[Senate Report 112-57]
[From the U.S. Government Publishing Office]
Calendar No. 137
112th Congress Report
SENATE
1st Session 112-57
======================================================================
NUCLEAR POWER 2021 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. 512]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 512) to amend the Energy Policy Act of
2005 to require the Secretary of Energy to carry out programs
to develop and demonstrate 2 small modular nuclear reactor
designs, and for other purposes, having considered the same,
reports favorably thereon with an amendment and an amendment to
the title and recommends that the bill, as amended, do pass.
The amendments are as follows:
1. 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 Power 2021 Act''.
SEC. 2. NUCLEAR POWER 2021 INITIATIVE.
Section 952 of the Energy Policy Act of 2005 (42 U.S.C. 16272) is
amended by striking subsection (c) and inserting the following:
``(c) Nuclear Power 2021 Initiative.--
``(1) Definitions.--In this subsection:
``(A) Combined license.--The term `combined
license' has the meaning given the term in section 52.1
of title 10, Code of Federal Regulations (or a
successor regulation).
``(B) Design certification.--The term `design
certification' has the meaning given the term in
section 52.1 of title 10, Code of Federal Regulations
(or a successor regulation).
``(C) Early site permit.--The term `early site
permit' has the meaning given the term in section 52.1
of title 10, Code of Federal Regulations (or a
successor regulation).
``(D) Small modular reactor.--The term `small
modular reactor' means a nuclear reactor--
``(i) with a rated capacity of less than
300 electrical megawatts; and
``(ii) that can be constructed and operated
in combination with similar reactors at a
single site.
``(2) Duty of secretary.--The Secretary shall carry out,
through cooperative agreements with private sector partners--
``(A) a program--
``(i) to develop a standard design for not
less than 2 small modular reactors, at least 1
of which has a rated capacity of not more than
50 electrical megawatts; and
``(ii) to obtain a design certification
from the Nuclear Regulatory Commission for each
of the standard designs by January 1, 2018;
``(B) a program to demonstrate the licensing of
small modular reactors by--
``(i) developing applications for a
combined license for each of the designs
certified pursuant to subparagraph (A); and
``(ii) obtaining a combined license from
the Nuclear Regulatory Commission for each of
the designs by January 1, 2021; and
``(C) a program to obtain an early site permit for
1 or more small modular reactors.
``(3) Merit review of proposals.--The Secretary shall
select proposals for cooperative agreements under this
subsection--
``(A) on the basis of an impartial review of the
scientific and technical merit of the proposals; and
``(B) through the use of competitive procedures.
``(4) Technical considerations.--In evaluating proposals,
the Secretary shall take into account the efficiency, cost,
safety, and proliferation resistance of competing reactor
designs.
``(5) Cost-share requirements.--
``(A) Design development.--Notwithstanding section
988, the Secretary shall require that not less than 50
percent of the cost of the development of each small
modular reactor design under paragraph (2)(A), and each
early site permit under paragraph (2)(C), be provided
by a non-Federal source.
``(B) Licensing demonstration.--Notwithstanding
section 988, the Secretary shall require that not less
than 75 percent of the cost of the licensing
demonstration of each small modular reactor design
under paragraph (2)(B) be provided by a non-Federal
source.
``(C) Calculation of amount.--Non-Federal
contributions under this subsection shall be calculated
in accordance with section 988(d).''.
2. Amend the title so as to read as follows: ``To amend the
Energy Policy Act of 2005 to require the Secretary of Energy to
carry out programs to develop and demonstrate small modular
nuclear reactor designs, and for other purposes.''.
Purpose
The purpose of S. 512 is to require the Secretary of Energy
to carry out programs to develop and demonstrate small modular
nuclear reactor designs.
Background and Need
The first nuclear power plants built in this country were
small. The first, Shippingport, which was built by the Atomic
Energy Commission and began generating power in 1957, could
generate 60 megawatts of electric power. The second, though
first privately financed nuclear power plant, Dresden, which
began operating in 1960, could generate 180 megawatts of
electricity. The third, Yankee Rowe, which began commercial
operation in 1961, could generate 140 megawatts of electricity.
