Michele Kearney's Nuclear Wire

Tuesday, October 26, 2010

Iran Begins Fueling Bushehr Plant from the Council on Foreign Relations

Iran Begins Fueling Bushehr Plant

Iran began loading fuel into its first nuclear power plant at Bushehr (PRESSTV), moving a step closer to its stated goal of generating nuclear power amid international pressure to curb its uranium enrichment activities. Iranian officials are aiming for the reactor to be generating electricity by 2011 (BBC), with enriched uranium supplied by Russia. Analysts say Iran's progress at Bushehr is meant to show Iranians the country can resist international sanctions (Reuters). The Bushehr plant does not bring Iran closer to building a nuclear bomb, since Russia will take away spent fuel that could be used to make weapons-grade plutonium. But Iran insists enriching uranium is needed to fuel future power stations and a medical research reactor. The country has not formally responded to an invitation by EU foreign policy chief Catherine Ashton--who represents the UN Security Council permanent members plus Germany--for talks in Vienna (WashPost) from November 15 to 17.

Analysis:

On STRATFOR, George Friedman says Iran is "the one issue on which the president could galvanize public opinion," since many Democrats consider Iran a repressive violator of human rights, the Arabian Peninsula is afraid of Iran, and Europeans are hostile to Iran.

A new Chatham House paper says now is the time for Turkey to help curb Iran's nuclear ambitions, before the United States or Israel considers more coercive action against Iran's nuclear facilities.

Background:

This Backgrounder examines the U.S. government's designation of Iran as the "most active state sponsor of terrorism," which feeds concerns about Iran's growing nuclear program.

Tapping natural gas could unleash uranium

Plans to tap one of the largest sources of natural gas in the United States could release naturally trapped uranium into the environment, researchers say. Proposals to drill into the Marcellus shale -- a massive rock formation that stretches from New York through Pennsylvania, Ohio and West Virginia -- have critics focusing on the effects of pumping millions of gallons of water and chemicals deep underground to fracture rocks to release the natural gas.
Researchers at the University of Buffalo in New York say the process, known as hydraulic fracturing or "fracking," could force uranium in the rocks to move into groundwater, a university release said Monday.
"Marcellus shale naturally traps metals such as uranium and at levels higher than usually found naturally, but lower than man-made contamination levels," Tracy Bank, UB assistant professor of geology, said. "My question was, if they start drilling and pumping millions of gallons of water into these underground rocks, will that force the uranium into the soluble phase and mobilize it? Will uranium then show up in groundwater?"

Argentina to join small group of uranium-enriching countries

http://www.nuclearpowerdaily.com/reports/Argentina_to_join_small_group_of_uranium-enriching_countries_999.html

Buenos Aires (AFP) Oct 25, 2010 Argentina's President Cristina Kirchner Monday rededicated a uranium enrichment plant in southern province of Rio Negro, saying that next year Argentina would join the group of 10 countries producing the fuel for peaceful use. "In November 11, a first sample of enriched uranium will be obtained, at which point, Argentina will join the group of 10 countries producing enriched uranium" for peaceful ends, Kirchner said.
The same plant was used to produce enriched uranium from 1982 to 1983 but then closed because of lower international prices, the Chernobyl nuclear disaster in 1986 and unfavorable public opinion, officials said.

Saudi cabinet gives nod to nuclear pact with Russia

Saudi cabinet gives nod to nuclear pact with Russia
Riyadh (AFP) Oct 25, 2010 - The Saudi government on Monday approved plans to establish a pact with Russia on peaceful nuclear cooperation, a government spokesman said. It authorised the head of the new King Abdullah City for Nuclear and Renewable Energies to draft a pact with Moscow on nuclear cooperation, Information Minister Abdul Aziz Khoja told the official SPA news agency. It was the latest sign of the world's ... more http://www.nuclearpowerdaily.com/reports/Saudi_cabinet_gives_nod_to_nuclear_pact_with_Russia_999.html

Nuclear society president-elect says loan guarantee changes are needed

The president-elect of the American Nuclear Society said the US
Department of Energy's loan guarantee program needs changes if it is to
increase the number of nuclear power plants in the country.

     The current program "is in need of reform," Eric Loewen said Monday at a
Nuclear Energy Insider-sponsored conference in Charlotte, North Carolina,
citing Constellation Energy's withdrawal earlier this month from consideration
for a loan guarantee for a planned reactor project in Maryland. 

