ML19347D509
| ML19347D509 | |
| Person / Time | |
|---|---|
| Issue date: | 03/18/1981 |
| From: | Hendrie J NRC COMMISSION (OCM) |
| To: | Bush G W SENATE, PRESIDENT OF THE SENATE |
| References | |
| NUDOCS 8103260386 | |
| Download: ML19347D509 (32) | |
Text
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NUCLEAR REGULATORY COMMISSION a
WASHINGTON, D. C. 20565 O
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The Honorable George H. W. Bush President of the Senate g'
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Dear Mr. President:
Transmitted herewith is a Nuclear Regulatory Commission proposal in the form of a draft bill to amend the Atomic Energy Act of 1954, as amended, to authorize the Commission to issue an interim operating license _for a nuclear power plant, authorizing fuel loading and low-power operation and testing, in advance of the conduct or completion of an on-the-record evidentiary heating on contested issues.
The proposed legislation, which represents an extraordinary and temporary cure for an extraordinary and temporary situation, is set forth in Enclosure 1.
An analysis of the proposed legislation is set forth in Enclosure 2.
sets forth the proposed legislation in the form of a comparative text.
Under the Atomic Energy Act of 1954, as amended, no person may operate a nuclear power plant without first obtaining an operating license from the Nuclear Regulatory Commission.
Under existing law, a formal on-the-record evidentiary hearing must be held, and a decision rendered on the basis of that record, if requested by any person whose interest may be affected, before the Commission may issue an 6perating license.
In the past, the scheduling and processing of licensing reviews has typically provided sufficient time to enable the hearings to be completed and the license issued by the time the nuclear plant is completed and ready to operate.
For the first time, however, it appears that the hearing process for a significant number of
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nuclear oewer plants will last bevond the date when construction shoulf _
complete and the plants are ready to operate.
This situation is an indirect consequence of the Three Mile Island (TMI) accident, which required a reexamination of the entire regulatory structure.
After TMI, for a period of over a year-and-a-half, the Commission's attention and resources were focused on plants which were already licensed to operate and to the preparation of en action plan'which specified a discrete set of TMI-related requirements for new operating reactors.
During this period, utilities that ht.d received construction permits con-tinued to build the ar.thorized plants.
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2 The severe public interest impact of these delays has been discussed extensively before interested committees in the House an! Senate.
Although there may be differences of opinion on the precise overall impact of these delays, as well as in the dif-ferent estimates of the consequences for each of the plants, the delay costs now are generally estimated to range in the tens of millions of dollars per month for each completed plant.
The Commission'is making every effort to see that available resources are devoted to the completion of its licensing reviews of these plants, and that unnecessary delays in these hearings are avoided.
Under existing law, however, the Commission lacks the authority to authorize fuel loading and low power operation and testing on the basis of its safety and environmental evalu-ation; it must instead await the completion of the hearing process.
The result, for the plants most affected by TMI-related actions, is likely to be delays of at least several months in ultimate operation of the facilities, absent remedial action by the Congress.
The proposed amendment to subsection 189a of the Act would authorize the Commission, if it finds that such action is in the public interest in order to avoid the consequences of delay in the operation of a completed nuclear power plant, to issue an interim operating license authorizing fuel loading and low-power operation and testing of the plant in advance of the conduct or completion of any required hearing.
In all respects other than the completion of the hearing, the Commission would have to find that the requirements of all applicable law have been met prior to allowing such interim operations.
Thus, the public health and safety, common defense and security, and environmental findings would still have to be made, even though the public interest finding is made.
Furthermore, a hearing would still be held if requested by an interested person under section 189 of the Act.
The proposed amendment would simply provide that in such a case, the requested hearing could be held or completed after~ issuance of the license authorizing fuel loading and low-power operation and testing.
Moreover, any *.nterim license issued under this authority would be subject co any subsequent. findings and orders of the Commission after the conduct of any required hearing.
The authority to issue such interim licenses would expire on Decem-ber 31, 1983.
The effect of this proposed legislation would be to advance by at least several months the date of operation of the plants most affected by the TMI-related actions, where issuance of the operating license is contested.
The savings of time could be much more substantial in cases where testing showed the need for modification'
3 and further testing.
By placing a time limit of December 31, 1983 on the Commission's authority 'to issue such inter 3:a li-censes, the proposed legislation would assure that the relaxation of licensing requirements would be confined to those plants which have been most directly affected by the Commission's post-TMI actions.
