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1975/04/25 S994 Nuclear Regulatory Commission Supplemental Appropriation Authorization
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1975/04/25 S994 Nuclear Regulatory Commission Supplemental Appropriation Authorization
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The original documents are located in Box 24, folder "1975/04/25 S994 Nuclear Regulatory
Commission Supplemental Appropriation Authorization" of the White House Records
Office: Legislation Case Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 24 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
APPROVED
(s/ 4/25
ACTION
THE WHITE HOUSE
APR25 1975
Last Day: April 25
WASHINGTON
April 21, 1975
Postal
MEMORANDUM FOR THE PRESIDENT
4/25/75
FROM:
To when
SUBJECT:
Enrolled JIM CANNON June Bill S.
994 - Nuclear
Regulatory Commission Supplemental
Appropriation Authorization
Attached for your consideration is S. 994, sponsored
by Senator Pastore, which authorizes supplemental
appropriations of $50.2 million to the Nuclear
Regulatory Commission for FY 75.
The NRC originally requested $56.4 million in
supplemental appropriations. The enrolled bill
reduces the request by $6.2 million to reflect
the receipt of a larger amount of revenues than
initially anticipated.
Additional information is provided in OMB's enrolled
bill report at Tab A.
NRC, OMB, Max Friedersdorf, Phil Buchen (Lazarus)
and I recommend approval of the enrolled bill.
RECOMMENDATION
That you sign S. 994 at Tab B.
Press affece (Thym Smith) notified 4/25/75 pan)
SERVICE R. FORD JURANT
EXECUTIVE OFFICE OF THE PRESIDENT
APPROVED APR 25
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
APR 1 8 1975
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill S. 994 - Nuclear Regulatory Commission
Supplemental Appropriation Authorization
Sponsor - Sen. Pastore (D) Rhode Island
Last Day for Action
April 25, 1975 - Friday
Purpose
Authorizes supplemental appropriations of $50.2 million to the
Nuclear Regulatory Commission for fiscal year 1975.
Agency Recommendations
Office of Management and Budget
Approval
Nuclear Regulatory Commission
Approval
Discussion
The 1976 Budget included a 1975 supplemental appropriations
estimate of $56.4 million for the Nuclear Regulatory Commission
(NRC). On February 3, 1975, the NRC transmitted to the Congress
proposed legislation to authorize those appropriations. This
enrolled bill differs from that proposal by reducing the request
by $6.2 million to reflect the receipt of a larger amount of
revenues to offset budget authority than initially estimated.
A. Change in Revenue Treatment ($32.8 million). The Atomic
Energy Commission retained most of the revenues it received and
used them to offset budget authority requirements. Almost all
Federal agencies with similar functions deposit their revenues
in the Treasury and obtain their full budget authority through
the appropriations process. The 1976 Budget proposed that
revenues of NRC be treated in this manner, because (1) NRC's
2
revenues constitute a larger proportion of its budget authority
than did AEC's, and a fluctuation in revenues would have a
greater impact on NRC's program level, and (2) there is a
serious question whether a regulatory agency should be dependent
for its operations on revenues from those who are being regu-
lated.
The original estimate of revenues for 1975 was $50 million.
Because it was anticipated that $11 million would be collected
by AEC prior to the transfer of functions to the NRC, the
authorization bill transmitted by NRC included $39 million to
compensate for funds that would be deposited in the Treasury.
However, because the actual revenues received prior to transfer
were $17.2 million, the enrolled bill reduces the requested
amount by $6.2 million.
B. Refunds to Licensees ($9.5 million). Since October 1, 1968,
the AEC charged licensing and inspection fees to cover the costs
of administering regulatory programs. The U.S. Supreme Court
in two cases decided in March 1974, ruled that regulatory agency
fees based solely on the cost to the Federal Government were
unconstitutional in that they constitute a tax and not a fee
(National Cable Television Association, Inc. V. United States and
Federal Power Commission V. New England Power). The enrolled
bill includes the requested $9.5 million to make the necessary
refunds of fees collected since the inception of AEC's fee
schedule in 1968.
C. Additional Expenses. The amount authorized by the enrolled
bill also includes a requested $7.9 million for other expenses
related to establishment of NRC as a separate agency:
$2.2 million for central administrative functions
previously performed by AEC and for new responsi-
bilities under the Energy Reorganization Act of
1974.
$3.0 million for special studies required by that
Act. In its report, the Joint Committee on Atomic
Energy expressed concern over the extent to which
NRC planned to contract for these studies with
private organizations and recommended that available
3
Government expertise be used to maximum extent
possible.
$2.7 million for other expenses.
James Assistant m. Director Trey for
Legislative Reference
Enclosures
EXECUTIVE OFFICE OF THE PRESIDENT
K. 4-15-25 Needrike
OFFICE OF management AND BUDGET
WASHINGTON, D.C. 20503
APR 1 8 1975
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill S. 994 - Nuclear Regulatory Commission
Supplemental Appropriation Authorization
Sponsor - Sen. Pastore (D) Rhode Island
Last Day for Action
April 25, 1975 - Friday
Purpose
Authorizes supplemental appropriations of $50.2 million to the
Nuclear Regulatory Commission for fiscal year 1975.
Agency Recommendations
Office of Management and Budget
Approval
Nuclear Regulatory Commission
Approval
Discussion
The 1976 Budget included a 1975 supplemental appropriations
estimate of $56.4 million for the Nuclear Regulatory Commission
(NRC). On February 3, 1975, the NRC transmitted to the Congress
proposed legislation to authorize those appropriations. This
enrolled bill differs from that proposal by reducing the request
by $6.2 million to reflect the receipt of a larger amount of
revenues to offset budget authority than initially estimated.
A. Change in Revenue Treatment ($32.8 million). The Atomic
Energy Commission retained most of the revenues it received and
used them to offset budget authority requirements. Almost all
Federal agencies with similar functions deposit their revenues
in the Treasury and obtain their full budget authority through
the appropriations process. The 1976 Budget proposed that
revenues of NRC be treated in this manner, because (1) NRC's
THE j LIBRARY 07V839
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: April 18, 1975
Time: 600pm
Warren Hendriks
FOR ACTION: MIKe Duval
CC (for information):
Jim Cavanaugh
Max Friedersdorf
Jack Marsh
Ken Lazarus
FROM THE STAFF SECRETARY
DUE: Date: April 21
Time: 200pm
SUBJECT:
Enrolled Bill S. 994-Nuclear Regulatory Commission
Supplemental Appropriation Authorization
ACTION REQUESTED:
X
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnstna, Ground Floor West Wing
FORD - LISTARY
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately,
For the President
UNITED STATES
NUCLEAR REGULATORY COMMISSION
WASHINGTON, D. C. 20555
APR I 1 1975
Mr. J.F.C. Hyde, Jr.
Acting Assistant Director
for Legislative Reference
Office of Management and Budget
Dear Mr. Hyde:
The Nuclear Regulatory Commission is pleased to respond to your request
for its views and recommendations on Enrolled Bill S. 994, a bill "[t]o
authorize supplemental appropriations to the Nuclear Regulatory Commis-
sion for fiscal year 1975.
The Bill would authorize to be appropriated to the Nuclear Regulatory
Commission to carry out the provisions of section 261 of the Atomic Energy
Act of 1954, as amended, and section 305 of the Energy Reorganization Act
of 1974, $50,200,000 for fiscal year 1975.