     The government's offer of a $7.5 billion loan guarantee with an attached
fee of $880 million shows the program needs revisions, Loewen said.

     "The Office of Management and Budget has set terms and conditions [that]
may destroy the project's economics and prevent the project from going
forward," he said. More at:

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Nuclear/8107310

Monday, October 25, 2010

India - 'We want to buy power plants abroad'

from Pimagazine Asia news feed

Arup Roy Choudhury became the youngest public sector CEO when he took charge of NBCC in 2001. After turning the sick construction company into a `Mini-Ratna', he took over the reins of NTPC in August. In an exclusive interview with Sanjay Dutta , he talks about taking India's largest generation utility to the next level by acquiring power plants abroad with fuel linkages, going nuclear within three years, cutting costs and a greener power basket.

Excerpts: What is your mantra for NTPC? To become the largest and the best worldwide. We are already best in capacity utilisation. But we are not the best globally. We are Number 2, 3 in some aspect or the other. With just 700 unit per capita consumption, the country gives enough possibility for growth and be the best

.Secondly, we have to be more professional in costing and design. We must have the best of both. You'll find us competitive against private sector in the tariff-based (bidding) regime. How do you do this? Let's say what are the two basic components of competitiveness that we are looking at. One is the engineering department. We have the biggest, the oldest engineering department.

We have to look at more efficient engineering rather than re-engineering. There has been technological developments. With change in time, we have to see whether that can reduce our costs and make for more efficient designs. A team is already on the job.Two, how do we reduce cost of fuel, as a mix (of fuel), even if it is imported. We are now importing coal through STC and MMTC. But we hope to do it ourselves. That should make it more cost-effective.

There is also another thinking. Running power plants abroad with fuel linkages. Things are working in reverse today. Western economies are not doing well. We are. Why can't NTPC buy it (power plant) in Europe or Australia with good coal linkage. Ownership in mines abroad too are a possibility. Fuel is the most important issue for us. Besides, we are a thermal company today; about 80% of our capacity is thermal. We have to bring it down to 72% by 2032. We want to do solar, wind and nuclear.

Have you identified plants abroad for acquisition? It is early to talk about it. But certainly there is a vision. We are looking at all options. How is your nuclear plan progressing? We will go with NPCIL ( Nuclear Power Corporation of India Ltd) as of now. Two possible projects have been identified. I can only share that the possible sites are in Haryana and MP. One of these we will do quickly, maybe 2013-14. It may be 2 x 700 mw.

Is there a rethink on hydel foray after the setback in the Loharinag Pala project? There is a rethink but not in terms of not doing it anymore. Rethinking is about strategy. How do we avoid a situation where we get surprises. Loharinag Pala was a surprise. Financially it does not affect us since the government has committed to compensate the money spent in the project. But it does affect us that we had spent so much time and energy on the project and then had to scrap it. We don't want to get into such a situation again.

What about overseas projects? Sri Lanka project is waiting for approval from their side. It takes time. Bangladesh is getting ready. Sites have been identified in Chittagong and Khulna. It will most likely be Khulna. Various reports concerning the project are underway. Coal transportation has been a major bugbear for NTPC.

How do you solve it? We are mostly dependent on the railways. They have been very positive. We are also going to soon use barges to transport coal to plants like Farakka. We have finalised the plan with the inland waterways authorities. The process has begun. Read more: 'We want to buy power plants abroad' - The Times of India

India's NTPC scouts globe for reactor suppliers for independent nuke power foray

from Pimagazine Asia news feed

Mr Arup Roy Choudhury Anil Sasi New Delhi, Oct. 23 NTPC Ltd is scouting for tie-ups with global reactor manufacturers for setting up nuclear power projects on its own. The thermal power major, which already has a minority stake in a partnership with its state-owned counterpart Nuclear Power Corporation of India Ltd (NPCIL) for setting up nuclear units, also plans to firm up independent collaborations with global reactor vendors to set up imported Light Water Reactor-based atomic projects. NTPC's 49:51 joint venture with NPCIL is slated to commence operations with a 700-MWe indigenous Pressurised Heavy Water Reactor-based project. “The Indo-US (nuclear) deal has opened up opportunities… We will enter the nuclear business with the NPCIL joint venture. But in the light of the opportunities, we would want to go on our own and will scout for tie-ups with global reactor firms,” NTPC's Chairman and Managing Director, Mr Arup Roy Choudhury, said.

