<DOC> [106th Congress House Hearings] [From the U.S. Government Printing Office via GPO Access] [DOCID: f:61296.wais] Y2K AND NUCLEAR POWER: WILL THE REACTORS REACT RESPONSIBLY? ======================================================================= JOINT HEARING before the SUBCOMMITTEE ON GOVERNMENT MANAGEMENT, INFORMATION, AND TECHNOLOGY of the COMMITTEE ON GOVERNMENT REFORM and the SUBCOMMITTEE ON TECHNOLOGY of the COMMITTEE ON SCIENCE HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTH CONGRESS FIRST SESSION __________ OCTOBER 22, 1999 __________ Committee on Government Reform Serial No. 106-58 Committee on Science Serial No. 106-55 __________ Printed for the use of the Committee on Government Reform and the Committee on Science Available via the World Wide Web: http://www.house.gov/reform ______ U.S. GOVERNMENT PRINTING OFFICE 61-296 CC WASHINGTON : 1999 COMMITTEE ON GOVERNMENT REFORM DAN BURTON, Indiana, Chairman BENJAMIN A. GILMAN, New York HENRY A. WAXMAN, California CONSTANCE A. MORELLA, Maryland TOM LANTOS, California CHRISTOPHER SHAYS, Connecticut ROBERT E. WISE, Jr., West Virginia ILEANA ROS-LEHTINEN, Florida MAJOR R. OWENS, New York JOHN M. McHUGH, New York EDOLPHUS TOWNS, New York STEPHEN HORN, California PAUL E. KANJORSKI, Pennsylvania JOHN L. MICA, Florida PATSY T. MINK, Hawaii THOMAS M. DAVIS, Virginia CAROLYN B. MALONEY, New York DAVID M. McINTOSH, Indiana ELEANOR HOLMES NORTON, Washington, MARK E. SOUDER, Indiana DC JOE SCARBOROUGH, Florida CHAKA FATTAH, Pennsylvania STEVEN C. LaTOURETTE, Ohio ELIJAH E. CUMMINGS, Maryland MARSHALL ``MARK'' SANFORD, South DENNIS J. KUCINICH, Ohio Carolina ROD R. BLAGOJEVICH, Illinois BOB BARR, Georgia DANNY K. DAVIS, Illinois DAN MILLER, Florida JOHN F. TIERNEY, Massachusetts ASA HUTCHINSON, Arkansas JIM TURNER, Texas LEE TERRY, Nebraska THOMAS H. ALLEN, Maine JUDY BIGGERT, Illinois HAROLD E. FORD, Jr., Tennessee GREG WALDEN, Oregon JANICE D. SCHAKOWSKY, Illinois DOUG OSE, California ------ PAUL RYAN, Wisconsin BERNARD SANDERS, Vermont HELEN CHENOWETH-HAGE, Idaho (Independent) DAVID VITTER, Louisiana Kevin Binger, Staff Director Daniel R. Moll, Deputy Staff Director David A. Kass, Deputy Counsel and Parliamentarian Carla J. Martin, Chief Clerk Phil Schiliro, Minority Staff Director ------ Subcommittee on Government Management, Information, and Technology STEPHEN HORN, California, Chairman JUDY BIGGERT, Illinois JIM TURNER, Texas THOMAS M. DAVIS, Virginia PAUL E. KANJORSKI, Pennsylvania GREG WALDEN, Oregon MAJOR R. OWENS, New York DOUG OSE, California PATSY T. MINK, Hawaii PAUL RYAN, Wisconsin CAROLYN B. MALONEY, New York Ex Officio DAN BURTON, Indiana HENRY A. WAXMAN, California J. Russell George, Staff Director and Chief Counsel Matt Ryan, Senior Policy Director Bonnie Heald, Communications Director/Professional Staff Member Chip Ahlswede, Clerk Trey Henderson, Minority Counsel COMMITTEE ON SCIENCE HON. F. JAMES SENSENBRENNER, Jr., (R-Wisconsin), Chairman SHERWOOD L. BOEHLERT, New York RALPH M. HALL, Texas, RMM** LAMAR SMITH, Texas BART GORDON, Tennessee CONSTANCE A. MORELLA, Maryland JERRY F. COSTELLO, Illinois CURT WELDON, Pennsylvania JAMES A. BARCIA, Michigan DANA ROHRABACHER, California EDDIE BERNICE JOHNSON, Texas JOE BARTON, Texas LYNN C. WOOLSEY, California KEN CALVERT, California LYNN N. RIVERS, Michigan NICK SMITH, Michigan ZOE LOFGREN, California ROSCOE G. BARTLETT, Maryland MICHAEL F. DOYLE, Pennsylvania VERNON J. EHLERS, Michigan* SHEILA JACKSON-LEE, Texas DAVE WELDON, Florida DEBBIE STABENOW, Michigan GIL GUTKNECHT, Minnesota BOB ETHERIDGE, North Carolina THOMAS W. EWING, Illinois NICK LAMPSON, Texas CHRIS CANNON, Utah JOHN B. LARSON, Connecticut KEVIN BRADY, Texas MARK UDALL, Colorado MERRILL COOK, Utah DAVID WU, Oregon GEORGE R. NETHERCUTT, Jr., ANTHONY D. WEINER, New York Washington MICHAEL E. CAPUANO, Massachusetts FRANK D. LUCAS, Oklahoma BRIAN BAIRD, Washington MARK GREEN, Wisconsin JOSEPH M. HOEFFEL, Pennsylvania STEVEN T. KUYKENDALL, California DENNIS MOORE, Kansas GARY G. MILLER, California VACANCY JUDY BIGGERT, Illinois MARSHALL ``MARK'' SANFORD, South Carolina JACK METCALF, Washington Subcommittee on Technology CONSTANCE A. MORELLA, Maryland, Chairwoman CURT WELDON, Pennsylvania JAMES A. BARCIA, Michigan** ROSCOE G. BARTLETT, Maryland LYNN N. RIVERS, Michigan GIL GUTKNECHT, Minnesota* DEBBIE STABENOW, Michigan THOMAS W. EWING, Illinois MARK UDALL, Colorado CHRIS CANNON, Utah DAVID WU, Oregon KEVIN BRADY, Texas ANTHONY D. WEINER, New York MERRILL COOK, Utah MICHAEL E. CAPUANO, Massachusetts MARK GREEN, Wisconsin BART GORDON, Tennessee STEVEN T. KUYKENDALL, California BRIAN BAIRD, Washington GARY G. MILLER, California Ex Officio F. JAMES SENSENBRENNER, Jr., RALPH M. HALL, Texas+ Wisconsin+ C O N T E N T S ---------- Page Hearing held on October 22, 1999................................. 1 Statement of: Beedle, Ralph, senior vice president and chief nuclear officer, Nuclear Energy Institute.......................... 51 Miraglia, Frank, Deputy Executive Director for Reactor Programs, U.S. Nuclear Regulatory Commission............... 30 Rhodes, Keith, Director, Office of Computer and Information Technology Assessment, Office of Management and Budget..... 28 Willemssen, Joel, Director, Civil Agencies Information Systems, U.S. General Accounting Office.................... 8 Letters, statements, etc., submitted for the record by: Beedle, Ralph, senior vice president and chief nuclear officer, Nuclear Energy Institute: Nuclear utility readiness information.................... 78 Prepared statement of.................................... 53 Horn, Hon. Stephen, a Representative in Congress from the State of California: Letter dated December 18, 1998........................... 328 Prepared statement of.................................... 3 Miraglia, Frank, Deputy Executive Director for Reactor Programs, U.S. Nuclear Regulatory Commission, prepared statement of............................................... 33 Rhodes, Keith, Director, Office of Computer and Information Technology Assessment, Office of Management and Budget, prepared statement of...................................... 9 Turner, Hon. Jim, a Representative in Congress from the State of Texas, prepared statement of............................ 5 Willemssen, Joel, Director, Civil Agencies Information Systems, U.S. General Accounting Office, prepared statement of......................................................... 9 Y2K AND NUCLEAR POWER: WILL THE REACTORS REACT RESPONSIBLY? ---------- FRIDAY, OCTOBER 22, 1999 House of Representatives, Committee on Government Reform, Subcommittee on Government Management, Information, and Technology, joint with the Committee on Science, Subcommittee on Technology, Washington, DC. The subcommittees met, pursuant to notice, at 10:13 a.m. in room 2318, Rayburn House Office Building, Hon. Stephen Horn (chairman of the Subcommittee on Government Management, Information, and Technology) presiding. Present from the Subcommittee on Government Management, Information, and Technology: Representatives Horn, Turner, Mink, Biggert, Kanjorski, Ryan, Davis, Ose, and Maloney. Present from the Subcommittee on Technology: Representatives Morella, Bartlett, Capuano, Baird, Gutknecht, Ehlers, and Udall. Staff present from the Subcommittee on Government Management, Information, and Technology: George Russell, staff director and chief counsel; Matthew Ryan, senior policy director; Bonnie Heald, communications director and professional staff member; Chip Ahlswede, clerk; P.J. Caceres and Deborah Oppenheim, interns; Trey Henderson and Michelle Ash, minority counsels; and Jean Gosa, minority staff assistant. Staff present from the Subcommittee on Technology: Jeff Grove, staff director; Ben Wu, professional staff member; Joe Sullivan, staff assistant; Michael Quear, professional staff member; and Mary Ralston, staff assistant. Mr. Horn. A quorum being present, we will begin the hearing. There are more than 430 nuclear power plants in the world, including 103 in the United States. Domestically, nuclear power plants provide an estimated 20 percent of the Nation's power supply. Regardless of the year 2000 computer challenge, safety has historically been a paramount concern at all U.S. nuclear facilities; however, the risk of even one failure at one plant is one too many. Today we will hear from a panel of witnesses who will describe the work that has been done to mitigate the risk of a nuclear accident related to the year 2000 computer problem. In December 1998, I and my colleagues, Congressman Dennis Kucinich, the former ranking member of the Subcommittee on Government Management, Information, and Technology, and Congressman Donald Manzullo wrote to the former chairman of the Nuclear Regulatory Commission expressing our concern over the Nuclear Regulatory Commission's plan to perform detailed audits on only 10 percent of the Nation's 103 nuclear facilities. Because of the potentially devastating consequences of a nuclear accident, we strongly recommended that the audits be performed on all nuclear facilities. Our recommendation was rejected. Today we want to be assured that the Nation's nuclear facilities are free of year 2000 risks. We want to provide an accurate portrayal of nuclear year 2000 readiness. I welcome our panel of expert witnesses and look forward to their testimony. [The prepared statement of Hon. Stephen Horn follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Horn. Mr. Turner has official business that he's working on right now, and when he comes back his statement during the question period will be automatically part of the record. [The prepared statement of Hon. Jim Turner follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Horn. Are there any statements that any of the Members would like to say at this time? [No response.] Mr. Horn. None. The vice chairman, Mrs. Biggert, the gentlewoman from Illinois. Mrs. Biggert. Thank you, Mr. Chairman. We have reached that critical point, with just under 70 days left before the new year, when systems work drills and contingency plans should be complete, but, as we are going to hear today, that might not be exactly true in the case of all the Nation's nuclear power plants, which is why this hearing on year 2000 nuclear power is so timely. We have discussed Y2K's impact on commerce, government services, transportation, and life at home, but even if we address potential Y2K problems in these areas, none of these systems will work without electricity. By providing 20 percent of this country's electricity without contributing any air pollution, our nuclear power plants are vital to the stability of our electricity supply and the environment. The issue of Y2K and nuclear power is particularly important to my home State of Illinois. There are about a dozen nuclear reactors located throughout the State, 10 of which serve the northern 20 percent of Illinois, including Chicago. Commonwealth Edison, the owner of the 10 reactors serving northern Illinois, came before the Government Reform Committee's subcommittee at a field hearing in July in the district that I represent and reported that all nuclear stations were Y2K ready in July. So none of these plants are on the NRC's short list and never were, but we must remain concerned about the nine systems and seven reactors that aren't currently in compliance, and we must also be concerned about other sources of electricity. American nuclear power