ML20126G891

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Trip Rept of DOE Advisory Panel on Alternative Means of Financing & Managing Radwaste Mgt Facilities Sixth Meeting on 840729-31 in Portland,Or.Discussions Focused on Evaluating Suitability of Govt Entities for Waste Mgt
ML20126G891
Person / Time
Issue date: 08/06/1984
From: Numark N
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To: Bunting J
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
Shared Package
ML20126G220 List:
References
FOIA-85-170 NUDOCS 8506180178
Download: ML20126G891 (14)
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  1. g/j MEMORANDUM FOR: Joseph 0. Bunting, Chief Policy and Program Control Branch Division of Waste Management FROM: Neil J. Numark Integration Section Policy and Program Control Branch SUBJECT- REPORT ON TRIP TO ATTEND AMFM PANEL MEETING On July 29 to 31, 1984, I attended the sixth meeting of the Department of Energy's Advisory Panel on Alternative Means of Financing and Managing ( AMFM)

Radioactive Waste Facilities, which was held in Portland, Oregon.

The discussions focusped on evaluating the suitability of selected government and corporate entities for waste management purposes, based primarily on 13 tests which the Panel developed of a " dedicated" waste management organization.

These tests are listed in Enclosure 1. The tests are being applied to 10 organizational types identified by the Panel. These are listed in Enclosure 2, along with a list of example organizations of each type which have been profiled and examined by the Panel. The Panel is dividing into work committees to complete these evaluations for discussion at the next meeting, scheduled for August 25 to 27 in San Antonio. Members of the Panel made it clear that they are willing to recommend organizational changes which would require legislation to implement.

Chairman O'Scannlain requested preliminary views of each of the individual Panel members on the organizational alternatives. Based on the discussion that followed, it appeared that most members favor either an independent federal agency or com,ission or some type of government corporation. Several members felt that different types of organizations should be considered for the different phases of the program.

Limited attention was given to financing options; Panel members have yet to meet with investment bankers to discuss possible alternatives to the 1 mill /kwh fee system, and how such alternatives might fit in with the various organization options being considered. This will be taken up in subsequent meetings. Also discussed briefly were results of the Panel's meetings and discussions with officials from waste management organizations in European countries.

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A report outline was distributed and discussed, and is provided in Enclosure' 3

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(revised at the Portland meeting). The first three chapters of the report have

- been drafted and were also distributed. The Panel intends to submit its report

~' to the Secretary by October 15. Since the drafting of the report is well underway, the Pane 1~does not intend to receive further briefings, such as from Mr. Davis. If we have additional concerns to express, however, I would recommend sending a letter to the Panel Chairman for their consideration.

Howard Perry is no longer the DOE liaison official to the AMFM Panel. . Harold Brandt has taken over this role. Aside from DOE, the Panel staff and myself, there were only a couple of local reporters in attendance at the Portland meeting and no public coments.

I am preparing an information paper for the Comission to brief them on the AMFM Panel's activities and upcoming staff actions to review the report. In my view we will need outside assistance to evaluate the impact of organizational alternatives on NRC's regulatory responsibilities.

Finally, a biography of the AMFM Panel members is provided in Enclosure 4.

CMiBantut yc' Neil J. Numark l

, Integration Sect on' y Policy and Program Control Branch L

Enclosures:

1. AMFM Tests of Dedicated Waste Management Organization
2. Types of Organizations being l Considered by AMFM Panel i and Examples 1 3. Oraft Report Outline
4. Biography of the AMFM Panel Members

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.- ' . . - Enclosure 1 AMFM TESTS OF A DEDICATED WASTE MANAGEMENT ORGANIZATION

1. Mission-oriented
2. Ability to maintain credibility with all stakeholders
3. Stability and continuity of process
4. Programmatic authority (including funding)
5. Accessibility
6. Responsiveness
7. Political accountability
8. Immunity from political interference
9. Financial accountability (auditability)'
10. Technical excellence
11. Ability to stimulate cost effectiveness (including incentives)
12. Ease of transition between program phases (siting, construction, operation)
13. Ease of transition to any new organization from the current organization e

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Enclosure 2

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TYPES OF ORGANIZATIONS BEING CONSIDERED BY AMFM PANEL AND EXAMPLES o,
{ Examples Panel

,; Category Types of Organization Has Profiled Subordinate to Cabinet 1. Presentorganization(OCRWM) --------

Level Office

2. Subcabinet office Bureau of Reclamation EPA Superfund Office -

ll 3. Administration responsible Rural Electrification Admin.

