1.

Nuclear. Regulatory Commission

Briefing

Dennis Spurgeon, Assistant Secretary

for Nuclear Energy

March 5, 2007

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Presentation Topics

Li Introduction

Li Restate Vision of the Office of Nuclear Energ

El Program Goals

El NP2010

EL EPAct 2005 Incentives for Nuclear Power

El Generation IV

El Nuclear Hydrogen Initiative

11 GNEP

Li University Nuclear Science and Engineering Su
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Nuclear Power 2010

Priority Demonstration Projects

+ Early Site Permit (ESP)

" Clinton

" Grand Gulf

4 North Anna

+ Combined Construction and Operating License

NuStart

Grand Gulf (ESBWR)

- Bellefonte (AP1000)

Dominion

North Anna (ESBWR)
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U.S. Nuclear Power Interest Is Growing

* As a result of the EPAct financial incentives and the Nuclear Power 2010

program, interest in new nuclear plants is growing

* Additional ESP projects underway and planned

. Indications that 14 power companies plan to submit 20 COL applications for as

many as 30 new nuclear units

New Reactor Licensing Activities + 9 of these companies are direct

30 participants in NP 2010

demonstration projects

25 Foreign reactor vendors pursuing

20 U.S. markets

20 0COL 4 States legislatures and public

15 17 *DC utility commissions increasingly

receptive to new nuclear plants
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* . DOE Actions to Accelerate New Nuclear Plant

Licensing

COL Project Restructuring - Supports NRC's Design-Centered Review approach

Separate current COL projects into four individual cooperative agreements: " Focus power companies on activities on COL application preparation and NRC review * Focus reactor vendor activities on completion of standardized nuclear plant designs . Fund NRC review and approval of one reference ESBWR and one AP 1000 reference

COL application

Supported new reactor technology training

Sessions for DOE and NRC staff

0 AP1000 (Westinghouse)

* ESBWR (GE)

* EPR(AREVA)

# ABWR (GE) being planned for Spring 2007
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Status of EPACT 2005 Incentives

* Provides a Variety of Incentives that Reduce Regulatory and Financial

Uncertainties for "First Movers"

U Loan Guarantee - Summer 2006

Status: DOE issued guidelines for small-scale loan, and anticipates issuing a rule for program

in 2007

* Standby Support - Summer 2006

Status: DOE issued final rule outlining process

to obtain risk insurance; will complete drafting standard

conditional agreement by Summer 2007.

Agreement is first step to obtain risk insurance

* Production Tax Credit - Spring 2006

Status: Department of Treasury published

Notice in IRS Bulletin with guidelines for allocation

and approval process of tax credit

* Encourages the Deployment of Nuclear Energy

m Reduces first of a kind economics

" Indemnifies first six plants for delay related to NRC

scheduled review approvals and litigation that could

delay full-power operations

" Provides economic boost for the first 6 GWe of capacity once plants are

generating electricity

Energy Policy Act

2005

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Generation IV Nuclear Energy Systems (update)

U.S. Gen IV program managed as part of an

international collaboration

Progress in GIF R&D planning activities:

" SFR and VHTR System Research Plans Signed

- SFR Project Arrangement on Advanced Fuel signed (Jan

2007)

- Other Project Arrangements in Negotiation

* NGNPNHTR

" Progress in NGNP Licensing Strategy

" First PIRT workshop held in February (27/28)

" Detailed Licensing Strategy report outline completed at

staff level with collective staff review in late March

* Next step is to hold second PIRT workshop in April/May

and obtain management approval of Licensing Strategy

outline

* Progress in R&D

" First fuel Irradiation test initiated in ATR (Dec 2007)

" Pre-conceptual design contracts awarded to

Westinghouse, AREVA NP, and General Atomics

(September-November 2006)

" New R&D plan based on pre-conceptual design data

needs to be completed by end of the fiscal year

GE3J Int"rnti" ow~iiiu
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" Nuclear Hydrogen Initiative

+ Objective

a Develop greenhouse-gas-free hydrogen production

technologies that are compatible with nuclear energy systems

(thermochemical and high-temperature electrolysis)

+ Major Program Milestones

" FY 2007: Complete construction of integrated laboratoryscale hydrogen production experiments

" FY 2011: Complete design and construction of pilot-scale

hydrogen production experiments and commence testing

" FY 2019: Demonstrate commercial-scale hydrogen

production system for use with nuclear reactors

* Recent Major Accomplishments

" July 2006: Sandia National Laboratories developed and

successfully tested an innovative new sulfuric acid

decomposer for inclusion in the Sulfur-Iodine integrated

laboratory-scale experiment

* September 2006: Idaho National Laboratory completed 2040-

hour test run using laboratory-scale high-temperature

electrolysis equipment averaging 700 liters per hour hydrogen

production

H2SO4 Decomposer

High-Temperature Electrolysis Stacks
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Global Nuclear Energy Partnership

Li GNEP Status in April 2006

El GNEP Progress Since April 2006

Li GNEP Strategic Plan

Li Safety and Security

Li Next Steps for GNEP
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b)

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0At the time of the last update in April 2006,

GNEP had just been initiated

ED CD-0 (Mission Need) was approved by the Deputy Secretary on April 28,

2006.

