Public Policy

The Nuclear Energy Institute is the industry’s policy organization, whose broad mission is to foster the beneficial use of commercial nuclear technology. NEI has more than 350 corporate members representing 17 countries include every U.S. electric utility that operates a nuclear power plant; international electric utilities; nuclear plant designers; architect and engineering firms; uranium mining and milling companies; nuclear service providers; universities; manufacturers of radiopharmaceuticals; labor unions; and law firms. NEI is responsible for establishing unified nuclear industry policy on technical, regulatory and legislative policy issues affecting the industry.

My testimony will address four areas:

1. nuclear energy industry interest in the Department of Energy’s research and development roadmap

2. the DOE R&D roadmap as a guidance document for reactor research

3. how the DOE R&D roadmap will impact used nuclear fuel management and nonproliferation

4. additional elements needed for an effective R&D strategy for commercial nuclear technologies

The U.S. nuclear energy industry’s top priority is, and always will be, the safe and reliable operation of our facilities. America’s nuclear power plants have sustained exemplary levels of safety and operational performance, and this safe, reliable operation drives public and policymaker confidence in the industry. Nuclear energy has had an electric sector-leading average capacity factor of 90 percent or higher over the last decade. In 2009, the nation’s 104 reactors produced nearly 800 billion kilowatt-hours of electricity—enough for about 80 million homes—at production costs lower than coal and natural gas-fired power plants. Nuclear power plants in 31 states generate 72 percent of electricity that comes from carbon-free sources.

Why Is NEI Interested in the Nuclear Energy R&D Roadmap?

NEI appreciates this committee’s recognition of the strategic importance of increased federal funding for nuclear energy research and development. Increases in nuclear energy R&D investment will be necessary in the years ahead to help create a sustainable, reliable and low-carbon electric supply infrastructure. Unfortunately, recent trends are in the opposite direction. In a 2007 analysis, the Government Accountability Office found that DOE’s budget authority for renewable, fossil and nuclear energy R&D declined by more than 85 percent (in inflation-adjusted terms) between 1978 and 2005. Over that period, the need for new technologies to address critical energy needs has not diminished; rather, it has increased with the advent of climate change concerns.

A robust research and development program is necessary if nuclear energy is to realize its full potential in the nation’s low-carbon energy portfolio. In 2008, directors of the 10 DOE national laboratories, including now-Secretary of Energy Steven Chu, published a report recognizing that “nuclear energy must play a significant and growing role in our nation’s … energy portfolio … in the context of broader global energy, environmental, and security issues. The national laboratories, working in collaboration with industry, academia and the international community, are committed to leading and providing the research and technologies required to support the global expansion of nuclear energy.”

The national laboratory directors pointed out that the U.S. leadership position in the global nuclear enterprise is at stake. Participation in the development of advanced nuclear energy technologies will allow the United States to influence energy technology choices around the world. This participation also could help assure that objective and viable nonproliferation controls are in place as other countries develop commercial nuclear capabilities. Therefore, technical leadership and increased R&D funding should be a strategic and economic imperative of the administration, Congress and the industry.

The 2008 report identified areas of research that have been incorporated into a comprehensive strategy for nuclear energy R&D developed by the Electric Power Research Institute and the Idaho National Laboratory. NEI supports the R&D priorities listed in that strategy:

• Maintaining the high performance of existing light water reactors and extending potential operation of these facilities from 60 years to 80 years. Research and development programs are needed to develop improved advanced diagnostic and maintenance techniques, extend component life, introduce new technologies, and enhance uranium fuel reliability and performance.

• Significantly expand the number of light water reactors, including small reactor designs. Building new U.S.-designed reactors internationally will provide global leadership in safe nuclear plant operation while meeting stringent nonproliferation objectives. 2

• Developing fast reactor designs and more proliferation-resistant reprocessing technologies will enable a higher percentage of the uranium fuel to be used before reprocessing or disposal. Reprocessing also could reduce the volume and toxicity of the uranium fuel by-product that requires safe permanent disposal in a geologic repository.

• Developing high-temperature reactors for electricity generation and use in other applications, such as a heat source for industrial processes. High-temperature reactors can reduce greenhouse gas emissions from large-scale process heat operations in the petroleum and chemical industries. This technology could economically produce hydrogen for fuel-cells and other industrial applications.

