iLIILIllliILLLI NUREG-1499 Reassessment of the NRC's Program for Protecting Allegers Against Retaliation Manuscript Completed: January 1994 Date Published: January 1994 Team Leader: James Lieberrnan, Director, Office of Enforcement Team Members: John 'E Greeves, Director of Low-Level Waste Management & Decommissioning, NMSS Brian K. Grimes, Director, Division of Operating Reactor Support, NRR Ben B. Hayes, Director, Office of Investigations Jon R. Johnson, Deputy Director, Division of Reactor Projects, Region II Legal Advisor: Jack R. Goldberg, Deputy Assistant General Counsel for Enforcenemt U.S. Nuclear Regulatory Commission Washington, DC 20555--0001 o °....'* gO _!;i_ DISTRIBUTION OF THIS DOCUMENT IS UNLIMITED ReviewTeamReport Abstract i i ii i i i i Abstract On July 6, 1993, the Nuclear Regulatory Commission's (NRC's) Executive Director for Operations established a review team to re,assess the NRC's program for protecting allegers against retaliation. The team evaluated the current system, and solicited comments from various NRC offices, other Federal agencies, licensees, former allegers, and the public. This report is subject to agency review. The report summarizes current processes and gives an overview of current problems. It discusses: (1) ways in which licensees can promote a quality-conscious work environment, in which all employees feel free to raise concerns without fear of retaliation; (2) ways to improve the NRC's overall handling of allegations; (3) the NRC's involvement in the Department of Labor process; (4) related NRC enforcement practices; and (5) methods other than investigation and enforcement that may be useful in treating allegations of potential or actual discrimination. Recommendations are given in each area. i NUREG-1499 iii ReviewTeam Report Tableof Contents ii i iiiiiii II i i _,l Table of Contents Acknowledgements ........................................... viii List of Acronyms ............................................ ix Executive Summary .......................................... ES- 1 Part I: Introduction Section LA: Background and Specific Issues of Concern ................. I.A-1 1. Definitions/Concepts ..................................... I.A-2 2. The Nuclear Work Environment .............................. I.A-4 3. "Protection" of Employees .................................. I.A-9 4. Magnitude of the Issue .................................... I.A-11 5. Historical Context ....................................... I.A-12 Section LB: Review Team Methods .............................. I.B-1 Section L C: Current NRC Response to Issues of Discrimination . ........ I.C-1 1. Receipt of Allegations ..................................... I.C-1 2. Initial Review by the Allegation Review Board ..................... I.C-2 3. Initiation oflnvestigations .................................. I.C-2 4. Department of Labor Pr_ess ................................ I.C-5 5. NRC Enforcement Process .................................. I.C-8 6. Criminal Sanctions ....................................... I.C-12 7. Chilling Effect Letters .................................... I.C-13 Part II" Discussion of Issues Section II.A: Licensee Responsiveness to Concerns .................... II.A-1 1. Licensee Characteristics that Promote a Quality-Conscious Workplace ....... II.A-2 Recommendations ...................................... II.A-7 2. Licensee Employee Concerns Programs .......................... II.A-8 Recommendations ..................................... II.A- 13 3. Additional Contractor Considerations .......................... II.A-13 Recommendations ..................................... II.A- 15 NUREG-1499 v ReviewTeamReport Table of Contents II I I I Section II.B: NRC Responsiveness to Concerns ....................... II.B-1 1. Raising NRC Sensitivity and Priority for Allegations .................. II.B-1 Recommendations ...................................... II.B-6 2. Improving the Treatment of Allegers ........................... II.B-7 Recommendations ..................................... II.B-10 3. Improving the Consistency of Allegation Management ................ II.B-11 Recommendations ..................................... II.B- 18 Section II. C: NRC Investigations During the Department of Labor Process ..... II.C-1 1. Background and Summary of Concerns .......................... II.C-1 2. Department of Labor Investigations and the Adjudicatory Process .......... II.C-2 Recommendations ...................................... II. C-6 3. NRC Involvement in the Department of Labor Process ................ II.C-7 Recommendations ...................................... II.C-9 4. NRC Conducting Its O,vn Investigations of Harassment and Intimidation .... II.C-10 Resource Implications ................................... II.C- 12 Recommendations ..................................... II. C- 16 Section H.D: Related NRC Enforcement Actions ...................... II.D-1 1. Background and Summary of Comments ......................... II.D-1 2. Timing of Enforcement Action ............................... II.D-2 3. Notices of Violation and Civil Penalties .......................... II.D-4 4. Non-Citations to Encourage Settlements .......................... II.D-8 5. Orders and Application of the Deliberate Misconduct Rule .............. II.D-9 Resource Implications ................................... II.D- 10 Recommendations ..................................... II.D- 11 Section ILE: Treatment of Allegations of Actual or Potential Discrimination .... II.E-1 1. Potential Discrimination Cases ............................... II.E-I Recommendations ...................................... II.E-4 2. Allegations of Discrimination ................................ II.E-5 Recommendations ...................................... II.E-9 3. Chilling Effect Letters ................................... II.E-11 Recommendations ..................................... II.E- 16 vi NUREG-1499 ReviewTeamReport Tableof Contents i illill i i I[IL I II Part 111: Conclusions and Recommendations Section Ill.A: Conclusions ................................. III.A- 1 Section Ill.B: Consolidated List of Recommendations ................ III.B-1 Appendix A: Review Team Charter Appendix B: Regulatory History Appendix C: Federal Register Notice Requesting Public Comment Appendix D: Results of Temporary Instruction 2500/028, "Employee Concerns Program" Appendix E: Battelle Study on Assessing Climates for Employees Reporting Safety Concerns Appendix F: Analysis of Allegations, Power Reactor Facilities, 1990-1992 Appendix G: NRC Form 3 NUREG-1499 vii Review'ream Report Acknowledgements ii ml Acknowledgements The Review Team offers its sincere appreciation to Laban L. Coblentz for his assistance in the coordination of this effort and preparation of this report. In addition, the Review Team expresses its appreciation to the following NRC staff members who assisted in this effort: Richard C. Brady Susan S. Chidakel Jean Lee Dawn R. Burrier William D. Hutchison Richard P. Rosano William E. Campbell, Jr. Finally, the Review Team appreciates the cooperation shown by the regions, the program offices, and the Department of Labor during this review. viii NUREG-1499 ReviewTeamReport List of Acronyms i List of Acronyms AEA Atomic Energy Act ALJ Administrative Law Judge AMS Allegation Management System ARB Allegation Review Board CFR Code of Federal Regulations DFI Demand for Information DOJ Department of Justice DOL Department of Labor ECP Employee Concerns Program EDO Executive Director for Operations ERA Energy Reorganization Act FR Federal Register FTE Full-Time Employee H&I Harassment and Intimidation IAEA International Atomic Energy Agency IG Inspector General INSAG International Safety Advisory Group KG&E Kansas Gas and Electric MD Management Directive MOU Memorandum of Understanding MSHA Mine Safety and Health Administration NMSS Office of Nuclear Material Safety and Safeguards NNSN National Nuclear Safety Network NRC Nuclear Regulatory Commission NRR Office of Nuclear Reactor Regulation OE Office of Enforcement OGC Office of the General Counsel O1 Office of Investigations OIG Office of inspector General OSHA Occupational Safety and Health Administration PDR Public Document Room QA Quality Assurance SALP Systematic Assessment of Licensee Performance TI Temporary Instruction TVA Tennessee Valley Authority NUREG-1499 ix ReviewTeamReport ExecutiveSummary Executive Summary On July 6, 1993, the NRC Executive Director for Operations established a review team to reassess the NRC's program for protecting allegers against retaliation (hereafter referred to as "Review Team" or "Team"). A copy of the Review Team's charter is enclosed as Appendix A. The charter asked the Review Team to consider "whether the Commission has taken sufficient steps within its authority to create an atmosphere within the regulated community where individuals with safety concerns feel free to engage in protected activities without fear of retaliation." As directed by the charter, the Team approached this question from several perspectives, considering the actions taken by licensees, their contractors, industry employees, the NRC, and the Department of Labor (DOL). Meetings were held with each of the NRC reg _ and licensing program offices, the NRC Office of Inspector General (OIG), various Federal ag,. :ies, and other concerned parties. Public comments were solicited and considered. Public meetings were also held to solicit opinions from licensees, industry employees, industry and alleger attorneys,