ML18232A168

NRC-2018-000463 - Resp 1 - Interim. Agency Records Subject to Request Enclosed. Part 1 of 1

ML18232A168
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Issue date:	07/27/2018
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FOIA, NRC-2018-000463
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Text

March 10, 1999 POLICY ISSUE SECY-99'-072 (Notation Vate)

FOR: The Commission FROM: Karen D. Cyr Generat Counsel

SUBJECT:

LEGISLATIVE PROPOSALS FOR THE 106TH CONGRESS PURPOSE:

To obtain the Commission's approval of legislative proposals to be submitted to the 106th Congress.

SUMMARY

The 106th Congress is now in session, and it would be appropriate for the Commission to submit its legislative proposals to Congress at this time . After consultation with pertinent NRC offices, OGC has devetoped the attached legislative packageJ(b)(5) A brief description of each proposal is included in the fottowing discussion. More detailed descriptions are set forth in the attached package.

CONT ACT: Susan Fonner, OGC 301 -415~1629 Note: The 48-page package of draft legislative proposals has been withheld in its entiretv on the basis of exemotion 5

UNITl:D STATES NUCLEAR REGULA.TORY COMMlSSION WASHINGT"ON, D.C. 20565--0001 April 28, 1999 MEMORANDUM TO: Chairman Jackson Commissioner Dicus Commissioner Diaz Commissioner McGaffigan Commissioner Merrifield (l ___ l/,~ _,...~

FROM: Annette L. Vietti-Cook, S~

SUBJECT:

STAFF REQUIREMENTS MEMORANDUM SECY-99-072-LEGISLATIVE PROPOSALS FOR THE 106TH CONGRESS Attached is the staff requirements merriorandum on SECY-99-072. The SRM will be issued to the staff by COB Monday, May 3, 1999, unless I hear otherwise.

The attached SRM and the subject SECY paper contain sensitlve lnfonnation and they will not be released to the public.

(b)(5)

Attachment:

As stated cc: EDO OGC

UNll'EO STATES NUCLEAA REGULArORY COMMISSION WASHINGTON. O.C. 2055!>-0001 MEMORANDUM TO:

FROM: Annette Vietti-Cook, Secretary

SUBJECT:

STAFF REQUIREMENTS -SECY-99-072 - LEGISLATIVE PROPOSALS FOR THE 1Q6i H CONGRESS cc: Chairman Jackson Commissioner Dicus Commissioner Diaz Commissioner McGaffigan Commissioner Merrifield OGC CIO CFO OCA OIG OPA SECYNOTE: -l"I 116 Rc\PER CONi:AINS SENSll=IVE INf-ORMAi:JON..ANQ.WUb-B6 -

LIMll'ED TO NRC UNLESS TI IE COMMISS10N--BETERMINES

-OTHERWtSE-:-

Additional Commissloner Comments to be lncluded ln the SRM if A.greed to by a Majority of the Commission (b)(5)

J (b)(5)

(b )(5)

l"age l From: Margaret Doane To: Andrew Bates, Annette Vietti-Cook, Bill Hill, ...

Date: Wed, Apr 28, 1999 4:16 PM

Subject:

Re: Draft SR.M - SECY-99-072

>>> Darlene Wright 04/28 1:14 PM >>>

The attached file contains a draft SRM which is being circulated foc. Commission review. Please provide any responses to Ken Hart (KRH) and Bill Hill (WMH).

l(b)(5)

From: Karla Smith To: Bill Hill, Ken Hart Date: Wed, Apr 28, 1999 8:03 PM

Subject:

Draft SRM-SECY-99-072 (b)(5)

CC: Bradley Jones, Margaret Doane, Roger Davis, ste...

111.en !!:;1',L.- Ke. u rcm ~KIVI - ~c1.., 1- lflf- u , L. l"'age 1 From: Steven Crockett To: Andrew Bates, Annette Vietti-Cook, 8111 Hill, ...

Date: Thu, Apr 29, 1999 10:37 AM

Subject:

Re: Draft SRM - SECY-99-072 (b)(5)

>>> Marqaret Doane 04128 4:16 PM >>>

(b)(5)

>>> Dartene Wright 04/28 1:14 PM >>>

The attached file contains a draft SRM which is being circulated for Commission review. Please provide any responses to Ken Hart {KRH) and Bill Hill (WMH}.

l(b)(5)

From: Maria Lopez-Otin To: Andrew Bates, Annette Vietti-Co:-,,o:.::.kL...=:B.::!il ..:..H.:..:,ilC!LI..;.!**-=-

• ----------~

Date: Thu, Apr 29, 1999 11 :20 AM The two-page attachment has been withheld in its SubJect: Re: Draft SRM - SECY-99-072 entirety under exemption 5 r b)(5)

>>> Darlene Wright 04/28 1:14 PM >>>

The attached file contains a draft SRM which is being clrculated for Commlssion review. Please provide any responses to Ken Hart (KRH) and Bill Hill (WMH).

l(b)(5)

April30, 1999

Annette, the EA meetin thls morning.

(b)(5)

5

[_!~!Ph Gra.LJ...(b_)_( _) _ _ _ __:--~ - - - - - - - ' - - - - -- ------------

From: Trip Rothschild To: CobJentz, laban, Cyr, Karen, Gray, Joseph Date: Thu, Apr 29, 1999 3:29 PM SubJect: (b)(5) 1 (b)(5)

CC: Portner, Linda, Ten Eyck, Elizabeth

Commissloner Cornments on SECY-99--072 Chairman Jackson (b)(5)

Commissioner. Dicus (b)(5)

Commissioner Diaz l(b)(5)

Commissioner Merrifield

(b)(5)

(b)(5)

UI\IITED STATS NUCLEAR 'l EGUlA.iOAV COMMDSSJON WAS1i1NOY0N, O.C. 20Sfi5- D001 April 21. 1999 MEMORANDUM TO: Annette Vietti -Cook Secretary of the Co1T111ission FROM : Steven F. Crockett . ~~

Executive/Legal Assistant. OCM/EXM ~~

SUBJECT:

SECY-99-072 - LEGISLATiVE PROP0SALS FOR THE 106r" CONGRESS Commissioner McGaffigan requests an extension until April 28. 1999. in which to vote on the subject SECY-99-072 .

cc: Chairman Jackson Commissioner Oicus Corrmiss ioner Diaz Co1T111issioner Merrifield

- o - . '

From: Michael Weber To: Ken Hart Date: Tue, Apr 13, 1999 3:40 PM SubJect: Re: Request for Vote

>>> Ken Hart 04/13 1:48 PM >>> .

The attached file ls a request for vote addressed to Chairman Jackson and Commissioner McGaffigan on SECY-99-072. Apparently, it was not sent out on Monday nioming, so thls is a follow-up.

Thanks, Ken CC: Annette Vtettl-Cook, Brlan Holian, James Johnso...

April 9, 1999 MEMORANDUM TO: Chairman Jackson Commlssioner McGafflgan FROM: Annette L. Vietti-Cook, Secretary

SUBJECT:

SECY-99-072 - LEGISLATIVE PROPOSALS FOR THE 106' CONGRESS The status of the subject paper is as follows:

- The period for Commissioner comments has expired.

- A majority of the Commission has provided views.

Your vote on this staff paper within three business days indicating your views would be appreciated. The Secretary will honor a request for extension of time submitted wlthin the three business day period, it needed. Extensions of votlng time are normally limited to five busfness days. Any extension aft.er the initial request can be granted unless a majority of the Commission objects. lf you have not responded by c.o.b. Wednesday. April 14. 1999 It will be presumed that, in accordance with the Commission's rules of procedure, you are not particlpating in this action.

cc: Commissioner Dicus Commission.er Olaz Commissioner Merrifield

UNITEO STATES NUCLEAA REGULATORY COMMISSJON WASHlr,IGTON, D.C. 10555-0001 May 14, 1999 COMMISSION VOTING RECORD DECISION ITEM: SECY-99-072 TITLE: LEGISLATIVE PROPOSALS FOR THE 106TH CONGRESS The Commissio (b)(5) t-:-:--"":'"':'"--:------=:--:~";'"'""'.::--.......~-.-~ ----..=--""'X":'-------.---- _...J pproved the subject paper reflected tn the letters to Congress. equ,remen s emorandum (SRM) was issued on May 14, 1999.

This Record contains a summary of voting on this matter together with the individual vote sheets, views and comments of the Commission, and the SRM of May 14, 1999.

Annette Vietti-Coof<.

Secretary of the CommissiOn Attachments:

1. Voting Summary

2. Commissioner Vote Sheets

3. Final SRM cc: Chairman Jackson Commissioner Oicus Commissioner Diaz Commissioner McGaffigan Commissioner Merrifield OGC EOO

VOTING

SUMMARY

- SECY-99-072 RECORDED VOTES NOT APRVD DISAPRVD ABSTAIN PARTICIP COMMENTS DATE (b)(5)

CHRM. JACKSON X 4/16/99 COMR. DICUS X 4/5/99 COMR. DIAZ X 3/31/99 COMR. McGAFFIGAf\ X 4/26/99 COMR. MERRIFIELD X 4/9/99 COMMENT RESOLUTION (b)(5) fAII

_,..___,,...,..---:1,.

