ML19210D979

Responds to 791019 Order Requesting Views on Jurisdictional & Procedural Issues.Nrc Failed to Comply w/791004 Deadline for Implementation of Executive Order 12114.NRC Is Restrained from Action on Westinghouse Application

ML19210D979
Person / Time
Site:	05000574
Issue date:	11/12/1979
From:	Kenneth Jones NATIONAL LAWYERS GUILD, SEATTLE CHAPTER
To:	NRC COMMISSION (OCM)
Shared Package
ML19210D977	List: ML19210D976 ML19210D979
References
NUDOCS 7911290117
Download: ML19210D979 (12)

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\Q' '?"H i RS n the Matter of

) APPLIC ATION NO. XR-120 WESTINGHOUSE ELECTRIC CORP. DOCKET NO. 11000495 (Exports to the Philippines) ) APPLICATION NO. XCOM-0013

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RESPONSE TO THE NUCLEAR REGULATORY COMMISSION'S ORDER OF OCT. 19, 1979 BY THE NATIONAL LAWYER'S GUILD, SEATTLE CHAPTER By its Order of October 19, 1979, the Nuclear Regulatory Commission requested "that participants and any other interested persons file with the Commission a statement of views on the procedural and jurisdictional issues" set forth in said order.

If we were to formally address the issues outlined by the Commission, it would be the position of the National Lawyer's Guild, Seattle Chapter, that the NRC has both a legal and moral obligation to consider each of the seven issues upon which petitioners have requested a hearing.

However, it is our position that the Nuclear Regulatory Commission has failed to comply with the October 4, 1979 deadline for implementation of Executive Order 12114. Such failure precludes any action on either Application No. XR-120 or Application No. XCOM-0013, unless and until adequate procedures are promulgated to implement this order.

ARGUMENT On January 4, 1979,thePresidentissuedl5$fdhtyv@$

Order 12114, entitled " Environmental Effects Abroad of Major Federal Actions." A copy of the Executive Order and the White House Fact Sheet issued. January 5, 1979, entitled

" Executive Order on Environmental Effects Abroad" are 7011290117

attached hereto as Exhibits A and B, respectively.

The purpose of the Executive Order is described in Sec3 ion,1, which states that the order furthers the purpose of NEPA and other acts regarding actions taken with respect to the environment outside the United States. Section 2-1 requires every federal agency taking major federal actions having significant effects on the environment outside the geographical borders of the United States to adopt proce-dures no later than October 4, 1979 to i.plement this Execu-tive Order. Section 2-3 defines major federal actions en-compassed by the order, and provides that all affected federal agencies shall establish procedures by which "their officers having ultimate responsibility for authorizing and approving" those major actions "take into consideration in making decisions concerning such actions" the environ-mental documents specified in Section 2-4. Section 2-4 describes the types of documents to be utilized in con-nection with various Section 2-3 actions. Section 2-5 exempts certain actions from the Executive Order, but none of the exemptions are applicable either to the NRC general-ly or to the Philippine National Power Corporation project at Napot Point, in particular. See accompanying White House Fact Sheet, at p. 2 (nuclear reactors are subject to the environmental review requirements of the order).

Under Executive Order 12114, the NRC is under the affirmative duty to adopt procedures to implement the order no later than October 4, 1979 Section 2-3(c) is determinative of the applicability of the Executive Crder

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1434 186

to the NRC 's approval of applications XR-120 and XCOM-0013, seeking authorization for export to the Philippines a " nuclear facility", and " components . . . which would permit construc-tion activities related to the facility," respectively. See NRC Order on Application No. XR-120, Docket No. 110-0495.

Application No. XCOM-0013, dated October 19, 1979, pp. 1, 2 (hereinafter NRC Order).

Section 2-3(c) brings the following actions within the requirements of the Executive Order:

" major Federal actions significantly affecting the environment of a foreign nation which provide to that nations (1) a product, or uhvsical nroject producing a nrin-cinal_ product or an emission or effluent, which is prohibited or strictly regulated by Federal law in the United States because its toxic effects on the envir_onment create a serious nublic health risk; or (2) a uhysical oroject which in the United States is prohibited or strictly reculated by Federal law to nrotect the environment against radioactive substances.

(Emphasis supplied).

