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The U.S. Nuclear Regulatory Commission (NRC) recently released a staff paper-SECY-18-0096-seeking Commission approval of a new proposed methodology for establishing “functional containment” performance criteria for non-light water reactors (non-LWRs).  This methodology would step away from deterministic containment design parameters and embrace a concept of “‘functional containment’ as a barrier, or a set of barriers taken together, that effectively limits the physical transport of radioactive material to the environment.”  If approved, the proposed methodology would be a critical step in developing a framework for licensing non-LWR designs.

Many current NRC regulations and guidance documents are prescriptive in nature and focus on problems unique to LWR technology—that is, the regulations tell you squarely what you need to do, providing limited opportunity to meet the end objective of the regulation in a different way.  For example, NRC guidance in NUREG-800 Chapter 3 provides detailed requirements for the strength and thickness of barrier concrete.  As the NRC has started to grapple with non-LWR designs, it has shifted its focus to more risk-based and performance-based methodologies—that is, the NRC would define the objective, and an applicant would have more flexibility in showing the NRC how its design meets the objective.  Under the performance-based methodology proposed in the SECY paper, the requirements imposed on physical barriers would be determined based on the risk of migration of radioactive materials and the other safety measures being used for containment.

The new methodology proposed by the NRC staff, therefore, does not prescribe the traditional structures, systems, and components (SSCs) required for functional containment, but rather focuses on performance requirements.  This methodology will give non-LWR designers more flexibility and provide a more integrated approach for developing a regulatory framework for non-LWRs.

A key component of the methodology is the “identification and categorization of licensing-basis events.”  The NRC staff recommends using the set of event categories initially developed under the Next Generation Nuclear Plant Project and used in the Licensing Modernization Project as the baseline for developing performance criteria.  Based on these event categories, the performance criteria will be developed to meet fundamental safety requirements.  Once the performance criteria have been determined, it appears the developers of non-LWRs would consider the potential consequences associated with the identified events and assess the cost and benefits of potential SSC options to prevent or mitigate the migration of radioactive material.  The NRC staff is calling this approach the “Barrier Assessment” or “Bow Tie” method, as depicted in the figure below:

If approved, the prosed methodology for functional containment performance criteria will be incorporated into the draft guidance the NRC staff is currently compiling for non-LWR licensing.

If you would like more information please contact the authors.

On Sunday, the popular TV show Madam Secretary gave a starring role to the climate and security benefits of nuclear power. The episode, titled “Thin Ice,” which is still available on the CBS website, proffered a full-throated defense of the climate benefits of nuclear power, turned a grassroots activist organization into a supporter of nuclear energy, and showcased how a nuclear powered ice breaker protected the Arctic from a foreign incursion. It capped with Secretary McCord convincing the show’s President to revise the national nuclear policy. As Michael Shellenberger opined following the episode (he also walks through the episode in detail), this marks a turning point for Hollywood, and “represents a popular culture breakthrough for the pro-nuclear movement.”  We encourage everyone to watch the episode!

From there, the week has only gotten better for nuclear innovation. The U.S. Nuclear Regulatory Commission (NRC) completed “the first and most intensive phase of review for” NuScale’s Design Certification Application for its small modular reactor. The NuScale design review has six phases to its schedule; but the first review sets the tenor, as it establishes the NRC staff’s preliminary safety evaluation of the reactor and encompasses a large portion of the requests for additional information. NuScale performed admirably in both areas. Along with this significant milestone—which derisks the company’s regulatory path forward—NuScale also received US$40 million from U.S. Department of Energy to continue advancing its innovative new, passively safe reactor design. And even the issue of nuclear waste storage might see progress, as the Nuclear Waste Policy Amendments Act of 2018 will get a vote on the floor of the House soon. The bill will move forward interim storage of spent nuclear fuel, and seek resolution on the licensing of a final national repository.

And apart from advancements on earth, NASA successfully tested KRUSTY, or “Kilopower Reactor Using Stirling Technology,” a nuclear reactor for potential moon and Mars bases. NASA personnel stated after the successful Nevada trial that “[n]o matter what environment we expose it to, the reactor performs very well.” NASA, along with Hollywood and Congress it seems, has taken a renewed interest in the role nuclear power can play in space exploration.

If you wish to learn more about any of these encouraging events, please contact the authors.

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.

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.

Last Tuesday, February 21, Third Way held a summit in Washington, D.C. focused on the advanced reactor industry, the Advanced Nuclear Summit & Showcase.  Among the many notable events at the conference was the strong bipartisan participation by Members of Congress.  Senator Chris Coons gave a keynote speech at the summit, and noted remarks made earlier by Senators Murkowski, Booker, Scott, and Whitehouse, leaders of the Democratic and Republican parties.

Senator Murkowski’s remarks noted in particular the importance for advanced reactor legislation.  She, along with other Congressmen, including Senators Whitehouse and Booker, reintroduced in January the Nuclear Energy Innovation Capabilities Act (for more information about this and related legislation see our discussion of bills put forward in 2016 and 2017).  She pledged at the conference that she would push it forward and make it a priority in the new year.

We are excited to see advanced reactor legislation move forward in Congress this year, and will keep our readers updated.  For more on advanced reactor legislative and regulatory developments, please reach out to the authors.

Today, the U.S. House of Representatives Ways & Means Committee approved H.R. 5879, a bill to extend the production tax credit for new nuclear power plants. It would remove any deadline on awarding the 6,000 MW of nuclear capacity available under the tax credit. The Committee commented that the bill “ensures the effective operation of the tax credit for nuclear energy production.” From here H.R. 5879 will continue to move through the legislative process, hopefully soon to the House floor. The text of the bill as provided by the Committee can be found here. For questions on the bill or advanced reactor issues in general, please contact the authors.

The U.S. House of Representatives is considering legislation, H.R. 5879, to extend the production tax credit for new nuclear power plants by removing any deadline on awarding the 6,000 MW of nuclear capacity available under the tax credit.  The text of the bill can be found here.  The House Ways & Means Committee is due to consider the legislation in the coming week.  For questions on the House Bill, or advanced reactor issues in general, please contact the authors.