Commlssioners providea some additional comments. Subsequently, the comments of the Commlssion were incorporated lnto the letters to Congress. The SRM was issued on May 14 1999.

NOTATION VOTE RESPONSE SHEET TO: Annette Vie~i-Cook, Secretary FROM: CHAIRMAN JACKSON

SUBJECT:

SECY-99-072- LEGISLATIVE PROPOSALS FOR THE 106TH CONGRESS (b)(S) 1 l.__- - - - - - - - - - - - - J Abstain _ _

Not Participating _ _

COMMENTS: See attached sheet.

-GTTURE

~j/r,/ff DATE Entered on "AS" Yes

-- No

CHAIRMAN JACKSON'S COMMENTS ON SECY-99-072 (b)(5)

NOTATION VOTE RESPONSE SHEET TO: Annette Vietti-Cook, Secretary FROM: COMMISSIONER DICUS

SUBJECT:

SECY-99-072- LEGISLATIVE PROPOSALS FOR THE 106TH CONGRESS (b)(5) 1

....._ _ _ _ _ _ _ _ _ _ _ ___, A_ bstain l

Not Participating _ _

COMMENTS:

See attached comments.

Entered on "AS" Yes _ No_

COMMENTS OF COMMISSIONER DICUS ON SECY-99-072 (b)(5)

NOTATION VOTE RESPONSE SHEET TO: Annette Vietti-Cook, Secretary FROM: COMMISSIONER DIAZ

SUBJECT:

$ECY-99-072- LEGfSLATIVE PROPOSALS FOR THE 106TH CONGRESS (b)(5)

.l Abstain Not Participating _ _

COMMENTS:

rb)(5)

SIGNAÜ

?>3\ .q~

DATE Entered on "AS" Yes x No

NOTATION VOTE RESPONSE SHEET TO: Annette Vietti-Cook, Secrf;3tary FROM: COMMISSIONER MCGAFFIGAN

SUBJECT:

SECY-99-072

• LEGISLATIVE PROPOSALS FOR THE 106TH CONGRESS (b)(5) 1

, _ _ _ _ _ _ _ _ _ _ ____, Abstain _ _

l Not Participating _ _

COMMENTS:

See attached comments .

Entered on "AS" Yes ):(' No

Commissioner McGaffigan's Comments on SECY 99-72 (b)(5)

NOTATION VOTE RESPONSE SHEET

• TO: Annette Vietti-Cook, Secretary FROM: COMMISSIONER MERRIFIELD

SUBJECT:

SECY-99-072

• LEGISLATIVE PROPOSALS FOR THE 106TH CONGRESS (b)(5) 1

__- - - - - - - - - - - - - Abstain l

Not Participating _ _

COMMENTS:

SI

_ _ _ _Y..........,7/;-~C1--

DATE Entered on "AS" Yes V No- NO

• SENSITIVE ,,/

INFO ON - LIMITED TONRC ~

COMMISS DE S 0~

COMMENTS OF COMMISSIONER MERRIFIELD ON SECY-99-72 (b)(5)

t."'" AEotJ, _ .

,:P n "'>-- UNITED STATES

{~

Q o) ~

NUCLEAR REGULATORY COMMISSION WASHtNGTON , D.C. 20555-000 1

~ 11,

~.., 0~

May 14, 1999 OFFICE OF TH E SE CRETARV MEMORANDUM TO: Karen D. Cyr General Counsel FROM: { ( ' ~Vietti-Cook, Secretary v-

SUBJECT:

STAFF REQUIREMENTS- SECY-99-072 - LEGISLATIVE PROPOSALS FOR THE 106TH CONGRESS The Commission ha.s approved the proposed omnibus regislative package and the Chairman signed the attached letters forwarding the package to Congress on May 13, 1999.

Attachment:

As stated cc: Chairman Jackson Commissioner Dlcus Commlssioner Diaz Commissloner McGaffigan Commissioner Merrifield OGC CIO CFO OCA OIG OPA SECYNOTE: <THIS PAPER CONTAINS SENSITIVE INFORMiA,TION ANO WILL BE

"'-l.-lMR"-ES..::r.Q-NRC UNLESS THE COMMISSION DETERMINES--

OTI IERVt~SE.

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555--0001 May 13, 1999 The Honorable Albert Gore, J_r.

President of the United States Senate Washington, D.C. 20510

Dear Mr. Presideilt:

1am encloslng the U.S. N"uclear Regulatory Commlsslon's (NRC) legisl(ltive proposals ln the form of an omnibus draft blll that would make a number of Changes to the Atomic Energy Act of 1954 and the Energy Reorganization Act of 1974. Specifically, t~is leglslation woutd accompllsh the following objectlves: *

(1) authe>rlze guards to carry firearms at certJin NRC-licensed <?' certlfl~d facllltles; (2) make unauthorized introduction of weapons at facilities subject to licensing or ce.rtlflcatlon by the NRC a Federal crime; (3) make it a Federal crime to sabotage a production, utillzation, waste storage, waste treatm~nt, or waste disposal, uranium enrichment or nuclear fuel fabrication facili_ty during its construction, if the action could jeopardize public health and safety, or to sabotage a uranium enrlchment or nuclear fuel fabrication facility during its operation:

(4) make clear that in the case of a combined construction and operatlng llcense the initial duration and the commencement of the licensing period are consistent with the period provlded for situations where there are separate construction and operatlng llcenses; (5) elimination of the restriction on foreign ownership of power reactors and research reactors; (6) elimination of the Commission's antitrust review authority with respect to pending or future lnltial applications for a license to construct or operate a utlllzatlon or production f aclllty; (7) make clear that, with very limited exception, the standards issued by the Commission and Agreement States govern cleanup of Atomic Energy Act materlal at facllities licensed by them; (8) ellmlnation of the requirement that the hearing process associated with*the NRC licensing of uranium enrichment facilities must be "on the record:

(9) allow a Commissioner whose term has expired to continue in office for a limited period of time if a successor has not been confirmed; (1 O) provide the NRC with general gift acceptance authority; and

2 (11) elimination of the requirement that the NRC maintaln an office for the services of process and papers within the Dlstrlct of Columbia.

The enactment of these proposals would enhance nuclear safety and physical security, increase the NRC's efficiency, and enhance the economic use of Commission resources. A draft bill (Enclosure 1), an analysls of its provisions (Enclosure 2), a comparative text (Enclosure 3), and a memorandum explainlng the need for the legislation (Enclosure 4) are provided. The Commisslon may submit other proposed leglslation later in this Congress.

Sincerely.

4~~

Shlrley Ann Jackson Enclos.ures:

1. Draft Bill

2. Analysis of Proposal

3. Comparative Text

4. Legislative Memorandum

UNITEO STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. :lCl6564I01 May 13, 1999 The Honorable J. Dennis Hastert Speaker of the United States House of Representatives Washington, O.C. 20515 Oear Mr. Speaker:

1am encloslng the U.S. Nuclear Regulatory Commission's (NRC) legislatlve proposals in the form of an omnibus draft bill that w9uld make a number of changes to the Atomic Energy Act of 1954 and the Energy Reorganization Act of 1974. Speclfically, thls legislation would accompllsh the following objectives:

(1) authorize guards to carry flrearms at certain NRC-licensed or certified facilities;

. (2) make unauthorized lntroduction of weapons at facilities subject to licensing or certification by the NRC a Federal crlme; (3) make it a Federal crime to sabotage a production, utilization, waste storage, waste treatment, or waste disposal, uranium enrichment or nuclear fuel fabrication facility during its construction, if the action could jeopardize public health and safety, or to sabotage a uranlum enrichment or nuclear fuel fabrication facility during its operatlon; (4) make clear that in the case of a comblned constructlon and operating lk:ense the initial duration and the commencement of the licensing period are ~nsistent with the period provided for situations where there are separate construction and operating licenses; (5) eiimination of the r~striction on foreign ownership of power reactors alid research reactors; (6) elimination of the.commission's antitrust revlew authority with respect to pending or future initlal applicatlons for a license to construct or operete a utillzation or production faclllty; *

(7) make clear that, with very limited exception, the standards issued by the Commission and Agreement States govern cleanup of Atomic Energy Act material at facilities ficensed by them; (8) elimination of the requirement that the hearing process associated with the NRC licensing of uranium enrichment facilities must be "on the record."

(9) allow a Commissioner whose term has expired to continue in office for a limited period of time if a successor has not been confirmed;

2 (1 O) provide the NRC with general gift acceptance authority; and (11) elimination of the requirement that the NRC maintain an office for the services of process and p_apers within the Dlstrict of Columbia.

The enactment of these proposals would enhance nuclear safety and physical security, increase the NRC's efficiency, and enhance the economic use of Commission resources. A draft bill (Enclosure 1), an analysis of its provisions (Enclosure 2), a comparative text (Enclosure 3), and a memorandum explaining the need for the leglslation (Enclosure 4) are provided. The Commission may submit other proposed legislation later in this Congress.

