ML20247F512

Forwards NRC Legislative Proposal in Form of Draft Bill Entitled, Nuclear Power Plant Standardization & Licensing Act of 1987, Amending Atomic Energy Act of 1954.Analysis of Bill & Comparative Text Also Encl

ML20247F512
Person / Time
Issue date:	03/20/1987
From:	Zech L NRC COMMISSION (OCM)
To:	Bush G, Jason Wright HOUSE OF REP., SPEAKER OF THE HOUSE, SENATE, PRESIDENT OF THE SENATE
References
FRN-53FR32060, RULE-PR-52 NUDOCS 8907270169
Download: ML20247F512 (58)

Text

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iA NUCLEAR REGULATORY COMMISSION hp r/

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(53#A 3a460) gggign ;, e u.w The Honorable Georne H.;W. Rush President of the United States Senate Washington, D. C. ?0510

Dear Mr. President:

Tlam enclosing a Nuclear Regulatory Comm1'ssion lerlislative proposal'.in the form of a draft bill to amend-the Atomic Energy Act of 1954. The draft hill is entitled the " Nuclear Power Plant Standardization and Licensing Act of 1987." Its

- goals are to promote nuclear safetv hv encouraging standardization of nuclear power plapth and to provide an accurate, efficient, and more ef' active' licensing process #or the design, sitina, construction, and coeration of nuclear oower olants and other nuclear facilities. A draft bill is in Enclosure 1. A section-by-section analvsis is in Enclosure 2.. .A comparative text is in Enclosure 3.

The Commission believes that Conoress should promote nuclear safety by encouraging the standardization of nuclear facilities. The Commission believes standardizat. ion facilitates high quality construction and safe operation o' specific plant designs. Standardization would stimulate standardized programs of quelity control and make *nr better, faster training of operators and workers. Experience gained at one facilit'y would be relevant to the oneratino personnel, equipment, and-procedures at other standardized plants. The l

use of standardized desians for f0ture nuclear onwer olants aise offers the potential to reduce construction time and costs.

The proposed legislatio'n would also revise the NRC licensing process. The current process has not changed substantially since it was originally enacted 33 years aco in the Atomic l Energy Act. That licensing process was a prudent' course to follow when the nuclear power industry was in its early years. -There were many first-tima nuclear plant apnlisants, designers and constructors, and many novel design concepts.

l Acenrdingly, the process was structured to allow licensino decisions to be made while design work was still in progress 8907270169 870320 .

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- cwamMAN ' March 20, 1987 The Honorable . lim Wright

' Speaker.of the United States '

House of Representatives Washington, D..C. ?0515

Dear Mr. Speaker:

I am enclosing a. Nuclear Pequlatory Commi'sion s legislative proposal in the form of a draft. bill to amend the Atomic Energy Act of 1954. The draft bill i t, entitled the " Nuclear Power Plant Standardization and Licensing Act.of 1987." Its goals are tonpromote nuclear safety by encouraging

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standardization of nuclear power plants and to provide an accurate, efficient, and more effective licensing process for the design, siting, construction, and operation of nuclear power plants and other nuclear facilities. A draft bill is in Enclosure 1. A section-by-sectien analysis is in Enclosure

2. A coroarative text is in Ercinsure 3.

The Commission believes that Congress should pronote nuclear safety by encouraging.the standardization of nuclear facilities. The Commission believes standardization facilitates high quality construction and safe operation of specific plant' designs. Standardization would stimulate standardized programs of quality control and make for hetter, faster training of operators and workers.. Experience gained at one facility would be relevant to the operatino carsonnel, eouipment, and procedures at other standardized plants. The use of standardized designs for futura nuclear onwer plants -

also offers tta potential to raduce construction tina' and Costs.

Ine proposed legislation would also revise the NtC licensing process. The current process has not changed substantially since it was originally enacted 33 years ago in the Atomic Er.ergy Act. That licensing process was a prudent course to follow when the nuclear power industry was in its euriv years. There were many first-time nuclear plant applir. ants, designers and constructors, and many novel design concents.

Accordingly. the process was structured to allow licensina j decisions to be made while design work was still in prograss

2 and to focus on case-specific reviews o' individual plant-site considerations. With the maturation of the industry, it is now possible to describe and evaluate standardi:ed plant designs nn a generic basis, to esser.tially complete desiqns prior to plant construction, and to cropose plant sites without plant design details.

1 Since the early 1950's and 1960's the NRC safety reviews have become increasingly time consuming and complex, and NDC review l obligations have been expanded to cover a wide range of non-safety issues under the National Environmental Policy Act of 1969. Accordingly, the Commission believes that the licensing process should be reformed to ref' lect these and other developments concerning the licensino review of nuclear facilities.

The proposed legislation would amend existing section 185 of the Atomic Energy Act and add new sect, ions 193 and 194. The most important changes to Section 185, Construction Permits and Operating Licenses, would permit the issuance of a combined construction permit and operating license (CP/Oll.

This would facilitate NRC review of essentially complate designs prior to construction.

Section 193, Early Site Review, and section 194, Approval of Designs, are new sections which authorize the Commission to issue a site permit or a facility design approval even thouah no application for a construction permit or a combined CP/0L has been filed. These sections have been proposed to facilitate early identification and resolution of site and design issues after giving an opportunity fnr public participation. These sections would also allow subsecuent facilit.y applications to reference a site permit or design approval and have those final determinations be made bindine unless there is a substantial reeson not to do so. Nothing in the legislation would require the Commission to alter its

---**** -*avisions for instituting proceedings to modifv, ou5per.d or revoke a license or to take such other action as may ba proper upon request filed with the Cnmmission for such action.

The Commission submitted similar legislation to the 98th and 99th Congresses. The Commission continues'to believe that nuclear standardization and licensing legislation should be enacted. The provisions of the draft bill will help promote

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nuclear safety. It will also help improve the quality, ef#ectiveness, and efficiency of the licensing process without impairing public-health and safety or detracting from the

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public's ability'to oarticioate in that process.

Commissioner Asselstine does not support this legislative proposal. He will provide his views in a separate letter.

Sincerely.

N. - .  :

Lando W. Zec , .1 r .

Enclosures:

1. Draft Rill

2. Section-by-Section Analysis

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3. Comparative Text ,

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4 Enclosure 1 l

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ORAFT BILL l

.To amend the Atomic Energy Act of 1954, as amended, to improve the nuclear power plant siting and licensing process, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the " Nuclear Power Plant Standardization and Licensing Act of 1987."

TABLE OF CONTENTS Sec. 2. Findings and purposes.

4 TITLE I--SITING AND LICENSING Sec.101. Construction pennits and operating licenses.

Sec.103. Early site review.

Sec. 104. Approval of designs.

TITLE II--MISCELLANEOUS PROVISIONS I

Sec. 201. Themal neutron power generation facility.

Sec. 202. Standardized design.

x. 20.s. Implementation.

TITLE III--CONFORMING AMENDMENTS Sec. 301. Antitrust provisions. 1 1

Sec. 302. General provisions.

I Sec. 303. Licensing applications.

Sec. 304. Revocation. I Sec. 305. Table of contents.

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TITLE IV--EFFECTIVE DATE I 1

Sec. 401. Effective date. )

l FINDINGS AND PURPOSES I

Sec. 2 (a) The Congress, recognizing that a clear and coordinated energy policy consistent with public health and safety must include an effective and )

i efficient licensing process for siting, construction, and operation of nuclear 1 l

power plants which meet applicable criteria, finds and declares that-- i (1) interstate comerce is substantially affected by the siting, j 4

construction, and operation of nuclear power plants; )

J (2) opportunity for public participation in siting and licensing of  !

