[House Report 105-680]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-680
_______________________________________________________________________


 
  NUCLEAR REGULATORY COMMISSION AUTHORIZATION ACT FOR FISCAL YEAR 1999

_______________________________________________________________________


 August 6, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                        [To accompany H.R. 3532]

      [Including cost estimate of the Congressional Budget Office]

      The Committee on Commerce, to whom was referred the bill 
(H.R. 3532) to authorize appropriations for the Nuclear 
Regulatory Commission for fiscal year 1999, and for other 
purposes, having considered the same, report favorably thereon 
with amendments and recommend that the bill as amended do pass.


                                CONTENTS
                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     6
Committee Consideration..........................................     6
Rollcall Votes...................................................     6
Committee Oversight Findings.....................................     6
Committee on Government Reform and Oversight.....................     6
New Budget Authority, Entitlement Authority, and Tax Expenditures 
  Committee Cost Estimate........................................     7
Congressional Budget Office Estimate.............................     7
Federal Mandates Statement.......................................    10
Advisory Committee Statement.....................................    10
Constitutional Authority Statement...............................    10
Applicability to Legislative Branch..............................    10
Section-by-Section Analysis of the Legislation...................    11
Changes in Existing Law Made by the Bill, as Reported............    14

                               Amendment

      The amendments (stated in terms of the page and line 
numbers of the introduced bill) are as follows:
  Page 8, line 9, strike ``Commission.'' and all that follows 
through line 12 and insert ``Commission;'.''
  Page 10, beginning on line 22, strike ``subsection.'.'' and 
insert ``subsection;'.''
  Page 12, line 12, strike ``Act.'.'' and insert ``Act'.''

                          Purpose and Summary

    H.R. 3532 would authorize the activities of the Nuclear 
Regulatory Commission (NRC or the Commission) for Fiscal Year 
1999, extend the authorization for the NRC to collect 100 
percent of its budget through user fees and annual charges to 
the end of Fiscal Year 2003, and make a number of minor changes 
to the Commission's authorizing statutes. The NRC is 
responsible for regulating the Nation's utilization of 
radioactive materials and ensuring the protection of public 
health and safety.

                  Background and Need for Legislation

    The NRC was established by Congress in the Energy 
Reorganization Act of 1974 (P.L. 93-438). As part of its 
broader requirement to consolidate all energy-related functions 
of the Federal government (and creating the Department of 
Energy), the Act also eliminated the Atomic Energy Commission 
(AEC) and created the NRC as an independent agency in its 
place.
    Under its regulatory authorities as established in the 
Energy Reorganization Act and the Atomic Energy Act of 1954 (42 
U.S.C. 2011 et seq.), the NRC is responsible for regulating the 
civilian use of radioactive materials, including industrial 
applications, medical and academic uses, and commercial nuclear 
power generation. Its regulatory role also extends to the 
transportation, storage, and disposal of nuclear materials and 
waste.
    In general, any use of nuclear materials requires the user 
or handler to have a license issued by the Commission (or, in 
the case of approved Agreement States, the involved State) to 
undertake such activities. This applies to nearly every aspect 
of matters involving nuclear materials--from the construction 
and operation of nuclear reactors, to the transportation or 
handling of radioactive materials, to the design of nuclear 
waste disposal sites. With this licenser/licensee relationship, 
the threat of license revocation and the NRC's use of civil 
penalties are the Commission's primary means of ensuring 
compliance with its regulations.
    Until the 99th Congress, the NRC had received regular 
biennial authorization from Congress. Since Fiscal Year 1985, 
the Commission has depended on the permanent statutory 
authority of the Atomic Energy Act and the Energy 
Reorganization Act to conduct its activities. The funding 
levels included in H.R. 3532 represent the Commission's request 
to Congress. For Fiscal Year 1999, the NRC has requested a 
total of $488,640,000 for its activities, a 3.9 percent 
increase over the Fiscal Year 1998 estimate of $472,800,000. 
Its budget is subdivided into several strategic arenas.

                       1. nuclear reactor safety

    This function is responsible specifically for the 
regulation of civilian nuclear reactors, from the design and 
construction of reactors to their actual operation. Currently, 
there are 104 licensed civilian power reactors in the United 
States and 43 non-power test and research reactors. Activities 
under Nuclear Reactor Safety include licensing operations, 
inspections of nuclear reactor facilities, enforcement actions, 
and whistleblower investigations. For Fiscal Year 1999, the 
bill authorizes $211.4 million for Nuclear Reactor Safety, 
slightly less than the Fiscal Year 1998 estimate of $211.9 
million.
    At its hearing on this measure, Members of the Subcommittee 
on Energy and Power questioned NRC Commissioners about 
increases in the number of low-priority, severity level 4 
violations assessed against nuclear power licensees, despite an 
overall increase in the performance of nuclear power units. 
These level 4 and other non-cited violations deal with process, 
record-keeping practices, and other activities that, while 
important to general plant maintenance, are not directly 
related to plant safety.
    This continued focus on deterministic, process-oriented, 
inspection-intensive regulatory framework is at odds with the 
Commission's own vision of licensee regulation. The NRC has, 
for years, advocated a risk-informed and performance-based 
approach to regulation. While the Commission has taken some 
steps to implement this more enlightened method, it is clear 
that a focused, results-oriented approach has been slow in 
coming.