The White House Fact Sheet accompanying tne Executive Order gives as an example of an action within Section 2-3 (c) (2): "U.S. exports of nuclear reactors. "

The only exemption which even arguably would apply is listed in Section 2-j(a)(v). Significantly, by its spec.'.fic language, Section 2-5(a)(v) excepts from the exemp-tion therein " actions providing to a foreign nation a nuclear production or utilization facility as defined in the Atomic Energy Act of 1954, as amended . . ." Again, the White House Fact Sheet illustrates the scope of the contemplated exemption

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" Nuclear reactors are subject to the environmental review requirements of the Order, but exports of nuclear fuel are not."

Direct support for the contention that the Nuclear Regulatory Commission's foreign health, safety and environ-mental jurisdiction applies to applications XR-120 and XCOM-0013 came from a Memorandum of the Council on Environ-mental Quality published in the Federal Register, Vol. 44, No. 62, March 29, 1979 Within the memorandum the CEQ lists the categories encompassed by Executive Order 12144 stating among the categories the following:

3 Major Federal actions significantly affecting the environment of a foreign nation which provide to that nations (b) A physical project which in the U.S. is pro-hibited or strictly regulated by Federal law to protect the environment against radioactive substances except for actions exempted by Section 2-5(a)(v). This category includes nuclear reactors . . .

This express language leaves no doubt that the NRC has and must exercise its jurisdiction to consider healt'r, safety and environmental factors when deciding licensing applica-tions for exported nuclear readcrs in foreign countries, e . g. the Philippines.

The requirement to consider international effects of a major federal action exists independently of the order and the CEQ Memorandum, in NEPA, see 42 U.S.C. 54332( 2)(F) (agencies have duties to recognize world wide and long-range character of environmental problems); id. g4332 (2)(C) (EIS's must

-4 i434 188

address environmental impacts of major federal actions sig-nificantly affecting the quality of the human environment; scope not limited to environment within United States); 40 CFR g 1500.8(a) (agencies must assess positive and negative effects of proposed action as action affects both national and international environment).

The NRC has not implemented the Executive Order, although it clearly is required to do so by the plain and unambiguous terms of the order. Cf. Calvert Cliffs ' Coordinatine Com-mittee v. A . E. C . , 449 F. 2d 1109, 2 ERC 1779 ( D. C . Cir . 1971),

cert denied, 404 U.S. 982 (1972) (NRC does not have discre-tion to delay implementation of NEPA beyond effective date provided in statute). Nor has the NRC satisfied the subse-quent environmental review requirements of the Executive Crder with respect to the environmental effects of the proposed nuclear facility upon the environment of Luzon Island in the Phillipines.

Thus, the conclusion is inescapable that Executive Order 12114 is applicable to the Napot Point project, and that the NRC has not established procedures to implement the order as it is required to do by the order itself and by NEPA. See Calvert Cliffs', supra.

The mandatory procedures to be adopted are designed to insure that responsible NRC officers wP make decisions re-garding such applications and other major actions, take into consideration environmental considerations. Sections 2-4(a)

. (ii) and (iii) delineate the environmental impact documentation I434 l09

which the officers shall take into consideration when re-viewing applications for the exportation of nuclear facili-ties. Thus, the Executive Order is a mandate for both the review and consideration of specified environmental impact documents, and the promulgation and adoption of procedures designed to insure responsible officers take environmental effec',s on foreign nations into consideration.

Therefore, the NRC has jurisdiction, and under the Execu-tive Order no discretion to not exercise its jurisdiction, to examine " health, safety and environmental questions arising from the construction and operation of exported nuclear fac-ilities." NRC Order, p. 3 The six issues posed for response by interested parties are among those issues and procedures which the Executive Order mandates the NRC to adopt no later than October 4, 1979 The National Lawyers Guild, Seattle Chapter, therefore asserts that the NRC is constrained and prohibited from ap-proving Westinghouse Electric Corporation applications XR-120 and XCOM-0013, and from taking any other major federal action until the NRC has adopted procedures to implement Executive Order 12114, and until those procedures ha're been followed in reviewing the Westinghouse applications in this docket.

Dated 12 November 1979 Respectfully submitted, National Lawyers' Guild Seattle Chapter s e sy, m/ / / /

Kirk W. Jones s

Linda Collier Rob Carr 434 190

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THE PRESIDENT 1957-

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i 'litle 3 I The President Executive Order 12114 of January 4,1979 .-

l Environmental Effects Abroad of Niajor Federal Actions .

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By virtue of the authority vested in me by the Constitution and the laws of th'e.

' ?V C United States, and as President of the United States, in order to further l 'P g @ Nob s(,

environmental objectives consistent with the foreign policy and national N

ML, security policy of the United States. it is ordered as follows:- ,

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,,d ,G i 3 3' t_l-. 1-1. Purpose and Scope..The purpose of this Executive Order is t'o enable j [ responsible officials of Federal agencies having. ultimate responsibility for-4 'C

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-authorizing and approving actions encompassed by this Order to be infor:ried .

