The NRC’s Office of Investigations (OI) recently published its Annual Report for fiscal year 2023, summarizing its activities from October 1, 2022 through September 30, 2023. According to the annual report, OI opened 82 new cases in FY 2023 compared to 70 in FY 2022, a 17% increase. It also closed 72 cases in 2023 compared to 67 in FY 2022, a 7.5% increase.
By the Numbers
OI’s total case inventory in FY 2023 increased by 14%—from 104 in FY 2022 to 119 in FY 2023, comprising 78 investigations, 32 of which were carried over from FY 2022, and 41 assists to staff, five of which were carried over from FY 2022. OI developed sufficient information to either substantiate or unsubstantiate allegations of willful wrongdoing for 38 investigations that it closed within 12 months and 34 assists to staff that it closed within 90 days.
A breakdown of the 82 cases opened in FY 2023 is as follows:
- 10 suspected materially false statements (a 23% decrease from FY 2022)
- 20 potential violations of other NRC regulatory requirements (a 5% increase)
- 36 assists to staff (a 29% increase)
- 16 allegations of discrimination (a 60% increase)
The annual report shows a significant jump in assists to staff (a 120% increase) and investigations (a 50% increase) involving materials licensees. This increase continues the general upward trend seen over the last several years, notwithstanding the decrease from FY 2021 to FY 2022. The annual report also shows a moderate decrease in the number of OI assists to staff for reactor licensees (a 22% decrease). The number of reactor investigations remained the same at 34 for both FY 2022 and FY 2023.
The annual report also shows a significant rise in new discrimination investigations (i.e., potential violations of NRC’s whistleblower employee protection provisions), jumping to 16 new cases, a high not seen since FY 2019 (22 new cases).
Significant Investigations
OI’s annual report summarized the following investigations involving deliberate misconduct:
- OI substantiated an allegation of a licensee providing false statements in its materials license application. OI determined that the licensee had provided inaccurate and false information regarding its Radiation Safety Officer (RSO) qualifications and that the licensee lacked a qualified RSO. The investigation eventually led to the revocation of the licensee’s NRC license. On November 4, 2021, the individual who failed to provide complete and accurate information to the NRC was indicted in the US District Court for the District of Hawaii and charged with making a false statement, violations of the Atomic Energy Act, and bank fraud. A trial is scheduled to begin in April 2024.
- OI substantiated an allegation that a licensee contractor’s employees falsified testing equipment calibration records. After negotiations with the US Department of Justice in October 2023, the subjects pled guilty to knowingly and willfully falsifying testing equipment calibration records within the jurisdiction of the NRC.
- OI substantiated an allegation that a licensee supervisor deliberately failed to abide by a radiation work permit. On September 5, 2023, the NRC issued a notice of a Severity Level III violation involving the licensee’s failure to follow a radiation work permit as required by the licensee’s technical specifications.
In July 2023, Thomas Ashley Jr. was named as the OI Director, having served as the acting Director since February. Prior to joining the NRC in 2020, he held various position within the US Defense Department. Director Ashley continued several initiatives instituted in FY 2022, including enhancing institutional knowledge of the nuclear industry, engaging with a broader audience for hiring and retention efforts, and implementing Executive Order 14074 on Advancing Effective, Accountable Policing and Criminal Justice Practices to Enhance Public Trust and Public Safety.
Morgan Lewis represents reactor and materials licensees and their employees and contractors in OI investigations and will continue to follow developments in this area closely.