Nuclear “Renaissance” Meets Economic Reality, But Who Gets the Bill?

Crystal River Nuclear Generating Plant, Unit 3, 80 miles north of Tampa, FL. (photo: U.S. NRC)

Crystal River is back in the news. Regular readers will recall when last we visited Progress Energy Florida’s (PEF) troubled nuclear reactor it was, shall we say, hooked on crack:

The Crystal River story is long and sordid. The containment building cracked first during its construction in 1976. That crack was in the dome, and was linked to a lack of steel reinforcement. Most nuclear plants use four layers of steel reinforcement; Crystal River used only one. The walls were built as shoddily as the dome.

The latest problems started when Crystal River needed to replace the steam generator inside the containment building. Rather than use an engineering firm like Bechtel or SGT–the companies that had done the previous 34 such replacements in the US–Progress decided it would save a few bucks and do the job itself.

Over the objections of on-site workers, Progress used a different method than the industry standard to cut into the containment building. . . and that’s when this new cracking began. It appears that every attempt since to repair the cracks has only led to new “delamination” (as the industry calls it).

Sara Barczak of CleanEnergy Footprints provides more detail on the last couple of years:

The Crystal River reactor has been plagued with problems ever since PEF self-managed a steam generation replacement project in September 2009. The replacement project was intended to last 3 months, until PEF informed the Commission that it had cracked the containment structure during the detensioning phase of the project. PEF subsequently announced that the CR3 reactor would be repaired and back in service by the 3rd quarter of 2010…then by the 4th quarter of 2010…and then by the first quarter of 2011. On March 15, 2011 PEF informed the Commission that it had cracked the reactor again during the retensioning process and subsequently told the Commission that it estimated repair costs of $1.3 billion and a return to service in 2014. Shortly thereafter, the Humpty Dumpty Crystal River reactor suffered yet another crack on July 26, 2011.

That July crack was later revealed to be 12-feet long and 4-feet wide–and here, at least when it came to notifying the Nuclear Regulatory Commission, “later” means much later. . . like four months later.

The issue, of course–as anyone with a lifetime crack habit will tell you–is that this all gets very expensive. Not only is there the cost of the repairs. . . and the repairs to the repairs. . . and the repairs to the repairs to the repairs. . . there is the cost of replacing the energy that was supposed to be supplied to PEF customers by the crippled reactor.

And then there is the cost of the new reactors. . . .

Wait, what?

Yes, based on the amazing success they have had managing Crystal River–and something called a “determination of need,” which was granted in 2008–Progress Energy holds out hope of someday building two of those trendy new AP1000 nuclear reactors at another Florida site, this one in Levy County.

And who is expected to pick up the tab? Who is on the hook, not just for repairs and replacement energy at Crystal River, but for PEF keeping its options open at Levy? Well, not surprisingly in “privatize profits, socialize risk” America, the plan was to stick Florida ratepayers with the bill (again Footprints provides the numbers):

Customer bills for instance, were expected to increase by $16/mo. in 2016; $26/mo. in 2017 and a whopping $49/mo. in 2020. Initially, Progress expected the proposed reactors to cost $4-6 billion each, coming online beginning in 2016. Just a few years later, the estimated costs have skyrocketed to over $22 billion and the online date, if the reactors ever even come online, has bumped back to 2021 and 2022. And the Office of Public Counsel believes that PEF may not intend to complete the reactors until 2027, if at all. The company has spent over $1 billion dollars on the Levy nuclear reactors and has yet to commit to build them. And the company is entitled to recover all its preconstruction and carrying costs from its customers before even a kilowatt of electricity is produced. In fact, even if the project is never completed PEF can recover all its construction costs from customers courtesy of the 2006 anti-consumer “early cost recovery” state law…essentially a nuclear tax scheme.

But now, as of this week, there is a new plan. . . stick Florida ratepayers with the bill:

The state Public Service Commission on Wednesday unanimously approved an agreement that will increase the power bills of Progress Energy Florida customers — who already pay among the highest rates in the state.

It is supposed to be a win for consumers.

The deal includes a $288 million “refund” of money customers were to pay to replace power from the crippled Crystal River nuclear plant, which has been offline since fall 2009 and might never return to service.

PSC staff concluded that customer rates still would increase. The average Progress customer’s bill on Jan. 1 is expected to increase $4.93 a month per 1,000 kilowatt hours of usage, from $123.19 to $128.12, subject to adjustments for fuel costs.

That’s a “win” for Floridians, it seems, because they are paying out something less for Progress Energy’s mistakes–at least in the near term. But even that caveat is subject to scrutiny:

While the agreement provides a replacement power cost refund over 3 years of $288 million to PEF customers (due to the CR3 outage) – it comes packaged with a base rate increase of $150 million and it precludes the parties from challenging up to $1.9 billion (yes, billion) fuel and replacement power costs from 2009 to 2016.

And that’s not all. Also in the agreement is a requirement that PEF start (yes, that is start) the latest repairs on Crystal River by the end of 2012; if they do not, Progress has to “refund” an additional $100 million to consumers. Missing, however, from the agreement is any new estimate (given the latest revelations, not to mention any post-Fukushima upgrades required) of the cost should PEF actually try to remedy all of Crystal River’s problems–and perhaps even more glaring, questions remain as to who will pay (and how much it will cost) should PEF decide to stop throwing good money after bad and decommission Crystal River reactor 3.