Sincerely, ShirJey Ann Jackson

Enclosures:

1. Draft Biti

2. Analysis of Proposal

3. Comparative Text

4. Legislative Memorandum

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20UM001 May 13, 1999 The Honorable James M. lnhofe, Chairman Subcommittee onClean Air, Wetlands, Private Property and Nuclear Safety Commlttee on Environment ahd Public Works United States Senate

• Washington, D.C. 20510 Oear Mr. Chairman:

1am endosing the U.S. Nuclear Regulatory Commission's (NRC) legislative proposals in the form of an omnibus draft blll that would make a number of changes to the Atomic Energy Act of 1954 and the Energy Reorganization Act of 1974. Specifically, this legislation would accomplish the following objectives:

(1) authorize guards to carry firearms at certaln NRC-licensed or certified facilities; (2) make unauthorized introduction of weapons at facilities subject to licensing or certification by the NRC a Federal crlme; (3) make it a Federal crime to sabotage a production, utilization, waste storage, waste treatment, or waste disposal, uranium enrichment or nuclear fuel fabrication facility during its construction, if th~ action could jeopardize public health and safety, or to sabotage a uranium enrichment or nuclear fuel fabrication f acility during its operatlon; (4) make clear that in the case of a combined construction and operating license the lnitial duration and the commencement of the licensing period are consistent with the period provided for situations where there are separate construction and operating licenses; (5) elimlnation of the restriction on foreign ownership of power reactors and research reactors; (6) ellmlnatlon of the Commlssion's antitrust revlew authority with respect to pending or future initial applications for a license to construct or operete a utilization or product,on facility; (7) make clear that, with *very limited exception, the standards issued by the Commission and Agreement States govern cleanup of Atomic Energy Act material at facilities lioensed by them; (8) elimination of the requirement that the hearing process associated with the NRC licensing of uranium enrichment facilities must be "on the record."

2 (9) allow a Commissioner whose term has expired to continue in office for a limited period of time if a successor has not been confirmed; (10) provide the NRC with general gift acceptance authority; and (11) elimination of the requirement that the NRC _ maintain an offlce for the services of process and papers within the Pistrict o1 Columbia.

The enactment of these proposals would enhance nucfear safety and physical security,"

increase the NRC's efficiency, and enhance the economic use of Commission resources. A draft biti (Enclosure 1), an analysis of its provislons (Enclosure 2), a comparative text (Enclosure 3), and a memorandum e.xp.laining the nead for the legislatlon (Enclosure 4) are provided. The Commission may submit other proposed legislation later in this Congress.

Sincerely, Shirley Ann Jackson cc: Senator Bob Graham

Enclosures:

1. Oraft Bill

2. Analysis of Proposal

3. Comparative Text

4. Legislative Memorandum

UNITEO STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20655-0001 May 13, 1999 The Honorable Joe Barton, Chairman S1,1bcommlttee on Energy and Power Committee on Commerce United States House of Representatlves Washlngton,_O.C. 20515 Oear Mr. Chalrman:

1am enclosing the U.S. Nuclear Regulatory Commission's (NRC) legislative proposals in the form of an omnibus draft *bm that would make a number of changes to the Atomlc Energy Act of 1954 and tha Energy Reorganization Act of 1974. Specifically, this legislation would accompllsh the following objectives:

(1) authorize guards to carry firearms at certain NRC-licensed or certified facilities; (2) maka unauthorized introductlon of weapns at facilities subject to llcenslng or certlflc1;1tion by the NRC a Federal crlme; (3) .make it a Federal crime to sabotage a production, utlllzation, waste storage, waste treatment, or waste disposal, uranium enrichment or nuclear .fuel fabrication facillty during lts construction, if the actlon could jeopardlze public health and safety, or to sabotage a uranlum enrichment or nuclear fuel fabrlcation facllity during its operation; (4) make clear t.hat in the case of a combined construction and operating licensa the inltlal duration and the commencement of the licenslng period are conslstent with the period provlded for situatlons where there are separata construction and operating licenses; (5) elimlnatlon of the restriction on forelgn ownership of power reactors and research reactors; (6) elimination of the Commission's antitrust review authority with respect to pending or future lnitial appllcations for a license to construct or operate a utilization or production facility; (7) maka claar that, with very limited exception, the standards issued by the Commission and Agreement States govern cleanup of Atomic Energy Act material at facilities licensed by them; (8) elimination of the requirement that the hearing process associated with the NRC licensing of uranium enrichment facilitles must be "on the record."

(9) allow a Commissioner whose term has axpired to continue in office for a limited period of time if a successor has not been confirmed;

2 (1 O) provlde the NRC with general gift acceptance authority; and (11) elimination of the requirement that the NRC maintain an office for the services of process and papers within the District of Columbia.

The enactment of these proposals would enhance nuclear safety and physlcal security, lncrease the NAC's efficiency, and enhance the economlc use of Commission resources. A draft blll .(Enclosure 1), an analysls of its provislons (Enclosure 2), a comparative text (Enclosure 3), and a memorandum explaining the need for the legislation (Enclosure 4) are provided. The Commission may submlt other proposed leglslation later ln this Congress.

Sincerely,

~P-,~

Shirley Ann Jackson cc: Representatlve Ralph M. Hall

Enclosures:

1. Draft Bill

2. Analysis of Proposal

3. Comparative Text 4, Legislative Memorandum

UNITED STAl'ES NUCLEAR REGULATORV COMMISSION WASHINGTON, D.C. 20656-0001 Hay 13, i999 The Honorable Ron Packard, Chairman Subcommittee on Energy a~ Water Development Committee on Appropriations United States House of Representatives Washington, O.C. 20515 Oear Mr. Chairman:

1am enclosing the U.S. Nuclear Regulatory Commission's (NAC) legisiative proposals in the form of an omnibus draft blll that would make a number of changes to the Atomic Energy Act of 1954 and the Energy Aeorganization Act of 1974. Specifically, this legislatlon would accompllsh the following objectives:

(1) authorize guards to carry firearms at certain NAC-licensed or certified facllltles; (2) make unauthorized introduction of weapons at facilities subject to licenslng or certification by the NRC a Federal crlme; (3) make it a Federal crime to sabotage a production, utlllzation, waste storage, waste treatment, or waste disposal, uranlum enrichment or nuclear fuel-fabrication facility during lts construction, if the action could jeopardize public health and safety, or to sabotage a uranlum enrichment or nuclear fuel fabrication faclllty during lts operation; (4) make clear that in the case of a combined construction and operating licanse the inltial duration and the commencement of the licensing period are conslstent wlth the period provided for sltuations where there are separate constructlon and operatlng licenses; (5) elimination of.the restrlctlon on forelgn ownership of power reactors and research reactors; (6) elimination of the Commisslon's antltrust revlew authorlty wlth respect to pending or future initial applications for a llcense to construct or operate a utilization or productlon facility; (7) make clear that, with very limited exceptlOn, the standards lssued by the Commission and Agreement States govern cteanup of Atomlc Energy Act materlal at facllltles licensed by them; (8) ellmination of the requirement that the hearing process associated with the NRC licensing of uranium enrichment facilities must be "on the record."

(9) allow a Commissioner whose term has expired to continue ln office for a limited period of time if a successor has not.been confirmed;

2 (10) provide the NAC with general gift acceptance authority; and (11) elimination of the requirement that the NRC malntaln an office for the services of process and papers within the District of Columbia.

The enactment of these proposals would enhance nuclear safety and physical security, increase the NRC's efficiency, and ennance the economic use of Commission resources. A draft biti (Encfosure 1), an analysis of its provisions (Enclosure 2), a comparatlve text (Enclosure 3), and a memorandum explaining the neecl for the legislation (Enclosure 4) are provided. The Commission may subnit other proposed legislation later in this Congress.

Sincerely, Shirley Amn Jackson cc: Aepresentative Peter J. Visclosky

Enclosures:

1. Oraft Bill

2. Analysis of Proposal

3. Comparative Text

4. Legislative Memorandum

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20565-0001 May 13, 1999 The Honorable Pete V. Domenici, Chairman Subcommittee on Energy and Water Oevelopment Committee on Appropriations United States Senate Washington, O.C. 20510

Dear Mr. Chairman:

1am enclosing the U.S. Nuclflar Regulatory Commission's (NRC) legislative proposals in the form of an omnibus draft bill that would make a number of changes to .the Atomic Energy Act of 1954 and the Energy Reorganization Act of 1974. Specifically, this legislation would accomplish the following objectives:

(1) authorize guards t..., carry firearms at certain NRC-licensed or certified facilities; (2) make unauthorized introduction of weapons at facilities subject to licensing or certificatlon by the NRC a Federal crime; (3) make it a Federal crime to sabotage a production, utilization, waste storage, waste treatment, or waste disposal, uranlum enrichment or nuclear fuel fabrication facility during its construction, if the action could jeopardize public health and safety, or to sabotage a uranium enrichment or nuclear fuel fabrication facility during its operation; (4) maka clear that in the case of a combined qonstruction and operating llcense the*

initial duration and the commencement of the licensing period are consistent with the period provided for situations where there are separate construction and operatlng llcenses; (5) elimination of the restriction on foreign ownership of power reactors and research reactors; (6) elimination of the Commission's antitrust review authority with respect to pending or future initlal applicatlons for a llcense to construct or operate a utilization or production facllity; (7) mae clear that, with very limited exception, the standards issued by the Commission and Agreement States govem cleanup of Atomic Energy Act material at facilities licensed by them; (8) elimination of the requirement that the hearing process associated with the NRC licensing of uranium enrichment facilitjes must be "on the record."