plants don't operate in a vacuum. Commonwealth Edison admits that a failure at one of their surrounding utilities could have some impact on their systems. So I want to thank the panelists for coming here today and updating us on the final preparations for Y2K, and I thank you, Mr. Chairman, for holding this hearing. Mr. Horn. Thank you very much. Does any other Member have an opening statement? The gentleman from Pennsylvania, the acting ranking member. Mr. Kanjorski. Mr. Chairman, I would like to ask unanimous consent that the statement of Mr. Turner be entered in the record. Mr. Horn. Without objection, it will be placed in the record between my own opening statement and the vice chairman's opening statement. Well, no other statements, let me now swear in the witnesses. [Witnesses respond in the affirmative.] Mr. Horn. Note that all four witnesses have affirmed. The way we work is when we introduce you, your full statement is automatically in the hearing record. We'd like you to summarize it, not read it word for word, because we can read--but if you summarize the high points, that will give us more time for a dialog among the panel, as well as between the Members and the panel. So we will start with Mr. Willemssen, who is our regular presenter, and the first one doing it. The U.S. General Accounting Office does a wonderful job for this subcommittee and all committees in the House. Mr. Willemssen, it is good to see you. We have seen you all over the country this year, and we are glad to see you here in Washington. Please give your presentation. STATEMENT OF JOEL WILLEMSSEN, DIRECTOR, CIVIL AGENCIES INFORMATION SYSTEMS, U.S. GENERAL ACCOUNTING OFFICE Mr. Willemssen. Thank you, Mr. Chairman and members of the subcommittees. Thank you for inviting GAO to testify today. As requested, we will summarize our statement. Our Nation's nuclear power plants continue to make progress on their readiness for Y2K. Even with this progress, some risks remain. These risks include not knowing the current Y2K status of all 14 decommissioned plants with spent fuel, the lack of information on the consistency and extent of independent reviews of Y2K testing and emergency Y2K exercises, and the lack of requirements for day one planning, which is that series of events that should be planned for the end of December and the beginning of January. To address these risks, we have developed a set of suggested actions for NRC to consider. First, it is important that NRC know the status of all 14 decommissioned plants with spent fuel and report their status. Second, NRC should determine what independent verification and validation efforts have been completed at nuclear power plants and determine whether additional reviews are needed. Third, NRC should identify whether emergency contingency exercises performed by nuclear power plants have incorporated Y2K scenarios. And, finally, we think it is especially important that NRC ensure that all facilities have developed day one plans. We have recently issued guidance in this area, which OMB has encouraged Federal agencies to use. Let me next turn to Mr. Rhodes, GAO's Director for Computer and Information Technology Assessment, who will provide you with some detailed information on the risks of nuclear plants using a Powerpoint presentation. Mr. Rhodes came to GAO from the Lawrence Livermore National Laboratory, one of two U.S. nuclear design labs. Since joining GAO, he has been heavily involved in nuclear energy issues such as stockpile stewardship, nuclear material tracking, and non- proliferation. So I will turn it over to Mr. Rhodes and we will see if we can have our slide show. In addition, we have hard copies of the slides if the Members would like to follow along. Mr. Horn. We would like to have those, and the clerk will get them and pass it out to the Members. [The prepared statement of Mr. Willemssen and Mr. Rhodes follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] STATEMENT OF KEITH RHODES, DIRECTOR, OFFICE OF COMPUTER AND INFORMATION TECHNOLOGY ASSESSMENT, OFFICE OF MANAGEMENT AND BUDGET Mr. Rhodes. Mr. Horn, members of the subcommittee, thank you very much for inviting me here today. I would just briefly like to discuss a few slides that can help illustrate some of the issues we discussed in our testimony. The first slide shows the distribution of U.S. domestic nuclear power plants and their associated fabricationsites. The blue dots are the plants themselves, and the green squares are the fabrication sites. The difference is that a nuclear plant generates electricity, while the fabricating plant generates fuel used by the power plant. As of last Friday, there were only two plants, according to the Nuclear Energy Institute, that are not Y2K ready. One is Peach Bottom and the other is Farley. Peach Bottom is currently going through their final testing. Farley is in an outage now and they are doing their Y2K remediation and should be done by December. Mr. Horn. Where are those plants located? Mr. Rhodes. Peach Bottom is in Pennsylvania and Farley is in Alabama. If I can point it out on the large board, you see Peach Bottom at the top in Pennsylvania and Farley unit No. 2 is down in Alabama. The next slide shows a typical nuclear power plant. We are talking about the plant here, as opposed to the reactor, itself. This is actually a pressurized water reactor, but there are also boiling water reactors and other kinds of reactors-- light water, heavy water. The areas that have to be watched under any circumstances, not just Y2K, are as follows. The grid itself, which brings in offsite power. In nuclear terms, a failure here is called a ``LOOP,'' a loss of offsite power, and is very important because it is the main power source for the plant to keep their systems running. Backup diesel generators are important, since if a LOOP occurs the generators need to kick in to provide backup power to run the plant. There are typically two diesel generators, although a few plants have hydroelectric sources for backup. This gives a higher degree of assurance that if one generator fails the second one can take over. It is a redundancy in their diesel systems. There has been much discussion about the reliability of these emergency diesel generators. Some claims are that the generators do not even meet 70 percent reliability, let alone their design requirement of 97.5 percent; however, according to a study by the Idaho National Engineering Laboratory, the generators meet their 97.5 percent requirement, and the lower reliability ratings are due to anomalous conditions occurring during routine maintenance--that is, while you have taken the generator off-line, then you have a power need, and that is why you are getting these lower reliability percentages. Sometimes people will come in and say they are only 70 percent reliability. Routine maintenance--we have had discussions with both power plants as well as NRC and NEI. Routine maintenance is not going to occur on the roll-over date, so our assumption is that the 97.5 percent reliability will be met by the diesel generators. Next in the cycle of importance are the pumps, themselves. The pumps are a key system, since they make certain that the water is flowing throughout the plant to keep the reactor itself cool, as well as the support systems for electricity generation. You see there are pumps throughout the system. The reactor itself, of course, is a key system, and its security systems are key, since that is the site of the fission reaction that generates the heat. Circulating water that continuously transfers heat from the core to the steam generation system cools the reactor core. Finally, the spent fuel pools need to have a continuous source of water, since the spent fuel does not cool down immediately and continues to fission at some low level for a long time after it has been removed from the reactor, itself. Again, to reiterate, the next slide shows those plants that are not yet Y2K ready, and that is as of Friday. NEI reported that D.C. Cook one and two are now ready, and that Farley and Peach Bottom--Peach Bottom, as I stated, is currently going through its testing, and Farley is in an outage and being renovated. The next slide shows a simple risk assessment box, four quadrants that show the relation between probability of failure and impact of failure. As you can see, the upper right-hand quadrant is rated as high/high--high probability of failure and high impact of failure. If you have devices that are sitting up in the upper right- hand corner, the objective is to drive those devices down into the lower left-hand corner into a low probability of failure and low impact of failure. You reduce the probability of failure by doing remediation and replacement of the system, and you reduce the impact by doing contingency and continuity of operations planning, the objective being to move those systems into the low/low quadrant so that there is low impact and low probability of failure. Any risk assessment and risk management process, not just Y2K, is going to attempt to drive the risk from high to low, both in terms of probability and impact. The probability is reduced, as I said, through remediation and replacement, and the impact is reduced through contingency and continuity planning. Turning to international nuclear power, as you can see from this chart, if you have very good eyes, the United States leads the world in nuclear power plants, even though we do not get as high a percentage of our domestic power from nuclear as other countries such as France. The point here is that not just the United States has to be Y2K ready, the world has to be Y2K ready. Finally, this slide shows the distribution of nuclear power plants worldwide. As you can see, some plants are in rather remote locations, but most are not. As you are well aware, the former Soviet Union countries are the most worrisome to nuclear power experts, myself included. That concludes my, unfortunately, a little longer than brief introduction. I would appreciate any questions the committee has. Mr. Horn. Actually, we will wait until we complete the whole panel and then we will start asking questions. We now have a key witness from the Nuclear Commission, and that is Mr. Frank Miraglia, Deputy Executive Director for Reactor Programs, U.S. Nuclear Regulatory Commission. Mr. Miraglia. STATEMENT OF FRANK MIRAGLIA, DEPUTY EXECUTIVE DIRECTOR FOR REACTOR PROGRAMS, U.S. NUCLEAR REGULATORY COMMISSION Mr. Miraglia. Thank you, Chairman Horn and members of the committee. I'm pleased to be here today on behalf of the Nuclear Regulatory Commission to report the year 2000 readiness of the Nation's nuclear power plants. Based upon our review of the responses from the nuclear power industry concerning year 2000 readiness, our independent inspection efforts at all 103 operating plants, and our ongoing regulatory oversight activities, we have concluded that the year 2000 problem will not adversely affect the continued safe operation of the Nation's nuclear power plants. Starting in December 1996, we engaged our industry stakeholders on the development of guidance to deal with the year 2000 problem. The draft guidance was issued for comment. The GAO reviewed the draft guidance and provided comments. Their comments were particularly helpful, many of which were considered in the NRC's endorsement of the final guidance. These industry guidelines were endorsed and subsequent NRC audits