___________________

SECY NOTE: THIS SRM, SECY-97-237, AND THE COMMISSION VOTING

RECORD CONTAINING THE VOTE SHEETS OF ALL

COMMISSIONERS WILL BE MADE PUBLICLY AVAILABLE 5

WORKING DAYS FROM THE DATE OF THIS SRM.

November 13, 1997

MEMORANDUM TO: L. Joseph Callan

Executive Director for Operations

FROM: John C. Hoyle /s/

SUBJECT: STAFF REQUIREMENTS - SECY-97-237 - MEMORANDUM

OF UNDERSTANDING WITH THE DEPARTMENT OF

ENERGY

The Commission has approved the proposed Memorandum of

Understanding (MOU) with the Department of Energy (DOE).

The staff should, in consultation with DOE, prepare a revised MOU

that will be available for review and signature by the Secretary

of Energy and the Chairman at the time of completion of the

Lawrence Berkeley National Laboratory Pilot. The revised MOU

should incorporate lessons learned and language that allows DOE

and NRC to seek legislation for NRC regulatory authority for a

specific pilot facility or class of facilities based on

information from the pilot program. Some of the changes below

reflect this approach. The cover letter to DOE transmitting the

signed MOU should mention this need for a revision.

The following editorial changes should be incorporated in the

next revision to the MOU:

1. On the signature page, insert 'NUCLEAR' between 'DOE'

and 'FACILITIES.' Also, the signature block should be

changed to 'Shirley Ann Jackson.'

2. On page 1, line 4, insert 'should' after 'NRC.' In

line 7, insert 'nuclear' after 'DOE.'

3. On page 3, paragraph 3, line 1, add a comma after

'Jackson' and on line 2, add a comma after

'Commission.'

4. On page 4, last paragraph, line 2, replace 'At the end

of the two years' with 'Over the course of this pilot

program,'
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5. On page 5, line 1, add a new sentence after

'facilities' which states: If deemed appropriate, a

decision to seek legislation to give NRC authority to

regulate a specific facility could be made in advance

of the full two-year time frame. In the second full

paragraph, line 3, delete 'at the end of the pilot

program.'

6. On page 7, paragraph 1, line 4, insert 'of 1932' after

'Economy Act.'

7. On page 9, paragraph 4, line 3, insert commas before

and after 'as appropriate.' The comma after the word

"briefings" should be removed. Add a new sentence at

the end of paragraph 4: Each report will be made

available to stakeholders, including the Congress.

Also on page 9, in the last line, insert a hyphen

between 'two' and 'year.'

8. On page 9, insert a new paragraph prior to the last

paragraph on this page:

Within three months after the first year of the

pilot program ends, DOE and NRC personnel will

prepare and provide to the Secretary and the

Commission a report on the advantages and

disadvantages of NRC regulating specific DOE

nuclear facilities based on the first year pilot

program experiences. The report will include a

recommendation on which specific DOE nuclear

facilities or which classes of DOE nuclear

facilities should be externally regulated by NRC

as well as draft legislation to implement the

recommendation. If the Secretary and the

Commission determine that particular DOE nuclear

facilities or classes of DOE nuclear facilities

should be regulated by the NRC, DOE and NRC will

promptly submit draft legislation giving NRC such

authority as part of the FY 2000 legislative

program of the two agencies.

9. On page 10, paragraph 1, line 1, insert 'final' before

'report.' In line 4, insert 'as well as draft

legislation to implement the recommendations' after

'NRC.' In line 6, replace 'prepare' with 'submit.'

Also in line 6, insert 'as part of the FY 2001

legislative program of the two agencies' at the end of

the sentence after 'authority.'

10. On page 11, item C., line 2, remove the comma after

'independently.'
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(EDO) (SECY Suspense: 4/30/98)

cc: Chairman Jackson

Commissioner Dicus

Commissioner Diaz

Commissioner McGaffigan

OGC

CIO

CFO

OCA

OIG

Office Directors, Regions, ACRS, ACNW, ASLBP (via E-Mail)

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