India has broadly shortlisted four reactor technologies for future Light Water Reactor-based projects — Westinghouse Electric Company's AP1000 series of reactors, GE-Hitachi's ESBWR reactor series, Areva 1,650 MWe European Pressurised Reactors and the Russian state-owned firm Atomstroyexport's VVER reactor series. The Atomic Energy Act, 1962 “requires nuclear power generation to be done by a government company in which at least 51 per cent of shares are held by the Central Government.”

A state-owned utility such as NTPC, where the Centre has an 84.5 per cent stake, automatically qualifies to set up nuclear projects on its own. The company hopes to draw from its initial exposure to the sector through its joint venture with NPCIL.NTPC had earlier this year signed the pact with NPCIL for incorporating a joint venture company for setting up nuclear projects. The venture is likely to take up a 700-MWe indigenous reactor-based project shortly.

Currently, NPCIL and its sister firm BHAVINI are the two companies that are in the business of setting up nuclear power plants in the country. There are 19 nuclear power reactors with a capacity of 4,560 MWe in operation in the country at present. India has drawn up an ambitious plan to have an installed nuclear capacity of 63,000 MWe in 2032, of which about 40,000 MW will be generated through Light Water Reactors sourced through international cooperation.

http://www.pimagazine-asia.com/index.php?page=shownews&news=2781

South Korea: A rising Nuclear star

from Pimagazine Asia news feed

In January, a South Korean consortium beat the world's biggest nuclear plant builder, France's Areva, to win a US$20-billion ($26-billion) contract to supply four reactors to the United Arab Emirates. It was South Korea's first overseas order. In 20 years' time, South Korea aims to become the world's third-largest nuclear plant exporter. Currently, France, the US, Canada, Japan and Russia are the biggest exporters of atomic generators. What are the secrets to South Korea's nuclear success thus far? According to Mr Scott Peterson, a spokesman for the Nuclear Energy Institute, a key to South Korea's success is using standardised reactors. The country's use of "the same reactor design since 1985" has contributed to its "reducing the time for construction - from 64 months in 1995, to 47 months now, and South Korea is aiming for 39 months", said Mr Peter-son. It has also reduced construction cost by 30 per cent, he added. In its bold expansion plans, "the best chance for South Korea will come in new nuclear countries, for example Indonesia, Vietnam, Malaysia, Thailand and Middle East countries", Mr Steve Kidd, director of strategy and research at the World Nuclear Association, said in an interview early this year. Venessa Lee

South Korea Says No to Joint Missile Defense With U.S.

from GSN Daily News

South Korea's Defense Ministry on Saturday said it did not presently intend to participate in a U.S.-headed system for missile defense, the Korea Herald reported (see GSN, June 7).
The ministry, however, said it would look to deepen collaboration between the U.S. program and the Korea Air Missile Defense effort in order to more effectively counter the danger posed by North Korea (see GSN, Oct. 22).
Seoul's antimissile system is structured to safeguard the South from short-range missiles fired by its neighbor while the U.S. system is chiefly designed to protect against medium- and long-range ballistic missile threats.
"South Korea and the U.S. will discuss intelligence sharing and operation of means regarding the missile defense system so as to protect the Korean Peninsula from the threats of North Korean nuclear weapons and its weapons of mass destruction at the Extended Deterrence Policy Committee," the ministry said in a prepared statement.
"This does not mean that we will join the )U.S. missile defense system)," it added. "This means we will strengthen cooperation with the U.S. Forces Korea in the sharing of intelligence and operation of available assets to effectively respond to threats from North Korean ballistic missiles."
Earlier this month in Washington, U.S. Defense Secretary Robert Gates and South Korean Defense Minister Kim Tae-young pledged to set up a specialized group as a conduit for collaboration on enhancing the value of the U.S. nuclear umbrella over the South.
"In the past, the U.S. [missile defense] focused primarily on protecting its mainland. However, the concept of the MD has changed into a regional missile defense system," an unidentified ministry official said.
On Friday, Kim said Seoul was "seriously" analyzing whether to participate in the U.S. antimissile program. He emphasized that the effort focused on regional threats in addition to those facing the continental United States.
Seoul has been wary of participating in U.S. missile defense efforts for fear it would aggravate regional powers like Russia and China, according to the Herald (Song Sang-ho, Korea Herald, Oct. 24).

