The White House released its long-awaited infrastructure plan outline last week.  Leaving aside the funding proposals, the plan sets forth a number of potential revisions to the environmental permitting process for new infrastructure projects that may deserve a closer look (these are found in Part III of the infrastructure plan outline).  Hogan Lovells has issued a detailed review of the broader infrastructure plan here, but we wanted to also briefly touch on a few points that could potentially impact the environmental review and permitting process for next-generation reactors by the U.S. Nuclear Regulatory Commission (NRC).

A number of these proposals as to environmental permitting have been floating around for a number of years, many on both sides of the aisle, and in particular concern the National Environmental Policy Act (NEPA).  Even if the President’s proposal itself does not move forward, a number of them may find themselves in any final infrastructure bill or future legislation:

    • Section 3(I)(A) – NEPA & Permitting Timelines: The proposal would establish a 21-month timeline for an agency’s NEPA review, and a 24-month permitting process from start to finish. The idea of setting deadlines for agency permitting actions has historically faced significant pushback over the years for a number of reasons—one being that this may encourage agencies to deny permits as a default when the deadline arrives.  However, there have been successful cases where statutory timelines have led to efficient agency processing of permits.  For example the Committee on Foreign Investment in the United States (CFIUS) reviews complex foreign investment transactions into the United States for national security risks in a one-to-three month timespan.  Done properly amidst other reforms to NEPA, a timeline for NEPA reviews can lead to significant permitting efficiencies.
    • Section 3(I)(B)(2) – Tailoring Discussion of Alternatives: One interesting proposal is tailoring the “Alternatives” discussion of a NEPA analysis.  The “Alternatives” analysis is often termed the “heart” of NEPA, and “rigorously explores and objectively evaluates all reasonable alternatives including the proposed action.”  It also drives a lot of the length of NEPA reviews, and is in need of reform.  One issue is that agencies end up spending significant time and capital evaluating alternatives to a project that are not practically up for consideration or commercially feasible.  The infrastructure plan proposes to exclude from NEPA “Alternatives” analyses those options “outside [the permitting agency’s] authority or outside the capability of the applicant.”  A large part of nuclear plant environmental reviews concern alternatives that are simply not going to be pursued.  Done right, a review of the scope of “Alternatives” analyses could yield significant benefits.
    • Section 3(III)(A) – Performance-Based Pilot Projects: This program would select 10 projects to be evaluated along “environmental performance measures” in lieu of the typical NEPA process.  The project applicant would commit to meet environmental parameters set by the lead federal reviewing agency (in this case the NRC) with public and interagency input.  The program would “focus on good environmental outcomes rather than a lengthy environmental review process.”  Candidates for the pilot program would be chosen “based on project size, national or regional significance, and opportunities for environmental enhancements.”

New nuclear reactor projects would be well-situated to be selected for such pilot programs.  Moreover, the NRC has significant experience in pursuing performance-based regulation, as it has been attempting to implement a more performance-based regulatory framework for nuclear safety issues for some time.  It could be a strong pilot lead agency to implement this concept for environmental reviews.

    • Section 3(IV) – Judicial Review: The infrastructure plan proposes significant changes to the framework for reviewing NEPA determinations.  Among them is a proposal to limit injunctions to “exceptional circumstances.”  The courts have already cut back on injunctions in NEPA cases since a seminal Supreme Court decision in Winter v NRDC (which also eliminated the notion that an injunction is automatic after a NEPA violation).  However, the threat of a NEPA injunctions drives agencies to ‘throw in the kitchen sink’ in their NEPA reviews to prevent such a deleterious outcome, greatly driving up review time and cost.  Reducing the threat of injunctions when agencies conduct reasonable reviews will certainly be controversial, but if done right could allow agencies to focus on the key environmental issues and only supplement their review when needed.

