[Congressional Record Volume 151, Number 110 (Wednesday, September 7, 2005)]
[Senate]
[Pages S9721-S9722]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          NUCLEAR SECURITY ACT

  Mr. INHOFE. Mr. President, section 403 of the Congressional Budget 
and Impoundment Control Act requires that a statement of the cost of 
the reported bill, prepared by the Congressional Budget Office, be 
included in the report. At the time of filing of the report, the 
statement was unavailable. The statement has since been received by the 
committee. I ask unanimous consent that the statement be printed in the 
Record.
  There being no objection, the material ordered to be printed in the 
Record, as follows:

     S. 864, Nuclear Security Act of 2005, As reported by the 
         Senate Committee on Environment and Public Works on July 
         1, 2005
       Summary
       S. 864 would amend the Atomic Energy Act of 1954 to 
     establish several new programs designed to protect the 
     nation's nuclear infrastructure. Based on information from 
     the Nuclear Regulatory Commission (NRC), CBO estimates that 
     implementing S. 864 would have a gross cost of $10 million in 
     2006 and $64 million over the 2006-2010 period. Under current 
     law, the NRC is authorized to collect fees to offset 90 
     percent of most of its budget authority provided from the 
     general fund (a portion of funds are provided from the 
     Nuclear Waste Fund) in 2005 and 33 percent for each year 
     after 2005. After accounting for those collections, CBO 
     estimates that S. 864 would have a net cost of $5 million in 
     2006 and $41 million over the 2006-2010 period.
       S. 864 would impose both intergovernmental and private-
     sector mandates as defined in the Unfunded Mandates Reform 
     Act (UMRA) by requiring expanded security procedures at 
     certain nuclear facilities, new guidelines for tracking spent 
     fuel rods and segments at nuclear power plants, and a 
     mandatory tracking system for radiation sources in the United 
     States. The bill also would impose a private-sector mandate 
     on persons who import and export radiation sources by 
     requiring them to meet new requirements. Finally, the bill 
     would preempt State laws restricting the use and transport of 
     certain firearms and may preempt State regulation of the 
     disposal of certain types of byproduct material by 
     transferring that authority to the NRC. CBO estimates that 
     the aggregate cost of the mandates in the bill would be below 
     the annual thresholds established in UMRA for 
     intergovernmental mandates ($62 million in 2005, adjusted 
     annually for inflation) and for private-sector mandates ($123 
     million in 2005, adjusted annually for inflation).
     Estimated Cost to the Federal Government
       The estimated budgetary impact of S. 864 is shown in the 
     following table. The costs of this legislation fall within 
     budget function 270 (energy).

 
                                    [By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                       2006     2007     2008     2009     2010
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Evaluation of Security-Response Plans:
    Estimated Authorization Level..................................  .......        6        6        6       67
    Estimated Outlays..............................................        5        5        6        6        6
Radiation Source Tracking System:
    Estimated Authorization Level..................................        5        6        4        4        4
    Estimated Outlays..............................................        4        5        4        4        4
Treatment of Radioactive Byproduct:
    Estimated Authorization Level..................................        1        6        3        3        3
    Estimated Outlays..............................................        1        4        3        3        3
Firearms Use:
    Estimated Authorization Level..................................        1        0        0        0        0
    Estimated Outlays..............................................        1        0        0        0        0
    Gross Changes:
        Estimated Authorization Level..............................       14       17       12       12       13
        Estimated Outlays..........................................       10       15       13       13       13
NRC Fee Collection Offset\1\:
    Estimated Authorization Level..................................       -5       -6       -4       -4       -4
    Estimated Outlays..............................................       -5       -6       -4       -4       -4
    Net Changes Under S. 864:                                             10       12        8        8        8
        Estimated Outlays..........................................        5        9        9        9        8
----------------------------------------------------------------------------------------------------------------
\1\ Under current law, collections are authorized at declining percentages of the NRC's budget (90 percent in
  2005 and 33 percent after 2005). To estimate the net change in NRC costs under S. 864, that 33 percent rate
  was applied to the estimated cost of the programs under S. 864.
NOTE: Details may not sum to totals because of rounding.