!! to a cabinet department Bonneville Power Administration

j Army Corps of Engineers
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!l Equal to Cabinet 4. Federal executive agency NASA

Level Office 1

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5. Independent Federal comission AEC Government Corporation 6. Government-owned and controlled Synfuels Corporation

,i corporation TVA

. US Postal Service

7. Mixed government / private corp. Amtrak
8. Government-chartered private corp. COMSAT .

Private Corporation 9. Utility-type private organization Ohio Valley Elec. Corp.

j . Middle South Utilities

10. Private corporation Waste Management, Inc.
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LWLDLR Q f 'butline Accepted by Panel 6/28/84 DRAFT REPORT OUTLINE I. Introduction i A. Background Statement of nuclear power / waste status including mention of defense wastes B. Panel creation and n'ission

1. NWPA
2. OCRWH
3. Panel mission
4. Panel organization and approach
a. Briefings

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b. Subcommittees
c. Issue papers
d. Open public meetings
e. Decision-making process II. Financing considerations A. Utility fee structure B. Waste fund management C. OMB/ Congressional process D. Incentives for efficiency III. Organizational considerations ,

A. Characteristics of waste management

1. Service business
2. Monopoly
3. Capital intensive 4' . Negative mission

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5. Distinct phases,

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B. Objectives

1. Technical competence (safety)
2. Public confidence .
3. . Adequate financing

,4. Cost effective management

5. Timely completion
6. Safe transportation C. Organizational tests
1. Mission-oriented
2. Ability to maintain credibility with all stakeholders
3. Stability and continuity of process
4. Programmatic authority (including funding)
5. Accessibility and responsiveness
6. Internal flexibility to allocate and reallocate organizational resources (including ability to hire and fire)
7. Political accountability
8. Financial accountability (including auditability)
9. Technical excellence 10 Ease of Transition Between Phases D. Organizational alternatives -
1. Present organizational structure
2. Sub-cabinet office i ,
3. Administration responsible to a cabinet department
4. Federal executive agency
5. Independent federal commission
6. Covernment-controlled corporation
7. Mixed government-private corporation
8. Government-chartered private corporation
9. Utility-type private orsanisation'

L IV. Findings and conclusions A. Design criteria approach

1. Hatrix evaluation (mechanical / quantitative) .-
2. Judgemental (qualitative analysis)

B. . Results of the analysis V. Transitional considerations VI. Recommendations VII. Appendices A. Activities of panel .

B. . European experiences C. Profiled organizations D. ' Technical appendices (extracted from our trip and brochures)

1. Definition (wastes)
2. Facilities E. Briefings / papers /public input F. Issues not addressed by panel
1. Technical
2. Institutional i .

l 3. Economic

4. Transportation
5. Incentives
6. Other

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l ADVISORY PANEL ON

! ALTERNATIVE MEANS OF

! FINANCING AND MANAGING

RADIOACTIVE WASTE FACILITIES (AM/FM PANEL)

Mission of the AM/FM Panel The Advisory Panel on Altemative

  • Means of Financing and Managing

, Radioactive Waste Facilities was asked by the Secretary of Energy in December 1983 to conduct a study pursuant to Section 303 of the Nuclear

, Waste Policy Act of 1982 (Public Law 97-425). The mission of the Panel is to study and report to the Secretary its findings and recommendations with regard to alternative approaches to financing and managing the construction and operation of civilian radioactive waste management facilities.

The main thrust of this study is to identify and evaluate existing and potential organizational structures and financing mechanisms for the safe, long term isolation of high level ,

radioactive wastes and spent nuclear fuel with a high degree of public confidence. Consideration shall be given to existing and new Federal agencies, special Boards or Commissions, quasi governmental entities, private corporations or consortiums, and combinations thereof. The Panel's report will include analysis of the advantages and disadvantages of alternative approaches.

It should be clearly understood that the AM/FM Panelis NOTinmind in the siting of radioact/w weste repositories or other nuclear facilities. Nor willits report to the Secretary of Energy make any recommendation as to the pros

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and cons of one repository site or i

locale as compared to others.

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- Nuclear Weste Policy Act of 1982 m ren ee f m per we our Since the advent of commercial nuclear power reactors nearly 30 years ("j" lcyonemted i electricity sold by t

u t e gr i voume igh leve .

