencies. Costs funded by the AECL comes from money provided by the Government of Canada. Costs funded by 3.2.4 SITE DEVELOPMENT shareholder make up any costs incurred by CNL that are not covered by AECL-provided funding. Third-party The site development program is established for the commercial service revenue is made up of revenue that is purpose of revitalizing and transforming the physical owned by AECL and provided to CNL as funding. footprint of the Chalk River site to create a world-class and vibrant campus that sets the stage for its vision, as Funding provided is further split by mission, DBA (Defined described previously in 3.2.1. Through integrated planning Budget Area) and sub-DBA, including: D&WM, S&T and with both the Decommissioning and Waste Management Capital. Indirect costs are distributed to the proper and the Science and Technology and Commercial mission, DBA and sub-DBA. operations, the site will go through an evolution to deliver a campus that provides modern, flexible, innovative and sustainable facilities that will attract top- 3.3.2 NUCLEAR LIABILITY calibre talent, dynamic partners and set the stage for all Science and Technology activities to come. The Liability Cost Estimate (LCE) is the Net Present Value of the lifetime cost of AECL’s liabilities and will be discharged by executing CNL’s plan for existing facilities and affected lands, including the construction and decommissioning of enabling facilities that are required to process and manage the resultant waste. It serves as the basis for the environmental liabilities reported by AECL in its Annual Report.

The liability cost estimate was last reviewed in 2013 and was adopted as the formal liability estimate in the Public Accounts of Canada. The estimate will be further updated and adjusted based on objectives of this 10-Year Integrated Plan and its delivery of the business strategy.

29 3 | INTRODUCTION

3.3.3 NRU CLOSURE

The National Research Universal (NRU) reactor is one of the largest and most versatile high-flux

research reactors in the world, irradiating materials to produce medical and industrial radio-isotopes; generating neutron beams for Science and Technology applications; and providing the in-reactor facilities to test the design limits of nuclear fuels and reactor materials to support current and advanced nuclear reactor designs.

When the reactor ceases operation on March 31, 2018, it will have operated for more than 60 years as an integral part of the S&T and commercial infrastructure at Chalk River Laboratories. The shutdown of the NRU also directly affects the Moly Production Facility (MPF) and the Nuclear Fuel Fabrication Facility (NFFF). The MPF will cease operation permanently when the molybdenum-99 standby period expires March 31, 2018. A detailed shutdown plan has been prepared for the MPF at the Chalk River site, and impact support facilities, that defines its transition to decommissioning programs, costs and revenues. In preparation for activities on June 30, 2021. The NFFF is intended the NRU closure, CNL is developing a detailed NRU to be repurposed for a different fuel fabrication Permanent Shutdown Plan to ensure a safe, orderly, mission as a new commercial opportunity. compliant and cost-efficient transition from an Operating state to a Storage With Surveillance state The NRU will operate through March 31, 2018, that includes turnover to the D&WM organization. and execute its three main missions of isotope production, fuel testing and materials research. The NRU Permanent Shutdown Plan provides Standby production capability of molybdenum-99 the schedule to transition the NRU reactor from will be routinely verified at six-month intervals. operation to Storage With Surveillance by March The execution of the Integrated Implementation 31, 2021. It provides a comprehensive review of the Plan activities will continue to ensure safe and interdependencies between the NRU and the Chalk reliable operation is maintained, while remaining River Site, and how the closure of the NRU will impact in compliance with the Integrated Safety Review them. It identifies the strategies to manage the impacts licencing basis applicable from 2011 to 2018. by involving the program and process owners in the closure-planning process as stakeholders. In addition to the loss of NRU-related S&T and commercial capabilities, the closure of the NRU The permanent shutdown plan divides the shutdown will directly affect approximately 400 personnel schedule into six stages, as shown on Exhibit 3-2.

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31 NRU SAE SUTDOWN STATE SCEDULE OVERVIEW Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2011 2011 20120 202021 202122 PLANNINGNNIN PHHASE STAGE 0 STAGE 1

SHUTDOWN OF EXISTING D/S SYSTEM STAGE 2 SAFE SHUTDOWN STATE REMOVE STAGE 3 LEVEL 4 PROCEDURES FOR SYSTEM SAFE SHUTDOWN STAGE 0S4 COBALT PERMANENT NRU HANDOVER DRAIN MODERAETOR XECUTIONECUTION PHPHASEASE SAFE SHUTDOWN CORE MANAGEMENT DEFUEL & DEWATER TO FD STAGE 4 SYSTEMS S/D STAGE 5 SYSTEMS PLACED IN PERMANENT SAFE SHUTDOWN STATE S/D REMAINING SYSTEM COST ESTIMATE & FULL RESOURCE SCHEDULE HAZARD REMOVAL FROM SYSTEMS & STORAGE AREAS

REVISE PDP PREPARE SWS PLAN & DRAFT DD P NRU FUEL IN DRY STORAGE

ROD BAY HOUSEKEEPINGNRU UNLOAD TO RB ROD BAY FUEL SHIPMENTS TO WMA B FOR DR Y STORAGE REDUCED ROD BAY DOSE

REDUCED ROD BAY DOSE ROD BAY COOLING CONCEPT ROD BAY ECC ROD BAY COOLING, FABRICATION ROD BAY COOLING MODS

CHARACTERIZE DRUM CHARACTERIZE DRUM SHIP

DRAIN NRU D20 STORAGE TANKS DRAIN MODERATOR D20 FROM STORAGE TANKS LEGACY D20 DRUM SHIP D20 DRUMMING PROCEDURE INSTALLDRUM SHIP PROCESS THROUGH EVAPOURATOR

STN. DESIGN VENTILATION CONCEPT VENTILATION CONCEPT/ECC/DESIGN VENTILATION MODS & TESTIN G

B138/155 ANCILLARY BUILDING HANDOVER TO SITE TRANSITION DE COMMISSIONING 30 BUILDINGS 102/102X

HANDOVER B156/158A,161, 162, 163, HANDOVER B160/546 B166/178, B440A/B/C/D/178, 164, 165, 166 548, 173, DEACTIVATION 174, 178, 177 PERMANENT FA, SAR, NUCLEAR BASELINE NEW SITE SAFE SHUTDOWN SITE OPERATING LICENCE OPERATING LICENCE

NEW SAR & FA NRU SAFE DEFUEL & DEWATER SHUTDOWN STATE

NOTE: This is an overview schedule and does not include all acvies.

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NRU SAE SUTDOWN STATE SCEDULE OVERVIEW Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2011 2011 20120 202021 202122 PLANNINGNNIN PHHASE STAGE 0 STAGE 1

SHUTDOWN OF EXISTING D/S SYSTEM STAGE 2 SAFE SHUTDOWN STATE REMOVE STAGE 3 LEVEL 4 PROCEDURES FOR SYSTEM SAFE SHUTDOWN STAGE 0S4 COBALT PERMANENT NRU HANDOVER DRAIN MODERAEETOR XECUTIONCUTION PHPHASEASE SAFE SHUTDOWN CORE MANAGEMENT DEFUEL & DEWATER TO FD STAGE 4 SYSTEMS S/D STAGE 5 SYSTEMS PLACED IN PERMANENT SAFE SHUTDOWN STATE S/D REMAINING SYSTEM COST ESTIMATE & FULL RESOURCE SCHEDULE HAZARD REMOVAL FROM SYSTEMS & STORAGE AREAS

REVISE PDP PREPARE SWS PLAN & DRAFT DD P NRU FUEL IN DRY STORAGE

ROD BAY HOUSEKEEPINGNRU UNLOAD TO RB ROD BAY FUEL SHIPMENTS TO WMA B FOR DR Y STORAGE REDUCED ROD BAY DOSE

REDUCED ROD BAY DOSE ROD BAY COOLING CONCEPT ROD BAY ECC ROD BAY COOLING, FABRICATION ROD BAY COOLING MODS

CHARACTERIZE DRUM CHARACTERIZE DRUM SHIP

DRAIN NRU D20 STORAGE TANKS DRAIN MODERATOR D20 FROM STORAGE TANKS LEGACY D20 DRUM SHIP D20 DRUMMING PROCEDURE INSTALLDRUM SHIP PROCESS THROUGH EVAPOURATOR

STN. DESIGN VENTILATION CONCEPT VENTILATION CONCEPT/ECC/DESIGN VENTILATION MODS & TESTIN G

B138/155 ANCILLARY BUILDING HANDOVER TO SITE TRANSITION DECOMMISSIONING 30 BUILDINGS 102/102X

HANDOVER B156/158A,161, 162, 163, HANDOVER B160/546 B166/178, B440A/B/C/D/178, 164, 165, 166 548, 173, DEACTIVATION 174, 178, 177 PERMANENT FA, SAR, NUCLEAR BASELINE NEW SITE SAFE SHUTDOWN SITE OPERATING LICENCE OPERATING LICENCE

NEW SAR & FA NRU SAFE DEFUEL & DEWATER SHUTDOWN STATE

Exhibit 3-2: NRU Safe Shutdown State Schedule Overview NOTE: This is an overview schedule and does not include all acvies.

33 3 | INTRODUCTION

The plan includes turnover to D&WM of approximately LOSS OF S&T CAPABILITY 30 NRU-related ancillary buildings and structures along The loss of irradiation capability is being mitigated by with the main reactor facility. Once the NRU building having assessed past and future irradiation needs and is placed in Storage With Surveillance and ownership putting in place a memorandum of understanding with turned over to D&WM, a Detailed Decommissioning the SCK.CEN BR2 Reactor in Belgium. The transportation Plan will be developed for the NRU to plan its logistics have also been established so that CNL will be decommissioning timeline. ready to support existing and future customer needs The NRU Rod Bay will not be part of the turnover to after the shutdown of the NRU. D&WM and will continue to operate separately. It is necessary for the NRU Rod Bays to continue to support ADJUSTMENT TO INDIRECT S&T activities, and Highly Enriched Uranium and COST BASIS potentially Low-Enriched Uranium repatriation activities Today, the NRU and NRU-related nuclear facilities (the beyond the shutdown of the NRU. The rod bays will Moly Production Facility and the Nuclear Fuel Fabrication continue to operate and be funded by the NRU budget Facility) attract indirect costs through the CNL Full Cost until their capability is replaced or is no longer required. Model in the range of $80 million to $90 million annually, as defined in the DBA 2.2 budget. As these facilities The three most significant impacts of the NRU closure are transitioned to Storage With Surveillance (SWS) or are adjustments in workforce (human resources impact); repurposed, the direct operating costs will be eliminated. loss of isotope production and S&T capability to irradiate and test fuels and materials; and indirect cost reductions An analysis of the indirect costs attributed to the NRU- necessary to maintain CNL competitiveness. related facilities indicates that $20 million to $30 million are variable, and will be reduced in accordance with the HUMAN RESOURCE IMPACT reduced work activity in the NRU (for example, utility One of the most significant impacts of the NRU costs such as electricity and steam; waste management closure is on human resources. To ensure NRU staff operations; maintenance; dosimetry; and manufacturing remain available to support the NRU operation and find services). The remaining portion of indirect costs are meaningful work after closure, a program to retain, more structural and hence less sensitive to the level of retrain and redeploy staff has been designed and work activity in the NRU (for example, HSSE&Q programs implemented for the approximately 400 NRU-affected such as security and fire services, and Corporate Support personnel. such as Human Resources, Program Management Office (PMO), Finance, etc.). CNL will aggressively pursue the development of a detailed plan to ensure that indirect LOSS OF ISOTOPE PRODUCTION costs are contained to an acceptable level before, during After the NRU shutdown, CNL will no longer have and after the shutdown of the NRU and maintained as the capability to produce isotopes. However, CNL has low as practical to make CNL cost competitive. CNL will world-class expertise in the development of irradiation also investigate changes to the cost model to align it or spallation targets; extraction and purification; with the evolving missions. processing; and delivery of isotopes for medical and industrial use. Opportunities are being sought that will leverage this capability by working with partners able to produce isotopes either with a reactor, cyclotron or from waste streams.

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4 SCIENCE & TECHNOLOGY

35 4 | SCIENCE & TECHNOLOGY

4.1 OVERVIEW AND STRATEGY Highlights of the 10-year plan include the following goals: INTRODUCTION ♦ Support the operation, life extension and Over the next 10 years, CNL will take long-term reliability of the existing fleet of a leadership role in transforming the reactors domestically and internationally, growing target revenues from $730 million to nuclear future of Canada. The ambitious $1 billion over 10 years S&T agenda is driven by: ♦ Commission a new nuclear cyber security ♦ Government priorities testing facility by 2018

♦ Needs of industry ♦ Establish a centre to develop, test, calibrate and validate nuclear forensics, ♦ The future of the sector non-proliferation, security and response technologies by 2019 ♦ Revenue opportunities ♦ Demonstrate a new advanced fuel fabrication ♦ Opportunities to leverage the world-class concept by 2020 and differentiating capabilities of CNL ♦ Develop technologies for hydrogen-based To drive the S&T strategic objectives described in bulk transport by 2020 this document, CNL has established seven strategic initiatives: Life extension and long-term reliability of ♦ Develop and complete early demonstration existing reactors; advanced fuel fabrication; small of a suite of targeted alpha therapy modular reactors; decarbonizing the transport compounds by 2022 sector and remote communities in Canada; the ♦ Commercialize and deploy a nuclear Alpha Research Institute; nuclear cyber security; industrial control cyber intrusion detection and the Centre for Nuclear Forensics and Response. and mitigation system by 2022

♦ Commercially deploy at least one new nuclear detection or forensics technology by 2025

♦ Demonstrate the commercial viability of the small modular reactor by 2026

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The schedule for delivering on key milestones associated with CNL’s key science goals are shown in Exhibit 4-1 below:

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 TASK NAME

Alpha Research Institute established Alpha therapy compounds early demonstration New advanced fuel fabrication concept demonstrated Technologies to support hydrogen-based bulk transport developed Nuclear Forensices and Response Centre established New nuclear detection or forensics technology deployed Nuclear cybersecurity testing facility commissioned Nuclear industrial control cyber intrusion detection and mitigation system deployed Demonstration SMR on CNL site

Exhibit 4-1: Outcomes of S&T Strategic Initiatives

The goals and milestones highlighted above are a together with the intended outcomes and advantages, subset of a broader set of outcomes and goals for will be elaborated in more detail. Also, the capabilities federal and commercial customers. They are part of that are needed to deliver these programs and to the strategy to drive toward an S&T organization that satisfy the needs and responsibilities of government uses fixed budgets to best advantage by focusing on a will be discussed, with an emphasis on how the Capital limited number of specific objectives that best leverage Plan (Section 6) and the associated renewal of the the competitive advantages of the organization, while Chalk River site is aligned with the evolving needs of maintaining an overall suite of capabilities that are the S&T Mission and will position CNL for success in needed by the government and other customers. In the long term. the coming sections, the scientific programs,

37 4 | SCIENCE & TECHNOLOGY

CONTEXT, PROGRAMS AND FUNDING

Informed by Canadian and global trends and prospects, CNL consolidates federal and commercial priorities and needs into focused, application-driven research and technology development in four programs:

Energy

Health S&T THEM AL E A R RE DE Supporting the A Safety and Security E development of S F biological applications and understanding the implications of radiation on living things Environment Enhancing national and global security by supporting non-proliferation and counter-terrorism Nuclear preparedness and emergency response MARK Supporting safe, secure and responsible use IAL ET and development of nuclear technologies RC SE E CT Supporting environmental M O stewardship and radioactive M R waste management O S C ENERGY

HEALTH

SAFETY & SECURITY ENERGY ENVIRONMENT HEALTH

SAFETY & SECURITY

ENVIRONMENT

C N S L S AM &T PROGR CNL’s S&T programs respond to the priorities of the commercial market

Exhibit 4-2: CNL’s S&T Programs sectors and the Federal Nuclear S&T Work Plan theme areas.

38 2016-2026 10-YEAR INTEGRATED PLAN • CRL-502000-PLA-001, REVISION 0, 2017 APRIL 18 UNRESTRICTED TABLE OF CONTENTS As indicated in Exhibit 4-2, CNL’s four programs value chain members; small modular or advanced map to four Commercial Market Sectors and the reactors; and alpha-therapy/radiopharmaceutical five S&T theme areas in the Federal Nuclear S&T development. In addition to expanding capabilities Work Plan. Work under each of the four programs and experience to serve adjacent markets, CNL includes projects funded by a variety of sources, must also find other ways to leverage Canada’s which include: investment and solve future site operating costs challenges. CNL will achieve this by using ♦ The The Federal Nuclear S&T Work Plan capabilities and margin earned on commercial ($76 million annually) work to develop nuclear-focused, high-margin products and spin-off businesses. Margin will ♦ Revenue from federal customers be increased by reducing overheads in support (approximately $1 million annually) services (Section 7). The goal is that, after initial ♦ Commercial revenue, as detailed in deployment, these spin-off businesses will Section 4.2.6 (targeted to increase from continue to work with CNL on next-generation approximately $50 million in 2016, to $75 improvements and new solutions, thus creating million to $100 million per year by 2021, an ongoing applied research and development and $87 million to more than $150 million business and revenue area. by 2026) Meeting these objectives will be challenging. ♦ New S&T Funding, which includes: However, existing capabilities and the planned modernization will place CNL in a strong position. »» New Technology Initiatives Funding Where appropriate, CNL will consider opportunities (2% of federal and commercial S&T to partner with CNL affiliates. revenues, currently $6 million)

»» Margin from S&T activities plus funding through other government and third- party sources (expected to grow from about $7 million to more than $25 million by 2026)

The basic principle in CNL commercial revenue strategy is to derive maximum benefit from existing capabilities that have been developed through decades of investment by the government (for example, in CANDU reactors and molybdenum-99 production) by using them as a springboard to meet the needs of customers in adjacent or similar markets not currently or fully served. This basic-to-applied research and development follows the identified strategic initiatives and includes life extension and asset management for CANDU operators and light water market

39 4 | SCIENCE & TECHNOLOGY

OPPORTUNITIES Management Organization, and the need for long- term fuel storage solutions integrated with this CNL’s S&T 10-year plan considers a wide strategy against long delivery of the repository range of opportunities and drivers, notably: Risks, assumptions and constraints that shaped this ♦ Canada's target to double research, development plan are further described in Sections 4.3 and 8.1. and demonstration funding for clean energy and clean technology research to $775 million by 4.1.1 ORGANIZATION AND MANAGEMENT 2020 as part of the 23-nation Mission Innovation partnership ORGANIZATION AND PEOPLE ♦ Provincial, national and international carbon- MANAGEMENT 1 reduction targets, such as Canada’s projections The scientific and technical expertise of CNL’s workforce to achieve carbon reduction targets for the 2030 is internationally recognized and the foundation for deadline set in the COP 21 agreement, which CNL’s long-term plan. CNL will grow its diverse, vibrant drive the need for innovative low-carbon energy and dynamic S&T workforce, energized by the innovative technologies capacity of new graduates, and underpinned by world- renowned experts. As further described in Sections 4.2.7 ♦ Provincial and national interest in deploying small and 7.3, CNL will recruit and manage high-calibre talent modular reactors, and in particular the potential while refreshing technical capability and innovative for this technology to provide low-carbon energy capacity, building a network of CNL alumni and solutions to remote communities and resource partners, and sustaining the essential knowledge base. development projects2 The focus will be on the development and advancement ♦ Ontario’s Long-Term Energy Plan that features of staff through cutting-edge, applied science: preparing refurbishment and continued operation of them for success in their next role at CNL or elsewhere existing nuclear power reactors, rather than new in the global nuclear system. construction3 and the subsequent more than $25 billion that has been committed to refurbish Cultural transformation will focus on building a workforce existing reactors operated by Ontario Power characterized by: Generation and Bruce Power4 ♦ Strong leadership ♦ Renewed interest in the hydrogen economy and ♦ Staff with enhanced business acumen and co-production of hydrogen and nuclear electricity, demonstrable technical skill aligned with CNL’s and the implications as maturing hydrogen capabilities technologies become financially competitive with similar energy conversion technologies ♦ Scientists focused on key S&T goals, and who are acknowledged experts in Canada and ♦ The international shortage of key nuclides that internationally limits targeted alpha therapy research, a promising alternative treatment technology ♦ Consistent, effective mentoring and transfer of knowledge to successors ♦ The Adaptive Phased Management approach for used nuclear fuels developed by the Nuclear Waste

1 Fréchette, J-D. Canada’s Greenhouse Gas Emissions: Developments, Prospects and Reductions. Office of the Parliamentary Budget Officer, April 26, 2016. 2 Ontario Ministry of Energy. Feasibility of the Potential Deployment of Small Modular Reactors in Ontario, H350381-00000-162-066-0001, 2016. 3 Ontario Ministry of Energy. Achieving Balance – Ontario’s Long-Term Energy Plan, 2013. 4 http://www.cbc.ca/news/canada/toronto/darlington-nuclear-refurbishment-1.3395696

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CNL has moved to a matrixed organizational structure to reinforce technical excellence, while driving customer focus through delivery of S&T programs. Departmental Divisions provide an organizational hierarchy for organizing and managing staff, as capabilities and programs evolve to meet current and emerging customer needs. Over the coming year, CNL will transition to a more discipline- based organizational structure.

The outcome will be a diverse, vibrant and motivated workforce that is aligned with the core business of CNL; sustained through healthy progression and renewal, retention of key staff, and manageable labour costs; and leveraged through a network of alumni that populate the global nuclear industry.

PROGRAM MANAGEMENT To become a competitive supplier in global markets and laboratory ecosystems, CNL will maximize value for money, customer focus and successful project delivery. Key enablers include the creation of the Program Director roles and a dedicated S&T Program Office, a strong external review function provided by the Science Advisory Board, and an enhanced integration of R&D and business development functions. Systematic project selection and enhanced project management will provide the discipline to assure successful coordination and execution of CNL’s diverse portfolio of federal, commercial and New S&T projects.

Through strategic collaborations and alliances, CNL will augment the expertise and facilities underpinning its capabilities. This will allow rapid entry into and knowledge of new markets, while providing timely, low-risk, cost-effective access to new capabilities. CNL is uniquely positioned to connect technology providers, customers, academia and government.

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NEW S&T FUNDING To succeed, CNL must be progressive and innovative. New S&T Some of this work will be pre-competitive, and will likely Funding will envelop the New Technology Initiatives Funding benefit from the formation of research clubs with Tier I and mandated by the contract, as well as alternative funding Tier II/III participants contributing to common research arrangements, principally, commercial margin. CNL expects programs (similar to the CANDU Owners Group model and the to significantly increase funding to this area by aggressively U.K. Nuclear Advanced Manufacturing Research Centre). The increasing margin and other revenues, growing this funding majority of this work will be in parallel or post-competitive, stream from approximately $13 million in 2016-17 to more and CNL will need to use New S&T Funding for capability than $30 million in 2026. development.

New S&T Funding is a vital component of CNL’s S&T growth CNL recognizes that the end of the molybdenum-99 mission strategy. It will be the source of new technologies and services; and the upcoming shutdown of the NRU will impact the S&T enable the development of product and services; and keep CNL Mission at CNL in many ways, including increasing the indirect at the leading edge of scientific developments underpinning costs attributed to S&T activities at CNL and decreasing its capabilities. New S&T Funding will play a key role in early the amount of commercial revenues and S&T Funding from capability-building and the development of technology federal revenues. As a means to mitigate the impact of the roadmaps for new S&T strategic initiatives; for example, the NRU shutdown, CNL is engaging in an aggressive plan over deployment of small modular reactors in Canada and the use the coming two years to rapidly increase commercial margin, of hydrogen to decarbonize Canada’s transport sector. These develop high-margin products and pursue other funding road maps will clarify applications and end users; routes to opportunities from government and non-governmental deployment; technology and information gaps; and strategies sources provincially, nationally and internationally. This is to address gaps, as well as envisioned costs to full deployment, further described in Sections 4.2.6 and 7. with consideration for government and customer funding.

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4.2 SCOPE AND CONTEXT Under the Energy program, CNL:

♦ Develops and enhances material, fuel and fuel 4.2.1 ENERGY cycle options for CANDU-type, small, research, small modular and Generation IV reactors CNL’s Energy program will continue to support Canada’s fleet of existing reactors while advancing opportunities ♦ Fosters advanced, accident-tolerant and in small modular reactors, advanced reactors, research proliferation-resistant fuels and fuel cycles reactors and non-nuclear energy technologies. ♦ Establishes technologies to optimize fissile material Existing fuel designs will be supported in Canada and use, and manage spent fuel (decrease nuclear internationally, and paradigm-shifting (disruptive) legacy obligations for future generations) advanced fuel manufacturing methods will be developed. Canada will continue to support collaborations that ♦ Supports aging management, refurbishment enrich its own technical offerings and will participate in and fitness-for-service applications for continued international fora, such as the IAEA and NEA, to support operation of existing reactors Government of Canada initiatives.