                      2. nuclear materials safety

    Nuclear Materials Safety includes the regulation of those 
nuclear functions not covered by the Nuclear Reactor Safety 
account. This includes a broad range of activity, from the 
regulation of nuclear fuel cycle activities, to medical uses of 
radioactive materials, to assisting the Department of Energy 
(DOE) in the oversight of several projects, including: the 
commercial vitrification of high-level radioactive waste at the 
Hanford site; the use of commercial reactors for tritium 
production; and DOE's external regulation pilot program. It 
also includes the NRC's activities in coordinating the 
Agreement State program with States which have chosen to accept 
the regulatory responsibilities for a host of nuclear 
activities. H.R. 3532 authorizes $48.9 million in Fiscal Year 
1999 for Nuclear Materials Safety, a 5.5 percent increase over 
the $46.3 million estimate for Fiscal Year 1998.
    The Omnibus Budget Reconciliation Act of 1990 (Public Law 
101-508, as amended) (OBRA90) requires the Commission to 
recover approximately 100 percent of its budget through annual 
charges and user fees. As a result, the NRC utilizes annual 
charges assessed against licensees to cover the costs of 
administering programs which do not directly relate to the 
regulation of, nor provide a direct benefit to, these 
licensees. The Commissioners, during their testimony before the 
Subcommittee on Energy and Power, identified activities 
totaling approximately $50 million annually which fall into 
this category; many of which are included in the Nuclear 
Materials Safety account.
    The OBRA90 provision requires the NRC to establish, by 
rule, a schedule to ``fairly and equitably'' allocate the 
annual charges among its licensees, and to ensure that these 
charges ``have a reasonable relationship to the cost of 
providing regulatory services.'' The NRC has indicated that it 
is currently evaluating its programs to more accurately 
identify those areas involving fairness and equity issues for 
licensees. The Committee commends this effort, and expects the 
Commission to submit its findings and recommendations for 
Congressional action to address this issue by December 31, 
1998.

                        3. nuclear waste safety

    This account covers three areas of the NRC's operation: (1) 
activities associated with the development of the proposed 
permanent repository for high-level radioactive waste at Yucca 
Mountain, Nevada; (2) the NRC's costs of helping to administer 
the Low-Level Radioactive Waste Policy Act (P.L. 96-573, as 
amended), in coordination with States and Low-Level Waste 
Compacts; and (3) activities associated with the licensing and 
inspection of spent nuclear fuel storage facilities and 
transportation canisters. For Fiscal Year 1999, the bill 
authorizes $29.1 million for Nuclear Waste Safety, a 21 percent 
increase from the Fiscal Year 1998 estimate of $24.1 million. 
This figure includes a proposed $18.5 million appropriation 
from the Nuclear Waste Fund to pay for the NRC's planned Yucca 
Mountain activities.
    One of the critical elements of Nuclear Waste Safety is the 
work of the Spent Fuel Project Office (SFPO). The SFPO was 
originally created by the Commission in April 1995 in 
recognition of the increasing demands for the approval of 
technologies and activities associated with the storage and 
transportation of spent nuclear fuel. At the time, a major 
anticipated initiative for the SFPO was the review of the DOE 
design for a multi-purpose canister (MPC) for the 
transportation, storage, and disposal of spent fuel.
    With the urging and approval of the Committee, the DOE 
subsequently canceled its MPC program and chose to rely, 
instead, on the private sector for the development of such 
canister technologies. As anticipated, the private sector has, 
in fact, entered into the MPC market with vigor. There are 
currently seven dual-purpose (storage and transportation) 
canister systems undergoing reviews at the SFPO.
    In addition, as more fully laid out in the Commission's 
budget request, and in responses to questions from the 
Committee, the SFPO is also responsible for:
          Ensuring the safety of existing technologies that 
        have been deployed throughout the nuclear energy 
        industry as needs for ``out of pool'' storage have 
        emerged;
          Reviewing and approving cask technologies necessary 
        to support high priority non-proliferation activities 
        of the United States, including the DOE Foreign 
        Research Reactor Spent Fuel Receipt Program;
          Reviewing and approving the transportation 
        technologies for nuclear materials other than spent 
        fuel; and
          Reviewing and approving, or providing support to, a 
        host of other spent fuel storage and transportation 
        initiatives sponsored by either the Federal government 
        or private interests.
    Given these responsibilities, additional steps need to be 
taken to ensure that the Office is positioned to meet the 
challenges it will face in the next several years. The 
Commission has recognized the current resource constraints 
under which the SFPO is operating, and a number of management 
initiatives undertaken by the Office are to be commended. In 
particular, the Committee understands that the Office is 
considering a policy to encourage the submission of high 
quality applications and/or amendments by shifting staff 
resources away from consideration of applications or amendments 
that have failed to resolve major issues after two requests for 
additional information from the Commission staff.
    Despite these initiatives, greater attention needs to be 
focused on the efforts of the SFPO to meet its challenges in a 
timely fashion. In that vein, the Committee urges the 
Commission to examine the feasibility of further aligning the 
resources of the SFPO around the priority activities described 
above. The NRC should examine the staffing levels, management 
initiatives and organizational changes that would be necessary 
to further accelerate consideration of applications, amendments 
or reviews submitted to it by both the private sector and 
governmental entities. The Commission should also evaluate the 
merits of placing internal time limits on its consideration of 
applications in order to create greater consistency for 
applicant's expectations in the time frame for application 
processing.
    In addition, the Committee would like the Commission to 
examine further management initiatives (such as those currently 
under review) that might be necessary in the short term to 
address existing budget constraints and to ensure that 
resources are being utilized to maximize the efficiency of 
application review.