Also missing from the calculation is any determination of what PEF’s insurance will cover–Crystal River’s insurer stopped paying out in early 2011, and they have yet to decide if they will pay anything more. . . at all.

The agreement also fails to put an end to what is now becoming a regular part of the nuclear power finance scam–collecting public money for plants that will never be built. As the Southern Alliance for Clean Energy (SACE, which is affiliated with CleanEnergy Footprints) observed when it opted not to sign on to the Florida rate agreement:

PEF hasn’t committed to actually building the Levy Co. reactors. Having customers pay for the company just to maintain the “option” at a later date to build reactors is unfair to today’s customers – and runs counter to the Commission’s “intent to build” standard. The agreement allows the company to collect another $350 million from customers, presumably for pursuing their Nuclear Regulatory Commission license (without any prudency review) for reactors it hasn’t committed to build? In fact, the agreement contemplates that the company will cancel its engineering and procurement contracts as well, further demonstrating the unlikelihood of project completion.

If something sounds familiar here, it should. Southern Company has been using heaping helpings of Georgia ratepayer money to do all kinds of preliminary work on their Vogtle site, purportedly the future home of two new AP1000 reactors, just granted a combined construction and operating license by the NRC in January.

The big difference so far between Levy and Vogtle has been Southern’s ability to line up some financing for its Georgia construction–thanks to $8.33 billion in federal loan guarantees granted the project by the Obama administration almost two years in advance of the NRC approval.

PEF does not have this kind of guarantee, but that did not stop them from trading on the possibility:

Progress Energy Florida officials said Thursday that President Obama’s plan to offer federal loan guarantees to encourage investment in nuclear power plant construction will be a strong incentive to move forward with the company’s proposed Levy County plant.

The project, however, is facing delays of between 20 to 36 months due to economic and regulatory problems, making the plant’s future uncertain despite the company’s insistence the project isn’t cancelled.

“It (the loan guarantee program) will definitely play a role in that decision (whether to continue with the project). It is one of many, but a very important one,” said Progress Energy spokesman Mike Hughes.

That was in 2010, right after President Obama announced the new Department of Energy loan program–but two years later, PEF has not secured a federal guarantee, and so has not secured any financing. . . and thus has also not committed to ever building the Levy plant. But none of that has stopped Progress from collecting money from Florida consumers just to keep hope alive, as it were. And none of that has apparently stopped any of Florida’s public service commissioners from telling PEF that this practice is just jake with them.

Even with NRC approval and some federally guaranteed money, it is still not a sure bet that the Vogtle AP1000 reactors will ever come on line. PEF’s Levy project has no license and no loan guarantee.

The folks at Progress Energy are not stupid–at least not when it comes to short-term financial gain–they know how very slim their chances are of ever pushing even a single kilowatt out of Levy County, but they also know where the profit is in the nuclear power game. It is not, quite obviously, in the construction of nuclear power plants–rife as that process is with lengthy delays and massive cost overruns–and it is not, some might be surprised to learn, so much in electric generation, given that plants in the US are now suffering “unusual events” that force one or more of them offline pretty much every week. Unusual events cost money–in parts and labor, and in time lost to repairs and inspections–and, as has been demonstrated at Crystal River, there is the cost of replacement energy.

No, the real profits in the nuclear racket come from the ability to collect on services not rendered and a product not delivered, or at least not delivered regularly. Because the system backstops the financing of nuclear facilities while also allowing plant operators to pass both real and anticipated costs onto ratepayers, many American taxpayers are poised to pay twice for nuclear power plants that don’t produce power.

And it would be remiss to close without adding a few more points.

Much has been made of the failure of solar panel manufacturer Solyndra, which also received aid from the federal government in the form of loan guarantees. Solyndra ultimately got $527 million from the government; contrast that with what has been granted to Southern for Vogtle. Or, starker still, look at the entire alternative energy loan program, now projected to cost out at under $3 billion, and then look back to 2010, when Barack Obama pledged $54.5 billion to the DOE loan guarantee program designed to foster investment in nuclear power.

In addition, while the government will actually recoup most of the money lost on Solyndra when the factory and inventory are auctioned off, the “leftovers” from a failed nuclear plant–even the parts that are not contaminated with radioactivity–are much harder (if not impossible) to move.

The focus of this story has been on the costs–because the case of Progress Energy Florida is such a glaring example of how nuclear operators fleece America–but the fact that a company so focused on the bottom line, regardless of its effect on public safety, is still allowed to play with something as dangerous as a damaged nuclear power plant should not be overlooked. Alas, as was exposed last year, nuclear regulators and the nuclear industry seem to agree that safety should be addressed with an eye toward cost. So, while Crystal River is a scary mess, the reactor in question is actually offline right now. The same cannot be said, for example, about Ohio’s Davis-Besse plant, which has cracking problems of its own, but was allowed by the NRC to restart in January–over the vociferous objections of industry watchdogs, engineers, and Rep. Dennis Kucinich (D-OH).

