Good evening. Thank you for having me here.

I would like to address four key topics today. To begin, I would like to introduce you to the CNSC; who we are and how we fulfill our mandate. I would also like to demonstrate to you the CNSC’s commitment to openness and transparency. Of course, there are regulatory issues of interest to this community, which I will address. Finally, I think it is important that we look at the future of nuclear regulation in Canada, and issues or concerns that may arise in the Bruce region in the years to come.

The Canadian Nuclear Safety Commission was created with the coming into force of the Nuclear Safety and Control Act in May 2000. Under the Act, the CNSC is responsible for regulating the use of nuclear energy and materials for safety on behalf of all Canadians.

We have two primary areas of regulation. First, regulation of nuclear energy and materials to protect health, safety, security, and the environment. Secondly, we have an international component: the regulation of nuclear energy and materials to respect Canada’s international commitments on the peaceful use of nuclear energy.

In order to fulfill our mandate and be the best nuclear regulator possible for Canadians, the CNSC has committed to continuous improvement over the past four years. To keep us focused on our goal, we have developed a strategic vision to be one of the bet nuclear regulators in the world. Following this vision, four key strategic objectives for the CNSC have been identified. To fulfill our mandate, we must ensure that, as a regulator we:

• Are effective;
• Operate with a high level of openness and transparency
• Attract and retain excellent staff, and
• Are efficient.

The nuclear industry in Canada is considerably more diverse than in other countries. The CNSC licenses approximately 2,500 operations, comprising 4,500 licences. Our licensees include;

• Nuclear power plants
• Uranium fuel fabricators
• Uranium mines and mills
• Nuclear substance processing
• Industrial nuclear substance users, such as hospitals.
• Research and test facilities
• Importers/ exporters of nuclear equipment
• Waste management facilities

The number and variety of our licensees means the responsibilities of the CNSC are equally broad.

About the Canadian Nuclear Safety Commission

The CNSC is divided into two independent organizations with different responsibilities. First, there is the Commission itself, which is a quasi-judicial administrative tribunal. Secondly, there is the CNSC staff organization.

The Nuclear Safety and Control Act establishes the Commission as an independent, quasi-judicial administrative tribunal, which is comprised of up to seven members, including the President who is a full-time member. The Commission is frequently referred to as the “Tribunal” to avoid confusion with the broader organization. The Commission makes licensing decisions for major nuclear facilities, and holds public hearings that provide opportunities for applicants and intervenors to be heard and participation by the public. Hearings are sometimes held in local communities in the region of major facilities to encourage this participation.

Documents submitted to the Commission, transcripts of hearings, licensing decisions and documented reasons for the decisions are made available in the public domain, with the exception of information that is protected for either security or proprietary considerations.

The CNSC staff organization comprises approximately 500 employees in head office and regional and site offices. The CNSC has eight full-time staff working at the Bruce A and B facilities combined. Staff carry out the activities required to ensure that:

• There is a clear and actionable regulatory framework;
• Individuals and organizations using nuclear materials can operate safely and conform to safeguards and non-proliferation requirements;
• There is a high level of compliance with the regulatory framework; and,
• Stakeholders understand, are involved, and have confidence in the regulatory regime.

Our dedication to openness and transparency is one of our strategic objectives. Being open and transparent means we listen to Canadians and communities, and we provide timely and understandable information.

It is interesting to note that Canada is seen as having one of the most open and transparent nuclear regulatory processes in the world.

We are committed to listening to our licensees, the public and other stakeholders, and to taking their advice under consideration. We are here today as part of this commitment, and we are developing an outreach program to further assist us in engaging communities more proactively.

Regional Regulatory Issues

As I mentioned earlier, I would like to address current and pending issues in three areas which may be of interest to the municipal council. These are power reactors, waste management facilities, and financial guarantees.

I would like to turn the floor over first to Mr. Ian Grant, Director General of the Directorate of Power Reactor Regulation who will speak to relevant power reactor issues.

Mr. Grant speaking:

CNSC staff spent many hours reviewing safety analyses, operational documentation and inspecting components as units 3 and 4 were returned to service. This was to ensure that these reactors returned to service safely.