      4. common defense and security and international involvement

    This function includes funding for a host of NRC 
activities. In the international arena, the NRC is responsible 
for representing the U.S. in international policy forums, the 
licensing of exports and imports of nuclear materials, and 
international nuclear safety and assistance. Domestically, the 
NRC is responsible for the accounting of civilian nuclear 
materials, safeguards and security of civilian materials, and 
contingency planning for nuclear threat scenarios. H.R. 3532 
authorizes $9.7 million in Fiscal Year 1999 for Common Defense 
and Security and International Involvement, a 5 percent 
increase over the Fiscal Year 1998 estimate of $9.3 million.

                     5. protecting the environment

    The function entitled ``Protecting the Environment'' 
includes the NRC's activities in fulfillment of the National 
Environmental Policy Act (NEPA), assessing the environmental 
risk of licensee activities, and the decommissioning of nuclear 
facilities (with the exception of uranium mill sites, which are 
funded under the Nuclear Materials Safety account). The bill 
authorizes $14.9 million in Fiscal 
Year 1999 for environmental protection initiatives, a 17 
percent increase over the Fiscal Year 1998 estimate of $12.7 
million.

                       6. management and support

    This account includes all of the NRC's administrative and 
managerial support. For Fiscal Year 1999, H.R. 3532 authorizes 
$169.3 million for Management and Support, a 3.5 percent 
increase over the Fiscal Year 1998 estimate of $163.6 million.

                      7. inspector general program

    The NRC's Inspector General is responsible for the 
independent evaluation of the Commission's programs, and 
conducts audits, investigations, event inquiries and special 
evaluations. This includes oversight of NRC's whistleblower 
investigation and protection programs. The bill authorizes $5.3 
million in Fiscal Year 1999 for its Inspector General program, 
a 10 percent increase over the Fiscal Year 1998 estimate of 
$4.8 million.

                                Hearings

    The Subcommittee on Energy and Power held a hearing on the 
Fiscal Year 1999 budget request of the NRC and H.R. 3532, the 
Nuclear Regulatory Commission Authorization Act for Fiscal Year 
1999, on March 25, 1998. The Subcommittee received testimony 
from: the Honorable Shirley Ann Jackson, Chairman, Nuclear 
Regulatory Commission; the Honorable Greta Joy Dicus, 
Commissioner, Nuclear Regulatory Commission; the Honorable Nils 
J. Diaz, Commissioner, Nuclear Regulatory Commission; and the 
Honorable Edward McGaffigan, Jr., Commissioner, Nuclear 
Regulatory Commission.

                        Committee Consideration

    On April 22, 1998, the Subcommittee on Energy and Power met 
in open markup session and approved H.R. 3532, the Nuclear 
Regulatory Commission Authorization Act for Fiscal Year 1999, 
for Full Committee consideration, without amendment, by a voice 
vote. On April 29, 1998, the Committee on Commerce met in open 
markup session and ordered the bill H.R. 3532 reported to the 
House, without amendment, by a voice vote, a quorum being 
present.

                             Rollcall Votes

    Clause 2(l)(2)(B) of rule XI of the Rules of the House 
requires the Committee to list the recorded votes on the motion 
to report legislation and amendments thereto. There were no 
recorded votes taken in connection with ordering H.R. 3532 
reported. A motion by Mr. Bliley to order H.R. 3532 reported to 
the House, without amendment, was agreed to by a voice vote, a 
quorum being present.

                      Committee Oversight Findings

    Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of 
the House of Representatives, the Committee held a legislative 
hearing and made findings that are reflected in this report.

              Committee on Government Reform and Oversight

    Pursuant to clause 2(l)(3)(D) of rule XI of the Rules of 
the House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform and Oversight.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 2(l)(3)(B) of rule XI of the 
Rules of the House of Representatives, the Committee finds that 
H.R. 3532, the Nuclear Regulatory Commission Authorization Act 
for Fiscal Year 1999, would result in no new or increased 
budget authority, entitlement authority, or tax expenditures or 
revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 2(l)(3)(C) of rule XI of the Rules of 
the House of Representatives, the following is the cost 
estimate provided by the Congressional Budget Office pursuant 
to section 402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 19, 1998.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3532, the Nuclear 
Regulatory Commission Authorization Act for Fiscal Year 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kim Cawley 
(for federal costs), Marjorie Miller (for the state and local 
impact), and Jean Wooster (for the private-sector impact).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 3532--Nuclear Regulatory Commission Authorization Act for Fiscal 
        Year 1999