The funds to be appropriated are necessary for the operation of the Commis-
sion for the remainder of the fiscal year. Accordingly, the Commission
recommends that the President sign the Enrolled Bill.
Sincerely,
William
William A. Anders
Chairman
AMERICAN REVOLUTION WIDENTENNAL
1776-1976
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date:
April 18, 1975
Time: 600pm
Warren Hendriks
FOR ACTION:
Mike Duval
CC (for information):
Jim Cavanaugh
Max Friedersdorf
Jack Marsh
Ken Lazarus
FROM THE STAFF SECRETARY
DUE: Date:
April 21
Time: 200pm
SUBJECT:
Enrolled Bill S. 994-Nuclear Regulatory Commission
Supplemental Appropriation Authorization
ACTION REQUESTED:
X
For Necessary Action
For Your Recommendations
Prepare Agendu and Drief
Drafi Reply
X For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
No objection. However, the following might be noted with respect to
the $9. 5 million authorization for refunds to licensees. First, in
the National Cable and New England Power cases, the court did not
reach any issues of constitutional dimension -- the ruling only
precludes the imposition of any fees for which there is no "value
received". Second, the $9.5 million authorization figure is intended
to cover claims only against the imposition of clearly unauthorized
"annual fees" and it is anticipated that the actual appro priation for
this item will approximate only $5 million.
Ken Lazarus
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
Yor the
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date:
April 18, 1975
Time: 600pm
Warren Hendriks
FOR ACTION:
Mike Duval
CC (for information):
Jim Cavanaugh
Max Friedersdorf
Jack Marsh
Ken Lazarus
FROM THE STAFF SECRETARY
DUE: Date: April 21
Time: 200pm
SUBJECT:
Enrolled Bill S. 994-Nuclear Regulatory Commission
Supplemental Appropriation Authorization
ACTION REQUESTED:
X
For Necessary Action
For Your Recommendations
Prepare Agendu and Drief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
OK
Milo Dlwal
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you unticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
Yor the STUDIOUS
THE WHITE HOUSE
WASHINGTON
April 21, 1975
MEMORANDUM FOR:
WARREN HENDRIKS
FROM:
MAX L. FRIEDERSDORF M.G.
SUBJECT:
Action Memorandum - Log No.
Enrolled Bill S.994 - Nuclear Reg. Comm.
Supplemental Approp. Authorization
The Office of Legislative Affairs concurs with the Agencies
that the
enrolled bill be signed.
Attachments
FORD &
94th Congress
1st Session
}
HOUSE OF REPRESENTATIVES
{
REPORT
No. 94-100
AUTHORIZING SUPPLEMENTAL
APPROPRIATIONS TO THE
NUCLEAR REGULATORY COMMISSION
FOR FISCAL YEAR 1975
REPORT
BY THE
JOINT COMMITTEE ON ATOMIC ENERGY
[To accompany H.R. 4224]
MARCH 20, 1975.-Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
38-006
WASHINGTON : 1975
94TH CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
1st Session
No. 94-100
AUTHORIZING SUPPLEMENTAL APPROPRIATIONS TO
THE NUCLEAR REGULATORY COMMISSION FOR FIS-
CAL YEAR 1975
MARCH 20, 1975.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
JOINT COMMITTEE ON ATOMIC ENERGY
JOHN O. PASTORE, Rhode Island, Chairman
Mr. PRICE. from the Joint Committee on Atomic Energy,
MELVIN PRICE, Illinois, Vice Chairman
submitted the following
HENRY M. JACKSON, Washington
JOHN YOUNG, Texas
STUART SYMINGTON, Missouri
TENO RONCALIO, Wyoming
JOSEPH M. MONTOYA, New Mexico
MIKE McCORMACK, Washington
REPORT
JOHN V. TUNNEY, California
JOHN E. MOSS, California
HOWARD H. BAKER, JR., Tennessee
JOHN B. ANDERSON, Illinois
CLIFFORD P. CASE, New Jersey
MANUEL LUJAN, JR., New Mexico
[To accompany H.R. #224.]
JAMES B. PEARSON, Kansas
FRANK HORTON, New York
JAMES Is. BUCELEY, New York
ANDREW J. HINSHAW. Califoria
GEORGE F. MURPHY, Jr., Executive Director
The Joint Committee on Atomic Energy, having considered H.R.
JAMES B. GRAHAM, Assistant Director
4224, to authorize supplemental appropriations to the Nuclear Regula-
ALBION W. KNIGHT, Jr., Professional Staff Member
tory Commission for fiscal year 1975, hereby report without amend-
WILLIAM C. PARLER, Committee Counsel
ment the bill and recommend that the bill do pass.
RANDALL C. STEPHENS, Assistant Counsel
CoL. SEYMOUR SHWILLER, USAF (Ret.), Technical Consultant
NORMAN P. KLUG, Technical Consultant
SUMMARY OF THE BILL
WILLIAM J. MINSCH, Jr., Special Counsel
LAWRENCE F. ZENKER, GAO Consultant
This bill authorizes supplemental appropriations of $50,200,000 to
CHRISTOPHER C. O'MALLEY, Printing Editor
the Nuclear Regulatory Commission (NRC) for fiscal year 1975. This
(II)
authorization is in addition to $90,765,000 which was authorized for
the Atomic Energy Commission for fiscal year 1975 by Public Law
03-276, and was transferred to the Nuclear Regulatory Commission
on January 19, 1975, when the Atomic Energy Commission was
abolished pursuant to the Energy Reorganization Act of 1974, Públic
Law 93-438, and its functions were transferred to the newly established
Nuclear Regulatory Commission and Energy Research and Develop-
ment Administration. The supplemental request is needed primarily
because of a change in the treatment of revenues received by the new
Commission and because of new responsibilities which NRC is required
by Public Law 93-438 to undertake.
BACKGROUND
On February 3, 1975, the Nuclear Regulator Commission trans-
mitted to the Congress a request for an increase in appropriations for
fiscal year 1975 of $56,400,000 (see appendix). On February 12. 1975,
Senator John 0. Pastore, Chairman of the Joint Committee on Atomic
Energy, introduced, by request, S. 674, authorizing appropriations of
(1)
2
3
such funds as are necessary to carry out the functions and responsibil-
property) and utilize them as an offset against budget authority. Vir-
ities of the Nuclear Regulatory Commission for fiscal year 1975. On
tually all other Federal agencies deposit such revenues to the miscel-
February 19, 1975, Representative Melvin Price, Vice Chairman of
laneous receipts of the U.S. Treasury and obtain their full budget
the Joint Committee, introduced an identical bill, H.R. 3275, by
authority through the appropriations process.
request.
The new Nuclear Regulatory Commission proposes to treat its reve-
On March/4, 1975, Vice Chairman Price introduced H.R. 4224, a
substitute bill, in lieu of the above measure. This bill was introduced by
nues in the same manner as the other Federal agencies. The Commis-
sion witnesses testified that there are two reasons for proposing this
Chairman Pastore on March 6, as S. 994. The full committee met on
change. NRC's revenues constitute a greater percentage of its budget
March 20 in open session and voted without dissent to report those
authority than did AEC's and thus fluctuations in revenues would
bills favorably without amendment and to adopt this report.
have a more significant impact on NRC's operations. For, instance,
HEARINGS
the anticipated shortfall of $28 million in revenues for fiscal year
1975, as compared to the estimate of $50 million made at the time
On February 20, 1975, the Subcommittee on Legislation of the Joint
the 1975 budget was approved by Congress, would represent about a 20
Committee on Atomic Energy held an open hearing on the request for
percent decrease in the total funds available to the agency. A shortage
authorization of supplemental appropriations. Testimony was pre-
of this magnitude could not be accommodated without significant dis-
sented on behalf of the Nuclear Regulatory Commission by Chairman
locations in the Commission's operations.