1 nuclear power plants should be assured; j i

(3) the licensing .and construction of nuclear power plants would be j l

facilitated and the public health and safety enhanced by the use of preapproved nuclear power plant designs, particularly standardized designs; (4) there is a need to encourage the development and use of standardized nuclear power plant designs because such designs can benefit i

public health and safety by concentrating the resources of designers, engineers, and vendors on particular approaches, by stimulating standardized programs of construction practice and quality assurance, by improving the training of personnel and by fostering more effective 3 maintenance and improved operations, and because the use of such designs )

l can pennit a more effective and efficient licensing tr.d inspection l process; I i l

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3 (5) the licensing process would be facilitated by procedures for the selection and approval of a sice for a nuclear power plant to be accomplished in advance of a commitment to construct a particular facility of a specific design at that site; (6) the licensing process would be faciltated if licensing decisions are made at the earliest feasible phase of the process and, if an opportunity for hearing has been provided, l'icensing issues are not subject to further adjudication in the absence of an evidentiary showing called for by this Act and the regulations of the Commission; (7) all phases of the licensing process should be handled in a timely manner under procedures which, consistent with this Act and the regulations of the Comission, assure that adjudicatory procedures are only invoked where a relevant dispute can only be resolved with sufficient accuracy through such procedures; (8) consistent with the adequate protection of the public health and safety and the common defense and security, the regulatory process should provide greater stability in licensing standards and criteria for approved designs of nuclear power plants; and (9) consistent with the Commission's paramount responsibility to <

l protect the public health and safety, and recognizing that elimination of ]

all risk is an unattainable goal for any energy source, it is appropriate and in the public interest for the Commission to consider the economic consequences of its regulatory practices including, but not limited to, the cost of safety requirements. I L

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(b) The purposes of this Act are-- 1 (1) to facilitate the use of preapproved sites and designs for nuclear power plants and tc facilitate the development and use of standardization designs; (2) to provide for the issuance of a combined license to construct and to operate a nuclear power plant under conditions which assure the continued protection of the public health and safety and which will be in accord wit' the comon defense and security; and (3) to improve the stability of licensing standards and criteria for nuclear power plants and thus the finality of prior Comission licensing approvals. l TITLE I.--SITING AND LICENSING Construction Permit and Operating Licenses Sec.101. Section 185 of th'e Atomic Energy Act of 1954, as amended, is amended to read as follows:

SEC. 185. CONSTRUCTION PERMITS AND OPERATING LICENSES.--

a. All applicants for licenses to construct or modify oroduction or utilization facilities shall be initially granted a construction permit

a. n cic Comission has provided an opportunity for public hearing pursuant to section 189 of this Act and if the application is otherwise acceptable to the Commission, Upon the completion of the construction or modification of the facility, upon the filing of any additional information needed to bring the original application up to date, after l providing'an opportunity for public hearing pursuant to section 189 of I this Act, and upon finding that the facility authorized has been constructed and will operate in conformity with the application as ,

5 amended and in conformity with the provisions of this Act an6 of the regulations of the Comission, and in the absence of any scod cat.se being shewn to the Comission why the granting of an operating license would not be in accordance with the provisions of this Act, the Comission shall thereupon issue an operating license for the applicant. For all other purposes of this Act, a construction permit is a " license."

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b. Nothwithstancing any other provision of this section, the Comission shell issue to the applicant a combined construction permit i and operating license for a thermal neytron power generation ' facility after providing an opportunity for public hearing pursuant to section 189 of this Act, if the application contains sufficient information to support the issuance of a combined construction permit and an cperating license in accordance with the regulations of the Connission and the Comission determines that there is a reesonable assurance that the facility will be constructed and will operate in conformity with the application, the provisions of this Act, and the rules and regulations of the Comission. The Comission shall identify within such combined construction permit and operating license the inspections, tests, ar.d analyses which shall be performeo by the licensee and the acceptance criteric therefor which will provide reasonable assurance that the plant has been constructed and will operate in accordance with the license.

After issuance of a ccmbined construction permit and operating license for a thennal neutron power generation facility, the Comission shall assure through inspections, tests and analyses that construction is

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l completed in confomity with the combined cettstruction permit and i operating license, consistent with the regulations of the Comission.

Prior to the commencement of operation of any facility' l'icensed unoer this subsection, the Commission shall publish in the Federal P.egister a 1 notice of the intended operation cf such facility, and-shall provide a thirty-day period during which any person may file a written objection to the commencement of operation on the basis that the facility authorized has not been constructed or will not operate in confomity with the j license. Such objection shali set forth in reasonable detail the facts and arguments upon which the objection is based, and may be accompanied

.by a reovest for a hearing.

If a hearing is requested, the Commission shall determine whether good cause exists therefor and, if so, the issues to be heard and whether the I hearing must precede commencement of cperation of the facility in order to provide reasonable assurance of the protection of the public health and safety and common defense and security. The Commission may designate an issue for a hearing only if the issue consiste of a substantial dispute of fact, necessary for the Comission's decision, that cannot be resolved with sufficient accuracy except at a hearing and:

(1) the issue was not and could not have been raised and resolved in any proceeding for the issuance, modification or amendment of a license, permit, or approval for that facility, its site, or design; or (ii) a showing has been made that (a) there has been nonconforr.ance with the license; (b) such nonconfermance has not been corrected; and

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.(c) such nonconformance could materially and adversely affect the safe operation of the facility.

Following completion of any hearing held, the Comission shall decide whether the license to construct and operate should be modified. Prior to the commencement of operation, the Comission shall determine, based upon the requisite program of inspections, tests, and analyses, whether construction has been completed in conformance with the combined construction permit and operating license, and consistent with the regulations of the Comisrion.

c. The Comission shall not modify any final determination on an issue that has been considered and decided in any proceeding for the issuance of a combined construction ' permit and operating license, site permit, or design 1

approval conducted pursuant to the Nuclear Power Plant Standardization and Licensing Act of 1987 unless it determines, based on significant new information, that a modification is required to protect the public health and safety or the comon defense and security or to comply with the Comission's regulations.

EARLY SITE REVIEW 3ec. 103. The Atomic Energy Act of 1954, as amended, is 6 mended by adding a new section 193 to read as follows Sec. 193. Early Site Review.--

a. The Comission is authorized to issue a site pennit for approval of a site or sites for one or more prcduction or utilization facilities i

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, , . -~.. . . 1 for a-period of ten years upon the application of any person or entity

, notwithstanding the fact that no application for a construction permit'or a combined construction' permit and operating license for such facility or facilities has been filed. The Commission may issue a site permit with respect to limited aspects of the suitability of. the site for'its intended purpose, under relevant regulations of the Commission'.

.b. Notwithstanding section 161 w. of this Act or the Independent Offices Appropriation Act of 1952, no application filing or issuance fees shall be rec;uired for an application for a site permit, an amendment, or a renewal. of a site pemit under this section. The Connissinn-is authorized to allocate the costs that would otherwise have been defrayed by f(es required of applicants under this section among applicar ts for permits or licenses which propose to use the approved site in a manner

t. hat will assure full cost recovery by the Commission. If no application for construction of a production or utilization facility is filed within

, the initial ten-year approval period, any outstanding fee shall become immediately due and payable by the applicant for the site pemit.

c. After considering all information submitted in the application and'after providing an opportunity for hearing pursuant to section 189 of this Act, the Commission shall issue a site permit if it determines that such. approval will not be inimical to the conson defense and security or to the health and safety of the public.

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9 d.(1) A site permit issued by the Commission under this section may be referenced in an application for a construction permit or a ccmbined construction permit and operating license which meets the conditions of-the site permit and is filed within the period during which the site 1

permit remains valid.

