August 31, 1999

Thompson letter on GPRA - NRC Attachment 1

OPEN RECOMMENDATIONS ON NRC

MAJOR MANAGEMENT PROBLEMS

NRC LACKS ASSURANCE OF NUCLEAR PLANTS’ SAFETY

Problem Description: The Nuclear Regulatory Commission (NRC) lacks assurance that its current regulatory approach ensures safety. NRC assumes that plants are safe if they operate as designed and follow NRC’s regulations. However, NRC’s regulations and other guidance do not define, for either a licensee or the public, the conditions necessary for a plant’s safety; therefore, determining safety is subjective. Furthermore, six major reviews of NRC since 1979 have pointed out that NRC’s regulatory approach is punitive rather than results oriented, licensees are forced to expend considerable resources on complying with regulations that may have limited impact on safety, and NRC’s focus on achieving compliance with paperwork requirements can divert attention from safety activities. NRC and the nuclear utility industry have embarked on initiatives to address long-standing regulatory issues in a way that would ensure that NRC carries out its regulatory mission more effectively and efficiently. These initiatives are designed to improve safety decision-making through the analysis of risk, use agency resources more efficiently, and reduce unnecessary burdens on utilities.

GAO Report No. and Date

Recommendation

RCED-97-145 May 30, 1997

To enhance licensees’ accountability, the Commissioners should direct NRC staff to develop strategies to act more aggressively on safety deficiencies when they are discovered. To achieve this goal, NRC should require inspection reports to fully document for all plants the status of the licensees’ actions to address identified problems under NRC’s corrective action requirements, including timetables for the completion of corrective actions and how NRC will respond to nonconformance with planned actions.

NRC IS SLOW TO REQUIRE CORRECTIVE ACTION

Problem Description: NRC’s oversight has been inadequate and slow. Although NRC’s indicators show that conditions throughout the nuclear energy industry have generally improved, they also show that several plants are chronically poor performers. At three nuclear plants with long-standing safety problems that GAO reviewed, NRC did not take aggressive action to ensure that the utilities corrected the problems. The problems ranged from failures of equipment to work properly when tested to weaknesses in licensees’ conduct of maintenance programs. NRC’s programs are designed to ensure that utilities comply with its regulations, take prompt actions to correct any deficiencies found, and operate their plants safely. NRC gives utilities considerable latitude to fix their problems. This strategy works well when the utilities’ managers place priority on maintaining a strong safety culture. GAO found, however, that this condition was not present in the three plants it examined and that the problems worsened when NRC did not hold utilities accountable for fixing them. As a result of NRC’s inaction, the conditions at the plants worsened, reducing safety margins. NRC is examining its inspection, enforcement, and plant performance assessment programs, in part, to address these issues. These efforts show a commitment by NRC to strengthen its oversight.

GAO Report No. and Date	Recommendation
RCED-97-145 May 30, 1997	To enhance licensees’ accountability, the Commissioners should direct NRC staff to develop strategies to more aggressively act on safety deficiencies when they are discovered. To achieve this goal, NRC should require inspection reports to fully document for all plants the status of the licensees’ actions to address identified problems under NRC’s corrective action requirements, including timetables for the completion of corrective actions and how NRC will respond to nonconformance with planned actions.
	To enhance licensees’ accountability, the Commissioners should direct NRC staff to develop strategies to act more aggressively on safety deficiencies when they are discovered. To achieve this goal, NRC should make licensees’ responsiveness to identified problems a major feature of the information provided to the participants of the Senior Management Meetings, including how NRC will respond if problems go uncorrected. For example, NRC should describe the range of sanctions that it will impose on the licensees on the basis of the potential seriousness of their failure to resolve problems within a predetermined time. These sanctions should range from assessing fines to involuntary shutdown of the plant.

NRC’S CULTURE AND ORGANIZATIONAL STRUCTURE IMPEDE EFFECTIVE ACTIONS

Problem Description: NRC’s culture and organizational structure have made the process of addressing concerns with the agency’s regulatory approach slow and ineffective. At the heart of safe plant operations is NRC’s holding utilities accountable for fixing problems more promptly and addressing management issues more directly. The need to ensure that NRC’s regulatory programs work as effectively as possible is extremely important, particularly in light of major changes taking place in the electric utility industry. Yet changing NRC’s culture will not be easy. Six major reviews conducted since 1979 found chronic and significant problems with NRC’s regulatory culture. The various reviews have concluded that NRC’s organizational structure, inadequate management control, and inability to oversee itself have impeded its effectiveness. NRC has taken various actions to improve its organization and culture. For example, in 1996 NRC began to strengthen its skills in certain key processes and to identify opportunities for efficiency and effectiveness. Despite its efforts, in June 1998, NRC’s Office of the Inspector General reported that staff were uncertain and confused about the new directions in regulatory practices and challenges facing the agency. According to staff, NRC recognizes the need to communicate effectively with its staff and other stakeholders and is developing plans to do so.

GAO Report No. and Date	Recommendation
RCED-99-95 Mar. 19, 1999	To help ensure the safe operation of plants and the continued protection of public health and safety in a competitive environment, the Commissioners of NRC should direct the staff to develop a comprehensive strategy that includes, but is not limited to, objectives, goals, activities, and time frames for the transition to risk-informed regulation; specifies how the commission expects to define the scope and implementation of risk-informed regulation; and identifies the manner in which it expects to continue the free exchange of operational information necessary to improve the quality and reliability of risk assessments.
RCED-97-145 May 30, 1997	To enhance licensees’ accountability, the Commissioners should direct NRC staff to develop strategies to more aggressively act on safety deficiencies when they are discovered. To achieve this goal, NRC should require that the assessment of management’s competency and performance be a mandatory component of NRC’s inspection process.