and inspections of our licensees' programs enabled us to independently assess the effectiveness of year 2000 readiness at each nuclear power plant. Regarding our highest priority, the uninterrupted performance of plant safety systems, all 103 nuclear power plants report that their Y2K readiness efforts are complete. As of October 20th--there will be some difference in numbers, based upon the dates--99 of these plants also determined that all of their computer systems that support plant operations are Y2K ready and that contingency plans were in place. The remaining four plants have additional work on non-safety-related systems. As you heard Mr. Rhodes say, NEI has reported that the Cooks units are completed. We haven't formally received a letter, but we understand that is the status of the Cook stations. These plants are on target to complete the remaining modifications in advance of the year 2000 transition period. Based on our information as of November 1st, only one plant will have year 2000 readiness work remaining. That station is Farley Two located in Alabama. That plant entered a shut-down on October 15th. It will have the modifications installed and off-line testing completed by mid-November. In order to declare total readiness, it will be waiting startup, which is projected for mid-December. The work remaining involves non-plant support systems and an outage, as required. These outages are scheduled, the readiness has been planned, and the work has been successfully completed on a sister unit. During late 1998 and early 1999, the NRC conducted audits of plant-specific Y2K programs and contingency plans at our licensees' facilities. Based upon these audits, we developed an inspection protocol in which all 103 reactors with Y2K programs would be reviewed. Based on these oversight activities, we have not identified any issues that would preclude licensees from achieving year 2000 readiness. We will continue to monitor nuclear power plant readiness as year 2000 approaches. Concerns have been expressed about the inability or loss of electrical distribution grid during Y2K critical dates. According to the North American Electric Reliability Council, NERC's latest report, more than 99 percent of the Nation's electricity supply is classified as Y2K ready, or Y2K ready with limited exceptions. NERC states that the Y2K transition should have minimal impact on electrical systems operations in North America and that widespread, long-term loss of the grid as a result of Y2K- induced events is not likely. Notwithstanding, the NRC has focused its attention on assuring reliable emergency power would be available to nuclear power plants. The scope of our licensees' Y2K programs, including contingency planning, covers the onsite power and other emergency power systems, such as the electrical diesel generators. NRC audits and inspections have verified licensees' considerations of those systems, and no associated Y2K issues related to onsite or emergency power systems have been identified. Regulatory requirements provide high confidence in diesel generator operability, availability, and reliability. Additionally, diesel generator reliability in emergency situations has been high, as demonstrated during weather- related power upsets. We have also focused on spent fuel cooling systems to assure cooling of spent fuel stored at shut down facilities. The majority of spent fuel cooling systems are based on analog controls, and therefore not subject to Y2K problems. At the shut down facilities, only 14 have spent fuel remaining onsite. The heat generated by this spent fuel reduces with time, thus increasing the time available for operators to take actions to mitigate any off-normal circumstances. Existing procedures and operator training at these facilities allow the licensee to deal with normal and off- normal situations such as loss of offsite power, and the plant staff would have time to control these functions. Notwithstanding these preparations, nuclear power plant licensees have developed contingency plans for each plant to cope with year 2000 problems. Based upon our inspections and audits, we have determined that all power plants have also developed day one strategies as part of the development of their year 2000 contingency plan. The NRC has also developed an agency contingency plan to respond to unforeseen events related to year 2000 problems that could potentially affect one or more of our licensees. The plan has been coordinated and communicated with other Federal agencies, as well as provided to the public for comment. We conducted a full-scale exercise on October 15th involving 11 nuclear power plants and three fuel facilities to further validate the NRC's contingency plan. The exercise was a success, and we gained valuable insights to further improve our readiness for the potential year 2000 transition. The NRC remains committed to keeping our stakeholders and the general public informed. We have posted our generic communications, audits, and reports on our external-internal website for access by members of the public. In conclusion, we have been active in addressing the year 2000 problem, both internally and with our licensees. We will continue to work both nationally and internationally to promote awareness of Y2K problems. Our efforts have established a framework that appreciably ensures that the Y2K problem will not have an adverse impact on the ability of the nuclear power plants to safely operate or safely shut down during the year 2000 transition. Thank you. That completes my statement. Mr. Horn. Thank you very much. That is a very helpful statement. [The prepared statement of Mr. Miraglia follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Horn. Our last panelist is Ralph Beedle, the senior vice president and chief nuclear officer for the Nuclear Energy Institute. Tell us a little bit about the Nuclear Energy Institute. I assume it is the trade association. STATEMENT OF RALPH BEEDLE, SENIOR VICE PRESIDENT AND CHIEF NUCLEAR OFFICER, NUCLEAR ENERGY INSTITUTE Mr. Beedle. Chairman Horn. Thank you for the opportunity to testify today. The Nuclear Energy Institute is a member organization consisting of over 275 companies. Every nuclear operating utility is a member of the Institute. We establish policy and set practices for the nuclear industry as a whole. I applaud the efforts of the joint committees to monitor the status of year 2000 readiness across the spectrum of American industry. In the past 2 years, the Nuclear Energy Institute has developed and implemented a comprehensive year 2000 readiness program. As a result of the tremendous effort of the thousands of professionals in the industry at our 103 reactors, I am proud to report that the U.S. nuclear power plants have demonstrated that all safety systems are year 2000 ready. Since I last spoke to you in May 1998, over 200,000 systems and equipment have been reviewed for year 2000 readiness, and as of this morning, the 101, as previously mentioned, are Y2K ready. The two remaining facilities are in the process of making modifications during maintenance periods that are currently in progress. The industry's nuclear power plants are well prepared for year 2000 and beyond. The comprehensive year 2000 program developed by NEI in 1997 looks at all equipment that is important to plant operations, not just a few critical systems. The program is embodied in two documents, ``Nuclear Utility Year 2000 Readiness'' and ``Year 2000 Readiness Contingency Planning.'' We supplemented these with training sessions for our project managers, conducted workshops to exchange year 2000 related information, and established an on-line bulletin board to speed the sharing of the most effective Y2K solutions. Throughout the process, NEI has carefully monitored and reported the status of nuclear industry preparation to the Nuclear Regulatory Commission, as well as the North American Electric Reliability Council. Safety is the nuclear energy industry's top priority, and with this in mind the first systems to undergo evaluation were those related to plant safety. The industry has worked closely with the Nuclear Regulatory Commission in an open process that facilitates meaningful oversight of the industry's program. After careful assessment and evaluation, industry experts are confident that the nuclear utilities will continue to produce safe and reliable electricity without being affected by year 2000 computer problems. NEI and our member utilities have worked closely with the North American Electric Reliability Council. As large-scale electric generating units, nuclear power plants are an important element in the overall stability of our Nation's electric transmission grid. Data reporting, testing, and exercise participation are all part of the FERC program to ensure that generation, transmission, and distribution of electricity will continue to be reliable. Recognizing the apprehension that many people have concerning this issue, the nuclear industry has prepared a Y2K contingency plan. Additional personnel, backup communication systems, and response strategies have been developed for each reactor facility. This advanced preparation will reduce the likelihood that even a minor problem will cause a disruption in power generation. Be assured, however, that any problem that could compromise safety would result in placing the plant in a safe shutdown condition. Before I conclude, let me address the subcommittee's request for information regarding the nuclear industry and the international year 2000 readiness. The U.S. Department of State serves as the lead entity in providing assistance to other nations on Y2K issues in conjunction with the International Atomic Energy Agency. The readiness program developed by NEI that I mentioned earlier is used as a basis for the IAEA international efforts. I'm certain that the State Department and the IAEA would be glad to provide you with additional details on their activities. In conclusion, the nuclear utilities have reviewed, tested, and resolved equipment problems and are ready for year 2000. Consumers can approach the transition of year 2000 with confidence that the Nation's 103 nuclear plants will provide 20 percent of the electricity in a reliable and safe manner. Thank you, sir. Mr. Horn. Thank you very much. That is a helpful document you have submitted and I appreciate your summary. [The prepared statement of Mr. Beedle follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Horn. We have a number of members here from both the Science Technology Subcommittee, as well as Government Reform's Government Management, Information, and Technology Subcommittee. We will now go into questioning. Everybody on the panel, including myself, will be limited to 5 minutes until everybody else gets through. We have about 10 Members present, so it will take an hour for the questioning. But let me start out, based on the letter we wrote in December 1998 to Chairman Jackson when we asked her about the audit on the year 2000 readiness of all domestic nuclear power plants and facilities. We were told that, ``Well, we really don't have to worry that much. American reactors are different than French reactors,'' and so forth. And in February 1999, the NRC did respond finally to our letter and said 42 or 41 percent of the 103 nuclear power plant units were included in the NRC sample audits of 12 utilities. What I'd like to know is: how