The Party Line – December 30, 2011: The Party Line, Nuclear Style

As we close out 2011, readers of this space will likely not be surprised to hear the following:

  • The crisis at Japan’s Fukushima Daiichi nuclear facility continues and continues to poison the planet;
  • Accidents and events at nuclear reactors across the United States continue at a headshaking pace (something goes wrong somewhere pretty much weekly);
  • The nuclear industry continues its full-court press against any new safety rules that might spring from lessons learned from Fukushima or the domestic events;
  • Industry-friendly regulators continue to help slow-walk new rules while also working with allies in Congress to oust the slightly more safety-minded Nuclear Regulatory Commission chair, Gregory Jaczko;
  • Chairman Jaczko continues to hope his faith in a moderate path and a captured regulatory agency will guarantee a safe nuclear future and help save his job; and
  • All of this has happened before.

Last point first: Ryan Grim has a great follow-up on this month’s attempted coup at the NRC–where four commissioners, in coordination with members of congress and nuclear industry lobbyists, have gone public with complaints about the NRC chairman, Greg Jaczko. While the commissioners have stopped short of calling for Jaczko to step down, several GOP congressmen are pressing for just that result.

As Grim reports in the Huffington Post, the effort to oust Jaczko not only continues in the wake of two congressional hearings on the matter, the whole ugly putsch closely resembles moves in the 1990s to discredit another regulation-minded nuclear regulator. And the stories even include some of the same players.

Like with the current “scandal,” the plot is not a simple one to summarize (so please read Grim’s detailed story), but the highlights include a former National Resources Defense Council scientist, Terry Lash, who was appointed by the Clinton administration to run the Department of Energy’s Office of Nuclear Energy, his deputy, one William Magwood, and a staffer for the very nuke-industry-financed Sen. Pete Domenici (R-NM) named Alex Flint.

Thanks to an exploited possible gaffe in protocol and the coordinated work of Domenici, Magwood and Flint, Terry Lash was eventually pushed aside. And Magwood would take over the nuclear division at DOE, first as acting director, and then, under George W. Bush, as the office’s permanent head.

And yes, you’ve read two of those names here before. Bill Magwood is a commissioner at the NRC, a former consultant to the nuclear industry, and one of the most vocal critics of Chairman Jaczko. Alex Flint has run through the classic DC regulatory revolving door, moving between Senate staffer, nuclear industry lobbyist and back, most recently settling in as the top lobbyist for the Nuclear Energy Institute (NEI), the industry’s largest trade association.

The story is as troubling as it is tired. A government agency manipulated by the industry it is supposed to regulate. An industry, protected by bought politicians, avoids accountability while profiting from government largess. Some of that profit is then turned around to lobby and buy another administration’s worth of officials.

And an agency chief who is maybe too slow to realize that the industry and its surrogates will work relentlessly to undermine him and the regulatory body he tries to command.

The lessons here seem obvious and familiar. . . and yet they seem to be lost on so many.

It has been all-too-rare to see broad coverage of the US nuclear industry in the establishment press, yet, during the first week of December, nearly every news organ was Johnny-on-the-spot, repeating the industry storyline. Gregory Jaczko, it seems, was a temperamental leader, so difficult to work with that the NRC’s mission had been compromised.

Beyond the unremarked upon humor inherent in seeing Republican Senators and Representatives suddenly so concerned with nuclear safety, Jaczko himself provided under-reported frame-relief by proving so difficult to work with that he was able to secure the NRC’s unanimous approval of the new Westinghouse AP1000 reactor (despite some very serious concerns about that design and no financial support for construction without billions in federal loan guarantees). And the rest of the commission was able to out-vote Jaczko, four to one, to fast-track the construction and licensing of the new reactors, slated for plants in Georgia and South Carolina.

But perhaps most remarkable is that despite the industry push-back and power-politics, Jaczko still seems to think and act as if nuclear power can be regulated to a safe and prosperous future. The viciousness of the industry attacks and the seriousness of the events of nuclear’s annus horribilis should really disabuse him of that notion.

And the horrible year is not yet over. The last two weeks have seen the first of the debris from the Japanese tsunami hitting US shores, Pacific seals being tested after showing up in Alaska with skin lesions and other symptoms consistent with radiation poisoning, and a report from the International Journal of Health Services linking some 14,000 excess deaths in the US to the fallout from the Fukushima reactors.