And then there is Palisades, on the shores of Lake Michigan, where numerous events and releases of radioactivity in the last year caused the Nuclear Regulatory Commission to issue a downgrade of the plant’s safety rating–but the NRC did not order the plant to shut down. Palisades is owned by Entergy Nuclear, who was recently cited for “buying reactors cheap, then running them into the ground.” In addition to Palisades, Entergy owns nine other plants–Arkansas Nuclear One, Nebraska’s Cooper Nuclear Station, Fitzpatrick in upstate New York, Grand Gulf in Mississippi, Indian Point, just north of New York City, Pilgrim, outside of Boston, River Bend and Waterford, both in Louisiana, and Vermont Yankee.

The case of Vermont Yankee is especially upsetting. Yankee is a GE boiling water reactor, similar to the model that failed so catastrophically at Fukushima–but the NRC voted to extend its operating license just days after the Tohoku quake. The state of Vermont had a better idea, declaring that the nuclear plant should shut down by March 21, 2012. However, in January, federal district court judge J. Garvan Murtha ruled Entergy could ignore Vermont’s order and continue operating. The state is appealing the ruling, but in the meantime, Yankee continues to operate. . . and continues to leak tritium into the groundwater, and into the Connecticut River.

It is not clear who will be paying for any attempt to clean up the Vermont Yankee leak–though one can guess–nor is it clear what will happen to new nuclear waste produced after March 21, since the Vermont statehouse has forbidden any new waste storage on the site. Indeed, storing used nuclear fuel is a nationwide problem that poses real dangers in the near term, and will likely cost billions of public dollars in the long term.

And that’s the bottom line–the real bottom line–for the industry’s oft-ballyhooed “nuclear renaissance.” Plant operators and captured regulators can try to obscure the safety concerns with diversionary dustups and magical thinking, but economic realities, like facts, are stubborn. Without huge injections of public money, nuclear power simply cannot continue to function–and the public is in no mood for another multi-billion dollar government bailout.

NRC Chair Jaczko: Events Like Fukushima Too Rare to Require Immediate Changes

NRC, nuclear

NRC Chair Gregory Jaczko (photo: Gabrielle Pffaflin/TalkMediaNews)

For those that think nothing has changed in United States regulation since the Japanese earthquake and tsunami started the ongoing crisis at the Fukushima Daiichi nuclear facility, think again. The pre-disaster mentality of “What could possibly go wrong?” has been replaced with reassurances that “Stuff like that hardly ever happens!”

At least that is the impression conveyed by the current chairman of the US Nuclear Regulatory Commission, Gregory Jaczko, in a pair of early October interviews. During two NRC-sponsored events, Jaczko fielded questions first from nuclear industry professionals and those considered friendly to the expansion of nuclear power, and then, in a separate session two days later, responded to representatives from public interest groups and other individuals generally seen as opposed to nuclear energy.

While the tone of the questions differed somewhat predictably in the two sessions, Chairman Jaczko’s attitude did not. Jaczko took several opportunities to praise the NRC staff and the processes and protocols used by the commission, repeating in both panels that the primary duty of his agency is ensuring the safety of nuclear facilities in the United States.

Beyond his broad assurances and patient, capable demeanor, however, many of the chairman’s assertions about both the NRC process and the progress being made toward his stated safety goals highlighted notable contradictions and troubling biases inherent in America’s nuclear regulatory regime.

To be fair, the pre-Fukushima outlook was not exactly “What could possibly go wrong?” In terms of the types of accidents and the repercussions of contamination, containment breaches, radioactive releases, meltdowns, melt-throughs, and a host of other undesirable situations, regulators and industry insiders alike were probably quite aware of what could go wrong. But as US nuclear proponents and profiteers strove to convey the impression of an informed industry, they also moved to downplay the threats to public safety and made sure to stress that, when it came to disaster scenarios, they had it covered.

If the disaster in Japan has proven one thing, though, it is that plant operators and nuclear regulators didn’t have it covered. Events (or combinations of events) that were either not foreseen or not acknowledged leave Japan scrambling to this day to understand and mitigate an ever-evolving catastrophe that has contaminated land and sea, and exposed yet-untallied thousands of Japanese to dangerous levels of radiation. “As we saw in Fukushima,” said Jaczko, “accidents still do happen in this industry. If we are thinking that they can’t, we are in a dangerous place.”

But for US nuclear regulators, there needn’t be any sense of urgency–or so believes the NRC chair. When asked why the agency doesn’t hold up plant relicensing until new standards that include lessons learned from the Japanese disaster are in place, Jaczko expressed confidence in the current system:

Bottom line is that changes get made at a plant. . . some changes will be made quickly, some may take years. It doesn’t matter where a plant is [in the process]–what is the licensing phase–but that changes get made. These are low frequency events, so we have some leeway.

It is a posture Jaczko took again and again in what totaled over two-and-a-half hours of Q&A–accidents are very, very rare. Given the history of nuclear power, especially the very recent history, his attitude is as surprising as it is disturbing. Beyond the depressingly obvious major disasters in nuclear’s short history, unusual events and external challenges now manifest almost weekly in America’s ageing nuclear infrastructure. The tornado that scrammed Browns Ferry, the flooding at Fort Calhoun, the earthquake that scrammed the reactors and moved storage casks at North Anna and posed problems for ten other facilities, and Hurricane Irene, which required a number of plants to take precautions and scrammed Calvert Cliffs when a transformer blew due to flying debris–all are external hazards that affected US facilities in 2011. Add to that two leaks and an electrical accident at Palisades, stuck valves at Diablo Canyon, and failures in the reactor head at oft-troubled Davis Besse, and the notion that dangerous events at nuclear facilities are few and far between doesn’t pass the laugh test.