    Summary: H.R. 3532 would authorized appropriations for 1999 
of $483.3 million for the Nuclear Regulatory Commission (NRC) 
and $5.3 million for the NRC's Office of Inspector General. Of 
these amounts, $18.5 million would be authorized to be 
appropriated from the Nuclear Waste Trust Fund, with the 
remainder coming from the general fund of the Treasury. The 
bill would extend the NRC's authority to offset all of its 
general fund appropriations through fees and annual charges 
through 2003. Under current law, this authority would otherwise 
expire at the end of fiscal year 1998.
    H.R. 3532 would allow the NRC to spend, without 
appropriation action, certain collections that are currently 
subject to appropriation. The legislation also would authorize 
the NRC to accept gifts of money or property from the public to 
facilitate the NRC's work, and would establish a new criminal 
penalty for the sabotage of nuclear production, utilization, or 
waste storage facilities. Because these provisions would affect 
direct spending and receipts, pay-as-you-go procedures would 
apply to the bill.
    By extending the NRC's authority to collect fees from 
utilities, section 107 would impose both an intergovernmental 
and private-sector mandate as defined by the Unfunded Mandates 
Reform Act of 1995 (UMRA). This mandate would not impose costs 
above the threshold established in UMRA for intergovernmental 
mandates ($50 million in 1996, adjusted for inflation). CBO 
cannot determine whether the direct costs of the mandate would 
exceed the annual threshold for private-sector mandates ($100 
million in 1996, adjust for inflation), because UMRA is unclear 
about how to define the costs associated with extending an 
existing mandate that has not yet expired. Depending on how 
they are measured, the direct costs to the private sector could 
exceed the threshold.
    Estimated Cost to the Federal Government. The estimated 
budgetary impact of H.R. 3532 is shown in the following table. 
The costs of this legislation fall within budget function 270 
(energy).

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                              1997      1998      1999      2000      2001      2002      2003  
----------------------------------------------------------------------------------------------------------------
                                       SPENDING SUBJECT TO APPROPRIATIONS                                       
                                                                                                                
Net NRC spending under current law:                                                                             
    Budget authority \1\..................        18        18         0         0         0         0         0
    Estimated outlays.....................        52        22       142        47         0         0         0
Proposed changes:                                                                                               
    NRC spending:                                                                                               
        Authorization level...............         0         0       489         0         0         0         0
        Estimated outlays.................         0         0       343        98        48         0         0
    Offsetting collections:                                                                                     
        Authorization level...............         0         0      -467         0         0         0         0
        Estimated outlays.................         0         0      -467         0         0         0         0
Net NRC spending under H.R. 3532:                                                                               
    Authorization level \1\...............        18        18        22         0         0         0         0
    Estimated outlays.....................        52        22        18       145        48         0         0
                                                                                                                
                                           CHANGES IN DIRECT SPENDING                                           
                                                                                                                
Estimated budget authority................         0         0     (\2\)     (\2\)     (\2\)     (\2\)     (\2\)
Estimated outlays.........................         0         0     (\2\)     (\2\)     (\2\)     (\2\)     (\2\)
                                                                                                                
                                               CHANGES IN REVENUES                                              
                                                                                                                
Estimated revenues........................         0         0     (\2\)     (\2\)     (\2\)     (\2\)     (\2\)
----------------------------------------------------------------------------------------------------------------
\1\ The 1998 level is the net amount appropriated for that year (gross appropriations less offsetting           
  collections).                                                                                                 
\2\ Less than $500,000.                                                                                         