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.s @ of pertinent environmental considerations and to take such considerations W D 6 into account, with other pertinent considerations of national policy. in makinga decisions regarding such actions. While based on independent authority, this j

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- Order. furthers the purpose.of the National Environmental Policy Act and;the . ,

hiarine Protection.Research and Sanctuaries Act and the Deepwater Port Act ,

consistent with the foreign policy and national security policy of the UnitedV 1

States, and represents the. United States government's exclusive and complete determination of the procedural and other actions to be:taken by Federali agencies to further the purpose of the National Environmental Policy Act, with. .

respect to the environment outside the United States, its territories and- -

possessions. .

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,1 i 2-1. Agency Pmcedures. Every Federal agency taking major Federal' Actions encompassed he eby and not exempted herefrom having significant effects on the environment outside the geographical borders of the United States and its, territories and possessions shall within eight months after the effective date of

. this Order have in effect procedures to implement this Order. Agencies shall' consult with the Department of State and the Council on Environmental Quality concerning such procedures prior to placing them in effect.

2-2. Information Lenange. To assist in effectuating the foregoing purpose, he -

Department of State and the Council on Environmental Quality in collabora-tion with other interested Federal agencies and other nations shall conduct a

- program for exchange on a centinuing basis of information concerning the-environment. The objectives of this program shall be to provide information for use by decisionmakers, to heighten awareness of and interest in environ-mental concerns and, as appropriate, to facilitate environmental cooperation with foreign nations. ,

2-3cActions Included.' Agencies in their procedures under Section 2E,shall -

i establish procedures by which their officers having ultimate responsibil.:ty for ~

authorizing and approving actions in one of the following categories encom-passed by this Order, take into consideration in making decisions concerning such actions, a document described in Section 2-4(a).

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(a) major Federal actions significantly affecting the environment of the global commons outside the iurisdiction of any nation (e.g.. the oceans or Antarcticah

- (b) major Federal actions significantly affecting the environrnent of a foreign-nation not participating with the United States and not otherwise involved in .

the action, ,

(c) major Federal actions significantly affecting the environment of.a forei[ ~

nation whicha provide to that nation: -

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or effuent. which is prohibited or strictly regulated by Federal law in the V.$

Cnited States because its toxic effects on the environment create a serious '73 public health risk; or :_.. . -n ~

(2) a physice ,.miect which:in the United States is prohibned

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regulated by Federal law to protect the environment aghinst radioactive q substances.

, ji (d) major Federal actions outside the United States. its territories and posses- 4

.A siens which significantly. affect natural or ecological resources of global importance designated for protection under this subsection by the President. $1%

- or, in the case of such a resource protected by international agreement binding M

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nn the . United States. by the.. Secretary of State. Recomrnendations to the

. President under-this subsec:fon.shall be accompanied by the-views of"the M. i#

Council on Environmental Qtdlity and the Secretary of State. , x .m "&,

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• 2-4. ApplicabliPd edures. c {a)Th,ere are the following types of'diic?uments to. ~f r

be used in connection with actions described in Section 2-3: J .:'L .

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(il environmentalimpact statements (including generic. program and specific ,, ' ;.g -

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proposed action. by the United States and one more foreign nations, or by an i internanonal body or organization in which tae United States is a memberor -@M l partic2 pant or ... -M ,

(iii) concisa reviews of the envirocnental issues involved. inclucIing environ- d L mental assessments, summary environmental analyses or.other appropriate- > g.g documents. -m . . l-9d3 ,

(b) Agencies shall in their procedures provide for preparation of documents i~.%

desc.%d in Section 2-4(a). with respect to actions described in Section 2-3. 4Q 45 follows: -

-g (il for effects described in Section 2-3(a). an environmental impact statement described in Section 2-4(a)(i); @i'$7%

00 fer effects described in Secdon 2-3(b), a document described i:t Section 2- 3 4(a)(ii) oz (iii), as determined by the agency: , Q~L

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n' L (iv) for e.ffects described in Section 2-0(d). a document described in Secdon 2- .

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Such procedures may provide.that an agency need not prepare a.new docu. _5.?