That these “lesser” events have not resulted in any meltdowns or dirty explosions does nothing to minimize the potential harm of a more serious accident, as has been all too vividly demonstrated in Japan. The frequency or infrequency of “Level 7″ disasters (the most severe event rating–so far given to both Chernobyl and Fukushima) cannot be used to paper-over inadequate safeguards when the repercussions of these catastrophes are so great and last for generations.

Storage concerns don’t concern

Chairman Jaczko’s seeming ease with passing current problems on to future generations was also in evidence as he discussed mid- and long-term storage of spent nuclear fuel. Though previously a proponent of an accelerated transfer of spent fuel from pools to dry casks, Jaczko now says, post-Fukushima, he has “no scientific evidence that one method is safer than the other.” The chairman made a point of noting that some dry casks at Virginia’s North Anna plant moved during the August earthquake, but said that it will be well over a year before we can evaluate what happened to wet and dry storage systems at Fukushima.

While it is true a full understanding will have to wait until after Daiichi is stabilized and decontaminated, it is already apparent that the spent fuel pools, which require a power source to actively circulate water and keep the stored fuel cool, posed dangers that in some ways rivaled the problems with the reactors. (So far, no Japanese plants have reported any problems with their dry casks.) So obvious was this shortcoming, that the NRC’s own staff review actually added a proposal to the Fukushima taskforce report, recommending that US plants take more fuel out of wet storage and move it to dry.

Jaczko’s newfound indifference is also odd in light of his own comments about dry casks as an alternative to a central nuclear waste repository. Asked in both sessions about the closing of Yucca Mountain (the proposed US site for spent nuclear fuel), the chairman buoyantly championed the possibility of using on-site dry casks for hundreds of years:

The commission is taking the appropriate action to address the storage of spent fuel. We have come to the conclusion that, over the short- and medium-term, safe storage is possible. We are taking a look at what is the finite limit on current [dry] storage. . . 200, 300, 400 years. Is there a time we have to move the fuel? . . . Nothing tells us we shouldn’t generate the [radioactive] material. We don’t see a safety concern out 100 years, or anything that says at 101 years, everything changes.

Chairman Jaczko then added that while the nuclear industry is generating waste that will require “long, long term storage or isolation,” it is not unprecedented to assume this problem can be taken care of by “future generations.”

It is good that Jaczko has such faith in the future, because his depiction of the present is not actually that impressive. While the NRC chief repeatedly touted their “process” for evaluating risks, problems, and proposals, he also painted a picture of a bureaucracy that has so far failed to fully act on the initiatives he has considered most important. Neither the fire-safety improvements Jaczko has championed since he came to the commission in 2005, nor the security enhancements required after 9/11/2001 have as yet been fully implemented.

Process is everything

Time and again, whether he was directly challenged by a question or simply asked for clarification, Gregory Jaczko referred to the NRC’s “process.” “We have a relicensing process,” “there is an existing process [for evaluating seismic risk],” there is a process for determining evacuation zones, there is a process for incorporating lessons learned from Fukushima, and there is a process for evaluating new reactor designs. Process, of course, is not a bad thing–in fact, it is good to have codified protocols for evaluating safety and compliance–but stating that there is a process is not the same thing as addressing the result. Too often, what might have sounded like a reasonable answer from the chairman was, in reality, a deflection. “The process knows all; trust in the process. I cannot say what will happen, and what I want to happen does not matter–there is a process.” (This, of course, is a dramatization, not a direct quote.) Form over functionary.

But Jaczko had barely started his second session when his reliance on process suffered an “unusual event,” as it were.

Asked about why the NRC seemed to be moving full-speed ahead with relicensing, rather than pausing to wait for Fukushima taskforce recommendations to be formalized, the agency chief first said, “There is an existing program, there are processes.” But within a breath, Jaczko then said, when it comes to lessons learned from Fukushima being some sort of prerequisite for final license approval, “We are going to look on a case-by-case basis.”

Is deciding whether to apply new requirements on a “case-by-case basis” actually a process? Many would say it pretty much defines the opposite.

The counter-intuitive also took a star turn when it came time to consider new externalities and pending environmental impact surveys. Shouldn’t the Fukushima taskforce findings be considered as part of a series of new environmental impact studies? Well. . . “It is clearly new information, but does it affect the environmental impact survey? Because they are very, very low likelihood events, it is not part of the environmental impact survey.” Jaczko here seems to be saying that unless you know in advance of the new study that the new information will alter the findings, you do not need to consider new information.

Shocked, shocked

With such confidence in the commission and its process, would it be safe to assume that Greg Jaczko is comfortable with the current state of nuclear safety in the United States? Perhaps surprisingly, and to his credit, the NRC head seems to say “no.”

