possess and use limited quantities as a licensee so long as certain conditions and requirements are met.

The third part in the AEC regulatory process consists of periodic inspections of the licensee's activities to assure compliance with the terms of the license, AEC regulations, and the act. Failure of a licensee, including those under a general license, to comply may result in modification, suspension, or revocation of his license, or criminal prosecution.

ACTIVITIES OF OTHER FEDERAL AGENCIES IN USING RADIOACTIVE MATERIALS OR REGULATING RADIATION HAZARDS

The AEC is not the only Federal agency utilizing radioactive materials or having responsibilities for protecting the public from radiation hazards. The Public Health Service carries out studies on the effects of radiation on man, conducts monitoring activities, and helps train health physicists. The Food and Drug Administration is responsible for assuring that products under its jurisdiction are not harmfully radioactive.

The Interstate Commerce Commission, U.S. Coast Guard, Federal Aviation Agency, Civil Aeronautics Board and Post Office Department perform functions in regulating the interstate and foreign transport of radioactive materials. Their efforts are coordinated by the AEC through its Interagency Committee on Transportation of Radioactive Materials. The Maritime Administration has an important programmatic responsibility for the development and operation of nuclear powered merchant vessels.

The Department of Defense operates reactors and maintains nuclear weapons. It has some responsibility, although not clearly defined, for assuring that the public is not exposed to unacceptable radiation by its activities. The Department of Labor has responsibility for examination of safety practices under Government contracts, some of which may involve radiation uses. The U.S. Weather Bureau, the U.S. Geological Survey, and the Fish and Wildlife Service conduct research and development and studies, some of which concern radiation.

The AEC must coordinate its activities and regulations with those of other Federal agencies using or regulating radiation sources.

As an overall coordinating body, the Federal Radiation Council was established, first by Executive order, and later in 1959 by amendment to the Atomic Energy Act of 1954, to

advise the President with respect to radiation matters, directly or indirectly affecting health, including guidance for all Federal agencies in the formulation of radiation standards and in the establishment and execution of programs of cooperation with States * *

The Council currently consists of the heads of the five Federal agencies most directly concerned with the problems of exposure to radiation-the AEC and the Departments of Health, Education, and Welfare; Defense; Labor; and Commerce, with the Secretary of Health, Education, and Welfare as Chairman. The President has approved

"Radiation Guides" recommended by the Council, applicable to AEC activities, as well as those of all other Federal agencies.

ACTIVITIES OF STATE AND LOCAL GOVERNMENTS

State and local governments have long had responsibility for protecting their citizens from the hazards of many radiation sources, including X-ray machines and naturally radioactive elements such as radium. This has led to a need for coordination between these health and safety responsibilities and AEC's regulatory functions with respect to special nuclear materials and radioactive isotopes produced by radiation. A statutory basis for such coordination was provided in 1959 by the addition of section 274 to the Atomic Energy Act. Section 274 requires AEC to cooperate with the States, and provides that AEC's regulatory responsibility over certain radiation sourcesprincipally radioisotopes may be gradually transferred, under prescribed safeguards and conditions, from AEC to State governments. The section continues the AEC's exclusive responsibility for regulating the construction and operation of reactors.

The method of transfer is by agreement between the State and the AEC, concluded after a Commission finding that the State's proposed program is compatible with the Commission's program and adequate to protect the public health and safety.

To date, no agreements have been signed although one formal and several informal proposals have been received from interested States.

PART II-THE AEC REGULATORY PROCESS

A. AEC REGULATORY ORGANIZATION

A description of the AEC regulatory organization, and the principal positions, divisions, and offices concerned, as prepared by AEC, is contained in volume II at pages 101 to 148. Only a summary description, and several significant points, will be mentioned here.

1. The Commission itself consists of five members, appointed by the President and confirmed by the Senate, who are responsible for the performance of all functions assigned to the Commission by the Atomic Energy Act and other statutes and Executive orders. As stated earlier, these include operational and promotional, as well as regulatory functions. The Chairman of the Commission is designated by the President and serves as Chairman at his pleasure. Commissioners are appointed for 5-year terms, on a staggered basis. The present Commissioners have estimated that they individually spend from one-sixth to one-third of their time on regulatory matters.

2. The General Manager by statute is "the chief executive officer of the Commission * ** who shall discharge such of the administrative and executive functions of the Commission as the Commission may direct." On October 30, 1950, the Commission approved a "Statement of Authority" that the General Manager "is authorized and directed to discharge the executive and administrative functions of the Commission," and that he may "exercise the statutory authorities of the Commission in the discharge of those functions." The Commission apparently interprets this "Statement of Authority" to give the General Manager authority to issue licenses, because the General Manager has, from time to time, "redelegated" authority to the Director of the Division of Licensing and Regulations to issue licenses. Under the current arrangement the Director of that Division may issue licenses for all materials and for all types of facilities except those for which public hearings are required, in which case a decision is made by the hearing examiner or Commission. Under the present arrangement, therefore, the General Manager generally exercises no licensing functions. He does, however, have important responsibilities in the formulation of regulations (rulemaking), and in supervising staff divisions, including those performing technical, licensing and enforcement functions. He is assisted in these areas by a Deputy and various Assistant General Managers.