1 (2) No less than twelve or more than thirty-six months prior to the expiration of the ten year period, the holder of the site permit may apply for a renewal of the site permit. , The Commission shall renew the site permit for an additional period of time of not less than five nor more than ten years from the date of renewal unless it finds that the site will not comply with this Act or the Commission's regulations. If no application for a production er utilization facility is filed within the period of renewal, any outstanding fee for the renewal application or issuance shall become due and payable by the applicant for the site permit.

e. Approval of a site under this section shall not preclude its use

a site for an alternate or modified type of energy facility or for any other purpose. Other uses not considered in the approval may, however, effect the validity of the site permit or the conditions of its use for production or utilization facility siting as the Commission may determine,

f. Following the issuance of a site permit under this section, and any subseouent Connission proceeding involvir.g a site for which a site

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10 pemit has been granted under this section, the Comission shall not modify any final determination on an issue that has been considered ano decided in the site permit proceeding unles; it determines, based on l

significant new information. that a modification is required to protect the public health and safety or the comon defense and security or to {

4 comply with the Commission's regulations. ,

APPROVAL OF DESIGN 5 Sec. 104 The Atomic Energy Act of 1954, as ,argended, is amanded by adding a new section 194 to read as follows:

i Sec. 194 .

Approval of Designs.--

3. The Commission.is authorized and directed to establish procedures permitting the approval of standardized facility designs for thermal neutron power generation facilities for a period of ten years, notwithstanding the fact that no application for a construction permit or combined construction permit and operating license for such facility has been filed. The Comission may also consider, in accordance with its r;piations, requests under this section for the approval of the design i

for any major subsystem which represents a discrete element of a themel  !

l neutron power generation facility.

b. Notwithstanding section 161 w. of this Act or the Independent Offices Appropriation Act of 1952, no application filing or issuance f'es e shall be required for an application for a design approval, an amendment, )

or a rer.ewal of an approval of a facility design under this section. The i

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Comission is authorized to allocate the costs that would otherwise have been defrayed by fees required of applicants under this section among applicants for permits or licenses which propose to use ti,e approved s

standardized plant design in a manner that will assure full cost recovery by the Comission. If no application for construction of a facia. y is filed within the initial ten-year approval period, any outstanding fee shall become imediately due and payable.by the applicant for the design approval.

c. After considering all information submitted in the application, and after providing an opportunity for hearing pursuant to section 189 of this Act, the Commission shall issue an apprnval if it determines that such approval will not be inimical to the comen defense and security or to the health and safety of the public.

d (1) Any approval issued by the Comission under this section may ,

be referenced in an application fer a construction pertnit, an operating license or a combined construction permit and operating license which meets the conditiens of the approval and is filed within the period during which the approval remains valid.

(2) No less than twelve or more than thirty-six months prior to the expiration of the ten year period, the holder of the approval may apply for a renewal of the approval. The Comission shall renew the approval for an additional pe$iod of time of not less than five nor more than ten years from the date of renewal unless it finds that the desien will not

J 12 l comply with this Act or the Comission's regulations. If. no application

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i for construction of a facility is filed within the renewal period, any outstanding fee for the rekewal or issuance shall become due and payable by the applicant for the oesign approval,

e. Following tne issuance of a design approval under this section, and in any subsequent Comission proceeding involving a facility design for which a design approval has been grar.ted under this section, the Comission shall not modify any final determination of an issue ina' has been consitterad and decided in the design approval proceeding imless.it determines, based on significant new infomation, that a modification is requir9d to protect the public heelth and safety or the comon defense and Security or to comply with the Commission's regulations.

1 f.(1) The Comission shall approve an amendment to a design approval issued under this section upon application by the holcer of the design spproval if the Con nission detarmines that the amendment will comply with this Act and the Comission's regulations.

(2) Any amendment approved by the Comission under paragraph (1) shall apply to a' ny application for a construction permit or ccmbined construction permit and operating license referencing the design approval for which the amendment has been granted that is filed after the effective date of such amendnent.

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13 (3) Any amer;dment approved by the Comission under paragraph (1) shall not apply to an application for a construction pertnit or combined construction permit and operating license referencing the design approval for which the amendment has been granted that is filed before the effective date of each amendment unless (A) the applicant requests that such amendment apply to the application, or (B) the requirements of subsection (e) are satisfied with respect to the amendment.

(g) Any application for a construction permit, an operating license or a conibired construction permit and operating license or any amendment to such licenses referencing a design approval issued under this section may include a request for a variance from one or more elements of the design approval. Such requests shall be granted 'f the Commission determines that the variance will comply with this Act and the Comission's regulations. Any variance issued under this section shall be limited to the permit or license for which such variance has been requested.

TITLE II--MISCELLANEOUS PROVISIONS Definitions I

?P , 201. Section 11 of the Atomic Energy Act of 1954, as amended, is amended i

by adding new subsection dd, as follows:

dd. " Thermal neutron power generstion facility means a utilization facility which is designed to produce electrical energy and in which core

14 power is designed to be produced predominantly by thermal neutron fissior.

Secti " ror the purposes of this Act the tem " standardized design" ner . -

4 Sich the Comission detennines is sufficiently detailed and complete sort licensing of a comercial production or utilization facility o, approval of a major portica of such a facility when referenced in an application for a construction permit and operating license or a design

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approval and which is usable for a multiple number of units end/or at a multiple number of sites without reopening or Fepeating the review.

Sec. 203.a. The Commission shall, within one hundred and eighty days following the effective date.of this section, propose regulations establishing procedures and criteria for implementing the provisions of sections 185 d.,

193 f., and 194 e. of this Act for the control of the application of new requirements to any thermal neutron power generation facility licensed for construction or operation under this Act.

l b. After the regulations referred to in subsection a. of this section become effective, no license, permit or approval granted under this Act for a .

l thermal neutron power generation facility shall be modified except pursuant to l- such regulations.

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, l ':1 TITLE-III--CONORMINGAMEN0MENTS

. Antitrust Provisions:

' Sec. 301. LSubsection 105c. of the Atomsc Energy Act of 1954, as amended, is  ;

J amended in the first sentence of paragraph (2) byi ' nserting'"and/*'after the. ,

word " construct."- l General Provisions -

l I Sec. 302.:Section.161 o. of the Atomic Energy Act of 1954, as; amended, is j amended by inserting the word <, "or approvals,euthorized by section 193 and 194" after the number "104."-

License Applications ,

Sec. 7,03. Subsection .182 b. of the' Atomic Energy Act of 1954, as amended, is amerded to read as follows:

b. .The Advisory Committee on Reactor Safeguards shall review each application under section 103 or section 104 b. for a construction permit and/or an operating license for a facility; any application under

section 104 c. for a construction pennit and/or operating license for a testing facility;.any application under section 104 a. or c. specifically referred to it by the Commission; any application for a site permit under f section 193; any proposed ' approval for a facility design under section 194; any proposed authorization to corvaen:e operation under section 185 b.; and any application for an amendment to a construction

.pennit or to an operating license under section 103 or 104 a., b., or c.

or an amendment or renewal of a site permit under section 193 or an n

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amendment or renewal of an approval for'a facility design under- i section 194 specifically referred to it by the Comission. and shall- ]

submit a report thereon which shall be made a part of the record of the application and available to the public except.to the extent that

. security classification prevents disclosure, j I

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Sec. 304. Section 186 a, of the Atoezic Energy ~ Act of 1954, as amended, is  !

arnended by inserting the words " sections 182, 185, 193 and 194" after the ,

words " required un.ier." ,

-i Table of Contents Sec. 305. The Table of Contents for the Atomic Energy Act of 1954, as-

'dmended, is' amended by Changing the title of section 185 to read " Construction Permits sad Operating Licenses" and by adding the following after section 192:

Sec. 193. Early Site Review. Sec.194. Approval of Designs.

TITLE IV--EFFECTIVE DATE i l

. . . . io i sections of this Act shall take effect as of the date of -q l

Er.actmant, 4r.d shall apply to all proceedings pending as of the date of enactment or commenced on or after the date of enactment, in accordance with the terms of this Act.

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SECTION-B'Y-SECTION ANALYSIS Section'2. Findings and Purposes This section supplements sections 1, 2 and 3 of the Atomic Energy Act which set forth the declaration, findings and purpose of the Act. This section l

highlights the rejor provisions cf this bill which are being enacted for tna general purpose of encouraging standardization of nuclear power plants and improving the quality, effectiveness, and efficiency of the licensing process for siting, construction and operation of nue, lear facilities.

