1. New Reactors Bill Borchardt Director, Office of New Reactors

2. 1 Nuclear Energy Worldwide There are currently 435 commercial nuclear power reactors operating in 30 countries Nuclear power provides over 16% of the world's electricity and 34% in the European Union. 30 more power reactors are under construction, while over 60 are firmly planned

3. 2 Conditions of the mid-1980s did not favor nuclear construction Energy efficiency improvements Economic restructuring Significant drop in electricity demand Excess generating capacity Oil (traded fossil energy) price collapse Electricity market liberalization & privatization Regulatory interventions after TMI High Interest rates Chernobyl

4. 3 Conditions of today are distinctly different from the mid-1980s Strong energy demand growth Fossil fuels no longer cheap Energy supply security concerns Attractive life cycle costs of nuclear power Pollution control and climate change Excellent operating experience Renewables and efficiency improvements: Low hanging fruit already harvested

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6. 5 Energy Policy Act of 2005 Authorizes federal risk insurance for the next 6 nuclear plants for delays associated with NRC reviews ($500 M for first 2 plants, $250 M for next 4 plants) Nuclear energy production tax credits for the first 6,000 megawatts of electricity from new advanced reactors Authorizes $3 billion in nuclear research and development to support NGNP and NP2010

7. 6 National Programs NP2010(Nuclear Power 2010): A joint government/industry cost-shared effort to demonstrate key regulatory processes associated with siting and building new nuclear power plants NGNP (Next Generation Nuclear Plant): A demonstration reactor at Idaho National Laboratory that will serve as a test for advanced reactor technologies and for cogeneration of hydrogen by nuclear energy. GNEP (Global Nuclear Energy Partnership): A program to develop new proliferation-resistant recycling technologies in order to produce more energy, reduce waste, and minimize proliferation concerns.

8. 7 NRC Mission NRC Mission Statement To regulate the nation's civilian use of byproduct, source, and special nuclear materials to ensure adequate protection of public health and safety, to promote the common defense and security, and to protect the environment. Office of New Reactors The Office of New Reactors serves the public interest by enabling the safe, secure, and environmentally responsible use of nuclear power in meeting the nation's future energy needs

9. 8 Resurgence of Nuclear Power 29 new plants at 20 sites proposed by the industry Five different plant designs proposed –AP1000 –Economic Simplified Boiling Water Reactor –Evolutionary Power Reactor –Advanced Boiling Water Reactor –Advanced Pressurized Water Reactor

10. 9 New Reactor Licensing Applications 201320122011201020092008200720062005 Design Cert AP1000 Program Review EPR Program Review ABWR Program Review 2014 Duke – Lee Station (SC) Hearing Progress Energy - Harris (NC) HearingTVA – Bellefonte (AL)Hearing South Carolina E&G-Summer Vogtle ESP Southern – Vogtle (GA) Hearing * Schedules depicted for future activities represent nominal assumed review durations based on submittal time frames in letters of intent from prospective applicants. Actual schedules will be determined when applications are docketed. NRG Energy – South Texas Project Hearing Amarillo Power Hearing Design Certification UniStar-Calvert Cliffs (MD ) Hearing UniStar-Nine Mile Pt (NY) Hearing An estimated schedule by Fiscal Year 8/13/07 ESBWR Program Review Design Certification Dominion - North Anna (VA) Hearing Entergy – Grand Gulf (MS) Hearing Entergy – River Bend (LA) Hearing Grand Gulf ESP North Anna ESP Hearing DC – Mitsubishi USAPWR TXU Power –Comanche Peak (TX) COL Hearing USAPWR Program Review Progress Energy–Levy County (FL) Hearing Legend: Post SER/EIS Hearing (other hearing activities occur during ESP/COL safety and environmental reviews) Design Certification Early Site Permit Combined License Hearing AmerenUE - Callaway Hearing FPL - Site and Vendor TBD Hearing Exelon - Site and Vendor TBD Hearing DTE – Fermi - Vender TBD Hearing Unspecified PPL - SusquehannaHearing Clinton ESPHearing AEH – Bruneau, IDHearing

11. 10 Potential New Reactor Applicants ESBWR Dominion Entergy NuStart US ABWR NRG Energy AP1000 Duke NuStart Progress Energy S.C. Electric & Gas Southern Co. EPR Amarillo Power Ameren UE PPL Generation UNISTAR US APWR TXU Power