From these modest beginnings, the nuclear industry scaled
up the size of nuclear power plants rapidly. The four reactors
that began operating in 1969 ranged in size from 581 to 867
megawatts of electric capacity. Five years later, four reactors
with a rated capacity of more than 1,000 megawatts electricity
were in commercial service.
Larger reactors offered utilities economies of scale,
reducing the cost-per-kilowatt-hour of the electricity they
generated. But increasing plant size also increased problems.
Greater size increased capital costs, lengthened construction
times, compounded financing expenses, added to design
complexity and safety concern, and contributed to regulatory
delay and uncertainty. These problems pose a substantial
barrier to the deployment of new nuclear power plants, and they
have led to a reexamination of the use of small modular
reactors.
The term ``small modular reactor'' is generally understood
to refer to a reactor with a rated capacity of less than 300
megawatts electric, which can be linked together with other
small modular reactors, which can then be operated in
combination. Small modular reactors offer several advantages
over large nuclear power plants. They would have a lower
capital cost, and thus would pose less financial risk, carry
lower financing charges, and be more affordable to smaller
utilities. They could also be used in smaller markets, which
might not otherwise be able to support a large base-load
nuclear power plant, or for industrial applications other than
electric power production. Small modular reactor designs may
also offer significant environmental and safety advantages and
nonproliferation benefits. Importantly, they may also be
fabricated in a factory, then transported and assembled onsite,
improving quality control and significantly reducing the cost
and schedule uncertainty of onsite construction.
Legislation is needed to increase research, development,
and demonstration of small modular reactors in order to make
nuclear power safer, more affordable, and more secure, and to
remove barriers to its deployment.
Legislative History
S. 512 was introduced by Senator Bingaman on March 8, 2011.
Senators Murkowski, Udall, Pryor, Landrieu, Risch, and Crapo
are cosponsors. Similar legislation, H.R. 1108 was introduced
in the House of Representatives on May 10, 2011.
The Committee on Energy and Natural Resources held a
legislative hearing on S. 512 on June 7, 2011. The Committee
ordered S. 512 favorably reported on July 21, 2011.
Similar legislation was considered in the 111th Congress.
S. 2812 was introduced by Senator Bingaman on November 20,
2009. Senators Murkowski, Udall, Pryor, Landrieu, Risch, and
Crapo were cosponsors. Similar legislation, H.R. 5164, was
introduced in the House of Representatives on April 28, 2010.
The Committee on Energy and Natural Resources held a
legislative hearing on S. 2812 on December 15, 2009. S. Hrg.
111-375. The Committee ordered S. 2812 favorably reported, with
amendments, at its business meeting on September 27, 2010.
Committee Recommendation
The Senate Committee on Energy and Natural Resources, in
open business session on July 21, 2011, by voice vote of a
quorum present recommends that the Senate pass S. 512, if
amended as described herein. Senator Sanders asked to be
recorded as voting no.
Committee Amendments
During its consideration of S. 512, the Committee adopted
two amendments. The first amendment is in the nature of a
substitute, which makes a number of changes to the bill as
originally introduced. The substitute amendment replaces the
authority for the Nuclear Power 2010 program now found in
section 952(c) of the Energy Policy Act of 2005 with authority
for a new Nuclear Power 2021 program. The substitute amendment
expands the cooperative design development and licensing
program from 2 to ``not less than 2'' small modular reactors,
adds a new program to obtain an early site permit for one or
more small modular reactors, and adds a definition of the term
``early site permit.'' The second amendment amends the title of
the bill to remove the reference to ``2'' small modular reactor
designs.
Section-by-Section Analysis
Section 1 provides a short title.
Section 2 amends section 952(c) of the Energy Policy Act of
2005 (42 U.S.C. 16272) by striking the Nuclear Power 2010
Program and replacing it with a new Nuclear Power 2021
Initiative.
