Wednesday, December 21, 2011

NIC - FY2012 Energy & Water Appropriations Wrap-Up

United States
Nuclear Infrastructure
Council

NIC


NIC - FY2012 Energy & Water Appropriations Wrap-Up

As you no doubt know, the FY2012 Consolidated Appropriations Act, including the Energy & Water Appropriations, was signed by the President on Saturday, Dec. 17th following passage by the Senate with a vote of 67-32 on Dec. 17th and passage by the House with a vote of 296-121 on Friday, Dec. 16th.

The Energy & Water section of the Bill provides for the following programs:

 
  • Office of Nuclear Energy - $768.6 million
  • SMR Licensing Program - $67 million
  • SMR Advanced Concepts - $28 million
  • Advanced Reactor Concepts - $21 million
  • NGNP - $40 million
  • Fuel Cycle R&D - $187.35 million
  • ARPA-E - $275 million
  • Non-Defense EM - $235.72 million
  • Defense EM - $5.02 billion
  • Nuclear Nonproliferation - $2.3 billion

The bill also states, concerning funding for the SMR Licensing Program, "The Department is directed to consider applications utilizing any small modular reactor technologies. The conferees expect the program to total $452,000,000 over five years."

The bill does not include funding for the Yucca Mountain program but does include language requiring preservation of Yucca documents and prohibits the NRC Chairman from terminating any program, project, or activity without the approval of a majority vote of the Commission.

No funding was provided for the proposed American Centrifuge Project R&D or a pilot program to re-enrich tails at Paducah.


Excerpts of interest from the conference report and Manager's statement can be found below.

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DEPARTMENT OF ENERGY

The conference agreement provides $25,748,081,000 for the Department of Energy, instead of $24,722,046,000 as proposed by the House and $25,548,976,000 as proposed by the Senate, to fund programs in its five primary mission areas: science, energy, environment, nuclear non-proliferation, and national security.

NUCLEAR ENERGY

The conference agreement provides $768,663,000 for nuclear energy activities, instead of
$733,633,000 as proposed by the House and $583,834,000 as proposed by the Senate.
The conferees direct the Department to develop a strategy for the management of spent nuclear fuel and other nuclear waste within 6 months of publication of the final report of the Blue Ribbon Commission on America's Nuclear Future.

Nuclear Energy Enabling Technologies.-The conference agreement provides $74,880,000, to include $14,580,000 for the National Science User Facility at Idaho National Laboratory, $24,300,000 for the Modeling and Simulation Energy Innovation Hub, and $36,000,000 for Crosscutting Research.

Small Modular Reactor Licensing Technical Support.-The conference agreement includes
$67,000,000 to provide licensing and first-of-a-kind engineering support for small modular reactor designs that can be deployed expeditiously, to be administered as specified in the budget request. The Department is directed to consider applications utilizing any small modular reactor technologies. The conferees expect the program to total $452,000,000 over five years.

Reactor Concepts Research and Development.-The conferees provide $115,544,000, to include $28,674,000 for Small Modular Reactors Advanced Concepts and $21,870,000 for Advanced Reactor Concepts. The conference agreement includes $25,000,000 for Light Water Reactor Sustainability. Within available funds, the Department is directed to conduct research and development furthering knowledge on how long the current fleet of reactors can safely operate.

The conference agreement includes $40,000,000 for the Next Generation Nuclear Plant program, $30,000,000 of which is to accelerate fuel development and qualification activities and $10,000,000 of which is to continue ongoing research and development projects begun in prior fiscal years.

Fuel Cycle Research and Development- Theconference agreement provides $187,351,000. The conference agreement includes $60,000,000 for Used Nuclear Fuel Disposition. Within available funds, $10,000,000 is for development and licensing of standardized transportation, aging, and disposition canisters and casks. Multiple geologic repositories will ultimately be required for the long-term disposition of the nation's spent fuel and nuclear waste; the Department should build upon its current knowledge base to fully understand all repository media and storage options and their comparative advantages, and the conferees direct the Department to focus, within available funds, $3,000,000 on development of models for potential partnerships to manage spent nuclear fuel and high level waste, and $7,000,000 on characterization of potential geologic repository media. The Department is directed to preserve all documentation relating to Yucca Mountain, including technical information, records, and other documents, as well as scientific data and physical materials. The conference agreement includes $10,000,000 to expand the Department's capabilities for assessing issues related to the aging and safety of storing spent nuclear fuel, to include experimentation, modeling, and simulation for dry storage casks, as well as for spent fuel pools, as necessary. The conference agreement includes $59,000,000 for Advanced Fuels, and directs that priority for the increase in funding be given to efforts to develop and qualify meltdown-resistant, accident-tolerant nuclear fuels that would enhance the safety of light water reactors.