    Basis of estimate: For purposes of this estimate, CBO 
assumes that H.R. 3532 will be enacted by the end of this 
fiscal year and that all funds authorized by the bill will be 
appropriated. Estimated outlays are based on the historical 
spending patterns of the NRC.
            Spending subject to appropriation
    Section 101 would authorize the appropriation of $483.3 
million for 1999 for the NRC, of which $18.5 million would be 
derived from the Nuclear Waste Trust Fund. In addition, $5.3 
million would be authorized to be appropriated to the NRC's 
Office of Inspector General for 1999.
    Section 107 would extend the NRC's authority to collect 
user fees and annual charges sufficient to fully offset the 
agency's general fund appropriation for five years, through 
2003. Also, section 106 would exclude any appropriation from 
the general fund for the cost of NRC's regulatory reviews and 
assistance to federal agencies from cost recovery through 
annual charges. CBO estimates the NRC would spend about $3.2 
million on assistance to other federal agencies in 1999, and 
that this sum would be excluded from offsetting collections in 
that year.
            Direct spending and revenues
    Section 103 would allow the NRC to collect and spend, 
without appropriation action, funds from state governments, 
foreign governments, and international organizations for 
training, travel, and other services performed by the NRC. In 
recent years, such collections have been made available to the 
NRC in annual appropriations acts. Based on information from 
the NRC, we estimate the agency would receive from these 
sources and spend about $2.6 million in 1999, and similar 
amounts over the 2000-2008 period. Thus, the net budgetary 
impact would not be significant.
    Section 203 would authorize the NRC to accept, hold, 
utilize, sell, and administer gifts, bequests, or donations of 
real and personal property for the purpose of aiding or 
facilitating the work of the NRC. Donations are recorded in the 
budget as governmental receipts (revenues). Based on 
information from the NRC, we estimate that receipts from such 
gifts would be less than $500,000 annually. Finally, the bill 
would establish a new criminal penalty for the sabotage of 
nuclear production, utilization, or waste storage facilities. 
CBO estimates that enacting this provision would also increase 
governmental receipts by less than $500,000 a year. Criminal 
fines are deposited in the Crime Victims Fund and are spent in 
the following year. Thus, any resulting change in direct 
spending from the fund would also amount to less than $500,000 
annually.
    Pay-as-you-go considerations: Section 252 of the Balanced 
Budget and Emergency Deficit Control Act of 1995 sets up pay-
as-you-go procedures for legislation affecting direct spending 
or receipts. CBO estimates that the net changes in direct 
spending and governmental receipts would be less than $500,000 
a year.
    Intergovernmental and private-sector impact: Under current 
law, the NRC collects annual fees to offset 100 percent of its 
general fund appropriation. The NRC's existing authority to 
impose these fees expires at the end of fiscal year 1998. When 
that authority expires, the NRC will be authorized to collect 
annual fees up to only 33 percent of its budget. Section 107 
would extend the NRC's current authority to charge annual fees 
to offset all of its general fund appropriation through fiscal 
year 2003. The requirement to pay these fees would be a mandate 
as defined in UMRA.
    The total amount of fees collected under this provision 
would depend on the level of future appropriations. Assuming 
appropriations in the amount authorized in this bill for 1999, 
CBO estimates that extending the fees would result in 
additional collections of about $306 million in 1999 from 
industries regulated by the NRC (primarily electric utilities) 
and similar amounts for fiscal years 2000 through 2003. (Under 
current law, the industries would pay fees equal to about one-
third of NRC's appropriation, or $161 million in 1999. Under 
H.R. 3532, they would pay $467 million in fees in 1999.) CBO 
estimates that most of the annual fees would be paid by 
private, investor-owned nuclear utilities (less than 5 percent 
would be paid by nonfederal, publicly owned utilities.)
    CBO cannot determine whether this mandate would impose any 
costs as defined in UMRA because the law is unclear as to how 
to measure costs associated with extending an existing mandate 
that has not yet expired. Measured against the costs that would 
be incurred if current law remains in place and the annual fee 
declines, the total cost to the private sector of extending 
this mandate would be close to $300 million annually, beginning 
in fiscal year 1999. Measured that way, the cost of the mandate 
would exceed the annual threshold for the private sector as 
defined in UMRA. By contrast, measured against the fees paid 
for fiscal year 1998, the mandate would impose no additional 
costs on the private sector because the fees under H.R. 3532 
would not differ much from those currently in effect. In any 
case, CBO estimates that the total costs to state, local, and 
tribal governments would be below the threshold for 
intergovernmental mandates established in UMRA.
    Estimate prepared by: Federal costs--Kim Cawley; impact on 
state, local, and tribal governments--Marjorie Miller; impact 
on the private sector--Jean Wooster.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    The section provides that the short title of the bill is 
the ``Nuclear Regulatory Commission Authorization Act for 
Fiscal Year 1999.''

                         Title I--Authorization

Section 101. Authorization of appropriations for Fiscal Year 1999

    This section provides the aggregate authorization for NRC 
spending for Fiscal Year 1999. It authorizes a total of 
$483,340,000 for the Commission, of which $18,500,000 is 
authorized to be appropriated from the Nuclear Waste Fund. It 
also authorizes a total of $5,300,000 for the NRC Inspector 
General.

Section 102. Allocation of amounts authorized

    The section allocates the aggregate funding to the NRC's 
various programs: $211,422,000 for Nuclear Reactor Safety; 
$48,869,000 for Nuclear Materials Safety; $29,147,000 for 
Nuclear Waste Safety; $9,732,000 for Common Defense and 
Security and International Involvement; $14,901,000 for 
Environmental Protection; and $169,269,000 for Management and 
Support.
    It also limits the amount of funds which may be utilized 
for grants and cooperative agreements with non-Federal 
organizations to one percent of the total authorization. The 
section also allows the Commission to reallocate resources to 
programs of the NRC, but requires the notification of the 
Committee on Commerce in the House and the Committee on 
Environment and Public Works in the Senate of such reallocation 
if it involves more than $1,000,000. Additionally, any funding 
from the Nuclear Waste Fund is limited solely for the purposes 
of high-level nuclear waste activities at the proposed 
repository at Yucca Mountain, Nevada, and may not be 
reallocated.

Section 103. Retention of funds

    The section allows the Commission to utilize funding 
received from non-Federal entities for programs, salaries and 
expenses, notwithstanding the requirements of 31 U.S.C. 3302.

Section 104. Transfer of certain funds

    This section allows the transfer of funds from the 
Commission to the Inspector General if required, provided that 
the transferred funds do not exceed no more than 5 percent of 
the Inspector General's budget (approximately $265,000). This 
provides the Inspector General's office additional funding 
flexibility if unforeseen circumstances requiring an enhanced 
investigatory role arise.

Section 105. Limitation

    The section limits payments authorized under this Act for 
salaries or expenses to those amounts provided by 
appropriations.

Section 106. License fee exemption

    This section exempts funding for the NRC's regulatory 
reviews and other assistance to other Federal agencies from the 
calculation of charges assessed against the NRC's licensees to 
ensure that licensees are not burdened with funding the NRC's 
activities on behalf of other Federal agencies.

Section 107. NRC user fees and annual charges

    The section amends section 6101(a)(3) of the Omnibus Budget 
Reconciliation Act of 1990 to extend the NRC's current 
authority to collect 100 percent of its budget (minus funding 
from the Nuclear Waste Fund and costs associated with its work 
with other Federal agencies) from September 30, 1998, to 
September 30, 2003.

