ENERGY REORGANIZATION ACT OF 1974 REPORT OF THE COMMITTEE ON GOVERNMENT OPERATIONS UNITED STATES SENATE TO ACCOMPANY S. 2744 TO REORGANIZE AND CONSOLIDATE CERTAIN FUNCTIONS OF THE FEDERAL GOVERNMENT IN A NEW ENERGY RESEARCH AND DEVELOP

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000500250001-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 118
• Document Creation Date: December 12, 2016
• Document Release Date: November 6, 2001
• Sequence Number: 1
• Publication Date: June 27, 1974
• Content Type: REPORT

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Calendar No. 944
93D CONGRESS
2d Session
j REroinT
l No. 4)3-9b0
ENERGY REORGANIZATION ACT OF 1974
REPORT
OF THE
COMMITTEE ON GOVERNMENT OPERATIONS
UNITED STATES SENATE
TO ACCOMPANY
S. 2744
TO REORGANIZE AND CONSOLIDATE CERTAIN FUNC-
TIONS OF THE FEDERAL GOVERNMENT IN A NEW
ENERGY RESEARCH AND DEVELOPMENT ADMINISTRA-
TION AND IN A NEW NUCLEAR SAFETY AND LICENSING
COMMISSION IN ORDER TO PROMOTE MORE EFFICIENT
MANAGEMENT OF SUCH FUNCTIONS
U.S. GOVERNMENT PRINTING OFFICE
34-980 WASHINGTON : 1974
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COMMITTEE ON G017ERNMENT OPERATIONS
SAM J. ERVIN, Ja., North Carolina, Chairman
JOIIN L. McCLELLAN, Arkansas CHARLES H. PERCY, Illinois
HENRY M. JACKSON, Washington JACOB K. JAVITS, New York
EDMUND S. MUSKIE, Maine EDWARD J. GURNEY, Florida
ABRAHAM RIBICOFF, Connecticut WILLIAM V. ROTH, JR., Delaware
LEE METCALF, Montana BILL BROCK, Tennessee
JAMES B. ALLEN, Alabama
LAWTON CHILES, Florida.
SAM NUNN, Georgia
WALTER D. HUDDLESTON, Kentucky
ROBERT BLAND SMITH, Jr., Chief Counsel and Staff Director
GAY HOLLIDAY, Assistant Chief Clerk
ELI E. NOBLEMAN, Counsel
W. P. GOODWIN, Jr., Counsel
J. ROBERT VAST[NE, Minority Counsel
BRIAN CONBOY, Special Counsel to the Minority
W. THOMAS FOXWELL, Staff Editor
SUBCOMM:IrVEE ON REORGANIZATION, RESEARCH, AND INTERNATIONAL
ORGANIZATIONS
ABP.AIIAM, RIBICOI^F, Connecticut, Chairman
.TAMES B. ALLEN, Alabama JACOB K. JAVITS, New York
HENRY M. JACESON, Wa:,hington CHARLES H. PERCY, Illinois
LAWTON CHILES, Florida BILL BROCK, Tennessee
SAM NUNN, Georgia
RICHARD A. WEGMAN', Chief Counsel and Staff Director
PAUL L. LEVENTHAL, Special Counsel
PAUL DOFF, Legisiati,gef;t.on (a). Findi-ncjs. Subsection (a) of section 109, contains the
findings on the energy situation in the United States. As has been
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discussed above, there are numerous Federal agencies created at differ-
ent times and for different purposes to handle specialized problems all
directly or indirectly involved in the establishment of energy policy.
The committee found that as a result of the involvement of so many
agencies and the absence of an energy policymaking mechanism, there
is no comprehensive, coherent energy policy. Instead, Federal activities
consist of a myriad of laws, regulations and inactions, that often result
in narrow, short-range and conflicting decisionmaking by individual
agencies and the absence of an energy policymaking mechanism, there
But current concern over energy difficulties reflects the fact that some
fuels can be supplied, if at all from domestic sources, only at much
higher real cost. Environmental constraints are also placed on fuels
that contribute to air and thermal pollution. Incompatible Federal
energy policies can cause increases in curtailments, demands, costs and
dependence on imports.
Several factors converged to form the energy difficulties now facing
the Nation. Energy shifts occurred independently and without con-
sideration of the overall situation. As a result today we have an exces-
sive energy demand, soaring energy prices, instability in fuel markets,
and mismanagement of energy resources.
Subsection (b). Statement of Purposes. Based on these fundings
the committee recommends the establishment of a Council on Energy
Policy. This Council would have three primary purposes. First, it
would serve as a central point for the collection, analysis, and inter-
pretation of energy statistics. The objective is to establish a reliable
energy data system that is comparable to the Nation's economic statis-
tics system, Thus, the arguments regarding energy data will be resolved
and attention focused on the Nation's substantive energy difficulties.
Particularly important would be the development of improved fore-
casting techniques in projecting energy demands and supplies.
A second major purpose of the Council would be to coordinate the
energy activities of the Federal Government and provide leadership
to State and local governments and other persons involved in energy
activities.
Third, the Council would prepare a long-range comprehensive plan
(the Energy Plan) for energy development, utilization and conser-
vation to foster improvement in the efficiency of energy production
and utilization, reduction of the adverse environmental impacts of
energy production and utilization, conservation of energy resources
for the use of future generations, reduction of excessive energy de-
mands, and development of new technologies to produce clean energy.
The Energy Plan is to be continually updated in an ongoing plan-
ning process.
The plan would not call for activities that are beyond the then
existing statutory authority of the appropriate agency to implement.
But, the Council. may submit an Energy Plan that calls for actions by
operating agencies which are contingent upon the enactment of legis-
lation recommended by the Council. If such recommendations do
not become law, then that portion of the Energy Plan which is depend-
ent upon such enactment, naturally, shall not be implemented by
Federal agencies.
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In sum, the Energy Plan is to provide a roadmap for phasing out
those policies which have contributed to excessive energy demand and
inefficient utilization of energy. In their place would be substituted
policies encouraging energy conservation, improved efficiencies and
the increased production of cleaner energy.
Subsection (e). Duties of Federal Agencies. In addition to creating
a Council on Energy Policy, and assigning it various functions, sec-
tion 109 imposes certain duties on all Federal agencies. The policies
and goals set forth in section 109 are to be supplementary to the exist-
in,, mandates rind authrrizatiorrs of Federal agencies. They are not con-
sidered to repeal existing authority of such agencies. But, where con-
flicts occur, the Council is to mae recommendations for resolving
them pursuant to paragraph 2 of subsection (e). No specific author-
ization of appropriations is provided for these activities. The com-
mittee believes the agencies can perform these functions as part of
the general operation and administration of their programs. Section
109 seeks to insure that all agencies carefully consider the energy
effect of their activities as follows :
First, all agencies are to utilize a systematic, interdisciplinary
approach when their activities affect energy availability. Such plan-
ning and decisions should draw upon a broad range of both physical
and social sciences and consider all relevant points of view. They will
then be in a better position to recognize when their activities have
energy effects, thereby resulting in better planning and projects.
Second, all agencies are to submit to the Council on Energy Policy
for comment all recommendations and reports to Congress when such
information has a hearing on energy matters. This provision is de-
signed to keep the Council fully informed of all agency recommenda-
tions, reports and requests for legislation that affect energy policy.
The Council has the opportunity to submit its views to Congress along
with those of the Agency's. When there is a difference between the
Agency's and the Council's views, then this difference. would be
resolved by Congress as it considers the matter. Thus, this provision
is designed to surface issues and generate discussion in areas that are
now too often ignored or by-passed to the detriment of the public.
Third, Federrl agencies are to gather energy data and information
if required by guidelines promulgated by the Council. Such informa-
tion will be gathered primarily by the Federal Energy Administra-
tion, Department of the Interior, the Federal Power Commission, the
Energy Research and Development Administration, the Department
of Commerce, and other agencies that, have operational or re;rulatorv
responsibility in the energy area. llowe-ter, in gathering data on en-
er-.*y transmission and utilization the Council's guideliues may require
other agencies. such as the Council of Economic Advisers. the Depart-
ment of the.'Ircasurv, the Department of Justice, and the Department
of State, to assist the Council in providing the information necessary
fur the preparation of energy plans and energy reports. In addition all
Federal agencies are to develop analytical techniques for managing
and conserving energy resources which that agency uses or regulates.
It is intended that in developing such techniques, agencies will seek to
maximize the social benefits while minimizing social costs of their en-
ergy activities.
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Fourth, all Federal agencies are to recognize the worldwide and long-
range character of energy concerns and support activities designed to,
foster international cooperation in anticipating and resolving energy
related problems. Such activities would be coordinated by the State
Department to assure that they are consistent with the foreign policy
of the United States.
Subsection (d). Establishment of Council. The committee recom-
ments the establishment of a three-member Council on Energy Policy
in the Executive Office of the President. The members shall be nomi-
nated by the President subject to the advice and consent of the Senate.
They shall serve at the President's pleasure. The President shall at the
time of the nomination designate one of the members to serve as.
Chairman.
Each Council member should be qualified to interpret energy infor-
mation and appraise programs and activities of the Federal Govern-
ment in light of the energy needs of the Nation. In addition, as a result
of his training and experience, each member is to be conscious of and
responsive to not only the economic needs of the Nation but a broad
spectrum of environmental, social, cultural, scientific and esthetic in-
terests of the Nation. Energy policy pervades almost all aspects of
American life, but in the past its social implications have been inade-
quately considered. Consequently the committee intends that mem-
bers of the Council should be composed of competent individuals who
have distinguished themselves for their ability to grasp broad national
issues and a commitment to improve the quality of life for all Ameri-
cans. When such enlightened members serve on the Council, it is more
likely that the Energy Plan and recommendations for wise energy
management will make a great contribution to the Nation.
Subsection (e). Duties of Council. The Council is to serve as the
principal adviser to the President and the Congress on energy policy
and the Council is to exercise leadership in the formulation of govern-
ment policy concerning domestic and international issues relating to
energy. It is to coordinate energy activities of Federal agencies and
make recommendations to the President and the Congress for resolv-
ing conflicting energy policies.
The Council is to prepare annually an Energy Plan designed to
coordinate Federal activities to improve the efficiency of energy pro-
duction and utilization, reduce adverse environmental impacts of en-
ergy production and utilization, conserve energy resources and develop
new technologies for producing clean energy.
The committee intends the Energy Plan to represent energy flows
from production to utilization in the Nation. The plan would pinpoint
the source of energy, where energy is converted from one form to
another, the area of energy losses and waste and finally the purposes
for which the energy is used. The Energy Plan would be the guide for
improving the social utility of the energy available, and show the inter-
relation between the various parts of the overall energy picture.
The Energy Plan, which would be updated annually, would provide
leadership and guidance to government agencies and others concerned
with energy. The computer models and background information used
to develop the Energy Plan should also be useful in determining the
effects and alternatives available for meeting changes in energy supply
84-980--74 4
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or demand. The Council would monitor and seek compliance with the
Energy Plan.
The energy report, required by subsection (g) of section 109, would
contain material eNplaining the Energy Plan and projecting changes
that are likely to occur. The remaining duties of the Council are de-
signed to insure that it has appropriate information and broad public
input in formulating the Energy Plan and the energy report.
The. Council is to promptly review the legislative recommendations
and reports of Federal agencies that have a bearing on energy matters.
The Counc:.l would analyze the impact of such recommendations or
reports on the Energy Plan, and if the Council disapproves such an
agency report or recommendation, it is to prepare a statement in writ-
ing of its position and supporting reasons and submit it to Congress
and the involved agency.
The Council has an affirmative duty to keep Congress fully and cur-
rently info?med of all its activities. Neither the Council nor its em-
plovees ma: refuse to testify or submit information to Congress.
The Council is to conduct annual public hearings to assist it in
developing the Energy Plan, and it may conduct public hearings on
any other pending energy matters in which there is substantial public
rote rest.
The, Council shall also issue guidelines for the collection and initial
analysis of energy data now gathered by other Federal agencies. These
guideline:' rare designed to make such deta compatible.. useful and com-
prehensive. Where the data is not available or credible due to a lack
of agency authority, the Council shall recommend to the Congress the
enactment of appropriate legislation. If, in the judgment of the
Council, such energy information is needed for the preparation of the
Diergy Plan. or the energy report, the Council, to carry out the pur-
poses of this act, may obtain such data directly.
In sum, it is not the committee's intent that the Council be involved
in the daily decisionmaking processes of the Federal Government or
that it be involved in continuous resolution of particular conflicts be-
tween agencies and departments. However, the committee strongly
feels that the President and the Congress need impartial and objective
recommendations which can provide unbiased information and an ac-
cur?ate overview of the Nation's energy trends and problems and how
they affect the futare social, economic and cultural well-being of the
American people. In addition the Council would coordinate the major
energy activities of the Federal Government to assure that the energy
needs of the Nation are satisfied in an optimum way.
'~ubsecticn (f) Administrative provisions. In conducting its func-
tions pursuant to section 109, the Council is to consult with a broad
spectrum o -L~ interests to obtain the maximum breadth of input into its
activities.
The committee believes that the Council should employ a staff with
experience, competence and judgment to analyze and interpret trends
and developing problems in the energy area. The staff should rep-
resent. many disciplines and professions to obtain the balanced and
knowledge able overview of the Nation's energy situation needed to
shape the country's future energy policies. So that this staff can most
usefully direct its talents, the committee intends that it should utilize
to the fullest extent possible the services, facilities and information of
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public and private organizations to avoid duplication of effort and
expense. If the job is already being done adequately elsewhere, then
the Council should not repeat it.
The members of the Council shall serve full time. Compensation for
the Chairman of the Council is set at level II (currently $42,500)
of the Executive Schedule pay rates and the salaries of the other two
'members are set at level IV ($38,000). These provisions parallel the
compensation provisions established by law for the Chairman and
members of the Council of Economic Advisers and the Council on
Environmental Quality.
Finally, paragraph 3 provides that the Council may employ a pro-
fessional and support staff and may acquire the services of experts
and consultants. If necessary such services of experts or consultants
may be paid for at a. rate in excess of the general schedule to afford
the Council maximum flexibility in obtaining the best assistance. The
Council on Environmental Quality has similar authority. The com-
mittee intends that the Council should have available a professional
staff and consulting capability comparable in size and qualification
to the staff which currently serves the Council of Economic Advisers
or the Council on Environmental Quality.
Subsection (g). Interagency Energy Resources Advisory Commit-
tee. Until recently, little attention has been given to Federal organiza-
tional arrangements for energy. The current energy crisis has high-
lighted the deficiencies of existing organization in several respects and
action has been taken by the Congress to reorganize Federal agencies
in a number of fields of energy. The committee recognizes, however,
that the ultimate energy reorganization will not be accomplished with
the enactment of this measure. The Federal Government has, and will
have, a number of independent agencies which are importantly in-
volved with energy matters.
Earlier this year, the Federal Energy Administration was estab-
lished. That agency has been given authority to administer Federal
responsibilities to insure the viability of existing energy systems and
to respond to emergency situations. This act will consolidate Federal
energy R. & D. functions under an independent ERDA. The Depart-
ment of the Interior will continue to have important. responsibilities
for managing the extensive energy resources of the public lands and
the Outer Continental Shelf. The current crisis has dramatically dem-
onstrated the sir nificance of energy to international relations and to the
financial integrity of the United States, which are the particular con-
cerns of the State and Treasury Departments and the Office of Man-
agement and Budget.
The managers of these, and perhaps other, Federal agencies must
communicate with each other and with the Council on Energy Policy
established by this measure to insure that the activities of the Fed-
eral Government impacting upon the Nation's energy supplies are
consistent.
The Advisory Committee established by this subsection is intended
to insure such communication until such time as further consolidation
of Federal energy operating functions may make formal arrangements
unnecessary.
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The subsection provides the latitude for the President to designate
additional members of the Advisory Committee as circumstances and
experience with energy organization and energy policy, in his judg-
ment, show them to be desirable. The chairman of the Advisory Com-
mittee, similarly, is ro be chosen to reflect the circumstances of
coordination which may develop as the reorganizations of Federal
energy agencies are carried out.
This committee expects the members of the Advisory Committee to
establish procedures for meetings and for communication among the
agencies involved, including the appointment of suitable representa-
tives of each rrember who can meet on a more regular basis than the
principal members.
Paragraph (3), however, provides that the chairman of the Ad-
visory Nmrnittee, whatever his other responsibilities, must be avail-
able to testify before tie Congress on activities of the Advisory Com-
mittee. There will be numerous occasions when important energy
decisions will involve more than one major Federal agency. In su-h
instances, the Congress will expect, the committee, represented by its
chairman, to respond to inquiries regarding the interagency aspects of
the decision.
,Sabseetion (k) Tnergy report. This subsection provides that the
Council shall t?ansmit to the Congress and the President an annual
energy report. The first such report shall be transmitted on or before
.January 1. 197-,. Subsequent reports shall be transmitted on or before
January I in srceeeding years. In general the report is to accompany
the Energy Plan and provide backup information as well as policy
re ,ornmendations. The Cormeil may wish to submit the energy report
,mif the Energy Plan in a single document. The energy report will pro-
vide the commerrtarv and background for the Energy Plan.
This report is to include, but not be limited to, an estimate of the
energy needs of the United States for the ensuing 10 year period
assuming the implementation of the Energy Plan. It should discuss
the sources of supply with which the United States will be expected
to meet such needs in an economical manner consistent with national
policies protecting the environment, conserving resources and imple-
menting foreign policy objectives. The report would include an evalua-
tion of trends' in the price, quality, management and utilization of
energy resources and their effect on the. Nation's social, environmental,
economic and other requirements, The report would examine and
evaluate the Federal Government's energy research and development
efforts and rnake recommendations for improving the effectiveness of
sut'h efforts and for fostering more rapid development of new tech-
nologies that are cost beneficial. Recommendations for improving
energy data and information available to the Federal agencies by im-
proving monitoring systems, standardizing data, and securing addi-
tional needed information is to be covered in the report. Finally the
report would evaluate the practices of both governmental and non-
governmental entities in dealing with ener y
In summary, the anirial energy report should provide a considered
statement of the natioaial energy objectives, trends, and problems.
The report should provide the best judgment of the best people
available on the Natiou's energy problems and the progress made.
toward conserving resources and wise energy management.