Section 101. Construction Permits and Operating Licenses This amends section 185 of the Atomic Energy Act, a section which establishes the procedures to be followed by the Commission in authorizing construction permits ar.d operating licenses for nuclear facilities.

Subsection a. of section 185 as it would be amended authorizes the Commissicn to grant a construction permit for a production or utilization facility and, upon the completion of construction to grant an operating license. This suosection restates existing authority with one exception. This legislation would delece the requirement for specification of the earliest and latest completion dates for construction permits. The existing provision has produced unnecessary paperwork and expenditure of rescurces without assuring that construction is diligently pursued. Moreover, the provision in current section 185 for earliest and latest completion dates made sense when it was includeo in the Act in 1954 because the Federal Government would be owning

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, i the fuel and would need to allocate special nuclear material between the civilian nuclear power and defense programs. It was important to AEC to

. predict completion dates (and hence operation commencement dates) with accuracy so that civilian requirements for special nuclear material could be 1 l

predicted accurately and planned for properly. The Federal Government nc j

. 1 longer allocates fuel and has a much lesser need to predict completion dates i I

accurately. Thus, the provision is no longer needed to serve the purpose for which it was adopted.

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Although the requirement for the specification of the earliest and latest construction completion dates is deleted, the Commission Will still issue a j construction permit or a combined construction permit / operating license for a fixed period not. to exceed forty years pursuant to sectices 103 b) and 183 of th!s Act. The legislation would also provide specifically for an opportunity j for a public hearing.

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In addition, consistent with present regulatory practice, an application to modify a proauction or utilization facility will require a construction pennit only if the modification is defined as a material alteration of that iecility pursuant to 10 CFR 5 50.9.1.

Subsection b. of section 185 as it would be amended permits issuance of what would be called a combined construction permit and operating license (CP/0L) ,

for a thermal neutron power generation facility. .This definition would include all currently licensed U.S. comercial nuclear power reactors (in-I cluding all currently licensed U.S. gas-cooled reactors), but exclude facili-ties such as breeder reactors and fuel reprocessing plar.ts. A ccmbined CP/0L i

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l I'4 could be isst.ed for thermal neutron power generation facilities only if the l

Commission determines that there is reasonable assurance that the facility will be constructed and will operate in conformity with the application, the provisions of the Atomic Energy Act, ano the rules and regulations of the Comission. Pursuant to subsection b., the combined construction pemit and operating license would identify and incorporate by reference the inspec-tions, tests and analyses that would be required to be perfomed and the i acceptance criteria therefor.

Under the current two-step licensing process, the inspections, tests and analyses which need to be perfonned to assure the adequacy of construction with respect to NRC regulatory requirements are not fully or finally defined until the operating licen:,e review is complete. Thus, the Comissien and the license applicant are unable. to identify and reach agreement at an early ,

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stage with respect to the detailed implementation of NRC reonirements and the public's participation in this process is delayed until the plant is nearly complete. Under the current regime, therefore,' extensive additional tests and analyses are sometimes required late in the construction process. This may lead to plant modifications wnich could have been avoided by identifying a

'he inspections, tests, analyses, and acceptance criteria at the time the plant was licensed for construction.

Before nuclear power reached its current level of development, it was appro-priate to establish general criteria at the construction pennit stage and review the adequacy of the design at the operating license stage. Thus, it ,

I was appropriate to delay identification of inspections, tests and analyses to  ;

i be performend by the licensee and acceptance criteria therefor, against which  !

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design and construction adequacy were tb be measured, until near the time when the design was essentially complete. With the current level of development it is possible to establish the design in sufficient detail before construction comences, and hence to identify the inspections, tests and analyses which need to be performed in order for the Comissinn to make the required findings of reasonable assurance of the public health and safety with respect to plant operation.

Specification of the required inspections, tests and analyses to be performed by the licensee in the combined construction permit and operating license, i.e., before facility construction commences Would establis.h a clearly defined set of requirements governing the licensee and the Comission in discharging their complementary responsibilities as respects facility ,

construction and operation. .The Comissien will be in a better position to assure that the plant has in fact been constructed and can be expected to operate in accordance with the license authorization. At the same time, license specifications of those requirements would enhance regulatory certainty for the facility licensee by prescribing what will be expected of the licensee in the construction and early operational phases of the plant anc the bases for determining the adequacy of the licensee's performance.

Importantly, this will also facilitate and make more effective public partici-pation by providing information, prior to authorization of facility construction, of how the applicant's compliance with specified construction and operation requirements will be demonstrated following license issuance.

Moreover, specification of inspections, tests, analyses and acceptance criteria to be performed by the licensee as an integral part of the combined i

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construction permit and operating license cannot be accomplished without appropriate completeness of the applicant's facility design. The level of design detail needed to establish such specification would define the essentially complete design which the Commission anticipates will be required for the combined construction permit application. The elements specified would necessarily address all impcrtant safety features of a plant, and the Commission would determine the level of detail necessary in the inspections, tests and analyses, and the acceptance criteria therefor. Thus, in order to qualify for license issuance, the applicant would be obliged to describe those features of the proposed facility with a matching completeness.

4 In summary, inclusion in the license of prescribed inspections, tests, analyses and acceptance criteria to be performed by the licensee should enhance the quality of construction of nuclear power plants, add stability to the construction process, and facilitate public participation in the resolution of safety issues prior to commencement of facility construction.

After issuance of the CP/0L and prior to commencement of operation (fuel loading), the Commission must assure that the facility has been constructed erd will operate in conformity with the CP/0L, and the requirements of the Commission implementing this Act. An opportunity for a second public hearing would be provided prior to commencement of operation of the facility if good cause exists therefor. The Commission would determine the issues to be heard and timing for such hearing--whether the hearing must precede commencement of operation of the facility in order to provide reasonable assurance of the protection of the public heelth and safety and common defense and security or whether the nearing could be deferred until after facility operation

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D commences. Under the proposed statutory provision, good cause for hearing is )

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' defined toe 'xist only where an issue consists of a substantial dispute of

' fact' necessary for the Comission's decision that cannot be resolved with ,

sufficient accuracy except at a hearing and either (1) the issue was not and could not have been raised and resolved in any proceeding for the issuance, modification or amendment of a license, pemit or approvk1 of that facility, i

its site or design; or (2) a showing has been made that (a) there has been nonconformance with the license; (b) such nonconfomance has not been corrected; and (c) such nonconformance could materially and adversely affect the safe operation of.the facility. The Commission under this provision could find good cause for a hearing but detemine that the hearing need not precede commencement of cperation of the facility where, for example, the resolution of the issue to be heard could only affect safe operation of the facility after the facility already has been in operation for some period of time.

Another example would be the situation where the Comission determines that interim measures will allow the facility to operate with reasonable assurance of the protection of.the public health and safety during the period necessary for resolution of the dispute of fact in the hearing process.

Pegardless of whether or when a hearing is held, the Comission would be required to determine prior to operation, based upon its review of the requisite program of inspections, tests and analyses that construction has been completed in conformance with the combined construction pemit and operating license and consistent with the regulations of the Comission.

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The purpose of subsection c. is to give greater certainty to the process by ensuring that the Comission not modify a final determination made in any proceeding conducted pursuant to the Nuclear Power plant Standardization and  ;

Licensing Act of 1987 involving a particular facility, facility site, or i design approval for that facility, unless there is a substantial reason to do so. Pursuant to this subsection, the Comission may not modify any final determination on an issue that has been considered and decided in a prior proceeding unless it detemines, based on significant new infomation, that such modification is required to protect the public health and safety or the ccmon defense and security. If a proposed modification does not meet the standard set forth above, but would nonetheless' improve the overall safety of facility operation, the Comission would apply its backfit regulations, 10 CFR 50.109, to determine whether the modification is warranted. ,

subsection c. would not apply to facilities licensed prior to the enactment l of this legislation. Modifications to thost facilities are governed by the l Comission's backfit regulations,10 CFR i 50.59.

