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US: NRC HALTS NUCLEAR REACTOR LICENSING DECISIONS

Decision Follows 24 Groups’ June Petition in Wake of Major Waste Confidence Rule Decision; Most Reactor Projects Already Stymied by Bad Economics and Cheaper Fuel Alternatives

SACE – August 7, 2012

WASHINGTON, D.C.  – The U.S. Nuclear Regulatory Commission (NRC) acted today to put a hold on at least 19 final reactor licensing decisions – nine construction & operating licenses (COLS), eight license renewals, one operating license, and one early site permit – in response to the landmark Waste Confidence Rule decision of June 8th by the U.S. Court of Appeals for the D.C. Circuit.

The NRC action was sought in a June 18, 2012 petition filed by 24 groups urging the NRC to respond to the court ruling by freezing final licensing decisions until it has completed a rulemaking action on the environmental impacts of highly radioactive nuclear waste in the form of spent, or ‘used’, reactor fuel storage and disposal.

In hailing the NRC action, the groups also noted that most of the U.S. reactor projects were already essentially sidetracked by the huge problems facing the nuclear industry, including an inability to control runaway costs, and the availability of far less expensive energy alternatives.

Diane Curran, an attorney representing some of the groups in the Court of Appeals case, said:

“This Commission decision halts all final licensing decisions — but not the licensing proceedings themselves — until NRC completes a thorough study of the environmental impacts of storing and disposing of spent nuclear fuel.  That study should have been done years ago, but NRC just kept kicking the can down the road.  When the Federal Appeals Court ordered NRC to stop and consider the impacts of generating spent nuclear fuel for which it has found no safe means of disposal, the agency could choose to appeal the decision by August 22nd or choose to do the serious work of analyzing the environmental impacts over the next few years.  With today’s Commission decision, we are hopeful that the agency will undertake the serious work.”   

Stephen Smith, executive director of Southern Alliance for Clean Energy, petitioner to the Court, said:

“We’re pleased with the Nuclear Regulatory Commission’s ruling; it is long overdue. Nuclear power is not a clean generating source when it creates long-lived radioactive and toxic waste that has no long-term safe disposal technology in place. We believe it is appropriate to halt nuclear licensing decisions and stop creating an inter-generational debt of nuclear waste that will burden our children and grandchildren for centuries to come.”

Lou Zeller, executive director of Blue Ridge Environmental Defense League, another petitioner to the Court, said:

“It appears that the Commissioners have, at least initially, grasped the magnitude of the Court’s ruling and we are optimistic that it will set up a fundamentally transparent, fair process under the National Environmental Policy Act to examine the serious environmental impacts of spent nuclear fuel storage and disposal prior to licensing or relicensing nuclear reactors.”

Former NRC Commissioner Peter Bradford said:

“It is important to recognize that the reactors awaiting construction licenses weren’t going to be built anytime soon even without the Court decision or today’s NRC action. Falling demand, cheaper alternatives and runaway nuclear costs had doomed their near term prospects well before the recent Court decision. Important though the Court decision is in modifying the NRC’s historic push-the-power-plants-but-postpone-the-problems approach to generic safety and environmental issues, it cannot be blamed for ongoing descent into fiasco of the bubble once known as ‘the nuclear renaissance’.”

In June, the following groups filed the petition with the NRC:

•    Beyond Nuclear, Inc. (intervenor in Fermi COL proceeding, Calvert Cliffs COL proceeding, and Davis-Besse license renewal proceeding; potential intervenor in Grand Gulf COL and Grand Gulf license renewal proceedings);

•    Blue Ridge Environmental Defense League, Inc. and chapters (“BREDL”) (intervenor in Bellefonte COL proceeding and North Anna COL proceeding; previously sought intervention in W.S. Lee COL proceeding);

•    Citizens Allied for Safe Energy, Inc. (former intervenor in Turkey Point COL proceeding);

•    Citizens Environmental Alliance of Southwestern Ontario, Inc.  (intervenor in Fermi COL proceeding and Davis-Besse license renewal proceeding);