(9) allow a Commissioner whose term has expired to continue in office for a llmited period of time if a successor has not been confirmed;

2 (10) provide the NRC with general gift acceptance authority; ~nd (11) elimination of the requirement that the NRC malntain an office for the services of process and papers within the District of Columbia.

The enactment of these proposals would enhance nuclear safety and physical security, increase the NRC's efficiency, and enhance the economic use of Commission resources. A draft bill (Enclosure 1), an analysis of its provisions (Enclosure 2), a comparative text (Enclosure 3), and a memorandum explaining the need for the legislation (Enclosure 4) are provided. The Commission may submit other proposed legislation later in thls Congress.

Sincerely,

./l:.t.,~ ~

Shirley Ann Jackson cc: Senator Harry Reid

Enclosures:

1 . Oraft 8111

2. Analysis of Proposal

3. Comparative Text

• 4. Legislative Memorandum

Enclosure 1 DRAFTBILL Be it enacted by the Senate and House of *Representatives of the United States of America in Congress assembled, that this Act may be cited as the "Atomic Energy Act Amendments of 1999".

SECTION 2. CARRYING OF FIREARMS BY LICENSEE EMPLOYEES Section 161 k. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(k)) is amended to read as follows:

"SEC. 161. GENERAL PROVISIONS. - ln the performance of its functions the Commission is authorized to --

"k. authorize such of its members, officers, and employees as it deems necessary in the interest of the common defense and security to carry firearms while in the discharge of their official duties. The Commission may also authorize--

"( 1) such of those employees of its contractors and subcontractors (at any tier) engaged in the protection of property under the jurisdiction of the United States located at facilities owned by or contracted to the Unit~d States or being transported to or from such facilities as it deems necessary in the interests of the common defense and security; and

"(2) such of those employees of persons licensed or certified by the Commission (including employees of contractors of licensees or certificate holders) engaged in the protection of (A) facilities owned or operated by a Commission licensee or certificate holder that are designated by the Commission, or (B) property of significance to the

2 common defense and security located at facilities owned or operated by a Commission licensee or certificate holder or being transported to or from suc_h facilities; to carry firearms while in the discharge of their official duties. A person authorized to carry firearms under this subsection may, while in the performance of, and in connection with, official duties, make arrests without warrant for any offense against the United States committed in that person's presence or for any felony cognizable under the laws of the United States if that person has reasonable grounds to believe that the individual to be arrested has committed or is committing such felony. An employee of a contractor or subcontractor or of a Commission licensee or certificate holder (or a contractor of a licensee or certificate holder) authorized to carry firearms under this subsection may make such arrests only when the individual to be arrested is within, or in direct flight from, the area of such offense. A person granted authority to make arrests by this subsection may exercise that authority only in the enforcement of (1) laws regarding the property of the United States in the custody of the Department of.Energy, the Nuclear Regulatory Commission, or a contractor of the Department of Energy or Nuclear Regulatory Commission or a !icensee or certificate holder of the Commission, or (2) laws applicable to facilities owned or operated by a Commission licensee or certificate tiolder that are designated by the Commission pursuant to this subsection, and property of significance to the common defense and security that is in the custody of a licensee or certifrcate holder or a contractor of a licensee or certificate holder of the Commission, or (3) any provision of this chapter that may subject an offender to a fine, lmprisonment, or both. The arrest authority conferred by this subsection is in addition to any arrest authority under other laws. The Secretary and the Commission, with the approval of the Attomey General, shalf issue guidelines to implement this subsection;".

3 SECTION 3.UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS Section 229 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2278a(a)) is amended by adding after "custody of the Commission" the words "or subject to its licensing authority or to certification by the Commission under this Act or any other Act".

SECTION 4. SABOTAGE OF NUCLEAR FACILITIES OR FUEL Section 236 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2284(a)) ls amended to read as follows:

"a. Any person who intentionally and willfully destroys or causes pysical damage to, or who intentionally and willfully attempts to destroy or cause physical damage to--

"( 1) any production facility or utilization facility licensed under this Act;

"(2) any nuclear waste storage, treatment or disposal facility licensed under this Act;

"(3) any nuclear fuel for a utilization facility licensed under this Act, or any spent nuclear fuel from such a facility;

"(4) any uranium enrichment or nuciear fuel fabricatlon facility licensed or certified by the Nuclear Regulatory Commission; or

"(5) any production, utillzation, waste storage, waste treatment, waste disposal, uranium enrichment or nuclear fuel fabrication facllity subject to licensing or certification under this Act during its construction where the destruction or damage caused or attempted to be caused could affect public health and safety during the operation of the facility; shall be fined not more than $10,000 or imprisoned for not more than ten years, or both.".

4 SECTION 5. PERIOD OF COMBINED LICENSE Subsection c. of section 103 of the Atomic Energy Act of 1954 (42 U.S.C. 2133(c)) is amended by adding the fouiowing sentence at the end of the subsection: "ln the case of a combined construction and operating license issued under section 185 b., the initial duration of the license may not exceed 40 years from the date on which the Commlssion finds, prior to operation of the facility, that the acceptance criteria required by section 185 b. have been met."

SECTION 6. ELIMINATION OF FOREIGN OWNERSHIP PROHIBITIONS (1) Section 103 d. of the Atomic Energy Act of 1E354 (42 U.S.C. 2133(d)) is amended by inserting the words "for a production facility" after "licen&e" in the second sentence.

(2) Section 104 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2134(d)) is amended by inserting the words "for a production facility" after "license* in the second sentence.

SECTION 7. ELIMINATION OF NRC ANTITRUST REVIEWS Section 105 of the Atomic Energy Act of 1954 {42 U.S.C. 2135) is amended by adding the following subsection after subsection c.:

"d. Following the effective date of this subsection, subsection c. shall not apply to any pending*or future application filed for a license to construct or operete a utilization fi:ICility under section 103 or 104 b. This Act shall not affect the Commisslon's authority to enforce antitrust conditions included in licenses issued under section 103 or 104 b.

before the date of enactment of this subsection.*

SECTION 8. ACTIONS RElATING TO SOURCE. BYPROOUCT AND SPECIAL NUCLEAR MATERIAL

5 The Comprehensive Environmental Response, Compensation and Liability Act of 1989 (42 U.S.C. 9601 et seq.) ls amended --

(1) by adding the following new paragraph at the e*nd of section 121(b):

"(3) No authority of this Act may be used to commence an administrative or judicial

• action with respect to source, special nuclear, or byproduct material that is subject to decontamination regulations issued by the Nuclear Regulatory Commission for licens~

termination under the Atomic Energy Act of 1954, or by a State that has entered into an agreement pursuant to section 274 b. of that Act, unless such action is requested by the Nuclear Regulatory Commission or, in the case of such material under the jurisdiction of a State that has entered into an agreement pursuant to section 274 b. of that Act, the Governor of the State."

(2) by inserting the following before the period at the end of paragraph (K) of section 101(10):

• , or any release of such material in accordance with regulations of the Nuclear Regulatory Commission following termination of a license issued by the Nuclear Regulatory Commission putsuant to the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) or by a State acting under an Agreement entered into pursuant to section 274 b. of that Act".

SECTION 9. HEARINGS ON LICENSING URANIUM ENRICHMENT FACILITIES Section 193(b)(1) of the Atomic Energy Act of 1954 (42 U.S.C. 2243(b)(1)) ls amended by deleting "on the record".

6 SECTION 10. CONTINUATION OF COMMISSIONER SERVICE Section 201(c) of the Energy Reorganization Act of 1974 (42 U.S.C. 5841(c)) is amended-(1) by inserting "(1)" after "(c)", and (2) by adding the following paragraph after paragraph (1) (as so designated):

"(2) A member of the Commission whose term of office has expired may, subject to the removal power of the President, continue to serve as a member until the member's successor has taken office except that the metnber shall not continue to serve beyond the expiration of the next session of Congress subsequent to the expiration of the fixed term of office.".