Paragraph (1) of the new subsection (c) defines terms used
in the subsection. The terms ``combined license'', ``design
certification'', and ``early site permit'' are defined by
reference to definitions adopted by the Nuclear Regulatory
Commission. The term ``small modular reactor'' is defined as a
nuclear reactor that is both ``small,'' which, consistent with
the International Atomic Energy Agency's definition of
``small,'' means that it has a rated capacity of less than 300
electrical megawatts, and ``modular,'' which means that
individual units ``can be constructed and operated in
combination'' with similar units, though a single unit could be
constructed and operated by itself.
Paragraph (2) directs the Secretary of Energy to carry out,
through cooperative agreements with private sector partners,
programs to develop and demonstrate small modular reactors.
Paragraph 2(A) requires the Secretary to carry out a
program to develop a standard design for not less than two
small modular reactors, at least one of which has a rated
capacity of not less than 50 electrical megawatts, and obtain a
design certification from the Nuclear Regulatory Commission for
each of the two standard designs by January 1, 2018.
Paragraph 2(B) requires the Secretary to carry out a
program to demonstrate the licensing of small modular reactors
by developing applications for a combined license for each of
the designs and obtaining a combined license from the Nuclear
Regulatory Commission for each design by January 1, 2021.
Although this paragraph requires the Secretary to demonstrate
the licensing of not less than 2 small modular reactors using
combined licenses, it is not intended to preclude private
sector partners from licensing other small modular reactors
using separate construction permits and operating licenses.
Paragraph 2(C) requires the Secretary to carry out a
program to obtain an early site permit for one or more small
modular reactors.
Paragraph (3) requires the Secretary to select proposals
for cooperative agreement on the basis of an impartial review
of their scientific and technical merit, and through the use of
competitive procedures.
Paragraph (4) requires the Secretary to take into account
the efficiency, cost, safety, and proliferation resistance of
competing reactor designs in evaluating proposals.
Paragraph (5) requires that at least 50 percent of the cost
of developing small modular reactor designs and early site
permits under subparagraphs (A) and (C) of paragraph (2), and
at least 75 percent of the cost of the licensing demonstration
of each small modular reactor design under paragraph (2)(B) be
provided by a non-Federal source.
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office.
S. 512--Nuclear Power 2021 Act
Summary: S. 512 would authorize the Department of Energy
(DOE) to enter into cooperative agreements with private-sector
entities to develop and license standard designs for small
modular nuclear reactors. CBO estimates that implementing S.
512 would cost $414 million over the 2012-2016 period, assuming
appropriation of the necessary amounts. Enacting S. 512 would
not affect direct spending or revenues; therefore, pay-as-you-
go procedures do not apply.
S. 512 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 512 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........................... 67 100 100 100 100 467
Estimated Outlays....................................... 40 79 95 100 100 414
----------------------------------------------------------------------------------------------------------------
Basis of estimate: S. 512 would direct the Secretary of
Energy to enter into cooperative agreements with private-sector
entities to develop standard designs for small modular nuclear
reactors as well as processes for licensing such reactors with
the Nuclear Regulatory Commission (NRC). The bill would
authorize DOE to cover up to 50 percent of the cost of
developing designs for such reactors and up to 25 percent of
the cost to demonstrate licensing processes and would specify a
final deadline for all work to be completed by January 1, 2021.
CBO estimates that fully funding S. 512 would require
appropriations totaling $467 million over the 2012-2016 period.
That estimate is based on information from DOE about the
agency's costs to develop facilities and demonstrate licensing
processes for new, large-scale nuclear reactors and takes into
account the cost-share requirements specified in the bill.
Assuming appropriation of those amounts, CBO estimates that
resulting outlays would total $414 million over the 2012-2016
period.
The NRC also would incur costs to certify designs and
develop licensing procedures for small reactors under S. 512.