Another proposed change to the NEPA judicial review process would be to provide more certainty that data collected the first time around remains valid over time.  Agencies would be instructed to develop guidance regarding when new, more current data is required for a NEPA review as time passes, and courts would defer to this guidance.  This provision may face legal challenges, but targets another area where agencies are forced to do more than may be legally required in order to avoid a court injunction.  The process of data gathering, especially for nuclear projects, is time consuming and costly, and represents an area where greater certainty can markedly reduce permitting costs.

Apart from the environmental permitting modifications, a number of the funding programs could also prove beneficial for next-generation reactors if developed further.  This includes, for example, $20 billion set aside for a “Transformative Projects Program” for “bold, innovative, and transformative infrastructure projects” that face unique risks but otherwise could be commercially viable.  Such programs could bring much-needed financing to new reactor developers looking to bridge the funding “valley of death” before a first plant is constructed.

For more on the White House infrastructure plan, or on environmental permitting for nuclear reactors, please contact the authors.

The House Committee on Energy and Commerce, Subcommittee on Energy held a hearing February 6, 2018 to discuss the challenges facing America’s nuclear infrastructure, including advanced reactor development.  The hearing was called “DOE Modernization: Advancing the Economic and National Security Benefits of America’s Nuclear Infrastructure.” A video of the hearing can be watched here.

A background memorandum released in advance explained that the hearing would explore the following important topics:

  • National security implications associated with U.S. nuclear leadership and a domestic nuclear energy industry;
  • The outlook for domestic and international development of nuclear energy and application of nuclear technologies;
  • Challenges and opportunities regarding maintaining the components of a domestic nuclear fuel cycle; and
  • Options to develop and deploy advanced nuclear technologies

The hearing witnesses included (their statements are also provided below):

  • Mr. Art Atkins, Associate Deputy Administrator for Global Material Security, U.S. Department of Energy, National Nuclear Security Administration: Witness Statement
  • Mr. Victor McCree, Executive Director of Operations, U.S. Nuclear Regulatory Commission: Witness Statement
  • Mr. Ed McGinnis, Principal Deputy Assistant Secretary, U.S. Department of Energy, Office of Nuclear Energy: Witness Statement
  • Mr. James Owendoff, Principal Deputy Assistant Secretary, U.S. Department of Energy, Office of Environmental Management: Witness Statement
  • Dr. Ashley Finan, Policy Director, Nuclear Innovation Alliance: Witness Statement
  • Ms. Maria Korsnick, President and CEO, Nuclear Energy Institute: Witness Statement
  • The Honorable Bill Ostendorff, Former NRC Commissioner and Distinguished Visiting Professor of National Security, U.S. Naval Academy: Witness Statement
  • Dr. Mark Peters, Director, Idaho National Laboratory: Witness Statement
  • Mr. David Trimble, Director, Government Accountability Office, Natural Resources and Environment: Witness Statement

Summary of Key Issues for Advanced Reactor Community

During his opening remarks, Full Committee Chairman Greg Walden (R-OR) noted that “[a]t root today, is a question of our nation’s capabilities not only to propel nuclear innovation generally, but to ensure an infrastructure that is critical to our economic and our national security.” He promised to align U.S. policy with a changing world: “we must recognize the world looks different than it did at the birth of the nuclear age. Consequently, we must take steps to update the relevant policies. These policies must be forward looking to enable innovation and the development and deployment of new advanced nuclear technologies.”

Once witness questioning began, the Subcommittee quickly honed in on issues facing the advanced reactor community and expressed bipartisan support for U.S. government help to develop and deploy these innovative new designs. Among the issues discussed were the following:

  • SMR commercialization and deployment schedule

The first question asked at the hearing, by Subcommittee Chairman Fred Upton (R-MI), was on small modular reactor (SMR) commercialization and when the U.S. was going to see SMR designs being approved and deployed in the commercial sector. In response, Ed McGinnis, Principal Deputy Assistant Secretary, U.S. Department of Energy, Office of Nuclear Energy explained: “We are at a tipping point,” with the U.S. leading in design development but challenged in deployment of the technologies. He went on to note that NuScale project that can be “game changing” if successfully deployed.