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It is anticipated that the annual report and the recommendations
made by the Council would be a vehicle for legislative initiatives,
oversight hearings and other activities by the appropriate committees
of Congress.
Subsection (i) Public access to information. Subsection (i) of sec-
tion 109, establishes as a general principle that "copies of any com-
munications, documents, or reports, or other information received or
sent by any member of the Council shall be made available to the pub-
lic upon identifiable request, and at reasonable cost . . ."
Whereas paragraph 1 of subsection (i) establishes public access to
information as a general principle, there is no legal requirement to
make information avaliable if it is not required to be made available
under the ]Freedom of Information Act (5 U.S.C. 5202(b) ). Para-
graph 1 must be read in conjunction with the last sentence of para-
graph 2 which states "nothing contained in this section shall be deemed
to require the release of any information described by subsection (b)
.of section 552, title 5, United States Code, or which is otherwise pro-
tected by law from disclosure to the public." Although nothing in
this section requires the release of any information, subsection (i)
authorizes, the Council to make public any communications, docu-
ments, reports or other information which are not trade secrets.
Trade secrets may not be disclosed by the Council or its employees
except under specified situations. The purpose for this qualification
is to protect the business community from competitive harm. To give
adequate protection to holders of trade secrets, public disclosure of
trade secrets could not be made without notice to the company and
an opportunity for comment in writing or for personal discussion in
closed session during a period of 15 days following the notice. Of
course, the 15-day period could be waived if the resultant delay would
be detrimental to the public health and safety,
Subsection (j). Geveral Accounting O fjice provisions. It has been
evident that there is insufficient reliable information about many as-
pects of the energy system to support policy decisions. The need for
better information is particularly acute in the Congress.
Congressional policy decisions are usually very complex involving
many intangible and abstract factors. The information upon which
such decisions are based requires not only extensive data but also
many judgmental assumptions. The data must be complete and ac-
curate and the assumptions must be objective and unbiased if the deci-
sions are to be sound.
The General Accounting Office, as an arm of the Congress, has the
inherent capability to collect and analyze. energy information to sup-
port policy decisions. Subsection (j) would strengthen the Comptrol-
ler General's role in the energy area and empower him to acquire data
essential for energy decisions.
Subsection (7c) Authorization. This subsection authorizes appropri-
ations in the amount of $1 million for the fiscal year ending June 30,
1974, $2 million for the fiscal year ending June 30, 1975, and $4 million
for each fiscal year thereafter.
The committee intends the level of funding for the Council on
Energy Policy to be comparable to the resources available to the
Council on Environmental Quality and the Council of Economic
Advisers.
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COST ESTIMATE FOR SECTION 109
Pursuant tc section 252 of the Legislative Reorganization Act of
1970, the committee estimates that the cost of this section for which
appropriation., are authorized will be as follows :
Fiscal
year 197,i------------------------------------------------
$1,000,000
Fiscal
year 1971 ------- -----------------------------------------
2,000,000
Fiscal
year 1977------------------------------------------------
4,000,000
Subsection (c) of section 3 would also require certain activities by
other Federal agencies as part of the general operation and admin-
istration of their programs. The additional cost, if any, of such activ-
ities are contingent so as to render a cost estimate impracticable.
The committee knows of no cost estimates by any Federal agency
which are at variance with its estimate.
b"F>ction 110. & ecomimandations for Reorganization
Despite the accomplishments in energy reorganization, which have
already been made both by statute anduby executive reorganization,
much more remains to be done. The more important parts of Federal
energy respor.sibilitic:s have been dealt with, but organization must be
evolutionary and dygamic. The complexity of energy problems and
the rapidly developing energy situation have dictated an incremental
approach to energy reorganization.
The Federal Energy Administration has been established as an
agency with a, limited term. This act will establish two new operating
organizations and will impact heavily upon the Department of the In-
terior which, nevertheless, will remain an important; energy agency.
The relationship between energy and other resource management
Considerations, such as water and land use, mineral resources, and
earth science,;, has not been specifically considered thus far in reorga-
nization measures. The coordination among energy agencies and be-
tween energy agencies and those dealing with other areas of national
policy has been only partially resolved. As experience is gained with
the reorganization thus far, new problems will probably be recognized.
Section 110 requires that not later than January 31, 1975, for the
timely consideration of the 94th Congress, the President shall recom-
mend to the Congress such further reorganizations in the energy and
natural resources fieds as he deems advisable. These recommendations
are, required to give consideration to coordination among energy
agencies and to the relationship between energy and other natural
resource matters.
Subsection (b) of this section revokes the requirement for a portion
of the report which would be required by section 15 (a) of the Federal
Energy Administration Act. Clause (4) of the latter provision., as a
part of a more extensive report, would have called for similar recom-
mendations but at a later time.
Section 111. Coordlenation with Environmental Efforts
The committee fe,ds strongly that the Energy Research and Devel-
opment Adriinistration should have a strong capability to' analyze
environmental aspects of energy projects. The committee felt, however,
that this capability should be built from within the Agency with its
own manpower and funds. For this reason, the committee accepted the
amendment of Senators Muskie and Javits to delete the provision
transferring the Environmental Protection Agency's energy research
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programs to the Energy Research and Development Administration.
These programs are an integral part of the Agency's regulatory activi-
ties and must remain so. The amendment substituted a requirement
that the agencies coordinate their work in this area. It is not the intent
of the committee to limit the Energy Research and Development Ad-
ministration's authority to carry out research and development regard-
ing developmental work on stationary powerplants or new automotive
engines. The following exchange of correspondence clarifies the intent
of the amendment :
U.S. SENATE,
COMMITTEE ON GOVERNMENT OPERATIONS,
Washington, D.C., May 7,1974.
To : All members of the Committee on Government Operations.
In the near future the Government Operations Committee will mark-
up legislation to create a new Energy Research and Development Ad-
ministration (S. 2744). At that time we will propose an amendment to
the provision which would transfer certain Environmental Protection
Agency research and demonstration activities to the new agency.
We do not believe it is sound public policy to separate pollution
control technology from pollution and control regulations. Enforce-
ment policies should be based on good research and adequate demon-
strated techniques so that the agency can make sound decisions as to
actual pollution control requirements. To transfer an important part
of the agency's program could harm the public interest and lead to less
well based enforcement decisions.
We do not question the importance of the proposed agency having
a strong environmental component but it should not replace or dupli-
cate EPA's activities. Instead of removin this function from EPA,
full coordination between EPA and ERA should be required to
assure that EPA's research capability is utilized.
It is not enough for EPA to maintain an ability to "assess" pollution
control developments; the Agency must be able to stimulate such
developments and to participate actively in that process in order to
understand the problem with particular technologies.
Further, a transfer of this sort could delay the development of
essential pollution control technology for one to two years. Much of
the clean-up technology for energy sources is similar to that required
for steel, smelters, chemical plants and other industrial sources. Sepa-
ration would simply lead to expensive duplication. EPA needs a sub-
stantial research and development program because of the require-
ments of the Clean Air Act, Federal Water Pollution Control Act,
and other environmental laws.
The course we will propose should be an acceptable alternative. We
will propose that ERDA have the technical capacity to coordinate
with EPA, the in-house capabilities to develop new energy technolo-
gies which are environmentally acceptable, and a mandate to assimilate
the pollution control technologies developed for existing sources.
We hope you will join with us in this effort to improve the capabili-
ties of the new Energy Research and Development Administration
while maintaining the technical capabilities of the Environmental
Protection Agency.
Sincerely,
JACOB K. JAVITS, U.S.S.
EDMUND S. MUSKIE, U.S.S.
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U.S. SENATE,
COMMITTEE ON INTERIOR AND INSULAR AFFAIRS,
Hon. EDMUND S. MUSKIE,
U.S. Senate,
Washington, D.C.
Washington, D.C., May 17, 1974.
DEAR ED : Thank you for the letter from you and Senator Javits
advising me of your proposal to amend the pending ERDA measure
(S. 2744) regarding the transfer of energy research functions pres-
ently administered by the Environmental Protection Agency.
I agree with your objectives to insure that EPA will continue to
have the confirmatory research capability to back up its regulatory
responsibil ties regarding the Clean. Air Act. I also appreciate the
need for EPA to have "in-house" technical competence in the pollu-
tion control technologies which are associated with automotive and
stationary powerplant emissions.
One aspect of this matter does disturb me, however.
As you know, the two principal R& D programs involved-alterna-
tives to existing automotive engine technologies and emission control
in stationary powerplant combustion cycles-arc perhaps the two
most critical areas of energy concern for the immediate future. Auto-
motive uses now amount to about 90 percent of our consumption of
scarce petroleum resources, and the use of the vast American coal
resource for electric power production represents our most promising
hope for near-term energy independence.
Obviously, R & 1) associated with automotive engines and stationary
powerplants must constitute a major part of ERDA's effort. Further-
more, the environmental factors are among the most difficult technical
problems of energy production and should be major concerns of
ERDA in these and every other technology it approaches.
I feel strongly, therefore, that whatever action the Committee may
take on the EPA programs must clearly indicate :
(1) that the EPA program alone is not considered to bean adequate
Federal research effort in these two major energy technologies; and
(2) that the proposed ERDA would be expected to pursue what-
ever Ti & D into automotive engines and stationary combustion cycles
appears to be needed, including the environmental aspects of each.
If these areas of R & D were removed from ERDA's authority, I
believe there would be serious qurstion whether the agency could
fulfill its responsibility to develop a comprehensive Federal R & D
program.
I hope you can accommodate my concerns in the specific recom-
mendations you will make to the Committee.
Sincerely,
HENRY M. JACKSON,
Chairman.
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Hon. HENRY M. JACKSON,
U.S. SENATE,
Washington, D.C.
U.S. SENATE,
COMMITTEE ON PuI is VY ORKS,
Washington, D.C., May 25,1974.
DEAR Scoor : Your letter of May 17 discusses important points
regarding the concerns Senator Javits and I raised questioning the
transfer of the Environmental Protection Agency's pollution control
research and development functions to the proposed Energy Research
and Development Administration (S. 2744). I am sure that our
amendment is consistent with the philosophy behind the proposal to
create the Energy Research and Development Administration, and
I believe your concerns can be satisfied.
S. 2744 specifically divides regulatory research from developmental
research, with the latter being transferred from existing agencies to
the Energy Research and Development Administration. The former
remains in the parent agency.
In fact, in the case of atomic energy, a new regulatory research
activity is created through the establishment of the Office of Nuclear
Safety Research (Sec. 203) within the new Nuclear Safety and Licens-
ing Commission, which is to be a regulatory body. That research
function is not transferred to Energy Research and Development Ad-
ministration, and it should not be.
But in the case of the Environmental Protection Agency, virtually
all energy related pollution control research and development is trans-
ferred under S. 2744. This research and development is primarily re-
lated to regulatory programs. In fact, the Environmental Protection
Agency has never had significant funding for purely developmental
research.
The Office of Management and Budget has announced that $105
million of the $112 million pollution control budget in the Environ-
mental Protection Agency for FY '75 is to be transferred to the
Energy Research and Development Administration. This is not de-
velopmental research for energy systems. It is intended for near-term
research aimed at emission control related to the regulatory responsi-
bilities of the agency.
Your letter mentions alternatives to existing automobile engines. If
the Environmental Protection Agency had a significant effort to de-
velop a new propulsion system designed to achieve high full economy,
transfer might be appropriate. But it does not. The Advanced Auto-
motive Power Systems effort is to develop a low emission vehicle.
Environmental Protection Agency personnel in this area, have concen-
trated substantial effort on low emission characteristics of retrofit
technology and modification of present engine systems. The little de-
velopment work done on systems such as the electric car have prin--
cipally been contract work, and have been small efforts.
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Also many of the people in the Environmental Protection Agency
involved in the Advanced Automotive Power Systems program pro-
vide technica. back-up to the regulate ry program. Transfer of these
personnel woald take an important part of the technical base of the
automobile emission's regulatory program from the agency.
In addition, it should be pointed out that the approach Senator
Javits and I propose is consistent with S. 2176, the National Fuels
and Energy Conservation Act of 1973 which you sponsored, and which
passed the Senate last December. Section 13 of S. 2176 created a new
program for the development of an energy efficient and environmen-
tally sound automobile, but it maintained and recognized the Environ-
mental Protection Agency's program or low emission research.
That precedent should be the mode' for the Energy Research and
Development Administration as well. The development of better auto-
mobile fuel economy should be a high priority for the Energy Research
and Development Administration and is clearly authorized tinder S.
2744, but it need not be at the expense of the Environmental Protec-
tion Agency's regulatory research program.
Your Ic tter also raises concern over stationary power plant combus-
tion cycles. I certainly agree that the Environmental Protection
Agency's program should not constitute the entire federal effort in
this area. The Environmental Protection Agency has clear and precise
regulatory -esponsibilities to control the pollutants associated with
such energy system-primarily existing sources and new sources which
rely on existing energy technologies. Their research effort is directly
related to those responsibilities, and should remain in the agency.
This should in no way interfere With the Energy Research and De-
velopment Administration's efforts to establish a much-needed devel-
opmental effort in combustion cycles. The Energy Research and
Development Administration's developmental efforts should include
detailed atter.tion to limiting environmental by-products of new tech-
nologies. But the capability should be built into the Energy Research
and Development Agency, not acquired at the expense of our efforts
to clean up existing sources of pollution. Our amendment emphasizes
the need for such cooperation. But the principal responsibility for
research supporting enviromne::ital regulations must remain in the
Environmental. Protection Agency.
In summary, I believe it is possible, to create a viable and strong
Energy Research and Development Administration. I do not believe
it is necessary or desirable to damage the Environmental Protection
Agency's regulatory research program in the process. I believe our
recommendation will be consistent with those objectives and with your
concerns.
S ineer31 y,
ED3TTJN1, S. MUSKIE, L.S.S.,
Chairman, Subcommittee on
Environmental Pollution.
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TITLE II-NUCLEAR SAFETY AND LICENSING COMMISSION
Section 2.01. Establishment and Transfers
Section 201 establishes the Nuclear Safety and Licensing Commis-
sion as a new independent regulatory commission. It replaces the
Atomic Energy Commission which is abolished under section 104(a).
Except for the new name of the Commission and its designation as a
solely regulatory agency, subsection (a) is identical to section 21 of
the Atomic Energy Act. Sections 21 and 22 of the Atomic Energy
Act (42 U.S.C. 2031 and 2032) are technically repealed by section
104 (a) of this act. Section 22 of the Atomic Energy Act is incorporated
into subsections 201(b) through (f) of this act along with new pro-
visions to provide bipartisanship and technical qualifications on the
Commission.
Subsection (a) provides the same membership and the same rules
for transacting routine business as presently in the AEC. Each of the
five members shall be United States citizens, shall have equal responsi-
bility and authority and full access to information and shall have one
vote.. The Chairman shall be designated from among the members by,
and serve at the pleasure of, the President; shall preside at meetings
of, be the official spokesman for, and see to the faithful execution of
the policies and decisions of, the Commission. A quorum of three is
required to transact business, and action shall be taken by majority
vote of members present. There is also provision for an official seal
of the Commission.
The committee believes that the organization of the Commission-
under a Chairman who is specifically authorized to see to, and report
periodically on, the faithful execution of its policies and decisions-
allows for effective coordination and supervision of the three major
line functions of the NSLC. As reported by the committee, the bill
establishes three basic, coequal divisions-safety, safeguards and re-
search-each under a Director having direct access to the Commission.
It is contemplated that the Office of Administration, now attached to
the Director of Regulation of the AEC, will be attached to the Chair-
man of the Commission to assist in coordinating the duties of the three
Directors, consistent with the policies and directives of the Commis-
sion. This arrangement will upgrade the role of the Commission, elim-
inate the high-level management position of Director of Regulation,
and promote a freer exchange of views and ordering of regulatory
priorities within the NSLC.. (A detailed explanation of the new orga-
nization and comparative organization charts are contained in section
VI of this report.)
Subsection (b) provides for appointment, confirmation, technical
qualifications and political balance among the Commission members.
Paragraph (1) provides for appointment by the President with the
advice and consent of the Senate.
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Paragraph (ti) requires the President, in selecting the members, to
have a due regard to fair representation of expertise in nuclear safety
technology, health science and environmental science. The committee
intends that, to the greatest extent practicable, each of these three
technical specialties should be represented by three members on the
Commission, with the exception of present AEC members who are
appointed by the President to serve on the NSLC.
The mix of three technical and two nontechnical members on the
NSLC is intended to acknowledge a dual need: (1) to race up to the
complex technology and inherent hazards of civilian nuclear power
and (2) to address the complex economic and legal questions in. the
regulation of this new major industry. Neither aspect of nuclear power
should be represented on the Commission to the exclusion of the other.
This provision is designed to ensure the necessary balance.
These qualirications are intended. to be broad enough to allow a wide
choice from anions highly qualified individuals in related fields cov-
ered by each category. For example, to represent the area of nuclear
safety technology, a Commissioner need not be a specialist in reactor
safety. Ile should have advanced technical training, such as a doctorate
in physics or engineering, but his speciality can be in nuclear materials
safeguards, nuclear waste disposal, transportation, or in other major
areas related. to the generic concept of nuclear safety. A Commissioner,
to be representative of health science, can be, for example, a physician,
biophysicist, radiologist, researcher or professor whose main interest
and experienc? is in the field of medicine or public health. Environ-
mental science can be. for example, represented on the Commission by
a technically qualified individual whose specialty relates to ecology,
pollution control or other aspects of studying and preserving the
environment.
The examp e of the Banking Act of 1935. reouiring similar fair
representation of interests on the Federal Reserve Board, was followed
in this subsection.
Paragraph (3) requires that not more than three members of the
Commission shall be members of the same political party. This is in-
tended to correct the anomolous situation in which the AEC is the
only Federal -regulatory commission on which neither bipartisanship
nor fair representation of interests is required. At present, all five
AEC Commissioners are Republ cans.
Subsection {c) provides that the terms of the five members shall be
staggered from 1 to i years by the President when he makes initial
appointments to the Commission.
Subsection (d) requires that such initial appointments shall be sub-
mitted to the Senate within 60 days of the signing of the act. It also
specifically exempts present, members of the AEC from the political
balance and technical requirements of subsections 201(b) (2) and (3).