1 Section 103. Early Site Approval This is a new section 193 to the Atomic Energy Act which authorizes the flRC to approve one or more sites for the location of production or utilization facilities prior to the filing of any application to construct and/or operate a facility on that site. The purpose of this provision is to pemit the resolution of site-specific questions at an early stage in the licensing process. Public participation on this crucial aspect of the overall facility planning and construction process would also occur at an early point in time

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j ic where such participation can be inost effective. This provision is an integral part of the effort to promote the early, effective and efficient e resolution of issues in the licensing process.

Subsection a. of section 193.provides that an application for early site approval may be filed by any person or entity and that the Comnrission is authorized to issue a site pemit for a. period of ten years even though no i

' application for a construction permit or a'conbined CP/0L has been filed. It would. also authorize limited aspects of the site (e.o., seismicity) to be considered and resolved prior to the filing of pny application for a con-struction permit or combined CP/0L. This subsection permits an early and specific focus on the suitability of a site for production or utilization fe.cility construction without requiring the drivelopment of a facility design.

A site permit issued under this section would be a final Commission order U

subject to judicial review.-

Subsection b. of r,ection 193 provides that notwithstanding section 161w. of' this Act or the Independent Offices Appropriation Act of 1952, no application filing or issuance fees shall be required for an application for appreval or

. D d67.2.ndT4.ent or renewal of a site permit. The Commission is authorized to allocate the costs ordinarily defrayed by fees collected among future applicants for permits or licenses which propose to use the site permit. .

l This provision is added as an incentive to applicants to seek approval for site permits. .However, if fees cannot be defrayed because a site is not used 1

during the initial ten year approval, the holder of the site permit must pay j the full amount notwithstanding the granting of a renewal.

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,p, 9 Subsection c. of section 193 authorizes the Commission to approve an appiica- l

. tion. and issue a site permit with appropriate conditions if, after considering all the information in the application and providing an opportunity for a public hearing, the Comission detemines that such approval will not be inimical to the comon defense and security or to the l

health and safety of the public. An opportunity for a prior public hearing j on the application will be afforded under Section 189 of the Act. It is currently envisioned that for full site pemits the application would set 4

forth an envelope of parameters such as : (1) the number, type or types and thermal power level of the facilities with respect to which the application-for site approval is made; (2) the site description and location, including l I

site boundaries and exclusion area; (3) description of. nearby industrial, military, and transportation facilities, including usage and routes; (4) the proposed maximum levels of radiological and themal effluents that each such 1

facility will produce; (5) the type or types of cooling systems, intake and 4 outflow, that may be employed by each facility; (6) the physical charac-teristics of the site, including seismic, meteorological, hydrologic, and geologic characteristics as well as population density and use characteristics of the surrounding area; and {7) such other information as t.he Comisdon may by rule or order require. By deteribing the site in such a way, the Commission could detemine the site suitability for one or several i

generic designs that may be developed pursuant to section 194, the provision for standardized facility designs. However, nothing in this section would preclude the Commission from promulgating regulations which set forth standards and criteria for site approval consistent with section 161(i) of 1

this Act and section 553 of title 5 of the United States Code.

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., . - 10 Subsection d.(1) of section 193 provides that site permit can be referenced in an application for a facility to be constructed on the site if the appli-cation has been filed within the period during whicS the site permit remains valid. The effect of this provision is that matt m resolved in a site pemit review or licensing action will not be modified or reexamined as part of the review of a construction pemit or a combined CP/0L application which references the site permit, unless a strong evidentiary showing is made.

After a site pemit has been referenced, a request for renewal would be unnecessary to continue the effectiveness of the site permit for the applica-tion referencing the approved site. ,

i Subsecticn d.(2) of section 193 authorizes the Commission to renew a site pcrmit for not less than five or more than an additional ten years from the date of renewal. Renewal would be based only upon the application of a perait holder. The minimum period of five years is set to assure that the resources used to review a renewal request are directed toward meaningful results. For example, allowing repeated renewals for only six months or a year could cumulatively tax the resources of the agency ano industry alike.

Moreover, it is contemplated that infomation necessary to fem a sound basis 1or the decision to renew for periods of five to ten years will be readily available and within the state of the art. Renewals would be based on regu-lations in effect tit the time the renewal is requested providing a means to update the earlier approval. Subsequent renewals of the site permit will not be entertained, although the pemit holder may submit a new application for the same site.

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Subsection d.(2) of section 193 also sets out the criteria the Comission shall apply in deciding whether to renew a site permit. Tne Comission shall renew the site pemit if it finds that the site will comply with this Act or NRC regulatfors in effect at the time cf site permit renewal. Any licensing fees resulting from the granting of a rentwal may be defrayed and allocated among future applicants using t... renewed site pemit. Defrayed renewal fees

~

must be collected at the end of the . renewal period.

Subsection c. of section 193 assures that a site approved under this section may be used for an alternative type of energy , facility or any other purpose.

However, the validity of the site permit for production or utilization facility siting may be affected by use of the site for a purpose not considered in its approval. The Comission intends to promulgate regulations which would require proper notice be given to the Comission regarding a nonconforming use.

Subsection f. of section 193 specifies that the Commission shall not modify any previous final determination involving a site permit unless it deter-mir.es, based on significant new infomation, that such modification is

.a a g vtect the public health and safety or the comon defense ani

.nurity or to comply with the Comission's regulations. This provision is intenced to have the same effect as the counterpart provisions in subsection 165c. and the discussion in the section-by-section analysis of that subsection is applicable here as well.

Thi: provision would not preclude a holder of a site permit from seeking an amencment to that pemit. The Comissicn shall approve an amendment to a

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site pemit issued under this section if, after providing an opportunity for

' hearing pursuant to section 189 of this Act, the Commissinn determines that the amendment will comply with this Act and the Corsfssion's regulation. Any s amendment approved would apply to any construction pemit or combined CP/0L utilizing the site permit after the amendment becomes effective.

Section 104. Approval of Designs ,

This is a new section 194 to the At aic Energy Act of 1954, which provides for approval of thermal neutron power generation facility designs. As with early site approvals, this section is intended to facilitate early resolution of. issues with full opportunity for participatica by interested persons.

Although the Commission currently has procedures for approving designs, this section gives explicit statutory support to the concept and establishes requirements for Commission approval of facility designs. This section will encourage the development and use of standardized designs, will enhance-safety, and will. contribute to a better utilization of NRC resources.

Tiie facility design should be described in such a way as to provide an envelope of parameters for sites selected pursuant to section 193 to assure that'the plant could be constructed on a site of given general characteris-tics. Typically, a facility design should be described in sur.h a manner that it could be used at more than ene site with a minimum of adaptations because of specific site characteristics. The Comission contemplates and encourages development and use of substantially complete standardized designs as an e.ffective means of increasing agency efficiency and augmenting the public health and safety.

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The application requirements for approval of a facility design will be set out in the Comission's rules. If, after Comission review of the informa-tion in the application, and after providing the opportunity for a public hearing under Section 189 of the Act, the Comission determines that the design is suitable for construction and operatione it will issue an approval and the design may be banked for future use. An approval issued under this section will be considered a f.inal Comission order subject to judicial review.

When a pre-approved design is combined with a pre-approved site, it is contemplated that there may be a hearing with respect to the relevant con-struction permit or CP/0L if there are outstanding issues, i.e., issues raised by the matching of the site wi'.h the design. However, issues which were or could have been decided would not trigger new opportunities for hearing at the time the site and design are matched unless a showing is made th6t reconsideration of site or design issues is nr.cessary to protect the public health aid safety or comon defense and security or to ensure compliance with the Comission's regulations.

aion a. of section 194 authorizes the Comission to approve facility designs or the design of any major sub-system for a period of ten years even tnough no application for a construction pemit or combined construction permit and operating license has been filed by an applicant. This provision pemits design applications and approvals to be made before iritiation of construction of thermal neutron power generation facilities.

