(iii) Secretary of the Commission,

(iv) Director of the Office of Policy Evaluation,

(v.) Director of the Office of Inspector and Auditor,

(vi) Chairman, Vice Chairman, Executive Secretary, and
Members of the Atomic Safety and Licensing Board
Panel,

(vii) Chairman, Vice Chairman and Members of the Atomic
Safety and Licensing Appeal Panel.

(2) With respect to the following officers or successor officers duly established by statute or by the Commission, the Chairman, after consultation with the Executive Director for Operations, shall initiate the appointment, subject to the approval of the Commission, and the Chairman, or a member of the Commission may initiate an action for removal, subject to the approval of the Commission:

(i) Director of Nuclear Reactor Regulation,

(ii) Director of Nuclear Material Safety and Safeguards,

(iii) Director of Nuclear Regulatory Research,

(iv) Director of Inspection and Enforcement,

(v) Director of Standards Development.

(3) The Chairman or a member of the Commission shall initiate the appointment of the Hembers of the Advisory Committee on Reactor Safeguards, subject to the approval of the Commission. The provisions for appointment of the Chairman of the Advisory Committee on Reactor Safeguards and the term of the members shall not be affected by the provisions of this Reorganization Plan.

(4) The Commission shall delegate the function of appointing, removing and supervising the staff of the following offices or successor offices to the respective heads of such offices: General Counsel, Secretary of the Commission, Office of Policy Evaluation, Office of Inspector and Auditor. The Commission shall delegate the functions of appointing, removing and supervising the staff of the following panels and committee to the respective Chairmen thereof: Atomic Safety and Licensing Board Panel, Atomic Safety and Licensing Appeal Panel and Advisory Committee on Reactor Safeguards.

(c) Each member of the Commission shall continue to appoint, remove and supervise the personnel employed in his or her immediate office.

(d) The Commission shall act as provided by subsection 201(a)(1) of the Energy Reorganization Act of 1974, as amended (42 U.S.C. 5841(a)(1)) in the performance of its functions as described in subsections (a) and (b) of this section.

Section 2. (a) All other functions of the Commission, not specified by Section 1 of this Reorganization Plan, are hereby transferred to the Chairman. The Chairman shall be the official spokesman for the Commission, and shall appoint, supervise, and remove, without further action by the Commission, the Directors and staff of the Office of Public Affairs and the Office of Congressional Relations. The Chairman may consult with the Commission as he deems appropriate in exercising this appointment function.

(b) The Chairman shall also be the principal executive officer of the Commission, and shall be responsible to the Commission for developing policy planning and guidance for consideration by the Commission; shall be responsible to the Commission for assuring that the Executive Director for Operations and the staff of the Commission (other than the officers and staff referred to in sections (1)(b)(4), (1)(c) and (2)(a) of this Reorganization Plan) are responsive to the requirements of the Commission in the performance of its functions; shall determine the use and expenditure of funds of the Commission, in accordance with the distribution of appropriated funds according to major programs and purposes approved by the Commission; shall present to the Commission for its consideration the proposals and estimates set forth in subsection (3) of this paragraph; and shall be responsible for the following functions, which he shall delegate, subject to his direction and supervision, to the Executive Director for Operations unless otherwise provided by this Reorganization Plan:

(1) administrative functions of the Commission;

(2) distribution of business among such personnel and among
administrative units and offices of the Commission;

(3)

(4)

preparation of

(i) proposals for the reorganization of the major
offices within the Commission;

(ii) the budget estimate for the Commission; and
(iii) the proposed distribution of appropriated funds
according to major programs and purposes.

appointing and removing without any further action by
the Commission, all officers and employees under the Commis-
sion other than those whose appointment and removal are
specifically provided for by subsections 1(b), (c) and 2(a)
of this Reorganization Plan.

(c) The Chairman as principal executive officer and the Executive Director for Operations shall be governed by the general policies of the Commission and by such regulatory decisions, findings, and determinations, including those for reorganization proposals, budget revisions and distribution of appropriated funds, as the Commission may by law, including this Plan, be authorized to make. The Chairman and the Executive Director for Operations, through the Chairman, shall be responsible for insuring that the Commission is fully and currently informed about matters within its functions.

Section 3. (a) Notwithstanding sections 1 and 2 of this Reorganization Plan, there are hereby transferred to the Chairman all the functions vested in the Commission pertaining to an emergency concerning a particular facility or materials licensed or regulated by the Commission, including the functions of declaring, responding, issuing orders, determining specific policies, advising the civil authorities and the public, directing, and coordinating actions relative to such emergency incident.

(b) The Chairman may delegate the authority to perform such emergency functions, in whole or in part, to any of the other members of the Commission. Such authority may also be delegated or redelegated, in whole or in part, to the staff of the Commission.

(c) In acting under this section, the Chairman, or other member of the Commission delegated authority under subsection (b), shall conform to the policy guidelines of the Commission. To the maximum extent possible under the emergency conditions, the Chairman or other member of the Commission delegated authority under subsection (b), shall inform the Commission of actions taken relative to the emergency.