Nuclear fuel fabrication, testing and performance LIFE EXTENSION AND LONG-TERM enables fuel innovation in Canadian reactors to improve RELIABILITY OF EXISTING REACTORS performance, enhance safety and increase efficiency; Building on Canada’s 50-year investment in S&T and develops alternative fuels and fuel cycles. This activities related to CANDU reactor technology, CNL includes the formulation and preparation of nuclear will support life extension and long-term reliability fuels, and their post-irradiation examination, supported of the existing fleet of CANDU reactors domestically by fuel fabrication of the full range of fissile material and internationally and expand to include support and fuel types (metallic, composite and ceramic). CNL’s for other reactor designs. CNL will transform from a broad capabilities, coupled with Canada’s science- historical CANDU focus to a broader “CANDU-and- informed regulatory framework that is receptive to new more” perspective, and build on capabilities in advanced technologies, gives CNL a competitive edge in developing nuclear materials and fuels research and nuclear and deploying new fuels much more rapidly than other chemistry applications. laboratories. To support reactor life extension and science-informed With a particular focus on zirconium alloys, testing of regulation, CNL will understand and predict the irradiated and ex-service materials includes fracture performance of reactor components and systems to 80 toughness testing, delayed hydride cracking, post- years of service and beyond. Projects will push beyond irradiation annealing and hardness testing, as well as current understanding of fuel and material behaviour environmental testing to further understand stress and degradation, responding to both federal and industry corrosion cracking and fouling. Reactor material needs. Modeling and computational functions at CNL surveillance, fitness-for-service and condition will need to develop and access new materials models, assessments are conducted where materials used in ranging from bulk probabilistic models to atomistic the core of reactors experience extreme environments. models. The nuclear systems and engineering capability Investigations into component failures and emerging will be focused on delivering tooling and instrumentation issues in nuclear power plants include metallurgical that enables inspection, sampling, monitoring and repair examination and characterization of specimens from of shut-down and operational reactors: better, faster, plant components. cheaper.

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CNL will pursue and sustain strategic business in materials and fuel development at CNL can be used relationships with utility owners’ groups as a stepping to improve existing reactor technologies, particularly for stone to the international reactor market, with the aim CANDU designs, and advance those under consideration of expanding light water reactor market support and for future deployment (such as small modular reactors winning commercial applied research and development and advanced reactors). Successful demonstration of in the energy market worth from $730 million to $1 new fuel fabrication concepts may also position CNL to billion over 10 years. This initiative is largely commercially exploit these capabilities on a commercial production funded, with small amounts of New S&T funding (less basis going forward. than 1 percent) invested for developing capabilities to support existing reactor markets and federal S&T funding CNL will build on current knowledge and expertise in (less than 1 percent) for supporting materials, fuels and fuel fabrication and materials characterization and modelling studies that provide scientific information to performance, coupled with new expertise in additive regulators and policy makers. CNL will revitalize nuclear manufacturing and other advanced manufacturing chemistry facilities (Buildings 320/330) by 2021, and methods. CNL’s existing fuel fabrication expertise and sustain existing hot cell and fuel fabrication facilities facilities (hot cells, glove boxes, etc.) will be augmented over much of the 10-year period. The Advanced Nuclear through partnerships with fuel manufacturers and Materials Research Centre will consolidate and expand international collaborations. Collaborations and many of the facilities essential to supporting existing partnerships will be developed to address the need to reactor fleets, including current capabilities of the irradiate and examine any prototype fuel developed. Universal Cells, Fuel and Materials Cells, Recycled Fuel The new Advanced Nuclear Materials Research Centre Fabrication Laboratory, metallographic laboratories will facilitate this effort by collocating additive and the storage and fuel handling capabilities of the manufacturing equipment with fuel fabrication, testing NRU rod bays. and post-irradiation examination facilities. The funding for developing and demonstrating new fuel fabrication ADVANCED FUEL FABRICATION concepts is anticipated to be about $50 million over 10 years, based on existing and new customers. Given To support long-term reliability of existing reactors success in attracting commercial partners, funding may and the development of advanced reactors, advanced grow to as much as $500 million. Based on this amount, nuclear fuel concepts are being developed worldwide. about 2 to 5 percent of New S&T Funding will be directed These advanced fuels offer higher performance; to developing capabilities and partnerships in additive improved failure tolerance; increased safety, manufacturing, fuel manufacturing testing and proof- proliferation resistance and accident tolerance; and are of-concept activities. A small amount of Federal S&T recycled or recyclable. Many of the next-generation funding (less than 1 percent) will be directed primarily to nuclear fuels cannot be manufactured via conventional advanced manufacturing techniques. processes applied to traditional uranium dioxide-based nuclear fuels. Therefore, new methods are required to fabricate these fuels. CNL aims to demonstrate a new SMALL MODULAR REACTORS advanced fuel fabrication concept by 2020. CNL’s goal is to demonstrate the commercial viability of the small modular reactor by 2026, with a view to As new manufacturing technologies are emerging with positioning Canada to take a leadership role in this application to the fabrication of advanced nuclear fuel emerging nuclear technology with CNL recognized (additive manufacturing, spark-plasma sintering and 3D globally as a leader in SMR prototype testing and S&T printing, for example), CNL is well positioned to become support. The objective is for Canada and CNL to best an international leader in the development and testing of leverage that position to provide low-carbon, reliable, new fuel technologies. Existing capabilities and expertise load-following, scalable and cost-effective energy

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options to remote communities, mining and oil sand radiation protection; health physics; security; safeguards applications, and to fill other energy gaps and needs and nuclear material management; and emergency that often have unique Canadian interest. planning. This will create a collaborative location where students, visiting scientists, end users, regulators and SMRs have been recognized as important offerings of the Canadian supply chain can meet, discuss technical the modern nuclear industry. These reactors provide an aspects of the SMRs and understand the technologies. alternative to traditional nuclear reactors. With a reduced size for specific applications, and the ability to purchase As part of this long-term vision, CNL’s goal in the next 10 and construct in a modular way, SMRs drive down costs years is to host a prototype SMR. Costs could be on the with economies of volume manufacture and reduce order of $600 million, with expected contributions from risks and liabilities. In addition to electricity generation, commercial entities, and executed through extensive SMRs can be part of an overall energy scheme that partnering with technology vendors and end users. The includes district heating, co-generation, energy storage, budget estimate will be refined over time through a desalination and hydrogen production. These traits are non-binding call for expressions of interest. particularly attractive to remote off-grid applications in northern communities where consistent, reliable and low With an SMR sited at CNL, the funding is expected to greenhouse gas emission electricity is needed. grow to more than $600 million over 10 years, with increasing demands for S&T from SMR vendors and There are challenges to deployment of SMRs that including smart leveraging. Without an SMR at CNL, include specific issues such as cyber security; licencing; there will still be an opportunity to provide S&T services operational costs; non-proliferation and safeguards; to support new technology development with a value waste and fuel handling and shipping; staffing; of about $50 million to $75 million over 10 years. passive safety systems; community engagement This includes third-party commercial revenue and a and acceptance; and taking an existing concept to consistent notional funding between $3 million and deployment. As such, there will be demand for CNL’s full $5 million per year from the Federal Nuclear S&T Work suite of S&T capabilities, particularly those developed Plan to enable science-informed policy and regulatory through CNL’s advanced reactor work with CANDU decision making. Some New S&T funding will support technology and the Generation IV International Forum. capability development to ensure facilities and staff are ready for new business opportunities in this market. As CNL’s long-term vision is to be a recognized hub for described in Section 6.3.3, upgraded Chalk River site SMRs, where multiple vendor-supported prototypes are services and utilities will be located and constructed to built and tested, drawing support from a strong R&D accommodate future expansion for one or more SMRs as team and benefitting from support services such as well as tri-generation capability.

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DECARBONIZING THE TRANSPORT demonstrate its large-scale hydrogen production process SECTOR AND REMOTE COMMUNITIES and support systems. This process will produce the IN CANADA required hydrogen to fuel bulk transport vehicles, such as freight trains and transport trucks. To connect and Building on capabilities developed to support hydrogen work with industry partners for this demonstration, CNL safety and heavy water and tritium management is exploring becoming a member Canadian Urban Transit in CANDU reactors, and leveraging recent capital Research and Innovation Consortium. Synergies between investment in modern hydrogen laboratories (Building this initiative and the operation of a SMR at CNL will 137), CNL will play a leading role in the demonstration demonstrate how hydrogen produced using an SMR can of hydrogen-based bulk transport by 2020. As supply backup power, as well as fuel for local transport hydrogen technologies have matured, costs have vehicles. dropped to the point that hydrogen solutions are financially competitive with similar energy conversion The total funding over 10 years is expected to be $100 technologies. Hydrogen technology offers low-carbon million. The initial work will be largely funded through options for the energy and transportation sectors, New S&T funding (less than 2 percent), leveraging which supports Canada’s international commitments Federal S&T projects (less than 0.5 percent); these for carbon reduction. projects will support the development of novel materials and hydrogen technology research. Third-party funded Demonstration of hydrogen-based bulk transport partnerships will be established with transportation by 2020 requires that a clean, large-scale hydrogen suppliers and operators before advancing to larger scale production process be demonstrated earlier. Through prototypes and demonstration. a series of projects with industry partners, CNL will

STRATEGIC OBJECTIVES KEY ACTIONS EXPECTED OUTCOMES

1. Define technology road map and identify gaps 1. Roadmap to deployment of an SMR 2. Engage host communities, end prototype at CNL, with identified users and government for the gaps and actions, is completed and prototype and final deployment SMR Initiative provides framework for successfully 3. Develop a plan to engage completing the “SMR initiative” regulators and solicit interest Solve the key technical 2. One prototype SMR suitable for from vendors for the prototype challenges and Canada is identified for construction demonstration demonstrate the at CNL 4. Ensure suitable projects are commercial viability of 3. CNL recognized as a leading player in part of the Fed S&T program to technical support of SMRs in Canada the SMR support regulatory and policy and internationally decision making 4. Scientific information, through 5. Based on vendor technology, experimentation, modelling and determine needs for R&D support, analysis, to inform regulatory and facilities and expertise policy decisions 6. Secure collaborations to build irradiation capability

Exhibit 4-3: Energy Program Strategic Objectives

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STRATEGIC OBJECTIVES KEY ACTIONS EXPECTED OUTCOMES

1. Develop relationships with sustainable customers, suppliers, 1. A more diverse customer base and trade organizations and other sustainable enterprise is created national nuclear laboratories for CNL 2. Engage with CANDU Owners 2. New capabilities and facilities for Group R&D and strategic R&D testing in support of non-CANDU program as a voting member reactor technologies established Support life extension 3. Prepare strategy to engage and 3. Scientific information, through and long-term identify partners and collaborators experimentation, modelling and reliability of existing to examine ex-service material analysis, on the domestic fleet reactor fleets harvested from the NRU to of reactors is available to inform enable a comprehensive material regulatory decision making investigation for shared cost 4. Provide scientific information and 4. Develop capabilities to understand technologies to support decisions on the challenges of existing fleets long-term operation and advanced reactors so that CNL is equipped to advise the government

1. Evaluate the advantages of advanced fuel fabrication concepts and develop technology road map for the additive manufacture of reactor and fuel element components, including nett-shape pellets, with the aspirational target of manufacture of complete Advanced Fuel reactor fuel elements in one step Fabrication Initiative 1. Complete proof-of-principle for 2. Commission non-active laser additively manufactured fuel sintering benchtop equipment Develop additive 2. Prototype printed fuel for a 3. Engage collaborators with manufacturing customer expertise in additive manufacture capabilities 4. Engage fuel manufacturer partner(s) and secure third-party investment 5. Conduct prototype fuel performance testing and examination 6. Conduct qualification testing

Exhibit 4-3: Energy Program Strategic Objectives

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STRATEGIC OBJECTIVES KEY ACTIONS EXPECTED OUTCOMES

1. Develop technology road map for hydrogen-based decarbonization of the transport sector in Canada 2. Develop and demonstrate at Decarbonize the benchtop scale all major systems transport sector 1. Hydrogen-based bulk transport 3. Secure partners for larger scale and remote demonstrated demonstration/prototype facility communities 4. Explore synergies with SMR in Canada demonstration on a CNL site 5. Demonstrate hydrogen energy- based applications in remote communities

1. Five successful, profitable product or 1. Identify mature technologies Develop nuclear service initiatives launched — with that have potential, such as test/ manufacturing two of them in Energy research reactor fuel, isotopes, etc. capabilities across 2. CNL-operated or spin-off businesses 2. Construct new facilities and add Energy and all CNL created that contribute directly to capabilities as required to support CNL operations cost and ultimately market areas nuclear manufacturing initiatives Canada’s GDP

Exhibit 4-3: Energy Program Strategic Objectives

4.2.2 HEALTH

Canada has a long history of leadership in nuclear For federal departments and agencies, CNL will continue medicine. As a world leader in the production of medical to advance understanding of the effects of low doses isotopes, CNL has developed experience in handling of radiation on humans, the health effects of uptakes medical radioisotopes on an industrial scale, separating of radionuclides, the therapeutic treatments to reduce isotopes, managing waste and target production. In radiation doses in case of human intake of radioactive parallel, CNL has developed a unique capability in material, and the research aimed at other potentially understanding the effects of radiation and radionuclides beneficial uses of radiation for human health. CNL on living things. will conduct low-dose radiation studies to determine the effects of low doses of radiation on production of CNL will leverage the isotope processing capabilities in cancers and other impacts on biological specimens, its Health program. It will emphasize the development of both for terrestrial exposure and, in conjunction with the nuclear medicine capabilities and the impact of nuclear Canadian Space Agency, to better understand the impact radiation on the health of organisms. of potential radiation exposures for astronauts.

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ALPHA RESEARCH INSTITUTE facilities and build the new Advanced Nuclear Materials Research activities studying acute exposures have been Research Centre (Section 6.3.1). CNL will also pursue underway for decades. Recently, efforts have shifted to certification of the Biological Research Facility to Good treatment by targeted alpha therapy for battling cancer Laboratory Practices to enable the use of the facility for and other diseases. The benefit of this therapy is that pre-clinical experiments. the radiation is targeted at just the cancer cell, unlike existing treatments that often involve radiation of all The targeted alpha therapy research program will form cells in the vicinity of a tumor, healthy and cancerous. the nucleus around which to develop a virtual Alpha There is currently an international shortage of key Research Institute by 2018. The purpose of the Institute nuclides for this research. The result is severely restricted is to increase strategic partnerships and national research in this area, which delays and puts at risk the and international collaborations, and accelerate the availability of effective treatment technology. Alpha- development of technologies that improve the health emitting isotopes of the most interest for this therapy of Canadians, while advancing a broader suite of alpha are rare, toxic heavy metals, and must be processed in applications (such as alpha battery R&D and production, specialized facilities. Chalk River is such a facility. radon dosimetry, actinide isotope production, actinide waste handling, decorporation of alpha-emitting nuclides CNL aims to become the center of international research from lungs, detection of alpha-emitting nuclides for efforts and a key supplier for these alpha-emitting decommissioning and demolition applications, and space isotopes through using its skills in isotope separation, applications). scaling up of processing and handling radionuclides. Strategic partnerships are being pursued with the Funding for this initiative will be primarily from third academic and commercial sectors to leverage CNL’s parties and could grow to more than $75 million over 10 radiobiology, animal studies and isotope separation years, with modest Federal S&T and New S&T funding capabilities and grow revenues in the pharmaceutical in the early years. Federal S&T funding is anticipated market. This initiative will require extensive collaborations to be $1 million to $2 million per year, decreasing after with academe and radio-pharmaceutical suppliers, as well about four years, and will be aimed at obtaining research as current players in the field. By 2022, CNL will develop quantities of alpha-emitting isotopes and supporting and complete early demonstration of a suite of targeted some in-vivo alpha therapy testing. New S&T Funding alpha therapy compounds. is envisioned to start at similar levels, and growing as additional applications of alpha-emitting material Because CNL will no longer have the NRU reactor as a are identified. New S&T work to be performed initially source for neutron activation, it will collaborate with includes computational work to track alpha-emitting institutions that have irradiation sources capable of material through the body. Funding from cancer and producing sufficient quantities of the isotopes. It will other health research institutes, energy companies, other process the isotopes at Chalk River and provide the governmental organizations (both Canadian and outside isotopes through commercial contracts. It will also Canada) is expected to grow once the Institute is initially provide the international research and clinical scientists established. This will support the third-party irradiation a variety of isotopes to be used in their studies and facility required to produce clinical trial and commercial perform much of the relevant research in the Biological quantities of needed isotopes, support for the analytical Research Facility and other facilities at Chalk River. This chemistry work at Chalk River Laboratories required to initiative is supported by near-term capital projects to separate the required isotopes from the irradiated target revitalize facilities in Building 513 and provide new class material, and in-vivo mouse experiments for a larger B laboratories in Building 350 (Section 6.3.2), as well variety of cancers or other diseases using more capacity as longer term investments to sustain current hot cell of the Biological Research Facility.

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STRATEGIC OBJECTIVES KEY ACTIONS EXPECTED OUTCOMES

1. Internationally recognized as a leading institute for radiation 1. Leverage Leverage the health research, in particular with capabilities of radiobiology to an emphasis on effects of low Supporting the collaborate with international doses of radiation and tritium development researchers and institutions of biological to expand low-dose radiation 2. Information on the effects of low doses of radiation on organisms to applications and research capabilities support the Canadian regulators 2. Pursue additional sources of understanding in decision making relative to funding to leverage the federal the implications setting occupational dose limits budget of radiation on 3. A technique to accelerate 3. Work with operators to support living things expulsion of ingested/inhaled their interest in the impact of radioactive material from dose on workers individuals in case of a radioactive material release in Canada

1. Develop a road map for creating an institute to serve as a nucleus for international research involving alpha-emitting nuclides and serve as a source of alpha-emitting materials 1. A virtual Alpha Research Institute for research and commercial is established activities Alpha Research 2. Develop and complete early Institute 2. Secure a partner who will demonstration of a suite produce the isotopes of interest of targeted alpha therapy 3. Develop charter for the Institute compounds 4. Attract universities and research institutes to become members of the Institute

Exhibit 4-4: Health Program Strategic Objectives

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4.2.3 SAFETY AND SECURITY supporting triage and treatment of victims; and providing decorporation and decontamination Canada, as a nuclear nation, has responsibilities of radioactivities. Innovative efforts in this area for safety, security and emergency response. CNL include the development of biomarkers that will will support Canada in meeting its obligations potentially reduce the time required for post- by sustaining world-class capabilities in nuclear event bio-dosimetry from hours to minutes. non-proliferation and counter-terrorism, and in CNL also maintains an operational capability nuclear emergency preparedness and response. for emergency response that is available to the CNL will work with government departments Federal Nuclear Emergency Plan. and agencies and, where applicable, with international bodies such as the International CNL will ensure Canada remains at the forefront Atomic Energy Agency, to develop technologies of safety and security through involvement on and methodologies that address national and behalf of Canada in international forums such international nuclear security gaps. Technology as the Nuclear Energy Agency, a branch of the gaps that will be addressed in the next two to Organisation for Economic Co-operation and 10 years include interdiction of special nuclear Development, and the IAEA. Safety, security materials at borders; nuclear forensics signatures and non-proliferation issues have international and analysis methods; verification methodologies ramifications and offer opportunities for cost- and for international nuclear treaties; and cyber risk-sharing collaborations, which CNL will pursue. security of industrial control systems in the Canada’s broad-based nuclear competence, nuclear domain. coupled with Canada’s non-weapons status, places CNL in a unique position of knowledge The S&T strategy to sustain the emergency and impartiality to provide expertise to these response capability at a world-class level includes international organizations. developing, exercising and commercializing, where applicable, new technology and The application of expertise garnered in the methodologies that improve the response nuclear arena will be extended to non-nuclear time and effectiveness in characterizing and applications, such as safety issues relating to the scoping incidents immediately post event; hydrogen economy.

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NUCLEAR CYBER SECURITY INITIATIVE percent would be required from New S&T Funding and the remainder from capital to build up the capability, Cyber security of industrial control systems is a including the cyber test facility, required to launch the growing concern in all industries, and particularly initiative. Capital investment for new test facilities in New in the nuclear industry where it represents a multi- Brunswick will be coordinated with capital investments billion-dollar worldwide market. There are continual on the Chalk River site; specifically, returning Building demands for modern, technology-based solutions. 600 to its original research focus after corporate offices While a large commercial industry caters to the cyber are moved to the new business hub in 2021 (Section 6.3.1). security of information technology (IT) systems, Commercial revenue from the nuclear and non-nuclear most solution providers are focused on conventional sectors will accelerate in the latter five years as products hacking and data theft. The cyber security of industrial and service offerings mature and increase market control systems used in nuclear power plants and penetration. other critical energy infrastructure, as well as non- nuclear process plants, is in its infancy. Unlike IT systems, industrial control systems are often bound CENTRE FOR NUCLEAR FORENSICS by strict regulatory requirements and rigorous change AND RESPONSE controls that introduce complexities, risks and costs The need for nuclear security S&T continues to grow that are substantially higher for any modernization in Canada, as evidenced by the government’s renewed or modification, and therefore requires specialists in commitments to nuclear threat reduction, both Instrumentation & Control systems with cyber security domestically and abroad. There is a growing demand expertise. CNL will commission a nuclear cyber security from government departments and agencies for nuclear testing facility by 2018, and develop, commercialize S&T expertise to inform their response to emergent and deploy a nuclear industrial control cyber intrusion national and international issues concerning nuclear detection and mitigation system by 2022. safeguards, safety and security.

CNL has a core cyber security expertise that has worked CNL possesses differentiating capabilities that position for federal customers on the cyber issues of small it uniquely to fill these nuclear security S&T needs in modular reactors. This team works at the University of Canada. These capabilities include: New Brunswick’s Fredericton Campus, which is a national cyber security centre. CNL will develop a simulator of ♦ Safe, secure, controlled access to locations with a reactor control system as a test bed for developing sensitive categories of special nuclear material that intrusion-resistant systems, intrusion detection and allow realistic testing and validation of safeguards remediation. Customers will include reactor vendors and and security-related detection and characterization operators as well as regulators. This venture will seek techniques funding from the Canadian Safety and Security Program, ♦ State-of-the-art capabilities for irradiation; the IAEA and other initiatives related to smart grids and chemical and mechanical manipulation; and cyber security. examination and decontamination of nuclear, radioactive and radiologically contaminated The total value of this initiative, including funding from materials and biological samples that are required federal and third parties is estimated to be $75 million for the national nuclear forensics and response over 10 years. Current levels of investment from federal capability sources, including the Federal Nuclear S&T Work Plan and the Canadian Safety and Security Program account Government departments and agencies continue to for approximately 5 percent of this value and another 5 invest in developing forensics, security and response

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technology and capabilities at CNL, via the Federal S&T program, the Canadian Safety and Security program as well as their own departmental appropriations. CNL will establish, by 2019, a centre for government agencies and commercial partners to develop, test, calibrate and validate nuclear forensics, non-proliferation, security and response technologies and materials.

Safeguarding and securing nuclear material is a worldwide concern, as is the ability to attribute any diverted material to a source. CNL has long been developing essential tools to enable national and international nuclear safety and security. For example, the Cerenkov Viewing Device, the “workhorse” for light water reactor used fuel inspection, which is used around the world. By 2025, CNL will develop a new technology to detect contraband Special Nuclear Materials inside shipping containers thereby filling a gap in today’s nuclear security technologies and improving Canada’s border security.

Over 10 years, total funding is estimated to be $130 million, mostly from government programs, including the Federal Nuclear S&T Work Plan and the Canadian Safety and Security Program, and from government departments under the category of “CNL as a Federal Lab,” with New S&T funding and capital investment to expand existing capabilities in nuclear safety, security and risk management. Capital projects will assure that existing facilities for handling nuclear materials, notably the Recycle Fuel Fabrication Laboratories and the hot cells, continue to operate until the Advanced Nuclear Materials Research Centre is available (Section 6.3.1). CNL will strive to commercialize new technologies where industry needs are and opportunities exist.