Since the risks associated with low-power operation and testing are much smaller dhan those associated with normal full-power opera' tion, we believe that this authority, limited to the relatively few plants likely to be most affected by our TMI-related effort, represents a minimal intrusion on our usual review and hearing process.
The Commission'cannot, under existing law, take these measures to reduce the delay in the licensing of the affected plants.
The proposed legislation would result in very substantial cost savings for consumers in the service areas of the affected plants.
The proposed legislation deals essentially with matters of licensing procedures and, as indicated, would not alter any of the substantive standards and requirements of the Atomic Energy Act pertaining to the protection of public health and safety and the common defense and security or of NEPA.
In light of this, the Commission has concluded that the proposed legislation would not significantly affect the quality of the human environment.
Additional comments by Commissioner Ahearne and myself are enclosed.
Sincerely,,
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Joseph M. Hendrie
Enclosures:
1.
Draft Eill 2.
Analysis of Proposed Legislation 3.
Comparative Draft Bill 4.
Additional Comments of Commissioner Ahearne and Chairman Hendrie
DRAFT BILL To amend the Atomic Energy Act of 1954, as amended to authorize the Commission, upon determination Ehat such action is necessary in the public interest, to issue an interim operating license authorizing fuel loading, low-power opera-tion and testing of a nuclear power reactor in advance of the conduct of a hearing:
Be it enacted by the Senate and House of Representatives of the United States of A= erica in Congress Assembled, that subsection 189a of the Atomic Energy Act of 1954, as a= ended, is amended by adding af ter the final sentence in the subsection:
Notwithstanding any other provisions of this Act, the Commission may, upon determination that such action is necessary in the public interest in order to avoid the consequences of unnecessary delay in the operation of a nuclear power reactor, issue for such a facility an interim operating license authorizing fuel loading, and cperation and testing at power levels not to exceed five percent of rated full thcr=n1 power, in advance of the cor.Juct or com-pletion of any required hearing:
Provided, that any operating license so issued shall be subject to any
subsequent findings and orders of the Commission after the conduct of any required hearing; and provided further, that in al? other respects the requirements of the Atomic Energy Act of 1954, as amended, shall be met.
Prior to the issuance of any such inierim license, the Commission shall publish in the Federal Register a notice of its intent to issue the license, and shall provide an opportunity fer parties to the proceeding to comment on whether such action is necessary in the public interest.
The authority to issue such an interim license for a nuclear power reactor in advance of the conduct or completion of a hearing shall expire on December 31, 1983.
Analysis of Proposed Legislation Under the Atomic Energy Act of 1954, as amended, no person may operate a nuclear power plant w thout first obtaining an operating license from Ehe Commission.
Under existing law, a formal on-the-record public hearing must be held before issuance of any
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operating license if requested by any person whose interest may l
be affected.
The proposed amendment to subsection 189a authorizes the Commission, under the circumstances specified therein, to l
issue an interim operating license authorizing fuel loading and operation and testing at power. levels not to exceed five percent I
of rated full thermal power, in advance of the conduct or completion,
of hearings on the issuance of the full-term license.
1 This authority could be used only if all legal requirements applicable to a license for fuel loading and low-power testing and operation have been satisfied, with the sole exception of the requirement daat in a contested proceeding, operation can be authorized only after a decision based upon the record of a completed hearing.
These legal requirements include the Commission's findings as to public health and safety, the common defense and security, the environment, and antitrust considerations, as mandated by the Atomic Energy Act of 1954, as a= ended, the National Environmental Policy Act, and other applicable statutes.
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2 Under the proposed legislation, the Commission may exercise the authority to permit fuel loading and low-power operation and testing if it finds that such action is necessary in the public i
interest in order to avoid the consequences of unnecessary delay in the operation of the facility.
This public interest finding would be based on the consideration of the costs, ultimately borne by consumers, of having a completed nuclear power plant standing idle while awaiting the completion of dhe. earing on the full-term license.
These costs include the dollar costs of delay and of obtaining replacement power, and may also include the need for power from the facility and the energy equivalency of fossil fuel.
Any interim license issued under this authority will be subject to any subsequent findings and orders of the Commission after the conduct of the required hearing.
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before authorizing The proposed legislation require.s the Commission, issuance of a license for fuel lo ading and low-power operation and testing, to publish notice of its intended action in the Federal Register and to afford an opportunity for parties to comment on whether the intended action is necessary in the public interest.
