WASHINGTON, DC - The Subcommittee on Energy, chaired by Rep. Fred Upton (R-MI), today held its second hearing as part of the committee’s ‘DOE Modernization’ series. #SubEnergy examined issues associated with the current domestic nuclear supply chain, international market opportunities, and options for future development and deployment of advanced nuclear technologies.
“Today, more than 60 years later, many Atomic Energy Act provisions remain unchanged. Yet the world nuclear outlook has changed dramatically, and certain policies governing domestic involvement and participation in global markets no longer reflect reality," said #SubEnergy Chairman Upton. “The United States is no longer the undisputed leader in civilian nuclear technology and today we looked at a wide array of challenges facing the U.S. nuclear industry, and what is needed at DOE and NRC to maintain U.S. nuclear capabilities and leadership, and the security benefits that flow from that."
Bill Ostendorff, Distinguished Visiting Professor of National Security, U.S. Naval Academy and former NRC Commissioner, discussed the USA’s diminishing role in the international arena, commenting, “The ability of the US to lead in nuclear safety, security and nonproliferation efforts is significantly lessened as commercial activity erodes. To engage internationally, the US must participate."
Mark Peters, Director, Idaho National Laboratory, outlined some of the challenges facing the nuclear industry, stating, “A variety of factors - high capital costs of nuclear technologies, the long time frame between licensing to construction to operation, subsidies for other forms of electricity generation, the low cost of natural gas, and our inability to provide a permanent solution to nuclear waste and used nuclear fuel management - has led to an erosion of the role of nuclear energy in the domestic energy system and of our international nuclear leadership."
Victor McCree, Executive Director of Operations, U.S. Nuclear Regulatory Commission (NRC), spoke to the NRC’s efforts to improve their fee setting structure, commenting, “The NRC understands the importance of a predictable and transparent fee structure, including the need for it to be clear and understandable. To this end, the NRC is overhauling its fee billing to offer greater transparency. We are also testing methods, such as flat fees, to make fees more predictable and transparent. … To further improve fee transparency, the NRC has and continues to engage stakeholders to better understand their interests associated with how information is presented on invoices and reports."
* In June of 2015, the committee requested that the nonpartisan Government Accountability Office review the NRC’s budget development process and fee collection determination in order to increase agency accountability. In March of 2017, GAO publicly released the committee requested report.
Ashley Finan, Policy Director, Nuclear Innovation Alliance, outlined an approach to reforming NRC regulations, stating, “One [approach] that would update the process to be more aligned with private sector development of innovative technology using a regulatory engagement plan, topical reports, and other existing mechanisms; and one that would offer clear and early feedback to investors and developers through an optional conceptual design assessment. This approach maintains the rigor and high standards of the NRC and facilitates the development of safer nuclear technology that produces less waste, or even consumes it. … The Advanced Nuclear Technology Development Act of 2017 (H.R. 590) is one bill that authorizes the NRC to do the crucial work to modernize the licensing process and prepare for new technologies with dedicated funding."
Ed McGinnis, Principal Deputy Assistant Secretary, U.S. Department of Energy, Office of Nuclear Energy, spoke to DOE’s efforts to revitalize the nation’s domestic nuclear fleet, stating, “The Department is working aggressively and with a sense of urgency with the nuclear industry partners to support the continued health and vitality of our nuclear reactor fleet. … The Department is also developing technical solutions to further enhance the economics, performance, and safety of nuclear power plants by supporting the development of technologies such as accident tolerant fuels. … Preserving and improving our commercial nuclear fleet is fundamental to our domestic energy security, economic prosperity, environmental sustainability, and global security objectives."
Maria Korsnick, President and CEO, Nuclear Energy Institute, offered her suggestions for improving the future of the nuclear industry, stating, “First, ensure nuclear power is fairly compensated. Second, reform the federal used fuel management program. Third, reform the Nuclear Regulatory Commission’s fee structure. Fourth, support the timely deployment of accident tolerant fuels, small modular reactors, and advanced reactors. Fifth, streamline the nuclear export review process and expand nuclear project finance opportunities. Sixth, provide federal funding for decontamination and decommissioning of legacy gaseous diffusion plants."
Mr. Art Atkins, Associate Deputy Administrator for Global Material Security, U.S. Department of Energy, National Nuclear Security Administration, spoke to the agency’s desire to continue promoting nuclear commerce abroad to improve security at home, stating, “NNSA is committed to maintaining a balance between the promotion of legitimate nuclear commerce and the national security imperative of controlling the proliferation of weapons usable material, equipment, technology, and expertise."
James Owendoff, Principal Deputy Assistant Secretary, U.S. Department of Energy, Office of Environmental Management (EM), discussed EM’s efforts to reorganize, commenting, “As we work to best position EM for success now and into the future, we will also continue to pursue robust technology development, and infrastructure investments that ensure safe and uninterrupted operations. The recent Department of Energy reorganization aids these efforts through improved alignment of EM, the Office of Science, and our national labs. By leveraging the expertise of the national lab complex and exploring potential project management and contract approaches used by the Office of Science, we will be better positioned to solve complex challenges, manage costs and ensure the highest level of safety at our sites."
“To continue to harvest the economic and national security benefits associated with our domestic nuclear energy infrastructure we must recognize the world looks different than it did at the birth of the nuclear age," concluded full committee Chairman Greg Walden (R-OR). “Consequently, we must take steps to update the relevant policies. These policies must be forward looking to enable innovation and the development and deployment of new advanced nuclear technologies."
The Majority Memorandum, witness testimony, and an archived webcast can be found online HERE.