William A. Anders; Commissioner Edward A. Mason; Lee V. Gos-
Perhaps of more significance is the question whether a regulatory
sick, Acting Executive Director for Operations; Andrew W. Jackson,
agency should be dependent on revenues from those who are being
Jr., Acting Controller; Donald F. Knuth, Director, Office of Inspec-
regulated for a significant portion of its funding. The committee con-
tions and Enforcement; Edson G. Case, Acting Director, Office of Nu-
curs with the Commission that it is essential that the NRC revenues be
clear Reactor Regulation; Howard Shapar, Acting General Counsel;
treated under the same method as that of most other Federal agencies.
Herbert J. Kouts, Director, Office of Nuclear Regulatory Research;
The original estimate for the fiscal year 1975 revenues of the Direc-
and Richard A. Miller, Chief, Business Management Branch, Office
tor of Regulation of the Atomic Energy Commission was $50,000,000.
of the Controller. The committee also heard testimony from Leo Good-
At the time the Commission prepared this supplemental request, it
man, chairman, Split Atom Study Group, and Harry W. Belfor, pri-
was anticipated that $11,000,000 would be received and applied to
vate citizen.
budget authority prior to the transfer of the regulatory functions to
COMMITTEE COMMENTS
NRC. It was proposed that NRC revenues not be applied to budget
authority. Thus, authorization of appropriations of $39,000,000 would
The Commission request was for an increase of $56,400,000 in their
have been required to replace those revenues.
fiscal year 1975 authorization. This consisted of (1) $39,000,000 to
However, $17,200,000 in fiscal year 1975 revenues were actually
replace anticipated revenues which under the Atomic Energy Com-
received by the AEC Office of the Director of Regulation prior to
mission would have been applied as an offset to budget authority but
January 19, 1975. Thus only $32,800,000 is actually required. This
which under NRC will be deposited directly to the miscellaneous re-
has been confirmed by NRC. That is the amount authorized by the
ceipts of the U.S. Treasury, (2) $9,500,000 for refunds of license fees
Joint Committee in this legislation for replacement of revenues.
which have been collected since 1968 based on a fee schedule that was
not in accordance with constitutional standards recently prescribed by
REFUNDS TO LICENSEES
the U.S. Supreme Court, and (3) $7,900,000 to support new activities
of NRC which were required by the Energy Reorganization Act of
The Commission's licensing and inspection fees have in the past been
1974 as well as various staff services required for NRC to function as
based essentially on the costs of administering those programs. The
a separate and independent agency. The Committee concurs with the
U.S. Supreme Court, in two cases decided in March 1974, ruled that
request of the Commission with the exceptions described below. The
regulatory agency fees based solely on the cost to the Federal Govern-
Committee has reduced the requested authorization by $6,200,000 be-
ment were unconstitutional in that they constitute a tax )rather than
cause the revenues received during fiscal year 1975 by the office of the
a fee (National Cable Television Assoc., Inc. V. United States, 94 S. Ct.
Director of Regulation of the Atomic Energy Commission prior to its
1146. and Federal Power Commission V. New England Power Co., 94
dissolution on January 19, 1975 exceeded by that amount the revenues
S. Ct. 1156).
expected to be received at the time the Commission request was sub-
The Nuclear Regulatory Commission is presently revising its fee
mitted to the Office of Management and Budget in November 1974.
schedule to reflect the criteria established by the Court in those cases.
The reduction will not in any way reduce the planned operations of
Those portions of all such fees collected since the initial establishment
NRC.
of AEC's fee schedules in October 1, 1968 which exceed the amounts
CHANGE IN REVENUE TREATMENT
acceptable under the standards enunciated by the Court will be re-
funded. NRC estimates that a total of $9,500,000 will be required for
The Atomic Energy Commission had been authorized for many
the refunds. The Joint Committee approves the authorization for
years to retain revenues it received (except those from disposal of
appropriations of the requested amount.
4
CT
ENERGY REORGANIZATION ACT
viated by the passage of that time, the Committee has not reduced the
request for personnel increases.
The NRC request of $7,900,000 for expenses related to the establish-
ment of a separate agency consists of the following items.
Contract Funds.-The Joint Committee is concerned by the extent
Request
to which NRC plans to conduct the special studies required by the
Personnel (205 positions)
$2,200,000
Energy Reorganization Act in part through new contracts with
Contract funds
private organizations. It would appear that the Commission and other
Energy center survey
1,500,000
Government agencies, as well as the national laboratories, have the
Nonreactor confirmatory research
700,000
Standards for new regulations
300,000
experience and the expertise required for most of the tasks under these
Security agency assessment
500,000
studies. These personnel should be utilized to the maximum extent
Housekeeping and equipment
1,700,000
possible. It is not apparent that the proposed allocation of effort
Goods and services on order
1,000,000
between NRC, other Government agencies, and contracts with private
Total
7,900,000
organizations is in accord with this objective. Minimization of the use
of new consultants and contractors is particularly important in the
Personnel.-The additional personnel consist of 148 positions
safeguards and security areas, because of the sensitivity of the infor-
designated for those functions which were previously administered
mation involved and the significant background of the Government
wholly or partly on a common basis for AEC's regulatory and develop-
and national laboratory personnel who could be utilized in the studies.
mental organizations by staff located at Germantown who have been
The Joint Committee recommends a reduction of the contract effort
transferred to ERDA. These include financial management, house-
for the Security Agency Assessment to $250,000. The Joint Committee
keeping services, liaison, nonregulatory legal functions, contracting
has not reduced the overall request of $700,000 for this study, but
personnel and other such functions. An additional 57 positions are
recommends a reallocation of funds within that level of effort SO that
for the new responsibilities imposed by the Energy Reorganization
more of the effort is performed by government personnel. This should
Act of 1974. These include the nonreactor confirmatory research pro-
allow for more efficient use of resources in accomplishing this critical
gram (8 positions), the nuclear energy center site survey (16 positions),
study. The Committee recommends that any savings realized from
an assessment for establishing a security agency (4 positions), the
this reallocation be used by the Commission to upgrade and strengthen
expanded safeguards program (22 positions), and the development of
its inspection practices and procedures, specifically in the nuclear ma-
regulations specifically required by the Act (7 positions).
terials accountability area.