Last year, reactor designer NuScale submitted to the U.S. Nuclear Regulatory Commission the first SMR reactor design certification application  in the United States. The NRC recently approved–in a first of a kind decision–that NuScale would not need a safety-related electrical power system. This means that the NRC believes the reactor can remain in a safe condition in the event it loses electricity. Currently, all nuclear power plants in the U.S. have safety-related electrical power systems. And the fact that NuScale does not need one is a testament to the inherent different nature of SMRs—and the first time the NRC has recognized as such during its review of an application.

On that front, Victor McCree, the NRC’s Executive Director of Operations, explained during the hearing that the NRC’s decision about NuScale reflects a “philosophical” change that will lead to more efficient and effective reviews. Mr. McCree continued on to explain that an NRC approval of the NuScale design would open the market in a way that large reactors cannot, including by being more affordable and improving grid reliability. Mr. McGinnis further explained that with a number of large-scale reactors facing shutdown, getting SMRs into the pipeline is an imperative, and among other things, DOE was working on integrating SMRs with wind turbines and solar plants. With SMRs versatility and fast ramp up ability, Mr. McGinnis explained, SMRs could be paired with renewables to firm up their intermittent power and delivery of emissions free power.

  • Concern with amount of DOE funding to support SMR commercialization and deployment

Several members expressed concern that—with less than US$30 million invested in advanced reactors—whether DOE is really pushing for commercialization of SMRs. In response, Mr. McGinnis noted that a lot of work was being performed at the national labs and DOE continues to work on deployment matters.

  • High-assay LEU and Test Reactors

Mr. McGinnis from DOE also explained that DOE was working towards development of a fast neutron reactor and growing a capacity for high-assay LEU. Mr. McGinnis acknowledged that next-generation nuclear innovators need a test reactor, which itself would require high-assay LEU. He added that NNSA is taking seriously the challenge of developing a high-assay LEU capacity for testing and eventual industry use.

  • Deployment of US SMRs overseas

A number of members asked about deployment of US SMRs abroad. In response, Mr. McGinnis remarked that a number of countries are interested in U.S. SMR designs and watching their progress. He remarked that the U.S. is the world expert in designing SMRs, and that if the U.S. was able to prove the technology domestically it would open up the international market. The hearing participants also discussed ways to speed up the U.S. nuclear export approval process. On that last point, Congressman Bill Johnson (R-OH) noted that he intended to introduce legislation soon to improve the export control authorization process. At the end of 2017, Chairman Upton and Congressman Johnson sent a letter to Energy Secretary Rick Perry saying that the slow pace of DOE authorizations for commercial nuclear energy exports is having harmful consequences for U.S. competitiveness and national security. “While DOE is in the process of implementing some targeted reforms, more work remains to accelerate agency decision-making so that our domestic nuclear technology leaders have timely answers necessary to compete effectively with other nations’ nuclear programs,” the letter said.

  • NRC fee reform

When asked about if the NRC is undergoing reviews of its fee structure and looking for ways to improve methodology especially when non-LWR reactors look for licensing, Mr. McCree confirmed that the NRC is looking at this issue.

With a flurry of attention on advanced reactors lately, the hearing brings welcome attention the advanced reactor community needs. Please contact the authors with any questions.

The Department of Energy (DOE) and Nuclear Energy Institute (NEI) have issued a trio of reports touching on important issues for small modular and advanced reactors:

The debut of these three reports so closely apart highlights the variety of issues new reactor developers have to work through simultaneously, from licensing to fuel supply to market dynamics.

The first report recognizes a common industry complaint—that although the legal standard for issuing new reactor licenses has not changed, in reality “the [Nuclear Regulatory Commission] now requires more effort from applicants” to meet that same standard—even when new reactor designs are inherently safer.  The report recommends that the NRC:

  • Refrain from asking for design details that do not have a nexus to safety (shortening review times);
  • Modernize design requirements to “be more systematic, predictable and repeatable”;
  • Establish predictable staged licensing pathways; and
  • Reign in unnecessary detail in setting a plant licensing basis to allow for more flexibility to make changes during construction.