Both the Nuclear Wasta Policy Act and radioactive wastes in the United the DOE program guidelines provide States. By mid 1984 there were 80 kr broad public irwolvement in nuclear power plants in operation and ,

formulating and carrying out the another 40 licensed for construction. it mpository program. Special after; tion is is estimated that, by the end of this century, about 800,000 cubic feet of given to States and incian tribes which spent nuclear fuel assemblies are potentially impacted by candidate repository sites.

(containing some 50,000 metric tons of heavy metal) will have accumulated in the U.S. Section 303 of the Act Because of its relevance to the AM/FM Panel, it is worth excerpting a portion Responding to this situation, President of Section 303 of the Act, which Reagan signed the Nuclear Waste section is entitled " ALTER i

Policy Act of 1982 on January 7,1983. MEANS OF FINANCING.', NATIVE In part, this This legislation provides for the orderly - sedon mquires the Secretary of development of repositories for the

! Energy to , undertake a study wrth .

)- disposal of high. level radioactive waste and spent nuclear fuel and for related respect to alternative approaches to 3

managing the construction and purposes. The Act requires the operation of all civilian radioactive Department of Energy (DOE) to site, license and operate such repositories waste management facilities, including in a manner that "will provide a the feasibility of establishing a corporation for such purposes.,,pnvate reasonable assurance that the public and the environment will be adequately protected. . ." It also Formation of the AM/FM Panel To conduct the Section 303 study, the establishes a series of milestones Secretary chose to establish an whereby the first repository will be in operation by 1998. (unpaid) advisory body compri highly qualified citizens from gig ,

13 throughout the United States. $ .

Within DOE the Office of Civilian Accordingty, the Advisory Pamita Radioactive Waste Management has prime responsibility for siting, Ahemaem Means of Financfj and

- Managing Radioactive Wasw e acilities i licensing, constructing and operating geologic repositories for the safe, was officia!!y appointed on Deyber 16,1983, and held l*s first meet a in environmentally acceptable disposal of radioactive waste. This program is January 1984. The Panel's t rapj} v? i financed from fees paid by utilities recommendations should be .

operating nuclear reactors, with a transmitted to the Secretar i before the end of the year.y uf Gregy 2 3

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  • 1 Penel Membem' Bachgeounda the Board. Prior to joining the firm in

! The members of the Panel represent a 1979 he was Director of the Nuclear i diverssty of experience, geography, and Engineering Program at the University I professional / institutional interests and of Texas Ibr some 10 years, and expertise. Following are brief -

served as a consultant to Federal and bacligrounders on these individuals. State agencies, utilities and industrial starting with Diarmuid F. O'Scannlain, concoms. An author of numerous who was designamd by th Secstary . mchnical publications, he is cuymndy a f to serve as Chairman of the AM/FM member of the Nuclear Committee of j Panel. the Texas Energy Advisory Council and t the Conservation Commission of the j Diarmuld F. O'Scannlain of Portland, World Energy Conference. He received  ;

Oregon, is a senior partner in the law a B.S. In chemical engineering from  ;

firm of Regen, Roberts, O'Scannlain, Rice University and a Ph.D. In nuclear Robertson & Neill. Except for a brief engineering from Cornell University in period of public service, he has been IE j a practicing attorney engaged in corporate and regulatory law practice Brig. Gen. Mahlon E. Gates, USA d for the past 21 years. In 197173 he (Ret.) of San Antonio, Texas, is Senior  !

I served as Public Utility Commissioner Vice President Operations for 7 of Oregon, and as Director, Oregon Southwest Research Institute. During j I Department of Environmental Quality, his more than 40 years of Federal  ;

in 1973 74. He was a member of the service, he was a combat commander i Oregon Nuclear and Thermal Energy n Burma in World War 11 and served

! Council in 1971 74. Mr. O'Scannlain as Commanding General, U.S. Army

was invited to serve on the Reagan Support Command, and Director of ,

Administration's Department of Energy i

Transition Team in 1980 81, and Construction in Vietnam in 1966-67.

i Between the two wars he occupied key subsequently was team leader on the military positions in Europe and Iran, j Energy Thsk Force of the President's and in the Office of the Joint Chiefs of ,

i Private Sector Survey on Cost Control Staff. His involvement in the nuclear

! (Grace Commission). He is a member field began with his assignment to the

! of the Republican National Committee. Corps of Engineers' Manhanan i Mr. O'Scannlain graduated from St. District, Oak Ridge, Tennessee, in j John's University and camed his J.D. 1945 47. He subsequently held degree from Harvard Law School in i.mportant posts involving military

1963, nuclear applications, the last being for l
  • 10 years as Manager, Nweda i E. Linn Deper, Jr, of Beaumont, Operations Office, U.S. Department of

! Thuas, is Senior Vice President - Energy, from which he retired in 1982.

