Attached is the Office of the Inspector General’s (OIG) audit report titled, Audit of NRC’s Physical Security Inspection Program for Category I Fuel Cycle Facilities (OIG-10-A-01)
- Edited by Stephen Heiser -
The report presents the results of the subject audit. Agency comments provided during and subsequent to an August 26, 2009, exit conference have been incorporated, as appropriate, into this report.
EXECUTIVE SUMMARY BACKGROUND The Nuclear Regulatory Commission (NRC) oversees security programs at facilities that manufacture fuel for nuclear reactors. These fuel cycle facilities use “special nuclear materials” in the manufacturing process. NRC classifies special nuclear materials and the facilities that possess them into three categories based upon the materials’ potential for use in nuclear weapons, or “strategic significance.”
The three categories are:
Category I: High strategic significance.
Category II: Moderate strategic significance.
Category III: Low strategic significance.
Two fuel cycle facilities in the United States process Category I materials into nuclear fuel for the Federal Government. The U.S. Navy, in particular, uses this fuel in nuclear powered ships and submarines. There are no Category II fuel cycle facilities operating in the United States as of June 2009, and Category III facilities are subject to a different NRC physical security inspection regime than Category I facilities because these materials present less risk to public safety and security.
The main objective of NRC’s oversight program for Category I fuel cycle facilities is to ensure that these facilities operate safely and securely in accordance with NRC requirements. Since the terrorist attacks of September 11, 2001, NRC has issued licensees new requirements and guidance to enhance security at Category I fuel cycle facilities against sabotage and theft of nuclear materials.
PURPOSE The objective of this audit was to assess the effectiveness of the NRC’s physical security inspection program over the protection and control of special nuclear material at Category I fuel cycle facilities. Audit of NRC’s Physical Security Inspection Program for Category I Fuel Cycle Facilities ii
RESULTS IN BRIEF The Office of Nuclear Security and Incident Response fulfills its responsibility to conduct physical security inspections at Category I fuel cycle facilities. However, the inspection program faces the following two challenges: • Need to provide physical security training for supervisors without previous security experience to enhance management oversight of inspections. • Inspection guidance has not undergone periodic review to ensure that it aligns with current NRC security guidance and requirements.
RECOMMENDATIONS This report makes two recommendations to improve the agency’s physical security inspection program at Category I fuel cycle facilities. A consolidated list of these recommendations appears in Section V of this report.
AGENCY COMMENTS At an August 26, 2009, exit conference, agency senior executives agreed to provide suggested revisions to the discussion draft report for the Office of the Inspector General’s (OIG) consideration. On September 1, 2009, NRC provided suggested report revisions, which served as a basis for further discussions between the agency and OIG. This final report incorporates revisions made, where appropriate, as a result of the agency’s suggestions. On September 25, 2009, the Executive Director for Operations provided a formal response to this report (see Appendix B). No additional changes were made to the report based on the agency’s formal response. OIG’s response to the agency’s formal comments is presented in Appendix C.
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Please provide information on actions taken or planned on each of the recommendations within 30 days of the date of this memorandum. Actions taken or planned are subject to OIG follow up as stated in Management Directive 6.1. We appreciate the cooperation extended to us by members of your staff during the audit. If you have any questions or comments about our report, please contact me at 415-5915 or Beth Serepca, Team Leader, at 415-5911.