In February, NEI convened the 7th Nuclear Energy R&D Summit, bringing together industry, academia and DOE national laboratory officials to discuss the industry’s R&D portfolio. Nearly 400 participants developed a statement of principles (attached), which recommends seven focus areas for nuclear energy R&D:

1. Maintain a consistent long-term plan for nuclear energy programs, including an integrated R&D strategy that supports basic research that is goal-oriented.

2. Select a limited number of cost-shared projects for development of reactor and fuel management technologies.

3. Support development of reactor technologies that qualify for DOE’s Loan Guarantee Program.

4. Encourage the restoration and expansion of the domestic manufacturing supply chain to build new nuclear
facilities.

5. Research, demonstrate and deploy technology innovations for continued safe operation of current reactors.

6. Support work force education and training through congressional appropriations for university programs, investment in the industry-endorsed uniform curriculum at community colleges and tax credits for worker training.

7. Fund the development of reactors to ensure a domestic supply of medical and industrial isotopes.

NEI believes the DOE R&D roadmap can bring these recommendations to fruition as it engages industry in implementation of the objectives outlined in the document.

NEI’s Impression of the Nuclear Energy R&D Roadmap

Overall, the roadmap makes a strong case for a continued robust DOE nuclear energy program to help meet the nation’s energy and environmental goals. Existing and new nuclear plants will help the United States meet its future electricity demand and climate change objectives. Various independent assessments of how to reduce electric sector CO2 emissions – including those by the International Energy Agency, McKinsey and Company, National Academy of Sciences, Cambridge Energy Research Associates, Pacific Northwest National Laboratory, the Energy Information Administration and the Environmental Protection Agency – show that there is no single technology that can slow and reverse increases in CO2 emissions. A portfolio of technologies and approaches will be required, and that portfolio must include more nuclear energy as well as an aggressive pursuit of energy efficiency and expansion of renewable energy, advanced coal-based technologies, plug-in hybrid electric vehicles and distributed energy resources. Removing any technology from the portfolio places untenable pressure on those options that remain.

NEI estimates that approximately 28,000 megawatts of new nuclear energy capacity (22 new reactors) must be built by 2030 to maintain nuclear energy’s 20 percent share of the U.S. electricity supply. To increase nuclear energy’s contribution to achieve greenhouse gas reduction goals, the amount of new nuclear energy capacity must be substantially higher. EPRI’s PRISM analysis, a study of potential low-carbon emission energy deployment over the next 20 years, shows that to provide a high degree of confidence that America’s long-term climate change goals can be achieved, 45 new reactors must be operational by 2030, with others under construction or in the licensing process.

The DOE roadmap achieves this goal by creating a sustained program for license extension for current reactors to 80 years and enabling new standardized reactor designs to be licensed and built more efficiently. Any program that is developed under the auspices of the roadmap must adhere to the DOE’s principle described on page 16 of the roadmap: “In laying out the activities in each of the R&D objectives described below, we must remain goal-oriented to avoid falling into the trap of doing a great deal of work that, while interesting, fails to address the challenges to the deployment of nuclear energy.”

NEI supports the proposed Light Water Reactor Sustainability program and the Nuclear Energy Modeling and Simulation Hub. Both programs will contribute significantly to maintaining safe operation of existing reactors and improving the efficiency of new reactor development. The modeling and simulation hub also will help to reduce the time to market for innovative reactor designs. The industry supports an expedited program plan over what DOE includes in the key activities table on page 21 of the roadmap. The industry also encourages DOE to continue its efforts to bring advanced light water reactors and small modular reactors to the market place in an expedited manner.

NEI strongly encourages DOE to continue the funding of advanced fuel cycle programs that will improve uranium fuel resource use, maximize generation, reduce the volume of used fuel that has to be disposed of in a deep geologic repository and limit proliferation risk.

