ML20246A034
| ML20246A034 | |
| Person / Time | |
|---|---|
| Issue date: | 08/11/1989 |
| From: | Carr K NRC COMMISSION (OCM) |
| To: | Glenn J SENATE, GOVERNMENTAL AFFAIRS |
| Shared Package | |
| ML20246A037 | List: |
| References | |
| NUDOCS 8908220344 | |
| Download: ML20246A034 (2) | |
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UNITED STATES E"'
"1-NUCLEAR REGULATORY COMMISSION
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~ August 11, 1989 CHAIRMAN The Honorable John Glenn Chairman Committee on Governmental Affairs
-United-States ~ Senate Washington, D.C.. 20510 o
Dear Mr.. Chairman:
.I.am pleased'to respond to your request of July 28. 1989, for
'the' Commission's views on the proposed amendment of section 234(a) of the Atomic Energy Act of 1954, as amended, contained in the Senate Committee on Environment and Public Works' Budget Reconciliation Bill.
The amendment would permit the Commission
-to/ reduce funds, otherwise required to be deposited in the Federal-Treasury as a civil penalty, by an amount a licensee donated to a nonprofit educational institution.
The donated Efunds could only be used to.further the protection of the radiological health and safety of the public.
Although the Commission does not object to the concept of direct Federal support to educational institutions conducting radiological health and safety research, we do not favor the use of civil penalty payments for.this purpose.
The Commission.is concerned that the proposed amendment could weaken the effectiveness of our civil penalty program.
The desire to avoid the stigma and negative publicity associated with a civil penalty is one of se-veral reasons why a licensee is motivated to maintain good performance or, following issuance of a civil penalty, to improve performance anc to assure that effective corrective action has been taken.
By making a dona-tion to an educational institution in its vicinity, however, a licensee may receive positive publicity in the community as a result of the poor performance that justified the civil penalty.
The Commission believes that the positive publicity associated with a donation may reduce the licensea's motivation to improve i
its performance and correct deficiencies and reduce the effectiveness of civil penalties as enforcement and compliance tools.
The amendment may also reduce the economic impact of a civil penalty because it does not specifically prohibit the licensee from claiming an income tax deduction for its donation to a nonprofit educational institution.
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As a secondary matter, the Commission also believes that the agency's costs that will be required to implement the legisla-tion will severely impact our already limited resources.
This provision will require-resources-that would otherwise be used in regulating licensees to be used to administer educational 9 rants.
The Commission assesses approximately a hundred civil penalties a year ranging from a few hundred dollars to hundreds of thousands of dollars. ~ Implementation of the amendment, if enacted, could require the Commission to enter into and oversee individual donation agreements in those instances in which the Commission chooses to exercise its discretion under the proposed legislation to direct a-portion of the civil penalties to nonprofit educational institution use.
In addition, rules and policies will need to be established to help decide the following questions:
How will educational institutions become eligible for donation?
For what educational purposes will the donations be used?
What percentage of the penalties should be eligible for O
donation?
How will potential competition between donees to obtain O
the donations be resolved?
How will conflicts of interest in the grant and use of
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O donated funds be avoided?
Audits will have to be conducted to assure that donated funds are properly-granted and used.
The Commission believes that if the intent of Congress is to provide Federtl funds to educational institutions for the purpose of sponsoring research in radiological health and safety matters, this intent could be better served by use of Federal funds specifically appropriated for that purpose.
Sincerely,
\\k.aw Kenneth M. Carr cc: The Honorable William V. Roth, Jr.
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