[Senate Report 112-66]
[From the U.S. Government Publishing Office]
Calendar No. 146
112th Congress Report
SENATE
1st Session 112-66
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NUCLEAR ENERGY RESEARCH INITIATIVE
IMPROVEMENT ACT
_______
August 30 (legislative day, August 2), 2011.--Ordered to be printed
Filed under authority of the order of the Senate of August 2, 2011
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1067]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1067) to amend the Energy Policy Act of
2005 to require the Secretary of Energy to carry out a research
and development and demonstration program to reduce
manufacturing and construction costs relating to nuclear
reactors, and for other purposes, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill, as amended, do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Nuclear Energy Research Initiative
Improvement Act of 2011''.
SEC. 2. NUCLEAR ENERGY RESEARCH INITIATIVE.
Section 952 of the Energy Policy Act of 2005 (42 U.S.C. 16272) is
amended by striking subsection (a) and inserting the following:
``(a) Nuclear Energy Research Initiative.--
``(1) In general.--The Secretary shall conduct research to
lower the cost of nuclear reactor systems while increasing the
levels of safety and security of the systems, including
research regarding--
``(A) modular and small-scale reactors;
``(B) balance-of-plant issues;
``(C) cost-efficient manufacturing and construction;
``(D) licensing issues; and
``(E) enhanced proliferation controls.
``(2) Consultation requirement.--In carrying out initiatives
under paragraph (1), the Secretary shall consult with--
``(A) the Secretary of Commerce;
``(B) the Secretary of the Treasury;
``(C) the Nuclear Regulatory Commission; and
``(D) any other individual who the Secretary
determines to be necessary.
``(3) Schedule.--
``(A) In general.--Not later than 180 days after the
date of enactment of this paragraph, the Secretary
shall develop and publish on the website of the
Department of Energy a schedule that contains an
outline of a 5-year strategy to lower effectively the
costs of nuclear reactors.
``(B) Public workshops.--In developing the schedule
under subparagraph (A), the Secretary shall conduct
public workshops to provide an opportunity for public
comment.
``(C) Review.--Before the date on which the Secretary
publishes the schedule under subparagraph (A), the
Nuclear Energy Advisory Committee shall conduct a
review of the schedule.
``(D) Annual updates.--
``(i) In general.--Not later than 180 days
after the date on which the Secretary publishes
the schedule under subparagraph (A) and
annually thereafter, the Secretary shall update
the schedule.
``(ii) Public workshops.--In updating the
schedule under clause (i), the Secretary shall
conduct public workshops in accordance with
subparagraph (B).
``(4) Cost sharing.--Section 988 shall apply to initiatives
carried out under this section.''.
Purpose
The purpose of S. 1067 is to require the Secretary of
Energy to carry out a research and development and
demonstration program to reduce manufacturing and construction
costs relating to nuclear reactors while increasing their
levels of safety and security.
Background and Need
The 104 nuclear power plants currently operating in the
United States generate roughly 20 percent of the nation's
electricity, and roughly 70 percent of the nation's carbon-free
electricity. New nuclear power plants will need to be built in
the years ahead to replace existing plants as they age and are
retired, to meet increased energy demand, and to help reduce
carbon dioxide emissions.
The greatest challenge to the deployment of new nuclear
power plants is their large capital cost. A new nuclear power
plant is estimated to cost between $6 billion and $8 billion.
Congress has previously sought to address this problem through
loan guarantees in title XVII of the Energy Policy Act of 2005,
insurance against regulatory delays in section 638 of the
Energy Policy Act of 2005, production tax credits in section
1306 of the Energy Policy Act of 2005, and improvements in the
licensing process in title XXVIII of the Energy Policy Act of
1992. In addition, section 952 of the Energy Policy Act of 2005
established a Nuclear Energy Research Initiative within the
Department of Energy for research and development on nuclear
energy systems.
Additional legislation is needed to make lowering the cost
of nuclear reactor systems a primary objective of the
Department of Energy's Nuclear Energy Research Initiative.