The second report tackles a sleeping giant, the lack of a pathway to high-assay low-enriched uranium (high-assay LEU) (that is, uranium enriched between 5% to 20% with fissile elements).  While there is no prohibition to commercial access to high-assay LEU, there is also currently no domestic source for this fuel type.  Current fuel cycle facilities are capped legally (and sometimes physically) to work with ~5% enriched LEU.  This is a bottleneck to realizing the promise of advanced reactors, as developing the infrastructure for this industry will require “a minimum of seven to nine years.”  The report recommends that DOE and NRC collaboratively:

  • Support development of new shipping packages capable of holding high-assay LEU;
  • Develop “criticality benchmark data needed” to enable the private sector to license high-assay LEU “facilities and transport packages”;
  • Directly support the design of high-assay LEU facilities and fuel types; and
  • Finalize guidance documents on Material Control and Accountability and physical security for “Category II” facilities that contain high-assay LEU.

The third report follows hot on the heels of the Federal Energy Regulatory Commission’s decision to terminate a rulemaking proposed by DOE Secretary Perry that would establish a resiliency pricing scheme for baseload generation sources, including nuclear.  The DOE-commissioned report provides additional evidence for the resiliency benefits of nuclear power, but is more focused on the benefits of small modular reactors (SMRs) to support federal and military facilities; in particular, forward operating bases that often rely on uncertain civilian grids and/or trucked in fuel.  The report notes that SMRs are naturally hardened due to their underground construction and passive safety systems, are designed to provide scalable power that is reliable and grid-independent, and can provide years’ worth of fuel security—making them ideal for many national security contexts.

Despite its national security theme, the DOE-commissioned report suggests a novel solution to support SMRs that is based on the civilian sector—by engaging DOE support as a customer for the Tennessee Valley Authority small modular reactor project at Clinch River.  According to the report, DOE’s Oak Ridge National Laboratory and related facilities could rely on SMRs’ unique, resilient power for their mission-critical activities, use the SMRs for nuclear research, and at the same time help bring first-generation SMR technologies to market.  The report details a hypothetical transaction structure to support DOE involvement in the Clinch River project, and closes with other policy initiatives to complement this effort.

For more about the benefits and key issues facing next-generation nuclear reactors, please contact the authors.

Yesterday Lightbridge (NASDAQ: LTBR), which is developing an exciting metallic nuclear fuel rod that can both increase reactor output and improve the safety of today’s light water reactor fleet, formally signed onto a joint venture with one of the world’s largest nuclear companies, Framatome (formerly Areva NP).  This alliance—called Enfission—will combine Lightbridge’s innovative new technology with the Framatome’s know-how in commercializing and licensing nuclear fuel to bring a truly innovative new product to market over the next few years—a product that can significantly change the economics and of both new and existing plants.  Lightbridge CEO Seth Grae said during a January 25 joint venture announcement at the National Press Club in Washington, D.C. that a “key advantage” of the company’s fuel is that it will help power reactor licensees operate units at costs comparable to or lower than natural gas- or coal-fired generators, as well as wind and solar generation.”

The joint venture signing was an exciting event, chaired by our very own blog author Amy Roma!  A video of the statements made at the joint venture signing can be found here.  Speakers included the leaders of Lightbridge, Framatome, the Nuclear Energy Institute, and Senator John Warner (Ret).  Senator Warner was also the Secretary of the Navy during the time of Admiral Rickover (the oft-known “father” of the US nuclear industry), and the two of them worked closely together to make today’s modern nuclear navy a reality.

The advanced nuclear fuel technology would work in existing and new nuclear reactors, improving their economics by increasing power output and enabling longer fuel cycles. The fuel’s innovative fuel design is markedly safer than the fuel currently used in reactors. Notably, the design could result in:

  • 10 percent power uprate and increase time between refueling outages for existing reactors.
  • 30 percent power uprate without increasing time between refueling outages for new reactors.