     Basis of Estimate
       For this estimate, CBO assumes that the bill will be 
     enacted near the start of fiscal year 2006, that the 
     necessary amounts will be appropriated for each year, and 
     that outlays will occur at historical rates for similar 
     programs.
       S. 864 would require the NRC to update and adopt 
     rulemakings and programs related to security at the nation's 
     nuclear power plants. The bill would set new criteria for 
     preparing and evaluating security response plans at nuclear 
     facilities, require a tracking system for radiation sources, 
     and set requirements for the transport and disposal of 
     radioactive byproduct material, firearms use by certain 
     security personnel, background checks for certain security 
     personnel, and guidelines for tracking the location of spent 
     fuel rods. Under current law, the NRC is authorized to 
     collect annual fees to offset 90 percent of most of its 
     general fund appropriation. When this authority expires at 
     the end of fiscal year 2005, the NRC will be authorized to 
     collect annual user fees from its licensees of up to only 33 
     percent of its budget.
       Based on information from the NRC, CBO estimates that 
     implementing S. 864 would have a gross cost of $64 million 
     over the 2006-2010 period, assuming appropriation of the 
     necessary amounts. After accounting for offsetting 
     collections, CBO estimates that S.

[[Page S9722]]

     864 would have a net cost of $41 million over the 2006-2010 
     period.

                 Evaluation of Security-Response Plans

       S. 864 would require the NRC to evaluate the security 
     response plans at designated nuclear facilities at least once 
     every 3 years. The evaluations would simulate the threats 
     that nuclear facilities must be able to defend against. We 
     expect that the NRC would use contractors to conduct mock 
     exercises known as force-on-force. Under S. 864, the NRC 
     also would revise its ``design basis threats'' or the 
     attack scenario nuclear facilities must be capable of 
     defeating. Based on information from the NRC, CBO 
     estimates that the NRC would incur a gross cost of about 
     $5 million in 2006 and $27 million over the 2006-2010 
     period to revise those requirements.

                    Radiation Source Tracking System

       Under S. 864, the NRC would have to establish a system for 
     tracking radiation sources in the United States that is 
     compatible with the Secretary of Transportation's tracking 
     system of radiation shipments. S. 864 also would establish a 
     task force on radiation source protection and security to 
     recommend measures to protect radiation sources from 
     potential terrorist threats. The bill also would require the 
     National Academy of Sciences to conduct a study on the 
     industrial, research, and commercial uses for radiation 
     sources. Based on information from the NRC, CBO estimates 
     that this program would have a gross cost of $4 million in 
     2006 and $21 million over the 2006-2010 period.

              Treatment of Radioactive Byproduct Material

       S. 864 would establish regulations for the transport and 
     disposal of radioactive byproduct material and expand the 
     definition of radioactive byproduct material to include 
     naturally occurring or accelerator-produced radioactive 
     material (known as NARM). Under current law, 35 States have 
     entered into agreements with the NRC that authorize them to 
     treat and dispose of certain radioactive byproduct materials, 
     including NARM. S. 864 would require the NRC to prepare a 
     transition plan for States to transfer regulatory authority 
     over NARM byproducts to the NRC. CBO estimates that the NRC 
     would incur a gross cost of $14 million over the 2006-2010 
     period to oversee disposal of NARM in the 15 States without 
     waste disposal agreements with the NRC. Under the bill, those 
     States may opt to obtain a waiver allowing them to retain 
     oversight of NARM disposal. In that event, NRC costs would be 
     lower.

                   Firearms Use and Background Checks

       S. 864 would authorize the NRC to permit certain security 
     employees at nuclear facilities to use several types of 
     firearms and would establish guidelines for checking the 
     background of those security personnel. Based on information 
     from the NRC, CBO estimates that the one-time cost of 
     establishing those procedures would be about $1 million in 
     2006.
     Intergovernmental and Private-Sector Impact
       S. 864 would impose both intergovernmental and private-
     sector mandates as defined in UMRA by:
       Increasing costs borne by licensees to pay for fingerprint 
     checks by increasing the number of individuals requiring 
     background checks;
       Requiring certain nuclear sites to correct any security 
     defects identified during NRC's force-on-force security 
     evaluations;
       Establishing new guidelines for tracking and controlling 
     individual spent fuel rods and segments by nuclear power 
     plants; and
       Requiring NRC licensees that possess or transport certain 
     radiation sources to identify those sources and report any 
     loss or change in the location to the NRC.
       The bill also would impose an additional private-sector 
     mandate on individuals who import and export radiation 
     sources by requiring them to meet new requirements. The bill 
     would impose an additional intergovernmental mandate by 
     preempting State laws restricting the use and transport of 
     certain firearms, and may preempt State regulation of the 
     disposal of certain types of byproduct material by 
     transferring that authority to the NRC. CBO estimates that 
     the aggregate cost of the mandates in the bill would be below 
     the annual thresholds established in UMRA for 
     intergovernmental mandates ($62 million in 2005, adjusted 
     annually for inflation) and for private-sector mandates ($123 
     million in 2005, adjusted annually for inflation).