did you develop that sample? Was that based on different reactors within the universe, or what? Mr. Miraglia. Yes, sir. I will be happy to respond to that. In terms of your letter--we did respond in February--there were 12 licensees that were examined in terms of the audit, and they covered 42 units. The units were picked on a number of criteria--the age of the plant, multiple units, single unit, different regions of the country, boiling water reactors, pressurized water reactors. And the 12 utilities did represent 42 plants, which was a unique representative mix of the 103 facilities. In addition, we did six audits of the contingency plans at six licensees other than the 12, and that covered another 18 units. These were detailed audits where we used as the basis of the review the guidelines Mr. Beedle reviewed with you. Those guidelines were endorsed by the NRC as being appropriate guidelines to follow for Y2K remediation and assessment, as well as contingency planning. Based upon those reviews, sir, we did develop an inspection protocol and came up with an inspection protocol that was completed by our inspectors at each of the 103 facilities, based upon the insights of those audits. Through subsequent conversations and discussions, we did exactly what you originally had asked us in terms of where we stand today. Mr. Horn. Well, can you say that the 103 are Y2K compliant? Mr. Miraglia. In terms of the safety systems, they were reported as Y2K ready on July 1st, and we have confirmed that by independent inspections and followup inspections. As I have indicated in my testimony, right now, as officially reported by us, there are four that we consider to have some additional work in non-safety systems. Three of those are expected to be completed by the end of the month, and that one unit, Farley 2, would be Y2K ready by December. Mr. Horn. In terms of the use of computers in relation to the reactors, what do we know and what did the inspectors find out? Did they try a pilot where they advanced the date to January 1, 2000? And, if so, what happened? Mr. Miraglia. In terms of the inspection guidelines that were endorsed, there were a number of aspects of that plan in terms of how to assess the impact of potential computer problems and how to remediate and how to test. The testing could be roll-back, as you suggest, or roll-forward, as well as working with vendors to modify the programming within the systems. An important point that should be made is that there are not many digital control systems within the nuclear power plants' safety systems, so the scope of those kinds of activities is reduced. Mr. Horn. What do you know about the nuclear plants abroad? Is there a relationship between your commission in terms of loaning expertise on this? And what is your feeling as to what is happening there? Mr. Miraglia. We have worked through the International Atomic Energy Agency, as well as the Nuclear Energy Agency, which is part of OECD, the European economic community, and have provided what we have done in this country, in terms of the guidance. And, as Mr. Beedle has indicated, that guidance has been utilized by a number of foreign countries to review and remediate their facilities. As Mr. Rhodes has indicated, there have been concerns expressed relative to the Russian facilities. We don't have direct involvement and other than providing information and sharing what we have done here and what our regulatory processes are. Mr. Horn. My understanding on the Russian facilities is that one is very close to Alaska, in terms of at least the islands and reaching out to the Bering Strait. Is that a problem at all? Do we know anything from the Russians on that? Mr. Miraglia. I couldn't address that question. Mr. Horn. OK. Let me ask--because I have got about 40 seconds left--GAO, did you look at the sample? Did you have any concern about the sample they took and the way they did it? Mr. Willemssen. The concerns that we would have had, Mr. Chairman, were really parallel to the ones that you pointed out in your letter. Subsequent to the letter, as NRC has pointed out, there were additional evaluations done. As we mention in our testimony, a 452-question check list was administered to all plants. In addition, we are aware that many of the plants did have independent verification and validation efforts performed; however, we are not clear on the exact nature of those IV&V efforts. One of the suggestions that we have for NRC is to be clear and precise on what was done and how consistent it was across plants so that, if there is additional IV&V needed at plants, there is still a couple months to do that. Mr. Horn. My time is up, so I'm going to yield 5 minutes to Mr. Kanjorski, acting for the minority. Mr. Kanjorski. Thank you very much, Mr. Chairman. Just in regard to the Peach Bottom plant in Pennsylvania, by the end of November you anticipate they will be in compliance, or the end of October? Mr. Miraglia. The end of October, sir. Mr. Kanjorski. Is there any reason why they are running late compared to the other 100? Mr. Miraglia. In terms of some of the remediation that has to be done, it requires an outage. Nuclear power plant outages are traditionally spring and fall. They completed the outage, the spring outage, on one unit and made the remediations. They are just in their fall outage, and the remediation is underway and expected to be completed by the end of the month, sir. Mr. Kanjorski. The entities that have the spent fuel, are there any that are at total capacity? And, if you can tell me, what type of manual backup is there if the computer system fails to keep the spent fuel secure. Mr. Miraglia. As I indicated in my oral and in my written testimony, most of the systems at these facilities are analog and do not have much digital and computer controls. The 14 decommissioned facilities that one is talking about, the fuel has been in the pool for in excess of 2 years, and therefore the decay heat is significantly reduced. This would allow operators a significant amount of time, on the order of hours, to restore and to make up water and to replenish water, and that could be easily done manually. In addition, they do have emergency supplies that they can line up, as well. Mr. Kanjorski. It seems to me that, when you look at the number of plants in the world, the United States has about a third of the nuclear plants, and we could rest assured they are in pretty good shape. The other two-thirds, do you all have opinions as to what status they are? And is there a possibility that they could go to a critical point and, if so, cause a disaster such as we recently almost had in Japan, or something that you really have a reaction? Mr. Miraglia. That would be purely conjecture on my part, but my view would be that the concern, as Mr. Rhodes indicated, is directed at perhaps some of the facilities in the former Soviet Union, and that the concern there is perhaps not just directed at the plants as much as perhaps the reliability of the grids in those countries. Mr. Kanjorski. Backup systems for power? Mr. Miraglia. Maintaining power to the plant to assure safe operation, and I think there's little known. And I think, because of what is known in terms of real facts makes it difficult for one to make conjectures in that regard. Mr. Kanjorski. If there were failures in some of these other countries, particularly in the former Soviet Union, do we have a national policy or international policy of forming a response team to get in there before something would become critical, or are we just waiting under normal processes, if a disaster occurred, to then put together a response? Mr. Miraglia. I believe there is activity underway in terms of perhaps Department of Energy providing more assistance, but that is all I could say. I think the government is trying to provide assistance to these facilities. Mr. Kanjorski. But that is assistance now in helping them get to compliance. I'm talking about if something happens after January 1st and we say a week period of time or 2-week period of time. Do we have something that we can lend the best expertise and a response team very quickly to get into those areas? Mr. Miraglia. A very good example of that, sir, would be the events that did occur in Russia in 1986, and that the Federal Government does have a response plan and we would be prepared to interact, and that would involve a large number of agencies, of which NRC is just a part of what that response would be. Mr. Kanjorski. I notice on the list here plants, Korea. Is that South Korea, or North Korea, too? Mr. Miraglia. Most of the plants are in South Korea in terms of power plants. Mr. Kanjorski. But there are some power plants in North Korea? Mr. Miraglia. You are stretching my knowledge now. I believe there are some smaller reactors within North Korea. Mr. Kanjorski. The whole panel, if you can, more on the international problems, the other 66 percent, what do you think the degree of reliability is at this point? Is it that there are no problems out there that could be serious for other countries or for the world, as a whole, for something critical? Mr. Rhodes. In terms of the former Soviet Union, leveraging off of what the NRC has said, again, the concern--for example, let's take South Korea. Well, South Korea's reactors are CANDU reactors. They are Canadian light-water reactors, so the design is understood. When I was in Ottawa, Canada, in February at the International Nuclear Power Preparedness Conference, the Canadian Atomic Energy Control Board was there. They did meet with the South Koreans and they are helping them. We had the developers from Czechoslovakia, who built most of the Russian reactors, who were there. They have a few reactors themselves, and there was a good exchange. The concern that we had at that time, which stands today, is that the Russian nuclear power plant industry is still in what we would all describe as the ``awareness phase.'' When you are talking about a graphite-moderated light water reactor of the Chernobyl type--it is called an RBMK--the concern again is not so much with the reactor itself as it is with the instability of the grid, the instability of diesel backup, and the fact that you are talking about a country that has a struggling economy. There are always anecdotal stories about people selling the diesel fuel as currency. I mean, you are moving into a barter environment. That is the concern. It is a concern that Lawrence Gershwin of the intelligence community voiced several times now over the last year, in that it is not with the reactor itself so much as it is with the stability of the grid. The United States is providing actual technical support, but we can't solve every problem for all the reactors in the former Soviet Union because we don't have the resources to do that unless we draw resources away from solving our own problem. That is the concern that I and other people who are tracking international nuclear power have. It is no so much our domestic it is not ourselves or Canada or Great Britain or even France as much as it is the former Soviet Union. And it is not so much the reactor as it is the stability of the grid. Mr. Horn. The time is up. We will now start on Ph.D. row to my left here. Mr. Ehlers is a physicist. We will go to Mr. Bartlett. With two degrees, you are Dr. Dr. Bartlett, I guess. Go ahead, Roscoe. Mr. Bartlett. Thank you very much. Are the nuclear reactors