SECTION 11 . GIFT ACCEPTANCE AUTHORITY Section 161 g. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(g)) is amended --

(1) by inserting "(1)" after "g.", and (2) by adding the following paragraph ~fter paragraph (1) (as so designated}:

"(2) accept, hold, utilize, sell, and administer giflts, bequests, or donations of real and personai property for the purpose of aiding or facilitating the work of the Nuclear Regulatory Commission. There is established in the Treasury a fund for use in accordance wlth the provisions of this paragraph. Any gift of money accepted pursuant to the authority granted ln this paragraph, or the net proceeds from the sale of any property so accepted, shall be deposited in the fund. Such funds shall be held in trust by the Secretary of the Treasury, and are hereby appropriated, without fiscal year limitation, and shall be avallable to the Chairman of the Nuclear Regulatory Commisslon without further appropriations action. Property accepted pursuant to this paragraph, and the proceeds thereof, shall be used as nearty as possible in accordance with the terms of the

7 gift, bequest, or donation, if such terms are not inconsistent with this par~graph or any other applicable law. The Commission shall est,ablish written criteria for det~rmining whether to accept bequests, gifts, or donations of money or property pursuant to this paragraph. Such criteria shall take into consideration whether the acceptance of the bequest, gift, or donation would compromise the integrity of, or the. appearance of the integrity of, the Nuclear Regulatory Commission or any officer or employee of the Commission;n.

SECTION 12. OFFICE LOCATION Section 23 of the Atomic Energy Act of 1954 (42 U.S.C. 2033) is amended by striking ";

however, the Commission shall malntain an office for the service of process and papers within the District of Columbia".

Enclosure .2 SECTION ANALYSIS SECTION 2. CARRYING OF FIREARMS BY LICENSEE EMPLOYEES The purpose of this amendment is to permit guards at NRC-licensed or certified facilities designated by the Commission, guards at any NRC-licensed or certified facility where there are special nuclear materiils present, and guards that are engaged in transporting special nuclear materials, to carry weapons and to use them, where.necessary to prevent sabotage of a facility desigriated by the Commission or to prevent theft of materiats capable of being used for nuclear exptosives. Guards at DOE facitities and DOE guards transporting special nuclear materials already possess this authority. The amendment would provide identical authority to guards at NRC-licensed or certifted facilities to be designated by-the Commission.

ln circumstances defined by NRC regulations and guidelines, the amendment would also provide the possibility of shielding guards against prosecution by state authorities for dlscharge of firearms in the performance of official duties. This should help remove licensee guards' reluctance to use their weapons in defending facilities against terrorist attacks or transports containing strategic quantities of special nuclear materials against attack.

SECTION 3. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS The purpose of this amendment is to authori:ze the Nuclear Regulatory Commission to promulgate regulations that would prohibit a person who has not obtained prior authorization from carrying, transporting, or otherwise introducing or causing to be introduced any weapon, explosive, or other dangerous instrumentality into any facility, installation, or real property regulated by the Commission or subject to certification by the Commission. Violation of the

2 regulation would. constitute a Federal crime punishable by a fine of up _to $5000, imprisonment for not more than one year. or both.

The Commission's implementing regulations would ~etermine the scope of the prohibition. It is the Commission's intent to limit the applicability of the implementing regulations to nuclear facilities and materials that must be protected against theft or radiologlcal sabotage.

SETION 4. SABOTAGE OF NUCLEAR FACILITES OR FUEL The purpose of this amendment is to extend Federal crlminal sanctions to sabotage or attempted sabotage of (1) production, utilization, or waste storage, treatment, disposal, uranium enrichment or nuclear fuel fabrication facilities during their construction, and (2) uranium

• enrichment and fuel fabrication facilities during their operations. With respect to sabotage during construction of facilities listed in clause (1), only acts that potentially affect the public health and safety during operation of the facility will be subject to Federal crlmlnal sanctions.

SECTION 5. PERIOD OF COMBINED LICENSE This amendment of section 103 c. of the Atomic Energy Act of 1954 would make clear that in the case of a combined construction and operating license issued under section 185 b. of the Act the initial duration of the license may be up to 40 years (asis true with respect to other licenses covered by section 103 c.), and that the term of the licelise would begin on the date on which the Commission finds, before operation of the facility, that the acceptance criteria required by section 185 b. have been met.

SECTION 6. ELIMINATION OF FOREIGN OWNERSHIP PROHIBITIONS These amendments of section 103 d. and section 104 d. of the Atomic Energy Act of 1954* would eliminate the restrictions on foreign ownershlp of utilization facilities (power and

3 research readors). The amendments would not alter etther the restrictions on foreign ownership of production facilities or the requirement that the Conimission not authorize issuance of any license to a new owner if it finds that such ownership would be inimical to the common defense and security or to the health and safety of the public.

SECTION 7. ELIMINATION OF NRC ANTITRUST REVIEWS The purpose of this amendment of sedion 105 of the Atomic Energy Ad of 1954 is to elimlnate the Commission's antltrust review authority with respect to pending or future applications for a license (inciuding applications for a combined license or a license transfer) to construct or operate a utilization or production facility. under section 103 or 104 b. of the Act.

The amendment would preserve the Commission's authority to enforce antitrust conditlons in licenses issued before this amendment became effective, and it would not affect the Commission's legal authority with respect to those conditions.

SECTION 8. ACTIONS RELATING TO SOURCE, BYPRODUCT AND SPECIAL NUCLEAR MATERIAL The proposed amendment of section 121 {b) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) would make it clear that the standards issued by the Commission and Agreement States govem cleanup of Atomic Energy Act material at facilities licensed by them, except in the rare case 1n which the NRC or the cognizant Agreement State invokes the application of CERCLA as necessary to effect adequate cleanup. The proposed amendment of section 101(10){K) of CERCLA would include in the definition of "federally permitted release* Atomic Energy Act material that is released in accordance with NRC regulations following termination of a license issued by the Commission

or by an Agreement State, just as is the case wlth such releases under a current license issued pursuant to the Atomic Energy Act.

SECTION 9. HEARINGS ON LICENSING URANIUM ENRICHMENT FACILITIES The proposed amendment of section 193(b)(1) of the Atomic Energy Act of 1954 would improve the hearing process associated with NRC licenslng of uranium enrichment facilities by eliminaing the requirement for such a hearing to be "on the record. Elirriination of the "on the record" requirement with respect to licensing of uranium enrichment facilities would provide the NRC with more flexibility in determining the appropriate hearing process in such proceedings.

SECTION 10. CONTINUATION OF COMMISSIONER SERVJCE Subject to the removal power of the President, this amendment of section 201 of the Energy Reorganization Act of 1974 would allow a Commissioner to continue in office until whichever of the following c.>ccurs first: (a) his or her successor has taken office, or (b) the expiration of the next session of Congress subsequent to the expiration of the member's fixed term of office. The provision will enable the Commission to maintain a quorum for a signiflcant period of time, even when no successor has been appointed for three Commissioners whose terms have expired.

• SECTION 11. GIFT ACCEPTANCE AUTHORITY This amendment of section 161 g. of the Atomic Energy Act of 1954 would authorize th~

Commission to accept gifts bequests, or devises of real and personai property. Any money received would be deposited in a separate fund in the United States Treasury and would be available to the Commission Chairman without further appropriations action and without fiscal

2 year limitation. The Commission would establish written criteria for determining whether to accept such bequests, gifts, or donations.

SECTION 12. OFFICE LOCATION This amendment of section 23 of the Atomic Energy Act of 1954 would elimlnate the requirement that the Commission maintain an office for the service of process and papers within the Distrlct of Columbia. Process would be served at the Commission's headquarters in Rockville, Maryland.

Enclosure 3 COMPARATIVE TEXT SECTION 2 The amended sect:ion 161 k. of the Atomic Energy Act of 1954 would read as follows:

"SEC. 161 . GENERAL PROVISIONS. - ln the perfomance of its function the I

Commission is authorized to --

"k. authorize suc~ of its members, officers, and employees as it deems necessary in the inter'est of the common defense and security to.carry firearms while in the discharge of their official duties. The Commission may also authorize=

"ill such of those employees of its contractors and subcontractors (at any tier) engaged in the protection *o f property under the jurisdiction of the United States located at facilities owned by or contracte~ to the United States or being transported to *or from such facilities as it deems necessary in the interests of the common defense and security,;.m

"(2) such of those employees of persons licensed or certified by the Commission (including employees of contractors of licensees or certificate holders) engaged in the protection of (A) facilities owned or operated by a Commission licensee or certificate holder that are designated by the Commission, or (8} property of significance to the common defense and security located at facilities owned or operated by a Corrimission licensee or certificate holder or being transported to or from such facilities:

to carry firearms while in the discharge of their official duties. A person authorized to carry firearms under thls subsection may, while in the performance of, and in connection with, official duties, make arrests without warrant for any offense against the United

2 States committed in that person's presence or for any felony cognizable under the laws of the United State.s if that person has reasonable grounds to believe that the individual to be arrested has committed or is committing such felony. An employee of a contractor or subcontractor or of a Commission licensee or certificate holder (or a contractor of a licensee or certificate holder) authorized to carry firearms under this subsection may make such arrests only when the individual to be arrested is within, or in direct flight from, the area of such offense. A person granted authority to make arrests by thrs subsection may exercise that authority only in the enforcement of (1) laws regarding the property of the United States in the custody of t~e Department of Energy, the Nuclear Regulatory Commission, or a contractor of the Department of Energy or Nuclear Regulatory Commission or a licensee or certificate holder of the Commission, or ~)JiW...s applicable to facilities owned or operated by a Commisslon licensee or certificate holder that are designated by the Commission pursuant to this subsection. and property of signiflcance to the common defense and security that is in the custody of a licensee or certificate holder or a contractor of a licensee or certificate holder of the Commission, or (i~) any provision of this chapter .that may subject an offender to a fine, imprisonment, or both. The arrest authority conferred by-this subsection is in addition to any arrest authority under other laws. The Secretary and the Commission, with the approval of the Attorney General, shall ssue guidelines to lmplement this subsection;"

SECTION 3 The amended section 229 a. of the Atomic Energy Act of 1954 would read as follows:

"SEC. 229. TRESPASS UPON COMMISSION INSTALLATIONS. -

3 "a. The Commission is authorized to issue regulations relating to the entry upon or carrying, transporting, or otherwise introducing, or causing to be introduced, any dangerous weapon, explosive, or other dangerous instrument or material likely to produce substantial injury or damage to persons or property, into or upon any facility, installation, or real property subject to the juri~diction, administratlon, or in the cust~dy of the Commission or subject to its licensing authoritv or to certification by the Commission under this Act or any other Act. Every such regulation of the Commission shall be posted conspicuously at the location involved."