http://gsn.nti.org/gsn/nw_20101025_1787.php

Saudi cabinet gives nod to nuclear pact with Russia

Riyadh (AFP) Oct 25, 2010 - The Saudi government on Monday approved plans to establish a pact with Russia on peaceful nuclear cooperation, a government spokesman said. It authorised the head of the new King Abdullah City for Nuclear and Renewable Energies to draft a pact with Moscow on nuclear cooperation, Information Minister Abdul Aziz Khoja told the official SPA news agency. It was the latest sign of the world's ... more
http://www.nuclearpowerdaily.com/reports/Saudi_cabinet_gives_nod_to_nuclear_pact_with_Russia_999.html

Why Bringing Down The Electric Grid Is Hard

Burlington VT (SPX) Oct 26, 2010 - Last March, the U.S. Congress heard testimony about a scientific study in the journal Safety Science. A military analyst worried that the paper presented a model of how an attack on a small, unimportant part of the U.S. power grid might, like dominoes, bring the whole grid down. Members of Congress were, of course, concerned. Then, a similar paper came out in the journal Nature the next mo ... more
http://www.energy-daily.com/reports/Why_Bringing_Down_The_Electric_Grid_Is_Hard_999.html

Changes in energy R&D needed to combat climate change

A new assessment of future scenarios that limit the extent of global warming cautions that unless current imbalances in R&D portfolios for the development of new, efficient, and clean energy technologies are redressed, greenhouse gas (GHG) emission reduction targets are unlikely to be met, or met only at considerable costs.More at: http://www.physorg.com/news/2010-10-energy-combat-climate.html

Saudi Arabia: Sorry To Disappoint The Peak Oil Crowd, But The Era Of Cheap Oil Is Far From Over

Analysts shocked by a new reserve estimate.
http://www.businessinsider.com/saudi-arabia-cheap-oil-era-2010-10?utm_source=Triggermail&utm_medium=email&utm_term=Business+Insider+Select&utm_campaign=BI_Select_102510_Personal

Charting a smarter course for a US-Jordan nuclear deal from It is 6 Minutes to Midnight | Bulletin of the Atomic Scientists by Jonathan Pearl

If the Obama administration wants to set a new, strengthened standard for nuclear cooperation agreements, it must take a counterintuitive decision: relax demands that Jordan forgo uranium enrichment in order to secure a nuclear partnership with Washington.
http://www.thebulletin.org/web-edition/op-eds/charting-smarter-course-us-jordan-nuclear-deal

An Asian nuclear renaissance Although its use is on the rise, experts still do not agree on the facts of nuclear power

AS SINGAPORE mulls over whether it should go down the route of nuclear energy, Asian countries are leading the field in what some insiders have called a nuclear renaissance.

"There's certainly an expansion in nuclear power, especially in Asia. Sixty-one reactors are under construction worldwide and 40 of these are being built in Asia," Mr Scott Peterson of the Nuclear Energy Institute (NEI) in the United States told Today.

"Even the UAE in the Gulf, which you would think would use oil and gas," is embracing nuclear power, said Mr Ian Cronshaw, a top official at the Paris-based International Energy Agency. "It's definitely fair to talk about a nuclear renaissance."

There are strong reasons for this trend. At a time of volatile gas prices, nuclear energy could ensure "stable" electricity prices, said Mr Cronshaw, highlighting an advantage of nuclear power amid rising energy use worldwide.

In a world confronting climate change, nuclear is a carbon-free alternative to fossil fuels and it provides energy security, he said.

Nuclear power is also an energy-dense resource, leaving a small amount of radioactive residue or spent fuel, and requiring less space than renewable energy projects such as wind farms, the industry says.

"Uranium has tremendous energy density," said Mr Peterson, the NEI's vice-president of communications. "The amount of spent fuel that was used to provide electricity for a family of four in the US during their lifetimes is about the size of a 12-ounce can - a Coca-Cola can."

The greatest growth in nuclear generation is expected in China, Japan, South Korea and India, according to the London-based World Nuclear Association (WNA).

In contrast, the US is emerging from a 30-year period in which few new reactors were built and the European scene has remained relatively dormant, activists and industry professionals noted.