isolated from the grid, so if the grid fails there is not a problem with the functioning of the reactors? Mr. Miraglia. In terms of the design of our reactors, sir, we are concerned about the grid in two ways. First is the impact of the grid on the plant, itself. Second is the loss of the plant being a large power supply and what effect that may have on the grid. The plant can be isolated from the grid and operate on emergency diesel in isolation from the grid, but in that condition the plant is in a shut-down mode and maintaining itself in a safe shut-down condition. Mr. Bartlett. I have a lot more confidence in the integrity of the nuclear power plants in Y2K than I do in the continuity of the grid. Are plants prepared, if the grid goes down, to immediately isolate themselves so that there is no fall-back problem? Mr. Miraglia. In terms of even prior to the grid--the concern about Y2K, the loss of offsite power is a design basis event that the plants are evaluated and can cope with in terms of its design, and so the answer to that question would be yes, sir. Mr. Bartlett. Let me ask a policy question. I suspect that our nuclear reactors are going to behave flawlessly in Y2K. I do not have that same degree of confidence for the grid and the other power plants. Will this give us an opportunity to help educate the American people as to the safety of the nuclear power generation so that we might be able to expand that contribution to our electricity production in the future? Mr. Miraglia. That would be conjecture on my part, sir, but, since you have asked for a personal view, I would give it. I think, as indicated here, 20 percent of our electrical supply is nuclear. The expectation is that the grids will remain whole and that the nuclear power plants would safely go through that transition. As to whether that would be renewed interest in nuclear power I think that would remain to be seen. Mr. Bartlett. I would like us to be prepared to exploit what I think is going to be a meaningful opportunity here. We have 2 percent of the known reserves of oil. We use 25 percent of the world's oil. That is a prescription for disaster and an obvious indication that we ought to be looking for alternative ways of producing our energy, and nuclear is certainly one of those. The big impediment to using more nuclear power has been one of education and the perception by the public that somehow this is not safe, although I think it has been the safest type of power generation that we have had. I hope that the Administration and others are looking for the opportunity of educating the American people so that they will be more comfortable with nuclear power. They are not now accepting of nuclear power. If we don't do something, the 20 percent electricity we are now producing by nuclear power will shrink to zero. All the while, we are using up even more of the small amount of oil that we have remaining. As I said, although we have only 2 percent of the known reserves, we use 25 percent of the world's energy. Certainly, of all the countries in the world, we ought to be looking more aggressively at nuclear power, and we are actually turning away from it. As far as I know, no new plants are going to be licensed. I just hope that we will exploit the opportunity I'm quite sure we are going to have in Y2K for educating the American people as to the safety, the reliability of nuclear power plants so that we can hopefully move forward on that front. I have no further questions, Mr. Chairman. Mr. Horn. Thank you very much. We will now ask Mr. Baird from Washington, 5 minutes on questioning. Mr. Baird. Thank you, Mr. Chairman. I have just two fairly brief questions. First of all, we focused a lot on power generation. What about the waste storage programs around the country? What reviews have been put in place for that? Mr. Miraglia. Most of the spent fuel, sir, is at the operating reactors, and it is either stored in spent fuel pools, and those systems were examined in the context of 103 operating reactors. As indicated, there are 14 facilities that are being decommissioned and no longer generating power, but they are maintaining the fuel in water pools. There are five facilities that have fuel either shipped offsite or in dry cask storage, which is a passive type system. Those systems and those facilities are being--maintaining cooling is the primary objective. The plant procedures are such that the operators are trained in taking appropriate response to those events. As I have indicated, most of the fuel in the pool is 2 years old or closer to 3 years old, and so the heat load is fairly low and there is significant time for the plants to deal with any contingency that might arise with respect to Y2K. As I indicated, most of the systems are analog and not Y2K prone, in many cases. Mr. Baird. In one of the testimonies it discussed a Y2K exercise, in which NRC conducted a table top exercise with Baltimore Gas and Electric. It sounds, from reading this, like it went pretty well and that people are well prepared. Was it your impression that people were well prepared because they knew they would be part of this exercise, or if we were to, say, randomly drop in tomorrow at some community that is near a nuclear reactor and say, ``What would happen? Would they be as well prepared?'' Mr. Miraglia. I think, in context, the regulatory structure that exists and has existed prior to the Y2K issue always had emergency preparedness as a key centerpiece in defense and depth concept; therefore, there are emergency plans. We work with FEMA, our sister Federal agency. FEMA coordinates the offsite response to State and locals are prepared to respond to events at the nuclear facilities. We work with the utilities to assure that their emergency response plans are coordinated with the State and local officials. So that infrastructure existed. The existing table top brought the local facilities and local counties in and around Calvert Cliffs together, along with the utility, as well as State, FEMA, and us, and walked through scenarios to say, ``If this happens, how are we going to augment communications? How are we going to communicate?'' That was the kind of exercise that was conducted in terms of the table top, which was July, and that went very well. There were lessons learned, in that communications need to be compatible so one needs to talk to one another and say, ``What are your plans,`` and that activity was ongoing. In addition, we did a drill on October 15th where we exercised our contingency plan and dealt with 11 nuclear power plants and three fuel facilities. Some of those facilities were exercising their contingency plans with the State and locals at that time, as well. Mr. Baird. From listening to that, though, I'm hearing about 12 plants where some sort of exercise has been done. To what extent has this been recreated across the broad spectrum? The nightmare scenario, of course, and not to be alarmist, of course, is an accident at a plant and simultaneously the grid goes down, communication is disrupted, transportation is disrupted, other problems. I mean, I'm not an alarmist with that, but it is worth saying. To what extent have other communities around nuclear plants within this country taken a very serious look at, if that scenario were to play out with the disruption of communication, power, transportation, et cetera, how would they cope with it? To what extent have they done that? Mr. Miraglia. In terms of the guidelines, the guidelines addresses those types of issues. Many of the utilities participated in the September 9, 1999, drill that was conducted with NERC in terms of exercising their plans, as well. So there were those kinds of exercises, as well, across the country, not only at the nuclear power plants, but most generating stations. In terms of our own contingency plans, we are going to have a resident or inspector stationed at the facility during the rollover in the transition. They will be familiar with the contingency plans at the licensees' facilities. They will be equipped. We have provided to each site, each inspector that is going to be at the facility, with satellite communications, so there is guaranteed communications between the facilities and our operations offices here in headquarters, as well as our regions. Mr. Baird. One last question. My understanding is that the French have distributed iodine to their residents as just a precautionary note, not in relation to Y2K. They did this some time back. Is there any thought about doing that? Mr. Miraglia. In terms of the use of potassium iodine for occupational workers, that is a part of most emergency response plans. The issue is a more widespread distribution of KI, and that policy matter is under review. Mr. Baird. It seems like it might be a fairly prudent prophylactic just in case, you know. To have it around anyway might be useful, but certainly in the off chance there would be a Y2K problem. Thank you, Mr. Chairman. Mr. Horn. Thank you very much. We now yield 5 minutes to the vice chairman of the Subcommittee on Government Management, Information, and Technology, the gentlewoman from Illinois, Mrs. Biggert. Mrs. Biggert. Thank you, Mr. Chairman. Mr. Miraglia, in the international activities, you mentioned the Y2K early warning system, and I understand that that will allow the U.S. nuclear power operators to monitor the status of the foreign nuclear power plants similar to their own, and that would give us about 12 to 15 hours that this will be ahead so that our plants will know if something is happening. But is there a similar system that would allow the U.S. nuclear plants, kind of looking across the United States, where there will be some in the west coast that will be following on later? Is there a plan in each of the plants in the different time zones to be able to know immediately if there is a problem? Mr. Miraglia. Yes. The ``YEWS'' system, the Y2K early warning system, is an Internet-based system. We have worked through NEA in trying to get foreign governments to subscribe to that system. At this time, there are about 25 countries that will be providing information. That information will be provided on a read-only basis to all of the nuclear power plants. We have indicated how they could subscribe and have access. That information would also be shared with the Information Coordinating Committee of the President's Y2K Council to share that information throughout the community. It is approximately a 17-hour head start if you go all the way to Australia and New Zealand and come across. Mrs. Biggert. Then each one will have a contingency plan that will be based on--let's say, the communication, as Mr. Baird mentioned, would shut down. Is there a contingency plan that they would still be able to know? Mr. Miraglia. In terms of the ``YEWS'' system, that is a source of information to say what is happening elsewhere and can we glean some knowledge so we would be better prepared. The contingency plans for the individual facilities are in place, and it would perhaps better prepare them to manifest for some potential impact. It should be within the context of the existing plans already, ma'am. Mrs. Biggert. And you said that all of the 103 domestic plants are Y2K compliant. How was the verification of that compliance done? Mr. Miraglia. We said Y2K ready. There is a slight difference between compliance and ready. In terms of the 103, we looked at the