                       Title II--Other Provisions

Section 201. Office location

    The section eliminates the requirement that the NRC 
maintain an office within the District of Columbia. Since the 
passage of section 23 of the Atomic Energy Act of 1954, the 
Commission has consolidated its headquarters at a site in 
Rockville, Maryland. As a result, the statutory requirement to 
maintain an office ``for the service of process and papers'' 
within the District of Columbia is not necessary. Under the 
section, process would be served at the Commission's 
headquarters in Rockville, Maryland.

Section 202. Period of a combined license

    This section clarifies that the initial period of a 
combined construction and operating license for a production or 
utilization facility may not exceed 40 years from the date on 
which the Commission finds that the acceptance criteria for 
facility operation have been met. In the Energy Policy Act of 
1992 (Public Law 102-486), Congress simplified the NRC's 
licensing process for production and utilization facilities, 
making explicit the authority of the Commission to issue a 
combined license for the construction and operation of such 
facilities. The Energy Policy Act, however, did not make 
explicit that the period of such a combined license should 
allow for the same 40 year operating period that a holder of a 
separately-issued operating license would have. The section 
simply clarifies that the 40 year limitation would not begin 
until the NRC finds that the facility operation acceptance 
criteria have been met, allowing a full 40 year operating 
license for production and utilization facilities utilizing the 
simplified licensing process.

Section 203. Gift acceptance authority

    The section allows the NRC to accept gifts, bequests, or 
donations of real and personal property for the purpose of 
aiding or facilitating the work of the Commission. Such gifts, 
for example, may include the donation of technical publications 
dealing with nuclear power plant technology or the provision of 
specialized training for NRC employees. At present, the 
Commission does not have any gift acceptance authority, 
requiring it to decline acceptance of such gifts.
    The language does not affect general Federal restrictions 
on gifts to employees, and these government-wide statutory 
requirements would remain in place for NRC employees accepting 
such gifts. The Committee expects that any such gifts, 
bequests, or donations would be usedfor exclusively public 
purposes, and that the NRC decline any gift, donation, or bequest which 
would have even a hint of compromising the integrity of the Commission 
or its employees. The Committee expects these limitations to be 
included in the regulatory guidance the Commission issues to implement 
this authority.

Section 204. Carrying of firearms by licensee employees

    This section would permit guards at certain NRC licensed or 
certified facilities to carry arms, make arrests, and use force 
where necessary to prevent the theft or sabotage of special 
nuclear materials. The language would also prevent guards at 
such facilities from being prosecuted under State law for the 
discharge of firearms in the performance of official duties.
    Current statute permits such authority only for Department 
of Energy security forces, although several NRC licensed or 
certified facilities also handle and store special nuclear 
materials. Under current statute, guards at these facilities 
are cabined by the restrictions of State law, which may allow 
the use of weapons by guards only to protect their own lives or 
the lives of others, and not to prevent the theft or sabotage 
of radioactive materials. The section would extend the current 
authorities and protections granted to DOE guards to guards at 
certain sites licensed or certified by the NRC.
    This provision would be a valuable asset in protecting 
national security assets which could be subject to theft or 
sabotage. The Committee expects that the NRC, in issuing its 
regulations to implement this authority, would limit its 
application to employees engaged in the protection of property 
of significance to the common defense and security of the 
United States at those facilities or during transport to and 
from such facilities. Such facilities could include, but would 
not be limited to, production facilities licensed by the 
Commission which utilize special nuclear materials, or gaseous 
diffusion plants, at which guards must protect significant 
quantities of radioactive materials and the gaseous diffusion 
technology utilized to enrich uranium.

Section 205. Sabotage of production, utilization, or waste storage 
        facilities under construction

    The section would expand current statutory language 
prohibiting the sabotage of nuclear facilities to include 
nuclear waste treatment and disposal facilities, nuclear fuel 
fabrication facilities, and any facility during its 
construction phase where the damage could affect public health 
and safety during the facility's operation. This change simply 
ensures that the full range of NRC licensed or certified 
facilities are covered under the statute's provisions.

Section 206. Unauthorized introduction of dangerous weapons

    This section would expand current statutory language 
authorizing the Commission to regulate the introduction of 
dangerous weapons onto its own facilities to include facilities 
licensed or certified by the Commission. This change ensures 
that the full range of facilities regulated by the Commission 
are subject to the statutory provisions prohibiting the 
introduction of unauthorized weapons or other dangerous 
instruments, providing an additional measure of security for 
materials which could be subject to theft or sabotage.

Section 207. Continuation of Commissioner service

    The section would allow a Commissioner whose term has 
expired to continue to serve until a successor has taken 
office. It also allows a holdover Commissioner to be removed at 
the President's discretion, and requires that such a 
Commissioner not be retained beyond the expiration of the next 
session of Congress subsequent to the expiration of the fixed 
term of office of the Commissioner. Under present statute, 
there is no provision for the conduct of Commission business by 
Commission members without a quorum of three. As recently as 
the period from July 1, 1995, to February 14, 1996, only two 
Commissioners were in place at the NRC, leading to a situation 
in which it was not possible for the Commission to produce a 
quorum. This language would reduce the potential for such 
circumstances in the future.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

     SECTION 6101 OF THE OMNIBUS BUDGET RECONCILIATION ACT OF 1990

SEC. 6101. NRC USER FEES AND ANNUAL CHARGES.

