M1EMORANDUM OF UNDERSTANDING

1. Purpose 

The U.S. Nuclear Regulatory Commission (NRC), Office of Investigations 

(00), and the Tennessee Valley Authority (TVA), Office of the Inspector 

General (OIG), enter into this agreement to facilitate coordination 

between the two offices. 

2. Background 

Under the Inspector General Act of 1978, as amended (5 USC Appendix 3) 

(Inspector General Act), the OIG is established as an independent office 

which reports to the TVA Board of Directors. The OIG is not subject in 

any way to the authority of TVA's nuclear power organization and cannot 

be prevented "from initiating, carrying out, or completing any audit or 

investigation" (5 USC 3[a]). The OIG is required under the Inspector 

General Act to "conduct, supervise, and coordinate audits and 

investigations relating to the programs and operations of" TVA. As part 

of its responsibility, the OIG has jurisdiction to investigate 

allegations of fraud, waste, and abuse, including allegations of 

wrongdoing in TVA's nuclear program. 

At the same time, the NRC, under the Atomic Energy Act of 1954, as 

amended (42 USC 2011 et seq.), has the authority to conduct such 

investigations as it deems necessary or proper to assist it in exercising 

any authority provided in that Act as well as in the administration or 

enforcement of the Act or any regulations or orders issued thereunder 

(42 USC 2201[c]). Pursuant to that authority, 01 has the responsibility 

to investigate allegations of wrongdoing by nuclear licensees, which 

would include TVA. Therefore, the investigative jurisdictions of 01 and 

the OIG can overlap in some areas. 

Although each agency will independently carry out its statutory 

responsibilities, the agencies agree that administrative efficiency will 

be maximized by cooperation and, as appropriate, the timely exchange of 

information in areas of mutual interest. However, both agencies also 

recognize there are areas where it would be inappropriate for the NRC as 

a regulator to share information with TVA, the licensee, notwithstanding 

the OIG's independence and statutory authority. 

3. Areas of Coordination 

a. The OIG and 01 have the authority to conduct simultaneous, parallel 

investigations. However, as a matter of policy, the OIG generally 

will defer to 01 and hold its investigation in abeyance when 01 is 

actively pursuing a case. In order to avoid duplicative efforts and 

unnecessary parallel investigations, on request 01 will advise the 

OIG (1) if it is actively pursuing a particular case and (2) the 

status of specific cases. Normally, however, 01 will not provide 

the DIG with substantive information regarding an ongoing NRC 

investigation.
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b. On request, the OIG will provide 01 with information regarding its 

investigations, including status reports and substantive 

information. If the OIG believes it has information which (1) may 

be reportable under any NRC requirements or (2) should be provided 

to the appropriate TVA organization because of its potential nuclear 

safety significance, it will inform the responsible TVA organization 

so that organization can (1) take appropriate action and (2) 

determine whether to notify the NRC pursuant to NRC requirements. 

If the OIG cannot advise the appropriate TVA organization of the 

information because to do so might prejudice an investigation, the 

OIG will so advise the TVA Board of Directors and, as appropriate, 

the NRC. 

c. The NRC receives the following categories of allegations which 01 

will not investigate and which fall within the OIG's jurisdiction: 

(1) Allegations within OI's jurisdiction which 01 is not going to 

pursue because of resource constraints or other reasons. 

(2) Allegations involving fraud, waste, or abuse by TVA employees, 

contractors, or subcontractors which do not fall within 01's 

jurisdiction. 

When the NRC receives an allegation which falls within the OIG's 

jurisdiction and which 01 does not plan to investigate, 01 agrees to 

take reasonable steps to obtain the alleger's authorization to 

reveal his/her identity to TVA's OIG. If the alleger consents, O0 

will refer the allegation (including the alleger's identity and any 

information developed by the NRC) to the OIG for appropriate action. 

This does not preclude 01 from taking whatever other action, 

including referral to the NRC staff, it may deem appropriate. If 

the alleger does not agree to disclosure of his/her identity, as 

appropriate, OI will provide the OIG information which will not 

reveal the alleger's identity, but will allow the OIG to investigate 

the concern. 

d. Both the OIG and 01 have the authority to grant confidentiality. 01 

normally will not reveal a confidential source's identity to the OIG 

unless the confidential source agrees. If the confidential source 

agrees to disclosure of his/her identity to the OIG, the OIG will, 

on request, provide confidentiality to the individual in accordance 

with the OIG's policy on confidentiality. 

The OIG will provide 01 with the identity of confidential sources 

when 01 requests those identities in connection with its regulatory 

responsibilities. Unless a confidential source consents to waive 

confidentiality, 01 agrees to treat the identity of such sources as 

confidential in accordance with OI's policy on confidentiality. 

e. 01, the OIG, and the Department of Labor (DOL) have jurisdiction to 

investigate circumstances surrounding alleged violations of Section 

210 of the Energy Reorganization Act of 1974, as amended 

(42 USC 5851). Under the DOL/NRC Memorandum of Understanding and 

the OIG's general working arrangement with DOL, 0I and the OIG
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cooperate with DOL and share information with DOL. Similarly, to 

avoid duplicative efforts, 01 and the OIG agree to share information 

regarding Section 210 cases, as appropriate, and as outlined above 

for investigations in general. 

f. Both 0I and the OIG have independent responsibility to refer 

potential criminal cases to the Department of Justice. The actions 

of either in making a referral are not binding on the other agency, 

and neither is required to notify the other of a referral. 

4. Implementation and Liaison Between Agencies 

The NRC official responsible for implementation of this agreement is the 

01 Director. The TVA official responsible for implementation of this 

agreement is the Inspector General. The working level points of contact 

are the TVA Assistant Inspector General, Investigative Operations, and 

OI's Atlanta Field Office Director. 

The TVA Assistant Inspector General of Investigation Operations and Ol's 

Atlanta Field Office Director, or their designees, shall make good faith 

efforts to meet at least on a quarterly basis to share information of 

mutual interest. 

5. This agreement may be amended or modified upon written agreement by both 

parties to the Agreement. The Agreement may be terminated upon ninety 

(90) days' written notice by either party.

TTective uDate 

This agreement is effective when signed by h parties. 

Dated: 

Signej -P--a

Office of v s ations 

U.S. Nuclear Regulatory 

Commission

Dated:

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Signed: 

Norm n A. Zigross, 

Inspector Genera 

Tennessee Valley Authority

t .