Although there have been a substantial number of recent deferrals
The Joint Committee also notes with concern that the Special Safe-
and cancellations of proposed nuclear facilities, the Commission
guards Study of a plutonium economy involves what appears to be
testified that their analyses to date have not suggested any reduction
excessive dependence on new contracts with private organizations and
in current workload which would free personnel to take on the new
individuals. Although that study is not part of this supplemental re-
functions described above. It is anticipated that these developments,
quest, the Joint Committee also urges the Commission to reexamine
if not reversed, will, however, reduce the projected future workload
the allocation of effort under it.
of the Commission and thus reduce or postpone the need for future
Other Funds.-The Joint Committee recommends approval of the
staff increases.
request for $1,700,000 for Housekeeping and Equipment and for
The committee notes that the Commission's request reflects a
$1,000,000 for Goods and Services on Order.
substantial growth in the number of NRC personnel. As of Febru-
ary 10, 1975, NRC had a total of 1,815 personnel on-board, including
COST OF LEGISLATION AND BUDGET IMPACT
some 183 transfers from the developmental side of the Atomic Energy
Commission. NRC has projected that, with the addition of the 205
In compliance with clause 7 of Rule XIII of the Rules of the House
positions proposed to be authorized by the Supplemental and 36
of Representatives, the Joint Committee estimates that the following
other positions to be filled in fiscal year 1975, the on-board personnel
costs will be incurred if this bill and the subsequent appropriations are
by June 30, 1975 will total 2,056. The Joint Committee strongly
enacted into law.
recommends that the Commission-in view of this large growth and
Fiscal years
the sigfinicant numbers of plant delays and cutbacks-closely examine
Total costs
Millions
$17. 4
its operations to assure the maximum productivity and efficiency of
1975
its operations.
1976
6.9
There now remains only one quarter of the fiscal year in question.
1977 and thereafter
10. 5
It is hoped that this Legislation can be handled expeditiously by the
0
Congress. However, the Committee recognizes that the passage of
The difference between the total costs of $17.4 million reflected in
time may make it impossible for the Commission to bring on line all
the above table and the $50.2 million which is proposed to be author-
the new staff that the bill would authorize. Because of the impossi-
ized by this bill is the $32.8 million needed by NRC as a result of the
bility of projecting both the time at which the authorization can be
change in the treatment of revenues. Since this $32.8 million relates
enacted and the portion of the requested increase that would be ob-
only to a change in accounting for revenues, it will not have any ef-
fect on NRC's cost of operations.
6
CHANGES IN EXISTING LAW
This bill does not make any changes in existing law.
INFLATIONARY IMPACT
Pursuant to clause 2(1) (4), Rule XI, of the House of Representa-
APPENDIX
tives, the Joint Committee estimates that enactment of this bill and
the subsequent appropriations will have virtually no inflationary im-
pact on the U.S. economy. As indicated in the Cost of Legislation
Section NRC's cost of operations would only increase by $17.4 million
U.S. NUCLEAR REGULATORY COMMISSION,
which represents only about .005% of present Federal spending.
Washington, D.C., February 3, 1975.
Hon. CARL ALBERT,
Speaker of the House of Representatives.
DEAR MR. SPEAKER: In accordance with provisions of Section 305
of the Energy Recorganization Act of 1974, (42 U.S.C. 5801), we
are submitting proposed legislation to increase the authorization for
appropriations for the Nuclear Regulatory Commission by $56,400,000
for "Salaries and Expenses". This increased authorization is needed
to supplement those funds transferred to the NRC under section 202
of the Budget and Accounting Procedures Act of 1950, (31 U.S.C.
581c).
The authorization of supplemental appropriations for "Salaries and
Expenses" of $56,400,000 provides for accrued program costs of
$6,900,000, additional budget authorization of $39,000,000 required
due to the change in revenue application, $9,500,000 in refunds due
certain licensees resulting from a recent Supreme Court decision and
for $1,000,000 additional Selected Resources.
The Office of Management and Budget has advised that this legisla-
tive proposal is in accord with the President's program.
Sincerely,
WILLIAM A. ANDERS, Chairman.
U.S. NUCLEAR REGULATORY COMMISSION-ANALYSIS OF PROPOSED BILL
FOR SUPPLEMENTAL AUTHORIZATION OF APPROPRIATIONS UNDER SEC-
TION 305 OF THE ENERGY REORGANIZATION ACT OF 1974, FISCAL
YEAR 1975
A BILL To authorize supplemental appropriations to the Nuclear Regulatory
Commission for fiscal year 1975
Be it enacted by the Senate and the House of Representatives of the
United States in Congress assembled, That there are authorized to be
appropriated, for fiscal year 1975, such sums as are necessary to carry
out the functions and responsibilities of the Nuclear Regulatory Com-
mission, established by Section 201 of Public Law (88 Stat. 1233, 1242),
93-438.
SUMMARY
Salaries and Related Expenses.-Costs required to support the con-
duct of the activities of the Nuclear Regulatory Commission (NRC)
established by the Energy Reorganization Act of 1974 are estimated
at $6.9 million. This increase provides for 205 positions with related
costs, contractual services and equipment necessary to function as a
separate agency and to discharge programmatic requirements of the
Act.
(7)
8
9
New Obligational Authority.-The President's fiscal year 1975
istrative staff will form the nucleus of the administrative staff for
budget to Congress included $67.8 M in accrued costs for the Regula-
NRC, but will have to be augmented to carry out a variety of new
tory Activities program and associated revenue of $50.0 M. Since the
or expanded functions which were not required when the Regulatory
revenues obtained by the NRC will be deposited directly to miscel-
staff functioned as part of the overall AEC administrative effort.
laneous receipts and not be offset to requested level of budget author-
This augmentation will be accomplished partially by transfer of posi-
ity, $39.0 M (estimated receipts 12/31/74-$11.0 million) in new
tions and funds from other parts of the AEC to the Regulatory staff.
obligational authority is required for the operation of the new Com-
However, it is not possible to cover all of the NRC requirements by
mission. NRC would require additional authority in any event be-
such transfers since ERDA, the successor energy R&D agency, will
cause the revenues are not received on a scheduled basis. This would
also require former AEC staff for its functions as a separate agency.
make the day-to-day operations of a small agency impossible.
For example, the former AEC Congressional Relations Office will be
Increase or Decrease in Selected Resources-Refunds to Licensees.-
retained by ERDA, and NRC will have to establish its own Congres-
Refunds to licensees are required because of the Supreme Court
sional Relations function as will be the case with the basic AEC
decision of March 4, 1974, (National Cable Television Assoc., Inc. V.
financial management (Controller), public information, personnel,
United States, 94 S. Ct. 1146, and Federal Power Commission V. New
and a variety of other support functions which are required for any
England Power Co., 94 S. Ct. 1156). Accordingly, refunds are in order
independent agency. Also, some additional positions will be required to
for licensees who paid annual fees dating from October 1, 1968. This
meet program directives contained in the Act. These NRC require-
amounts to $9.5 million. Also, an increase of $1.0 million for goods
ments and needed supplemental resources are described below.
and services on order is required to support the increased cost levels
discussed above.
Personnel services and benefits
$2, 200, 000
SUMMARY
205 new positions are needed in fiscal year 1975 to support the
Fiscal year 1975
supplemental
conduct of the activities of the Nuclear Regulatory Commission. Of
authorization
this number, 148 positions are needed to function administratively as
Section 101-(a) Salaries and expenses
$56, 400, 000
an independent regulatory commission and 57 positions are needed
Total
56, 400, 000
for special functions and tasks of a programmatic nature imposed by
the Act.
