APPENDIXES TO MARCH 5, 1991 HEARING (Titles XII and XIII) Appendix I-Responses to Additional Questions POST-HEARING QUESTIONS AND ANSWERS WILLIAM H. YOUNG ASSISTANT SECRETARY FOR NUCLEAR ENERGY MARCH 5, 1991 Question 1. QUESTION FROM SENATOR WALLOP ELECTRICITY SUPPLY The Department of Energy estimates that a combination of increases in demand and retirement of existing electric generation capacity will require an additional 200,000 megawatts of capacity by the year 2010. a. Would you agree with Mr. Wolfe's statement that until Answer: Some regions of the U.S. had excess generating capacity through the 1980's. However, during the had limited capacity reserves and experienced b. We expect regions that still have excess capacity Faced with today's environmental laws such as the Clean Air Answer: Theoretically, the requirement for new generating capacity could be satisfied without additional technologies that emit low levels of sulfur dioxide and nitrous oxides could meet our Nation's future electricity requirements and satisfy the requirements of the Clean Air Act. C. However, without nuclear power as an option, we In your judgement, can the third world meet its anticipated requirements for electricity without a large expansion of nuclear power? Answer: The third world can and is expected to meet its anticipated requirements for electricity without a forecasts show that nuclear power's share is expected to increase to only about 2.5 percent by 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. 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 nuclear power. сл 5 QUESTIONS FROM CHAIRMAN JOHNSTON The Process Laid Out In Title XII Questions 1: 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. Answer: 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 |