ML20203G075
| ML20203G075 | |
| Person / Time | |
|---|---|
| Issue date: | 12/14/1998 |
| From: | Shirley Ann Jackson, The Chairman NRC COMMISSION (OCM) |
| To: | Hoyle J NRC OFFICE OF THE SECRETARY (SECY) |
| Shared Package | |
| ML20203G072 | List: |
| References | |
| SECY-98-246-C, NUDOCS 9902190110 | |
| Download: ML20203G075 (4) | |
Text
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NOTATION VOTE RESPONSE SHEET TO:
John C. Hoyle, Secretary i
FROM:
CHAIRMAN JACKSON
SUBJECT:
SECY-98-246 - STANDARD REVIEW PLAN REGARDING FOREIGN OWNERSHIP, CONTROL, OR DOMINATION OF APPLICANTS FOR REACTOR LICENSES 9
w/ comments & edits Approved x
Disapproved Abstain Not Participating COMMENTS:
SEE ATTACHED COMMENTS AND EDITS t /Es 9.,4v SIGNATURE
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/a //'//y f DATE Entered on "AS" Yes No 9902190110 990217 PDR COMMS NRCC CORRESPONDENCE PDR
"? Yo A / 90 / / o
i CHAIRMAN JACKSON'S COMMENTS ON SECY-98-246, STANDARD REVIEW PLAN REGARDING FOREIGN OWNERSHIP, CONTROL AND DOMINATION OF APPLICANTS FOR 1
i REACTOR LICENSES.
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l I approve the issuance of the draft Standard Review Plan on Foreign Ownership, Control, and Domination for public comment, subject to the following comments and revisions provided in the Attachment. I do not believe that it is appropriate for the Commission to establish an arbitrary l
numerical value of voting stock held by a foreign entity which could render an applicant i
ineligible, or eligible for a license. In fact, based on the circumstances of a particular case, a l
small percentage of voting stock held by a foreign entity could require a finding that the applicant is under foreign control. The basis for our decisions must be strongly rooted in the provisions of the Atomic Energy Act, as well as the Commission's primary interest that determinations are made with an orientation toward U.S. common defense and security. This decision must result in a finding that the issuance of a license, in part to a foreign owner, would not be inimical to U.S. common defense and security or to the health and safety of the American public.
I agree with Commissioner McGaffigan that percentages must be interpreted in the light of all the information that bears on who in the corporate structure exercises control over what issues and what rights may be associated with certain types of shares. The staff has not made a clear case that 50 percent is a critical threshold in making determinations that an applicant for transfer is precluded by or satisfies Sections 103d and 104d of the Atomic Energy Act. Therefore, statements that conflict w;th the view that the Commission has not set a threshold (e.g.,"an applicant that is up to 50 percent") should be clarified or removed from the SRP.
Recognizing that transactions of securities can rapidly change and result in a change of interests by foreign entities, the staff should include an ongoing monitoring provision in the SRP for those cases in which transactions may trigger a significant change of the nature and the l
extent cf the foreign interest. This could be accomplished by including conditions such as those cited in im SRP for the U.S. Enrichment Corporation privatization. The staff should look to build upon its ongoing govemment partnerships established with the Action Plan for electric utility restructuring to assure that licensees continue to satisfy the regulations. For example, Section 13 of the Security and Exchange Act of 1934, requires timely disclosure if an individual acquires 5% or more of the common stock of a registered company. As a method of monitoring, the SRP could incorporate provisions that require licensees to submit copy of these filings to the Security and Exchange Commission.
As stated in my vote on SECY-98-153, I agree that this Standard Review Plan should be incorporated with the Standard Review Plan on Power Reactor Licensee Financial Qualifications and Decommissioning Funding Assurance. However, an effort to merge the two documents l
should not be undertaken at this time. The Final Standard Review Plan on Power Reactor Licensee Financial Qualifications provides important information on NRC processes to review l
financial qualifications and methods of providing decommissioning funding, and reflects the changes to the NRC decommissioning funding assurance requi ements that will be effective November 23,1998. Accordingly, the issuance of this final SRP should not be delayed to incorporate the SRP on Foreign Ownership, Control and Domination. Rather, the SRP on Financial Qualifications and Decommissioning Funding Assurance should be expanded to reference the key guidance documents that are used in the license transfer application review process, including the SRP on foreign ownersnip. Foilowing the receipt and resolution of I
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comments on the draft SRP on Foreign Ownership, Control and Domination, the staff should j
l proceed to combine the guidance documents.
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r-COMMENTS ON THE SRP ON FOREIGN OWNERSHIP, CONTROL AND DOMINATION l
Page 1, third paragraph:
The SRP should define what comprises " common defense and security" and how that is distinct and separate from the types of common defense and security matters such as physical security and safeguards, which are not addressed in the SRP.
Page 3, revise (2) of 50.80:
Following "and orders," replace "of" with " issued by."
l Page 6, 2'"' condition:
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The last sentence regarding a specific threshold should be deleted.
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