SALARIES AND EXPENSES
The areas requiring augmentation of staffing to administer the inde-
pendent status are:
Section 101 (a) Salaries and Expenses. Under this head are covered
Financial Management (35 positions)-Required for the estab-
the expenses for the Nuclear Regulatory Commission which will
lishment of a self-sufficient budget and financial management or-
enable the new Commission to function as a separate organization
ganization including the development and maintenance of a sys-
and to specifically respond to new Regulatory responsibilties set
tem of accounting and financial control which conforms to the
forth in the Act. Principal among these are the establishment of the
standards prescribed by the Comptroller General. This request
Office of Nuclear Regulatory Research, conduct of the nuclear energy
includes a controller, accounting staff augmentation, a budget
site survey and the assessment of the need for a security agency for
group, and an auditing group.
safeguards.
Housekeeping Services (50 positions)-This function comprises
Fiscal year 1975
Accrued costs by program:
the largest single increment of additional personnel required as a
supplemental
Nuclear reactor regulation
$434, 000
result of separate commission status. Personnel are needed for
Nuclear materials safety and safeguards
2, 380, 000
establishment of a self-sufficient library, augmentation of publi-
Nuclear regulatory research
1, 270, 000
cation and graphics services, separate communications services,
Program direction and administration
2, 816, 000
augmented building and property management and facilities pro-
Total accrued program costs
6, 900, 000
tection and expanded mail and file services.
Change in selected resources
10, 500, 000
Advisory and Liaison (32 positions)-This includes a self-
Financing-Non-Federal sources
39, 000, 000
sufficient equal employment opportunity program (2) legal func-
tions not previously covered (18), public information (6), inter-
Total obligations to be incurred
56, 400, 000
New appropriations being requested
56, 400, 000
national relations on nuclear energy (1), and a congressional
Total amount requested for authorization
56, 400, 000
relations office (5).
Organization and Personnel (17 positions)-Establishment of
NUCLEAR REGULATORY COMMISSION-FISCAL YEAR 1975 PROPOSED
the new Commission, with requirements for additional staff and
SUPPLEMENTAL BUDGET
personnel programs requires augmented staff for recruiting, proc-
essing of personnel, general personnel support, training, labor-
Under the former AEC organization, some of the administrative
management relations and personnel policy and standards.
functions directly supporting the Regulatory program were performed
Contracting (8 positions)-To provide separate agency con-
by staff within the Regulation organization. That Regulation admin-
tracting support, an augmented staff of contract and procurement
specialists are requested.
10
11
Personnel and Physical Security (4 positions)-A small aug-
on environmental impact matters, waste treatment and dis-
mentation is needed in this function to provide the new Commis-
posal, and transportation.
sion with independent support.
III. Rulemaking on nuclear facility defects and high-level
M anagement Information System (2 positions)- small aug-
wastes
$0. 3
mentation is needed to provide for data processing systems
The siting regulations for high level waste facilities will
independent from ERDA.
require technical support in developing the criteria. A sur-
The special functions and tasks of a programmatic nature to be
vey and summary of failure modes in fuel cycle facilities is
augmented or initiated are:
needed for rulemaking on defects.
Nuclear Regulatory Research (8 positions)-Staff is required to
IV. Assessment for establishment of a security agency
0.5
initiate the non-reactor confirmatory research program called for
This includes a survey of existing protection systems and
under the act.
their effectiveness, prediction of systems needed to meet
Nuclear Energy Center Site Survey (16 positions)-Personnel
future circumstances and the cost, legal, social, economic,
are required for the Commission to comply with that part of the
and operational considerations associated with various
Act which directs a national survey to include consideration of
options.
each of the existing or future electric reliability regions, or other
appropriate regional areas, to locate and identify possible nuclear
energy center sites.
Expanded Safeguards Program (26 positions) 1-Expanded
safeguards efforts called for in the Act (Section 204) will require
additional personnel to conduct technical support work and to
systematically evaluate existing and future safeguards efforts.
Technical support efforts will be used in developing guides and
standards in the areas of physical protection and materials con-
trol and accounting to deal with current issues.
Development of Regulations Required by the Act (7 posi-
tions)-The Act requires rules to define defects required to be
reported relative to manufacture, assembly and operation of nu-
clear facilities. Rules for licensing of retrievable surface storage
facilities for radioactive wastes are also required by the Act.
Millions
Program support
$3. 0
Additional funds will be needed in four programs initi-
ated by the Act. These are the nuclear energy center site
survey, independent confirmatory assessment research,
specified rulemaking actions, and security agency assess-
ment.
I. Nuclear energy center site survey
1.5
This support is needed for studies to analyze all aspects
of the integrated site concept and alternatives to it. To
identify sites as required by the Act, it is necessary to pro-
ject energy requirements, population distributions, water
resource availability and impacts of seismic, geologic and
meteorological features.
II. Nonreactor confirmatory research
0. 7
These funds are required for the initiation of a program
to obtain independently developed technical information
on safety and environmental protection with respect to fuel
cycle facilities. The work will include confirmatory research
1 Includes four positions for security agency assessment.
Calendar No. 49
94TH CONGRESS
1st Session
}
{
REPORT
SENATE
No. 94-50
AUTHORIZING SUPPLEMENTAL
APPROPRIATIONS TO THE
NUCLEAR REGULATORY COMMISSION
FOR FISCAL YEAR 1975
REPORT
BY THE
JOINT COMMITTEE ON ATOMIC ENERGY
[To Accompany S. 994]
MARCH 20 (legislative day, MARCH 12), 1975.-Ordered to be printed
I
U.S. GOVERNMENT PRINTING OFFICE
38-010
WASHINGTON : 1975
Calendar No. 49
94TH CONGRESS
SENATE
REPORT
1st Session
No. 94-50
AUTHORIZING SUPPLEMENTAL APPROPRIATIONS TO
THE NUCLEAR REGULATORY COMMISSION FOR FISCAL
YEAR 1975
JOINT COMMITTEE ON ATOMIC ENERGY
MARCH 20 (legislative day, MARCH 12), 1975.-Ordered to be printed.
JOHN O. PASTORE. Rhode Island, Chairman
MELVIN PRICE, Illinois, Vice Chairman
HENRY M. JACKSON, Washington
JOHN YOUNG, Texas
STUART SYMINGTON, Missouri
TENO RONCALIO, Wyoming
Mr. PASTORE, from the Joint Committee on Atomic Energy,
JOSEPH M. MONTOYA, New Mexico
MIKE McCORMACK, Washington
submitted the following
JOHN V. TUNNEY, California
JOHN E. MOSS, California
HOWARD H. BAKER, JR., Tennessee
JOHN B. ANDERSON, Illinois
CLIFFORD P. CASE, New Jersey
MANUEL LUJAN, JR., New Mex'co
REPORT
JAMES B. PEARSON, Kansas
FRANK HORTON, New York
JAMES L. BUCKLEY, New York
ANDREW J. HINSHAW, California
GEORGE F. MURPHY, Jr.,, Executive Director
[To accompany S. 994]
JAMES B. GRAHAM, Assistant Director
ALBION W. KNIGHT, Jr., Professional Staff Member
WILLIAM C. PARLER, Committee Counsel
The Joint Committee on Atomic Energy, having considered S. 994,
RANDALL C. STEPHENS, Assistant Counsel
to authorize supplemental appropriations to the Nuclear Regulatory
CoL. SEYMOUR SHWILLER, USAF (Ret.), Technical Consultant
Commission for fiscal year 1975, hereby report without amendment
NORMAN P. KLUG, Technical Consultant
the bill and recommend that the bill do pass.