In South-east Asia, Indonesia, Malaysia and Vietnam have expressed interest in nuclear power and Singapore announced earlier this year it was conducting a feasibility study. More at: http://www.todayonline.com/World/EDC101023-0000036/An-Asian-nuclear-renaissance

India-Japan nuclear deal win-win proposition, says PM

Indian PM has high hopes for India-Japan nuclear deal
India and Japan stand to benefit from a proposed bilateral nuclear energy deal, said Indian Prime Minister Manmohan Singh. The country's nuclear sector is primed for growth, "and there will be huge opportunities for the global nuclear industry to participate in the expansion of India's nuclear energy program," he said. The Times of India/Press Trust of India
http://timesofindia.indiatimes.com/india/India-Japan-nuclear-deal-win-win-proposition-says-PM/articleshow/6804887.cms

US asks for Pak-China nuke arrangement details

U.S. presses Pakistan to disclose details of Chinese nuclear deal
Pakistan must reveal details about a deal it signed with China to build reactors at the Chashma nuclear plant, according to Richard Holbrooke, U.S. special envoy for Pakistan and Afghanistan. U.S. Undersecretary of State for Nuclear Security Thomas D'Agostino had said the U.S. believed that the deal may not be compliant with rules laid out by the Nuclear Suppliers Group. D'Agostino added that China needs to secure clearance from the NSG before transferring reactor technology to Pakistan. The Times of India/Press
http://timesofindia.indiatimes.com/world/us/US-asks-for-Pak-China-nuke-arrangement-details/articleshow/6792300.cms

US Ambassador Questions Feasibility of Belene Nuclear Plant

US Ambassador James Warlick has expressed misgivings about the feasibility of Bulgaria's planned second nuclear plant at Belene.
"There are two questions that Bulgaria must ask itself – if the Belene NPP is an economically feasible project, and, second, if it provides Bulgaria and the entire region with energy security. I am not sure that there are answers to these questions. We are talking about billions of leva here, and the decisions that will be made with respect to Belene will affect Bulgaria's energy system for decades to come," Warlick said on the Bulgarian National Radio Sunday.
His questioning of Belene came at about the same time as Parliament Chair Tsacheva said Bulgaria was in an advanced stages of talks with Russia and had secured a German investor for the future NPP.
Warlick futher stated he was now aware of the content of the document that Bulgaria just signed with Gazprom about the South Stream gas transit pipeline.
"The Bulgarians need greater transparency in energy as a whole. The government must commit to Nabucco, which should be one of its key priorities, if not the key priority," Warlick said.
He mentioned that the US company Chevron was ready to come to Bulgaria immediately in order to start researching potential shale gas deposits.
"I hope the government will react quickly in order to allow these surveys to find out whether there are large deposits of shale gas," he said.
http://www.novinite.com/view_news.php?id=121451

Bob Dudley: BP will be top for safety

BP's Dudley seeks safety advice from nuclear, chemical sectors

Bob Dudley, the new chief executive of BP, will intensify the company's fightback from the Gulf of Mexico disaster on Monday when he tells the CBI conference the oil major can become "the best company in our industry at managing risk".

Bob Dudley, CEO of BP, has spoken with several experts in the nuclear energy and chemical industries in an effort to strengthen his company's safety practices after the Gulf of Mexico oil spill. "I am convinced we in the energy industry have a lot to learn from them and others. So this is my commitment to governments, regulators and society," Dudley said. Telegraph (London)
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8082942/Bob-Dudley-BP-will-be-top-for-safety.html

Yucca's future rides on senate race

Yucca Mountain's fate could be decided in midterm election
Should Senate Majority Leader Harry Reid, D-Nev., lose his re-election bid next month, Nevada's congressional opposition to the Yucca Mountain nuclear waste repository would be significantly weakened, according to Bruce Breslow, executive director of the Nevada Agency for Nuclear Projects. "Our entire Nevada delegation has opposed Yucca, but we had no clout until Senator Reid became majority leader," said Breslow. "Without a majority leader from Nevada, other states would have built an expressway to Yucca Mountain." Reno Gazette-Journal (Nev.)/Gannett News Service

# # Rare Earth Metals Will Be Mined in Vietnam by the Japanese By: Shino Yuasa | The Christian Science Monitor

Rare Earth Metals Will Be Mined in Vietnam by the Japanese
By: Shino Yuasa | The Christian Science Monitor

Rare earth metals, crucial in advanced manufacturing such as computer disk drives, mobile phones and hybrid car components are produced mainly in China.