As previously discussed, Jaczko expected faster action on fire safety and security upgrades. He also defended his going public with complaints about design problems with the AP1000 reactors proposed for Plant Vogtle:

We had been going back and forth with [AP1000 designer] Westinghouse for two years. I felt [a lack of] openness; felt if you aired the issues, they get addressed. Now, I feel it was. . . addressed. It ultimately forced these issues to get resolved.

Chairman Jaczko was also asked what tech issues keep him up at night:

Those components that are not replaceable, not easily inspectable. Those subjected to repeated exposure to high radiation, stresses that cause high degradation.

Jaczko said he felt the commission had a handle on what radiation does to the concrete in the containment vessel, but he was less sure about the effect of “shock,” which he defined as “repeated power trips” or scrams. Jaczko acknowledged that this increases stress on the containment vessels, and added, “Some places will not have 20 years [left] on pressure vessels. We get into an unknown piece of regulation on pressure vessel repair.”

That is a pretty stark revelation from a man so passionate about his agency’s ability to, uh, process new data, but it highlights another facet of Jaczko’s approach to regulation.

Noting that New Jersey’s Oyster Creek reactor was granted a renewed operating license for 20 years, but its operator later negotiated with the state to shut it down in 10 years, Jaczko said, “Extension is an authorization to operate, not a requirement to operate.” Relicensing, he said, might come with requirements for modifications or orders that they “monitor aging.”

Jaczko also said that states or facilities might decide it is not economically viable to keep a plant running for the full length of its license, “Like if you have a car and the clutch goes and you make a decision not to replace it.”

How to regulate, even without the Regulatory Commission

Yes, another deeply flawed automobile analogy, but note that Jaczko allows for, and maybe even expects, limits to a plant’s life that are not regulated by the NRC. And in detailing such, the chief regulator of the US nuclear industry shows where citizens might exercise leverage when his NRC fails.

First, there is that issue of economic viability. As previously discussed, the market has already rendered its verdict on nuclear power. In fact, it would be absolutely impossible to build or operate a nuclear plant without loan guarantees, tax breaks, and subsidies from the federal government. The new construction at Vogtle is projected to cost nearly $15 billion (and these plants always go way over budget), and the Obama administration has had to pledge $8.33 billion in loan guarantees to get the ball rolling. Without that federal backstop, there would be no licensing battle because there wouldn’t be the possibility of the reactors getting built.

In fact, in this time of questionable nuclear safety, deficit peacockery and phony Solyndra outrage, it is illustrative to note:

. . . in FY2010 alone, $2.82 billion went to natural gas and petroleum interests (through direct expenditures, tax expenditures, research and development funds, and loan guarantees), $2.49 billion to nuclear energy interests and $1.13 billion to solar interests.

Would any of the relicensing and new construction applications be before Jaczko’s NRC if the energy-sector playing field were leveled?

Second, at many points in the interview, federal regulator Jaczko referenced the power of the states. Early in the “pro” nuclear session, an anxious question expressed worry that states such as Vermont could play a role in the relicensing of reactors. While stating it was yet to be determined whether Vermont’s authority overlapped with the NRC, its chairman stated plainly that states do play a role. “States decide what kind of generating sources they use,” Jaczko said, “especially if the state has a public utility.”

When asked in the second panel if the NRC considers whether new rules or licensing delays will cause rate hikes for consumers, Jaczko said the final determination on rates was the purview of a state’s public utilities commission:

If the PUC denies charges, then they won’t get our approval to go forward–but if the PUC denies a rate change, they [the plant operators] still have to make the improvement required.

And when discussing how the NRC draws evacuation zones, Chairman Jaczko said that in the end, it was the responsibility of the state and local governments, acting on data from the utilities and advice from the NRC, to determine where, when and how to evacuate in case of a nuclear accident.

And, yes, that does sound again like some of the buck-passing that marked too much of these interviews, but it is also a roadmap for a possible detour around a recalcitrant or captured federal agency. If activists feel shut out of the regulatory process, they can attack the funding. If federal elected officials are not responsive (because they, too, have been captured by a deep-pocketed nuclear industry), concerned citizens can hit closer to home. As Jaczko says, states can choose their power sources, and states can define evacuation protocols that either better insure public safety or reveal continued operation of nuclear facilities to be untenable.

Such action would not be easy–state and local officials have their own interests and conflicts–but it might prove easier than a broad federal play. Recent successes by those seeking to close aging coal-fired generators show that action at the individual plant level is possible.

Open to openness

For anything to happen, of course, it is important that a dedicated and passionate citizenry organize around a tactic, or, if they prefer, a process. But it will also require a level of openness on the part of government. Sometimes that openness is offered, sometimes it is hard won, but without transparency, progress is hard to make and hard to measure.

Gregory Jaczko repeatedly stated that he is a big advocate of openness, and he offered these interviews in that spirit. These two events obviously didn’t go all the way in that direction–not even close–but the sessions had merit. Chairman Jaczko, despite all the problems detailed above, can still be admired for exhibiting something rather rare in today’s political climate, a regulator that actually believes in regulation. He, in fact, conveys a passion for it. That some of that regulation is based on flawed assumptions, and that much of it is weak or never enforced, cannot be ignored, but if the head of the Nuclear Regulatory Commission advocates for the regulatory process (even when hiding behind it), then there is at least a process to improve.

* * *

A version of this story was previously posted on Truthout.