Under the 10 percent power uprate model, a customer with an 1100 MWe nuclear reactor would see an estimated annual gross economic benefit of about US$60 million.

The fuel would dramatically improve reactor safety. It is more accident tolerant and safer than current fuel because it:

  • Reduces fuel operating temperature.
  • Does not generate hydrogen gas.
  • Buys more time to restore active cooling during accidents.
  • Improves proliferation resistance of used fuel.
  • Enhances structural integrity of the fuel.

This alliance also showcases the potential for transformative change that can occur when innovative nuclear start-ups team with established experts—something we have blogged about in the past.

Shortly after the signing the CEO of Lightbridge Seth Grae gave a full-throated defense of nuclear power on Fox Business’s Varney and Company, and turned Stuart Varney from a skeptic to a supporter of nuclear power in 3 minutes!  Watch the video here to see the dramatic transformation, and the potential next-generation nuclear technologies have to change the public perception of nuclear.

For more information, please contact the authors.

The U.S. Nuclear Regulatory Commission (NRC) recently re-issued its request for information from potential NRC reactor applicants, entitled: “Process for Scheduling and Allocating Resources for Fiscal Years 2020 Through 2022 for the Review of New Licensing Applications for Light-Water Reactors and Non-Light-Water Reactors.”  It is designated as Regulatory Issue Summary (RIS) 2017-18.  For small modular and advanced reactor ventures, responding to the RIS is a low-cost means by which to engage with the NRC about your technology, and help the agency improve its resource allocation for new reactor licensing.

This periodic RIS, last issued in the middle of 2016, is used to help the NRC schedule and allocate its limited resources for new reactor development.  It was created following the Vogtle and Summer AP1000 reactor licensing process, in order to facilitate pre-licensing interaction.  In particular, the agency must budget years in advanced for expected application activity—for example, although we are just at the start of 2018, this RIS will be used to determine budget allocations as far out as FY2022.  The document itself contains a further background as to its development and purpose.

The questions are relatively straightforward, and responders can request that certain information be withheld as proprietary.  Questions include:

  • What types of NRC interactions do you plan to seek?
  • When do you plan to file an application?
  • What is the fuel type/basic design information?
  • Will you be part of a working group?
  • Who is assisting in the design?
  • Have you developed quality assurance plans and/or models that may need approvals or analyses?

There is no deadline for a response, but we encourage potentially interested parties to submit a response to the NRC if they feel their design has matured to a certain threshold.  RIS responses provide the NRC with a mechanism to gain basic familiarity with new technologies under development (do not assume that they are already aware).  A healthy number of responses also allows the NRC to advocate for increased staffing for advanced reactor development in coming years.  Last but not least, the RIS itself provides some insight into what the NRC staff is looking for early on from reactor developers, and thus serves as a sanity check to make sure new ventures are doing all they can to ensure that a new technology will run into fewer licensing problems later (such as development quality assurance programs early on).

Nonetheless, despite its low risk, any response should be thought through as it likely represents one of the first significant written interactions with the agency.  We have helped multiple parties fashion responses to such information requests, and would be happy to talk further about any questions, as well as other ways to informally interact with agency staff.

Nuclear power has had a busy year in 2017.  One of the most important trends for preserving the existing fleet of operating nuclear power plants has been the financial commitment  by US states to support nuclear power operating in their states and preserve their largest source of carbon-free power—and the thousands of jobs that go with it. This represents a significant reversal in state policy towards nuclear power, which traditionally has been left out of state programs promoting low or carbon free power—despite the fact that 60 percent of the carbon free power in the U.S. is generated by nuclear power. And the new state involvement has the potential to be a game-changer for next-generation reactors.