# # U.S.-India Space Cooperation Could Power Ties By: Saurav Jha | World Politics Review

U.S.-India Space Cooperation Could Power Ties
By: Saurav Jha | World Politics Review\http://www.worldpoliticsreview.com/articles/6811/u-s-india-space-cooperation-could-power-ties

ISRAEL'S NUCLEAR AMBIGUITY RECONSIDERED

The Israeli policy of "nuclear opacity" -- by which that country's presumptive nuclear weapons program is not formally acknowledged -- is examined in the new book "The Worst-Kept Secret: Israel's Bargain with the Bomb" by Avner Cohen (Columbia University Press, October 2010).

For a variety of reasons, the author concludes that Israel's "nuclear opacity" is obsolete and will have to be replaced, sooner or later, with a forthright acknowledgment of what everyone already believes to be the case anyway.

Cohen, an Israeli scholar who was trained as a philosopher, provides a lucid account of how nuclear opacity has "worked," i.e. served Israeli interests, by providing the benefits of deterrence without the negative political and strategic consequences that could ensue from overt disclosure. But its time has passed, he says.

"I argue that the old Israeli bargain with the bomb has outlived its usefulness, that it has become increasingly incompatible with contemporary democratic values at home and with the growth of international norms of transparency, and that it is time for Israel and others to consider a new bargain." Among other things, he says, the continuing development of nuclear weapons-related technology in Iran is likely the force the issue to a new degree of clarity.

For the time being, however, there is no sign of any change in Israel's position on the matter. "Israel has a clear and responsible nuclear policy, and it has frequently reiterated that it will not be the first to introduce nuclear weapons into the Middle East," David Danieli of Israel's Atomic Energy Commission told Haaretz last month. "Israel neither adds to nor subtracts from this statement."

Avner Cohen's "The Worst-Kept Secret" was reviewed recently in the New York Times and the Forward.

How many more trillion$ for defense? By: Winslow T. Wheeler

Despite challenges from the money heaving right, there is an emerging consensus that the Pentagon budget, now at post-World War II highs, is soon to experience reductions. The Pentagon is trying to avoid them; it's device is to simulate reform with insignificant reductions in Major Defense Acquisition Programs, but not the money; Congress is trying the same with cuts that are both insignificant and deceptive. There are better alternatives. The following piece explains. This appeared in the October 25 edition of Politico at http://www.politico.com/news/stories/1010/44100.html, and it is below.

How many more trillion$ for defense?
By: Winslow T. Wheeler
October 25, 2010 04:34 AM EDT

Since Sept. 11, 2001, Congress and the Defense Department have added more than $2 trillion to the Pentagon budget. About half that increase covered the wars in Iraq and Afghanistan; the rest covered the "base" (non-war) parts of the Defense Department. Against all logic, the extra money made our military forces mostly smaller and older.

The Air Force, for example, got a budget increase of 43 percent, but the combat air fleet shrank by 51 percent. If the plans for the next few years go perfectly, the Congressional Budget Office tells us, the major equipment inventories will get even more outdated, as they shrink further.

It has likely been the most relentless squandering of resources the federal government has perpetrated since the end of World War II.

Don't blame just Defense Secretary Robert Gates. He's had lots of help. Defense secretary Donald Rumsfeld before him had accelerated the decay. Almost no one in Congress opposed this hyper-spending: The military services welcomed it, and the defense contractors were not exactly complaining.

Gates started in April 2009 a series of weapon program terminations and so called Pentagon reforms. He announced the defense budget "gusher" had been turned off. Yet the number of major defense acquisition programs he has eliminated is only down to 87 programs, costing $1.6 trillion, from 91 programs - costing $1.6 trillion.

His gusher-off budget for the next 10 years would grow 1 percent each year, plus inflation, to $735 billion in 2020 from $554 billion in 2010 - a 33 percent compounded increase adding another trillion dollars.

Gates' efficiency reforms have been all too modest. His plan to "save" $102 billion would be over 5 years. The money is not being saved: It is being transferred inside the Pentagon budget. Even if the $102 billion were real savings, it is only 3 percent of the planned five-year total, or $3.1 trillion.

