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Skip all front matter: Jump to Page 16 e RAND Corporation is a nonprot institution that helps improve policy and decisionmaking through research and analysis. is electronic document was made available from www.rand.org as a public service of the RAND Corporation. CHILDREN AND FAMILIES EDUCATION AND THE ARTS ENERGY AND ENVIRONMENT HEALTH AND HEALTH CARE INFRASTRUCTURE AND TRANSPORTATION INTERNATIONAL AFFAIRS LAW AND BUSINESS NATIONAL SECURITY POPULATION AND AGING PUBLIC SAFETY SCIENCE AND TECHNOLOGY TERRORISM AND HOMELAND SECURITY is product is part of the RAND Corporation monograph series. RAND monographs present major research ndings that address the challenges facing the public and private sectors. All RAND mono- graphs undergo rigorous peer review to ensure high standards for research quality and objectivity. Choosing a New Organization for Management and Disposition of Commercial and Defense High-Level Radioactive Materials Lynn E. Davis, Debra Knopman, Michael D. Greenberg, Laurel E. Miller, Abby Doll A RAND INFRASTRUCTURE, SAFETY, AND ENVIRONMENT PROGRAM Environment, Energy, and Economic Development Choosing a New Organization for Management and Disposition of Commercial and Defense High-Level Radioactive Materials Lynn E. Davis, Debra Knopman, Michael D. Greenberg, Laurel E. Miller, Abby Doll With Paul Steinberg, Bruce R. Nardulli, Tom LaTourrette, Noreen Clancy, Zhimin Mao A RAND INFRASTRUCTURE, SAFETY, AND ENVIRONMENT PROGRAM Environment, Energy, and Economic Development Prepared for the U.S. Department of Energy The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. R ® is a registered trademark. © Copyright 2012 RAND Corporation Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. 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ISBN: 978-0-8330-7640-3 This research was sponsored by the U.S. Department of Energy and was conducted in the Environment, Energy, and Economic Development Program within RAND Infrastructure, Safety, and Environment, a division of the RAND Corporation. iii Preface Following the President’s decision in January 2010 to withdraw the license application for a geologic repository at Yucca Mountain, Nevada, the Secretary of Energy estab- lished the Blue Ribbon Commission on America’s Nuclear Future (BRC) to consider alternatives to the nation’s current institutional arrangements for management and disposition of used fuel and defense high-level nuclear waste. In February 2012, the BRC issued its nal report. 1 Among its recommendations was a call for a new, single- purpose organization to be established to replace the Oce of Civilian Radioactive Waste Management (OCRWM) in the U.S. Department of Energy (DOE) that had been established under the authority of the 1982 Nuclear Waste Policy Act. 2 e BRC suggested that a congressionally chartered federal corporation oers the most promising model, but the commission left open the possibility of alterna- tive concepts to achieve the desired ends. In response to this recommendation, DOE asked the RAND Corporation to examine alternative organizational models for such a new management and disposition organization (MDO). Our study supports the work of DOE’s Oce of Nuclear Energy and the Management and Disposition Working Group (MDWG) formed to consider implementation options and activities. The RAND Environment, Energy, and Economic Development Program is research was conducted in the Environment, Energy, and Economic Development Program (EEED) within RAND Infrastructure, Safety, and Environment (ISE). e mission of ISE is to improve the development, operation, use, and protection of soci- ety’s essential physical assets and natural resources and to enhance the related social assets of safety and security of individuals in transit and in their workplaces and com- munities. e EEED research portfolio addresses environmental quality and regula- tion, energy resources and systems, water resources and systems, climate, natural haz- 1 BRC, 2012. 2 Pub. L. 97-425. iv Management and Disposition of Commercial and Defense High-Level Radioactive Materials ards and disasters, and economic development—both domestically and internationally. EEED research is conducted for governments, foundations, and the private sector. Questions or comments about this report should be sent to the project leaders, Debra Knopman (Debra_Knopman@rand.org) and Lynn Davis (Lynn_Davis@rand. org). Information about EEED is available online (http://www.rand.org/ise/environ. html). Inquiries about EEED projects should be sent to the following address: Keith Crane, Director Environment, Energy, and Economic Development Program, ISE RAND Corporation 1200 South Hayes Street Arlington, VA 22202-5050 703-413-1100, x5520 Keith_Crane@rand.org v Contents Preface iii Figures vii Tables ix Summary xi Acknowledgments xxiii Abbreviations xxv CHAPTER ONE Introduction 1 Key Findings of the Blue Ribbon Commission 1 e Concept: A Federal Corporation for Waste Management 2 Study Objectives and Approach 4 CHAPTER TWO Learning Lessons from the Past 7 Assessment of the Prior Organizational Design 7 Governance and Leadership 8 Funding and Budget Control 9 Siting Process 11 Federal Procurement and Personnel Policies 12 Public Trust 13 Conclusions 15 CHAPTER THREE Exploring Potential Organizational Models 17 Comparison of Organizational Models 19 Federal Government Corporation 19 Federally Chartered Private Corporation 28 Independent Government Agency 31 Dierences and Similarities of the Organizational Models 35 Conclusions 37 vi