Enabling Nuclear Innovation Strategies for Advanced Reactor Licensing A Report by the Nuclear Innovation Alliance Enabling Nuclear Innovation Strategies for Advanced Reactor Licensing Enabling Nuclear Innovation Strategies for Advanced Reactor Licensing LEAD AUTHOR Ashley E. Finan, Ph.D., Clean Air Task Force TECHNICAL CONTRIBUTORS Francis “Chip” Cameron, CameronGray, LLC Joseph R. Gray, CameronGray, LLC David B. Matthews, Nuclear Energy Consultants, Inc. Edward G. Wallace, GNBC Associates, Inc. A Report by the Nuclear Innovation Alliance April 2016 ii NUCLEAR INNOVATION ALLIANCE Acknowledgements Enabling Nuclear Innovation: This report was made possible through the generous Strategies for Advanced Reactor Licensing support of the Laura and John Arnold Foundation, the Pritzker Innovation Fund, Ross Koningstein, Ray Rothrock, and Jim Swartz. April 2016 The authors would like to thank the following individuals and © 2016 Nuclear Innovation Alliance organizations for their invaluable contributions and counsel: All Rights Reserved. Todd Allen, George Apostolakis, Jim Kinsey, Marilyn Kray, Peter Lyons, Adam Reichenbach, Paul Roege, Dan Stout, Gen4 Energy, Nuclear Energy Institute, NuScale Power, Southern Nuclear Operating Company, Terrestrial Energy, Transatomic Power, X-energy, and the Nuclear Innovation Alliance Policy and Advisory Committees. Clean Air Task Force, Energy Innovation Reform Project, Third Way, and The Breakthrough Institute endorse the www.nuclearinnovationalliance.org recommendations of this report. This report is available online at: http://www.nuclearinnovationalliance.org/#!advanced- reactor-licensing/xqkhn DESIGN David Gerratt/NonProfitDesign.com EDITING Rusty Russell/thewritingcounselor.net DISCLAIMER COVER PHOTOS This report emerges from the knowledge and experience of a core Clockwise from top left: “Hydrides in Spent Fuel” team of industry and regulatory experts, as well as a broader range © Tammy Trowbridge and Joe Pehrson; of inputs that address the specific needs of stakeholder communities. “Uranium Fenced In” © Scott Ploger; Not all of the issues that the team brought up are included in this “Crystallographic Zircaloy” © Tammy Trowbridge; report, nor did all parties agree on the relative importance of or solution “Crystal Blue Persuasion” © Yuedong Wu; “Alloys to each of the issues raised here. Thus, although they recognize the That Can Take The Heat” © Tammy Trowbridge and many valuable contributions to this effort, the authors and NIA assume Joe Pehrson; “Particles Suspended” © Scott Ploger. full responsibility for this document’s contents, conclusions, and recommendations. The views expressed are those of the authors Visit artsci.inl.gov for more information. and not necessarily those of the funders. STRATEGIES FOR ADVANCED REACTOR LICENSING iii Contents Executive Summary ................................................................................................2 A. Regulatory Recommendations ............................................................................3 B. Policy Recommendations ...................................................................................5 C. Industry Recommendations ................................................................................6 I. Introduction ...........................................................................................................7 A. Nuclear Innovation: Importance and Potential ......................................................7 B. Challenges to Nuclear Innovation ........................................................................8 C. Guide for the Reader .......................................................................................12 II. Reactor Development and Deployment Process .....................................................14 III. Useful Regulatory Models and Observations ..........................................................17 A. Historical Practices at the NRC and the AEC ......................................................17 1. Early AEC Practices ...................................................................................17 2. Post-ERA DOE and NRC Non-LWR Practices..................................................18 B. UK Office of Nuclear Regulation and Canadian Nuclear Safety Commission..........19 1. Pre-Licensing Design Review ......................................................................20 2. Cost Limitation Agreements for Pre-Licensing Review Activities .....................24 3. More Flexible Regulation ............................................................................24 4. Public Participation ....................................................................................25 C. Federal Aviation Administration .........................................................................26 1. FAA Regulatory Process .............................................................................26 2. FAA Use of Risk-Informed and Performance-Based Regulation .......................28 D. Food and Drug Administration ..........................................................................29 1. FDA Mission and Structure .........................................................................29 2. Drug Approval Process ...............................................................................30 3. Development and Regulation of New Technologies .......................................31 iv NUCLEAR INNOVATION ALLIANCE IV. Mechanisms for Staging Advanced Reactor Licensing .................................................. 32 A. Developing a Licensing Project Plan ........................................................................ 32 B. Using Topical Reports to Create a Staged Approach ................................................. 34 1. How Topical Reports Work ................................................................................. 34 2. Execution of a Staged Topical Report Program ..................................................... 36 3. Topical Report Benefits ...................................................................................... 37 4. Topical Report Review Duration .......................................................................... 38 5. Limitations of Topical Report Conclusions ........................................................... 38 6. Actions by NRC Needed to Implement this Approach ............................................ 38 C. Using the Standard Design Approval to Create a Staged Approach ............................ 38 1. How Standard Design Approval Works................................................................. 39 2. Execution of a Standard Design Approval within a Staged Process ........................ 39 3. Standard Design Approval Benefits ..................................................................... 43 4. Standard Design Approval Review Duration ......................................................... 43 5. Specific Conclusions from Standard Design Approval ........................................... 44 6. Limitations of Standard Design Approval Conclusions .......................................... 44 D. Providing a Statement of Licensing Feasibility .......................................................... 44 E. Staged Licensing Results ....................................................................................... 45 1. Benefits and Challenges .................................................................................... 45 2. Improved Timeline Potential ............................................................................... 46 F. Finality of Decisions in a Staged Licensing Process ................................................. 48 V. Other Possible Improvements to Advanced Reactor Licensing ...................................... 49 A. Providing a More Technology-Inclusive Licensing Process .......................................... 49 1. Probabilistic Risk Assessment as a Regulatory Tool ............................................. 49 2. Past and Current NRC Initiatives and Practices .................................................... 50 3. Recommendations ............................................................................................ 52 B. Preparing and Clarifying an Advanced Reactor Demonstration Licensing Process ........ 52 1. Summary of Current DOE and NRC Responsibilities ............................................. 53 2. Key Issues ....................................................................................................... 54 STRATEGIES FOR ADVANCED REACTOR LICENSING v VI. Recommendations ...................................................................................................... 55 A. Regulatory ............................................................................................................ 55 B. Policy ................................................................................................................... 58 C. Industry ................................................................................................................ 58 Abbreviations ................................................................................................................... 59 Appendix A: The Advanced Reactor Development and Deployment Process ........................ 61 A. Development Process Stakeholder Timelines ........................................................... 61 B. Reducing Program Risk .........................................................................................