14 Subsection b. of section 194 provides that notwithstanding section 161w. of this. Act or the Independent Offices Appropriation Act of 1952, no application

' filing or issuance fees shall be required for an application for approval or for an amendment or renewal of an approval of a standardized facility. The Commission is aut.horize.1 to tilocate the costs ordinarily defrayed by fees collected among future applicants for pemits or licenses which propose to use the approved design. This provision is added as'an incentive to vendors and architect-engineer fims to develop and seek approval for standardized designs. However, if fees cannot be defrayed because a design is not used during the initial ten year approval, the appli' cant must pay the full amount notwithstanding the granting of a renewal.

Subsection c. of section 194 authorizes the Commission to approve an application and issue a design approval with appropriate conditions if, after considering all the information in the application and providing an oppor-tunity for a public hearing, the Commission determines that such approval will not be inimical to the common defense and security or to the health ano safety of the public. The opportunity for hearing and the hearing, if held, would be in accordance with section 189 of the Act.

Subsection d.(1) of section 194 provides that a design approval can be referenced for a facility if an application has been filed within the period during which the design approval remains valid. The effect of this provision is that all matters resolved in a design approval review or a . licensing action, including amendments to that approval, can be transferred without a need to re-review those matters in all applications for a construction permit, combined CP/0L, or operating license which reference that design

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' approval, unless a strong evidentiary showing is made pursuant to m-[

subsection e; A request for renewal would not be necessary to continue the

. effectiveness of the de' sign approval in these referenced applications.

, . Subsection e. of section 194 authorizes the Commicsion to renew a design approval for not less than five or.more than ten ytars from the date of renewal. Renewal would be based upon the application of a permit holder.

The minimum period.of five years is set to assure that the resources used to -

review renewal requests are directed toward meaningful results. For example, allowing renewals for only six months or a year could cumulatively tax the 1 resources of the agency and industry alike. Moreover, it is contemplated-that information necessary to form a scund basis for the decision to renew for periods of five to ten years will be readily available end well within the state-of-the-art. Subsection d.(2) also sets out the criteria the Commission shall apply-in deciding whether to renew a design approval.

Renewal shall be granted unless it can be demonstrated that the design will not ccmply with the Atomic Energy Act or the Commissinn's applicable regulations in existence at the time that renewal is requested. This provision allows for updating designs at the time a request for renewal of an approval:-is made. Subsequent renewals of the design approval will not be entertained, although~ the design approval holder may submit a new application for the same design. Any licensing fees resulting from the granting of a renewal may be defrayed and allocated among future applicants using the renewed design appmval. Defrayed fees must be collected at the end of the renewal period.

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1 Subsection ei of section 194 specifies that the Comission shall not comence )

a ';roceeding to modify a. final determination made in 6 design approval proceeding.unless it detemines, based on significant new information, that  !

i such modification is required to protect the public health and safety or the common, defense and security or to comply with the Comission's rt gulations.

. This subsection is intended to have the sare effect as the counterpart f

provision in subsections 185c. and 193f. and the section-by-section analysis of these subsections is appitcable here as well, Subsection f. of section 194 sets forth the criteria by which the Comission will approve an amendment to a design approval imder the Atomic Energy Act and how that amendment shall be applied to facilities which ,eference the design. These provisions ensure that approved ai.<.ndments will apply to applications for a construction pemit or a combined CP/0L referencing the design approval that are filed after the effective date of the amendment.

The amendment, however, will not apply to those applications referencing the design which are filed before the effective date of the anndment unless (1) the applicant requests that the amendment be applicable, or (O t'le reopening standards of subsection 194e. are satisfied.

A new subsection g. authorizes and directs the Comission to establish procedures and standards for approving variances from construction pemits, operating licenses, and combined construction permits and operating licenses.

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7 - 171-Title II -- Miscellaneous Provisionr; The provisions contained in section 201 of the bill would add new subsection bb. and to Sectioii il of the Act.

Section 11bb., as amended, would define "themal neutron generation facility" as used in sections 185 and 194 of the Act.

The previsions contained in section 203a. of the bill requires the Commission to propose. regulations to implement the provisions of sections 185c.,193f.

and 19a e . applicable to themal neutron powe,r generation facilities within 180 days following the effective date of this 'section.

The provisions of section 203b. of the bill would prohibit the modification of any thermal neutron power. generation facility except pursuant to the regulations promulgated under subsection a., once these regulations are promulgated.

Title III -- Confoming Amendments These provisions would be necessary to conform other secticns of the Atomic Energy Act of 1954 with the provisions contained in this bill. Section 182b.

of the act would also be changed to provide for Advit.ory Committee on Reactor Safeguards review prior to commencement of operation in the case of a com-bh.ed construction permit and operating license.

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i Title IV -- Effective Date This provision ensures that all sections of the Atomic Energy Act, including' those sections amended by this bill, shall take effect as of the date of enactment and shall apply to all pending and new proceedings. The last phrase requires cach proceeding to meet the terms of the Act in order to come under this Act. For example, for an application for a design approval already under review by the Commission to be treated under section 194, such an application will have to meet the requirements of both subsections 194a.

and 194c. ',

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COMPARATIVE TEXT I

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To amend the Atomic Energy Act of 1954, as amended, to improve the nuclear-power plant siting and licensing process, and for other purposes. -

f Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this. Act may be cited as the

" Nuclear Power Plant Standardization and Licensing Act of 1985."

TABLE OF CONTENTS '

s Sec. 2. Findings and purposes.

TITLE I -- SITING AND LICENSING Sec. 101. Construction permits and operating licenses.

Sec.103. Early site review.

Sec. 104. Approval of designs.

TITLE II -- MISCELLANEOUS PROVISIONS Sec. 201. Thermal neutron power generation facility.

. 20:. Standardized design.

Sec. 203. Implementation.

TITLE III -- CONFORMIt!G AMENDMENTS Sec. 301. Antitrust provisions.

Sec. 302. General provisions.

Sec. 303. Licensing applicatfor.s. .

Sec. 304. Revocation.

Sec. 305. Table of contents.

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TITLE IV -- EFFECTIVE DATE Sec. 40I. Effective date. J f

FINDINGS AND PURPOSES  !

Sec.2(a) The Congress, recognizing that a clear'and coordinated energy policy consistent with public health and safety must include an effective j i

and efficient licensing process for siting, construction, and operation of

. nuclear power plants which meet applicable criteria, finds and declares tha t-- 4  !

i (1) interstate commerce' is substantially affected by the siting, I

construction, and operation of nuclear power plants; i (2) opportunity for public pr.rticipation in siting and licensing of nuclear' power plants.-should be assured; r (3) the licensing and t. construction of nuclear power plants would be facilitated and the public health and safety enhanced by the use of preapproved nuclear power plant designs, particularly standardized designs; (4) there is a need to encourage the development and use of standardized nuclear power plant designs because such designs can benefit public health and safety by concentrating the resources of designers, engineers, and vendors on particular approaches, by stimulating standardized programs of construction practice and quality 1

assurance, by improving the training of personnel and by fostering irore '

effective maintenance and improved operations, and because the use of such designs can pennit a more effective and efficient licencing and inspection process; u - _

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i (5) the licensing process would be facilitated by procedures for i the salection ano approval of a site for a nuclear power phnt to be acceri.plished in advance of a commitment to construct a particular facility of a specific design at that site; (6) the licenting process would be facilitated if licensing-decisions are nde at the earliest feasioie phase of the process and, if an op;;ortunity for hearing has been provided, licensing issues are not subject to further adjudication in t.he absence of an evidentiary showing called for by this Act and the pgulations of the Ccmnission; (7) all phases of the lickniing process should be handled in a timely :nanner ender procedures which, consistent with this Act and the regulations of the Comission, assure that adjudicatory procedures tre o'nly invo.ked where a ' relevant dispute can only be retobed with sufficient accuracy through such prcceduies; (8) consistent with the edequate protection of the public health and safety and the common defense end security, the regulatory process should provide greater stability in licensing standards and criteria for approved designs of nuclear power plants; and (9) consistent with the Comission's paramount responsibility to protect the public health and safety, and re:ognizing that elimination of all risk is an unattainable goel for any energy source, it is appropriate and in the public interest ilor the Commission to consider the e:onomic consequences of its regulatory practices including, but not limited to, the cost of safety requirements.