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STRATEGIC OBJECTIVES KEY ACTIONS EXPECTED OUTCOMES

1. New technology developed to 1. Develop world-class forensic improve interdiction of Special capability to determine the origins Nuclear Materials for Border Security of contraband material against Canadian databases and linking 2. Enhanced nuclear forensics with international databases capability in Canada through new knowledge in materials signatures 2. Provide support to the government Enhance national and methodologies for nuclear to establish leadership by Canada forensic analysis and global security in non-proliferation and security by supporting 3. New methodologies for informing 3. Use the status of Canada as a top and ensuring compliance to non-proliferation and nuclear nation with no weapons emerging standards and regulations counter-terrorism program or aspirations and the for cyber security of industrial United Nations rating of Canada control systems in the nuclear sector as one of the least corrupt nations to provide consultants 4. Scientific data and analysis to and participants on inspection support international obligations teams and project assessments (in and to inform regulation and policy support of Canada) decisions related to nuclear non- proliferation, safeguards and security

1. Develop capabilities to detect and monitor in the event of an emergency 2. Extrapolate lessons learned about reactor and human behaviour 1. Improved biodosimetry, source from accidents such as Fukushima modeling and decontamination Daiichi to Canada and CANDU methods to reduce response time in Nuclear Emergency reactors to support regulators, the event of a nuclear incident operators and future CANDU sales preparedness 2. Models, validation data and codes and response 3. Develop a toolkit of models and to inform regulatory decisions devices to establish accident on severe accident progression in consequences and support advanced reactor designs emergency responders by using existing international capabilities, collaborations and developing models and technologies where available tools are inadequate or do not exist

Exhibit 4-5: Safety and Security Program Strategic Objectives

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STRATEGIC OBJECTIVES KEY ACTIONS EXPECTED OUTCOMES

1. Establish supply chain collaborations for commercialization of detectors and monitors developed under federal programs and use 1. Test facility established for detection Centre for international developments to of special nuclear materials Nuclear Forensics provide a secure Canada 2. Four advanced instrumentation/ and Response 2. Use the status of Canada as a top analysis devices demonstrated and nuclear nation with no weapons commercialized program or aspirations and the United Nations rating of Canada as one of the least corrupt nations to provide consultants and participants on inspection teams and project assessments

1. Define the cyber security technology roadmap for existing 1. Advanced nuclear cyber security test and advanced nuclear reactors facility established 2. Develop cyber security and cyber Nuclear 2. New nuclear industrial control cyber operation capabilities to support Cyber Security intrusion detection and mitigation deployment of small energy system developed, commercialized Initiative systems and advanced reactors and deployed in addition to serving the CANDU brand

Exhibit 4-5: Safety and Security Program Strategic Objectives

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4.2.4 ENVIRONMENT also research the application of nuclear technologies to optimize the treatment of non-radioactive waste Under its Environment program, CNL will expand problems that exist in Canada. understanding of the behaviour of contaminant radionuclides, and further develop safe, economical Storage and disposal of waste is a key and largely missing nuclear waste management technologies with component of the Canadian strategy. CNL will support increasing integration with the Decommissioning & both waste generators and government agencies Waste Management Mission. Strategic partnerships (Canadian Nuclear Safety Commission and Nuclear will be pursued to bring international best practices to Waste Management Office) in facilitating the design support successful execution of CNL’s D&WM mission. and operation of waste management and disposition. The environmental technology capability will also International experience shows it could be decades continue to support the government in understanding before a fuel repository is available. Therefore, CNL needs the effects and monitoring through instrumentation and to ensure the long-term stability of spent fuel, which environmental markers, for the presence and spread of involves packaging, storage and an understanding of the low levels of contamination. In addition to supporting behaviour of stored fuel for extended periods up to 100 government priorities, these activities will ultimately years. CNL will use its knowledge of fuels and materials be used to inform the development and deployment of to develop fuel storage strategies that avoid unplanned small modular reactors to minimize the liability of future repackaging. technologies. CNL will also build on its understanding of how CNL will establish a program of Environmental S&T, radioactive material transports itself through ecosystems ranging from providing development, project and service following planned or unplanned releases, and how support to expert advice. This will include increasing this varies with isotopes, physical and chemical forms, the efficiency of decontamination practices; minimizing and environments throughout Canada. Environmental dose to workers; and optimizing waste segregation and assessments must be underpinned by high quality site waste processing to minimize low-and intermediate- data, both in terms of the geology and the contaminant level waste volumes. CNL will also pursue customers source term in order to predict the behaviour of dealing with relatively low, but problematic, levels of radionuclides transport in the environment. Where radioactive waste to service their disposal needs. One that data exists, it needs to be in a form that can be near-term example is the new radiation-enhanced super used to populate any fate and transport model as critical water oxidation unit will treat and volume-reduce needed to support operators, regulators and vendors. nuclear waste in a manner that is superior to current Effectively managing this data is vital for CNL in technologies, which supports the government’s priority discharging historical liabilities and closing sites, and for radioactive waste management. for new environmental assessments for SMRs. CNL will apply its capabilities to the acquisition of geology and We will leverage CNL’s position as the world’s leading migration data in currently non-licenced sites across expert in detritiation technologies, which has been Canada to support SMR deployment and provide advice established through decades of supporting heavy water to government on appropriate models. Emphasis will be and tritium management in CANDU reactors, to develop on monitoring and predicting environmental transport of enhanced detritiation technologies that improve the radionuclides (in particular the various forms of tritium), economics, throughput and safety of the process for use including tailored radioactivity detection technologies. in normal operations or in case of a significant release of heavy water in Canada and internationally. CNL will

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STRATEGIC OBJECTIVES KEY ACTIONS EXPECTED OUTCOMES

1. Create collaborations with international universities/ institutions that are recognized in the environmental tritium 1. CNL recognized as international research field leader for determining fate and Supporting transport of tritium species in the environmental 2. Set CNL up as a facilitator or hub environment and food chain of environmental tritium research stewardship and by organizing workshops and 2. Database and models of radioactive waste related activities for international radionuclide fate in environmental management research groups media to support recovery actions in Canada in the event of a significant 3. Develop appropriate modelling radioactive release capabilities and data necessary to support the needs of the federal agencies

1. Understand the total S&T services necessary for Decommissioning & Waste Management

Support the Internal 2. Establish a program of support for 1. More efficient D&WM activities that D&WM and assign a project lead result in reduced cost, schedule or Customer to ensure full execution of that personnel exposure throughout the (D&WM) program decommissioning mission 3. Develop metrics that measure impact of research program results on D&WM activities

1. CNL recognized as the Canadian 1. Interface with the CANDU leader in the development of nuclear Owners Group, Nuclear Waste waste management solutions and Assist the Canadian Management Organization, utilities technologies and provinces in formulating nuclear industry strategies to expedite the provision 2. Understanding of the behaviour of in solving waste of disposal stored fuel for extended periods up to 100 years management issues 2. Assemble plan to address issues using the variety of resources CNL 3. Fuel storage strategies informed has available by CNL’s knowledge of fuels and materials

Exhibit 4-6: Environment Program Strategic Objectives

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4.2.5 FEDERAL PROGRAMS

The Federal Nuclear Science and Technology (FNST) Work The expected outcomes of the FNST Work Plan Plan provides funding for nuclear-related S&T at CNL to are to: support core federal roles, responsibilities and priorities of 13 federal departments and agencies. At the highest level, ♦ Position Canada as a global player in areas of security, the government priorities in the areas of climate change health, environment, energy and nuclear regulation and a clean environment; science and innovation; and the health, safety and security of Canadians are addressed in ♦ Develop highly qualified personnel for the next five theme areas and integrated in CNL’s S&T programs. generation of nuclear workers and scientists

The FNST theme areas are: ♦ Maintain the unique technical knowledge and understanding of advanced reactor technologies, which 1 Supporting the development supports regulation of Canada’s nuclear industry of biological applications and ♦ Enable Canada to effectively participate and meet its understanding the implications obligations in international energy, regulations and of radiation on living things security (Health) Over the next 10 years, the government will dedicate $76 million a year, split amongst the five theme areas. CNL will 2 Enhancing national and global leverage federal funding to derive maximum benefit and security by supporting will augment this funding with third-party revenue and non-proliferation and collaborations. The proposed Federal S&T work is discussed counter-terrorism in each of the program sections where it is presented as (Safety and Security) one part of the overall program (Sections 4.2.1 to 4.2.4). The Federal S&T work responds to the current understanding of 3 Nuclear preparedness and government needs and priorities, opportunities for impact, emergency response and requirements to maintain core capabilities. In describing (Safety and Security) this work over the next 10 years, funding is assumed to be split between theme areas, largely consistent with the apportionment for 2017-18 (Energy at 45 percent, Health at 4 Supporting safe, secure and 9 percent, Safety and Security at 38 percent and Environment responsible use and at 8 percent). development of nuclear technologies (Energy)

5 Supporting environmental stewardship and radioactive waste management (Environment)

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4.2.6 COMMERCIAL

The revenues for Heavy Water are dependent on existing Similarly, the commercial results are dependent on many stock inventory levels and global product availability. The factors within and outside of CNL’s control, as shown in Isotope revenue will continue to decline as our Co-60 Exhibit 4-7. inventory, currently in the NRU, is sold. Optimistically, CNL Health product and service development initiatives should begin to contribute revenues in five to eight years.

EXTERNAL FACTOR MITIGATION STRATEGY Commercial customers require terms and Negotiate approaches to risk sharing with commercial conditions AECL/CNL is unable to accept (such customers that remain within CNL risk tolerance while as indemnification) appropriately assigning risk to the party most able to control it

Third-party intellectual property (IP) rights CNL to work with AECL and third parties to obtain position impacts, restricts, delays or prevents clarity on IP positions; business plan established to CNL from accessing work in certain markets or meet revenue goals within that position customers

Capability availability (including facilities Provide R&D with detailed Business Development and personnel) inhibits ability to perform pipeline, probabilities and estimated resource commercial projects utilization in real-time

Full cost recovery mandate, coupled with high Focus on market segments with high customer value fixed costs, results in rate structure that is and competitor barrier to entry, enabling CNL to uncompetitive in certain markets compete successfully Evaluate various cost models to understand the impacts of the NRU shut-down, capital projects and accelerated decommissioning on indirect charges, facility costs and margin

Exhibit 4-7: External Factors and Mitigation Strategies

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To achieve these revenue projections, CNL intends to CANDU Owners Group and Candu Energy Inc. through use established commercial business management and active account management and disciplined contract market development strategies for maintaining existing execution. Growth segments over the 10-year period market share and maximizing revenue from existing will include services to the light water reactor market customers, expanding revenue in target growth markets, value chain and CANDU operators, as well as small maintaining an opportunistic posture, and leading the modular reactor /advanced reactor developers. CNL will development of new capabilities, products and services grow its portfolio of services to reactor operators by to access new sources of revenue. leveraging its expertise in issues related to life extension and reactor efficiency (such as corrosion) into a growing In the Energy sector, CNL will maximize the revenue portfolio of work spanning CNL’s areas of expertise. available from its existing core customers such as the CNL SMR initiatives will likely include various siting and

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optioning studies, technology needs evaluations, and 4.2.7 S&T CAPABILITIES a commercial expression of interest and technology ‘down-select’. The SMR technologies require national For CNL to be a premiere nuclear technology research lab support for licencing and deployment. CNL will laboratory, it must maintain the ability to conduct solve the outstanding technical challenges required high-quality research on all major aspects of nuclear for licencing and provide a licenced site with an ideal operations; fuels and materials; reactor design and infrastructure capable of hosting and supporting a safety; emergency response; nuclear safeguards; radiation demonstration reactor. health impacts; environmental impacts; and nuclear waste management (Exhibit 4-7). To provide a consistent New products and services in the Energy sector, framework for transforming, renewing and rationalizing whether self-performed by CNL or developed and CNL’s capabilities, assets and facilities, these functions licenced to a spin-off entity, will relate to delivering have been restructured into six broad S&T capabilities specialized nuclear high-quality manufactured (Exhibit 4-8), which are described in the following sections. materials, systems or components. These projects, the details of which are commercially Of its existing capabilities, some are differentiating, as sensitive, may involve development and testing evidenced by features such as unique, single-market player of new manufacturing techniques or the products and deep skills, while others are not unique but required themselves. Where needed, CNL will invest to meet and grow beyond the federal and commercial commercial margin to increase capabilities that will revenue targets. enable CNL to win, and deliver work for customers as well as complete early commercial technology CNL will strategically renew and grow its differentiating development activities. Planned capital projects to capabilities to assure long-term sustainability and meet sustain existing hot cell capabilities and build the the current and emerging needs of federal departments new Advanced Nuclear Materials Research Centre will and agencies. also support performance testing and post-irradiation examination for Life Extension/Asset Management CNL will invest selectively in those differentiating and SMR initiatives. capabilities that give us distinct competitive advantage, notably those related to: In the Health, Safety and Security, and Environment sectors, CNL will achieve its revenue targets by ♦ Behaviour of irradiated materials, particularly developing products and services that are in high zirconium alloys demand by customers but present significant barriers ♦ Design, manufacturing and testing of nuclear fuels to entry by others. A near-term example would be the certification of facilities to Good Laboratory ♦ Investigation into the effects of radiation on Practices standards to enable entry into the radio- mammals as human analogues pharmaceutical development and testing market. In addition, CNL will continue to maximize the ♦ Production of heavy water and tritium, and revenue possible from sale of isotopes. As with the behaviour of hydrogen Energy sector, these projects, the details of which are commercially sensitive, may involve development These differentiating capabilities will drive CNL’s future and testing of new manufacturing techniques or the identity and success. products themselves.

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Evolving federal priorities, new markets and an CNL’s S&T capabilities will be aggressive international approach will require formed with three elements: new skills and capabilities. CNL’s strategy is to develop its capabilities by organic growth and people, facilities and equipment, augment through collaborations that equip CNL with new networks, market access and and collaborations. knowledge. The decision to grow a capability internally or collaborate externally depends on several factors, such as anticipated work; market size; cost and time required to develop the capability; and opportunity for a strategic alliance. This informs CNL’s strategy for capital investment to revitalize the Chalk River campus, as well as its integrated approach to acquiring and developing top-calibre talent.

Collaborations

CNL’s S&T Capabilities Advanced Nuclear Fuels & People Materials Research Nuclear & Systems Engineering Radiology, Radioecology & Dosimetry Hydrogen & Hydrogen Isotopes Management Nuclear Safety, Security & Risk Management Nuclear Chemisty Applications

Facilities & Equipment

Exhibit 4-8: Capabilities Model

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CNL’s six S&T capabilities are underpinned by diverse expertise that will evolve to meet the demands of industry and the government.

DIFFERENTIATING ENABLING

Nuclear Advanced Hydrogen & Radiobiology, Safety, Nuclear & Nuclear Nuclear Fuels Hydrogen Radioecology Security & Systems Chemistry & Materials Isotopes & Dosimetry Risk Engineering Applications Research Management Management

Fuels & Hydrogen Reactor Safety Nuclear Analytical Materials Radiobiology Applications & Experiments & Systems Chemistry Irradiation Technology Analysis Analysis

Advanced Radioecological Tritium Computing, Nuclear Nuclear Power Fuel Fabrication Monitoring Handling Modelling & Instrumentation Plant Chemistry and Testing Simulation

Radiological Tooling Systems Fuel Testing & Non-prolifera- Research & for Hot Performance tion Studies Assessment Environments

Non-destructive Irradiated Evaluation Materials Cyber Security Technology Testing for Severe Environments

Nuclear Regulatory & Materials Component Compliance Testing Design & Support Testing

Forensics & Detection

Exhibit 4-9: CNL’s Six S&T Capabilities

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4.2.7.1 ADVANCED NUCLEAR MATERIALS to grow from about 150 to 225 over 10 years. CNL has benefitted from the deep experience senior staff have AND FUELS RESEARCH developed in working with the utilities, and classroom The advanced nuclear materials and fuels research training knowledge management will be critical to capability includes the examination of irradiated assuring this practical expertise is maintained. Key materials and understanding of material behaviour. areas of expertise where CNL will build additional It also encompasses the development and delivery depth include fuels, metallurgy and corrosion. As of experimental and theoretical nuclear fuel S&T, commercial work ramps up over the eight years before including fuel cycles, fabrication, testing and post- the new facilities are operational, additional technical irradiation examination. This capability is underpinned staff and operators will be needed to support multiple by a suite of hot-cell facilities that are vital to shifts. Canada’s nuclear industry. The hot-cell facilities are capable of examining ex-service components from 4.2.7.2 RADIOBIOLOGY, RADIOECOLOGY nuclear reactors, processing radioisotopes that are AND DOSIMETRY used for a broad range of industrial applications, and conducting nuclear forensics, which enables Canada to The radiobiology, radioecology and dosimetry provide independent and impartial investigations for capabilities include research and services related international counter-terrorism and non-proliferation. to interactions between radiation, radionuclides, biological systems and the physical environment. LOOKING AHEAD This includes the ability to: To achieve CNL’s small modular reactor and fuel fabrication aspirations, as well as the projected ♦ Study the effects of radiation on laboratory increase in commercial work for existing reactors, animals, as surrogates for humans, and biota the advanced nuclear fuels and materials research within the laboratory and environment, with capabilities must grow. The greatest risks to expansion a particular focus on low-dose radiation and of the Energy program are aging facilities and staff environmental radioactivity demographics. ♦ Measure, map and model the fate of radionuclides As described in Section 6.3.1, Capital investment plans within air, soils and the aquatic environment for the new Advanced Nuclear Materials Research Centre feature new hot- cell facilities that will enable ♦ Measure or estimate radiation exposures and post-irradiation examination of SMR fuel and LWR calculate resultant doses and health risks to light water reactor fuels, and glovebox facilities workers and the public to support the development of advanced fuel In addition to radiological protection and safety in the fabrication concepts. Co-locating these activities as nuclear industry, applications include many aspects of well as storage bays will simplify radioactive material protection related to medical irradiations, the use of transportation and improve overall work efficiency. radioactive materials by terrorists and environmental Capital investment will also be used to sustain existing radioactivity. Through radionuclide separation and hot cell facilities through to commissioning of the detection, biodosimetry methods, atmospheric new Centre, planned to begin in 2023 (Section 6.3.4). dispersion modelling, and modelling for environmental Staffing must increase substantially, and it is projected risk assessment, this capability also supports the

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Federal Nuclear Emergency Plan, the Federal programs. To mitigate the risks of a narrow customer Radiological Assessment Team and federal emergency base, CNL’s Science Advisory Board was engaged and response dosimetry. has identified additional commercial and collaborative opportunities, which are being explored, for this When combined with CNL’s nuclear chemistry capability. applications capability, nuclear waste applications include selective separation of contaminants from 4.2.7.3 HYDROGEN AND HYDROGEN gaseous and liquid effluents; development of membrane technologies for waste water treatment; ISOTOPES MANAGEMENT decontamination of solvents/oils contaminated with The hydrogen and hydrogen isotopes management various radionuclides; electrochemical processing capability includes heavy water (deuterium oxide) for the removal of contaminants from liquid wastes; production and management; tritium handling, bioremediation; soil monitoring and sorting; waste separation and management, including applications immobilization processes; and waste form evaluation. in international fusion energy development areas; hydrogen safety and control for nuclear and non- LOOKING AHEAD nuclear applications; hydrogen production processes Coupled with CNL’s nuclear chemistry applications, using nuclear and renewable energy sources; energy the capabilities in this area are fairly well equipped to storage strategies; and applications of catalysis and support the Decommissioning & Waste Management polymers. Mission under the Environment program, as well as monitoring and emergency response needs of LOOKING AHEAD the Safety and Security program. The key area that CNL’s hydrogen and hydrogen isotopes management will require changes is in radiobiology to support capability is well equipped with new hydrogen and CNL’s alpha research goals. In general, rather than tritium facilities at Chalk River, and a team with developing new capabilities, risks related to entering internationally recognized expertise. As further new markets and pharmaceutical research will be described in Section 6.3.1, completion of Building 215 mitigated by partnering to enable clinical trials and will provide enhanced tritium facilities and enable the market penetration. decommissioning of Building 250 to address long- Capital investment will be used to upgrade facilities standing health and safety issues. Currently, the team and lab practices to meet modern standards in the is balancing an array of smaller projects, and there is radiochemical laboratories, the Biological Research an opportunity to refocus the team on fewer, but more Facility as and the new laboratories in the Harriet substantial, projects. Within two to three years, there Brooks building. In the near-to-medium term, alpha will be clear indications on the success of the initiative research will also be supported by the Recycled Fuel to decarbonize Canada’s transport sector. This is Fabrication Laboratory. In the longer term, gloveboxes expected to drive facility modifications funded by third will be used in the new Advanced Nuclear Materials parties and to create a need for increased staffing, Research Centre. Staffing is expected to stay relatively moving from a current level of about 30 to a new level stable, although small increases (approximately five of about 35. To sustain world-class expertise in tritium, staff) are expected in radiobiology, and there are CNL will increase the technical depth in this area to functions currently dedicated to NRU radiochemistry mitigate the risk of losing singleton experts. and dosimetry that may be refocused toward other

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To provide a cost-effective means of upgrading spent Advanced computing, modelling and simulation are heavy water from the ZED-2 reactor and create an essential enablers for a broad range of science and opportunity that may be commercially exploited, CNL engineering disciplines and applications. These include, will explore expanding this capability by developing for example: a heavy-water upgrading facility through New S&T funding. ♦ Reactor physics

Related facilities at Whiteshell Laboratories are being ♦ Heat transport thermal hydraulics reviewed with respect to the business case for the ♦ Fuel and fuel channel thermal mechanical effects operation of the Containment Test Facility and the Large-Scale Vented Combustion Test Facility. CNL will ♦ Fission product release and transport present a recommendation to AECL in 2017. ♦ Containment thermal hydraulics and chemistry 4.2.7.4 NUCLEAR SAFETY, SECURITY, AND ♦ Radiation physics, atmospheric dispersion and RISK MANAGEMENT biological effects

The nuclear safety, security and risk management ♦ Severe accidents capability includes understanding and mitigating ♦ Reactor component performance and monitoring risks associated with nuclear activities in Canada and internationally in the areas of reactor operation; ♦ Nuclear fuel waste disposal technology reactor safety; cyber security; waste management; non-proliferation; regulatory and compliance support; ♦ Advanced nuclear materials research and forensics and detection. These capabilities have applications in small energy systems and advanced Cyber security for nuclear applications is an area of reactor technologies. increasing interest to both the nuclear industry and the regulators, and CNL is uniquely positioned, having Reactor safety experiments and analysis enables successfully developed and delivered cyber-secure the assessment of advanced reactor design and systems for the nuclear industry. Border security, illicit support systems for demonstration and licencing transport of nuclear materials, and nuclear safeguards aspects. This encompasses design basis and beyond are an international concern. CNL’s capabilities enable design basis for normal operating conditions for the technology and methodology development to support entire reactor system, from fuel behaviour up to and policy decisions. including containment performance. It also considers in-core cooling systems following loss of moderator LOOKING AHEAD as a heat sink, hydrogen behaviour (including To best serve the government, expanded commercial detonation), and mitigation techniques for severe markets, and the SMR initiative; CNL’s nuclear safety, accident conditions. Integration with other capabilities security and risk management capability must become enables the conceptual development and inspection increasingly conversant with a variety of reactor and monitoring technologies for advanced reactors, technologies, codes and models. Reactor safety sustainment of the Slowpoke reactors around the support to the government in case of accidents will world, as well as safety and sustainability evaluations be sustained, and CNL will pursue certification of its for advanced small energy system concepts. nuclear forensics function to create opportunities with the IAEA.

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Modelling and computation functions are expected 4.2.7.5 NUCLEAR AND SYSTEMS to refocus, moving from developing in-house codes to becoming expert users of international codes; ENGINEERING performing verifications and validations; and advising on their application. Overall, this function is expected The nuclear and systems engineering capability to reduce by about 20 staff, who will be deployed to includes the design and development of components opportunities in nuclear systems and engineering, and integrated systems, such as complex one-off and hydrogen, and advanced nuclear materials and fuels first-of-a-kind devices; test rigs; tooling sets; inspection research. and monitoring tooling and techniques; and computer and control systems. These systems are sought after While the business case for the ZED-2 reactor appears to anticipate and mitigate operational issues affecting sufficient for ongoing operation, there are challenges the nuclear industry; small and research reactor with the substantial investment required to recharge technology development areas; counter-terrorism; the heavy water inventory as required in the next two- non-proliferation; and decommissioning and waste to-three years. As described in Section 4.2.7.3, a New management. Applications include tooling systems S&T project is being considered that would upgrade for high radiation and extreme environments; non- the heavy water inventory while developing a new destructive inspection tooling and analysis techniques; facility for commercial work. To expand the customer nuclear qualification of systems and components; base for the ZED-2 reactor, CNL is also exploring sealing technology; nuclear instrumentation; opportunities to expand its nuclear instrumentation and forensics of ex-service tooling systems and calibration services. components.

The nuclear cyber security initiative will require a new LOOKING AHEAD cyber security test facility (a New S&T investment), as well as a small increase of about eight staff. Similar to advanced nuclear materials and fuels, the nuclear and systems engineering capability must Related facilities at Whiteshell Laboratories are being increase to achieve CNL’s growth targets for supporting reviewed with respect to the business case for the existing reactors, particularly in the area of aging operation of the RD-14M facility. CNL will present a management. Staffing is anticipated to grow from the recommendation to AECL in 2017. current level of about 150 to a level of about 175. To leverage CNL’s strength in delivering solutions to emergent complex issues, CNL will focus on becoming highly responsive and mobilizing multi-discipline teams quickly. Although there are no specific facility risks requiring significant investment, CNL must assure certain types of facilities are available to support commercial work throughout the revitalization of the site, such as high bay, and large active and inactive laydown areas.