guidance documents that we endorsed, and in the context of those guidance documents and the audits that we did, we did focus inspections on the elements of that guidance. GAO has indicated that it was a 450 question checklist, but in order to complete those lists you went and looked at individual, specific attributes of the guidance. For example, five to six software systems and modifications were examined. Were they independently verified? Was there a peer review or was their quality assurance done on those aspects? And so those questions led to specific focused activities by the inspectors to look at the various elements and were they complying with the guidance that we developed and endorsed. That would give us the confidence to say that appropriate assessments had been made, appropriate remediation had been done, appropriate testing and contingency planning had been completed. Mrs. Biggert. Then was there a certification that they were compliant? Mr. Miraglia. In terms of our inspection activities, we would indicate in our inspection reports that were docketed for each of the facilities that we have completed those inspections and have concluded that they implemented the guidance and the guidance documents that would give us confidence in saying there is reasonable assurance of Y2K readiness of those facilities. Mrs. Biggert. So are there remaining risks to our domestic nuclear facilities? Mr. Miraglia. In terms of absolute guarantees, they are very difficult. There are many computer systems, many embedded chips. The systems that we used and the guidance that we provided we believe provided a framework to appropriately assess, remediate, test, and have contingency planning, and we believe that we have a basis for reasonable assurance. Mrs. Biggert. Thank you. Thank you, Mr. Chairman. Mr. Horn. Thank you very much. We now move to--well, I see there is a pass down there, so we will begin the round again. Mr. Beedle, when I was at the beginning of the first question, I think you had something you wanted to add to it. This is your chance. Mr. Beedle. You had asked a question, Mr. Chairman, concerning audits of the plants, and I wanted to point out that each one of these utilities has had at least three audits of one variety or another, consisting of self audits by their own QA organizations, which are rather extensive, audits of one utility against another one, and then third party audits, where we bring in contractors. That gives us a great deal of confidence that the effort on the part of the utilities has been detailed and thorough in their examination of the Y2K issues. Mr. Horn. When the Federal Government and the executive branch looked at the September 9, 1999, bit, there didn't seem to be much of a problem. Was there any problem in any of the nuclear reactors on that? Mr. Miraglia. Nothing was reported that was related to any Y2K event at any nuclear facilities, sir. Mr. Horn. There are about 300 foreign nuclear power facilities, and often the so-called ``facilities'' and their safety standards don't meet the U.S. standard. Getting back to where are we in some of the international bit, what is your feeling on that? Have you been called upon for technical expertise by the International Atomic Energy Commission? Mr. Miraglia. Yes. We have provided, in terms of participating in workshops, we have participated in workshops on the guidance that was developed here. That was shared. As NEI has indicated in their testimony here today, sir, that guidance has been used by a number of foreign countries to examine the Y2K issues. We have participated in discussing Y2K contingency planning. I'm scheduled to participate in an IAEA workshop next week in Vienna to discuss what we have done relative to the contingency planning here in the United States, so there has been that type of activity. In addition, we have worked through the Nuclear Energy Agency in developing the Y2K early warning system, and that has been another vehicle for us to indicate interest in activities that we have been engaged in. Mr. Horn. Mr. Rhodes, we have read articles, we have heard people say that nuclear weapons have no Y2K problem; that is, that the weapons, themselves, have no dates or clocks, and therefore there really wouldn't, in relation to time. Is that really true? Mr. Rhodes. Yes, it is. We performed an audit of the nuclear weapons stockpile. I led the team. GAO went out from one of our sister divisions that handles the stockpile stewardship issues, and we did a complete design review of the nuclear weapons, themselves, what's called the ``physics package,'' the actual weapon, and in the process walked through every electronic component, every design. I even did code walk- throughs. In terms of time and a nuclear weapon, you are talking about a stop watch. Even those weapons that have chips in them, the chips don't have time. They get time from an external oscillating crystal, and that is just giving them a time interval. It is just a vibration, and they get an electrical impulse out of that vibration. So all they are doing is counting up time. And, while they are counting up time, certain events are taking place. So, I give you my professional opinion, and we have issued a letter stating that we have found that the U.S. domestic-- well, the entire nuclear stockpile for the United States is not a Y2K issue. They operate on what is called ``fiducial time.'' Mr. Horn. Well, without objection, we will put the letter and any summary you have of the review in the record at this point. Mr. Rhodes. I will make certain it gets to you. Mr. Horn. I assume it isn't classified? Mr. Rhodes. No. There were many classified discussions, but it is an unclassified, public document. Mr. Horn. Last month, Congress set up the National Nuclear Security Administration, which is being formed to run the Nation's nuclear weapons laboratories. In your opinion, GAO's, how should this organization work with the Department of Energy to manage our nuclear weapons, assets, and security measures? Has GAO done any work in that area? Mr. Rhodes. We haven't done any formal work on it, but we have worked on discussions about security at the Department of Energy, and one of the points, key points, I would want to make about the oversight that is being brought to the Department of Energy is--and being someone who has come out of the weapons complex, it is very hard for the complex itself to assess its own risk, and what it considers to be valuable may be different than what the Department of Energy considers valuable may be different than what nationally is of value. If the external structure that is being applied to the Department of Energy can assess the value of the assets regarding the nuclear weapons, that would be of great value. That would be of great importance to the agency. And that would be one of the key--I think one of the key tasks at hand is to make certain that everyone understands the export value of super computer equipment, the domestic development of certain materials, et cetera, and how they should be handled and safeguarded. Mr. Horn. Well, continuing the second round, I will yield to Mr. Kanjorski, the ranking member. Mr. Kanjorski. Thank you, Mr. Chairman. Mr. Horn. The gentleman from Pennsylvania. Mr. Kanjorski. Since all four of you gentlemen are experts, and since obviously the American people may be seeing this testimony, I would sort of like each one of you to render your expert opinion based on reasonable certainty of your various disciplines as to what your professional opinion is as to the safety of the nuclear industry--and stockpile system is included, just so that you get a shotgun starting off, Mr. Willemssen. Mr. Willemssen. Well, as mentioned earlier by the NRC, there is no way we can give an absolute guarantee, but I think, through the efforts of NRC and the licensees, they have significantly reduced the remaining risk that is there. We have some additional steps that we think the NRC can take to further reduce that risk to even a more microscopic level along the lines of what we have talked about today, for example, additional information on independent verification and validation. We'd also like to see some additional evidence of detailed day one planning at each of the nuclear plants--that is, the series of steps that they plan to take at the end of December and early January in the unlikely event that there are problems. Mr. Rhodes. Let me expand on one point that Mr. Willemssen touched on. If you take an existing nuclear reactor and you look at a pump and you are basing your risk assessment and the emergency procedures based on the mean time between failure and the mean time to repair of an individual pump, you are taking a very large sample of equipment and you are trying to figure this probabilistic curve, and you say this individual pump failing has a probability of some value, some very small point. That is a probability based on standard manufacturing requirements. The point that I would make in amplifying Mr. Willemssen's point about day one planning is that you go to any nuclear power plant and there are literally rooms filled with operating procedures. The people are well trained. You cannot become a senior reactor operator without tremendous training, tremendous background, recertification. However, if that operator is operating according to normal emergency procedures where the probability of something going wrong may change because of an instability in communications or a perceived instability in the grid, then the point that Mr. Willemssen is making about that detailed day one planning, it is day one planning in light of the probability of a Y2K failure. It is not day one planning in light of the mean time between failure of a normal pump or the mean time between failure of a diesel generator or the mean time between failure of the grid. Now you have a very focused event, you have a very focused bit of data that you are supposed to capture, and that is the basis for our recommendation about formal day one planning. But I do concur that there is an extraordinarily low risk associated with nuclear power failure right now. Mr. Miraglia. In terms of the completeness of what we have done, if you look at the existing regulatory structure and what we have done to address the Y2K problem--and by the ``we,'' I mean the efforts of the industry and the agency, itself--I think we have reasonable assurance of continued safe operation of the facilities through the transition. With respect to the points and suggestions made by GAO, I think, in terms of the independent verification and validation efforts, I believe, if one looks at the guidelines, the audits that we have completed, and the inspections, I think we have, in looking at that entire framework, addressed some of those suggestions. With respect to the contingency plan, as Mr. Rhodes picked out, the uniqueness about the Y2K issue is that it is an event whose date is set. We know it is going to happen. In terms of the contingency planning guidance that we have provided and endorsed via the industry guidelines, it does address the topics and the issues that are outlined in GAO's letter of October 13th to the Federal agencies with respect to staffing, with respect to consumables, with respect to having additional contractor help, and security and those kinds of aspects are built into the guidelines for the contingency planning. I think, in terms of what