ML19343C389

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Transmits Draft Bill to Amend Atomic Energy Act of 1954 to Clarify That Commission May Issue License Amend Which Involves No Significant Hazards Consideration W/O Holding Prior Hearing
ML19343C389
Person / Time
Issue date: 03/11/1981
From: Hendrie J
NRC COMMISSION (OCM)
To: Oneill T
HOUSE OF REP., SPEAKER OF THE HOUSE
Shared Package
ML19343C387 List:
References
NUDOCS 8103240013
Download: ML19343C389 (2)


Text

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j o aro g jo UNITED STATES

(%,3,c(gg NUCLEAR REGULATORY COMMISSION yr " /yg WASHINGTON, D. C. 20555

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March 11, 1981 CHAIRMAN The Honorable Thonas P. O'Neill, Jr.

Speaker of the United States House of Representatives Washington, DC 20515

Dear Mr. Speaker:

Transmitted herewith is a Nuclear Regulatory Commission legislative proposal in the form of a draft bill to amend the Atomic Energy Act of 1954, as ar. ended, to clarify that the Commission may issue a license amendment, where no significant hazards consideration is involved without holding a prior hearing and for other purposes.

A draft bill is in Enclosure 1.

An analysis of the proposal is in Enclosure 2.

A menorandum explaining the need for

~

the proposal is in Enclosure 3.

This proposal is in response to and seeks to overturn the decision of the U.S. Court of Appeals for the District of Columbia Circuit in Sholly, et al.

v. NRC, et al, No. 80-1691 (November 19,1980).

The court held that the MRC may not issue a license amendment even if there is no significant hazards consideration when an interested person has filed a request for a hearing under Section 189(a) of the Atomic Energy Act, 42 U.S.C. 2239(a). The deci-sion could also implicate the Commission's authority to issue immediately effective license amendments and orders when the public health, safety, and interest or the common defense and security requires.

The court's decision mandating a prior hearing on demand on matters insignificant to the public health and safety seriously an'd immediately encumbers the regulation of

- nuclear power, and puts at risk a substantial number of nuclear power plants which would either have to be shut down or operate at reduced power if they are not accorded the authority sought in pending license amendment requests.

The number of power plants affected will fluctuate over time depending upon which plants have license amendment applications pending and the nature of the license amendment requests.

The proposed -legislation, if adopted, would amend Section '189 to clarify that the Commission may issue a license amendment which involves no significant

- hazards consideration without first holding a hearing.

The bill would also clarify that Section 189 does not limit the NRC's authority to take immediate action-by amendment or order to protect the public health, safety, and interest or-common defens'e and security. This legislation is needed to overturn the-adverse impacts of the Sholly decision on the regulation of nuclear energy.

Unless overturned, this decision raises the prospect of a substantial curtail-ment of. nuclear power plant rperation for reasons which in the Commission's view are unrelated to the safety of the facility.

We do not believe that 810824_0c 6

The Honorable Thomas P. 0'ileill, Jr.

2 prospect to have been intended by Congress in enacting section 189 and urge approval of the proposed tiRC legislation.

' Sincerely,

/(LL @cdd

' Joseph 11. Hendrie Enclosu res:

1.

Draft Bill 2.

Analysis 3.

tiemorandum

.