Present AEC Commissioners may be appointed to the NST~C and
confirmed by the Senate for a period not to exceed the. unexpired
portion of their present terra. Any subsequent appointment of such
uidividuais would be subject to Senate confirmation on the basis of
technical and political balance requirements cited above,
under the original bill, members of the AEC would have automat-
ically become members of the NSLC without the need for Senate con-
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firniation. The committee firmly believes that fresh consideration by
both the President and the Congress as to who should serve on the
new Commission is warranted by the fact that the NSLC will have an
exclusively regulatory function, as compared with the combined de:
velopmental and regulatory functions of the AEC.
To assure the constitutionality of naming new Commissioners, the
bill as reported by the committee, takes the technical form of
abolishvng the .AEC and transferring its regulatory functions to a
newly established NSLC. Under the original bill, the AEC was
renamed and the regulatory functions were retained by the renamed
Commission. The net effect is the same, but a potential constitutional
problem is averted. The committee was advised that without the aboli-
tion and transfer, Congress could be construed to be exercising a
removal power not provided by the Constitution. The problem is
avoided by establishing a new commission and providing for Senate
confirmation of its members.
Subsection (e) provides for compensation of the NSLC Chairman
at executive level II ($42,500 a year) and of the four other members
at level III ($40,000 a year)-the same salary schedules as presently
provided for the Chairman and members of the AEC. It should be
noted that these are higher levels than provided the chairmen and
members of other regulatory bodies, which are usually at level III
and IV respectively. The committee supports these higher pay grades
for NSLC members because of the awesome responsibilities involved
in regulating what, is potentially the world's most hazardous tech-
nology. The committee, therefore, wishes to stress that special care
should be taken to ensure that only the most uniquely able and quali-
fied individuals are appointed to the Commission by the President and
confirmed by the Senate.
Subsection (f) provides for removal by the President for ineffi-
ciency, neglect or malfeasance and bars members from engaging in
business or other outside interests.
Subsection (g) transfers to the new Commission all the licensing and
related regulatory functions of the AEC, its Chairman, members, gen-
eral Counsel and other officers and components-all of which are ex-
cepted from the transfer to the ERDA Administrator by section 104
(c) of the act. The functions relate specifically to all facilities, ma-
terials and activities in the, civilian nuclear industry which are now
under the jurisdiction of the regulatory side of the AEC.
Subsection (2) specifies the transfer of certain functions and per-
sonnel to NSLC from among, and in addition to, those transfers gen-
erally provided in subsection (g).
Paragraph (1) specifically transfers the Advisory Committee on
Reactor Safeguards, the Atomic Safety and Licensing Board Panel
and the Atomic Safety and Licensing Appeal Panel. Each of these is
essential to the NSLC's effective operation, and the committee wanted
to ensure their complete transfer to the new Commission.
Even in its new role as a Commission with only regulatory responsi-
bility, it is unreasonable to expect that the five Commissioners would
be able to do what the appeal panel now does in terms of reading and
analyzing voluminous case records and technical reports, and at the
same time perform all of the Commission's other regulatory roles.
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58
The continued existence of the appeal panel will ensere that the Com-
mission will be able to oversee the licensing and rulemaking workload
while carry ir..g out its principal administrative and coordinating func-
tions essential to the, Nation's health, safety, security, and energy
supply.
Paragraph. (2) transfers to the Commission all AEC research per-
sonnel whose primary responsibilty is confirming the safety of re-
actors licensed uwlex the Atomic Energy Act. There is an exception,
however, which permits the Office of Management and Budget to
determine h ow many such individuals should not be transferred,beca-use
they are, needed to assist in ERDA's reactor development program.
It should be stre:e to defects in all licensed nu-
clear facilities.
Subsection (a) requires any Director, officer and employee of any
licensed nuclear facility, or of any firm constructing or supplying coni-
ponents to such a facility, to report immediately to the Commission
information reasonably indicating (1) failure to comply with the
Atomic Energy Act or regulations of the NSLC or (2) any defect
which could cause a substantial safety hazard, unless he actually knows
the Commission already has been informed. The committee intends,
and the provision so states, that only "basic" components are covered
by this requirement to report defects, as distinguished. from incidental
components unrelated to the safety of a nuclear facility.
Subsection (b) provides that persons knowingly violatin this
provision are subject to a civil penalty amounting to a fine of 5,000
for each violation, not to exceed $25,000, as provided in section 234
of the Atomic Energy Act.
Subsection (c) provides a criminal penalty for knowing and willful
violation not to exceed a fine of $50,000 or 1-year imprisonment, or
both.
Subsection (d) requires that the details of this provision be posted
prominently in licensed nuclear facilities.
Subsection (e) authorizes the Commission to conduct reasonable in-
spections and other enforcement activities to insure compliance with
this provision.
S; (4;o>, ?206 fnforrnation and Studies
During the course of hearings on S. 2744, testimony was presented
by several witnesses concerning the disadvantageous position of public
intervenors in AEC licensing cases. There was some discussion of the
disparity in financial capability--the utilities may budget from $500,-
000 to $1 million to present their case in a major licensing proceeding,
while, intervenors consider themselves fortunate to have $150,000 to
fight it-but the major thrust of the testimony concerned access to ex-
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perts and technical data. This testimony demonstrated the very real
difficulty that AEC intervenors have in presenting an effective case
when technical experts and data are unavailable or available only in a
limited manner through the AEC. Asa practical matter, the vast ma-
jority of experts in nuclear engineering are employed either by the
AEC or the electric power industry; it is a rare nuclear engineer who
works outside this field who might be available to serve as an expert or
do technical studies on behalf of intevenors in AEC licensing and
rulemaking proceedings.
To partially correct this imbalance between public and other hear-
ing participants in AEC licensing cases, the Committee adopted sec-
tion 206. The section makes the Commission, ERDA, other govern-
ment agencies, or outside contractors, available as potential sources of
data, studies, or technical assistance.
Under the section, any participant in a licensing or rulemaking hear-
Pig may may make good faith requests for relevant studies or reports from
the Commission. The Commission is only required in the first instance
to accept requests which are "made in good faith" and which are "rele-
vant." This is designed to assure that an intervenor will not have a
vehicle for delaying a hearing by presenting frivolous requests for re-
ports and then seeking repeated appeals of the Commission's denials
of such requests.
If the requested studies or reports are in existence, they would be
made available to the requesting party in a timely manner. If they are
not in existence and must be prepared in response to the request, this
section sets out the criteria and procedures which govern whether they
should be prepared and made available.
Subsection (a) provides that the Atomic Safety and Licensing
Board will determine "if such studies or reports are reasonably neces-
sary for the requesting party to present its position in the proceeding
or hearing, and are in the public interest". Rights under the remainder
of the section are predicated on this determination. Under subsection
(a), the requesting party must be promptly notified of the Board's
determination, and the determination may be reviewed under normal
procedures by the Commission.
In making the determination as to reasonable necessity in presenting
a case, the Board or Commission might consider such factors as the
significance of the information sought, the availability to the requestor
of the material from other sources','
ources, relevance of the study to issues in
the proceeding, and the degree to which the request is essential to the
requesting party's position.
If a dispute arises as to whether a report offered by the Commission
is responsive to the party's request, that dispute would be resolved
in the first instance by the Atomic Safety and Licensing Board.
Subsection (b) allows the Commission to obtain reimbursement of
its costs of preparation where the party possesses the necessary finan-
cial resources. This provision would not be used to bankrupt citizen
groups, but to obtain reimbursement where a party is clearly able to
pay, such as a utility. .
If a party is capable of contributing to or reimbursing the Com-
mission for the cost of preparation of a study or report, and refuses
to do so, the Commission might then refuse to prepare, or discontinue
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the preparation of, the study or report, unless the Commission found
it in the public interest to prepare the study or report, notwithstand-
ing such refusal to contribute to or recompense the Commission for
the cost of preparation.
The Commission should notify requesting parties of its intention
to seek reimbursement and the estimated cost of the reports or studies
at the. time of the request for the work.
&iihsection (c) provides that when the Commission shall be of the
opinion that a determination under subsection 206(a) involves a con-
trolling question of law as to which there is a substantial ground for
difference of opinion and that an immediate appeal from the deter-
mination may materially advance the ultimate termination of the
litigation, it shall so state in writing in its determination.
The determination with respect to allowing such an appeal would
normally be made by the Atomic Safety and Licensing Appeal Board
upon application to i t. It is this Board which has been delegated the
appellate review functions of the Cona mission. The court of appeals
for the District of Columbia may, thereupon, in its discretion, permit
an appeal to be taken from such determination, upon application
within ten days of the time the requesting party is notified of the de-
termination or the Commission. Application for an appeal would not
operate to stay proceedings of the Commission unless the Commission
or the court of appeals or a judge thereo f' so ordered.
Thus, subsection (c) is intended to provide for appeal in an orderly
but timely fashion of what may subsequently turn out to be a control-
1 ing question, but the subsection also provides an explicit safeguard
in its final proviso against the danger that the appeal will result in
delay of the NSLC proceedings.
Subsection (d) makes clear that the report in question must be
available for inclusion in the record but will only be received in evi-
dence if it is 'elegant, material and reliable. The authors and others
who worked on preparing it would, of course, be available for cross-
examination in the hearing if the report were received in evidence.
The provisions of section 206 in no way alters any of the exemptions
to the provisions of the Freedom of Information Act.
Section 207. Abnormal Occurrence Reports
Section 207 requires the Commission to make quarterly reports to
Congress on fall details of abnormal occurrences at licensed nuclear
facilities and to widely disseminate initial information to the public
within 5 days of learning of each incident. Specifically, the initial
public reports must include the date, place and nature of each abnor-
mal occurrence. In addition the quarterly congressional reports must
state the cause and any action taken to prevent recurrence of each
incident.
A detailed discussion of the nature and importance of abnormal
occurrences in relation to nuclear defects appears on page, 67 of
this report (section 205). In addition the committee wishes to make
clear its intention that the Commission's abnormal occurrence re-
ports cover all licensed nuclear facilities and activities. Earlier this
month, the AFC issued its first annual report on abnormal occurrences,
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and it covered only those incidents which took place at nuclear power-
plants. The intention of this provision is to require comprehensive
reports to Congress, and initial reports to the public, relating to all
abnormal occurrences in the licensed sector.
For example, materials unaccounted for and faulty alarm and detec-
tion systems in licensed nuclear fuel facilities shonlcl be included in ab-
?normal occurrence reports. Similarly, mechanical breakdowns, leaks
and lost shipments in the course of transporting licensed nuclear mate-
rials should also be the subject of these reports. Also, abnormal oc-
currences at high-level radioactive waste-disposal facilities, at such
time as they come under the licensing provisions of this act, should be
included in these reports.
The committee also notes that, to date, there are no uniform criteria
as to what constitutes abnormal occurrences. The AEC states in its
first such report that the definition is "still undergoing evolutionary
change," varying from plant to plant, and resulting in "a lack of uni-
formity in what is reported to the AEC." The committee expects that
this provision will be broadly interpreted, and intends that reports
made to Congress and the public under this provision shall be based
on uniform criteria so that the data can be evaluated intelligently
and in the national interest.
Section. 208. Other O fcers
Section 208 provides for the appointment of a Director of Nuclear
Reactor Safety and for nine unspecified executive-level officers.
Subsection (a) authorizes the Commission to appoint a Director of
Nuclear Reactor Safety, who reports directly to, and is removable by,
the Commission. This position is intended to succeed the AEC Director
of Regulation who now is compensated at level V on the Executive
Schedule.
The Director of Nuclear Reactor Safety is elevated to level IV by
this provision, placing hiii at the same level as the new positions of
Director of Nuclear Materials Security and the Director of Nuclear
Safety Research.
The committee intends that the Director of Nuclear Reactor Safety
will continue to supervise the existing directorates of regulations, li-
censing and enforcement as they pertain to the safety of nuclear
powerplants and other facilities in the licensed industry. As such, he
will remain the chief officer beneath the Commission responsible for
safety. The other two Directors will be the chief officers on behalf of
the Commission for safeguards and research respectively.
S&.tbsection (b) provides for not more than nine additional officers
in NSLC at level V on the Executive Schedule, who shall be appointed
and removable by the Commission.
The committee readily acknowledges that this represents a higher
rate of Executive Schedule officers in the NSLC than in any other
regulatory agency. The committee also stresses that the nuclear power
industry will offer a regulatory challenge of such unprecedented pro-
portions, in terms of the energy needs and the health and safety of the
people, so as to warrant this major commitment of Executive Schedule
officers.
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The organization of NSLC, as provided in the act and as detailed
in the chart in section VI of the report, could result in the assignment
of these level V officers as follows :
Office of Nuclear Reactor Safety :
Director, Directorate of Licensing
Director, Directorate of Regulations
Director, Directorate of Enforcement
Office of Ni'clear Materials Security:
Director, Directorate of Licensing
Director, Directorate of Regulations
Director, Directorate of Enforcement
Office, of Nuclear Safety Research:
Deputy Director, Safety
Deputy Director, Safeguards
Office of Administration :
Director
The organization chart in section VI of the report shows how these
positions would be placed in the NSLC.
The committee provided for the appointment of nine level V officers
in NSLC because it is of the conviction that the unprecedented magni-
tude, complexity and potential hazards of the nuclear power industry
require individuals of policymaking calibre in the key regulatory
positions. In determining how to proceed with nuclear power in ways
that confine risks and costs to acceptable levels, they will have to rec-
ommend innovative policies to their immediate superiors and to the
Commission itself.
,Section. 301. Transitional Provisions
Section 301 contains, with the exception of subsection (a), customary
transitional provisions.,
Subsection (a) provides that, except, as otherwise provided in the
act, whenever all of the functions of an agency, or other body, or of
any component thereof, have been transferred by tit] e I of this act, the
agency or other body or component shall lapse. This, in effect, dis-
continues organizational structures when they no longer have func-
tions to perform. It applies only when all of the functions of the
agency or component have been transferred by the Administrator. This
subsection also provides that all Executive Schedule officers and statu-
tory positions in an agency or component that lapses under the first
sentence of the section also shall lapse.
Specifically, the effect of this subsection will be to allow the position
and the office of General Manager of the AEC to lapse.. The committee
intends to replace the coordinating function of the General Manager
with the balanced organization in which six coequal Assistant Admin-
istrators report directly to the Administrator and the Deputy Admin-
istrator. The removal of this high-level position should upgrade the
role of ERDA's two highest officers and permit a healthy interplay of
ideas and priorities among the program managers in relation to these
highest positions.
Similarly, the committee established in title II a balanced organiza-
tional structure in NSLC by eliminating the intermediary position of
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Director of Regulation and permitting three coequal program Direc-
tors to report directly to the Commission. The committee's intention is
to upgrade the role of the Commission in its exercise of exclusively
regulatory responsibilities by insuring fullest possible access to all
available information within the organization on the safety and secu-
rity of the nuclear power industry.
Subsection (b) is a savings clause that continues the effective-
ness of all existing orders, determinations, rules, regulations, permits,
contracts, certificates, licenses, and privileges affected by this act, until
such time as they are otherwise modified or replaced by appropriate
authority or otherwise expire. This avoids any inadvertent lapsing
or impairment of essential Executive orders, directives, documents,
and obligations, and will afford the President, the Administrator, the
Commission or other officials sufficient time to deal with these matters
in an orderly fashion.
Subsection (c) is another savings clause that preserves and con-
tinues administrative proceedings in being on the effective date of the
act. These proceedings will, in effect, be continued, modified, or termi-
nated as if the act had never been enacted.
Subsection (d) is a savings clause that permits suits commenced
prior to the date of this act to be continued and conducted as if this
act had not been enacted.
Subsection (e) protects suits, actions or other proceedings from
abatement by reason of enactment of this act. In any litigation pend-
ing when these actions take effect, the court may enter an appropriate
order which will give effect to these savings provisions.
Subsection (f) provides for proper substitution of parties in
connection with the continuation of litigation pending on the date
this act becomes effective.
Subsection (g) makes final orders and actions of any transferred
official or component subject to judicial review as if this act had not
been enacted.
Subsection (h) provides that with respect to functions trans-
ferred by the act, references in laws to other officials shall be deemed
to be a reference to the Administrator, the Commission or other offi-
cials, as appropriate.
Subsection (i) provides that any existing authority of the Presi-
dent is not affected by this act.
Subsection (j) provides that reference in this act of provisions
of law shall be deemed to include, as appropriate, reference thereto
as amended or supplemented before or after the effective date of this
act. This avoids repetitious use of the phrases "as amended" or "as
supplemented."
Subsection (k) makes clear that except as otherwise expressly
provided in this act, authority provided by this act is in addition
to, and not in-substitution for, any existing authority transferred by
this act.
Section 302. Incidental Dispositions
Section 302 authorizes the Director of the Office of Management and
Budget to make such additional incidental dispositions of personnel,
personnel positions, assets, liabilities, contracts property, records, ap-
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propriations, etc., as may be necessary to carry out the intent and pur-
pose of this act.
5~eetion 303. Definitions
Section 30c;, to avoid repetitious references, defines "function,"
"functions," "perform" and "performance" to include such terms as
iuties, obligations, powers, authorities, responsibilities, rights, privi-
leges, and activities, and the exercise thereof.
Section 304. Authorization for Appropriations
Section 304 provides for annual authorization of appropriations for
loth ERDA and NSLC, with provision for minimum funding of
ERDA nonnuclear programs under certain circumstances and with
special guidance on the funding o:f NSLC.
subsection (a) provides that except as otherwise provided by law,
appropriation:, made under this act shall be subject to annual au-
thorization.
Subsection (b) provides that it the absence of a specific nonnuclear
energy R. & D. policy enacted by Con,ress, at least 7 percent of the
nondefense appropriations of ERDA be spent in each of the follow-
ing five civilian-energy categories :
(1) fossil fuel;
(2) nuclear energy;
3) environment and safety;
(4) conservation; and
(5) solar, geothermal and advanced energy systems.
The committee arrived at the 7 percent figure by determining the
proposed budget authority for the smallest of the above R. & D.
categories and establishing that as the floor for any ERDA R. & D.
civilian program run by an Assistant Administrator. Conservation
funding as pro_oosed in the fiscal year 1975 budget is 7.1, percent of the
total civilian energy R. & D. program, and this is the smallest of the
above categories. (See table 1, section V.) The committee stresses that
this level is intended as a floor, not a ceiling; also that spending in
categories (4) and (5) above should be prudently increased.
In arriving at the 7 percent minimum expenditure, funding of ad-
vanced energy systems that are based on fossil fuel or nuclear energy
should be considered as part of categories (1) and (2) rather than
category (5).