Then there is the Japanese interim report on their nuclear disaster describing a regulatory agency unable and unwilling to take control of the crisis. There is the Tokyo Electric Power Company (TEPCO) contention that they are not legally responsible for fallout once it lands on someone else’s property. And here in the United States, there was a valve leak at Mass Pilgrim, a condenser leak at New York’s Fitzpatrick plant, and an event at Vermont Yankee where both of the cooling system’s backup power generators were offline at the same time.

Still, the nuclear industry pushes the notion of an impending nuclear renaissance. It wasn’t true before Fukushima, and it certainly isn’t true after, but with even their supposed nemesis on the NRC helping them build new reactors and relicense old ones, why not keep working the system?

As noted here (but few other places), the December hearing before the Senate Environment and Public Works Committee that was so dominated by the Jaczko cause célèbre was originally scheduled months earlier to track the progress of recommendations from the Fukushima taskforce. An August admonition from Sen. Barbara Boxer (D-CA) seemed to move the commissioners to put some of the recommendations on what passes for a fast track at the NRC, but even that has now been reversed by a majority of commissioners who voted themselves the ability to reject the very rules they previously ordered up. But all the attention in oversight hearings has been focused on Jaczko and his management style–learning the lessons of Fukushima and how that might improve US nuclear safety has been less than a footnote.

So, though Jaczko continues in his job with the public support of the White House, the nation’s regulatory agenda has already been altered. The nuclear industry may not yet have their head, but they’ve demonstrated they own the body.

And now a new year is upon us. The flip of the calendar will not wrap up the Fukushima disaster any more than it will end the parade of lesser events at American nuclear facilities. The nuclear industry will not decide to embrace safety upgrades and stricter regulation any more than the financial community will embrace nuclear power as a good risk. And no matter how many moves Gregory Jaczko makes in the direction of Bill Magwood or his industry masters, neither will ever like him. . . or consider calling off their well-practiced campaign to oust him.

Happy New Year.


The Party Line – September 23, 2011: In Post-Fukushima Reality, What is the Future, and Who is Winning It?

Beginning a story with a correction for what might seem a technical detail might not provide the most attention-grabbing lede, but it opens the door to a broader, and important, observation.

Last week’s column contained reference to “large nuclear power-generating nations,” and then listed Australia as part of that group. That, as pointed out by reader Dgdonovan, was incorrect:

Australia is not a large nuclear power producing nation, in fact none of Australia’s electricity is produced by nuclear power. Australia is a large uranium producing nation, however.

Indeed, while Australia may posses nearly a quarter of the world’s remaining uranium deposits, it has not commissioned a single industrial-scale nuclear reactor for electrical power generation. While the ongoing crisis at Japan’s Fukushima Daiichi plant makes that look prudent, given the expansion of nuclear power over the last 50 years, it does seem odd.

Australia is hardly an industrial backwater. A member of the G20, Australia is the world’s 13th largest economy in terms of GDP. And it is not as if Australia has not considered building nuclear plants, most recently about five years ago. But nuclear power has never gotten off the ground in Australia for a rather basic reason: it is not supported by a majority of its people.

What the public wants, however, (as some recent events in the US seem to indicate) is not always what the public gets. Also required is a mechanism for the electorate to impose their will.

As previously observed, in the aftermath of the Japanese disaster, German Prime Minister Angela Merkel committed her country to phasing out nuclear power generation in relatively short order, choosing to instead invest in renewables and efficiency. Merkel may have come to this decision based on the facts as now understood post Fukushima, but German domestic politics almost certainly came under consideration, too.

Merkel’s ruling coalition in the Bundestag currently includes her own party, the Christian Democrats (CDU), and the rightwing Free Democratic Party (FDP). By every indication, the FDP is heading for substantial losses in the next federal election, so the CDU will need a new coalition partner to keep Merkel in power. The most productive option is expected to be the Greens, and to woo them, Merkel found an opportune moment to move on a core Green Party issue.

Australia’s system is not identical to Germany’s, but the parliamentary (or Westminster) plan of the lower house introduces some of the same power dynamics. (Liberal-National Coalition PM John Howard proposed developing nuclear power in 2006; his party lost to anti-nuke Labor in 2007.) Federal and most regional elections are also decided by “preferential voting” (also known as IRV, or “instant runoff”). This form of democracy tends to give voters more options, and allows tertiary parties, and their issues, to gain a foothold in the system. Australia also accords a great deal of autonomy to its six state governments, where, for instance, it would be virtually impossible for the federal Australian government to put a nuclear power plant in a state if that state’s government had rejected it.