•    Citizens for Alternatives to Chemical Contamination (intervenor in Fermi COL proceeding);

•    Don’t Waste Michigan, Inc. (intervenor in Fermi COL proceeding and Davis-Besse license renewal proceeding);

•    Ecology Party of Florida (intervenor in Levy COL proceeding);

•    Eric Epstein (potential intervenor in Bell Bend COL proceeding);

•    Friends of the Earth, Inc. (potential intervenor in reactor licensing proceedings throughout U.S.);

•    Friends of the Coast, Inc. (intervenor in Seabrook license renewal proceeding);

•    Green Party of Ohio  (intervenor in Davis-Besse license renewal proceeding);

•    Dan Kipnis  (intervenor in Turkey Point proceeding);

•    National Parks Conservation Association, Inc.  (intervenor in Turkey Point COL proceeding);

•    Mark Oncavage  (intervenor in Turkey Point COL proceeding);

•    Missouri Coalition for the Environment, Inc.  (Petitioner in Callaway license renewal proceeding; intervenor in suspended Callaway COL proceeding)

•    New England Coalition, Inc. (intervenor in Seabrook license renewal proceeding);

•    North Carolina Waste Reduction and Awareness Network, Inc.  (admitted as an Intervenor in now-closed Shearon Harris COL proceeding);

•    Nuclear Information and Resource Service, Inc.  (intervenor in Calvert Cliffs COL proceeding and Levy COL proceeding);

•    Public Citizen, Inc.  (intervenor in South Texas COL proceeding; admitted as intervenor in now-closed Comanche Peak COL proceeding; potential intervenor in South Texas license renewal proceeding);

•    San Luis Obispo Mothers for Peace, Inc.  (intervenor in Diablo Canyon license renewal proceeding);

•    Sierra Club, Inc. (Michigan Chapter)  (intervenor in Fermi COL proceeding);

•    Southern Alliance for Clean Energy, Inc.  (intervenor in Watts Bar Unit 2 OL proceeding, Turkey Point COL proceeding, Bellefonte COL proceeding; former intervenor in Bellefonte CP proceeding);

•    Southern Maryland CARES, Inc.  (Citizens Alliance for Renewable Energy Solutions) (intervenor in Calvert Cliffs COL proceeding);

•    Sustainable Energy and Economic Development (“SEED”) Coalition, Inc.  (intervenor in South Texas COL proceeding; admitted as intervenor in now-closed Comanche Peak COL proceeding; potential intervenor in South Texas license renewal proceeding).

The 24 groups that sponsored the June 18th petition will strategize in September regarding next steps.

On June 8th, the Court threw out the NRC rule that permitted licensing and re-licensing of nuclear reactors based on the supposition that (a) the NRC will find a way to dispose of spent reactor fuel to be generated by reactors at some time in the future when it becomes “necessary” and (b) in the mean time, spent fuel can be stored safely at reactor sites.

The Court noted that, after decades of failure to site a repository, including twenty years of working on the now-abandoned Yucca Mountain repository, the NRC “has no long-term plan other than hoping for a geologic repository.”  Therefore it is possible that spent fuel will be stored at reactor sites “on a permanent basis.”  Under the circumstances, the NRC must examine the environmental consequences of failing to establish a repository when one is needed.

The Court also rejected NRC’s decision minimizing the risks of leaks or fires from spent fuel stored in reactor pools during future storage, because the NRC had not demonstrated that these future impacts would be insignificant.  The Court found that past experience with pool leaks was not an adequate predictor of future experience.  It also concluded that the NRC had not shown that catastrophic fires in spent fuel pools were so unlikely that their risks could be ignored.

Contact
Alex Frank, (703) 276-3264 or afrank@hastingsgroup.com

August 9, 2012 Posted by | Nuclear Power | , , , | Leave a comment

Why Should Nuclear Loan Guarantees Cost Less Than Student Loans?