This subsection would. become inoperative at such time as a nonnu-
clear R. & D. b!.1]. passes Congress and is signed into law. Such a bill,
S. 1283, "The National Energy Research and Development Policy
Act," has passed the Senate and soon may reach a vote in the House.
The committee's intent is to be responsive to legitimate concerns
that, in the absence of a specific nonnuclear R. & D. policy to guide it,
ERDA will have a built-in, pronuclear bias. The committee agrees
that even with all the organizational safeguards it has built into this
act to prevent such a bias, the fact that more than 90 percent of
ERDA's personnel, funding and facilities will be derived from the
AEC (see section V) pose too great a risk of pro-nuclear bias without
the additional policy safeguard provided in this subsection.
The committee believes that the vast wealth of scientific brainpower
and facilities being transferred to ERDA from the AEC can be, and
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will be, responsive to the new mission of exploring all energy tech-
nologies in the national interest. The national laboratories of the AEC
represent one of the Nation's most valuable resources, and the commit-
tee, by means of this subsection, is seeking to guarantee that they will
be put to the multipurpose use as intended by this Act.
Subsection (c) provides that authorizations for NSLC shall reflect
the need for effective licensing and other regulation of the nuclear
power industry in relation to the growth of the industry.
This subsection reflects the committee's strong belief that the NSLC
can effectively regulate the nuclear power industry only if it is given
the resources needed to keep pace with the enormous projected expan-
sion of the industry.
In fiscal year 1974, the AEC Regulatory Division, from which NSLC
is mostly derived, had an operating budget of $54 million to oversee
43 operating nuclear powerplants worth an estimated $20 billion.
Actually, these 43 plants represent the tip of an iceberg because, .by
July 1, there were 247 plants demanding the AEC's regulatory atten-
tion, including those under construction, on order and publicly an-
nounced. By the year 2000, it is projected that there will be 1,000 oper-
ating powerplants worth $1 trillion, generating 60 percent of the
Nation's electricity and posing health, safety and security problems
of potentially cataclysmic proportions.
Because of the obvious difficulty in projecting years ahead to esti-
mate specific authorizations needed for the complex regulatory func-
tions of NSLC, the committee arrived at the language of this sub-
section to express congressional intent based on the urgency of the
situation.
Section 305. Comptroller General Audit
Section 305 provides for audits by the Comptroller General of both
ERDA and NSLC.
Subsection (a) applies to both nuclear and nonnuclear activities the
present provisions of section 166 of the Atomic Energy Act for audit
and access to records by the Comptroller General with respect to
contracts.
Subsection (b) provides that the Comptroller General shall audit
and review the operations of the Nuclear Safety and Licensing Com-
mission to the extent necessary to provide Congress with a coniprehon-
sive evaluation of the efficiency and effectiveness of its operations under
title II.
The importance of the activities of the NSLC in safeguarding pub-
lie health and safety from the dangers of nuclear energy, merits the
independent, unbiased review available through the GAO The com-
mittee views the work of the GAO as an important element of the
legislative structure to preclude and deal with nuclear thefts, short-
ages, accidents or sabotage relating to all activities licensed under the
Atomic Energy Act.
Paragraph (1) requires the Comptroller General to submit a report
to designate a committee chairman within 54 to 60 months after the
enactment of S. 2744. This time frame was selected to give the Com-
mission an opportunity to acquire sufficient operating experience to
enable the General Accounting Office to make an accurate, valid de-
termination of the Commission's performance.
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The report shall include the following :
Subpei'agr?aph (~1) : A detailed, comprehensive documentation of
the manner in. which the NSLC carries out all of its assigned respon-
s=ibilities. Congress wants to be sure that all practical measures are
being taken to safeguard the public health and safety.
Subparagraph (B) : The effect of the Commission's activities on the
c'0iciency, effectiveness and safety of the activities licensed by it.
Suhparagraph (C) : Recommendations for improving the implemen-
tation of title II. Sufficient factual information is required to give
Congress a sound basis for making an independent judgment of the
success of the legislation and for taking those measures deemed nec-
essary to enhance the performance of the licensing and related regu-
latory functions of the Commission.
Paragraph (0) requires that copies of the GAO report are to go to
the NSLC and to the Committees of Congress that are principally
concerned witli the work of the Commission.
Section 306. Reports
Section 306 requires annual reports by both ERDA and NSLC, and
a 1-year study relating to the possible future transfer of the nuclear
weapons program.
Subsecliorn (a) requires the Administrator to transmit to the Presi-
dent for submission to the Congress an. annual report on his agency's
activities. The report is to include a statement of the short-range and
long-range goals, priorities, and plans of the Administrator, together
with an assessment or the progress made toward attainment of these
objectives anti toward the more effective and efficient management of
the Administration and coordination of its functions.
tiSubseetion (b) requires the Administrator, in collaboration with the
Secretary of Defense, to conduct a thorough review of the desirability
and feasibility of transferring to the Department of Defense or other
Federal agencies the functions of the Administrator respecting Mil-
itary application and. restricted data. This review is to be made, and
a report sent to the President for submission to the Congress, within
one year after the Administrator takes office. The report will set forth
the Administi ator's comprehensive analysis, the principal alternatives,
and the specific recommendations of the Administrator and the Secre-
tary of Defense.
,Sebseetiorc. (c) requires the Commission to transmit to the Presi-
Jeut for submission to the Congress an annual report on the agency's
activities. The report shall be in layman's language and shall include
a statement of the short-range and lonng-range goals, priorities and
plans of the Commission as they relate to the relative benefits, costs
and risks of ccrrunercial nuclear power.
This assessment shall be based. on the following complete account-
ing of NSLC activities and findings :
Paragraph (1) : insuring the safe design of nuclear powerplants and
other licensed facilities:
Paragraph (2) : investigating abnormal occurrences and defects in
nuclear powerplants and other licensed facilities;
Paragraph (3) : safeguarding special nuclear materials at all stages
of the nuclear fuel cycle;
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Paragraph, (4) : investigating suspected, attempted, or actual thefts
of special nuclear materials in the licensed sector and developing con-
tingency plans for dealing with such incidents ;
Paragraph (5) : insuring the safe, permanent disposal of high-level
radioactive wastes through the licensing of nuclear activities and
facilities ;
Paragraph (6): protecting the public against the hazards of low-
level radioactive emissions from licensed nuclear activities and
facilities.
The committee added this subsection to require an annual report
by NSLC in addition to the original provision requiring such a report
by ERDA. The committee believes that despite the fact that the
Atomic Energy Act requires annual reports by each of the new agen-
cies, it is as important to specify for NSLC, as it is for ERDA, the
particular areas to be covered in the report. The legislation specifies
the contents of the NSLC annual report in detail because of the unique
potential hazards to society posed by the projected large-scale genera-
tion of commercial nuclear power.
Section 307. Information to Commaittees
Section 307 provides that the Administrator shall keep the appropri-
ate congressional committees fully and currently informed with re-
spect: to all of the Administration's activities.
Section 308. Transfer of Funds
Section 308 permits the Administrator, when authorized in an ap-
propriation act, to make transfers of funds from one appropriation to
another within his agency, but no appropriation shall be either in-
creased or decreased by more than 5 percent.
Section 309. Conforming Amendments to Certain Other Laws
Section 309 is a technical, conforming amendment covering the
Executive Schedule compensation pertaining to this act.
Section 310. Separability
Section 310 is a standard separability provision that avoids the in-
validation of the remaining provisions of this act in the event that a
single provision is found to be invalid.
Section 311. Effective Dates and Interim Appointments
Section 311 provides effective dates and a system of interim appoint-
ments for both EPDA and NSLC.
Subsection (a) provides that this act shall take effect 120 (lays after
its enactment for both the Energy Research and Development Admin-
istration and for the Nuclear Safety and Licensing, Commission. The
120-day period will allow sufficient time for the complex tasks of ar-
ranging and staffing the wholly new organizations. and of preparing
such rules, regulations and orders as may be necessary for a smooth
transition.
This subsection also provides for advance transfer of funds to pay
salaries and expenses of any officer prior to the formal transfer of
funds after the Act takes effect.
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Subsection (b) provides that if an officer, subject to Senate confirma-
tion under this act, has not entered upon. his office on the effective date
of the act, the President may designate, any officer who was such an
officer immediately prior to the effective date of the act, to act in such
office temporarily. An officer thus designated would draw pay at the
rate provided .in this Act for the position filled by him under this sub-
section.
Section 401 bars sex discrimination in connection with any license,
activity, or Federal assistance under this act.
Sex discrimination is prohibited under title VII of the 1964 Civil
Rights Act, which relates to employment by firms with 15 or more em-
ployees and has been amended to :include State and local governments,
but sex discrimination is not prohibited. under title VI, which relates
to federally assisted programs and activities. This amendment says
that no person shall on the ground of sex be excluded from or denied
the benefits of, or be subjected to discrimination under any program
in this particular act. Until such time at title VI of the Civil Rights
Act is amended this approach remains necessary.
Such language has been added to the Federal Aid Highway Act of
1973, the Water Pollution Control Amendments of 1972, the Nurses
Training Act and a variety of other public laws.
APPENDIX 1.-CHANGES IN ExiSTiNG LAW
In compliance with subsection 4 of rule XXIX of the Standing Rules
of the Senate, 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, and existing law in
which no change is proposed is shown in roman) :
TITL1: 5, UNITED STATES CODE
5313. POSITIONS AT LEVEL U
Level II of the Executive Schedule applies to the following
positions, for which the annual rate of basic pay is $42,500:
(1) ***
(8) Chairman. [Atomic Energy] Nuclear Safety and Licensing
Commission.
(22) Administrator of Energy Research and Development.
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5314. POSITIONS AT LEVEL III
Level III of the Executive Schedule applies to the following posi-
tions, for which the annual rate of basic pay is $40,000:
(1)
* * * * * * *
(42)Members, [Atomic Energy] Nuclear Safety and Licensing
Commission.
* * * * * * *
(60) Deputy Administrator, Energy Research and Develop-
ment Administration.
5315. POSITIONS AT LEVEL IV
Level IV of the Executive Schedule applies to the following
positions, for which the annual rate of basic pay is $38,000:
(1) ***
* * * * * * *
E(50) General Manager of the Atomic Energy Commission.]
* * * * * * *
(99) Assistant Administrators, Energy Research and Develop-
ment Administration (6).
(100) Director of Nuclear Reactor Safety, Nuclear Safety and
Licensing Commission;
(101) Director of Nuclear Materials Security, Nuclear Safety
and Licensing Commission;
(102) Director of Nuclear Safety Research, Nuclear Safety and
Licensing Commission.
5316. POSITIONS AT LEVEL V
Level V of the Executive Schedule applies to the following
positions, for which the annual rate of basic pay is $36,000:
(1) * * *
* * * * * * *
[ (29) Assistant General Manager, Atomic Energy Commis-
sion.]
[(62) Director of Regulation, Atomic Energy Commission.']
[(69) Deputy General Manager, Atomic Energy Commission.]
(81) General Counsel of the [Atomic Energy] Nuclear Safety
and Licensing Commission.
[ (102) Assistant General Managers, Atomic Energy Commis-
sion (2).]
* * * * * * *
(133) General Counsel, Energy Research and Development
Administration.
(134) Additional officers, Energy Research and Development
Administration (8).
(135) Additional officers, Nuclear Safety and Licensing Com-
mission (9).
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APPENDIX 7.--PROVISIONS OF THE ATOMIC ENERGY ACT APPLICABLE TO
FUNCTIONS TR.1NSrERRED FROM THE AEC TO ERDA AND NSLC
The Ene y Research and Development Administration and the
Nuclear Safety and Licensing Commission, will utilize authorities pro-
vided 1>y the Atomic Energy Act of 1954, as amended. Since the bill
entails a separation of functions to be administered separately by
these two agencies, it follows that certain provisions of the Atomic
Energy Act, will be applicable to each agency. The following analysis
shows the distribution of separately and jointly applicable authorities
under that act.
The Committee has been advised by the Office of General Counsel,
SEC. that the applicability of provisions of the Atomic Energy Act
to ERDA and NSLC are the same in the bill, as reported, as in the
original bill.
1. The foliogvc.:ng provisions of the Atomic Energy Act of 1951, as
heretofore amended, apply only to ERDA
Subsection 31b. (certain grants and contributions).
Section 33 ("Rese?a:rch for Others") ; provided that the NSLC re-
tains authority to contract out for research as it deems necessary to
exercise its licensing and related regulatory functions.
Chapter 5 ("Production of Special Nuclear Material").
Subsection 53c; 53d; and 53f. (distributing special nuclear mate-
rial).
Section 51- ("Foreign Distribution of Special Nuclear Material").
Section. 56 ("Guaranteed Purchase Prices").
Section rig ("Review").
Subsection 63c. (charges for distributing source material).
Section 64 ("Foreign Distribution of Source Material").
Section 67 ("Operations on Lands Belonging to the United States").
Section 91 ("Authority").
Section 142 ("Classification and Declassification of Restricted
Data").
Section 143 ("Dep trtment of Defense Participation").
Subsections 144a; 144-b; and 144c. (international cooperation).
Subsection 151c; 114d; 151e. (certain patent aspects).
Section 153 ("Nonmilitary Utilization").
Section 154 ("Injunctions").
Section 157 ("Commission Patent Licenses").
Subsections 161c; 1.61m; 161r; 161t; 161u; and 161v. (general pro-
Visions).
Section 164 ("Elecric Utility Contracts").
Section 1.67 ("Claims Settlements").
H. The, followinq provisions of the Atomic Energy Act of 195./, as
heretofore amended, apply only to NSLC
Subsection 53h. (minimum criteria for licenses).
Subsection 53e. (licensing conditions).
Section 62 ("Licens(,. for Transfers Required").
Subsection ,33h. (minimum critera for licenses).
Section 69 ("Prohibition").
Section 101 ("License Required").
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Section 102 ("Utilization and Production Facilities for Industrial
or Commercial Purposes").
Section 1.03 ("Commercial. Licenses").
Section 104 ("Medical Therapy and Research and Development").
Subsection 105c (licensing antitrust review).
Section 106 ("Classes of Facilities").
Section 107 ("Operators' Licenses").
Section 109 ("Component Parts of Facilities").
Subsection 161h. (licensing activities).
Subsection 161w. (licensing charges).
Section 182 ("License Applications").
Section 183 ("Terms of License").
Section 184 ("Inalienability of Licenses").
Section 185 ("Construction Permits").
Subsections 186a. and 186b. (license revocation).
Section 187 ("Modification of License").
Section 190 ("Licensee Incident Reports").
Section 191 ("Atomic Safety and Licensing Board").
Section 192 ("Temporary Operating License").
Section 272 ("Applicability of Federal Power Act").
Section 273 ("Licensing of Government Agencies").
Section 274 ("Cooperation with States").
III. The following provisions of the Atomic Energy Act of 1954, as
heretofore amended, generally apply, respectively, to the fune.
tions of the Administrator and to NSLC
Chapter 1 ("Declaration, Findings and Purpose") ; provided that
all references to encouraging, promoting, utilizing, developing and
participating in atomic energy or the atomic industry shall not be
applicable to the NSLC.
Chapter 2 ("Definitions") ; provided that (i) the determinations
and criteria in j. (extraordinary nuclear occurrences) shall be the re-
sponsibility of the Administrator only in regard to activities and mat-
ters not covered by the licensing and related regulatory facets of Sec-
tion 170 of the Atomic Energy Act, as amended, and (ii) the determi-
nations in v. (production facility), z. (source material), aa. (special
nuclear material), and cc. (utilization facility), shall be the responsi-
bility of the Administrator only in regard to facilities and materials
not subject to licensing and related regulatory control by NSLC.
Chapter 3 ("Organization") ; except (i) as provided for in this
bill, (ii) the Inspection Division established by subsection 25c. will
be transferred to NSLC, and the ERDA Administrator also will pro-
vide for the discharge of the inspection function under subsection 25c.
in ERDA, (iii) in regard to section 29 ("Advisory Committee on Re
actor Safeguards"), it is intended that the ACRS be transferred to
NSLC but that the ACRS also be made available to ERDA as the
Administrator may request to perform such of the activities contem-
plated by section 29 as relate to functions transferred to the
Administrator.
Subsections 31a; 31c; and 31d. (research assistance), and Section
32 ("Research By the Commission").
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Section. 51; provided, that the respective determinations shall be
made as indicated in Chapter 2 above.
Subsection 53a; provided, that subdivisions (ii) and (iii) of said
subsection (distributing and making available special nuclear mate-
ral) shall apply only to ERDA, and subsection (i) (licenses) shall
apply only to NSLC.
Section 55 ("Acquisition").
Section 57 "'Prohibition").
Section 61 ("Source Material') ; provided, that the respective de-
terminations shall be made as indicated in Chapter 2 above).
Subsection 63a. (source material) ; provided, that the authority to
distribute shall apply only to ERDA and the authority to license shall
apply only to NSLC.
Section 65 ("Reporting").
Section 66 ("Acquisition").
Section 68 ("Public and Acquired Lands").
Section 81 ("Domestic Distribution"), and Section 82 ("Foreign
Distribution of Byproduct Material") ; provided, that, the authority to
distribute shall apply only to ERDA and the authority to license shall
apply only to NSLC.
Section 92 "'Prohibition").
Subsections 105a. and 105b. (Antitrust provisions and reporting).
Section 108 ("War or National Emergency").
Section 110 ("Exclusions") ; it should be noted that subsection 110a.
is amended by section 202 of the bill.
Chapter 11 (" International Activities") ; provided, that, except for
licensing and regulatory aspects, the implementation of these provi-
sions shall be the responsibility of ERDA..
Section 141 ("policy") ; provided, that the implementation of sub-
section 141a. shall be the responsibility of ERDA.
Subsection 144d. (Presidential authorization).
Section 1451 ("Restrictions") ; except that only the Administrator
shall establish the basic standards and p,,rocedures for the safeguarding
of the national defense and security.
Section 146 ("General Provisions").
Subsection 151a, and 151b. (certain inventions and discoveries).
Section 152 ("Inventions Made or Conceived During Commission
Contracts").
Section 155 ("Prier Art").
Section 156 ("Commission Patent Licenses").
Section 15E, ("Monopolistic Use of Patents").
Section 159 ("Federally Financed Research").
Section 160 ("Saving Clause").