    (a) Annual Assessment.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Last assessment of annual charges.--The last 
        assessment of annual charges under subsection (c) shall 
        be made not later than September 30, [1998] 2003.

           *       *       *       *       *       *       *

                              ----------                              


ATOMIC ENERGY ACT OF 1954

           *       *       *       *       *       *       *


TITLE I--ATOMIC ENERGY

           *       *       *       *       *       *       *


                        CHAPTER 3. ORGANIZATION

  Sec. 23. Office.--The principal office of the Commission 
shall be in or near the District of Columbia, but the 
Commission or any duly authorized representative may exercise 
any or all of its powers in any place[; however, the Commission 
shall maintain an office for the service of process and papers 
within the District of Columbia].

           *       *       *       *       *       *       *


CHAPTER 10. ATOMIC ENERGY LICENSES

           *       *       *       *       *       *       *


  Sec. 103. Commercial Licenses.--
  a. * * *

           *       *       *       *       *       *       *

  c. Each such license shall be issued for a specified period, 
as determined by the Commission, depending on the type of 
activity to be licensed, but not exceeding forty years, and may 
be renewed upon the expiration of such period. In the case of a 
combined construction and operating license issued under 
section 185 b., the initial duration of the license may not 
exceed 40 years from the date on which the Commission finds, 
prior to operation of the facility, that the acceptance 
criteria required by section 185.b have been met.

           *       *       *       *       *       *       *


                     CHAPTER 14. GENERAL AUTHORITY

  Sec. 161. General Provisions.--In the performance of its 
functions the Commission is authorized to--
          a.  * * *

           *       *       *       *       *       *       *

          g. (1) acquire, purchase, lease, and hold real and 
        personal property, including patents, as agent of and 
        on behalf of the United States, subject to the 
        provisions of section 174, and to sell, lease, grant, 
        and dispose of such real and personal property as 
        provided in this Act;
          (2) accept, hold, utilize, sell, and administer 
        gifts, bequests, or donations of real and personal 
        property for the purpose of aiding or facilitating the 
        work of the Nuclear Regulatory Commission. There is 
        established in the Treasury a fund for use in 
        accordance with the provisions of this paragraph. Any 
        gift of money accepted pursuant to the authority 
        granted in this paragraph, or the net proceeds from the 
        sale of any property so accepted, shall be deposited in 
        the fund. Such funds shall be held in trust by the 
        Secretary of the Treasury and shall be disbursed upon 
        certification by the Chairman of the Nuclear Regulatory 
        Commission. Property accepted pursuant to this 
        paragraph, and the proceeds thereof, shall be used as 
        nearly as possible in accordance with the terms of the 
        gift, bequest, or donation if such terms are not 
        inconsistent with this paragraph or any other 
        applicable law. The Commission shall establish written 
        criteria for determining whether to accept bequests, 
        gifts, or donations of money or property pursuant to 
        this paragraph. Such criteria shall take into 
        consideration whether the acceptance of the gift, 
        bequest, or donation would compromise the integrity of, 
        or the appearance of the integrity of, the Nuclear 
        Regulatory Commission or any officer or employee of the 
        Commission;

           *       *       *       *       *       *       *

          [k. authorize such of its members, officers, and 
        employees as it deems necessary in the interest of the 
        common defense and security to carry firearms while in 
        the discharge of their official duties. The Commission 
        may also authorize such of those employees of its 
        contractors and subcontractors (at any tier) engaged in 
        the protection of property under the jurisdiction of 
        the United States and located at facilities owned by or 
        contracted to the United States or being transported to 
        or from such facilities as it deems necessary in the 
        interests of the common defense and security to carry 
        firearms while in the discharge of their official 
        duties. A person authorized to carry firearms under 
        this subsection may, while in the performance of, and 
        in connection with, official duties, make arrests 
        without warrant for any offense against the United 
        States committed in that person's presence or for any 
        felony cognizable under the laws of the United States 
        if that person has reasonablegrounds to believe that 
the individual to be arrested has committed or is committing such 
felony. An employee of a contractor or subcontractor authorized to 
carry firearms under this subsection may make such arrests only when 
the individual to be arrested is within, or in direct flight from, the 
area of such offense. A person granted authority to make arrests by 
this subsection may exercise that authority only in the enforcement of 
(1) laws regarding the property of the United States in the custody of 
the Department of Energy, the Nuclear Regulatory Commission, or a 
contractor of the Department of Energy or Nuclear Regulatory 
Commission, or (2) any provision of this Act that may subject an 
offender to a fine, imprisonment, or both. The arrest authority 
conferred by this subsection is in addition to any arrest authority 
under other laws. The Secretary, with the approval of the Attorney 
General, shall issue guidelines to implement this subsection;]
          k. authorize such of its members, officers, and 
        employees as it deems necessary in the interest of the 
        common defense and security to carry firearms while in 
        the discharge of their official duties. The Commission 
        may also authorize--
                  (1) such of those employees of its 
                contractors and subcontractors (at any tier) 
                engaged in the protection of property under the 
                jurisdiction of the United States located at 
                facilities owned by or contracted to the United 
                States or being transported to or from such 
                facilities as it deems necessary in the 
                interests of the common defense and security; 
                and
                  (2) such of those employees of persons 
                licensed or certified by the Commission 
                (including employees of contractors of 
                licensees or certificate holders) engaged in 
                the protection of property of significance to 
                the common defense and security located at 
                facilities owned or operated by a Commission 
                licensee or certificate holder or being 
                transported to or from such facilities;
        to carry firearms while in the discharge of their 
        official duties. A person authorized to carry firearms 
        under this subsection may, while in the performance of, 
        and in connection with, official duties make arrests 
        without warrant for any offense against the United 
        States committed in that person's presence or for any 
        felony cognizable under the laws of the United States 
        if that person has reasonable grounds to believe that 
        the individual to be arrested has committed or is 
        committing such felony. An employee of a contractor or 
        subcontractor or of a Commission licensee or 
        certificate holder (or a contractor of a licensee or 
        certificate holder) authorized to carry firearms under 
        this subsection may make such arrests only when the 
        individual to be arrested is within, or in direct 
        flight from, the area of such offense. A person granted 
        authority to make arrests by this subsection may 
        exercise that authority only in the enforcement of laws 
        regarding the property of the United States in the 
        custody of the Department of Energy, the Nuclear 
        Regulatory Commission, or a contractor of the 
        Department of Energy or Nuclear Regulatory Commission 
        or a licensee or certificate holder of the Commission, 
        laws applicable to property of significance to the 
        common defense and security that is in the custody of a 
        licensee or certificate holder or a contractor of a 
        licensee or certificate holder of the Commission, or 
        any provision of this chapter that may subject an 
        offender to a fine, imprisonment, or both. The arrest 
        authority conferred by this subsection is in addition 
        to any arrest authority under other laws. The Secretary 
        and the Commission, with the approval of the Attorney 
        General, shall issue guidelines to implement this 
        subsection;