Bruce Power is conducting a feasibility study for the restart of Bruce A units 1 and 2. Restart of units 1 and 2 would follow a similar process as was used for units 3 and 4. There will be an environmental assessment and licensing hearings before the Commission. However, the scope of work to restart units 1 and 2 is much greater than it was for units 3 and 4. CNSC staff is developing a potential project plan that defines the regulatory activities, key deliverables and resource requirements for the regulatory oversight of the project to protect health, safety, security and the environment in the event Bruce Power proceeds with this project. The CNSC is also planning for these potential projects by reviewing CNSC staffing requirements to support any such initiatives.

Bruce Power has also initiated a study into the use of a new fuel design, which is intended to allow the Bruce B reactors to return to 100% full-power. Bruce Power requires CNSC approval for the new fuel design before it can load the new fuel into a reactor. The safety case associated with the new fuel project is currently being analyzed by CNSC staff, and there is currently an environmental assessment underway for this project, as required by the Canadian Environmental Assessment Act. A commissioning demonstration of a small number of fuel bundles in a reactor will occur before full-scale implementation can proceed.

A power increase from 90% full power to 93% full power for Bruce B reactors was approved in April following CNSC staff review of related safety analysis over a 2 year period. Unit 6 increased power on April 23, 2004. The other Bruce B units cannot increase power until prerequisites have been met.

Another upcoming development is the planned outage of the Bruce B vacuum building.

Every twelve years, multi-unit CANDU stations in Canada are required to shutdown to perform maintenance and inspections of their vacuum building. Bruce B is due for these inspections this year, and has planned for a vacuum building outage this fall. CNSC staff will be busy performing independent inspections of some of the vacuum building’s systems to ensure that it is capable of fulfilling its design function for the next twelve years.

I will now allow Mr. Barclay Howden, Director General of the Directorate of Nuclear Cycle and Facilities Regulation to speak to relevant waste management issues.

Mr. Howden speaking:

As you may know, there are five licensed waste related facilities in the region:

• Western Waste Management Facility;
• Radioactive Waste Operations Site;
• Central Maintenance and Laundry Facility;
• Bruce Heavy Water Plant; and,
• Douglas Point Waste Management Facility.

Waste management facilities are monitored, inspected and assessed by CNSC staff through a comprehensive compliance verification program. The five licensed waste-related facilities in the region are operating within regulatory limits.

Ontario Power Generation's proposed initiative for the long-term management of low and intermediate level radioactive waste constitutes a major development that may lead to the establishment of the first radioactive waste disposal facility in Canada. This project will generate a lot of interest at both the national and international levels. The CNSC has met with official from Ontario Power Generation to discuss regulatory issues related to this initiative for long-term management of low and intermediate level waste.

The CNSC will be involved in all stages of discussion and development to ensure public safety. Rigorous regulatory oversight will be applied throughout the planning, development, construction and operational phases of such a facility, if a decision is made to go forward with the project. Our licensing process ensures that the public will have an opportunity to be involved through public hearings.

I understand a referendum on the issue is planned for the region to determine whether or not the public wants the project to proceed.

I will now turn the floor back over to President Keen who will continue with a discussion of financial guarantees and some concluding remarks.

President Keen resumes speaking:

With regard to the issue of operational financial guarantees, the Commission has accepted a proposal from Bruce Power to fulfill its operational financial guarantees obligations through letters of financial assurance from the parent owners. In addition, Ontario Power Generation, as owner of the facility, has confirmed that they will act as a “reasonable landlord” in the unlikely event of insolvency on the part of Bruce Power.

It should be noted that the Commission considered this issue over three days of hearings, whereas most issues before the Commission are considered over one or two days. It is my hope that the importance accorded to this issue by the Commission assures this council and residents of the region that adequate financial guarantees are in place to protect the community, and that the Commission has given this issue due consideration.

Looking to the Future

It is not enough to look just at today’s licensees and today’s issues, but at what the suite of licensees will be in the future. There is a range of potential changes in the nuclear industry over the next decade. Further restarts and refurbishments may be forthcoming. The CNSC has had some discussions with Bruce Power on the possibility of new build. Decommissioning of facilities, as seen with Bruce Heavy Water Plant, may become more frequent. In addition, we are preparing for possible initiatives in Canada for long-term management of low and intermediate level waste. The CNSC has adopted a formal approach to planning so that we are prepared.

You can be assured that the CNSC has the necessary regulatory authority and independence to effectively and efficiently address future challenges and developments in order to protect Canadians.

Our focus is on our mandate. We serve Canadians by being an effective regulator. We value your input and strive to keep Canadians informed.

Thank you for this opportunity to speak to you. I look forward to your questions.