Management and Disposition of Commercial and Defense High-Level Radioactive Materials CHAPTER FOUR Matching Organizational Models to Critical Organizational Attributes 39 Mission and Responsibilities 39 Core Responsibilities 40 Management and Support Responsibilities 43 Performance Goals 43 Critical Organizational Attributes 45 Structural and Procedural Features and Analysis of Organizational Models 50 Discriminating Among Organizational Models 62 CHAPTER FIVE Designing a New Management Disposition Organization 65 Policymakers’ Choices 66 Step 1: e President’s Role 66 Step 2: Congress’s Role 68 Step 3: MDO Funding 70 Step 4: Other Organizational Features 70 Considerations Related to Choice of Organizational Form 73 Government Responsibility for Catastrophic Risk 73 Evolution of the MDO as Its Roles Change Over Time 74 Making the Choices 75 APPENDIXES A. Comparison of the Tennessee Valley Authority and the Bonneville Power Administration 77 B. Summary of Organizational Characteristics of Canadian and Swedish MDOs 89 C. List of Mixed-Ownership Government Corporations and Wholly Owned Government Corporations 91 References 93 [...]... 4 Management and Disposition of Commercial and Defense High-Level Radioactive Materials Finland) and a government agency (France) appear to be successful thus far in their operations. 10 Study Objectives and Approach DOE asked RAND to support its effort to respond to the recommendations of the BRC and to focus on what organization should be created to manage and dispose of used fuel and defense high-level... Management and Disposition of Commercial and Defense High-Level Radioactive Materials ICC Interstate Commerce Commission IG Inspector General IGA independent government agency ISE RAND Infrastructure, Safety, and Environment M&O management and operations MDO management and disposition organization MDWG Management and Disposition Working Group MRS monitored retrievable storage NASA National Aeronautics and. .. the operations of the MDO The influence residing with the President would be available to achieve the siting of the storage and disposal facilities, and the executive branch would be able to influence MDO operations in ways to make certain that the siting tasks are being accomplished; the storage, transport, and disposal of used fuel and nuclear waste xiv Management and Disposition of Commercial and. .. funding Presidential budget and congressional appropriation Self-sustaining Source Presidential budget and congressional appropriation Self-sustaining NOTE: IG = inspector general RAND MG1230-S.3 Policymakers will also need to make decisions as to which committees will exercise oversight over the operations and decisions of the MDO and through what types of testimonies and reports (on, for example,... selection, funding, and regulatory decisions and, in so Summary xvii doing, undermined public trust and confidence in the processes Although Congress does have an important and constructive role to play in the future, there is an inherent tension between a consent-based siting approach and giving Congress the authority to veto agreements made between the MDO and consenting states, tribes, and local communities... to an annual appropriation, and Amtrak (a GOVCORP) has both dedicated funding streams and annual appropriations NASA (an IGA) receives annual appropriations In the case of annual appropriations, the Senate and House will be required to authorize and appropriate the funds, and the MDO will need to submit its budget through OMB and provide the supporting budget justification and documentation to the various... Niedzielski-Eichner, chair of the Management and Disposition Working Group (MDWG), and Christopher Hanson, chair of the MDWG Governance and Funding Integrated Task Team, for their support and guidance during the course of this study We would also like to thank the many knowledgeable individuals who shared their valuable experience and perspectives with the RAND team, and especially Paul Light, who reviewed... Finally, we are indebted to our RAND colleagues, who offered valuable critiques and guidance to us along the way These include James Bartis, Frank Camm, Cynthia Cook, and Keith Crane Lauren Bachman provided efficient and timely administrative support throughout the project Lisa Bernard and James Torr thoroughly edited the document under a tight schedule and did so with great skill and patience Any errors or... Attributes, and Features Responsibilities Performance goals Critical organizational attributes Structural and procedural features RAND MG1230-S.1 model, including public accountability, public interest mission, and linkages to the executive branch and Congress that would ensure the political credibility and influence needed for siting (Indeed, independence from the President and Congress is a primary rationale... government corporation.4 Through legislation, Congress would define the new organization’s mission and responsibilities, its governance structure, its regulatory and legal environment, and its accountability, both to the American public at large and its stakeholders in affected states, tribal lands, and communities and to the utilities operating nuclear plants The BRC further envisioned that the new organization . SECURITY POPULATION AND AGING PUBLIC SAFETY SCIENCE AND TECHNOLOGY TERRORISM AND HOMELAND SECURITY is product is part of the RAND Corporation monograph series. RAND. the operations and decisions of the MDO and through what types of testimonies and reports (on, for example, strategic plans, management and nancial operations) .