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(c) Nothing in this Order shail sArve to invalidate any existing regulations or - M.6 G "any judicalagency settlement which of anyhave case been adopted or to prevent any pursuant to court orderor agency from.providing in its- n; pursua

. procedures for measures in addition to those provided for herein to funher the.- .

purpose of the National Environmental Policy Act and other environmental .f'M ,

laws, incInding'the Marine Protecti~on Research and Sanctuaries ~Act and the

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' Deepwater Port Act. consistent with the foreign and national security nicies .

of the United States. ~. ,gyg .j d

(d) Except aiprovided in SectiodO-5(b). agencies taking action encompassed by-this Order shall as soon as: feasible, mform other Federal agenc:es with "d,j

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P00R O N relevant expertise of the availability of environmentai documents prepared ander this Order.

Agencies in their precedures under Section 2-1 shall make appropriate provi-sion for determining w'n en an affected nation chall be informed in acccrdance with Section 3-2 of this Order of the availability of environmental documents prepared pursuant to those procedures.

- In order to avoid duplication of resources agencies in their proce'dures shall _

provide for appropriate utilization of the resources of other Federal agencies with relevant environmentallurisdiction or expertise. .. . .-

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2-5. Detnptions And Consideictions. (a) Notwithstanding*.Section 3. the: , L following actions are exempt from this. Order- , , ,g., y . ,. ., .,,,. ;

m -(i) actions not having alsignificant effect on the environment outside' the * "

2 United States as determined by the agency:

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(ii) actions taken by the President: ~ '-

f '- y 7 fe-(iii) actions take'it by or pursuant to the direction of the-President or Cabinett - '

off3cer when the national security or interest is involved or:when the action _. ,-

occurs in the course of an armed. conflict: '

(iv) intelligence activities anIarms transfers: ,

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(v) export licenses or permits or export approvals, and actions relating to --

auclear activities except actions providing to a foreign nation a nuclear 1

production or utuization facility as defined in the Atomic Energy Act of 1954.

as amended. or a nuclear waste management facility; (vi) votes and other actions in laternational conferences and organizations; (viil disaster and emergency relief action. -

(b) Agency procedures under Section 2-1 implementing Section M may proude for appropriate modifications in the contents, timing and avalfability

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j necessary to-I (il enable the agency to decide and act promptly as and when required; j lii) avoid adverse impacts on foreign relations or infringement in fact or appearance of other nations' sovereign responsibilities. or I

i (iii) ensure appropriate reflection d ~

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(1) diplomatic factors: ,

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(2) international commerciah competitive and export prom $tiod fa (3) needs for governmental or commercial confidentiality:{. . l (4) na tional security consideratioits: '7, -

(5) difficulties of obtaining information and agency ability to analyze meaning-fully environmental effects.of a proposed action: and ~

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(6) the degree to which the asency is involved in or 2.ble to affect a decision.to _.-..

be madet -- ' T .-

(c) Agency procedure under Section 2-1 may provide folr' categorical exclu- -

sions and for such exemptions in addition to those specified in subsection (a) . .a of this Section as may be necessary to meet emergency circumstances. -

situations involving exceptional foreign policy and national-security sensitivi-ties and other such special circumstances In ut:lizing such' additional exemp 4 rsomu. ucasret. vet. u. wo. 6-ruesoAr. w.uAar 9 inn ,'

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tions agencies shall as soon as feasible, consult with the'Bepartment of State 'h ,

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(d) The provisions of Section 2-5 do not apply to actions described in Section. ' *i 2-3(a).unless permitted by law. 5

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Internal procedures for Federal agencies to consider the significant effects of.

their actions on the environ =ent ortside the United States,its territories and . h

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possessions, and nothing in this Order shall be construed.to create a cause of {ri action. -

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3-2. Foreign Relations.2Tiie' Department of State shall coordinate all communi 1 [h cations. by agencies with' foreign governments concerning environmental : .@ ,

. agreements and other arrangements in implementation of this Order.

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in Multi or an action Agency programActionsi e Where more than one Federal agen -d involved, shall have respansibility for implementation of this, Order.

.g I 3-4. Certcitt 7erms. For. purposes of this Order, " environment" means the N, natural and physical environment and excludes social, economic and other N l environments

and an action significantly affects the environment if it does -

significant barrf to the< environment even though on balance the agency ';

believes the action to be-beneficial to the environment. The term " export it approvals" in Section 2-5(a)(v) does not mean er include direct loans. to '.9 finance exports.  ;;y,

---3-5. Multiple Impacts. Il'a maior Federal action having effects on the environ. Yi ment of the United States or the global commons requires preparation cf an - 1' environmental imoact statement, and if the action also has effects en the a environment of a foreign nation, an environmentalimpact statement need not S' be prepared with respect to the effects on the environment of the foreign j '

na tion. ~

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