WILLIAM J. MINSCH, Jr., Special Counsel
LAWRENCE F. ZENKER, GAO Consultant
CHRISTOPHER C. O'MALLEY, Printing Editor
SUMMARY OF THE BILL
(II)
This bill authorizes supplemental appropriations of $50,200,000 to
the Nuclear Regulatory Commission (NRC) for fiscal year 1975. This
authorization is in addition to $90,765,000 which was authorized for
the Atomic Energy Commission for fiscal year 1975 by Public Law
93-276, and was transferred to the Nuclear Regulatory Commission
on January 19, 1975, when the Atomic Energy Commission was
abolished pursuant to the Energy Reorganization Act of 1974, Public
Law 93-438, and its functions were transferred to the newly established
Nuclear Regulatory Commission and Energy Research and Develop-
ment Administration. The supplemental request is needed primarily
because of a change in the treatment of revenues received by the new
Commission and because of new responsibilities which NRC is required
by Public Law 93-438 to undertake.
BACKGROUND
On February 3, 1975, the Nuclear Regulatory Commission trans-
mitted to the Congress a request for an increase in appropriations for
(1)
2
8
fiscal year 1975 of $56,400,000 (see appendix). On February 12, 1975,
CHANGE IN REVENUE TREATMENT
Senator John O. Pastore, Chairman of the Joint Committee on Atomic
Energy, introduced, by request, S. 674, authorizing appropriations of
The Atomic Energy Commission had been authorized for many years
such funds as are necessary to carry out the functions and responsibil-
to retain revenues it received (except those from disposal of property)
ities of the Nuclear Regulatory Commission for fiscal year 1975. On
and utilize them as an offset against budget authority. Virtually all
February 19, 1975, Representative Melvin Price, Vice Chairman of
other Federal agencies deposit such revenues to the miscellaneous
the Joint Committee, introduced an identical bill, H.R. 3275, by
receipts of the U.S. Treasury and obtain their full budget authority
request.
through the appropriations process.
On March 4, 1975, Vice Chairman Price introduced H.R. 4224 as a
The new Nuclear Regulatory Commission proposes to treat its
substitute bill in lieu of the above measure. This bill was introduced by
revenues in the same manner as the other Federal agencies. The
Chairman Pastore on March 6, as S. 994. The full committee met on
Commission witnesses testified that there are two reasons for proposing
March 20 in open session and voted without dissent to report those
this change. NRC's revenues constitute a greater percentage of its
bills favorably without amendment and to adopt this report.
budget authority than did AEC's and thus fluctuations in revenues
would have a more significant impact on NRC's operations. For in-
HEARINGS
stance, the anticipated shortfall of $28 million in revenues for fiscal
year 1975, as compared to the estimate of $50 million made at the time
On February 20, 1975, the Subcommittee on Legislation of the
the 1975 budget was approved by Congress, would represent about a 20
Joint Committee on Atomic Energy held an open hearing on the
percent decrease in the total funds available to the agency. A shortage
request for authorization of supplemental appropriations. Testimony
of this magnitude could not be accommodated without significant
was presented on behalf of the Nuclear Regulatory Commissionaby
dislocations in the Commission's operations.
Chairman William A. Anders; Commissioner Edward A. Mason;
Perhaps of more significance is the question whether a regulatory
Lee V. Gossick, Acting Executive Director for Operations; Andrew W.
agency should be dependent on revenues from those who are being
Jackson, Jr., Acting Controller; Donald F. Knuth, Director, Office of
regulated for a significant portion of its funding. The committee con-
Inspections and Enforcement; Edson G. Case, Acting Director, Office
curs with the Commission that it is essential that the NRC revenues be
of Nuclear Reactor Regulation; Howard Shapar, Acting General
treated under the same method as that of most other Federal agencies.
Counsel; Herbert J. Kouts, Director, Office of Nuclear Regulatory
The original estimate for the fiscal year 1975 revenues of the
Research; and Richard A. Miller, Chief, Business Management
Director of Regulation of the Atomic Energy Commission was $50,-
Branch, Office of the Controller. The committee also heard testimony
000,000. At the time the Commission prepared this supplemental
from Leo Goodman, chairman, Split Atom Study Group, and
request, it was anticipated that $11,000,000 would be received and
Harry W. Belfor, private citizen.
applied to budget authority prior to the transfer of the regulatory
functions to NRC. It was proposed that NRC revenues not be ap-
COMMITTEE COMMENTS
plied to budget authority. Thus, authorization of appropriations of
$39,000,000 would have been required to replace those revenues.
The Commission request was for an increase of $56,400,000 in their
However, $17,200,000 in fiscal year 1975 revenues were actually
fiscal year 1975 authorization. This consisted of (1) $39,000,000 to
received by the AEC Office of the Director of Regulation prior to
replace anticipated revenues which under the Atomic Energy Com-
January 19, 1975. Thus only $32,800,000 is actually required. This
mission would have been applied as an offset to budget authority but
has been confirmed by NRC. That is the amount authorized by the
which under NRC will be deposited directly to the miscellaneous
Joint Committee in this legislation for replacement of revenues.
receipts of the U.S. Treasury, (2) $9,500,000 for refunds of license fees
which have been collected since 1968 based on a fee schedule that was
REFUNDS TO LICENSEES
not in accordance with constitutional standards recently prescribed
by the U.S. Supreme Court, and (3) $7,900,000 to support new activ-
The Commission's licensing and inspection fees have in the past been
ities of NRC which were required by the Energy Reorganization Act
based essentially on the costs of administering those programs. The
of 1974 as well as various staff services required for NRC to function
U.S. Supreme Court, in two cases decided in March 1974, ruled that
as a separate and independent agency. The Committee concurs with
regulatory agency fees based solely on the cost to the Federal Govern-
the request of the Commission with the exceptions described below.
ment were unconstitutional in that they constitute a tax rather than
The Committee has reduced the requested authorization by $6,200,000
a fee (National Cable Television Assoc., Inc., V. United States 94 S. Ct.
because the revenues received during fiscal year 1975 by the office of
1146, and Federal Power Commission V. New England Power Co., 94
the Director of Regulation of the Atomic Energy Commission prior
S. Ct. 1156).
to its dissolution on January 19, 1975 exceeded by that amount the
The Nuclear Regulatory Commission is presently revising its fee
revenues expected to be received at the time the Commission request
schedule to reflect the criteria established by the Court in those cases.
was submitted to the Office of Management and Budget in November
Those portions of all such fees collected since the initial establishment
1974. The reduction will not in any way reduce the planned operations
of NRC.
4
5
of AEC's fee schedules in October 1, 1968 which exceed the amounts
There now remains only one quarter of the fiscal year in question.
acceptable under the standards enunciated by the Court will be re-
It is hoped that this legislation can be handled expeditiously by the
funded. NRC estimates that a total of $9,500,000 will be required for
Congress. However, the Joint Committee recognizes that the passage
the refunds. The Joint Committee approves the authorization for
of time may make it impossible for the Commission to bring on line
appropriations of the requested amount.
all the new staff that the bill would authorize. Because of the impossi-
bility of projecting both the time at which the authorization can be
ENERGY REORGANIZATION ACT
enacted and the portion of the requested increase that would be obvi-
ated by the passage of that time, the Joint Committee has not reduced
The NRC request of $7,900,000 for expenses related to the establish-
the request for personnel increases.
ment of a separate agency consists of the following items.
