REORGANIZATION PLAN NO. 1 OF 1980 (Nuclear Regulatory Commission) TUESDAY, MAY 6, 1980 HOUSE OF REPRESENTATIVES, LEGISLATION AND NATIONAL SECURITY SUBCOMMITTEE Washington, D.C. The subcommittee met, pursuant to notice, at 9:40 a.m., in room 2154, Rayburn House Office Building, Hon. Jack Brooks (chairman of the subcommittee) presiding. Present: Representatives Jack Brooks, Don Fuqua, Frank Horton, John N. Erlenborn, and Arlan Stangeland. Also present: Subcommittee staff: Eugene F. Peters, staff director; Cynthia W. Meadow, professional staff member; full committee staff: Elmer W. Henderson, senior counsel; John N. Duncan, minority staff director; Thomas F. Houston, minority professional staff; J. Philip Carlson, minority counsel; and James L. George, minority professional staff, Committee on Government Operations. OPENING STATEMENT OF CHAIRMAN BROOKS Mr. BROOKS. The subcommittee will come to order. This morning we take up the President's Reorganization Plan No. 1 of 1980 reorganization of the Nuclear Regulatory Commission. We will also consider House Resolution 624 which, as you know, is the disapproval resolution I introduced under the procedures established by the Reorganization Act of 1977. As you know, my introduction of that resolution does not indicate any personal preference of action on the plan. As submitted by the President, the plan involves no transfers of functions from or to any other agency of the Government. It does restructure the NRC itself in an attempt to meet some of the concerns of ineffective managment expressed in three recent reports concerning NRC operations. This reorganization plan strengthens the offices of the Chairman and the Executive Director for Operations (EDO). It establishes the Chairman as the chief executive officer for the NRC, responsible for the day-to-day operations of the agency and for the Commission's response to nuclear emergencies. Under the plan, the Chairman will be subject to policies established by the Commission and the oversight authority of the Commission. The Executive Director for Operations would serve as chief line officer, reporting to the Chairman and responsible for such functions as the Chairman directs. In addition, the plan is intended to facilitate the NRC's ability to respond during a nuclear emergency. It specifically authorizes the Chairman to act for the Commission during such an emergency. Flexibility is insured by authorizing delegation of such authority to another member or members of the Commission. An amended plan was transmitted to the Congress by the President yesterday. Changes made in the original plan include the following: One: A greater role by the Commission in the selection of key program officers is called for by the addition of four positions to the list of appointments initiated by the Chairman for the Commission's advice and consent. In addition, a Commissioner or the Chairman can initiate appointments to the Advisory Committee on Reactor Safeguards. Two: An amendment to make explicit that the Chairman and Executive Director of Operations shall keep the Commission fully and currently informed is also included. Three: The Chairman is charged with responsibility for planning the development of policy for consideration and approval by the Commission. The Chairman will delegate to the Executive Director of Operations authority for the day-to-day administration of the agency. After hearing testimony today, we will consider House Resolution 624, which is a resolution to disapprove the plan. By reporting out a disapproval resolution, the committee will provide an opportunity for the House to vote to either approve or reject the plan in its final form. Without objection, the plan and the amendments will be included in the record at this point. [The plan and amendments follow:] REORGANIZATION PLAN NO. 1 OF 1980, TO STRENGTHEN MANAGEMENT OF THE NUCLEAR REGULATORY COMMISSION, PURSUANT TO 5 U.S.C. 903 MARCH 27, 1980.-Message and accompanying papers referred to the Committee on Government Operations and ordered to be printed U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1980 To the Congress of the United States: I am submitting herewith to the Congress Reorganization Plan No. 1 of 1980, under authority vested in me by the Reorganization Act of 1977 (Chapter 9 of Title 5 of the United States Code). The Plan is designed to strengthen management of the Nuclear Regulatory Commission in order to foster safety in all of the agency's activities. The need for more effective management of the Nuclear Regulatory Commission has been amply demonstrated over the past year. The accident at Three Mile Island one year ago revealed serious shortcomings in the agency's ability to respond effectively during a crisis. The lessons learned from that accident go beyond crisis management, however. They provide the impetus for improving the effectiveness of all aspects of the government regulation of nuclear energy. In my statement of December 7, 1979, I responded to the recommendations of my Commission on the Accident at Three Mile Island and set forth steps now being taken to address those recommendations. I stated that I would send to Congress a Reorganization Plan to strengthen the Nuclear Regulatory Commission's ability to regulate nuclear safety. I am submitting that Plan today. The Plan clarifies the duties of the Chairman as principal executive officer. In addition to directing the day-to-day operations of the agency, the Chairman would take charge of the Commission's response to nuclear emergencies and, as principal executive officer, would be guided by Commission policy and subject to Commission oversight. MANAGEMENT PROBLEMS Intensive investigations _ndertaken since the Three Mile Island accident have revealed management problems at the Nuclear Regulatory Commission. These problems must be rectified if the Commission is to be a strong and effective safety regulator. -My Commission, called the Kemeny Commission after its Chairman, Dr. John Kemeny, concluded that the underlying problem at Three Mile Island stemmed not from deficient equipment but rather from compounded human failures. This included the inability of the Nuclear Regulatory Commission to pursue its safety mission effectively in view of its existing management policies and practices. The Kemeny Commission reported a lack of "closure" in the system to ensure that safety issues are raised, analyzed and resolved. Kemeny Commission members also concluded that the Nuclear Regulatory Commission relies too heavily on licensing, and pays insufficient attention to ensuring the safety of plants once they are in operation. -During the course of its investigation, the Kemeny Commission found serious managerial problems at the top of the Nuclear Regulatory Commission. It noted that the Commissioners and the Chairman are unclear as to their respective roles. Uncertain, diffuse leadership of this kind leads to highly compartmentalized offices that operate with little or no effective guidance and little coordination. -A recently completed independent study authorized and funded by the Nuclear Regulatory Commission itself also found serious fault with the Commission's management and called for a major organizational overhaul. The report states that there is no authoritative manager but, instead, five equally responsible Commissioners who deal individually with office directors who, in turn, head their own "independent fiefdoms." -Likewise, a recent report of the General Accounting Office notes the failure of the Nuclear Regulatory Commission to define either the authority of the Chairman or that of the Executive Director for Operations. The staff lacks policy guidance and top management leadership to set priorities and resolve safety issues. There are unreasonable delays in developing policies to guide the licensing and enforcement activities of the agency. The central theme in all three of these studies is the failure of the Nuclear Regulatory Commission to provide unified leadership and consistent direction of the agency's activities. The present statutes contain conflicting and ambiguous provisions for managing the agency. Important corrective actions cannot or will not be taken by the Commission until the laws are changed. Failure to do so constitutes a continuing nuclear safety hazard. The present Reorganization Plan would improve the effectiveness of the Nuclear Regulatory Commission by giving the Chairman the powers he needs to ensure efficient and coherent management in a manner that preserves, in fact enhances, the commission form of organization. COMMISSION Under the proposed Plan, the Commission would continue to be responsible for policy formulation, rulemaking and adjudication as functions which should have collegial deliberation. In addition, the Commission would review and approve proposals by the Chairman concerning key management actions such as personnel decisions affecting top positions which directly support Commission functions, the annual budget, and major staff reorganizations. In carrying out its role, the Commission would have the direct assistance of several Commission-level offices as well as the licensing board, the appeal panel, and the Advisory Committee on Reactor Safeguards. The Plan would not alter the present arrangement whereby the Commission, acting on majority vote, represents the ultimate authority of the Nuclear Regulatory Commission and sets the framework within which the Chairman is to operate. |