To highlight some of the key state activities from this year:

  • New York’s Clean Energy Standard and Illinois’s SB 2814, with their Zero-Emissions Credit (ZEC) programs, came into effect this year.  These programs represent among the first significant state efforts to  compensate nuclear power for its environmental benefits, and has helped keep a large number of nuclear power plants operational. Ohio has also introduced legislation to implement similar ZEC-type programs.
  • Federal district courts separately upheld both New York’s and Illinois’s ZEC programs against federal pre-emption and Constitutional challenges. Both decisions have been appealed, but nonetheless allow the state programs to continue in the interim.
  • Connecticut passed legislation that would allow nuclear power to compete directly against other zero-carbon resources in certain circumstances.
  • New Jersey introduced and advanced legislation to support nuclear power through “nuclear diversity certificates,” which would support the nuclear reactors for their environmental and fuel diversity attributes.

The core of many of these programs is valuing the benefits of nuclear power using the “social cost of carbon” framework. The social cost of carbon represents a potential measure of the harms caused by carbon emissions (and therefore, the value of carbon avoided by zero emissions generation). It was developed by a federal government interagency working group and has found itself increasingly referenced as part of state climate initiatives.

Although these programs directly benefit the current light water reactor fleet, it also signifies a larger trend by states to put nuclear power on an equal footing to other forms of low or zero-carbon generation sources.  This trend cannot be ignored by the advanced reactor industry. Just as renewable energy grew through state-level efforts to support the industry through renewable energy credit programs and portfolio standards, next generation reactor developers may want to look to states along with the federal government as potential sponsors for first-of-a-kind reactor projects.

These activities also explore the myriad different legal routes states can pursue to support the environmental and societal benefits of nuclear power. The U.S. energy grid is an ecosystem with many state, regional, and federal actors all working together to provide electricity at low cost and in accordance with legitimate policy goals. Disputes are likely to arise (and have arisen) as to where the borders between state and federal involvement. But that does not change the fact that states have always had a role in the in the promotion and regulation of nuclear power. An opportunity now exists to redefined that relationship, and for a new generation of state leaders to reengage with a new generation of reactor developers, for the benefit of all involved.

For more on state legislative activities affecting nuclear power, please contact the authors.

The U.S. Nuclear Regulatory Commission (NRC) has moved forward in developing initial regulatory positions on next-generation reactors, and reaffirming the value of its international cooperation efforts.

In support of its December 14th periodic meeting on small modular reactor (SMR) and advanced reactor regulatory reform, the agency has issued two draft papers for which it is soliciting feedback: one on siting considerations, and one on designing containment systems.  This is in addition to a December 13 meeting on physical security, for which the NRC issued a draft paper for review in November.

The draft paper on siting considerations tackles an interesting issue—the siting of nuclear reactors next to population centers.  The NRC has had “a long standing policy of siting reactors away from densely populated centers,” but this is based on traditional, large light water reactor designs.  Even though such reactors are safe, some governments have taken hardline positions as to siting these reactors next to large population centers (e.g., Indian Point).  Advanced reactors reopen this issue.  The Commission has stated in the past that for next-generation reactors, “siting a reactor closer to a densely populated city than is current NRC practice would pose a very low risk to the populace.”  And as reactor designs are starting to take shape and prove themselves even safer than expected, revisiting this policy can open up a lot of new geographic options for advanced reactors.  To note, the issue of siting of advanced reactors relates to emergency planning considerations, a topic we have covered recently here.  Apart from siting though, all the papers present multiple opportunities for interested parties to comment on developing regulatory issues.

Moving abroad, in this staff paper, the NRC reaffirmed participation with the Halden Reactor Project, located in Norway.  The research reactor is managed by  the Norwegian Institute for Energy Technology, but operates under the auspices of the Nuclear Energy Agency as a “cooperatively funded international research and development project.”  The NRC has a long-standing relationship with Halden and reaffirmed its commitment to it, which includes roughly $1.5 million of funding.  The paper explains that international cooperation greatly leverages agency funds, with a 15-1 return on investment through participation in the project.