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4.2.7.6 NUCLEAR CHEMISTRY The nuclear chemistry applications capability is required to support a wide range of federal APPLICATIONS and commercial S&T projects, as well as Decommissioning & Waste Management The nuclear chemistry applications capability activities. includes chemistry expertise in materials, on surfaces and in solution in nuclear power plant primary and secondary systems; LOOKING AHEAD advanced reactor concept chemistry; As a key enabling capability for all the radioisotope separations and actinide other S&T capabilities, the demand for handling to support medical applications; nuclear chemistry applications is expected and the analytical, radiochemical and to increase similarly. However, staffing is environmental monitoring functions that expected to remain relatively stable, as the enable CNL’s differentiating capabilities. slowing demand from NRU is balanced by increased reactor life-extension support. This capability focuses on the underlying Capital investments concluding in 2017 have science relating to materials performance in revitalized and added new chemistry and extreme environments, and is supported by radioanalytical laboratories to underpin this facilities to irradiate, work with and analyse capability. New S&T funding will be used to irradiated matter. cross-train and increase junior staff exposure to the utilities, which will develop technical It encompasses, for example: depth in at-risk expertise such as reactor ♦ Radiation chemistry chemistry and practical station experience.

♦ Corrosion science

♦ Aquatic surface chemistry of irradiated and non-irradiated systems

♦ Activity and corrosion product transport

♦ Chemical and microbial fouling of steam generators

♦ Evaluation of materials under dry irradiation conditions

♦ Surface characterization

♦ Radiochemical separations and analysis

♦ Advanced analytical radiochemical and mass spectrometry methods to support in vitro, and in vivo, routine and emergency bioassay

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4.3 ASSUMPTIONS, CONSTRAINTS AND ENABLERS

ASSUMPTIONS CONSTRAINTS The development of the S&T strategies described in The development of the S&T strategies described in this document is based on the following assumptions: this document considers the following constraints:

♦ Funding profile and third-party commercial ♦ Certain commercial customers may require terms revenues will be in line with the financial and conditions that AECL/CNL is unable to accept projections in this document (such as indemnification)

♦ The Federal Nuclear S&T Work Plan sustains the The full cost recovery mandate, coupled with high fixed five theme areas in this document, and CNL costs, will result in a rate structure that is uncompetitive remains a key supplier for CANDU Owners Group in certain markets research and development

♦ Third-party intellectual property rights are resolved ENABLERS in a manner that enables successful achievement In addition to the changes being made in S&T of the S&T scope described in this document organization and management (Section 4.1.1), commercial (Section 4.2.6) and capabilities (4.2.7), ♦ The number of site visitors and collaborative successful execution of the S&T strategies relies on partners will grow, which may drive security, IT and integration of the many improvements described general infrastructure needs throughout this document, and particularly those pertaining to developing the Chalk River site and ♦ SMR vendors come forward to advance improving CNL management and operations (Sections demonstration projects, which in turn drive real 6 and 7). The strategic development of collaborations deployment in time horizons that are financially and alliances will be particularly important to realizing feasible (i.e. earlier than 2030) many of CNL’s S&T aspirations. As described in Section ♦ Advanced manufacture of fuel proves to be 6, capital investment in the Chalk River site will technically feasible and commercially attractive support collaborations and industry-academic users by modernizing IT systems, facilitating site access ♦ CNL secures substantive work in the hydrogen and and introducing a business hub that allows for future cyber security fields expansions.

♦ Pharmaceutical partner(s) are forthcoming to work on targeted alpha therapy

"Informed by Canadian and global trends and prospects, CNL will combine federal and commercial priorities and needs into focused, application-driven research and technology development."

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COLLABORATIONS CNL will seek to leverage the government’s financial investment in CNL, and in Canada’s universities CNL will foster strategic alliances and partnerships and other national laboratories, such as TRIUMF, to enhance its capabilities while sharing costs and the Canadian Light Source and the Fedoruk Centre. risks; deliver S&T programs; leverage federal funding, Collaborations will be used to share the high cost and commercial revenue and New S&T investment; and risk of research and development, particularly with lay the foundation for creating world-leading clusters customers and supply chain during the early stages for nuclear innovation. This approach is consistent of development. CNL will use collaborations to access with global trends in science and technology. Given additional funding, targeting a 4:1 gearing to leverage the breadth of federal interests, which may not be federal funding, with a similar target for New S&T commensurate with the federal funding available, Funding. CNL will need to leverage federal investments to attract additional in-kind and financial resources. Many federal priorities are also international priorities, UNIVERSITY ALLIANCES such as the impact of low levels of radiation on living CNL will nurture alliances with a small collection of things. CNL will leverage international interest in its universities to enhance relationships and provide basic programs, and socialize advancements through these science and innovative capacity. The objective will be communities. This will enable CNL to minimize the cost to establish at least one alliance for each of the six of developing new capabilities, and enter new fields S&T capabilities by 2019. This will complement CNL’s by using partners’ market presence, knowledge and strategy to focus on the more advanced technology penetration. readiness levels of applied science, allowing for improved integration with universities; cost-effective testing during conceptual stages, at small scales and Using systematic make/buy evaluations of non-key in inactive environments; and access to a larger skilled skills, CNL will exploit the market to team with top- researcher pool and knowledge base. calibre organizations to create: By 2021, CNL will have migrated to the University ♦ Partnerships and consortia to participate in Research Alliance Model. Alliances will feature: discrete projects, sharing costs to generate funds, and creating vehicles for generating intellectual ♦ One or more universities, with a lead university property ♦ A world-class pre-eminence in the field ♦ Strategic alliances to access skills and markets for S&T (for example the proposed strategic alliance ♦ Demonstrated capability to generate new ideas with the U.K. National Nuclear Laboratory) and concepts

♦ Alliances based on non-competitive shared goals ♦ Leveraged eight-fold investment, with funding and ongoing relationships through additional mechanisms

♦ Collaborations with paying or cost-sharing partners ♦ An orchestrated exposure to CNL and customer issues ♦ Pre-competitive consortia to explore particular technologies or products, generally for aspirational ♦ Leveraged investment by the universities programs, such as additive manufacture

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5 DECOMMISSIONING & WASTE MANAGEMENT

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CNL’s Decommissioning and Waste ♦ Maintain the lifecycle estimates of AECL’s D&WM liabilities Management (D&WM) organization is responsible for the decommissioning, ♦ Carry out the responsibilities of AECL for the management and remediation of historic low environmental restoration, and waste level radioactive waste in Canada. management strategies and activities which will enable CNL’s ongoing 5.2 STRATEGY nuclear science and technology mission CNL will accelerate decommissioning, and ensure sustainable environmental environmental restoration and waste management projects based on sound waste stewardship. management and environmental principles. Strategic priorities include:

5.1 OBJECTIVE ♦ Improve Integration of D&WM activities: The limited real estate of the Controlled Area D&WM will transform how decommissioning and presents challenges for the competing work waste management is performed at CNL in order missions and requires extensive ongoing to accelerate the reduction of AECL’s radioactive coordination. By selectively isolating portions waste and decommissioning liabilities, allowing of Controlled Area there is the opportunity new facilities to be constructed at Chalk River to initiate decommissioning activities without Laboratories and the S&T Mission to flourish. impacting the objectives of the S&T Mission. The Supervised Area decommissioning will In the 10-year period of this Plan, D&WM’s primary be coordinated with Capital project timelines objectives are as follows: to provide the space required for both permanent new facilities and temporary ♦ Provide a robust environment for growth enabling facilities. through the reduction of risks (health,

safety, security, environmental and

business) and liabilities (future costs)

♦ Transform and enhance the D&WM program, resulting in a combination of highly skilled and motivated staff and processes aligned to international best practices.

♦ Fully integrate all D&WM and Environmental activities within and across sites to achieve measurable enhancements and outputs, productivity improvements and cost efficiencies.

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♦ Construct and operate the Near Surface consolidation at Chalk River Laboratories Disposal Facility: This facility for low-level meets Whiteshell Laboratories’ contract and other suitable waste streams will be requirements and minimizes ongoing brought on line in the shortest period of storage and surveillance costs at Whiteshell time to enable the decommissioning of Chalk Laboratories and the prototype reactors. River facilities and closure of Whiteshell Laboratories, as well as demonstrate a cost- ♦ Repatriate Special Nuclear Material to effective disposal method for low-level and the United States: Repatriation of Highly other suitable waste streams in Canada. Enriched Uranium fuel, Target Residue Material, and other special nuclear materials ♦ Establish an Integrated Waste Strategy for stored at Chalk River will avoid all future all CNL managed waste: Implementation of storage, reprocessing and disposal costs, and the Integrated Waste Strategy for all waste discharge the liability decades earlier than types is the key to ensuring identification of planned. all waste streams, avoiding the production of orphan wastes, and enabling subsequent The strategic priorities listed above will help development of plans for future capabilities, transform D&WM into a more efficient and facilities and processing requirements. effective organization, and provide an enduring program basis and skilled workforce to continue ♦ Align Decommissioning and Environmental into the future. D&WM will have completed most Remediation to International Best of the Facility Decommissioning at Chalk River Practice: The application of proven within the 10 years of this plan, but much work practices to support the safe accelerated will remain to be done. The work continuing after decommissioning and environmental 10 years includes the NRU decommissioning; remediation is key to transformation and Cemented Molybdenum Waste treatment and enhancement of the D&WM program. disposal; Intermediate-Level Waste treatment and disposal; environmental remediation of many of ♦ Accelerate remediation of Waste the Waste Management Areas; and continuing Management Areas and other affected waste management operations of the Near areas: CNL will develop a cleanup plan, Surface Disposal Facility and Waste Management approved by AECL, to establish land end uses Areas. Additionally, a significant amount of and outline the associated cleanup criteria. offsite work will also have been accomplished in The project will identify stakeholders and the 10 years, specifically the Port Hope Project, work with them and AECL to gain agreement. Nuclear Power Demonstration and Whiteshell Laboratories will be completed. However, final ♦ Consolidate Intermediate-Level Waste decommissioning will likely not be complete at (ILW) and used fuel for long-term storage: prototype Douglas Point and Gentilly-1 reactors. Consolidation of Intermediate-Level Waste Therefore, the programs and skills learned during will make use of existing safe, secure and the 10 years of this plan will still be needed at suitable storage capacity at Chalk River CNL, and will become valuable to the general Laboratories until permanent disposal decommissioning industry. facilities become available. Used fuel

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5.3 CHALK RIVER INFRASTRUCTURE DECOMMISSIONING GOALS/MILESTONES

On the Chalk River site, CNL will focus on early reduction of liabilities in the Supervised Area footprint to build a skilled workforce, remove redundant buildings, and clear ♦ National Research Experimental reactor space for S&T and supporting facilities. In the Controlled decommissioned to an end state agreed with Area, the schedule for reducing the risk in high-hazard the Canadian Nuclear Safety Commission facilities will rely on construction of the Near Surface Disposal Facility to provide a final waste disposal path. ♦ NRU reactor in a Storage With Surveillance state CNL will self-perform the majority of decommissioning ♦ Controlled Area footprint reduced in line with activities to gain efficiencies and reduce risks associated decommissioning plan with redundant, high-hazard facilities. In the Supervised Area, integrated teams will develop decommissioning ♦ Decommissioning of buildings in the skills on low-hazard buildings, which will ready them Supervised Area completed for higher hazard work in the Controlled Area. With this progressive approach, decommissioning teams ♦ More than 120 buildings decommissioned and will continue to learn and build upon relatively low- demolished risk experience, expanding into more difficult areas as they become more efficient in the treatment and ♦ Sustain improved performance in management of industrial and radiological hazards. environmental and safety standards This approach will also support the acceptance and adaptation of site wide program controls to enable an accelerated decommissioning schedule. International decommissioning experience gained on multiple sites facilities in the Controlled Area to support temporary has demonstrated that the development of a trained and infrastructure and access requirements, which will enable experienced workforce with flexibility to move between future decommissioning and demolition work. During this buildings as conditions require, will be a key step in safely period, all non-releasable waste from the Controlled Area accelerating decommissioning scopes of this magnitude. will be supported by CNL’s Waste Operations program, Additionally, development of a core team and capabilities which will provide interim storage. Planning is underway will reduce incidents and costs, particularly those to ensure that continued interim waste storage needs associated with multiple subcontractors trying to are met and additional interim waste storage capacity perform multiple scopes of work on a congested site is developed as required to address any gaps. Any amid other ongoing missions. Decommissioning will be adjustment required to the planned sequence of work coordinated with capital project timelines to provide the will be evaluated during the development of the Annual space required for both permanent new facilities and Program of Work and Budget, taking into consideration temporary enabling facilities. new information available as capital projects progress, mission requirement change, and the potential for risk Until the Near Surface Disposal Facility is operational in reduction increases or decreases. fiscal year 2020-21, decommissioning in the Controlled Area will focus on minimizing radiological waste and With the availability of the Near Surface Disposal Facility removing areas and facilities of high concern. This in fiscal year 2020-21, CNL will commence large-scale will be based on health, safety and environmental demolition work in the Controlled Area. Work will risk evaluations. Early emphasis will be on removing be closely coordinated with the start of larger scale

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Exhibit 5-1: Chalk River Built-Up Area

environmental restoration efforts, which will need established by the potential to reduce maintenance costs to supply soil to the Near Surface Disposal Facility and risk to health, safety, security and the environment. concurrently with building debris. With the establishment of environmental remediation cleanup criteria, CNL will By 2026, significant progress will have been made in drive to a seamless transition between completion of decommissioning redundant infrastructure at Chalk River, building demolition and any required soil remediation. with the site featuring: CNL will further advance schedules and reduce costs by using the same personnel and equipment already ♦ More than 120 buildings turned over for mobilized for demolition. decommissioning

♦ More than 40 buildings decommissioned and The initial decommissioning in the Controlled Area will demolished in the Supervised Area focus on redundant National Research Experimental buildings and redundant laboratory buildings, followed ♦ More than 80 buildings decommissioned and by the decommissioning of the National Research demolished in the Controlled Area Universal reactor support buildings once the reactor is no longer operational. The NRU reactor will be placed ♦ The NRU operating in Storage With Surveillance in a Storage With Surveillance state for several decades to allow radioactivity to decay. The decommissioning ♦ The National Research Experimental reactor priorities in the Supervised and Controlled Areas will be decommissioned to an agreed end state coordinated with, and rely on, building turnover from S&T ♦ Controlled Area footprint reduced in line with and site operations. For periods when multiple buildings decommissioning plan are available to decommission, the priorities will be

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5.4 WASTE MANAGEMENT GOALS/MILESTONES WASTE PROGRAMS CNL Waste Management Program provides oversight of waste management processes and requirements for CNL-managed waste and provides waste management ♦ Develop and implement an Integrated services and support to all waste generators to meet Waste Strategy the D&WM strategic priorities and CNL business ♦ Develop and implement a Waste Data needs. Requirements and processes will assure that Tracking System to support all CNL sites activities involving the planning, handling, processing, transporting, storage and disposal of wastes are ♦ Carry out optioneering to support D&WM performed in a manner that protects workers, the Mission regarding waste management public and the environment, and are in compliance with applicable regulatory and licence requirements. ♦ Develop and implement more-effective The collection and management of relevant data will waste planning and waste generator support be improved with the implementation of an integrated services and capabilities Waste Data Tracking System. ♦ Develop D&WM waste transportation strategy This work will support CNL’s ongoing science and technology programs, commercial customers and accelerated decommissioning of redundant facilities at the Chalk River site, Whiteshell Laboratories, Nuclear Power Demonstration and the remaining CNL facilities. meeting required contractual obligations, such as the Whiteshell Laboratories decommissioning. In To support the accelerated decommissioning schedule order to achieve decommissioning goals, a strategic and associated increased volume of waste, CNL will transportation plan for waste from other sites to the focus on waste planning that coordinates and integrates Chalk River site will be developed and implemented. all CNL sites. Currently in development is the Integrated Once the Near Surface Disposal Facility becomes Waste Strategy to capture the full lifecycle of waste operational, waste streams pathways will be confirmed, management at CNL. The baseline of waste routes at and allow CNL to refocus on longer-term objectives, all CNL sites will continue to be updated as options such as Intermediate-Level Waste disposition. are evaluated and the strategy is progressed. This will involve coordination and integration of all areas In the longer term, some examples of long-term waste and activities to ensure all known current and future management that will require studies, which will be anticipated wastes are captured and dispositioned safely completed by the end of 2026, include: and in a cost-effective manner. This work will contribute to greater integration in waste management strategy ♦ Identifying options and developing plans for across Canada, in collaboration with other Canadian disposition (long-term storage and disposal options) industry partners. of Intermediate-Level Waste

♦ Identifying options and developing plans to address In the near term, CNL will undertake work to ensure waste at Prototype Reactor decommissioning sites that continued interim waste storage needs are met and additional interim waste storage capacity is developed ♦ Identifying options and managing through the as required to address any gaps. This will ensure that Integrated Waste Strategy to develop plans for used plans are in place for all CNL-managed waste, including

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fuel (beyond 2026) for continued safe management planned for over a two-year period and will be followed and storage until the Nuclear Waste Management by turnover of the NSDF to Waste Operations for active Organization used-fuel repository is available commissioning and normal operation. The engineering and construction project is scheduled to be completed ♦ Continuing review and optimization of all existing and closed out in 2020. and planned waste streams The implementation of a broad-based, integrated project Once planning and studies are complete, work will begin team will be essential to the success of this project. CNL to develop projects to address the long-term gaps. will minimize the risks associated with matrix resourcing by direct incorporation of most of the required skills into LONG-TERM WASTE MANAGEMENT the project organization. Early and effective engagement AND DISPOSAL with AECL, the Canadian Nuclear Safety Commission, Indigenous peoples, elected officials, and other key CNL will provide long-term waste management stakeholders (particularly the public) will be essential to capabilities to support decommissioning, environmental meet the accelerated NSDF schedule objectives. remediation and operational needs such that liabilities and risks are reduced. The projects to develop these CNL will continue to consider other capability capabilities will be closely connected to the Integrated development projects for the Chalk River site: Waste Strategy, which will inform project scope and decision making. ♦ Activities in 2017-18 will wrap up the feasibility phase of the Geological Waste Management A key enabling action and focus for CNL will be the accelerated development of the Near Surface Disposal Facility at the Chalk River site as a priority initiative. This facility will provide disposal capacity for low-level Design, licence and construct new Near and other suitable waste streams (such as selected Surface Disposal Facility and complete intermediate-level waste) that meet the NSDF’s waste acceptance criteria. inactive commissioning and turnover to Waste Operations by March 31, 2020. Key outcomes will be the design, licencing, procurement, construction and commissioning of the NSDF, including the initial disposal cell(s), waste water/leachate treatment plant, and necessary operational and site infrastructure to manage initially up to 525,000 cubic metres with expansion capacity for up to 1 million cubic metres of radioactive waste. High priorities for 2017 to 2018 include site selection; engagement of client, regulator and key stakeholders and Aboriginal groups; detailed design and environmental impact statement; and licencing approvals. Construction of the NSDF and inactive commissioning work is Exhibit 5-2: New Near Surface Disposal Facility Rendering

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Facility project. No further scope is planned beyond 2017-18. The project will therefore be paused in a suitable condition as a potentially viable option for GOALS/MILESTONES permanent disposal for Intermediate-Level Waste in the frame of a national solution and consistent with CNL’s Integrated Waste Strategy. ♦ NSDF environmental assessment and licensing ♦ Additional modular storage will be assessed and, hearing decision specifically, Shielded Modular Above Ground Storage (SMAGS 4 to 6) will be deferred pending interim ♦ NSDF turnover for active commissioning storage assessment and NSDF capability to plan and reduce inventories.

♦ Waste Processing Facility, which will be deferred pending analysis of requirements for waste through competitive procurement processes and CNL treatment for Low- and Intermediate-Level Wastes resources will specify requirements and oversee delivery. that do not (or will not) meet the waste acceptance criteria for NSDF. It is anticipated that the Waste Throughout project execution, a clear line of sight Processing Facility will be needed in the 2020-2021 will be maintained on dependent projects. Several time frame, therefore a future Annual Program of D&WM programs (such as Facilities Decommissioning, Work and Budget and liability cost estimate needs Environmental Restoration, and Waste Management) will be revisited to provide for a right-sized capability. have initiatives that rely on the timely advancement of the NSDF project to completion. Similarly, the NSDF CNL will not proceed with the previously planned Chalk project depends on Waste Operations being ready to River Very Low-Level Waste project, as the NSDF will assume responsibility at turnover. provide the necessary capacity, therefore the VLLW development and operational liability costs have been To advance resolution of disposition for wastes that removed from the Liability Cost Estimate via change cannot be emplaced in the NSDF, a Pathway Analysis for control. Waste Requiring Additional Treatment (WRAT) will be completed, including a feasibility study to identify proven The plan for the NSDF and other long-term management treatment technologies, an options evaluation to select and disposal facilities is to develop the approach and the preferred option(s) for the treatment of WRAT, and a build the infrastructure in harmony with the Integrated business case for the preferred options. Waste Strategy and the D&WM Detailed 10-Year Plan. The large investment required for the NSDF must align with By 2021, one of CNL’s key achievements will be the overall liability reduction and spend plans, and build on construction and commissioning of the NSDF. This will the experience gained on the similar Port Hope and Port include handover to Waste Operations and emplacement Granby projects. of the first active wastes and operational Waste Water Treatment Plant. Several key strategic decisions and For new builds and expansions, execution strategies actions will be made during this period including: will duly consider CNL’s related experience, regulatory requirements, linkages to other projects, existing ♦ Site of the NSDF facility capabilities and the expertise available through Reach Back and in the supply chain more generally. As a ♦ Timely and meaningful engagement with AECL, rule, detailed design and construction, along with Aboriginal groups, host communities, the public and independent Quality Assurance services, will be acquired other stakeholders who have interests in the NSDF,

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and securing the support for siting at Chalk River With active commissioning of the NSDF completed by and project implementation from key interest groups 2021, safe operation of the facility will continue to 2026 and beyond. CNL expects a continued need to assess new ♦ Timing and format of regulatory interactions and waste streams, and the feasibility and cost-effectiveness submissions per the NSDF Administrative Protocol of treating noncompliant waste in order to meet the waste acceptance criteria. ♦ Decision rendered and implementation in progress for treatment for Low- and Intermediate-Level Waste Additional long-term storage or disposal facilities to that cannot be disposed in NSDF handle Intermediate-Level Waste are not anticipated during this period. It is, however, expected that efforts ♦ Avoidance of construction of Shielded Modular will be made to identify appropriate solutions for the Above Group Storage 4 through 6, or repurposing long-term disposition of all CNL-managed wastes. the facility resulting in cost savings to plan

Another notable item in this timeframe will be the establishment of need and requirements for additional waste management facilities to support longer-term integrated waste strategies.

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LEGACY WASTE PROCESSING & STORAGE CNL will continue to provide cradle-to-grave waste GOALS/MILESTONES processing and storage services that protect the environment, comply with regulations, and assure public health, safety and security for future generations of Canadians. CNL will carry this out in an integrated ♦ Fuel Packaging & Storage (FPS) facility active manner, taking the following strategic priorities into commissioning completed consideration: integrate D&WM activities; construct and operate the Near Surface Disposal Facility; establish an ♦ Transfer of fuel to FPS completed Integrated Waste Strategy; and consolidate Intermediate- Level Waste. This will ensure the continued availability ♦ New office trailers at Waste Management of fit-for-service waste storage facilities and capability Area B commissioned for both ongoing routine operations and special projects ♦ Hazardous Waste Facility relocated to related to waste handling on the Chalk River site. Waste WAF site received from off-site generators (including Whiteshell Laboratories and other CNL sites) will be managed ♦ Interim Low-Level Waste storage facilities appropriately, and storage capacity and commercial established waste capabilities will be identified and available for decommissioning and demolition wastes prior to the ♦ Routine operation of NSDF initiated operational availability of the NSDF.

A variety of approaches will be used to meet these demands, which will continue to be developed as part of the Integrated Waste Strategy activities to ensure such as Shielded Modular Above Ground Storage. gaps in waste management are addressed, and options Waste Operations will implement changes to the considered are justified and underpinned to meet CNL characterization program to de-inventory the Waste business needs, including expansion of site facilities Management Areas, reduce the volume in storage to and the use of commercial waste processing (such as just Intermediate-Level Waste and adjust the Waste metal melt or incineration). The current plan does not Management Areas that are empty to surveillance with envision a need for any new long-term storage facilities maintenance or decommissioning and demolition. To support the larger Waste Management Organization to enable the delivery of this approach, the installation of accommodation and welfare facilities will be completed.

In the first five years, fuel from all but one of the targeted 97 tile holes will have been transferred to the Fuel Packaging & Storage facility. The final module will require further assessment and the development of a strategy prior to retrieval. The time of retrieval will be dependent on the method and cost determined by the assessment. Fuel Packaging & Storage fuel transfers, as well as the drying, will be complete within this 10-year period.