! External Affairs for Gulf States Utilities He is a graduate of the U.S. Military

! Company, as well as serving as Vice Academy at West Point and the ,

Pmsident Nuclear Technology and as University of Illinois where he received i Tbchnical Assistant to the Chairman of his MSCE in 1948.

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I l Rodman D. Grimm of Washington, positens with ITT Rayonier anl

D.C., is President of DGR Investment several business firms and f l Corporation and has 20 years of associations and holds B.A. and M.B.A. degrees from the University of experience'in securing, organizing, l Washington,

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managing, and financing large projects .

in both the govemment and private i

, sectors. Having assisted in preparing -

Bastnam UN "* of Modesto, l Califomia, is President and Chief ,

agency, OMB and Congressional budget submissions for the Energy Operating Officer of CONSUMER l l AI.ERT, a nationwide membership l Research and Development Mministration, he participated in the organization engaged in research, education and legal activities based on organization and activation of the

! free market principles. A public Department of Energy. He was an l i

l active member of the Reagan Mministration's 1tansition Team, speaker, writer and public inte '

l including preparing policy papers on the U.S. Senate for the Conservative energy, environment and deregulation

  • Party in New Wrk, and campaign l l

and assisting the Synthetic Fuels manager and special assistant 1976 77.

to U.S.

Corporation transition. He has a broad Senator James L Buckley in range of successful experience in She served as Secretary of the New energy marketing and consulting,large Wrk State Conservative Party and as a l

! project financing, domestic and foreign director1975-40. of theShe American was appointed Conservat marketing, and environmental Union in i l

j consulting. by President Reagan to head Consumer Product Safety Commission Bruce W. Johnson of Seattle, in 1980, and presently serves on the Washington, is presently Chief l j Operating Officer of Sealaska Mministrator's Tbxic Substance Advisory Committee of the l Corporation, a diversified enterprise Environmental Protection Agency. She f which stemmed from the Alaska Native has participated in statewide consumer t l Claims Settlement Act.

Chem Nuclear Systems Inc. In 1971 He founded affairs initiative campaigns in New Wrk j and Califomia.

i and served as its top official until it j ' was acquired by Waste Management  ;

Dr.11erry R. Lash of Springfield,  ;

! inc. In 1983. Chem Nuclear dealt ,

Illinois,is Deputy Director of the lilinois

' extensively with the treatment, Department of Nuclear Safety. This f packaging, tra6, Zs and storage . agency is responsible for nuclear of radioactive wastes, and was a major emergency planning, radioactive ,

contractor in the Three Mlle Island clean-up. Mr. Johnson has been active monitoring, and the regulation of  !

with the Atomic industrial Forum and radioactive wastes and waste i

has presented a number of papers on shipments within lilinois. A former I

l the nuclear fuel cycle. Prior to entering  :

l the nuclear field, he held important 7 ,

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l 1 Dr. S. Fred Singer of Charlottesville, -

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consultant on nuclear and energy Virginia, is Visiting frofessor at ,

policy, Dr. Lash held key posioons with George Mason Unfersity in Fairfax,  !

Virginia, and is probently on leave as ,

the Scientists' institute forThe Public information in New Wrk City, Colorado, , Professor of Environmental Sciences

and member of the Energy Policy Meystone Center near Dillon, Studies Center of the University of and the Natural Resources Defense Virginia. A geophysicist, he has held

' Council in San Francisco. He has .

important academic posts and served on numerous sc,,,Tr., and

, scientific advisory committees and has consultant positions with government l i

gained nationaliWN in the area and industry. A former Deputy j of radioactive waste managemern. A Assistant Secretary of the Interior and Deputy Assistant Administrator of the vis&* of Reed College, he earned Environmental Protection Agency, he j

M.Ph. and Ph.D. degrees from the currently serves o'1 the State Yale University Department of

, Molecular Siophysics and Biochemistry Department Science Advisory

in 1967 and 1970. Committee on Oceans and
Intemational Environmental and Scientific Affairs, the White House Acid 1

Melvin Sampeen of Wapato, Washington, nas been an elected Rain Peer Review Panel, and as Vice i f Chairman of the National Advisory I l

. member of the Dibal Council of the Commhtee on Oceans and f

Whims indian Nation since 1971. Atmosphere. He holds A.M. and Ph.D.