Subsections 161a., 161b., 161c., 161.d., 161f., and 161g. (general
authority) .
Subsection 1611. and 1611. (certain. regulations or orders and dis-
positions) ; provided, that the Administrator shall establish the basic
standards and procedures respecting the national security.
Subsections 161k. (firearms) ; 161n. (delegations), provided that no
functions delegated to officers of NSLC shall include functions re-
lating to the development of atomic energy or the atomic industry;
161o. (reports and records) , ;L61p. (rules and regulations), 161q.
(rights-of-way), an([ 161s. (succession of authority)..
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Section 162 ("Contracts").
Section 163 ("Advisory Committees").
Section 165 ("Contract Practices").
Section 166 ("Comptroller General Audit") ; it should be noted
that section 305 of the bill also makes this section applicable to ERDA's
contracts for non nuclear activities.
Section 168 ("Payments in Lieu of Taxes").
Section 169 ("No Subsidy").
Section 170 ("Indemnification and Limitation of Liability").
Chapter 15 ("Compensation for Private Property Acquired").
Section 181 ("General").
Subsection 186c. (Retaking and Recapture) ; provided that the
Administrator shall establish the basic standards and procedures in
regard to safeguarding the national defense and security.
Section 188 ("Continued Operation of Facilities") ; provided, that
findings and judgments respecting the production program shall be
the. responsibility of the Administrator.
Section 189 ("Hearings and Judicial Review").
Chapter 17 ("Joint Committee on Atomic Energy").
Chapter 18 (`Enforcement") ; except for Section 234 ("Civil Mone-
tary Penalties for Violation of Licensing Requirements") which is
applicable only to NSLC.
Section 241 ("Transfer of Property").
Section 251 ("Report to the Congress").
Section 261 ("Appropriations").
Section 271 ("Agency Jurisdiction").
Section 281 ("Separability") and Section 291 ("Short Title").
APPENDIX 3-EXPLANATION OF PERSONNEL PROVISIONS OF S. 2744
The provisions of S. 2744 pertaining to personnel administra-
tion in ERDA and NSLC provide for the continuation of the excepted
personnel system authorized by section 161d. of the Atomic Energy
Act, as amended. In this regard, section 107 (a) of the bill authorizes
the Administrator "to select, appoint, employ, and fix the compensa-
tion of such officers and employees, including attorneys, pursuant to
section 161d. of the Atomic Energy Act of 1954, as amended (42
U.S.C. 2201(d)) as are necessary to perform the functions now or
hereafter vested in him and to. prescribe their functions."
The continuation of the excepted personnel system of the Atomic
Energy Act, of course, will have no new impact on those employees
who will transfer from AEC to ERDA and NSLC. Employees of the
Department of Interior and NSF who would be transferred to ERDA
would, at the same time, be transferred from the competitive civil
service system to the excepted personnel system of ERDA under the
authority of section 107 (a) of S. 2744. Although there are significant
systems differences between the competitive civil service system and
the personnel system authorized by section 161d, of the Atomic Energy
Act, both systems impact on individual employees in terms of rights,
protections, and benefits in much the same way, as amplified below.
Individual employees transferred to the excepted personnel program
for ERDA or NSLC, therefore, would not reliquish any of their
basic rights of benefits as Federal employees. There would be available
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to them in ERDA and NSLC, however, the added benefits provided by
the AEC's merit employment system. In addition, section 105(b) of
S. 2744 provides that "transfer of nontemporary personnel pursu-
ant to this Act shall not cause any such employee to be separated or
reduced in grade or compensation for one year after such transfer."
Section 105(c) provides a somewhat similar protection for those offi-
cers paid in accordance with the Executive Salary Schedule : "Any
person who, on the effective date of this Act, held a position com-
pensated in accordance with the Executive Schedule prescribed in
chapter 53 of title 5 of the United States Code, and who, without a
break in service, is appointed in the Administration to a position hav-
ing duties comparable to those perforrled immediately preceding his
appointment shall continue to be compensated in his new position at
not less than the rate provided for this previous position."
EMI'LOYA[1"NT UNDER i'iu' Exc'P:prl:o Pl I V)"tNEL SYSTEM OF SECTION 161D.
)F TT1E VrOAM! ENERGY ACT
Emp7ol/ee 01W.-There would be no change in the pay received by
Federal c mpl n ees transferred to ERD N or N'SLL. E RT)A and NSLC
would continue to apply a salary schedule under the authority of sec-
tion 161d. of the Atomic Energy Act which is equivalent to that pro-
vided by law for the competitive service. Within-grade increases would
he earned at the same rates as in the competitive service. Future pay
i eucreases authorized under the Classification Act for Federal employees
would apply to ER]).A. and NSLC employees. With respect to wage
board einplovrees, their ratios of pay would continue to be based on
local prevailing rates as provided by the applicable local wage board
pay schedule. Moreover, section 105(b) of S. 2749 specifically states
that the "transfer o_c non-temporary -personnel pursuant to this Act
If Interior and NSF to ERDA] shall not cause any such em-
ployee to he separated or reduced in grade or compensation for one
year after such transfer".
Employee Status.--The interchange, agreement between the Civil
Service Commission and the AEC would be applicable. Federal em-
ployee,s having "Career" appointments in the competitive service
would receive "Regular (Excepted)" appointments based on their
having three yCears of service for "career" tenure. Federal employees
with `Career-onditional" appointments (those with less than three
years of serv.:ce) would receive "Regular (Excepted) (Conditional)"
appointments. In accordance with the interchange agreement, employ-
ees of ERDA and NSLC would be eligible to transfer to any agencies
in the competitive service without regard to the competitive examina-
tion procedures administered by the Civil Service Commission.
Iietentio,rl/Peductzon-in-Force Rights.-Employees transferred to
ERDA and NSLC would come under reduction-in-force procedures
which differ from those of the competitive service only in that they do
not provide for "retreat" rights, and do not include performance rat-
ings in determining retention rights. In the "AEC" system, a reduc-
tion in force (RIF) is confined to a "competitive level", i.e., the grade
level, occupation, and location in which a reduction is required. Within
the competitive level, the employee with the lowest retention, rights,
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i.e., least Federal service, status, and veteran-nonveteran status, is the
employee who is reduced in force.
Since "retreat" rights (movement of an employee back through
positions and grade levels previously held in lieu of separation) are not
a part of the AEC system, there is relatively less job protection for
certain employees who might be involved in a RIF. However, other
employees, e.g., those in the same competitive area but at different
grade levels (different competitive levels), could actually have better
employment protection than would be available to them under the
competitive civil service system. The AEC reduction-in-force proce-
dures, which have been approved by the Civil Service Commission
as meeting the requirements of the Veterans Preference Act, are
designed to confine the program disruption and employee morale prob-
lems to the single "competitive level" in which a reduction is to take
place. The AEC procedures avoid the problems of employees at higher
grades "retreating" to lower grades with attendant lowered morale of
those employees and those they displace who in turn "retreat" and
displace others.
Employee "Fringe" Benefits.-There would be no significant
changes in "fringe" benefits coverages available to Federal employees
transferring to EIi,DA or NSLC. The types of leave programs, life and
health insurance programs, and retirement benefits would be the same
in ERDA and NSLC as in the rest of the Federal service. Since ERDA
would be covered by the retirement system administered by the Civil
Service Commission, employees transferring to ERDA from other
Federal agencies would be entitled to all the same civil service retire-
ment benefits.
Summary.-A review of the rights, protections and benefits that
would be available to employees of ERDA and NSLC reveals that
there would be no significant difference from the rights, protections and
benefits available to all Federal employees. Except for the differences
in the reduction-in-force procedures cited above, which involve ad-
vantages to employees as well as disadvantages, employees transfer-
ring from other Federal agencies to ERDA or NSL,C would be unable
to discern any real changes in their rights, protections and benefits.
However, the excepted personnel system provided by Section 161d.
of the Atomic Energy Act would provide significant systems advan-
tages which would benefit employees as well as benefit ERDA and
NSLC organizations.
COMPARISON Or TIIE EXCEPTED PERSONNEL SYSTEM OF SECTION 161D. OF
THE ATOMIC ENERGY ACT WITH TIIE COMPETITIVE CIVIL SERVICE SYSTEM
The basic difference between the excepted personnel system. pro-
vided by Section 161d. of the Atomic Energy Act and the competi-
tive civil service system is that the excepted system is designed to be
uniquely responsive to the management needs of a highly technical
research, development and regulatory program. The competitive civil
service system is designed to implement the Civil Service Act of 1883
and related civil service laws, which require a broad. merit employ-
ment program covering as much Government activity as possible and
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which emphasize fair and equitable treatment of all citizens applying
for posit ions in, or employed by, the Government.
The excepted personnel system under section 161d. was developed
because of a clear Congressional intent; to have a personnel program
that would be as effective as possible in supporting technical research,
development and regulatory activities, and at the same time, assure
fair and equitable treatment of all candidates and employees of the
organization. This Congressional intent has been successfully carried
out. Significant. improvements in recruitment methods, selection pro-
cedures, job evaluation and pay methods, and executive manpower
management techniques, as well as positive modifications in other func-
tional areas, can be demonstrated and confirmed in the excepted per-
sonnel program of Section 161d. of the Atomic Energy Act.
IX. TEXT OF S. 27744, AS REPORTED
To reorganize and consolidate certain functions of the Federal Government in a
now Energy Research and Development Administration and in a new Nuclear
Safety and Licensing Commission in order to promote more efficient manage-
ment of such functions
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Energy Reorganization Act of 1974".
Src. 2. (a.) The Congress hereby declares that the general welfare
and the common defense and security require effective action to de-
velop, and increase the efficiency and reliability of use of, all energy
sources to meek; the needs of present and future generations, to increase
the productivity of the national economy and strengthen its position in
regard to inte_?national trade, to make the Nation self-sufficient in en-
ergy, to advance the goals of restoring, protecting, and enhancing envi-
ronmental quality, and to assure public health and safety.
(b) The Congress fi rids that, to best achieve these objectives, improve
Government operations, and assure the coordinated and effective de-
velopment of all energy sources, it is necessary to establish an Energy
Research and Development Administration to bring together and di-
rect Federal. activities relating to research and development on the
various sources of energy, to increase the efficiency and reliability in
the use of energy, and to carry out the performance of other functions,
including the Atomic Energy Commission's military and production
activities: Provided, That, in establishing an Energy Research and
Development Administration to achieve these objectives, the Congress
intends that no energy technology be given an unwarranted priority.
(c) The Congress further declares and finds that it is in the public
interest that i;he licensing and related regulatory functions of the
Atomic Energy Commission be separated from the performance of
the other functions of the Commission, and that this separation be ef-
feeted in an orderly manner, pursuant to this Act, assuring adequacy
of technical ar_d other resources necessary for the performance of each.
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(d) The Congress further declares that it is in the public interest
and is hereby stated to be the policy of Congress that small business
concerns be given an opportunity to participate, insofar as is possible,
in a fair and equitable proportion of grants, contracts, purchases, and
other Federal activities relating to research, and development, and
demonstration of sources of energy efficiency and utilization of energy
and conservation of energy.
TITLE I-ENERGY RESEARCH AND DEVELOPMENT
ADMINISTRATION
Snc. 101. There is hereby established an independent executive
agency to be known as the Energy Research and Development Ad-
ministration (hereinafter in this Act referred to as the "Adminis-
tration").
Snc. 102. (a) There shall be at the head of the Administration an
Administrator of Energy Research and Development (hereinafter in
this Act referred to as the "Administrator"), who shall be appointed
from civilian life by the President by and with the advice and consent
of the Senate. A person may not be appointed as Administrator within
five years after release from active duty as a commissioned officer of
a regular component of an Armed Force. The Administrator shall
receive compensation at the rate now or hereafter prescribed for offices
and positions at level II of the Executive Schedule (5 U.S.C. 5313).
The Administration shall be administered under the supervision and
direction of the Administrator, who shall be responsible for the effi-
cient and coordinated management of the Administration.
(b) There shall be in the Administration a Deputy Administrator,
who shall be appointed by the President, by and with the advice and
consent of the Senate, and who shall receive compensation at the rate
now or hereafter prescribed for offices and positions at level III of the
Executive Schedule (5 U.S.C. 5314). The Deputy Administrator shall
have special responsibility, subject to the Administrator's authority,
for international cooperation in all energy and related environmental
research and development.
(c) The President shall appoint the Administrator and Deputy
Administrator from among individuals who, by reason of their train-
ing and experience are specially qualified to manage a full range of
energy research and development programs.
(d) There shall be in the Administration six Assistant Administra-
tors, one of whom shall be responsible for fossil energy, another for
nuclear energy, another for environment and safety, another for con-
servation, another for solar, geothermal, and advanced energy sys-
tems, and another for defense programs. The Assistant Administra-
tors shall be appointed by the President, by and with the advice and
consent of the Senate, and shall receive compensation at the rate now
or hereafter prescribed for offices and positions at level IV of the Ex-
ecutive Schedule (5 U.S.C. 5315). The President shall appoint each
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Assistant Administrator from among individuals who, by reason of
training and experience, are specially qualified to manage the energy
technology area assigIned to such Assistant Administrator.
(e) There shall be in the Administration a General Counsel who
shall be appointed ly the Administrator and who shall. serve at the
pleasure of and be removable by the Administrator. The General
Counsel shall receive compensation at the rate now or hereafter pre-
scribed for offices and positions at level V of the Executive Schedule
(5 U.S.C.5316).
(f) There shall be in the Administration not more than eight addi-
tional officers appointed by the Administrator, who shall serve at the
pleasure of and be removable by the Administrator and shall receive
compensation at the rate now er hereafter prescribed for offices and
positions of level V of the Executive Schedule (5 U.S.C. 5316).
(g) The. Division of Military Application transferred to and es-
tablished in the Administration by section 104(d) of this Act shall
be under the direction of a Director of Military Application, who shall
be appointed by the Administrator and who shall serve at the pleasure
of and be removable by the Administrator and shall be an active com-
missioleed eflicer of the Armed Forces serving in general or flag officer
rank or The functions. qualifications, and compensation of the
Director -of ;Military Application shall be the same as those provided
under the Atomic Energy Act of 1954, as amended, for the Assistant
General 111arnager for Military Application.
(h) Officers appointed pursuant to this section shall perform such
functions as the Administrator shall specify from time to time.
(i) The Deputy Administrator (or in the absence or disability of
the Deputy Administrator, or in the event of a vacancy in the office of
the Deputy Administrator, an Assistant Administrator, the General
Counsel or such other official, determined according to such order as
the Administrator shall prescribe) shall act for and perform the func-
tions of the Administrator during any absence or disability of the Ad-
ministrator or in the event of a vacancy in the office of the Admin-
istrator.
I:ESPONSIBILrrIES OF TILE ADMINISTRATOR
Src. 103. (a) The responsibilities of the Administrator shall in-
clude, but not be limited to-
(1) exercising central responsibility for policy planning, co-
ordination, support, and -management of research and develop-
ment programs respecting all energy sources, including assessing
the requirements or research and development in regard to various
energy sources in relation to near-term and long-range needs, pol-
icy planning in regard to meeting those requirements, undertak-
ing programs for the optimal development of the various forms
of _ energy sources, managing such programs, and disseminating
information resulting therefrom;
(2) encouraging and conducting research, development and
demonstration of commercial feasibility and practical applications
of the extraction, conversion, storage, transmission, and utiliza-
tion phases related to the development and use of energy from
fossil, nuclear, solar, geothermal, and other energy sources ; in-
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eluding such nonnuclear research and development programs as
may hereafter be authorized by the Congress;
(3) engaging in and supporting environmental, biomedical,
physical, and safety research related to the development of energy
sources and utilization technologies;
(4) taking into account the existence, progress, and results of
other public and private research and development activities, in-
cluding those activities of the Federal Energy Administration re-
lating to the development of energy resources using currently
available technology in promoting increased utilization of energy
resources, relevant to the Administration's mission in formulating
its own research and development programs ;
(5) participating in and supporting cooperative research and
development projects which may involve contributions by public
or private persons or agencies, of financial or other resources to
the performance of the work;
(6) developing, collecting, distributing, and making available
for distribution, scientific and technical information concerning
the manufacture or development of energy and its efficient ex-
traction, conversion, transmission, and utilization;
(7) encouraging and conducting research and development in
energy conservation, which shall be directed toward the goals of
reducing total energy consumption to the maximum extent prac-
ticable, and toward maximum possible improvement in the effi-
ciency of energy use. Development of new and improved conserva-
tion measures shall be conducted with the goal of the most ex-
peditious possible application of these measures; and
(8) encouraging and participating in international cooperation
in energy and related environmental research and development.
(b) In carrying out his responsibilities tinder this Act, the Admin-
istrator shall consult with the Administrator of the Small Business
Administration and take the appropriate action to help assure that
small business concerns receive an opportunity to participate in a. fair
and equitable proportion of grants, contracts, purchases, and other
Federal activities relating to research, development, and demonstra-
tion of sources of energy, efficiency and utilization of energy and con-
servation of energy.
SEC. 104. (a) The Atomic Energy Commission is hereby abolished.
Sections 21 and 22 of the Atomic Energy Act of 1954, as amended
(42 U.S.C. 2031 and 2032) are repealed.
(b) All other functions of the Commission, the Chairman and
members of the Commission, and the officers and components of the
Commission are hereby transferred or allowed 'to lapse pursuant to
the provisions of this Act.
(c) There are hereby transferred to and vested in the Administrator
all functions of the Atomic Energy Commission, the Chairman and
members of the Commission, and Die officers and components of the
Commission, except as otherwise provided in this Act.
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(d) The General Advisory Committee estabilshed pursuant to sec-
tion 26 of the Atomic Energy Act of 1954, as amended (42 U.S.C.
2036), the Patent, Compensation Board established pursuant to sec-
tion 157 of the Atomic Energy Act of 1954, as amended (42 U.S.C.
2187), and the Divisions of Military Application and Naval Reactors
established pursuant to section 25 of the Atomic Energy Act of 1954,
as amended (12 U.S.C. 2035), are transferred to the Energy Research
and Development Administration and the functions of the Commis-
sion with respect thereto, and with res1oect to relations with the Mili-
tary Liaison Committee established by section 27 of the Atomic
Energy Act of 1954, as amended. (42 l .S.C. 2037), are transferred to
the Administrator.