Exhibit 5-3: Moving legacy waste

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In addition: ♦ Operation of groundwater and waste water treatment facilities ♦ Interim Low-Level Waste storage facilities will have been established to support accelerated Once the NSDF is operational, demands on interim decommissioning activities prior to NSDF storage capacity will be reduced, and operations will operations begin to focus on emptying waste in temporary storage and emplacing in the NSDF, followed by emptying other ♦ Waste deemed suitable for off-site processing will structures (such as Modular Above Ground Storage, have been removed from current storage facilities Shield Modular Above Ground Storage and bunkers) of waste that is suitable for the NSDF. This will enable ♦ Interim storage capacity for Intermediate-Level current suitable waste storage capability to be reused Waste and fuel from Whiteshell Laboratories, as consolidated Intermediate-Level Waste storage. scheduled to be transferred to Chalk River between 2018 and 2024, will be identified and available, and receipts will be managed by Waste Management STORED LIQUID WASTE Operations CNL will safely remove and process defined legacy radioactive liquid wastes (240 cubic metres) from ♦ The Hazardous Waste Facility and the Radioactive buildings on the Chalk River site, and decommission the Waste Characterization Services will have been associated Stored Liquid Waste tanks and structures. To relocated to the Waste Analysis Facility site ensure ongoing compliance with regulatory requirements ♦ Temporary office space for Waste Management and mitigate the risk of a leak to the environment Operations staff will have been installed at Waste as retrieval and decommissioning projects progress, Management Area B CNL will perform ongoing patrols, maintenance and modifications. ♦ Support for cemented molybdenum waste emplacement and Highly Enriched Uranium fuel To reduce the highest hazard and environmental risk transfer will no longer be required associated with the continued storage of these wastes, cesium-137 will be removed from Tanks 283A, 283C and Following NRU shutdown and once waste is no longer 283D, through use of a new ion exchange filter system generated, resource-intensive fuel emplacements will no in advance of the waste volume being removed and longer be needed. At that time, focus will shift to liability processed. waste. In addition to the provision of ongoing cost- effective waste management services and development The Tank Access & Retrieval project will provide and of activities identified to address gaps in the waste install the systems to safely gain access to the tanks management lifecycle, 2021 to 2026 will include: and subsequently transfer the tank contents to a liquid processing capability. The tanks and associated ♦ Ongoing surveillance and monitoring of the Waste structures were constructed in the 1950s, and range Management Facilities in design and accessibility, and therefore identifying the methodology to access the wastes is a key ♦ Operation of the Near Surface Disposal Facility activity in Fiscal Year 2017-18. Processing of the Stored Liquid Wastes will generate a significant quantity of ♦ Characterization and segregation of existing stored radioactive waste product. In FY 2017-18, the project will waste in Shielded Modular Above Ground Storage identify optimized processing solutions for each waste and bunkers stream and an implementation strategy which aligns ♦ Consolidation of Intermediate-Level Waste storage most effectively with the Integrated Waste Strategy and disposal Waste Acceptance Criteria, enabling informed

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decisions to be made to minimize generated waste volumes and project costs. Where waste streams will require processing not currently available at Chalk River, GOALS/MILESTONES capabilities will be defined and installed based on the identified solutions.

The tanks and associated structures will continue to ♦ Cesium-137 removal from Tanks 283A, 283C be managed as operational facilities under the Chalk and 283D completed River Site Licence for the duration of hazard reduction, ♦ B207 decommissioned waste retrieval, waste processing and Post Operational Clean Out activities. Once the operational activities ♦ Design, build and inactive commissioning are completed, CNL will seek approval from the CNSC of the Stored Liquid Waste retrieval and to transfer the facilities into a decommissioning state, processing systems completed enabling the decommissioning plans to be executed. The decommissioning plan for the SLW tanks, vaults, ♦ Stored Liquid Waste retrieval and processing buildings and associated systems will impact or be operations completed impacted by the activities performed by the SLW Retrieval and Processing project, and therefore, to ♦ Stored Liquid Waste tanks and facilities ensure efficient and effective lifecycle management decommissioned of the SLW liability, the decommissioning planning and execution has been integrated into the project structure.

It is expected that routine monitoring and surveillance By 2026, all Stored Liquid Wastes will have been of the SLW facilities will be ongoing in 2021, ensuring removed and processed, the resulting waste product compliance with the regulatory requirements associated transferred to interim storage if not suitable for with maintaining the tanks, vaults and structures in a immediate disposal in the Near Surface Disposal Facility, safe state. The tank access and retrieval systems will and the SLW facilities decommissioned. have been installed, the liquid processing capability designed and in the procurement phase and the plans for decommissioning the facilities defined.

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5.5 FUEL AND SPECIAL NUCLEAR MATERIAL MANAGEMENT GOALS/MILESTONES

CNL will repatriate Highly Enriched Uranium fuel stored at the Chalk River site to eliminate all future storage, ♦ NRX/NRU fuel and Target Residue Material reprocessing, and disposal costs, and discharge the repatriated liability approximately 50 years earlier than planned. This accelerated schedule will assure the availability ♦ Cemented Molybdenum Waste solution of key information and records, take advantage of identified operational knowledge, eliminate ongoing surveillance requirements, and prevent future degradation of ♦ Cemented Molybdenum Waste solution these fuel materials. By the end of 2019, CNL will have designed and ready for construction repatriated the currently accepted National Research Experimental reactor and NRU fuel rods, provided ♦ Used-fuel storage solution identified there are no significant issues with the facilities or fuel ♦ Chalk River site is ready to accept used fuel equipment at the Chalk River and Savannah River sites. for storage In December 2016, the U.S. Department of Energy’s National Nuclear Security Administration authorized the extension of the Foreign Research Reactor Spent Nuclear Fuel Acceptance Program beyond May 2019, baskets to Chalk River and place in dry storage. The on a case-by-case basis. This non-proliferation program third priority will be any other material that United permits U.S.-origin enriched uranium (HEU and LEU), States may determine is acceptable for repatriation, and other special fissile material to be repatriated to the such as plutonium and HEU Scrap. The fourth priority United States for storage and disposal. will be to determine the optimal disposition path for CNL will continue the repatriation of NRX/NRU fuel Cemented Molybdenum Waste, with the goal of safely rods and Target Residue Material, assuming all the managing and reducing the associated liabilities at a currently approved and implemented processes, licences reduced lifecycle cost. and requirements remain in effect. In February 2017, Used fuel managed by CNL requires a long-term AECL provided authorization to proceed with active storage solution until the Nuclear Waste Management commissioning followed by commencement of the Organization’s used-fuel repository has been completed. shipping campaign for Target Residue Material. The most immediate need is to determine the optimal Early priorities relate to ongoing fuel shipments, solution for the fuel at the Whiteshell Laboratories so Target Residue Material shipments, and Whiteshell that the facility can be decommissioned as scheduled. Laboratories fuel transfers. Maintaining all resources CNL manages a wide variety of used-fuel types using for the combined shipment campaign for fuel and TRM different storage facilities at Chalk River, Whiteshell over the projects lifecycle will be the highest priority. Laboratories, Gentilly-1 and Douglas Point. The dry- The campaign will require coordination between the storage canisters and fuel baskets at Whiteshell, Savannah River site, NAC International (cask operator), Gentilly-1, and Douglas Point have similarities that CNL, the U.S. Department of Energy, the Canadian could allow for an integrated approach for future Nuclear Safety Commission, AECL and the local transportation and storage activities. Chalk River governments for every state or province the shipment Laboratories is required to receive and store the used goes through. The second priority will be establishing fuel from Whiteshell consistent with the Whiteshell the capability to transport Whiteshell Laboratories fuel Laboratories Closure Contract schedule. The HEU and

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Used-Fuel Management program will assess the benefits Canada’s Nuclear Waste Management Organization of developing a single integrated fuel retrieval and (NWMO) is working to establish the requirements for its transport system that is compatible with all off-site dry- used-fuel repository. Until the repository is operational, fuel storage facilities. used fuel at all CNL sites requires safe management. CNL will continue to participate at the working group The program will also perform a cost-benefit analysis level with the goal of advocating the development of of transferring the fuel to Chalk River for centralized the requirements to include as many CNL fuel types management. A technical report documenting the as possible. This will minimize CNL fuel-processing business case for transferring fuel from each of these requirements and therefore reduce the cost and sites to Chalk River for consolidated storage will be complexity of the facilities required to repackage CNL prepared and submitted to AECL as well used to support fuel for disposal. the projects’ gating and sanctioning. Pending the outcome of the business case, the operational phase Transfer of fuel from Whiteshell Laboratories will will prioritize WL fuel stored in the Concrete Canister commence by 2020, following determination of the Storage Facility in 2020-2022, followed by fuel from required form for packaging; selection of packaging for Gentilly-1, and finally Douglas Point. transportation and storage; licencing of transportation package and cask; and construction of storage capacity Stakeholder engagement regarding transportation at the Chalk River site. Transfer of fuel from the other of used fuel will be performed in line with regulatory sites will follow completion of the Whiteshell fuel if the requirements, and will incorporate lessons learned from technical evaluation and the business case demonstrate the HEU fuel transportation program since 2010. that consolidation at the Chalk River site is the optimal solution for CNL-managed used fuel.

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5.6 PROTOTYPE REACTORS GOALS/MILESTONES CNL will maintain the security and safety of the Douglas Point and Gentilly-1 sites in accordance with the applicable licence requirements, and progressively reduce the cost of Storage With Surveillance ♦ Douglas Point resin and cover water recovered activities and site hazards. The individual Detailed and packaged in containers for storage at Decommissioning Plan will be submitted to the Chalk River site Canadian Nuclear Safety Commission (CNSC) in Fiscal Year 2016-17 for approval to decommission non- ♦ Gentilly-1 resin, cover water and resin/sand/ nuclear infrastructure and equipment using a risk gravel waste recovered and packaged in based approach starting with low hazard/low risk and containers for storage at Chalk River site progressing to higher hazard/higher risk. The plan is to perform decommissioning in two phases: Phase 1 (non-nuclear), commencing in Fiscal Year 2017-18 transport to the Chalk River for storage or disposal. provided CNSC approval and availability of funds, and The intent is to consolidate all contaminated wastes Phase 2 (nuclear). To achieve this decommissioning and from Douglas Point and Gentilly-1 for storage or demolition a series of approvals from the CNSC will be disposal at Chalk River. CNL will maintain safe and required to meet the plan and delay in approvals could compliant storage and surveillance while improving cost adversely impact the implementation. performance through the implementation of alternative arrangements for services and supplies. CNL will work with local stakeholders, Bruce Power, Ontario Power Generation and Hydro Quebec to During the six- to ten-year window, the Phase 2 (nuclear) challenge standing costs while implementing the infrastructure and equipment decommissioning and standard approach across the industry. CNL will deliver demolition will be initiated since Phase 1 (non nuclear) efficiencies through optimized work practices and will be substantially complete. value analysis. CNL will continue to build on and apply lessons learned from following the strategic initiatives Additionally, to significantly reduce Storage With which are expressed in the 5-Year Stratetic Plan: Surveillance costs and to allow full decommissioning of the Douglas Point and Gentilly-1 sites, CNL will require ♦ Safety improvement strategy a storage solution for used fuel until the permanent ♦ Improved project management practices Nuclear Waste Management Organization’s used-fuel repository is completed. CNL will develop a detailed plan ♦ Innovation and capacity development to affect the removal of the fuel from the sites which will be driven by licence amendments not only at Gentilly-1 ♦ Removal of liabilities and Douglas Point, but also at CRL where the storage site will be constructed. Future work to safely recover, ♦ Reduced storage with surveillance costs package and transport the used fuel to the Chalk River ♦ Waste management integration site will enable the decommissioning and footprint reduction of the Gentilly-1 and Douglas Point sites to the As part of hazard reduction and to meet a regulatory extent that only the end state of the reactor building and commitment, CNL will recover waste safely, process internal equipment will need to be determined. it for disposal according to release criterion and procedures, and package waste which cannot be By 2020 at the Douglas Point site, waste contained in released compliantly in approved containers for the underground storage tanks attached to the reactor

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building will have their contents safely recovered, packaged and transported to Chalk River for interim Over the next 10 years, CNL will: storage or disposal. The storage tanks will be rinsed, characterized, removed and disposed of to remove the ♦ Develop a cleanup plan based on future long-term storage and surveillance requirement. Site land uses that will be approved by AECL services will be reconfigured to meet future Storage ♦ Initiate the safe remediation of those sites With Surveillance requirements of the reactor building, that are significantly contributing to surface including lighting, monitoring and alarms. A fully and ground water contamination (such as developed plan for the de-energizing and removal of the Waste Management Area A and the all site services will be implemented as buildings are Liquid Dispersal Areas) removed. ♦ Demonstrate that site cleanup criteria are By 2020 at the Gentilly-1 site, resin, sand, gravel and protective of human health and ecology cover water stored in an underground vault and storage tank adjacent to the reactor building will be emptied. ♦ Identify ongoing monitoring and The storage tanks will be rinsed, characterized, removed surveillance activities that support human and disposed of to remove the long-term storage and health and ecological risk assessments surveillance requirement. ♦ Optimize risks, remedial actions and By 2021, the Detailed Decommissioning Plan for the lifecycle costs turbine, condenser and ancillary systems within the ♦ Use contaminated soil and soil-like materials Turbine Building will have been accepted by CNL’s safety from environmental remediation activities oversight function, and detailed characterization of all as fill in for the Near Surface Disposal buildings will be completed. Facility

The Douglas Point and Gentilly-1 reactor sites will be maintained in storage with surveillance beyond 2026 at a much-reduced cost due to decommissioning and CNL will develop a cleanup plan, approved by AECL, demolition activities which will have reduced the site to establish land end uses and outline the associated footprint and the surveillance and maintenance costs. cleanup criteria. The project will identify stakeholders and work with them to gain agreement. Land-use 5.7 ENVIRONMENTAL REMEDIATION designations, feasibility studies and remedial action plans will be provided to AECL for consideration, and Through environmental remediation projects, CNL will support work planned in the Annual Plan of Work will progressively reduce the risk and liability to AECL and Budget. Land-use designations will be determined through prudent management and cleanup of legacy in support of new S&T missions; safe management of contaminated and affected sites at the Chalk River radioactive and hazardous wastes; and protection of site. Targeted remedial actions have been executed to the public and the environment. The time horizon for reduce environmental impacts; however, there remains a mission and institutional controls at Chalk River will be significant amount of buried waste, soil contamination, considered in proposing cleanup criteria. and groundwater contamination in discrete locations across the Chalk River site. Additional remedial actions CNL will develop characterization plans based on a will be taken to further reduce risks to the environment. graded approach to data quality objectives. CNL will use comprehensive site characterization to understand

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of the 2016 Framework document, and will be involved throughout the development of the Cleanup Plan. This GOALS/MILESTONES plan will be based on the CSA process with the following steps:

♦ Environmental Data Management System in 1 PROJECT DEFINITION: place DEFINE THE BOUNDARIES OF THE LAND OF CONCERN ♦ Complete characterization gap analysis for Waste Management Areas 2 SITE ASSESSMENT: COLLECT EXISTING INFORMATION ♦ Complete the new Spring B groundwater treatment facility construction and 3 POTENTIAL END USES: commissioning IDENTIFY THE END USE OF THE PROPOSED SITE ♦ CNL Cleanup Plan for Waste Management Areas 4 END-STATE OBJECTIVES: ♦ Complete remedial actions for Waste IDENTIFY EXISTING END-STATE OBJECTIVES Management Area F and Liquid Dispersal Areas 5 CLEANUP CRITERIA: DETERMINE CLEANUP CRITERIA radioactive and hazardous material contamination levels, 6 FINALIZE PLAN: and as input to environmental transport and conceptual PERFORM OPTIONEERING AND FEASIBILITY site models. This information and key site specific STUDIES, AND SELECT AND ASSESS DIFFERENT parameters will support environmental and human REMEDIES health risk assessments. This will be used to determine which areas require remedial actions or no further action. 7 PLAN APPROVALS: Large-scale, high-waste-volume remedial actions in the OBTAIN NECESSARY APPROVALS Waste Management Areas and affected areas will align with disposal requirements at the Near Surface Disposal 8 PLAN IMPLEMENTATION: Facility. Additionally, short- and long-term treatment of IMPLEMENT APPROVED PLAN groundwater will be considered to ensure off-site releases are below the Derived Release Limits in the site operating Over the period up to 2020 (pre-NSDF), work will focus licence. Sources of groundwater contamination will be on Steps 1 through 7, focusing on one or more areas at removed and disposed in the NSDF, stabilized or continue a time. Some areas, such as the Controlled Area, may to be monitored under surveillance programs. CNL will not be assessed during the 10-year period because of time phase remedial actions based on risk reduction, the ongoing operational requirements of the area. complexity and resource allocation. Remediation of Waste Management Area F, containing primarily contaminated soils from Port Hope, has Environmental restoration planning and execution will been identified as a “shovel ready” project that can be follow the eight-step process outlined in CSA N294- aligned with early operations of the NSDF. A preliminary 09, “Decommissioning of Facilities Containing Nuclear performance assessment of radiological hazards in Substances.” The Cleanup Plan is expected to be Waste Management Area F, completed in 2013, indicated approved in 2020. AECL was engaged in development significant challenges in demonstrating human health

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was protected over the long term. An assessment of the costly remedial actions with protection of the public hazards presented by non-radiological waste (such as and the environment. The Preliminary Cleanup Criteria Arsenic) left in situ at WMA F is currently underway with would also be used to make “How Clean is Clean?” results expected by the end of February 2018. The use decisions in support of nuclear facility decommissioning of WMA F soil for the “select” layer of the NSDF, rather and soil management at Chalk River. The target date for than leaving in situ, will address two issues: a potentially an approved Final Cleanup Plan is 2020, aligning with difficult safety case and the requirement of a significant NSDF operations. This Cleanup Plan and NSDF operations volume of fill for the NSDF. Other areas of concern will are both required to move forward with large-scale be prioritized through this process, with the most likely environmental remediation activities. focus areas being the Liquid Dispersal Areas, Waste Management Area A and the Nitrate Plant, as well as Other significant activities that will be undertaken during any significant areas of concern in the Supervised Areas. the first five-year timeframe include: Per these assumptions, planning will be finalized upon approval of the Cleanup Plan and determination of the ♦ Ongoing Ongoing characterization of the Waste Waste Acceptance Criteria for the NSDF. Management Areas and affected lands to support planning for subsequent remediation activities From 2020 through 2026, work will focus on the safe and (including feasibility studies where appropriate, cost-effective implementation of large-scale remediation establishing capabilities and capacities to carry activities as prioritized above. out large-scale site remediation, and acquisition of resources – staffing, sub-contracting and equipment) During this 10-year period, a replacement groundwater treatment facility will be installed to treat contaminated ♦ Completion of safety assessments and groundwater at Spring B, and the Environmental Data development of enhanced monitoring at Waste Management System will be commissioned and be Management Areas C and E, to support the operational. The Environmental Data Management strategy for continued storage of wastes at these System will provide one consolidated storage location sites for historic and current environmental data. A map interface front end will provide an easy-to-use system ♦ Replacement/refurbishment of the groundwater for all of CNL. pump and treat facilities

Identifying land-use designations for all Waste ♦ Implementation of the new Environmental Data Management Areas and affected areas is a necessary step Management System in defining the scope of environmental remediation. By the end of 2016, a Framework Agreement that includes By 2026, remediation activities for Waste Management preliminary cleanup criteria for radioactive materials and Area A will have initiated, and remedial actions for Waste non-radionuclides in soils will be delivered to AECL. This Management Area F and the Liquid Dispersal Areas framework for conducting remediation under the current will have been completed. Where warranted, remedial licence, and using the preliminary cleanup criteria, actions for the affected lands and special burials will be will be used for planning. Decision-making criteria will completed. The ability to carry out this work will depend be established when environmental contamination on availability of the NSDF, including appropriate staging levels represent an unacceptable risk or the cost for areas to deal with large quantities of contaminated soil. remediation is unreasonable. Trade-offs between Additionally, the efficiency and cost-effectiveness of cleanup, monitoring, active/passive treatment systems, this work will be reinforced by effective use of resources technique/technology selection and land use will provide throughout Decommission and Waste Management, and CNL, AECL and other stakeholders the opportunity to by a greater focus on integrated project teams. make informed risk management decisions that optimize

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5.8 HISTORIC WASTE PROGRAMS The final solution for managing the historic Low-Level Radioactive Waste will use two engineered aboveground PORT HOPE AREA INITIATIVE long-term storage containment mounds with dedicated Under the Port Hope Area Initiative (PHAI), CNL will waste water treatment plants, one in each municipality. remediate historic Low-Level Radioactive Waste located CNL will also deliver two grant programs committed to at existing waste management facilities in Port Hope in the legal agreement to support the PHAI: The Property and Port Granby, both in Ontario, as well as a number of Value Protection Program and the Municipal Tax Revenue sites located throughout Port Hope. Loss Program. Strengthening existing relationships with the host municipalities, other stakeholders and the public Defined by a Legal Agreement between the Government will remain a key driver of the initiative. This will include of Canada, the Municipality of Port Hope and the maintaining its robust communications program and a Municipality of Clarington, the PHAI has three distinct formal process to resolve complaints. phases. Phase 1 (regulatory approvals and planning) is now complete, while the scope of Phase 2 (enabling Port Hope Area Initiative activities will be influenced by activities, construction and remediation) is currently and also affect the Interim Waste Management Program underway. Phase 3 includes long-term maintenance of the Low-Level Radioactive Waste Management and monitoring of the Long-Term Waste Management Office, including activities related to the monitoring of Facilities being constructed during Phase 2, and is construction work, issuance of compliance letters for intended to last many decades. individual properties, and monitoring of environmental effects. CNL will accomplish the majority of the work to deliver Phase 2 using subcontractors for activities such as CNL’s plan for the Port Hope Project is well underway. engineering design and field work (including survey, CNL will remediate a number of known and unknown construction and remediation). The balance of activities sites, including an existing waste management facility, will be performed by CNL staff to meet project and in and around the town of Port Hope. Historic Low- regulatory requirements. Details for transitioning to Level Radioactive Wastes will be safely transported to Phase 3 Long-Term Maintenance and Monitoring are yet a new Long-Term Waste Management Facility, which to be confirmed. uses a highly-engineered aboveground mound with an

Exhibit 5-4: Visualization of Proposed Waste Management Facility Port Hope Project

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accompanying dedicated waste water treatment plant. Essential to fulfillment of the Port Hope Project will be GOALS/MILESTONES the successful identification and characterization of affected sites, which is taking place concurrently with other activities, such as constructing the new Long- ♦ New water treatment plant declared to be in Term Waste Management Facility and the remediation service of known sites.

♦ Award of contract for Long-Term Waste CNL’s contracting strategy for both the Port Hope Management Facilities construction and major and Port Granby projects will maximize efficiencies sites remediation and optimize schedules with respect to the project critical path. CNL’s oversight and operations will ♦ Complete site-specific risk assessments for support the safe execution of the projects in a cost- industrial sites effective manner, while ensuring that legal agreement commitments are met. Activities and resources are ♦ Complete resurvey of small-scale residential planned in concert with undertakings of the Port Hope sites and Port Granby projects, which drive requirements. ♦ Complete WWMF Low-Level Radioactive Waste emplacement – Long-Term Waste Early emphasis will be on developing a plan for Management Facilities construction and major Long-Term Monitoring and Maintenance, which will sites remediation coincide with the end of project activities under the Port Hope and Port Granby projects, with a focus on ♦ Complete remediation of small-scale sites cost-effective long-term viability to meet the needs of Canada for several hundred years: ♦ Complete off-site waste emplacement – LTWMF construction and major sites ♦ The Port Granby Waste Nuclear Substance remediation Licence will be renewed or re-issued in 2021, as required ♦ Complete remediation/restoration of small- scale residential sites ♦ By 2023, all sites identified as being Canada’s responsibility under the Port Granby Project and ♦ Close and Cap Mound – LTWMF construction Port Hope Project are safely and cost-effectively and major sites remediation remediated

♦ Federal approvals for Phase 3 ♦ The Port Hope Project will have completed Phase 2 after having emplaced all wastes and ♦ Establish end-use features at LTWMF – passive having closed and capped the Long-Term recreational features in place Waste Management Facility mound; end-use ♦ Phase 2 complete features will be in place along with long-term maintenance and monitoring

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♦ The Grant Programs with respect to the Port Hope Project will have successfully concluded

♦ The Port Hope Waste Nuclear Substance Licence will be renewed or re-issued in 2022, as required, and Waste Nuclear Substance Licence 344 will be retracted

♦ A detailed plan for the execution of Phase 3 has been successfully proposed, approved and implemented; cost-effective long-term monitoring and maintenance is underway

♦ Proficient execution of strategic plans has resulted in safe and cost-effective reduction of federal historic Low-Level Radioactive Waste liabilities and elimination of enterprise or strategic-level risks

♦ Cost-effective delivery of Grant Programs in support of the Port Hope Area Initiative has concluded after having met the needs of the community and the goals of Canada

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LOW-LEVEL RADIOACTIVE WASTE Activities of CNL’s Interim Waste Management programs MANAGEMENT OFFICE are strongly correlated to scopes of work taking place under the Port Hope Area Initiative and it is anticipated CNL will manage the Low-Level Radioactive Waste that this relationship will continue in its current form Management Office program of work related to historic until the initiative’s Phase 2 remediation activities are low-level wastes that are the responsibility of AECL. completed, at which point a significant reduction in the Tasked with operating and monitoring interim and level of effort required to administer the Interim Waste long-term waste management facilities, CNL will deliver Management programs will be realized. Similarly, and Interim Waste Management programs and remediation consistent with AECL policy direction, Interim Waste projects in the Greater Toronto Area, along the Management program level of effort will be diminished as Northern Transportation Route, and in the community Greater Toronto Area and Northern Transportation Route of Port Hope. CNL will also provide technical and policy sites have their associated historic Low-Level Radioactive advice to AECL and address ongoing public information Waste liabilities reduced or retired. needs related to historic low-level wastes.