The Party Line – September 30, 2011: No Will, No Way: Nuclear Problems Persist, But US Fails to Seize Fukushima Moment

As September drew to a close, residents of southwest Michigan found themselves taking in a little extra tritium, thanks to their daily habit of breathing (h/t emptywheel). The tritium was courtesy of the 40-year-old Palisades Nuclear Generating Station in Covert Township, which suffered its third “event” (as they are politely called) in less than two months, and was forced to vent an indeterminate amount of radioactive steam.

The reactor at Palisades was forced to scram after an accident caused an electrical arc in a transformer in the DC system that powers “indications and controls“–also known as monitoring devices, meters and safety valves. (Transformer arcs seem to be “in” this season–it was a transformer arc that caused the Calvert Cliffs plant in Maryland to scram during Hurricane Irene.)

While it is nice to see rectors shut themselves down when a vital system goes offline, remember that “turning off” a fission reactor is not like flicking a light switch. Shutting down a reactor is a process, and the faster it is done, the more strain it puts on the reactor and its safety and cooling systems. And even after fission is mitigated, a reactor core generates heat that requires a fully functional cooling system.

Which is kind of an interesting point when considering that Palisades had just been restarted after completing repairs to a breach in the cooling system that was reported to be leaking more than 10 gallons per minute. Prior to that, a “special inspection” was ordered August 9 after a pipe coupling in the plant’s cooling system failed.

(By the way, have no fear, Michiganders, a public affairs representative for the Nuclear Regulatory Commission reassured the public that the concentration of tritium was “far below regulatory releases,” and that “as soon as it goes out, it gets diluted further.” You know, in the air. . . that you breathe.)

News of the Palisades tritium burp came at roughly the same time as a breathless (if a press release can be breathless) announcement from Dominion Resources, the folks responsible for the North Anna nuclear plant, the facility that scrammed after being shaken beyond design specifications by the earthquake centered in nearby Mineral, Virginia:

Our investigation showed the units tripped before the loss of off-site power when multiple reactor sensors detected a slight power reduction in the reactors. . . .

The root cause team determined that this occurred as result of vibration in the reactor or the monitoring devices in the reactors, or both.

Again, good that the reactors scrammed when something registered the quake, but noteworthy again because it was previously believed that the automatic shutdown started as a result of a loss of power–power required to operate the cooling systems, not only for the reactors, but for the spent fuel pools, as well.

While North Anna remains offline as the NRC continues its inspection (and tries to decide what would constitute passing that inspection), and Palisades is also down pending an (another) investigation, both serve as only the latest in a long string of examples in what could be called The Light Water Paradox: In order to safely generate a steady stream of electricity, a light water reactor needs a steady stream of electricity.

This is not just a perpetual motion machine laugh line. This inherent flaw in the design of LWRs is at the root of two other prominent tales of nuclear safety (or lack thereof).

The first, of course, is the ongoing, ever-metastasizing disaster in Japan, where failures in the cooling systems at Fukushima Daiichi following a massive earthquake and tsunami resulted in hydrogen explosions, core meltdowns, and, likely, melt-throughs that contaminated and continue to poison sizable portions of the country and surrounding sea.

The second story concerns the proposal for the construction of two new reactors at Plant Vogtle, a nuclear power facility near Augusta, Georgia.

The Vogtle reactors would be the first to be built in the US in a generation, and they have come under some additional scrutiny in part because they would be the first of a new-design LWR called the AP1000. A riff on previous Toshiba/Westinghouse pressurized water reactors, the AP1000′s most noticeable “innovations” are meant to address the active cooling paradox. First, it has emergency “dump tanks,” reservoirs of water situated above the reactor that could, in an emergency, empty into the reactor via gravity, providing up to 72 hours of “passive” cooling. Second, rather than housing the core in a reinforced concrete shell with a metal liner, the AP1000 would have an all-steel containment vessel which would, in theory, be able to expel heat through convection.

While these two design features both highlight and attempt to address a dangerous flaw that is a part of every other nuclear facility in the United States–that water has to be actively cycled through a reactor core to keep it from melting–the design still predates the Fukushima quake, and fails to truly incorporate the lessons of that disaster.

The massive March 11 earthquake shutdown power to the Fukushima Daiichi plant, and thus the cooling systems, and the tsunami that followed flooded the diesel-powered backup generators, but that was only part of the problem. Investigations now show that even if Fukushima had in some way managed to maintain power, the cooling system would still likely have failed for at least some (and likely all) of the reactors, and (and this is important) for the spent fuel pools, as well. That is because the quake not only caused a loss of power, it also caused numerous breaches in the cooling system. Cracks in the containment vessel, broken pipes, and dislodged couplings would have likely resulted in a calamitous drop in water levels, even with full power. Less than successful attempts to restore the cooling systems with new, external power sources, and the large amounts of contaminated water that continue to pour from the plant, have demonstrated just how severely the physical infrastructure was damaged.

There are additional concerns about the design of the AP1000 (possible corrosion of the all-metal containment vessel and less than rigorous computer modeling of seismic tolerances, for instance), but, in a post-Fukushima world, simply addressing the active/passive cooling problem (and only doing so for the reactor and not the spent fuel pools) does not promise a safe nuclear facility.