Domestic facilities are expanding the capacity for uranium fuel supply. This week, LES opened the first U.S centrifuge uranium enrichment plant in Lea County, New Mexico. The plant is currently awaiting final NRC approval to commence commercial operations, which is expected shortly. At full capacity, the facility can produce enriched uranium for nuclear fuel to provide as much as 10 percent of America’s electricity needs. Last month, the Energy Department offered a $2 billion conditional loan guarantee commitment to AREVA for its planned uranium enrichment facility in Idaho. The project will use advanced centrifuge technology and could create as many as 4,800 direct and indirect jobs. USEC and the Department of Energy announced an agreement in March to provide $45 million in funding to USEC to fund ongoing American Centrifuge enrichment technology demonstration and manufacturing activities. USEC will match the DOE funding on a 50-50 cost-share basis. Other companies also are investigating advanced facilities for uranium enrichment, including GE Hitachi Nuclear Energy, which is developing the Global Laser Enrichment. This is a new method for enriching uranium that could benefit from DOE support.

How the R&D Roadmap Will Impact Waste Management and Nonproliferation Programs

Used nuclear fuel is managed safely and securely at nuclear plant sites and can be done so for an extended period of time. Used nuclear fuel does not represent an impediment to new reactor development in the near term. It is, however, an issue that must be addressed for the long term.

The nuclear industry’s position on used fuel management is clear:

• The Nuclear Waste Policy Act establishes an unequivocal federal legal obligation to manage used nuclear fuel. Until that law is changed, the nuclear industry believes the NRC’s review of the Yucca Mountain repository license application should continue.

• A credible and effective program to manage used nuclear fuel must include three integrated components: storage of used nuclear fuel at nuclear plant sites and at centralized locations; technology development necessary to demonstrate the technical and business case for advanced fuel treatment, including recycling; and, ultimately, operation of a permanent disposal facility.

DOE’s activities in Objective 3 of the roadmap are limited to fuel cycle research until the Blue Ribbon Commission on America’s Nuclear Future reports its findings to the secretary of energy. NEI supports the inclusion of a modified open fuel cycle to determine if there is an opportunity for new waste forms that could reduce the costs of a national repository program. Here too, the DOE principle stated on page 16 of the roadmap is relevant: “In laying out the activities in each of the R&D objectives described below, we must remain goal-oriented to avoid falling into the trap of doing a great deal of work that, while interesting, fails to address the challenges to the deployment of nuclear energy.” Any program that expends taxpayer funds to pursue research must be directly linked to an R&D goal.

Nonproliferation issues impact the commercial nuclear industry worldwide. The U.S. industry works closely with federal, state and local governments to ensure safe operation and security at commercial reactors and fuel facilities. In addition, the nuclear industry complies with current export control laws and protocols. NEI recently hosted a Nuclear Security Conference that brought together more than 200 industry leaders from 29 countries to discuss the appropriate role for industry in securing nuclear materials. Subsequently, the industry formed a task force of industry executives to develop recommendations for taking additional steps in securing nuclear materials used in commercial nuclear applications. As the DOE Office of Nuclear Energy works to minimize the risk of nuclear proliferation, the industry looks forward to continued constructive engagement in this area.

NEI supports the inclusion of $3 million for international nuclear energy cooperation in the FY2011 budget that will allow DOE’s Office of Nuclear Energy to participate more fully in discussions and negotiations on a range of international nuclear energy concerns. The Institute encourages DOE to engage with the nuclear energy industry as it pursues international nuclear energy cooperation to leverage these interactions and support the export of U.S. products and services.

What Are the Missing Elements of an Effective R&D Strategy for Nuclear Technologies?

Supply Chain

The domestic commercial nuclear manufacturing industry has immense prospects for growth and job creation, yet R&D on manufacturing is essential to achieve the objective of supplying components for new and existing U.S. nuclear plants. Failure to conduct targeted R&D in this area may inhibit American workers from fully realizing the benefits of global growth in commercial nuclear energy, estimated to be in excess of $1.6 trillion over the next 20 years.

Research and development for nuclear manufacturing falls into three categories: fabrication technology; education and training; and codes and standards. An integrated approach that focuses on each of these areas will enable the industry to better leverage development in these areas and more effectively meet the industry’s objective—supplying new nuclear projects from domestic manufacturers.