CNL will develop a plan to eliminate or significantly Solutions for reducing or eliminating liabilities will reduce AECL’s liability across all known non-Port Hope emulate past successes, where practical, with an sites affected by historic Low-Level Radioactive Wastes. increased emphasis on the long term, as opposed to These sites are generally found in two distinct regions interim or temporary measures. along the Northern Transportation Route and in various sites in the Greater Toronto Area. Activities are currently underway to quantify the extent of historic Low-Level Radioactive Waste liabilities across Key for identifying the most cost-effective and Canada (non-Port Hope sites) through development of safe liability reduction strategy for each site is first an initial Liability Cost Estimate. A key objective over quantifying the extent of the liability. This also includes the 10-year period of this plan will be to significantly a clear understanding of what sites are in fact AECL’s reduce or eliminate liabilities through safe execution of responsibility. This work is currently underway and is a remediation projects, facilitating cost-effective long-term key target for Fiscal Year 2016-17 through developing a management of historic Low-Level Radioactive Waste Liability Cost Estimate for non-Port Hope sites. facilities and programs, and through formal divestiture of Canada’s liabilities through administrative means,

consistent with policy direction provided by AECL.

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The execution plan for meeting AECL’s mandate is ♦ All sites identified as being AECL’s responsibility currently being developed by way of creating a Master in the initial Liability Cost Estimate (currently Plan and Schedule for the Low-Level Radioactive under development) are significantly Waste Management Office. This schedule aims to remediated or otherwise have their liability identify and projectize the scopes of work required to issues substantially resolved, safely achieve the most appropriate end state for each site currently impacted by historic Low-Level Radioactive ♦ Proficiency in strategic planning execution has Wastes which are deemed to be AECL’s responsibility. resulted in safe and cost-effective reduction of federal historic Low-Level Radioactive Waste Stakeholder engagement throughout the planning liabilities and the elimination of enterprise or process is critical to ensure that the path to liability strategic-level risks closure for each site is acceptable to property owners, ♦ The delivery of Interim Waste Management regulators and other directly impacted parties. The programs, monitoring and maintenance of uncertainty of stakeholder acceptance may result in Long-Term Waste Management Facilities significant delays to the retirement of these liabilities, (legacy management), and other historic and can significantly increase the cost to achieve the Low-Level Radioactive Waste support services, desired end state. which includes the provision of technical advice to AECL and information to the public, will Through development of an AECL-accepted decision have been capably provided in a safe and cost- matrix, CNL will have a clear path for identifying effective manner; the level of effort required properties that are Canada’s responsibility. Each site to administer residual program activity will will then be subjected to project planning intended be significantly reduced and integrated into to efficiently and cost-effectively eliminate, or broader CNL plans for meeting Canada’s needs significantly reduce, the associated liability. These with regard to historic Low-Level Radioactive individual scopes of work will become projects which Waste can be planned and executed, using synergies and efficiencies between related projects, to meet AECL’s mandate:

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5.9 REDUCTION OF NUCLEAR LIABILITY In line with the Site Operating Company (SOC) Agreement Schedule A, Section 1.1.2.2, CNL will manage In 2005, AECL produced the Liability Cost Estimate which the Liability Cost Estimate and ensure it is updated as reviewed the requirements for decommissioning and required but as a minimum on an annual basis. This associated a cost to the work for Chalk River, Whiteshell, will include raising change requests where values have Douglas Point and Gentilly 1 (liability costs for HWP changed significantly from the original LCE value, this are currently being prepared and will be considered may be caused by better estimating of projects as they separately from the LCE). This estimate concluded that proceed through initial phases or by addition of scope it would take in the order of 70 years to completely not previously identified. CNL will also retire liabilities as decommission the site. Further reviews have been carried they are decommissioned and demolished, and add the out and the overall LCE value has changed significantly cost of decommissioning any new facilities as and when over the past 10-plus years. they become operational.

At share transfer, the LCE value was in the order of $6.2 billion. CNL’s objective is reduce this amount significantly 5.10 ASSUMPTIONS, CONSTRAINTS by 2026. AND ENABLERS This will be achieved in several ways: ASSUMPTIONS CNL plans to decommission and demolish more than 120 buildings. Each of these buildings has a cost associated The development of the Decommissioning and Waste with it in the LCE. The reduction in LCE will be tracked Management strategies described in this document is annually. The decommissioning schedule is a significant based on the following assumptions: acceleration compared to the original LCE. ♦ Government policy, standards, legislative and There will be a significant additional reduction in the regulatory environment remain unchanged, or overall LCE from demolition activities because of changes have no significant impact CNL’s accelerated schedule. This will reduce the costs ♦ There will be sufficient capacity available through associated with Storage With Surveillance. Minimal the supply chain to meet the requirements of this expenditure will be made on Storage With Surveillance plan as buildings will be transferred and almost immediately decommissioned and demolished. ♦ Funding will be provided in line with the financial projections in this document The Near Surface Disposal Facility will come into ♦ The Near Surface Disposal Facility will receive operation in 2021, at which point waste disposal cost Canadian Nuclear Safety Commission licencing should drop significantly; current plans assumed costly off-site treatment services. Once the NSDF is available, ♦ Reactor entombment at Nuclear Power environmental remediation of waste management areas Demonstration and Whiteshell Laboratories will can be accelerated and stored wastes can be finally receive CNSC licencing disposed of. ♦ Contaminated waste recovered during demolition Two target cost agreements have been approved to deal and remediation activities will meet the NSDF with the Whiteshell Laboratories site decommissioning waste acceptance criteria and the decommissioning of the Nuclear Power ♦ Additional regions of significant contamination Demonstration reactor, and will result in significant are not discovered, and new releases to the savings to previous estimates in the LCE. environment (accidents/spills) do not occur over the 10-year period.

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CONSTRAINTS Health, Safety, Security, Environment The development of the Decommissioning and Waste & Quality Management strategies described in this document D&WM will apply balanced approaches to HSSE&Q considers the following constraints: through the application of current regulations, standards and industry best practices. In making ♦ The program of work is dependent upon the timely decisions, the HSSE&Q implications of different operation of the NSDF. The need for storage is approaches and the overall benefits will be considered, assumed until the NSDF is operational, as such, while respecting value for money and efficiency. any delay to the facility will have an impact as extended storage of waste will be required. Waste Management Capability

♦ Public concerns and challenges, as well as events/ D&WM will identify all waste streams and capability developments which occur in the nuclear industry, gaps through the development of the Integrated Waste pose constraints and could impact schedules Strategy and improve capabilities to properly handle, or even the feasibility of approaches currently treat, store, transport and dispose of waste for the considered viable. long term. Industry-proven practices will be used to move all aspects of the waste program forward. ♦ The disposition path for Intermediate-Level Waste is yet to be identified. Work Planning

♦ The ability of the Regulator to meet the Efficient work planning is overarching in being able increase demand resulting from an accelerated to identify hazards and controls; plan and perform decommissioning program could impact schedules. work safely; implement integrated work teams; and implement new tools and techniques. The ♦ Competing priorities of the ongoing operation of D&WM Integrated Work Control Package process for the Chalk River site, such as demands for resources decommissioning, environmental remediation and and infrastructure, impose constraints that could waste management sites will essentially treat D&WM impact schedule. work as construction (deconstruction) islands with any connections/disconnections to site utilities and ♦ The program of work is dependent upon funding site access modification being performed in the Site limits. Maintenance Planning process.

ENABLERS Characterization Enablers to support an accelerated D&WM Program CNL identifies waste characterization as a fundamental are presented below. These enablers differ in maturity step to waste management at all levels. D&WM’s and urgency with some already well underway and strategy is to complete a technical and programmatic progressed quickly to deliver early benefits and drive characterization assessment to identify gaps in enduring risk reduction. For example, Health, Safety, capabilities across all waste generation, retrieval, Security, Environment and Quality is fundamental processing and disposal processes. to CNL’s mission, and addressing HSSE&Q issues associated with risk and hazard reduction is paramount Skills, Tools & Techniques to both early and enduring success. Others are still D&WM will implement industry-proven approaches in the early stages of development and are also by importing applicable programs and supporting ultimately important to mission success.

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documents from similar sites to help develop Communications the programs and approaches at Chalk River. Communications and engagement are essential in Benchmarking activities will be conducted to aid CNL generating support from the public, stakeholder, staff in conceptualizing applications at Chalk River. Aboriginal groups and regulatory support for new licences, facilities, environmental assessments, and the Licencing Historic Waste Program. The pace of change required It is essential that the D&WM activities that are within D&WM to support site revitalization makes licenced by the Canadian Nuclear Safety Commission communication and engagement even more critical. are executed consistently in a quality and compliant CNL’s strategy will be to pursue the goal of open and manner. This both reduces the potential regulatory transparent engagement. Individual projects will risk associated with acceleration of decommissioning continue to manage their key internal and external activities and provides assurance within CNL that the stakeholders, using various communications channels, activities are safe with respect to nuclear and CNL will look at ways of improving broader safety analysis. engagement and aim to reach out to a wider audience through enhanced use of social and digital media. Facility Availability for Decommissioning Where there are cross-cutting issues and messages that have potential to negatively impact the delivery Developing the long-term plan and detailed integrated of the strategic priorities, CNL may choose to manage baseline lays out the strategy to accelerate D&WM’s the communications at a higher level as a business objectives. The efforts required by Capitals Projects, enterprise risk and/or strategy. operations and maintenance for site renewal underpin D&WM plans, so close integration, progress monitoring and the ability to respond to changes are key to future success.

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6 CHALK RIVER SITE DEVELOPMENT

97 Revitalizations, consolidations and new construction from 2016 to 2026 will completely reshape Chalk River Laboratories. As aging facilities are consolidated and redundant buildings are removed, the nuclear site licence will be maintained to enable CNL to capitalize on future opportunities. Existing and envisioned new facilities at Chalk River will enhance CNL’s capabilities.

Exhibit 6-1: Rendering of the Chalk River Laboratories campus as projected for 2026

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6.1 OBJECTIVE ♦ Reduce the material inventory and Storage With Surveillance costs of remaining infrastructure As part of the 10-year vision to transform CNL’s Chalk River Site into a world-class, right-sized and sustainable ♦ Optimize cost of operation and maintenance of both National Nuclear Laboratory delivering Science and the new and existing facilities at the Chalk River site Technology, CNL is committed to implementing a proactive capital investment program that is mission- ♦ Develop flexible, modern and sustainable facilities driven and risk-based, while sustaining readiness of S&T- that are reconfigurable to meet the changing needs enabling capabilities. as new S&T and business opportunities arise

Through delivery of the 10-Year Capital Plan, CNL will The overall goal is to deliver a right-sized physical transform the site with goals to: footprint of operating facilities, assets and utilities, which is driven by CNL’s long-term vision for S&T to ensure ♦ Create a collaborative environment to foster the most effective, efficient and appropriate use of innovation and interdisciplinary scientific research supporting infrastructure.

♦ Consolidate and co-locate like activities to The Capital Plan is based on an updated integrated Site improve efficiency; enable internal and external Master Plan to support the requirements of evolving collaboration; reduce overhead costs through core capabilities. reducing footprint; and enable the transfer of redundant facilities and assets to the Through an integrated workshop inclusive of all key Decommissioning and Waste Management Mission, stakeholders within the Chalk River campus and also as appropriate supported by the main stakeholder and client, AECL, several fundamental “key-words” were chosen to focus the end goal of the site. These key-words are demonstrated in Exhibit 6-2, representing how they tie into the three capital-planning principles that are the underlying basis for Innovative planning of capital investments moving forward, World-Class QUALITY Campus particularly new builds and infrastructure. & Integrated AMENITY

CAPITAL SAFETY PLANNING & Integrated PRINCIPLES SECURITY Understandable Modular Right-sized Sustainable EFFICIENCY & SUSTAINABILITY

Exhibit 6-2: Capital Planning Principles

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QUALITY & AMENITY SAFETY AND SECURITY CNL will design the campus and buildings to CNL will design the site and buildings for support leading-edge research, enhance the appropriate safety and security through work environment and attract new business. innovative, efficient and campus-friendly Elements include: measures. Key elements include:

♦ Buildings that are designed and constructed to ♦ Minimizing the number of commercial vehicles high architectural and sustainability standards accessing the site and its immediate environs

♦ A distinct and memorable arrival experience ♦ Reducing the footprint of Controlled Area over time ♦ Social interaction and professional collaborations ♦ Using buildings, natural features and landscaping to reinforce site security ♦ A welcoming environment for people of all cultural backgrounds ♦ Ensuring all facilities meet applicable federal and provincial safety standards ♦ Food service, recreational and other amenities for employees ♦ Minimizing opportunities for pedestrian and vehicular interactions ♦ Views and access to the natural setting Exhibit 6-3 clearly represents how vehicular routes EFFICIENCY AND SUSTAINABILITY and pedestrian networks will be segregated as much as possible, enabling a safer, campus CNL will develop highly efficient systems, networks friendly environment. and buildings that minimize operating and maintenance costs and environmental impacts. Key elements include:

♦ A permanent, rational network of multi- purpose utility corridors

♦ Buildings and infrastructure that meet high standards of energy efficiency and environmental design

♦ Durable and sustainable buildings that are designed and constructed to minimize Canada’s long-term environmental liability

♦ Facilities that are adaptable to changing research priorities and interests

♦ Being responsible stewards of the natural environment

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Exhibit 6-3: New Vehicular and Pedestrian Networks to Avoid Conflict

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6.2 STRATEGY project teams involving representatives from across all mission areas, CNL has undertaken a process that focuses firstly on ascertaining mission requirements, 6.2.1 APPROACH followed by assessing the existing infrastructure to identify gaps or excess capacity. The approach for investment within the Capital Mission has been subdivided into five main areas to allow for Three key capital-planning inputs were developed with grouping of similar investments, and to ensure an the combined recognition that: appropriate allocation of funds to achieve Vision 2026. ♦ The various areas, which deliver the overall S&T The funding areas are: program, rely on a common set of flexible enabling infrastructure: hot cells, high-bay labs, Class B labs, ♦ New Builds Class C labs, general labs and administrative support ♦ Facility Revitalization space ♦ Services & Utilities ♦ Balanced investment is necessary for the supporting ♦ Bridging infrastructure to ensure S&T capabilities are available long-term and with built-in expansion capability ♦ Equipment ♦ Limited ongoing shorter-term bridging investments CNL will use existing infrastructure to support mission into older current infrastructure is necessary to activities while proceeding with a balance of necessary ensure S&T capabilities are maintained as the site is new and revitalized construction. By using integrated transformed

Exhibit 6-4: Flexible Lab in B350

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6.2.2 SCOPE DEFINITION A multifaceted investment strategy leverages program, facility maintenance, and strategic investments to The first step in the site revitalization is to create a maintain and revitalize existing infrastructure. CNL solid site master plan that meets the goals of the site continues to investigate funding alternatives and pursue development program and the objectives of the S&T cost-efficient practices through space consolidation, Mission. The new Site Master Plan meets these goals laboratory integration and footprint reduction to better and objectives, incorporates flexibility in facilities, and use available infrastructure resources. CNL’s investment provides locations for future developments, should in supporting infrastructure is aligned with AECL science, business or collaboration needs change. It guidance that defines priorities and specific funding builds a robust infrastructure base for the new campus allocations. that will ensure mission-critical facilities and research capabilities are maintained for many years to come. Looking forward, CNL will continue to focus on Through Fiscal Year 2017-18, the investment plans will sustaining and revitalizing core capabilities and be further refined based on advanced cost estimates, establishing a financially feasible plan for efficient use detailed infrastructure schedules, and Decommissioning of existing infrastructure. and Waste Management schedules – such as facility predecessors and successors – while ensuring the S&T Investments into new builds, existing assets and Mission maintains its capabilities through the transition. bridging facilities are justified by a business case. Each Initial planning for all facilities is well advanced, with business case is managed and updated through the some facilities being at more mature stages of project gating and sanctioning process by integrated project planning and development. The most complex projects teams assigned to each investment pursuit. Ongoing will proceed through further scope definition as well as success of the investments is managed through cost and schedule refinement in the coming year. industry-proven earned value management practices.

Exhibit 6-5: Illustration of the Vision for 2026, Looking East from the Existing Open Space in Front of B700

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Through the evolution of each business case, validation that the investment supports S&T core capabilities Gating and sanctioning allows will be presented. CNL uses an adaptable gating and continued elaboration of detail sanctioning approach to aid in this process. The lifecycle of the gating and sanctioning process is shown in and estimates prior to major Exhibit 6-6. funding commitments. GATE 1 GATE 2 GATE 3 GATE 4 GATE 5 GATE

STAGE STAGE STAGE STAGE STAGE 54321

Indentification Options Planning Definition Implementation Evaluation

Exhibit 6-6: Gating and Sanctioning Process

6.2.3 INTEGRATION ACROSS MISSIONS ♦ Modular and adaptable facilities that will grant the flexibility to expand or support new business As aging facilities are consolidated and redundant ventures buildings are removed, the nuclear site licence will be maintained to enable CNL to capitalize on future A key aspect of Vision 2026 allows for CNL to expand opportunities. Exhibit 6-8 identifies the existing facilities in order to grow commercial opportunities. and envisioned new Chalk River facilities that will For example, modest investment will enable CNL to enhance CNL’s capabilities and suggests candidates leverage and refocus fuels and molybdenum-99 target for replacement through new construction, long-term fabrication capabilities, which will no longer be required revitalization and/or interim refurbishment until long- by the molybdenum-99 isotope production and NRU term alternatives are available. reactor operation. These capabilities will support the development, licencing and commercialization of As CNL adapts to support the evolving S&T Missions, advanced reactor technologies to assist in Canada’s revitalization of the Chalk River site will also provide: energy decarbonization goals, and enable CNL to supply low-enriched uranium and molybdenum-99 to global ♦ Flexible, open laboratory space markets, thereby supporting the government’s non- proliferation goals (specifically eliminating the global ♦ A collaborative environment to foster scientific need for highly enriched uranium). Commercial revenues innovation that facilitates access by collaborators at will inform subsequent facility expansions. the site

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Additionally, CNL’s future initiatives will include Examples of these initiatives include shared use of soils an innovative laser laboratory to investigate the that are a waste material to some projects, but may be application of laser technology in nuclear applications, used as cover/fill material for D&WM initiatives. Another and a new or revitalized facility for alpha therapy, example is decommissioning of B406 to allow for radiopharmaceuticals and similar research. CNL will also construction of the new CNL support facility. explore additional facilities opportunities to bolster the delivery of S&T products and services through 2021-2026 An example of shared risk to both projects is the using public-private partnerships and customer funding. possibility of ground contamination as a result of historical buried fuel tanks and past vehicular Decommissioning and Waste Management plays a maintenance in the area. While performing geotechnical major role as both a predecessor and successor to the boreholes to support foundation designs for the CNL site development program as a key stakeholder and support facility, samples of the boreholes can be used is involved in planning development of the integrated to aid in identifying possible sources of industrial Site Master Plan. Regular interactions and planning contamination to allow for shared management and meetings will be held to ensure facilities that need to be planning. An integrated schedule that links the D&WM- removed to enable development of new projects under planned removals with the ongoing site development Vision 2026 are slated for removal, as well as to provide projects has been created to help identify conflict and an opportunity to discuss other redundant facilities aid in annual planning. able to be transferred to D&WM once the associated services are relocated. Integration with D&WM will be ongoing through the execution of both missions throughout the 10-year plan. Current schedules for each identify risks for execution that will be managed further as project scopes are elaborated and timelines confirmed.

Each of the missions will aid and support the other in risk identification and management where possible, and resources will be shared or re- used to provide an overall cost reduction to CNL.

Exhibit 6-7: Planning map from D&WM Annual Program of Work and Budget shows appropriate priority of removal for new builds

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CNL’s existing and envisioned new facilities that support S&T capabilities, as well as the essential infrastructure that cuts across and supports all capabilities. This includes candidates for replacement through new construction, long- term revitalization and/or interim refurbishment until long-term alternatives are available. Advanced Nuclear Advanced & Research Fuels Radioecology Radiology, & Dosimetry & Hydrogren Hydrogen Isotopes Management Security Nuclear Safety, and Risk Management Nuclear & Systems Engineering Nuclear Chemistry Applications

B350 - Autoclaves and Loops Laboratory

B215 - New Tritium Facility

Advanced Nuclear Materials Research Centre NEW BUILDS Advanced Fuels Manufacturing

Business Hub Mission required enabler

CNL Support Facility Mission required enabler

Logistics & Warehousing Mission required enabler

B320/B330 Chemistry & Radio Analytical Lab

B137 - Hydrogen Isotope Lab

REVITALIZATION B145 - Applied Physics

B513 - Environmental Radiobiology Lab

B456 - Engineering Research

Information Technology Mission required enabler

Switchyard Mission required enabler SERVICES & Sanitary Sewage Treatment Facility UTILITIES Mission required enabler Domestic Water Mission required enabler

Natural Gas Mission required enabler

B375 - Hot Cells, Fuel and Materials Lab

BRIDGING B234 - Universal Cells

B380 - Surface Science Lab

S&T Mission required enabler EQUIPMENT HSSEQ Mission required enabler

Exhibit 6-8: 2017-18 Facilities and S&T Capabilities

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6.3 PROJECTS

6.3.1 NEW BUILD ADVANCED NUCLEAR MATERIAL RESEARCH CENTRE

2016 2017 2018 2019 2020 2021 2022 2023 TASK NAME Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Advanced Nuclear Materials Research Centre Feasibility and concept phase Design development Construction Commissioning Turnover to operations 12/26

Exhibit 6-9: Early Advanced Nuclear Material Research Centre schedule projection based on initial planning assumptions

The high-level project scope of the Advanced Nuclear The time required to fully validate, build and commission Materials Research Centre (ANMRC) project is to this facility will be a key driver in decommissioning combine the current capabilities of the Universal Cells planning as its completion is a predecessor to the (B234), Fuel and Materials Hot Cells (B375), Recycled demolition of B375, B380 and B234. Furthermore, Fuel Fabrication Laboratory (B375), the metallographic bridging investment in projects such as the Shielded laboratories and the storage and fuel handling Facilities Refurbishment Project will ensure the Universal capabilities of the NRU rod bays into a modern shielded Cells and the Fuels and Materials Hot Cells maintain their facility and laboratory research complex. existing capabilities until they are able to be transferred to the new facility. The ANMRC is the current critical The ANMRC is expected to be the lynchpin of the path through the Capital Mission. Decommissioning Capital and S&T Missions going forward. It is the largest is currently working to enable the construction of single capital investment currently planned, the most this facility by planning for the removal of facilities complex, and will be a foundational element supporting considered in its footprint through Fiscal Year 2017-18. the broader S&T program going forward, such as the:

♦ Alpha Research Institute

♦ Small Modular Reactor Initiative

♦ Advanced Fuels Fabrication Concepts

♦ Centre for Nuclear Forensics and Response

♦ Life Extension and Long-Term Reliability of Existing Reactors

This project will continue with more advanced development and planning in the coming year, and will proceed through the gating and sanctioning process, with further elaboration on the business cases that define the overall project scope and requirements, while maintaining focus on delivery against available funds.