Legislative History
S. 1067 was introduced by Senator Mark Udall on May 25,
2011. Senators Bingaman, Murkowski and Klobuchar are
cosponsors. The Committee on Energy and Natural Resources held
a legislative hearing on S. 1067 on June 7, 2011.
Similar legislation was introduced by Senator Mark Udall in
the 111th Congress as S. 2052 on October 29, 2009. Senators
Bingaman, Murkowski, Crapo, Landrieu, Risch, and Klobuchar were
cosponsors. A companion bill, H.R. 5163, was introduced in the
House of Representatives on April 28, 2010.
The Committee on Energy and Natural Resources held a
legislative hearing on S. 2052 on December 15, 2009. S. Hrg.
111-375. In addition, the Committee held an oversight hearing
on nuclear energy development on March 18, 2009. S. Hrg. 111-
21. The Committee ordered S. 2052 favorably reported at its
business meeting on September 27, 2010.
The Committee ordered S. 1067 favorably reported, with an
amendment in the nature of a substitute, at its business
meeting on July 14, 2011.
Committee Recommendation
The Senate Committee on Energy and Natural Resources, in
open business session on July 14, 2011, by voice vote of a
quorum present recommends that the Senate pass S. 1067.
Senator Sanders asked to be recorded as voting no.
Committee Amendments
During its consideration of S. 1067, the Committee adopted
an amendment in the nature of a substitute, which makes a
number of changes to the bill as introduced. The substitute
amendment replaces the existing general authority for nuclear
energy research and development under the heading ``Nuclear
Energy Research Initiative'' in section 952(a) of the Energy
Policy Act of 2005, and replaces it with the more specific
authority of S. 1067. The substitute also adds new language to
section 952(a)(1) that directs the Secretary shall conduct
research that increases the levels of safety and security, as
well as lowers the cost, of nuclear reactor systems, and
strikes the authorization of appropriations.
Section-by-Section Analysis
Section 1 provides a short title.
Section 2 amends section 952(a) of the Energy Policy Act of
2005 (42 U.S.C. 16272(a)), ``Nuclear Energy Research
Initiative,'' by striking that section and replacing it with
the text of S. 1067, as amended.
Paragraph (1) of section 952(a), as amended, requires the
Secretary of Energy to conduct research to lower the cost of
nuclear reactor systems as part of the Nuclear Energy Research
Initiative while increasing levels of safety and security, and
identifies research on modular and small-scale reactors,
balance-of-plant issues, cost-efficient manufacturing and
construction, licensing issues, and enhanced proliferation
controls as types of research included within the initiative.
Paragraph (2) directs the Secretary of Energy, in carrying
out research under paragraph (1), to consult with the Secretary
of Commerce, the Secretary of the Treasury, the Nuclear
Regulatory Commission, and any other individual who the
Secretary determines to be necessary.
Paragraph (3) directs the Secretary of Energy to develop
and post on the Department of Energy's website a schedule
outlining a five-year strategy to lower effectively the costs
of nuclear reactors. Subparagraphs require the Nuclear Energy
Advisory Committee to review the schedule, and the Secretary to
update it annually. The Secretary is also required to solicit
public comment through public workshops when developing and
updating the schedule.
Paragraph (4) applies the cost-sharing requirements of
section 988 of the Energy Policy Act of 2005 to the Nuclear
Energy Research Initiative.
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office.
S. 1067--Nuclear Energy Research Initiative Improvement Act of 2011
Summary: S. 1067 would authorize the Department of Energy
(DOE) to conduct research related to nuclear reactor systems.
Assuming appropriation of the necessary amounts, CB0 estimates
that implementing S. 1067 would cost $231 million over the
2012-2016 period. Enacting S. 1067 would not affect direct
spending or revenues; therefore, pay-as-you-go procedures do
not apply.
S. 1067 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the federal government: The estimated
budgetary impact of S. 1067 is shown in the following table.
