Third world utilization of nuclear power is constrained by several factors. One is capital availability. Nuclear power plants are very capital intensive and many third world countries will be unable to raise the necessary capital. A second constraint is the ability of electrical networks in developing countries to absorb a large generating capacity addition. Plants using existing nuclear technology tend to be 1000 MW or larger. Mid-size (600 MW) plants may be commercially available by the mid-1990's. However, even these plants may be too large for a developing country to absorb on its grid. Another constraint is the lack of technical expertise to construct or operate such facilities. In addition, nuclear proliferation concerns may inhibit the use of this technology in developing countries. As a result, third world countries are not expected to be significant growth markets for 5 QUESTIONS FROM CHAIRMAN JOHNSTON The Process Laid Out In Title XII Questions 1: ver is s capital e very countries apital. A trical rb a large ng 00 MW or Answer: è for a Another Fe to ing In your testimony, you identify three main problems with the provisions of title XII -- that DOE is already doing most of the things envisioned under section 12005; that it is too early to expect a utility to order a nuclear plant, even with the benefits of section 12005; and that direct federal government participation in a demonstration project would be inappropriate. This is a fairly strong rejection of title XII. Do you really believe that DOE can do everything necessary to revive the nuclear option without any endorsement or encouragement by Congress? No, we believe that congressional endorsement of the nuclear option is important and that specific action by the Congress in a number of areas is necessary for the revitalization of nuclear power. The National Energy Strategy (NES) addresses four prerequisites to future nuclear powerplant orders. They include maintaining exacting safety and design standards, reducing economic risks, reducing regulatory risks, and establishing an effective high-level nuclear waste management program. As you are aware, the Administration has submitted legislation to implement its NES. Two aspects of our legislation are vitally important to the future of nuclear power and require congressional action at the earliest possible time; namely, reform of the nuclear licensing and regulatory process and measures needed to site and license a 6 permanent waste repository and monitored retrievable storage facility. We believe that the Department's reactor programs to develop, standardize, and certify, under 10 CFR Part 52, advanced nuclear powerplants will satisfy the first two prerequisites addressing safety and economic risks. If all four of these prerequisites are met, the utility industry has indicated that they would once again consider nuclear power to meet new electrical demands. Senior management of nuclear utilities have indicated, in the nuclear industry's Strategic Plan For Building New Nuclear Powerplants, that a demonstration project is not a prerequisite to the next nuclear plant order. QUESTIONS FROM CHAIRMAN JOHNSTON NRC Design Certification Question 2 (a): There is currently some disagreement on what constitutes standardized design for purposes of receiving a design certification from the Nuclear Regulatory Commission. The disagreement, as I understand it, rests with how much detail would be required for a so-called standardized design to be approved. Answer: On December 27, 1990, Admiral Watkins wrote to NRC Does the NRC's February 15 policy adequately address the We are satisfied with the resolution presented in the Nuclear Regulatory Commission (NRC) policy statement. staff. We are planning to work with NRC and OMB to QUESTIONS FROM CHAIRMAN JOHNSTON NRC Design Certification Question 2 (b): Based upon what we know now about NRC's policy Answer: and process for approval of certified designs, how soon can we expect the NRC to certify each of the advanced reactor designs now being developed? In the February 15 communication, the Commission required established by the National Energy Strategy (NES) is to |