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BUSINESS HUB

2016 2017 2018 2019 2020 TASK NAME Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 CNL Business Hub Feasibility and concept phase Gate 3 approval 04/27 Design development Gate 4 approval 11/14 Construction Turnover to operations 05/29

Exhibit 6-10: Early Business Hub schedule projection based on current planning assumptions

Based on the projected staffing requirements over a public-private partnership, and will be assessed for the next 10 years, and the number of buildings being applicability. decommissioned during that time, there is a need for additional office space on site. Additionally, there is The current known scope of the Office Building project also a need for a facility that can reliably house CNL’s includes the following: data centre and records centre. A new office building or “business hub” that will satisfy these needs is ♦ The design and construction of a multi-story building being planned and a conceptual design is underway. that will consolidate employees, where appropriate, This design will consider current and future staffing from across the company and accommodate the projections, efficiencies of work process, and external staffing needs beyond the next 10 years collaboration/conference requirements, all in a ♦ The building will be designed and built for the needs facility that can be scaled according the site’s needs. of 2026 Additionally, it will have the ability to expand seamlessly in the future to meet changing business needs, or to ♦ The building will also incorporate the following site create facilities for partners/investors, such as those requirements: developing SMR technologies. This facility offers the »» Data Centre potential for private investment and financing, such as »» Library/Records Management

»» Health & Wellness Centre

»» Office and Building Support (conference and meeting rooms)

Exhibit 6-11: Business Hub Concept showing two future phases for growth or partnership facilities

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CNL SUPPORT FACILITY (MAINTENANCE)

2016 20172018 2019 2020 TASK NAME Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 CNL Support Facility Feasibility and concept phase Gate 3 approval 05/31 Design development Gate 4 approval 01/15 Construction Turnover to operations 01/24

Exhibit 6-12: Early Support Facility schedule projection based on current planning assumptions

This project is to design and build a support facility that ♦ Provide safer, more cost-effective/ will consolidate several of the existing maintenance, efficient support work management resources and equipment into ♦ Improve staff productivity, efficiency a common location in the Supervised Area. Facility and management initiatives include prioritizing reliability-centered maintenance, consolidation of shops and multi-skilled ♦ Reduce the risk of equipment failure labour, as well as optimizing work control. as the teams are better positioned to perform proactive vs. reactive The new support facility will enable CNL to: maintenance ♦ Reduce Canada's nuclear liability ♦ Provide uninterrupted preventive and corrective through the reduction of the overall maintenance support to all facilities on the Chalk footprint of the Chalk River site River site

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LOGISTICS 2016 2017 2018 2019 2020 TASK NAME Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Logistics Facility Feasibility and concept phase Gate 3 approval 06/29 Design development Gate 4 approval 01/15 Construction Turnover to operations 04/23 Exhibit 6-13: Early Logistics Facility schedule projection based on current planning assumptions

This project is to design and build a facility that will replace end-of-life warehouse buildings at CNL and vacate leased space in Pembroke in order to house the logistics, shipping, receiving and warehousing capabilities. The facility will consist of a loading/unloading dock for shipping and receiving, and inventory warehouse space for storage and staging shipments to and from Chalk River. This building is proposed to be built at the outer gate area with a new security entrance, increasing security at the outer precinct of the site while dramatically improving the “first impression” for the campus.

This new facility will be the location for all large, bulk storage, or longer-term storage needs. Daily consumables will still be located at the place of need (similar to those currently housed at Cassidy’s in Pembroke).

The logistics building will enable CNL to: Exhibit 6-14: Proposed concept of a new logistics ♦ Reduce supply chain and administrative costs facility at the Chalk River Laboratories outer gate

♦ Improve logistics staff productivity and efficiency

♦ Improve inventory efficiency and turnover B350 – THE HARRIET BROOKS BUILDING This is the newest laboratory complex constructed on ♦ Improve security as the logistics building would be the Chalk River Site. A portion of this facility opened in outside the site, reducing the need to have non-CNL September 2016, with the completion of construction, staff on site commissioning and turnover slated for spring 2017.

♦ Improve safety through the reduction of site traffic The laboratory complex represents an investment of and congestion approximately $100 million by the federal government into the future of CNL. The building will provide CNL employees and external partners with a state-of-the- art, collaborative and inter-disciplinary facility to safely conduct research and development.

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This two-story facility features more than 137,000 square Specialized scientific equipment is being designed, feet of Class C laboratory space, offices, meeting rooms manufactured and installed, with commissioning and material storage areas. CNL is relocating several projected to be finalized in the winter of 2017. specialized research facilities into B350, including the Chemistry and Corrosion Material Loops Facility, the B350 is a key enabler in the B250 exit strategy – a Decontamination and Chemical Cleaning Facility and the high priority for CNL, based on the fire safety risk. In Chemical and Corrosion Autoclave Test Facility. This new combination with the B137 hydrogen isotope laboratory laboratory complex will help CNL enhance its image as (opened in 2015) and the construction of the B215 the site works to increase commercial business, develop Tritium laboratory, S&T capabilities can be transferred, connections with industrial partners and position the site and B250 can be turned over to decommissioning for long-term success. for removal. The current critical path for turnover to decommissioning is the completion of B215 in 2018.

B215 – TRITIUM LABORATORY

The B215 Tritium Laboratory project was initiated in November 2015 to replace current S&T capabilities located within B250 and transfer them to a modern, functional facility. Substantial completion of construction is planned for November 2017, and active commissioning and operations is expected to commence in 2018. The scope of the project includes completion of detailed designs for the renovation and expansion of B215; the removal of equipment and obsolete building Exhibit 6-15: A portion of B350 opened in September 2016 systems; and renovations to the Combined Electrolysis Catalytic Exchange Upgrading/ Detritiation Facility to accommodate the relocation of existing Tritium Facility support process equipment.

The full scope of the project also includes the removal of existing equipment located on the service side of the building and modifications to allow for the installation of process equipment, and finally, the construction of a new two-story addition of office and mechanical space, as well as receiving and storage. Upon completion of the construction, commissioning and submission of the Final Safety Case to the CNSC, the facility will be turned over to Exhibit 6-16: B215 replaces current S&T capabilities located within B250 the S&T team for the completion of active commissioning and facility start-up.

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6.3.2 FACILITY REVITALIZATION

The renewed Vision 2026 Site Master Plan has identified several “keeper” facilities that are required through the next 10 years and beyond, post Vision 2026. These facilities will require ongoing capital investment to ensure business and operations are maintained. Exhibit 6-17: Rolling mill installed in NFFF On an annual basis, needs of the “keeper” facilities will be reviewed with site stakeholders through the Annual Program of Work and Budget process, and funding will 6.3.3 SERVICES & UTILITIES PROGRAM be allocated appropriately to address these needs. This is an area where investment beyond the current 10-year With the development of a Site Master Plan to support plan should be expected as regular capital spending is Vision 2026, a key consideration was the utility required to maintain the site in optimal condition as distribution required to enable a world-class S&T facility, facilities and utilities age. while ensuring future growth capability as required for new business and science endeavours. The poor state of existing infrastructure is well known, and several projects have made strong progress to set the base infrastructure Current projects included in for success and expansion in the future. Projects such this group are: as Natural Gas, Domestic Water Supply and the Sanitary Sewer Treatment Facility are all well advanced into the execution phase and are ready to be expanded in the ♦ Upgrades to B320/330 Vision 2026 plan.

♦ Upgrades to the B524 HVAC unit As the location of new key facilities is now known, a vital planning phase will be launched through the ♦ Renovation of B137-Room 101 for the upcoming year that will further define how utilities will creation of office space be transitioned to enable development of Vision 2026. This will require the understanding of logistics and ♦ Capital investment and upgrades distribution networks from a new Data Centre and how to the Waste Treatment Centre and these will be operational prior to the decommissioning of existing infrastructure at B508, as well as defining how a associated facilities new electrical switchyard and potential tri-gen facility will come online in support of new construction, while also ♦ Investment in the Nuclear Fuel feeding short- and long-term infrastructure. Fabrication Facility for plate fuel development As the site now has a new and reliable source of natural gas, facility revitalization and new buildings will be able to use the resultant cost savings, and reduce reliability

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Exhibit 6-18: Isometric of New Sanitary Sewage Treatment Facility on outdated steam or electrical systems within the infrastructure grid. A new domestic water supply is under construction, allowing all new builds to be tied to this supply line, thus reducing the need to install point- of-entry potable water systems. In line with the overall Site Master Plan, utility services and infrastructure upgrades will be done with the end goal in mind, namely the flexibility and adaptability for future S&T Exhibit 6-19: Natural gas supply line installation endeavours, such as potential VSMRs or SMRs.

Information Technology also sits within the services reducing the application footprint while modernizing and utilities program with respect to capital funding. and standardizing the application portfolio. This CNL IT will plan and execute capital work through two program will modernize CNL to meet industry standards primary work programs. The Base Infrastructure Program optimizing costs while reducing security risks inherent in will focus on the modernization of the infrastructure, the business network. It will improve agility and enable industry standard security monitoring while reducing the time to respond to business requests for increased functionality. The second program of work is the Business Enablement Program, which will be focused on bringing additional capabilities to support new business offerings or improved business processes to reduce operating costs through technical efficiencies.

Exhibit 6-20: Concrete slab for Domestic water reservoir

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• Modernization • Standardization 01 • Simplification • Standard Operating Procedures • Monitoring 02 • Auditing • Retension Schedules • Purging of Old Files 03 • Digitizing of Files

The Base Infrastructure Program will be driven through three work InfrastructureGET CURRENT & Applications streams. Paper & Electronic Records CONTROLS

DATA Governance

Exhibit 6-21: The Base Infrastructure Program will be driven through three work streams

6.3.4 BRIDGING business operations. Several work packages are currently underway, including: Bridging activities are those that are required to keep ♦ Material handling crane replacement in B375 the site operating effectively until Vision 2026 can be (commonly known as the Dinny Crane) executed, allowing a new revitalized S&T site to be operational going forward. The main driver within this ♦ HVAC flow monitor installation in B375 work package is the Shielded Facilities Refurbishment Project. This project is required to perform ongoing ♦ Replacement of exhaust fans E1 and E5 in B234 upgrades to B234 and B375 to ensure the maintenance of the current S&T and Business mandates in the current ♦ Engineering assessment of further upgrades hot cell facilities. These facilities are required until the Advanced Nuclear Materials Research Centre is Engineering assessments will form the basis for constructed, at which time they will be transitioned to recommendations on further upgrades to these facilities, decommissioning. allowing CNL and AECL to make informed risk based decisions on bridging activities required prior to facility Investment in upgrades to these facilities will be shutdowns. managed through the annual planning cycle, and will be implemented in a manner so as to not disrupt regular

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6.3.5 EQUIPMENT

The equipment summary package is used to define ongoing equipment purchases or replacement needs throughout CNL. It has been recognized that a site such as Chalk River, expected to perform at a world-class standard, requires a significant amount of specialty equipment. To maintain the current assets required to perform the S&T mandates of the site, a continued capital investment is required to acquire new equipment in order to replace obsolete or aging equipment.

In addition to the S&T equipment investment, there is a similar equipment investment required to ensure that Health, Safety, Security, Environment and Quality facilities are equipped and are mission-ready to support federal S&T endeavours and third-party commercial customer needs. Investment in HSSE&Q equipment will help to:

♦ Maintain and improve emergency response Exhibit 6-22: H5 Autoclave readiness/capabilities

♦ Implement the site-wide improvements in Additionally, there is an allotment of funding within a monitoring and response processes generic bridging package that captures many smaller projects, and plans for additional activities, such as: ♦ Ensure continued successful operation of HSSE&Q ♦ B420 boiler improvement Facilities

♦ Steam condensate and compressed air upgrades ♦ Upgrade equipment upgrades to meet regulatory requirement ♦ B420 emergency power supply ♦ Enable the corporation for effective and efficient ♦ Site utility upgrades product delivery in full compliance with statutory and regulatory requirements This generic work package defines an investment that will be reviewed annually through the Annual Program An ongoing annual investment in equipment has been of Work and Budget planning cycle to ensure upgrades recognized and forecast. It should be noted that this required to keep the campus operating effectively are investment be viewed as ongoing required capital performed on a priority basis. It is expected that funding spending that is integral to managing a site of this in this work package will reduce as CNL progresses complexity, and will need to be maintained beyond this through implementation of Vision 2026, as facilities current 10-year plan. Specific purchases in this area will be are transferred to decommissioning, and renewed managed annually through the Annual Program of Work infrastructure and utilities are installed. Spending in this and Budget, and the gating and sanctioning processes. area should be minimized without jeopardizing S&T to ensure available capital funds are focused on longer-term facilities and improving the 2026 campus.

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6.4 ASSUMPTIONS, CONSTRAINTS CONSTRAINTS AND ENABLERS Constraints identified for delivery of the 10-year site development plan are:

ASSUMPTIONS ♦ Funding will take priority in the triple constraint As with any plan, certain assumptions are required to (higher priority over time and scope) be made and will be verified moving forward through delivery of the plan. Key assumptions required for the ♦ Need to balance work activities while maintaining site development 10-year plan are summarized capabilities (shutdowns minimized to maintain as follows: business demand, facilities such as 513, 320/330, 234, 375) ♦ Available funding is as set out by AECL ENABLERS ♦ AECL will consider business cases based on Critical enablers to delivery of the site development alternative funding arrangements, if and when plan, as well as how the site development plan is an presented by CNL enabler to other missions is as follows: ♦ Revenue from commercial ventures can be used for ♦ Delivery of B250 exit projects allows for turnover and “additional” investment or to offset operating costs, decommissioning of B250. where these are consistent with the S&T Mission and the relevant Annual Program of Work and Budget ♦ Continued integrated planning between all missions allows clear conflict planning and risk mitigation. ♦ The 10-year plan will be updated at regular intervals – specific details and project updates approved ♦ Scope management to provide definition of what through the gating and sanctioning process – can be achieved in projects prior to major funding changes to a specific project do not necessitate a commitment. Changes will be managed through change to the long-term plans a robust change control. A gating and sanctioning process that defines clear steps and approvals. ♦ New opportunities for business can be highlighted separately in the business case and may allow for ♦ Removal of facilities by decommissioning allows for new investment opportunities construction of new builds. Decommissioning has prioritized facility removal by the requirements of the site master plan.

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7 CNL MANAGEMENT & OPERATIONS

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7.1 OBJECTIVE For most support services, the first five years are primarily focused on stabilizing, right-sizing and upgrading fundamental processes, services and The objective is to fully support the safe and infrastructure with the goal of achieving best practices; efficient delivery of CNL’s evolving missions. building efficient enterprise-wide business systems; and ensuring sufficient facility and system modularity for future expansion or contraction as needed. Key activities 7.2 STRATEGY requiring support from management and operations in CNL’s objective will be met by continuously aligning its the first five years include: organization and improving its management systems ♦ Rapid deployment of Capital projects and related and processes to ensure they are responsive to the contracts, with priority focus on CNL’s advanced evolving missions. nuclear materials and fuels research capability The priorities and needs of the Science and Technology, ♦ Turnover of redundant structures on the Decommissioning and Waste Management and Capital Chalk River site to support an accelerated projects missions will drive CNL’s transformation of its decommissioning and demolition schedule support services. CNL’s site operations and infrastructure; health, safety, security, environmental and quality; ♦ Rapid deployment of contracts and business business management; procurement; and IT will be enablers to support high-priority D&WM project equipped with the adaptability and flexibility needed milestones, such as the Near Surface Disposal to best serve the missions as they evolve over the Facility becoming operational in 2020 10-year period. ♦ The shutdown of the NRU reactor in 2018

♦ Near-term revitalization of key aging S&T facilities and supporting infrastructure to assure continued operation while the move to new facilities and systems that are reliable, cost-efficient and right- sized takes place ct t P je en eo o m p r e l Through 2021 to 2026, CNL’s management and operations P g e a will leverage the flexibility and adaptability built in the n a first five years: continuing improvement, increasing M efficiencies and responding to the changing needs of the missions.

S CNL & y i Key activities requiring support from management and t t i e l I operations for 2021 through 2026, include: n O a f u r p a e Q s r & ♦ Completion of S&T and infrastructure t a E ru tio SS refurbishments, replacements and new modern ct ns H ure facilities ♦ Facilitating the increasing numbers of visitors,

Exhibit 7-1: Enablers partners and collaborators working with CNL,

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on site and through virtual collaboration NRU shutdown, as Decommissioning and Waste environments Management work begins to increase, starting in 2017-18 ♦ Demolition of high-hazard facilities and structures in the Controlled Area and high traffic volumes to ♦ Redeployment of Whiteshell employees prepared the Waste Management Areas, ultimately reducing to relocate elsewhere within CNL, or to external the Controlled Area footprint and eliminating more opportunities, including to CNEA affiliates, as they than 120 redundant structures. become available in 2024 and earlier

7.3 HUMAN RESOURCES - PEOPLE ♦ Redeployment of employees from the Port Hope Area Initiative Project work who are prepared to CNL’s Human Resources program is an essential enabler relocate, as the projects transition to monitoring of the evolving Science & Technology Mission, while activities (Port Grandy in 2020 and Port Hope in providing the processes and tools to enable effective 2022) shifts in resource levels through a period of significant ♦ Finding and bringing on board the talented science change. and technology resources with the capabilities the S&T Mission requires, currently and as it continues OBJECTIVES to evolve The overarching objective of the Human Resources program is to ensure the right resources are available STRATEGY for mission requirements, when needed. This requires CNL will realign the Human Resources team into roles working with mission areas in an integrated manner with clear responsibilities and accountabilities. These new to identify current and forecast future capability and roles will be well-integrated with missions so that they are resource needs; leverage CNL’s existing talent base to involved in the initial stages of business planning and can shift resources where needed; and positively engage recognize employee and labour relations impacts early unions and employees in the process. on for effective management. The new HR organization will provide support for managers in achieving a higher GOALS level of employee engagement, support to employees Effective HR strategy, processes and tools will result in: in proactively managing their careers, and facilitate

♦ Maximum redeployment of employees whose current jobs are eliminated as a result of the shutdown of the NRU in 2018

♦ Redeployment of CNL employees impacted by divestiture or outsourcing activities as they are planned and implemented

♦ Optimizing redeployment opportunities to provide ongoing employment for NRU and connected employees, as well as employees in other (indirect) areas affected by the

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redeployment activities within and across mission of new tools (such as 360 feedback, assessments, areas. At the same time, the integration of HR and and training and development programs) and Labour Relations in a new, holistic way, will ensure ongoing evolution of succession planning Labour Relations strategy is executed consistently and proactively at the mission/department level. OUTCOMES CNL Human Resources will: By 2026, CNL will have a smaller, more effective HR program integrated with mission areas and working ♦ Build on and expand our Labour Relations strategy seamlessly behind the scenes to resource the of open communication and collaborative organization effectively within a healthy and compliant problem-solving, recognizing that for many CNL labour relations environment. CNL Human Resources will employees, the key to engaging their hearts and know it has achieved its goals when it has: minds is through their most consistent and stable affiliation, — their bargaining unit ♦ Seamless redeployment of staff from projects ramping down to those ramping up ♦ Build and continue to hone consistent, effective HR processes and tools, particularly those relating ♦ Employee Survey engagement results comparable to recruitment and hiring, employee career to or higher than the benchmark for high management, and redeployment performance organizations

♦ Implement a consistent and structured project ♦ A high level of engagement and constructive management approach to redeployment partnership with bargaining units and streamlined, activities (particularly large-scale redeployments), consistent collective incorporating a case management approach to agreement language individual employees affected by organizational changes ♦ Voluntary turnover among identified high potential/high performance resources below 5 ♦ Leverage CNEA affiliate and other industry-leading percent annually best practices wherever they make sense for CNL ♦ Robust hiring pipelines for identified ♦ Build and maintain a comprehensive master Talent key positions Inventory

♦ Strengthen leadership at CNL with the introduction

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7.4 HSSE&Q ♦ Transforming processes and practices to engage, enable and empower the workforce CNL’s full suite of Health, Safety, Security, Environment and Quality programs are essential enablers of the ♦ Effective industry-based assessment of both Science and Technology and Decommissioning and Waste site performance and the performance of Management Missions, as well as Capital projects and site subcontracted work that ensures this work is licence activities. performed safely and effectively

♦ Maintaining and expanding HSSE&Q program OBJECTIVE certifications and standards-based processes HSSE&Q programs are tailored to the unique needs of the missions, while driving improvements to achieve and OUTCOMES sustain robust, efficient and cost-effective compliance The desired outcome of this strategy is smaller, with regulatory requirements and sustaining a culture more efficient, industry-based HSSE&Q programs where CNL is always driving toward zero accidents and that seamlessly work with all CNL organizations. injuries. Management and workers have developed a relationship of trust at all levels in the organization. This trust is GOAL the basis for Safety and Security Cultures that industry HSSE&Q programs and implementation of these peers will want to benchmark. Process improvements, programs have matured and have achieved the workforce engagement and management leadership simultaneous improvement of safety and productivity have achieved an effective continuous improvement performance that meets or exceeds the best industry process that has resulted in performance in both standards for Class 1 laboratories. safety and productivity that meets or exceeds the best performance for Class 1 laboratories and is sustainable into the future. STRATEGY CNL has defined the following strategy as a means of 7.5 OPERATIONS achieving its HSSE&Q goals:

♦ Improving communication, alignment and OBJECTIVES coordination with project work through new The Science and Technology Mission defines the leadership roles, staff deployment, temporary capabilities and infrastructure requirements for CNL, assignments and integrated project teams while Decommissioning and Waste Management removes the liabilities from the site. To meet these ♦ Clarifying roles, responsibilities and accountabilities requirements, Operations manages, maintains and for safety and quality by implementing recommends refurbishment and replacement of facilities management system updates and strengthening and infrastructure while providing reliable nuclear and oversight and other central organization functions non-nuclear operations. Operations aims to deliver the ♦ Sustaining industry-based standards through flexibility, reliability and efficiency needed to best serve flexible, cost-effective and adaptable solutions, the Missions as they evolve over the 10-year period. including early HSSE&Q engagement in project and work planning; enhanced Safety, Radiation Protection and Security practices; and a more robust and effective Management System

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GOALS STRATEGY The following goals and milestones will be achieved by ♦ Safe and Reliable Nuclear Operations. An CNL over the 10-year period: essential function of Operations is the continued safe, reliable and compliant operation of nuclear ♦ Achieve “Satisfactory” Fitness for Service rating and non-nuclear facilities to meet site licence and from the Canadian Nuclear Safety Commission for mission requirements. Our focus on safe, compliant the Chalk River site and the NRU (June 2017) and reliable operations includes updating safety cases, backing out of unnecessary requirements ♦ Where economically attractive, spin off as conditions change and streamlining processes Manufacturing Services, Vehicle Maintenance and and procedures for efficiency to meet changing site Laundry Services (August 2017) conditions. CNL will continue to assess the level ♦ Complete Proof of Principle and develop process of management, training and culture to ensure and procedures for fabricating plated fuel at Chalk high standards are maintained and that licence River (March 2018) compliance is continually achieved.

♦ Cease operation of the NRU reactor and complete ♦ Reliable Infrastructure. To meet mission needs, standby period for molybdenum-99 production CNL currently relies on aging mission-essential (March 31, 2018) facilities and supporting infrastructure requiring near-term action to assure continued and ♦ Defuel the NRU reactor and drain moderator reliable operation. To align with industry best (October 2018) practices, CNL is implementing a Property and Asset Management Program based on ISO 55000 ♦ Consolidate heavy water storage at CNL’s LaPrade principles. This program is evolving as a key tool site (2019) to ensure that decisions on refurbishing and ♦ Turnover majority of NRU ancillary buildings to replacing buildings optimize lifecycle costs, and D&WM (2020) are strategic and informed by updated building condition assessments and sound business cases. ♦ Turnover molybdenum-99 Production Facility to As new capital projects are completed, Operations D&WM (2021) will maintain the new facilities with an industry standard preventive maintenance program. ♦ Turnover NRU facility (excluding rod bays) to D&WM (2021) ♦ Sustainable Cost Efficiencies. CNL’s strategy to realize and sustain cost efficiencies includes ♦ Complete 100 percent of condition assessments consolidating staff and services into a smaller and develop Asset Management Plans for all number of revitalized or new buildings valued and enduring assets (2021) (such as merging Chalk River Laboratories ♦ Improve percentage of preventive maintenance maintenance shops into three locations) and to all maintenance from current 53 percent to 70 accelerated turnover of redundant buildings for percent (2026) decommissioning. CNL will spin off or outsource nonessential services, such as manufacturing ♦ Improvement of Facility Condition Index (ratio services, active laundry, and vehicle maintenance of deferred maintenance dollars to replacement to avoid capital expenditures and offer operations dollars) from the current level of 23 percent to less cost efficiencies. The current aging infrastructure than 10% (2026) and utility supply are costly to operate and maintain. CNL is installing new, energy-efficient ♦ Achieve energy cost-reduction goal of 30 percent buildings and a new tri-generation plant to savings relative to 2016 expenditures (2026)

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meet CNL’s electrical, heating and cooling needs The site will have been substantially transformed into a for significantly less cost than current energy sustainable park-like campus featuring renewed buildings, expenditures. highly efficient systems, and maximum safety and security through innovative, efficient and campus-friendly ♦ Site Transformation. Operations will successfully measures. operate and maintain the existing shielded facilities to meet customer demands before transitioning Nearly all site infrastructure will be replaced or renewed, to the new Advanced Nuclear Materials and Fuels and efficient, reliable utility generation and distribution Research Centre by 2024. As a whole, Operations will enable site energy costs to be reduced by more than expedites the consolidation of services and 30 percent from 2016 expenditures. The vast majority of movement of equipment, furnishings and people decommissioning and demolition will have concluded. out of redundant buildings to enable the turnover Site renewal enables transition to a small infrastructure of facilities to D&WM for decommissioning. maintenance and planning team caring for the modern As a key stakeholder, Operations provides the infrastructure. framework and coordination for transformation of the site, while Capital Projects provide the New S&T facilities, including the new Advanced Nuclear revitalized and new buildings to support leading- Materials and Fuels Research Centre, will be fully edge research. operating to meet mission needs. The NRU will be placed in Storage With Surveillance. The Nuclear Fuel Fabrication Facility’s operations will continue, if market conditions 2026 DESCRIPTION allow, as a commercially focused entity, either in a By 2026, Operations will be a much smaller and more revitalized Building 405 or in a purpose-built Advanced efficient organization that provides services and Fuels Manufacturing Centre. infrastructure to meet the needs of the S&T Mission.