SECTION4 The amended section 236 a. of the Atomic Energy Act of 1954 would read as follows:

"Sec. 236. SABOTAGE OF NUCLEAR FACILITIES OR FUEL.-

"a. Any person who intentionally and willfully destroys or causes physical damage to. or who intentionally and willfully attempts to d.estroy or cause physical damage to-

"(1) any production*facility or utilization facility licensed under this Act;

"(2) any nuclear w~ste storage, treatment or disposal facility licensed under this Act;

"(3) any nuclear fuel for-sttet'I a utilization facility licensed under*this Act, or any spent nuclear fuel from such a facility;-or

"(4) any uranium enrichment or nuclear fuel fabrication facility licensed or certified by the Nuclear Regulatory Commission:.,;,,,Q

"(5) any production, utilization, waste storaqe, waste treatment. waste disposaL uranium enrichment or nuclear fuel fabrication facility subject to

4 licensing or certification under this Act during its construction where the destruction or damaqe caused or attempted to be caused could affect public health and safety during the operation of the facility:

shalf be fined not more than $10,000 or imprisoned for not more than .ten years, or both."

SECTION 5.

The amended secticm 103 c. of the Atomic Energy Act of 1954 would read as follows:

"Sec. 103. COMMERCIAL LICENSES.-

"c. Each such license shall be issued for a s'pecified period, as determined by the Commission, depending on the type of activity to be licensed, but not exceeding forty years, and may be renewed upon the expiration of such period. ln the case of a combined construction and operatlng license issued under section 185 b., the initial duration of the license may not exceed 40 years from the date on which the Commission finds. prior to operation of the facility, that the acceptance criteria reguired by section 185

b. have been met."

SECTION 6.

(1) The amended section 103 d. of the Atomic Energy Act of 1954 would read as follows:

"d. No license under this section may be given to any person for activities which are not under or within the jurisdiction of the United States, except for the export of production or utilization facilities under terms of an agreemer:it for cooperation arranged pursuant to section 123; or except under the provisions of section 109. No license for a production facility may be issued to an alien or any corporation or other entity if the Commission

5 knows or has reason to believe it is owned, conti'olled, or dominated by an alien, a foreign corporation, or a foreign govemment. ln any event, no llcense may be issued to any person within the United States if, in the opinion of the Commission, the issuance of a license to such person would be inimical to the common defense and security or to the health and safety of the public."

(2) The amended section 104 d. of the Atomic Energy Act of 1954-would read as follows:

"d. No license under this section may be given to any person for activities which are not under or within the jurisdiction of the United States, except for the export of production or utilization fac;ilities under terms of an agreement for cooperatioh arranged pursuant to section 123 or except under the provisions of section 109. No license for a oroduction facility mt1y be issued to any corporation or other entity if the Commission knows or has reason to believe it is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign govemment. ln any event, no license may be issued to any person within the United States if, in the opinion of the Commission, the issuance of a license to such person would be inimical to the common defense and security or the health and safety of the public.ff SECTION 7.

The ai'nended section 105 of the Atomic Energy Act of 1954 would read as follows:

• Sec. 105. Antitrust Provisions.-

"d. Following the effective date of this subsection, subsection c. shall not apply to any pending or future application filed for a license to construct or operate a.utilization facility

6 under section 103 or 104 b. This Act shall not affect the Commission's authority to enforce antitrust conditions included in licenses issued under section 103 or 104 b.

before the date of enactment of this subsection:*

SECTION 8.

(1) The amended section 121 (b) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. 9601 et seq.) would read as follows:

"(b) GENERAL RULES.-

• (3) No authority of this Act may be used to commence an administrative or judicial action with respect to source, special nuclear, or byproduct material that is subject to decontamination requlations issued by the Nuclear Regulatory Commission for license termination under the Atomic Energy Act of 1954, or by a State that has entered into an agreement pursuant to section 274 b. of that Act:, unless such action is reguested by the Nuclear Requlatoy Commission or. in the case of such material under the jurisdiction of a State that has entered into an agreement pursuant to section 274 b. of that Act. the Govemor of the State."

(2) The amended section 101(10)(K) of the Comprehensive Environmental Response.

Compensation and Liability Act of 1980 (42 U.S.C. 9601 et seq.) would read as follows :

"(1) The term "federally permitted release* means

"(K) any release of source, special nuclear, or byproduct material, as those terms are defined in th'e Atomic Energy Act of 1954, in compliance with a legally enforceable license. permit, regulation. or order issued pursuant to the Atomic Energy Act of 195'l.Q.r

1*

any release of such material in accordance with regulations of the Nuclear Regulatory Commission followinq termination of a license issued by the Nuclear Regulatory Commission pursuant to the Atomic Energy Act of 1954 {42 U.S.C. 2011 et seg.) or by a State acting under ari Aqreement entered into pursuant to section 274 b. of that Act."

SECTION 9.

The amended section 193(b)(1) of the Atomic Energy Act of 1954 would read as follows:

"(b) Adjudicatory Hearings.--

"(1) ln General.-The Commission shall conduct a single adjudicatory hearing e" tl'le 1'eeMd with regard to the licensing of the construction and operatlon of a uranium enrich.ment facility under sections 53 and 63.*

SECTION 10.

The amended sectton 201(c) of the Energy Reorganization Act of 1974 would read as follows:

"(c)ill Each member shall serve for a term of five years, each such term to commence on July 1, except that of the five members first appointed to the Commission, one shall serve for one year, one for two years, one for three years, one for four years, and one for five years, to be designated by the President at the time of appointment; and except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which hls predecessor was appointed, shall be appointed for the remalnder of such term.

For the purpose of determining the expiration date of the terms of office of the five members first appointed to the Nuclear Regulatory Commission, each such term "shall" be deemed to have begun July 1, 1975.

8

"(2) A member of the Commission* whose term of office has expired may, subject to the removal power of the President. continue to serve as a member until the member's successor has taken office. except that he shall not continue to serve beyond the expiratlon of the next session of Conqress subsequent to the expiration of the fixed term Qf office."

SECTION 11.

The amended section 161 g. of the Atomic Energy Act of 1954 would read as follows:

"g. ill acquire, purchase, lease, and hold real .and personai property, including patents, as agent of and on behalf of the United States, subject to the provisions of section 174, and to sell, lease, grant, and dispose of such real and personai property as provided in this Act~..

"(2) accept, hold, utilize, selL and administer qifts. beguests. or donations of real and personai property for the purpose of aidinq or facilitatinq the work of the Nuclear Requlatory Commission. There is established in the Treasury a fund for use in accordance with the provisions of this paragraph. Any gift of money accepted pursuant to the authority qranted in this paraqraph, or*the net proceeds from the sale of any property so accepted . shall be deposited in the fund. Such funds shall be held in trust by the Secretary of the Treasury, and are hereby appropriated, without fiscal year limitation, and shall be available to the Chairman of the Nuclear Regulatory Commission without further appropriations action. Property accepted pursuant to this paraqraph. and the proceeds thereof, shalt be used as nearly as possible in accordance with the terms of the gift. bequest or donation, if such terms are not inconsistent with this paraqraph or any other applicable law. The Commission shall establish written criteria for determining

1 whether to accept beguests, gifts, or donations of monev or propertv pursuant to this paragraph. Such criteria shall take into consideration whether the acceptance of the beguest or gift would compromise the inteqritv of, or the appearance of the inteqritv of, the Nuctear Requlatorv Commission or anv officer or emplovee of the Commission;"

SECTION 12.

The amended section 23 of the Atomic Energy Act of 1954 would read as follows:

"SEC. 23. OFFICE.-The principa! office of the Commission shall be in or near the Oistrict of Columbia, but the Commission or any duly authorized representabve may exercise any .or all of its powers in any ptace: hewe..,er, the Gemmiaaie" ahall mai"tail'l ar, effiee fer the aeNiee ef i,reeeaa ar,d papel'9 withi" tt,e Distl'iet ef Gel1:1mbia."