Any final action of 'he Commission under this subsection is subject to judicial ri iew.
3 The authority granted by the proposed legislation will expire on Forasignifhcantnumberofnuclearpower December 31, 1983.
plants -- those most affected in the review process by Commission efforts to respond to the Three Mile Island accident -- this time period should permit the Commission, with the full cooperation of prospective applicants, to schedule licensing reviews and proceedings so as to avoid, wherever possible, situations in which completed plants stand idle while awaiting completion of licensing proceedings.
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Comparative Text Draft Bill Atomic Energy Act of 1954, As Amended i
Sec. 189.
Hearings And Judicial Review.--
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In any proceeding under this Act, for the granting, suspending, revoking, or amending of any license or con-struction permit, or application to transfer control, and in
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any proceeding for the issuance or modification of rules and regulations dealing with the activities of licensees, and in any proceeding for the payment of compensation, an award, or royalties under sections 153, 157, 186 c.,
or 188, the l
Commission shall grant a hearing upon the request of any l
person whose interest may be affected by the proceeding, and shall admit any such person as a party to such proceeding.
The Commission shall hold a hearing after thirty days' notice and publication once in the Federal Register, on each-application under section 103 or 104 b.
for a construction permit for a facility, and on any application under section 104c. for a construction pernit for a testing facility.
In cases where such a construction permit has been issued following the holding of such a hearing, the Commission may, in the~ absence of a request therefor by any person whose interest may be affected, issue an operating license or an amendment to a construction permit or an amendment to an i
1 operating license without a hearing, but upon dhirty days' notice and publication once in the Federal Register of its intent to do so.
The Commission may dispense with such
2 thirty days' notice and publication with respect to any 1
application for an amendment to a construction permit or an amendment to an operating license upon a determination by the Commission that the amendment involves no significant 4
hazards consideration.
Notwithstanding any other provisions of this Act, the Commission may, upon determination that such action is necessary in the public interest in order to avoid the consequences of unnecessary delay in the operation of a nuclear power reactor, issue for such a facility an interim operating license authorizing fuel loading, and t
operation and testing at power levels not to exceed five percent of rated full thermal power, in advance of the conduct or completion of any required hearing:
Provided, that any l
operating license so issued shall be subject to any subsequent findings and orders of the Commission after the conduct of l
any required hearing; and provided further, that in all other respects the requirements of the Atomic Energy Act of 1954, an amended, shall be met.
Prior to the issuance of any such interim license, the Commission shall publish in the Federal Register a notice of its intent to issue the license, and shall provide an opportunity for parties to the proceeding to comment on whether such action is necessary in the public interest.
The authority to issue such an interim license for a nuclear power reactor in advance of the conduct or completion of a hearing shall expire on December 31, 1983.
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Enclosute 4 Additional Co=ments of Commissioner Ahearne I accept the desirability of low-power interim licensing, given the problems we now face.
If improve =ents in the licensing process cannot be made, then full-power interin licensing may be necessary.
However, it is time for fundamental reforms in the role and practice of the 'aaring process.
In particular, the Co= mission should direct Boards to serve to decide only issues that are raised by the parties, and of those, only those of substance.
The threshold for admitted contentions should be significantly raised, sua sponte authority should be limited, and the Boards should be authorized to =anage the proceedings with a strong hand.
Failing these changes, I expect another Cc= mission will be requesting full-power interin licensing legislation.
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O Additional Comments of Chairman Hendrie l
I strongly support the legislative proposal made here j
for authority to issue interim operating licenses for fuel loading and low-power operation and testing.
It would, in l
effect, advance the operating schedules of the affected units by several months and result in substantial savings for consumers.
I But it is also my view dhat the authority for interim licensing could reasonably be extended to incl ide full-power operation, with a further substantial reduction in cost impacts.
This authority would be needed with regard to only a small number of units, I estimate nine at most and more probably no more daan six, that are particularly severely affected by the licensing delays following the Three Mile Island accident.
For these units, even the low-power interim license authority, together with all the measures the Commission can take under existing law, will probably not be enough to avoid licensing decision delays.
- Indeed, one of these units is already experiencing such a delay.
The full-power interim licensing authority would remedy daat situation for most of ' hese units and would minimize the t
delay for the unit already affected.
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