7. Division of Inspection

The responsibility for the regular direct inspection of licensees was transferred from this Division to the Division of Compliance during the past year. This change placed the Division of Inspection in a similar role in regard to inspection of licensees that it has exercised for several years in regard to inspection of AEC and contractor operations.

It is through a combination of several assigned functions that the Division of Inspection discharges the following responsibility assigned to it by section 25c of the Atomic Energy Act of 1954:

*the Inspection Division shall be 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 (except those provisions for which the Federal Bureau of Investigation is responsible) and the appropriate rules and regulations of the Commission.

The Division now exercises an overall "monitoring" review of inspections performed of AEC, licensee, and contractor activities. The Division uses three principal techniques to monitor inspections: (a) Continuous screening of audit and inspection reports and findings filed during the year by various AEC headquarters and field staffs; (b) regular field visitations to observe and discuss the functioning of prescribed AEC systems for inspection, audit, or appraisal of contractors and licensees; and (c) detailed analyses of specialized AEC programs for inspection of AEC, contractor, and licensee activities.

In addition to its broad inspection and investigations policydevelopment responsibility, it also performs independent spot check inspections and investigations of AEC, contractor, and licensed operations. These independent inspections and investigations may include such varied things as: adequacy of preparations for startup of a reactor, adequacy of investigation of an operational incident, theft of property from a classified operation, or public release of information on a radiation incident. The results of these inspections and investigations are reported to the responsible management official, and to the General Manager when deemed advisable by the Director, Division of Inspection. Periodic reports from the Division on the functioning of AEC inspections as a whole are submitted to the General Manager.

Role in formulation of regulatory policy.-The Division is not responsible for devising specific regulatory inspection procedures but, through its development of general standards and policies for inspections investigations, the Division may influence and contribute to policy in these areas. The Division is specifically concerned with assuring that there is general consistency between the safety inspection standards used for contractor operations and those used for activities of AEC licensees.

Relationship with other AEC organizations.-The Division of Inspection works directly with all elements of the AEC organizations in two distinctly different roles: first, as an "inspector" in performing inspections and investigations of AEC, contractor, and licensed activities; and, second, it works in a staff capacity with AEC headquarters and field staffs in guiding and assisting them in the development and operation of functional inspection and investigative systems for which they are responsible.

Contacts with other agencies and States.-In the course of its assigned work, the Division has contacts with: the FBI regarding coordination of investigations by the two agencies; Department of Defense and other agencies in performing inspections of licensed DOD facilities; with the Bureau of the Budget regarding development of inspection and appraisal systems; and with local, State, and other Federal agencies in the exchange of investigative information. Contacts with applicants and licensees. Headquarters Inspection Division personnel (stationed in the field) work with AEC field compliance inspection staffs in investigation of licensed operations and other matters involving material or facilities subject to AEC regulatory control. Additionally, technical personnel of the Inspection Division may perform spot-check inspections of licensed reactor operations and facilities.

Role in adjudicatory proceedings.-The Division of Inspection ordinarily has no role in adjudicatory proceedings although its staff is subject to call to testify in formal hearings regarding matters on which they have developed findings.

8. Office of Hearing Examiners

The Office of Hearing Examiners consists of the Chief Hearing Examiner and one or more hearing examiners appointed by and for, and responsible to, the Commission, pursuant to section 11 of the Administrative Procedure Act of 1946, for the conduct of hearings, and the issuance of orders and decisions with respect thereto, in licensing cases. In addition to his duties as a hearing examiner, the Chief Hearing Examiner is responsible to the Commission for preparing and maintaining hearing calendars of all assigned cases, fixing or approving the time and place for the commencement and reconvening of hearing cases, and assigning hearing examiners to conduct hearings in conformity with the Atomic Energy Act of 1954, as amended, and the Administrative Procedure Act of 1946.

The AEC hearing examiner performs no direct role in the development of general Commission regulatory policies, except to the extent that such policies may be developed in a decision or order which becomes the action of the Commission upon review by the Commission or upon becoming a final order in the absence of such review. The hearing examiner is separated from members of the staff and the Commission and does not communicate with counsel, members of the staff, or parties to a proceeding except upon the record or as otherwise permitted by law. The latter practice permits conferences off the record by the hearing examiner and the parties with respect to the setting of hearing times, stipulations, and other purely procedural

matters.

9. Advisory Committee on Reactor Safeguards

The Advisory Committee on Reactor Safeguards existed prior to 1957 on a nonstatutory basis. In that year the Atomic Energy Act of 1954 was amended to provide in section 29 a specific statutory basis for the Committee's operations, and to require by the terms of section 182b that every application for a "commercial" facility under section 103 or for a developmental facility under section 104b, as well as any application under section 104c for a testing facility, shall be referred to the Committee for review. Section 182b also provides that any application under section 104a for a medical therapy facility or any other application under 104c for a research facility may specifically be referred to the Committee by the Commission. It also requires that the Committee submit a report which shall be made part of the public record except as security classification may prevent disclosure.

Under the review procedure established by these sections of the act, the Committee reviews the safety of all licensed power and test reactors as well as of such other reactors as are from time to time referred to it by the Commission. Reactors in the latter category include (1) power and test reactors other than those subject to licensing, including specifically those which are designated as "second round" reactors and which are owned by the Commission, located on property not owned by the Commission, and connected to existing electric power distribution systems; (2) certain research reactors considered to present special safety problems; (3) reactors to be operated by the Department of Defense under the provisions of section 91b; and (4) reactors covered by section 110a of the act.

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