           *       *       *       *       *       *       *


CHAPTER 18. ENFORCEMENT

           *       *       *       *       *       *       *


  Sec. 229. Trespass Upon Commission Installations.--
          a. The Commission is authorized to issue regulations 
        relating to the entry upon or carrying, transporting, 
        or otherwise introducing or causing to be introduced 
        any dangerous weapons, explosive, or other dangerous 
        instrument or material likely to produce substantial 
        injury or damage to persons or property, into or upon 
        any facility, installation, or real property subject to 
        the jurisdiction, administration, or in the custody of 
        the Commission or subject to its licensing authority or 
        to certification by the Commission under this Act or 
        any other Act. Every such regulation of the Commission 
        shall be posted conspicuously at the location involved.

           *       *       *       *       *       *       *

  Sec. 236. Sabotage of Nuclear Facilities or Fuel.--
  [a. Any person who intentionally and willfully destroys or 
causes physical damage to, or who intentionally and willfully 
attempts to destroy or cause physical damage to--
          [(1) any production facility or utilization facility 
        licensed under this Act;
          [(2) any nuclear waste storage facility licensed 
        under this Act;
          [(3) any nuclear fuel for such a utilization 
        facility, or any spent nuclear fuel from such a 
        facility; or
          [(4) any uranium enrichment facility licensed by the 
        Nuclear Regulatory Commission.
shall be fined not more than $10,000 or imprisoned for not more 
than ten years, or both.]
  a. Any person who intentionally and willfully destroys or 
causes physical damage to, or who intentionally and willfully 
attempts to destroy or cause physical damage to--
          (1) any production facility or utilization facility 
        licensed under this Act;
          (2) any nuclear waste storage, treatment, or disposal 
        facility licensed under this Act;
          (3) any uranium enrichment or nuclear fuel 
        fabrication facility licensed or certified by the 
        Nuclear Regulatory Commission;
          (4) any production, utilization, waste storage, waste 
        treatment, waste disposal, uranium enrichment, or 
        nuclear fuel fabrication facility subject to licensing 
        or certification under this Act during its construction 
        where the destruction or damage caused or attempted to 
        be caused could affect public health and safety during 
        the operation of the facility; or
          (5) any nuclear fuel for a utilization facility 
        licensed under this Act, or any spent nuclear fuel from 
        such a facility;
shall be fined not more than $10,000 or imprisoned for not more 
than 10 years, or both.

           *       *       *       *       *       *       *

                              ----------                              


          SECTION 201 OF THE ENERGY REORGANIZATION ACT OF 1974

                      establishment and transfers

  Sec. 201. (a) * * *

           *       *       *       *       *       *       *

  (c)(1) Each member shall serve for a term of five years, each 
such term to commence on July 1, except that of the five 
members first appointed to the Commission, one shall serve for 
one year, one for two years, one for three years, one for four 
years, and one for five years, to be designated by the 
President at the time of appointment; and except that any 
member appointed to fill a vacancy occurring prior to the 
expiration of the term for which his predecessor was appointed, 
shall be appointed for the remainder of such term. For the 
purpose of determining the expiration date of the terms of 
office of the five members first appointed to the Nuclear 
Regulatory Commission, each such term shall be deemed to have 
begun July 1, 1975.
  (2) A member of the Commission whose term of office has 
expired may, subject to the removal power of the President, 
continue to serve as a member until the member's successor has 
taken office, except that the member shall not continue to 
serve beyond the expiration of the next session of Congress 
subsequent to the expiration of the fixed term of office.

           *       *       *       *       *       *       *


                                
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