To address national security interests and prevent the unauthorized transfer of scientific and technical information to certain foreign entities, the US Department of Energy (DOE) issued Order No. 486.1 on June 7. The order prohibits DOE employees and contractors from participating in certain “talent recruitment programs” – specifically “talent recruitment programs” of foreign governments determined by the DOE to be a “foreign country of risk.” DOE contractors and subcontractors within the utility and nuclear sectors should be prepared to implement controls to ensure that neither they nor their employees or subcontractors participate in these foreign-sponsored programs for identified countries, which apparently include China and Russia.
The Environmental Protection Agency (EPA) issued three rules on June 19, granting additional powers to states to determine their projected energy resource mixes, including nuclear energy. In response to the rules, utilities should be prepared for possible changes to state policies defining what constitutes “clean” energy and supporting reliability. The rules are intended to go into effect 30 days from their issuance. However, the implementation timeline for the rules is not certain because several states and organizations have stated they intend to challenge the rules in the federal courts.
Representative Elaine Luria (D-VA-02) introduced the Nuclear Energy Leadership Act (NELA) (H. 3306) into the House of Representatives on June 18. According to a press release from the congresswoman’s website, NELA will help to “create high-quality jobs, strengthen national security, reduce foreign energy dependence, and promote emissions-free energy.” Original co-sponsors of the bill include Representative Denver Riggleman (R-VA-05), Representative Conor Lamb (D-PA-17), and Representative Rob Wittman (R-VA-01).
The House bill is the companion to Senate Bill 903 (S. 903) that Senators Lisa Murkowski (R-AK) and Cory Booker (D-NJ), along with 14 other original co-sponsors, reintroduced on March 27. Senators Murkowski and Booker, along with seven other bipartisan senators, originally introduced NELA on September 6, 2018, as Senate Bill 3422 (S. 3422). Although the Senate Subcommittee on Energy held hearings on S. 3422 in November 2018, it took no further action before the end of the 115th Congress. The bill consequently lapsed, requiring the senators to reintroduce it as S. 903. The bill now has 17 co-sponsors in the Senate.
Staff members from the US Nuclear Regulatory Commission’s (NRC’s) Office of Nuclear Security and Incident Response and Office of Nuclear Reactor Regulation held a public meeting on June 17 to discuss a summary of the Assessment of the NRC’s Power Reactor Cyber Security Program. In response to the Nuclear Energy Institute’s (NEI’s) PRM-73-18, “Petition to Amend 10 CFR 73.54, ‘Protection of Digital Computer and Communication Systems and Networks’,” and based on NRC guidance, this Assessment marked 10 years since the publication of 10 CFR 73.54.
The US Supreme Court issued its decision on June 17 in the case of Virginia Uranium, Inc. v. Warren. The Court affirmed the decision of the US Court of Appeals for the Fourth Circuit, which held that the Atomic Energy Act does not preempt Virginia’s statutory prohibition on uranium mining. This decision is important to the nuclear industry because it considers the extent to which state and local governments may insert themselves into the field of radiological safety by enacting “bottleneck” laws purporting to regulate antecedent activities.
The US Department of Energy (DOE) issued a Supplemental Federal Register Notice on June 5 that addresses its interpretation of what constitutes high-level radioactive waste (HLW). The DOE said the notice reflects DOE policy modifications informed by public comments it received during the 90-day public comment period after it issued the initial Federal Register Notice on October 10, 2018. DOE stated that it received roughly 360 distinct, unrepeated comments from a variety of stakeholders: members of the public, Native American tribes, members of Congress, numerous state and local governments, and one federal agency, the Nuclear Regulatory Commission (NRC).
In the latest installment of NRC’s changes to its guidance on backfitting on May 29, the Commission approved the Staff’s proposed revisions to Management Directive (MD) 8.4, previously titled, “Management of Backfitting, Issue Finality, and Information Collection” and its companion Directive Handbook (DH). As a result of content changes (discussed herein), the title of these directives has now been modified to also provide guidance for the “forward-fitting” requirements for 10 CFR Part 52 licensees by including its analogous terms for Backfitting, “forward fitting and issue finality.” As such, NRC guidance on Backfitting is now called “Management of Backfitting, Forward Fitting, issue Finality, and Information Requests.”
The US Department of Energy (DOE) recently published proposed changes to its Contractor Employee Protection Program in the Federal Register. DOE’s Contractor Employee Protection Program appears in 10 C.F.R. Part 708 (Part 708) and extends employee protections to employees of DOE contractors and subcontractors modeled after the protections for federal employees that appear in the Whistleblower Protection Act (5 U.S.C. § 1201 et seq.).
The NRC on May 3 took the overdue step of withdrawing portions of certain power reactor security requirements—issued via three agency orders in the aftermath of the events of September 11, 2001, which were subsequently captured in agency regulations:
- EA-02-026, “Order for Interim Safeguards and Security Compensatory Measures” (February 25, 2002)
- EA-02-261, “Order for Compensatory Measures Related to Access Authorization” (January 7, 2003)
- EA-03-039, “Order for Compensatory Measures Related to Training Enhancements on Tactical and Firearms Proficiency and Physical Fitness Applicable to Armed Nuclear power Plant Security Force Personnel” (April 29, 2003).
In its updated guidance issued on April 30, the US Department of Justice Criminal Division places effectiveness at the epicenter of its factors to be utilized when evaluating a company’s compliance program in the context of a criminal investigation. As corporate compliance programs continue to be closely scrutinized, companies and their boards, senior management, and legal and compliance departments should tailor their corporate compliance programs to issues and risk areas specific to the company’s business. Senior management plays a critical role in identifying these issues and risk areas and must serve as an example and enforcer of good compliance practices. Companies cannot let their compliance programs get stale and must continue to innovate, revamp, and enhance their corporate compliance practices based on lessons learned. DOJ emphasizes that “one hallmark of an effective compliance program is its capacity to improve and evolve.”