Radiological Facilities Management.-The conference agreement provides $64,902,000 for space and defense infrastructure, to include $15,000,000 for nuclear infrastructure at Oak Ridge National Laboratory. The conferees provide no funds for the Plutonium-238 Production Restart Project.

NUCLEAR WASTE DISPOSAL

The conference agreement provides $0 for nuclear waste disposal, as proposed by the Senate, instead of $25,000,000 as proposed by the House.

ADVANCED RESEARCH PROJECTS AGENCY-ENERGY

The conference agreement provides $275,000,000 for the Advanced Research Projects Agency-Energy, of which $20,000,000 is provided for Program Direction.

NUCLEAR REGULATORY COMMISSION SALARIES AND EXPENSES

The conference agreement provides $1,027,240,000 for the Nuclear Regulatory Commission (NRC) salaries and expenses, as proposed by the Senate, instead of $1,037,240,000 as proposed by the House. This amount is offset by estimated revenues of $899,726,000, resulting in a net appropriation of $127,514,000. The fee recovery is consistent with that authorized by section 637 of the Energy Policy Act of 2005. The conference agreement does not include $20,000,000 to be made available from the Nuclear Waste Fund to support the geological repository for nuclear fuel and waste, as proposed by the House. The Senate proposed no similar provision.

The conference agreement includes a National Academy of Sciences study of the lessons learned from the events at the Fukushima nuclear plant, as proposed by the Senate. The Commission is directed to transfer $2,000,000 to the National Academy of Sciences for this study within 30 days of enactment of this Act.

The conference agreement includes $15,000,000, as proposed by the House, to support university education programs relevant to the NRC mission, of which not less than $5,000,000 is for grants to support research projects that do not align with programmatic missions but are critical to maintaining the discipline of nuclear science and engineering.

The conferees recognize the progress that the Nuclear Regulatory Commission has made on the recommendations of the Near Term Task Force. Commission staff has proposed a prioritized list of the Task Force recommendations that reflects the order regulatory actions are to be taken. The conferees direct the Commission to implement these recommendations consistent with, or more expeditiously than, the "schedules and milestones" proposed by NRC staff on October 3, 2011. The conferees direct the
Commission to maintain an implementation schedule such that the remaining recommendations (not identified as Tier I priorities) will be evaluated and acted upon as expeditiously as practicable. The conferees request that the Commission provide a written status report to the House and Senate Committees on Appropriations on its implementation of the Task Force recommendations on the one year anniversary of the Fukushima disaster.

NON-DEFENSE ENVIRONMENTAL CLEANUP

The conference agreement provides $235,721,000 for Non-Defense Environmental Cleanup, instead of $254,121,000 as proposed by the House and $219,121,000 as proposed by the Senate.

Small Sites.-The conference agreement provides $67,430,000 for Small Sites. In response to a lack of progress on addressing existing contamination and seismic deficiencies within buildings that are located in heavily used areas at some Department national laboratories, the Department is directed to use additional funds above the amount requested to improve health and safety by cleaning up existing contamination and improving the seismic standards of buildings within Department laboratory grounds.
The conference agreement directs the Department to provide a report on Small Sites as directed in the House and Senate reports within 3 months of enactment of this Act.

URANIUM ENRICHMENT DECONTAMINATION AND DECOMMISSIONING FUND

The conference agreement provides $472,930,000 for activities funded from the Uranium
Enrichment Decontamination and Decommissioning Fund, instead of $449,000,000 as proposed by the House and $429,000,000 as proposed by the Senate. This amount includes post closure contract liabilities, pensions, and community and regulatory program support. The conference agreement does not include the House provision restricting the Department's use of up to $150,000,000 in proceeds from the barter, transfer, or sale of uranium to carry out uranium enrichment facility decontamination and decommissioning and remedial actions.