The House and Senate Appropriations Committees have added their own eyewash by recommending "cuts" of $7 billion and $8 billion, respectively, in the 2011 DOD budget. But looking at the details, it is clear that much of these "savings" are just shifts from one year to the next.

There are also some delays in programs - which actually make them more expensive later - and there are cancelled "unobligated expenditures" - which merely moves money from past years to future years. After these "cuts," 2011 is an $11-billion increase over 2010.

Real reform must start with fundamentals.

Right now, the Pentagon does not know how it spends its money, as the Government Accountability Office has reported for decades. It is literally "unauditable."

Routinely, DOD does not know if it has paid contactors once, twice or not at all. We recently learned it does not even know how many contractors it has, whom they employ and what they are doing. Google "audit" and "Pentagon" and read the horror stories.
Just look at a recent report from Sen. Charles Grassley (R-Iowa). It is long, hard reading, but it details how deep the accountability problems go. Not only are the Pentagon's books a gigantic mess, it reports, but the office charged with fixing it is broken.

Since the Chief Financial Officers Act of 1990 demanded that the Pentagon learn to track its money, DOD's managers have made promise after promise to reform. Each has been broken.

It is clear that if you ask what a weapon program has cost, or might cost in future, the DOD system seems likely to provide you any dollar amount it wants you to hear.

The F-35 "Joint Strike Fighter" is a classic case; for the last two years, the acquisition bureaucracy had to re-cook the cost numbers - upward, of course - to chase new revelations, and we are about to get yet another update, which will only be another way station on the cost escalator. Ask for an audit of those or any other numbers, and listen to the excuses.

The only jolt that could shock this broken system into reform is less money. That is the approach taken by a member of President Barack Obama's Commission on Fiscal Responsibility and Reform. Sen. Tom Coburn (R-Okla.) has written each commission member recommending that the DOD budget be frozen until it can pass comprehensive audits of all programs, agencies and contractors. (Find a copy of Coburn's letter here.)

You can't reform spending if you don't know what you spend.

Freezing the DOD budget at the 2010 level would mean spending $5.5 trillion for defense in the next 10 years -- $1 trillion less than the $6.5 trillion that Gates wants. It would impose the strong discipline on the Pentagon missing for a long time.

The advocates of big DOD spending are likely to howl. But holding the DOD budget at the 2010 level for 10 years is a $900 billion increase over the pre-war, 2000 spending level (adjusted for inflation). And it still remains a multiple of the defense budgets of China, Russia, North Korea and Iran combined.

Those making today's defense budget decisions are locked in a mindset where more empty spending is never enough. That, more than anything, needs to change.

Winslow T. Wheeler spent 31 years workings on defense issues for both Republican and Democratic senators, and in the Government Accountability Office. He is now the director of the Straus Military Reform Project at the Center for Defense Information.

Indian PM in Japan for nuclear, trade talks

Indian PM in Japan for nuclear, trade talks
Tokyo (AFP) Oct 24, 2010 - Indian Prime Minister Manmohan Singh arrived in Japan Sunday for a visit aimed at progressing towards a civilian nuclear deal and boosting trade ties between the two nations. Japan and India launched talks in June on signing an atomic civilian cooperation agreement that will allow Tokyo to export nuclear power generation technology to energy-hungry India. But Japan, which was hit by Worl ... more

http://www.nuclearpowerdaily.com/reports/Indian_PM_in_Japan_for_nuclear_trade_talks_999.html

Russia wants equal role in NATO missile shield: minister

Russia wants equal role in NATO missile shield: minister
Berlin (AFP) Oct 23, 2010 - Russia is open to talks on NATO's planned European missile shield but wants to play an equal role in its development, Russian Defence Minister Anatoly Anatoly Serdyukov told the German weekly Der Spiegel. "The most important thing for us is firstly to define what are the real threats to Europe, and secondly is to see Russia put on an equal footing as a participant," Serdyukov said in an inte ... more http://www.spacewar.com/reports/Russia_wants_equal_role_in_NATO_missile_shield_minister_999.html

N.Korea justifies nuclear 'treasured sword'