The costs of this legislation fall within budget function 270
(energy).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars
------------------------------------------------------------
2012 2013 2014 2015 2016 2012-2016
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level...................... 50 51 52 52 53 258
Estimated Outlays.................................. 30 45 51 52 53 231
----------------------------------------------------------------------------------------------------------------
Basis of estimate: S. 1067 would authorize DOE to conduct
research aimed at reducing the costs of deploying new
commercial nuclear reactors and increasing levels of safety and
security of such systems. Under the bill, those efforts would
be aimed particularly at developing modular and small-scale
nuclear reactors and technologies to enhance the
sustainability, cost-effectiveness, and security of nuclear
reactors.
Based on information from DOE about the level of effort
required to make appreciable progress toward those objectives,
CB0 estimates that fully funding S. 1057 would require
appropriations totalling $50 million in 2012 and $258 million
over the 2012-2016 period. Assuming appropriation of those
amounts, CB0 estimates that resulting spending would total $231
million over the 2012-2016 period, with additional spending
occurring in later years. Those estimated outlays are based on
historical spending patterns for DOE's nuclear programs.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: S. 1067
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal Costs: Megan Carroll; Impact
on State, Local, and Tribal Governments: Ryan Miller; Impact on
the Private Sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 1067.
The bill is not a regulatory measure in the sense of
imposing Government established standards or significant
economic responsibilities on private individuals and
businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 1067.
Congressionally Directed Spending
S. 1067, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
Executive Communications
The testimony on S. 1067 given by the Deputy Assistant
Secretary for Reactor Technologies, Office of Nuclear Energy,
The U.S. Department of Energy at the Committee's June 7, 2011
hearing as follows:
Statement of John E. Kelly, Deputy Assistant Secretary for Reactor
Technologies, Office of Nuclear Energy, Department of Energy
introduction
Thank you, Chairman Bingaman, Ranking Member Murkowski, and
Members of the Committee. This is my first testimony before
Congress and it is a particular pleasure to be discussing small
modular reactors (SMRs) with you, as they have been an area of
great interest to me for some time.
Before joining the Department of Energy, I co-chaired an
American Nuclear Society special committee that was developing
solutions to generic licensing issues for small modular
reactors. Over the course of the last 18 months, this special
committee, together with the Nuclear Energy Institute, the
Nuclear Regulatory Commission and the nuclear industry, has
made great progress in forging the blueprint for the regulatory
framework for small modular reactors. This progress
demonstrates an increased interest in the licensing and
commercialization of SMRs.
The Administration continues to view nuclear power as an
important clean energy option. Small modular reactors,
specifically reactors that have an electrical output of less
than 300 megawatts, are a promising and innovative technology.
We see these smaller reactors as giving our utilities
additional clean energy options and allowing nuclear power to
penetrate the energy market more broadly. Secretary Chu has
written that, ``if we can develop this technology in the U.S.
and build these reactors with American workers, we will have a
key competitive edge''. SMRs are already inspiring American
innovation and have the potential to significantly enhance U.S.
competiveness.
Since former Assistant Secretary Dr. Pete Miller testified
to this Committee in 2009 on the two bills we are discussing
today, several developments have taken place. A little over a
year ago, we released our fiscal year 2011 budget request,
which proposed a small modular reactor program with $40 million
of funding. The proposal was to spend half of that funding on
R&D efforts and half to initiate a competitive selection
process to establish public-private partnerships to cost-share
design certification and licensing efforts with the selected
winners.
Earlier this year, the Department released its fiscal year
2012 budget request, which included an expanded version of the
small modular reactor program. The request for FY 2012 is $29
million for R&D and $67 million for design certification and
licensing activities. The DOE request outlines a multi-year,
$452 million program that would use cost-shared arrangements
with industry partners to complete design certification
activities for up to two light water small modular reactor
designs. There are several potential SMR vendors pursuing both
LWR designs and more advanced concepts. Many utilities are
interested in this technology to replace aging fossil plants.
