Utli ED STATf-S. NOT FOR PUBLIC DISCLOSURE NUCLEA.R REGUl .Al ORY COMM ISSIOr-l w. SH!I-I ..-Olx. D c . ;<:055S COMMISS i ONEr:: October 13, 2011 The Honorable William L. Daley Chief of Staff The White House Washington, DC 20500 Dear Chief of Staff Daley: As individual members of an independent regulatory commission, we all took oaths to execute this agency's nuclear regulatory mission and to uphold the institution's values, including its Principles of Good Regulation . Our obligation is not only to the agency and its staff, but also to the American people. It is from that foundation that we write to express our grave concerns regarding the leadership and management practices exercised by Nuclear Regulatory Commission (NRC) Chairman Gregory Jaczko. We believe that his actions and behavior are causing serious damage to this institution and are creating a chilled work environment at the NRC. We are concerned that this will adversely affect the NRC's essential mission to protect the health, safety and security of the American people. In a long series of very troubling actions taken by Chairman Jaczko, he has undermined the ability of the Commission to function as prescribed by law and decades of successful practice . Since this current Commission was formed some 18 months ago, after the President nominated and the Senate confirmed the three newest members, we have observed that Chairman Jaczko has: o o o Intimidated and bullied senior career staff to the degree that he has created a high level of fear and anxiety resulting in a chilled work environment; Ordered staff to withhold or modify policy information and recommendations intended for transmission to the Commission; Attempted to intimidate the Advisory Committee on Reactor Safeguards, a legislativelychartered independent group of technical advisors , to prevent it from reviewing certain aspects of NRC's analysis of the Fukushima accident; Ignored the will of the majority of the Commission, contrary to the statutory functions of the Commission; and Interacted with us, his fellow Commissioners, with such intemperance and disrespect that the Commission no longer functions as effectively as it should . o o Recently, on October 5, 2011, Chairman Jaczko appeared as an invited guest at a periodic meeting of the agency's Executive Director for Operations and other senior career executives. According to multiple reports, his comments reflected contempt for the Commission itself and open disdain for the Internal Commission Procedures, a document that embodies governing principles from the NRC's organic legislation-the Energy Reorganization of 1974 and the Reorganization Plan No.1 of 1980. These procedures guide the conduct of the work of the Commission . NOT FOR PUBLIC DISCLOSURE NOT FOR PUBLIC D ISCLOSURE Hon. William Daley Page -2- Over the last 18 months, we have shown Chairman Jaczko considerable deference. Moreover, for the sake of the agency, its staff, and public confidence, we have strived to avoid public displays of disharmony. Unfortunately, our efforts have been received only as encouragement for further transgressions . We are committed to conduct the work of this agency to the best of our ability and despite the items highlighted above and numerous other troubling actions taken by Chairman Jaczko, we have carried out the work before us and will continue to do so. However, Chairman Jaczko's behavior and management practices have become increasingly problematic and erratic. We believe his conquct as Chairman is inconsistent with the NRC's organizational values and impairs the effective execution of the agency's mission. We provided Chairman Jaczko our concerns in the attached memorandum. Sincerely, Commissioner George Apostolakis =z:~ NOT FOR PUBLIC DISCLOSURE Uf !TED STArts NUCLE.AR REGULATORY COMMISc.:.!Of~ Wt. S H f NGTOI~, NOT FOR PUBLIC DISCLOSURE D .C . 20~i6S COMM1SS iO ~ E F; October 13,2011 MEMORANDUM TO: FROM : Chairman Jaczko Commissioner Svinicki Commissioner Apostolakis Commissioner Magwood Commissioner Ostendorff KL~h _ ;~ :~:;-.1 .'f l'!~(: -.. f, As you know, many of us have, on occasion, taken issue with your interpretation of the relative role of the Chairman and the Commission, the role of the Chairman and the EDO, and your approach to working with the Commission to lead this agency. Over the past year, these issues, linked with your troubling personal approach to interacting with us and the senior staff, have intensified. This is a matter of serious concern . We have responsibilities relating to the Commission and the NRC staff, and we are accountable to Congress and the American people. It is from this foundation that we write to express our grave concern that your leadership and management practices are causing serious damage to this institution. First, with respect to your relationship with the Commission, it is not uncommon to have some degree of tension between a Chairman and the members of an independent regulatory commission. But in the present case, your intemperate and disrespectful behavior and conduct towards fellow Commission members is completely unacceptable. A few recent examples include your outburst of temper demonstrated by storming out of an agenda planning meeting while a colleague was speaking, yelling at fellow commissioners on the phone, and termination of an NRC staff detailee's assignment to a Commission office without any advance discussion with the affected Commissioner. Although your relationship with Commissioner colleagues has been a serious problem for some time, it has gotten worse in recent months . Second, your intimidation and bullying of the NRC staff to do things your way has resulted in a work environment with a chilling effect. While you are a champion of openness in Commission deliberations, you have taken steps to discourage open communication between the staff and the Commission . There are a number of recent examples where you or your office directed the staff to withhold certain views from the Commission or strongly criticized the staff's views. Two recent examples include your direction to the EDO to withdraw the SECY paper on the Fukushima Near Term Task Force Report as well as your strong, ill-tempered criticism of the senior staff's recommendations in the post-Fukushima "21 day" report. While you have communicated to us that your primary motivation in seeking to remove the EDO is based on his lack of communications with you, due diligence with numerous senior staff indicates that your motivation stems from instances where the EDO did not follow your view on what to present to the Commission as the staff's policy position . This impairs