By HARVEY WASSERMAN | CounterPunch | July 3, 2012

The Department of Energy wants to give the Southern Company a nuclear power loan guarantee at better interest rates than you can get on a student loan. And unlike a home mortgage, there may be no down payment.

Why?

The terms DOE is offering the builders of the Vogtle atomic reactors have only become partially public through a Freedom of Information Act lawsuit filed by the Southern Alliance for Clean Energy.

We still may not know all the details.

SACE has challenged the $8.33 billion loan guarantee package announced by President Obama in 2010.

The documents show the DOE has intended to charge the Southern a credit subsidy fee of one to 1.5%, far below the rates you would be required to pay for buying a house or financing an education.

On a package 15 times bigger than what the federal government gave the failed solar company Solyndra, Southern would be required to pay somewhere between $17 million and $52 million. Advocates argue the fee is so low that it fails to adequately take into account the financial risks of the project. Numerous financial experts have estimated the likely fail rate for new nuclear construction to be at 50% or greater.

Furthermore, since a primary lender would be the Federal Financing Bank, the taxpayer is directly on the hook. Guaranteed borrowings are not supposed to exceed 70% of the project’s projected costs, but it’s unclear what those costs will actually turn out to be, as the public has been given no firm price tag on the project.

There is apparently no cash down payment being required of Southern as it seems the loan is designed to be secured with the value of the reactors themselves, whatever that turns out to be. In the unlikely event they are finished, liability from any catastrophe will revert to the public once a small private fund is exhausted.

Southern wanted the terms of the DOE offer kept secret, and we still don’t know everything about it. But in March, a federal circuit court judge ordered that the public had a right to know at least some of the details.

Apparently no final documents have actually been signed between Southern and the DOE. The Office of Management & Budget has reportedly balked at offering the nuke builder such generous terms. Southern has reportedly balked at paying even a tiny credit fee.

Construction at the Vogtle site has already brought on delays focused on the use of sub-standard concrete and rebar steel. The projected price tag—whatever it may be—has risen as much as $900 million in less than a year.

Southern and its Vogtle partners are in dispute with Westinghouse and the Shaw Company, two of the reactors’ primary contractors. Georgia ratepayers have already been stuck with $1.4 billion in advance payments being charged to their electric bills. Far more overruns are on their way.

The Vogtle project is running somewhat parallel with two reactors being built at V.C. Summer in South Carolina, where $1.4 billion was already spent by the end of 2011. Delays are mounting and cost overruns are also apparently in the hundreds of millions.

Southern and Summer’s builders both claim they can finance these projects without federal guarantees. But exactly how they would do that remains unclear.

Two older reactors now licensed at the Vogtle site were originally promised to cost $150 million each, but came in at $8.9 billion for the pair. The project’s environmental permits are being challenged in court over claims the Nuclear Regulatory Commission failed to account for safety lessons from the Fukushima disaster.

The terms of the guarantees are now apparently being scrutinized by the Office of Management & Budget, which reports to a White House that may be gun-shy over new construction guarantees due to bad publicity from the Solyndra fiasco.

Numerous petitions are circulating in opposition to this package.

The Nuclear Information & Resource Service has already facilitated more than 10,500 e-mails sent directly to DOE Secretary Chu.

You might ask: why should the builders of nuclear power reactors get better terms than students struggling to pay for college or working families trying to buy a home?

At least the home buyers can get private liability insurance, which the nuke builders can’t.

If mounting grassroots opposition can stop this package, it’s possible no new reactors will ever be built in the US.

So send the OMB and DOE a copy of your mortgage or student loan statement.

Demand that before they finance any more nukes, they drop your own payment to 1%, just like they’re offering the reactor pushers. Also demand the right to buy a home without a down payment.

See how far you get, and then make sure Vogtle goes no farther.

Harvey Wasserman, a co-founder of Musicians United for Safe Energy, is editing the nukefree.org web site. He can be reached at: Windhw@aol.com

July 3, 2012 Posted by | Economics, Nuclear Power | , , , , , , | Leave a comment