(e) There Bare hereby transferred to and vested in the Administrator
such functions of the Secretary of the Interior, the Department of the
Interior, and officers and components of such department-
(1) as relate to or are utilized by the Office of Coal Research
established pursuant to the Act of July 1, 1960 (74 Stat. 336; 30
U.S.C. 661-665) ;
(2) as relate to or are utilized in connection with fossil fuel
energy research and development programs and related activi-
ties conducted by the Bureau of Mines "energy centers" and
synthane plant to provide greater efficiency in the extraction,
processir,.g, and utilization of energy resources for the purpose of
conserving those resources, developing alternative energy re-
sources, such as oil and gas secondary and tertiary recovery, oil
shale and synthetic fuels, improving methods of managing energy-
related wastes and pollutants, and providing technical guidance
needed to establish and administer national energy policies;
(3) as relate to or are utilized for underground electric power
transmission research; and
(4) as relate to the acquisition, production, distribution, and
storage of helium.
(f) There are hereby transferred to and vested in the Administrator
such functions of the National Science Foundation as relate to or are
utilized in connection with-
(1_) so_.ar heating and cooling development; and
(2) geothermal power development.
(g) To the extent necessary or appropriate to perform functions
and carry out programs transferred by this Act, the Administrator
and Commission may exercise, in relation to the functions so trans-
ferred, any authority or part thereof available by law, including ap-
propriation Acts, to the official or agency from winch such functions
were transferred.
(h) In the exercise of his responsibilities under section 103, the Ad-
ministrator shall utilize to the fullest extent practicable the technical
and management capabilities of other executive agencies having fa-
cilities, personnel, or other resources which can assist or advanta-
geously be expanded to assist in carrying out such responsibilities.
The Administrator shall consult with the head of each agency with
such facilities, personnel, or other resources and assign, with their
consent, responsibility for specific programs or projects in energy
research alit', development as appropriate: Provided, That (1) such
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assignments shall be in addition to and not detract from the basic
mission responsibilities of the agency, and (2) such assignments shall
be carried out under the policy guidance of the Administrator.
SEC. 105. (a) Except as provided in the next sentence, the personnel
employed in connection with, and the personnel positions, assets, lia-
bilities, contracts, property, records, and unexpended balances of ap-
propriations, authorizations, allocations, and other funds employed,
held, used, arising from, available to or to be made available in con-
nection with the functions and programs transferred by this Act, are,
subject to section 202 of the Budget and Accounting Procedures Act
of 1950 (31 U.S.C. 581c), correspondingly transferred for appropriate
allocation. Personnel positions expressly created by law, personnel
occupying those positions on the effective date of this Act, and per-
sonnel authorized to receive compensation at the rate prescribed for
offices and positions at levels II, III, IV, or V of the Executive Sched-
ule (5 U.S.C. 5313-5316) on the effective date of this Act shall be sub-
ject to the provisions of subsection (c) of this section and section 301
of this Act..
(b) Except as provided in subsection (c), transfer of nontemporary
personnel pursuant to this Act shall. not cause any such employee to
be separated or reduced in grade or compensation for one year after
such transfer.
(c) Any person who, on the effective date of this Act, held a posi-
tion compensated in accordance with the Executive Schedule pre-
scribed in chapter 53 of title 5 of the United States Code, and who,
without a break in service, is appointed in the Administration to a
position having duties comparable to those performed immediately
preceding his appointment shall continue to be compensated in his
new position at not less than the rate provided for his previous
position.
ADMINISTRATIVE PROVISIONS
Sz.c. 106. (a) The Administrator is authorized to prescribe such
policies, standards, criteria., procedures, rules, and regulations as he
may deem to be necessary or appropriate to perform functions now
or hereafter vested in him.
(b) The Administrator shall engage in such policy planning, and
perform such program evaluation analyses and other studied as may
be necessary to promote the efficient and coordinated administration
of the Administration and properly assess progress toward the
achievement of its missions.
(c) Except as otherwise expressly provided by law, the Adminis-
trator may delegate any of his functions to such officers and employees
of the Administration as he may designate, and may authorize such
successive redelegat.ions of such functions as he may deem to be nec-
essary or appropriate.
(d) Except as provided in section 102 and in section 104(d), the
Administrator may organize the Administration as he may deem to
be necessary or appropriate.
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(e) The Adminis rator is authorized to establish, maintain, alter,
or discontilare such State, regional, district, local, or'other field offices
as he may deem to be necessary or appropriate to perform functions
now or hereafter vested in him.
(f) The Administrator shall cause a, seal of office to be made for the
,W-ministration of such device a he shall approve, and judicial notice
shall be taken of such seal.
(g) The Administrator is authorized to establish a working capital
fund, to be available without fiscal year limitation, for expenses neces-
sary for the maintenance and operation of such common adminis-
trative services as he shall find to be desirable in the interests of econ-
omy and efficiency. There shall be transferred to the fund the stocks
of supplies, equipment, assets other than real property, liabilities, and
unpaid obligations relating to the services which he determines will
be performed through the fund. Appropriations to the fund, in such
amounts as may be necessary to provide additional working capital,
are authorizes. The working capital fund shall recover, from the
appropriations and funds for which services are performed, either in
advance or by way of reimbursement. amounts which will approxi-
mate the costs incurred, including the accrual of annual leave and
the depreciation of equipment. The fund shall also be credited with
receipts from the sale or exchange of its property, and receipts in pay-
ment for loss or damage to property owned by the fund.
(h) Each department, agency, and -instrumentality of the execu-
tive branch of the Government is authorized to furnish to the Adrnin-
istrator, upon his request, any information or other data which the
Administrator deems necessary to carry out his duties under this title.
PERSONNEL AND SERVICES
SEC. 107. (a) The Administrator is authorized to select, appoint,
employ, and fix the compensation of such officers and employees, in-
cludin.g attorneys, pursuant to section 16ld. of the Atomic Energy Act
of 1954, as amended (42 U.S.C. 2201(d)) as are necessary to perform
the functions now or hereafter vested in him and to prescribe their
functions.
(b) The Administrator is authorized to obtain services as provided
by section 3109 of title 5 of the United States Code.
(c) The Administrator is authorized to provide for participation
of military personnel in the performance of his functions. Members
of the Army, the Navv, the Air li+ orce, or the Marine Corps may be
detailed for service in the Administration by the appropriate military
Secretary, pursuant to cooperative agreements with the Secretary, for
service in the Administration in positions other than a position the
occupant of which must be approved by 2nd with the advice and con-
sent of the Senate.
(d) Appointment, detail, or assignment to, acceptance of,and serv-
ic^ in, any appointive or other position in the Administration under
this section shall in no, vay affect the status, office, rank, or grade which
such officers or enlisted men may occupy or hold, or any emolument,
perquisite, right, privilege, or benefit incident to or arising out of any
such status, office, rank, or grade. A member so appointed, detailed.
or assigned shall not be subject to direction or control by his Armed
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Force, or any officer thereof, directly or indirectly, with respect to the
responsibilities exercised in the position to which appointed, detailed,
or assigned.
(e) The Administrator is authorized to pay transportation expenses,
and per diem in lieu of subsistence expenses, in accordance with chapter
57 of title 5 of the United States Code for travel between places of
recruitment and duty, and while at places of duty, of persons appointed
for emergency, temporary, or seasonal services in the field service of the
Administration.
(f) The Administrator is authorized to utilize, on a reimbursable
basis, the services of any personnel made available by any department,
agency, or instrumentality, including any independent agency of the
Government.
(g) The Administrator is authorized to establish advisory boards,
in accordance with the provisions of the Federal Advisory Committee
Act (Public Law 92-463), to advise with and make recommendations
to the Administrator on legislation, policies, administration, research,
and other matters.
(h) The Administrator is authorized to employ persons who are
not citizens of the United States in expert, scientific, technical, or pro-
fessional capacities whenever he deems it in the public interest.
SEe. 105. (a) The Administrator is authorized to exercise his powers
in such manner as to insure the continued conduct of research and
development and related activities in areas or fields deemed by the
Administrator to be pertinent to the acquisition of an expanded fund
of scientific, technical, and practical knowledge in energy matters. To
this end, the Administrator is authorized to make arrangements (in-
eluding contracts, agreements, and loans) for the conduct of research
and development activities with private or public institutions or per-
sons, including participation in joint or cooperative projects of a re-
search, developmental, or experimental nature; to make payments (in
lump sum or installments, and in advance or by way of reimbursement,
with necessary adjustments on account of overpayments or underpay-
ments) ; and generally to take such steps as he may deem necessary
or appropriate to perform functions now or hereafter vested in him.
Such functions of the Administrator under this Act as are applicable
to the nuclear activities transferred pursuant to this title shall be
subject to the provisions of the Atomic Energy Act of 1954, as
amended, and to other authority applicable to such nuclear activities.
The nonnuclear responsibilities and functions of the .Administrator
referred to in sections 103 and 104 of this Act shall be carried out
pursuant to the provisions of this Act, applicable authority existing
immediately before the effective date of this Act, or in accordance
with the provisions of chapter 4 of the Atomic Energy Act of 1954, as
amended (42 U.S.C. 2051-2053).
(b) Except for public buildings as defined in the Public Buildings
Act of 1959, as amended, and with respect to leased space subject to.
the provisions of Reorganization Plan Numbered 18 of 1950, the Ad-
ministrator is authorized to acquire (by purchase, lease, condemnation,
or otherwise), construct, improve, repair, operate, and maintain facili-
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ties and real property as the Administrator deems to be necessary in
and outside of the District of Columbia. Such authority shall apply
only to facilities required for the maintenance and operation of labor-
atories, research and testing sites and facilities, quarters, and related
a acconrrnodations for employees and dependents of employees of the
Administration, and such other special-purpose real. property as the
Administri-tor deems to be necessary in and outside the District of
Columbia. Title to any property or interest therein, real, personal, or
mixed, acquired pursuant to this section, shall be in the United States.
(c) (1) The Administrator is authorized to provide, construct, or
rna,inta-in, as necessary- and when not otherwise available, the follow-
ing for employees and their dependents stationed at remote locations :
(A) emergency medical services and supplies;
(B) food and other subsistence supplies;
(C) messing facilities ;
(I)) audiovisual equipment, a! cessories, and supplies for recre-
ation and training ;
(E) reimbursement for food, clothing, medicine, and other sup-
plies furnished by such employees in emergencies for the tempo-
rary relief of distressed persons;
(F) living and working quarters and facilities; and
(G) transportation for school-age dependents of employees to
the nearest appropriate educational facilities.
(3) The furnishing of medical treatment under subparagraph (A)
of paragraph (1) and the furnishing of services and supplies under
paragraphs (B) and (C) of paragraph (1) shall be at prices reflecting
reasonable value as determined by the Administrator.
(3) Proceeds from reimbursements under this section shall be de-
posited in the Treasury and may be withdrawn by the Administrator
to pay directly the cost of such work cr services, to repay or make ad-
vances to appropriations or funds which do or will bear all or a
part of such cost, or to refund, excess sums when necessary; except
that such payments may be credited to a service or working capital
fund otherwise established by law, and used under the law governing
such funds, if the fund is available for use by the Administrator for
performing the work or services for which payment is received.
(d) The Administrator is authorizes.. to acquire any of the following
described rights if the property acquired thereby is for use in, or is
useful to, the performance of functions vested in him:
(1) copyrights, patents, and applications for patents, designs,
processes, specifications, and data;
(2) licenses under copyrights, patents, and applications for
patents; and
(3) releases, before suit is brought, for past infringement of
patents or copyrights.
(e) Subjec'. to the provisions of chapter 12 of the Atomic Energy
Act (42 U.S.C. 2161-2166), and ether applicable law, the Administra-
tor shall disseminate scientific, technical, and practical information
acquired pursuant to this title through information programs and
other appropriate means, and shall encourage the dissemination of
scientific, technical, and practical infor;+nat:ion relating to energy so as
to enlarge the fund of such information and to provide that free inter-
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change of ideas and criticism which is essential to scientific and in-
dustrial progress and public understanding.
(f) The Administrator is authorized to accept, hold, administer, and
utilize gifts, and bequests of property, both real and personal, for the
purpose of aiding or facilitating the work of the Administration.
Gifts and bequests of money and proceeds from sales of other prop-
erty received as gifts or bequests shall be deposited in the Treasury
and shall be disbursed upon the order of the Administrator. For the
purposes of Federal income, estate, and gift taxes, property accepted
under this section shall be considered a a gift or bequest to the United
States.
COUNCIL ON ENERGY POLICY
SEC. 109. (a) The Congress finds and declares that-
(1) there are many Federal agencies, created at different times
and for different purposes to handle specialized problems, all di-
rectly or indirectly involved in the establishment of energy policy;
(2) there is no comprehensive national energy policy but in-
stead Federal energy activities consist of a myriad of laws, regu-
lations, actions, and inactions resulting in narrow, short range,
and often conflicting docisionmaking by individual agencies with-
out adequate consideration of the impact on the overall energy
policy, not future national energy needs; and
(3) as a consequence of not having a comprehensive national
energy policy, the Nation faces mismanagement of energy re-
sources, unacceptably high adverse environmental impacts, in-
adequate incentives for efficient utilization and conservation of
energy resources, shortages of supply, and soaring energy prices.
(b) Therefore, it is declared to be the purpose of the Congress to
protect and promote the interest of the people of the United States as
energy users by establishing a Council on Energy Policy to serve as a
focal point for-
(1) the collection, analysis, and interpretation of energy statis-
tics and data necessary to formulate policies for wise energy man-
agement and conservation and to anticipate social, environmental,
and economic problems associated with existing and emerging
energy technologies;
(2)' the coordination of all energy activities of the Federal'
Government, and provision of leadership to State and local gov
ments and other persons involved in energy activities ; and
(3) the preparation, after consultation with other interested.
organizations and agencies, of a, long-range comprehensive plan
(hereinafter referred to as the "energy plan") for energy devel
opment, utilization, and conservation to foster improvement in
the efficiency of energy production and utilization, reduction of
the adverse environmental impacts of energy production and utili-
zation, conservation of energy resources for the use of future gen-
erations, reduction of excessive energy demands, and development
of new technologies to produce clean energy.
(c) (1) The policies, regulations, and public laws of the United
States shall be interpreted and administered to the fullest extent pos-
sible in accordance with the policies set forth in this section; and
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(2) All agencies of the Federal Government shall to the fullest
extent possible-
( utilize a systematic interdisciplinary approach which will
insure the integrated use of both physical and social sciences in
producing, conserving, and utilizing the Nation's energy re-
SOUrees ;
(B'i submit prior to the review process established pursuant to
the Budget and Accounting Nct of 1972, as amended, to the
Council on Energy Policy established by this section for comment
all le;Tisla.tive recommendations and reports, to the extent that
such recommendations and reports, deal with or have a bearing
on energy rrmtters;
(C) gather data and information pursuant to guidelines pro-
mulgated by the Council on Energy Policy; develop analytical
techniques for the management. conservation, use, and develop-
ment of energy resources, and make such data available to the
Council on Energy Policy;
(1)` recognize the worldwide and long-range character of en-
ergy concerns and, where consistent with the foreign policy of the
united States, lend appropriate support to initiatives, resolutions,
and programs designed to foster international cooperation in an-
ticipa"ing and resolving energy-related problems;
(d) There shall be established in the Executive Office of the Presi-
dent a Council on Energy Policy (hereinafter referred to as the
"Council"). The Council shall be composed of three members who shall
be appointed by the President, to serve at his pleasure by and with the
advice and consent of the Senate. The President shall at the time of
nomination designate one of the members of the Council to serve as
Chairman. Each member shall be a person, who as tt result of his train-
ing. experience, and attainment, is well qualified to analyze and inter-
pret, energy trend;. and information of all kinds; to appraise programs
and get; vi ies of the Federal Government in light of the energy needs
of the Nation; to be conscious of and responsive to the environmental,
social. cultural, economic, scientific, and esthetic needs and interests of
the Nation: and to formulate a national energy plan and recommend
national policies with respect to wise energy management.
(el (1) The Council shall serve as the principal adviser to the Presi-
dent on energy pcdicy and shall exercise leadership in the formulation
of Government policy concerning domestic and international issues
relat-inu* to energy.
(2) The Council shall make recommendations to the President and
the Congress for resolving conflicts between the policies relating to
energy of different Federal agencies and recommend measures to im-
prove the implementation of Federal energy policies or the manage-
ment, of ereruv resources with particular emphasis upon policies and
activities involving two or more departments or independent agencies.
O The Council shall develop -within eighteen months after the
date of enactment of this Act and thereafter shall annually update
an energy plan for energy development, utilization, and conservation
in the I-nited States to carry out the purposes as stated in subsection
(b) of this section. Copies of such plans shall be distributed on Jan-
uary 1 of each ye r,r to the President. to the Congress, and to all Federal
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and State agencies concerned with energy, and upon request to local
agencies and nongovernmental entities.
(4) The Council shall promptly review all legislative recommenda-
tions and reports sent to Congress to the extent that such recommenda-
tions and reports have a bearing on energy matters, and it shall send
to the President and the involved Federal agency a statement in writ-
ing of its position and the reasons therefor.
(5) The Council shall. keep Congress fully and currently informed
of all of its activities. Neither the Council nor its employees may
refuse to testify before or submit information to,Congress or any duly
authorized committee thereof.
(6) The Council shall conduct annual public hearings on the energy
plan and may hold public hearings when there is substantial public
interest in other pending matters.
(7) In carrying out its collection, analysis, and interpretation of
energy statistics function, the Council shall, as quickly as possible and
after appropriate study, promulgate guidelines for the collection and
initial analysis of energy data by other Federal agencies, after pub-
lished notice in the Federal Register and opportunity for comment.
Such guidelines shall be designed to make such data compatible, use-
ful, and comprehensive. Where relevant data is not now available or
reliable and is beyond the authority of other agencies to collect, then
the Council shall recommend to the Congress the enactment of appro-
priate legislation. Pending congressional consideration, the Council
may gather such data directly. The Council shall have the power to
require by special or general orders any person to submit in writing
such energy data as the Council may prescribe. Such submission shall
be made within such reasonable period and under oath or otherwise as
the Council may direct.