Seoul (AFP) Oct 24, 2010 North Korea said its nuclear arsenal "serves as a treasured sword", amid reports the secretive state could be preparing for a third nuclear test. The bellicose claim came amid a visit by a Chinese military delegation, as well as intense world interest after Pyongyang lay the ground work for the future succession of ruler Kim Jong-Il's youngest son Kim Jong-Un.
North Korea was "entirely right when it opted for having access to nukes", the official Korean Central News Agency (KCNA) said in a commentary, adding the communist country needed to protect itself.
The North has long justified having the weapons saying they are to counter a similar threat from the United States.
The Nuclear Non-Proliferation Treaty (NPT), a global nuclear safeguard accord, was not doing its job properly, the official commentary late on Saturday said.
"This compelled (North Korea) to pull out of the NPT and have access to nuclear deterrent legitimately in order to protect the sovereignty and security of the country," it said.
The isolated and impoverished North withdrew from the NPT in 2003.
Chosun Ilbo, South Korea's biggest-selling newspaper, reported Thursday that the North appeared to be preparing for another nuclear test, citing an unidentified government source.
US satellites had detected movements of personnel and vehicles at the site where Pyongyang carried out its first two nuclear tests in 2006 and 2009, the report said.
US State Department spokesman Mark Toner said Thursday that another atomic weapons test would be "provocative" but said he did not have any evidence to support the South Korean report.
Pyongyang said on Saturday it was willing to resume stalled six-nation nuclear disarmament talks but would not be "hasty" because the United States and some other parties were "not ready".
China, the North's sole major ally and economic lifeline, is pressing to restart the forum, which groups the two Koreas, the United States, China, Japan and Russia, and began in 2003.
But prospects for renewed negotiations have been clouded by South Korean and US accusations that the North torpedoed one of Seoul's warships in March with the loss of 46 lives, a charge Pyongyang denies.
The Chinese military delegation paid tribute to the North's late president Kim Il-Sung Sunday on the second day of a four-day trip to mark the 60th anniversary of Chinese forces' intervention in the Korean War, KCNA said.
After arriving in the capital on Saturday, Guo Boxiong, vice chairman of China's Central Military Commission, said close ties between the two countries would be handed down through the generations.
Jong-Un's status as leader-in-waiting was effectively made public after Pyongyang made him a four-star general and gave him key ruling party posts late last month.
Kim Jong-Il has visited China twice this year. The last visit, in August, was seen by many analysts as a bid by the North Korean leader for Chinese support for the dynastic succession.
Beijing fears the collapse of North Korea and resulting instability on its borders and thus provides heavy aid and trade support to its neighbour, experts say.
The South's Yonhap news agency meanwhile reported that Seoul and Washington have shelved a plan to stage a joint exercise involving a US aircraft carrier later this month in the Yellow Sea.
The exercise was cancelled over fears that it could heighten regional tensions ahead of the upcoming G20 summit in Seoul, it said.
China has bristled at the idea of a US aircraft carrier group patrolling waters near its coast.

Russia To Launch 8 Glonass Navigation Satellites In 2011-2013

http://www.gpsdaily.com/reports/Russia_To_Launch_8_Glonass_Navigation_Satellites_In_2011_2013_999.html
Moscow (RIA Novosti) Oct 25, 2010 - Russia will put eight Glonass-M satellites into orbit in 2011-2013 to ensure the effective operation of its satellite navigation network, a Russian space industry official said. Glonass - the Global Navigation Satellite System - is the Russian equivalent of the U.S. Global Positioning System, or GPS, and is designed for both military and civilian use. The network requires 18 operatio ... more

Sunday, October 24, 2010

OMB Faulted in Nuclear Abandonment

Until a week ago the Calvert Cliffs 1 and 2 reactors on the site, 55 miles from Washington, were set to get a sibling. Calvert Cliffs 3, a joint venture between Baltimore-based Constellation Energy and Electricite de France (EDF), the mammoth French utility, was to join the two venerable reactors.

But now there will be no Calvert Cliffs 3, according to one of its promoters, Constellation Energy.

The project has been canceled–strangled in its crib, if you like, by the White House Office of Management and Budget, which insisted on a sky-high fee in return for federal guarantees of the private commercial loans the utilities needed to finance unit 3.

By effective axing a new reactor, OMB was acting against the Department of Energy, Congress, and possibly the wishes of President Obama.

http://whchronicle.com/2010/10/omb-faulted-in-nuclear-abandonment/