Enclosure 4 LEGISLATIVE MEMORANDUM IN SUPPORT OF PROPOSED BILL SECTION 2. CARRYING OF FIREARMS BY LICENSEE EMPLOYEES.

Section 161 k. of the Atomic Energy Act permits employees of the Department of Energy (DOE) and its contractors and subcontractors engaged in the protection of property located at nuclear facilities or being transported to or from such facilities to carry arms. make arrests, and use force as*DOE deems necessary in the inter~sts of the common defense and security. As a result of this section, DOE guards may be shielded from State criminal prosecution for actions taken during the performance of their official duties.

ln contrast, State law govems the use of weapqns by guards at NRC-ficensed facilities.

ln some States, guards at NRC-licensed facilities may use weapons only to protect their own lives or the lives of others. Even when the use of a weapon meets the highest standard, these guards, unlike the guards at DOE facilities and DOE guards transporting special nuclear materials, cannot be shielded from State crJminal prosecution for actions taken during the performance of official duties. The purpose of this legislation is to give guards at NRC-licensed or certified facilities designated by the Commission equivalent authority to that provided for guards at.DOE facilities.

The proposed amendment would enhance national security b}' eliminating several weaknesses under the current safeguards and security regime. For example, licensee guards, knowing that the Federal Govemment does not have the potential for shielding them from State criminal prosecution if they use their weapons in the line of duty, may hesttate to act to prevent a terrorist attack ~gainst a nuclear power plant, or theft or sabotage of weapons grade material,

3 when force i~ required to stop the attack or theft. Additionally, without being abfe to use appropriate force, licensee guards may hesitate to expose themselves to danger. The facilities to which the NRC seeks to extend section 161 k. protection are entities that currently possess or in the future will possess special nuclear materials and nuclear power plants. The Commission js partlcularly concemed about formula quantities of strategic special nuclear materials that could be used in an improvised nuclear weapon. The specific facilities that will be covered will be separately designated by the Commission following the enactment of this legislation.

The proposed amendment would also fulfill the national goal, first expressed in 1974, of maintaining fully adequate and essentially equivalent safeguards systems for weapons-usable materials in the licensed and license-exempt sectors. This is one. area in which the NRC and DOE safeguards lack comparability.

SECTION 3. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.

There have been a number of reported incidents where persons without authorization have brought firearms into protected areas of NRC-regulated sites. The Commission's current authority to prevent unauthorized weapons or other dangerous instruments to enter the site is limited. Although the NRC may impose sanctions against'the licensee for violations of its security regulations, there ls no federal law permitting the imposition of criminal sanctions against the person responsible for bringing the weapon or other dangerous instrument to the site.

Because of the potential danger to the public health and safety from nuclear theft or radiological sabotage that could result from the unauthorized introduction of weapons or other dangerous instruments to NRC regulated sites, the Commission is proposing that legisiation be enacted permitting it to promulgate regulations prohibiting the unauthorized introduction of

4 weapons into NRC regulated sites. Violation of the regulations would constitute a Federal crime, which (under section 2*29 c. of the Atomic Energy Act) could result in a fine or imprisonment, or both. Such legislation would assist our licensees in their efforts to safeguard licensed nuclear facilities and materials that must be protected against nuclear theft or radiological sabotage.

Facilities subject to certification by the Commission have been added to the provision.

This refers principally to the U.S. Enrichment Corporation.

SECTION 4. SABOTAGE OF NUCLEAR FACILITIES OR FUEL The proposed amendment would modify Section.236 of the Atomic Energy Act of 1954 to provide criminal sanctions for sabotage or attempted sabotage of a production, utilization, waste storage, waste treatment, waste disposal, uranium enrichment or fuel fabrication facility, during its construction where the action could affect public health and safety during the operation of the facility. The amendment would*also extend section 236 coverage to ali fuel fabrication facilities licensed or certified by the Commission.

Section 236, which makes sabotage or attempted sabotage of production or utilization facilities a Federal crime, was enacted in 1980, in response to a sabotage incident at the Surry nuclear reactor in Virginia. While the language of the present Section 236 could arguably be read to include plants which have been granted construction permits by the Commission, the legislative history strongly suggests that sabotage durir:19 the construction phase is not covered by the section.

The need for this legislation is illustrated by an incident which was discovered in 1984 at a plant under construction. There a bag containing some parts was found inside a pipe which had been welded closed after it.had undergone severall pre-welding checks. While this incident was determined to be negligence rather than sabotage, it demonstrated that an act of sabotage

5 during construction could potentially have an adverse affect on public health and safety.

Sabotage during the later stages of construction, particularly during pre-:<>perational testing, is of

.special concern because of the possibility that it might not be discovered prior,to operation since most of the inspections which could have led to the discovery of the sabotage would have already taken place. Thus, the Commission believes that enacting criminal sanctions to help deter such sabotage is warranted to pr9teci more adequately the public health and safety.

SECTION 5. PERIOD OF COMBINED LICENSE.

Historically, under the Atomic Energy Act of 1954, the Commission licensed nuclear power plants in a two-step process, i.e., a construction permit was issued first, and an operating license followed. Section 103 c. of the Atomic Energy Act of 1954 provides a statutory duration*

limitation of 40 years for an operating license. The 40 year period commences when the operating license is issued by the Commission.

After years of experience with the two-step process, it became clear that a one-step combined license would lend itself to a more efficient licensing process, and the Commission published regulations authorizing the*issuance of such licenses in 1989. As the result of a court challenge to those regulations, the Congress made clear, in the Energy Policy Act of 1992, that the Commission has the authority to issue combined licenses. This was done by adding a new subsection b. to section 185 of th~ Atomic Energy Act, directing the Commission to issue a combined construction and operating license for a production or utilization facility if, after holding a public hearing, the Commission determines that the application contains sufficient information to support the issuance and there is reasonable assurance that the facility will be constructed and operated in conformity with the license, the Act, and NRC rules and regulations. Under section 185 b., the Comm ission is required to identify within the license the inspections, tests,

6 and analyses that the licensee must perform, and the acceptance criteria that, if met, will provide reasonable assurance that the facility has been constructed and will be operated in conformity with the license, the Act and NRC rules and regulations. Following issuance of the license, the Commission must ensure that the inspections, tests, and analyses identified in the license are performed and, prior to operation of the facility, the Commission must make a finding that the prescribed acceptance criteria are met.

The amendment did nct rriake any express provision regarding the date on which the 40-year period of operation under a combined license would commence. Since under the process that involves a separate construction permit and operating license, the operating license for a facility becomes effective immediately upon issuance of such a license, the duration of operation of the facility can be a full 40 years. The potential duration of operations under a combined license should be no less, and achieving that goal is the purpose of the proposed amendment.

Therefore, the proposed amendment would make clear that the term of operation of a combined license commences when the Commission finds that the acceptance criteria prescribed in the license have been met. This approach is most consistent with the original

.Congressional intent in providing for a combined license, that is, to make the licenslng process more efficient and expeditiou~.

SECTION 6. EL.IMINATION OF FOREIGN OWNERSHIP PROHIBITiONS.

Sections 103 d. and 104 d. of the Atomic Energy Act prohibit the Commission from issulng a llcense for construction or operation of utilizatl:on {acilities (power and research reactors) to an alien or any other entity wif the Commission knows ar has reason to believe it is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government."

7 The proposed amendment would remove this unqualifted bar on foreign ownership. This change would not alter either the restrictions on foreign ownership of production facillties or the requirement that the Commission not authorize issuance of any license to a new owner if it finds that such ownership would be inimical to the common defense and security or to the health and safety of the public.

The restriction on foreign ownership of utilization facilities dates back to the original enactment of the Atomic Energy Act of 1954 (a somewhat similar provision was contained in the Atomic Energy Act of 1946). but at that time commerclal development of nuclear power was in its incipient stages. Today, the situation is quite different. Commercial use of nuclear power is common in many countries, and the underlying technology is widely known and no longer requires the protection that may have seemed appropriate 45 years ago. Such a restrlction is virtually non-existent with respect to other energy sources.

Further, since the amendment would make no change in the requirement that the Commission not authorlze lssuance of any license to a new owner if It find_s that such ownership would be inimical to *the common defense and security or to the health and safety of the public, there would be ampie protection from takeovers by unacceptable foreign sources even with the elimination of the restriction on foreign ownership.

SECTION 7. ELIMINATION OF NRC ANTITRUST REVIEWS Section 105 c. of the Atomic Energy Act requires antitrust reviews by the NRC in connection with applications for a Commission license,to construct or operate a commercial utilization or production facility. At the time the Commission was given this authority in 1970, the Congress believed that the Commission would be in ai unique posltion to ensure that the licensed activities of nuclear utilities could not be used to create or maintain a situation

8 inconsistent with the antitrust laws. However, the situation has changed considerably since that time.

