With the increase in ERDA's participation from approximately 60 percent, when the management arrangement was established, to 85. percent with the new cost estimates. ERDA on March 10, 1975, proposed to the Joint Committee on Atomic Energy new management arrangements which "are necessary to clearly delineate the manner in: which the project will be managed in the future, in recognition of the major increase in governmental financial involvement and the need to. establish a single-line integrated project management organization." 15 The GAO has reviewed the proposed changes, however, and concluded that: In our opinion, the various documents submitted to the Joint Committee do not clearly delineate the manner in which the project will be managed, but rather contain ambiguous and seemingly inconsistent language regarding responsibilities and authorization and management.' 16 In particular the proposed new arrangements would leave the Project Management Corporation (PMC) to manage the project subject to being overridden by ERDA. PMC in its role as representative of the utilities, however, would have the right to disapprove "any proposed major changes in Project Scope or deviation from the approved reference design or specifications." If PMC were to disagree with such changes, the utilities could terminate their involvement with the project. The GAO comments that: Such inconsistencies suggest to us that ERDA will not be able to exercise the usual management prerogatives in the areas of design and other changes and that it may be subject to restraints in other management areas.1 The GAO report continues: We discussed these inconsistencies with ERDA officials and they told us that, although they believe the documents are clear, ERDA will revise the documents to state that ERDA will manage the project. ERDA officials stated also that the revised four-party contract would clearly state that ERDA would manage theproject." 15 Letter from ERDA to the Joint Committee quoted in ref. 11, p. 4. 16 Ibid., p. 4. 17 Ibid., p. 6. PROCEEDINGS OF A CONGRESSIONAL A REPORT TRANSMITTED BY THE SUBCOMMITTEE ON ENERGY AND HOUSE OF REPRESENTATIVES JAMES A. HALEY, Florida, Chairman ROY A. TAYLOR, North Carolina ROBERT W. KASTENMEIER, Wisconsin LLOYD MEEDS, Washington PAUL E. TSONGAS, Massachusetts ALLAN T. HOWE, Utah JAMES WEAVER, Oregon BOB CARR, Michigan GEORGE MILLER, California THEODORE M. (TED) RISENHOOVER, Oklahoma JAMES J. FLORIO, New Jersey JOE SKUBITZ, Kansas, Ranking Minority Member SAM STEIGER, Arizona DON H. CLAUSEN, California MANUEL LUJAN, JR., New Mexico KEITH G. SEBELIUS, Kansas ALAN STEELMAN, Texas DON YOUNG, Alaska ROBERT E. BAUMAN, Maryland JAMES P. (JIM) JOHNSON, Colorado CHARLES CONKLIN, Staff Director LEE MCELVAIN, General Counsel HENRY R. MYERS, Special Consultant on Nuclear Energy Matters NOTE. The first listed minority member is counterpart to the subcommittee chairman. NINETY-FOURTH CONGRESS JAMES A. HALEY, FLA., CHAIRMAN ROY A. TAYLOR, N.C. ROBERT W. KASTENMEIER, WIS. PATSY T. MINK, HAWAII LLOYD MEEDS, WASH. ROBERT G. STEPHENS, JR., GA. JOSEPH P. VIGORITO, PA. TEND RONCALIO, WYO. JONATHAN B. BINGHAM, NY. JOHN F. SEIBERLING, ONIO HAROLD RUDNELS, N. MEX. 董 ANTONIO BORJA WON PAT, GUAM RON DE LUGO, V.I. BOB ECKHARDT, TEX. GOODLOE E. BYRON, MD. JAIME BENITEZ, P.R. JIM SANTINI, NEV. PAUL E. TSONGAS, MASS. ALLAN T. HOWE, UTAM JAMES WEAVER, GREG. BGB CARR, MICH. GEORGE MILLER, CALIF. THEGOORE M. (TED) RISENHOOVER, JAMES J. FLORIO, N.J. JOE SKUBITZ, KANS. SAM STEIGER, ARIZ. DON H. CLAUSEN, CALIF. PHILIP E. RUPPE, MICH. MANUEL LUJAN, JR., N. MEX. KEITH G. SEBELIUS, KANS. ALAN STEELMAN, TEX. DON YOUNG, ALASKA ROBERT E. BAUMAN, MD. JAMES P. (JIM) JOHNSON, COLO. ROBERT J. LAGOMARSINO, CALIF. SHIRLEY N. PETTIS, CALIF. Members of the Committee on Interior and Insular Affairs U.S. House of Representatives Dear Colleagues: As part of its nuclear oversight responsibility, the The Subcommittee chairman has sent to me a transcript Sincerely JAMES A. HALEY |