developmentprojects geared to providing a variety of alternatives for meeting the Nation’s energy needs. As a result

The Federal Court of Appeals’ August 4, 1971 landmark
decision concerning the Calvert Cliffs nuclear power plant

laboratories became involved in the areas of superconducting power transmission systems, energy storage,
solar energy, geothermal resources, and coal gasification.(34)

mission’s licensing procedures. The Court ruled that the

the Commission’s industrial contractors and national

Reorganization
James R. Schlesinger took over the helm of the Atomic
Energy Commission in August 1971, as its twenty-fifth year
as an agency was drawing to a close. American troops
were still in Vietnam and anti-war protests were
widespread. The Nation faced increasing demands for
energy, a leveling out of domestic oi! production, limitations on coal use due to environmental concerns, inadequate natural gas supplies, and field delays in the licensing
and construction of nuclear power plants. The rapid
growth in atomic energy activities in the previous decade
and changing perspectives in nuclear technology clearly
pointed to the need for a substantial reorganization of the
Commission’s operational and regulatory functions. For
nearly a quarter of a century the Commission had focused
research and development toward responding to national
defense requirements, funding and developing new uses
for atomic anergy, and fostering the growth of a competitive and viable nuclear indusiry. The next few years
would see increasing attacks on the Commission’s role as
a regulatory overseerof the nuclear industry, particularly in
the areas of quality of product and public safety.(35)
Asa first order of business, Schlesinger led the Commis-

sion in a comprehensive review of the agency’s functions

and organization. An economist and former assistant
director of the Bureau of the Budget, Schlesinger announced the results of the review in December 1971. The
first broad reorganizaton in ten years would bring together
various related programs previously scattered throughout
the agency. Developmental and operational functions
formerly under the jurisdiction of the general manager
would now be under six assistant general managers for
Energy and Dev slopment Programs, Research, Production
and Management of Nuclear Materials, Environment and
Safety Programs, National Security, and Administration.
Reflecting expanding areas of Commission involvement
were new. divisions of Controlled Thermonuciear

Research, International Security Affairs, and Applied

Technology.(36} The second half of 1971 atso saw a major
revamping of the regulatory organization and functions.

Calvert Cliffs Decision
The Nixon Administration believed that nuclear power,
as an environmentally ‘‘clean” fuel, could help the Nation
produce the increasing supply of energy needed for the
future. On the other hand ponderous licensing procedures
and increasing environmental considerations lengthened
the time necessary to bring nuclear power plants online,
and increased costs to the industry, and ultimately to the
consumer. As Commissioner Doub informed the Atomic
Industrial Forum in October 1971, the Commission harbored noillusions as to the magnitude of the task of trying
to match “the capabilities of a dynamic and complex
technology to the urgent energy and environmental needs

of the country. '(37)

became a pivot point for a major revamping of the Com-

Atomic Energy Commission's regulations for implementing the National Environmental Policy Act of 1969in licens-

ing procedures did not comply in several respects with the
Act, and that the Commission should make an independent review and evaluation of ail environmental effects at
every decision point in the nuclear power plant licensing

process.

Moving swiftly to implement the Court's ruling, the
Commission made substantive changes in environmental
review procedures. Both the Commission and the license
applicant would now be required to consider the total impact of the proposed plant on the environment, including
water quality. In addition, a cost-benefit analysis would
balance the benefits of building the facility against a variety of alternatives.(38) These changes in procedures affected virtually all nuclear power plants whetherlicensed
for operation or under review.
To expedite the additional procedures which the Calvert

Cliff's decision required, Schlesinger made significant

changes in the Commission's regulatory organization, and
added additional personnetto the staff to help with the expanded reactorlicensing workload. Additionat changes tn

1972 further streamlined the regulatory staff. Three direc-

tors consolidated the functions previously performed by
seven divisions. All licensing activities were centered in the
largest of the three, the Directorate of Licensing, headed
by John F. O'Leary, former Director of the Bureau of
Mines.(39)

The Commission’s Last Days
Schlesinger left the Atomic Energy Commission in

January 1973 to become head of the Central Intelligence
Agency. He was succeeded as chairman by Dr. Dixy Lee
Ray, a marine biologist from the state of Washington who
had been appointed to the Commission by President Nixon

in August 1972. The first woman to be chairman of the

Atomic Energy Commission, Ray took over at a time when
the Nation was faced with the monumental task of reconciling energy needs, environmental concerns and
economic goals. More importantly for the Commission,
criticism had begun to mount against an agency that
regulated the very same energy source that it helped to
produce and operate.
In June 1973, President Nixon directed the chairman of
the Atomic Energy Commission to undertake an immediate review of federal and private energy research and
developmentactivities and to recommend an integrated
program for the Nation.(40) The President's energy proposals to Congress the following January reflected the
recommendations submitted by Chairman Ray in the
December 1, 1973 report on ‘The Nation’s Energy
Future.” Because of the energy crisis resulting from the
October Arab oil embargo, the President had chosen to
break tradition and present his energy request to Congress
before delivering his State of the Union address. Both his
proposal for a five-year $10 billion energy research and

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