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7.6 PROGRAM OFFICE CNL project managers continue to develop budgets and schedules that are integrated into the baseline to support tracking, monitoring, management and integration of A modernized project, program and project and site activities across the entire portfolio of portfolio approach is used to manage the work. The integrated baseline will enable CNL to prioritize and schedule work and resource requirements, and diverse mission requirements across CNL. resource-level the baseline to meet funding constraints. All projects will be monitored through CNL’s stage and OBJECTIVE gate process that is comprised of a cyclical process in Rigorous and disciplined integrated management system which projects are reviewed to ensure that the project and protocols that meet the organization’s needs and artifacts required to complete the project stage are good business practices that integrates scope, schedule completed. Any resulting project changes in the baseline and cost objectives against a baseline plan. CNL will will be managed through a documented baseline change- enable real-time project reporting; increase efficiency and control approval process that applies technical, financial productivity; and objective risk management. and management review.

Successful project management comes from the GOALS disciplined use of software and the data that it Starting in April 2016, CNL adopted a graded approach collects, rather than the software itself. To reduce to identify priority projects in the portfolio to refine system integration issues, CNL will use Oracle for and build lifecycle cost estimates. During the first few enterprise resource planning and continue to use P6 years, these estimates and project plans will build for earned value management and risk analysis. Linked the integrated baseline for CNL. In parallel, CNL has with Oracle, CNL will use Sage to develop estimates, developed and deployed company-wide training to including parametric data and lessons learned. CNL will improve understanding and competency in Earned continuously grow the library for improved lifecycle cost Value Management methodologies. During the infancy estimates by gathering data from the project close-out of the training program, pillars of knowledge will be phase from the project gate and stage process. reinforced through refresher training sessions and A standard suite of monthly performance reports will real-time feedback on current project delivery. In June keep project staff and the executive team fully informed. 2016, CNL provided to project managers with Earned Engagement through multiple levels of reviews will Value Management dashboards for the first time. The identify cost, schedule and HSSE&Q issues early and Earned Value Management dashboards provide project enable their proper and timely dispositioning, improving managers information on a monthly basis to assess project performance. project schedule and cost performance. This informs the sanctioning of existing and new projects. The baseline CNL will deliver accurate total portfolio estimates at development and reporting against project plans provide completion and ensure efficient use of funding. CNL’s CNL with the evidence to decide whether to continue or cost containment processes and procedures include end existing projects. clear standards for formulating activities, resources, cost estimates and forecasts. The forecasting process supports STRATEGY portfolio-level, estimate-at-completion visibility and active, engaged management. CNL will projectize work within Science and Technology, Decommissioning and Waste Management, and Site Operations and Infrastructure, and support services using OUTCOMES a graded approach based on size, risk and complexity. All projects will define scope, cost, schedule end points, resources, HSSE&Q, risk management, deliverables and

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milestones, and will be included in the Performance This includes: Baseline. This approach enables integrated, objective monitoring of project cost and schedule performance, ♦ The Engineering Management System documents and minimizes project risk and uncertainty. Project will be improved and simplified to clarify roles, managers will use Earned Value Management System responsibilities and accountabilities for more (EVMS) to provide early warning for baseline deviations efficient and effective execution of engineering and forecast final cost and schedule outcomes. CNL’s work. In addition, the processes and organization approach will fully comply with the ANSI/EIA 748 will enable robust oversight of delegated Design standard for EVMS. A digital electronic dashboard will Authority by the central Engineering organization provide EVMS metrics on project statuses through a to ensure high focus on quality and compliance. password protected, web-based portal to provide up-to- ♦ Organizational effectiveness will be improved by date information and transparency to AECL. engaging, enabling and empowering the technical workforce by streamlining engineering processes 7.7 ENGINEERING to remove non-value added requirements, driving decision making to proper levels within the CNL’s Engineering programs are essential enablers of organization, increasing the role of Engineering the Science and Technology and Decommissioning and team members in work planning and decision Waste Management Missions, as well as Capital Projects making, as well as oversight of work execution and and site licence activities. project closeout.

♦ Engineering will establish a strong program to OBJECTIVE manage third-party design agencies to allow CNL Engineering’s programs are robust, flexible and flexibility to contract work, when appropriate, to tailored to meet the unique challenges of each mission return value and to ensure CNL’s requirements are area. Process improvements are relentlessly driven to satisfied achieve and sustain a culture of a high-performance engineering service provider. ♦ Continuous improvement and adaptability will be achieved by implementation of industry based best practices, and proven processes from parent GOAL companies, while keeping in mind the changing The CNL Engineering organization and implementation of landscape and potential for new business lines. its programs have matured, achieving a rating of more Engineering will be engaged early in project and than 95 percent for on-time and on-budget delivery of work planning to identify potential issues and engineering services in a safe, quality and cost-effective to provide flexible, timely, cost-effective and manner. adaptable solutions that can be used beyond the current plans to transform the site. STRATEGY ♦ Engineering will improve communications, The transformation of the CNL Engineering organization alignment and coordination with Mission Area line will be methodical, ensuring that engineering services organizations. Effective support will be provided continue to be delivered safely, with high quality, by working through a central engineering and productively while the necessary improvements organization to provide traditional, distinct are implemented. Strategic benchmarking and technical services on a planned or emergent basis. implementation of best practices will be adopted from In addition, integrated project teams that include parent companies and from successful engineering Engineering leadership roles and highly skilled programs in Canada and around the world. technical staff deployed into a project or Mission

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Area to ensure that work planning and work Organization will have achieved an effective continuous execution includes the appropriate engineering improvement process that results in a high-performing change control, and technical and regulatory organization that provides more than 95 percent on- considerations. Deployed personnel will maintain time and on-budget delivery of engineering services in a a strong tie to the Engineering program safe, quality and cost-effective manner. management through temporary assignments to Mission and Project organizations and temporary deployments to support transient needs of the 7.8 PROCUREMENT line organizations. SUPPLY CHAIN MANAGEMENT ♦ Engineering will ensure compliance with jurisdictional requirements by maintaining current Professional Engineering Certificates of OBJECTIVE Authorization and Pressure Boundary Certificates The Supply Chain organization’s objective is to procure as required. a diverse range of goods and services in a timely and cost-effective way to support external supply needs and manage CNL’s supply chain and associated relationships. OUTCOMES

Within 10 years, Engineering will be responsive, efficient, Its logistics operation manages receipting of goods, and effective, and will seamlessly integrate with all inventory, warehousing and oversight of CNL’s CNL organizations. Management and workers will have international trade, export control program, and global developed a relationship of trust at all levels within the transportation portfolio. organization and this trust is the basis of an Engineering Culture that industry peers will want to benchmark. GOAL

Process improvements, workforce engagement and The functional goal is structured around five key themes management leadership within the Engineering as shown in Exhibit 7-2 on the following page.

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THEMES GOALS

Restructure the Supply Chain organization to provide direct support through a matrix organization to each of the missions working with cross-functional integrated project teams, implementing strong accountability based on the requirements of the internal customer. Create new teams for Corporate and Professional Services, Organization and General Site Services, providing a “Category” management approach with single & People points of “accountability.” Through training and mentoring, broaden the pre- and post-contract competence of the team to apply greater commercial thinking across a wider range of contract types and mechanisms, gaining the trust and confidence of the business.

Gain greater advance visibility of all procurement from CNL’s plans for both resource planning and communication of opportunities to the supply chain. Develop “off the shelf” capabilities and a “Buy Once” approach through new Demand & arrangements (and strategic alliances) designed around aggregated demand Capability and a “toolkit” that provides ease of access and speed to market; a manageable supplier base directly with CNL; longer-term agreements; technical and commercial innovation; and S.M.A.R.T. (Specific, Measurable, Action oriented, Realistic, Time-lined) sharing in risk and reward.

Make CNL a customer of choice with clear visibility of Supply Chain opportunities and how to do business with CNL using CNL.ca website and with consistent use of Markets, MERX for solicitations. Promote a greater emphasis for Supply Chain relationships and supplier development through early contractor engagement; supplier diversity Suppliers and improved market communication; and ongoing categorization of suppliers & Relationships around the strategic importance and risk to delivery. Standardize ways of working with CNL, including terms and conditions to incorporate industry good practice and stronger performance requirements

More upfront time planning Supply Chain activities with use of strategies developed by integrated teams and used to encourage broader thinking about approaches and emphasis on the critical success factors and risk of the activity. Promote earlier Risk, Performance supplier engagement to understand capabilities and increase use of prequalification alongside vendor database to ensure supplies meet and maintain CNL standards. & Best Value Drive stronger performance management (metrics, reporting and communications) over life of procurements with use of Contract Execution Plans and key performance indicators as part of a contract management toolkit with greater clarity of roles and team integration.

Consolidate, implement and maintain new procedures in line with good industry practice. Integrate arrangements with other related procedures and put in place new systems for Materials Requirement Planning (including bar coding technology) Processes and Contract Performance Management. Develop a single hub (database) for supplier information providing key information about suppliers and their & Systems performance, as well as seek ways to optimize CNL’s high number of transactional activities. Implement robust assurance measures incorporating appropriate review and comment with use of human performance/error avoidance tools to drive higher quality.

Exhibit 7-2: Five key themes of the functional goal

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STRATEGY ensuring fair, accessible, open and competitive procurement, as well as delivering agility and best Through working with internal customers and the value. The foundation of the strategy is shown below external market, CNL will develop, improve and in Exhibit 7-3, built around Missions, Services and maintain a capable, integrated and sustainable supply Transactions, alongside several overriding strategic chain to support CNL’s changing needs. In support of principles in Exhibit 7-4. this, a new Supply Chain Policy has been developed, setting out the strategic objectives and principles,

HR Services IT Solutions O ce Solutions & Records Management Inventory Replacement & MRO RAD Protection & Health Municipal & Utilities Travel Fleet Engineering Support Services

ession rof al P Se & rv p i r c o e s C MISSIONS SERVICES TRANSACTION

s G e e ic ne rv ral Site Se

FacilitiesHR Services & Landlord Services Energy & Utilities Waste Management Solutions P-Card Services Turn-Key Equipment & Materials Facilities Management & Property Services Maintenance & Asset Care Services

Exhibit 7-3: CNL’s Strategy is built around Missions, Services and Transactions

♦ Scopes Bundled Effectively ♦ "Off the shelf" Capability ♦ Visibility and Transparency ♦ Collaboration & Delivery Partners ♦ Category Management ♦ Supplier Diversity ♦ Balanced Risk/Reward ♦ Early Supplier Engagement ♦ Supplier Relationship Management ♦ Longer-Term Focus ♦ Buy Once, Use Many Times ♦ Performance Orientated Execution

Exhibit 7-4: Strategic Principles

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OUTCOMES This will be achieved while continuing to deliver and improve: By 2026, new collaborative agreements will have been ♦ Administration of all finance operations (Accounts secured to support the ongoing mission for Science and Payable, Payroll, Cash & Banking, Billing) in a timely Technology and to provide cost-effective and timely and efficient manner, ensuring compliance with all arrangements to ensure CNL can operate effectively in applicable legislation a commercial environment. The Supply Chain team will be appropriately sized, with a team with a far broader ♦ Delivery of timely and accurate financial range of capabilities in both pre- and post-contract information to both internal and external clients on management, and equipped with the experience and a monthly basis and as required skills to address a wide variety of contract types and mechanisms. The supply chain will see CNL as a valued ♦ Provision of strategic analysis and business advice customer, and its supply profile will include diversity while monitoring financial performance targets to maintain and report on, including small and medium-size, local and Aboriginal businesses, and GOAL show CNL’s economic impact on the local community. There will also be a clear and categorized approach to To become a key business partner by focusing on: supplier relationships. CNL will have a clear relationship plan with its top 20 suppliers. Through its systems ♦ Instilling a “Customer First” culture and tools, CNL will also have clear line of sight on ♦ Streamlining processes to improve efficiency and suppliers’ past and present performance. Performance delivery time arrangements will have been contractualized in a consistent way aligned to Earned Value Management ♦ Developing financial systems to improve standard System arrangements and requirements for key quantity and ad-hoc reporting tracking, which will be effectively managed on an ongoing basis. ♦ Investing in skills to develop finance capabilities (and improve decision support) 7.9 FINANCE ♦ Becoming a valued advisor to our business partners

CNL Finance is an essential enabler of ♦ Creating an open environment based on good governance and compliance accounting, reporting and analytical support for the organization.

OBJECTIVE

CNL’s Finance objective is to deliver best in class financial solutions to our customers, within a framework of sound corporate governance, compliance and controllership, with a view to supporting business and external customers, and facilitating organizational transformation and renewal.

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STRATEGY System-related Initiatives

Based on the changes to CNL, Finance is focused on Ad Hoc and Budgetary Reporting Tools that making CNL’s operations more efficient, and meeting Complement the Core Budgeting Tools the needs of its internal and external customers over Finance identified an ad-hoc reporting tool for Oracle the next 10 years. to implement by 2020 as a means to get ready access to the data that already exists in CNL’s relational database. As part of that exercise, several areas including staffing, Other productivity enhancement tools, such a workflow, systems and processes were looked at with a view to forms, approvals and administration tools to improve making improvements in the coming years in order to the budgeting process will be pursued. These tools will deliver better and more efficient solutions. The areas of improve the overall delivery of the budget numbers, and focus identified for improvement over the next 10 years as such, improve the quality of data fed in to financial as part of that exercise include: systems and performance monitoring and reporting systems. 1 Process-related initiatives Dashboard for Integrated 2 Systems-related initiatives Operational/Financial Reporting A dashboard for integrated operational/financial 3 People-related initiatives reporting as a means for getting access to basic operational/financial reporting will be updated on a Process-related Initiatives routine basis, with significant improvement during 2017-18. Redesign Month-end Close Process and Introduce Soft Close Replacement of Clarity This will reduce and modify the month-end and year- Replacement of the Clarity budgeting application was end close processes in order to allow a reduction in the initially identified as a standalone solution. It has now turnaround time for other reporting. The reduction will been rolled into a broader set of solutions based on be achieved by developing a month-end close timeline the functionality in question (as a solution to assist and implementing it with the needed process changes both Finance and the Program Management Office) and by 2017-18. planned for implementation by 2020.

Mapping of Cross-functional Processes Accounts Payable Sub-Ledger Integration with This will integrate the performance management Procurement to Help Automate/ Improve system, which will reduce the time for the preparation Accrual Process of the Earned Value Management System reports. By 2020, the accounts payable sub-ledger will be This will provide managers faster access to the Cost integrated with procurement to help automate the Performance Report. accrual process and eliminate the need for manual intervention and allow the data to flow through the Time Collection Processes system. Although the initial initiative to improve the time collection process was completed in 2016-17, focus on improvement in this area will be ongoing.

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People-related Initiatives 7.10 INFORMATION TECHNOLOGY

Training to Improve Ability to Use Oracle The IT Division’s mission is to deliver innovative, efficient Additional formal training is required to improve the information technology to CNL and ensure the stability, productivity of team members in the use of the systems, availability, integrity, and confidentiality of information including Oracle. This training will be undertaken by technology and information assets. As every part 2019, and will improve the productivity of Oracle users of today’s business relies on some component of in Finance in specific areas. technology its vulnerabilities are also susceptible to catastrophic failure and in turn business impact. Adapt to Changing Demands Over the next 10 years, it is expected that the effort related to Decommissioning and Waste Management OBJECTIVE and Commercial activities will increase significantly, The IT Division will provide business value to CNL through while efforts in support of the NRU will decrease as business process automation, providing information a result of it ceasing operations. Financial resources to support decision making, facilitating collaboration will be assessed and redeployed to meet these with customers and partners, and enabling workforce changing demands. productivity ensuring resources and capabilities to deliver the right services at the right cost, and quality Leverage Human Capital Management levels to enable the advancement of nuclear science System Functionality and technology for the benefit of Canada. With the implementation of the Human Capital Management System module complete, the next step GOAL will be to bring efficiencies to payroll and other areas within Finance. The spending over the first five years of the strategic plan will be somewhat variable in nature as new costs are incorporated into the operating budget and OUTCOMES savings from portfolio reductions are realized. The The desired outcomes include leaner processes, objective is to stabilize the operating budget and effectively implemented and leveraged systems, on benchmark IT support costs. It is expected the cost demand and accurate reporting, and a smaller, more- per employee will remain stable as the increases and efficient organization and structure that is consistent savings are essentially offsetting. Once the baseline is with the vision and evolution of the organization into established, the only increases will be inflationary in the next ten years. nature (2.5 – 3.5% annually). Overall, the operational budget is expected to decrease. CNL IT will ensure 7.9.1 RISK that appropriate visibility is maintained on cyber security ensuring operational costs align with industry The above processes are all designed to introduce standards. efficiencies or improve financial controls. Neglecting to implement any single initiative above does not The distribution of the spending against these three pose a considerable risk to CNL, however a lack of the categories of activity also impacts the annual human implementation and full integration of a number of resource requirements of the IT Division. The numbers them will lead to sub-par performance over the of each of the three types of resources (service brokers, longer term. business representatives and service and delivery agents) that are required each year will shift over time.

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STRATEGY CNL has adopted Gartner Groups approach to categorizing IT spending under three categories: In the future, IT Division’s services will be ♦ Run – This includes the general day to day organized around three different types expenditures associated with keeping the of roles: IT infrastructure running, providing day to day technical support, supporting lifecycle management activity and human resources “Service Brokers” – Resources who will be concerned costs of the IT Division employees needed to with technology planning and providing the required maintain the technical environment – essentially resources to meet the needs of the client groups, expenditures that have to take place without negotiating service levels, measuring performance, expanding the environment or adding new tools, promoting ongoing improvement and addressing systems and services. corporate management requirements and processes

♦ Grow – This refers to IT expenditures associated “Business Representatives” – Resources who will be with the expansion of services, tools or growth accountable to ensure that the needs of the client of the organization, and includes introduce some groups are known and addressed new capabilities or improvements to existing ones. “Service and Delivery Agents” – Resources that deliver projects, tools and services that add value and delivery productivity and efficiency gains for clients as their business needs change over time

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Base Infastructure FY 2016 - 2020

Business Enhancements FY 2017 - 2021 Focus on Enterprise Resource Planning Tools Leverage early investments in Reduce application infrastructure by portfolio through providing expanded Improved and opti- rationalization business capabilities mized business processes Modernization and standardization of the Improved reporting infrastructure through Tier 1 reporting

Reduced cost of ownership

Reduced time to implemeenationtionalizatioastructutionalizatio

Exhibit 7-5: Three categories for IT spending

♦ Transform – This refers to the IT costs associated grow and transform category are usually funded as with the implementation of transformational capital projects. The focus of the ITSC will be on making change in the organization, i.e. expenditures that decisions about approving, prioritizing, and allocating help achieve fundamental changes to business resources to initiatives in the transform category, and to processes, or help to introduce a new product or a lesser extent, within the grow category. service offering by the organization. From a financial planning perspective, the longer-term Annual IT spending at CNL is currently aligned to these goal is to have a better understanding and financial three categories of activity, and the paradigm is also forecast of the annual needs in all three categories, and used to manage the agenda at Information Technology the distribution of effort within CNL would be controlled Steering Committee (ITSC) meetings. through adjusting the annual envelope (or cap) on spending within each of the three categories, ensuring From a budget perspective Run costs are covered in the combination of the three envelopes does not exceed the IT operating budget, whereas initiatives in the an overall annual cap on IT spending.

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OUTCOMES significantly contribute to supporting CNL’s vision, mission and values. In the near term, CNL will continue The optimization of the infrastructure in the first five with Town Halls regarding its planned licencing and years will not only reduce the liability and risk inherent deployment of the NSDF, as well as the proposed in the legacy systems but also reduce the number of closure of NPD and WL. Ongoing activities at PHAI and applications in the portfolio to 70 thereby reducing LLRWMO will continue as a project lead and matrixed the run costs. These savings will be realized in the to CNL. In addition, we will work with First Responders human resource requirements for the current disparate and industry partners on a proposed material transfer application suite as well as facility costs. It is also plan between CNL assets. CNL remains committed expected that a significant portion of the grow and to our highest priority of Safety and Security to the transform requirements will be substantially reduced public and the environment and is central to all our over time requiring less resources to support these activities. CNL’s Town Halls will continue over the next efforts that are currently funded in capital. Some ten years providing opportunities for the public to expected increases in cost will be associated with new remain informed and engaged. We will also improve our systems previously out of support and security. communication channels in both print and digital by leveraging existing and new technologies. To support 7.11 COMMUNICATIONS & commercial growth, improve morale, and recruit STAKEHOLDER RELATIONS researchers, CNL will execute a brand awareness and marketing campaign. CNL’s Research and Development function will eventually be the centre of our brand. By Continued open and transparent communication focusing on an enduring R&D mission, CNL will partner will be key to CNL’s ongoing revitalization and with our host communities (Deep River and Pinawa), transformation. Engagement and dialogue with and other neighbouring communities, towards long- communities, employees, and all stakeholders will term economic growth and development.

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8 SUMMARY & CONCLUSION

135 8 | SUMMARY & CONCLUSION

8.1 KEY RISKS & ASSUMPTIONS Insufficient funding will impact the delivery of the program as scheduled. Additionally, differing conditions CNL’s 10-year plan considers a wide range of risks and realized during execution that deviate from the proposed opportunities. The overall program of work is dependent technical approaches discussed within this 10-year plan upon funding appropriations commensurate with the 10- may adjust out-year funding profiles. Most notable risks year funding profile. and assumptions are:

RISK CONSEQUENCE PROBABILITY MITIGATION

The new nuclear manufacture facility would be delayed or deferred. The trajectory will be confirmed Commercial Projections by 2018. Less commercial are inaccurate Medium revenue The Advanced Nuclear Materials (Revenue Low) Research Centre may be impacted in terms of projected capacity, but the need for the facility would not be compromised.

Commercial Projections Innovative working practices to are inaccurate (revenue Full order book Medium increase capacity of key facilities. higher than anticipated)

Commercial projections are inaccurate Limit a growth (Opportunities arise that High Partner with capability owners. opportunity demand capabilities CNL does not have)

Continue to provide services to SMR vendors who are not No vendors come forward Reduced revenue following the demonstrator for a SMR Initiative for CNL from the Low route and continue to service the demonstration project demonstrator Federal Family knowledge base for SMR deployment.

Exhibit 8-1: Risk, Consequence, Probability, and Mitigation

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RISK CONSEQUENCE PROBABILITY MITIGATION

Time scales pushed Augment the technical program Vendors cease trading out and drive a real with a high-level lobbying and interest wanes. Medium deployment to beyond exercise in conjunction with the Opportunity missed 2030 supply chain.

Life Extension market Reduced commercial penetration reduced Low See above. revenue against projections

Failure to win substantive work in the hydrogen field Reduced requirement Right-size the capability and Medium (Transport, co-generation, for capability repurpose the hydrogen facility. safety)

Advanced manufacture of fuel is technically Target revenue not Refocus on component, repair Medium unfeasible or not realized and fuel-pellet work. commercially attractive

Failure to win cyber Target revenue not Right-size capability and continue security contracts from Low realized to advise CNSC. industry

Pharmaceutical partner Reduced scope Early engagement of not forthcoming to work for Alpha Institute Low pharmaceutical-companies. on targeted alpha therapy Initiative

Exhibit 8-1: Risk, Consequence, Probability, and Mitigation

137 8 | SUMMARY & CONCLUSION

In addition, delivery of the strategies in this plan require a continuous balance of work activities while maintaining capabilities. Competing priorities of the ongoing operation of the Chalk River site, such as demands for resources and infrastructure, impose constraints that could impact schedule. In the near-term, the timely operation of the NSDF is a key achievement required to reduce liabilities and clear the necessary footprint for modernized S&T facilities and assets. The need for storage is assumed until the NSDF is operational, and as such, any delay to the facility will have an impact as extended storage of waste will be required.

138 2016-2026 10-YEAR INTEGRATED PLAN • CRL-502000-PLA-001, REVISION 0, 2017 APRIL 18 The commitment, dedication and technical excellence of CNL’s people have established a proud heritage. CNL Corporate Communications 1-800-364-6989 286 Plant Road, Stn 700 A [email protected] Chalk River ON, K0J 1J0 www.cnl.ca