(f) (1) In exercising its powers, functions, and duties, the Council
shall-
(A) consult with the Interagency Energy Advisory Commit-
tee established under subsection (g) of this section and with
representatives of science, industry, agriculture, labor, conserva-
tion organizations, State and local governments, and other groups,
as it deems advisable; and
(B) employ a competent, independent staff which shall utilize,
to the fullest extent possible, the services, facilities, and informa-
tion (including statistical information) of public and private
agencies and organizations, and individuals, to avoid duplication
of effort and expense, thus assuring that the Council's activities
will not unnecessarily overlap or conflict with similar activities
authorized by law and performed by other agencies.
(2) Members of the Council shall serve full ,time and the Chair-
man of the Council shall be compensated at the rate provided for
level II of the Executive Schedule Pay Rates (5 U.S.C. 5313). The
other members of the Council shall be compensated at the rate pro-
vided for level IV of the Executive Schedule Pay Rates (5 U.S.C.
5315).
(3) The Council may employ such officers and employees as may
be necessary to carry out its functions. The Council may also employ
and fix the compensation of such experts, consultants, or contractors
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to conduct detailed studies as may be necessary for the carrying out
of its functions to the same extent as is authorized under section 31.09
of title 5, United States Code (but without regard to the last sentence
thereof).
(g) (1) There is also created in the Executive Office of the Presi-
dent an Interagency Energy Resources Advisory Committee (herein-
after in this section referred to as the "Energy Committee") . The
Energy Committee shall be composed of the Chairman of the Council,
the Secretary of the Interior, the Administrator of the Federal Energy
Administration, the Administrator of the Energy Research and De-
velopment Administration, Secretary of State, the Secretary of the
Treasury, Director, Office of Management and Budget, and such other
officials of the Federal Government as the President may designate.
The Chairman of the Energy Committee shall be selected by its
members.
(2) It sha:'1 be the duty and function of the Energy Committee to
assist the Council in insuring communication and coordination among
Energy Committee member agencies in the development and imple-
mentation of energy policy or the management of energy resources,
and in such other matters as the Council may determine.
(3) The Chairman of the Energy Committee may not refuse to
testify before the Congress or any duly authorized committee thereof
regarding the activities of the Energy Committee or other matters
concerning interagency coordination of energy policy and activities.
(4) This subsection (g) shall be effective no later than sixty days
after the. enactment of this Act or such earlier date as the President
shall prescribe and publish in. the Federal Register, and shall terminate
upon enactment of a permanent department responsible for energy
and natural resources or two years after such effective date, whichever
shall occur first.
(h) The Council shall prepare and submit to the President and the
Congress on or before January 1, 1975, and annually thereafter, an
energy report to accompany the energy plan. This report shall
include-
(1) an estimate of energy needs of the United States for the
ensuing te,'i-year period to meet the requirements of the general
welfare of the people of the United States and the commercial
and indust::?ial life of the Nation;
(2) an estimate of the domestic and foreign energy supply on
which the 17nited States will be expected to rely to meet such needs
in an economic manner with due regard for the protection of the
environment, the conservation of natural resources, and the im-
plementation of foreign policy objectives;
(3) current and foreseeable trends in the price, quality, man-
agement, and utilization of energy resources and the effects of
those trends on the social, environmental, economic, and other re-
quirements of the Nation;
(4) a catalog of research and development efforts funded by
the Federal Government to develop new technologies, to forestall
energy shor `.ages, to reduce waste, to foster recycling, and to en-
courage conservation practices:; and recommendations for devel-
oping technology capable of improving the quality of the en-
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vironment, increasing efficiency, and protecting employee health
and safety in energy industries;
(5) recommendations for improving the energy data and in-
formation available to the Federal agencies by improving moni-
toring systems, standardizing data, and securing additional needed
information ;
(6) a review and appraisal of the adequacy and appropriate-
ness of technologies, procedures, and practices (including com-
petitive and regulatory practices), employed by Federal, State,
and local governments and nongovernmental entities to achieve
the purposes of this section ; and
(7) recommendations concerning the level of funding for the
development and application of new technologies, as well as new
procedures and practices which the Council may determine to be
required to achieve the purposes of this section and improve en-
ergy management and conservation together with recommenda-
tions for additional legislation, including the preparation of the
reorganization recommendations required by section 110 of this
Act.
(i) (1) Copies of any communications, documents, reports, or infor-
mation received or sent by any member of the Council shall be made
available to the public upon identifiable request, and at reasonable
cost, unless such information may not be publicly released under the
terns of paragraph (2) of this subsection.
(2) The Council or any officer or employee of the Council shall not
disclose information obtained under this section which concerns or
relates to a trade secret referred to in section 1905 of title 18, United
States Code, except that such information may be disclosed in a man-
ner designed to preserve its confidentiality-
(A) to other Federal Government departments, agencies, and
officials for official use upon request;
(B) to committees of Congress having jurisdiction over the
subject matter to which the information relates;
(C) to a court in any judicial proceeding under court order
formulated to preserve the confidentiality of such information
without impairing the proceedings; and
(D) to the public in order to protect their health and safety
after notice and opportunity for comment in writing or for dis-
cussion in closed session within fifteen days by the party to whom
the information pertains (if the delay resulting from such notice
and opportunity for comment would not be detrimental to the
public health and safety).
In no event shall the names or other means of identification of injured
persons be made public without their express written consent. Noth-
ing contained in this section shall be deemed to require the release of
any information described by subsection (b) of section 552, title 5,
United States Code, or which is otherwise protected by law from
disclosure to the public.
(j) (1) The Comptroller General of the United States shall con-
tinuously monitor and evaluate the operations of the Council includ-
ing its reporting requirements. Upon his own initiative or upon the
request of a committee of the Congress or, to the extent personnel are
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avaiia-tile, linen tire. rernrest, of a Member of Congrce.ss, the Comptroller
General :;1- all (A) conduct studies of existing statutes and regulations
groverniu'r Federal energy prograans, (B) review the policies and
pr;tct; es of Fedcral agencies adm-austering such programs, (C) re-
view :end evaluate the procedures followed by such agencies, in gather-
ing, analysing, and interpreting energy statistics, data, and informa-
tion related I-o the msna:geme-at and conservation of energy, including
but not limited to data related to energy costs, demand, industry
structure, environ=rental impacts-, and research and development, and
(1)) evaluate particular nrolects or programs. The Comptroller Gen-
eral shall have ee "ess to such data from any public or private source
whatever, notwithstanding the provisions of any other law, as is nec-
s._ trv to car-Y out his responsibilities under this section and shall
report to t re Congress at such times as he deems appropriate with re-
spect t o t+ edc r rt energy programs, including his recommendations
for such modifications in existing laws, regulations, procedures, and
practices as will, in his judgment, best serve the Congress in the
formulation of a national energy pol icy.
(2) In carrying out his responsibilities as provided in paragraph
(1) of this subsection, the Comptroller General shall give particular
attention to the need for unproved coordination of the work of the
l+ederal Government related to energy policies and programs and the
attendant teed for a central source of energy statistics and infor-
mation.
(3) The Comptroller General or any of his authorized representa-
tives in carrying out his responsibilities under this section shall have
access to :airy books, documents, papers, statistics, data, information,
and records of any private. organization relating to the management
and conservation of energy, including but not limited to energy costs,
demand, supply, reserves, industry structure, environmental impacts,
and research and development. The Comptroller General may require
any pr?iveic organization to submit in writing such energy data as he
may preser be. Such submission shall. be made within such reasonable
period and under oath or otherwise as he may direct.
(4) TO assist in carrying out his responsibilities, the Comptroller
General may sign and issue subpenas requiring the production of the
books, doe.r.ments, papers, statistics, data, information, and records
referred to in paragraph (3) of this subsection.
(ii) In case of contumacy, or refusal to obey asuhpena of the Com-
t.rolier General issued under Iris section, by any person who resides,
is found or transacts business within the jurisdiction of any district
court of thc United States, such district court shall, upon the request
of the Cornotroller General, have jurisdiction to issue to such person
an order requiring such person to comply forthwith. Failure to obey
such an order is punishable by such court as a contempt of court.
((;) 1iet,orts subrlitted by the Comptroller General to the Congress
shall be available to the public at reasonable cost and upon identifiable
request, except that the Comptroller General may not disclose to the
public any information which could not be disclosed to the public by
the Council under the provisions of subsection (i) (2) if the informa-
tion were held by the Council.
(k) (1) There are authorized to be appropriated to carry out the pro-
visions of this section not to exceed ')1,000,000 for fiscal year ending
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June 30, 1975, $2,000,000 for fiscal year ending June 30, 1976, and
$4,000,000 for each fiscal year thereafter.
(2) All sums appropriated under this section shall remain available
for obligation or expenditure in the fiscal year -for which appropriated
and in the fiscal year next following.
FUTURE REORGANIZATION
SEC. 110. (a) Not later than January 31, 1975, the President shall
transmit to the Congress his recommendations for such organizational
arrangements for the management of energy and natural resources by
the Federal. Government as he deems advisable. Such recommenda-
tions shall include-
(1) the appropriate organizational arrangements for long-term
implementation of the functions of the Energy Research and De-
velopment Administration and of the Federal Energy Adminis-
tration, and the energy related functions of the Department of
the Interior,
(2) the appropriate means for improving coordination among
the energy activities of the Federal Government, and
(3) the appropriate organizational arrangements to coordi-
nate energy functions with other natural resources management
functions of the Federal Government.
(b) This report shall replace and serve the purposes of the report
required by section 15(a) (4) of the Federal Energy Administration
Act.
COORDINATION WITH ENVIRONMENTAL EFFORTS
SEC. 111. The Administrator is authorized to establish programs to
utilize research and development performed by other Federal agen-
cies to minimize the adverse environmental effects of energy projects.
The Administrator of the Environmental Protection Agency, as well
as other affected agencies and departments, shall cooperate fully with
the Administrator in establishing and maintaining such programs,
and in establishing appropriate interagency agreements to develop
cooperative programs and to avoid unnecessary duplication.
TITLE II-NUCLEAR SAFETY AND LICENSING
COMMISSION
ESTABLISIIIIENT AND TRANSFERS
SEC. 201. (a) There is established an independent regulatory com-
mission to be known as the Nuclear Safety and Licensing Commission
which shall be composed of five members; each of whom shall be a
citizen of the United States. The President shall designate one mem-
ber of the Commission as Chairman thereof to serve as such during
the pleasure of the President. The Chairman may from time to time
designate any other member of the Commission as Acting Chairman
to act in the place and stead of the Chairman during his absence. The
Chairman (or the Acting Chairman in the absence of the Chairman)
shall preside at all meetings of the Commission and a quorum for the
transaction of business shall consist of at least three members present.
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Each member of the Commission, including the Chairman, shall have
equal responsibility and authority in all decisions and actions of the
Commission, shall have full access to all information relating to the
performance of his duties or responsibilities, and shall have one vote.
Action of the Commission shall be determined by a maiority vote of
the members present. The Chairman (or Acting Chairman in the
absence of the Chairman) shall be the official spokesman of the Com-
mission in its relations with the Congress, Government agencies, per-
sons, or the public, and, on behalf of the Commission, shall see to the
faithful execution of the policies and decisions of the Commission, and
shall report thereon to the. Commission from time to time or as the
Commission may direct. The Commission shall have an official seal
which shall be judicially noticed.
(b) (1) Members of the Commission shall be, appointed by the
President, by and with the advice and consent of the Senate.
(2) The President in selecting the members of the Commission,
shall have due regard to a fair representation of expertise in nuclear
safety technology, health science? and environmental science.
(3) Appointments of members pursuant to this subsection shall be
made in such a, manner that not more than three members of the Com-
mission shall be members of the same political party.
(c) Each member shall serve for a term of five years, each such
terns 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 he designated by the President at the time of appointment.
(d) Such initial appointments shall be submitted to the Senate
within sixty days of the, signing of this Act. Any individual who is
servinn as a member of the Atomic Energy Commission at the time of
the enactment of this Act, and who may be appointed by the President
to the Commission, shall. be appointed for a term designated by the
President, but which term shall terminate not later than the end of his
present term. as a, member of the Atomic Energy Commission, without
regard to the. requirements of subsections (b) (2) and (3) of this
section. Any subsequent appointment of such individuals shall be sub-
ject to the provisions of this section.
(e) The. Chairman shall receive comnensation at the rate now or
hereafter nrese--ibed for offices and positions at level Ti of the Execu-
tive Schedule (5 U.S.C. 5313). Other members shall receive compen-
sation at the rate now or hereafter prescribed for offices and positions
at level III of the Executive Schedule (5 U.S.C. 5314).
(f) Any member of the Commission may be removed by the
President for inefficiency, neglect of duty, or malfeasance in office.
No member of the Commission shall engage in any business, vocation,
or employment other than that of serving as a member of the
Commission.
(g) There are hereby transferred to the Commission all the
licensing and related regulatory functions of the Atomic Energy
Commission, the Chairman and members of the Commission, the
General Counsel, and other officers and components of the Commis-
sion-which functions officers, components, and personnel are excepted
from the, transfer to the Administrator by section 104(c) of this Act.
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(h8 In addition to other functions and personnel transferred to
the ommission, there are also transferred to the Commission-
(1) the Advisory Committee on Reactor Safeguards, the
Atomic Safety and Licensing Board Panel, and the Atomic
Safety and Licensing Appeal Panel;
(2) all personnel whose primary responsibility is research,
related to confirmatory assessment of the safety of reactors li-
censed under the provisions of the Atomic Energy Act of 1954
as amended, and of this Act, with the exception of such personnel
as the Director of the Office of Management and Budget deter-
mines are necessary to assist in reactor developmental research.
LICENSING AND RELATED REGULATORY FUNCTIONS RESPECTING SELECTED
ADMINISTRATION FACILITIES
SEC. 202. Notwithstanding the exclusions provided for in section
110a. or any other provisions of the Atomic Energy Act of 1954, as
amended (42 U.S.C. 2140(a) ), the Nuclear Safety and Licensing
Commission shall, except as otherwise specifically provided by section
110b. of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2140
(b) ), or other law, have licensing and related regulatory authority
pursuant to chapters 6, 7, 8, and 10 of the Atomic Energy Act of 1954,
as amended, as to the following facilities of the Administration :
(1) demonstration Liquid Metal Fast Breeder Reactors when
operated as part of the power generation facilities of an electric
utility system, or when operated in any other manner for the
purpose of demonstrating the commercial feasibility of such a
reactor for a power generation system;
(2) other demonstration nuclear reactors-except those in
existence on the effective date of this Act-when operated as part
of the power generation facilities of an electric utility system,
or when operated in any other manner for the purpose of demon-
strating the commercial feasibility of such a reactor for a power
generation system ;
(3) facilities used primarily for the receipt and storage of high-
level radioactive wastes resulting from activities licensed under
such Act; and
(4) Retrievable Surface Storage Facilities and other facilities
authorized for the express purpose of subsequent long-term stor-
age of high-level radioactive waste generated by the Administra-
tion, which are not used for, or are part of, research and develop-
ment activities.
SEC. 203. (a) There is hereby established in the Nuclear Safety and
Licensing Commission an Office of Nuclear Safety Research under the
direction of a Director of Nuclear Safety Research who shall be ap-
pointed by the Commission, who shall report directly to the Commis-
sion, and who shall serve at the pleasure of and be removable by the
Commission. The Director shall receive compensation at the rate now
or hereafter prescribed for officers and positions at level IV of the
Executive Schedule (5 U.S.C. 5315).
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(b) Subject to the provisions of this Act, the Director of Nuclear
Safety Research shall engage in or contract for research which the
Director recommends and the Commission deems necessary for the
discharge of the licensing and related regulatory functions of the
Commission.
(c) In ordhr to carry out the provisions of subsection (b) of this
section, the Administrator of the Energy Research and Development
Administration and the head of every other Federal agency shall-
(1) cooperate with respect to the establishment of priorities
for the furnishing of such research services as requested by the
Commission for the conduct of its functions;
(2) furnish to the Commission, when requested, on a reim-
bursable basis, through its own facilities or by contract or other
arrangement, such research services as the Commission deems
necessary for the conduct of its functions; and
(3) consult and cooperate with the Nuclear Safety and Licens-
ing Commission on research and development matters of mutual
interest including the provision of information on, and of physi-
cal access to, Administration facilities for the sole purpose of
assisting the Commission to acquire the expertise necessary to
perform its licensing and regulatory functions, as provided in
this Act.
(d) Nothing in subsections (a) and (b) of this section or section 201
of this Act shall be construed to limit in any way the functions of
any office of the Administration relating to the safety of activities
within the jurisdiction of the Administration.
SEc. 204. (f) There is hereby established in the Nuclear Safety and
Licensing Commission a Bureau of Nuclear Materials Security under
the direction of a Director of Nuclear Materials Security, who shall be
appointed by the Commission, who shall report directly to the Com-
?:ussion, and who shall serve at the pleasure of and be removable by the
Commission. The Director shall receive compensation at the rate now
or hereafter prescribed for officers and positions at level IV of the Ex-
ecutive Schedule (5 L.S.C. 5315).
(b) Subject to the provisions of this Act, the Director of Nuclear
Materials Security shall-
(1) recommend regulations relating to safeguarding against
threats, thefts, and sabotage involving special nuclear materials,
high-level radioactive wastes, and nuclear facilities resulting from
all activities licensed under the Atomic Energy Act of 1954, as
amended ;
(2) enforce such regulations which are promulgated by the
Commission;
(3) monitor, test, and recommend upgrading internal account-
ing systems for special nuclear materials licensed under the
Atomic Ener!rv Act of 1954, as amended ;
(4) develop, in consultation and coordination with the Energy
hesearc-h am! Development; Administration, contingency plans
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for dealing with threats, thefts, and sabotage relating to special
nuclear materials, high-level radioactive wastes and nuclear fa-
cilities resulting from all activities licensed under the Atomic
Energy Act of 1954, as amended ;
(5) conduct a thorough review of the desirability and feasi-
bility of establishing a security agency within the Bureau to exe-
cute some or all of the functions of the Bureau, and report his
recommendations to the Commission within one year of the ef-
fective date of this Act; and such report shall be transmitted to
the Congress by the Commission as soon as it is received; and
(6) engage in or contract for research which the Director of Ma-
terials Security deems necessary for the discharge of the functions
of the Bureau.
(c) Nothing in this section shall be construed to limit in any way the
functions of any office of the Energy Research and Development Ad-
ministration relating to the safeguarding of special nuclear materials,
high-level radioactive wastes and nuclear facilities resulting from all
activities within the jurisdiction of the Administration pursuant to
this Act.