The industry, with the help of organizations such as the Nuclear Fabrication Consortium, has started to focus on education and training as well as the development of new or updated codes and standards for manufacturing and materials. A specific R&D focus on fabrication technologies would dramatically expand the North American manufacturing base for nuclear energy components. A targeted emphasis on high-cost, high-benefit manufacturing should be in the area of technology investment. Areas of immediate need and opportunity include:

• Real-time Quality Monitoring and Control. This would enable manufacturers to find fabrication-related defects in the manufacturing process sooner or eliminate them altogether. The technology would offer the unique benefit of being deployable across virtually all fabricated component systems and being incorporated directly into the fabrication equipment (machining centers, inspection systems and welding equipment). When standardized, these improved processes, practices and technologies would enable a more rapid use throughout the American fabrication industry.

• Thick Section Welding Technology. Many nuclear facility components are large and have heavy section thicknesses. Even when forgings are used, numerous thick section welds are required. By further developing and validating technologies that other industries are using (such as laser welding, Laser-Gas Metal Arc Hybrid Welding, Tandem Gas Metal Arc Welding, and inertia-based welding processes), production costs could be reduced while improving quality and lowering the residual welding stress.

• Machining Technology. Apart from advances in computer-aided machinery, machining techniques and equipment have remained relatively unchanged for the last half century. The development of new technologies, such as enhanced ultrasonic machining, will enable substantial increases in productivity while maintaining product and machine tool quality.

• Forming. Improved forming technologies, beyond those associated with ultra-large forgings, could have a dramatic impact on the nuclear manufacturing industry. Improved techniques and technologies could reduce or eliminate welds; produce formed components that have an initial geometry that could be machined to a final design instead of welding multiple pieces together; and enable multi-material components and systems to be formed together as a unit rather than formed individually, then combined.

• Materials Development. The nuclear industry uses a cadre of specialized materials ranging from polymers to high-alloy metallics. Much of what is known about these materials is the result of research to maintain safety at existing reactors. The development of new materials or assessment of materials being used in other industries, along with the associated manufacturing techniques, could reduce manufacturing and component costs while improving reliability and component life-cycle estimates.

Isotope Production

Nuclear medicine offers procedures that are essential in many medical specialties, from pediatrics to cardiology to psychiatry. New and innovative nuclear medicine treatments that target and pinpoint molecular levels within the body are revolutionizing our understanding of, and approach to, a range of diseases and conditions. However, the domestic supply of medical isotopes has virtually disappeared. Leading companies that provide products for medical diagnostic and therapeutic applications obtain supplies from Canada and other nations. This year, supplies of essential medical isotopes and equipment from Canada and Europe were interrupted, leading to disruption of critical health services for patients. Despite warnings from industry and the medical community, DOE has not supported U.S. reactor development in time to forestall this shortage. Similarly, the DOE laboratory facilities providing isotopes for industrial purposes cut production, without warning, for Californium-252, which is a key element in starting new reactors. Prompt government action is required to develop U.S. reactors for the production of medical isotopes.

The fact that there is no mention of isotope production in the roadmap indicates that the government continues to ignore this vital part of the nation’s health care infrastructure. NEI supports continued funding of isotope production reactors by NNSA but believes that the Office of Nuclear Energy is responsible for establishing a roadmap objective ensuring the availability of isotopes for nuclear medicine. Equally, the Office of Nuclear Energy roadmap is incomplete without objectives for uranium supply and enrichment.

Work Force

A highly educated and well-qualified work force is a critical element in the development of nuclear technologies. The nuclear industry commends DOE’s Office of Nuclear Energy for its longstanding commitment to nuclear work force development for both the government and commercial sectors. This commitment, in conjunction with the support of other federal agencies, has resulted in growing enrollments in nuclear engineering programs and the development of nuclear technician programs.

Based upon this success, NEI encourages the continued support of universities to carry out R&D. These programs support the R&D objectives of the Energy Department and provide support for the development of future nuclear scientists and engineers as they pursue advanced degrees. Further, NEI encourages the continued support of the integrated university program and additional funding of community college and other programs that will support the development and training of technicians and skilled craft, the most critical area in regard to work force development for the commercial nuclear industry. Finally, NEI encourages greater coordination of existing DOE energy education and work force development programs through initiatives such as Re-Energyse.