However, according to the NRC, the agency already plans to
develop its capacity to support regulatory processes for small
modular nuclear reactors. As a result, CBO estimates that
implementing S. 512 would not significantly affect net spending
by that agency; any such spending would be subject to
appropriation and would be largely offset by fees that the NRC
is authorized to collect from regulated entities.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: S. 512
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. 512.
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. 512.
Congressionally Directed Spending
S. 512, 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. 512 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 2102 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. 512, 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.
(b) Nuclear Energy Systems Support Program.--The Secretary
shall carry out a Nuclear Energy Systems Support Program to
support research and development activities addressing
reliability, availability, productivity, component aging,
safety, and security of existing nuclear power plants.
[(c) Nuclear Power 2010 Program.--
[(1) In general.--The Secretary shall carry out a
Nuclear Power 2010 Program, consistent with
recommendations of the Nuclear Energy Research Advisory
Committee of the Department in the report entitled ``A
Roadmap to Deploy New Nuclear Power Plants in the
United States by 2010'' and dated October 2001.
[(2) Administration.--The Program shall include--
[(A) use of the expertise and capabilities of
industry, institutions of higher education, and
National Laboratories in evaluation of advanced
nuclear fuel cycles and fuels testing;
[(B) consideration of a variety of reactor
designs suitable for both developed and
developing nations;
[(C) participation of international
collaborators in research, development, and
design efforts, as appropriate; and
[(D) encouragement for participation by
institutions of higher education and industry.]
(c) Nuclear Power 2021 Initiative.--
(1) Definitions.--In this subsection:
(A) Combined license.--The term ``combined
license'' has the meaning given the term in
section 52.1 of title 10, Code of Federal
Regulations (or a successor regulation).
(B) Design certification.--The term ``design
certification'' has the meaning given the term
in section 52.1 of title 10, Code of Federal
Regulations (or a successor regulation).
(C) Early site permit.--The term ``early site
permit'' has the meaning given the term in
section 52.1 of title 10, Code of Federal
Regulations (or a successor regulation).
(D) Small modular reactor.--The term ``small
modular reactor'' means a nuclear reactor--
(i) with a rated capacity of less
than 300 electrical megawatts; and
(ii) that can be constructed and
operated in combination with similar
reactors at a single site.
(2) Duty of secretary.--The Secretary shall carry
out, through cooperative agreements with private sector
partners--
(A) a program--
(i) to develop a standard design for
not less than 2 small modular reactors,
at least 1 of which has a rated
capacity of not more than 50 electrical
megawatts; and
(ii) to obtain a design certification
from the Nuclear Regulatory Commission
for each of the standard designs by
January 1, 2018;
(B) a program to demonstrate the licensing of
small modular reactors by--
(i) developing applications for a
combined license for each of the
designs certified pursuant to
subparagraph (A); and
(ii) obtaining a combined license
from the Nuclear Regulatory Commission
for each of the designs by January 1,
2021; and
(C) a program to obtain an early site permit
for 1 or more small modular reactors.
(3) Merit review of proposals.--The Secretary shall
select proposals for cooperative agreements under this
subsection--
(A) on the basis of an impartial review of
the scientific and technical merit of the
proposals; and
(B) through the use of competitive
procedures.
(4) Technical considerations.--In evaluating
proposals, the Secretary shall take into account the
efficiency, cost, safety, and proliferation resistance
of competing reactor designs.
(5) Cost-share requirements.--
(A) Design development.--Notwithstanding
section 988, the Secretary shall require that
not less than 50 percent of the cost of the
development of each small modular reactor
design under paragraph (2)(A), and each early
site permit under paragraph (2)(C), be provided
by a non-Federal source.
(B) Licensing demonstration.--Notwithstanding
section 988, the Secretary shall require that
not less than 75 percent of the cost of the
licensing demonstration of each small modular
reactor design under paragraph (2)(B) be
provided by a non-Federal source.
(C) Calculation of amount.--Non-Federal
contributions under this subsection shall be
calculated in accordance with section 988(d).
* * * * * * *