                     Requirements on NRC Licensees

       Additional Fee for Background Checks. Section 103 would 
     require fingerprinting of additional individuals connected 
     with nuclear facilities (public and private) as part of 
     criminal background checks done through the U.S. Attorney 
     General's Office. The cost of the government background 
     checks would be borne directly by licensees. The duty to pay 
     the increased cost would be both a private-sector and 
     intergovernmental mandate under UMRA, but because the cost of 
     each background check is small and many persons associated 
     with nuclear facilities have already undergone background 
     checks, CBO estimates that the aggregate cost of the mandate 
     would be small.
       Security Evaluations. Section 104 would require the NRC to 
     conduct security-response evaluations at certain nuclear 
     facilities. Those evaluations would include force-on-force 
     exercises and would require facilities to remedy any defects. 
     Given that NRC is already conducting those evaluations, CBO 
     estimates that the incremental costs of such legislated 
     requirements would be minimal.
       New Tracking System for Spent Fuels Rods and Segments. 
     Section 109 would require NRC to establish uniform guidelines 
     for tracking and controlling spent fuel rods and segments at 
     nuclear power plants. Current NRC regulations include similar 
     guidelines for tracking and controlling spent fuel rods and 
     segments, and CBO estimates that any additional cost to NRC 
     licensees resulting from this provision would be minimal.
       New Tracking System for Radiation Sources. Section 201 
     would direct the NRC to establish a mandatory tracking system 
     for category 1 and 2 radiation sources (as defined by the 
     International Atomic Energy Agency) in the United States. 
     Category 1 and 2 radiation sources are held by both public 
     and private NRC licensees and are used for medical and 
     industrial purposes. The tracking system would include 
     identification by serial number, reporting of changes in 
     ownership or location of radiation sources, reporting of lost 
     sources, and reporting through a secure Internet connection. 
     According to the NRC, identification of radiation sources 
     already is being done to some extent, and the agency expects 
     to take on most of the cost of creating the tracking 
     system. Based on this information, CBO expects that, while 
     there would be some personnel costs for certain NRC 
     licensees to comply with the monitoring and reporting 
     requirements of the new tracking system, any additional 
     costs would be small.

      Requirements on Importers and Exporters of Radiation Sources

       Section 201 would prohibit the import and export of 
     radiation sources in the United States unless certain 
     requirements are met. The bill would require that exporters 
     of radiation sources verify that the recipient country may 
     receive and possess the radiation source and has the 
     capability to securely manage the source; send notice to the 
     recipient country prior to shipment; and obtain notification 
     upon receipt of the shipment. Importers of radiation sources 
     would be required to prove that they are lawfully authorized 
     by the NRC to receive the radiation source. Those 
     requirements would constitute private-sector mandates under 
     UMRA. However, the costs of those mandates would be small. 
     According to NRC, similar regulations already have been 
     proposed by the agency. An analysis of those proposed 
     regulations by the Office of Management and Budget indicates 
     that the aggregate cost to all importers and exporters would 
     be approximately $130,000 annually.

               Preemptions of State Laws and Regulations

       Authorization of Firearm Possession. Section 102 would 
     preempt State laws restricting the use and transport of 
     certain firearms. That provision would expand existing NRC 
     authority that allows the agency to authorize certain 
     security employees to use and transport several types of 
     firearms, regardless of State or local regulations. Such a 
     preemption would not impose significant costs on State or 
     local governments.
       Waste Disposal Provisions. Depending on future action by 
     the NRC, section 202 could preempt State regulation of the 
     disposal of certain types of radioactive byproduct material. 
     Specifically, this section of the bill would transfer 
     regulatory authority for the disposal of naturally occurring 
     and accelerator-produced radioactive byproduct material to 
     the NRC. Currently, States have this authority by default 
     because the NRC does not expressly regulate such material. 
     For those States with direct agreements with the NRC 
     (agreement States), the authority to regulate the disposal of 
     NARM would be returned to the State per those agreements. 
     However, in non-agreement States, that authority would remain 
     with the NRC. NRC sources have expressed an intent to 
     maintain the status quo across all States for the disposal of 
     NARM, and therefore, CBO estimates that the costs of this 
     potential preemption would be insignificant.
     Previous CBO Estimate
       On April 19, 2005, CBO transmitted a cost estimate for H.R. 
     1640, the Energy Policy Act of 2005, as ordered reported by 
     the House Committee on Energy and Commerce on April 13, 2005. 
     S. 864 includes provisions similar to sections 662 through 
     665 of H.R. 1640. The estimated costs for those similar 
     provisions are identical.
       Estimate Prepared By: Federal Costs: Lisa Cash Driskill and 
     Jimin Chung; Impact on State, Local, and Tribal Governments: 
     Lisa Ramirez-Branum and Ian Rudge; Impact on the Private 
     Sector: Selena Caldera.
       Estimate Approved By: Peter Fontaine, Deputy Assistant 
     Director for Budget Analysis.

                          ____________________