Although not unexpected here, the NRC’s reaffirmation of international cooperation nonetheless is another indication of the now global nature of the industry, especially for advanced reactors.  But the U.S. government can do more to promote international cooperation in nuclear development.  Innovation in next-generation nuclear reactors is global, with, for example, URENCO’s U-Battery venture yesterday announcing an agreement with Bruce Power (a Canadian utility).  This includes scoping “the potential deployment of micro nuclear reactors across Canada, including Bruce Power being the owner and/or operator of a fleet of U-Battery units.”  Other Advanced Reactor global partnerships include TerraPower in China and Lightbridge and Areva,  Recently, two Congressmen penned a letter to the Department of Energy expressing serious concern with the slow pace of permitting in relation to nuclear technology cooperation, and recognizing that the slow pace of approvals of nuclear technology exports hinders nuclear commerce and U.S. competitiveness in the field.

Hopefully, the federal government can turn to doing more to promote international cooperation and support.  Just yesterday, the Department of Commerce published a notice of an upcoming U.S.-Saudi Arabia nuclear energy roundtable.  The goal of the event is “to initiate a partnership process between U.S. civil nuclear energy companies and the King Abdullah City for Atomic and Renewable Energy (K.A.CARE), and between the U.S. and [Saudi] civil nuclear industries.”  It presents a promising opportunity for the U.S. to regain a dominant role in new nuclear construction, as Saudi Arabia is pushing forward with an effort to develop almost 18 GW of new nuclear in the country by the mid-2030s.

For more on the recent NRC publications on regulatory reform, or recent international attention to nuclear energy, please contact the authors.

On Wednesday, November 15, the US Nuclear Regulatory Commission (NRC) staff published a revised and final regulatory basis document in support of its rulemaking to reform emergency planning requirements for small modular and advanced reactors, including medical isotope reactors.  This rulemaking promises to significantly reduce costs for next generation nuclear plants by employing individualized, risk-informed requirements as opposed to rigid deterministic ones.

Fifty-seven individuals, companies, and organizations commented on the draft regulatory basis document.  The NRC staff made a number of edits to respond to the comments, including further incorporating risk-informed concepts into the text of the regulatory basis, and increasing discussion of the agency’s framework for establishing the size of emergency planning zones for new reactor designs.  According to the NRC’s rulemaking schedule, a proposed rule is due to be published early 2019, with a final rule in 2020.

This action by the NRC coincides with exciting developments for the US Department of Energy.  This week the Transient Reactor Test Facility (TREAT) at Idaho National Laboratories successfully completed low-power operations after being brought out of standby since 1994.  As explained in industry press, the restart of TREAT is a big success story for the agency, which refurbished the facility a year ahead of schedule and $20 million under budget.  TREAT specializes in testing new reactor fuels under heavy irradiation conditions, to see how they perform particularly in accident scenarios.  Testing new fuel designs is a linchpin to commercializing new reactor designs, as many of them rely on completely new concepts for nuclear fuel.

TREAT may also be getting company.  This same week, the House of Representatives Committee on Science, Space, and Technology approved an exciting new bill markup, HR 4378, the “Nuclear Energy Research Infrastructure Act of 2017.”  This piece of legislation tries to deliver on repeated calls to build a new test reactor in the United States.  It calls for a fast-neutron test facility to be completed in the mid-2020s that supports (among other things) high-temperature testing, testing of different coolant types, medical isotope production, and which is designed to be upgrade-able over time.  Funding is set aside, with $35 million in 2018, scaling up to $350 million from 2023 to 2025.

For more on any of these topics, feel free to contact the authors.

Hogan Lovells had the honor Monday of hosting the Washington, D.C. launch party for Ambassador Thomas Graham’s new book “Seeing the Light: The Case for Nuclear Power in the 21st Century.”  As part of the launch party, Hogan Lovells partner Amy Roma sat down with Tom and three other distinguished guests for a panel on the future of nuclear power.  The other panelists included: Senator John Warner (former Secretary of the Navy; five term Virginia Senator), Mike Wallace (current Board member for Emirates Nuclear Energy Corporation; former Constellation Energy COO and Vice-Chairman), and Jim McDonnell (Director of DHS’ Domestic Nuclear Detection Office).