the ability of the Commission to function effectively; furthermore, your view of the role of the EDO is fundamentally contrary to that of the Commission and the way the NRC has functioned over the years . NOT FOR PUBLIC DISCLOSURE NOT FOR PUBLIC DISCLOSURE Chairman Jaczko Page -2- Third, we are shocked to have received numerous reports from NRC senior staff about your remarks at the October 5 Senior Leadership Meeting. Your comments have been interpreted by those present not only to reflect your disdain for the Internal Commission Procedures, but also your contempt for the Commission. Your remarks to the NRC senior staff undermine the entire Commission. This conduct is of grave concern to us and is absolutely unacceptable. In response to this persistent situation, we have decided to transmit the attached letter to the . White House Chief of Staff to notify him of our serious concerns . We recognize that this is an extraordinary step, but do not believe that you have left us with viable alternatives. NOT FOR PUBLIC DISCLOSURE UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-00(11 CHAIRMAN December 7, 2011 The Honorable William M. Daley Chief of Staff The White House Washington , DC 20500 Dear Mr. Daley: I have read the letter provided to you by my colleagues on October 13th and have appreciated my discussions with you since then. I provide the following response to the issues raised to your attention. I have enjoyed many of my interactions with my new colleagues over the last year and a half, and with about the same number of years of experience on the Commission as all four of them added together, I have a clear understanding and profound appreciation for the Commission structure of government. My sale and passionate focus since I came to the agency in 2005 has been on nuclear safety and security and I have used all of my abilities and the fullest extent of my authorities , first as a Commissioner and now as the Chairman , to further that vital mission. Unfortunately, all too often, when faced with tough policy calls, a majority of this current Commission has taken an approach that is not as protective of public health and safety as I believe is necessary. On m ultiple policy issues, a majority of the Commission has dismissed my policy views , as well as the recommendations of the technical staff, public interest groups, and Members of Congress and established policies that have loosened the agency's safety standards . While I personally worry about the long term affect those decisions will have on the safety and security of the industry we regulate, I hold no personal animosity toward my colleagues for their policy views. The statutes governing the NRC clearly state that nuclear safety policy is made by a majority vote of the Commission. I follow the law, I respect the policy duly established by the Commission even if I disagree with it, and I faithfully execute Commission policy as I oversee the staff of the agency . If there are challenges to the continued effective functioning of the Commission as my colleagues claim, it does not arise from our sometimes stark policy differences, but rather from the lack of understanding the current Commissioners have of their statutory roles at the agency. As the statutes governing the NRC make clear - the duties of the Commission are policymaking, rulemaking , and adjudications. All other functions were transferred to the NRC Chairman under the Reorganization Ptan NO. 1 of 1980 (see attached). This dramatic change was made because the President and the Congress recognized after the accident at Three Mile Island that diffuse leadership of five people responsible for managing the agency was a real threat to strong and effective safety regulation. The Honorable William M. Daley - 2- As the President's Plan transmittal letter to Congress for its consideration stated "placing management responsibilities in the Chairman would result in greater attention to developing and implementing nuclear safety policies and to strict enforcement of the terms of licenses granted by the Commission ..... Freed of management and administrative details, the Commission could then concentrate on the purpose for which that collegial body was created - to deliberate on the formulation of policy and rules to govern nuclear safety and to decide or oversee the disposition of individual cases : All of the issues detailed in the letter you received from my colleagues have their origin in individual Commissioners disagreeing with management decisions I have transparently made to keep the staff as focused on safety as I can possibly keep them . I seek to consult with my colleagues on a great number of the decisions I make whether they are policy or management related. I do not always agree with their suggestions and advice , however, and that has led to a circular claim that if I exercise my statutory authorities I am somehow abusing them . I have attached a detailed description of the facts surrounding the issues my colleagues raised to your attention, but to address a few of the more specific and absurd claims here, I can assure you of the following : There is no chilled work environment around me. I have been a champion of an open and collaborative work environment and I have publicly praised staff who have the courage to state their differing opinions. Morale at the NRC is very healthy as demonstrated by the fact that our employees have rated the agency as one of the best places to work in the entire federal government in 9PM and Partnership for Public Service initiatives, including ranking the NRC number one in leadership and job satisfaction. I have and wi ll continue to work very closely with the staff on the formulation of policy proposals for the Commission. I do this because my responsibility under the law as the principal executive officer of the Commission is for udeveloping policy planning and guidance for consideration by the Commission." It is entirely appropriate and necessary for me to work with the staff of the agency that I manage to carry out that function. I have never attempted to intimidate the Advisory Comm ittee for Reactor Safeguards nor has any member of that Committee expressed concerns about our interactions to me. All of my interactions with ACRS have been appropriate and to ensure the NRC staff would be able to carry out their responsibilities . 