Contract Funds.-The Joint Committee is concerned by the extent
Request
$2, 200, 000
to which NRC plans to conduct the special studies required by the
Personnel (205 positions)
Contract funds:
Energy Reorganization Act in part through new contracts with
Energy center survey
1,500,000
private organizations. It would appear that the Commission and other
Nonreactor confirmatory research
700,000
Government agencies, as well as the national laboratories, have the
Standards for new regulations
300,000
Security agency assessment
500, 000
experience and the expertise required for most of the tasks under these
Housekeeping and equipment
1, 700, 000
studies. These personnel should be utilized to the maximum extent
Goods and services on order
1,000,000
possible. It is not apparent that the proposed allocation of effort
between NRC, other Government agencies, and contracts with private
Total
7, 900, 000
organizations is in accord with this objective. Minimization of the use
Personnel.-The additional personnel consist of 148 positions
of new consultants and contractors is particularly important in the
designated for those functions which were previously administered
safeguards and security areas, because of the sensitivity of the informa-
wholly or partly on a common basis for AEC's regulatory and develop-
tion involved and the significant background of the Government and
mental organizations by staff located at Germantown who have been
national laboratory personnel who could be utilized in the studies.
transferred to ERDA. These include financial management, house-
The Joint Committee recommends a reduction of the contract effort
keeping services, liaison, nonregulatory legal functions, contracting
for the Security Agency Assessment to $250,000. The Joint Committee
personnel and other such functions. An additional 57 positions are
has not reduced the overall request of $700,000 for this study, but rec-
for the new responsibilities imposed by the Energy Reorganization
ommends a reallocation of funds within that level of effort so that
Act of 1974. These include the nonreactor confirmatory research pro-
more of the effort is performed by government personnel. This should
gram (8 positions); the nuclear energy center site survey (16 positions),
allow for more efficient use of resources in accomplishing this critical
an assessment for establishing a security agency (4 positions), the
study. The Joint Committee recommends that any savings realized
expanded safeguards program (22 positions), and the development of
from this reallocation be used by the Commission to upgrade and
regulations specifically required by the Act (7 positions).
strengthen its inspection practices and procedures, specifically in the
Although there have been a substantial number of recent deferrals
nuclear materials accountability area.
and cancellations of proposed nuclear facilities, the Commission
The Joint Committee also notes with concern that the Special
testified that their analyses to date have not suggested any reduction
Safeguards Study of a plutonium economy involves what appears to
in current workload which would free personnel to take on the new
be excessive dependence on new contracts with private organizations
functions described above. It is anticipated that these developments,
and individuals. Although that study is not part of this supplemental
if not réversed, will, however, reduce the projected future workload
request, the Joint Committee also urges the Commission to reexamine
of the Commission and thus reduce or postpone the need for future
the allocation of effort under it.
staff increases.
Other Funds.-The Joint Committee recommends approval of the
The committee notes that the Commission's request reflects a
request for $1,700,000 for Housekeeping and Equipment and for
substantial growth in the number of NRC personnel. As of Febru-
$1,000,000 for Goods and Services on Order.
ary 10, 1975, NRC had a total of 1,815 personnel on-board, including
some 183 transfers from the developmental side of the Atomic Energy
Cost OF LEGISLATION AND BUDGET IMPACT
Commission. NRC has projected that, with the addition of the 205
positions proposed to be authorized by the Supplemental and 36
In accordance with section 252(a) of the Legislative Reorganiza-
other positions to be filled in fiscal year 1975, the on-board personnel
tion Act of 1970 (Public Law 91-510), the Joint Committee estimates
by June 30, 1975 will total 2,056. The Joint Committee strongly
that the following costs will be incurred if this bill and the subsequent
recommends that the Commission-in view of this large growth and
appropriations are enacted into law.
the significant numbers of plant delays and cutbacks-closely examine
Fiscal years:
Millions
its operations to assure the maximum productivity and efficiency of
Total costs
$17. 4
its operations.
1975
6.9
1976
10. 5
1977 and thereafter
0
6
The difference between the total costs of $17.4 million reflected in
the above table and the $50.2 million which is proposed to be author-
ized by this bill is the $32.8 million needed by NRC as a result of the
change in the treatment of revenues. Since this $32.8 million relates
only to a change in accounting for revenues, it will not have any effect
on NRC's cost of operations.
APPENDIX
CHANGES IN EXISTING LAW
This bill does not make any changes in existing law.
U.S. NUCLEAR REGULATORY COMMISSION,
Washington, D.C., February 3, 1975.
Hon. NELSON A. ROCKEFELLER,
President of the Senate.
DEAR MR. PRESIDENT: In accordance with provisions of Section
305 of the Energy Reorganization Act of 1974, (42 U.S.C. 5801), we
are submitting proposed legislation to increase the authorization for
appropriations for the Nuclear Regulatory Commission by $56,400,000
for "Salaries and Expenses". This increased authorization is needed
to supplement those funds transferred to the NRC under Section 202
of the Budget and Accounting Procedures Act of 1950, (31 U.S.C.
581c).
The authorization of supplemental appropriations for "Salaries and
Expenses" of $56,400,000 provides for accrued program costs of
$6,900,000, additional budget authorization of $39,000,000 required
due to the change in revenue application, $9,500,000 in refunds due
certain licensees resulting from a recent Supreme Court decision and
for $1,000,000 additional Selected Resources.
The Office of Management and Budget has advised that this
legislative proposal is in accord with the President's program.
Sincerely,
WILLIAM A. ANDERS, Chairman.
U.S. NUCLEAR REGULATORY COMMISSION-ANALYSIS OF PROPOSED
BILL FOR SUPPLEMENTAL AUTHORIZATION OF APPROPRIATIONS
UNDER SECTION 305 OF THE ENERGY REORGANIZATION ACT OF
1974, FISCAL YEAR 1975
A BILL To authorize supplemental appropriations to the Nuclear Regulatory
Commission for fiscal year 1975
Be it enacted by the Senate and the House of Representatives of the
United States in Congress assembled, That there are authorized to be
appropriated, for fiscal year 1975, such sums as are necessary to carry
out the functions and responsibilities of the Nuclear Regulatory Com-
mission, established by Section 201 of Public Law (88 Stat. 1233, 1242),
93-438.
SUMMARY
Salaries and Related Expenses.-Costs required to support the con-
duct of the activities of the Nuclear Regulatory Commission (NRC)
established by the Energy Reorganization Act of 1974 are estimated
at $6.9 million. This increase provides for 205 positions with related
costs, contractual services and equipment necessary to function as a.
separate agency and to discharge programmatic requirements of the
Act.
(7)
8
9
New Obligational Authority.-The President's fiscal year 1975 budget
or expanded functions which were not required when the Regulatory
to Congress included $67.8 M in accrued costs for the Regulatory
staff functioned as part of the overall AEC administrative effort.