we have in place and what has been developed, it addresses those issues such that it complements and supplements the normal processes and procedures. As Mr. Rhodes has said, the remediation and assessment addresses our attempt to try to keep the frequencies of failure to what is normally perceived by addressing the Y2K issue, and also designating specific contingency planning to assure that there is additional help and support during the transition. So, with respect to the suggestions, we believe that we have encompassed most of those. In your question, sir, you also asked for an opinion relative to the weapons stockpile, and I just want to say that I am not expert in that area and I would not offer an opinion. Mr. Beedle. With regard to the operation of these plants, we daily train, daily operate and maintain these plants. Yes, equipment fails on occasion. The operators are prepared to deal with that. We don't see that the Y2K is going the present any different situation for the operator than they would on a normal operating day, but we recognize the vulnerability of the Y2K, and, as a result of that, we have tested, as I indicated, some 200,000 pieces of equipment and systems in these plants. We have had to remediate about 10,000 throughout the industry. So we are talking about roughly 100 pieces of equipment or systems in each one of these plants that has been remediated, and they range from things of valve controllers, where we have embedded systems, to data collection and monitoring systems on these plants. There are relatively few systems in these plants that are actually controlled by computers. They are all controlled by individuals, human beings that are at the control switches. For the most part, these systems monitor and provide indication of plant performance, rather than actual control of the equipment. We have tested and verified that these systems will be ready for Y2K. We don't see that the vulnerability and risk to the plant is significantly different than the normal routine operational capabilities that we have with these plants today. I, like Mr. Miraglia, really don't have any opinion with regard to the weapons programs. Mr. Kanjorski. Thank you, Mr. Chairman. Mr. Horn. Thank you very much. I now yield to the chairman of the House Science Technology Subcommittee of House Science, the gentlewoman from Maryland, who is co-chairman of the select task force of her committee and my committee. Mrs. Morella. Thank you very much, Mr. Chairman. Mr. Horn. You take as much time as you would like. Mrs. Morella. Thank you. I apologize to this expert panel for not being here earlier, but I was involved with a great technology and education event in Montgomery County, MD, which is where NRC is located, Mr. Miraglia, as you know, in that beautiful White Flint Building. I do appreciate the testimony that has been given. I also appreciate the fact that I understand, Mr. Miraglia, that you commented on the fact that, of 103 operating nuclear plants, all but seven, I think, are Y2K compatible. Mr. Miraglia. That was updated during the testimony. There are four remaining. Mrs. Morella. Only four remaining? Mr. Miraglia. Yes, ma'am. Mrs. Morella. Maybe by the end of our hearing it will be down to one. But I do appreciate the fact that this has been done. I'm certainly very laudatory about those efforts. I guess the line of questioning that I would have would deal with how does your contingency plan at NRC differ from other contingency plans you might have. How does it differ from your usual emergency situation? I mean, do you have more safety people? How do you link up with coordinating with command control? Tell me what the difference is. Am I explaining that clearly enough? Mr. Miraglia. I believe I understand your question, Madam Chairman. Mrs. Morella. What new elements do you need and do you have? Mr. Miraglia. As I indicated earlier, there is an existing regulatory infrastructure for emergency response for off-normal circumstances. Mrs. Morella. Right. Mr. Miraglia. As a result of Y2K, we have developed guidelines for the industry to develop additional contingency planning. That would supplement those kinds of activities. In addition, our agency has augmented our own contingency plans and developed a Y2K contingency plan and provided that for comment, and we have coordinated with our other Federal agencies to indicate how we are going to operate during the transition period. We will have inspectors at each of the 103 reactors during the transition. We are developing procedures and processes for them to look for, things to look for. We have equipped each of those inspectors with satellite communications to maintain communications with our response center, which is located in White Flint. In addition, we have response centers at all four regional offices. We will have additional staff at our response center in Washington. We would have a staff of 40 folks during the transition. We will have a smaller team manning the response center, about six on New Year's Eve, to start looking at the reports from across the international community and to monitor the transition within the facilities. Each of our regional offices will have a team--regional administrators, senior managers, as well as a support team in each of our regional offices. We have also planned, in the unlikely event if we lose communications with the headquarters response center, that that could be turned over to our region four office, which is in Arlington, TX. It is in a different time zone, it is on a different grid. And we have exercised that contingency plan this past October and it was a very successful drill, notwithstanding we have learned some things to improve our ability during the transition. So we are going to have additional staff and folks at the facilities, as well as our response centers. Mrs. Morella. Is it important to let the community around these 103 operating nuclear plants know of the fact that you are prepared, and just to kind of assuage any concerns they may have? In other words, do you have any kind of a public relations outreach plan? Mr. Miraglia. In terms of the agency itself, through the Y2K President's Council we have participated, there have been the community outreach issues. Our sister agency, FEMA, has had regional meetings in and around certain of the nuclear power plants that the NRC has participated in. As discussed earlier here today, Madam Chairwoman, we did a table top exercise with the Baltimore Gas and Electric utility with their local representatives and implementers of the emergency plan, as well as the State. We have encouraged the industry, through NEI, to inform the local community in what its state of readiness is, not only at the nuclear power plant but to also assure themselves that the telecommunications and electrical supply and the reliability of that in the vicinity is known to them as well as to the local community. Mrs. Morella. And, finally--because my time is expiring-- what plans do you have for alternative energy if there are difficulties, breakdowns with the nuclear power? Isn't it 20 percent of our energy emanates--electrical energy emanates from nuclear power? Mr. Miraglia. In terms of the issue of reliability and the independent nature of our regulatory, statutory framework, our goal is to maintain the plants in a safe condition. Notwithstanding that, the Y2K issue does present a unique challenge to us. It is also important to maintain the facilities such that it doesn't adversely impact the grid. The plants are designed to tolerate a loss of offsite power. There are emergency diesels onsite. Those are under normal maintenance and surveillance programs, they are tested. As part of the contingency planning, there will be no surveillance tests during the transition period. Fuel tanks would be topped off and things of that nature would occur. So, in terms of maintaining a power supply available at the facility to maintain itself in safe shutdown, it will be done. Without the grid, the plant cannot generate power to the grid, so the objective is to keep the plants in safe shutdown. Mrs. Morella. Mr. Chairman, would you indulge me just one final question for the group? Mr. Horn. Certainly. You may have all the time you wish. Mrs. Morella. Thank you. Let me ask our GAO people, Mr. Willemssen and Mr. Rhodes, do you feel pretty good that they are following your suggested actions? Would you have any final comments to make? I mean, should we feel comfortable that everything is proceeding as it should with the countdown of so few days? Mr. Rhodes. The point that I would make, as I mentioned earlier about the--you design emergency procedures in a nuclear power plant based on probability, and there are some very, very fine probabilistic analysts that work at all of the nuclear power plants. But the probability today of the grid going down or the probability today of communications failing is different than when we hit the roll-over. Our concern and our suggestion is based on, one, the independent validation and verification that, as Mr. Miraglia has pointed out, there has been either a peer review, a quality assurance analysis, or an independent validation and verification done at all the plants. The point we would make is that NRC should take steps to make certain that a peer review, a quality assurance, and an IV&V are all equivalent. Second point is that that gives you the basis for understanding what the probability of failure is going to be. If the probability of failure is actually going to be unique at that time, you need to extract from these huge, huge volumes of operating procedures and emergency procedures the exact set of steps that you think you are going to probably need to take for day one. Now, that would affect, as you pointed out, staffing, consumables, et cetera. That would be the single point that we would make is that, until we know that the peer review, the quality assurance, and the independent validation and verification are equivalent and complete, and that, as a result of those analyses, someone didn't decide that they needed to have independent testing of a device, or something like that, then saying that this room full of emergency procedures is going to cover all contingencies is probably true, but making certain that you are ready for the most probable failures is where our suggestion comes in. Mrs. Morella. Did you agree, Mr. Willemssen? Mr. Willemssen. Yes. I totally concur with Mr. Rhodes' comments. Mrs. Morella. And, Mr. Miraglia, you do too? Mr. Miraglia. In terms of what I indicated, Madam Chairwoman, previously, is that in the content and scope and the concepts being offered, we agree. And I think our view is the steps and the framework that we have in place has addressed the issues raised by GAO. Notwithstanding that, we appreciate the views that are expressed and we will look at those suggestions to determine if additional things need to be considered. I think, in terms of the IV&V and the day one planning, when one looks at where we are and what we have done, I think we have essentially complied with the suggestions. I think, in terms of what GAO may be indicating during their review, they were perhaps able to ascertain exactly what we had completed. Mrs. Morella. Would you like to add anything, Mr. Beedle? Mr. Beedle. Yes, I would, Chairwoman. In developing this contingency plan that we provided to the utilities for implementation