And there is, perhaps, a hint that at least one of the members of the NRC understands this:

The chairman of the U.S. Nuclear Regulatory Commission says the agency may need to incorporate its findings about a nuclear disaster in Japan into a license to build a new nuclear plant in Georgia.

NRC Chairman Gregory Jaczko said Wednesday [September 28] he believes the license to build two more reactors at Plant Vogtle near Augusta should include conditions that reflect the findings of a review of this year’s disaster at the Fukushima Dai-ichi plant.

While it is true that “may” and “should” are not “will” and “must,” and it is also the case that the Fukushima taskforce recommendations themselves do not fully address the problem outlined here, Chairman Jaczko’s comments do make the point that there are indeed lessons to be learned from the Japanese crisis, and right now, in the US, that education has not taken place.

The chairman and his fellow commissioners have wrestled all summer with the pace of post-Fukushima reform. Jaczko has argued for what in NRC terms is considered a speedy consideration of the new safety regime, but a majority of the panel has managed to slow the process down to a point where no new regulations will likely be in place by the time the NRC is required to rule on the Vogtle permits.

But, because the Vogtle hearings have revealed the Chairman’s understanding of at least some of the problems, it also reveals an obvious path for Jaczko and those (such as Senator Barbara Boxer (D-CA)) who would also want any new construction or operating permits to only be approved under guidelines drafted in response to the Fukushima disaster. If the industry–and the commissioners most friendly to it–wants to move quickly ahead on new construction and the relicensing of 40-year-old plants, then it should be required that they move quickly on adopting the Fukushima taskforce recommendations. No new safety rules, no new permits–the political calculus should be that simple.

And, if the NRC won’t do the political math, then it should be up to elected government to run the financial numbers.

Building the new Vogtle reactors is projected to cost $14.8 billion. That’s projected–the existing Vogtle plant went over budget by a factor of 14. But even if the new reactors stay on budget, there is still no way they would get built without help from the Federal Government. To that end, the Obama administration okayed an $8.33 billion loan guarantee for The Southern Company, owners of Plant Vogtle, contingent on the NRC’s approval of the plans. (By way of comparison, that is 16 times the size of the loan given to the now-defunct solar technology company Solyndra.) While there are a myriad of reasons why that and other such guarantees should never be proffered, at minimum, the federal government should now freeze the financial backing for new construction until the NRC passes–and industry adopts–an enhanced safety regime.

This wouldn’t be a one-shot power play. Hot on the heals of Vogtle, the V.C. Summer nuclear facility in South Carolina is also looking to add two new AP1000 reactors, and its permit process is also underway. And financial markets understand what a bad bet that project is, too. Summer is also owned by Southern, but it is operated by SCANA. Moody’s, the bond-rating agency, just downgraded SCANA’s debt to one notch above “junk” status, citing the cost of the proposed new reactors.

Meanwhile, the Commonwealth of Virginia has handed over $7 million in precious state funds to North Carolina’s Babcock & Wilcox to open a prototype of a small modular reactor (SMR) in the town of Forest, near Lynchburg. The SMR is small, indeed–160 megawatts (in contrast to the 1,800 megawatt capability of Virginia’s North Anna plant)–and it’s built entirely underground, supposedly enhancing its safety when faced with a potential terrorist attack. How it will provide greater protection from an earthquake or flood seems (at best) less obvious.

Yet, with all of this action, all of these new designs, all of this lobbying, and all of this (as “serious” people repeatedly caution) scarce government money, still no one is addressing another part of the nuclear equation: spent fuel. With Yucca Mountain now (supposedly) abandoned, the United States has no long-term plan for handling the already large and ever-growing problem of dangerous spent nuclear fuel. Right now, each nuclear facility stores its used fuel in either pools, dry casks, or both. The spent fuel pools require an active cooling system, which faces most of the same problems inherent in reactor cooling. Dry casks–used for fuel that is cool enough to remove from the pools–are considered safer, but they are far from “safe.” They are above ground, emit some radiation, and are theoretically vulnerable to terrorist attack (and the casks at North Anna moved and sustained “cosmetic” cracks in the August earthquake). In many US plants, both pools and casks are already filled to capacity. Expanding the number of nuclear reactors only accelerates the storage crisis.

And it must be reiterated, all of this activity comes a mere six months after the start of the Fukushima disaster. The latest announcement from the Japanese government–that they will relax the evacuation order for more than 100,000 residents even though their towns have not yet been decontaminated–says nothing about an easing of the emergency, and everything about a government that frankly just doesn’t know what else to do. The United States, though obviously larger, has reactors near enough to densely populated areas that a nuclear accident would make Japan’s evacuation problem seem like a rush hour fender bender. And the US government’s plan to deal with a nuclear disaster is no more impressive than Japan’s.

The saddest part, of course, is that it needn’t be that way. Beyond the political and financial tools proposed above, the NRC actually already has the power to demand the nuclear industry own up to the new seismic reality. When Westinghouse Electric came before the commission in May, it was ordered to fix its seismic calculations. Though Westinghouse grumbled, it did not question the NRC’s authority to rule on seismic concerns.

