The PhilATOM bill is conservative

A BILL establishing an independent nuclear safety regulator, called the Philippine Atomic Energy Regulatory Authority (PhilATOM), now awaits President Ferdinand Marcos Jr.’s signature. Search for any international business assessment of obstacles to Philippine economic development and you will find two recurring themes: expensive and unreliable electric supply and corruption. The bill takes direct aim at improving power supply and imposes criminal and civil penalties for nuclear corruption.

But what are the nuclear ambitions of the Philippines? Given our recognized need for reliable power, the country can and should aspire to be a savvy and demanding customer of existing reactor vendors and a competent operator of the reactors we run. This bill was tailored to those ends. As a side benefit, while we lack the industrial base to be a direct supplier, with a competent internal regulator and its trained inspectors, we enhance our ability to participate in the wider nuclear industry’s supply chains. The underutilized shipyard at Subic Bay is one facility ideally suited for building large steelworks and equipment modules for global export by ship.

The bill is explicitly conservative in the reactor technologies allowed. Commercial reactor designs have, through much trial and some error, coalesced around two concepts. One uses “normal” water for both cooling and neutron control (“moderation” is the technical term). With a smaller market share, operating plants developed in Canada use isotopically selected water (“heavy water”) for cooling and moderation. The former is a light water reactor (LWR) and the latter is a heavy water reactor (HWR). Both have reached mature levels of development and refinement and work well. Only applications for LWRs and HWRs will be accepted at first. While there is much buzz about small modular reactors (SMRs) or novel concepts fueled by thorium or cooled by molten sodium metal, no application would be accepted for review without more than two years of prior successful commercial operation.

For new plant applications, the bill recognizes prior review by regulators in other countries. If the United States Nuclear Regulatory Commission, with its $1-billion annual budget and 3,000 employees, has spent two years reviewing and approving a “reference plant application,” why shouldn’t PhilATOM use that as a starting point for such a plant proposed here? The Philippine Institute of Volcanology and Seismology and the Philippine Atmospheric, Geophysical and Astronomical Services Administration — two agencies with international standing — would provide input on local site hazards.

Regulation of a complex technology in a democratically elected government is a complicated issue in political science. Public excitements have triggered less-than-thoughtful changes. Too little accountability for the technocrats can result in the bureaucrats working for the interests of the bureaucracy and not for the voter. The bill carefully balances accountability with stability of governance and continuity of policy. The director-general and his deputies are appointed by the president for rotating five-year terms and can only be removed “for just cause as specified by law.”

Lastly, corruption. While the broader issues of corruption in Philippine society are outside this bill, the measure authorizes criminal penalties of up to five years in prison and fines of up to P100 million for nuclear offenses. This will help deter counterfeit parts, a global problem for the industry. We’re not talking plastic Gucci handbags or gold-anodized Rolexes, either. Fiber optic cables that could not withstand radiation or high-voltage electrical breakers that couldn’t take the heat or weak bolts made of substandard steel — all have been detected and all potentially compromise nuclear safety. Hopefully, the prospect of time in a Philippine prison with no air conditioner will eliminate the temptation.

This bill meets or exceeds international standards and aligns with the interests of the Filipino people.

The author holds nuclear engineering and Master of Business Administration degrees, and has over 50 years’ experience in the business. He has worked under five different national regulatory regimes. An American citizen, he was recently granted permanent residency in the Philippines.