Because of its close proximity to the l rees in physics from Princeton and l U.S. Hanford Reservation, the Wkima

! Indian Nation has for many years a .Sc. (honorary) from Ohio State l University. t i

taken a keen interest in the Hanford l nuclear installations and radioactive .

David W. Stevens of Olympia, l l waste management programs. Mr.

. Sampson has been a leading tribal Washington, is Special Assistant for l t authority and spokesman in this Energy and Natural Resources to ,

j regard. He serves as Ribal Chairman Govemor John Spellman of l of the Legislative and Health, Washington State. He represents the Employment, Welfare, Recreation and Govemor on the State Board of  ;

Natural Resources, chairs the State Oil

Wuth Activities Committee and as a and Gas Conservation Committee, and
member of the tribes' Special Tax -

l Committee. In addition to his chairs the Northwest ive l Compact on Low Levet affiliations with various civic i organizations and indian todoo . Wastes. He also serves on the State l associations, he has represented Working Group on High Level  ;

Radioactive Waste Management and t Indian besith and social service with the Energy and Environment interests on a number of national and l regional policy and advisory boards. Committee of the National Govemors' Association. In 19777g he was Director g  ;

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e of the Association's Energy Facility 1974 to 1984. Previous positions'in Siting Project. Prior to that assignment local and State govemment include a he served for 4 years as Spocal term in the Indiana House of Assistant to Governor (now Senator) R'P'eeentatives. Mr. Wallace is Daniel J. Evene of Washington State. .

immediate past President of the

  • Mr. Stevens holds a. Master's degree in National Association of Regulatory public administration from the Utility Commissioners and has been University of Washington. .

Chairman of its Emocutive Committee and of its Legislative ANairs and Sidney M. Steller of New Wrk City is Electricity Committees He has served Chairman and Chief Enocutive Offlow on the Soard of Directors of the of the S. M. Stoller Corporation. This National Regulatory Research institute intomational nuclear power consuhing and the Advisory Councils of the firm, originally founded as a private Electric Power Research Institute and practice by Mr. Stoller in 1969, has Institute for Nuclear Power Operations, consuNed on more'than half W the He has an A.S. degree in economics nuclear power commitments in the and an LLS degree from Indiana United States, as well as having university

- served foreign utilities and U.S. and foreign govemment agencies. A Amie Wr;%t of Amherst New chemical engineer and a licensed Hampshire, has been a member of the rd::':-7,al engineer, Mr. Stoller has New Hampshire State Legislature over 40 years of engineering since 1977 and has national experience, more than 35 of which are recognition in the nuclear legislative in the nuclear fleid. He joined Vitm field. His service with the Legislature Engineering Company in 1948 to includes chairing its Science and contribute to the design and Technology Committee and task forces construction of the first post. war on radioactive waste management and irradiated fuel processing plant at economic development. Active in the Harford. As Vice President of National Conference of State Engineering with Vitro, he had Legislatures, he holds posts on 6ts important responsibilities on a number Energy Committee and its National of pioneering nuclear projects, Advisory Committee on Development including the early power reactors, of State Legislative Policy. He Naval reactors, and weste harusing previously held management positions facilities. He has numerous with Nashua Corp. and Rohm and

  • pid::Nai affiliations and publication Haas Company. He has served his credits. local community as Tbwn Meeting Moderator and Village District Larry J. WsNees of Indianapolis, Moderator for nearly 30 years. He Indiana, is a practicing attomew in that holds a S.S. degree in chemical city. He was Chairman of the public engineering and business Service Commission of Indiana from administration from Massachusetts institute of Technology.

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Open Public Meetings Every meeting of the Panelis open to the public and provides an opportunity for public queries and comments.

Pursuant to the provisions of the Federal Advisory Committee Act

. (Public Law 92 463), an advance notice of each meeting is published in the federal Register. This notice includes the date, time, and location of the meeting, as well as a tentative agenda.

The designated contact with respect to public participation is Harold H.

Brandt, U.S. Department of Energy, Office of Civilian Radioactive Waste Management,1000 Independence Avenue SW., Washington, D.C. 20585, telephone (202) 2521652. Written statements may be filed with Mr.

Brandt either before or after a meeting. Members of the public who wish to make oral statements pertaining to agenda items should contact Mr. Brandt at least 5 days prior to a given meeting, and reasonable provision will be made to include the presentation on the agenda.

Transcripts of Panel meetings are available for public review and copying at the Freedom of Information Public Reading Room,1E 190, Forrestal Building,1000 Independence Avenue, SW., Washington, D.C., between 8:30 a.m. and 4:00 p.m., Monday through Friday, except Federal holidays.

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