(d) Following the conclusion of the emergency, the Chairman, or the member of the Commission delegated the emergency functions under subsection (b), shall render a complete and timely report to the Commission on the actions taken during the emergency.

Section 4. (a) The Chairman may make such delegations and provide for such reporting as the Chairman deems necessary, subject to provisions of law and this Reorganization Plan. Any officer or employee under the Commission may communicate directly to the Commission, or to any member of the Commission, whenever in the view of such officer or employee a critical problem of public health and safety or common defense and security is not being properly addressed.

(b) The Executive Director for Operations shall report for all matters to the Chairman.

(c) The function of the Directors of Nuclear Reactor Regulation, Nuclear Material Safety and Safeguards, and Nuclear Regulatory Research of reporting directly to the Commission is hereby transferred so that such officers report to the Executive Director for Operations. The function of receiving such reports: is hereby transferred from the Commission to the Executive Director for Operations.

(d) The heads of the Commission level offices or successor offices, of General Counsel, Secretary to the Commission, Office of Policy Evaluation, Office of Inspector and Auditor, the Atomic Safety and Licensing Board Panel and Appeal Panel, and Advisory Committee on Reactor Safeguards shall continue to report directly to the Commission and the Commission shall continue to receive such reports.

Section 5.

The provisions of this Reorganization Plan shall take effect October 1, 1980, or at such earlier time or times as the President shall specify, but no sooner than the earliest time allowable under Section 906 of Title 5 of the United States Code.

Mr. BROOKS. Mr. Horton, do you wish to make an opening statement?

Mr. HORTON. Yes, thank you, Mr. Chairman.

Mr. Chairman, following the accident at Three Mile Island, two commissions began investigations. One was the President's own Commission on the Accident at Three Mile Island, more popularly called the Kemeny Commission after its Chairman; and the other was a Nuclear Regulatory Commission investigation on the accident, usually referred to as the Rogovin report after its director. Also, by coincidence, the General Accounting Office was finishing up a 5-year evaluation of the NRC.

There are a lot of differences in these reports, but there is one theme that does run through all three. That theme is the lack of management and accountability in the current NRC. Indeed, the GAO report was even entitled, "The Nuclear Regulatory Commission: More Aggressive Leadership Needed."

The real question before us, then, is not, should NRC be reorganized to improve management and accountability, but, how should it be reorganized?

One school of thought wants to eliminate the Commission completely and replace it with a single administrator. This does, of course, have great appeal from an economic and efficiency viewpoint. On the other hand, since the primary purposes of the NRC are safety, policy, and rulemaking, it might be best to have many viewpoints with a diversity of opinion. Therefore, there are those that wish to retain the collegiality of the present Commission, but unfortunately that has proven to be inadequate for management and accountability by three different studies. Obviously, it appears that we need a combination of the management and efficiency of a single manager combined with the diversity of opinion inherent in a collegiality body.

While I intend to keep an open mind and listen to all witnesses, at first glance it does appear that this plan now before us does combine those features. For the first time, the Chairman of the Commission is placed in charge. He will be more than just the chief spokesman. Some very legitimate concerns have been raised that, indeed, the Chairman might be too powerful. This is something that must be considered and should be watched by the appropriate oversight committees, but I think there are adequate safeguards in the plan, and the collegiality of the Commission will still be retained for the very important duties of policy and rulemaking.

Mr. Chairman, the plan before us is not perfect, and we should not be fooled that any organization plan will prevent another Three Mile Island. The plan does, however, appear to be a good step in the right direction of more accountability and better management techniques to make the Nuclear Regulatory Commission a better organization.

Thank you, Mr. Chairman.

Mr. BROOKS. Thank you, Mr. Horton.

Our witnesses today are Harrison Wellford of the Office of Management and Budget and the Chairman and Commissioners of the Nuclear Regulatory Commission.

Our first witness is Harrison Wellford, the Executive Associate Director for Reorganization and Management at OMB, a position he has held for some 4 years.

He has appeared before the committee on many occasions and has always provided us with helpful information on reorganization

matters.

You have been candid and forthright in your statements and helpful to us in our deliberations. We are delighted to have you with us again, Mr. Wellford.

You may proceed.

STATEMENT OF HARRISON WELLFORD, EXECUTIVE ASSOCIATE DIRECTOR FOR REORGANIZATION AND MANAGEMENT, OFFICE ON MANAGEMENT AND BUDGET; ACCOMPANIED BY WILLIAM S. DINSMORE, SENIOR STAFF MEMBER; AND SUSAN CONNOR, LEGAL COUNSEL, PRESIDENT'S REORGANIZATION PROJECT

Mr. WELLFORD. Thank you, Mr. Chairman.

I have with me Bill Dinsmore from OMB, who has been coordinating the task force on the NRC reorganization, and also 'Susan Connor, the legal counsel for the reorganization project at OMB.

Mr. Chairman, I have a fairly lengthy prepared statement I would like to summarize and submit for the record.

Mr. BROOKS. Without objection, it will be included in the record at this point.

[Mr. Wellford's prepared statement follows:]