EZ DOE had just released a request for Expressions of Interest with regard to

siting integrated spent fuel recycling facilities for GNEP technology

demonstrations.

D An Advanced Notice of Intent was issued in March 2006 for three

demonstration projects.
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GNEP has made substantial progress since the

April 2006 NRC update

DJ Industry has expressed considerable interest in GNEP with 18

Expressions of Interest in August 2006

D In the past 60 days, DOE has:

D announced a Notice of Intent for a GNEP Programmatic EIS;

El Released the GNEP Strategic Plan; and

[] awarded over $10M for GNEP Siting Grants for integrated spent fuel

recycling facilities
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The GNEP Strategic Plan released in January

2007 calls for specific actions

ED Obtain input from U.S. and international industries and governments on

what technology and policy issues must be resolved, and what business

obstacles must be overcome.

D Develop a detailed GNEP technology roadmap for demonstrating

solutions to the remaining technical issues in order to support

commercial GNEP facilities.

El Pursue industry participation in the development of conceptual design

and other engineering studies that support both a nuclear fuel recycling

center and an advanced recycling reactor.
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ýt 0 By June 2008 the Secretary of Energy will make

0 a decision on the path forward for GNEP.

ED A decision to proceed with a government-industry partnership to

build a nuclear fuel recycling center and a prototype advanced

recycling reactor, assumes that:

D A credible technology pathway has been developed and satisfactory

progress has been made in its implementation;

El a credible business plan exists;

LI there is reason to believe that a government-private partnership can be

formed to build the GNEP facilities that are in the best interests of the

Nation and all parties;

LI relevant NEPA requirements are satisfied;

El nonproliferation criteria are defined and met; and

El international agreements are in place to demonstrate support and

participation in the GNEP mission.
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Safety and Security are key elements of GNEP

E NSPD-17

El (U) "The United States will continue to discourage the world-wide

accumulation of separated plutonium and to minimize the use of highlyenriched uranium. As outlined in the National Energy Policy, the United

States will work in collaboration with international partners to develop

recycle and fuel treatment technologies that are cleaner, more efficient,

less waste-intensive and more proliferation-resistant."

LI Key non-proliferation and security GNEP objectives

LI No separated plutonium

El Nuclear material forms that cannot be readily made into a nuclear

device

El Advanced nuclear safeguards

LI Reliable fuel services
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Near-term work for GNEP includes technical,

business, and regulatory actions.

[] A technology roadmap needs to be developed that identifies key

technology development activities for advanced separations and

transmutation fuel fabrication.

El Industry needs to be engaged to provide input on conceptual design

approaches and business plan options.

E Scoping meetings for the GNEP Programmatic EIS will be completed in

March 2007.

E The MOU/IA with NRC is being developed.
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A Revised Approach:

University Program FY 2007
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* , Changing Our Approach to Nuclear Engineering

Universities

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Why Change?

El DOE/NE R&D-related university-based research will be beneficial

to DOE and university community

E The Office of Nuclear Energy knows the importance of nuclear

engineering education to the nation

El Research-based approach under a broader Nuclear Energy

Research Initiative program should help develop an improved

education network among universities, laboratories, the nuclear

industry and government
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0.

6 Nuclear Energy Research Initiative (NERI)

* Provide research to Universities in support

of NE program's applied R&D goals

* Funding will be provided by NE Research Programs

* A modified NERI solicitation is being developed to

include capability support
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* 0 . Steps to Transition Program

* Continue to fund many of the original University and NERI activities for

much of FY 2007

[ Hold Workshop to introduce

Universities to the NERI

during which:

" Current NE program areas of

research will be presented

* New solicitation and peer review

process will be discussed

* Peer review process will be discussed

* Issue a new solicitation
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* 5 Conclusion: NE Supports Universities

= Total support for university activities in FY 2006 was

approximately $50M

UThis funding level of $50M will remain unchanged based

upon our anticipated FY 2007 budget under the

Continuing Resolution

= Based on our FY 2008 budget request we expect growth in

our university funding commensurate with the growth in

GNEP