Activities program and associated revenue of $50.0 M. Since the
This augmentation will be accomplished partially by transfer of posi-
revenues obtained by the NRC will be deposited directly to miscel-
tions and funds from other parts of the AEC to the Regulatory staff.
laneous receipts and not be offset to requested level of budget author-
However, it is not possible to cover all of the NRC requirements by
ity, $39.0 M (estimated receipts 12/31/74-$11.0 million) in new
such transfers since ERDA, the successor energy R&D agency, will
obligational authority is required for the operation of the new Com-
also require former AEC staff for its functions as a separate agency.
mission. NRC would require additional authority in any event be-
For example, the former AEC Congressional Relations Office will be
cause the revenues are not received on a scheduled basis. This would
retained by ERDA, and NRC will have to establish its own Congres-
make the day-to-day operations of a small agency impossible.
sional Relations function as will be the case with the basic AEC
Increase or Decrease in Selected Rescurces-Refunds to Licensees.-
financial management (Controller), public information, personnel, and
Refunds to licensees are required because of the Supreme Court
a variety of other support functions which are required for any inde-
-decision of March 4, 1974, (National Cable Television Assoc., Inc. V.
pendent agency. Also, some additional positions will be required to
United States 94 S. Ct. 1146, and Federal Power Commission V. New
meet program directives contained in the Act. These NRC require-
England Power Co., 94 S. Ct. 1156). Accordingly, refunds are in order
ments and needed supplemental resources are described below.
for licensees who paid annual fees dating from October 1, 1968. This
Personnel services and benefits
$2, 200, 000
amounts to $9.5 million. Also, an increase of $1.0 million for goods
and services on order is required to support the increased cost levels
205 new positions are needed in fiscal year 1975 to support the
discussed above.
conduct of the activities of the Nuclear Regulatory Commission. Of
Fiscal year 1975
this number, 148 positions are needed to function administratively as
supplemental
SUMMARY
authorization
an independent regulatory commission and 57 positions are needed
Section 101-(a) Salaries and expenses
$56, 400, 000
for special functions and tasks of a programmatic nature imposed by
the Act.
Total
56, 400, 000
The areas requiring augmentation of staffing to administer the
independent status are:
SALARIES AND EXPENSES
Financial Management (35 positions)-Required for the estab-
Section 101 (a) Salaries and Expenses. Under this head are covered
lishment of a self-sufficient budget and financial management
the expenses for the Nuclear Regulatory Commission which will
organization including the development and maintenance of a
enable the new Commission to function as a separate organization
system of accounting and financial control which conforms to
and to specifically respond to new Regulatory responsibilities set
the standards prescribed by the Comptroller General. This
forth in the Act. Principal among these are the establishment of the
request includes a controller, accounting staff augmentation, a
Office of Nuclear Regulatory Research, conduct of the nuclear energy
budget group, and an auditing group.
site survey and the assessment of the need for a security agency for
Housekeeping Services (50 positions)-This function comprises
the largest single increment of additional personnel required as a
safeguards.
Fiscal year 1975
result of separate commission status. Personnel are needed for
Accrued costs by program:
supplemental
establishment of a self-sufficient library, augmentation of publi-
Nuclear reactor regulation
$434, 000
Nuclear materials safety and safeguards
2,380,000
cation and graphics services, separate communications services,
Nuclear regulatory research
1,270,000
augmented building and property management and facilities
Program direction and administration
2,816,000
protection and expanded mail and file services.
Advisory and Liaison (32 positions)-This includes a self-
Total accrued program costs
6, 900, 000
Change in selected resources
10,500,000
sufficient equal employment opportunity program (2), legal
Financing-Non-Federal sources
39,000,000
functions not previously covered (18), public information (6),
international relations on nuclear energy (1), and a congressional
Total obligations to be incurred
56,400,000
relations office (5).
New appropriations being requested
56,400,000
Total amount requested for authorization
56,400.000
Organization and Personnel (17 positions)-Establishment of
the new Commission, with requirements for additional staff and
NUCLEAR REGULATORY COMMISSIONFISCAL YEAR 1975 PROPOSED
personnel programs requires augmented staff for recruiting, proc-
SUPPLEMENTAL BUDGET
essing of personnel, general personnel support, training, labor-
management relations and personnel policy and standards.
Under the former AEC organization, some of the administrative
Contracting (8 positions)-To provide separate agency contract-
functions directly supporting the Regulatory program were performed
ing support, an augmented staff of contract and procurement
by staff within the Regulation organization. That Regulation admin-
specialists are requested.
istrative staff will form the nucleus of the administrative staff for
Personnel and Physical Security (4 positions)-A small aug-
NRC, but will have to be augmented to carry out a variety of new
mentation is needed in this function to provide the new Com-
mission with independent support.
10
11
Management Information Systems (2 positions)-A small aug-
Millions
mentation is needed to provide for data processing systems
III. Rulemaking on nuclear facility defects and high-level
independent from ERDA.
wastes
$0. 3
The special functions and tasks of a programmatic nature to be
The siting regulations for high level waste facilities will
augmented or initiated are:
require technical support in developing the criteria. A
Nuclear Regulatory Research (8 positions)-Staff is required to
survey and summary of failure modes in fuel cycle facilities
initiate the non-reactor confirmatory research program called for
is needed for rulemaking on defects.
under the aet.
IV. Assessment for establishment of a security agency
0.5
Nuclear Energy Center Site Survey (16 positions)-Personnel are
This includes a survey of existing protection systems and
required for the Commission to comply with that part of the Act
their effectiveness, prediction of systems needed to meet
which directs a national survey to include consideration of each of
future circumstances and the cost, legal, social, economic,
the existing or future electric reliability regions, or other appro-
and operational considerations associated with various
priate regional areas, to locate and identify possible nuclear energy
options.
center sites.
Expanded Safeguards Program (26 positions) '--Expanded safe-
guards efforts called for in the Act (Section 204) will require
additional personnel to conduct technical support work and to
systematically evaluate existing and future safeguards efforts.
Technical support efforts will be used in developing guides and
standards in the areas of physical protection and materials con-
trol and accounting to deal with current issues.
Development of Regulations Required by the Act (7 positions)-
The Act requires rules to define defects required to be reported
relative to manufacture, assembly and operation of nuclear
facilities. Rules for licensing of retrievable surface storage facilities
for radioactive wastes are also required by the Act.
Millions-
Program support
$3. 0
Additional funds will be needed in four programs initiated
by the Act. These are the nuclear energy center site sur-
vey, independent confirmatory assessment research, speci-
fied rulemaking actions, and security agency assessment.
I. Nuclear energy center site survey
1.5
This support is needed for studies to analyze all aspects
of the integrated site concept and alternatives to it. To
identify sites as required by the Act, it is necessary to
project energy requirements, population distributions,
water resource availability and impacts of seismic, geologic
and meteorological features.
II. Nonreactor confirmatory research
0.7
These funds are required for the initiation of a program
to obtain independently developed technical information
on safety and environmental protection with respect to
fuel cycle facilities. The work will include confirmatory
research on environmental impact matters, waste treat-
ment and disposal, and transportation.
1 Includes four positions for security agency assessment.
S. 994
Ainety-fourth Congress of the United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday, the fourteenth day of January,
one thousand nine hundred and seventy-five
An Act
To authorize supplemental appropriations to the Nuclear Regulatory Commission
for fiscal year 1975.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled; That there is author-
ized to be appropriated to the Nuclear Regulatory Commission to carry
out the provisions of section 261 of the Atomic Energy Act of 1954, as
amended, and section 305 of the Energy Reorganization Act of 1974,
$50,200,000 for fiscal year 1975.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
April 14, 1975
Dear Mr. Director:
The following bill was received at the White
House on April 14th:
S. 994
Please let the President have reports and
recommendations as to the approval of this
bill as soon as possible.
Sincerely,
Robert D. Linder
Chief Executive Clerk
The Honorable James T. Lynn
Director
Office of Management and Budget
Washington, D. C.