David Lochbaum, director of the Nuclear Safety Project at the Union of Concerned Scientists, agrees that the NRC has all the authority it needs:

Nuclear regulators already have “sufficient information and knowledge” to deal with earthquake risks at existing U.S. reactors and don’t need to wait for a broader review, a safety advocate said.

The Nuclear Regulatory Commission developed seismic rules for new plants in 1996 and has since approved preliminary construction for proposed nuclear units at a Southern Co. plant in Georgia and certified an early reactor design by Toshiba Corp.’s Westinghouse Electric unit, according to comments filed with the agency today by David Lochbaum. . . .

“If the NRC truly lacks sufficient information about seismic hazards and how safety at nuclear power reactors is affected, then the agency cannot responsibly have issued early site permits and certified new reactor designs,” he said.

Of course, having the authority and exercising it are not the same thing, but just as the NRC is not truly handcuffed by the fight over the Fukushima taskforce recommendations, the entire country need not be shackled to such a flawed, dangerous and expensive energy source as nuclear. The US government has demonstrated that it has the authority to make decisions on energy sources, and it has shown that it actually has the money to invest–big money. Of course, be it the NRC, Congress or President Obama, when it comes to moving beyond nuclear to demonstrably safer and truly renewable sources, what the US has not shown is the will.

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Correction: Last week’s post included the wrong location for the Seabrook nuclear plant; Seabrook is in New Hampshire. Apologies and thanks to the readers that spotted the error.

The Party Line – September 16, 2011: Though Nuclear Crisis Continues, IAEA Can’t Force Safety Overhaul

On Monday, September 12, an incinerator explosion at a French nuclear waste processing center killed one, injured four, and created just enough nuclear news to edge this week’s other nuclear story right out of the headlines.

The explosion, which is reported not to have caused any leak of radiation, was at a facility that reprocesses used nuclear reactor fuel in order to create a more toxic, less stable form of fuel commonly known as “mixed oxide” or MOX. MOX, which is a tasty blend of uranium and plutonium, was in at least some of the rods in some of the reactors at Japan’s Fukushima Daiichi facility when it suffered catastrophic failures after the March 11 earthquake and tsunami–and the presence of MOX fuel made the fallout from explosions at the Japanese plant more dangerous as a result. (More dangerous than already extremely dangerous might seem like a trivial addendum, but it is of note if for no other reason than the manufacture and use of MOX fuel is what nuclear power proponents think of when they call it a “renewable resource.”)

And it was the Fukushima disaster that brought diplomats, nuclear scientists, and government regulators to the negotiating table in Vienna for this week’s annual meeting of the International Atomic Energy Agency. At issue, a June proposal by IAEA chief Yukia Amano that the world’s nuclear nations respond to the Japanese crisis with tougher safety regulations and mandatory inspections.

The proposal–which included a one-year deadline for new safety standards and an 18-month window for stress tests on all reactors–had the backing of large nuclear power-generating nations such as Canada, Germany, and Australia, as well as many non-nuclear nations across the globe, but that support and the ongoing disaster in Japan were not enough to overcome sustained, behind-the-scenes efforts to derail this plan. When the IAEA finally took up a draft resolution on Tuesday, it contained no timelines, deadlines or mandatory inspections. Instead, IAEA safety checks, peer reviews, and other moves to ensure nuclear safety may be taken up “upon request” of the nuclear state in question.

Which parties were behind the near-total neutering of the IAEA proposal? Who was responsible for reassuring the global nuclear power industry that virtually no lessons would be learned from the continuing crisis in Japan? It should be no surprise to find traditional foes of nuclear oversight such as Russia, China, Pakistan, and India (along with Argentina) pushing hard against the IAEA. And, given Barack Obama’s very public proclamations of support for nuclear power within days of the Japanese quake, it should probably also not surprise anyone to find the United States right there with them:

[T]he United States was also comfortable with the decision to strip the plan of language entrusting the agency with more clout that was present in earlier drafts and leaving oversight to governments, national safety authorities and power companies. . . .

And now, courtesy of the same AP story, the comic relief:

Such a stance reflects Washington’s strong belief in domestic regulatory bodies having full control of nuclear safety.

The Associated Press, which deserves immense credit for this summer’s exposé on the cozy relationship government regulators have with the nuclear industry it is supposed to police, clearly didn’t give this story the same level of effort (click through for the amusing use of the word “establish” in the penultimate paragraph). . . or maybe it did, and is just bad at communicating the sarcasm. As documented in the months since the start of the Fukushima crisis, a small collection of too-weak recommendations from a Nuclear Regulatory Commission task force is now dying a slow death thanks to lobbying from the nuclear industry, and the NRC commissioners and elected officials receptive to it.

This week’s physical explosion might have taken place in southern France, but the shot that needs to be heard around the world is the IAEA firing blanks, thanks in part to the concerted efforts of a United States government in the grip of a dangerous but powerful industry. At the same time a relative non-event like the Solyndra bankruptcy seems to be growing scandalous legs thanks to obsessive media attention, the real Obama administration scandal is its addiction to old, expensive, dangerous, and non-renewable forms of energy. (See here, too, a very interesting piece tying America’s decline to dwindling petroleum supplies.) That this “The business of America is business-as-usual” story has not made headlines is, itself, probably not news, but what can–and likely will someday–happen because the US government is adamant that Fukushima changes nothing will not be so easy to ignore.