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1 (b) The purposes of this Act are-- i j

(1)' to facilitate the use of preapproved sites and designs for l nuclear power plants and to facilitate the development nr.d ose of l l

l O standard 1 ration designs; (2) to provide for the issuance of a combined license to l l

construct and to operate a nuclear power plant under conditions which j assure the continued protection of the public health and safety and which will be in accord with the comon defense and security; and (3) toimprovethestabilityof1tegnsingstandardsandcriteria for nuclear power plants and thus the finality of prior Comission licensing approvals.

TITLE I -- SITING AND LICENSING Construction Penni_t and Operating Licenses, Sec.101. Section 185 of the Atomic Energy Act of 1954, as amended, is amended to read as follows:

SEC. 185. CONSTRUCTION PERMITS AND OPERATING LICENSES.--

a. All applicants for licenses to construct or modify production or utilization facilities shall [4f-the-app 44 eat 4en-4s-etherw4se

- u g naie-se-the-Gem 4ss4en.'be initially granted a construction penuit after the Cominion has provided an opportunity for public heartug pursuant to section 189 of this Act and if the application is i;

ntherwise acceptable to the Commission. [The-eenstreetien-perm 4%

shall-state-the-earliest-and-latest-dates-for-the-eemp%etion-of-the eenstreet4en-er-med4ffeatfen,--Unless-the-senstruct(en-er-med4f4 eat 4en 6f-the-fae444ty-4s-eempleted-by-the-eemplet4en-dater-the-senstewetten perm 4t-shall-erp4rev-and-all-r4ghts-thereunder-be-ferfeitedy-unless

5 u pon-g ood-e a u s e- s hown y the -G em4554 e n - e y te nd s - the -e emple t 4 e n -d a t e r]

Upon thd completion of the construction or modification of the facility, upon the filing of any additiona1'infomation needed ' to bring the' original application up to date, after providing an opportunity for public hearing pursuant to section 189 of this Act, and upon finding that the facility authorized ha's been constructed and will operate in confomity with the application as emended a'nd in confomity with the provisiens of this Act and of the [the-rules-and]

. regulations of the Comission, and in the Absence of any good cause being shown to the Comission why the granting of [a]an operating license would not be in acccrdance with the provisions of this Act, the Comission shall thereupon issue [a] an operating license for the applicant. For all other purposes of this Act, a construction pemit is[ deemed-to-be]a" license."

b. Notwithstanding any other provision of this section, the Comission shall issue to the applicant a combined construction Demit and operating license for a themal neutron power ger.eration facility after providing an opportunity for public hearing pursuant to section 189 of this Act, if the application contains sufficient information to support the issuance of a combined construction pemit and an operating license in etccordance with the regulations of the Comission and the Comission detemines that there is a reasonable assurance that +he 'acility will be constructed and will operate in confomity with the 3pplication, the provisions of this Act, and the i

rules and regulations of the Comission. The Commission shall l

6 identify within such combined construction permit and operating license the inspections, tests, and analyses which shall be performed by the licensee and the acceptance criteria therefor which will provide reasonable assurance that the plant has been constructed ano will operate in accordance with the license. After issuance of a combined construction permit and cperating license for a thermal neutrcn power oeneration facility, the Comm.ission shall assure through inspections, tests and analyses that construction is completed in conformity with j the combined construction permit and operatiro license, censistent i

with the regulations of the Commission.

Prior to the commencement of operation of any facility licensed under thjs subsection, the Commission shall publish in the Federal Register a notice of the intended operation of such facility, and shall provide a thirty-day period during which any person may file a written objection to the commencement of operation on the basis that the facility authorized has not been constructed or will not operate in conformity with the license. Such objection shall set forth in reasonable detail th_e_ facts and arguments upon which the objection is based, and may be accompanied by a request for a hearing.,

If a hearing is requested, the Commission shall determine whether gcod cause exists therefor and, if so, the issues to be heard and wnether the hearing must precede commencement of operation of the facility in order to provide reasonable assurance cf the protection of the public health and safety and common defense and security. The Commission may

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l designate an issue for a hearing only if the issue consists of a substantial dispute of fact, necessary for the Comission's decision, 1 l

that cannot bca resolved with sufficient accuracy except et a hearing I and:

(i) the issue was not and could not have been raised and resolved in any proceeding for the issuance, modification or amendment i

of a license, permit, or approval for that facility, its site, or design; or j l

(ii) a showing has been made that (a) there has been nontonformance i i

j with the license; (b) such nonconformance has notjeen corrected; and j t

(c) such nonconformance could materially and advers.ely affect the safe j operation of the facility.

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Following completion of ariy hearing held, the Comission shall decide whether the license to construct and operate should be modified. Prior to the commencement of . operation, the__Comission shall determine, based upon the j j

recuisite program of inspections, tests, ano analyses, whether construction l l

.has been ccapleted in conformance with the combined construction pemit and ]

ratire license, and consistent with the regulations of the Comission,

c. The Comission sita11 not modify any final determination on an issue that has been considered and decided in any proceeding for the j issuance of a combined construction permit and operating license, or a site permit, or design approval conducted pursuant to the Nuc1> ear Power Plant Standardization and Licensing Act of 1987, unless it detemines, based on significant new infomation, that a modification is recuired to protect the 1

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U gublic health and safety or the common defense or to comply with the Comission's regulations.

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EARLY SITE REVIEW '

Sec. 103. The Atomic Energy Act of 1954, as amended, is amended by adding )

a new section 193 to read as follows .

l Sec. 193. Early Site Review.--

e. The Comission is authorized to issue a site permit for

'i approval of a site or sites for one or more prcduction or utilization facilities for a period of ten years upon the application of any person or entity'notwithstanding the fact that no application for a construction perinit or a combined construction pemit and operatin_g

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license for such facility or facilities has been filed. The,,

Comission may issue a site permit with respect to lim.ited aspects of the suitability of the site for its intended purpose, under relevant i regulations of the Comission. -

b. Notwithstanding section 161 w. of this Act or the Independent j Offices Appropriation Act of 1952, no application filino or issuance fees shall be required for an application for a site permit, an amendment, or a renewal of a site permit under this section. The  !

Comission is authorized to allocate the costs that would otherwise l have been defrayed by fees required of applicants under this section among applicants for permits or licenses which propose to use the approved site in a manner that will assure full cost recovery by the j

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. 9 Commission. If no application for construction of a production or utilization facility is filed within the initial ten-yeer approval i

period, any outstanding fee shall become immediately due and payable by i

the applicant for the site permit.

c. After considering all information submitted in the ,

application and after providing ar opportunity for hearing pursuant to  :

section 189 of this Act, the Commission shall issue a site perm'>. if it determines that such approval will not be inimical to the common defense and security or to the health and safety of the public s d.(1) A site permit issued by the Commission under this section may be referenced in an. application for a construction permit or a combined construction permit and operatine license which meets the conditions of the site permit and is filed within the period during which the site permit remains valid.