3. The Assistant General Manager for Regulation and Safety occupies a new position created in late 1959, and is responsible for "planning, coordinating, and directing the activities of the Divisions of Licensing and Regulation, Compliance, and the Office of Health and Safety. The incumbent has been delegated no rulemaking or adjudicatory authority, however, and thus performs essentially an administrative and supervisory function.

4. The Division of Licensing and Regulation is composed of both administrative and technical branches, and licenses all nuclear facilities and materials defined by the act. The Director of this Division has been delegated authority to issue licenses for all nuclear materials, and for all facilities except those required by statute to go to a hearing. In this latter category, the Division, after evaluating the application, formulates a position, but the ultimate licensing decision is made, after a hearing, by the hearing examiner or the Commission. The technical branches of the Division of Licensing and Regulation work closely with the Advisory Committee on Reactor Safeguards (ACRS), and with other technical personnel of AEC, including those at national laboratories. This Division, together with the Office of General Counsel, also develops and recommends to the Commission rules and regulations governing the regulatory process. It is presently staffed by 108 persons (9 professional nontechnical, 53 professional technical, and 46 clerical), representing more than half of the headquarters staff considered by AEC to be engaged principally in the regulatory program.

On November 3, 1960, AEC announced a reorganization of the Division of Licensing and Regulation as a move "which reflects the growth of the Commission's regulatory program and its emphasis on development of safety standards in the peaceful uses of atomic energy." The new organization provides for three new Assistant Directors:

(1) Assistant Director for Nuclear Facilities Safety (with an authorized staff of 50 persons including the reactor hazards evaluation personnel);

(2) Assistant Director for Facilities and Materials Licensing (with an authorized staff of 25, mostly nontechnical personnel to do administrative work); and

(3) Assistant Director for Nuclear Materials Safety (with an authorized staff of 55, including many technical personnel to evaluate hazards of materials such as radioisotopes).

5. The Division of Compliance, established in June of 1960, directs a program for the inspection of licensees (both facilities and materials) to determine whether they are complying with the provisions of the license, AEC regulations and the act, and makes reports to the Commission. The headquarters staff consists of 14 persons, all considered by AEC to be primarily engaged in the regulatory program. Most of the licensee inspections are performed by AEČ field offices, as described in paragraph 13 below. Other inspection functions are performed by the Division of Inspection, as described in paragraph 8 below.

6. The Office of Health and Safety consists of three branches: (1) The Health Protection Branch; (2) the Safety and Fire Protection Branch; and (3) the State-AEC Relations Branch. The Health Protection Branch (eight authorized staff) develops radiation standards and is the contact point with the Federal Radiation Council. The Safety and Fire Protection Branch (nine authorized staff) administers the AEC safety, accident and fire prevention programs at AEC and contract facilities. The State-AEC Relations Branch (six authorized staff) implements programs with States, including those under section 274 permitting transfer of certain regulatory

responsibilities to States. The AEC considers only the six personnel in the State-AEC branch to be engaged "principally" in the regula tory program. The eight personnel in the Health Protection Branch might well be added because of the fundamental importance of radiation standards to the regulatory process.

7. The Office of General Counsel is closely involved in the many phases of the AEC regulatory process, including policy recommendations, rulemaking, and legal advice. Of the 53 persons in the Office of General Counsel, AEC considers 12 (8 professional, 4 clerical) to be "principally" engaged in the regulatory program. These 12 include the Counsel to the Division of Licensing and Regulation and the Division of Compliance, and the 11 persons under his supervision. They advise those divisions, and represent the AEC staff during pub. lic hearings on licensing matters, as part of the "separated staff," described below in paragraph 12.

8. The Division of Inspection, established by section 25 (c) of the act, is responsible for

gathering information to show whether or not the contractors, licensees, and officers and employees of the Commission are complying with the provisions of this Act * * * and the appropriate rules and regulations of the Commission. This division is responsible for inspection of AEC and contractor operations, but, since creation of the new Division of Compliance to inspect licensees, the functions of the Inspection Division with respect to licensees are unclear. AEC considers 4 of the 26 employees in this division to be engaged "principally" in the AEC regulatory program. 9. Other AEC divisions involved in the regulatory process include the Divisions of Reactor Development, Raw Materials, Biology and Medicine, Research, and Production, which furnish to the Director of Licensing and Regulation scientific and technical information and advice on developments in their programs. The research programs on reactor safety carried out under the supervision of the Division of Reactor Development are particularly important, and close coordination between the work of that division and the hazards evaluation staff of the Division of Licensing and Regulation is highly desirable.

Several nontechnical divisions also participate in the regulatory process. The Office of Public Information prepares press releases, including those on regulatory actions. The Division of Finance reviews applications as to the financial qualifications of the applicant. The Division of Nuclear Materials Management provides information concerning scheduling and receipts of nuclear materials.

10. The Office of Hearing Examiners consists of the Chief Hearing Examiner and one or more hearing examiners appointed by, and responsible to, the Commission. The hearing examiners conduct hearings and issue orders and decisions in licensing cases. The decisions of the hearing examiners may be reviewed by the Commission, either upon the filing of exceptions by one of the parties, or on the Commission's own motion. The hearing examiners also conduct hearings and render decisions in contract appeal cases.

11. The Advisory Committee on Reactor Safeguards was created in 1953 by the merger of the Reactor Safeguards Committee and the Advisory Committee on Reactor Location Problems. The 1957 amendments established the ACRS as a statutory committee, and provided that it should review all applications for licenses for power and