1do not ignore the will of the Commission on policy matters. Certainly interpretation and execution of policy is a complex endeavor and I would be happy to engage my colleagues if they have concerns about any specific issues. I will continue to faithfully uphold my statutory obligation to be governed by "the general policies established by the Commission and regularly consult with the General Counsel to ensure I am doing so. D Finally, I would like to address the accusation that I have shown my colleagues such disrespect that the Commission no longer functions effectively. I have a seven year tenure of working collegially and productively with many different Commissioners, Members of Congress, The Honorable William M. Oaley -3- Administration officials, licensees and members of the public. The challenges being highlighted by the current Commissioners began with their arrival at the Commission a year and a half ago. I am disappointed to note that those differences were exacerbated by the lack of my fellow Commissioners' understanding of their role in an emergency during agency's response to the disaster in Japan. As Chairman, I was the one who attended the White House National Security Council meetings to address the situation in Japan. As the chief spokesperson for the agency, I was the one who spoke from the White House press briefing room to reassure the American people. As the principal executive officer, I was the one who managed the agency's emergency staff and made recommendations to the Executive Branch about what protective actions we would take jf an event like this were to occur in the United States. I did this not out of any desire to limit the roles of my colleagues but rather to faithfully carry out my statutory responsibilities. To act in any other manner would not have been consistent with the statute or in the best interest of public health and safety. As the President noted in the Reorganization Plan transmittal letter to Congress, ~ Experience has shown that the Commission as a whole cannot deal expeditiously with emergencies or communicate in a clear, unified voice to civil authorities or the public .... The Plan would correct this situation by specifically authorizing the Chairman to act for the Commission in an emergency .~ Even though it was not possible to involve my four colleagues in the operational management of the event, I strove to keep them fully informed - providing information to them multiple times each day including personally briefing them on developments. I fully appreciated the fact that changing nuclear safety regulations in the U.S. in response to the events in Japan was a Commission responsibility and so a short 10 days after the event, I held a Commission meeting and asked my colleagues to formally vote on the NRC's approach to learning the lessons of Fukushima. Two days later the Commission unanimously approved my proposal for establishing a Lessons-learned Task Force, something the President had also called upon the agency to do. There have always been disagreements among Commissioners. Conflict is inherent in the Commission structure of government and this is not the first time that confusion over differences between the roles and responsibilities of the NRC Chairman and Commissioners has caused communication problems. The NRC Inspector General detailed these challenges in a 1999 report on the structure of the Commission. If there is anything unique at this point in the history of the agency in my opinion, it is the Commissioners' refusal to collegially discuss and attempt to resolve disagreements internally. Since their arrival, I have invited my colleagues to join me in informal Commission discussions to improve communications, offered to participate in facilitated Commission meetings with a trusted third party to promote a better dialogue, and proposed a more transparent voting process so that the Commission could conduct more of its business in public. A majority of my current colleagues have declined to participate in any of these initiatives. But all of the preceding discussion pales in comparison to the importance of nuclear safety and security. Despite this internal discord, I have ensured the Commission has the tools and The Honorable William M. Daley -4- information it needs to continue to make decisions and that the agency staff continues to successfully execute the policy established by the Commission. On that front I am pleased to report tremendous progress. This year the Commission has issued 92 formal decisions, held 38 public Commission meetings, 10 closed Commission meetings, and met for 14 planning sessions to discuss our overall agenda. Because of the work of the Commission and the staff, the agency has made tremendous progress on issues from fire safety, to emergency preparedness, to a safety culture, not to mention license reviews for new nuclear reactors, and the responsible closeout and transparent documentation of the Yucca Mountain license review. The agency dealt with the nuclear safety implications of the Virginia Earthquake and Midwest flooding , and devoted considerable effort to responding to the Fukushima event, including developing a substantive set of safety requirements for US plants to ensure such an unlikely severe accident could not happen here. Please see attached information highlighting many of the accomplishments of the NRC over the past year. I continue to be honored by the opportun ity to seNe the American people as an NRC Commissioner and as the Commission Chairman. I continue to be unbelievably proud of the NRC staff and their single-minded focus on the agency's mission. I continue to be proud of what the agency has been able to accomplish for public health and safety. I do apologize for any distraction the disagreements we have had at the Commission , and which would have been better addressed through internal dialogue, may have caused you . We have dealt with some of the most controversial issues ever put before the agency over the past year and we sometimes argued vigorously over them . As the Chairman of our collegial body, I take responsibility for improving' the level of our dialogue. I will continue to reach out to my Commission colleagues in an effort to improve our communication and I will continue to keep them fully informed. I assure you that I come to work every day to do my job better than the day before. The civil servants I am privileged to work alongside deserve no less. I will continue to manage the NRC staff in a manner that is as protective of public health and safety as established Commission policy will allow and to be as open and transparent as we can . I would be happy to continue our dialogue on these matters at your convenience if you have any additional questions. Sincerely, Gregory B. Jaczko Encl: Transmittal letters and Reorgan ization Plan No. 1 of 1980 Facts about issues raised Agency Accomplishments slides