(2) No less than twelve or more than thirty-six months prior to the expiration of the ten year period, the holder of the site permit may a,pply for a renewal of the site permit. The Commission shall renew the site pennit for an additional period of time of not less than five nor more than ten years from the date of renewal unless it finds that the site will not comply with this Act or the Commission's regulations. If no application for a production or utilization facility is filed within the period of renewal, any outstanding fee for the

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renewal application or issuance s,hfl become due and payable by the applicant for the site permit.

e. Approval of a site under this section shall not preclude its i' use as a' site for an alternate or modified type of energy facility or for any other purpose. Other_u_ses not considered in the approval may, however, affect the validity of the site pemit or the conditions of its use 'or production or utilization facility siting as the Comission may detemine. ,

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f. F6110 wit:g the issuance of a site permit under this section, and any subsecuent Comission proceeding involving a site for which a site permit has been granted under this section, the Comission shall not modify any final determination on an issue that has been considered and decided in the site pemit proceeding unless it determines, based on significant new information, that a modification is recuired to protect the public health and safety or the common deferse and security or to comply with the Comission's regulations.

APPROVAL OF DESIGNS N 204. The Atomic Energy Act of 1954, as amended, is amended by adding a new section 194 to read .ns follows: i i

i Sec. 194. Approval of Designs.--

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a. The Comission is authorized and directed to establish {

procedures permitting the approval of standardized facility designs

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. . 11 for thermal neutron power generation facilities for a period of ten years, notwithstanding the fact that no application for a construction l

permit or combined construction permit and operating license for such l facility has been filed. The Commission may also consider, in  !

l accordance with its regulations, recuests under this section for the ]

approval of the design for any major subsystem which represents a discrete element of a thermal neutron power gereration facility.

b., Notwithstanding section 161 w. ,of this Act or the Independent Officer Appropriation Act of 1952, no app 1'ication filing or issuance fees shad 1 be recuired for an application for a desien approval, an  ;

amendment, or a renewal of an approval of a facility design under this section. The Commission is authorized to allocate the costs that would otherwise have been defrayed by fees reouired. of applicants under this section among applicants for permits or licenses which propose to use the approved standardized plant design in a manner that will assure full cost recovery by the Commission. If no application for construction of a facility is filed within the initial ten-year approval period, any outstanding fee shall become immediately due and payable by the applicant for the design approval,

c. After considering all information submitted in the application, and after providing an opportunity for hearing pursuant to section 189 of this Act, the Commission shall issue an approval if it determines that such ar--' val will not be inimical to the common defense and security or to the health and safety of the public.

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. 12 d.(1) ' Any approval issued by the Comission under this section may be referenced in an application for a construction pemit, an operating license or a combined construction permit and operating license which meets the conditions of the arvoval and is filed within the period durir.g which the approval remains valid.

(2) No less than twelve or more than thir'ty-six months prior to

,t_he, h expiration Of the ten year period, the holder of the approval may apply for a renewal of the approval _. l'he Commission __shall renew the approval for an additional period of tj_me of not less thar five nor more than ten years from the data of renewal unless it finds that the design will not comply with this Act or the Comission's regulations.,

If no application for construction of a facilj_tgjlf_iled within the renewal period, any outstanding fee _ for the renewal or issuance shall become due and payable by the applicant for the design approval.

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e. Following the issuance of a design approval under this section, and in any subs _ertuent Comission proceed _,ing involving a facility

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ptign for which a design approval has been granteo under this section

,th_e Comission shall not modify any final determination of an issue that has been considered and decided ir the design approval proceeding unless it determines, based on significant new information, that a modification is reoufred to protect the public health and safety or the common defense

.end security or to comply with the Comi_ssion's_ regulation ~s.

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), 33 f.(1) The Comission shell approve an amendment to a design approval issued under this section upon application by the holder of ih9 design approval if the Commission determines that the amendment will comply with this Act_ and the Comission's regulations.

(2) Any amendment approved by the Comission under paragraph (1) shall apply to any application _for a construction permit or cennbined l

construction permit and operating license referencing the design

. approval for which the emendment has been granted that is filed after the effective date of s'Jch amendment.

(3) Any amendment appyoved by the Comission under paragraph (1)

- shall not apply to an application for a construction permit or combined construction,n permit and operating license referencing the design approv61 for which the apendment has been granted that is filed before the effective date of each amendment unless (A) the applicant reauests that ,

such amendment apply to the application, or (B) the requirements of subsecti,on (e) are satisfied with respect to the amendment.

l (g) Any application for a construct,lon pemit, an operating license or a combined castruction permit and operating 11cerse or any amendment to such licenses referencing a design aEPloval issued under this section my include a request for a variance from one or more F elements _of the design approval . Such requests shall be granted if

- the Comission determines that the variance will comply with this Act and the Comission's reculatiens. Ar.y variance issued under this

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section._shall be limited to the pemit or license for which such variance has been requested. ,

1 TITLE II -- MISCELLANEOUS PROVISIONS -1 l

Definitions i Sec. 201. Section 11 of the Atemic Energy.Act of 1954, as amended, is amended by adding new subsection dd. as follows:

dd.= "Themal neutron power generation facility" means a utilization facility whi_ch is designed to produce elec'trical energy and in which core, power is designed to be produced predominantly by themal neutron _

fission.

Section 202. For the purposes of this Act the term " standardized design" means a design which the Commission detemines is sufficiently detailed and complete to support licensing of a comercial production or utilization facility or approval of a major portion of such a facility when referenced in an application for a construction permit and operating license or a design antrovat and which is usable for a multiple number of units and/or at a mitiple number of sites without reopening or repeating the review.

Sec. 203.a. The Commission shall, within one hundred and eighty days following the effective date of this section, propose regulations establishing procedures and criteria for implementing the provisions of sections 185 d., 193 f., and 194 e. of this Act for the control of the

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application of new requirements to any thermal . neutron power generation facility licensed for construction or operation under this Act.

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b. After the regulations referred to in subsection a. of this section become effective, no license, permit or approval granted under this Act for a themal neutron power generation facility shall be modified except pursuant to such regulations.

TITLE III -- CONFORMING AMENDMENTS Antitrust Provisions Sec. 301. Subsection 105c. of the Atomic Energy Act of 1954, as amended, is arended in the first sentence of paragraph (2) by inserting "and/" after the word " construct."

General Provisions Sec. 302. Section 161 o. of the Atomic Energy Act of 1954, as amended, is amended by inserting the words "or aoproval: authorized by section 193 and 194" after the number "104."

License Applications Sec. 303. Subsection 182 b. of the Atomic Energy Act of 1954, as amended, is amended to read as follows:

b. The Advisory Committee on Reactor Safeguards shall review each application under section 103 or section 104 b. for a construction permit and/or an operating license for a facility; any application

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under section 104 c. for a ' construction permit and/or operating license for.a testing facility; any application under section 104 a.  !

or c. specifically referred to it by the Commission; any application for a site permit under section 193; any proposed approval for a facility design under section 194; any proposed authorization to commence operation under section 185 b.; and .any application for an amendmont to a construction permit or to an operating license under section 103 or 104 a., b., or c. or an amendment or renewal of a site permit under section 193 or an amendment or renewal of an approval for a facility desion under section 194 specifically referred to it by the Commission, and shall submit a report thereon which shall be made a part of the record of the application and available to the public except to the extent that security classification prevents disclosure.

Revocation Sec. 304. Section 186 a. of the Atomic Er.ergy Act of 1954, as amended, is amended by inserting the words " sections 182,185,193 and 194" after the words " required under."

Table of Contents Sec. 305. The Table of Contents for the Atomic Energy Act of 1954, as amended is amended by changing the title of section 185 to read

" Construction Permits and Operating Licenses" and by adding the following after section 192:

Sec. 193. Early Site Review. Sec.194. Approval of Designs.

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. TITLE IV --' EFFECTIVE DATE

-Sec. 401.' All sections of this Act shall take effect as of the date of enactment, and shall apply to all proceedings pending as'of the date of enactment or commenced on or after the date of enactment, in accordance with the terms of this Act.

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