The conferees are aware that the Department has yet to alter the contractual mechanism by which it has been transferring uranium to a contractor in exchange for additional cleanup services at Portsmouth in order to correct the violations of federal law cited in the Government Accountability Office's report "Clarifying DOE's Disposition Options Could Help Avoid Further Legal Violations" (GA0-11-846). This type of arrangement continues to be off-budget and inappropriately bypasses the congressional appropriations process. There is also considerable concern that the increasing amount of uranium being transferred could destabilize the uranium market and thereby adversely impact our domestic uranium mining industry.

DEFENSE NUCLEAR NONPROLIFERATION
(INCLUDING RESCISSION OF FUNDS)

The conference agreement provides $2,324,303,000 for Defense Nuclear Nonproliferation, instead of $2,091,770,000 as proposed by the House and $2,383,300,000 as proposed by the Senate, and rescinds $21,000,000, as proposed by the Senate.

Nonproliferation and Verification Research and Development.-The conference agreement provides $356,150,000 for Nonproliferation and Verification Research and Development. Within this amount, the conferees provide $132,800,000 for Nuclear Detonation Detection, which includes an additional $5,700,000 above the request for underground, underwater, and atmospheric detonation detection. The request included $55,823,000 for legacy contractor pensions that are provided separately, as well as an additional $15,625,000 above program needs to meet anticipated growth in contractor defined benefit pension plan costs that are no longer needed.

Nonproliferation and International Security.-The conference agreement provides $155,305,000 for Nonproliferation and International Security. Within this amount, the conferees provide $14,972,000 for the Global Initiative for Proliferation Prevention.

Fissile Materials Disposition.-The conference agreement provides $685,386,000 for Fissile Materials Disposition. The conferees provide no construction funding for the Pit Disassembly and Conversion (PDCF) project because the NNSA has not completed a study of alternatives or a conceptual design report with a cost and schedule estimate that is required under Department of Energy guidance. Instead of the Senate requirement for an update of the costs for the PDCF and the MOX Fuel Fabrication Facility, the conferees direct the NNSA to provide a report on the status of plans to provide adequate plutonium feedstock to operate the MOX facility to the House and Senate Committees on Appropriations within 3 months of enactment of this Act. The conferees direct the use of $20,500,000 in prior-year uncommitted balances within U.S. Plutonium Disposition to prepare plutonium feedstock at H-Canyon in fiscal year 2012 and to identify funding for both H-Canyon and ARIES within the fiscal year 2013 budget request.

Global Threat Reduction Initiative.-The conference agreement provides $500,000,000 for the Global Threat Reduction Initiative. The conference agreement does not include House direction which restricts funding for Domestic Radiological Material Removal.

Legacy Contractor Pensions.-The conference agreement provides $55,823,000 for Legacy Contractor Pensions to meet the ongoing costs of the legacy University of California defined benefit pension plans. The NNSA requested these funds within Nonproliferation and Verification Research and Development and a separate line is provided to improve transparency.

Rescission.-The conference agreement rescinds $21,000,000 in prior-year balances and directs their application to meet fiscal year 2012 needs as described above.

DEFENSE ENVIRONMENTAL CLEANUP

The conference agreement provides $5,023,000,000 for the Defense Environmental Cleanup program, instead of $4,937,619,000 as proposed by the House and $5,002,308,000 as proposed by the Senate. Within the amounts provided, the Department is directed to fund hazardous waste worker training at $10,000,000. The conferees direct the Department to adhere to the House requirement to report all operating projects with a total project cost greater than $10,000,000 no later than 90 days after enactment of this Act.

Hanford Site.-The conference agreement provides $953,252,000 for the Hanford Site, including $19,540,000 for Richland community and regulatory support. Within this amount, funding is provided for the Hazardous Materials Management and Emergency Response facilities. The conferees provide $68,458,000 to accelerate cleanup of the Plutonium Finishing Plant.