The book has drawn strong critical acclaim. Richard Rhodes, the Pulitzer Prize recipient for The Making of the Atomic Bomb, calls this publication “the best book” written on the subject of commercial nuclear power. The book makes clear that “[n]uclear power is not an option for the future but an absolute necessity.” It also explains that:

Fortunately, a new era of growth in this energy source is underway in developing nations, though not yet in the West. Seeing the Light is the first book to clarify these realities and discuss their implications for coming decades. Readers will learn how, why, and where the new nuclear era is happening, what new technologies are involved, and what this means for preventing the proliferation of weapons. This book is the best work available for becoming fully informed about this key subject, for students, the general public, and anyone interested in the future of energy production, and, thus, the future of humanity on planet Earth.

The panel provided an exciting opportunity to marry the research and conclusions from Seeing the Light with the experiences and insights of those working to make the future of nuclear power—including next generation nuclear power—a reality. Some of the many insights from the panel included the following:

  • National Security Should Be Considered, as well as Climate Change: Seeing the Light clearly explains that the urgent threat of climate change requires nuclear power to work alongside renewables. In addition, the panel discussed at length that national security is also an important concern, and one that national leaders may also readily get behind. From an inability to power the nuclear navy to losing our seat on the table with regards to non-proliferation, the panelists repeatedly brought home the importance of having a robust commercial nuclear industrial base to keep the country at the cutting edge. The panelists expressed grave concern that a downward spiral in nuclear investment and talent threatens the U.S. on multiple fronts.
  • Effective Non-Proliferation Requires Peaceful Nuclear Power: While the book argues that the global nuclear non-proliferation treaties of the 20th century were not just giveaways from non-weapons states to the nuclear weapons states. Instead, they were agreements that in exchange for not engaging in nuclear weapons, non-weapons states would have assistance to develop a robust commercial, peaceful nuclear industry. And the U.S. has an obligation to these parties to assist them with their programs.  Moreover, the lack of a U.S. presence in foreign nuclear programs, weakens the U.S. voice on non-proliferation issues.
  • Ensuring New Nuclear Meets Top Safety and Security Standards. The panelists also all agreed that the use of U.S. technology abroad means that U.S. standards for safety and security, which are the highest in the World, will be incorporated into foreign reactor programs.
  • Top-Level Government Support Needs To Complement Private Action: All the panelists also agreed that the development of nuclear power in the 20th century was a true public-private partnership, with both Congress and the Executive Branch offering support. And this partnership delivered dividends countless times over back to the government and taxpayers. With a new wave of reactors moving forward around the world and the next generation of nuclear power on the horizon, the panelists agree that this needs to happen again, and that circumstances are right to make real progress towards this in the near future.

For more on the book, the panel, or on the potential role nuclear power can play in our future, please contact the authors.

Highlighting how government support can positively benefit a transformative, nascent industry, Canada has again taken a lead role in support small modular reactor (SMR) development.  The country has already garnered significant attention through its pre-licensing vendor design review process, in which seven advanced reactor ventures are participating and many more have expressed interest.  But in October, the Canadian Nuclear Laboratories (CNL) also released a report entitled “Perspectives on Canada’s SMR Opportunity,” which discusses the labs’ SMR strategy and responses to a request for information.

The report proves an interesting read and a useful resource for other countries or institutions looking to promote SMRs and advanced reactors.  It analyses the 80 submissions provided from across the industry.  Among other things, the report discusses the various benefits of SMRs, the types of reactors being developed, benefits to Canada, and comments related to how to efficiently regulate SMR innovation.  It also builds on CNL’s efforts to promote SMRs and advanced reactors—in 2017 CNL released a long-term strategy for its Chalk River Site, including a $1.2 billion push to promote the development of next-generation reactors.

For more about Canada’s work with SMRs and advanced reactors, please contact the authors.