12. 11 Part 52 Licensing Process Provide a more predictable licensing process Resolve safety and environmental issues before authorizing construction Provide for timely & meaningful public participation Encourage standardization of nuclear plant designs Reduce financial risk to nuclear plant licensees

13. December 13, 2005 Early Site Permit Or Equivalent Siting Information* Early Site Permit Or Equivalent Siting Information* Standard Design Certification Or Equivalent Design information* Standard Design Certification Or Equivalent Design information* Combined License Review, Hearing, and Decision* Combined License Review, Hearing, and Decision* Verification Of Regulations with ITAAC Verification Of Regulations with ITAAC Reactor Operation Decision Reactor Operation Decision Optional Pre-Application Review *A combined license application can reference an early site permit, a standard design certification, both, or neither. If an early site permit and/or a standard design certification is not referenced, the applicant must provide an equivalent level of information in the combined license application. Part 52 Licensing Process Pre-Construction Post-Construction

14. 13 Early Site Permits (ESPs) 10 CFR Part 52, Subpart A An ESP is a license (“partial construction permit”) Review scope –Site safety –Environmental –Emergency preparedness Mandatory hearing Permit good for 10-20 years Allows applicant to “bank” a site Two ESPs issued (Clinton and Grand Gulf), 2 under review (North Anna and Vogtle)

15. 14 Standard Design Certifications Allows an applicant to obtain pre-approval of a standard nuclear plant design through rulemaking Reduces licensing uncertainty by resolving design issues early in the licensing process Facilitates standardization Higher degree of regulatory finality Certification good for 15 years 4 designs approved: (C-E System 80+; GE Advanced Boiling Water Reactor (ABWR); Westinghouse AP600; Westinghouse AP1000), 1 design under review (General Electric ESBWR), 2 designs in pre-application activities (Areva EPR and the Mitsubishi US APWR).

16. 15 Combined Licenses 10 CFR Part 52, Subpart C Combined License (COL) = a combined construction permit and operating license with conditions A COL is the fundamental licensing process in Part 52 for reducing the financial risks for electric companies building nuclear power plants COL can reference ESP, DCR, both, or neither Must meet technical standards in Parts 50, 100, etc. 40 year duration

17. 16 New Construction Nuclear plants will be built more rapidly than their predecessors Detailed engineering will be essentially complete by start of construction Modular construction techniques will be used Fabrication of components may begin before COL issuance Components and modules will be fabricated in other countries

18. 17 Security for New Reactors Commission Policy Statement modified to encourage applicants to consider security early in the design Staff to perform aircraft impact assessments on new designs Part 52 to be revised to require applicants to perform aircraft impact assessments Sharing insights with other countries

19. 18 Digital Instrumentation & Controls Key Technical Issues: –Cyber security –diversity and defense-in-depth –highly integrated control rooms - human factors –highly integrated control rooms - communications –risk-informed digital I&C

20. 19 Multinational Design Evaluation Program Stage 1 – Trilateral agreement to share information and reviews on EPR design –Finland, France, and U.S. Stage 2 – 10 countries participating –Exploring opportunities for convergence of safety goals and regulatory practices Stage 3 – implementation stage

21. 20 Challenges for New Construction Ability of the grid to support new construction Large component manufacturing Workforce / staffing

22. 21 ABWR Design Certification - May 1997 1350 MWe evolutionary design Vessel mounted internal recirc pumps Fine motion control rod drives Digital I&C 3 full train ECCS

23. 22 System 80+ Design Certification - May 1997 1350 MWe evolutionary design Complete plant design based on System 80 NSSS and Cherokee/Perkins BOP Advanced Control Room Severe accident prevention and mitigation

24. 23 AP600 Design Certification – December 1999 600 MWe advanced reactor design Digital I&C Passive Safety Systems –Passive safety injection –Passive residual heat removal –External reactor vessel cooling

25. 24 AP1000 1117 MWe Passive containment cooling system with steel containment vessel and natural circulation air flow Gravity drain core makeup tanks and refueling water storage tanks Natural circulation heat exchangers connected to RCS Design Certification Rule - December 2005

26. 25 ESBWR “Economic and Simplified BWR” 1390 MWe GE reactor based on Simplified BWR and Advanced BWR Natural circulation Passive safety systems Design Certification Application submitted and staff review underway

27. 26 EPR 1600 MWe evolutionary design Four 100% capacity engineered safety feature trains Double-walled containment Corium spreading area for severe accident mitigation Pre-application review beginning Design certification application planned for late CY 2007