1. Nuclear Industry QA Initiatives and Opportunities ASQ Southern Jersey Section October 22, 2008 Dinner Meeting October 22, 2008 Dinner Meeting Tom Mudge URS Washington Division

2. Topics of Discussion Nuclear Industry Background 1978 - Today Today’s Nuclear Industry Challenges Industry QA Initiatives Company Opportunities QA Professional Opportunities

3. Nuclear Industry 1978 -2004 126 Nuclear Plants under Construction (2 Step Licensing Process) Environmental Group Protests 1979 - Three Mile Island Incident Loss of Public Confidence Changing NRC Licensing Requirements Cost Overruns 1986 - Chernobyl Incident 1992 - Shoreham (built for a cost of $5.5 Billion) is sold for $1.00. Plant was fully decommissioned in 1994 never having operated. No new plants ordered after 1980 and several under construction were cancelled.

4. Nuclear Industry -2004 104 operating plants in USA No new nuclear plants had been ordered in past 20 years. –ndustry workforce was aging and predominantly Operations based. –Industry workforce was aging and predominantly Operations based. –Limited number of nuclear experienced personnel in the design and construction –Insufficient number of qualified suppliers

5. Drivers for Industry Renaissance Need for reliable economical energy source Environmental concerns for Global warming Change in Public’s perception of nuclear plants Reliable performance of existing plants Energy Act of 2005 –Loan guarantees –Incentives for first six plants to be built 10CFR Part 52 (One step licensing process) –Standardized plant designs

6. 10CFR Part 52 One step licensing Process –Standard Design Certification (DCD) –Combined Operating License (COLA) –Early Site Permits (ESP) –Inspection, Test and Analysis and Acceptance Criteria (ITAAC)

7. Standard Plant Designs ABWR (Advanced Boiling Water Reactor) by GEH & Toshiba AP-1000 (Advanced PWR) by Westinghouse ESBWR (Economically Safe Boiling Water Reactor) by GEH EPR (European Pressurized Water Reactor) by Areva US APWR (Advanced Pressurized Water Reactor for US Deployment) by Mitsubishi Heavy Industries

8. Consortiums ABWR - Toshiba & Fluor AP-1000 - Westinghouse & Shaw Group ESBWR - GEH & URS Washington Division EPR - Unistar (Areva & Bechtel) US APWR - MHI & URS Washington Division

9. Nuclear Plant Applications 2007 - 5 COLAs 2008 - 12 COLAs & 1 more anticipated 2009 - 2 Anticipated 2010 - 3 Anticipated Total COLAs - 23 Total Units - 34

10. 2006 - Industry Mobilizes NEI - Nuclear Energy Institute INPO - Institute of Nuclear Power Operations EPRI - Electric Power Research Institute

11. NEI QA Initiatives Template for QA Topical Reports Lessons Learned Document (INPO) Standard for PI&R Process (CAP) Commercial Grade Dedication Fraudulent / Counterfeit Items Address Supplier Shortage Develop New QA/QC Professionals QA Role in ITAAC SCWE

12. NEI Supplier Workshops NEI conducts “pinch point” study Three workshops conducted: –March- Columbia, SC –April - Cleveland, OH –June - Houston, TX Approximately 200-300 suppliers attended each workshop QA Program discussion and questions

13. Shortage of QA Professionals for Design and Construction Existing workforce is predominantly Operations based NEI study of nuclear workforce found that, of 64 work classifications, QC and QA had the highest percentage of personnel over 48 years of age, 78% and 76% respectively. Approximately 4000 - 6000 new QA Professionals needed –30 plants X 120 = 3600 at construction site & suppliers –30 plants X 20 = 600 for utility oversight –60 new suppliers = 300 for supplier QA/QC

14. Opportunities for QA Professionals Consultants to assist new suppliers in developing and deploying their nuclear QA Program Employment with nuclear companies: –Design & engineering –Construction –Suppliers of goods & services –Utilities

15. Questions?