NRC's antitrust revlews are now duplicative of other agencies' efforts. ln 1992, the Con~ress passed the Energy Policy Act, which amended the Federal Power Act to substantially enlarge the authority of the Federal Energy Regulatory Commission (FERCJ to prevent and mitlgate potential and existing abuses of market power by electric utllities, including nuclear utilities. As a result, FERC now possesses statutory authorlty overlapping that of the Commission under section 105 c. of the Atomic Energy Act to prevent and mitigate potential and existing anticompetitive behavior by electric utilities that utilize nuclear power plants. ln addition, as reflected in section 105 a. of the Atomic Energy Act, the Attomey General possesses broad authority to enforce nuclear utility compliance with the antitrust laws. Thus, retaining the Commission's antitrust authority would result in duplicative regulation, which is wasteful of the NRC's resources and contrary to the objective of streamlining govemment.

The proposed amendment would eliminate NRC antitrust reviews of applications for a license (including applications for a combined license o:r a license transfer) that are pending on, or that are filed after, the effective date of the amendment to construct or operate a utilization facility. It would leave intact existing antitrust license conditions and the Commission's authority to enforce these existing conditions or otherwise take actions with respect to them. At the same time, the amendment would not relieve any person from compliance with the antitrust laws, and would not change the requirement that the Commission report to the Attomey General any information it m~y have with respect to violations of these laws. Thus, passage of the proposed amendment would not affect in any meaningful way the enforcement'of antitrust laws with respect to NRC-licensed activities.

SECTION 8. ACTIONS RELATING TO SOURCE, BYPRODUCT AND SPECIAL NUCLEAR MATERIAL The proposed amendment would establish that NRC's cleanup standards are adequately protective for purposes of the Comprehensive Environmental Response, Compensation, arid Liability Act, and that those standards govern the cleanup of sites and material licensed by the Commission, or by a State that has entered into an agreement pursuant to section 274 b. of the Atomic Energy Act. The Nuclear Regulatory Commission has, by regulation, established the radiological criteria for the termination of licenses that fall under the regulatory authority of the Commission. These regulations provide a clear and consistent basis for determinlng the adequacy of remediation of residual radioactivity resulting from the possession of Atomic Energy Act material. Creating an additional cleanup standard, whether by Federal statute or by regulation, may make it extremely difficult for the cleanup of a site containing residual radioactivity to reach finality, and the potential cleanup liability of parties who have been associated with an affected site may be viewed as being limitless in duration and amount.

The proposed amendment has implications for States that have entered into an agreement with the Commission under section 274 of the Atomic Energy Act, which provjdes a program under which an interested State may enter into an agreement with the Commission (thereby becoming an Agreement State) for the Commission to discontinue its authority over radioactive material within the State. An Agreement State may undertake to regulate the termination of Atomic Energy Act material

. licenses, requiring it to issue radiological criteria for the termination of licenses. The State's criteria must be at teast as stringent as the Commission's *in order for the State program to be found compatible, and may be more stringent than the Commission's. (The Commission retains continuing responsibility to review the State's regulatory program to ensure, among other things, that the program is adequate to protect the public health and safety and is compatible with the Commission's program.) The proposed

10 amendment would avoid the development of conflicts between the standards prescribed by Agreements States and additional cleanup standard created by Federal statute or regulation.

While the proposed amendment would make it clear that the standards issued by the Commission and Agreement States would govern cleanup of Atomic Energy Act material at licensed facilities, the Commission or an Agreement State could invoke the appllcation of CERCLA ln clrcumstances where it is necessary to effect adequate cleanup. That could conceivably be the case in rare cases where.the regulatory efforts of the NRC or an Agreement State have not accomplished results that are satisfactory to the NRC or the Agreement State.

The proposed amendment of section 101 (10)(K) is applicable to the notification and liability provisions of sections f02 and 107 of the Comprehensive Environmental Response, Compensation, and Liabllity Act. The amendment would make it clear that the exceptions to these provisions that apply to Federally permitted releases of Atomic Energy Act material by a licensee also apply to* a release of Atomic Energy Act material after a license has been terminated. This would ensure that releases presenting the same risk receive the same treatment under the notification and liability requirements o.f the Act.

SECTION 9. HEARINGS ON LICENSING URANIUM ENRICHMENT FACILITIES The proposed amendment would improve the hearing process associated with NRC licensing of uranium enrichment facilities by eliminating the requirement for such a hearing to be "on the record". ln fact, the only statutory requirement for "on the record" hearing in the Atomic Energy Act is with respect to licensing of a uranium enrichment facility. Hearings that are required to be "on the record" must conform to the formalities prescribed by sections 554, 556, and 557 of the Administrative Procedure Act. Such proceedings can be inefficient, protracted,

11 and costly. Not infrequently,

. they are associated with*unwarranted delays in the proceedings, and they reduce the ability of the presldlng officer to control the proceedings.

Ellmination of the "on the record" requirement with respect to licensing of uranium enrichment facilities would provide the NRC with more flexibility in detennining the appropriate hearing process in such proceedlngs. The Commlssion has adopted both formai hearing procedures (10 C.F.R. Part 2, Subpart G, Rules of General Applicabllity) and lnformal hearing procedures (10 C.F.R. Part 2, Subpart L, lnfonnal Hearing Procedures for Adjudications in Materials and Operator Licensing Proceedings). lnformal hearings are not wlthout safeguards for the parties, who still have an opportunity to present their views, but they can be streamlined to be more efficient and expeditious than formai hearings. The process for licensing of uranium enrichment facilities may be better served by informal hearing procedures, but such procedures cannot be adopted so long as the "on the record" requirement remains in the statute.

SECTION 10. CONTINUATION OF COMMISSIONER SERVICE.

Section 201 of the Energy Reorganization Act provides for the establishment of the Nuclear Regulatory Commission as an independent regulatory agency composed of five members who are appointed by the President, by and with the advice and consent of the Senate, for a term of five years. A quorum for the transaction of business by Commission members consists of three members. There is no provision ln the Act for the conduct of business by Commission members in the situation where the Commission consists of less than three members.

At times, this has left the Commission without a quorum. This occurred most recently during the period July 1, 1995*to February 14, 1996, when only two Commissioners were in

.place at the Nuclear Regulatory Commission. While the agency was able to conduct business

12 during this period, the situation is awkwa'rd and it is contrary to the legislative determination that the agency should be headed by a collegiate body. By way of contrast, most inde~ndent agencies' organic legislati.on contalns a carry-over service provision that usually has the effect of permitting the continuation of a quorum, even when there is a hiatus in time between the termination of members' appointment periods and their reappointment or the appointment of new members.

Though the amendment of section 201 to permit members whose term of office has been completed to serve for a limited period would not ensure a quorum, it would have that effect in most instances. It has been the experience of the agency that the situation of lack of a quorum usually results from the inability tq have successor Commissioners appointed immediately upon the expiration of .the prior Commissioners' terms. The problem would be solved in most instances by a provision that would allow Commissioners to continue to serve until (a) their successors have taken office, or (b) if earlier, the expiration of the next session of Congress subsequent to the expiration of the fixed term of office of the Commissioner. A holdover member could be removed at the President's discretion.

SECTION 11. GIFT ACCEPTANCE AUTHORITY.

From time-to-time, various non-Govemmental sources have offered the Nuciear Regulatory Commission gifts of personai property that would facilitate the work of the Commission. Such offers have included, for example, provision of expensive technical publications dealing with nuclear power plant technology; provision of specialized training for NRC employees; provision of nuclear power plant equipment samples for the purpose of educating NRC employees about their properties and uses; provision of electronic equipment to facilitate exchange of information with non-Govemmental parties who deal with the NRC. ln

13 some cases, the donor places only a modest value on the property offered, but in others the value placed on the property is high.

The acceptance of these types of offers can be of considerable benefit to the Commission. However, the Atomic Energy Act does not expressly authorize the Nuclear Regulatory Commission to accept gifts of property. This is in coritrast to the broad spectrum of Federal agencies that have such statutory authority, including independent regulatory agencies such as the Federal Communications Commission and the Consumer Products Safety

• Commission. A provision that woutd authorize the Nuclear Regulatory Commission to accept gifts would be useful, and could provide modest savings to taxpayers.

SECTION 12. OFFICE LOCATION.

Section 23 of the Atomic Energy Act now requires the Nuclear Regulatory Commission to "maintain an office for the service of process and papers within the District of Columbia." This requirement was enacted before the Commission's consolidation in Rockville, Maryland. Now, req'-'iring maintenance of a District of Columbia office for this purpose has little point.

• Commis$ion efficiency could be enhanced if there were no such statutory requirement.

FAX for 5/03/99 (Mid-day)

NOTE TO: Chairman 3

/1i FROM: Mike ) / t /

For Your Action

1. Attached is a note and proposed vate from Evelyn on SECY 99-070, "lmplementation Plan for the Public Communications lnitiative." Recommend that you approve with comments.

D Approve D Disapprove For Your lnformation

1. Attached is the proposed seating chart for the Stakeholders' meeting tomorrow mornina.

(b)(5) 2.

(b)(5) 3.

Attachments:

As stated 2