News

Watchdog group opposes Magwood appointment, by Rochelle Becker, Alliance for Nuclear Responsibility

Dear Senator Boxer,
I am writing on behalf of the Alliance for Nuclear Responsibility in full agreement with the following letter sent yesterday by the Project on Government Oversight.
Please do not vote to confirm Mr. Magwood
October 14, 2009
Senator Barbara Boxer
Chair, Senate Committee on Environment and Public Works
410 Dirksen Senate Office Building
Washington, DC 20510-6175
Senator James Inhofe
Ranking Member, Senate Committee on Environment and Public Works
456 Dirksen Senate Office Building
Washington, DC 20510-6175
VIA FACSIMILE
Dear Chairwoman Boxer and Ranking Member Inhofe:
At 5:03 p.m. on Friday, October 9, 2009, at the start of the three-day Columbus Day weekend, the White House announced a nomination to the Nuclear Regulatory Commission (NRC). President Obama's nomination of William D. Magwood to the post of Commissioner on the NRC should not be relegated to the shadows, but should be examined in the full light of public and congressional scrutiny.
Mr. Magwood's nomination violates the spirit of President Obama's "Ethics Commitment by Executive Branch Personnel Executive Order" (Ethics Executive Order). Since his retirement from government service in 2005, Mr. Magwood has been actively involved in efforts to advance nuclear industry business opportunities domestically and abroad. He founded Advanced Energy Strategies which provides "expert advice and analysis of U.S. and international energy policy activities; nuclear industry developments and prospects; and supporting business development efforts." Mr. Magwood has also been an investor in and President of Secure Energy North America Corporation, a company that is "working with industry and investors to develop novel approaches to finance new nuclear power stations in the United States." Prior to his government service, Mr. Magwood also managed nuclear policy programs at the Edison Electric Institute, an industry trade association.
Additionally, if Mr. Magwood were to be confirmed, it would undermine the oversight and regulatory function of the NRC. In 1974, the Atomic Energy Commission was abolished and split into two agencies because its dual missions of promotion and regulation of nuclear power was recognized as an inherent conflict of interest. As a result, the Department of Energy (DOE) was given the role of promoting nuclear power, while the NRC was created to regulate, inspect, and enforce regulations of the nuclear power industry. For 11 years, while with the federal government, Mr. Magwood was a strong proponent of nuclear power. First, he served as the Associate Director of DOE's Office of Nuclear Energy, and then, for four years, as the Director. Issues he promoted include the Global Nuclear Energy Partnership (GNEP) and reprocessing of nuclear waste, both programs President Obama cancelled because of nuclear proliferation concerns. We fear that the appointment of Mr. Magwood, whose job has been to promote nuclear power, would be a step back towards the bad government model of the Atomic Energy Commission.
In light of this information, we oppose Mr. Magwood's nomination. Mr. Magwood does not hav e the independence from the nuclear energy industry to effectively regulate the uses of nuclear materials and facilities in the United States, enforce standards necessary to protect health and safety and minimize danger to life or property, and hold licensees accountable for damage to property caused by nuclear accidents. Furthermore, we question just how effective Mr. Magwood could be as a Commissioner in light of the President's Ethics Executive Order requirement that new appointees recuse themselves from "any particular matter involving specific parties that is directly and substantially related to [their] former employer or former clients, including regulations and contracts" for two years.
As more than 120 license and renewal applications are awaiting or will soon be considered for Commission approval, the American public needs a Commissioner with a demonstrated background that would make them an effective regulator. The most notable lack on the NRC is an expert who specializes in security. The NRC could also benefit from the perspective of an appointee with experience in the nuclear Navy, a state level regulatory body, or a public interest group.
In Peace
Rochelle Becker


-----Original Message-----
From: Susan Corbett
Sent: Oct 15, 2009 1:33 PM
To: [email protected]
Cc: Cary Chamblee
Subject: [no-new-nukes-yall] Watchdog group opposes Magwood appointment [1 Attachment]

[Attachment(s) from Susan Corbett included below]


Ben Geman, E&E senior reporter
William Magwood, one of President Obama's nominees for the Nuclear Regulatory Commission, is too close to the industry to be effective and independent, a watchdog group alleges in a new letter to the Senate.
The Project on Government Oversight's letter, sent yesterday to leaders of the Environment and Public Works Committee -- which vets nominees to NRC -- claims the pick "violates the spirit" of President Obama's January executive order that laid out ethics rules for executive branch appointees.
Obama on Friday said he would nominate Magwood and George Apostolakis to the five-member commission. The nominations come as the industry is seeking NRC approval to build the first new U.S. reactors in decades.
POGO's letter alleges that Magwood's former work at the Energy Department, which promotes nuclear technology development and deployment, and subsequent roles are not suited to becoming an independent regulator.
Magwood is the longest-serving director of the DOE civilian nuclear technology program, and his work included the launch of the Nuclear Power 2010 program to help spur new industry reactor license proposals. Other DOE nuclear programs include development of next-generation reactor technologies and research into waste recycling.
After retiring as director of n uclear energy, science and technology in 2005, he founded the consulting firm Advanced Energy Strategies. Magwood is also president of Secure Energy North America Corp., according to a biography of Magwood accompanying his appearance on a think tank panel last year.
"Mr. Magwood does not have the independence from the nuclear energy industry to effectively regulate the uses of nuclear materials and facilities in the United States, enforce standards necessary to protect health and safety and minimize danger to life or property, and hold licensees accountable for damage to property caused by nuclear accidents," states the letter from POGO executive director Danielle Brian.
The letter adds that POGO questions "just how effective Mr. Magwood could be as a Commissioner" in light of the section of Obama's January order stating that appointees for two years should recuse themselves from "any particular matter involving specific parties that is directly and substantially related to my former employer or former clients, including regulations and contracts."
But the nuclear energy industry's main trade group and lobbying arm, the Nuclear Energy Institute, praised Obama's NRC nominations earlier this week.
"The administration's nominees to serve on the Nuclear Regulatory Commission are qualified leaders on nuclear technology issues and have the breadth of experience necessary for an agency that effectively oversees the nation's commercial nuclear industry," Tony Pietrangelo, NEI's senior vice president and chief nuclear officer, said in a statement Tuesday.
Spokespersons for the White House and EPW Chairwoman Barbara Boxer (D-Calif.) did not respond to inquiries about the POGO letter at press time.
Before he worked at DOE, Magwood managed the electric utility research and nuclear policy program at the Edison Electric Institute and was a scientist focusing on nuclear waste at Westinghouse Electric Corp.
Magwood formed Advanced Energy Strategies after leaving DOE. The company's "principal activity is providing expert advice and analysis of U.S. and international energy policy activities; nuclear industry development and prospects; and supporting business development efforts," according to a document describing its work provided by POGO.
It notes that because much of the company's work includes independent assessments of nuclear industry activities, AES does not accept clients from the U.S. commercial nuclear industry, U.S. nuclear utilities, or related organizations. Its clients have included Japan Atomic Energy Agency, Mitsubishi Heavy Industries, Tokyo Electric Power Co., Johns Hopkins University and others.
The other company that Magwood leads, Secure Energy North America Corp., works to "develop opportunities for foreign investment in U.S. energy projects," the document states.
According to a Magwood biography accompanying his appearance on a panel discussion last year hosted by the Center for Strategic and International Studies, this company "is working with industry and investors to develop novel approaches to finance new nuclear power stations in the United States."