Idaho National Laboratory.-The conference agreement provides $386,869,000 for Idaho
National Laboratory cleanup activities, including $4,100,000 for Idaho community and regulatory support.

NNSA Sites.-The conference agreement provides $282,393,000 for cleanup activities at NNSA sites, including funding for community and regulatory support. Within this amount, the conferees provide $873,000 for Lawrence Livermore National Laboratory, $65,945,000 for the Nevada Test Site, $3,014,000 for Sandia National Laboratories, $188,561,000 for Los Alamos National Laboratory, and $24,000,000 to stabilize work at the Separations Process Research Unit following damages that resulted from Hurricane
Irene.

Oak Ridge Reservation.-The conference agreement provides $199,509,000 for the Oak Ridge Reservation, including $6,409,000 for community and regulatory support.

Office of River Protection.-The conference agreement provides $1,185,000,000 for the Office of River Protection.

Savannah River Site.-The conference agreement provides $1,193,822,000 for cleanup activities at the Savannah River Site, including $9,584,000 for community and regulatory support.

Waste Isolation Pilot Plant.-The conference agreement provides $215,134,000 for the Waste Isolation Pilot Plant. No funding is provided for voluntary payments of economic assistance.

Use of prior-year balances.-The conference agreement directs the use of $3,381,000 in prior year balances to meet fiscal year 2012 needs as described above.

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Sec. 301 (e) Notwithstanding subsection (c), none of the funds provided in this title shall be available for obligation or expenditure through a reprogramming of funds that-
(1)     creates, initiates, or eliminates a program, project, or activity,
(2)     increases funds or personnel for any program, project, or activity for which funds are denied or restricted by this Act, or
(3)     reduces funds that are directed to be used for a specific project, or activity by this Act.

Sec. 312 (b) Not less than 30 days prior to the transfer, sale, barter, distribution, or other provision of uranium in any form for the purpose of accelerating cleanup at a Federal site, the Secretary shall notify the House and Senate Committees on Appropriation of the following:
(1)     the amount of uranium to be transferred, sold, bartered, distributed, or otherwise provided;
(2)     an estimate by the Secretary of the gross market value of the uranium on the expected date of the transfer, sale, barter, distribution, or other provision of the uranium;
(3)     the expected date of transfer, sale, barter, distribution, or other provision of the uranium;
(4)     the recipient of the uranium; and
(5)     the value of the services the Secretary expects to receive in exchange for the uranium, including any reductions to the gross value of the uranium by the recipient.
(c) Not later than June 30, 2012, the Secretary shall submit to the House and Senate committees on Appropriations a revised excess uranium inventory management plan for fiscal years 2013 through 2018.
(d) Not later than December 31, 2011 the Secretary shall submit to the House and Senate Committees on Appropriations a report evaluating the economic feasibility of re-enriching depleted uranium located at Federal sites.

Sec. 401 (a) None of the funds provided in this title for "Nuclear Regulatory Commission - Salaries and Expenses" shall be available for obligation or expenditure through a reprogramming for funds that -
(1) increase funds or personnel for any program, project, or activity for which funds are denied or restricted by this Act; or
(2) reduces funds that are directed to be used for a specific program, project, or activity by this Act.
(b) The Chairman of the Nuclear Regulatory Commission may not terminate any program, project, or activity without the approval of a majority vote of the Commissioners of the Nuclear Regulatory Commission approving such action,

Sec. 402 The Nuclear Regulatory Commission shall require reactor licensees to re-evaluate the seismic, tsunami, flooding, and other external hazards at their sites against current applicable Commission requirements and guidance for such licenses as expeditiously as possible, and thereafter when appropriate, as determined by the Commission, and require each licensee to respond to the Commission that the design basis for each reactor meets the requirements of the license, current applicable Commission requirements and guidance for each license. Based upon the evaluations conducted pursuant to this section and other information it deems relevant, the Commission shall require licensees to update the design basis for each reactor, if necessary.
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Harrison Akins
Policy Fellow - Small Reactor Commercialization
U.S. Nuclear Infrastructure Council
1317 F Street NW, Suite 350
Washington, DC 20004

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