ML20211H542
| ML20211H542 | |
| Person / Time | |
|---|---|
| Issue date: | 07/13/1999 |
| From: | Diaz N NRC COMMISSION (OCM) |
| To: | Vietticook A NRC OFFICE OF THE SECRETARY (SECY) |
| Shared Package | |
| ML20211H527 | List: |
| References | |
| SECY-99-165-C, NUDOCS 9909020118 | |
| Download: ML20211H542 (3) | |
Text
r-NOTATION VOTE RESPONSE SHEET TO:
Annette Vietti-Cook, Secretary FROM:
COMMISSIONER DIAZ
SUBJECT:
SECY-99-165 - FINAL STANDARD REVIEW PLAN REGARDING FOREIGN OWNERSHIP, CONTROL, OR DOMINATION OF APPLICANTS FOR REACTOR LICENSES l
in part in part Approved Ix g Disapproved xx gAbstain Not Participating COMMENTS:
See attached comments.
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- 3. b.h DATE Entered on "AS" Yes No M c# AAI CORRESPONDEN@CEPDR 31 0
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COMMISSIONER DIAZ'S COMMENTS ON SECY-99-165 With one exception, I approve the proposed resolution of comments on the draft Standard Review Plan (SRP) and the final SRP. While I do not recommend any change in the final SRP, I do propose a different resolution of one of the public comments.
Specifically, one commenter stated:
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[A] foreign entity should be allowed to own a significant share of a nuclear power plant providing: (1) special nuclear material is not under the direct or indirect control of the foreign entity; (2) the sale and transfer of the operating license is not inimical to the common defense and security of the United States; and (3) the sale and transfer should not constitute a transfer of effective control of nuclear activities at the plant, i.e., the foreign entity has no direct or indirect control over the day-to-day activities at the plant.
The responses to comments, which will be included in the Federa/ Register notice of the final SRP, states that the foregoing comment "does not appear to be consistent with the statute, even if the foreign entity is simply a co-owner, and not the exclusive owner of the facility."
SECY-99165 at 2.
In my view, provisions of the proposed final SRP, drawn largely from the published draft SRP, suggest that a foreign entity might "be allowed to own a significant share of a nuclear power plant" under some circumstances such as those presented by the commenter. For instance, I refer to the following provisions from the proposed final SRP:
The Commission has not determined a specific threshold above which it would be conclusive that an applicant is controlled by foreign interests through ownership of a percentage of the applicant's stock. Percentages held of outstanding shares must be interpreted in 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. [SRP at 4.]
An applicant that is partially owned by a foreign entity, for example, partial ownership of 50% or greater, may still be eligible for a license if certain conditions are imposed, such as requiring that officers and employees of the applicant responsible for special nuclear material must be U.S. citizens. [SRP at 5),
if the applicant (wholly owned by a U.S. company that is wholly owned by a foreign corporation) is seeking to acquire less than a 100% interest (in the facility), further I
I consideration is required. Further consideration will be given to: (1) the extent of the proposed partial ownership of the reactor; (2) whether the applicant is seeking authority to operate the reactor; (3) whether the applicant has interlocking directors or officers
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and details conceming the relevant companies; (4) whether the applicant would have any access to restricted data; and (5) details conceming ownership of the foreign parent company. [SRP at 5.]
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if these provisions are consistent with the statute, then it would seem that in some sense a foreign entity might be " allowed to own a significant share of a nuclear power plant" under certain conditions. Perhaps, the seeming discrepancy results from different understandings of the meaning of "a significant share." I suggest that the response be redrafted prior to 1
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publication; in my view, it would appropriate to indicate that "a significant share" might be allowable under the statute, if understood as stated in the SRP that a foreign applicant seeking partial ownership of 50% or more of a facility may be eligible for a license if certain conditions are imposed.
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