Src. 205. (a) Any individual director, ofricer, or employee of a firm
constructing, owning, operating, or supplying the components of any
facility or activity which is licensed or otherwise regulated pursuant
to the Atomic Energy Act of 1954 as amended, or pursuant to this Act,
who obtains information reasonably indicating that such facility or
activity or basic components supplied to such facility or activity-
(1) fails to comply with the Atomic Energy Act of 1954, as
amended, or any applicable rule, regulation, order, or license of
the Commission, or
(2) contains a defect which could create a substantial safety
hazard,
shall immediately notify the Commission of such failure to comply,
or of such defect, unless such person has actual knowledge that the
Commission has been adequately informed of such defect or failure
to comply.
(b) Any person who knowingly fails to provide the notice required
by subsection (a) of this section shall be subject to a civil penalty in
an amount equal to the amount provided by section 234 of the Atomic
Energy Act of 1954, as amended.
(c) Any person who knowingly and willfully fails to provide the
notice required by subsection (a) of this section shall be subject to a
criminal penalty of a fine not to exceed $50,000 or imprisonment of
not more than one year, or both.
(d) The requirements of this section shall be prominently posted
on the premises of any facility licensed or otherwise regulated pur-
suant to the Atomic Energy Act of 1954, as amended.
(e) The Commission is authorized to conduct such reasonable in-
spections and other enforcement activities as needed to insure compli-
ance with the provisions of this section.
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Src. o06. (a) The Commission shall accept requests made in good
faith for relevant studies or reports from any party to a licensing
proceedingm or rulemaking hearing. [f such studies or reports are exist-
ing, the Commission shall make them available to the requesting party
in a timely mann,r'r, subject to appropriate provisions of existing law
regarding public disclosure. If such studies or reports must be espe-
ci-ally prepared, the Atomic Safety and Licensing Board shall deter-
mine, subject to review under normal Commission review procedures,
if such studies or reports are reasonably necessary for the requesting
party to 1-.resent its position in the proceeding or hearing, and are in
the public interest. The requesting party shall be promptly notified of
any determination by the Board or by the Commission.
(h) 't'hen it has been determined that studies or reports must be
especially prepared at the request of a party, the Commission shall
prepare such studies or reports, request them to be prepared by other
Federal agencies, or have them prepared by contract. Such studies or
reports shall be funded by the Commission : Provided, That the Com-
mission shall see:. contributions or reimbursement, in whole or in part,
to the extent that the party requesting such studies or reports is finan-
cially capable of nroviding such contributions or reimbursement.
(c) When the Commission. in making a determination under sub-
section (a) of this section, shall be of the opinion that such determina-
tion involves a. controlling question of law as to which there is
substantial ground for difference of opinion and that an immediate
appeal from the determination may materially advance the ultimate
termination of the litigation, 'it, shall so state in writing in such deter-
mination. The Conrt of Appeals for the District of Columbia may
thereupon, in its discretion, permit an appeal to be taken from such
determinat.ion, if application is made to it within ten days of the time
the requesting party is notified of the determination of the Commis-
sion : Provided, however, That application for an appeal hereunder
shall not stay proceedings of the Commission unless the Commission
or the crnlrt of appeals or a judge thereof shall so order.
(d) Studies and reports made available by the Commission pursuant
to this section shall be offered as part of the record. of the proceeding
or hearing.
APNORMTAr. OCCURRENCE REPORTS
SEC. 204. The Commission shall submit to the Congress each quarter
a. report listing for that period any abnormal occurrences at any facil-
ity or activity, which is licensed or otherwise regulated pursuant to
the Atomic Energy Act of 1954 as amended, or pursuant to this Act.
Each such report shall contain-
(1) the date and place of each occurrence;
(2) tie nature of each incident ;
(3) tee cause or causes of each; and
(4) any action taken to prevent, recurrence:
the Commission shall also provide as wide dissemination to the public
of the information specified in clauses (1) and (2) of this section as
reasonably possible within. five days of its receiving information of
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each abnormal occurrence and shall provide as wide dissemination to
the public as reasonably possible of the information specified in clauses
(3) and (4) as soon as such information becomes available to it.
Snc. 208. (a) The Commission shall appoint a Director of Nuclear
Reactor Safety who shall report directly to the Commission, who shall
serve at the pleasure of and be removable by the Commission. and who
shall receive compensation at the rate' now or hereafter prescribed
for officers and positions at level IV of the Executive Schedule (5
U.S.C. 5315).
(b) There shall be in the Commission not more than nine addi-
tional officers appointed by the Commission who shall serve at the
pleasure of and be removable by the Commission and who shall receive
compensation at the rate now or hereafter prescribed for officers and
positions at level V of the Executive Schedule (5 U.S.C. 5316).
TITLE III-MISCELLANEOUS AND TRANSITIONAL
PROVISIONS
Snc. 301. (a) Except as otherwise provided in this Act, whenever
all of the functions or programs of an agency, or other body, or any
component thereof, affected by this Act, have been transferred from
that agency, or other body, or any component thereof by this Act, the
agency, or other body, or component thereof shall lapse. If an agency,
or other body, or any component thereof, lapses pursuant to the pre-
ceding sentence, each position and office therein which was expressly
authorized by law, or the incumbent of which was authorized to re-
ceive compensation at the rate prescribed for an office or position at
level II, III, IV, or V of the Executive Schedule (5 U.S.C. 5313-
5316), shall lapse.
(b) All orders, determinations, rules, regulations, permits, con-
tracts, certificates, licenses, and privileges-
(1) which have been issued, made, granted, or allowed to be-
come effective by the President, any Federal department or agency
or official thereof, or by a court of competent jurisdiction, in the
performance of functions which are transferred under this Act,
and
(2) which are in effect at the time this Act takes effect,
shall continue in effect according to their terms until modified, ter-
minated, superseded, set aside, or revoked by the President, the Ad-
ministrator, the Commission, or other authorized officials, a court of
competent jurisdiction, or by operation of law.
(c) The provisions of this Act shall not affect any proceeding pend-
ing, at the time this section takes effect, before the Atomic Energy
Commission or any department or agency (or component thereof)
functions of which are transferred by this Act; but such proceedings,
to the extent that they relate to functions so transferred, shall be con-
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tinned. Orders shah be issued in such proceedings, appeals shall be
taken therefrom, and payments shall be made pursuant to such orders,
as if this Act had not been enacted; and orders issued in any such
proceedings shall continue in effect until modified, terminated, super-
seded, or revoked by a duly authorized official, by a court of competent
jurisdiction, or by operation of law. Nothing in this subsection shall
be deemed tic, prohibit the discontinuance or modification of any such
proceeding under the same terms and conditions and to the same extent
that such proceeding could have been discontinued if this Act had not
been enacted..
(d) Except as provided in subsection (f)-
(1) the provisions of this Act shall not affect suits commenced
prier to the date. this Act takes effect, and
(2) in all such suits proceedings shall be had, appeals taken, and
rrdtouients rendered, in the same manner and effect as if this Act
had not been enacted.
(e) No snit, action, or other proceeding commenced by or against
ally office]- ir his official capacity as an officer of any department or
agency. a uncr;ions of which are transferred by this Act, shall abate by
reason of the enactment of this Act. No cause of action by or against
any department or agency, functions of which are transferred by this
Act, by or against any officer thereof in his official capacity shall abate
by reason of the enactment of this Act. Causes of actions, suits, actions,
or other proceedings may be asserted by or against the United States
or such official as may be appropriate and, in any litigation pending
when this section takes effect, the court may at any time, on its own
motion or that of any party, enter any order which will give effect
to the provisions of this section.
(f) If. before the rate on which this Act takes effect, any department
or agency, or officer thereof in his official capacity, is a party to a. suit,
and under this Act any function of such department, agency, or officer
is transf,erreci to the Administrator or Commission, or any other offi-
cial, then such suit shall be continued as if this Act had not been en-
arcted, with the Administrator or Corr,mission, or other official, as the
case may be, substituted.
(g) Final orders and actions of any official or component in the per-
formance of functions transferred by this Act shall be subject to
Judicial review to the same extent and in the same manner as if such or-
ders or actions had been made or taken by the officer, department,
.agency, or instrumentality in the performance of such functions
immeliateiv nreccedirng the effective date of this Act. Any statutory re-
quirements relating to notices, hearings, action upon the record, or ad-
ministrative, review that apply to, any function transferred by this Act
shall apply to the performance of those functions by the Administra-
tor or Commission, or any officer or component.
(h) With respect to any function transferred by this Act and per-
formed after the effective date o-," this Act, reference in any other law
to any department or agency. or any c leer or office, the functions of
which are so transferred, shall be deemed to refer to the Administra-
tion, the Administrator or Commission, or other office or official in
which this Act vests such functions.
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(i) Nothing contained in this Act shall be construed to limit, curtail,
abolish, or terminate any function of the President which he had im-
mediately before the effective date of this Act; or to limit, curtail,
abolish, or terminate his authority to perform such function; or to
limit, curtail, abolish, or terminate his authority to delegate, redele-
gate, or terminate any delegation of functions.
(j) Any reference in this Act to any provision of law shall be
deemed to include, as appropriate, references thereto as now or here-
after amended or supplemented.
(k) Except as may be otherwise expressly provided in this Act, all
functions expressly conferred by this Act shall be in addition to and
not in substitution for functions existing immediately before the
effective date of this Act and transferred by this Act.
INCIDENTAL DISPOSMONS
SEC. 302. The Director of the Office of Management and Budget is
authorized to make such additional incidental dispositions of person-
nel, personnel positions, assets, liabilities, contracts, property, records,
and unexpended balances of appropriations, authorizations, alloca-
tions, and other funds held, used, arising from, available to or to be
made available in connection with functions transferred by this Act, as
he may deem necessary or appropriate to accomplish the intent and
purpose of this Act.
SEc. 303. As used in this Act-
(1) any reference to "function" or "functions" shall be deemed
to include references to duty, obligation, power, authority, re-
sponsibility, right, privilege, and activity, or the plural thereof, as
the case may be ; and
(2) any reference to "perform" or "performance", when used in
relation to functions, shall be deemed to include the exercise of
power, authority, rights, and privileges.
AUTHORIZATION FOR APPROPRIATIONS
SEC. 304. (a) Except as otherwise provided by law, appropriations
made under this Act shall be subject to annual authorization.
(b) Beginninrg in fiscal year 1976, and in every fiscal year there-
after, in the absence of a specific nonnuclear energy research and de-
velopment policy enacted by Congress for the Administration, of the
amounts appropriated for the nondefense programs of the Adminis-
tration, not less than 7 per centum shall be available for each of the
research and development functions assigned to each. of the nonde-
fense Assistant Administrators under subsection. 102(d) of this Act.
(c) Authorization of appropriations to the Commission shall reflect
the need for effective licensing and other regulation of the nuclear
power industry in relation to the growth of such industry.
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COMPTROLLER GENERAL AUDIT
SEC. 305. (a) Section 166. "Comptroller General Audit" of the
Atomic Energy Act of 1954_, as amended, shall be deemed to be ap-
plicable, respectively, to the nuclear and nonnuclear activities under
title I and tot 1e activities under title II.
(b) The Comptroller General of the United States shall audit,
review, and evaluate the implementation of the provisions of title II
of this Act by the Nuclear Safety and Licensing Commission-
(1) Noi, less than fifty-four months nor more than sixty months
after the .affective date of this Act, the Comptroller General shall
prepare and submit to the Congress a report on his audit, which
shall contain, but not be limited to, the following :
(A) an evaluation of the effectiveness of the licensing and
related reL ulatory activities of the Commission and the op-
erations of the Office of Nuclear. Safety Research and the
Bureau of Nuclear Materials Security;
(13) an evaluation of the effect of such Commission activ-
ities on the efficiency, effectiveness, and safety with which
the activities licensed under the Atomic Energy Act of 1954,
as amended, are carried out;
(C'a recommendations concerning any legislation he deems
necessary, and the reasons therefor, for improving the imple-
i) nentstion of title II.
(2 Copies of the report shall be furnished to the Chairnman,
Nuclear safety and Licensing Corrumission, the chairman of the
Senate Ccmmitter>, on (Iovernment Operations, the chairman of
the Committee on Government Opeations of the House of Repre-
sentatives, and the chairman of thr Joint Committee on Atomic
Energy.
RKPORTs
SI:c. 306. (a) The Administrator sha'I, as soon as practicable after
the end of eac-i fiscal year, make a report to the President for sub-
mission to the Congress on the activities of the Administration during
the preceding fiscal year. Such report shall include a statement of the
short-range a.nd long-range goals, priorities, and plans of the Adminis-
tration together with an assessment of the progress made toward the
attainment of those objectives and toward the more effective and effi-
cient, management of the Administration and the coordination of its
functions.
(b) During the first year of operation of the Administration, the
Administrator, in collaboration with the Secretary of Defense, shall
conduct a thorough review of the desirability and feasibility of trans-
ferring to the Department of Defense or other Federal agencies the
functions of the Administrator respecting military application and
restricted data, and within one year after the Administrator first takes
office the Administrator shall make a report to the President, for sub-
mission to the Congress, setting forth his comprehensive analysis, the
principal alternatives., and the specific, recommendations of the
Administrator and the Secretary of Defense.
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(c) The Commission shall, as soon as practicable after the end of
each fiscal year, make a report to the President for submission to the
Congress on the activities of the Commission during the preceding
fiscal year. Such report shall, in layman's language, include a state-
ment of the short-range and long-range goals, priorities, and plans of
the Commission as they relate to the relative benefits, costs, and risks
of commercial nuclear power. Such assessment shall be based on a com-
plete accounting of the Commission's activities and findings in the
following areas-
(1) insuring the safe design of nuclear powerplants and other
licensed facilities;
(2) investigating abnormal occurrences and defects in nuclear
powerplants and other licensed facilities ;
(3) safeguarding special nuclear materials at all stages of the
nuclear fuel cycle;
(4) investigating suspected, attempted, or actual thefts of spe-
cial nuclear materials in the licensed sector and developing con-
tingency plans for dealing with such incidnts ;
(5) insuring the safe, permanent disposal of high-level radio-
active wastes through the licensing of nuclear activities and fa-
cilities ;
(6) protecting the public against the hazards of low-level
radioactive emissions from licensed nuclear activities and facil-
ities.
INFORMATION TO COMMITTEES
SEC. 307. Except as provided in section 304(b) of this Act, the Ad-
ministrator shall keep the appropriate congressional committees fully
and currently informed with respect to all of the Administration's
activities.
TRANSFER OF FUNDS
SEC. 308. The Administrator, when authorized in an appropriation
Act, may, in any fiscal year, transfer funds from one appropriation
to another within the Administration : Provided, That no appropria-
tion shall be either increased or decreased pursuant to this section by
more than 5 per centum of the appropriation of such fiscal year.
CONFORMING AMENDMENTS TO CERTAIN OTHER LAWS
SEC. 309. Subchapter II (relating to Executive Schedule pay rates)
of chapter 53 of title 5, United States Code, is amended as follows :
Atomic (1) SEn on 5313 is amended by striking out "(8) Chairman,
Chairman, Nucleaorl Safety and and Lic ns ngng im lieu one "eon d(8)
adding at the end thereof the followin ~' Commission. ,and by
"(22) Administrator of Energy Research and Development.".
(2) Section 5314 is amended by striking out "(42) Members,
Atomic Energy Commission." and inserting in lieu thereof "(42)
Members, Nuclear Safety and Licensing Commission.", and by
adding at the end thereof the following :
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"(60) -Deputy Administrator, Energy Research and Develop-
311011f Ad;inistration.".
(3) Section 5315 is amended by striking out paragraph (50),
and by adding at the end thereof th~ following :
(- Y) Assistant Administrators, Energy Research and Devel-
opmccnt ActinInistration (6) ;
"(100) Director of Nuclear Reactor Safety, Nuclear Safety
cml Licensing Commission;
"(101) Director of Nuclear Materials Security, Nuclear Safety
and Licensing Commission;
"(10;3) Director of Nuclear Safety Research, Nuclear Safety
and Licensing Commission."
(1') Section 5316 is amended by striking out paragraphs (29),
(69), and (102), by striking out "(62) Director of Regulation,
Atomic Energy Commission."; by striking out "(81) General
Comml of the Atomic Energy Commission," and inserting in
licit tlre-eof "CA) Generals Counsel of the Nuclear Safety and
Lensing Commission.", and by adding at the end thereof the
following :
"(133) General Counsel, Energy Research and Development
Administration.
"(134) Additional officers, Energy Research and Development
Administration (8).
"(135) Additional officers, Nuc",ear Safety and Licensing Com-
mission (9) .".
Snc. 310. If any provision of this Act, or the application thereof
to any person or circumstance, is held valid, the remainder of this
Act, and the application of such provision to other persons or cir-
cumstances, shall not be affected, thereby.
311. (a) This Act shall take etl'ect one hundred and twenty days
after the date of itss, enactment;. or on such earlier date as the President
rnat' lure crand publish in the Federal Register; except: that any of-
( 1w olrc ers ?noridedt for in this Act may be nominated and appointed,
aas provided by this Act, at any time after the date of enactment of this
Act. I+`~i ds aeailal& to any department or agency (or any official or
component thereof ), any functions of which are trr, osferred to the A d-
ministcairn r and the Commission by this Act, may, with the approval of
the I ;esiddnt, be used to pay the compensation and expenses of any
officer appointed pursuant to this subsection until such time as funds
for that purpose are otherwise available.
(b) In the event that any officer required by this Act to be ap-
pointed by and with the advice and consent of the Senate shall not
have enterE,d upon office on the effective date of this Act, the President
may designate any officer, whose appointment was required to be
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made by and with the advice, and consent of the Senate and who was
such an officer immediately prior to the effective date of this Act, to
act in such office until the office is filled as provided in this Act. While
so acting, such persons shall receive compensation at the rates pro-
vided by this Act for the respective offices in which they act.
TITLE IV-SEX DISCRIMINATION
SEc. 401. No person shall on the ground of sox be excluded from
participation in, be denied a license under, be denied the benefits of, or
be subjected to discrimination under any program or activity carried
on or receiving Federal assistance under any title of this Act. This
provision will be enforced through agency provisions and rules simi-
lar to those already established, with respect to racial and other dis-
crimination, under title VI of the Civil Rights Act of 1964. However,
this remedy is not exclusive and will not prejudice or cut off any other
legal remedies available to a discriminatee.
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