Contrast this with the United States, where, rather than responding to the new, post-Fukushima realities, the Nuclear Regulatory Commission has signaled it is “full speed ahead” on the relicensing of old nuclear facilities (many of which are nearly identical to the Fukushima reactors; all of which are reaching the ends of their projected lifespans). Seabrook, in Connecticut New Hampshire, has just been granted permission to proceed toward relicensing, and it looks like re-upping the Massachusetts Pilgrim plant will also be moving ahead. This movement runs counter to the NRC’s own recent task force report advocating a new safety regime that incorporates lessons learned from Japan. And this relicensing also runs counter to substantial objections from state governments, nuclear watchdogs, and community activists.

Shouldn’t the chief regulatory agency wait until its new, proposed regulations are in place before giving out licenses for another 20 years of potentially dangerous operation? Under a governmental system that draws its regulators from the industry it regulates and funds its two-party, first-past-the-post elections with money from that industry, it appears not.

And regulatory protocol is not the only point of contrast. In Germany, the marketplace has already recognized the changing reality. Siemens, a German industrial giant, has announced that it is getting out of the nuclear power business:

It [Siemens] will build no further nuclear plants and is canceling its nuclear joint venture with Russia’s Rosatom. Siemens built all 17 of Germany’s existing nuclear plants. Siemens chief executive, Peter Loescher, (pictured) praised the Merkel government’s decision to close all its nuclear plants by 2022 and aim for an 80% to 100% renewable energy economy by 2050, calling it “a project of the century.”

Siemens recognizes that without government support, and without an automatic customer, there is no profit in nuclear power.

In the United States, where President Obama (a beneficiary of large campaign contributions from nuclear power companies) went out of his way to affirm the US commitment to nuclear generation immediately following the Japanese quake and tsunami, and where the federal government continues to offer loan guarantees for maintaining and operating nuclear plants, a very different picture is emerging:

Exelon Corporation and Constellation Energy have filed for Federal Energy Regulatory Commission (FERC) approval of their proposed merger. In the filing, the companies commit themselves to divesting three of Constellation’s non-nuclear power plants totaling [sic] 2648 MWe in a step to ensure the merger will not cause power market or competitive concerns in the PJM (Pennsylvania, Jersey, Maryland) Power Pool in which they operate.

Constellation is the owner of the Calvert Cliffs nuclear facility in Maryland, which has recently come under scrutiny (OK, closer scrutiny, it has a long history of safety concerns) because of an emergency shutdown triggered by a transformer explosion during Hurricane Irene. Exelon, itself the product of a merger brokered by former White House Chief of Staff and current Chicago Mayor Rahm Emanuel, was one of Barack Obama’s largest campaign contributors. Exelon already operates more US nuclear plants than any other power company.

And this isn’t the only consolidation move in the US power sector. Duke Energy and Progress Energy, companies that operate nuclear facilities throughout the southeast, are seeking to form the country’s largest electric utility.

The Exelon-Constellation deal is facing opposition from Maryland’s Governor, Martin O’Malley, while the Duke-Progress merger has raised questions in North Carolina. But the final say on whether either deal goes through rests with FERC, the Federal Energy Regulatory Commission.

FERC is comprised of five commissioners, each appointed by the president to a five-year term (in theory, anyway–one commissioner is still there, despite his term supposedly ending in June). As currently constituted, three members are George W. Bush appointees, two were picked by President Obama (though that does not necessarily predict how they will act). FERC’s decisions are final, and are not subject to any kind of Congressional vote.

The differences are stark. In Germany, where electoral realities have forced to the government to take an honest look at nuclear safety, market realities have delineated a path away from nuclear power and toward a renewable energy economy. In the US, where government is not only insulated from popular opinion but also beholden to corporate largess, elected officials, regulators and industry work hand-in-hand to perpetuate dangerous, expensive and inefficient technologies (while, on Capitol Hill, House Republicans vote to slash already threadbare programs meant to encourage renewable energy development).

In an age where so many economies are desperately trying not to lose any more ground in the present, could it be that the ones more responsive to their rank-and-file electorates are the ones in the best position to (to borrow a quickly forgotten phrase) win the future?