at each of the facilities, we have consideration for increased staffing, increased allocation of consumables in the event that you had some transportation problems. We wanted to make sure that you had adequate supplies and stocks. We think that we have addressed each of the issues that the GAO has pointed out, and, in fact, we have had the GAO review this document and provided valuable input in the construction of this plan. So everything that Mr. Rhodes is talking about is certainly valid, and, as Mr. Miraglia indicates, the NRC and I would add that the utilities, the licensees, are prepared to deal with those. A failure at the plant is a failure that results in action by people, and we have people trained and prepared to deal with these issues. Mrs. Morella. Thank you. And thank you, Mr. Chairman. Thank you to the panelists. Mr. Horn. Without objection, that document will be put in the record at this point. [The information referred to follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Horn. Also in the record will be the letter of February 25, 1999, to Chairman Jackson, and the response that was the response from there and our letter from December 17, 1998 earlier when it was mentioned in the record. Without objection, it will be there. [The information referred to follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Horn. I now yield to the ex-ranking member, Mrs. Maloney, if she has any questions. Mrs. Maloney. No questions, Mr. Chairman. Mr. Horn. OK. Do we have any from the vice chairman of the Government Management, Information, and Technology Subcommittee? [No response.] Mr. Horn. How about Dr. Bartlett. Mr. Bartlett. Thank you very much. Since most embedded chips will not know what time zone they are in, if they were to fail, when should we expect them to fail? Mr. Miraglia. In terms of the guidance, sir, we recognized that some of them may be on Greenwich Mean Time, so, in terms of the contingency planning, it is to look for failures across that spectrum. And, in terms of the assessment and the remediation, that was recognized, as well. It depends on the embedded chip and the functions that it performs. Mr. Bartlett. Greenwich Mean Time midnight would be when here? Mr. Rhodes. 7 p.m. Eastern time. Mr. Bartlett. 7 p.m. So if embedded chips are going to cause problems, we could expect that to perhaps start happening about 7 p.m.? Mr. Miraglia. And, as I indicated, we are manning our response centers, sir, at 6 p.m. Mr. Bartlett. You are an hour ahead of the curve? Mr. Miraglia. Hopefully, sir. Mr. Bartlett. Hopefully. Let me ask, are there, to your knowledge, any countries with nuclear power plants who have not been cooperating so that we do not know the status of their readiness? Mr. Miraglia. In terms of what I understand the primary assessor of the international Y2K readiness is the International Atomic Energy Agency, and they have been conducting assessments at the various countries. I am not aware of any such issues, but that is the extent of my knowledge. Mr. Bartlett. As far as the panel knows, all countries with nuclear power generating facilities have been inspected and are cooperating? Mr. Rhodes. I cannot say that they have been inspected. I can say they are providing information. The information, however, is self-reported and some of the official positions that are given, as we were discussing earlier about the former Soviet Union, are not very encouraging. Mr. Miraglia. I would offer the same answer, sir. I know the IAEA has gone to a number of the countries to make assessments and suggestions and the like, and the President's Y2K Council has been very active through the U.N. and encouraged information sharing and providing information flow and that kind of thing, but as to whether each plant has been inspected or not, I can't answer that question, either. Mr. Bartlett. I thank you. Thank you, Mr. Chairman. Mr. Horn. On that question, a few weeks ago we had a hearing here that related to the International Civil Aviation Organization that is a similar organization to the nuclear one in Europe, and there were about 35 countries that hadn't released the information. Well, our hearing got them to release them, so that was Friday, and Monday morning we had them. But the question would be to the Nuclear Commission, the U.S. version, which you represent: do you have access to the documents they would have filed with the international agency? And I think some of you were dubious if they have filed. Granted, it is self-reported, but so are what the executive branch here that we look at every quarter. That is all self- reported, and the only time we will know if those data were proper and reliable will be on January 1, 2000, wherever the time zone is. Mr. Miraglia. In terms of our agency and access, as I said, we have been cooperating and we do get reports via the IAEA. We are an independent regulatory agency, and perhaps the Department of Energy would have even more direct access, but we do get reports on the assessments being done by IAEA and have a general knowledge and awareness of the kinds of discussions and findings that they have. Mr. Horn. One of our worries is, with the power needs, we look at Japan. We are worried about that. We look at Italy. We are worried about that. We know there are some central European and eastern European countries that haven't really taken the energy and the focus that you have had in this country. That is what worries us. Is that a correct worry? Mr. Miraglia. I think your representation reflects the degree of knowledge that we have, as well, sir, as the concerns overseas. Mr. Horn. Well, let me ask you gentlemen if there are any questions you would make or any points you would make that we didn't get out of you in the question period. Mr. Beedle. Mr. Beedle. I'd like to make a comment concerning Mr. Bartlett's question, ``Does this offer an opportunity to underscore the value of nuclear in this Nation's energy mix?'' This Y2K situation is rather interesting. About 2 years ago the focus was on, ``Let's shut all these plants down because we are not sure they are going to be safe.'' Now the emphasis is, ``Keep them running, because we need the energy.'' So I would say to Mr. Bartlett we do have an opportunity to underscore the value that these nuclear plants provide to this Nation of ours. They do present 20 percent of the electric generation, it is clean, it is reliable, and I think we are well prepared to deal with Y2K. Mr. Horn. OK. It looks like there are no more questions. Mr. Miraglia. Might I comment on the last comment, sir, in terms of the posture of the NRC with respect to that? The NRC was created back in 1975 from the perspective of being an independent regulator, and, as such, we are not a promoter of the use of nuclear energy, so to take an active role in the promotion, sir, that is not a particular statutory mandate we have. That rests more with the executive branch and the Department of Energy. Notwithstanding that, our job is to assure that if nuclear power is used in this country, it is used safely, and that is our goal and our mission, and that we should also not be an impediment. The former chairman and present commissioners have indicated that we should have the right kind of regulation for each of the activities that we regulate. Our posture and goal is to make our regulatory process an efficient one, and, in terms of public outreach, we have an obligation in establishing public confidence in that we are doing our job of protecting and providing reasonable assurance for the public health and safety, and so in that sense we have that type of obligation, and we recognize it, sir. Mr. Horn. Well, on that point, the two reactors you mentioned at the beginning of your testimony I take it will conform with your safety standards on this subject. Mr. Miraglia. In terms of the two remaining ones? Mr. Horn. Right. Mr. Miraglia. Yes, sir. We will followup. Mr. Horn. In other words, you are telling us you don't have to worry about 103, they are all going to be OK. Mr. Miraglia. That is a reasonable assurance of that expectation, sir. Mr. Horn. OK. Good. Mrs. Morella. Thank you. Mr. Chairman, I just wanted to ask about, speaking of international, my understanding is that there is going to be a command center right in Washington, DC, that is going to be monitoring what happens in New Zealand. Are you all going to be connected to that? Maybe GAO would know the total structure of it. Mr. Willemssen. I can comment on the Information Coordination Center from a more broad perspective. FEMA will be a key part of the Information Coordination Center that, and through its regional offices will be gathering information on what is happening in States and localities, and that information will flow up to the ICC. In addition, each of the major Federal agencies will have their own command/coordination center and report into the ICC. I anticipate that NRC will have a similar mechanism. We have briefly looked at the NRC's day one plan and note that they have begun efforts to do that internally, and I have heard in the testimony today additional planned efforts from an oversight and an external perspective. I look forward to the detail in their plans on how exactly that will be carried out. Mr. Miraglia. If I may add to that, Madam Chairwoman, in terms of our contingency plan, it does include an element of participation in the coordinating center. In part of the contingency plan that we exercised on October 15th, we simulated our ICC cell. I, personally, will be at the ICC during the turn-over, with some additional staff, having communications to our central response center. As Mr. Willemssen has indicated, it is to be a central flow of information. In addition, the Y2K early warning system data is being provided to the ICC, as well, so we will have an involvement. And, as Mr. Willemssen has said, the existing Federal response plan, overall response plan, is FEMA, and all of that is coordinated with many, many sister Federal agencies. Mrs. Morella. Thank you. Thank you, Mr. Chairman. Mr. Horn. Well, thank all of you, because I think this has reassured a lot of us. We had been very worried when you hadn't been looking at all of the reactors, and now you have taken that view, and I'm very impressed with the testimony we have received today and I thank all four of you for giving us that information. That is most helpful. Let me thank the majority and minority staff that prepared this hearing. J. Russell George is back there in the corner, staff director and chief counsel; to my immediate left, your right, Matt Ryan, senior policy director on Government Management, Information, and Technology, prepared the hearing; Bonnie Heald, our communications director and professional staff member against the wall there; Chip Ahlswede, our clerk; and P.J. Caceres, a faithful intern; and Deborah Oppenheim, the other faithful intern. And from the Technology Subcommittee of the House Committee on Science, Jeff Grove, staff director; and Ben Wu, professional staff member; Joe Sullivan, staff assistant. And from the minority staff, Trey Henderson, minority counsel, and Jean Gosa, staff assistant. And from the Technology Subcommittee, Michael Quear, professional staff member; and Mary Ralston, staff assistant. And our court reporter is Ruth Griffin. So thank you all, and with that we are adjourned. [Whereupon, at 1:59 p.m., the subcommittees were adjourned.] -