The events at the Fukushima nuclear power plants have led
the Nuclear Regulatory Commission to launch a 90-day review to
see what lessons can be learned from the Japanese experience
and applied to U.S. nuclear plants. I want to note that
designers of light water SMRs have already placed major
emphasis on the inherent safety of these reactors. Because of
their lower power level, SMRs have a much lower level of decay
heat and therefore may require less cooling after reactor
shutdown. Several designs incorporate passive safety features
that utilize gravity-driven systems rather than engineered,
pump-driven systems to supply backup cooling in unusual
circumstances. Some concepts use natural circulation for normal
operations, requiring no primary system pumps and providing an
even more robust safety case. In addition, many SMR designs
utilize integral designs for which all major primary components
are located in a single pressure vessel. That feature results
in a much lower susceptibility to certain potential events,
such as a loss of coolant accident, because there is no large
external primary piping. Lastly, most SMRs can be sited
underground, which should improve their security profile and
may enhance seismic safety.
comments on s. 512 and s. 1067
Turning to the two bills under consideration by the
Committee, the Department has a few comments.
S. 1067 gives broad authority to conduct research into
small modular reactors, as well as other connected issues.
S. 512, the Nuclear Power 2021 Act, would require the
Department of Energy to carry out a program to develop and
demonstrate two small modular reactor designs. If passed,
several factors would be important to consider:
The requirement that at least one of the designs
be less than 50 MW is too restrictive; simply having an upper
bound of approximately 300 MWe would be more
appropriate. Cost-shared design development and licensing
should be based on competitive procurements and the market
place should establish the appropriate design parameters.
The licensing effort should include two different
designs.
The program should initially be focused on light
water reactor technology based on the large amount of
experience--both design and licensing--with such reactors.
conclusion
That concludes my formal remarks. Thank you for the
opportunity to testify and I look forward to answering your
questions and working with the Committee to achieve the
administration's goals of energy security and reducing the
nation's carbon emissions.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill S. 1067, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
ENERGY POLICY ACT OF 2005
Public Law 109-58
AN ACT To ensure jobs for our future with secure, affordable, and
reliable energy.
* * * * * * *
TITLE IX--RESEARCH AND DEVELOPMENT
* * * * * * *
Subtitle E--Nuclear Energy
* * * * * * *
SEC. 952. NUCLEAR ENERGY RESEARCH PROGRAMS.
[(a) Nuclear Energy Research Initiative.--The Secretary
shall carry out a Nuclear Energy Research Initiative for
research and development related to nuclear energy.]
(a) Nuclear Energy Research Initiative.--
(1) In general.--The Secretary shall conduct research
to lower the cost of nuclear reactor systems while
increasing the levels of safety and security of the
systems, including research regarding--
(A) modular and small-scale reactors;
(B) balance-of-plant issues;
(C) cost-efficient manufacturing and
construction;
(D) licensing issues; and
(E) enhanced proliferation controls.
(2) Consultation requirement.--In carrying out
initiatives under paragraph (1), the Secretary shall
consult with--
(A) the Secretary of Commerce;
(B) the Secretary of the Treasury;
(C) the Nuclear Regulatory Commission; and
(D) any other individual who the Secretary
determines to be necessary.
(3) Schedule.--
(A) In general.--Not later than 180 days
after the date of enactment of this paragraph,
the Secretary shall develop and publish on the
website of the Department of Energy a schedule
that contains an outline of a 5-year strategy
to lower effectively the costs of nuclear
reactors.
(B) Public workshops.--In developing the
schedule under subparagraph (A), the Secretary
shall conduct public workshops to provide an
opportunity for public comment.
(C) Review.--Before the date on which the
Secretary publishes the schedule under
subparagraph (A), the Nuclear Energy Advisory
Committee shall conduct a review of the
schedule.
(D) Annual updates.--
(i) In general.--Not later than 180
days after the date on which the
Secretary publishes the schedule under
subparagraph (A) and annually
thereafter, the Secretary shall update
the schedule.
(ii) Public workshops.--In updating
the schedule under clause (i), the
Secretary shall conduct public
workshops in accordance with
subparagraph (B).
(4) Cost sharing.--Section 988 shall apply to
initiatives carried out under this section.
* * * * * * *